Congress must stop wasteful funding shift

In early November, HUD, the U.S. Department of Urban Development, without bothering to go through the legally required rule making process, announced new procedures for funding local agencies that provide housing and supportive services for people who are homeless. These new procedures are a disaster

For years HUD had been urging agencies to move most of their funding away from transitional housing and into permanent supportive housing (PSH). This made sense as a great deal of evidence shows that PSH is more effective at keeping people housed than transitional housing is.

Usually, HUD’s funding application process starts in the summer. But this year, it was delayed until HUD’s announcement two weeks ago. Under the new procedures, overall funding for homeless services will be cut by at least 20% — most likely more — and funding for PSH will be capped at 30% of last year’s level. This will result in a loss of $54 million in homeless support services in Illinois alone. Nationwide 153,000 people now living in supportive housing will lose the rental supports and services that keep them housed and will be put out on the street.

But this cruel policy will not save money; it will only shift costs. The federal government may save money, but homelessness is not free. As the number of homeless people increases thanks to HUD’s new funding procedures and caps, local governments and institutions will face additional costs for increased ER visits, increased hospitalization, increased police involvement, increased court time, increased jail time and increased use of homeless shelters. PSH actually costs less than keeping people homeless and on the street.

The new HUD funding processes are both cruel and wasteful. Congress must put a stop to them before they go into effect on Jan. 1.

Hugh Brady, Co-President

The Housing Task Force

Inverness