HUD pulls funds from Twin Cities housing projects
HUD’s new Continuum of Care rules have canceled or sharply cut funding for Twin Cities permanent supportive housing, threatening roughly 3,600 Minnesotans and about $48 million in CoC funds in Minnesota by reducing renewals and capping supportive‑services spending. The changes — which repudiate “Housing First,” impose eligibility conditions (eg. bans on public camping, cooperation with ICE, limits on harm‑reduction and certain gender‑identity protections) — have prompted a coalition of 185+ organizations, faith‑leader vigils, bipartisan congressional pleas and legal action by Minnesota’s attorney general as local providers scramble and warn the cuts could more than double chronic homelessness.
📌 Key Facts
- HUD issued new Continuum of Care (CoC) rules that shift policy away from 'Housing First' toward transitional housing, 'self‑sufficiency' and caps on how much grant money can fund supportive services; HUD publicly criticized 'Housing First' as a 'failed' ideology.
- The rule adds eligibility and policy conditions for communities and providers — including local/state bans on public camping, drug use and squatting; cooperation with ICE; standards for involuntary commitment; and bars on applicants that 'deny the sex binary' or distribute certain harm‑reduction supplies — which could make some jurisdictions ineligible for funding.
- Reporting indicates the changes would sharply reduce funding for permanent supportive housing: Minnesota could lose more than half of such funding and see expected renewal retention fall from roughly 90% to about 30%; a coalition warned cuts could reduce permanent‑housing funding by over 85% and potentially double chronic homelessness.
- National funding figures are contested in coverage: some outlets say funding tied to voluntary supportive services would fall from roughly $2.3 billion to $1.2 billion under the new cap, while HUD (cited by Politico) expects to award about 7,000 CoC grants totaling roughly $3.9 billion nationally, a figure the department says reflects higher rents.
- Minnesota specifics: the state received about $48 million in CoC funding last year; more than 3,600 Minnesotans live in supportive housing that could be affected. Catholic Charities Twin Cities says 120 HUD‑funded supportive units (more than $1 million) are at risk and that its broader supportive‑housing programs report about a 90% retention/transition rate.
- Local housing providers say they are scrambling to prepare contingency plans — revising budgets, staffing and service levels — and warn of near‑term risks to supportive housing units and the services residents rely on if federal funding is reduced or delayed.
- There is political, legal and advocacy pushback: more than 185 Minnesota organizations and faith leaders have urged Congress and HUD to reverse the changes; bipartisan letters from 42 Senate Democrats and 22 House Republicans sought extensions or changes, and Minnesota Attorney General Keith Ellison joined a multi‑state lawsuit to stop implementation.
- Minnesota faith leaders and advocates organized public protests, including a 12‑hour overnight 'Losing Sleep, Losing Homes' vigil at the Basilica of St. Mary in Minneapolis (about 300 people registered, rotating shifts) to oppose the proposed HUD funding and policy changes.
📰 Sources (6)
Federal changes leave Minnesota housing and homelessness programs scrambling
New information:
- Reports that Minnesota/Twin Cities housing and homelessness providers are scrambling to adjust operations in response to HUD’s recent Continuum of Care rule changes.
- Adds on‑the‑ground details from local programs about contingency steps (e.g., revising budgets, staffing plans, or service levels) they are preparing or implementing.
- Includes provider and/or local official perspectives on near‑term risks to supportive housing units and services if federal funding is reduced or delayed under the new rules.
Minnesota organizations push back on federal homeless housing cuts
New information:
- Minnesota housing advocates held a 12‑hour overnight vigil at the Basilica of Saint Mary in Minneapolis (Tuesday evening to 7 a.m. Wednesday) to oppose HUD’s proposed funding changes; about 300 people registered, with participants rotating in shifts.
- Minnesota Attorney General Keith Ellison announced he is joining multiple states suing HUD to stop implementation of the changes.
- HUD Secretary Scott Turner says the CoC program would shift focus from permanent supportive housing toward transitional housing and support aimed at 'self‑sufficiency.'
- Beacon Interfaith CEO Chris LaTondresse argued the 'housing first' model with voluntary on‑site services is the most effective and cost‑efficient approach; organizers estimate cuts could affect roughly 3,600 Minnesotans.
Faith leaders are raising the alarm on cuts to housing programs
New information:
- A 12-hour 'Losing Sleep, Losing Homes' vigil is scheduled at the Basilica of St. Mary in Minneapolis (starts noon Tuesday, with an overnight 7 p.m.–7 a.m. vigil).
- HUD spokesperson issued a statement criticizing 'Housing First' and calling recent CoC funding an endorsement of a 'failed' ideology.
- Article cites national CoC funding reduction figures from roughly $2.3 billion to $1.2 billion under the new cap on housing tied to voluntary supportive services.
- Beacon Interfaith Housing Collaborative CEO Chris LaTondresse is quoted, highlighting local concern through the story of a supportive-housing resident (Betty Allen).
- Faith leaders, lawmakers, and housing advocates will participate, urging HUD to reconsider.
MN housing organizations say HUD cuts could double chronic homelessness
New information:
- Catholic Charities Twin Cities says 120 of its supportive units are largely HUD-funded and more than $1 million is at risk under the new rules; the nonprofit reports a 90% housing retention/transition rate among its 1,000 units.
- HUD’s public statement labels 'Housing First' as a 'failed' ideology and says the new focus is on 'self-sufficiency' and 'personal accountability,' with caps on how much of each grant can fund supportive services.
- Minnesota coalition letter now includes more than 185 housing organizations asking Congress to reverse the changes.
- Bipartisan pressure: 42 U.S. Senate Democrats (including both Minnesota senators) and 22 House Republicans urged HUD to extend CoC funding; Rep. Pete Stauber (MN-8) signed the GOP letter.
- Politico reports HUD expects to award roughly 7,000 grants totaling about $3.9 billion nationally, a slight increase from last year reflecting higher rents.
- Beacon Interfaith CEO Chris LaTondresse questions mandatory treatment/work requirements for people transitioning directly from encampments.
HUD cuts funding for supporting housing that serves more than 3,600 Minnesotans
New information:
- HUD issued new rules that would cut permanent supportive housing funding by more than half and drop expected renewal retention from roughly 90% to 30%.
- Minnesota received about $48 million in CoC funding last year and has more than 3,600 residents in supportive housing that could be affected.
- Eligibility conditions include local/state bans on public camping, drug use and squatting; cooperation with ICE; standards for involuntary commitment; and bars on applicants that 'deny the sex binary' or distribute harm-reduction supplies.
- A coalition of 185 Minnesota organizations warns the changes could reduce permanent-housing funding by over 85% and potentially double chronic homelessness.
- Minnesota may be ineligible under several provisions (e.g., trans refuge policies and local non-enforcement of federal immigration law).