November 14, 2025
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HUD rule change slashes MN supportive housing funds

HUD issued new Continuum of Care rules last week that would cut permanent supportive housing funding by more than half, drop renewal retention from about 90% to 30%, and impose eligibility conditions that Minnesota may not meet. Minnesota providers, who received ~$48 million last year and house more than 3,600 people in supportive housing, warn the changes could reduce funding by over 85% and potentially double chronic homelessness.

Housing Local Government

📌 Key Facts

  • Minnesota supportive housing: >3,600 residents; ~$48M in CoC funding last year
  • Renewal retention cut: ~90% → 30%; overall permanent supportive housing funding cut by >50%
  • New eligibility: bans on public camping/drug use/squatting; ICE cooperation; involuntary-commitment standards; exclusions for applicants that 'deny the sex binary' or distribute harm-reduction supplies

📰 Sources (1)

HUD cuts funding for supporting housing that serves more than 3,600 Minnesotans
Minnesota Reformer by Madison McVan November 14, 2025