Oregon Sues Federal Housing Department After New Rules Threaten to Cut $39 Million From Local Housing Programs
Oregon has joined with 20 other states in a lawsuit for illegally upending support to tens of thousands of Americans experiencing homelessness or housing insecurity.”
The New Rules Will Create Administrative Chaos
The federal government’s “wholesale changes” to the U.S. Department of Housing and Urban Development (HUD) funding allocations, and the introduction of “unlawful conditions,” will create administrative chaos and could result in thousands of people losing housing.
According to Oregon Attorney General Dan Rayfield, HUD is drastically changing its Continuum of Care grant program by severely cutting back on grant funds that can be spent on existing permanent housing, and introducing new and “unlawful conditions” to applicants seeking funding.
Oregon Received More Than $65 Million From HUD Last Year
Last year, HUD allocated more than $65 million to Oregon for permanent housing programs. Rayfield believes HUD’s new policy could reduce support by 70 percent, and strip $39 million from the state’s housing programs, adding to the risk of people returning to homelessness.
The AG says the new requirements include conditions such as two-gender recognition, and that residents must accept services as a precondition to obtaining housing. HUD goes as far as to threaten to punish providers that do not enforce strict, anti-homeless laws.
In the past, HUD assisted local and regional coalitions to plan and coordinate housing and services for homeless people via Continuum of Care grants created by Congress.
According to Rayfield, HUD had a longstanding policy of encouraging a “Housing First” model to provide individuals with stable housing. There were no preconditions like a minimum personal income or sobriety.
The New Rules Are Dangerous and Destabilizing
However, he says the new rules “are dangerous and destabilizing,” threatening to strip funding from existing housing programs, and placing hundreds of families at immediate risk.
Compounding the challenges for housing service providers is a new HUD rule that directly conflicts with Oregon’s shelter requirements. Under this rule, shelters are prohibited from offering services to gender-diverse residents. Providers who do not comply risk losing both federal and state funding. According to the Attorney General, HUD intends to withhold funds from applicants who serve or recognize transgender and gender-diverse individuals.
Furthermore, HUD will also not prioritize housing applications for people suffering from mental health disorders and substance abuse. It will also act against areas that do not adhere to HUD’s new policies.
The other states participating in the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Jersey, New York, Rhode Island, Vermont, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania.