HUD has indicated it wants to shift funding toward transitional housing, which is inherently temporary.
CHARLOTTE, N.C. โ Mecklenburg County commissioners are navigating major budget decisions this year amid uncertainty over federal housing funds that could fundamentally reshape how the county addresses homelessness.
The U.S. Department of Housing and Urban Development is pushing a significant policy shift away from permanent housing funding, which could force Mecklenburg County to completely rework how it uses federal dollars to qualify for assistance.
Last year,ย Mecklenburg County’s Continuum of Care โ the group of local organizations working on homelessness โ received $7.6 million in federal funds. Of that amount, 90% went to permanent housing programs.
Under the proposed changes, that percentage could drop to just 30%, as HUD has indicated it wants to shift funding toward transitional housing, which is inherently temporary.
A judge has ruled that HUD must return to the original funding plan, but that decision is still awaiting final approval from the courts.
Another proposed change would restrict funding for programs that address racial preferences. Qualifiers that previously helped organizations receive funding would now count against them under the new guidelines.
County leaders worry these changes won’t help address the area’s housing shortage and will result in people experiencing homelessness for longer periods.
“There’s just really this interest in everything being mandated,” division director for Housing Innovation & Stabilization Services Karen Pelletier said. “Housing now being a reward for ‘good behavior.’ So, after a longer experience of homelessness, working with those intensive services, then housing being that option.”ย
The budget discussions are in their early stages and won’t be officially voted on until this summer.
The budget retreat has been condensed into two days due to weather and will resume on Friday. Commissioners are also examining juvenile crime prevention as part of the budget retreat.
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