Massachusetts Attorney General Challenges HUD Changes to Homeless Housing Funding

Highlights

• Massachusetts Attorney General Andrea Joy Campbell has joined a coalition of 22 states in a lawsuit against the U.S. Department of Housing and Urban Development.
• The lawsuit seeks to block changes that the states argue would reduce funding for permanent supportive housing.
• The coalition contends the policy could affect housing assistance for thousands of people experiencing chronic homelessness.
• The states argue the funding changes violate federal administrative law.

Federal housing policy remains a significant factor influencing affordable housing programs and long-term community development across the United States. Massachusetts Attorney General Andrea Joy Campbell has joined a coalition of 22 states in filing a lawsuit against the U.S. Department of Housing and Urban Development (HUD), challenging changes to funding for permanent supportive housing projects.

The lawsuit seeks to prevent implementation of new funding requirements that the coalition argues would reduce financial support for housing programs serving individuals experiencing chronic homelessness.

Coalition Challenges Funding Changes

According to the complaint, HUD's revised funding approach would limit financial support available for permanent housing projects funded through the Continuum of Care program.

The coalition argues the revised funding structure could reduce or eliminate support for existing housing initiatives, potentially affecting thousands of residents who rely on permanent supportive housing.

The states contend the changes conflict with existing federal law governing the administration of the Continuum of Care program and were implemented without following required administrative procedures.

Impact on Housing Programs

The Continuum of Care program provides funding for permanent supportive housing and related services for individuals experiencing homelessness, including those with disabilities, mental health conditions, and substance use disorders.

The lawsuit seeks a court order preventing HUD from implementing the revised funding requirements while the legal challenge proceeds.

The coalition includes attorneys general from 22 states and the District of Columbia, along with the governors of Kentucky and Pennsylvania.

Why It Matters

Although the lawsuit does not involve a specific construction project, funding for permanent supportive housing influences the planning, rehabilitation, preservation, and long-term operation of affordable housing assets. For housing authorities, developers, construction owners, and contractors involved in affordable housing, changes to federal funding programs can affect future renovation initiatives, capital investment strategies, and housing preservation efforts.

Source: Mass. Gov.