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Home»Real Estate»HUD approves then rescinds funds for NY housing groups
Real Estate

HUD approves then rescinds funds for NY housing groups

March 17, 2025No Comments2 Mins Read
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Federal Funding Uncertainty Threatens Homeless Programs in New York City

On Friday, an appeals court decision lifted a block on executive orders aiming to end government support for Diversity, Equity, and Inclusion (DEI) programs. This decision raises concerns about the future of funding for crucial programs, including the Continuum of Care initiative by the Department of Housing and Urban Development (HUD) in New York City.

The Continuum of Care program provides housing support for homeless individuals and families in the city, with approximately 11,000 people benefiting from short-term apartments, supportive housing, and rental subsidies. However, the recent court orders and contract expirations have created uncertainty for 26 programs under this initiative.

For organizations like Urban Pathways, which houses formerly homeless adults, the potential loss of federal funding could have a significant impact on their ability to provide essential services. CEO Fred Shack expressed concerns about the changing conditions set by HUD, particularly the shift away from the Housing First model.

HUD’s decision to open federal grants to faith-based organizations and restrict funding from promoting diversity, abortion access, or policies supporting undocumented immigrants has sparked controversy. Critics argue that these changes may hinder efforts to combat homelessness and housing discrimination.

Despite the challenges, organizations like New Destiny Housing remain committed to using federal funds solely for rent and housing support. CEO Nicole Branca emphasized that their focus is on keeping people housed, regardless of the shifting requirements imposed by HUD.

As New York City officials review HUD’s new guidelines, the future of homeless programs in the city hangs in the balance, with concerns about the impact on vulnerable populations and ongoing efforts to address the growing homelessness crisis.

approves funds groups Housing HUD rescinds
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