Last week, the commissioners had to rush to submit a revised plan for using those dollars for the next funding cycle beginning in September 2026, but now the new plan could be moot. HUD announced earlier this week it was withdrawing the directive “in order to assess the issues raised by plaintiffs in their suits and to fashion a revised NOFO (notice of funding opportunity),” referring to a lawsuit filed in federal court by 20 state attorneys general and others.
“These new funding conditions run afoul of bedrock separation of powers principles. Congress makes laws and holds the power of the purse. The administration cannot simply override Congress’ clear intent and implement its own agenda,” the lawsuit reads. “Individually, these conditions are unlawful and harmful. Together, they are a virtual death blow to the CoC Program as it has operated for decades and will lead to predictably disastrous results.”
Mindy Muller, president and CEO of Community Development Professionals, who administers the federal program for the county, told the Journal-News they are in limbo.
“We are just on hold until the new notice is released,” Muller said. “We just have to wait and see what’s going to shift and change.”
The PSH program provides rental assistance and optional treatment (it was once required) for chronically homeless people who suffer from mental and or physical disabilities. Transitional housing is a two-year program with some work and other requirements.
Depending on what ultimately is decided at the federal level, the county might have a leg up, since Muller had recommended the commissioners submit two options for federal review, one that uses 64% — which amounts to $970,885 or 72 households — of the funds for PSH and the other drops the usage to the 30% or $455,102 to serve 34 households.
“Because we are part of a region and part of a larger balance of state, we don’t have to cut down to the 30% as long as the state application reached that 30% threshold,” she said adding she consulted the state Balance of State Continuum of Care before making this proposal to the commissioners, “I asked, is 64% reasonable to request and she said yes.”
Muller said both options would include new applications for transitional housing dollars so they don’t lose any of their $1.5 million allocation. But they can’t just shift people from permanent to transitional housing, they have to be evaluated on a case-by-case basis, and “it’s difficult, there’s not an easy answer to any of it.”
County Administrator Judi Boyko said they were asking the state — and eventually HUD — to allow 72 of the 113 voucher recipients to remain in PSH because those people “may not be conducive to shift to a transitional housing type of model.”
She wanted to send both options to the state but the commissioners voted to only send the option that keeps 34 households in the PSH program because they need to be focusing on giving people a hand up with supportive services, not an everlasting subsidy.
Commissioner Don Dixon has always had concerns with the PSH program because it gives someone a home for life. He told the Journal-News the fact HUD may revise the rules doesn’t change his stance on the matter.
“I haven’t changed my mind, it’s not the way to go,” he said. “There’s going to be a few that need to be taken care of, but for the vast majority I think there is a way to get them independent and on their own. Permanent Supportive Housing just keeps them there, they have no incentive or no motive to do anything different.”
Commissioner Cindy Carpenter has been an ardent supporter of the PSH program and all efforts to address the homeless situation, so it was surprising she voted in favor of the 30% option.
She told the Journal-News the writing has been on the wall.
“HUD has been telling us for quite some time that they’re going to go to 30%, they’ve made that clear,” she said. “They said that’s coming, I know that it’s coming, it’s here. So to gear up to go for another plan doesn’t make sense to me.”
Now that the rules are in flux she still maintains it would be useless to buck what HUD mandates, but she is glad there might be a less restrictive funding mandate.
“They canceled the notice of funding opportunity because most Continuums of Care across the country couldn’t comply and ensure they’re going to keep everybody safe,” she said. “I’ll be interested to see what comes out next.”
Muller told the Journal-News under the initial mandate there would be challenges in moving people out of PSH. One of those is that to qualify for the transitional housing program, they have to have been homeless for a period time, which the PSH clients haven’t.
“It creates other issues.
“The immediate concern is the individuals living in permanent supportive housing who may or may not be able to transition to the new project,” she said. “And how do we keep them from being homeless again?”
Addressing the homelessness issue has been a hot topic in the county for years.
The commissioners held two Housing Insecurity and Advocacy summits with stakeholders from across the county last year and one this year. They promoted Job and Family Services chief Julie Gilbert in April to the newly created position of executive director of Human and Social Services to shepherd the countywide homeless effort.
Boyko said her initial report will be delivered after the first of the year.
“After immersing herself over the last several months in the ecosystem of providers and programs available and committed to homelessness in Butler County, Julie’s charge is now a longer-termed one that links potential resources and results to the chronic problems and challenges of homelessness,” Boyko said. “The issues are systemic and the results require deliberate and constant attention.”
THE NUMBERS
After the official homeless “point-in-time” count in January, there were 254 people on Butler County streets and 231 sheltered, for a total of 485. Last year the homeless count was 347. In 2023 it was at 266.
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