CLEVELAND — The U.S. Department of Housing and Urban Development, also known as HUD, reported in 2024 that more than 11,000 Ohioans were experiencing homelessness — a 3% jump from the year before. Local programs have been working to get people into permanent housing, but those efforts may soon be strained. HUD is rolling out a significant change to permanent housing funding.
“People are homeless because there are affordability issue and there's not enough housing for individuals to access,” said Executive Director of the Northeast Ohio Coalition for the Homeless Chris Knestrick.
For years, Knestrick has worked to help people move from the streets into stable homes.
“People don't heal from the sidewalk, so let's get people into housing and then work with them to get connected to services,” said Knestrick.
Now, he worries about the impact of HUD’s new cap on permanent housing funding.
“Any cut to our homeless continuum budget, is going to be devastating to our community and the homeless individuals that we serve,” LeVine Ross, Director of the Office of Homeless Services for Cuyahoga County.
Ross tells News 5 that for many years, HUD funded the Continuum of Care program — connecting people with resources and permanent housing. But under the change, that funding is being capped and shifted toward transitional housing.
“With the changes we will be subjected to a 30% cap, which means that that $51 million will now go down to $15.4 million for our continuum for Cuyahoga County,” said Ross.
Previously, people could move directly into permanent supportive housing with access to mental-health or substance-use treatment. Under the new model, more funding will go to transitional housing — which can last up to 24 months and requires participation in treatment programs.
Ross said the population relying on permanent supportive housing is especially vulnerable.
“You're dealing with individuals who have been chronically homeless, they also have a disability, and so how would that fare for them having a two-year limit with their housing component attached,” said Ross.
In a press release about the shift, HUD wrote:
“This NOFO restores accountability to homelessness programs and promotes self-sufficiency among vulnerable Americans.” It continues, “Roughly 90% of the last four years CoC awards funneled funding to support the failed “housing first” ideology, which encourages dependence on endless government handouts while neglecting to address the root causes of homelessness, including illicit drugs and mental illness.”
Ross said the county is now working to find solutions and keep people housed.
“We're looking at about a 2100 units that may fall with outside of that 30% cap. So from there, we're looking at, how can we transition those over to the new housing approaches,” said Ross.
Knestrick fears the long-term impacts of this shift.
“These aren't individuals that you know can just go get a job and pay market rate rent,” Knestrick continued, “Many of those individuals will go back to the streets.”
The application for the next grant cycle closes on Jan. 14 and will then be reviewed by HUD. The funding caps stem from executive orders, but Congress still has the authority to step in and make changes if called to do so.
