Homelessness Solutions Dispute Endangers Thousands

Betty Allen’s journey through homelessness highlights the challenges many face in securing stable housing. After caring for her elderly parents during the pandemic and experiencing personal losses due to COVID-19, she found herself grappling with housing instability once again. Her situation is emblematic of a broader issue threatening thousands of vulnerable individuals across Minnesota.

Threat to Homelessness Solutions

Allen successfully transitioned into a permanent supportive housing unit in Waconia, Minnesota. This residence, supported by federal funding from the U.S. Department of Housing and Urban Development (HUD), has been crucial in her recovery. She pays approximately $420 monthly in rent, with the remaining costs subsidized.

However, recent HUD changes pose a serious threat. The agency announced a significant reduction in funding for permanent supportive housing, impacting Allen and numerous others who depend on these resources. On November 25, both Allen and Minnesota Attorney General Keith Ellison joined a vigil to protest this funding cut.

Legal Actions and Funding Shifts

Ellison, alongside 20 other state attorneys general, filed a lawsuit against HUD. They claim the department acted unlawfully in altering the funding structure that previously assisted those in need of stable housing. The abrupt changes could result in administrative chaos, jeopardizing the housing stability for thousands.

• In 2024, Minnesota received approximately $26.5 million for permanent supportive housing.
• This funding constituted about 55% of the state’s total Continuum of Care budget.
• An additional $12.9 million was allocated to rapid rehousing services.

Homelessness Rates on the Rise

The recent turmoil in housing funding coincides with a nationwide increase in homelessness. According to HUD, the number of homeless individuals in the U.S. has risen by 19% from 2007 to 2024. Between 2023 and 2024 alone, this number surged by 18%, with a staggering 40% increase in homeless families.

In Minnesota, this situation is exacerbated by soaring living costs and the lingering effects of the pandemic. Organizations like Catholic Charities have reported a 70% increase in demand for their services since 2021.

Competing Perspectives on Solutions

Debate continues about the most effective strategies to combat homelessness. Advocates for “housing first” policies argue that permanent supportive housing is vital for the stability of individuals at high risk of homelessness. Critics, however, assert that this funding approach does not produce desired outcomes and may create dependency on government aid.

HUD Secretary Scott Turner announced plans to revise funding allocations, making many housing programs compete for resources. Critics fear this will shift much-needed funds away from supportive housing to temporary shelters, potentially worsening homelessness rates.

Preparing for Future Challenges

With Minnesota’s Continuum of Care funding facing significant cuts, homelessness advocates warn of dire consequences. These reductions could lead to increased unsheltered homelessness, particularly as winter approaches.

Local leaders and advocates, including representatives from more than 180 organizations, have urged Minnesota’s Congressional delegation to protect current funding levels. They emphasize the importance of maintaining support for those who cannot secure stable employment and need continued assistance.

• Rep. Pete Stauber voiced concerns over the HUD policy changes, urging for a delay in implementation.
• Senators Amy Klobuchar and Tina Smith expressed similar opposition to HUD’s decision.

Local Initiatives Against Homelessness

Despite these challenges, cities like Minneapolis are committed to reducing homelessness. Local investments aim to create affordable rental units and increase shelter capacities. The city announced a $14 million initiative to advance 11 affordable housing projects and provide new shelter beds, crucial for supporting those experiencing homelessness.

The future remains uncertain as Minnesota navigates rising homelessness and potential funding disruptions. As advocates push for reliable solutions, the well-being of individuals like Betty Allen hangs in the balance.