Also on Friday, an appeals court lifted a block on executive orders seeking to end government support for DEI programs, allowing the orders to be enforced while a lawsuit against those orders works its way through the courts. It’s not clear how that will affect these particular program payments.
The funding, part of HUD’s Continuum of Care program, supports housing for homeless individuals and families. In New York City, the program funds housing for about 11,000 people through short-term apartments, supportive housing, and rental subsidies paid to private landlords.
The city’s Continuum of Care coalition reported that 26 programs had their contracts expire or are set to expire this month.
The delay in federal funding, combined with the shifting conditions and now new court orders, has added uncertainty for local organizations already struggling to address a growing homelessness crisis.
More than 140,000 people in New York City lack stable housing, according to most recent one-day counts.
Fred Shack, CEO of Urban Pathways, a nonprofit that houses formerly homeless adults, said the changing language in HUD’s agreements is concerning. His organization receives a $271,000 federal grant to operate an apartment building in midtown New York City, he told Gothamist.
“If that money were to go away, it is going to have a significant impact on our ability to provide the same level of service,” Shack said.
HUD also informed nonprofits that they are no longer required to follow the Housing First model, the Gothamist added.
This model had allowed people to obtain housing without first meeting conditions like sobriety or employment. Critics say this shift could make it harder for organizations to maintain funding and continue their work.
In a post on X Thursday, HUD Secretary Scott Turner argued that the Continuum of Care program had been used to promote “a woke agenda at the expense of people in need.”
He emphasized that federal grants would now be open to faith-based organizations and would not be used to promote diversity, abortion access or policies supporting undocumented immigrants.
Last week, fair housing groups with grant funding in Massachusetts, Idaho, Texas and Ohio filed a lawsuit against HUD, the U.S. DOGE Service, and Turner in his capacity as HUD secretery, alleging that sweeping cuts will hurt efforts to fight evictions and housing discrimination.
Nicole Branca, CEO of New Destiny Housing, which helps domestic violence survivors in New York secure housing, told Gothamist that her organization has always used federal funds exclusively for rent and housing support.
“100% of the federal funding goes toward keeping people housed, so I have no concerns about meeting the conditions,” Branca said.
New York City officials say they are reviewing HUD’s new requirements.
