To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Report Title: REPORT ON THE STATUS OF THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT’S HOMELESS PROGRAMS FUNDING CUTS
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
CONSIDER accepting a report on the status of the U.S. Department of Housing and Urban Development’s (HUD) homeless programs funding cuts.
BACKGROUND:
As communicated to the Board previously, HACCC is facing significant cuts in several of its homeless programs. The cuts faced by HACCC are based on the earlier than planned end of the Emergency Housing Voucher (EHV) program along with HUD’s decision on November 14, 2025, to limit Continuum of Care (CoC) funding for permanent supportive housing to no more than 30% of each CoC’s total funding pool. The change in the CoC rules directly affects HACCC’s Shelter Plus Care and Project Based Rental Assistance (PBRA) programs. Our partners in these programs are the County’s Health, Housing and Homeless program along with the nonprofit HOPE Solutions. These cuts will also indirectly affect several of HACCC’s project-based voucher sites. These are separate from the PBRA units. Added to these cuts are more cuts expected due to HUD newly proposed mixed-status rule which is still pending public comment.
The cuts to HACCC’s programs were slated to first impact the Shelter Plus Care program beginning April 1, 2026. As part of the recently approved federal budget, HUD was told to fully fund all CoC contracts renewing in the first quarter of 2026. This would include HACCC’s CoC grant, which expires March 31, 2026. As of the writing of this Board Order, HUD has not indicated it will comply with that Congressional order, and, even if it will, when HACCC can expect payment under the renewed grant.
As for the EHV program, the new federal budget has provided extra tenant-protection vouchers (TPV). These are normally used to provide ongoing housing vouchers to families living in a variety of HUD-funded buildings whose contract terms have expired and are now converting to market-rate. There are not enough TPVs for all expiring EHVs, so a decision will have to be made about whether and when to absorb EHV families into our voucher program. This would have the effect of preserving their housing but shrinking the overall number of units available to Contra Costa families. The alternative is to wait for HUD’s FYE 2026 budget to be finalized to see how the TPV application process will be managed and how many households can be served this way. If we receive TPVs, overall affordable housing will not be reduced, or will be reduced by less than simply converting all EHVs to “regular” vouchers. The issue here is that as many as 1/3 of all housing authorities around the country may go into shortfall, including HACCC. If that happens, and we do not receive any/enough TPVs, then families may be left without any housing support.
Because these changes are still pending HUD’s departmental budget decisions, which will not be made known for about another month, staff are waiting to update the analysis provided to the Board in December 2025. Staff will update the Board further at its March 17, 2026, meeting. As a reminder, attached to this Board Order is the presentation provided to the Board in December 2025. While the timing of some of the cuts are now in question, the basic facts about the number of people served by these programs, and now in danger of losing their housing, is still valid.
FISCAL IMPACT:
Based on 2025 funding levels, HUD’s pending cuts will cost the Housing Authority (HACCC) approximately $14,580,472 in funding dedicated to homeless households in 2026. This funding supports permanent housing for as many as 550 households. Additionally, it is expected that HUD’s proposed mixed status (related to citizenship) rule will add additional cuts this year. That analysis is pending.
CONSEQUENCE OF NEGATIVE ACTION:
None. Informational item only.