Local agencies await updated HUD contracts amid new policy concerns

The Continuum of Care: Homelessness Planning Council meeting held on April 9, 2025, in Nashville, focused on the current status of funding contracts for local agencies addressing homelessness. Participants discussed the recent award letters sent to agencies, which confirmed funding amounts but did not guarantee contracts for all recipients. Some agencies received contracts that were later rescinded, leaving many in uncertainty about their funding.

The council noted that no local agencies had yet received updated contracts, despite ongoing communication with Continuums of Care (COCs) across the state. There was hope that final contracts would soon be issued, as some regions in East Tennessee reported progress in this area.

A significant point of discussion was the new language included in the draft contracts shared by the HUD secretary. This language outlines specific client eligibility criteria, including restrictions on serving undocumented individuals, which marks a shift from previous contract terms. The final details of these contracts remain unclear, and council members expressed concern over the implications of these changes.

Additionally, it was highlighted that the recent continuing resolution budget passed by Congress included HUD funding but did not provide increases for fair market rent. This could impact the number of clients agencies can serve and the overall funding amounts available.

The meeting concluded with a commitment from council members to stay informed and provide updates as more information becomes available. The ongoing uncertainty surrounding funding and contract terms underscores the challenges faced by local agencies in their efforts to address homelessness in Nashville.