Michigan Attorney General Dana Nessel has joined a multistate coalition to file a lawsuit against the U.S. Department of Housing and Urban Development (HUD), seeking to block new funding rules for federal homelessness programs. The lawsuit alleges that HUD is trying to bypass a recent court loss by implementing a $1.3 billion “set-aside” for new transitional housing projects.

Background

This move acts as a de facto cap on permanent housing initiatives. The legal battle comes just one month after Nessel and other state attorneys general won a separate court case against HUD. That previous ruling stopped the agency from placing a direct 30% funding cap on the Continuum of Care (CoC) program, which distributes billions of dollars to local housing and support services.

According to data from the National Alliance to End Homelessness cited in the lawsuit, the funding redirection threatens the stable housing of at least 97,000 residents nationwide, including thousands of people within the state of Michigan. State officials argue that if these individuals face eviction due to lost federal funding, local and state governments will be forced to handle the fallout.

Lawsuit Details

The lawsuit claims the current administration is actively working to dismantle the “Housing First” model, which focuses on placing individuals experiencing homelessness into permanent housing quickly, without prerequisites like sobriety or income thresholds. The legal complaint states that HUD’s new funding notice violates the Administrative Procedure Act.

Original reporting: Tampa Free Press — read the source article.