HomeMy WebLinkAbout2026-042 Homelessness Funding ChangesJuly 10, 2026 Report No. 2026-042
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Homelessness Funding Changes
EXECUTIVE SUMMARY:
The US Department of Housing and Urban Development (HUD) announced in June changes to
homelessness funding nationally, including on HUD’s priorities for new awards. Denton County
agencies have collaborated and submitted applications to support continued housing programs for
individuals and households experiencing homelessness as well as for new supportive
programming.
BACKGROUND:
On June 1 the US Department of Housing and Urban Development (HUD) released a new Notice
of Funding Opportunity (NOFO) for the Continuum of Care (CoC) Program for homelessness
solutions.
This NOFO seeks to implement the change in policy direction that HUD first indicated they would
be seeking in December last year before a federal court ruled that HUD would have to honor the
existing awards and re-release following the proper notice and comment procedures.
On June 12 Texas Homelessness Network (THN), who leads the Balance of State CoC, which
includes Denton County, started their local CoC competition for agencies interested in being part
of their application to the national CoC competition. The application period closed on July 7.
DISCUSSION:
HUD seeks to move homelessness funding away from permanent housing programs, such as rapid
rehousing (RRH) and permanent supportive housing (PSH) into transitional housing (TH) and
supportive services (SSO). THN notified currently funded PH agencies if they should reapply for
their permanent housing programming or if they should seek to transition their programs to a TH
program.
MHMR Denton County was selected to continue their PSH programming, while other permanent
housing programs through Giving Grace, Denton County Friends of the Family, and Christian
Community Action were directed to apply to transition their awards to TH. To administer a
scattered site TH program, agencies must select either a leasing model where the agency signs a
lease on behalf of the client and assumes the risk, or a tenant-based model where the client signs
the lease (most like what currently exists under RRH or PSH now). A complication of the tenant-
based model is that HUD requires a unit of government (City, County, or Housing Authority) to
join the agency’s application as a subrecipient to administer the rental assistance payments. A
leasing model creates unfunded risk for agencies administering the programming.
July 10, 2026 Report No. 2026-042
All agencies have decided to move forward with their applications. Giving Grace has applied for
TH under a leasing model, with City of Denton support to mitigate risk concerns. Lewisville based
Christian Community Action has selected to move forward with a tenant-based model with the
City of Lewisville joining as their subrecipient.
The City of Denton has submitted an application to THN for a Supportive Services Only – Street
Outreach grant to establish an internal street outreach team that would be integrated with public
safety dispatch, allowing caseworkers to respond to non-emergency calls related to homelessness
in lieu of police officers, when there is not a safety or criminal concern.
THN will announce the results of the local competition in advance of their collaborative
application due to HUD on Aug. 28. Staff will provide a follow-up ISR on the results of the local
competition and what it means for homelessness funding in Denton County.
STAFF CONTACT:
Jesse Kent
Director of Community Services
jesse.kent@cityofdenton.com
REQUESTOR: Staff initiated
STAFF TIME TO COMPLETE REPORT: One hour
PARTICIPATING DEPARTMENTS: Community Services