‘This will completely upend the homeless support system’: Snohomish County reacts to federal funding changes

Several Snohomish County organizations that work with people experiencing homelessness are concerned about the federal government’s latest policy changes to a permanent housing program. 

The changes include cutting permanent housing program funding by more than half. 

Mary Anne Dillon, vice president of permanent housing for YWCA Seattle | King | Snohomish, said this would impact the county’s most vulnerable neighbors.

“This will completely upend the homeless support system in every community across the nation,” Dillon said.

The Department of Housing and Urban Development (HUD) issued the Continuum of Care (CoC) Notice of Funding Opportunity (NOFO) on Nov. 13. State, local and nonprofit organizations have a Jan. 14 deadline. Awards are expected in May.

Bobby Thompson, executive director for the Housing Consortium of Everett and Snohomish County (HCESC), said that isn’t enough time. 

“These are not small applications,” Thompson said. “Usually, organizations spend three to four months putting stuff together.”

The CoC program is the largest resource for federal homelessness assistance funding. It serves thousands of people at risk of and experiencing homelessness each year, including veterans, people with disabilities, older adults and young children.

About 87% of CoC funds are currently allocated to permanent housing, the National Low Income Housing Coalition (NLIHC) said in a statement Nov. 14. This includes permanent supportive housing and rapid rehousing. 

Under the NOFO, organizations can only spend 30% of their CoC funding on permanent housing. 

The Washington State Standard reported that the state receives about $120 million per year for permanent supportive housing. Most of that goes to the following counties: Snohomish, King, Pierce, Clark and Spokane.

HUD currently provides Snohomish County about $17 million in CoC funding to house around 800 households in permanent housing, according to the Housing Authority of Snohomish County (HASCO).

Multiple states, including Washington, sued the Trump administration Nov. 25 to challenge the policy changes it made to the CoC program. The states are asking for a preliminary injunction as litigation continues.

HUD said in a statement Nov. 13 that the changes are in line with Trump’s Executive Order issued in July and titled “Ending Crime and Disorder on America’s Streets.”

The NLIHC, along with other organizations, condemned the executive order as it promotes harmful policies for addressing homelessness, such as mandating work and service requirements.

HUD Secretary Scott Turner said in the statement: “These long-overdue reforms will promote independence and ensure we are supporting means-tested approaches to carry out the President’s mandate, connect Americans with the help they need, and make our cities and towns beautiful and safe.”

Many studies have shown that the housing first model is an effective approach to helping people experiencing homelessness, according to the National Alliance to End Homelessness (NAEH).

YWCA offers rapid rehousing and permanent housing, among other types of services. The shelter plus care program, specifically, is the organization’s largest program. It helps unhoused adults and families with disabilities by giving them permanent housing and long-term support services. 

CoC funding keeps the program going. With the 30% cap, Dillon said the county’s most vulnerable neighbors are at risk of being homeless and on the streets. 

“Federal funding is an essential source of support for our programs,” Dillon said. “The importance of federal funding goes beyond what service providers receive directly from the federal government.”

Thompson said the policy changes would send housing providers back to a “harm reduction model,” such as a transitional housing model. This type of housing can be ineffective, he said, because not everyone can overcome their challenges in 24 months.

Although the HCESC doesn’t directly receive CoC funding, Thompson said housing providers that are a part of the consortium have been trying to process the changes since they were released. 

“I think they’re working very hard right now to understand the overall landscape with this and where things are going,” Thompson said.

Cocoon House CEO Joe Alonzo said the NAEH released a summary analysis that can help guide providers’ thinking about the policy changes. 

The CoC application is not available yet, which means Cocoon House and other organizations are only anticipating what might be required for each type of housing program. 

“Once the application is released, we will have to start making some concrete decisions on how to minimize the impacts to local individuals and families being supported with CoC funds,” Alonzo said.

Founded as an emergency shelter for youth in 1991, Cocoon House has grown to include a continuum of programs designed to prevent and end youth homelessness. Cocoon House offers short- and long-term housing, street outreach and prevention services aimed at strengthening families in Snohomish County.

Debra Bordsen, CEO for Domestic Violence Services of Snohomish County, said the uncertainty is “very tough” for her clients and staff. Her organization is waiting to see what the courts decide on.

Lynsey Gagnon, executive director of Interfaith Family Shelter, said her organization doesn’t receive CoC funding but is preparing to see an uptick in calls and requests for help due to the changes.

“We’re going to see those trickle down effects,” Gagnon said. “It’s going to be a cycle for many of these families again into homelessness.”

HASCO Communications Manager Pam Townsend said the housing authority doesn’t receive CoC funding. However, the “about-face shift in priorities” should alarm everyone as it won’t make communities safer or better funded, she said.

“It will lead to more expensive interactions with law enforcement and emergency rooms, far beyond the $17 million currently spent,” Townsend said. “To reverse priorities overnight and further penalize housed families, putting them at risk of eviction and homelessness, is a societal failure.”

Brian Smith, president/CEO of Volunteers of America Western Washington, said his organization doesn’t receive CoC funding and doesn’t anticipate disruptions to services. 

Kari Bray, communications director for the Snohomish County Executive Office, said the Human Services department is considering different options, including whether to use some funds from the Affordable Housing and Behavioral Health fund to help keep people housed through the end of 2026.

“Though we’ll continue to do what we can at the county level to reduce and prevent homelessness, it’s important to know that local dollars simply cannot make up for sustained losses of federal funding,” Bray said. “We expect that longer term solutions will be needed for gaps in federal funding, and those solutions will require coordination at the local, county and state level as we head toward the County’s 2027-28 biennium.”

Angelica Relente is a Murrow News Fellow covering housing and related issues in South Snohomish County for the My Neighborhood News Network. Contact her at angelica@myedmondsnews.com.