Rep. Peters Leads Request Urging HUD to Fix Flawed Homeless Service Funding Formula More Quickly

WASHINGTON D.C. - Today, Representatives Scott Peters (CA-50), Mike Levin (CA-49), Sara Jacobs (CA-50), and Juan Vargas (CA-51) urged Department of Housing and Urban Development (HUD) Acting Secretary Adrianne Todman to accelerate the timeline for finalizing a new formula for allocating federal homeless service dollars. This letter is a follow-up to Rep. Peters' most recent request last year for the Administration to begin the process of revisiting the formula, which HUD confirmed they would do in January of this year. However, the current timeline is unlikely to result in a new formula before the start of a new administration.

In 2022, despite having the nation's eighth-largest homeless population, the San Diego region received the 14th highest level of Continuum of Care (CoC) funding. The CoC funding formula, which has not been updated since 1977, prioritizes factors like the age of housing, which puts newer cities, like San Diego, at a disadvantage.

In their letter, the members write, "In late January 2024, we received a response from you stating that, "HUD is currently developing and will seek comment on a proposed CoC Final Rule that will include changes to the [Preliminary Pro Rata Need] formula." Since late January, Members have repeatedly requested information on the timeline of such a proposed rule."

They continued, "As you may know, since a March 2013 report found that San Diego had the third-highest homeless population in the country, but received the 18th highest level of federal homelessness funding, members of the San Diego delegation have urged HUD to update the CoC formula to ensure an equitable distribution of funding and resources…. After the delegation's repeated advocacy on the topic, then-HUD Secretary Julian Castro announced that HUD would reopen public comment on the funding formula during a visit to San Diego in 2015. Regrettably, the Obama Administration did not finalize the rule after HUD reopened the comment period to update the formula (81 FR 48366) from July to September 2016."

They concluded, "We are concerned that we are heading towards a similar inconclusive resolution. In early July 2024, HUD stated in its Unified Agenda that it estimated a proposed rule would be published and open for public comment in December 2024. Opening a proposed rule for public comment one month before the term ends gives no realistic runway for this rule to be finalized and enacted. We urge HUD to reevaluate the estimated timeline and work quickly to progress the CoC Final Rule through the rulemaking process before the end of President Biden's term."

The full text of the letter can be found here.

Timeline of Congressman Peters' advocacy to change the funding formula:

• March 2013: Sent a letter to then-HUD Secretary Shaun Donovan advocating for an update to the Continuum of Care funding formula.
• November 2013: Sent a letter with Representatives Juan Vargas and Susan Davis asking HUD to open a comment period focused on revisions to the funding formula.
• September 2014: Sent a letter to then-HUD Secretary Julian Castro advocating for a funding formula update.
• January 2015: Met with then-Assistant Secretary of Veterans Affairs Chris O'Connor and advocated for an update to the funding formula.
• February 2015: Call with officials from HUD and the Department of Veterans Affairs to discuss ending veteran homelessness and revising the federal funding formula
• May 2015: Met with Secretary Castro on Capitol Hill to discuss the funding formula disparity and to advocate for an update and the chance for San Diego's input on the process.
• June 2015: Had a call with Secretary Castro to continue advocating for an update to the funding formula.
• October 2015: During a visit to San Diego, Secretary Castro announced his intention to reopen public comment on the funding formula.
• February 2016: Sponsored an amendment to H.R. 3700 requiring the HUD Secretary to reopen the public comment period on the Continuum of Care funding formula.
• May 2016:Announced a commitment from Secretary Castro to reopen the public comment period on the CoC funding formula no later than June 21.
• June 2016: Spoke with Secretary Castro about his plan to provide detailed approaches to replace the formula by mid-July.
• July 2016: Announced that HUD was considering four options to replace the funding formula.
• August 2017: Sent a letter to then-Secretary Ben Carson following the change in administration to request the status of the funding formula revision.
• During the Trump Administration, Rep. Peters focused on stopping cuts to housing vouchers and services for homeless veterans.
• October 2023: Led a request urging HUD Secretary Martha Fudge to revisit the flawed formula used to allocate federal homeless service dollars.

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