NBC Bay Area
Acc
Elderly, kids, and disabled could lose housing amid federal funding delays
Apr 02, 2025
Children, seniors with disabilities, and men and women living with AIDS are just a few of the groups now in danger of losing their housing in California because of a major delay in funding from the federal government. Those at the helm of homelessness prevention programs tell the NBC Bay Area Inve
stigative Unit they are in danger of shutting down critical housing programs because contracts to fund their efforts, previously awarded to their organizations under the Biden White House, still have not been signed by the Trump administration.
“It’s very worrying,” said Carol Roberts, president and CEO of Lutheran Social Services of Northern California, which provides housing and supportive services to roughly 6,000 individuals and families across 10 counties. “HUD is the primary funder of services for homeless individuals in this country, so it’s not surprising or unusual that we would have primarily HUD funding.”
Carol Roberts (left), president and CEO of Lutheran Social Services, meets with the organizations operations director, Victoria Matthews (right), to discuss how ongoing delays in federal funding are impacting the nonprofit’s homelessness prevention programs.
Contracts HUD approved last year still haven’t been signed
According to Roberts, HUD notified her nonprofit last year that it would be rehiring the organization to continue its work on five specific contracts, aimed at providing housing and other support to hundreds of people in San Francisco, Fairfield, Vallejo, and Sacramento. As a result, when each of those five contracts expired earlier this year, they were supposed to be renewed. To date, however, HUD has only signed one of those contracts and even that final approval only occurred last month, meaning the nonprofit still hasn’t been paid by the federal government for that program. In fact, Roberts says her nonprofit was forced to take out a loan because of the delay.
There’s nothing I can do about it but just wait and see and hope.William Johnson, senior with disabilities
“It’s a very scary thing,” said William Johnson, one of 20 seniors with disabilities in Solano County currently housed by Lutheran Social Services. “There’s nothing I can do about it but just wait and see and hope.”
Johnson, 64, suffers from kidney, heart, and vision problems. He was homeless for about one year before ultimately getting connected to housing, medical care, and other supportive services.
William Johnson, 64, was previously homeless until a nonprofit group connected him with housing, medical care, and other supportive services.
“It was a metamorphosis,” he said. “The program not only helps me have a place to stay, it’s to better my life and hopefully better the lives of others.”
Since finding the program, Johnson has earned his associate’s degree and is currently pursuing a bachelor’s. He is also the music director of his local church.
“It really boggles my mind that they would hold back these programs,” he said. “The worst part is I have no control over it.”
People with AIDS in danger of losing housing amid federal funding delay
In San Francisco, part of the federal funding slated for Lutheran Social Services was supposed to help house 30 low-income men and women living with AIDS, all trying to rebuild their lives after being incarcerated.
“We’re fronting the costs of those services and as a nonprofit, we do not have substantial reserves,” Roberts said. “These decisions now are being made on a daily basis.”
Roberts expects the problem only to grow across the country. While most HUD contracts, she says, expire towards the end of the year, her programs are unusual since they were set to renew at the beginning of this year. Therefore, the bulk of the delays, she fears, are likely still ahead.
“In some respects, we’re like the canary in the coal mine,” she said. “We’re one of the first agencies that are affected by this.”
A housing program in San Francisco, run by Lutheran Social Services of Northern California, provides free housing to 30 men and women living with AIDS. The program, however, is still awaiting federal funding and a finalized contract that HUD pledged to give the nonprofit nearly seven months ago.
HUD didn’t respond to our questions after initially saying it would
NBC Bay Area contacted HUD to find out how many other programs across the country are being impacted by the federal funding delays and to learn what’s causing them. The agency, initially, said it would “respond back” with answers but never did.
It is adding an element of chaos.Dr. Margot Kushel, Benioff Homelessness and Housing Initiative
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“It is adding an element of chaos, of unpredictability,” said Dr. Margot Kushel, one of the nation’s leading researchers on homelessness. “This funding is really irreplaceable.”
Kushel, a physician at UC-San Francisco and the head of the Benioff Homelessness and Housing Initiative, says it is nearly impossible to overstate the role the federal government has long played in supporting homeless prevention programs across the nation. The U.S. Department of Housing and Urban Development (HUD) doles out more than $3 billion dollars each year to programs helping the homeless.
“In many parts of the country, the federal money is the only funding source.”
Those dollars, however, are becoming increasingly less reliable, according to Kushel.
I think we’re talking about playing with people’s lives and really putting them at high risk of dying.Dr. Margot Kushel, Benioff Homelessness and Housing Initiative
Dr. Margot Kushel is one of the nation’s leading researchers on homelessness and heads the Benioff Homelessness and Housing Initiative.
“I think we’re talking about playing with people’s lives and really putting them at high risk of dying,” Kushel said. “I see these delays as that serious.”
Kushel believes the lack of promised funding could have irreversible effects for nonprofits combatting homelessness, potentially forcing some to shut down permanently.
“Remember, these aren’t businesses with deep wells of capital,” she said. “When money is promised to them, they understandably expect the bill to be paid.”
Children and those with disabilities, she fears, could be forced onto the streets within just a matter of weeks.
“It’s like a rug being pulled out from under you,” Johnson said, recalling what life was like when he become homeless.
“We used to be a more compassionate country,” he said. “I don’t know what’s going on.”
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