Maryland AG Joins Multistate Lawsuit to Protect Homelessness Funding, Warns of Evictions

Maryland Attorney General Anthony G. Brown, as part of a coalition of state officials, has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) to prevent changes to funding streams intended to address homelessness. The lawsuit challenges HUD’s recent attempt to impose caps and new conditions on the Continuum of Care (CoC) program, which provides crucial support for housing and services for individuals experiencing housing instability. The coalition contends that these actions by HUD are unlawful and could lead to tens of thousands of people losing their housing nationwide.

The legal challenge specifically targets HUD’s most recent Notice of Funding Opportunity (NOFO) issued on June 1, which proposes a significant financial allocation for new projects that prioritize transitional housing, effectively limiting funds available for permanent housing solutions. This shift in funding priorities could destabilize established permanent housing projects, putting at risk the homes of approximately 97,000 individuals across the country, according to estimates from the National Alliance to End Homelessness. In Maryland alone, it is projected that up to 2,000 residents could face eviction as a direct result of these funding alterations.

This legal action follows a previous victory for Attorney General Brown and the coalition of attorneys general. Last month, a federal court in Rhode Island ruled in favor of the states, finding that HUD had unlawfully imposed conditions on billions of dollars in CoC funding. For over two decades, HUD has historically supported the permanent housing model and the “Housing First” approach, which focuses on rapidly placing individuals in permanent housing without requiring them to meet prerequisites such as sobriety or minimum income levels. The current federal administration’s recent actions are seen as a departure from this established commitment.

The states involved in the lawsuit argue that HUD’s recent actions violate the Administrative Procedure Act by failing to adhere to proper notice-and-comment rulemaking procedures and by acting in an arbitrary and capricious manner. The coalition is seeking a court declaration that the challenged funding conditions are unlawful and is requesting an injunction to block their implementation. The lawsuit was filed by the attorneys general of Arizona, California, Colorado, Connecticut, the District of Columbia, Delaware, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, along with the governors of Kentucky and Pennsylvania, in addition to Maryland.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office

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