Editor’s Note: Because recent federal policy changes may have significant implications for housing stability in Massachusetts’ Gateway Cities, we invited the Massachusetts Housing & Shelter Alliance (MHSA) to provide this explanatory overview as a public service for local leaders and residents.
This piece is authored by Caitlin Golden, Chief Policy & Strategy Officer at MHSA.
Communities across Massachusetts are experiencing rising levels of homelessness amid a tight housing market, sustained rent increases, and growing pressure on behavioral health and substance use treatment systems. The impacts are often felt acutely in our Gateway Cities. Emergency shelters in many communities are operating at or over capacity, and a growing number of residents are living in unsheltered conditions, including in tent encampments.
Against this backdrop, changes in federal homelessness policy have introduced a great deal of risk and uncertainty for individuals and families who have experienced homelessness, as well as housing providers. Thousands of people with disabilities may be at risk of losing housing as a result of recent actions by the U.S. Department of Housing and Urban Development (HUD) affecting the Continuum of Care (CoC) program. These changes do not reflect a reduction in funding appropriated by Congress, but rather a shift in how HUD is administering and prioritizing CoC resources, including limits on the renewal of certain permanent supportive housing grants.
The Continuum of Care program has, for decades, been a crucial component of the federal response to homelessness. In Massachusetts, 11 regional CoCs collectively receive approximately $136 million annually. Roughly $91 million of this funding supports permanent supportive housing, primarily by covering rental assistance for individuals and families with disabilities who have experienced chronic homelessness. These funds also enable providers to coordinate services and stabilize housing placements over time.
Permanent supportive housing combines long-term, affordable housing with access to services such as healthcare, counseling, transportation, and employment supports. A substantial body of research has found that this model is associated with improved housing stability and reductions in the use of emergency rooms, hospitals, and correctional systems. For many individuals with complex health or behavioral needs, supportive housing has functioned as a durable alternative to prolonged shelter stays or repeated episodes of homelessness.
Under HUD’s revised approach, a greater share of CoC funding must be directed toward shorter-term or transitional interventions. Providers and local officials have raised concerns that, without sufficient renewals of existing permanent supportive housing grants, some households could be displaced and forced to re-enter shelters or unsheltered settings. National estimates suggest that more than 170,000 households could be affected; in Massachusetts, nearly 4,000 individuals and families may be at risk, though final impacts will depend on implementation and available mitigation strategies.
The potential effects of these changes are of particular concern in Gateway Cities, many of which have seen high levels of homelessness in recent years. Reductions in supportive housing renewals could further increase demand on shelters, strain emergency and healthcare systems, and disrupt the financial stability of nonprofit providers and property owners who rely on Continuum of Care funding to operate existing units.
In response, the Massachusetts Housing & Shelter Alliance (MHSA) has been working with state, local, and national partners to assess the potential impacts of the federal policy shift and to support coordinated planning. A recent court order has temporarily required HUD to process renewals for eligible CoC grants for a 12-month period, providing short-term stability while legal and policy questions continue to be addressed. MHSA has participated in this process, including by submitting a declaration in the ongoing litigation, and is continuing to collect data on anticipated impacts across the Commonwealth.
During this interim period, MHSA is convening providers, advocates, and public officials to share information, identify risks, and explore options for maintaining housing stability. Temporary grant renewals may provide communities with time to plan and coordinate responses, but they do not resolve longer-term questions about the future role of permanent supportive housing within the federal homelessness framework.
As communities consider next steps, state and local coordination will be essential to protecting housing stability for people with disabilities and others who rely on supportive housing. Ensuring continuity of care and housing will require careful planning, clear communication, and evidence-informed decision-making at all levels of government—and Gateway Cities can play a key role.
Get the latest updates on policy issues impacting Gateways Cities delivered right to your inbox.
The Gateway Cities Innovation Institute strengthens connections across communities and helps Gateway City leaders advance a shared policy agenda.