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Homeless service providers ask to borrow city, county money due to expected federal grant delays

City Hall as seen from Plum St. in Cincinnati, Ohio, Wednesday, May 12, 2021.
Jason Whitman
/
WVXU
City Hall as seen from Plum St. in Cincinnati, Ohio, Wednesday, May 12, 2021.

A local program that supports people experiencing homelessness is expecting a funding gap that could disrupt services.

The U.S. Department of Housing and Urban Development funds the local Continuum of Care for services like permanent supportive housing, street outreach and rapid re-housing. The next round of grant funding is due July 1.

Kevin Finn is president of Strategies to End Homelessness, which administers the program. He says the annual HUD funding is usually late, but this year is different.

"The current reality is that the federal government is kind of dragging its feet about getting this money out, even though it has been officially awarded," Finn said. "[And] HUD is not fully staffed, so we're expecting that what is normally a one month or so delay will be longer this year."

The 11 organizations that provide those services say they can cover about half the funding needed for five months; they want to borrow the other half from the city and Hamilton County.

A Cincinnati City Council committee voted Tuesday to give initial approval to a loan of about $3.2 million.

About $1.6 million of that would come from a city grant previously awarded to Strategies to End Homelessness a few years ago; the rest would come from "source(s) recommended by the Administration," according to the motion.

The money would be repaid, without interest, when the HUD grant comes through.

Council member Ryan James says the program is important to keep afloat.

"If funding is delayed, approximately 1,500 people could be at risk of losing housing or returning to homelessness," James said. "In addition, 673 individuals could lose supportive services they rely on to obtain or maintain stable housing."

Council member Jeff Cramerding recused himself from the discussion and vote due to a conflict of interest. Other Council members spoke in support, but Meeka Owens expressed hesitation.

"I don't want us to be in a situation where we're robbing Peter to pay Paul, and I feel like that's kind of what we're doing right now without having a fully fleshed out plan," Owens said, referring to one source of the loan: a $2.1 million grant awarded to Strategies to End Homelessness in fiscal year 2024, with several sub-recipients. Of that, about $1.6 million is apparently unspent.

"I want to make sure that we are not undercutting [sub-recipients] as well, who are some of the partners that we are talking about delivering housing stabilization services," Owens said.

She also asked for clarification on whether Hamilton County commissioners had committed to chipping in their half. That question had no clear answer during the committee discussion.

Josh Spring of the Greater Cincinnati Homeless Coalition said even if the county failed to provide any funding, the city money would still cover the program for three months.

"We don't have a final number from the county, although we're sure that they understand the need," Spring told Council. "I think that once this step is done, it will be useful for us to work together to close the deal with the county."

A county spokesperson provided WVXU with a statement: "County Administration has been in discussions with the Homeless Coalition and Strategies to End Homelessness. We are reviewing funding options and are awaiting more information on the timing of the HUD grant and how it impacts the level of need."

Owens proposed an amendment to the motion: "That all sub-grantees of the FY24 Impact Award receive their due funding through the remainder of calendar year 2026 prior to the consideration of using the FY24 Impact Award for other uses."

The amendment passed 6-1 with Scotty Johnson opposing.

It will be up for final City Council approval Thursday. If passed, Council will need to vote again on an ordinance version of the motion, which would include details on the revenue sources.

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Becca joined WVXU in 2021 as the station's local government reporter with a particular focus on Cincinnati. She is an experienced journalist in public radio and television throughout the Midwest. Enthusiastic about: civic engagement, public libraries, and urban planning.