Federal Funding Cap Threatens Fresno County Supportive Housing Projects
New federal guidance from the U.S. Department of Housing and Urban Development placed a 30 percent cap on certain funds that support permanent supportive housing and rapid re housing, reducing Fresno County support by roughly 45 percent. The change prompted Turning Point of Central California to issue a 60 day eviction notice to residents, a move county leaders say will displace vulnerable people just before the holidays.
Federal action on December 7 altered the financial landscape for local homelessness programs when the U.S. Department of Housing and Urban Development issued a Continuum of Care notice capping eligible federal support at 30 percent for investments in permanent supportive housing and rapid re housing. For Fresno County the shift amounted to an estimated 45 percent reduction in funding for projects that rely on these federally backed dollars.
The nonprofit Turning Point of Central California informed residents on the same day that because of the anticipated loss of funding it would require people to vacate its facilities by the end of January. County supervisors and service providers said the 60 day notice will displace residents at a time of year when shelter capacity is already stressed. Fresno County Supervisor Luis Chavez called the 60 day notice to residents "devastating" and said local officials are scrambling to find alternatives for impacted people.
County leaders and nonprofit providers moved immediately to assess which programs and residents would be affected. Officials said they were exploring replacement funding options, reallocating local resources and pressing state and philanthropic partners for emergency support. Providers cautioned that gaps in federal support can increase demand for emergency shelter, strain county budgets, and slow progress on efforts to move people into stable housing.
The policy change raises broader institutional questions about how federal funding rules intersect with local homelessness strategies. Continuum of Care dollars have been a core federal tool for financing long term supportive housing, and the new cap reduces predictability for local planning. For Fresno County that unpredictability could force program reductions, jeopardize housing placements already in progress, and shift costs to county social services that are funded through local tax revenue and other grants.
The timing of the cuts also has civic implications. Housing and homelessness policy is frequently a high profile issue in local elections and community advocacy, and abrupt funding changes can mobilize residents and service organizations to demand more transparent federal coordination and clearer transition vesting. In the near term county officials said they will continue negotiating for replacement resources and reevaluating placements between now and the end of January when the eviction notices are set to take effect.
