Council wants changes to rapid rehousing for homeless ahead of federal aid cutoff

The city will look for ways to improve and possibly restructure assistance programs for those at risk of losing their homes, in anticipation of the end of federal aid used to address homelessness.

Last week, City Council approved a resolution following a recommendation from the Public Health Committee and the Housing and Planning Committee to consider changes in programs for rapid rehousing aid and permanent supportive housing. The resolution directed the city manager to work with Travis County and relevant homelessness organizations to evaluate the waitlist process for providing both forms of housing assistance.

That evaluation could create a smoother path to permanent supportive housing (PSH) for those receiving rental assistance, which is a main component of rapid rehousing efforts.

The city manager was also directed to collaborate with local agencies and organizations to explore how the public sector and philanthropic community are addressing homelessness in the Austin area.

Late last month, the two committees heard from the Homeless Strategy Office, the Housing Department and representatives from Travis County’s recently formed Supportive Housing Initiative about the coming end of funding from the federal American Rescue Plan that had been allocated toward homelessness efforts. Rapid rehousing has accounted for more than $42 million of the $95 million in federal money, with requirements that recipients get 24 months of assistance.

With that funding set to expire by the end of 2026, the city could end enrollment into that form of assistance at the end of this year unless it substantially restructures how assistance is administered.

Prior to the vote to approve the resolution, Council Member Vanessa Fuentes said Council and staff would look closely at the needs around rapid rehousing when considering the next city budget.

The funding questions come amid pressure from community groups, including Vocal Texas, who have called for an expansion of rapid rehousing assistance.

The city’s 2023 budget year saw 2,226 people enrolled in rapid rehousing assistance with 13 contracted vendors. Federal funding accounted for $18 million of the $23 million total expense, meaning the city would need to find approximately $20 million per year to continue that level of assistance.

Walter Moreau, executive director of Foundation Communities, which provides permanent supportive housing throughout the city, said prior to the COVID-19 pandemic, rapid rehousing was a short-term solution to help those at risk of losing their home, with roughly three months of rental or other payments.

The pandemic made it necessary to keep the unhoused out of congregate-style shelters because of the likelihood of the transmission of serious illnesses, which is why the two years of aid was required.

“It’s been effective at paying the rent for folks who were homeless in very high need. Most programs did 12 months, and now folks are coming up to the end of that and there’s a real panic, understandably,” he said. “The city of Austin has put some money into longer-term rental assistance, but it’s very expensive, and nobody knows how that can be funded. There’s some hope. … I think that there’s a way out of the current budget crunch by just basically cutting off the list at this point, spending down the rest of the money to extend to 24 months, and then moving some people into the PSH units.”

The direction to move some rapid rehousing clients into PSH units could address some of the ongoing pressures around the loss of housing for some, but staff told Council members last month it could also lead to the reemergence of encampments around the city that have been reduced as inhabitants have been moved into congregate shelters such as the Marshalling Yard, which is set to close next spring.

Moreau said a continuation of rapid rehousing assistance would likely need to be very focused, with a possibly shorter window of payments from the city.

“The program has to be really thoughtfully well-designed on the front end and expectations set clearly with people. It needs to be very targeted. Because we had a lot of ARPA money and a lot of people on the street, we were in 13 different programs, not just one. But the program was really generous, and now it’s probably not sustainable.”

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