HR 2206119th CongressIn Committee

Prevent Homelessness Act of 2025

Introduced: Mar 18, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Prevent Homelessness Act of 2025 would create a new Housing Stabilization Fund at the Department of Housing and Urban Development (HUD) to provide emergency housing assistance through Continuums of Care (CoCs) for extremely low-income renters and homeowners who are experiencing financial hardship that threatens their housing stability. Eligible programs would deliver short-term aid for things like rent, mortgage, utilities, arrears, housing repairs, and related services (counseling, legal help, DV services, etc.) with the aim of preventing homelessness and stabilizing housing. Grants would be allocated to CoCs based on a formula, with a portion via a competitive process, and funding would be authorized at $100 million annually for 2027–2031. The bill emphasizes data-driven targeting (using PIT counts), coordination with local prioritization systems, and leveraging non-Federal funds to maximize impact.

Key Points

1Establishes the Housing Stabilization Fund at HUD, operated through the Office of Special Needs Assistance Programs to distribute emergency housing assistance via CoCs to extremely low-income households.
2Eligible uses of funds include rent (prospective and arrears), mortgage payments, utilities, housing repairs, supportive services (mental health, DV, employment counseling, substance abuse treatment), housing counseling, legal assistance, security deposits, and other short-term costs that promote housing stability.
3Eligibility criteria require programs to be run by or through a CoC or collaborating entity, operate within the CoC’s area, serve households unable to meet housing obligations due to financial hardship, coordinate with local prioritization systems, and meet additional Secretary-established requirements.
4Funding approach: starting in FY 2027, 100 million dollars per year; 80% of annual grants allocated by a formula (based on factors like extreme and very low-income populations and unsheltered homeless counts from PIT), and 20% allocated via a competitive process designed to prioritize the lowest-income households and encourage prevention, leveraging of non-Federal funds, and innovative delivery methods.
5Applications and oversight: CoCs must submit an application for grant eligibility, with the Secretary approving the plan and ensuring compliance with program rules and alignment with local prioritization and data requirements.

Impact Areas

Primary group/area affected: Extremely low-income renters and homeowners at risk of homelessness, including those who are severely cost-burdened or unsheltered as identified by local PIT counts.Secondary group/area affected: Continuums of Care and their partner service providers, local governments, and community organizations that administer emergency housing assistance programs; survivors of domestic violence and others requiring housing-related services (counseling, legal aid, etc.).Additional impacts: Could influence overall homelessness trends by prioritizing prevention and rapid stabilization, encourage leveraging non-Federal funding, and require enhanced data reporting and coordination with local homeless prioritization tools (like Coordinated Entry Systems). Budgetary impact includes a new annual $100 million appropriation (FY2027–2031), with implementation contingent on future appropriations acts.

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