Housing & Homelessness Brief

2026-09-02 · Archive

The House voted 370-48 Tuesday to pass the Senate's continuing resolution funding the government through December 11, sending it to President Trump, who was expected to sign it. In the First Circuit, a three-judge panel ordered supplemental briefing on HUD's motion to stay the vacatur of the FY2026 Continuum of Care funding notice, with the plaintiffs' response due today, September 2. Multnomah County deleted three questions related to race, sexual orientation and preferred language from the survey that prioritizes applicants for subsidized housing, after the Justice Department and HUD opened investigations into the screening tool in May. City Bureau reported that Chicago stands to lose almost $67 million in Continuum of Care funding and 5,892 of its more than 9,000 permanent supportive housing beds under proposed federal cuts.

Arcs in this edition: FY2026 Continuum of Care NOFO vacatur FY2027 continuing resolution and appropriations Multnomah County housing screening tool under federal scrutiny Portland participatory budgeting ballot measure Preschool for All tax and program finances Sacramento's senior micro-community buildout

Portland & the Metro

Federal scrutiny compels Multnomah County to change how it prioritizes people for housing

The Oregonian/OregonLive · 2026-09-01

Multnomah County deleted three questions related to race, sexual orientation and preferred language from the survey it uses to determine who qualifies for subsidized housing, after federal officials opened investigations into the county's screening practices and a disabled applicant filed a discrimination lawsuit. The survey, administered by trained providers to anyone seeking housing support, generally requires a score of at least 16 points to qualify for the county's priority housing pool. A county spokesperson disputed the characterization that the tool scored applicants by race, writing that it "has never included any scored questions about race."

A Justice Department official announced an investigation into the county's housing-support practices in May 2026, and HUD announced its own Fair Housing Act investigation of the screening tool the same month.

Multnomah County housing screening tool under federal scrutiny fair-housing homeless-services-department

Participatory Budgeting Measure Faces Organized Opposition, Including From the Mayor

Willamette Week · 2026-08-31

Portland Ballot Measure 26-267, which would let Portlanders decide how 2% of the city's general fund is spent every year, drew organized opposition from Mayor Keith Wilson and the Northwest Oregon Labor Council through a new PAC called Protect Our City Services. Wilson said the measure would pull "at least $16 million a year from the fund that pays for shelter beds, park maintenance, and investigators." Backers qualified the measure for the November ballot after submitting 78,000 signatures.

The PAC, Protect Our City Services, had not yet appeared on the Oregon secretary of state's campaign finance database as of publication.

Portland participatory budgeting ballot measure ballot-measures fiscal-policy public-funds

NEWS RELEASE: Multnomah County Commissioners unanimously delay Preschool for All income tax increase for one year

Multnomah County · 2026-08-27

Multnomah County commissioners unanimously approved an amended resolution to delay a 0.8% increase in the Preschool for All marginal income tax by one year, so the increase takes effect January 1, 2028 instead of January 1, 2027. The tax currently applies at 1.5% on single-filer income over $125,000 and 3% over $250,000, with joint-filer thresholds of $200,000 and $400,000.

The 0.8% increase was originally set to take effect in 2026; the board voted unanimously in 2024 to delay it to 2027, making this the second one-year delay.

Preschool for All tax and program finances county-budget fiscal-policy

Weekly Street Services report: August 24-30, 2026

Portland.gov · 2026-09-01

The city's street services teams received 1,852 new campsite reports during the week of August 24-30, including 440 reports of people living in vehicles, assessed approximately 723 reported campsites, and removed 132 campsites the city said posed health and safety risks. Of people contacted, 25 expressed interest in a shelter referral, 5 accepted referrals and 3 used a shelter bed for at least one night.

The prior week's report (August 17-23) recorded 1,931 new campsite reports and 161 campsite removals.

encampment-sweeps shelter-referrals

Elsewhere in the Country

Sacramento micro communities move forward with some pushback

KCRA · 2026-08-28

Sacramento broke ground on the Gardendale Road micro-community near Meadowview, the first of four planned tiny-home sites for unhoused people 55 and older, with 40 units planned there and 28 at a 25th Street site. City officials confirmed the Arena Boulevard site in North Natomas is paused; an internal city manager's office memo obtained by KCRA estimated that site's development and construction at a minimum of $7.1 million, up from a $3.5 million estimate in September 2025 presentations, which officials attributed to its flood-zone location. Mayor Kevin McCarty said "pause does not mean it's done."

Councilmember Lisa Kaplan said on August 26 that the Arena Boulevard project was "officially not moving forward."

Sacramento's senior micro-community buildout affordable-housing-siting public-funds shelter-capacity

Sac County homeless programs serve over 6,600 as officials review spending, outcomes

Folsom Times · 2026-08-30

Sacramento County reported that selected county-funded homelessness programs served 6,662 people in fiscal year 2025-26, a 44% increase over three years, and that 43% of participants who left programs transitioned into permanent housing. The Department of Homeless Services and Housing's FY2026-27 budget includes about $65.6 million for contracts and services.

The county's programs served 4,614 people in fiscal year 2023-24.

county-budget public-funds

Long Beach is fencing off the tunnel under Ocean Boulevard to keep people from living there

LAist · 2026-09-01

Long Beach is building a metal fence around the 1927 Jergins Tunnel beneath Ocean Boulevard, which people have used as shelter since the pandemic; firefighters have doused fires inside at least four times since 2022. A city spokesperson said $156,200 has been spent so far on materials and labor and the project won't be finished until mid-to-late September. The city cited site security, vandalism and fire reduction, and the tunnel's structural integrity as reasons for the fence.

The city spent $811,449 on a fence around the Billie Jean King Main Library's outdoor terrace.

encampment-sweeps public-funds

First modular unit delivered for Altadena low-income rental complex

LAist · 2026-08-31

The first prefabricated unit of a 14-unit low-income rental complex arrived in West Altadena, trucked roughly 70 miles from Perris, to replace courtyard apartments on East Pine Street destroyed in the Eaton Fire. The Altadena Builds Back Foundation helped assemble nearly $6 million for the project, drawing on donations to the Pasadena Community Foundation and philanthropist Molly Munger. A lottery will be held in October to decide who the units will be offered to.

A survey conducted last year by the Eaton Fire Collaborative found that 72% of Altadena renters are still in need of housing.

affordable-housing-production disaster-recovery

Perfect Storm: Federal cuts threaten 'gold standard' of Chicago homeless services

City Bureau · 2026-08-27

City Bureau reported that Chicago stands to lose almost $67 million in federal Continuum of Care funding and 5,892 of its more than 9,000 permanent supportive housing beds if proposed federal cuts are enacted, and that Illinois as a whole would lose $106 million and 9,362 of 21,400 beds. The Trump administration tried in November to impose a 30% cap on Continuum of Care money used for permanent housing programs. Federal COVID-19 relief money that supports local services must be spent by the end of 2026, with no plans to replace it, the outlet reported.

The FY2026 CoC funding notice carrying HUD's new conditions was vacated by a federal court on August 7; HUD has appealed and moved for a stay pending appeal.

FY2026 Continuum of Care NOFO vacatur coc-nofo federal-homeless-funding supportive-housing

CPS policy seeks to make it easier for students experiencing homelessness to enroll in school and get support

Chicago Sun-Times · 2026-08-28

The Chicago Board of Education unanimously approved an updated policy for students in temporary living situations, the district's first such update in a decade. The policy mandates same-day enrollment, requires schools to set aside private spaces where families can confidentially request assistance, lets students without guardians self-enroll, and gives schools with 75 or more affected students a dedicated advocate position. At least 22,000 CPS students — about 6.8% — experienced homelessness during the 2024-2025 school year.

During the 2023-24 school year, 3.2% of public school students experienced homelessness in the U.S.

youth-homelessness

Manhattan Rent Hits All-Time High in Blow to Mamdani: 'Pressure Cooker'

Newsweek · 2026-08-27 · on Corcoran's July 2026 Manhattan rental market report

Real estate brokerage Corcoran reported that Manhattan's median rent reached $5,295 in July, its highest level on record, up 6 percent from a year earlier. Average monthly rents were $4,088 for a studio, $5,486 for a one-bedroom, $8,054 for a two-bedroom and $12,228 for a three-bedroom. Rental inventory was down 22 percent compared with July 2025.

housing-market rent-data

Struggling in the shadows: Inside Union Square's homeless community

amNY · 2026-08-30 · on street homelessness and city outreach at Union Square

amNY profiled people living unsheltered around Union Square, who described shelter-safety concerns and years on the street. A Department of Homeless Services spokesperson said the agency has intensified efforts in the area, with outreach teams canvassing the neighborhood twice a day, and that outreach teams made 43 shelter placements there over the last four months.

shelter-referrals

National Policy & Trends

Funding extension clears House, avoiding shutdown threat

Roll Call · 2026-09-01

The House voted 370-48 Tuesday to pass the Senate's continuing resolution keeping federal agencies funded through December 11, sending it to President Trump, who was expected to sign it. The Senate passed the measure 90-6 in early August. The bill carries anomalies the Senate added, including for 2028 Olympic preparations and housing assistance, and provides funding flexibility for WIC, disaster relief, and wildland fire programs.

FY2026 government funding was set to expire September 30; the House's own July continuing resolution had run only through December 4.

FY2027 continuing resolution and appropriations federal-homeless-funding fiscal-policy

National Alliance to End Homelessness v. U.S. Department of Housing and Urban Development (26-1923)

CourtListener · 2026-08-27 · on First Circuit supplemental-briefing order on HUD's motion to stay the CoC NOFO vacatur ·

A three-judge First Circuit panel (Montecalvo, Aframe, and Dunlap) ordered supplemental briefing on HUD's emergency motion to stay the vacatur of the FY2026 Continuum of Care funding notice pending appeal, directing the parties to address whether 42 U.S.C. § 11382(a) gives the Secretary discretion to set aside Continuum of Care funds so long as congressionally mandated set-asides under § 11386b(a) and (b) are met, and what "bonuses or other incentives" means in § 11386b(d)(1). The order set appellants' supplemental memorandum for August 31 at 5 p.m., appellees' response within two days thereafter (September 2), and any reply within two days after that.

The District of Rhode Island vacated the FY2026 CoC funding notice on August 7, and briefing on the stay motion itself closed August 24 with HUD's reply.

FY2026 Continuum of Care NOFO vacatur coc-nofo federal-homeless-funding federal-litigation

Residential construction spending falls 7.3% year over year in July

Scotsman Guide · 2026-09-01

The Census Bureau reported that construction spending during July 2026 was estimated at a seasonally adjusted annual rate of $2,157.6 billion, 0.5 percent below the revised June estimate and 3.8 percent below the July 2025 estimate. Private residential construction was at a seasonally adjusted annual rate of $859.0 billion, and residential spending overall was 7.3 percent below its year-ago rate.

The Census Bureau's August 2026 construction spending release is scheduled for October 1.

housing-market

Proposal for housing and homeless services at former HUD headquarters scrapped

WTOP · 2026-09-01

Rooted Communities announced its proposal to convert the Robert C. Weaver Federal Building, HUD's former headquarters in Southwest D.C., into about 1,000 housing units along with space for homeless and community services will not move forward. The group said it had raised $500 million and brought together 20 of D.C.'s top nonprofits. D.C. officials opposed concentrating homeless housing at a single site, with Deputy Mayor Nina Albert citing the D.C. General shelter as a concentration that "didn't work."

The General Services Administration removed the Weaver Building from its federal property sales list in late July.

affordable-housing-siting supportive-housing

On the Calendar