Housing & Homelessness Brief

2026-09-04 · Archive

Pallet Shelter, the Everett-based manufacturer of micro-modular shelter units used by cities including Seattle, announced it will cease operations Friday, months after a 75-unit Pallet shelter opened in Seattle's Interbay neighborhood under a contract that grew from $1.3 million to almost $4 million. Street Roots reported that about 31% of people offered shelter through Portland's camping-ban sweeps and police contacts accepted it, over a period in which the city swept more than 6,000 encampments. In the First Circuit, no ruling had issued on HUD's motion to stay the Continuum of Care NOFO vacatur as of the docket's September 3 update, with HUD's supplemental reply due today at 5 p.m. HUD published FY2026 Housing Trust Fund allocations totaling $255.5 million, up from $223 million in FY2025. Portland-area news ran thin today, so the elsewhere and national sections carry the balance.

Arcs in this edition: Berkeley's Eighth and Harrison encampment closure FY2026 Continuum of Care NOFO vacatur Jerrold Commons idle cabins KCRHA wind-down to a coordination role NW Northrup Shelter building foreclosure Pallet Shelter shutdown Portland's camping ban enforcement St. Paul Pig's Eye encampment closure

Portland & the Metro

Only two genuinely fresh Portland-area stories cleared the dedup window today; the elsewhere and national sections carry the balance.

Officials point to shelters as a step toward reducing homelessness, but fail to consider the factors pushing people away

Street Roots · 2026-09-03 · on shelter acceptance rates under Portland's camping ban

Street Roots reviewed city data on Portland's public camping ban and reported that the Impact Reduction Program has swept over 6,000 encampments since the ban took effect. Impact Reduction Program weekly reports showed 308 of 1,362 people accepted shelter when offered, and Portland Police Bureau data showed 539 of 1,397 people accepted shelter offered by PPB, for a combined acceptance rate of about 31%. Shelter residents interviewed cited belongings restrictions, daily room inspections, theft, and curfews as reasons for declining; Path Home executive director Brandi Tuck put average shelter cost at about $4,000 per person per month.

Portland's ban on sleeping in public took effect Nov. 1, 2025.

Portland's camping ban enforcement camping-ban encampment-sweeps shelter-referrals

As Portland homeless shelters close, those remaining fear they can't fill the gap

KGW · 2026-09-04

The 200-bed NW Northrup Shelter is set to close permanently on September 18, one year after it opened, and the city said priority services in the area — camp removals, trash pickup, and perimeter security checks — end with the closure. Blanchet House's Bethanie's Room, a 75-bed women's shelter nearby, is already hitting capacity, and executive director Steve Cook said demand is rising even before nearby shelters close.

The shelter building's owner faces a foreclosure suit by Northwest Bank, reported August 27; the closure is one of several this year attributed by the city and county to budget cuts.

NW Northrup Shelter building foreclosure budget-cuts shelter-capacity

Elsewhere in the Country

Pallet, Company That Built Just-Opened Interbay Shelter, Closes Abruptly

PubliCola · 2026-09-03

Pallet Shelter, the Everett-based manufacturer of micro-modular shelter units, announced it will cease operations Friday. The closure comes months after the nonprofit Everyone Deserves Housing opened a 75-unit Pallet shelter in Interbay under a Seattle Human Services Department contract amended in April from $1.3 million to almost $4 million. Mayor Katie Wilson said the city would continue opening wooden tiny houses; PubliCola reported the city has opened or announced a net 175 new Pallet and tiny house units against Wilson's goal of 1,000 new shelter beds in her first year.

In 2024, a fire at a Pallet shelter on Elliott Ave. W operated by Catholic Community Services destroyed or damaged 25 units and displaced 28 people.

Pallet Shelter shutdown public-funds shelter-capacity

KCRHA Transition Update: Building the Next Phase of the Regional Homelessness Response

King County Regional Homelessness Authority · 2026-09-03 · on the transfer of about $150 million in contracts back to Seattle and King County

KCRHA said the transition announced in July by King County Executive Girmay Zahilay and Seattle Mayor Katie Wilson has moved from planning into implementation, with administration of approximately $150 million in locally funded annual homelessness service contracts moving back to Seattle and King County. The authority said it has begun reducing and restructuring staffing, is concluding interlocal agreements with seven cities including Bellevue and Redmond, and will retain federal Continuum of Care responsibilities including HMIS, Coordinated Entry, and the Point-in-Time count.

The authority said it has reached the 90-day milestone in the Corrective Action Plan adopted after this year's financial reviews; its layoffs began in late August.

KCRHA wind-down to a coordination role homelessness-agency-governance public-funds

Lurie vowed to add more shelters. A $7M cabin community has sat empty nearly a year

The San Francisco Standard · 2026-09-02

The Standard reported, citing emails obtained by public records request, that 60 tiny cabins San Francisco bought for about $7 million have sat unused in a Bayview parking lot at Jerrold Commons for nearly a year, after the mayor's office scrapped a planned SoMa shelter site at 428 11th St. on September 30, 2025. The Housing Accelerator Fund's records show $219,000 was spent on the abandoned SoMa project, and the outlet reported the city has no timeline, budget, or plan to reactivate the cabins.

A January report from the city homelessness department found Bayview-Hunters Point has 21% of the city's unsheltered population and 11% of its shelter beds, while SoMa holds 28% of beds and 11% of the unsheltered population.

Jerrold Commons idle cabins public-funds shelter-capacity

Berkeley is arguing with its homeless residents over which sidewalks they can camp on

The San Francisco Standard · 2026-09-02 · on the postponed Harrison Street encampment sweep

Berkeley announced last week it would clear the Harrison Street encampment September 8 but has postponed the sweep until after a September 8 status hearing before U.S. District Judge Edward Chen, who has ruled the city may dismantle the camp only after relocating 23 disabled residents and storing their possessions. Berkeley Homeless Union president Yesica Prado toured five candidate tent sites with city representatives; per Prado, the city dismissed four and said the fifth, on Camelia Street, could accommodate only two people.

Notices to residents had set the Eighth and Harrison closure for September 8; both sides update Judge Chen on relocation progress at that day's hearing.

Berkeley's Eighth and Harrison encampment closure encampment-sweeps homelessness-litigation

New data details how Ramsey County allocated $2.25M as Pig's Eye Park camp closure loomed

KSTP · 2026-09-01

A spending breakdown KSTP obtained from Ramsey County showed how St. Paul and the county allocated $2.25 million for shelter expansion before clearing the Pig's Eye Park encampment in early August: $969,500 to Catholic Charities' Higher Ground for 49 beds, $103,125 to Model Cities for 6 stabilization beds, $300,000 for housing-focused case management, and $880,000 in city funds still in contract negotiations. The city previously confirmed only seven people from the camp accepted the beds, and outreach worker John Tolo estimated over 200 people are now at the Randolph Avenue camp.

The county's Shelter Entry and Diversion team handled 608 calls in the most recent reporting week, including 380 for shelter reservations, with several adult shelters at or near capacity.

St. Paul Pig's Eye encampment closure encampment-sweeps public-funds shelter-capacity

City readies to open shelter, clear homeless encampments

Cville Right Now · 2026-08-31 · on Charlottesville's Holiday Drive shelter and Free Bridge encampment

Charlottesville planned to open a temporary low-barrier emergency shelter at 2000 Holiday Dr. on Tuesday, September 1, with capacity for 120 people, run by Central Arizona Shelter Services, which set out 37 beds for men, 21 for women, and four isolation beds. The city planned to begin clearing the Free Bridge encampment the same day; City Councilor Jen Fleisher said about 25-30 people remained there. Fleisher said about 80 spaces from a BRACH-managed list become available when Vista 29 opens this fall.

The Free Bridge encampment held as many as 120 people at its height.

encampment-sweeps shelter-capacity

National Policy & Trends

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

CourtListener · 2026-09-02 · on HUD's pending stay motion in the CoC NOFO vacatur appeal ·

Appellees — including NAEH, NLIHC, Boston, Cambridge, Tucson, Santa Clara County, King County, and Nashville — filed their supplemental response September 2 to the First Circuit panel's questions on HUD's set-aside authority under 42 U.S.C. § 11382(a) and the meaning of "bonuses or other incentives" in § 11386b(d)(1). HUD filed its supplemental memorandum August 31, and under the panel's schedule its supplemental reply is due by 5 p.m. today, September 4. As of the docket's September 3 update, the panel had not ruled on HUD's emergency motion to stay the vacatur of the FY2026 Continuum of Care funding notice.

The District of Rhode Island vacated the FY2026 CoC funding notice on August 7; the panel's August 27 order set the supplemental briefing schedule that ends with today's reply.

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

Housing Trust Fund: Fiscal Year 2026 Allocation Notice

Federal Register · 2026-09-04

HUD published the FY2026 Housing Trust Fund formula allocations, totaling $255,516,650.92 across the 50 states, D.C., Puerto Rico, and four territories. California received the largest allocation at $28.2 million, followed by New York and Texas, with most small states receiving the $3.3 million minimum. The notice makes the Virgin Islands' allocation subject to the suspension of the Virgin Islands Housing Finance Authority.

The FY2025 allocation notice, published December 8, 2025, totaled $223,024,239.90.

affordable-housing-production fiscal-policy

The Clock Is Ticking on Affordable Housing

Shelterforce · 2026-09-01 · on 440,000 assisted homes reaching subsidy end dates by 2030

Shelterforce reported that 440,159 federally assisted homes reach their latest tracked federal subsidy or restriction end date between 2026 and 2030, based on new National Housing Preservation Database tabulations prepared for the outlet. The tabulations show 328,827 LIHTC homes with tracked affordability end dates in that window — 12.3 percent of the tax-credit stock tracked in the database. The article described the count as a preservation calendar, not a prediction of how many homes will be lost.

housing-market lihtc

Mortgage Rates Average 6.71%

Freddie Mac · 2026-09-03

Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed-rate mortgage at 6.71% for the week ending September 3, up from 6.66% the prior week and 6.50% a year ago. The 15-year fixed averaged 6.04%, up from 5.98%. Freddie Mac said purchase demand has remained relatively stable.

Realtor.com reported the 6.71% average is the highest weekly PMMS reading of 2026.

housing-market

HUD nixes 'substantial burdens' on multifamily property owners

Real Estate News · 2026-09-02 · on rescission of HUD's design-and-construction accessibility liability interpretation

HUD rescinded an Obama-era interpretation that allowed Fair Housing Act accessibility complaints against multifamily buildings at any time, replacing it with guidance limiting design-and-construction claims to one year after construction is completed. HUD estimated the prior interpretation's costs on owners exceeded $110 million over the past five years; Secretary Turner said the action "rescinds unnecessary and expensive liability created by legal theories that have no basis in law."

The guidance is part of HUD's September 1 announcement (HUD No. 26-063), whose Fair Market Rent and Moving to Work provisions were reported earlier this week.

fair-housing

A New Legal Threat to Voucher Holders' Housing Rights

Next City · 2026-09-03

Next City reported that an Ithaca, N.Y. landlord argued source-of-income discrimination laws force landlords to consent to government inspections in violation of the Fourth Amendment, that courts have twice agreed, and that the argument has since appeared in a dozen cases across the country. Per University at Buffalo law professor Heather Abraham, 24 states and 150 counties or municipalities have source-of-income discrimination laws, and 60% of voucher holders live in areas covered by them.

fair-housing federal-litigation vouchers

Secretary Scott Turner Joins the National Tribal Housing Summit to Announce Inaugural Awards for Tribal Leaders and Celebrate Historic MOU Signing

HUD · 2026-09-03 · on the $150 million in Indian Housing Block Grant awards and a HUD-BIA homeownership MOU

At its 2026 National Tribal Housing Summit, HUD announced $150 million in Indian Housing Block Grant Competitive Program awards to 31 Tribal communities, along with the first HUD Secretary's Awards for Excellence in Tribal Communities. HUD's Office of Public and Indian Housing and Interior's Bureau of Indian Affairs signed a memorandum of understanding to implement the Tribal Trust Land Homeownership Act of 2025 by accelerating Title Status Report processing and aligning federal leasing reviews.

fiscal-policy tribal-housing

On the Calendar