Proposed funding cuts threaten Louisville's permanent housing options

LOUISVILLE, Ky. (WDRB) -- Proposed changes to federal funding could dramatically reduce Louisville's permanent supportive housing, putting vulnerable residents at risk.

Under the new plan proposed by the U.S Department of Housing and Urban Development, funding for permanent supportive housing, which provides long-term, stable homes and supportive services for people with disabilities or chronic homelessness, could be drastically reduced.

Instead, HUD is prioritizing transitional housing, a time-limited model designed to help residents move quickly toward independent living. This shift could leave some of the most vulnerable residents without housing or the services they rely on.

St. Vincent de Paul Louisville is facing a potential 70% cut in federal funding for permanent supportive housing, which could reduce the city's 97 units serving vulnerable residents to just 30.

"The thing that I'm concerned about is our residents who will not be a good fit for transitional housing and won't have anywhere else to go," SVDP CEO Jennifer Clark said. "So we are really looking to try and plan and look for community support around making sure that nobody is made homeless due to these changes at the federal level."

Clark said the organization is preparing contingency plans for residents who may not qualify for transitional housing.

Steve Allen, one of those residents at risk, has been living in SVDP's permanent housing for nearly a year following medical issues that left him homeless. He worries he'd end up back on the streets if permanent housing is no longer an option for him.

"That's where I go, because I have no other place to go," he said.

Allen said the permanent supportive housing has helped him rebuild his life after experiencing homelessness.

"They cater your needs and they help you get ahead, which is important because I was homeless for so long," he said. "And they really do go out of the way to help you get back on your feet and get back on track."

St. Vincent de Paul is applying for transitional housing funding from HUD while trying to maintain some permanent supportive housing units.

Clark said the potential funding changes would be a setback for Louisville's broader homelessness initiatives.

"There is no scenario where we do not have a setback in our attempts to try and end homelessness in Louisville and try and get people off of the street," she said.

St. Vincent de Paul leaders said they expect to see impacts from the changes, if they advance, by this coming summer.

The organization is also urging the community to get involved.

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