Monday

06-16-2025 Vol 1993

Tensions Rise Over Homelessness Funding in Houston and Harris County

Houston and Harris County are facing renewed challenges in their collaboration to secure funding for Mayor John Whitmire’s ambitious plan to “end street homelessness.”

The city’s funding remains insufficient, prompting mixed messages from the housing departments of the two entities over the past month.

In a recent development, the Harris County Commissioners Court allocated $20 million from a guaranteed income program it has decided to discontinue.

This funding was split into separate allocations: $8 million designated for eviction protections, another $8 million for homelessness initiatives, and $2.5 million aimed at combating food insecurity.

According to the city’s housing department, the $8 million allocated for homelessness will be directed towards the Mayor’s Homelessness Action Plan.

However, the initiative is still $40 million short of its $70 million annual funding goal, awaiting $16 million from the county and $20 million in contributions from private philanthropy.

Mike Nichols, the city’s housing department director, stated, “We are actively exploring how we can use eviction prevention funds” in conjunction with the homelessness initiative.

In contrast, Thao Costis, the county’s housing department director, expressed to Houston Public Media that the county does not view the funding as primarily benefiting the mayor’s program.

“We’re in discussions with the Coalition for the Homeless to support a broader initiative that encompasses the entire county,” Costis elaborated.

She emphasized that while both the city and county are committed to ending street homelessness, the focus should not be solely on the mayor’s plan.

Nichols responded, asserting that the plan encourages collaboration and combined use of funds, stating, “I would say there’s not any tension.”

He acknowledged that both departments must determine the appropriate usage of the funds in their respective jurisdictions.

Despite the ongoing conflict, Nichols expressed optimism about raising up to $20 million from private philanthropic sources, which he believes depend on the city and county working cohesively.

“The system must braid these complex funds to serve people experiencing homelessness, given the often governmental restrictions on their use,” Nichols explained.

The mixed messaging between the two departments has persisted, with Nichols previously citing Costis’s statement regarding the $8 million in funding.

Costis had clarified that no specific dollar amount was finalized, indicating ongoing negotiations as both departments sought alignment on resources.

Whitmire’s goal of raising $70 million heavily relies on external contributions, with Houston contributing $3.5 million from its general fund along with $14 million in federal funding.

Additionally, the Metropolitan Transit Authority of Harris County (METRO) contributed $10 million, and the Houston First Corporation, an arm of the city government, provided $2.6 million.

On a related note, the city is also considering utilizing federal funds to support its homelessness initiatives.

With a deadline looming to spend disaster recovery funds from Hurricane Harvey, the housing department is proposing to reallocate $12.5 million from programs such as home buyouts and economic revitalization towards the initiative to end street homelessness.

Nearly $40 million of more than $600 million in federal recovery funds remains unspent, nearly eight years after Hurricane Harvey caused widespread damage in Houston.

On Wednesday, the Houston City Council authorized the housing department to request these reallocations.

This includes not only the proposed diversion towards homelessness but also the establishment of a nearly $20 million down payment assistance fund for Harvey-affected residents and an enhancement of nearly $5 million for a home repair reimbursement program.

These changes would be funded by cuts to programs focused on single-family development, home buyouts for flood-prone properties, and economic revitalization efforts.

Approval from the Texas General Land Office (GLO) and HUD is required for these plans.

Nichols emphasized, “If you remember Harvey, people experiencing homelessness were devastated during that time,” noting that those living outside need immediate shelter, especially in light of future storms.

He detailed that the $12.5 million would help create “hubs” for homeless individuals, including a central location in Houston and additional facilities in other areas.

The plan involves utilizing existing emergency homeless beds and collaborating with various nonprofits, particularly faith-based organizations, to assist individuals transitioning into services, mental health care, substance abuse treatment, or permanent housing.

Nichols anticipates that negotiations with the GLO will conclude in a matter of weeks or months.

A GLO spokesperson indicated that the agency is committed to collaborating with the City of Houston to ensure all available disaster recovery funds benefit residents before the deadline in February 2027.

If successful, this reallocation of funds could significantly bolster Whitmire’s initiative.

The mayor’s project to eliminate street homelessness currently lacks $40 million of its $70 million target, contingent upon managing to secure funding from both the county and private donors.

Absence of financial support for essential services and housing leads city officials to hesitate against displacing homeless individuals from public areas without providing them with alternative accommodations.

Housing advocate Julia Orduña from Texas Housers criticized the reallocation of Harvey recovery funds for homelessness, labeling it as “politics at its worst.”

She argued that the federal government intended these funds to aid recovery efforts for the city’s most severe disaster and claimed Whitmire is misusing Harvey’s unmet needs to fill budgetary gaps.

Although she commended the establishment of the $20 million down payment assistance program, she remains concerned about diversion of funds from housing needs.

In the last 18 months, the previously hostile relationship between the city and the GLO has improved significantly.

This improvement follows years of disputes, especially in 2021 when former land commissioner George P. Bush withhold funds from both the city and Harris County.

Now, with reassurances from Whitmire and new land commissioner Dawn Buckingham, there is a collaborative effort to allocate $200 million in leftover funding set to expire soon.

A GLO spokesperson noted that the collaboration between the GLO and the City of Houston has improved greatly, driven by a shared mission to better serve the community.

However, advocates like Orduña remain dissatisfied as the city’s approach to spending recovery funds often prioritizes infrastructure over immediate housing needs.

With ongoing tensions between the city and county over homelessness initiatives, the future of Whitmire’s ambitious plans hinges on successfully securing adequate funding and fostering collaborative efforts to address the issue effectively.

image source from:https://www.houstonpublicmedia.org/articles/housing/2025/06/13/524065/city-of-houston-and-harris-county-at-odds-over-funding-to-combat-homelessness/

Charlotte Hayes