A regional network of homeless service providers has secured $2.1 million in federal funding through the Department of Housing and Urban Development's Continuum of Care program, a competitive grant that prioritizes permanent housing over emergency shelter.

The funding comes as homelessness has risen 12 percent nationally from 2023 to 2024, according to HUD's annual count, driven by soaring housing costs, inflation, and the end of pandemic rental assistance. Communities across the country face growing waitlists for housing assistance as demand outpaces available resources.

Continuum of Care grants require local agencies to coordinate as unified networks rather than operate independently, using shared data systems to track outcomes. The funding supports rapid rehousing programs that move people quickly into permanent housing with temporary rental assistance, as well as supportive housing for those with disabilities or chronic health conditions.

Recipients must demonstrate housing placement results to qualify for renewal funding. The approach reflects decades of research showing that providing stable housing with services is more effective and cost-efficient than cycling people through shelters and emergency rooms.

The $2.1 million is part of roughly $3.6 billion HUD distributes annually through the program, established in 1995 and restructured in 2009 to emphasize housing-first strategies. Local providers will use the funds over the next year to help families and individuals secure housing and access mental health care, job training, and other support services.

The grant was posted August 4. Implementation timelines and specific service targets were not detailed in the award announcement.