HUD Backs Down: Big Relief for Arizona Housing Programs
by Olga Boyke–Your Trusted Arizona Realtor
The past few weeks have raised serious concern across Arizona’s housing community. In November, the U.S. Department of Housing and Urban Development (HUD) proposed capping permanent housing spending at 30 percent, down from 90 percent, in its Continuum of Care (CoC) program. For Arizona, especially Maricopa County, this would have meant losing millions in funding that helps keep families, veterans, domestic violence survivors, and people with disabilities safely housed.
After strong backlash from states, local governments, nonprofits, and a multistate lawsuit that Arizona joined, HUD has paused the planned changes. The department has withdrawn the funding notice and plans to revise it before issuing a new version in 2025. As someone who works closely with Arizona families navigating housing challenges, this pause is important because it gives local leaders breathing room and prevents an immediate and devastating loss of stability for thousands of residents.
Why Arizona Sounded the Alarm
Before HUD announced the pause, Arizona leaders held a press conference outlining the potential consequences. Their concerns were clear:
1. Maricopa County stood to lose $32 million in funding.
This money supports nearly 1,400 households through permanent supportive housing. Without it, many would face returning to life on the streets.
2. The new cap threatened proven strategies.
Maricopa County uses 81 percent of its CoC dollars for permanent supportive housing, pairing shelter with mental health care, substance abuse treatment, and case management. Leaders stressed that these programs work and that sudden cuts would be dangerous.
3. The timing would have created a catastrophic funding gap.
Existing grants expire December 31, but under the proposed new schedule, communities would not receive new funds until May or even August. Leaders warned that organizations do not have the capacity to fill that gap on short notice.
Local officials said the biggest risk was the human impact. As Tim Burch of Tempe’s Community Health and Human Services explained, abrupt changes do not only disrupt systems. They disrupt lives. Losing housing stability retraumatizes individuals and drives people back into homelessness, which then increases pressure on emergency rooms, crisis centers, and jails.
What This Means Moving Forward
HUD’s decision to pause does not mean changes are off the table. It means the department will revise the funding guidelines and reissue them next year. In the meantime, Arizona communities can continue using funding structures that have kept thousands safely housed.
This pause is a reminder of how closely federal policy and local housing outcomes are linked. Changes in Washington can quickly ripple across cities like Phoenix, Mesa, Tempe, and Glendale, affecting everything from shelter capacity to long-term housing stability.
As Arizona continues to face rising housing costs, limited inventory, and increasing homelessness, ensuring stable funding for supportive services is crucial. Our cities cannot afford sudden shifts without planning, coordination, and transitional support.
Arizona Market Outlook
Housing stability is not just an economic issue. It is a community issue. The pause in HUD’s funding overhaul protects vulnerable Arizonans from being pushed back into crisis and gives our cities time to prepare for whatever revised plan comes next.
Arizona’s housing landscape is evolving through both market trends and policy decisions that directly affect the availability, affordability, and long-term stability of homes across the state. I will continue monitoring these updates closely so you always have clear, timely insight into how federal and state policy shifts may impact your housing decisions.
Whether you are planning a move or simply trying to navigate Arizona’s changing housing landscape, I am here to help you stay informed and confident. From understanding lending options to identifying neighborhoods most likely to benefit from future development, you do not have to figure it out alone.
Schedule a consultation with me for personalized guidance on your next steps. And for ongoing updates on Arizona housing policy, market trends, and community developments, follow me on my social channels to stay ahead of the changes shaping our state.
