Should Nonprofits Be Allowed To Offer Housing Assistance With Federal Funding? (H.R. 1047)

What is H.R. 1047?

(Updated October 10, 2018)

This bill would give private nonprofits the authority to offer permanent housing rental assistance. If implemented, nonprofits would join the ranks of state and local governments and public housing agencies that can offer housing rental assistance. This new authorization would be granted through the U.S. Department of Housing and Urban Development (HUD) program, Continuum of Care (CoC). 

CoC offers funding for efforts to quickly house homeless individuals and families to minimize trauma and dislocation. It also promotes access to mainstream programs and increases self-sufficiency among homeless individuals and families.

Argument in favor

Currently, nonprofits are excluded from offering rental assistance through the Department of Housing and Urban Development's program, Continuum of Care (CoC). This bill would include nonprofits and increase the number of agencies trying to quickly re-house people experiencing homelessness.

Argument opposed

Government agencies are better equipped than nonprofits, with resources and funding to handle rental assistance applications and housing — especially if they don't have to share funding with nonprofits. HUD probably didn't exclude nonprofits from the Continuum of Care program on accident.

Impact

People who are seeking long-term rental assistance; non profits that would like to offer that service under the Continuum of Care Program; local and State governments and public housing agencies; and HUD.

Cost of H.R. 1047

A CBO cost estimate is unavailable.

Additional Info

In Depth: Sponsoring Rep. Scott Peters (D-CA) argued in a press release supporting a previous version of the bill that it would help alleviate homelessness:

"San Diego is blessed with quality homeless service providers who know best how to serve those in need. This bill removes a non-essential layer of red tape that will save money and allow people to get housing help more quickly. We shouldn’t be saddling the Department of Housing and Urban Development or our services providers with more administrative work that only slows down the process and doesn't add value. We must ensure that community experts at non-profits across the San Diego region are not hamstrung by federal inaction. I’m proud of the work being done in San Diego to end chronic homelessness and will continue to advocate for solutions like this one.”

Of Note: In 2013, new CoC regulations were outlined by HUD stating that only government entities would be allowed to offer rental assistance. The exclusion of nonprofits in rental assistance activities was the motivation behind the bill.

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