Housing, Community Development & Public Health Committee: HUD NOFO Impacts and Updates – Permanent Supportive Housing

This meeting convened on February 26, 2026, at 4:00 PM in Toledo City Council Chambers to discuss the impacts of federal funding cuts to HUD's Notice of Funding Opportunity (NOFO) on supportive housing programs. The committee heard a detailed presentation from Julie Imbri, who outlined a 12-month destabilization timeline, direct and indirect community impacts, and financial consequences. Discussions emphasized the interconnectedness of homelessness, housing stability, local businesses, and public systems. No formal votes were taken; the committee committed to further planning, data sharing, and advocacy.

Presentation & Report

• Julie Imbri presented on the current scale of funding jeopardy: 750 households (approximately 1,200 individuals, 30% children) are stabilized by this funding; over 50 landlords and businesses would be directly impacted; 30+ program-specific employees face layoffs; 128 participants whose employment relies on supportive services are at risk.
• At least $3.1 million in total funding is jeopardized, including over $2 million in rental revenue to landlords.
• A 12-month timeline was detailed: within 30 days, all PSH placements would halt; within 30-60 days, shelters (currently at 588 beds full, with 465 individuals waiting) would see increased demand; after 90 days, program reductions and closures would begin, leading to workforce layoffs and permanent loss of housing stock.
• Current systemic pressures: 250 people served in warming centers (duplicated) with 60-90 nightly; 36 individuals in warming centers have psychiatric needs beyond shelter capacity; an estimated 50-60 additional individuals with similar needs are not in shelters.
• Financial impacts already felt: agencies have fronted $150,000 in unreimbursed funds, escalating to $500,000/month by June/July.
• Legal environment: Congress appropriated funds for about 10% of projects; majority of COC funding renews in Q3 and remains in jeopardy; HUD has yet to provide clarity.

Public Comments & Testimony

• Sandra Desteno, Director of 211, described the rising complexity of calls: individuals with disabilities, older adults, single mothers facing high childcare costs ($55/day to work, earning $40/day), and nursing home discharges to homelessness. She noted the loss of prevention dollars and lack of rental assistance post-ARPA.
• Pastor Leo Cunningham, St. Paul’s United Methodist Church, stated that while congregations are exploring partnerships (e.g., with Uptown Business Association, Vistoula neighborhood), existing church buildings cannot accommodate beds/cots due to fire suppression system requirements; he urged a "both-and" approach of federal/state pressure and local inspiration.
• Emily Matthews, Program Manager for 211, thanked the committee for support with warming centers and stated that Toledo's model is being emulated across Northwest Ohio. She encouraged council members to visit the warming centers.

Discussion Items

• Councilmember Gaddis requested a heat map of landlord locations and data on housing types (single-family vs. apartments) and landlord characteristics (local vs. out-of-town). Ms. Imbri agreed to generate that data.
• Councilmember Gaddis also asked about best practices for public restrooms and trash management; Ms. Imbri cited a Detroit-based “Throne” trailer model and noted existing stress on Metro Parks restrooms.
• Councilmember Gaddis expressed interest in using district funds for solar charging tables and requested a meeting to discuss Uptown issues.
• Councilmember McPherson emphasized the need for community-wide solutions, thanked churches for hosting warming centers, and suggested thinking creatively (e.g., Cincinnati converting a closed school into a shelter for students).
• Councilmember Saranto asked about approaching closed churches for overnight shelter; Ms. Imbri responded that the priority should be stabilizing existing shelters before expanding, highlighting that St. Paul’s winter crisis shelter will close March 8 (one week early) due to funding cuts.
• Councilmember Williams urged the council to pressure federal representatives to restore funding, noting that cuts are hurting the poor while millionaires are prioritized. She also raised the concept of a Tent City, though funding and location remain challenges.
• Councilmember Craig noted that state cuts have reduced library hours, pushing more unsheltered individuals to TARDA hubs. She linked the $600 million stadium levy to misplaced priorities.
• Sergeant Kelly Russell of TPD shared her experience as a CIT coordinator, noting a 30% increase in mental health calls over four years. She emphasized the need for more alternatives to jail for unhoused individuals and described successful one-at-a-time interventions.
• Building official Jim Hough briefly commented on code barriers: churches lack sprinkler systems required for housing; warming centers are permitted as long as no sleeping occurs.
• Ms. Imbri noted that restrictive zoning codes hinder creative solutions (e.g., tiny homes, tent cities) and suggested reforming zoning to ease development.

Key Outcomes

• The committee requested a heat map of PSH landlord locations, data on housing types and landlord residency, and cost projections for public restroom solutions.
• Ms. Imbri will continue working with the Mental Health Recovery Services Board to assess provider reserves and landlord willingness.
• Council agreed to send letters urging federal and state representatives to restore housing funding.
• Future meetings will address zoning code alterations to reduce homelessness and explore alternative housing models (e.g., tiny homes, tent cities) subject to regulatory feasibility.
• The committee affirmed the need for continued collaboration among city, county, mental health board, TPD, TARDA, schools, faith communities, and business associations.