H.R. 2206: Prevent Homelessness Act of 2025

This bill, known as the Prevent Homelessness Act of 2025, aims to create and manage a Housing Stabilization Fund by the Secretary of Housing and Urban Development (HUD). The primary objective of this fund is to provide emergency housing assistance to extremely low-income renters and homeowners facing financial hardships that jeopardize their housing stability.

Key Provisions of the Bill

Establishment of the Housing Stabilization Fund

The bill mandates the establishment of a fund that will be supervised by HUD. This fund is intended to support various emergency housing assistance programs that cater specifically to individuals and families experiencing significant financial constraints.

Grants for Emergency Housing Assistance

Funds will be allocated for annual grants to organizations that support emergency housing assistance programs. These organizations, known as "continuums of care," are responsible for providing short-term assistance to extremely low-income and very low-income families and individuals who are unable to meet their housing-related obligations due to various hardships.

Eligibility for Assistance

To qualify for assistance under the fund, the housing assistance programs must:

• Be operated by a continuum of care or an authorized entity.
• Serve the geographical area designated by the continuum of care.
• Provide assistance only to extremely low-income families and individuals facing financial hardships such as job loss, health crises, or unsafe living conditions.
• Ensure that the assistance aligns with local homelessness prioritization criteria.
• Adhere to other requirements set forth by the Secretary of HUD.

Types of Financial Assistance

The financial assistance provided through the grants can cover various housing-related obligations, including:

• Prospective rent and rental arrears.
• Mortgage payments, including amounts that are overdue.
• Utility payments and related costs.
• Necessary housing repairs that make living conditions habitable.
• Costs associated with obtaining services for behavioral health issues, domestic violence, and employment counseling.
• Legal assistance related to eviction or foreclosure matters.
• Security deposits required for renting housing.
• Other short-term costs that can help stabilize housing situations.

Grant Application Process

To access grant money from the fund, continuums of care must submit detailed applications to HUD, including necessary information to ensure compliance with program requirements.

Grant Allocation

The allocation of grants from the fund will follow a specific formula:

• For fiscal year 2027, the grants will be allocated based on a specified formula.
• In subsequent years, 80% of the available funds will be distributed according to the established formula while 20% will be allocated through a competitive process.

Factors for Grant Distribution

The Secretary of HUD will establish a formula for distributing funds, taking into account the extent of the extremely low-income population, including unsheltered individuals and families, and other relevant factors determined by the Secretary.

Funding Authorization

The bill authorizes the appropriation of $100 million for each fiscal year from 2027 to 2031 to support the Housing Stabilization Fund.

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