Funding Sources

Funding and support for supportive housing can come from a myriad of sources, both public and private. As the demand for supportive housing grows, a mix of funding has been leveraged to create and maintain these vital resources. Here's a brief overview of where funding and support for supportive housing typically comes from:

• Federal Government: In the United States, various federal agencies provide significant funding for supportive housing.

  • Department of Housing and Urban Development (HUD): HUD's Continuum of Care (CoC) Program and the HOME Investment Partnerships Program are two primary funding sources for supportive housing.

  • Department of Health and Human Services (HHS): The Substance Abuse and Mental Health Services Administration (SAMHSA) under HHS offers grants that can be used for supportive services in housing projects.

  • Medicaid: In some states, Medicaid funds can be used for certain supportive housing services.

• State and Local Governments: Many states and local jurisdictions have dedicated funding sources for supportive housing or can allocate funds from housing or homelessness budgets toward such projects. Additionally, states might have housing finance agencies that provide tax credits or other incentives for the creation of affordable and supportive housing.

• Philanthropic Organizations: Foundations and charitable organizations sometimes provide grants or low-interest loans for supportive housing development or for the services associated with it.

• Private Sector: There are developers, investors, and financial institutions that invest in supportive housing either because of Community Reinvestment Act (CRA) obligations, Low-Income Housing Tax Credit (LIHTC) investments, or social responsibility motivations.

• Nonprofit Organizations: Many supportive housing projects are developed, owned, or managed by nonprofit organizations. These organizations might bring a combination of funding from various sources mentioned above, and they play a critical role in both the housing and service components of supportive housing.

• Rental Subsidies: Supportive housing often relies on rental subsidies to make units affordable to very low-income residents. This can come in the form of Housing Choice Vouchers (Section 8), Veterans Affairs Supportive Housing (VASH) vouchers, or other locally administered rental assistance programs.

• Mainstream Systems: Sometimes, systems that aren't explicitly about housing but are tangentially related, like healthcare or the criminal justice system, might fund or support aspects of supportive housing. For instance, hospitals might invest in supportive housing as a way to reduce emergency room visits by providing stable housing for frequent users.

• Community Support: Grassroots fundraising, donations, and community partnerships can also play roles in funding or supporting certain aspects of supportive housing, particularly services or amenities.

It's important to note that given the complexity and variation in supportive housing needs and projects, a combination of the above sources is often necessary to finance, develop, and sustain such initiatives