A new supportive short term housing facility is located at 1107 E. Main St. in Lansdale. (Rachel Ravina – MediaNews Group)
The loss of more than $3.14 million in federal housing dollars could mean up to 255 less beds for people experiencing homelessness in Montgomery County, according to the National Alliance to End Homelessness.
The U.S. Department of Housing and Urban Development’s notice of funding opportunity informed local agencies across the nation of funding distribution changes last month.
The Washington, D.C.-based organization blasted the federal government’s move, which they say will “largely defund permanent housing programs for people experiencing homelessness in communities across the nation by imposing a cap of 30 percent on permanent housing.”
The “State and Local Impacts of HUD’s Housing Cuts: Data Visualization” report published on Nov. 25 examined data across the nation as the Your Way Home Montgomery County’s Continuum of Care, also identified “Lower Merion, Norristown, Abington/Montgomery County CoC,” could stand to lose a seven-figure sum in grant funds, projecting upwards of $3,142,563.
There were 91 percent of funds “dedicated to permanent housing,” according to a report from the National Alliance to End Homelessness, and 72 percent of permanent supportive initiatives were funded by the continuum of care.
Mike Hays, co-founder of the Montco 30% Project and a continuum of care member, called the shift “unprecedented” during a Montgomery County public budget hearing earlier this month.
“When practical, I encourage Montgomery County to challenge these orders in court,” Hays said. “I recognize the funding shortfalls or cuts from the federal government cannot be backfilled by the state or the county. That’s because elections have consequences, and we’re reminded of that every day.”
Pennsylvania received $177 million last year in continuum of care funding, which covers resources and assistance related to permanent housing, rental assistance and other supportive services, according to a Nov. 25 statement from Gov. Josh Shapiro’s office.
Shapiro expressed intentions to challenge the action in court, joining more than a dozen other states and the District of Columbia.
“I’m taking action to ensure the federal government keeps its promise — because no Pennsylvanian should be thrown back into homelessness because of political games in Washington,” Shapiro said in a Nov. 25 statement.
$1 million gift comes to Lansdale homeless facility
The move comes as Montgomery County continues its efforts to build brick-and-mortar spaces to help those experiencing homelessness as there hasn’t been a designated facility open since June 2022.
Work on a 20-bed supportive short term housing facility in Lansdale continues at 1107 E. Main St. as officials anticipate an early 2026 opening date.
Montgomery County Commissioners’ Chairman Neil Makhija said Thursday that philanthropist and local businessman Nand Todi, of Penn Manufacturing Industries and the Gwynedd Valley-based nonprofit the TODI Foundation, has donated $1 million donation towards that effort.
“It’s really going to be an exceptional facility,” Makhija said, touting the existing relationships with Lansdale government and other nonprofits working to create solutions in Lansdale, Norristown and Pottstown.
Montgomery County previously signaled intentions to invest in infrastructure solutions after earmarking $10 million in the 2025-29 capital improvement program fund for a homeless shelter, with an infusion of federal COVID-19 relief dollars furthering these initiatives.
County commissioners allocated $1.3 million for operational costs and $1.3 million for construction, signing a 10-year lease agreement with Lansdale-based Liberty Bell Realty Co. for the 4,800-square-foot space at 1107 E. Main St. in December 2024.
Lansdale Borough Councilman BJ Breish expressed his gratitude to the county during a public budget hearing earlier this month for their partnership, commitment and “continued focus on its comprehensive housing strategy,” spanning “housing affordability” and “supportive housing” initiatives.
Officials previously estimated around 30 people experiencing homelessness locally, and Lansdale Borough Council President Mary Fuller told MediaNews Group last week that figure has grown “pretty drastically” to around 50 people.
“We see the tangible results of this strategy firsthand in Lansdale,” Breish said Dec. 4, stressing “this critical investment alone is poised to reduce homelessness in Lansdale by over 70 percent.”
The Philadelphia-based Resources for Human Development will operate the facility and have around 18 employees on staff once it opens. The facility will have single and double occupancy rooms, bathrooms, showers and laundry, a warming kitchen and a community space.
Additional services are expected to span the gamut, such as mental and behavioral health, employment training, gaining access to benefits, and veterans services.
County officials also executed a lease for up to 120 beds at a Pottstown hotel, and received zoning relief for a 50-bed facility in Norristown. Resources for Human Development will also oversee operations at the 1430 DeKalb St. site in Norristown.
“Together, these projects will add 70 new beds to Montgomery County’s homeless response system, increasing access in two distinct geographic areas and giving individuals a safe, dignified place to stabilize and begin their transition into permanent housing,” said Resources for Human Development CEO Brian Matthew Rhodes.
