The Core Issue: Challenging HUD’s Grant Conditions

San Francisco, along with seven other local governments, is suing the U.S. Department of Housing and Urban Development (HUD) over new conditions attached to federal grants aimed at addressing homelessness.

• The lawsuit alleges that these conditions reflect President Trump’s policy preferences and are unconstitutional.
• The grants in question are part of the HUD Continuum of Care (CoC) program, which provides san Francisco with over $50 million annually.
• the contested conditions are seen as anti-immigrant, anti-LGBTQ+, anti-choice, and anti-equity.

City Attorney’s Stance

San Francisco City Attorney David Chiu emphasized the importance of the funding and the city’s commitment to fighting the new conditions.

HUD’s Continuum of care grant program provides tens of millions in funding for housing and related services for thousands of our most vulnerable. These new grant conditions blatantly violate the Constitution and endanger people’s lives. This is part of Trump’s strategy to push his ideology by threatening local programs and budgets. We will continue to oppose these efforts and stand up in court for San Francisco’s values, funding, and communities.
David Chiu, San Francisco City Attorney

Background: Continuum of Care Program

The Continuum of Care (CoC) program, established thru the Homeless assistance Act, is designed to support local governments and nonprofits in providing housing and services to those experiencing or at risk of homelessness.

• The San Francisco Department of Homelessness and Supportive Housing (HSH) applies annually for CoC projects.
• The city acts as the direct recipient for most of these projects, contracting with nonprofit agencies.
• Funding supports permanent supportive housing, rapid re-housing, and transitional housing.
• It also aids rental assistance programs and the coordinated entry process, connecting vulnerable residents to resources.

Impact on San Francisco’s Homeless Population

San Francisco relies heavily on HUD CoC grant funds to serve its homeless residents.

• the city’s homeless population was recently counted at 8,323.
• Losing this funding could jeopardize housing subsidies and services for over 1,400 households.
• These residents often face disabilities, mental health issues, substance abuse, and trauma, requiring ongoing support.

Legal Challenges

The lawsuit argues that the new grant conditions exceed congressional authorization and impose unlawful policy priorities.

• The lawsuit alleges violations of the spending Clause, Separation of Powers, Tenth Amendment, Fifth Amendment, and the Administrative Procedure Act.
• Plaintiffs seek an injunction to prevent enforcement of the new conditions.
• They also want a court declaration that the conditions are unconstitutional and unlawful.

Coalition of Plaintiffs

The coalition joining San Francisco in the lawsuit includes:

• Martin Luther King, Jr. County, Washington
• County of Santa Clara, California
• City of Boston, Massachusetts
• City of New York, New York
• City of Columbus, Ohio
• Pierce County, Washington
• Snohomish County, Washington

The case is filed as Martin Luther King, Jr. County, et al., v. Scott Turner, et al., in the U.S. District Court for the Western District of Washington.

The complaint is available here.

FAQ: Understanding the Lawsuit

What is the lawsuit about?

It challenges new conditions on HUD grants for homeless services.

Why are the conditions being challenged?

They are seen as unconstitutional and politically motivated.

How much funding is at stake for San Francisco?

Over $50 million annually.

Who else is involved in the lawsuit?

Seven other local governments have joined San francisco.