Residents and business owners have raised concerns at community meetings about the concentration of encampments, putting pressure on the Mayor's Office of Homeless Services to expand outreach and enforcement alternatives. Critics argue that without adequate shelter options and basic sanitation infrastructure, enforcement-only responses simply relocate the problem without resolving it. MOHS has pointed to its $73.7 million FY2026 budget — a 19% increase — as evidence of its commitment to expanding housing and service capacity.

At a public hearing, advocates cited overcrowding at emergency shelter sites and frustration over delays in moving individuals from shelter into permanent supportive housing. Questions were also raised about oversight of the three hotels currently operating as emergency shelter sites. The MOHS Director cited increased funding and upcoming capacity expansions through faith-based and nonprofit partnerships as part of its response plan for the remainder of FY2026.

The project is developed in partnership with the city and targets individuals with the deepest affordability needs. Settlement on the properties was expected to close in early 2026, with a target opening date by year-end. It is one of several pipeline projects MOHS is tracking to expand Baltimore's permanent supportive housing stock — a critical gap given an estimated citywide shortage of 33,000 affordable units.

The Transit and Housing Opportunity Act eliminates minimum parking requirements near rail stations and allows mixed-use development within a half-mile of transit stops, unlocking an estimated 7,000 housing units in the Baltimore region with $1.4 billion in projected tax revenue. The Housing Certainty Act converts Maryland to an "early vesting" state, meaning approved housing projects are only subject to regulations in effect at the time of application — reducing regulatory uncertainty for developers. The accompanying FY2027 budget appropriates $73.4 million for the Division of Homeless Solutions, including $5 million specifically for permanent supportive housing.

Under the act, background checks must be postponed until a conditional offer of housing is made, and are limited to specific conviction types within defined timeframes. Applicants have the right to present evidence of growth and rehabilitation before a tenancy is denied. Effective October 1, 2026, the law directly addresses one of the most significant barriers to housing stability for people returning from incarceration — a population at elevated risk of homelessness. The Vera Institute and NAACP Legal Defense Fund both celebrated the signing as a national model.

The Community Schools Rental Assistance Program was doubled from $5 million to $11 million, expected to keep approximately 2,500 families with children from facing eviction in the coming year. The session also produced the Fair Chance Housing Act, the Transit and Housing Opportunity Act, and the Housing Certainty Act. Advocates noted that Maryland's state-level action is especially significant given continued federal uncertainty around HUD CoC funding — positioning Maryland as a leader in filling gaps that federal policy has left open.

The administration's core goal remains reducing the share of CoC funding for permanent supportive housing from roughly 90% to no more than 30% — a shift that advocates warn would jeopardize housing for approximately 170,000 people currently in PSH units. Congress rejected HUD's new approach in the FY2026 Transportation-HUD appropriations law, which provides CoC funding on traditional terms. However, HUD is pursuing the overhaul through administrative channels, and the legal and policy battle is expected to continue through the remainder of 2026.

Shelterforce spoke with CoC administrators and frontline service providers nationwide, finding organizations unsure whether to expand permanent supportive housing capacity or pivot to transitional models that may fare better under the new funding competition. Provider networks have published guidance urging members to rigorously document outcomes as HUD develops new "cost-effectiveness" benchmarks. Critics argue those benchmarks do not account for the complexity of serving individuals with serious mental illness or long histories of chronic homelessness.

HUD reinstated the original NOFO on January 9, 2026, following the ruling, and has since appealed while pursuing a revised overhaul strategy. The original November 2025 NOFO had also encouraged criminalization of homelessness and shifted funding toward temporary transitional shelter. The case has become a national flashpoint, with CoC providers calling the changes "an existential threat" to the permanent supportive housing system built over the past two decades. Congress's FY2026 appropriations action provided a legislative backstop — but the administrative fight continues.

Reductions in sheltered homelessness in many major cities are attributed in part to emergency housing investments made during and after the COVID-19 pandemic, as well as sustained state-level action in states like California and Maryland. However, the count captures conditions as of January 2026, before HUD's attempt to restructure CoC funding took effect, and advocates warn the 2027 count may reverse the trend. Long-term data remains alarming: overall homelessness is up 27% since 2013, unsheltered homelessness has increased 36%, and chronic homelessness has risen 81%.

The Atlanta metro's rapid population growth and rising construction costs have deepened a housing shortage that community organizations say is pushing more working families into homelessness for the first time. Local CoC administrators note that uncertainty around federal CoC renewals has caused several rapid rehousing programs to reduce intake while awaiting clarity on awards. Advocates are calling on the Georgia legislature to establish a state-level housing stabilization fund — similar to Maryland's Housing Stability Act — to buffer against federal funding volatility.

The California drop is credited to a multi-year state investment in housing production, behavioral health infrastructure, and community-based outreach, combined with local policies pairing encampment enforcement with genuine housing alternatives. CalMatters notes that California still accounts for a disproportionate share of the national unsheltered population, and housing advocates warn that HUD's ongoing effort to restructure CoC funding poses a serious threat to sustaining progress — particularly for the permanent supportive housing programs that anchor California's Housing First strategy.