Attorney General Mayes Wins Appeals Court Ruling Against HUD Over Housing-Assistance Programs

PHOENIX — In a decisive win for Arizona and other states, a federal appeals court rejected the federal government's request to impose harmful restrictions on grant funding that allows tens of thousands of formerly homeless people across the country to remain in stable housing.

Attorney General Kris Mayes and a multistate coalition sued the U.S. Department of Housing and Urban Development (HUD) last November after HUD abruptly changed its Continuum of Care program, the largest resource for federal homelessness assistance funding. HUD dramatically reduced the amount of grant funds that can be spent on permanent housing and put unlawful conditions on access to the funding.

U.S. District Court Judge Mary McElroy sided with the states in December, saying HUD's actions would cause irreparable harm to the plaintiffs, and issued a preliminary injunction barring HUD from implementing the unlawful restrictions. On April 1, the appeals court rejected HUD's request to temporarily allow the restrictions to go into effect.

"The federal government has no right to gut housing assistance programs that real people depend on to keep a roof over their heads," said Attorney General Mayes. "HUD cannot simply tear up the rules, slash promised funding, and leave vulnerable families and individuals to face homelessness. I am proud to have protected Arizonans by filing this case and winning."

The appeals court said plaintiffs had provided ample evidence that if HUD moved ahead with its planned restrictions to the funding, the results would be "immediately destabilizing and disastrous for their constituents."

A copy of the appeals court ruling is available.