The Seattle Select Budget Committee on Nov. 14 amended its budget to set aside a contingency reserve for homelessness services after central staff and the executive described sudden, potentially large changes in federal Continuum of Care (CoC) funding.

Central staffer Jennifer LeBrec told the committee the Department of Housing and Urban Development's 2025 Continuum of Care notice of funding opportunity (NOFO) was published late the previous night and contained major policy shifts. "HUD is now saying that no more than 30% of any continuum of care award can be spent on permanent housing," LeBrec said, adding that the region historically used most CoC funding for permanent supportive housing.

Councilmember Andrew Rink, sponsor of the underlying amendment, said the committee needed a pause on program expansions until the city knows how much CoC funding will be available. "The budget action before you is to have us pause on expansions for the next couple of months until we resolve and understand the outcome of this COC," Rink said, arguing the proviso would preserve options to protect shelter and ongoing contracts.

Why it matters: King County historically received roughly $65 million in CoC funds; central staff reported that a HUD seminar earlier that day indicated the region's maximum award could fall to about $19 million under the new guidance. For Seattle, LeBrec said that about 17 permanent supportive housing projects in the city rely on continuum funds for operations and services, representing roughly $17 million that may be at risk.

What the council did: The committee first voted on Councilmember Kettle's substitute amendment to reduce the reserve by $700,000; that motion passed 7-2 and then amended Rink's HSD 82 A. The full amended HSD 82 A subsequently passed (one abstention). The clerk recorded the roll calls and the chair attached the amendment to council bill 121116 for later technical review.

Outlook and next steps: Central staff and the executive will continue coordinating with King County and state partners to submit a competitive CoC application and to develop contingency plans. The council delayed any substantive new spending tied to the amendment until HUD releases award results in 2026, at which point the proviso could be lifted if the executive determines funds are not needed.

Vote details: Kettle's reduction (HSD 82b) passed 7-2; the amended HSD 82a passed with one abstention and was attached to council bill 121116. The committee postponed final passage of the overall bill to Nov. 20 to allow technical corrections.

Sources: Committee briefing by Jennifer LeBrec and Director Ben Noble; remarks by Councilmembers Andrew Rink and Kettle; committee roll-call votes.