News Summary
The Women’s Development Corporation has filed a lawsuit against HUD after new eligibility criteria were introduced, rescinding funding for affordable housing. The lawsuit claims the changes are unconstitutional and harm vulnerable populations. With support from advocacy groups, WDC aims to challenge these policies that allegedly discriminate against certain jurisdictions and populations based on non-merit factors.
Providence, Rhode Island – The Women’s Development Corporation (WDC), an affordable housing developer, has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) following changes to eligibility criteria for a significant funding opportunity. The corporation had previously been awarded a $7 million grant by HUD to support the construction of 14 housing units aimed at individuals escaping domestic violence in Providence’s West End. However, WDC was not informed of the grant award, and no agreement was executed with HUD.
On September 5, HUD announced a new notice of funding that rescinded $75 million in grants from the Continuum of Care Build Program. Alongside this cancellation, the new funding opportunity introduced major changes in eligibility requirements and established a swift application deadline of September 12.
In response to these developments, WDC, along with the National Alliance to End Homelessness, initiated a lawsuit against HUD and its Secretary, Scott Turner, on the grounds that the new policies are unconstitutional and unlawful. The lawsuit, titled National Alliance to End Homelessness v. Turner, aims to prevent the enforcement of HUD’s revised funding restrictions.
The plaintiffs contend that the new eligibility criteria disproportionately affect applicants from 36 states, including Puerto Rico and the District of Columbia. These restrictions specifically exclude “sanctuary jurisdictions,” those offering “harm reduction” services for substance users, as well as policies promoting inclusivity for transgender individuals. Advocates worry that such limitations parallel discriminatory practices like redlining, which compromise funding based on political alignments rather than the merit of housing projects.
WDC Executive Director Frank Shea highlighted that these new conditions essentially prioritize political beliefs over the fundamental need for equitable housing solutions. The affected states listed in the lawsuit include major regions such as Alaska, California, Colorado, and Connecticut, amounting to a total of 36 states.
WDC’s proposed project, aimed at preserving 47 family units within 19 buildings, was developed in collaboration with the Rhode Island Continuum of Care and Sojourner House, reflecting a comprehensive approach to addressing domestic violence and homelessness in the community. The organization’s mission aligns with the core objectives of HUD funding aimed at housing stability and supportive services.
Support for reversing HUD’s recent decision has emerged from various political figures, including U.S. Senator Jack Reed’s office. The senator’s representatives have emphasized the critical importance of these funds in combating homelessness and supporting vulnerable populations. Public sentiment among advocacy groups remains firmly against the new restrictions, with some calling them politically motivated and irrelevant to the essential goals of such grants.
The pending lawsuit has been assigned to District Judge Mary S. McElroy, who is set to hold a Zoom conference to discuss the potential for a temporary restraining order against the new eligibility criteria. This legal action illustrates the tension between federal housing policy and local initiatives aimed at fostering inclusive and accessible housing options.
As of the latest updates, HUD has not yet responded to inquiries regarding the ongoing lawsuit and the implications of its funding restructuring. With the landscape for affordable housing funding shifting rapidly, the outcomes of this legal challenge may have significant repercussions for housing developers and vulnerable populations relying on these resources across the nation.
Deeper Dive: News & Info About This Topic
HERE Resources
Brown University Reaches $50 Million Agreement with Trump Administration
Rhode Island Legislature Advances Reforms on Workers’ Rights and Health
Additional Resources
- Rhode Island Current: Lawsuit Over Federal Housing Grants Filed in Providence Federal Court
- Providence Journal: $6 Million RI Foundation Grants Bolster Health, Housing, Hunger
- Valley Breeze: Officials Look to Buckle Down on North Providence’s Grant Spending
- Wikipedia: Housing in the United States
- Google Search: Federal Housing Grants
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
