H.R. 2206 — Prevent Homelessness Act of 2025

This section establishes the Housing Stabilization Fund, administered by HUD's Office of Special Needs Assistance Programs, to make annual grants—to the extent provided in appropriations—to continua of care (CoCs) for emergency housing assistance programs meeting specified requirements. (As background, CoCs coordinate local homeless services and housing under HUD's Continuum of Care program.) Eligible programs must (1) be operated by a CoC or its designee within the CoC's area; (2) serve extremely low-income families (i.e., income at or below 30% of area median) and very low-income families (i.e., at or below 50% of area median) unable to meet housing obligations due to financial hardship—including job loss or income reduction (per 42 U.S.C. 1437a(a)(3)(B)(i)), family/health crises, or unsafe conditions—with evidence such as eviction notices; (3) coordinate with local homeless prioritization tools like Coordinated Entry; and (4) meet other Secretary requirements. Grant funds may cover only housing-related obligations, including (1) prospective rent or rental arrears (limited to 8 months in the prior 12 months, not exceeding local market rents); (2) mortgage payments (same limits); (3) utilities; (4) habitability repairs (e.g., roofs, windows); (5) behavioral health, domestic violence, or employment services; (6) housing counseling or legal aid for eviction/foreclosure; (7) security deposits; and (8) other short-term stability costs (e.g., groceries, transportation). CoCs must apply and receive Secretary approval. For FY2027, grants are allocated by formula considering the CoC area's extremely low-income population (including unsheltered homeless) and severe cost-burdened renters. For FY2028 and thereafter, 80% is formula-allocated and 20% via competition.