Baltimore approved for $6M federal HUD reimbursement once feared lost

Mayor Brandon Scott with U.S. Department of Housing and Urban Development acting Secretary Adrianne Todman, Director of the Mayor’s Office of Homeless Services Ernestina Simmons, Secretary for the Governor’s Office of Housing and Community Development Jacob Day, Baltimore Chief Recovery Officer Shamiah Kerney, Councilman Robert Stokes and Continuum of Care Co-Chair Dan McCarthy at the unveiling of Baltimore’s two new hotels-turned-homeless-shelters earlier this year. Tony Roberts/Staff

Baltimore will receive a $6 million reimbursement from the federal government that was feared lost after the city failed to draw down the funds in a timely manner, city officials said this week.

The U.S. Department of Housing and Urban Development funds will reimburse the Mayor’s Office of Homeless Services, or MOHS, for expenses related to its Continuum of Care program, which among other things helps to pay for housing for homeless residents. Baltimore contracts with about 40 vendors who in turn make payments to various landlords to ensure that people are housed.

In fiscal year 2020, MOHS was forced to relinquish funding the organization could have tapped from HUD due to problems accessing the funds. Baltimore lost access to the system for at least three months because employees of MOHS either left the office or were barred from access.

During a September 2023 council hearing on the lost funds, MOHS leaders said the city’s distribution system for the money has been critically challenged for years, causing delays in payments to vendors and subsequently landlords. As a result, residents have faced evictions.

MOHS Director Irene Agustin resigned shortly after news of the lost funds became public. She was replaced by Ernestina Simmons.

Mayor Brandon Scott personally appealed to then-HUD Secretary Marcia Fudge in June 2023 imploring her for an extension to withdraw money from the fiscal year 2020 grant. MOHS submitted additional documents to HUD in November, and since then HUD has been monitoring MOHS and the vendors who receive the funds from MOHS, city officials said.

On Thursday, Scott issued a news release thanking federal officials and pledging to strengthen MOHS in the future.

“This process has been a reflection of MOHS’s ability to adapt quickly and provide our partners on the ground the support they need in less than ideal circumstances,” he said. “As we move forward, we will utilize this experience to strengthen the agency and ensure that we are doing everything in our power to provide Baltimore’s most vulnerable residents with the support they need.”

Simmons called the funding “critical” to helping provide housing stability for vulnerable city residents.

“I am thankful to HUD for their partnership and support this past year as they worked alongside MOHS and our service providers to understand both our challenges as well as the steps we have made to improve our systems and processes,” she said.