The Department of Housing and Urban Development is changing how homelessness dollars are being doled out, and 21 states, including Washington and Oregon, are suing them for it .

For years, HUD has used its Continuum of Care to distribute grant money to local housing providers.

But on Nov. 13, HUD Secretary Scott Turner announced changes to the program , drastically reducing the amount of grant money that can go toward permanent supportive housing, an approach which studies show successfully reduces rates of homelessness and substance abuse. Previously about 90% of the grants went toward permanent housing. Under the new rules, about 30% will go to such projects.

Now, HUD says it will put funds toward transitional housing, arguing it is a more effective strategy than the "housing firs

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