Keaton PetersHouston plans to become the first major U.S. city to eliminate street homelessness. The city is embarking on a $70 million initiative to move all unsheltered individuals into stable housing by the end of 2026, according to a report from Community Impact. The city has already secured $21.8 million toward a pilot program.
The initial funding package includes $17.5 million from combined city and federal sources, $700,000 from the state’s Homeless Housing and Services Program, $1 million from the Downtown Management District and $2.6 million from the Houston First Corporation. Discussions are underway with various Houston and Harris County entities to secure the remaining $48.2 million.
A key component of the initiative is helping homeless individuals secure housing within 30 days of identification. The majority of the funding — $45 million — will support rapid rehousing efforts, which provide short-term rental assistance and services to help people quickly obtain housing. An additional $11 million will fund permanent supportive housing, while the remainder will be allocated to mental health services, outreach programs and the creation of a navigation center.
The city plans to establish a low-barrier shelter where people can bring pets and partners and do not need to be sober to enter. Officials also intend to expand the number of available beds and affordable housing units. According to the annual Housing Inventory Count conducted by the Coalition for the Homeless, there are approximately 7,800 affordable housing units within the homeless response system across Harris County and about 10,400 beds.
According to the 2024 Point-in-Time Count and Survey conducted by the Coalition for the Homeless, approximately 2,939 people experience homelessness in Harris County, with 32% of individuals unsheltered. Although the 2025 count results won’t be released until spring, Villarreal anticipates a potential increase in the homeless population due to the loss of federal COVID-19 funds that have sustained homelessness programs since 2021.
The initial plan covers only the next one to two years, and city officials are already looking for long-term sustainable funding sources. Potential sources include the Texas Legislature, the U.S. Department of Housing and Urban Development, Houston’s tax increment reinvestment zones and the Metropolitan Transit Authority of Harris County. As a last resort, the administration could ask Houston voters to increase the city’s revenue cap, which has been in place since 2004.
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