Investing in Proven Housing Solutions - A Letter to Mayor Bowser Regarding DC’s FY27 Fiscal Budget

DCEnding HomelessnessCommunity Leadership

Mar 18

Written By Greater Washington Community Foundation

Dear Mayor Bowser,

I am writing on behalf of the Greater Washington Community Foundation and its Partnership to End Homelessness Leadership Council to offer our recommendations on DC’s Fiscal Year 2027 budget.

We know that our city faces another challenging budget year. As business and philanthropic leaders, we recognize the importance of balancing revenue and expenditures responsibly. At the same time, we know that strategic investment in programs that prevent and end homelessness is not only the right thing to do – it is the financially smart choice. When homelessness goes unaddressed, the costs ultimately rise—placing greater strain on emergency services, law enforcement, the courts, and hospital systems. Evidence shows that investing in prevention and permanent supportive housing significantly reduces these costs, produces measurable savings over time and yields a clear return on investment for our city.

We commend your administration’s long-standing commitment to advancing solutions that prevent and end homelessness and strengthen housing stability across our city. As you conclude your service as Mayor, you have a meaningful opportunity to solidify the progress made during your tenure and leave a legacy that reflects both moral leadership and strong fiscal stewardship. Under your leadership, the District has demonstrated that putting resources behind proven solutions works. Continuing to invest now will prevent higher costs later and ensure that progress toward ending homelessness is sustained.

Our Fiscal Year 2027 budget recommendations focus on solutions that deliver both social impact and long-term cost savings for the city.

Fund 1,260 new Permanent Supportive Housing (PSH) vouchers for individuals experiencing chronic homelessness. Fund 782 PSH vouchers for families and invest in Targeted Affordable Housing (TAH) for families. PSH is a proven solution that combines a housing voucher and individualized case management. TAH provides a housing voucher with light-touch case management, housing search, and move-in assistance.
Fully fund Emergency Rental Assistance Program (ERAP). ERAP is a critical tool for preventing evictions in DC. Every additional $8 million in ERAP investment helps approximately 2,000 households avoid evictions by helping to pay overdue rent and legal costs.
$1.75 million to Project Reconnect to prevent evictions. Project Reconnect, DC’s prevention program for single adults, provides flexible funds to prevent homelessness. This level of funding would ensure all who qualify can find alternatives to shelter such as reuniting with friends and family.
Maintain funding for 100 single adults in DC Flex in FY27. These small subsidies improve rent affordability for working households. The pilot was supposed to include 100 individuals, but lawmakers cut eligibility to 25 individuals because of spending pressures.
Allocate $6.4 million to the Coordinated Street Outreach Network. This critical program helps unsheltered residents meet their basic needs and move into housing, if housing is available. With over 700 people currently sleeping outside and increased threats against people experiencing homelessness, it is more important than ever that we are doing everything we can to support our unsheltered neighbors.
Allocate $120 million to the Housing Production Trust Fund (HPTF). Set-aside 30 percent of the Housing Production Trust Fund for preservation and make the one- time preservation set-aside in the FY 2026 budget into a permanent 30 percent preservation set-aside. Consistent and predictable preservation dollars will support affordability for tenants and sustainability for housing providers.
Allocate $17.33 million to the Local Rent Supplement Program to improve housing affordability for residents and families with extremely low incomes. This would create about 600 new housing vouchers.

This budget can house thousands, save the city money, and define your legacy as a mayor who leads with results and heart.

Thank you again for your leadership and commitment to our city.

Sincerely,