Gallatin County
Mental Health
Local Advisory Council

HRDC Provides Update on Services, Shelter Expansion, and Federal Funding Concerns

HRDC Chief Operating Officer Sara Savage presented a comprehensive update on the organization’s operations, expanded services, and potential challenges ahead driven by shifting federal policy.

HRDC, a community action nonprofit, serves over 13,000 individuals annually across Big Sky, Bozeman, Livingston, Three Forks and White Sulphur Springs. The agency provides a broad continuum of support including emergency shelter, food assistance, transitional and supportive housing, rental assistance, youth at risk services, affordable housing management, transportation through Galavan and Streamline, community development, school-based and Head Start programs, senior housing and resources, and homebuyer education and financial stability programs. A strong core team of case managers supports resource allocation and connection across all programs.

On the shelter front, HRDC has expanded capacity by adding overnight family suites and additional beds on the second floor of their new shelter facility. The first floor continues to serve as a hub for community resources. Space is also available in the new building for community partners looking to co-locate services, including a medical clinic on the first floor. Organizations interested in partnership or space should contact HRDC directly.

Savage also addressed significant anticipated changes at the federal level. HRDC currently operates under a Housing First model, which provides open access to shelter and housing services without requirements around sobriety, employment, or program participation. Emerging guidance from HUD through upcoming NOFO changes signals a shift away from Housing First toward a service-based delivery model that would require participation in specific services as a condition of eligibility.

Additionally, HUD is proposing a reallocation of homeless services funding, moving permanent supportive housing from 70% of available funding down to 30%, with the balance redirected toward transitional housing. Within a two-year timeline, this shift would create significant shortages in HRDC’s local resources and result in an estimated loss of approximately $750,000 annually. Legal proceedings are currently underway at the federal level to suspend these changes and reduce their impact.

HRDC committed to keeping the LAC and community partners updated as the situation develops while continuing to plan and adapt their approach.