Homelessness is a complex issue in New Hampshire, compounded by a housing shortage and often exacerbated by mental health and substance abuse. But at the state and federal level lawmakers have a solution – provide funding to local agencies to help provide tailored resources.

On Wednesday, New Hampshire’s congressional delegation announced $12.8 million in funding for nonprofits and other local agencies that serve people experiencing homelessness.

And in the State House, Sen. Donovan Fenton, a Keene Democrat, introduced a bill to fund $5 million in a pilot program to support Community Action Programs and municipalities in addressing the current crisis.

“We have a homelessness issue here in New Hampshire,” said Fenton. “The program will address homelessness in specific communities based on their unique needs and populations experiencing homelessness.”

As homelessness is on the rise in New Hampshire – with over 6,000 people unhoused statewide, according to the NH Coalition to End Homelessness – agencies need flexible funding to meet client’s needs, said Fenton.

Often, state and federal funds come with restrictive uses. The pilot program proposed in Senate Bill 406, of which he is the prime sponsor, would provide flexible funding for these agencies to use as best they see fit.

For the five Community Action Programs in the state, a Request for Proposal will be issued to apply for funding.

Municipalities could use the funding also to finance homeless shelters, other lodging like hotel stays or provide incentives for landlords to house people experiencing homelessness, said Fenton.

“We want to help these individuals before they wind up in the shelter,” said Fenton. “Investing in homelessness prevention is a proactive strategy that can help individuals on the verge of homelessness to maintain stable housing.”

The amount of funds available for each municipality would be determined based on the number of people enrolled in Medicaid as of April 30. Program funding would also come from American Rescue Plan Act money, if available before general funds are utilized.

This state initiative, the Homeless Prevention Pilot Program, would complement state funding and other grants available to service providers.

Of the $12.8 million from the federal delegation, organizations in the Concord area received $7.6 million. Recipients include the Concord Coalition to End Homelessness, which received over $600,000 for their permanent supportive housing projects, the Community Action Program of Belknap and Merrimack County with $250,000 for their rapid rehousing program and the New Hampshire Coalition Against Domestic and Sexual Violence, which also was awarded over $300,000 for their rapid rehousing program.