Skip to main content

Shelter Diversion Program (SDP)

In 2022, MSHDA received a state budget allocation of $50 million for the Housing and Community Development Fund (HCDF). These funds are intended to expand housing supports for the State of Michigan through a variety of projects and services based on identified needs. Through stakeholder engagement and listening sessions, MSHDA identified shelter diversion as a priority demonstration project to test, expand, and implement shelter diversion practices and models in select homeless crisis response systems. Under this allocation, MSHDA is investing $3 million for a 2-year Shelter Diversion Pilot through a competitive Request for Proposals (RFP) process.

Due to the success of the pilot, in 2024, MSHDA approved a six community $1,000,000 expansion of the successful pilot funded through HCDF. Communities were awarded through a competitive RFP.

Shelter diversion is a strategy that helps people experiencing a housing crisis to quickly identify and access safe alternatives to shelter where possible. Shelter diversion is most effective when implemented collaboratively at the community-level, with shared knowledge and understanding of diversion practices and goals. Through the Shelter Diversion Pilot RFP, MSHDA is seeking proposals from eligible agencies to implement or expand effective shelter diversion models. This pilot will demonstrate the impact of effective shelter diversion on homeless crisis response systems and, more importantly, the impact on households at risk of or experiencing homelessness. All selected agencies will be part of a learning cohort for this project and will engage regularly with their peers, MSHDA project staff, and selected training and technical assistance throughout the course of the project.

  SDP Grantees

Required Documents

Technical Assistance

Archived Program Information

In the News

Questions about the Shelter Diversion Pilot Program?

Contact Jennifer McNeely, Program Specialist, at mcneelyj2@michigan.gov