Hundreds of low-income residents living in one of California’s most exclusive coastal enclaves could soon be forced from their homes after receiving a dreaded letter warning that their federal housing assistance is about to run dry.

The June 4 notice from the Housing Authority of the City of Santa Barbara informed recipients of federal Emergency Housing Vouchers that their assistance will expire on Sept. 30, putting hundreds at risk of eviction in a county known for sky-high housing costs, according to the Santa Barbara Independent.

The Biden-era program was created to help some of the nation’s most vulnerable residents, including people experiencing homelessness and those fleeing domestic violence, sexual abuse and human trafficking. It was designed to bridge the gap between wages and soaring rents.

About 45,600 households nationwide currently rely on Emergency Housing Vouchers. In Santa Barbara County, 192 vouchers provide roughly $4.4 million a year in housing assistance to 315 residents, including 62 seniors, 94 people with disabilities and 91 children, the Santa Barbara Independent reported.

The program was originally slated to continue through 2030. But last year, the US Department of Housing and Urban Development notified housing authorities that the program’s $5 billion funding pool was exhausted, ending it four years early.

“The stark reality is, if these households cannot afford the contract rent, they will probably end up back into homelessness,” Housing Authority Executive Director and CEO Rob Fredericks told the Santa Barbara Independent.

Officials had hoped to move Emergency Housing Voucher recipients into the Housing Choice Voucher program, a longstanding federal housing assistance system. But that program has struggled financially since the federal government recaptured housing authority reserves at the end of 2024.

Fredericks said the shortfall is expected to continue through 2027 after HUD’s most recent funding allocation failed to meet the housing authority’s needs.

“We’re scrambling,” Fredericks said. “This federal administration has pulled many rugs out from under us.”

Residents losing Emergency Housing Vouchers will receive priority status on the Housing Choice Voucher waiting list, but Fredericks said there is currently no realistic pathway for them to obtain those benefits, at least through next year.

Housing advocates are urging recipients not to panic as officials continue searching for solutions.

Alex Entrekin, an attorney with the Legal Aid Foundation of Santa Barbara County, told the Santa Barbara Independent that residents receiving Emergency Housing Vouchers “should seek advice at our office, from their neighbors, from the tenants’ union, and they should petition their governments to help. There’s a lot that could still be done.”