Former homeless residents at risk of losing subsidized housing in Orange County

Formerly homeless residents in Orange County could lose their subsidized housing as federal funding for rental assistance dries up.

Rose and Orlando Villegas have been off the streets and living with their teenage daughter in a Stanton apartment for six years. Both are battling cancer but have been able to make ends meet through the federal rental assistance program. 

"Me and my husband, both of our incomes, we get $2,500 only a month," Renee Villegas said. "With our rent of $2,000 now, we have to come up with that ourselves. We have nothing left to survive on."

The Villegas are one of more than 1,000 formerly homeless people across Orange County who are finding out that they could be back on the streets as funding for a U.S. Department of Housing and Urban Development grant expires, according to officials. The grant delivered rental assistance funds through local nonprofits, including American Family Housing.

"Right now, we're scrambling because we're driving toward a cliff," said Milo Peinemann, CEO of American Family Housing. "What are we to do with these households starting January? Unless we are going to do bake sales on the weekend and keep them in housing, what are we supposed to do?"

The HUD grant paid for 66% of the Villegas' rent. They fear they'll be forced back onto the streets if the funding stops.

"We're both sick and on Social Security that's all we get," Renee said. 

There's another family, a single mother and her six children, living in Villegas' apartment complex. They said they've also been told they will lose their rent subsidy in a matter of days.

The nonprofit that has been helping them is trying to find a roof to put over their heads.