Gallup council considers $70,000 opioid settlement housing funds for NOVA 3 residents

The City of Gallup placed an item on its Feb. 10 council agenda seeking approval to use $70,000 in opioid settlement and Housing Trust funds to support residents of NOVA 3. The City’s Behavioral Health Division requested the emergency funding to keep residents of NOVA 3 housed, listing the proposal on the agenda as "Approval of use and Budget Adjustment of Opioid Settlement and Housing Trust Funds in the amount of $70,000."

That funding request landed at the top of the council’s consideration because it ties directly to housing stability and behavioral health services in McKinley County. For residents of NOVA 3, a single funding decision could determine whether households stay in place or face displacement, with downstream effects for families, schools and local service providers. The Behavioral Health Division framed the ask as emergency assistance targeted to prevent immediate housing losses among a client population that city staff judge to be vulnerable.

Gallup officials are using two distinct revenue streams for the request: designated opioid settlement dollars and the city’s Housing Trust Fund. Opioid settlement funds have been allocated to municipalities to address harms associated with the opioid crisis, while Housing Trust monies are typically reserved for preserving or creating affordable housing. Combining the two streams signals an approach that links public health intervention with housing stabilization.

For local leaders and service agencies, the question before council members is whether the $70,000 adjustment should be approved and directed immediately. The item requires a formal vote under the city’s budget adjustment process, and should the council approve it, Behavioral Health Division staff would be able to deploy funds toward rent support, arrearage payments or short-term interventions intended to avert eviction from NOVA 3.

The proposed use of funds arrives amid continuing pressures on affordable housing in McKinley County and ongoing needs related to substance use and mental health. Housing stability is a frontline strategy for reducing emergency shelter demand and for maintaining continuity of behavioral health care. City staff emphasized the emergency nature of the request in order to minimize disruption for NOVA 3 households.

Residents concerned about potential displacement or interested in how these funds might affect local programs should watch for the council’s formal action and for follow-up announcements from the City of Gallup Behavioral Health Division. The council’s decision will set a precedent for how the city deploys settlement and trust funds to address overlapping public health and housing needs, and will shape short-term living conditions for NOVA 3 tenants.