Local homeless programs do not know what the future holds after thousands of dollars in funding is lost.

Serna Village located in McClellan lost $250,000 in federal funding for 2017. According to the Sacramento Bee the homeless program's future is dim after this funding was cut. Another program in jeopardy, which the article highlighted, is the Math Community Campus in Rancho Cordova who lost $2.6 million in federal funding for 2017.

One of the requirements for Serna is a person must be sober first, which Mather does not have. Both help in getting homeless off the streets and into housing and/or work.

David Husid, VP, Community Development for Serna Village said he feels like HUD is bullying them to comply with the guidelines by cutting funding.

"As much as I love HUD money I am really sick of HUD telling me how to run a program," Husid said.

The organization offers programs within the community and residents must stay sober.

"Serna Village is permanent supportive housing, transitional in nature," he said. "I don't want you to live here forever, HUD would be happy if you lived here forever they would be happy if they put you in a house and you stayed there, but I don't think you need to be here forever."

They encourage people to get an education, stay sober, fix their credit. Husid thinks this will help people move out and contribute to society.

Jacquelyn Thomas took ABC10 on a tour of the property. She is in recovery from alcohol, drugs and domestic violence. She was also homeless and is thankful for the sober environment at Serna.

"I got my high school diploma, I am going to school to C-A-B for drug and alcohol counseling, I would like to work in that field," Thomas said.

She said that she has a plan to move out and get a house. Thomas is afraid that once money runs out Serna will close, because the staff does not want to get rid of the sober environment to comply with HUD.

"It is a really tough situation because what do you do? I don't know I don't know," Thomas said.

ABC10 spoke to Ryan Loofbourrow, the CEO of Sacramento Steps Forward. This is the local agency that works with the county and city to distribute funding to these organizations that help the homeless.

"Housing first means there will be no barriers to housing and requiring there to be sobriety is creating a barrier for individuals to access that housing," Loofbourrow said.

The group chose to exclude transitional housing programs to get "maximum federal funding" for other programs that comply.

"I think individuals who are experiencing homelessness, and just get them in a home that they desire would not be consistent with best practice nationally and that's what HUD is holding us accountable for," he said.

Loofbourrow told ABC10 that HUD funding is not meant to help people get sober or keep them accountable, but to get people into housing. He also added that HUD housing does have voluntary programs, if the residents choose to use them, but they aren't mandatory like Serna Village.