We’ve talked about this in REACH meetings, and I have just had this question come up, which made me go look for the HUD guidance.
In case you ever need it, here is the HUD Frequently Asked Question that makes clear that a person who is chronically homeless maintains the chronic status during the time they are receiving rapid rehousing assistance:
Is an individual or family that is receiving Rapid Re-Housing Assistance considered chronically homeless for purposes of remaining eligible for permanent housing placements dedicated to serving the chronically homeless?
Yes. Program participants that are receiving Rapid Re-Housing Assistance through programs such as the Emergency Solutions Grants (ESG) Program, the Continuum of Care (CoC) Program, the Supportive Services for Veterans Families (SSVF) Program, or the Veterans Homelessness Prevention Demonstration Program (VHPD) maintain their chronically homeless status for the purpose of eligibility for other permanent housing programs dedicated to serving the chronically homeless, such as HUD-VASH and CoC-funded permanent supportive housing (so long as they meet any other additional eligibility criteria for these programs). Program participants maintain their chronically homeless status during the time period that they are receiving the rapid re-housing assistance. Rapid re-housing is a model for helping homeless individuals and families obtain and maintain permanent housing, and it can be appropriate to use as a bridge to other permanent housing programs.
It is important to note that although the program participants in rapid re-housing are considered chronically homeless for purposes of eligibility for other programs, the housing itself is still considered permanent housing; therefore, these program participants are not considered chronically homeless (or homeless) for counting purposes, and must not be included in the CoC’s sheltered point-in-time count.
Here’s where to find this helpful FAQ: https://www.hudexchange.info/faqs/530/is-an-individual-or-family-that-is-receiving-rapid-re-housing-assistance/