Homosexuality is not allowed in Islam. There are various verses in Quran where Allah clearly says about Homosexuality.
We also (sent) Lut: he said to his people: "Do ye commit lewdness such as no people in creation (ever) committed before you? "For ye practice your lusts on men in preference to women: ye are indeed a people transgressing beyond bounds." - Holy Quran 7:80-81
"Of all the creatures in the world will ye approach males". "And leave those whom Allah has created for you to be your mates? Nay ye are a people transgressing (all limits)!" - Holy Quran 26:165-166
The end result for not giving up homosexuality was the destruction of entire cities
When Our decree issued We turned (the cities) upside down and rained down on them brim stones hard as baked clay spread layer on layer Marked as from thy Lord: nor are they ever far from those who do wrong! - Holy Quran 11:82-83
The Quran forbids any sexual relationship other than in a marriage between a man and a woman. Many homosexual men and women claim that they are born with their sexual preferences and that they have no choice. Although this point is very much in dispute in the medical world, it has no support in the Quran. Even then, irrespective of the nature of homosexuality, this matter would not affect the laws spelled out clearly in the Quran .
We know that this life is a test. Everyone of us has his/her own test. For example someone may be born blind, but that person is expected to live his/her life according to God's law. Others are born poor, short, tall, weak, missing fingers, having big nose...etc but all of them are expected to follow God's law. Some men or women may never marry in their life, or spend part of their life without a spouse. As per the Quran they still have to live a chaste life and avoid any sexual contacts outside a marriage. They have to suppress their sexual feelings to follow God's law. It is a major test and not an easy one for many. Only those who submit to God will do everything they can to follow His law. They know that their salvation and eternal happiness rests in doing so.
Since God condemns homosexuality, then we have to believe that a man or a woman with homosexual feelings is expected to behave like any other human being and follows God's laws if he/she truly believes in them. He/she shall resist his/her feelings , maintains abstinence , use all available resources of help including medical, social and behavioral therapies to overcome their behavior and feelings. They should pray to God to help them getting over it and submit to God's law that sees homosexuality as gross sin. Only those who steadfastly persevere in obeying God's law will they pass their test and confirm their submission to God.
For a person who asks, "why me?" We know God is the Most Merciful and Just (16:90) and He will give each one of us a fair test and a fair chance. He assigns the tests to suite each one of us and we believe that He will never burden any soul beyond its means (23:2).
And We have explained to man in this Qur'an every kind of similitude: yet the grater part of men refuse (to receive it) except with ingratitude!- Holy Quran 17:89
We have explained in detail in this Qur'an for the benefit of mankind every kind of similitude: but man is in most things contentious. - Holy Quran 18:54
We have put forth for men in this Qur'an every kind of Parable in order that they may receive admonition. - Holy Quran 39:27
The spouses that God have made from among ourselves are those that aid in producing children. Since the spouses in homosexual relationship would not produce children they are not the spouses God made from among ourselves.
And Allah has made for you mates (and companions) of your own nature. And made for you out of them sons and daughters and grandchildren and provided for you sustenance of the best: will they then believe in vain things and be ungrateful for Allah's favors? - Holy Quran 16:72
With regard to dealing with homosexuals, the basic rule governing this would be 60:8 & 9.
Allah forbids you not with regard to those who fight you not for (your) Faith nor drive you out of your homes from dealing kindly and justly with them: for Allah loveth those who are just. Allah only forbids you with regard to those who fight you for (your) Faith and drive you out of your homes and support (others) in driving you out from turning to them (for friendship and protection). It is such as turn to them (in these circumstances) that do wrong. - Holy Quran 60:8-9
However, to be a winner we have to advocate righteousness and forbid evil.
Let there arise out of you a band of people inviting to all that is good enjoining what is right and forbidding what is wrong; they are the ones to attain felicity. - Holy Quran 3:104
Ye are the best of peoples evolved for mankind enjoining what is right forbidding what is wrong and believing in Allah. If only the People of the Book had faith it were best for them; among them are some who have faith but most of them are perverted transgressors. - Holy Quran 3:110
The believers men and women are protectors one of another: they enjoin what is just and forbid what is evil: they observe regular prayers practice regular charity and obey Allah and His apostle. On them will Allah pour His mercy: for Allah is Exalted in power Wise. - Holy Quran 9:71
Also, if God so wills, a reminder may benefit the person.
On their account no responsibility falls on the righteous but (their duty) is to remind them that they may (learn to) fear Allah. - Holy Quran 6:69
Therefore give admonition in case the admonition profits (the hearer). - Holy Quran 87:9