New HUD Funding Requirements Jeopardize Counties’ Homelessness Efforts
Back to News
Late last week, the U.S. Department of Housing and Urban Development (HUD) released its FY 2025 Continuum of Care (CoC) Program NOFO, which includes dramatic policy changes to how federal homelessness funding must be spent. Among other changes, the NOFO caps CoC funding for permanent housing at 30 percent, compared to 90 percent in 2024. Additionally, programs that require services and work requirements will be scored higher.
According to various analyses, the new requirements included in the NOFO could result in the loss of more than $250 to $420 million annually for permanent supportive housing and rapid rehousing programs in California, and place 26,000 Californians at risk of losing housing.
In response, CSAC submitted a letter this week to California’s Congressional Delegation in opposition to the recently issued NOFO. Additionally, CSAC calls for the inclusion of language in the FY 2026 HUD appropriations bill to renew all existing CoC contracts for 12 months.
CSAC is interested in hearing from counties regarding estimates on the potential impacts to funded homelessness and housing programs, as well as the number of people impacted. Please send any initial estimates and projected impacts to Justin Garrett (jgarrett@counties.org) and Danielle Bradley (dbradley@counties.org).
Additional Resources: