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Last week, HUD released the FY2025 Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO). The NOFO provides significant changes to the CoC Program Application that would result in the loss of 170K units of affordable.

Some of the concerns with the NOFO include:

•Permanent Housing Cap: HUD intends to cap the total amount of funding that each CoC can use for permanent housing to only 30 percent of CoC funds. Currently, 87 percent of all CoC-funded projects are for permanent housing (Permanent Supportive Housing and Rapid Re-Housing).This change alone would result in the loss of permanent housing assistance for more than 170,000 people nationwide, including older adults, people with disabilities, veterans, and families with children. Nearly every CoC in the country will be negatively impacted by this change.

•Criteria: Organizations that previously used any preference to ensure protected classes have equal access to housing will have points deducted. We anticipate this could impact many Catholic Charities programs, including Youth Homeless Demonstration Programs.

•Delay and Gap in Funding. Because the recently released CoC Program NOFO for FY2025 funds was released so late in the year, and the applications are due in January 26, some FY2024 grants will begin to expire and run out of funds. Further, based on historical timing, it is very likely that HUD will not announce awards much before June 2026, possibly later. This will leave any organizations with renewal grants that expire during this timeframe at risk of not being able to pay rent, make payroll, or cover other operating expenses. In addition, given HUD's plan to force communities to reallocate so much existing permanent housing funding to create new projects based on the administration's priorities, there will be even bigger gaps in resources because funds will not be available for those new grants until they are ready to begin operating, which can take 6 months or longer.

For more details of the proposed changes, please see the National Alliance to End Homelessness Full Analysis ([link removed]).

Take action now by using the following action alert:
Urgent Alert! 170K people could lose housing ([link removed])

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