The U.S. Department of Housing and Urban Development (HUD) has announced that it will provide more than $3.5 billion in competitive funding to homeless services organizations across the country for supportive services and housing programs for people experiencing homelessness.
“This year’s funding opportunity makes available the largest amount of funding in history under the Continuum of Care program and reflects the Biden-Harris Administration’s continued commitment to tackle the nation’s homelessness crisis with the urgency it requires,” said HUD Acting Secretary Adrianne Todman. “Nobody should have to live in their car or on the streets. These funds will provide shelter to Americans when they need our help the most.”
The competitive funding will be awarded through HUD’s Continuum of Care Program, one of the largest sources of federal grant funding for homeless services and housing programs, serving those experiencing homelessness. Nearly 400 Continuum of Care communities apply, and HUD funds approximately 7,000 homeless services projects annually through the Continuum of Care Program. Projects are operated by nonprofit providers, States, Indian Tribes, or Tribally Designated Housing Entities, and local governments.
HUD is issuing a two-year Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO) as authorized by the consolidated Appropriations Act, 2024. Communities are only required to submit one CoC application that will be applicable for FY 2024 and FY 2025 funds. This change will streamline the application process and significantly reduce the administrative burden on applicants.
Keeping Ahead of Inflation
HUD is also applying a first-of-its-kind cost of living adjustment to allow CoC budgets to better keep up with rising costs. This will provide additional pay and support for homeless assistance providers and improve overall service delivery for people experiencing homelessness.
“We don’t talk enough about the thousands of providers who work every day to end homelessness.” said Principal Deputy Assistant Secretary Marion McFadden for Community Planning and Development. “Our approach this year incorporates the feedback we received from providers to increase support for staff and reduce administrative burden by moving to a two-year application cycle so that staff can focus less time on paperwork needed to submit federal grant applications and more time on their core duties helping people experiencing homelessness.”
Improving Upon Past Projects
As with prior NOFOs, Continuums of Care will have the opportunity to renew existing projects, apply for new projects, and reallocate resources from lower performing projects to better serve people experiencing homelessness.
The NOFO contains explicit funding for:
- Survivors of domestic violence, dating violence, sexual assault, and stalking;
- Youth; and
- People experiencing the unique challenges of homelessness in rural areas.
The NOFO will provide at least $52 million for new rapid re-housing, supportive services, and other activities critical to assist survivors of domestic violence, dating violence, sexual assault, or stalking. Approximately $188 million is available for the competitive and non-competitive renewal and replacement of expiring Youth Homelessness Demonstration Program (YHDP) grants.
HUD recently also made available funding for permanent supportive housing under the new CoCBuilds competition and recent efforts to improve the way CoCs address the needs of youth and young adults through the Youth Homelessness System Improvement Grants, and the FY 2023 Youth Homelessness Demonstration Program.
