HUD announces $3.5 billion in funding for homeless services

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HUD announces $3.5 billion in funding for homeless services

Adrianne Todman, Deputy Secretary | https://www.hud.gov/leadership#sec

The U.S. Department of Housing and Urban Development (HUD) has announced the allocation of over $3.5 billion in competitive funding to homeless services organizations nationwide. This funding aims to support services and housing programs for individuals 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,” stated 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 distributed through HUD’s Continuum of Care Program, which is the primary federal grant source for homeless services and housing programs. Nearly 400 Continuum of Care communities apply for this Notice of Funding Opportunity (NOFO). Annually, HUD funds approximately 7,000 projects operated by nonprofit providers, states, Indian Tribes or Tribally Designated Housing Entities, and local governments.

For the first time, HUD is issuing a two-year Continuum of Care Program NOFO as authorized by the Consolidated Appropriations Act, 2024. Communities will submit one application applicable for both FY 2024 and FY 2025 funds. This change aims to streamline the application process and reduce administrative burdens on applicants.

HUD is also introducing a cost-of-living adjustment for CoC budgets to address rising costs, providing additional pay and support for homeless assistance providers.

“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 feedback 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.”

As with previous NOFOs, Continuums of Care can renew existing projects, apply for new ones, and reallocate resources from lower-performing projects.

The NOFO includes specific funding allocations: at least $52 million for rapid re-housing, supportive services, and other activities critical for survivors of domestic violence, dating violence, sexual assault or stalking; approximately $188 million is available for renewal and replacement of expiring Youth Homelessness Demonstration Program grants.

This announcement complements recent efforts by HUD such as permanent supportive housing under CoCBuilds competition and improvements through Youth Homelessness System Improvement Grants.

Since its inception, the Biden-Harris Administration has prioritized addressing homelessness with urgency by reconnecting people experiencing homelessness with housing resources swiftly. HUD emphasizes racial equity, anti-discrimination policies for LGBTQ+ individuals, engaging persons with lived experiences in decision-making processes, and increasing affordable housing supply.

The deadline to submit CoC Consolidated applications is October 30th at 8:00 PM EDT.