CEO Corner: Week of September 29

Although there’s a lot happening right now that impacts our work to end homelessness (like a looming government shutdown), this week’s CEO Corner will focus on the issue that is top of mind for many of us across the homelessness field these days: the status of and content in the upcoming FY2025 Continuum of Care (CoC) Program Competition Notice of Funding Opportunity (NOFO).  

The news on this front is bleak, but like any challenge, we have an opportunity right now to use our collective voice to protect the people and programs that will otherwise be harmed.    

Let’s dig into what we know. 

FY2025 CoC NOFO 

We still have not heard any news from HUD about when the FY2025 CoC Program NOFO may be released. But last night, new reporting from POLITICO largely confirmed what we at the Alliance have been warning about for months: that this NOFO will include sweeping changes that will quickly and irresponsibly upend homelessness response systems.

Two major changes are described in the article: 

1. 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. 

2. Anti-DEI Criteria: Organizations that previously used any type of racial preferences or recognized gender non-conforming or transgender people will have points deducted. We expect that these criteria will adversely impact the vast majority of Youth Homelessness Demonstration Program projects that serve transition aged youth aged 18-24.  

The Alliance anticipates that there will also be scoring components like the criteria that was included in the third issuance of the CoC Builds NOFO.  

Urgent Call For Action   

This is extraordinarily bad news, and I am confident that there will be even more harmful changes included in this NOFO.   

The time for real action is now.

We have been working hard on Capitol Hill, but we need you. If you’ve been on the sidelines of advocacy, I need to tell you directly:  it’s time to get in the game.  And don’t just contact your lawmakers in Congress – call every stakeholder that will be impacted by such a significant loss of housing assistance and ask them to call, too. This includes state and local decision makers, landlords, developers, and so many more. It also includes those who will be most personally impacted: residents of PSH who have overcome homelessness to find stability and a place to call home.  

As Congress negotiates the terms of a short-term continuing resolution (CR) to keep the government open until a final bill can be agreed upon, we must ramp up the pressure to urge them to include a provision that would require HUD to renew all existing Continuum of Care grants expiring during calendar year 2026 for one 12- month period.  

This no-cost provision (see section 166) was already introduced in the Continuing Appropriations and Extensions and Other Matters Act, 2026 (S. 2882, H.R. 5450). If included in the CR, this would force HUD to renew eligible grants, regardless of whether a FY2025 NOFO has already been released.  

Act:  Tell Congress to keep the pressure on HUD to reverse course using this advocacy tips sheet.  

What to Expect Next from the Alliance  

The Alliance will be sending out regular communications, advocacy opportunities and updates through our various mailing lists to keep you informed.  

While there is still much that is uncertain, one thing I know for sure: the Alliance will be walking alongside you in whatever comes next.