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Council sets $11.1M contingency after HUD CoC NOFO reshapes funding for permanent housing
Summary
Seattle's Select Budget Committee voted to add a contingency reserve to the 2026 budget after central staff warned last-night changes to HUD's Continuum of Care NOFO limit use of funds for permanent housing to 30% and reduce renewal predictability. The committee amended and passed HSD 82 to pause expansions while staff and partners assess impacts.
The Seattle Select Budget Committee on Nov. 14 amended its budget to set aside a contingency reserve for homelessness services after central staff and the executive described sudden, potentially large changes in federal Continuum of Care (CoC) funding.
Central staffer Jennifer LeBrec told the committee the Department of Housing and Urban Development's 2025 Continuum of Care notice of funding opportunity (NOFO) was published late the previous night and contained major policy shifts. "HUD is now saying that no more than 30% of any continuum of care award can be spent on permanent housing," LeBrec said, adding that the region historically used most CoC funding for permanent…
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