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Panel warns HUD CoC NOFO changes could threaten local supportive housing; injunction delays implementation

Thurston County Regional Housing Council · January 29, 2026
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Summary

A panel briefed the Thurston County Regional Housing Council on proposed HUD Continuum of Care (CoC) NOFO changes that would cap permanent housing funding and reduce automatic renewals; litigation led to an injunction requiring current-project renewals while the case proceeds, but local providers say uncertainty still risks services for hundreds of households.

Nick Mondo, federal programs manager at the Washington Department of Commerce, told the Regional Housing Council that HUD’s recent Continuum of Care (CoC) Notice of Funding Opportunity proposed sweeping policy changes — including capping permanent housing awards and sharply reducing projects that would be automatically renewed. The changes, he said, would alter long-standing renewal practices and could force many communities to recontest funds this year.

The NOFO proposed limiting a CoC’s award of permanent housing projects to roughly 30 percent and cutting the share of projects considered "held harmless" from prior renewal levels to about 30 percent, Mondo said. In response, Washington state and other plaintiffs sued HUD; a federal judge in Rhode Island…

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