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HUD NOFO shifts risk local permanent supportive housing; CoC expects tougher competition and cuts
Summary
Human Services Coalition briefed the committee that the HUD Continuum of Care NOFO changes prioritize transitional and outreach projects and reduce guaranteed renewals for permanent supportive housing, estimating a potential 40% reduction in renewal capacity and an approximate loss of 37 permanent‑supportive units locally, with youth programs likely hardest hit.
Liddy Barger, director of housing initiatives at the Human Services Coalition and lead for the local Continuum of Care (CoC), told the Health & Human Services Committee that the U.S. Department of Housing and Urban Development's latest CoC Notice of Funding Opportunity (NOFO) shifts federal priorities away from guaranteed renewals for permanent supportive housing toward transitional and outreach‑style projects.
"There are many things that are different this year…we are preparing and anticipating for a 40% cut in our ability to fund permanent housing using CoC dollars," Barger said. She explained the CoC's annual renewal demand is roughly $1.5 million and that reductions in guaranteed renewals could bite most heavily into youth‑serving permanent supportive housing projects.
Barger estimated the local effect could amount to a loss on the order of 37 units of permanent supportive housing. "It's not a huge number," she said, "but it's 37 beds of permanent supportive housing," and she warned that youth programs (about $600,000 of the $1.5 million renewal demand) would likely feel disproportionate impacts.
Timeline and next steps: Barger said the local competition will open in the next week, local applicants (renewal and potential new projects) should expect a roughly one‑month turnaround for local submissions, the community's collaborative application to HUD is due Aug. 26, awards are expected by Dec. 1, and contracts would begin in Q1 2027.
Committee members asked for specifics about units and alternatives for projects that might lose funding. Barger noted some HUD guidance allows limited transitional‑housing eligibility for people exiting permanent housing under certain conditions but cautioned that transitional projects are not a direct replacement for lost permanent supportive housing and that careful, community‑wide planning will be required.
What happens next: The CoC will circulate local application materials and host workshops and information sessions in the coming weeks; committee members signaled interest in follow‑up coordination to identify new providers and supports for populations at risk of displacement.
