Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Federal Nofo Cuts topic
No spam. Unsubscribe anytime.
County officials warn federal NOFO changes could force hundreds from supportive housing
Summary
Montgomery County staff told the Health and Human Services Committee that expected changes to HUD's Continuum of Care NOFO could reduce local permanent supportive housing and rapid rehousing funding from about $10 million to $3 million, potentially affecting roughly 600 people in federally funded programs as soon as January.
Montgomery County Services to End and Prevent Homelessness (SEF) officials told the County Council's Health and Human Services Committee that pending federal changes to the HUD Continuum of Care Notice of Funding Opportunity (NOFO) could sharply reduce local funding and disrupt services.
"One of them is that we expect there will be a 30% cap to the funding for permanent supportive housing and rapid rehousing," Diana Pina, SEF's project manager for NOFO applications, said, summarizing national analysis that would cut local PSH and RRH funding from "about $10,000,000 to $3,000,000." Pina said the National Alliance to End Homelessness and local analysis expect the NOFO could be published once the federal government reopens and that awarding agencies may need to adjust in early 2026.
Chief Hong, who leads SEF's presentation team, told the committee the county currently houses about 800 people in programs that rely on Continuum of Care funding and said roughly 600 people in federally funded permanent supportive housing could be affected by a 70% reduction in that funding. "We expect that about 600 will be impacted by a 70% cut in our housing programs," Chief Hong said.
County staff warned audiences that application deadlines and timing could leave local nonprofit partners without bridge funding. Pina said local providers might face expiring contracts between January and June, which could force layoffs, service reductions or closures if federal awards are delayed or reduced. She added the NOFO's proposed scoring priorities could favor providers willing to align with a federal executive order on "ending crime and disorder" and could disadvantage agencies practicing harm reduction, DEI or gender-affirming care.
Officials described mitigation strategies the county is considering, including seeking state gap funding, working with the Housing Opportunities Commission to open vouchers, adjusting the length of local subsidies and prioritizing limited resources to prevent service interruptions. SEF staff said many of those strategies remain under discussion and that the county executive's office is coordinating budget-level responses as the FY26 operating budget is developed.
The committee did not take a formal vote; staff said they would continue coordinating with state and regional partners and return with details as strategies are finalized.
