HDC Statement on HUD Continuum of Care Notice of Funding Opportunity
On November 13, 2025, HUD released the FY 2025 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO), making ~$3.9 billion available for homelessness programs nationwide. The NOFO represents a major policy shift, emphasizing mental health and substance use treatment while placing strict limits on funding for permanent housing. Specifically, communities may only dedicate 30% of funds for permanent housing, forcing significant reallocations from long-standing Permanent Supportive Housing (PSH) and Rapid Rehousing (RRH) programs. See here for an overview of new policies in the 2025 NOFO.
In Washington and King County, this change threatens thousands of units that provide rental assistance and supportive services to our most vulnerable neighbors, including people with disabilities and families exiting homelessness. Without action, many people could lose stable homes, and providers could face major operational funding gaps. Congressional leaders have expressed concern, and states and nonprofit grantees are considering legal action. HDC joins CSH and other stakeholders in urging HUD and Congress to protect these critical programs.
Take action with us today to stand with Washington communities and protect housing stability.
