Coalition Challenges Hud On Changes To Homelessness Program

Proposed changes to a widely used U.S. Department of Housing and Urban Development (HUD) homelessness program have prompted legal action from a coalition of nonprofits and local governments.

HUD issued a Notice of Funding Opportunity for the 2025 Continuum of Care (CoC) program Nov. 13 — with allocations for permanent supportive housing dropping from 86% of CoC funds to 30%. The plan redirects CoC resources toward short-term shelters that tie participation to employment and substance-abuse treatment.

On Monday, a group including the National Low Income Housing Coalition (NLIHC), National Alliance to End Homelessness and local governments of San Francisco, Boston and Nashville, Tenn., filed a complaint in federal court against HUD and Secretary Scott Turner.

“HUD’s proposed Continuum of Care Program (Notice of Funding Opportunity) represents a destructive departure from decades of homelessness policy and will put an estimated 170,000 additional households into homelessness,” said NLIHC President and CEO Renee Willis. “These actions will destabilize communities across the country. CoC funding must prioritize evidence-based housing practices, housing stability and local decision-making rather than undermine them.

“The harm to families and individuals who rely on these programs will be irreversible and felt for generations to come. Federal policy should fuel stability — not contradict it.”

HUD wants increased accountability

According to a statement from HUD, the administration believes this approach will increase accountability and encourage independence — targeting what it perceives to be the underlying drivers of homelessness.

The plan redirects CoC resources toward short-term shelters that tie participation to employment and substance-abuse treatment.

Opponents have warned it will dramatically reduce permanent supportive housing funding and disrupt services nationwide.

Turner announced $3.9 billion in competitive grant funding for the CoC program.

The CoC program is the largest source of federal funding for homelessness assistance — with an annual budget of about $3.5 billion.

CoC serves more than 750,000 people experiencing homelessness each year, including older adults, people with disabilities, veterans and families with children.