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FY 2025 Continuum of Care (CoC) Program and Youth Homelessness Demonstration Program (YHDP) Notice of Funding Opportunity (NOFO)
- 6 days ago
- 2 min read
The U.S. Department of Housing and Urban Development (HUD) has released the
This NOFO makes available $3.9 billion in awards to be used for:
Promoting treatment and recovery;
Welcoming Transitional Housing and Supportive Services projects including street outreach;
Increasing competition for grants in order to improve system efficiencies;
Measuring long-term outcomes such as increases in self-sufficiency and reduction in recidivism;
Strengthening the role of local elected officials, law enforcement, and community leaders;
Advancing public safety through thoughtful partnerships with law enforcement; and
Increasing personal accountability through enhanced treatment requirements.
Key changes from previous years’ NOFOs:
Funding cap on Permanent Housing (PSH & RRH)
HUD has introduced a 30% cap on funding for permanent housing projects (Permanent Supportive Housing and Rapid ReHousing). This is a major shift from previous years, where up to 87% of CoC funds supported permanent housing. The change aims to move resources into new project types, such as Transitional Housing and Supportive Services Only projects for street outreach.
New Priority Areas
Emphasis on street outreach, transitional housing, and treatment/recovery programs to address addiction and mental health crises.
Increased focus on public safety partnerships and community accountability.
Solo Application Option
High-quality providers denied local CoC funding may now pursue a Solo Application process.
Changes to Tier Structure
Tier 1 funding will be significantly reduced, making a larger share of funding subject to competitive scoring. This represents a departure from the previous model where Tier 1 covered 90% of a CoC’s allocation.
Restrictions on Harm Reduction Practices
Explicit prohibition on operating drug injection or “safe consumption” sites and distributing drug paraphernalia under federally funded programs.
Local applications must be submitted for Rank and Review in e-snaps by December 14, 2025. To learn more, contact Mackenzie Kelly, or join the virtual Information Session on November 19, 2025 at 1:30 PM.