HUD Launches New $175 Million Opportunity to Build Housing

Funding will build new homes for people experiencing homelessness.

WASHINGTON - Today, the U.S. Department of Housing and Urban Development (HUD) made $175 million available through first-of-its-kind funding for new construction, acquisition, or rehabilitation of permanent supportive housing. Through one-time awards under the Continuum of Care (CoC) program, the CoCBuilds Notice of Funding Opportunity (NOFO) will enable communities to develop new units of rental housing with supportive services for people experiencing homelessness. This NOFO ensures that funding will benefit communities of varying demographics and population sizes by setting aside $65 million for CoCs that are located in states with populations of fewer than 2.5 million people. Applications are due November 21, 2024.

“Simply put, we need to build more housing and we need to repair the housing we have,” said HUD Acting Secretary Adrianne Todman. “This new funding is a focused investment in housing for people experiencing homelessness, particularly given the increased number of Americans sleeping on our streets.”

Permanent Supportive Housing (PSH) is non time-limited rental housing in which supportive services are available to assist individuals with a disability who are experiencing homelessness - and to assist families where at least one household member has a disability and is experiencing homelessness - to live independently. PSH addresses both the immediate need for housing and the underlying factors contributing to homelessness, leading to better outcomes for individuals and communities alike.

“When we have a safe, stable place to call home, we’re able to focus on our health, our families, and our communities. For our neighbors experiencing homelessness, especially those living with disabilities, this funding will provide access to affordable housing and lifesaving services,” said Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden. “The CoCBuilds competition further advances the Administration’s commitment to boosting housing supply and ensuring homelessness is rare, brief, and non-recurring.”

Through the CoCBuilds initiative, HUD is encouraging CoCs to leverage awarded funds provided for construction, acquisition, or rehabilitation of new PSH units with other funding sources - maximizing the amount of housing available to meet the needs of individuals and families experiencing homelessness. In addition to funding the creation of new units, up to 20 percent of each award may be used for other eligible CoC Program activities associated with PSH projects including supportive services and operating costs—costs which are renewable. 

To support the housing needs of tribal communities, the CoCBuilds NOFO provides incentives for funding projects in partnership with Indian Tribes and Tribally Designated Housing Entities (TDHEs).

Permanent supportive housing is a beneficial strategy in addressing homelessness for several reasons.

• Stability: It provides stable housing for individuals who may otherwise be experiencing homelessness or precariously housed, offering a foundation for stability in their lives.
• Support Services: It offers on-site or readily accessible, voluntary support services such as counseling, healthcare, substance abuse treatment, and job training, tailored to the individual's needs.
• It can reduce overall public costs by decreasing the use of emergency services, such as hospitals, shelters, and law enforcement, which are often utilized at higher rates by individuals experiencing homelessness.
• Improved Health Outcomes: Stable housing contributes to better physical and mental health outcomes for residents, as they have a safe and consistent environment in which to address health issues and access regular care.
• Community Integration: Permanent supportive housing allows individuals to become integrated into their communities, fostering a sense of belonging and social connection, which are crucial for overall well-being.
• Prevention of Recidivism: For individuals who have experienced incarceration or cycles of homelessness, permanent supportive housing can break these cycles by providing a stable environment and support systems to prevent relapse into previous patterns.

To ensure a comprehensive approach, applicants are expected to partner with housing, health and service agencies to ensure access to supportive and public services while increasing the local affordable housing supply.

The CoCBuilds initiative builds upon the Biden-Harris Administration’s historic investments in housing and homelessness. The American Rescue Plan provided over $5 Billion through the HOME-ARP program to build new rental housing, provide rental assistance, develop non-congregate shelter, and supportive services to those experiencing or at risk of homelessness. Earlier this year, HUD awarded nearly $3.16 billion in Continuum of Care funding through the annual competition for over 7,000 projects across the country.

Since Day One, the Biden-Harris Administration has been tackling the nation’s homelessness crisis with the urgency it requires, prioritizing new resources and programs to help communities quickly reconnect people experiencing homelessness to housing. HUD remains committed to policy priorities of ending homelessness for all persons, placing emphasis on racial equity and anti-discrimination policies for LGTBQ+ individuals, engaging persons with lived experiences of homelessness in decision-making, and increasing the supply of affordable housing. 

For more information about the CoC Builds NOFO, please visit: https://www.hud.gov/program_offices/comm_planning/coc.