The US Department of Housing and Urban Development issued the FY2025 Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO) on November 13, 2025, authorizing homeless services organizations to apply for more than $3.9 billion in competitive funding to provide supportive services and housing programs for people experiencing homelessness.

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CoCs are eligible to apply for CoC Program funds by submitting the Consolidated Application, which includes a Priority Listing of individual agency projects and a CoC Application detailing collaborative homelessness response across the CoC.

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Organizations interested in submitting a project application must read the NOFO in its entirety and attend a mandatory virtual technical assistance session with Lead Agency staff. Sessions will be announced and sent out via email notification in the near future. Please view the grant NOFO at this site: https://www.grants.gov/search-results-detail/360861

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This NOFO details a shift in HUD’s priorities around homelessness and the competition must be completed in a very tight 60-day timeline. Submission of the Consolidated Application is due from the Collaborative Applicant (Fayetteville/Cumberland County CoC’s Lead Agency) to HUD on January 14, 2026. 

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KEY CHANGES FROM PREVIOUS NOFO

On the recorded webinar, HUD representatives noted the agency’s intent to stop and reverse recent record increases in homelessness. As a result, there are a few key shifts in funding priorities. 

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The FY 2025 NOFO:

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• Returns the CoC Program to an annual competition and supersedes last year’s 2-year NOFO by eliminating Year 2.

• Caps permanent housing (PH) projects to 30% of annual renewal demand (ARD). PH projects include Rapid Rehousing (RRH) and Permanent Supportive Housing (PSH).

• Tier 1 is also capped at 30% (down from 90% in 2024). No more than this amount may fund permanent housing projects.

• Strongly encourages support for seniors with disabilities: For PH (RRH and PSH) projects within 30% ARD, HUD strongly encourages support for senior neighbors with disabilities.

• Promotes balance and increased competition: HUD is encouraging investment in Transitional Housing (TH) and Support Services Only (SSO) – including Street Outreach projects. CoCs may reallocate funding above 30% ARD to these new projects.

• Promotes treatment and recovery: HUD strongly encourages that projects incorporate supportive service participation in their program design, based on individual need, and include evidence in occupancy agreements or equivalent documents.

 

HUD urges Continuums of Care (CoCs) to broaden their network of providers – particularly high-performing, faith-based organizations, when appropriate – who can achieve outcomes aligned with the priorities outlined above and within this NOFO. HUD encourages mission-driven organizations that share these priorities, but have not previously received CoC funding, to engage with their local CoC. If strong service providers are denied CoC funding, HUD advises these agencies to explore the Solo Application process, as detailed in this NOFO. 

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Letters of Intent to apply are required and are due on December 5, 2025 at 12:00 p.m. Please direct questions to Lead Agency Heather Skeens at hskeens@cumberlandcountync.gov.