Federal Pull-Back from Funding Opportunity Notice Rattles Local Continuum of Care
Fredericksburg CoC has released a notification advising potential organizations seeking funds how to progress while HUD wrestles with how to fund CoCs
By Martin Davis
EDITOR-IN-CHIEF
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In November, the U.S. Department of Housing and Urban Development issued a notification of funding opportunities (NOFO) for housing programs administered through the roughly 400 Continuum of Cares in the U.S., which includes the one in Fredericksburg. These bodies are responsible for coordinating housing and services funding.
The notice, however, came with significant changes in its funding plans. “The change most significant to the Fredericksburg Regional CoC,” according to reporting in the Advance on December 2, “is a cap on funding for permanent supportive housing projects. No more than 30% of annual funding can be allocated towards these projects, according to information currently available.” Previously, the threshold was 90%.
These changes brought backlash in the form of two lawsuits, one led by a “coalition of 21 attorneys generals and governors and another from a group of 11 local governments and non-profit organizations,” according to Politico. Democrats in the House of Representatives also pressed to rescind the funding changes.
On Monday, “about 90 minutes before a Monday afternoon court hearing regarding [the] two lawsuits,” according to Politico, HUD reversed course and rescinded the changes. It then withdrew the notice of funding opportunity.
This has left the Fredericksburg CoC scrambling to assist partner groups who receive federal funding through the organization. In an email released Tuesday morning, the CoC wrote:
At this time, we are requesting applicants submit a condensed application using the existing local competition system. This will function as a brief submission of intent but does not require applicants to complete the full local application.
The CoC is taking this approach in order to “understand the anticipated project pool and be ready to move quickly if HUD releases a revised NOFO in the near future.”
The Advance reached out to the Fredericksburg CoC late Tuesday afternoon for comment but the organization had responded as of press time. The Advance will have more on this developing story.
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