Update on HUD CoC Funding Court Order

Dear partners,

We want to share a brief update on the recent federal court order affecting HUD’s Continuum of Care (CoC) funding and what it means for providers and communities in Connecticut. While this ruling is an important step toward stability, it does not resolve ongoing funding risks, and state emergency funding remains critically necessary.

Key points to know:

• A federal court has temporarily paused HUD from canceling the FY 2024–2025 CoC NOFO and from moving forward with a new FY 2025 NOFO.
• HUD has been ordered to return to the “status quo” under the FY 2024–2025 NOFO and to take steps to process eligible FY 2025 renewal projects.
• Importantly, the court did not require HUD to award, obligate, or disburse funds at this time.
• For complicated legal reasons, HUD could still delay making funding available, even while complying with the court order.
• HUD is also likely to appeal the decision, which could further extend uncertainty and delays.
• As a result, Permanent Housing (PH) grantees should still expect funding disruptions or delays.

Why state emergency funding is still necessary:

• Because HUD is not required to release funds now and may appeal, federal funding timelines remain uncertain.
• Providers may continue to experience cash-flow gaps that threaten housing stability for thousands of people.
• State emergency funding remains essential to prevent service interruptions, housing loss, and instability while the litigation continues.

Statement from CCEH

"The Connecticut Coalition to End Homelessness and CT Can End Homelessness campaign are grateful that a federal judge yesterday granted a preliminary injunction on the U.S. Department of Housing and Urban Development’s (HUD) attempts to cut Continuum of Care (CoC) Notice of Funding Opportunity (NOFO) grants meant to address housing insecurity and keep people in their homes. This is critically important for our state, protecting the integrity of the CoC program and preventing hundreds of Connecticut residents from losing their homes. It also protects proven permanent housing interventions within CoC funding and defends the ability of local communities to lead homelessness response strategies. This, combined with Governor Lamont’s decision two weeks ago to provide up to $6.8 million in as-needed funds to cover any gaps caused by HUD cuts, bolsters our efforts to keep our neighbors housed as the cold winter months set in. Working together, we can all—the Governor, lawmakers, cities and towns and advocates—continue to find solutions to protect our most vulnerable citizens."

– Sarah Fox, CEO, Connecticut Coalition to End Homelessness

We also want to acknowledge and sincerely thank all members of the CT CAN End Homelessness campaign, as well as Attorney General Tong and our Senators and Representatives, for their leadership and unwavering commitment to preserving and securing these critical homelessness response funds. Your advocacy has been instrumental in protecting proven housing solutions and the people who rely on them.

We will continue to monitor developments closely and share updates as more information becomes available.

Thank you for your continued partnership and advocacy.

Questions? Contact Katherine Whitney at kwhitney@cceh.org