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July Newsletter Highlights:
Understand how Sacramento competes with other communities for federal housing and homelessness funding, review the recap from the latest CoC Board meeting, learn how prevention services are expanding in Sacramento, access the latest research and data updates for homelessness response work, & more!
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Positioning Sacramento to be Competitive for FY26 Federal Funding
A Message from Tyffanie Wedding-O'con, Continuum Operations Director, Sacramento Steps Forward
The U.S. Department of Housing and Urban Development (HUD) released the FY2026 Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO) on June 1. While this year’s competition makes more than $3.5 billion available to approximately 400 Continuums of Care nationwide, the guidelines are significantly different from prior years. We are working diligently to ensure that Sacramento remains competitive to support community needs.
Locally, our CoC applications have successfully increased overall funding for Sacramento and for providers year over year. In 2021, $29.7 million was awarded and supported 31 projects; in 2025, $43.2 million was awarded for 38 projects. For this year's competition, however, HUD has cut the “guaranteed” funding pool from 90% down to 60%. This means that a much larger share of our award is dependent on how well we score against other communities. The competition also elevates new priorities, including self-sufficiency, transitional housing, treatment and recovery services, and past project performance.
The good news is that most of the competition points are within our reach for the Sacramento CoC. Of the roughly 200 points available in this year's scoring framework, our community has the opportunity to capture around 147 points. Our largest opportunity, with 107 achievable points out of 122 possible, is in the areas of coordination and engagement, including partnerships, policy, and alignment with HUD's priorities around behavioral health and workforce development. Another 14 points can be secured by updating tools and procedures.
Securing points for system performance metrics is more challenging. We estimate that our application could lose 38 points based on the thresholds that HUD has established, most of which are new and/or more ambitious than in previous funding rounds. For example:
- Sacramento’s unsheltered homelessness Point-in-Time Count increased from 2024 to 2026, rather than showing progress toward HUD’s benchmark of a 20% reduction between 2025 and 2026.
- Sacramento’s decrease in first-time homelessness rate is 7.8% in comparison to HUD’s target of an annual decrease that is 20% or greater.
- Sacramento’s shelter utilization rate is 83% in comparison to a HUD threshold of 85% or more.
Many of these performance criteria are new in this year’s NOFO competition and establish thresholds that will require years of sustained work. That said, they are in areas where we are making progress in service quality, housing stability, and data practices but are not yet within the guidelines of this year’s competition.
To maximize Sacramento’s competitiveness, we are focusing on coordination and partnership-building. HUD wants to see an "all in" approach to partnerships and policy. This means ensuring our CoC Board includes representation from additional sectors including recovery housing, workforce development, and specialty court programs such as mental health diversion.
It also means demonstrating investment in supportive services through a combination of CoC and non-CoC dollars, stronger service participation expectations, and deeper engagement with the full continuum of behavioral health and treatment options.
Finally, HUD wants to see direct coordination with law enforcement on encampment resolution, and dedicated partnerships to serve high-need subpopulations like justice-involved individuals and those with high medical acuity.
As all Continuum of Care’s across the country are working to navigate these new guidelines, legal action has been filed against HUD to address provisions that have previously been determined to be unlawful. Regardless, we are moving forward with partners and providers and the CoC Board to develop our best possible application for a continued level of federal funding that supports Sacramento and our neighbors in need.
In community and with appreciation,
Tyffanie Wedding-O'con
LEARN MORE ABOUT THE COC PROGRAM NOFO ➜
EXPLORE THE FY26 NOFO WEBPAGE ➜
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Continuum of Care Meetings
Get involved in our local Continuum of Care (CoC), which leads our regional planning, coordination, and funding to resolve homelessness. This month's meetings include:
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CoC Board: July Meeting Recap
During their July 8 meeting, the Sacramento Continuum of Care (CoC) Board reviewed progress on the FY2026 CoC Program and CoC Builds NOFO competitions, received updates on the upcoming Coordinated Access System (CAS) evaluation, and discussed governance of homelessness response in Sacramento. As part of this update, attendees learned that SB 802, which would require Sacramento to manage homelessness services via a Joint Powers Authority, has moved into committees. This raises legal concerns regarding Sacramento's eligibility for federal funds according to Dr. Trent Simmons, who spoke at the committee hearings for the bill.
The Board also examined the administrative capacity that supports Sacramento's Continuum of Care, reviewing HUD requirements, comparing local and peer community models, and exploring opportunities to strengthen governance and operational support as the homelessness response system continues to evolve.
After updates and presentations, the meeting opened for public comment. Stakeholders issued a powerful call to action to better support and resource smaller, grassroots non-profits doing vital ground-level work. Community members also emphasized that lived experience must remain at the absolute forefront of strategic decision-making and system design moving forward.
REVIEW MEETING MATERIALS ➜
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Join the Frontline Learning Collaborative
The best ideas usually come from the people doing the work every day. The Frontline Learning Collaborative (FLC) brings frontline providers together each month to share resources, hear about new programs and system updates, learn practical strategies, and connect with peers across Sacramento's homelessness response system. Whether you're looking for new tools, fresh perspectives, or simply a chance to learn alongside colleagues, we'd love to have you join us! The next meeting will be held July 23, 10:00 a.m. at the Rose Family Creative Center and will include a presentation and discussion on the unique work from Help Me Grow, a part of the Sacramento County Office of Education.
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CoC Program Competition: Review and Rank Panel Confirmed
The selection process for the FY2026 Sacramento Continuum of Care HUD Notice of Funding Opportunity (NOFO) Review and Rank Panel has been completed! A strong pool of applicants committed to guiding local funding recommendations resulted in a panel representing local government, behavioral health, youth leadership, CoC leadership, and partners with lived expertise. The panelists for this year's competition are:
- Sarah Bontrager
- LaShawnda Barker
- Mercedes Lott
- Jazlyn Mozley
- William Pavão
- Darrell Rogers
- Jessica Simanello
- Kristy Smith.
If you are aware of any potential conflict of interest regarding a panelist, email us at: cocnofo@sacstepsforward.org.
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FY2026 CoC Builds Competition Open
The FY2026 Continuum of Care (CoC) Builds competition is now open! This funding supports the development of new Permanent Supportive Housing through the acquisition, construction, or rehabilitation of housing for people experiencing homelessness. As the Sacramento CoC Collaborative Applicant, Sacramento Steps Forward will facilitate the local competition to select one project for submission to the U.S. Department of Housing and Urban Development. Local applications are due July 15 at 5:00 p.m.
LEARN MORE AND APPLY BY JULY 15 ➜
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Expanding Prevention Services
The Sacramento Continuum of Care's Problem-Solving Access Point (PSAP) Program is expanding, bringing coordinated homelessness prevention services to more households across Sacramento County. Following the addition of new provider partners Community HealthWorks (CoHeWo) and United Way California Capital Region, the program is reaching more people with assessment, resource navigation, and other supports designed to help households maintain stable housing. Read the full article below to learn how this expansion is strengthening Sacramento's Prevention System and increasing access to early intervention services.
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Continued HHAP Funding
Approved in State Budget
On June 29, California's Governor approved the Budget Act of 2026 which allocates $900 million for the state’s Homeless Housing, Assistance, and Prevention (HHAP) program. This year’s HHAP allocation is a significant increase from what was being considered earlier and has increased from the $760 million distributed last year.
Sacramento has received $205 million through the first six rounds of HHAP for programs managed by the County, City of Sacramento, and the Sacramento Continuum of Care (through Sacramento Steps Forward as the CoC’s lead agency).
Funds have expanded services identified through collaborative planning efforts and detailed in the Regionally Coordinated Homelessness Action Plan (RCHAP). Each year, the CoC has sponsored community conversations to inform planning and Sacramento’s application.
FY27 HHAP funding does not require a formal application. Instead, jurisdictions must meet eligibility requirements for pro-housing designation, local matching funds, and timely fund disbursement. Sacramento already satisfies each of these requirements.
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The Coordinated Access System:
May Data
In May, we saw progress across the Coordinated Access System. Prevention outcomes increased from 11 households in April to 24 in May, while Problem-Solving services helped 44 households find or maintain housing, compared with 12 in April.
The system connected 5,702 households to resources, up from 5,596 in April, and exits to permanent housing increased from 109 to 119 households. Overall, May's data points to increased system engagement and continued progress in helping households maintain and secure stable housing.
Want to learn more about the CAS? Sign up for our CAS newsletter!
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New Safe Camping Site Opens
The City of Sacramento has opened a new Safe Camping site in the River District, adding temporary shelter and services for approximately 100 people experiencing homelessness. Participants will have access to case management, behavioral health services, housing navigation, and other supports, while those with pets can remain together through on-site accommodations and animal support services. The site expands Sacramento's shelter and interim housing options while strengthening connections to services for people living unsheltered.
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State of Homelessness Dashboard: Reporting Timeline Update
The State of Homelessness Dashboard now publishes data approximately 3.5 months after the reporting period, giving providers time to complete data entry and improve data quality before each monthly refresh. The dashboard continues to update on the 15th of each month. For example, March data will be available beginning July 15. This updated reporting timeline helps ensure the dashboard provides a more complete and accurate picture of homelessness trends, supporting reliable system performance measurement and informed decision-making.
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New Document Search Now Available
Looking for a document from Sacramento Steps Forward or the Continuum of Care but not sure exactly what it's called? Our new Document Search makes it easier to browse hundreds of public resources, including CoC Board materials, HMIS resources, Coordinated Access System documents, training materials, and more. While the website search bar works well when you have a specific keyword or are looking for a webpage, Document Search lets you browse documents by category, making it easier to discover and find the resources you need, even if you're not sure where to start.
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New Research on Veteran Housing
The latest edition of Cityscape: A Journal of Policy Development and Research examines housing for veterans through new research on homelessness prevention, housing affordability, supportive services, and coordinated care. Highlights include studies on the Supportive Services for Veteran Families (SSVF) program, the role of VA benefits in reducing housing cost burdens, and housing outcomes for veterans with disabilities, along with recommendations to strengthen cross-sector collaboration and service delivery. Explore the latest issue for research and practical insights that can inform homelessness response efforts.
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July Wellness Tip: Leave Yourself a Starting Point
Some days end with a long list of unfinished work. Before you log off, take 30 seconds to write down the very first task you'll tackle tomorrow.
Research suggests that making a simple plan for unfinished work can help reduce lingering thoughts after work and make it easier to get started the next day. It's a small habit that can create a clearer stopping point.
Do you have a completion practice when you end your day? We’d love to hear about it! Use the button below to share what works for you.
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Share Your Work: Be Featured as a Provider
Help us highlight the great work happening across Sacramento! We’re inviting providers to share their progress, challenges, and opportunities for collaboration to be featured in our upcoming newsletters and other communications. This is a chance to showcase your impact, inspire new partnerships, and help shape the conversation around homelessness response. Fill out the form below to share your story and connect with the broader community.
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