The U.S. Department of Housing and Urban Development (HUD) has announced a historic allocation of $3.5 billion in competitive funding to combat the nation’s growing homelessness crisis.
This landmark investment, unveiled on July 31 by HUD Acting Secretary Adrianne Todman, aims to bolster homeless services organizations by providing critical supportive services and housing programs for those in dire need.
“This year’s funding opportunity makes available the largest amount of funding in history under the Continuum of Care program and reflects the Biden-Harris administration’s continued commitment to tackle the nation’s homelessness crisis with the urgency it requires,” Todman stated. “Nobody should have to live in their car or on the streets. These funds will provide shelter to Americans when they need our help the most.”
The funds will be distributed through HUD’s Continuum of Care Program (CoC), the primary source of federal grant funding for homeless services. The program, which supports nearly 7,000 homeless services projects annually, receives over 400 applications from housing entities, including nonprofit providers, local governments, states, and Indian tribes.
In an effort to streamline the application process and alleviate administrative burdens, HUD is also issuing a two-year Notice of Funding Opportunity (NOFO). This innovative move aims to reduce the time and effort required for federal grant applications, allowing homeless assistance providers to focus more on their core mission of helping those experiencing homelessness.
Additionally, HUD is implementing a first-of-its-kind cost of living adjustment for the CoC, providing extra support and pay to homeless assistance providers, which Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden emphasized is often overlooked.
“Our approach this year incorporates the feedback we received from providers to increase support for staff and reduce administrative burden by moving to a two-year application cycle so that staff can focus less time on paperwork needed to submit federal grant applications and more time on their core duties helping people experiencing homelessness,” McFadden said.
Among the many recipients of these funds is Rockville Housing Enterprises in Maryland, which was awarded $154,000 through HUD’s Foster Youth to Independence (FYI) Initiative.
This initiative aims to prevent youth in the child welfare system from experiencing homelessness, underscoring HUD’s commitment to addressing homelessness at multiple levels.
The announcement of this substantial funding complements existing HUD initiatives, such as the Youth Homelessness System Improvement Grants and the 2023 Youth Homelessness Demonstration Program, all of which are supported by the Biden-Harris administration.
These efforts collectively signify a robust, multi-faceted approach to tackling homelessness, with a particular focus on supporting vulnerable populations and ensuring long-term stability.
As the nation grapples with the complexities of the homeless crisis, HUD’s historic funding allocation represents a significant step forward. By providing critical resources, streamlining processes, and supporting the dedicated individuals working on the front lines, the U.S. is poised to make meaningful progress in ensuring that everyone has a safe and stable place to call home.
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