Court Requires HUD to Vacate Issuance of FY 26 CoC NOFO
August 11, 2026 — On August 7, a federal court ordered that HUD’s FY 2026 Notice of Funding Opportunity (NOFO) for the Continuum of Care (CoC) Program will be set aside in its entirety as violative of the Administrative Procedure Act (APA).
The court determined that HUD violated the law by not providing a public notice-and-comment period when making changes to the NOFO in deemphasizing its Housing First approach through the use of its $1.3 billion set aside for transitional housing. This now means that HUD will have to start the NOFO process from the beginning, issuing another NOFO for applicants to apply.
It is unclear what or if any changes will be made to the next NOFO that HUD issues, however this most likely will result in delays to the NOFO process.
In the court decision, judgement was also made denying a request for a permanent injunction against HUD’s future implementation of the conditions contained within the 2026 NOFO. The court acknowledged that HUD may attempt to issue another NOFO that contains these conditions after undergoing the requisite notice-and-comment process, however the court noted that speculation does not permit drastic remedy by the court.
NAHRO will continue to monitor the CoC NOFO process and any related court proceedings.