Courts Reject HUD Requests to Alter CoC and CoC Builds Grant Programs

April 7, 2026 — Last week, two separate court decisions were made regarding the Continuum of Care (CoC) and the CoC Builds programs respectively, rejecting HUD’s attempts to alter both programs and limit funding access.  

In the case regarding FY 2025 CoC funding, a federal appeals court denied HUD’s request to remove a court order denying HUD the authority to release a new fiscal year 2025 notice of funding opportunity (NOFO) released in December that was meant to replace an already existing two-year CoC NOFO. The new NOFO would shift funds away from permanent supportive housing and rapid re-housing. Currently, HUD is using its existing two-year NOFO for CoC projects expiring in quarters one and two of the calendar year. While this decision upholds the order that protects FY 2025 funding under the two-year NOFO, the case remains active regarding funding for quarters three and four.

Additionally, another decision was issued that protected funding access for the CoC Builds program, a smaller component of the CoC program with a focus on creating permanent supportive housing units. In the decision, the judge ruled that criteria established by HUD for CoC Builds grants are unlawful. The new funding criteria that were blocked would create a multitude of restrictions on service providers and communities from applying for the funds. The court also ordered that this funding must remain available for award.

NAHRO will continue to monitor court proceedings related to the CoC program.