HUD Withdraws Notice of Funding Opportunity for Continuum of Care Program

Shortly before a court hearing in Rhode Island regarding HUD’s recent Notice of Funding Opportunity for the Continuum of Care Program, the agency withdrew the controversial NOFO.  The hearing regarding two lawsuits brought by 21 attorneys general and governors, and several local governments and non-profits, went forward with the judge indicating she was not aware HUD had withdrawn the NOFO. 

The Judge expressed frustration with HUD’s "chaotic" and "haphazard" approach to administrative law.  HUD argued the lawsuits were no longer relevant due to the withdrawal of the NOFO, but the Judge rejected the idea that the case should be paused. Instead, the court demanded that HUD explain exactly how and why the decision to withdraw was made so late. She denied the government's implied request to slow down the process and set the following expedited schedule: 

• Monday, December 15: HUD must file a written response. They are required to address their opposition to the injunction, explain the nature of the rescission, and disclose who made the decision and when. 

•  Wednesday, December 17(Approximate): Plaintiffs will file their reply to HUD’s response. 

• Friday, December 19 at 10:00 AM ET: A follow-up hearing is scheduled to argue the Preliminary Injunction and address the impact of HUD’s sudden withdrawal of the notice. 

We will not predict how this might end, but considering the backlash against the changes to the COC program, both on a bipartisan basis on the Hill and within the housing and homelessness communities, it seems likely any adjudication on a similar approach by HUD would not be favorable.

Stay tuned for future updates, and congratulations to those who worked to educate lawmakers and stakeholders on the withdrawn NOFO.