HUD Continuum of Care (CoC) Grant: $4 Billion for Homelessness Programs (FY 2026)

The U.S. Department of Housing and Urban Development (HUD) has announced the FY 2026 Continuum of Care (CoC) Competition, making $4.01 billion available for homeless assistance programs across the country. This is the federal government's largest dedicated funding stream for addressing homelessness, with approximately 8,000 awards expected nationwide.

This year's competition also includes the Youth Homelessness Demonstration Program (YHDP), which funds coordinated community approaches to preventing and ending youth homelessness for those age 24 and younger.

What Is the Continuum of Care Program?

The CoC Program is HUD's primary competitive grant program for addressing homelessness. It promotes a community-wide commitment to ending homelessness by funding coordinated systems of housing and services. The program is designed to:

• Quickly rehouse individuals and families experiencing homelessness
• Minimize the trauma and dislocation caused by homelessness
• Support survivors of domestic violence, dating violence, sexual assault, and stalking
• Address youth homelessness for those age 24 and younger
• Promote access to mainstream programs and community resources
• Optimize self-sufficiency for people experiencing homelessness

How the CoC Process Works

Unlike most federal grants where individual organizations apply directly, the CoC Program operates through a collaborative application process. Here's how it works:

1. Local CoC Planning: Every region in the U.S. is covered by a designated Continuum of Care — a local planning body made up of nonprofits, government agencies, housing authorities, and other stakeholders that coordinate homelessness services.
2. Project Applications: Individual organizations (nonprofits, housing authorities, local governments) submit project applications to their local CoC.
3. Local Ranking: The CoC reviews, scores, and ranks all project applications through a local competition. The CoC prioritizes projects based on community needs and HUD priorities.
4. Consolidated Application: The CoC submits a single consolidated application to HUD that includes all ranked project applications along with a CoC Application describing the community's overall strategy.
5. HUD Review: HUD evaluates both the CoC-level application and individual project applications to make final funding decisions.

This means organizations interested in CoC funding need to connect with their local Continuum of Care well before the HUD deadline. Local CoCs typically set their own earlier deadlines for project applications.

Who Can Apply

Eligible project applicants under the CoC Program include:

• Nonprofit organizations
• State governments
• Local governments (cities, counties, townships)
• Instrumentalities of state and local governments
• Public housing agencies
• Indian Tribes and Tribally Designated Housing Entities (TDHEs)

Individuals, foreign entities, and sole proprietorships are not eligible. All applicants must work through their local CoC to be included in the consolidated application.

Eligible Project Types

The CoC Program funds several distinct project types, each serving a different role in the homelessness response system:

Permanent Supportive Housing (PSH)

Long-term housing with ongoing supportive services for individuals and families with disabilities experiencing chronic homelessness. PSH has no time limit and provides the stability needed for people with the highest needs.

Rapid Re-Housing (RRH)

Short- to medium-term rental assistance and services to help individuals and families quickly exit homelessness and return to permanent housing. RRH typically provides up to 24 months of assistance.

Joint Transitional Housing – Rapid Re-Housing (Joint TH-RRH)

A combined approach that provides temporary housing through the transitional housing component while participants search for permanent housing, followed by rapid re-housing assistance once they move to a permanent unit.

Supportive Services Only (SSO)

Funding for services such as outreach, case management, employment assistance, and other supportive services not tied to a specific housing unit.

Homeless Management Information System (HMIS)

Funding for the local data system used to collect and manage information about people experiencing homelessness. Each CoC designates one HMIS lead agency.

Coordinated Entry

Funding to support the standardized process for assessing and connecting people experiencing homelessness to appropriate housing and services.

Renewal vs. New Projects

An important distinction in the CoC Competition is between renewal and new projects:

• Renewal Projects: Previously funded CoC projects seeking continued funding. Renewals make up the majority of CoC awards and are generally funded at their previous year's Annual Renewal Amount (ARA). This provides stability for ongoing programs.
• New Projects: Projects that have not previously received CoC funding. New projects compete for a smaller pool of available funds, which may come from reallocation of existing projects, bonus funding, or the Domestic Violence (DV) bonus.

CoCs can strategically reallocate funds from lower-performing renewal projects to create new, higher-priority projects that better serve community needs.

Youth Homelessness Demonstration Program (YHDP)

The FY 2026 competition includes the Youth Homelessness Demonstration Program, which supports coordinated community approaches to preventing and ending youth homelessness. YHDP specifically targets:

• Youth ages 24 and younger experiencing homelessness
• Unaccompanied youth
• Pregnant or parenting youth

YHDP communities develop a Coordinated Community Plan that brings together youth-serving organizations, child welfare agencies, schools, workforce agencies, and other stakeholders to create a comprehensive response to youth homelessness.

Match Requirements

Most CoC project types require a 25% cash or in-kind match. Key match details:

• Leasing projects: No match required
• All other project costs: 25% match required
• Match can come from other federal, state, local, or private sources
• In-kind contributions such as donated labor, materials, or building space may count toward the match
• HUD may reduce the match requirement in certain circumstances

Key Timeline

1. May 29, 2026: Full NOFO expected to be published
2. June – August 2026: Local CoC competitions and project application period
3. August 26, 2026: Consolidated applications due to HUD via e-snaps (8:00 p.m. EDT)
4. December 2026: Award announcements expected
5. January 1, 2027: Project start date

Tips for a Strong Application

1. Connect with your local CoC now: Don't wait for the NOFO. Reach out to your local Continuum of Care to understand their priorities, timelines, and local application process. Find your CoC at HUD's CoC directory.
2. Align with Housing First principles: HUD strongly prioritizes Housing First approaches that remove barriers to entry and provide immediate access to permanent housing without preconditions like sobriety or program participation.
3. Demonstrate system performance: CoCs are evaluated on system-level outcomes including length of homelessness, returns to homelessness, exits to permanent housing, and income growth. Show how your project contributes to these metrics.
4. Prioritize chronic homelessness for PSH: HUD gives priority to PSH projects that serve chronically homeless individuals and families with the longest histories of homelessness and most severe service needs.
5. Leverage HMIS data: Strong data quality and participation in the local HMIS strengthens both your project application and the overall CoC application.
6. Consider reallocation strategically: If your CoC has underperforming projects, reallocation to higher-impact new projects can improve the overall CoC score and better serve the community.
7. Plan for match early: Secure your 25% match commitments before the application deadline. Document match sources clearly in your budget.

How to Apply

1. Identify your local Continuum of Care and contact the CoC lead agency
2. Attend local CoC meetings and learn about community priorities
3. Register in HUD's e-snaps system (the online application platform for CoC funding)
4. Prepare your project application according to local CoC requirements and timelines
5. Submit your project application to the local CoC for ranking by their internal deadline
6. The CoC lead agency submits the consolidated application to HUD by August 26, 2026

For questions, contact HUD's Office of Community Planning and Development at CoCNOFO@hud.gov or call 800-347-3735.

Related Resources

• HUD Public Housing Authority Capital Fund Grants
• FEMA BRIC Grant: $1 Billion for Hazard Mitigation
• Complete Guide to Federal Grants

How Avila Can Help

The CoC application process involves multiple layers of coordination, detailed project budgets, and narrative requirements that must align with both local CoC priorities and HUD criteria. Avila helps organizations quickly assess their eligibility, draft project applications, and organize supporting documentation for the CoC competition. Book a demo to see how Avila can streamline your CoC application.