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Federal changes leave Minnesota housing and homelessness programs scrambling

On Nov. 14, the Department of Housing and Urban Development announced changes to its Notice of Funding Opportunity for Continuums of Care, imposing a 30% cap on permanent housing and new treatment requirements as Minnesota's housing network scrambles to adjust.
Housing-First advocates say one NOFO stipulation requires treatment preconditions conflicting with the housing first strategy, while CoC leaders note HUD championed housing-first and harm reduction for years.
In the northeast region, 67% of CoC funding goes to permanent housing but only 30% can be submitted for 2026; west-central CoC projects served 190 individuals with 77% funding for permanent housing.
HUD announced changes on Nov. 14, but CoCs say they must still apply in the coming year, risking estimated losses of 3,930 people and $26,595,473, the National Alliance to End Homelessness estimates.
Local coordinators warn small towns and rural counties lack resources to backfill lost CoC funds, risking vulnerable populations returning to homelessness, Sen. Lindsey Port, DFL-Burnsville cautioned.

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Federal changes leave Minnesota housing and homelessness programs scrambling

ST. PAUL — Minnesota’s housing network is scrambling to adjust to the federal government’s new grant stipulations in housing and homeless programs. The Department of Housing and Urban Development (HUD) announced changes Nov. 14 in its annual Notice of Funding Opportunity for Continuums of Care (CoC). Among them were a cap on permanent housing funding at 30%, requiring treatment in programs, and a ban on any program that recognises transgender in…

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