Task force members warn new HUD NOFA will cut local PSH renewals and add service requirements

A Continuum of Care representative briefed the task force that a newly released notice of funding availability (NOFA) reduced local Permanent Supportive Housing renewal funding from about $2,287,000 in the prior round to $1,000,000 for the current NOFA. The speaker warned that reduction could jeopardize renewals for multiple PSH projects serving chronically homeless people and could result in some individuals losing housing supports.

The representative added the NOFA introduces new program requirements that include documented participation in workforce development or 40 hours of wraparound services for PSH participants. She said those requirements would be difficult to document and may conflict with harm‑reduction and housing‑first approaches historically used by many providers.

Local members said they were preparing a rapid response: providers intend to submit for the reduced funding amount and the task force will coordinate webinars and provider technical assistance on rating and ranking and new requirements. Staff noted the NOFA deadline is Jan. 14 and that the ranking process may occur in mid‑December.

The task force did not take formal action on the NOFA but scheduled follow‑up webinars and meetings with providers to explore application strategies and contingency support.