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Rural Setaside Included in Major New HUD Homeless Funding Initiative

On June 22 HUD announced a $365 million Initiative for Unsheltered and Rural Homelessness that will be distributed through Continuums of Care (CoC) and public housing authorities (PHAs) by means of two Notices of Funding Opportunity. The application deadline for CoCs is October 20. HUD is using recaptured CoC and Housing Choice Voucher funding from prior fiscal years to support the initiative.

The initiative includes $322 million in CoC program grants to be distributed by HUD’s Community Planning and Development division:

  • $267.5 million to fund homeless outreach, permanent housing, supportive services, and other costs as part of a comprehensive community approach to solve unsheltered homelessness in 20-40 communities with high incidences of unsheltered homelessness; and
  • $54.5 million targeted to rural communities, prioritizing those with high need but a history of being unable to access CoC grants. HUD is utilizing congressionally granted authority to expand the eligible uses for these funds beyond normal restrictions to enable rural communities to apply for grants to support capacity-building, transportation, and other needs more acutely felt in rural areas.

The division of Public and Indian Housing will distribute $43 million — approximately 4,000 new incremental vouchers — which will be allocated to PHAs with a priority for those that are partners in comprehensive community approaches to solve homelessness.