HUD Bribes Towns to End Homelessness: Extra Funds!
Published Date: 9/11/2026
Notice
Summary
HUD is planning to offer extra rewards to communities that use proven methods to reduce or prevent homelessness through the Continuum of Care program. They want your thoughts on these ideas before making them official, with comments due by October 13, 2026. This means communities could get more funding if they adopt these smart strategies soon!
Analyzed Economic Effects
6 provisions identified: 5 benefits, 0 costs, 1 mixed.
Incentives for Supportive Services
HUD proposes to incent supportive services for homeless individuals and families that concentrate on improving employment income, meeting healthcare needs, treating substance use disorder and mental illness, and addressing barriers to self-sufficiency through services delivered in housing, shelters, standalone facilities, or via street outreach. HUD has labeled these supportive services as proven effective and is seeking comments before potentially incorporating them into future CoC funding priorities.
Incentives for Transitional Housing
HUD proposes to offer competitive incentives in the Continuum of Care (CoC) program for Transitional Housing that includes supportive services focused on improving employment income and meeting behavioral healthcare needs. HUD identifies this activity as proven effective particularly for homeless youth, families with children, and survivors of domestic violence; HUD will consider adopting this determination in future CoC funding opportunities after the comment period ending October 13, 2026.
Sober and Recovery-Oriented Housing Incentives
HUD proposes to incent housing that supports treatment and recovery for people with substance use disorders by recognizing drug-free housing, sober housing, and housing with on-site behavioral healthcare and recovery support services as proven-effective approaches. HUD will consider incorporating this determination into future CoC funding opportunities after the public comment period ending October 13, 2026.
Future CoC Funding Incentives and Set-Asides
HUD states that the bonuses and incentives contemplated under section 428(d) may include set-asides, bonus awards, scoring criteria, certifications, and other competitive advantages in CoC funding competitions to promote the proven-effective activities described in this notice. HUD will review public comments and then may adopt these determinations as part of future CoC Notices of Funding Opportunity.
Supportive Service Participation Agreements
HUD proposes to incent use of supportive service participation agreements that engage program participants in individualized services tailored to their needs and goals as a proven-effective tool to reduce homelessness. HUD will review comments and may adopt this as a factor in future CoC competitions.
Encouraging Law Enforcement Coordination
HUD proposes to incent coordination with law enforcement and first responders as crucial partners in addressing homelessness, including engagement to connect individuals in crisis to services. HUD is seeking public comment and may use this determination in future CoC funding decisions after October 13, 2026.
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