Senators Murray and Gillibrand Call for Investigation into HUD's Handling of Homelessness Prevention Funding

Strategic Insights -

U.S. Senator Patty Murray (D-WA) and Senator Kirsten Gillibrand (D-NY) have requested an investigation into the Department of Housing and Urban Development's (HUD) handling of the Continuum of Care (CoC) Builds program, which provides funding for homelessness prevention. The senators have expressed concerns that HUD's actions have put critical resources at risk, forced grantees to apply for funding multiple times, and implemented policy changes that are inefficient and wasteful.

Key Takeaways:

  • HUD has notified Congress that it will issue a third notice of funding opportunity (NOFO) for the CoC Builds program, which will be the third time grantees have had to apply for funding in a year.
  • The funding at issue will expire at the end of the month on September 30, 2025, and HUD has given grantees only 7 days to apply.
  • HUD has imposed a new rating system that will limit eligibility and exclude most parts of the country with the highest levels of homelessness.
  • The latest funding notice supports medical respite, which may violate the Purpose Statute and limit thoughtful project designs.
  • HUD has changed its funds control policies to redefine the point of obligation from signing a grant agreement to the point at which HUD sends the grant award letter.
  • Senators Murray and Gillibrand have asked the Office of Inspector General to investigate HUD's actions and address whether HUD's actions knowingly violated or intentionally circumvented Federal statutes.

Statistics:

  • $16.7 million in homelessness prevention funding is at risk for Snohomish County.
  • $75 million was provided in the Consolidated Appropriations Act, 2023 for one-time competitive grants for new permanent supportive housing.
  • 7 days have been given for grantees to apply for the latest NOFO.
  • August 5, 2025, was the date on which HUD notified Congress of their intent to award funds to 14 projects in 12 states.
  • 25 days remain until the funding expires at the end of the month on September 30, 2025.
  • 100% of the funds provided in FY2023 and FY2024 are still unspent.
  • 40 days were given to submit brand new applications for the second CoC Builds NOFO.

Sources:

  • The Honorable Patty Murray, U.S. Senator (D-WA)
  • The Honorable Kirsten Gillibrand, U.S. Senator (D-NY)
  • Consolidated Appropriations Act, 2023 (Public Law 117-328)
  • McKinney-Vento Homeless Assistance Act, as amended
  • HUD Reform Act and its core intent of preventing HUD funds from being "abused for political purposes or personal gain at the expense of those in need"
  • Email from HUD to Congress on August 5, 2025, regarding intent to award funds
  • GAO Red Book on appropriations law
  • Contify.com