HUD seeks comment by Oct. 13 on CoC incentives for transitional housing, services

HUD is seeking public comment on activities it proposes to incent through the Continuum of Care (CoC) program. The notice, published Sept. 11, 2026, says HUD considers the activities proven effective at reducing or preventing homelessness. Comments are due Oct. 13, 2026. Submissions must refer to the docket number and title.

The five activities are transitional housing with supportive services; supportive services concentrating on employment income, healthcare, substance use disorder and mental illness treatment, and other barriers; supportive service participation agreements; drug-free or sober housing with on-site behavioral healthcare and recovery support; and coordination with law enforcement and first responders.

HUD states the determination does not create new CoC program components or eligible activities or expand its statutory authority. It says transitional housing, Supportive Services Only projects and supportive services are existing eligible costs and components under 24 CFR 578.53 and 578.37(a)(2) and (3). Participation agreements and sober housing are existing models under 24 CFR 578.75(h) and 578.93(b)(5).

After the comment period, HUD will either publish revisions to the determination or, if it finds no revisions are needed, adopt the determinations as part of future CoC funding opportunities. The notice does not set a date for those funding opportunities.

HUD says it is publishing the notice partly in response to Aug. 7, 2026, orders from the U.S. District Court for the District of Rhode Island. The court held HUD could not issue its FY 2026 CoC NOFO without notice and comment to set a set-aside for transitional housing and "supportive services only" projects. HUD says it does not concede the orders' lawfulness and stands by its ability to implement its 2026 NOFO.

The notice cites HUD data and research supporting the determination. It reports that 6 percent of the national CoC award went to Transitional Housing or Supportive Services Only projects in 2024, compared with 36 percent in 2009. It also reports that HUD hosted 58 homelessness forums in 32 states over the last year.