The nation is facing a shortage of more than 4 million homes as millions of families pay more than half their income on housing amid rising homelessness
In this affordability crisis, keeping Americans safely housed matters. Congress must act to protect communities from increased homelessness and stark economic harms
Washington, D.C., Nov. 24, 2025 – Community Solutions today expressed deep concern about the U.S. Department of Housing and Urban Development’s (HUD) recent Notice of Funding Opportunity (NOFO), which threatens rental support for more than 170,000 people who have overcome homelessness. In addition to increasing homelessness, the economic impacts will be felt in every community across the country and fall on local governments, small landlords, hospitals, and downtown businesses in particular.
Community Solutions urged Congress to renew all existing Continuum of Care contracts for twelve months, an option authorized in FY24, to allow a thorough review of these policy changes and provide time for communities to mitigate harms.
“HUD’s NOFO, as currently framed, will compound the nation’s housing challenges at a time of historic housing shortages and rising housing costs,” said Rosanne Haggerty, President of Community Solutions. “We support thoughtful reform that achieves effective outcomes: keeps people in their homes, prevents increased homelessness, and is realistic in light of the high costs of housing that strain individuals, families, and whole communities. Congress should direct HUD to renew all 2026 CoC grants for 12 months because keeping Americans safely housed matters more than bureaucratic timelines.”
Why Community Solutions is concerned
- Immediate risk to housing stability: More than 170,000 people — primarily people with disabilities, seniors, and Veterans who have overcome homelessness- stand to lose rental assistance in 2026. The financial impact will fall heavily on their landlords, and mass returns to homelessness will impact local government, business districts, hospitals, and public spaces.
- Loss of affordable housing during cost-of-living crisis: More than 170,000 homes will become unaffordable to people living on fixed incomes who have overcome homelessness. Nearly $2 billion in housing support could be withdrawn from local economies, directly impacting private landlords, often small, “mom and pop” business owners, who rely on these consistent rental payments to pay mortgages and property taxes.
- Community impacts: More than 170,000 people may return to homelessness as their housing assistance is withdrawn, impacting local government, hospitals, emergency services, downtown business districts, and public spaces.
What Community Solutions is calling for
- Immediate Congressional action to preserve homes and prevent negative economic and community impacts: Congress should direct HUD to renew all CoC grants expiring in calendar year 2026 for a full 12 months to preserve the homes of tens of thousands of Americans and provide time to mitigate harmful policies.
- Local flexibility and pragmatic tools. Federal policy should give communities the freedom to preserve the homes needed for those struggling to keep up with rising housing costs and to prevent and reduce homelessness.
About Community Solutions
Community Solutions is a nonprofit working to make homelessness rare and brief. It leads Built for Zero, a network of more than 160 U.S. communities using a field-tested, outcomes-focused approach to reducing and preventing homelessness. Learn more at www.community.solutions or follow us at @CmtySolutions.
