The Cost of Going Backward: HUD's New Approach to Homelessness

HUD recently released its 2026 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO), signaling a major shift in federal homelessness policy. In this special episode of Defining Affordable, Jaime and Robin examine the proposed changes, the evidence behind them, and what they could mean for communities across the country.

HUD argues that Housing First has failed and proposes a renewed emphasis on transitional housing, recovery-focused programs, and new measures of self-sufficiency. But do the data support that conclusion?

Drawing on decades of research, local experience, and examples from communities across the nation, Jaime breaks down the claims made in the NOFO and explores why many housing professionals are concerned that these changes could reverse hard-won progress in reducing homelessness and improving housing stability.

The conversation examines the real costs of homelessness, the effectiveness of Housing First and Permanent Supportive Housing, and the potential consequences of moving away from evidence-based approaches that have helped communities achieve measurable results.

Resources referenced during the episode, including opportunities for advocacy and further reading, are included below.

Sources & Further ReadingHUD's 2026 Continuum of Care NOFOHUD News Release — HUD Announces 2026 Continuum of Care Notice of Funding Opportunity (NOFO)https://www.hud.gov/news/hud-no-26-038HUD — FY 2026 Continuum of Care Competition Stakeholder Memohttps://www.hud.gov/sites/default/files/OCHCO/documents/Stakeholder-Memo.pdfNational Alliance to End Homelessness — FY 2026 Continuum of Care Competition NOFO Analysishttps://endhomelessness.org/wp-content/uploads/2026/06/FY2026-Continuum-of-Care-Competition-NOFO-Analysis.pdfNational Coalition for the Homeless — HUD Policy Updates and Analysishttps://nationalhomeless.org/tag/hud/Shelterforce — Judge Blocks HUD Overhaul of Federal Funding for Homelessness Serviceshttps://shelterforce.org/2026/01/23/judge-blocks-hud-overhaul-federal-funding-for-homelessness-services/Public Rights Project — National Alliance to End Homelessness v. HUD: Fact Sheethttps://www.publicrightsproject.org/naeh-v-hud-fact-sheet/Housing First & Permanent Supportive HousingUrban Institute — Housing First Is Still the Best Approach to Ending Homelessnesshttps://housingmatters.urban.org/articles-features/housing-first-still-best-approach-ending-homelessnessNational Alliance to End Homelessness — Cost Savings from Permanent Supportive Housinght