Continuum_of_Care_Competition_and_Noncompetitive_YHDP.pdf

U.S. Department of Housing and Urban Development

Community Planning and Development

Notice of Funding Opportunity (NOFO) for Fiscal Year (FY) 2022 Continuum of Care Competition and Noncompetitive Award of Youth Homeless Demonstration Program Renewal and Replacement Grants

FR-6600-N-25

09/30/2022

Table of Contents Summary

OVERVIEW

I. Funding Opportunity Description and Program Overview

II. HUD's Homeless Policy Priorities and Program Highlights

III. Continuum of Care Program Requirements

IV. Award Information

V. Eligibility Information

VI. APPLICATION AND SUBMISSION INFORMATION

VII. Application Review Information

VIII. Project Review and Selection Process

IX. Award Administration Information

X. Appeals

XI. Agency Contacts

XII. Other Information

Program Office:

Community Planning and Development

Funding Opportunity Title:

Notice of Funding Opportunity (NOFO) for Fiscal Year (FY) 2022 Continuum of Care Competition and Noncompetitive Award of Youth Homeless Demonstration Program Renewal and Replacement Grants

Funding Opportunity Number:

FR-6600-N-25

Assistance Listing Number:

14.267

Application Due Date:

September 30, 2022

Summary

The U.S. Department of Housing and Urban Development (HUD) Strategic Plan sets the direction and focus of our programs and staff to create strong, sustainable, inclusive communities and quality, affordable homes for all.

HUD's Strategic Goals

HUD’s FY 2022-2026 Strategic Plan lays out this administration’s strategy for ensuring everyone has an affordable, healthy place to live. Over the course of the next four years HUD will pursue two overarching priorities focused on increasing equity and improving customer experience across all HUD programs. Five strategic goals undergird the Plan as follows:

Strategic Goal 1: Support Underserved Communities

Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing

Strategic Goal 3: Promote Homeownership

Strategic Goal 4: Advance Sustainable Communities

Strategic Goal 5: Strengthen HUD’s Internal Capacity

The five goals of the FY 2022-2026 Strategic Plan present the core vision of what we hope to accomplish, the strategies to accomplish those objectives, and the indicators of success.

OVERVIEW

The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. Prospective applicants should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

During the selection process HUD is prohibited from disclosing 1) information regarding any applicant’s relative standing, 2) the amount of assistance requested by an applicant, and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants that have applied for assistance.

For Further Information regarding this NOFO - Please direct specific program requirements of this NOFO to the office contact identified in Section XI.

Paperwork Reduction Act Statement. The information collection requirements in this notice have been approved by OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520). In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless the collection displays a valid OMB control number. Each NOFO will identify its applicable OMB control number unless its collection of information is excluded from these requirements under 5 CFR part 1320.

OMB Approval Number(s):

2506-0112

I. Funding Opportunity Description and Program Overview

A. Program Description. The Continuum of Care (CoC) Program (24 CFR part 578) is designed to promote a community-wide commitment to the goal of ending homelessness; to provide funding for efforts by nonprofit providers, states, Indian Tribes or tribally designated housing entities (as defined in section 4 of the Native American Housing Assistance and Self- Determination Act of 1996 (25 U.S.C. 4103) (TDHEs)), and local governments to quickly rehouse homeless individuals, families, persons fleeing domestic violence, dating violence, sexual assault, and stalking, and youth while minimizing the trauma and dislocation caused by homelessness; to promote access to and effective utilization of mainstream programs by homeless individuals and families, and to optimize self-sufficiency among those experiencing homelessness.

https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1

The goal of the Youth Homelessness Demonstration Program (YHDP) is to support the development and implementation of a coordinated community approach to preventing and ending youth homelessness and sharing that experience with and mobilizing communities around the country toward the same end. The population to be served by the demonstration program is youth experiencing homelessness, including unaccompanied and pregnant or parenting youth.

B. Authority. The CoC Program is authorized by subtitle C of title IV of the McKinney-Vento Homeless Assistance Act, (42 U.S.C. 11381–11389) (the Act), and the CoC Program rule found in 24 CFR part 578 (the Rule). The FY 2022 funds were authorized by the Consolidated Appropriations Act, 2022 (Public Law 117-103, approved March 15, 2022). The renewal and replacement of YHDP grants is authorized by the Consolidated Appropriations Act, 2022.

C. Deadline. The deadline for submitting applications to HUD for the FY 2022 CoC Program Competition is 8:00 PM EDT on September 30, 2022. Applicants must complete and submit their applications in e-snaps at https://esnaps.hud.gov/. See Sections VI.F and G of this NOFO for application submission and timely receipt requirements.

D. Available Funds. Approximately $2,794,000,000 is available in this FY 2022 CoC Program NOFO, including approximately $80,000,000, available for non-competitive YHDP renewal and replacement expiring grants, and at least $52,000,000 available for Domestic Violence, Dating Violence, Sexual Assault, and Stalking Bonus (DV Bonus) projects, described in Section II.B.5 of this NOFO. HUD may add to the total amount with available funds that have been carried over or recaptured from previous fiscal years and authorized by prior Acts. All requirements in the FY 2022 application process, including requirements for the entire CoC Consolidated Application and the total amount of funds available, are included in this NOFO.

HUD will continue to require Collaborative Applicants to rank all projects, except YHDP renewal, YHDP replacement, CoC Planning, and Unified Funding Agency (UFA) Costs in two tiers as described in Sections II.B.11.a and b of this NOFO.

E. Summary of the Application Process. The FY 2022 CoC Program Competition is administered under the FY 2022 CoC Program Competition NOFO and Rule. The FY 2022 YHDP non-competitive renewal and replacement of expiring YHDP grants is administered under the Consolidated Appropriations Act, 2022 which permits expiring YHDP projects to be renewed or replaced non-competitively through the CoC Program. See Section II.B.7 of this NOFO for the requirements that apply to YHDP renewal and YHDP replacement projects.

Applicants should review and follow the steps as outlined below to ensure applications are complete and submitted timely. Documents referenced in this section can be found on the CoC Program page of HUD's website: https://www.hud.gov/program_offices/comm_planning/coc.

1. CoC Registration.

Collaborative Applicants were required to complete the FY 2022 CoC Program Registration in accordance with Notice CPD-22-02: Continuum of Care Program Registration. If a Collaborative Applicant did not complete the FY 2022 CoC Program Registration, HUD moved the previous year's registration forward with no changes.

2. CoC Project Review and Ranking.

Project applications submitted to the CoC for inclusion on the FY 2022 CoC Priority Listing as part of the CoC Consolidated Application must be reviewed and either accepted and ranked, approved, or rejected by the CoC. All project applications approved by the CoC must be listed on https://esnaps.hud.gov/ https://www.hud.gov/program_offices/comm_planning/coc https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-02cpdn.pdf the CoC Priority Listing in rank order, except project applications for YHDP renewal or replacement, CoC planning and UFA Costs projects which are not ranked. Higher ranked projects will be assigned to Tier 1 and lower ranked projects will be assigned to Tier 2 as described in Sections II.B.11.a and b of this NOFO. The purpose of this two-tiered approach is for CoCs to notify HUD which projects are prioritized for funding based on local needs and gaps.

3. CoC Consolidated Application Submission. Collaborative Applicants, including any Collaborative Applicant designated by HUD as a UFA, are responsible for submitting the CoC Consolidated Application in e-snaps on behalf of the CoC. The CoC Consolidated Application is made up of the following three parts:

a. FY 2022 CoC Application. The Collaborative Applicant must provide information about the CoC planning body, governance structure, overall performance, and the strategic planning process. This part of the application is scored and will determine the order in which CoCs are funded.

b. FY 2022 Project Application. Project applications must be completed by project applicants for all renewal, new, CoC planning, UFA Costs, and YHDP renewal or YHDP replacement projects including the population(s) and subpopulation(s) they will serve, the type of housing and services that will be provided, and the budget activities that are being requested.

Collaborative Applicants applying for CoC planning and UFA Costs (if designated as a UFA by HUD) must provide a description of the activities that will be carried out with CoC Program grant funds. For more information on project applications, see Section V of this NOFO. Additionally, all project applicants must ensure their organization has a Code of Conduct that complies with the requirements of 2 CFR part 200 and is included on HUD’s website. If the organization's Code of Conduct does not appear on HUD's website, the project applicant must attach its Code of Conduct that includes all required information to its Project Applicant Profile in e-snaps.

c. FY 2022 CoC Priority Listing. The CoC Priority Listing includes:

(1) The reallocation forms for CoCs to indicate which eligible renewal projects, if any, will be reduced or eliminated through the reallocation process.

(2) Six separate project listing forms:

(a) two project listings require that all CoC project applications, New (reallocated, CoC Bonus, and DV Bonus) and Renewal, are ranked with unique numbers, in order of priority and identify any project applications rejected by the CoC; and

(b) four project listings for non-ranked project applications, YHDP renewal, YHDP replacement, CoC planning, and UFA Costs (if applicable); and, Collaborative Applicants must ensure only one project application for CoC planning, and if the CoC's Collaborative Applicant is designated as a UFA by HUD, one UFA Costs project application is submitted by the CoC.

(3) Form HUD-2991, Certification of Consistency with the Consolidated Plan, which must be signed by the authorizing jurisdiction(s) and dated between June 30, 2022 and September 30, 2022 Additionally, applicants that propose to locate a project on a reservation or trust land must include a tribal resolution from the tribe authorizing the https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/conductgrants https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/conductgrants applicant to do so or a letter from an official or principal of the Indian Tribe or TDHE who is authorized to act on behalf of the Indian Tribe or TDHE indicating approval.

Tribes do not need to include a tribal resolution or a letter from an official of the Indian Tribe or TDHE who is authorized to act on behalf of the Indian Tribe or TDHE to site a project on their own reservation or trust land. A tribal resolution is the formal manner in which the tribal government expresses its legislative will in accordance with its organic documents. In the absence of such organic documents, a written expression adopted pursuant to tribal practices will be acceptable.

Collaborative Applicants will also be required to certify there is a demonstrated need for all ranked permanent housing (PH) renewal projects and these projects comply with program requirements and appropriate standards of housing quality and habitability on the Renewal Project Listing. For more information on the CoC Priority Listing, see Section VI.F.3 of this

NOFO.

F. Eligible Applicants.

1. Collaborative Applicants. Only those CoCs with a valid registration for FY 2022 will have access to the FY 2022 CoC Consolidated Application, which includes the CoC Application, CoC Priority Listing, and the project application(s). CoCs should not attempt to change Collaborative Applicants during the FY 2022 CoC Program Competition without HUD's prior approval unless HUD replaces the CoC's designated Collaborative Applicant under the authority of Section 402(c) of the Act. HUD will approve Collaborative Applicant changes outside the annual CoC Program Registration process under the following circumstances:

a. the Collaborative Applicant made an error when entering the Collaborative Applicant name in the CoC Applicant Profile;

b. the Collaborative Applicant designated by the CoC is no longer in business;

c. the CoC selected a new Collaborative Applicant; or

d. a new Collaborative Applicant was selected by HUD as a remedial action under Section 402(c) of the Act.

In cases where the CoC needs to change the Collaborative Applicant approved during the FY 2022 CoC Program Registration process, the CoC must notify the local HUD CPD field office, in writing, stating the reason for the Collaborative Applicant change. The notice to HUD must provide documentation of the CoC's approval of the change (e.g., a copy of the meeting minutes to include the date and attendees).

2. Project Applicants. Eligible project applicants for the CoC Program are identified in Section V.A. of this NOFO. For-profit entities are ineligible, and applications submitted from these entities will not be reviewed.

G. Local Competition Deadlines. 24 CFR 578.9 requires CoCs to design, operate, and follow a collaborative process for the development of an application in response to a NOFO issued by HUD. As part of this collaborative process, CoCs should implement internal competition deadlines and notification processes to ensure transparency and fairness at the local level. The implementation of deadlines that meet the standards outlined in Section VII.B.2.g of this NOFO for FY 2022 project applications will be part of the scoring criteria.

H. CoC Review of Project Applications. HUD expects each CoC to implement a thorough review and oversight process at the local level for both new and renewal project applications submitted to HUD in the FY 2022 CoC Program Competition. It has been HUD’s experience that many project applications contain information resulting in conditions on the grant; or for more serious infractions, a project application being rejected. Deficient project applications prolong the review process for HUD, which results in delayed funding announcements, lost funding for CoCs due to rejected projects, and delays in funding to house and assist individuals and families experiencing homelessness. CoCs are expected to closely review the information provided in each project application, including YHDP renewal or YHDP replacement projects, to ensure:

1. all proposed program participants will be eligible for the program component type selected, including YHDP renewal or YHDP replacement projects;

2. the information provided in the project application and proposed activities are:

a. eligible and consistent with program requirements in the Rule; or

b. eligible YHDP renewal or YHDP replacement projects (see Sections II.B.7 of this NOFO);

3. each project narrative is fully responsive to the question being asked and that it meets all the criteria for that question as required by this NOFO;

4. the data provided in various parts of the project application are consistent; and

5. all required attachments correspond to the list of attachments in e-snaps that must contain accurate and complete information that are dated between June 30, 2022 and September 30, 2022.

I. FY 2022 CoC Program Competition NOFO. CoCs and applicants should read this NOFO in its entirety in conjunction with the Rule to ensure a comprehensive understanding of and compliance with all CoC Program requirements. This NOFO frequently references citations from the Rule.

1. CoCs should consider the policy priorities established in this NOFO in conjunction with local priorities to determine the ranking of new and renewal project application requests. See Section II of this NOFO for more information on HUD's homelessness policy priorities and program highlights.

2. HUD will conduct threshold reviews of project applicants, subrecipients, and project applications for all CoC Consolidated Applications submitted by the application submission deadline as described in Section VIII.

3. HUD may issue more than one conditional funding announcement, including for those instances where a CoC has been affected by a disaster and for which HUD has extended the deadline for application submission.

4. HUD will score the FY 2022 CoC Application portion of the Consolidated Application in accordance with the criteria set forth in Section VII.B. of this NOFO.

5. CoC Planning and UFA Costs project applications are not ranked and will be selected provided they pass project eligibility and project quality threshold review.

6. YHDP renewal and YHDP replacement project applications are not ranked and will be selected for funding provided they pass project eligibility and project quality threshold review, and for YHDP renewals, project renewal threshold; as explained in Section V.C.4.c of this NOFO. YHDP replacement project applications will not be rejected during project quality threshold review; however, HUD may need to work with the YHDP replacement recipients to correct or revise information submitted after the final FY 2022 award announcement.

7. New DV Bonus project applications passing project eligibility and project quality threshold may be selected:

a. with DV Bonus funds based on the CoC Application score, how the CoC collaborates with victim service providers, the need for the project, and how the provider will involve survivors with lived expertise in the policy and program development (Section II.B.11.e of this NOFO) which will remove the DV Bonus project application from the Tier 1 and Tier 2 ranking process; or

b. without DV Bonus funds as a new project where the project application will retain its ranked position in Tier 1 or Tier 2 and may be selected as outlined in Sections II.B.11. a or b of this NOFO.

8. Using the Tier 1 and Tier 2 ranking process in Sections II.B.11.a and b, HUD will select:

a. new project applications, created through reallocation or CoC Bonus, and renewal project applications passing project eligibility, project quality threshold, and if applicable, project renewal threshold, based on ranked position in Tier 1 (Section II.B.11.a of this NOFO); and

b. new project applications, created through reallocation or CoC Bonus, and renewal project applications passing project eligibility, project quality threshold, and if applicable, project renewal threshold in Tier 2 based on the CoC Application score and the project application score outlined in Section II.B.11.b of this NOFO.

J. Changes from Previous NOFO.

1. The Consolidated Appropriations Act, 2021 (Public Law 116-260, approved December 27, 2020) added section 435 of the Act to allow Indian Tribes and Tribally Designated Housing Entities (TDHE) to be Collaborative Applicants, eligible entities, or subrecipients of the CoC Program in addition to amending section 401 of the Act to add the terms “Formula Area” and “Indian Tribe.” These amendments mean that not only may Tribes and TDHEs apply for grants through other CoCs, but that formula areas, as that term is defined in the Indian Housing Block Grant program at 24 CFR 1000.302, are eligible to be added to the geographic areas of existing CoCs or may be included in newly formed CoCs through the CoC registration process (see Notice CPD-22-02). HUD chose to implement integration of Tribes and TDHEs into the CoC program in stages. In the FY 2021 competition, Tribes and TDHEs were eligible to apply for projects through existing CoCs only. In the FY 2022 competition, HUD published PPRNs for all formula areas, including tribal formula areas and allowed CoCs to include tribal formula areas in their CoC geography during the FY 2022 CoC Program registration process. A Tribe or TDHE could also form a CoC including only tribal formula areas as part of their geography through the CoC registration process. Additionally, beginning in FY 2022 CoC Program Competition Tribes and TDHEs can be designated as Collaborative Applicants. As in the FY 2021 Competition, any applicant that is not a Tribe or TDHE proposing to site a project on a reservation or trust land must include a tribal resolution from the tribe authorizing the applicant to do so or a letter from an official or principal of the Indian Tribe or TDHE who is authorized to act on behalf of the Indian Tribe or TDHE. Tribes do not need to include a tribal resolution to site a project on their own reservation or trust land.

2. HUD first introduced transition grants in the FY 2018 CoC Program Competition. This process provides an opportunity for renewal projects to transition from one CoC Program component to another during the CoC Program Competition. New this year, CoCs will not be limited to only 50 percent of awarded funds to be used for the costs of eligible activities of the program component originally funded. Instead, recipients may use as much of the awarded grant funds on the costs of eligible activities of the program component originally funded; however, by the end of the operating year, the recipient must be fully operating the new program component.

Recipients will be eligible for renewal in subsequent fiscal years for eligible activities of the new program component. See Section III.B.2.cc for more information on Transition Grants.

3. HUD revised its rating factors regarding CoC evaluation of racial disparities to place greater emphasis on racial equity and increased the number of points in Section VII.B.1.q of this NOFO on whether CoCs and homeless providers have identified barriers that lead to racial disparities, have taken steps to eliminate barriers to improve racial equity, and have implemented measures to evaluate the efficacy of the steps taken. Additionally, points were added to Section VII.B.2.e of this NOFO that will be awarded to CoCs that are promoting racial equity through the local CoC competition. These points will be awarded on the rating factors; review, selection, and ranking processes used; and if rating and ranking of projects is based on the degree to which projects have identified any barriers to participation (e.g., lack of outreach) faced by persons of different races and ethnicities, particularly those over-represented in the local homelessness population, and are taking or will take steps to eliminate the identified barriers.

4. HUD revised of the rating factors for addressing the needs of Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ+) individuals to place greater emphasis on CoCs implementing and training their providers on the CoC-wide anti-discrimination policies that ensure LGBTQ+ individuals and families receive supportive services, shelter, and housing free from discrimination. Further, points were added to Section VII.B.1.f of this NOFO that will be awarded to CoCs that are updating their CoC-wide anti-discrimination policies based on stakeholder feedback and assisting providers in developing their own agency anti-discrimination policies that are consistent with the CoC-wide anti-discrimination policies.

5. Throughout the past two years, as CoCs responded to the challenges of COVID-19, partnerships were developed between CoCs, homeless service providers, and state and local public health agencies. In the FY 2021 CoC Program Competition, HUD asked CoCs to demonstrate how these partnerships increased the safety of people experiencing homelessness from contracting COVID-19 and helped people increase vaccination rates amongst people experiencing homelessness. In the FY 2022 CoC Program Competition, HUD is asking CoCs to demonstrate how they will build on these partnerships to ensure they are prepared to prevent and respond to future infectious disease outbreaks amongst people experiencing homelessness. See Section VII.B.1.o for more information.

6. Ambiguous language in the Tier 2 Scoring process described in II.B.11.b.(2) was corrected.

The language now states that the calculation for the CoC Project Ranking factor will be 40 times the quantity (1-x) where x is the ratio of the cumulative funding requests for all projects or portions of projects ranked higher by the CoC in Tier 2 plus one half of the funding of the project of interest to the total amount of funding available in Tier 2, which matches the examples.

7. As described in Section II.B.11.e of this NOFO, for new projects the CoC would like to be considered as part of the DV Bonus, HUD revised the point value distribution for project applications based on the CoC Application score and responses to the revised domestic violence bonus specific questions in the project applications. For the FY 2022 CoC Program Competition, HUD added scoring factors based on the responses to questions that demonstrate CoCs’ collaboration with victim service providers in the CoC Application, projects’ plans to include survivors with lived experience in policy and program development and the inclusion of victim-centered practices in operating their projects.

8. HUD added an additional rating factor at Section VII.B.1.t. that awards points to CoCs that take steps to engage local leaders about increasing affordable housing supply.

II. HUD's Homeless Policy Priorities and Program Highlights

A. Policy Priorities. This section provides additional context regarding the selection criteria found in Section VII.B of this NOFO and is included here to help applicants better understand how the selection criteria support the goal of ending homelessness:

1. Ending homelessness for all persons. To end homelessness, CoCs should identify, engage, and effectively serve all persons experiencing homelessness. CoCs should measure their performance based on local data that consider the challenges faced by all subpopulations experiencing homelessness in the geographic area (e.g., veterans, youth, families, those experiencing chronic homelessness, and people with disabilities, including those living with HIV/AIDS). CoCs should partner with housing, health care, and supportive services providers to expand housing options, such as permanent supportive housing, housing subsidies, and rapid rehousing. Additionally, CoCs should use local data to determine the characteristics of individuals and families with the highest needs and longest experiences of homelessness to develop housing and supportive services tailored to their needs.

2. Use a Housing First approach. Housing First prioritizes rapid placement and stabilization in permanent housing and does not have service participation requirements or preconditions. CoC Program funded projects should help individuals and families move quickly into permanent housing, and CoCs should measure and help projects reduce the length of time people experience homelessness. Additionally, CoCs should engage landlords and property owners to identify housing units available for rapid rehousing and permanent supportive housing participants, remove barriers to entry, and adopt client-centered service methods. HUD encourages CoCs to assess how well Housing First approaches are being implemented in their communities.

3. Reducing Unsheltered Homelessness. In recent years, the number of people experiencing unsheltered homelessness has risen significantly, including a rising number of encampments in many communities across the country. People living unsheltered have extremely high rates of physical and mental illness and substance use disorders. CoCs should explore all available resources, including CoC and ESG funded assistance, housing subsidies, and supportive services to provide permanent housing options for people who are unsheltered.

4. Improving System Performance. CoCs should be using system performance measures (e.g., average length of homeless episodes, rates of return to homelessness, rates of exit to permanent housing destinations) to determine how effectively they are serving people experiencing homelessness. Additionally, CoCs should use their Coordinated Entry process to promote participant choice, coordinate homeless assistance and mainstream housing, and services to ensure people experiencing homelessness receive assistance quickly, and make homelessness assistance open, inclusive, and transparent. CoCs should review all projects eligible for renewal in FY 2022 to determine their effectiveness in serving people experiencing homelessness, including cost-effectiveness. CoCs should also look for opportunities to implement continuous quality improvement and other process improvement strategies. HUD recognized the effects of COVID-19 on CoC performance and data quality and reduced the points available for rating factors related to system performance in the FY 2021 CoC NOFO. This FY 2022 CoC NOFO significantly increases the points available for system performance rating factors.

5. Partnering with Housing, Health, and Service Agencies. Using cost performance and outcome data, CoCs should improve how all available resources are utilized to end homelessness. This is especially important as the CARES Act and American Rescue Plan have provided significant new resources to help end homelessness. HUD encourages CoCs to maximize the use of mainstream and other community-based resources when serving persons experiencing homelessness and should:

a. work closely with public and private healthcare organizations and assist program participants to receive primary care, receive housing-related services, and obtain medical insurance to address healthcare needs. This includes developing close partnerships with public health agencies to analyze data and design approaches that reduce homelessness, improve the health of people experiencing homelessness, and prevent and address disease outbreaks, including HIV/AIDS.

b. partner closely with PHAs and state and local housing organizations to utilize coordinated entry, develop housing units, and provide housing subsidies to people experiencing homelessness. These partnerships can also help CoC Program participants exit permanent supportive housing through Housing Choice Vouchers and other available housing options.

CoCs and PHAs should especially work together to implement targeted programs such as Emergency Housing Vouchers, HUD-VASH, Mainstream Vouchers, Family Unification Program (FUP) Vouchers, and other housing voucher programs targeted to people experiencing homelessness. CoCs should coordinate with their state and local housing agencies on the utilization of new HOME program resources provided through the Homelessness Assistance and Supportive Services Program that was created through the American Rescue Plan;

c. partner with local workforce development centers to improve employment opportunities;

and

d. work with tribal organizations to ensure that tribal members can access CoC-funded assistance when a CoC's geographic area borders a tribal area.

6. Racial Equity. In nearly every community, Black, Indigenous, and other people of color are substantially overrepresented in the homeless population. HUD is emphasizing system and program changes to address racial equity within CoCs. Responses to preventing and ending homelessness should address racial inequities to ensure successful outcomes for all persons experiencing homelessness using proven approaches, such as: developing a coordinated community response created in partnership with a racially diverse set of stakeholders and people experiencing homelessness and partnering with organizations with experience serving underserved populations. CoCs should review local policies, procedures, and processes with attention to identifying barriers that result in racial disparities, and taking steps to eliminate barriers to improve racial equity and to address disparities.

7. Improving Assistance to LGBTQ+ Individuals. Discrimination on the basis of gender identity or sexual orientation manifests differently for different individuals and often overlaps with other forms of prohibited discrimination. CoCs should address the needs of LGBTQ+, transgender, gender non-conforming, and non-binary individuals and families in their planning processes.

Additionally, when considering which projects to select in their local competition to be included in their application to HUD, CoCs should ensure privacy, respect, safety, and access regardless of gender identity or sexual orientation in projects. CoCs should also consider partnering with organizations with expertise in serving LGBTQ+ populations.

8. Persons with Lived Experience. HUD is encouraging CoCs to include in the local planning process people who are currently experiencing or have formerly experienced homelessness.

People with lived experience should determine how local policies may need to be revised and updated to improve the effectiveness of homelessness assistance programs, including participating in planning and oversight activities and developing local competition processes. CoC leaders and stakeholders should also prioritize hiring people who have experienced homelessness in areas where their expertise is needed (e.g. peer outreach and support).

9. Increasing Affordable Housing Supply. The lack of affordable housing is the main driver of homelessness. CoCs play a critical role in educating local leaders and stakeholders about the importance of increasing the supply of affordable housing and the specific consequences of the continued lack of affordable housing. CoCs should be communicating with jurisdiction leaders, including for the development of Consolidated Plans, about the harmful effects of the lack of affordable housing, and they should engage local leaders about steps such as zoning and land use reform that would increase the supply of affordable housing. This FY2022 CoC NOFO awards points to CoCs that take steps to engage local leaders about increasing affordable housing supply.

B. CoC Program Implementation. The following list highlights important information that applicants should consider as they are preparing the FY 2022 CoC Application and project applications(s). This is not an exhaustive list of considerations or requirements; therefore, all applicants should carefully review the Rule for comprehensive information.

1. Performance-Based Decisions. Consistent with the requirements of the Consolidated Appropriations Act, 2022:

a. Requests for new CoC project applications are not allowed, other than through reallocation, unless the CoC evaluates and competitively ranks projects based on how they improve system performance as outlined in Section VII.B.2.b of this NOFO; and

b. HUD will prioritize funding for CoCs that have demonstrated the capacity to reallocate funding from lower to higher performing projects.

2. Indian Tribes or Tribally Designated Housing Entities (TDHE). The Consolidated Appropriations Act, 2021 amended title IV of the Act by adding section 435 so designated Indian Tribe or TDHEs (as defined in section 4 of the Native American Housing Assistance and Self- Determination Act of 1996 (25 U.S.C. 4103) may:

a. be a Collaborative Applicant, eligible project applicant, or subrecipient; or

b. receive grant amounts from another entity that receives a grant directly from HUD.

3. Transition Grants. See Section III.B.2.cc of this NOFO for a definition of the transition grant and process.

4. Coordination with Housing and Healthcare. The Consolidated Appropriations Act, 2022 directs HUD to provide incentives to create projects that coordinate with housing providers and healthcare organizations to provide permanent supportive housing and rapid rehousing services.

In the FY 2022 CoC Program Competition, CoCs may receive up to 14 points on the CoC Application if the CoC Priority Listing includes new project applications created through reallocation or the CoC Bonus that utilizes housing vouchers and healthcare provided through an array of healthcare services providers. See Section VII.B.6 of this NOFO for additional details.

5. Domestic Violence, Dating Violence, Sexual Assault, and Stalking Bonus (DV Bonus). The Consolidated Appropriations Act, 2022 provides at least $52 million for “rapid re-housing projects and supportive service projects providing coordinated entry, and for eligible activities that the Secretary determines to be critical in order to assist survivors of domestic violence, dating violence, sexual assault, or stalking.” See Section II.B.11.e of this NOFO for additional information.

6. Consolidation Project. Project applicants can consolidate two but no more than ten eligible renewal projects during the application process. The projects being combined during a grant consolidation will continue uninterrupted. To be eligible for consolidation, the projects must have the same recipient and be for the same component; and will only be funded in this Competition with FY 2022 funds (meaning no funds recaptured from prior years will be awarded to the project). See Section V.B.4.a.(7) of this NOFO for additional information.

7. Youth Homeless Demonstration Program (YHDP). Consistent with the requirements of the Consolidated Appropriations Act, 2022, funding for the CoC Program may be used to competitively or non-competitively renew or replace grants for YHDP projects. HUD has decided to non-competitively renew or replace expiring YHDP grants; however, these project applications will be reviewed for compliance with project eligibility, project quality, and if applicable, project renewal thresholds. See Sections II.B.11.d, II.B.11.f, and V.B.4.a.(5) of this NOFO for additional information.

While YHDP projects can use the consolidation process as outlined in Section II.B.6 and V.B.4.a.(7) of this NOFO these projects cannot consolidate with non-YHDP projects. YHDP projects cannot use the expansion (Section III.B.2.j) or reallocation processes (Section III.B.2.x) outlined in this NOFO.

All YHDP renewal and replacement projects are subject to the following provisions of the Rule, as may be amended from time to time, except where they conflict with the NOFO requirements, with the special YHDP activities identified in Section V.B.4.a.(5) of this NOFO, or the requirement that grant funds may only be used to serve homeless youth, age 24 and younger: 24

CFR 578.3, 578.15, 578.23(a), 578.25, 578.27, 578.29, 578.37, 578.43, 578.45, 578.47, 578.49, 578.51, 578.53, 578.55, 578.57, 578.59, 578.61, 578.63, 578.73(c), 578.75, 578.77, 578.79, 578.81, 578.83, 578.85, 578.87, 578.89, 578.89, 578.91, 578.93, 578.95, 578.97, 578.99, 578.103(a)(3) - (18) and (b) – (e), 578.107 and 578.109. The requirements of 2 CFR 200.306, as may be amended from time to time, with the exception of 200.306(b)(5) apply. All YHDP renewal and replacement projects must comply with 24 CFR 578.93, except that in 578.93(c)(2), recipients must provide such information to the jurisdiction in which the project is located.

Federal fair housing and nondiscrimination requirements cannot be waived.

8. Adjustments for Ineligible Projects. If an ineligible renewal project is submitted in this Competition or used in the reallocation process, or an ineligible YHDP renewal or YHDP replacement project is submitted, HUD will remove the ineligible project when calculating the final ARD amount for the CoC. To be eligible for renewal in FY 2022, a project must have an executed grant agreement by December 31, 2022, and have an expiration date in Calendar Year (CY) 2023 (between January 1, 2023, and December 31, 2023).

9. Homeless Management Information System (HMIS). CoCs must have an HMIS that has the capacity to collect unduplicated counts of individuals and families experiencing homelessness and provide information to project subrecipients and applicants for needs analysis and funding priorities. Additionally, CoC and Emergency Solutions Grants (ESG) Program recipients must participate in the local HMIS; unless a recipient is a victim service provider or legal service provider, in which case it must use a comparable database and provide de-identified information to the CoC. For many communities, the inclusion of ESG recipients and subrecipients and other HUD federal partners (e.g., the Department of Health and Human Services and Department of Veterans Affairs) that require their programs to use the CoC’s HMIS, results in an increase in users that the HMIS must be able to accommodate. HUD expects communities to be able to use the HMIS information as well as aggregate data from comparable databases to review performance for the entire CoC geographic area, not just at the project level. The HMIS Lead should continue to consider any unique needs that the HMIS might be required to address to accommodate emergency shelter, street outreach, homelessness prevention, and other federal programs.

10. Review of CoC Rankings. CoCs will be required to rank all new reallocated, CoC Bonus, DV Bonus, and renewal project applications submitted by project applicants in e-snaps, except YHDP renewal, YHDP replacement, CoC Planning, and UFA Costs (if applicable) projects.

11. HUD Funding Process. HUD will continue the Tier 1 and Tier 2 funding selection process.

CoCs and applicants should ensure there is a thorough understanding of the information provided in this NOFO. For CoC Collaborative Applicants designated as a UFA, HUD will use the selection process described in Section II.B.11 of this NOFO. HUD will establish each CoC’s Tier 1 and Tier 2 amounts based on the total amount of funds requested by eligible renewal project applications on the Renewal Project Listing combined with the eligible renewal project amount(s) that were reallocated as listed on the reallocation forms in the CoC Priority Listing.

HUD will post a report that lists the available amounts for each CoC's PPRN, estimated ARD, Tier 1, CoC planning, CoC Bonus, and DV Bonus on HUD's website. The Grant Inventory Worksheets (GIWs) are also posted on HUD's website. Section VIII of this NOFO provides additional information regarding project selection.

https://www.hud.gov/program_offices/comm_planning/coc/competition/giws https://www.hud.gov/program_offices/comm_planning/coc/competition/giws

a. Tier 1. Tier 1 is equal to 95 percent of the CoC’s Annual Renewal Demand (ARD) as described in Section III.B.2.a of this NOFO minus the Annual Renewal Amounts (ARAs) of YHDP renewal and YHDP replacement projects. Project applications in Tier 1 will be conditionally selected from the highest scoring CoC to the lowest scoring CoC, provided the project applications pass both project eligibility and project quality threshold review, and if applicable, project renewal threshold. Any type of new or renewal project application can be placed in Tier 1, except YHDP renewal or YHDP replacement, CoC planning, and if applicable, UFA Costs projects as these projects are not ranked. If a DV Bonus project ranked in Tier 1 is selected with DV Bonus funds, the project will be removed from this tier and the projects below it will move up one rank position. However, if a new DV Bonus project is not selected with DV Bonus funds, the project will retain its ranked position (see Section II.B.11.e of this NOFO). In the event insufficient funding is available to award all Tier 1 projects, Tier 1 will be reduced proportionately, which could result in some Tier 1 projects falling into Tier 2. Therefore, CoCs should carefully determine the priority and ranking for all project applications in Tier 1 as well as Tier 2, which is described below.

b. Tier 2. Tier 2 is the difference between Tier 1 and the maximum amount of renewal, reallocation, and CoC Bonus funds that a CoC can apply for but does not include YHDP renewal or YHDP replacement projects, CoC planning projects, and if applicable, UFA Costs projects or projects selected with DV Bonus funds. If a DV Bonus project ranked in Tier 2 is selected with DV Bonus funds, the project will be removed from this tier and the projects below it will move up one rank position. However, if a new DV Bonus project is not selected with DV Bonus funds, the project will retain its ranked position (see Section II.B.11.e of this NOFO). Project applications placed in Tier 2 will be assessed for project eligibility and project quality threshold requirements, and if applicable, project renewal threshold requirements and funding will be determined using the CoC Application score as well as the factors listed in Section II.B.11 of this NOFO.

HUD will award a point value to each new and renewal project application that is in Tier 2 using a 100-point scale:

(1) CoC Score. Up to 50 points in direct proportion to the score received on the CoC Application; e.g., if a CoC received 100 out of 200 points on the CoC Application, the project application would receive 25 out of 50 points for this criterion.

(2) CoC Project Ranking. Up to 40 points for the CoC’s ranking of the project application(s). To consider the CoC's ranking of projects, point values will be assigned directly related to the CoC's ranking of project applications. The calculation of point values will be 40 times the quantity (1-x) where x is the ratio of the cumulative funding requests for all projects or portions of projects ranked higher by the CoC in Tier 2 plus one half of the funding of the project of interest to the total amount of funding available in Tier 2. For example, if a CoC is eligible to apply for projects totaling $500,000 in Tier 2 and applies for 5 projects ranked in Tier 2 of $100,000 each: the highest-ranked project would receive 36 points, and then the subsequently ranked projects would receive 28, 20, 12, and 4 points.

(3) Commitment to Housing First. Up to 10 points based on the project application’s commitment to follow a housing first approach as defined in Section III.B.2.o of this

NOFO. Dedicated HMIS projects and supportive service only for centralized or coordinated assessment system (SSO-CE) projects will automatically receive 10 points.

c. Projects Straddling Tiers. If a project application straddles the Tier 1 and Tier 2 funding line, HUD will conditionally select the project up to the amount of funding that falls within Tier 1. Using the CoC score, and other factors described in Section II.B.11 of this NOFO, HUD may fund the Tier 2 portion of the project. If HUD does not fund the Tier 2 portion of the project, HUD may award the project at the reduced amount, provided the project is still feasible with the reduced funding (e.g., is able to continue serving homeless program participants effectively).

d. Renewal and Replacement YHDP, CoC Planning, and UFA Costs Projects. As previously stated, YHDP renewal, YHDP replacement, CoC Planning, and UFA Costs projects are not ranked; therefore, these project applications will not be included in Tier 1 or Tier 2. CoCs may only submit one project application for CoC planning costs and, if applicable, one project application for UFA Costs. The project applicant for CoC planning and UFA Costs must be the Collaborative Applicant that is listed on the CoC Applicant Profile in e-snaps.

e. DV Bonus. For new projects the CoC indicates it would like considered as part of the DV Bonus, HUD will award a point value to each project application combining both the CoC Application score and responses to the domestic violence bonus specific questions in the CoC Application using the following 100-point scale:

(1) Rapid Rehousing (RRH), and joint transitional housing and permanent housing-rapid rehousing (Joint TH/PH-RRH) component projects:

(a) CoC Score. Up to 50 points in direct proportion to the score received on the CoC Application.

(b) CoC Collaboration with Victim Service Providers. Up to 10 points in direct proportion to the score received on the following rating factors in the CoC application: Section VII.B.1.e, Section VII.B.2.c, and Section VII.B.3.b.

(c) Need for the Project. Up to 10 points based on the extent the CoC quantifies the need for the project in its portfolio, the extent of need, and how the project will fill that gap.

(d) Quality of the Project Applicant Experience. Up to 15 points based on the previous performance of the applicant in serving survivors of domestic violence, dating violence, sexual assault, or stalking, and their ability to house survivors and meet safety outcomes.

(e) Demonstration of inclusion of victim-centered practices. Up to 8 points based on the quality of the project’s plan to address the housing and safety needs of survivors by adopting victim-centered practices (e.g., Housing First, Trauma-Informed Care, Confidentiality) in operating their project. Full points will be awarded to project applicants that can demonstrate they are already adopting victim-centered practices.

(f) Demonstration…