Full DRAFT FY 26 CoC NOFO FONSI_29 May_ALD (002) (002).pdf

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, DC 20410-7000

OFFICE OF COMMUNITY PLANNING

AND DEVELOPMENT

MEMORANDUM FOR: Ronald J. Kurtz, Assistant Secretary for Community Planning and Development, D

THROUGH: Claudette Fernandez, General Deputy Assistant Secretary for Community Planning and Development, D

FROM: Caitlyn McKenney, Deputy Assistant Secretary for Special Needs Assistance Programs, DN

SUBJECT: Environmental Assessment and Finding of No Significant Impact (FONSI) Under the National Environmental Policy Act (NEPA)

– Notice of Funding Opportunity (NOFO) for the Fiscal Year (FY) 2026 Continuum of Care Competition and Youth Homeless Demonstration Program Grants (CPD-2600-DC-0025)

It is the finding of this office that the NOFO for FY 2026 Continuum of Care (CoC) Competition and Youth Homeless Demonstration Program (YHDP) Grants (CPD-2600-DC-0025) does not constitute a major Federal action having an individually or cumulatively significant effect on the human environment, and therefore, does not require the preparation of an Environmental Impact Statement.

The subject Notice announces the availability of funds and provides program information and application instructions for the FY 2026 CoC Competition and YHDP Demonstration Program Grants (CPD-2600-DC-0025).The CoC Program is authorized by subtitle C of Title IV of the McKinney-Vento Homeless Assistance Act, (42 U.S.C. 11381-11389) and the CoC Program rule found at 24 CFR part 578. Funding for this program is authorized by the Consolidated Appropriations Act, 2026 (Public Law 119-75 signed February 3, 2026), and permits HUD to renew or replace expiring YHDP projects through the CoC Program. Additionally, HUD is making available approximately $52,000,000 in funding from the Consolidated Appropriations Act, 2025 (Public Law 119-04 signed March 15, 2025) for Domestic Violence, Dating Violence, Sexual Assault, and Stalking Bonus (DV Bonus) projects.

The Continuum of Care (CoC) Program is a national competition between geographic areas designed to:

promote a community-wide commitment to the goal of ending homelessness;

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 and families, persons experiencing trauma or a lack of safety related to fleeing or attempting to flee domestic violence, dating violence, sexual assault, and stalking, and homeless youth while minimizing the trauma and dislocation caused by homelessness;

promote access to, and effective utilization of, mainstream programs and programs funded with State or local resources; and optimize self-sufficiency among homeless individuals and families.

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 homeless youth ages 24 and younger, including unaccompanied and pregnant or parenting youth.

Notwithstanding 24 CFR 578.31 and 24 CFR 578.99(a) of the Rule, and in accordance with Section 100261(3) of MAP-21 (Pub. L. 112-141, 126 Stat. 405), activities under this NOFO are subject to environmental review by a responsible entity under HUD regulations at 24 CFR part 58 or by HUD under 24 CFR part 50.

a. All HUD assisted activities, even projects that only involve exempt activities, require some level of environmental review. Two types of projects are Categorically Excluded from review under the National Environmental Policy Act (NEPA) and not subject to compliance with the laws and authorities listed under 24 CFR 58.5 (CENST): All scattered-site projects where program participants choose their own unit and are not restricted to units within a pre-determined specific project site or sites are categorized in 24 CFR 58.35(b)(1) as CENST. This includes both tenant-based rental assistance and tenant-based leasing projects where program participants choose their own unit and do not involve any physical work or impacts beyond routine maintenance as defined by Notice CPD-16-02: Guidance for Categorizing an Activity as Maintenance for Compliance with HUD Environmental Regulations. The Exempt/CENST environmental review form is only required for each project, not every unit.

b. For activities under a grant to a recipient other than a state or unit of general local government that generally would be subject to review under 24 CFR part 58, HUD may make a finding in accordance with 24 CFR 58.11(d) and may itself perform the environmental review under the provisions of 24 CFR part 50 if the recipient objects in writing to the responsible entity’s performing the review under part 24 CFR part 58.

c. Irrespective of whether the responsible entity in accordance with 24 CFR part 58 (or HUD in accordance with 24 CFR part 50) performs the environmental review, the recipient must supply all relevant and available information necessary for the responsible entity (or HUD, if applicable) to perform for each property any required environmental review. The recipient also must carry out mitigating measures required by the responsible entity (or HUD, if applicable) or select alternative property.

d. The recipient, its project partners, and their contractors may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property for a project under this NOFO, or commit or expend HUD or non-HUD funds for such eligible activities under this NOFO, until the responsible entity (as defined by 24 CFR 58.2(a)(7)) has completed the environmental review procedures required by 24 CFR part 58 and the environmental certification and Request for Release of Funds (RROF) have been approved or HUD has performed an environmental review under 24 CFR part 50 and the recipient has received HUD approval of the project. HUD will not release grant funds if the recipient or any other party commits grant funds (i.e., incurs any costs or expenditures to be paid or reimbursed with such funds) before the recipient submits and HUD approves its RROF (where such submission is required).

This office finds that issuance of this NOFO for the CoC Program Competition and the renewal or replacement of YHDP Grants under the CoC Program will not have significant effect on the human environment because, prior to any recipient's commitment of funds for any activities that would have an environmental impact or limit the choice of reasonable alternatives, an environmental review of these activities under the NEPA and related laws and authorities will be done. Thus, the environmental effects of activities assisted under this NOFO will be taken into account at the appropriate time and environmental impacts will be assessed in the local setting in which they will occur.

Concurrences:

Brian J. Schlosnagle Environmental Clearance Officer Office of Community Planning and Development

Lee Ann Richardson for Christopher Hartenau Environmental Clearance Officer Office of General Counsel

Approval:

Ronald J. Kurtz Assistant Secretary for Community Planning and Development

Attachments

- Fiscal Year 2026 Continuum of Care Competition and Youth Homeless Demonstration Program Grants NOFO