Good News
Judge Rules on CoC Builds Case
Yesterday, the U.S. District Court in Rhode Island ruled in a case related to CoC Builds funding. CT BOS did not apply for that funding, but this ruling may provide some insight into what we can expect in upcoming CoC Competitions.
The court ruled that HUD broke the law when it changed the CoC Builds funding rules at the last minute. HUD had already reviewed applications and picked projects for funding. Then, in September 2025, it suddenly issued a new notice with new rules tied to immigration, drug policy, homelessness policy, and sex/gender requirements. The court said HUD did not give a good reason for making those changes so late or for giving applicants only seven days to respond. Because of that, the judge found HUD’s actions unfair and unlawful.
The court also said some of the new rules went beyond what the law allows. In particular, HUD was not allowed to deny or limit funding based on local government policies in the places where applicants were located. The judge also found problems with HUD’s new sex/gender certification requirement, and noted that HUD did not really defend that part of the CoC Builds NOFO in court. However, the judge did not agree with plaintiffs’ separate claim that HUD had unlawfully delayed the funding process, because the delay had not gone on long enough to meet that legal standard.
The judge also made clear that the court was not deciding whether the administration’s policy goals were good or bad. Instead, the court said an administration can try to shape grant programs around its priorities only if it follows the proper legal process and stays within the limits Congress set in the law.
As a result, the court threw out the September 2025 CoC Builds funding notice and the new rules HUD added to it. The judge also ordered that the CoC builds money be kept available until HUD makes funding decisions in a lawful way. The court did not issue a broader permanent injunction, because it decided that canceling the unlawful NOFO was enough for now. In simple terms, the decision says HUD must follow the established legal process for making policy changes.