On December 3, 2025, San Francisco City Attorney David Chiu and Santa Clara County Counsel Tony LoPresti announced that both jurisdictions have joined a national lawsuit against the U.S. Department of Housing and Urban Development (HUD). The lawsuit challenges recent changes to HUD’s Continuum of Care (CoC) Program, which funds homelessness services nationwide. The new rules, introduced in November 2025, may affect housing support for more than 170,000 people as winter approaches.
The lawsuit, filed in federal district court in Rhode Island, claims that HUD’s revised Notice of Funding Opportunity (NOFO) would reduce support for permanent supportive housing and rapid rehousing programs. These programs serve groups such as veterans, seniors, people with disabilities, and families with children.
San Francisco was set to receive $56 million in CoC funding for fiscal year 2025. Local officials say the changes in eligibility, project types, and grantee requirements create uncertainty for future funding. They are concerned the new rules could disrupt local efforts to address homelessness…