Dear Applicants,
As you prepare for the FY2026 Continuum of Care (CoC) Competition, we want to share preliminary information related to available bonus funding and project tiering to support local application planning and project development.
For the MS-500 CoC, the estimated CoC Bonus funding amount is at minimum $500,000.00 and the estimated DV Bonus funding amount is $855,178.00. These amounts are estimates and may be adjusted based on HUD's final funding calculations and official competition materials.
The CoC Bonus may be used for eligible new projects as permitted under HUD's FY2026 CoC Program competition rules. In general, bonus funding may support new projects that align with HUD priorities and local system needs, which may include projects such as permanent supportive housing, rapid rehousing, joint transitional housing-rapid rehousing, supportive services only projects for coordinated entry, or HMIS, as allowed under the applicable Notice of Funding Opportunity (NOFO). Applicants proposing bonus projects should ensure that proposals are eligible, clearly justified, and responsive to identified community needs and local competition priorities.
The DV Bonus is intended specifically for projects that serve individuals and families experiencing homelessness who are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking. Eligible project types and program design must meet HUD requirements for DV Bonus funding and demonstrate how the project will safely and effectively serve survivors while coordinating with the broader homeless response system.
In addition, applicants should be aware of the project tiering structure for the FY2026 competition. The Tier 1 funding threshold is 60% of the CoC's Annual Renewal Demand (ARD), with the remaining amount placed in Tier 2. Projects in Tier 1 are generally considered for funding first, while projects in Tier 2 are more competitive and evaluated according to HUD's national scoring and selection criteria. For this reason, project quality, performance, and alignment with local and federal priorities remain especially important.
Please use this information as an initial planning guide as you consider project applications, renewal strategy, and any potential new bonus project proposals. Additional local competition guidance, timelines, and application materials will be shared as they become available.
If you have any questions, please contact Timothy Collins at tcollins@centralmscoc.org.
