Beacon Calls on HUD to Honor $5.2M in CoC Builds Awards; Federal Court Blocks New Grant Criteria
Beacon Interfaith Housing Collaborative is calling on the U.S. Department of Housing and Urban Development (HUD) to honor previously selected Continuum of Care (CoC) Builds projects after a federal judge on Friday, September 12 temporarily blocked HUD from enforcing newly added application conditions tied to administration policy positions. The order pauses distribution of $75 million in CoC Builds grants while litigation proceeds.
Minneapolis-St. Paul — Beacon Interfaith Housing Collaborative is calling on the U.S. Department of Housing and Urban Development (HUD) to honor previously selected Continuum of Care (CoC) Builds projects after a federal judge on Friday, September 12 temporarily blocked HUD from enforcing newly added application conditions tied to administration policy positions. The order pauses distribution of $75 million in CoC Builds grants while litigation proceeds.
In August, Beacon was informed that its proposals had been selected for nearly $5.2 million to help create urgently needed supportive housing at Aster Commons in Hennepin County and Gladstone Crossing in Ramsey County. Weeks later, HUD reissued the program with dramatically different criteria and a compressed, one-week turnaround, effectively sidelining these projects and others nationwide. Take action now to tell leaders that this is not okay.
“Families and young people were told help was on the way. HUD should keep its word,” said Chris LaTondresse, President & CEO of Beacon. “We’re asking HUD to honor the original selections and restore a fair, transparent process so communities can move forward and build the supportive housing our neighbors need.” HUD’s recent re-issue of the CoC Builds notice narrowed eligible populations and introduced new requirements that, according to advocacy groups and court filings, tied access to federal dollars to alignment with Administration policy positions. The court’s order blocks HUD from enforcing those new conditions as the case is litigated.
CoC Builds is a targeted HUD program to add new permanent supportive housing (PSH) through construction, acquisition, or rehabilitation. HUD set aside $75 million nationally for this round. Recent HUD materials describe a narrowed focus that excludes the populations supportive housing is designed to serve, including chronically homeless households.
Beacon also notes that HUD Secretary Scott Turner has authority to ensure fairness and continuity in this program and to avoid undermining locally driven CoC decisions.
National Lawsuit and Injunction
The National Alliance to End Homelessness (NAEH), joined by a coalition of housing providers and advocates, has filed a federal lawsuit challenging HUD’s actions. The suit argues the administration’s reversal is arbitrary, capricious, and politically motivated. On September 12, a federal court granted a preliminary injunction, temporarily blocking HUD from enforcing the new restrictions while litigation proceeds. This is the Politico article that broke the story on the attempted change to the CoC program. Read the Politico article.
Minnesota Impact
Selected as gold-standard exemplars of permanent supportive housing, the two projects that would be directly affected by this change are:
- Gladstone Crossing (Ramsey County/Maplewood): 40 units of supportive housing
for families experiencing homelessness. HUD’s new rules would disqualify the project
and make its Low Income Housing Tax-Credit (LIHTC) financing unworkable. - Aster Commons (Hennepin County/Richfield): 38 units of supportive housing
designed to serve neurodiverse individuals (youth priority). As with Gladstone
Crossing, HUD’s new services mandate creates direct conflicts with Minnesota
Housing funding and any LIHTC award a project receives.
Beacon’s Call to Action
Beacon is asking HUD and Congress to:
- Honor previously selected CoC Builds projects, including Gladstone Crossing and Aster Commons, selected through a thorough and competitive process.
- Reverse newly imposed gating criteria so they do not exclude proven models of permanent supportive housing CoCs across the US selected in good faith.
- Ensure a fair and transparent process that restores trust and confidence for communities, providers, and the people we serve.
“Permanent supportive housing works, and it enjoys decades of bipartisan support because it saves lives and taxpayer dollars,” LaTondresse added. “These federal dollars exist to accelerate proven solutions. We call on HUD to restore a fair, transparent process and honor the awards earned here in Minnesota and around the country.”
About Beacon
Beacon Interfaith Housing Collaborative is a 501(c)(3) nonprofit and Minnesota’s largest provider of site-based permanent supportive housing. With over 800 homes across the Twin Cities and over 300 more in development, Beacon partners with congregations, community leaders, and policymakers to end homelessness through housing, services, and advocacy.
Media Contact – Heidi Goldman Gray, Vice President of Advancement and Communications
hgoldman-gray@beaconinterfaith.org | 612-245-2197
Learn More
- Action Alert – Tell HUD to Honor CoC Builds awards to create needed housing
- September 16, 2025 Letter from Chris LaTondresse to HUD Secretary Turner (pdf)
- September 16, 2025 Press Release – Beacon Calls on HUD to Honor $5.2M in CoC Builds Awards; Federal Court Blocks New Grant Criteria (pdf)
Read the MINNESOTA REFORMER article: HUD cancels funding for Twin Cities supportive housing developments
