Section H: Site Control & Environmental Review

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Site Control Requirement

Conduct a housing assessment using the Habitability Standards Guide & Worksheet in Supportive Housing Self-Monitoring Tools

Site control is required if SHP funds will be used for:

  • Acquisition, rehabilitation, and/or new construction;
  • Operating costs for supportive housing;
  • Supportive services at a site that the sponsor also operates; or
  • Leasing units that participants will not eventually control and providing SHP supportive services for them at the site.

Section 426 of the McKinney-Vento Act and 24 CFR 583.320 require the recipient to have site control within 12 months of HUD’s notification to the applicant that it has been conditionally selected to receive an award. In the Continuum of Care system, the term “recipient” includes the project sponsor that receives grant funds under a subrecipient agreement with the grantee. This means that either the grantee or the project sponsor must have site control within the 12-month period.

Site control means that the selectee can document control over the proposed site through one of the means defined below. If site control is not obtained within one year of the award letter, HUD is compelled by the McKinney-Vento Act to withdraw its offer to enter into a grant agreement and the project will not receive funding. HUD cannot extend this deadline.

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Documenting Site Control for Acquisition, Rehabilitation and New Construction Grants

A grantee or project sponsor must have control of any structure that will receive SHP funding for acquisition and/or rehabilitation for supportive housing or a supportive services facility, or new construction for supportive housing. Grant funds may not be used for new construction of supportive service facilities. To document site control, either of the following must be submitted:

  • a deed;
  • an executed lease agreement;
  • an executed contract of sale; or
  • an executed option to purchase or lease.

When HUD field office staff review the evidence submitted, they will be looking to ensure that:

  1. the name of the grantee/project sponsor is exactly the same as the entity that has site control;
  2. the property is truly under control;
  3. the deed or lease is in effect at the time of HUD review;
  4. if the grantee/project sponsor does not have possession of the premises at the time of HUD review, there is a clear deadline for when they will have it; and
  5. there is no apparent conflict of interest.

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Documenting Site Control for Projects Requesting Supportive Services Funds

A grantee or project sponsor must have site control when SHP funds are received for supportive services at a site operated by the project sponsor. Acceptable forms of site control are an executed lease agreement, a deed, an executed option to purchase or lease, or an executed contract of sale.

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Documenting Site Control for Projects Requesting Operating and Leasing Funds

A grantee or project sponsor must have site control when SHP funds are requested for operating costs for supportive housing. Acceptable forms of site control are an executed lease agreement, a deed, an executed option to purchase or lease, or an executed contract of sale.

For grantees or project sponsors requesting renewal funding for an existing SHP project, the only documentation of site control required is a copy of the deed or lease for the property(ies) in use to provide services to homeless persons. A site control document form for renewals is located in the leasing section of the SHP Technical Submission (if applicable) but HUD prefers that grantees or project sponsors submit actual copies of leases during the Technical Submission stage. This is applicable if there has been a change in the lease or the location. The reason for this is to provide evidence for the actual leasing costs and the reasonableness of the costs, and to ensure that there is no conflict of interest or identity of interest problem involved with the use of grant funds.

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Environmental Review Requirement

An environmental review is the process of reviewing a project and its potential environmental impacts to determine whether it meets Federal, State, and local environmental standards. No grantee, project sponsor or other participant in the development process (e.g., the contractor) is permitted to undertake or enter into a contract or otherwise commit HUD or local funds for acquisition, rehabilitation, leasing, conversion, repair, or construction of the property to provide housing under the program prior to completion of the environmental review process and approval of a HUD 7015.15 following completion of an environmental review by the Responsible Entity under 24 CFR part 58 or HUD approval of the property following an environmental review (HUD-4128) of the property by HUD under 24 CFR part 50.

Not every project is subject to a full environmental review (i.e., every project's environmental impact must be examined, but the extent of this examination varies), but every project must be in compliance with the National Environmental Policy Act (NEPA) , and other related Federal and state environmental laws. If the program receiving HUD assistance is exclusively for the provision of services, and the services provided meet the requirements of an exemption or exclusion listed at 24 CFR 58.34 or 58.35(b), the responsible entity may determine and record that no further environmental review is required, citing the appropriate exemption or exclusion.

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Responsibility for the Environmental Review

Proposed sites for SHP projects are subject to an environmental review and the project may be modified or the site rejected as a result of the environmental review. The environmental review is to be performed by a Responsible Entity (unit of general local government in whose jurisdiction the activity is located or States) in accordance with 24 CFR Part 58 – “Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities” – whether or not the grantee is itself a unit of local government or State. If a responsible entity is either unwilling or unable to perform an environmental review for grantees who are public housing agencies or private nonprofit organizations (Section 58.11), or if HUD determines that the responsible entity should not perform the environmental review on the basis of performance, timing or compatibility of objectives, HUD may designate another responsible entity to conduct the review under 24 CFR part 58 or may itself conduct the environmental review under 24 CFR part 50 . The grantee or project sponsor must carry out any mitigating measures specified in the environmental review or select an alternate eligible property.

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Environmental Review Process

The environmental review process verifies that the property is suitable for the proposed use. While all projects must undergo an environmental review, much of the required environmental assessment may not apply depending on the location and nature of the proposed activity. See HUD's Environmental Review Requirements webpage for more information on the environmental review requirements and process.

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