Section S: Grant Extensions

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Extension Provisions

An extension allows HUD to lengthen the SHP grant term to continue a project. For SHP grants expiring in a given calendar year, grantees that will have SHP or other funds to carry them beyond that calendar year have the option of extending their grant term for up to one year subject to HUD approval. Grant terms may not be extended for more than one year at a time. In addition, extensions for less than a year are acceptable if an entire year is not needed to carry the term into the next calendar year.

Grantees that seek extensions for projects must commit to maintain the same level of housing and/or services and have the financial resources to continue the program through the extension period. Although a grant can be extended to ensure its eligibility for renewal funding in a given competition year, there is no guarantee that the project will receive additional HUD McKinney Act funds.

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Extensions of Renewal Grants

Grantees that have funds to carry them into the next calendar year may request an extension, subject to HUD approval. Grantees will need to request that their local HUD Field Office process a grant agreement amendment. With the request for an amendment, grantees must submit information to the field office demonstrating that they have the financial resources to carry out their program in accordance with their grant agreement for the extension period.

Extensions are not given merely to use SHP grant funds left over after the term of the grant has ended. Applicants apply in the national competition for SHP grants for one, two, or three year terms.

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Financial Resources Used During Extension Period

In order to continue operating an SHP project during the extension period, you may use any type of funds, including Federal, State, local or private funds, and still remain eligible to compete in the next competition. Although typically the use of State or local government funds in a project would prevent future Federal funding, HUD allows the use of these funds as interim or emergency funding when they are used to continue an SHP project that was unsuccessful in being renewed. Projects using interim or emergency funding must still seek approval for an extension from HUD.

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How to Request an Extension

Steps for requesting an extension of a Supportive Housing Program grant:

  • Determine when the grant expires. You may contact your HUD field staff to verify the expiration date.
  • Based on the expiration date, determine if there are enough funds to carry you through the operating year and the proposed extension period.
  • If more funds are needed, identify available funding resources and secure these funds.
  • Before the current grant expires, you must request an extension in writing from your Field Office. To obtain an extension, grantees must request that their local HUD field office process a grant agreement amendment. With the request for an amendment, grantees must submit information to the Field Office demonstrating how they fit one of the criteria above and that they have the financial resources to carry out the project fully in accordance with all of the provisions of their grant agreement during the extension period.

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Prohibition on Extensions within the Calendar Year

The only extensions that HUD allows are those associated with the annual homeless assistance competition. Therefore, HUD does not allow extensions within the calendar year.

Projects will not be extended within the calendar year merely to spend the remaining grant funds. However, if a grant is extended into the next calendar year so that it can become eligible to apply for renewal in the next competition, grant funds remaining from the current term may be used as a source of funding to continue the project during the extension period.

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How to Complete an APR for a Project Extension

An Extension APR applies to SHP grantees that requested and received an extension of their grant term from the HUD Field Office. The only difference between an APR for the extension period and the regular APR (besides the amount of time covered) is the signature page. Grantees should circle “yes” to indicate that the APR is for an extension period and also circle the operating year for which the report is an extension. For example, if the grantee is extending year 3, the grantee should submit an APR as usual for year 3 and also submit a second APR for the extension period. The grantee should indicate on this 2nd APR that it covers an extension period but also circle year 3 on the signature page. Instructions are provided in the General Instructions section of the APR.

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Section S: Frequently Asked Questions

  • If a grantee has money left over after the term of their SHP grant, can the grant be extended in order to spend the remaining money?

    SHP projects will not be extended merely to spend the remaining grant funds.

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