Section 7.1: Renewals

New S+C grants are for periods of either five years or ten years, depending on the component (see Section 1). Since 2000, S+C renewals have been for one-year terms. In the year prior to your Shelter Plus Care grant expiration date, you must make a critical decision based upon the balance remaining in your grant. Do you have enough funds remaining to continue operating into the calendar year following your grant expiration date? If you do, you should seek a grant term extension. Alternatively, if you estimate that you will run out of funds in the year in which your grant is expiring, you must submit an application for renewal of your grant if you wish to continue operating.

Grantees need to treat each component of multi-component grants (i.e., grants approved in the 1990s with some combination of SRA, TRA, PRA and SRO components) separately when determining whether to request either an extension or renewal of an individual component. It may be, for example, that sufficient funds remain to operate the TRA component into the year following grant expiration while a PRA project under the same grant is running out of funds. In such a case, the TRA project would be proposed for a term extension while the PRA project would be submitted for renewal.

Each sponsor under a grant's SRA component must be considered separately as well when deciding whether to submit a renewal application as part of the community's annual Continuum of Care submission or seek a term extension.

The annual HUD Appropriation Act has in recent years contained requirements that, among other things, have affected the renewal of Shelter Plus Care grants.

For example, in the HUD Appropriation Act of 2001, Congress established a separate fund for renewing S+C grants expiring in 2001 and 2002. These renewal grants were to be noncompetitive and for a term of one year. It is expected that Congress will continue to support noncompetitive, one-year terms for S+C renewals but this cannot be stated with any certainty. The Notice of Funding Availability (NOFA) announcing the annual McKinney-Vento funding round will explain future changes, if any, in the renewal process. As the requirements currently stand:

  • For grants that have not been renewed previously, the grant amount is calculated by multiplying the number of units under lease at the time of the renewal application by the FMR by 12 months.
  • For renewals of one-year grants awarded in the 2000 competition and every year thereafter, the subsequent renewal may not exceed the number of units funded in the previous year.
  • Upon renewal, the unobligated funds from the previous grant period are recaptured.
  • 1-year renewal grants may not be extended.

The effective date of a renewal can be:

  • On the date the renewal grant agreement is signed by HUD (if the grant being renewed has been extended beyond the original 5 or 10 year term and you will spend all funds before the expiration date of the extension); or
  • At the end of the previous grant if that previous grant has not been extended; or
  • A specific date, agreed to between HUD and the grantee, which is after the termination date of the original grant.

Notes

These procedures may change in future funding rounds due to Congressional action so check the NOFA or contact a local HUD office for updated guidance on the renewal process.