Site Control

Site control is another important part of the technical submission phase. For all grantees who are awarded SHP funding for acquisition, rehabilitation, new construction, or, in some cases, leasing, site control must be demonstrated before the expiration of one year after initial notification of grant award.

By law, failure to obtain site control within one year will result in the recapture or deobligation of all SHP funds previously awarded. HUD has no authority to waive the law and therefore cannot grant extensions beyond this one-year limit. However, site control is not required for leased housing that eventually will be controlled by the homeless families or individuals, where grant funds will be used solely to provide services at a site not operated by the project sponsor, or where grant funds will be used solely to lease a structure.

By law, a project sponsor must have site control within one year after HUD Headquarters notification to the selectee of its conditionally selected award 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
  • leasing of units that participants will not eventually control where SHP supportive services will be provided at the site

If site control is not obtained within one year of the award letter, HUD will withdraw its offer to enter into a grant agreement and the project will not receive funding. HUD cannot extend this deadline.

Documenting site control for acquisition, rehabilitation and new construction grants

A 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. To document site control, either of the following must be submitted: a deed or other proof of ownership; an executed lease agreement; an executed contract of sale; or an executed option to purchase or lease.

Documenting site control for projects requesting real property leasing funds

A project sponsor is not required to document site control if: (1) during the grant term, the lease will be given to the project participants (i.e., the homeless persons will eventually control the units); and/or (2) the SHP request is just for leasing (i.e., the request is not also for other SHP-related activities for which site control is needed. However, if neither of the above conditions apply, site control must be documented in the form of an executed lease agreement or an executed option to lease.

For project sponsors requesting renewal funding for an existing SHP project, the only documentation of site control required is a certification by the sponsor that it currently has an executed lease agreement for the property(ies) in use to house and/or provide services to homeless persons. A site control certification form for renewals is located in the leasing section of the SHP technical submission document.

Documenting site control for projects requesting supportive services funds

A 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 or other proof of ownership, an executed option to purchase or lease, or an executed contract of sale.

For project sponsors requesting renewal funding for an existing SHP project, the only documentation of site control required is a certification by the sponsor that it currently has a deed or other proof of ownership, or an executed lease agreement for the property(ies) in use to provide services to homeless persons. A site control certification form for renewals is located in the leasing section of the SHP technical submission document.

Documenting site control for projects requesting operating funds

A 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 or other proof of ownership, an executed option to purchase or lease, or an executed contract of sale.

For project sponsors requesting renewal funding for an existing SHP project, the only documentation of site control required is a certification by the sponsor that it currently has a deed or other proof of ownership, or an executed lease agreement for the property(ies) in use to provide housing for homeless persons. A site control certification form for renewals is located in the leasing section of the SHP technical submission document.