Section S: Grant Extensions

Information by State  Print version   Shp Deskguide Contents   Introduction   Detailed Table of Contents   A. Program Goals   B. Eligible Participants   C. Program Components   D. Eligible Activities and Match   E. Reserved   F. Important Dates   G. Conditional Approval and Program Cycle   H. Site Control Requirements   I. Grantee Responsibilities   J. Reserved for Project Financing   K. Calculating Resident Rents   L. Reserved   M. Reserved for Financial Management   N. Annual Progress Reports   O. Reserved for Compliance Monitoring   P. Technical Assistance   Q. Project Renewals   R. Grant Amendments   S. Grant Extensions   T - X Reserved   Y. Spending and Recaptures   Z. Reserved for Closeouts

	Jump To...
Extension Provisions   Extension Period Resources   Requesting an Extension   No Extensions Within the Calendar Year

As a reminder, extensions are a way to manage renewals; projects cannot be extended merely to spend the remaining grant funds.

Extension Provisions

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 be extended if:

1. the renewal project fails to receive funding in a competition and wants to become eligible to apply again in the next competition;
   
2. the grantee of a project currently eligible for renewal fails to apply in a competition but wants to be eligible to apply in the next competition; or
   
3. there is an overabundance of renewal requests in the community in a particular year.

Grant terms may not be extended for more than one year at a time, although there is no limit on the number of extensions a grant can receive. 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. For example, if a grant term ends in November 2001, it need only be extended for 2 months to carry the grant term into January 2002.

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.

Financial Resources to be Used During Extension Period

In order to continue operating an SHP project during the extension period, you may use any type of funds, i.e. Federal, State, local or private funds, and still compete in the next competition. While normally the use of State or local government funds in a project would prevent future Federal funding, as a replacement HUD allows the use of State or local government funds as interim or emergency funding when they are used to continue an SHP project which was unsuccessful in seeking a renewal. However, such projects must still be approved for an extension so that the term will then expire in the next calendar year.

How to Request an Extension

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

1. Determine when the grant expires. You may contact your HUD field staff to verify the expiration date.
   
   
2. Based on the expiration date, determine if there are enough funds to carry you through the operating year and the proposed extension period.
   
   
3. If more funds are needed, identify available funding resources and secure these funds.
   
   
4. 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.

No 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 cannot 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.

 Back to SHP Program Page