35
Section 7: Renewals and Extensions
This section describes the circumstances under which renewals and extensions may be granted
and the requirements for obtaining a renewal or extension. Important information on renewals
and extensions is contained in the annual Continuum of Care NOFA and accompanying
application kit, so it is important to review those resources carefully before preparing a funding
application.
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: Program Overview
). 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.