HUD Offers Advice on renewals waiting on the 2006 Awards

The SNAPS Office is actively working on resolving all of the problems that have contributed to the late announcement of the 2006 CoC grant awards in a timely manner. The actual date of announcement is still not firm. We recognize that this has created a hardship for Grantees whose grants expire in the first quarter of the calendar year. To help S+C and SHP Grantees whose grants expire between January 1, 2007 and March 31, 2007 SNAPS is providing the following options. Please contact your local Field Offices to discuss these options before filing out any forms.

For SHP and S+C Grants With Remaining HUD Funds

SNAPS is offering the option for Grantees in this classification to enter into grant amendments extending the term of the grant until March 31, 2007 and allowing the Grantee to use their remaining funds for eligible costs during the extension period by executing a Grant Amendment. Please use the amendment form “Attachment A” that is part of this memorandum. The benefit of this option is that the start date of each subsequent renewal will be moved to April 1, giving you, the Grantee added time in future years between announcement of award and the end of the prior grant term. However, because of workload issues it may not be practical for some Field Offices to amend every grant. Therefore some may choose to exercise discretion and allow Grantees that have leftover funds to continue using them for eligible expenditures in the first quarter, but after the end of the grant term, without a Grant Amendment. It should be noted that all grant amendments that are executed should be forwarded to Fort Worth.

In addition, please note that if an SHP Grantee wants to move more than 10 percent of funds from one eligible activity to another, the grant will have to be amended, using the above referenced amendment form “Attachment A”. Read the Recital and Agreements sections of the amendment carefully. They require you to insert the expiration date of the original grant agreement, the amount of grant funds needed for the temporary grant term and their distribution between budget line items. You will also need to specify how much is to be moved from one line item to another. Please refer to “Attachment C” for additional instructions.

Note that section 2 of the SHP Amendment specifies that the budget line item changes apply only during the extended term. However, if and when the grant is renewed, its budget will be based on the grant’s original budget line items.

Because S+C funds may only be used for rental assistance and administration costs do not appear as a budget line item, it will not be necessary to do amendments to reprogram budget line items for S+C grants. However, if you want to move the start date of your S+C grants to April 1, 2007, you should use “Attachment B” to amend the grant and accomplish that goal.

Remember, for both SHP and S+C, if no amendment extending the term is executed, the term of any renewal grant will continue to have the same start and end dates as the original grant.

For SHP and S+C Grants Without Remaining Grant Funds

Grantees that have no remaining grant funds may continue the project by using other resources to cover eligible expenses incurred after the grant’s official expiration date. If the project is selected for renewal in the 2006 CoC competition, the start date of the renewal grant agreement will continue to be the previous grant’s expiration date. This will allow you to reimburse the grant for eligible expenditures made after the expiration date and before the renewal grant agreement was signed. However, as of the date of this memorandum, renewal is not guaranteed. Â

Please note, once renewal awards are announced, we have instructed Field Offices to give first priority to executing renewal grants for expiring grants with no funds remaining. Execution of renewal grants for expiring grants that have funds remaining shall have second priority.

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