Implementing the Proposed Project: Overview

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After projects have been awarded SHP funding, HUD will execute a grant agreement with each grantee. The grantee's application becomes a part of their contract with HUD to provide assistance to homeless persons in the manner described in their application. Therefore, grantees must adhere to the project as described in their application, including providing all of the supportive services specified in their application and serving the same number of homeless persons indicated in their application, within the term of the grant.

HUD may deobligate all or parts of a grant for acquisition, rehabilitation, or new construction if the total costs for these activities is less than the total costs anticipated in the application or if the proposed activities for which funding was approved are not begun within three months or residents do not begin to occupy the facility within nine months after grant execution. In addition, HUD may deobligate amounts for annual leasing costs, operating costs or supportive services in any year if the actual costs for these activities is less than the total costs anticipated in the application or if the proposed supportive housing operations are not begun within three months after the units are available for occupancy. HUD wants to ensure that SHP funds are expeditiously used to assist homeless persons.

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