[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR583.235]

[Page 253-254]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 583_SUPPORTIVE HOUSING PROGRAM--Table of Contents
 
              Subpart C_Application and Grant Award Process
 
Sec. 583.235  Renewal grants.

    (a) General. Grants made under this part, and grants made under 
subtitles C and D (the Supportive Housing Demonstration and SAFAH, 
respectively) of the Stewart B. McKinney Homeless Assistance Act as in 
effect before October 28, 1992, may be renewed on a noncompetitive basis 
to continue ongoing leasing, operations, and supportive services for 
additional years beyond the initial funding period. To be considered for 
renewal funding for leasing, operating costs, or supportive services, 
recipients must submit a request for such funding in the form specified 
by HUD, must meet the requirements of this part, and must submit 
requests within the time period established by HUD.
    (b) Assistance available. The first renewal will be for a period of 
time not to exceed the difference between the end of the initial funding 
period and ten years from the date of initial occupancy or the date of 
initial service provision, as applicable. Any subsequent renewal will be 
for a period of time not to exceed five years. Assistance during each 
year of the renewal period, subject to maintenance of effort 
requirements under Sec. 583.150(a) may be for:
    (1) Up to 50 percent of the actual operating and leasing costs in 
the final year of the initial funding period;
    (2) Up to the amount of HUD assistance for supportive services in 
the final year of the initial funding period; and
    (3) An allowance for cost increases.
    (c) HUD review. (1) HUD will review the request for renewal and will 
evaluate the recipient's performance in previous years against the plans 
and goals established in the initial application for assistance, as 
amended. HUD will approve the request for renewal unless the recipient 
proposes to serve a population that is not homeless, or the recipient 
has not shown adequate progress as evidenced by an unacceptably slow 
expenditure of funds, or the recipient has been unsuccessful in 
assisting participants in achieving and maintaining independent living. 
In determining the recipient's success in assisting participants to 
achieve and maintain independent living, consideration will be given to 
the level and type of problems of participants. For

[[Page 254]]

recipients with a poor record of success, HUD will also consider the 
recipient's willingness to accept technical assistance and to make 
changes suggested by technical assistance providers. Other factors which 
will affect HUD's decision to approve a renewal request include the 
following: a continuing history of inadequate financial management 
accounting practices, indications of mismanagement on the part of the 
recipient, a drastic reduction in the population served by the 
recipient, program changes made by the recipient without prior HUD 
approval, and loss of project site.
    (2) HUD reserves the right to reject a request from any organization 
with an outstanding obligation to HUD that is in arrears or for which a 
payment schedule has not been agreed to, or whose response to an audit 
finding is overdue or unsatisfactory.
    (3) HUD will notify the recipient in writing that the request has 
been approved or disapproved.

(Approved by the Office of Management and Budget under control number 
2506-0112)