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CHAPTER 7. CHSP GRANT AMENDMENTS AND EXTENSIONS

7.1 OVERVIEW

This chapter describes the processes for amending and extending

CHSP grants. CHSP grants may be modified or amended at any time

during the grant period for financial or other material reasons,

including changes in the grantee\'s program scope, objectives or

timetable. CHSP grants may be extended at the end of the grant

period, for any period of time, subject to the availability of

funds. However, extensions may or may not require additional

funding, depending on whether a grantee has unexpended dollars

from the prior grant period.

SECTION 1: GRANT AMENDMENTS

7.2 TYPES OF GRANT AMENDMENTS

A grantee may request a modification or amendment to a CHSP

grant, and if HUD approves the request, the grant may be modified

at any time. Amendments that result in a material change must be

executed by both the Grant Officer and the grantee.

Examples of material changes that require a grant amendment

include, but are not limited to:

1\. Addition of funds from the CHSP reserve, if available;

2\. Addition or deletions of line items:

3\. Cumulative changes in the budget line items of more than ten

percent of the total approved budget amount for grants over

\$100,000;

4\. Changes from the original budget estimate that will change

the amount of grantee match, participant fees or HUD\'s

share; and

5\. Changes in the grantee\'s program scope, objectives or

timetable.

An administrative amendment, such as a change in the GTR, does

not require execution by the grantee and may be issued

unilaterally by the Grant Officer.

7.3 GRANTEE REQUESTS

Grantees must request grant amendments in writing. The request

must contain:

1\. An explanation of the modification;

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2\. A justification for it; and,

3\. Funding amounts, including revised budgets, using the

Summary Budget (form HUD-91180) (Appendix 16), Annual

Program Budget (form HUD-91178-A) (Appendix 18) and any

other information required by HUD.

NOTE: The GTR should check with the Grants Team to see if

funds are available before processing any requests for

additional funding (i.e., the HUD-718). If HUD\'s grant is

increased, the grantee\'s match and participant fees must be

increased in accordance with HUD/RHS requirements.

7.4 HUD AND RHS PROCESSING

a\. General

The GTR must begin processing the grantee\'s amendment

request within 10 work days of receipt from the CHSP

grantee. The GTR should review the request to confirm:

\(1\) The requested amendment is permissible under the CHSP.

\(2\) The grantee has new match letters from third parties

certifying additional match amounts for each

new/expanded service and sufficient participant fees as

required under the CHSP; and

\(3\) The justification provided meets the CHSP requirement.

An example of acceptable justification would be

documented larger salary increases for other employees

of the facility or high increases in the cost of food

or services billed to the CHSP by third party

providers.

Unacceptable increases would be cost increases based on

generally increased spending above the prior year\'s

approved budget level or additional participants

serviced above the maximum number stated in the grant

agreement.

For a RHS project, the RHS GTR will review the grantee\'s

request, prepare the SF-718, if appropriate, and the SF-1

044 amendment and forward the package to the HUD state or

area office Director of Housing or Director of Multifamily

Housing, (i.e., the Grant Officer) as appropriate, for

further processing and approval.

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b\. Processing Amendments for Additional Funds

Since an amendment to the grant for additional funding

requires a request for the assignment of additional funds,

the Grant Officer should prepare a memorandum to

Headquarters to ask for the additional funds according to

the fund assignment processing instructions described in

Paragraph 7.7.

SECTION 2: GRANT EXTENSIONS

7.5 TYPES OF GRANT EXTENSIONS

CHSP grants are normally extended indefinitely under the same

grant instrument and grant number. However, grant extension

processing procedures for grants funded under the CHSP Act of

1978 may vary from those for grants initially funded under

Section 802 of the National Affordable Housing Act (NAHA) because

differences in the grant extension periods necessitate different

grantee submission requirements.

CHSP grants are extended on either a cost or a no-cost basis (or

some combination) for a specified period of time, generally 12

months or longer. All extensions will be in increments set by

HUD Headquarters.

a\. Cost Extensions are used when additional funding is required

to meet the associated grant costs.

b\. No-Cost Extensions use the grantee\'s unexpended dollars from

the prior grant Period to meet associated grant costs,

without the provision of additional new funding.

c\. Cost/No-Cost Extensions use both leftover and new funding.

Normally, grantees request an extension at the current operating

level, plus an allowance for Inflation. Additional funding above

the inflation allowance may be requested with appropriate

justification.

7.6 EXTENSIONS OF GRANTS FUNDED UNDER THE 1978 ACT

Grants funded under the 1978 CHSP Act are generally extended for

one or more years at a time. However, it is possible an

extension may be for less than 12 months, due to funding limits.

HUD Headquarters may issue a funding notice covering procedures

for that fiscal year.

a\. Grantee Actions for 12-Month Extensions

Grantees must submit an extension package to the HUD State

or Area Office at least 60 days before the expiration date

of the current grant period. The grantee\'s extension

request must contain at,least the following components:

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\(1\) Transmittal Letter

\(2\) Budget Forms

\(3\) Narrative documentation for any major changes in the

program service levels or increases above the

approvable inflationary level.

\(4\) Documentation of match for next funding period, as

appropriate.

b\. HUD State and Area Office Actions for 12-Month Extensions

The HUD GTR must:

\(1\) Review the extension materials for accuracy and request

corrections/ resubmissions from grantees as

appropriate. Compare materials with most recently

submitted annual report (HUD-90006) for consistency.

Fourteen (14) calendar days are allowed for grantees to

submit clarifications/corrections.

\(2\) Prepare a short transmittal memorandum to the Grant

Officer requesting approval and/or explaining any other

relevant details; and, attach the Congregate Housing

Services Program Grantee Review Form (HUD-90003) (if

done within the prior three year period) to the

approvable grantee extension package. REMINDER: GTR

MUST retain a copy of the extension package for the

GTR\'s files.

\(3\) Prepare the Funds Reservation and Contract Authority

(HUD-718) (see sample and instructions at Appendix 5).

\(4\) Prepare the Grant Assistance Award Amendment (HUD-1044)

(see sample and instructions at Appendix 6).

\(5\) Retain the grantee extension package and forward to the

FAD the HUD-718 (original and 1 copy) and a brief

memorandum requesting the reservation of funds.

NOTE: The FAD cannot process the HUD-718 to reserve the

extension dollars for individual grants unless the fund

assignment has been previously processed as required. (See

Section 7.7 (f).

\(6\) After the FAD enters the dollar amount into the Project

Accounting System (PAS) and certifies the availability

of funds by signing item 10 of the HUD-718, the FAD

retains the original HUD-718 and returns a copy to the

GTR.

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\(7\) The GTR then signs the transmittal note and forwards

the grantee\'s transmittal letter, budget forms and

documentation of match, a copy of the signed HUD-718

and the HUD-1044 to the Grant Officer.

\(8\) The Grant Officer retains the grantee documents as file

documentation and sends the HUD-1044 and attachments to

the grantee for signature.

\(9\) The authorized official of the grantee signs the HUD-1044

and returns it to the Grant Officer by overnight

mail.

\(10\) The Grant Officer signs the HUD-1044, thereby executing

the grant document and obligating the funds, retains

the original in the Grant Officer files; and,

distributes conformed copies as follows:

\-- One conformed copy to the grantee.

\-- A copy to the GTR and the FAD

c\. Multi-year Extensions of Grants Funded under the 1978 Act

When multi-year grant extensions are in place, grantees must

only complete the processing described in Paragraph 7.7

below to advise HUD whether the funds approved for the

coming year are sufficient or must be modified. HUD state

and area office processing is the same as described in

Paragraph 7.7.

7.7 GRANTS INITIALLY FUNDED IN FISCAL YEAR 1993 OR LATER

a\. General

HUD and RHS grantees initially funded since Fiscal Year

1993, were awarded grants for a five-year period with

approval to use HUD dollars one year at a time. Future year

approvals follow simplified annual extension procedure.

This procedure is necessary to allow the HUD state or area

office to enter the next annual increment of HUD funds into

LOCCS/BLI.

b\. Grantee Actions

\(1\) Grantees must notify in writing the HUD state or area

office or the RHS state office 60 days before the end

of each annual funding period whether the budget amount

approved in the grant agreement for the coming year is:

\(A\) sufficient to support program activities; or,

\(B\) must be modified to allow for a shift in budget

line items which will not change the budget total;

or,

\(C\) must be increased.

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If the budget must be increased or modified, the

grantee must include with the request a revised budget,

documentation and additional match/fees as appropriate

to support the need for the funding increase., (See

Paragraphs 7.3 and 7.4.)

\(2\) The grantee must also submit the semi-annual Financial

Status Report, SF-269, which closes the grantee\'s grant

year to document actual expenditure of HUD funds, match

and fees for the full grant year.

C. Grants That Do Not Require Budget Increases

When the grantee advises that the annual grant amount for

the coming year is sufficient and no change is needed; and,

the semi-annual SF-269 ending the grantee\'s grant year is

determined to be in compliance with program requirements,

and consistent with the most recently by submitted HUD-90006,

the HUD GTR must enter the grant amount for the

coming year into LOCCS/BLI for both HUD and RHS grants.

D. Grants That Require a Change in Budget Line Items

\(1\) The grantee may shift dollars among existing individual

budget line items, without prior approval, if such

changes are less than ten percent (10%) of the affected

line items for that year; and, do not change the total

dollar amount of the grant. The grantee should

document any revisions in its files and provide a copy

to the GTR. The GTR should enter any revisions into

the LOCCS, as appropriate.

\(2\) The grantee MUST provide written justification and

receive prior approval from the Grant Officer BEFORE

deleting or adding individual budget line items to the

grant.

e\. Grants That Require Budget Increases

\(1\) The GTR must contact the Headquarters Grants Team to

ask whether funds are available before proceeding. The

GTR must process the HUD-185 and the HUD-718 to assign

and reserve the additional funds before processing the

Form HUD-1044. This fund assignment process is

described in 7.7(f) below.

\(2\) Any additional funding must also have a corresponding

amount of grantee match; i.e., if the total budget

increase is \$10,000 for that year at least \$5,000 must

be match, \$1,000 must be participant fees, and no more

than \$4,000 may be HUD funding.

\(3\) When the grantee submits a revised budget,

justification for

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the increase and the semi-annual SF-269, the HUD/RHS

GTR then processes the request to amend the grant and

sends it to the grantee for signature.

The grantee must sign the grant amendment and return it

to the Grant Officer by overnight mail.

\(4\) The original executed amendment is filed in the Grant

Officer\'s official file. A conformed copy of the grant

award is sent to the FAD, the grantee and both HUD and

RHS GTRS, where appropriate.

\(5\) After receipt of a conformed grant amendment from the

Grant Officer, the HUD Housing GTR enters the revised

budget amount into LOCCS/BLI (for both HUD and RHS

grants).

f\. Fund Assignment Process

The fund assignment process should proceed as follows:

\(1\) Housing GTR(s) should jointly decide the funding

estimate needed for the year by totaling the annual

dollar amounts of all of his/her currently approved

grantee budgets and multiplying this sum times the

inflationary amount, according to instructions in the

annual funding notice.

\(2\) The Public Housing/Native American Programs GTR(s)

should provide this information as appropriate to

Housing.

\(3\) Housing will then prepare a memorandum from the Grant

Officer to the Director, Program Management Division in

the Office of Asset Management and Disposition at

Headquarters, to request the Funds Reservation and

Contract Authority (form HUD-185) for estimated funding

needed for the extension of all CHSP grants in that

state or area office for the year. This memorandum

will list each grantee by name, grant number, time

period for the extension and new dollars estimated.

\(4\) The Program Management Division will request the

Headquarters Funding Control Division to issue the

appropriate HUD-185 assigning funds to that state or

area office within 30 days of request.

\(5\) Housing staff must forward the HUD-185 to the Field

Accounting Division (FAD) to be filed.

NOTE: GTRs MUST complete this process during the first

quarter of the fiscal year so that CHSP funds for the year

are assigned to offices before individual grant extension

packages are scheduled for receipt and processing.

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