Renovation, Rehabilitation, and Conversion

What do I need to know about renovation, rehabilitation, and conversion activities under the Emergency Shelter component?

Under the Emergency Shelter program component, recipients or subrecipients may use funds for renovation, rehabilitation, or conversion of a building to serve as an emergency shelter. Sites that use ESG funds for one of these purposes must serve homeless persons for at least 3 or 10 years, depending on the cost and type of renovation (major rehabilitation, conversion, or other renovation).

Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

Activity

Use Requirement

Building Valuation

Major Rehabilitation

10 years*

If rehabilitation costs exceed 75% of the value of the building before rehab

Conversion

10 years*

If rehabilitation costs exceed 75% of the value of the building after rehab

Other Renovation

3 years

If rehabilitation costs are 75% or less of the value of the building before rehab

*Recorded deed or use restriction required.

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Property acquisition and new construction are ineligible uses of ESG funds.

For more information on renovation, rehabilitation, and conversion activities under the Emergency Shelter component, please refer to § 576.102(a)(2) in the ESG Interim Rule, the ESG Program Components Virtual Binder, and the following resources: