SHP Eligibility Requirements

The former Supportive Housing Program (SHP) has been consolidated with other HUD competitive homelessness assistance grant programs, including the Shelter Plus Care (SPC) Program and the Section 8 Moderate Rehabilitation/Single Room Occupancy (SRO) Program, to create the new Continuum of Care (CoC) Program. The eligibility requirements below pertain to the former Supportive Housing Program. Please ensure you have read the CoC Program interim rule.

Eligible Beneficiaries

SHP helps homeless people who are sleeping in places not meant for human habitation, such as cars, parks, sidewalks, and abandoned buildings, or those who are living in transitional housing or sleeping in an emergency shelter as a primary nighttime residence.

On December 5, 2011, HUD published the final rule on the Definition of Homeless in the Federal Register. As this is the final rule, there is not a further comment period for the definition of homeless. The final rule on the Definition of Homeless went into effect on January 4, 2012. The final rule applies to all recipients of Emergency Solutions Grants (ESG) program funds as well as all recipients of CoC Program funding awarded through the FY2011 and 2012 CoC Program Competition. Recipients of the former Emergency Shelter Grants program funds, as well as existing SHP and S+C projects that did not renew in the FY2011  or FY2012 CoC Competitions, must continue to use the definition of homeless in effect prior to January 4, 2012, which is attached to their current grant agreements.

Eligible Activities

SHP funding is generally available to support the following activities in supportive housing projects:

Acquisition and Rehabilitation

Many applicants propose to purchase property that will be used to provide supportive housing to homeless persons. In each project, the SHP grant for acquisition and rehabilitation is available up to between $200,000 and $400,000 per structure, depending on the area. Consult the HUD Field Office to determine the acquisition and rehabilitation cost limits for your area. The recipient must match the funds received for this purpose with money from other sources.

New Construction

Proposals to build structures in which homeless persons will reside were also funded under SHP. Grants for new construction are limited to $400,000 per structure, regardless of where the project is located. If the applicant is also acquiring the land in tandem with the new construction, the $400,000 limit applies to both activities. The recipient must match the funds received for this purpose with money from other sources.


Grantees may lease structures to provide supportive housing or supportive services, or individual units.

Supportive Services

Services directly facilitating the movement of homeless participants to independent living are eligible for SHP support, such as outreach, case management, childcare, job training/placement, health care, and transportation. SHP grantees must share in the costs of supportive services, including a cash match of the total services budget. Grantees are encouraged to augment the support received in this activity via mainstream resources like Medicaid or Supplemental Security Income (SSI).

Operating Costs

Costs associated with the physical, day-to-day operations of a supportive housing facility and requiring cash payments are eligible, such as maintenance and repair, operations staff, utilities, equipment, supplies, insurance, food, relocation, and furnishings. In addition, grantees must provide a cash contribution equal to 25 percent of the total operating costs budget.

Project Administrative Costs

Up to 5 percent of any grant awarded under SHP may be used for paying the costs of administering the assistance (i.e., the costs associated with reporting to HUD). Applicants and project sponsors must work together to determine a fair plan for distributing administrative funds between applicant and project sponsor.

Development or Implementation of Homeless Management Information Systems (HMIS)

These are now categorized as separate, eligible activity with a separate budget line item in the SHP budget summary. Grantees must contribute 20 percent of the total HMIS budget.

Grant Size and Duration

The term of new SHP grants was 3 years. Renewal grants may be a 1 year term.

Requirements and Responsibilities

Specific performance measures must be established population to be served. Grant recipients are required to regularly monitor their clients' progress in meeting performance measures. In addition to recordkeeping purposes, HUD requires recordkeeping and annual progress reports. Grantees are also expected to make changes in their program or adjust performance measures in response to ongoing evaluation of their progress.