S+C Eligibility Requirements

The former Shelter Plus Care (S+C) Program has been consolidated with other HUD competitive homelessness assistance grant programs, including the Supportive Housing Program (SHP) 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 S+C Program. Please ensure you have read the CoC Program interim rule.

Eligible Beneficiaries

S+C assists hard to serve homeless individuals with disabilities and their families. These individuals primarily include those with serious mental illness, chronic problems with alcohol and/or drugs, and HIV/AIDS or related diseases.

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 FY 2011 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 FY 2011  or FY 2012 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 Applicants

Eligible applicants are States, local government units, and public housing agencies (PHAs).

Program Components

S+C includes four separate components.

Tenant-Based Rental Assistance (TRA) Component

An applicant under the TRA component may request funds to provide rental assistance on behalf of participants who choose their own housing units. In order to deliver supportive services in a convenient manner, applicants may require participants to live in specific structures or areas for part or all of their term of assistance. This assistance is provided for 5 years.

Applicants must contract with unit owners directly.

Sponsor-Based Rental Assistance (SRA) Component

Under the SRA component, an applicant may request a 5 year grant to provide rental assistance through a contract with a nonprofit organization or sponsor. The nonprofit organization may be a private nonprofit organization or a community mental health center established as a public nonprofit organization. The housing units to be used must be owned or leased by the sponsor.

After a grant is awarded, the sponsor may substitute one site for another to accommodate changing needs, provided the sponsor continues to own or lease the property and the grantee continues to serve the overall number of persons indicated in the approved application.

Project-Based Rental Assistance (PRA) Component

Applicants under this component may request grant funds to provide rental assistance through a contract with a building owner for an existing structure. An applicant must enter into a contract with the building owner for the full 5 or 10 year assistance period. The building owner must agree to accept eligible S+C participants during this time. Participants must live in an assisted unit on a specified property, and do not retain the rental assistance if they move.

Grantees may use ready-to-rent units or ones that need rehabilitation before they can provide a decent, safe, and sanitary place to live. In order to qualify for an initial 10 years termof rental subsidies, applicantsthe owner had to complete at least $3,000 of rehabilitation to each unit. Otherwise, assistance will extended through an initial 5 years term.

Moderate Rehabilitation for Single Room Occupancy Dwellings (SRO)

The SRO component provides rental assistance in connection with the moderate rehabilitation of single room occupancy units. The rental assistance covers operating expenses of the rehabilitated SRO units occupied by homeless individuals, including debt service to retire the cost of the rehabilitation. The initial term is for 10 years with subsequent renewal terms. Upon expiration SRO components will be renewed as project based rental assistance under the CoC program. 

Eligible Activities

Eligible activities for each of the four components are restricted to rental assistance for program participants and administrative costs associated with administering the rental assistance. With the exception of SRO, under which participants must reside in SRO or efficiency units, assisted units may be of any type, ranging from group homes to apartments. The applicant may also design a flexible program in which participants reside in a group setting with intensive supportive services and then progress to another setting, such as a shared apartment.

Under all components, supportive services must be available to meet the needs of participants and must be equal in value to the rental assistance. These must either be provided by the applicant or funded by the applicant and provided by a third party. Other Federal, State, or local sources, as well as private sources may fund the supportive services.