Transition Project Requirements for the CoC Program Competition

A project applicant decides, with the approval of the CoC, to reallocate one or more projects in their entirety to create a new project. The same applicant submits a New Project Application for the project and indicates that the application is requesting funds as a "Transition Project."

The transition project provides the applicant with an opportunity to create a new project with a new project component and to use a portion of the project's funds to wind down the reallocated projects and ramp up the new project.

If awarded, the recipient may use up to 50 percent of the budget for eligible costs for the project(s) that was eliminated. The remainder of the project budget must be used for the new project.

Unlike regular new projects, the operating start date of the transition project's grant will continue from the end of the reallocated project's grant. In other words, it will start the day after the end of the grant term for the expiring grant. There will be no lag time during which funding would not be available for the reallocated project, which eases winding down the project.

The primary requirements are as follows:

• Projects must be reallocated in their entirety; there are no partial reallocations allowed when applying for a transition project.
• The project application budget must reflect only the new project. If awarded, the HUD Field Office will work with the recipient to determine how the funds will be used to wind down the reallocated project(s).
• No more than 50 percent of the new project's budget may be used for activities eligible for the reallocated project.
• The reallocated project(s) must be fully transitioned within the one grant year.

• PH-PSH
• PH-RRH
• Joint TH and PH-RRH
• Dedicated HMIS
• SSO-CE

There are two situations when a transition project does not work the way it was intended.

• If HUD awards a partial award, the recipient would not be permitted to expend any funds on activities for the reallocated project.
• If HUD determines a new project submitted as a transition grant does not qualify but meets all other new project requirements, HUD may award the project as a new non-transition grant project. If this occurs:
  • The recipient will not be permitted to expend any funds on the reallocated project.
  • The recipient will not be permitted to spend funds on the new project until the new project's grant agreement is executed by the local HUD field office.

Unlike a transition grant, the operating start date for the new project would not continue from the expiring grant's end date. For new projects, the operating start date is the first day in the month in which the recipient or subrecipient begins incurring eligible costs. The date is set by the recipient at the time of the first draw down.

In the New Project Application on screen 3A. Project Details, project applicants will answer a question about transition grants.

Question 7 asks if the application is requesting to transition from one or more eligible renewal projects that had been previously awarded to the project applicant and are now being fully eliminated through reallocation.