Beginner-friendly project guide

Changing an existing grant into a different housing or service model

Transition Grant (Transition)

A transition grant is a one-year path for changing an eligible renewal project from one component to another through the proper process. It is for current recipients with a clear reason to change models. It is not a shortcut for a brand-new applicant.

What problem does this solve?

Sometimes an existing project no longer fits local needs, but the funding could support a better model if changed correctly. Transition grants create a structured way to move from the old model to the new one.

This may be a good fit if...

  • You are a current recipient with an eligible renewal project.
  • You can explain why the current model should change.
  • You have a clear plan for participant continuity and service transition.
  • You understand the new component and can manage it.

This may not be the best fit if...

  • You are a new applicant without an existing eligible grant.
  • You are trying to change models without a participant transition plan.
  • The new model is not clearly eligible.
  • A new project, expansion, or renewal path would be more accurate.

What would the program actually do?

  1. The recipient identifies why the current project model should change.
  2. Staff plan how current participants will be protected during the transition.
  3. The application explains the old grant, the new model, and the one-year change process.
  4. If approved, the organization implements the new model while maintaining continuity.

What can funding usually support?

  • Eligible costs tied to the new approved project component.
  • Project administration for the transition grant.

What should you have ready?

  • Is your current renewal eligible for a transition grant?
  • Can you explain why the change is needed?
  • Can you protect current participants during the change?
  • Do you have capacity to operate the new component?
  • Have you checked any restrictions for YHDP or other specialized grants?

Think this might fit?

Start with a Letter of Intent

If you operate an existing grant that may need to change component, submit a Letter of Intent and describe the transition plan.

Source note: FY 2026 NOFO Section II.B.3.k