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(2) Organizations that are directly funded under the Supportive Housing Program may
<br /> not engage in inherently religious activities, such as worship, religious instruction, or
<br /> proselytization as part of the programs or services funded under this part. If an organization
<br /> conducts such activities, the activities must be offered separately, in time or location, from the
<br /> programs or services funded under this part, and participation must be voluntary for the
<br /> beneficiaries of the HUD-funded programs or services.
<br /> (3 ) A religious organization that participates in the Supportive Housing Program will
<br /> retain its independence from Federal, State, and local governments, and may continue to carry out
<br /> its mission, including the definition, practice, and expression of its religious beliefs, provided that
<br /> it does not use direct Supportive Housing Program funds to support any inherently religious
<br /> activities, such as worship, religious instruction, or proselytization. Among other things, faith-
<br /> based organizations may use space in their facilities to provide Supportive Housing Program-
<br /> funded services, without removing religious art, icons, scriptures, or other religious symbols. In
<br /> addition, a Supportive Housing Program-funded religious organization retains its authority over
<br /> its internal governance, and it may retain religious terms in its organization ' s name, select its
<br /> board members on a religious basis, and include religious references in its organization' s mission
<br /> statements and other governing documents .
<br /> (4) An organization that participates in the Supportive Housing Program shall not, in
<br /> providing program assistance, discriminate against a program beneficiary or prospective program
<br /> beneficiary on the basis of religion or religious belief.
<br /> (5) Program funds may not be used for the acquisition, construction, or rehabilitation of
<br /> structures to the extent that those structures are used for inherently religious activities . Program
<br /> funds may be used for the acquisition, construction, or rehabilitation of structures only to the
<br /> extent that those structures are used for conducting eligible activities under this part. Where a
<br /> structure is used for both eligible and inherently religious activities, program funds may not
<br /> exceed the cost of those portions of the acquisition, construction, or rehabilitation that are
<br /> attributable to eligible activities in accordance with the cost accounting requirements applicable
<br /> to Supportive Housing Program funds in this part. Sanctuaries, chapels, or other rooms that a
<br /> Supportive Housing Program-funded religious congregation uses as its principal place of worship,
<br /> however, are ineligible for Supportive Housing Program-funded improvements. Disposition of
<br /> real property after the term of the grant, or any change in use of the property during the term of
<br /> the grant, is subject to government- wide regulations governing real property disposition (see 24
<br /> CFR parts 84 and 85).
<br /> (6) If a State or local government voluntarily contributes its own funds to supplement
<br /> federally funded activities, the State or local government has the option to segregate the Federal
<br /> funds or commingle them . However, if the funds are commingled, this section applies to all of the
<br /> commingled funds .
<br /> (c) Participant control ofsite. Where an applicant does not propose to have control of a
<br /> site or sites but rather proposes to assist a homeless family or individual in obtaining a lease,
<br /> which may include assistance with rent payments and receiving supportive services, after which
<br /> time the family or individual remains in the same housing without further assistance under this
<br /> part, that applicant may not request assistance for acquisition, rehabilitation, or new construction .
<br /> [58 FR 13871 , Mar. 15 , 1993 , as amended at 59 FR 36892, July 19, 1993 ; 68 FR 56407, Sept. 30,
<br /> 2003 ]
<br /> § 583. 155 Consolidated plan.
<br /> (a) Applicants that are States or units of general local government. The applicant must
<br /> have a HUD-approved complete or abbreviated consolidated plan, in accordance with 24 CFR
<br /> part 91 , and must submit a certification that the application for funding is consistent with the
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