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(2) Leasing individual units. Where grants are used to pay rent for individual housing <br />units, the rent paid must be reasonable in relation to rents being charged for comparable units, <br />taking into account the location, size, type, quality, amenities, facilities, and management <br />services. In addition, the rents may not exceed rents currently being charged by the same owner <br />for comparable unassisted units, and the portion of rents paid with grant funds may not exceed <br />HUD -determined fair market rents. Recipients may use grant funds in an amount up to one <br />month's rent to pay the non -recipient landlord for any damages to leased units by homeless <br />participants. <br />[58 FR 13 87 1, Mar. 15, 1993, as amended at 59 FR 36891, July 19, 1994] <br />§ 583.120 Grants for supportive services costs. <br />(a) General. HUD will provide grants to pay (as described in § 583.130 of this part) for <br />the actual costs of supportive services for homeless persons for up to five years. All or part of the <br />supportive services may be provided directly by the recipient or by arrangement with public or <br />private service providers. <br />(b) Supportive services costs. Costs associated with providing supportive services include <br />salaries paid to providers of supportive services and any other costs directly associated with <br />providing such services. For a transitional housing project, supportive services costs also include <br />the costs of services provided to former residents of transitional housing to assist their adjustment <br />to independent living. Such services may be provided for up to six months after they leave the <br />transitional housing facility. <br />[58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36891, July 19, 1994] <br />§ 583.125 Grants for operating costs. <br />(a) General. HUD will provide grants to pay a portion (as described in § 583.130) of the <br />actual operating costs of supportive housing for up to five years. <br />(b) Operating costs. Operating costs are those associated with the day -today operation of <br />the supportive housing. They also include the actual expenses that a recipient incurs for <br />conducting on-going assessments of the supportive services needed by residents and the <br />availability of such services; relocation assistance under § 583.310, including payments and <br />services; and insurance. <br />(c) Recipient match requirement for operating costs. Assistance for operating costs will <br />be available for up to 75 percent of the total cost in each year of the grant term. The recipient <br />must pay the percentage of the actual operating costs not funded by HUD. At the end of each <br />operating year, the recipient must demonstrate that it has met its match requirement of the costs <br />for that year. <br />[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30, 1996; 65 FR 30823, May 12, <br />2000] <br />§ 583.130 Commitment of grant amounts for leasing, supportive services, and operating <br />costs <br />Upon execution of a grant agreement covering assistance for leasing, supportive services, <br />or operating costs, HUD will obligate amounts for a period not to exceed five operating years. <br />The total amount obligated will be equal to an amount necessary for the specified years of <br />operation, less the recipient's share of operating costs. <br />(Approved by the Office of Management and Budget under OMB control number 2506-0112) <br />[59 FR 36891, July 19, 1994] <br />