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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 of site. 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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