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rental assistance if they move. Rental subsidies are provided to section , except that the housing may not be currently receiving the owner for a period of either five or ten years . To qualify Federal funding for rental assistance or operating costs under for ten years of rental subsidies, the owner must complete at other HUD programs. Recipients may design a housing program least $3 ,000 of eligible rehabilitation for each unit (including that includes a range of housing types with differing levels of the unit's prorated share of work to be accomplished on supportive services. Rental assistance may include security common areas or systems), to make the structure decent, safe deposits on units in an amount up to one month's rent. and sanitary. This rehabilitation must be completed with in 12 (b) Amount of the grant. The amount of the grant is based on the months of the grant award . number and size of units proposed by the applicant to be assisted (c) Sponsor-based rental assistance (SRA). Sponsor-based over the grant period . The grant amount is calculated by rental assistance provides grants for rental assistance through multiplying the number of units proposed times the applicable contracts between the grant recipient and sponsor Fair Market Rent (FMR) of each unit times the term of the grant. organizations. A sponsor may be a private, nonprofit (c) Payment ofgrant. (1 ) The grant amount will be reserved for organization or a community mental health agency established rental assistance over the grant period . An applicant's grant as a public nonprofit organization. Participants reside in request is an estimate of the amount needed for rental assistance. housing owned or leased by the sponsor. The term of the grant Recipients will make draws from the reserved amount to pay the between HUD and the grant recipient for SRA is five years. actual costs of rental assistance for program participants . For (d) Moderate rehabilitation for single room occupancy TRA, on demonstration of need, up to 25 percent of the total dwellings (SRO). ( 1 ) The SRO component provides grants for rental assistance awarded may be spent in any one of the five rental assistance in connection with the moderate years, or a higher percentage if approved by HUD, where the rehabilitation of single room occupancy housing units . applicant provides evidence satisfactory to HUD that it is Resources to initially fund the cost of rehabilitating the financially committed to providing the housing assistance dwellings must be obtained from other sources . However, the described in the application for the full five-year period . rental assistance covers operating expenses of the rehabilitated (2) A recipient must serve at least as many participants as SRO units occupied by homeless persons, including debt shown in its application . Where the grant amount reserved for service to retire the cost of the moderate rehabilitation over a rental assistance over the grant period exceeds the amount that ten-year period . will be needed to pay the actual costs of rental assistance, due to (2) SRO housing must be in need of moderate rehabilitation such factor as contract rents being lower than FMRs and and must meet the requirements of 24 CFR 882 . 803 (a). Costs participants are being able to pay a portion of the rent, recipients associated with rehabilitation of common areas may be may use the remaining funds for the costs of administering the included in the calculation of the cost for assisted units based housing assistance, as described in paragraph (e) of this section , on the proportion of the number of units to be assisted under for damage to property, as described in paragraph (f) of this this part to the total number of units . section, for covering the costs of rent increases, or for serving a (3 ) SRO assistance may also be used for efficiency units great number of participants . selected for rehabilitation under this program, but the gross (d) vacancies. ( 1 ) If a unit assisted under this part is vacated rent (contract rent plus any utility allowance) for those units before the expiration of the occupancy agreement described in will be no higher than for SRO units (i .e. , 75 percent of the 0- § 582 .315 of this part, the assistance for the unit may continue for bedroom Moderate Rehabilitation Fair Market Rent). a maximum of 30 days from the end of the month in which the (4) The requirements regarding maintenance, operation , and unit was vacated, unless occupied by another eligible person . No inspections described in 24 CFR 882 . 806(b)(4) and 882 .808(n) additional assistance will be paid until the unit is occupied by must be met. another eligible person . (5) Governing regulations . Except where there is a conflict (2) As used in this paragraph (d), the term "vacate" does not with any requirement under this part or where specifically include brief periods of inpatient care, not to exceed 90 days for provided, the SRO component will be governed by the each occurrence. regulations set forth in 24 CFR part 882, subpart H. (e) Administrative costs. ( 1 ) Up to eight percent of the grant (3) The value of time and services contributed by volunteers at amount may be used to pay the costs of administering the the rate of $ 10 .00 an hour, except for donated professional housing assistance. Recipients may contract with another services which may be counted at the customary charge for the entity approved by HUD to administer the housing assistance. service provided (professional services are services ordinarily (2) Eligible administrative activities include processing rental performed by donors for payment, such as the services of health payments to landlords, examining participant income and professionals, that are equivalent to the services they provide in