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A TRUE COPY t i� y. o. t } `ony;: y� ' s • ;i1CERTIFICATION ON LAST PAGE ss , ;� tt3i"1a J . R . SMITH , CLERK (7) Program income. Occupancy charges and rent collected from program participants are program income and may be used as provided:under §578.97. (8) Transition. Beginning in the first year awards are made under the Continuum of Care program, renewals of grants for leasing funds entered into under the authority of title N, subtitle D of the Act as it existed before May 20, 2009, will be renewed either as grants for leasing or as rental assistance, depending on the characteristics of the project.-Leasing funds will be renewed as rental assistance if the funds are used to pay rent on units where the lease is between the program participant and the landowner or sublessor. Projects requesting leasing funds will be renewed as leasing if the funds were used to lease a unit or structure and the lease is between the recipient or subrecipient and the landowner. § 578.51 Rental assistance. (a) Use. ( 1 ) Grant funds may be used for rental assistance for homeless individuals and families. Rental assistance cannot be provided to a program participant who is already receiving rental assistance, or living in a housing unit receiving rental assistance or operating assistance through other federal, State, or local sources. (i) The rental assistance may be short-tenor, up to 3 months of rent, medium-term, for 3 to 24 months of rent; or long-term, for longer than 24 months of rent and must be administered in accordance with the policies and procedures established by the Continuum as set forth in §578.7 (a)(9) and this section. (ii) The rental assistance may be tenant-based, project-based, or sponsor-based, and may be for traiisitional or permanent housing. (2) Grant funds may be used for security deposits in an amount not to exceed 2 months of rent. An advance payment of the last month's rent may be provided to the landlord, in addition to the security deposit and payment of first month's rent. (b) Rental assistance administrator. Rental assistance must be administered by a State, unit of general local government, or a public housing agency. (c) Tenant-based rental assistance. Tenant-based rental assistance is rental assistance in which program participants choose housing of an appropriate size in which to reside. When necessary to facilitate the coordination of supportive services,. recipients and subrecipients may require program participants to live in a specific area for their entire period of participation, or in a specific structure for the first year and in a specific area for the remainder of their period of participation. Program participants who are receiving rental assistance in transitional housing may be required to live in a specific structure for their entire period of participation in transitional housing.. (1 ) Up to 5 years worth of rental assistance may be awarded to a project in one competition. (2) Program participants who have complied with all program requirements during their residence retain the rental assistance if they move within the Continuum of Care geographic area. (3) Program participants who have complied with all program requirements during their residence and who have been a victim. of domestic violence, dating violence, sexual .assault, or stalking, and who reasonably believe they are imminently threatened by harm from further domestic violence, dating violence, sexual assault, or stalking (which would include threats from a third party, such as a friend or family member of the perpetrator of the violence), if they remain in the assisted unit, and are able to document the violence and basis for their belief, may retain the rental. assistance and move to a different Continuum of Care geographic area if they move out ofthe assisted unit to protect their health and safety. (d) Sponsor-based rental assistance. Sponsor-based rental assistance is provided through contracts between the recipient and sponsor organization. A sponsor may be a private, nonprofit organization, or a community mental i