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NW A TRUE COPY CERTIFICATION ON LAST PAGE J . R . SMITH , CLERK Subpart A—General Provisions § 578 . 1 Purpose and scope. (a) The Continuum of Care program is authorized by subtitle C of title IV of the McKianeyNento Homeless Assistance Act (42 U.S .C. 11381-11389). (b) The program is designed to: ( 1 ) Promote communitywide commitment to the goal of ending homelessness; (2) Provide funding for efforts by nonprofit providers , States, and local governments to quickly rehouse homeless ' individuals (including unaccompanied youth) and families, while minimizing the trauma and dislocation caused to homeless individuals, families, and communities by homelessness; (3) Promote access to and effective utilization of mainstream programs by homeless individuals and families; and (4) Optimize self-sufficiency among individuals and families experiencing homelessness. § 578.3 Definitions. As used in this part: Act means the McKinneyNento Homeless Assistance Act as amended (42 U.S .C. 11371 et seq. ). Annual renewal amount means the amount that a grant can be awarded on an annual basis when renewed. It includes funds only for those eligible activities (operating, supportive services, leasing, rental assistance, HMIS , and administration) that were funded in the original grant (or the original grant as amended), less the unrenewable activities (acquisition, new construction, rehabilitation, and any administrative costs related to these activities). Applicant means an eligible applicant that has been designated by the Continuum of Care to apply for assistance under this part on behalf of that Continuum. At risk of homelessness. (1 ) An individual or family who: (i) Has an annual income below 30 percent of median family income for the area, as determined by HUD; (ii) Does not have sufficient resources or support networks, e.g., family, friends, faith-based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph ( 1 ) of the "Homeless" definition in this section; and (iii) Meets one of the following conditions: (A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance; (B) Is living in the home of another because of economic hardship, (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days of the date of application for assistance; (D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid