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§ 582. 100 24 CFR Ch. V (4-1 -06 Edition) Subpart B—Assistance Provided rental assistance in connection with the moderate rehabilitation of single § 582.100 program component descrip- room occupancy housing units. Re- tions. sources to initially fund the cost of re- (a) Tenant-based rental assistance habilitating the dwellings must be ob- (TRA). Tenant-based rental assistance tained from other sources. However, provides grants for rental assistance the rental assistance covers operating which permit participants to choose expenses of the rehabilitated SRO units housing of an appropriate size in which occupied by homeless persons, includ- to reside. Participants retain the rent- Ing debt service to retire the cost of al assistance if they move. Where nec- the moderate rehabilitation over a ten- essary to facilitate the coordination of year period. supportive services, grant recipients (2) SRO housing must be in need of may require participants to live in a moderate rehabilitation and must meet specific area for their entire period of the requirements of 24 CFR 882,803(a). participation or in a specific structure Costs associated with rehabilitation of for the first year and in a specific area common areas may be included in the for the remainder of their period of calculation of the cost for assisted participation. Recipients may not de- units based on the proportion of the fine the area in a way that violates the number of units to be assisted under Fair Housing Act or the Rehabilitation this part to the total number of units. Act of 1973. The term of the grant be- (3) SRO assistance may also be used tween HUD and the grant recipient for for efficiency units selected for reha- TRA is five years. bilitation under this program, but the (b) Project-based rental assistance gross rent (contract rent plus any util- (PRA). Project-based rental assistance ity allowance) for those units will be provides grants for rental assistance to no higher than for SRO units (i.e. , 75 the owner of an existing structure, percent of the 0-bedroom Moderate Re- where the owner agrees to lease the habilitation Fair Market Rent). subsidized units to participants. Par- (4) The requirements regarding main- ticipants do not retain rental assist- tenance, operation, and inspections de- ance if they move. Rental subsidies are scribed in 24 CFR 882.806(b)(4) and provided to the owner for a period of ei- 882.808(n) must be met. ther five or ten years. To qualify for ten years of rental subsidies, the owner <5) Governing regulations. Except must complete at least $3,000 of eligible where there is a conflict with any re- rehabilitation for each unit (including quirement under this part or where the unit's prorated share of work to be specifically provided, the SRO compo- accomplished on common areas or sys- nent will be governed by the regula- tems), to make the structure decent, tions set forth in 24 CFR part 882, sub- safe and sanitary. This rehabilitation part H. must be completed with in 12 months § 582.105 Rental assistance amounts of the grant award. and payments. (c) Sponsor-based rental assistance (SRA). Sponsor-based rental assistance (a) Eligible activity. S+C grants may provides grants for rental assistance be used for providing rental assistance through contracts between the grant for housing occupied by participants in recipient and sponsor organizations. A the program and administrative costs sponsor may be a private, nonprofit or- as provided for in paragraph (e) of this ganization or a community mental section, except that the housing may health agency established as a public not be currently receiving Federal nonprofit organization. Participants funding for rental assistance or oper- reside in housing owned or leased by ating costs under other HUD programs. the sponsor. The term of the grant be- Recipients may design a housing pro- - - tween HUD and the grant recipient for gram that includes a range of housing SRA is five years. types with differing levels of sup- (d) Moderate rehabilitation for single portive services. Rental assistance may room occupancy dwellings (SRO). (1) The include security deposits on units in an SRO component provides grants for amount up to one month's rent. 240