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Ofc. of Asst. Secy., Comm. Planning, Develop., HUD § 582. 100 rental assistance payments under the specific area for their entire period of SRA component. participation or in a specific structure State has the meaning given in sec- for the first year and in a specific area tion 462 of the McKinney Act (42 U. S .C. for the remainder of their period of 11403g) . participation. Recipients may not de- Supportive service provider, or service fine the area in a way that violates the provider, means a person or organiza- Fair Housing Act or the Rehabilitation tion licensed or otherwise qualified to Act of 1973 . The term of the grant be- provide supportive services, either for tween HUD and the grant recipient for profit or not for profit. TRA is five years. Supportive services means assistance (b) Project-based rental assistance that— (PRA). Project-based rental assistance (1) Addresses the special needs of eli- provides grants for rental assistance to gible persons: and the owner of an existing structure, (2) Provides appropriate services or where the owner agrees to lease the assists such persons in obtaining ap- subsidized units to participants. Par- propriate services, including health ticipants do not retain rental assist- care, mental health treatment, alcohol ance if they move. Rental subsidies are and other substance abuse services , provided to the owner for a period of ei- child care services, case management ther five or ten years. To qualify for services, counseling, supervision, edu- ten years of rental subsidies, the owner cation, job training, and other services must complete at least $3,000 of eligible essential for achieving and maintain- rehabilitation for each unit (including ing independent living. the unit's prorated share of work to be (Inpatient acute hospital care does not accomplished on common areas or sys- qualify as a supportive service.) , tems) , to make the structure decent, Unit of general local governmenthas safe and sanitary. This rehabilitation the meaning given in section 102 of the must be completed with in 12 months Housing and Community Development of the grant award. Act of 1974 (42 U.S.C. 5302) . (c) Sponsor-based rental assistance Very low-income means an annual in- (SRA). Sponsor-based rental assistance come not in excess of 50 percent of the provides grants for rental assistance median income for the area, as deter- through contracts between the grant mined by HUD, with adjustments for recipient . and sponsor organizations. A smaller and larger families. HUD may sponsor may be a private, nonprofit or- establish income limits higher or lower ganization or a community mental than 50 percent of the median income health agency established as a public for the area on the basis of its finding nonprofit organization. Participants that such variations are necessary be- reside in housing owned or leased by cause of unusually high or low family the sponsor. The term of the grant be- incomes. [ween HUD and the grant recipient for SRA is five years. 161 FR 51169, Sept. 30, 1996: 62 FR 13539, Mar. (d) Moderate rehabilitation for single 21 , 1997] room occupancy dwellings (SRO). (1) The SRO component provides grants for 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 237