HomeMy WebLinkAbout2013-075F ' U. S. Department of Housing and Urban Development � , C
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Jacksonville, Florida 322024410 CERTIFICATION ON LAST PAGE
CSR I & I ALS � (3 OCA
CLERK
N V75
June 20, 2013
Bradley Bernauer, Director
County Human Services
Indian River County Board of County Commissioners
180127th Street
Vero Beach, FL 32960
Dear Mr. Bernauer:
SUBJECT : Transmittal of Grant Agreements :
Continuum of Care Program:
Project Number: FL044OL4HO91201
Congratulations on the final selection of New Horizons 2 Project for 2012 funding under
the Continuum of Care Program. All conditions attached to the award for this project have been
met.
HUD's total fund obligation for this project is $ 108 ,540 allocated as follows :
I . Grant amount for CoC Planning $0
2 . Grant amount for Acquisition $0
3 . Grant amount for New Construction $0
4 . Grant amount for Rehabilitation $0
5 . Grant amount for Leasing $ 0
6 . Grant amount for Rental Assistance $ 108 , 540
7 . Grant amount for Supportive Services $0
8 . Grant amount for Operating Costs $0
9 . Grant amount for HMS $0
10 . Grant amount for Administration $0
Enclosed are three copies of the Grant Agreement that constitutes the agreement between
your organization and HUD . Please sign all three, keep one copy (with attached re ations) for
your records, and. return two copies to this office immediately.
If you are receiving grant funds for acquisition, construction or rehabilitation, enclosed is
a copy of HUD ' s standard form Declaration of Restrictive Covenants . Your organization will
HUD 's mission is to increase homeownership, support community
development and increase access to affordable housing free from discriminationo
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CERTIFICATION ON LAST PAGE
J t SMITH , CLERK
need to execute it, return it to HUD Field Counsel for approval, record it in priority position and
submit satisfactory proof of recording to HUD Field Counsel prior to drawdown of funds, with
the exception of acquisition funds . Contact us if you have any questions.
It is advised that the grant cannot begin and no funds can be disbursed to your
organization for this project until the Grant Agreement is fully executed and processed through
HUD ' s Financial Accounting Center. You will be notified when this occurs .
Thank you for your commitment to assisting homeless persons. ` We look forward to
working with you to eliminate homelessness . If you have any questions, .please contact
Lori Serino, CPD Representative at (904) 208-6108 .
Sincerely,
Gary A. Causey, Director
Office of Community Planning and Development
Enclosures
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A TRUE COPY
CERTIFICATION ON LAST PAGE
J . R . SMITH , CLERK
ItA €vT o„�
U.S. Department of Housing and Urban Development
° Office of Community Planning and Development
o c�
c 400 West Bay Street
B Suite 1015
Jacksonville, FL 32202
9A x� DEV tGL�
Tax ID No. : 59=6000674
Project Location : 120996, 129061 , 129085, 129111
Grant Number: FL044OL4HO91201
Effective Date : 6/20/2013
DUNS No. : 079208989
2012 CONTINUUM OF CARE PROGRAM GRANT AGREEMENT
This Grant Agreement ("this Agreement") is made by and between the United States
Department of Housing and Urban Development ("HUD") and Indian River County Board of
County Commissioners (the "Recipient") .
This Agreement is governed by title IV of the McKinney-Vento Homeless Assistance Act
42 U. S . C . 11301 et seq. (the "Act") and the Continuum of Care Program regulation (the
"Regulation") .
The terms "Grant " or "Grant Funds" mean the funds that are provided under this
Agreement. The term "Application" means the application submissions on the basis of which the
Grant was approved by HUD, including the certifications, assurances, and any information or
documentation required to meet any grant award condition. All other terms shall have the
meanings given in the Regulation.
The Application is incorporated herein as part of this Agreement, except that only the
project listed, and only in the amount listed on the Scope of Work, is funded by this Agreement.
In the event of any conflict between any application provision and any provision contained in this
Agreement, this Agreement shall control .
Exhibit 1 , the FY2012 Scope of Work, is attached hereto and made a part hereof. If
appropriations are available for Continuum of Care grants; and if Recipient applies under a Notice
of Funds Availability published by HUD; and, if pursuant to the selection criteria in the Notice of
Funds Availability, HUD selects Recipient and the project for renewal, then additional exhibits
may be attached to this Agreement. Those additional exhibits, when attached, will also become a
part hereof.
The effective date of the Agreement shall be the date of execution by HUD and it is the
date use of funds under this Agreement may begin. If the project funded by this Agreement is a
new project, Recipient and HUD will set an operating start date in LOCCS for ,the project, which
will be used to track expenditures and to determine when the project is eligible for renewal . If this
Agreement renews funding for a project, the term of this Agreement shall begin at the end of the
Recipient ' s final operating year for the grant being renewed, and eligible costs incurred for the
project between the end of Recipient' s final operating year under the grant being renewed and the
execution of this Agreement may be paid with funds from the first operating year of this
Agreement.
This Agreement shall remain in effect until termination either 1 ) by agreement of the
parties ; 2) by HUD alone, acting under the authority of 24 CFR 578 . 107 ; or 3 ) upon expiration of
the final operating year of the project funded under this Agreement.
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• Recipient agrees . J . R . SMITH , CLERK
1 . To ensure the operation of the project listed on the Scope of Work in accordance with the
provisions of the Act and all requirements of the Regulation;
2 . To monitor and report the progress of the project to the Continuum of Care and HUD ,
3 . To ensure, to the maximum extent practicable, that individuals and families experiencing
homelessness are involved, through employment, provision of volunteer services, or
otherwise, in constructing, rehabilitating, maintaining, and operating facilities for the
project and in providing supportive services for the project;
4. To require certification from any subrecipient that:
a. Subrecipient will maintain the confidentiality of records pertaining to any individual or
family that was provided family violence prevention or treatment services through the
project;
b. The address or location of any family violence project assisted with grant funds will
not be made public, except with written authorization of the person responsible for the
operation of such project,
c . Subrecipient will establish policies and practices that are consistent with, and do not
restrict, the exercise of rights provided by subtitle B of title VII of the Act and other
laws relating to the provision of educational and related services to individuals and
families experiencing homelessness ;
d. In the case of a project that provides housing or services to families, that subrecipient
will . designate a staff person to be responsible for ensuring that children being served in
the program are enrolled in school and connected to appropriate services in the
community, including early childhood programs such as Head Start, part C of the
Individuals with Disabilities Education Act, and programs authorized under subtitle B
of title VII of the Act;
e . The subrecipient, it officers, and employees are not debarred or suspended from doing
business with the Federal Government; and
f. Subrecipient will provide information, such as data and reports, as required by HUD;
and
5 . To establish such fiscal control and accounting procedures as may be necessary to assure
the proper disbursal of, and accounting for grant funds in order to ensure that all financial
transactions are conducted, and records maintained in accordance with generally accepted
accounting principles, if the Recipient is a Unified Funding Agency ,
6. . To monitor subrecipient match and report on match to HUD;
7 . To take the educational needs of children into account when families are placed in housing
and will, to the maximum extent practicable, place families with children as close as,
possible to their school of origin so as not to disrupt such children' s education;
8 . To monitor subrecipient at least annually;
9 . To use the centralized or coordinated assessment system established by the Continuum of
Cane as required by § 578 .7(a)(8). A victim service provider may choose not to use the
Continuum of Care ' s centralized or coordinated assessment system, provided that victim
service providers in the area use a centralized or coordinated assessment system that meets
HUD ' s minimum requirements and the victim service provider uses that system instead;
10. To follow the written standards for providing Continuum of Care assistance developed by
the Continuum of Care, including the minimum requirements set forth in § 578 .7(a)(9) ;
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11 . Enter into a subrecipient agreement requiring subrecipient to operate the project in CERTIFICATION ON LAST PAGE
accordance with the provisions of this Act and all requirements under 24 CFR 578 ; NSMITho CLERK
12 . To comply with such other terms and conditions as HUD may have established in the
applicable Notice of Funds Availability.
HUD notifications to the Recipient shall be to the address of the Recipient as stated in the
Application, unless HUI? is otherwise advised in writing. Recipient notifications to HUD shall be
to the HUD Field Office executing the Agreement. No right, benefit, or advantage of the
Recipient hereunder may be assigned without prior written approval of HUD .
The Agreement constitutes the entire agreement between the parties hereto, and may be
amended only in writing executed by HUD and the Recipient.
By signing below, Recipients that are states and units of local government certify that they
are following a current HUD approved CHAS (Consolidated Plan) .
This agreement is hereby executed on behalf of the parties as follows:
UNITED STATES` OF AMERICA,
Secretary of Housing and Urban Development
By :
(Signature)
Gary Causey, Director
(Typed Name and Title)
June 20 , 2013
(Date) Agest
Ck" CowtCorotand • aes♦Icoi
RECIPIENT
Indian River County Board of County Commissioners APPROVED AS "1`O . C •a.aaaaga�nq
ALEGAL UF
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(Name of Organization) . • " •d' 4�4`
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By : WILLIA14 K.slay COUN17
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(Signature of Auth(WizedOfficial) gnature o Authorized O a"
Bradley Bernauer , Director, County Human Services Joseph E . Flescher. Chairman
(Typed Name and Title of Authorized Official) (Typed Name and Title of Authorized Official)Man
'
3 eve 13
(Date) (Date)
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CERTIFICATION ON LAST PAGE
Tax ID Number: 59-6000674 J . R . SMITH , CLERK
Project Location: 120996 , 129061 , 129085 , 129111
Grant Number: FL044OL4HO91201
Effective Date : 6/20/2013
DUNS Number: 079208989
EXHIBIT 1
SCOPE OF WORK for FY2012 COMPETITION
1 . This Agreement is governed by the Continuum of Care program Interim Rule attached
hereto and made a part hereof as Exhibit 1 a. Upon publication for effect of a Final Rule
for the Continuum of Care program, the Final Rule will govern this Agreement instead of
the Interim Rule. The project listed on this Exhibit at 3 . , below, is also subject to the terms
of the FY2012 Notice of Funds Availability .
2 . The Continuum that designated Recipient to apply for grant funds is not a high-performing
community.
3 . Recipient is not a Unified Funding Agency and was not the only Applicant the Continuum
of Care designated to apply for and receive grant funds and is not the only Recipient for
the Continuum of Care that designated it. HUD ' s total funding obligation for this grant
is $ 108 ,540 for project number FL044OL4HO91201 . In accordance with 24 CFR
578 . 105 (b), Recipient is prohibited from moving more than 10% from one budget line item
in a project ' s approved budget to another without a written amendment to this Agreement.
The obligation for this project shall be allocated as follows :
a. CoC Planning cost $ 0
b . Acquisition $ 0
c . New construction $ 0
d. Rehabilitation $ 0
e . Leasing $ 0
f. Rental assistance $ 108,540
g. Supportive services $ 0
h. Operating costs $ 0
L HMIS $ 0
J . Administration $ 0
4. No funds for new projects may be drawn down by Recipient until HUD has approved site
control pursuant to § 578 .21 and., § 578 .25 and no funds for renewal projects may be drawn
down by Recipient before the erid date of the project' s final operating year under the grant
that has been renewed.
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` CERTIFICATION ON LAST PAGE
J . R . SMITH , CLERK
�0:=. hd ? C7„
f4Qt �� U.S. Department of Housing and Urban Development
Office of Community Planning and Development
n 400 West Bay Street
Suite 1015
Jacksonville, FL 32202
a
Tax ID No. 3 59-6000674
Project Location : 120996, 129061 , 129085, 129111
Grant Number. FL0440L411091201
Effective Date : 6/20/2013
DUNS No. : 079208989
2012 CONTINUUM OF CARE PROGRAM GRANT AGREEMENT
This Grant Agreement ("this Agreement") is made by and between the United States
Department of Housing and Urban Development ("HUD") and Indian River County Board of
County Commissioners (the "Recipient") .
This Agreement is governed by title IV of the McKinney-Vento Homeless Assistance Act
42 U. S . C . 11301 et seq. (the "Act") and the Continuum of Care Program regulation (the
"Regulation ') .
The terms " Grant " or "Grant Funds" mean the funds that are provided under this _
Agreement. The term "Application" means the application submissions on the basis of which the
Grant was approved by HUD, including the certifications, assurances, and any information or
documentation required to meet any grant award condition. All other terms shall have the
meanings given in the Regulation.
The Application is incorporated herein as part of this Agreement, except that only the
project listed, and only in the amount listed on the Scope of Work, is funded by this Agreement.
In the event of any conflict between any application provision and any provision contained in this
Agreement, this Agreement shall control.
Exhibit 1 , the FY2012 Scope of Work, is attached hereto and made a part hereof. If
appropriations are available for Continuum of Care grants ; and if Recipient applies under a Notice
of Funds Availability published by HUD ; and, if pursuant to the selection criteria in the Notice of
Funds Availability, HUD selects Recipient and the project for renewal, then additional exhibits
may be attached to this Agreement. Those additional exhibits, when attached, will also become a
part hereof
The effective date of the Agreement shall be the date of execution by HUD and it is the
date use of funds under this Agreement may begin. If the project funded by this Agreement is a
new project, Recipient and HUD will set an operating start date in LOCCS for the project, which
will be used to track expenditures and to determine when the project is eligible for renewal . -If this
Agreement renews funding for a project, the term of this Agreement shall begin at the end of the
Recipient' s final operating year for the grant being renewed, and eligible costs incurred for the
project between the end of Recipient' s final operating year under the grant being renewed and the
execution of this Agreement may be paid with funds from the first operating year of this
Agreement.
This Agreement shall remain in effect until termination either 1 ) by agreement of the
parties ; 2) by HUD alone, acting under the authority of 24 CFR 578 . 107 ; or 3 ) upon expiration of
the final operating year of the project funded under this Agreement.
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Recipient agrees : d . R . SMITH , CLERK
1 . To ensure the operation of the project listed on the Scope of Work in accordance with the
provisions of the Act and all requirements of the Regulation,
2 . To monitor and report the progress of the project to the Continuum of are and HUD ;
3 . To ensure, to the maximum extent practicable, that individuals and families experiencing
homelessness are involved, through employment, provision of volunteer services, or
otherwise, in constructing, rehabilitating, maintaining, and operating facilities for the
project and in providing supportive services for the project,
4 . To require certification from any subrecipient that :
a. Subrecipient will maintain the confidentiality of records pertaining to any individual or
family that was provided family violence prevention or treatment services through the
project,
b. The address or location of any family violence project assisted with grant funds will
not be made public, except with written authorization of the person responsible for the
operation of such project,
c . Subrecipient will establish policies and practices that are consistent with, and do not
restrict, the exercise of rights provided by subtitle B of title VII of the Act and other
laws relating to the provision of educational and related services to individuals and
families experiencing homelessness,
d. In the case of a project that provides housing or services to families, that subrecipient
will designate a staff person to be responsible for ensuring that children being served in
the program are enrolled in school and connected to appropriate services in the
community, including early childhood programs such as Head Start, part C of the
Individuals with Disabilities Education Act, and programs authorized under subtitle B
of title VII of the Act,
e . The subrecipient, it officers, and employees are not debarred or suspended from doing
business with the Federal Government; and
f. Subrecipient will provide information, such as data and reports, as required by HUD ;
and
5 . To establish such fiscal control and accounting procedures as may be necessary to assure
the proper disbursal of, and accounting for grant funds in order to ensure that all financial
transactions are conducted, and records maintained in accordance with generally accepted
accounting principles, if the Recipient is a Unified Funding Agency ;
6 . To monitor subrecipient match and report on match to HUD ;
7 . To take the educational needs of children into account when families are placed in housing
and will, to the maximum extent practicable, place families with children as close as
possible to their school of origin so as not to disrupt such children' s education,
8 . . To monitor subrecipient at least annually,
9 . To use the centralized or coordinated assessment system established by the Continuum of
Care as required by § 578 .7(a)(8) . A victim service provider may choose not to use the
Continuum of Care ' s centralized or coordinated assessment system, provided that victim
service providers in the area use a centralized or coordinated assessment system that meets
HUD ' s minimum requirements and the victim service provider uses that system instead;
10 . To follow the written standards for providing Continuum of Care assistance developed by
the Continuum of Care, including the minimum requirements set forth in § 578 .7(a)(9) ;
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11 . Enter into a subrecipient agreement requiring subrecipient to operate the project ii- R • SMITH , CLERK
accordance with the provisions of this Act and all requirements under 24 CFR 578 ; and
12 . To comply with such other terms and conditions as HUD may have established in the
applicable Notice .of Funds Availability .
HUD notifications to the Recipient shall be to the address of the Recipient as stated in the
Application, unless HUD is otherwise advised in writing . Recipient notifications to HUD shall be
to the HUD Field Office executing the Agreement. No right, benefit, or advantage of the
Recipient hereunder may be assigned without prior written approval of HUD .
The Agreement constitutes the entire agreement between the parties hereto, and may be
amended only in writing executed by HUD and the Recipient.
By signing below, Recipients that are states and units of local government certify that they
are following a current HUD approved CHAS (Consolidated Plan) .
This agreement is hereby executed on behalf of the parties as follows :
UNITED STATES OF AMERICA,
Secretary of Housing and Urban Development
By :
(Signature)
Gary Causey, Director
(Typed Name and Title)
June 20, 2013
(Date) Attest Jefty R. Smoth, Clark ct
Ck=k court
RECIPIENT
Indian River County Board of County Commissioners APPROVED AS T
(Name of Organization) aanaannnnnany � D LEGAL $ FF IE �►l
•
By :
e�i •�•• d WILLIAM K. OEBP L
DEPUTY COUNTY ATTORNEY
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(Signature of Au rized Official) 4`'•^;� nature of A horized Officia
^qa •11 ijall
Bradley . Bernauer , Director, County Human Services Joseph E . Flescher, Chairman
(Typed Name and Title of Authorized Official) (Typed Name and Title of Authorized Official )
13
(Date) ( Date )
Page 3
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Tax ID Number: 59-6000674 GEIRTIEICATION ON LAST PAGE
Project Location: 120996, 1290619 129085 , 129111 J • R • SMITH, CLERK
Grant Number : FL0440L411091201
Effective Date : 6/20/2013
DUNS Number: 079208989
EXHIBIT 1
SCOPE OF WORK for FY2012 COMPETITION
1 . This Agreement is governed by the Continuum of Care program Interim Rule attached
hereto and made a part hereof as Exhibit 1 a. Upon publication for effect of a Final Rule
for the Continuum of Care program, the Final Rule will govern this Agreement instead of
the Interim Rule . The project listed on this Exhibit at 3 . , below, is also subject to the terms
of the FY2012 Notice of Funds Availability .
2 . The Continuum that designated Recipient to apply for grant funds is not a high-performing
community .
3 . Recipient is not a Unified Funding Agency and was not the only Applicant the Continuum
of Care designated to apply for and receive grant funds and is not the only Recipient for
the Continuum of Care that designated it. HUD ' s total funding obligation for this grant
is $ 108 ,540 for project number FL044OL4HO91201 . In accordance with 24 CFR
578 . 105 (b), Recipient is prohibited from moving more than 10% from one budget line item -
in a project' s approved budget to another without a written amendment to this Agreement.
The obligation for this project shall be allocated as follows :
a. CoC Planning cost $ 0
b. Acquisition $ 0
c . New construction $ 0
d. Rehabilitation .$ 0
e . Leasing $ 0
f. Rental assistance $ 108 ,540
g . Supportive services $ 0
h. Operating costs $ 0
i. HMIS $ 0
J . Administration $ 0
4. No funds for new projects may be drawn down by Recipient until HUD has approved site
control pursuant to § 578 .21 and § 578 .25 and no funds for renewal projects may be drawn
down by Recipient before the end date of the project' s final operating year under the grant
that has been renewed.
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:1 } § 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 McKinneyNento 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 govemments 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 ;
(a) 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
a
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R CERTIFICATION ON LAST off' ^• r
#° r� rs : �3t J. R . SMITH , CLERK
by charitable organizations or by federal, State, or local government programs for low-income individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons, or
lives in a larger housing unit in which there reside more than 1 .5 people per room, as defined by the U.S . Census
Bureau;
(F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility,
foster care or other youth facility, or correction program or institution) ; or
(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of
homelessness, as identified in the recipient's approved consolidated plan;
(2) A child or youth who does not qualify as "homeless" under this section, but qualifies as "homeless" under
section 387(3) of the Runaway and Homeless Youth Act (42 U .S .C . 5732x(3)), section 637( 11 ) of the Head Start
Act (42 U. S .C: 9832( 11 )), section 41403(6) of the Violence Against Women Act of 1994 (42 U . S .C. 14043e-2(6)),
section 330(h)(5 )(A) of the Public Health Service Act (42 U. S .C. 254b(h)(5)(A)), section 3 (m) of the Food and
Nutrition Act of 2008 (7 U. S .C. 2012(m)), or section 17(b)(15) of the Child Nutrition Act of 196642( U.S .C.
1786(b)( 15)) ; or
(3 ) A child or youth who does not qualify as "homeless" under this section, but qualifies as "homeless" under
section 725 (2) of the McKinney-Vento Homeless Assistance Act (42 U. S .C . 11434x(2)), and the parents) or
guardian(s) of that child or youth if living with her or him.
Centralized or coordinated assessment system means a centralized or coordinated process designed to coordinate
program participant intake assessment and provision of referrals. A centralized or coordinated assessment system
covers the geographic area, is easily accessed by individuals and families seeking housing or services, is well
advertized, and includes a comprehensive and standardized assessment tool.
Chronically homeless. ( 1 ) An individual who:
(i) Is homeless and lives in a place not meant for human habitation, a safe haven, or in an emergency shelter; and
(ii) Has been homeless and living or residing in a place not meant for human habitation, a safe haven, or in an
emergency shelter continuously for at least one year or on at least four separate occasions in the last 3 years; and
(iii) Can be diagnosed with one or more of the following conditions: substance use disorder, serious mental illness,
developmental disability (as defined in section 102 of the Developmental Disabilities Assistance Bill of Rights Act
of 2000442 U. S .C. 15002)), post-traumatic stress disorder, cognitive impairments resulting from brain injury, or
chronic physical illness or disability;
(2) An individual who has been residing in an institutional care facility, including a jail, substance abuse or mental
health treatment facility, hospital, or other. similar facility, for fewer than 90 days and met all of the criteria in
paragraph ( 1 ) of this definition, before entering that facility; or
(3) A family with an adult head of household (or if there is no adult in the family, a minor head of household) who
meets all of the criteria in paragraph ( 1 ) of this definition, including a family whose composition has fluctuated
while the head of household has been homeless .
Collaborative applicant means the eligible applicant that has been designated by the Continuum of Care to apply for
a grant for Continuum of Care planning funds under this part on behalf of the Continuum.
Consolidated plan means the HUD-approved plan developed in accordance with 24 CFR 91 .
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J. R . SMITH , CLERK
Continuum of Care and Continuum means the group organized to carry out the responsibilities required under this
part and that is composed of representatives of organizations, including nonprofit homeless providers, victim service
providers, faith-based organizations, governments, businesses, advocates, public housing agencies, school districts,
social service providers, mental health agencies, hospitals, universities, affordable housing developers, law
enforcement, organizations that serve homeless and formerly homeless veterans, and homeless and formerly
homeless persons to the extent these groups are represented within the geographic area and are available to
participate.
Developmental disability means, as defined in section 102 of the Developmental Disabilities Assistance and Bill of
Rights Act of 2000 (42 U. S .C. 15002) :
( 1 ) A severe, chronic disability of an individual that—
(i) Is attributable to a mental or physical impairment .or combination of mental and physicalimpairments;
(ii) Is manifested before the individual attains age 22 ;
(iii) Is likely to continue indefinitely;
(iv) Results in substantial functional limitations in three or more of the following areas of major life activity:
(A) Self-care;
(B ) Receptive and expressive language;
(C) Learning,
(D) Mobility;
(E) Self-direction ;
(F) Capacity for independent living;
(G) Economic self-sufficiency.
(v) Reflects the individual's need for a combination and sequence of special, interdisciplinary, or generic services,
individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually
planned and coordinated .
(2) An individual from birth to age 9, inclusive, who. has a substantial developmental delay or specific congenital or
acquired condition, may be considered to have a devlopmental disability without meeting three or more of the
criteria described in paragraphs ( 1 )(i) through (v) of the definition of "developmental disability" in this section if the
individual, without services and supports, has a high probability of meeting these criteria later in life.
Eligible applicant means a private nonprofit organization, State, local government, or instrumentality of State and
local government.
Emergency shelter is defined in 24 CFR part 576 .
Emergency Solutions Grants (ESG) means the grants provided under 24 CFR part 576.
Fair Market Rent (FMR) means the Fair Market Rents published in the FEDERAL REGISTER annually by HUD.
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High-performing community (HPC) means a Continuum of Care that meets the standards in subpart E of this part
and has been designated as a high-performing community by HUD.
Homeless means:
( 1 ) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
(i) An individual or family with a primary nighttime residence that is a public or private place not designed for or
ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building,
bus . or train station, airport, or camping ground ;
(ii) An individual or family living in a supervised publicly or privately operated shelter designated to provide
temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for
by charitable organizations or by federal, State, or local government programs for low-income individuals) ; or
(iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an
emergency shelter or place not meant for human habitation immediately before entering that institution;
(2) An individual or family who will imminently lose their primary nighttime residence, provided that:
(i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance;
(ii) No subsequent residence has been identified ; and
(iii) The individual or family lacks the resources or support networks, e. g. , family, friends, faith-based or other
social networks, needed to obtain other permanent housing;
(3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify
as homeless under this definition, but who.
(i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S .C. 5732a), section
637 of the Head Start Act (42 U. S .C. 9832), section 41403 of the Violence Against Women Act of 199442( U. S .C.
14043e-2), section 330(h) of the Public Health Service Act (42 U.S .C. 254b(h)), section 3 of the Food and Nutrition
Act of 2008 (7 U.S .C . 2012), section 17 (b) of the Child Nutrition Act of 1966 (42 U.S .C. 1786(b)), or section 725 of
the McKinney-Vento Homeless Assistance Act (42 U. S .C . 11434a) ;
(ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the
60 days immediately preceding the date of application for homeless assistance;
(iii) Have experienced persistent instability as measured by two moves or more during the 60-day period .
immediately preceding the date of applying for homeless assistance ; and
(iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities;
chronic physical health or mental health conditions , substance addiction; histories of domestic violence or childhood
abuse (including neglect) ; the presence of a child or youth with a disability; or two or more barriers to employment,
which include the lack of a high school degree or General Education Development (GED), illiteracy, low English
proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment, or
(4) Any individual or family who:
(i) Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous
or life-threatening conditions that relate to violence against the individual or a family member, including a child, that
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has either taken place within the individual's or family's primary nighttime residence or has made the individual or
family afraid to return to their primary nighttime residence;
(ii) Has no other residence ; and
(iii) Lacks the resources or support networks, e.g., family, friends, and faith-based or other social networks, to obtain
other permanent housing.
Homeless Management Information System (HMIS) means the information system designated by the Continuum of
Care to comply with the HMIS requirements prescribed by HUD.
HMIS Lead means the entity designated by the Continuum of Care in accordance with this part to operate the
Continuum's HMIS on its behalf.
Permanent housing means community-based housing without a designated length of stay, and includes both
permanent supportive housing and rapid rehousing. To be permanent housing, the program participant must be the
tenant on a .lease for a term of at least one year, which is renewable for terms that are a minimum of one month long,
and is terminable only for cause.
Permanent supportive housing means permanent housing in which supportive services are provided to assist
homeless persons with a disability, to live independently.
Point- in-time count means a count of sheltered and unsheltered homeless persons carried out on one night in the last
10 calendar days of January or at such other time as required by HUD .
Private nonprofit organization means an organization:
( i ) No part of the net earnings of which inure to the benefit of any member, founder, contributor, or individual;
(2) That has a voluntary board;
(3) That has a functioning accounting system that is operated in accordance with generally accepted accounting
principles, or has designated a fiscal agent that will maintain a functioning accounting system for the organization in
accordance with generally accepted accounting principles ; and
(4) That practices nondiscrimination in the provision of assistance.
A private nonprofit organization does not include governmental organizations, such as public housing agencies.
Program participant means an individual (including an unaccompanied youth) or family who is assisted with
Continuum of Care program funds.
Project means a group of eligible activities, such as HMIS costs, identified as a project in an application to HUD for
Continuum of Care funds and includes a structure (or structures) that is (are) acquired, rehabilitated, constructed, or
leased with assistance provided under this part or with respect to which HUD provides rental assistance or annual
payments for operating costs, or supportive services under this subtitle.
Recipient means an applicant that signs a grant agreement with HUD.
Safe haven means, for the purpose of defining chronically homeless, supportive housing that meets the following:
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( 1 ) Serves hard to reach homeless persons with severe mental illness who came from the " streets and have been
unwilling or unable to participate in supportive services;
(2) Provides 24-hour residence for eligible persons for an unspecified period;
(3 ) Has an overnight capacity limited to "25 or fewer persons ; and
(4) Provides low-demand services and referrals for the residents.
State means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa,
Guam, the Commonwealth of the Northern Marianas, and the Virgin Islands.
Subrecipient means a private nonprofit organization, State, local government, or instrumentality of State or local
government that receives a subgrant from the recipient to carry out a project.
Transitional housing means housing, where all program participants have signed a lease or occupancy agreement,
the purpose of which is to facilitate the movement of homeless individuals and families into permanent housing
within 24 months or such longer period as HUD determines necessary. The program participant must have a lease or
occupancy agreement for a term of at least one month that ends in 24 months and cannot be extended.
Unified Funding Agency (UFA) means an eligible applicant selected by the Continuum of Care to apply for a grant
for the entire Continuum, which has the capacity to carry out the duties in §579. 11 (b), which is approved by HUD
and to which HUD awards a grant.
Victim service provider means a private nonprofit organization whose primary mission is to provide services to
victims of domestic violence, dating violence, sexual assault, or stalking. This term includes rape crisis centers,
battered women's shelters, domestic violence transitional housing programs, and other programs .
Subpart B—Establishing and Operating a Continuum of Care
§ 578 .5 Establishing the Continuum of Care.
(a) The Continuum of Care. Representatives from relevant organizations within a geographic area shall establish a
Continuum of Care for the geographic area to carry out the duties of this part. Relevant organizations include
nonprofit homeless assistance providers, victim service providers, faith-based organizations, governments,
businesses, advocates, public housing agencies, school districts, social service providers, mental health agencies, . .
hospitals, universities, affordable housing developers, law enforcement, and organizations that serve veterans and
homeless and formerly .homeless individuals.
(b) The board. The Continuum of: Care must establish a board to act on behalf of the Continuum using the process .
established as a requirement by §578 .7(a)(3) and must comply with the conflict-of-interest requirements at
§578 .95 (b) . The board must:
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( 1 ) Be representative of the relevant organizations. and of projects . serving homeless subpopulations ; and
(2) Include at least one homeless or formerly homeless individual.
(c) Transition. Continuums of Care shall have 2 years after August 30, 2012 to comply with the requirements of
paragraph (b) of this section.
§ 578.7 Responsibilities of the Continuum of Care.
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(a) Operate the Continuum of Care. The Continuum of Care must:
( 1 ) Hold meetings of the full membership, with published agendas, at least semi-annually;
(2) Make an invitation for new members to join publicly available within the geographic at least annually; ,
(3) Adopt and follow a written process to select a board to act. on behalf of the Continuum of Care, The. process must
be reviewed, updated, and approved by the Continuum at least once every 5 years ;
(4) Appoint additional committees, subcommittees, or workgroups ;
(5) In consultation with the collaborative applicant and the HMIS Lead, develop, follow, and update annually a
governance charter, which will include all procedures and policies needed to comply with subpart B of this part and
with HMIS requirements as prescribed by HUD; and a code of conduct and recusal process for the board, its
chair(s), and any person acting on behalf of the board;
(6) Consult with recipients and subrecipients to establish performance targets appropriate for population and
program type, monitor recipient and subrecipient performance, evaluate outcomes, and take action against poor
performers ;.
(7) Evaluate outcomes of projects funded under the Emergency Solutions Grants program and the Continuum of
Care program, and report to HUD;
(8) In consultation with recipients of Emergency Solutions Grants program funds within the geographic area,
establish and operate either a centralized or coordinated assessment system that provides an initial, comprehensive
assessment of the needs of individuals and families for housing and services. The Continuum must develop a
specific policy to guide the operation of the centralized or coordinated assessment system on how its system will '
address the needs of individuals and families who are fleeing, or attempting to flee, domestic violence, dating
violence, sexual assault, or stalking, but who are seeking shelter or services from nonvictim service providers . This
system must comply with any requirements established by HUD by Notice.
(9) In consultation with recipients of Emergency Solutions Grants program funds within the geographic area,
establish and consistently follow written standards for providing Continuum of Care assistance. At a minimum,
these written standards must include:
(i) Policies and procedures for evaluating individuals' and families' eligibility for assistance under this part;
(ii) Policies and procedures for determining and prioritizing which eligible individuals and families will receive
transitional housing assistance ; .
(iii) Policies and procedures for determining and prioritizing which eligible individuals and families will receive
rapid rehousing assistance;
(iv) Standards for determining what percentage or amount of rent each program participant must pay while receiving
rapid rehousing assistance;
(v) Policies and procedures for determining and prioritizing which eligible individuals and families will receive
permanent supportive housing assistance; and
(vi) Where the Continuum is designated a high-performing community, as described in subpart G of this part,
policies and procedures set forth in 24 CFR 576 .400(e)(3)(vi), (e)(3)(vii), (e)(3)(viii), and (e)(3)(ix) .
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(b) Designating and operating an HMIS. The Continuum of Care must:
( 1 ) Designate a single Homeless Management Information System (HMIS ) for the geographic area;
(2) Designate an eligible applicant to manage the Continuum's HMIS , which will be known as the HMIS Lead ;
(3) Review, revise, and approve a privacy plan; security plan, and data quality plan for the HMIS .
(4), Ensure consistent participation of recipients and subrecipients in the HMIS ; and
(5 ) Ensure the HMIS is administered in compliance with requirements prescribed by HUD.
(c) Continuum of Care planning. The Continuum must develop a plan that includes :
( 1 ) Coordinating the implementation of a housing and service system within its geographic area that meets the needs
of the homeless individuals (including unaccompanied' youth) and families. At a minimum, such system .
encompasses the following:
(i) Outreach, engagement, and assessment;
(ii) .Shelter, housing, and supportive services ;
(iii) Prevention strategies .
(2) Planning for and conducting, at least biennially, a point-in-time count of homeless persons within the geographic
area that meets the following requirements :
(i) Homeless persons who are living in a place not designed or. ordinarily used as a regular sleeping accommodation
for humans must be counted as unshelteredhomeless persons.
(u) Persons living in emergency: shelters and transitional housing projects must be counted as sheltered homeless
persons.
(iii) Other requirements established by HUD by Notice.
(3) Conducting an annual gaps analysis of the homeless needs and services available within the geographic area;
(4) Providing information required to complete the Consolidated Plan(s) within the Continuum's geographic area;
(5 ) Consulting with State and local government Emergency Solutions Grants program recipients within the
Continuum's geographic area on the plan for allocating Emergency Solutions Grants program funds and-reporting on
and evaluating the performance of Emergency Solutions Grants program recipients and subrecipients.
§ 578.9 Preparing an application for funds .
(a) The Continuum must:
( 1 ) Design, operate, and follow a collaborative process for the development of applications and approve the
submission of applications in response to a NOFA published by HUD under § 578. 19 of this subpart;
(2) Establish priorities for funding projects , in the geographic area,
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(3) Determine if one application for funding will be submitted, for all projects within the geographic area or if more
than one application will be submitted for the projects within the geographic area;
(i) If more than one application will be submitted, designate an eligible applicant to be the collaborative applicant
that will collect and combine the required application information from all applicants and for all projects within. the
geographic area that the Continuum has selected funding. The collaborative applicant will also apply for Continuum
of Care planning activities. If the Continuum is an eligible applicant, it may designate itself,
(ii) If only one application will be submitted, that applicant will be the collaborative applicant and will collect and
combine the required application information from all projects within the geographic area that the Continuum has
selected for funding and apply for Continuum of Care planning activities ;
(b) The Continuum retains all of its responsibilities, even if it designates one or more eligible applicants other than
itself to apply for funds on behalf of the Continuum. This includes approving the Continuum of Care application.
§ 578 . 11 Unified Funding Agency.
(a) Becoming a Unified Funding Agency. To become designated as the Unified Funding Agency (UFA) for a
Continuum, a collaborative applicant must be selected by the Continuum to apply to HUD to be designated as the
UFA for the Continuum.
(b) Criteria for. designating a UFA. HUD will consider these criteria when deciding whether to designate a
collaborative applicant a UFA: r I
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( 1 ) The Continuum of Care it represents meets the requirements in §578 .7 ;
(2) The collaborative applicant has financial management systems that meet the standards set forth in 24 CFR 84.21
(for nonprofit organizations) and 24 CFR 85 . 20 (for States) ,
(3 ) The collaborative applicant demonstrates the ability to monitor subrecipients; and
(4) Such other criteria as HUD may establish by NOFA.
(c ) Requirements. HUDAesignated UFAs shall .
( 1 ) Apply to HUD for funding for all of the projects within the geographic areaand enter into a grant agreement
with HUD for the entire geographic area. .
(2) Enter into legally binding agreements with subrecipients, and receive and distribute funds to subrecipients for all
projects within the geographic area.
(3) Require subrecipients to establish fiscal control and accounting procedures as necessary to assure the proper
disbursal of and accounting for federal funds in accordance with the requirements of 24 CFR parts 84 and 85 and
corresponding OMB circulars.
(4) Obtain approval of any proposed grant agreement amendments by the Continuum of Care before submitting a
request for an amendment to HUD.
§ 578. 13 Remedial action.
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(a) If HUD finds that the Continuum of Care for a geographic area does not meet the requirements of the Act or its
implementing regulations, or that there is no Continuum for a geographic area, HUD may take remedial action to
ensure fair distribution of grant funds within the geographic area. Such measures may -include:
( 1 ) Designating a replacement Continuum of Care for the geographic area;
(2) Designating a replacement collaborative applicant for the Continuum's geographic area; and
(3) Accepting applications from other eligible applicants within the Continuum's geographic area.
(b) HUD must provide a 30-day prior written notice to the Continuum and its collaborative applicant and give them
an opportunity to respond .
Subpart C—Application and Grant Award Process
§ 578. 15 Eligible applicants.
(a) Who may. apply: Nonprofit organizations, States, local governments, and instrumentalities of State or local
governmepw'are eligible toap ply for grants.
(b) Designation by the Continuum of Care. Eligible applicant(s) must have been designated by the Continuum of
Care to submit an application for grant funds under this part. The designation must state whether the Continuum is
designating more than one applicant to apply for funds and, if it is, which applicant is being designated as the
collaborative applicant. If the Continuum is designating only one applicant to apply for funds, the Continuum must
designate that applicant to be the collaborative applicant.
(c) Exclusion. For-profit entities are not eligible to apply for grants or to be subrecipients of grant funds.
§ 578. 17 Overview of application and grant award process.
(a) Formula. ( 1 ) After enactment of the annual appropriations act for each fiscal year, and issuance of the NOFA,
HUD will publish, on its Web site, the Preliminary Pro Rata Need (PPRN) assigned to metropolitan cities, urban
counties, and all other counties.
' lpd e (2) HUD will apply the fariula used to determine PPRN established in paragraph (a)(3) of this section, to the
Arno, of funds'lieing made available under the NOFA: That amount is calculated by:
(i) Determining the total amount for the Continuum of Care competition in accordance with section 413 of the Act
or as otherwise directed by the annual appropriations act;
(ii) From the amount in paragraph (a)(2)(i) of this section, deducting the amount published in the NOFA as being set
aside to provide a bonus to geographic areas for activities that have proven to be effective in reducing homelessness
generally or for specific subpopulations listed in the NOFA or achieving homeless prevention and independent
living goals established in the NOFA and to meet policy priorities set in the NOFA; and
(iii) Deducting the amount of funding necessary for Continuum of Care planning activities and UFA costs.
(3) PPRN is calculated on the amount determined under paragraph (a)(2) of this section. by using the following
formula:
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(i) Two percent will be allocated among the four insular areas (American Samoa, Guam, the Commonwealth of the
Northern Marianas, and the Virgin Islands) on the basis of the ratio of the population of each insular area to the
population of all insular areas .
(ii) Seventy-five percent of the remaining amount will be allocated, using the Community Development Block Grant
(CDBG) formula, to metropolitan cities and urban counties that have been funded under either the Emergency
Shelter Grants or Emergency Solutions Grants programs in any one year since 2004.
(iii) The amount remaining after the allocation ,under paragraphs (a)( 1 ) and (2) of this section will be allocated, using
the CDBG formula, to metropolitan cities and urban counties that have not been funded under the Emergency
Solutions Grants program in any year since 2004 and all other counties in the United States and Puerto Rico.
(4) If the calculation in paragraph (a)(2) of this section results in an amount less than the amount required to renew
all projects eligible for renewal in that year for at least one year, after making adjustments proportional to increases
in fair market rents for the geographic area for leasing, operating, and rental assistance for permanent housing, HUD
will reduce, proportionately, the total amount required to renew all projects eligible for renewal in that year for at
least one year, for each Continuum of Care. HUD will publish, via the NOFA, the total dollar amount that every .
Continuum will be required to deduct from renewal projects Continuum-wide.
(b) Calculating a Continuum of Care 's maximum award amount. ( 1 ) Establish the PPRN amount. First, HUD will
total the PPRN amounts for each metropolitan city, urban county, other county, and insular area claimed by the
Continuum as part of its geographic area, excluding any counties applying for or receiving funding from the Rural
Housing Stability Assistance program under 24 CFR part 579 .
(2) Establishing renewal demand. Next, HUD .will determine the renewal demand within. the Continuum's
geographic area. Renewal demand is the sum of the annual renewal amounts of all projects within the Continuum
eligible to apply for renewal in that fiscal year's competition, before any adjustments to rental assistance, leasing,
and operating line items based on FMR changes.
(3) Establishing FPRN. The higher of PPRN or renewal demand for the Continuum of Care is the FPRN, which is
the base for the maximum award amount for the Continuum.
(4) Establishing the maximum award amount. The maximum award amount for the Continuum is the FPRN amount
plus any additional eligible amounts for Continuum planning; UFA costs ; adjustments to leasing, operating and
rental assistance line items based on changes to FMR; and available bonuses.
§ 578 . 19 Application process.
(a) Notice of Funding Availability. After enactment of the annual appropriations act for the fiscal year, HUD will
issue a NOFA in accordance with the requirements of 24 CFR part 4 .
(b) Applications. All applications to HUD, including applications for grant funds and requests for designation as a
UFA or HPC, must be submitted at such time and in such manner as HUD may require, and, contain such
information as HUD determines necessary. At a minimum, an application for grant funds must contain a list of the.
projects for which it is applying for funds ; a description of the projects; a list of the projects that will be carried out
by subrecipients and the names of the subrecipients ; a description of the subpopulations of homeless or at risk of --
homelessness to be served by projects ; the number of units to be provided and/or the number of persons to be served
by each project; a budget request by project; and reasonable assurances that the applicant, or the subrecipient, will
own or have control of a site for the proposed project not later than the expiration of the 12-month period beginning
upon notification of an award for grant assistance.
§ 578.21 Awarding funds.
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(a) Selection. HUD will review applications in accordance with the guidelines and procedures provided in the NOFA
and will award funds to recipients through a national competition based on selection criteria as defined in section
427 of the Act.
(b) Announcement of awards. HUD will announce awards and notify selected applicants of any conditions imposed
on awards. Conditions must be satisfied before HUD will execute a grant agreement with the applicant.
(c) Satisfying conditions. HUD will withdraw an award if the applicant does not satisfy all conditions imposed on it.
Correcting all issues and conditions attached to an award must be completed within the time frame established in the
NOFA. Proof of site control, match, environmental review, and the documentation of financial feasibility must be
completed within 12 months of the announcement of the award, or 24 months in the case of funds for acquisition,
rehabilitation, or new construction. The 12-month deadline may be extended by HUD for up to 12 additional months
upon a showing of compelling reasons for delay due to factors beyond the control of the recipient or subrecipient.
§ 578 .23 Executing grant agreements .
(a) Deadline. No later than 45 days from the date when all conditions are satisfied, the recipient and HUD must
execute the grant agreement.
(b) Grant agreements. ( 1 ) Multiple applicants for one Continuum. If a Continuum designates more than one
applicant for the geographic area, HUD will enter into a grant agreement with each designated applicant for which
an award is announced. ,
(2) One applicant for a Continuum. If a Continuum designates only one applicant for the geographic area, after
awarding funds, HUD may enter into a grant agreement with that applicant for new awards, if any, and one grant
agreement for renewals, Continuum of Care planning, and UFA costs, if any. These two grants will cover the entire
geographic area. A default by the recipient under one of those grant agreements will also be a default under the
other.
(3) Unified Funding Agencies. If a Continuum is a UFA that HUD has approved, then HUD will enter into one grant
agreement with the UFA for new awards, if any, and one grant agreement for renewals, Continuum of Care planning
and UFA costs, if any . These two grants will cover the entire geographic area. A default by the UFA under one of
those grant agreements will also be a default under the other.
(c) Required agreements. Recipients will be required to sign a grant agreement in which the recipient agrees :
( 1 ) To ensure the operation of the project(s) in accordance with the provisions of the McKinney-Veto Act and all
requirements under 24 CFR part 578 ,
(2) To monitor and report the progress of the project(s) to the Continuum of Care and HUD ;
(3) To ensure, to the maximum extent practicable, that individuals and families experiencing homelessness are
involved, through employment, provision of volunteer services, or otherwise, in constructing, rehabilitating,
maintaining, and operating facilities for the project and in providing supportive services for the project;
(4) To require certification from all subrecipients that:
(i) Subrecipients will maintain the confidentiality of records pertaining to any individual or family that was provided
family violence prevention or treatment services through the project,
(ii) The address or location of any family violence project assisted under this part will not be made public, except
with written authorization of the person responsible for the operation of such project;
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(iii) Subrecipients will establish policies and practices that are; consistent with, and do not restrict, the exercise of . .
rights provided by subtitle B of title VII of the Act and other laws relating to the provision of educational and related
services to individuals and families experiencing homelessness ;
(iv) In the case of projects that provide housing or services. to families, that subrecipients will designate a staff
person to be responsible for ensuring that children being served in the program are enrolled in school and connected
to appropriate services in the community, including early childhood programs such as Head Start, part C of the
Individuals with Disabilities Education Act, and programs authorized under subtitle B of title VII of the Act;
(v) The, subrecipient, its officers, and employees are not debarred or suspended from doing business with the Federal
Government; and
(vi) Subrecipients will provide information, such as data and reports, as required by HUD ; and
(5) To establish such fiscal control and accounting procedures as may be necessary to assure the proper disbursal of,
and accounting for grant funds in order to ensure that all financial transactions are conducted, and records
maintained in accordance with generally accepted accounting principles , if the recipient is a UFA;
(6) To monitor subrecipient match and report on match to HUD ;
(7) To take the educational needs of children into account when families are placed in housing and will, to the
maximum extent practicable, place families with children as close as possible to their school of origin so as not to
disrupt such children's education; -
(8) To monitor subrecipients at least annually;
(9) To use the centralized or coordinated assessment system established by the Continuum of Care as set forth in
§578 .7(a)(8). A victim service provider may choose not to use the Continuum of Care's centralized or coordinated
assessment system, provided that victim service providers in the area use a centralized or coordinated assessment
system that meets HUD's minimum requirements and the victim service provider uses that system instead;
( 10) To follow the written standards for providing Continuum of Care assistance developed by the Continuum of
Care, including the minimum requirements set forth in §578 .7 (a)(9) ,
( 11 ) Enter into subrecipient agreements requiring subrecipients to operate the project(s) in accordance with the
provisions of this Act and all requirements under 24 CFR part 578 ; and
( 12) To comply with such other terms and conditions as HUD may establish by NOFA.
§ 578 .25 Site control.
(a) In general. When grant funds will be used for acquisition, rehabilitation, new construction, operating costs, or to
provide supportive services, the recipient or subrecipient must demonstrate that it has site control within the time
frame established in section § 578 .21 before HUD will execute a grant agreement. This requirement does not apply
to funds used for housing that will eventually be owned or controlled by the individuals or families served or for _
supportive services provided at sites not operated by the recipient or subrecipient.
(b) Evidence. Acceptable evidence of site control is a deed or lease. If grant funds will be used for acquisition,
acceptable evidence of site control will be a purchase agreement. The owner, lessee, and purchaser shown on these
documents must be the selected applicant or intended subrecipient identified in the application for assistance.
(c) Tax credit projects. ( 1 ) Applicants that plan to use the low- income housing tax credit authorized under 26 U. S .C.
42 to finance a project must prove to HUD's satisfaction that the applicant or subrecipient identified in the
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application is in control of the. limited partnership or limited liability corporation that has a deed or lease for the
project site.
(i) To have control of the limited partnership, the applicant or subrecipient must be the general partner of the limited
partnership or have a 51 percent controlling interest in that general partner.
(ii) To have control of the limited liability company, the applicant or subrecipient must be the sole managing
member.
(2) If grant funds are to be used for acquisition, rehabilitation, or new construction, the recipient or subrecipient
must maintain control of the partnership or corporation and must ensure that the project is operated in compliance
with law and regulation for 15 years from the date of initial occupancy or initial service provision. The partnership
or corporation must own the project site throughout the 15-year period . If grant funds were not used for acquisition,
rehabilitation, or new construction, then the recipient or subrecipient must maintain control for the term of the grant
agreement and any renewals thereof.
§ 578 .27 Consolidated plan.
(a) States or units of general local government. An applicant that is a State or a unit of general local government
must have a HUD-approved, complete or abbreviated, consolidated plan in accordance with 24 CFR part 91 . The
applicant must submit a certification that the application for funding is consistent with the HUD-approved
consolidated plan(s) for the jurisdiction(s) in which the proposed project will be located. Funded applicants must
certify in a grant agreement that they are following the HUD-approved consolidated plan. -
(b) Other applicants. Applicants that are not States or units of general local government must submit a certification
by the jurisdiction(s) in which the proposed project will be located that the applicant's application for funding is
consistent with the jurisdiction's HUD-approved consolidated plan. The certification must be made by the unit of
general local government or the State, in accordance with the consistency certification provisions under 24 CFR part
91 , subpart F. If the jurisdiction refuses to provide a certification of consistency, the applicant may appeal to HUD
under §578 . 35 .
(c) Timing of consolidated plan certification submissions. The required certification that the application for funding
is consistent with the HUD-approved consolidated plan must be submitted by. the funding application submission
deadline announced in the NOFA.
§ 578.29 Subsidy layering.
HUD may provide assistance under this program only in accordance with HUD subsidy layering requirements in
section 102 of the Housing and Urban Development Reform Act of 1989 (42 U. S .C. 3545 ) and 24 CFR part 4,
subpart A. An applicant must submit information in its application on other sources of governmental assistance that
the applicant has received, or reasonably expects to receive, for a proposed project or activities. HUD's review of
this information is intended to prevent excessive public assistance for proposed project or activities by combining
(layering) assistance under this program with other governmental housing assistance from federal, State, or local
agencies, including assistance such as tax concessions or tax credits.
§ 578.31 Environmental review. —
(a) Activities under this part are subject to environmental review by HUD under 24 CFR part 50. The recipient or
subrecipient shall supply all available, relevant information necessary for HUD to perform, for each property, any
environmental review required by 24 CFR part 50. The. recipient or subrecipient must carry out mitigating measures
required by HUD or select an alternate eligible property. HUD may eliminate from consideration any application
that would require an Environmental Impact Statement.
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(b) The recipient or subrecipient, its project partners, and their contractors may not acquire, rehabilitate, convert,
lease, repair, dispose of, demolish, or construct property for a project under this part, or commit or expend HUD or
local funds for such eligible activities under this part, until HUD has performed an environmental review under 24
CFR part 50 and the recipient or subrecipient has received HUD approval of the property.
§ 578.33 Renewals.
(a) In general. Awards made under this part and title IV of the Act, as in effect before August 30, 2012 (the
Supportive Housing Program and the Shelter Plus Care program), may be renewed to continue ongoing leasing,
operations, supportive services, rental assistance, HMIS , and administration beyond the initial funding period. To be
considered for funding, recipients must submit a request in a form specified by HUD, must meet the requirements of
this part, and must submit the request within the time frame established by HUD.
(b) Length of renewal. HUD may award up to 3 years of funds for supportive services, leasing, HMIS, and operating
costs.. Renewals of tenant-based and sponsor-based rental assistance may be for up to one year of rental assistance.
Renewals of project-based rental assistance may be for up to 15 years of rental assistance, subject to availability of
annual appropriations.
(c) Assistance available. ( 1 ) Assistance during each year of a renewal period may be for:
(i) Up to 100 percent of the amount for supportive services and HMIS costs in the final year of the prior funding
period;
(ii) Up to 100 percent of the amount for leasing and operating in the final year of the prior funding period adjusted in
proportion to changes in the FMR for the geographic area; and
(iii) For rental assistance, up to - 100 percent of the result of multiplying the number and unit size(s) in the. grant
agreement by the number of months in the renewal grant term and the applicable FMR.
(d) Review criteria. ( 1 ) Awards made under title IV of the Act, as in effect before August 30, 2012 are eligible for
renewal in the Continuum of Care program even if the awardees would not be eligible for a new grant under the
program, so long as they continue to serve the same population and the same number of persons or units in the same
type of housing as identified in their most recently amended grant agreement signed before August 30, 2012. Grants
will be renewed if HUD receives a certification from the Continuum that there is a demonstrated need for the
project, and HUD finds that the project complied with program requirements applicable before August 30, 20,12. For
purposes of meeting the requirements of this part, a project will continue to be administered in accordance with 24
CFR 582 . 330, if the project received funding under the Shelter Plus Care program, or 24 CFR 583 .325 , if the project
received funding under the Supportive Housing Program.
(2) Renewal of awards made after August 30, 2012. Review criteria for competitively awarded renewals made after
August 30, 2012 will be described in the NOFA.
(e) Unsuccessful projects. HUD may renew a project that was eligible for renewal in the competition and was part of
an application that was not funded despite having been submitted on time, in the manner required by HUD, and
containing the information required by HUD, upon a finding that the project meets the purposes of the Continuum of
Care program. The renewal will not exceed more than one year and will be under such conditions as HUD deems —
appropriate.
(f) Annual Performance Report condition. HUD may terminate the renewal of any grant and require. the recipient to
repay the renewal grant if:
( 1 ) The recipient fails to timely submit a HUD Annual Performance Report (APR) for the grant year immediately
prior to renewal ; or
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(2) The recipient submits an APR that HUD deems unacceptable or shows noncompliance with the requirements of
the grant and this part.
§ 578.35 Appeal.
(a) In general. Failure to follow the procedures or meet the deadlines established in this section will result in denial
of the appeal.
(b) Solo applicants. ( 1 ) Who may appeal. Nonprofits, States, and local governments, and instrumentalities of State or
local governments that attempted to participate in the Continuum of Care planning process in the geographic area in
which they operate, that believe they were denied the right to participate in a reasonable manner, and that submitted
a solo application for funding by the application deadline established in the NOFA, may appeal the decision of the
Continuum to HUD.
(2) Notice of intent to appeal. The solo applicant must submit a written notice of intent to appeal, with a copy to the
Continuum, with their funding application.
(3) Deadline for submitting proof. No later than 30 days after the date that HUD announces the awards, the solo
applicant shall submit in writing, with a copy to the Continuum, all relevant evidence supporting its claim, in such
manner as HUD may require by Notice.
(4) Response from the Continuum of Care. The Continuum shall have 30 days from the date of its receipt of the solo
applicant's evidence to respond to HUD in writing and in such manner as HUD may require, with a copy to the solo
applicant.
(5 ) Decision. HUD will notify the solo applicant and the Continuum of its decision within 60 days of receipt of the
Continuum's response.
(6) Funding. If HUD finds that the solo applicant was not permitted . to participate in the Continuum of Care
planning process in a reasonable manner, then HUD may award a grant to the solo applicant when funds next
become available and may direct the Continuum of Case to take remedial steps to ensure reasonable participation in
the future. HUD may also reduce the award to the Continuum's applicant(s) .
(c) Denied or decreased funding. ( 1 ) Who may appeal. Eligible applicants that are denied funds by HUD, or that
requested more funds than HUD awarded to them, may appeal the award by filing a written appeal, in such form and
manner as HUD may require by Notice, within 45 days of the date of HUD's announcement of the award.
(2) Decision. HUD will notify the applicant of its decision on the appeal within 60 days of HUD's receipt of the
written appeal. HUD will reverse a decision only when the applicant can show that HUD error caused the denial or
decrease.
(3) Funding. Awards and increases to awards made upon appeal will be made from next available funds.
(d) Competing Continuums of Care. ( 1 ) In general. If more than one Continuum of Care claims the same geographic
area, HUD will award funds to the Continuum applicant(s) whose application(s) has the highest total score. No _
projects will be funded from the lower scoring Continuum. No projects that are submitted in two or more competing
Continuum of Care applications will be funded.
(2) Who may appeal. The designated applicant(s) for the lower scoring Continuum may appeal HUD's decision to .
fund the application(s) from the competing Continuum by filing a written appeal, in such form and manner as HUD
may require by Notice, within 45 days of the date of HUD's announcement of the award.
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(3) Decision. HUD will notify the applicant(s) of its decision on the appeal within 60 days of the date of Hole) s
receipt of the written appeal.. HUD will. reverse a decision only upon a showing by the applicant that HUD error
caused the denial.
(e) Consolidated plan certification. ( 1 ) In general. An applicant may appeal to HUD a jurisdiction's refusal to ,
provide a certification of consistency with the Consolidated Plan.
(2) Procedure. The applicant must submit a written appeal with its application to HUD and send a copy of the
appeal to the jurisdiction that denied the certification of consistency. The appeal must include, at a minimum:
(i) A copy of the applicant's request to the jurisdiction for the certification of consistency with the Consolidated
Plan ;
(ii) A copy of the jurisdiction's response stating the reasons for denial, including the reasons the proposed project is
not consistent with the jurisdiction 's Consolidated Plan in accordance with 24 CFR 91 .500(c); and
(iii) A statement of the reasons why the applicant believes its project is consistent with the jurisdiction's
Consolidated Plan.
(3) Jurisdiction response. The jurisdiction that refused to provide the certification of consistency with the
jurisdiction 's Consolidated Plan shall have 10 days after receipt of a copy of the appeal to submit a written
explanation of the reasons originally given for refusing to provide the certification and a written rebuttal to any
claims made by the applicant in the appeal.
(4) HUD review. (i) HUD will issue its decision within 45 days of the date of HUD's receipt of the jurisdiction's
response. As part of its review, HUD will consider:
(A) Whether the applicant submitted the request to the appropriate political jurisdiction; and
(B ) The reasonableness of the jurisdiction's refusal to provide the certificate.
(ii) If the jurisdiction did not provide written reasons for refusal, including the reasons why the project is not
consistent with the jurisdiction's Consolidated Plan in its initial . response to the applicant's request fora certification,
HUD will find for the applicant without further inquiry or response from the political jurisdiction.
Subpart . D—Program Components and Eligible Costs
Pa
§ 578 .37 Program components and uses of assistance.
(a) Continuum of Care funds may be used to pay for the eligible costs listed in § 578.39 through §578 . 63 when used
to establish and operate projects under five program components: permanent housing; transitional housing;
supportive services only; HMIS ; and , in some cases, homelessness prevention. Although grant funds may be used by
recipients and subrecipients in all components for the eligible costs of contributing data to the HMIS designated by
the Continuum of Care, only HMIS Leads may use grant funds for an HMIS component. Administrative costs are
eligible for all components. All components are subject to the restrictions on combining funds for certain eligible —
activities in a single project found in §578 . 87(c) . The eligible program components are:
( 1 ) Permanent housing (PH). Permanent housing is community.-based housing, the purpose of which is to provide
housing without a designated. length. of stay. Grant funds may be used for acquisition, rehabilitation, new
construction, leasing, rental assistance, operating .costs, and supportive services . PH includes:
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(i) Permanent supportive housing for persons With disabilities (PSH): PSH can only provide assistance to
individuals with disabilities and families in which one adult or child has a disability. . Supportive services designed to
meet the needs of the program participants must be made available to the program participants.
(ii) Rapid rehousing. Continuum of Care funds may provide supportive services, as set forth in §578 .53 , and/or
short-term (up to 3 months) and/or medium-term (for 3 to 24 months) tenant-based rental assistance, as set forth in
§578 .51 (c), as necessary to help a homeless individual or family, with or without disabilities, move as quickly as
possible into permanent housing and achieve stability in that housing: When providing short-term and/or medium-
term rental assistance to program participants, the rental assistance is subject to §578.51 (a)( 1 ), but not
§578 .51 (a)( 1 )(i) and (ii) ; (a)(2) ; (c) and (f) through (i) ; and (1)( 1 ). These projects :
(A) Must follow the written policies and procedures established by the Continuum of Care for determining and
prioritizing which eligible families and individuals will receive rapid rehousing assistance, as well as the amount or j
percentage of rent that each program participant- must pay.
(B ) May set a maximum amount or percentage of rental assistance that a program participant may receive, a
maximum number of months that a program participant may receive rental assistance, and/or a maximum number of
times that a program participant may receive rental assistance. The recipient or subrecipient may also require
program participants to share in the costs of rent. For the purposes of calculating rent for rapid rehousing, the rent
shall equal the sum of the total n onthly rent fortheunit and, if the tenant pays separately for utilities, the monthly
allowance for utilities (excluding telephone) established by the public, housing authority- for the area ink which the
housing is located.
(C) Limit rental assistance to no more than 24 months to a household.
(D) May provide supportive services for no longer than 6 months after rental assistance stops.
(E) Must re-evaluate, not less . than once annually, that the .program participant lacks sufficient resources and support,
networks necessary to retain housing without Continuum of Care assistance and. the types and amounts of assistance
that the program participant needs to retain housing. The recipient or subrecipient may require each, program.
participant receiving assistance to notify the recipient or subrecipient of changes in the program participant's income
or other circumstances ( e. g. , changes in household composition) that affect the program participant's need for
assistance. When 'notified of a relevant change, the recipient or subrecipient must reevaluate the program
participant's eligibility and the amount and types of assistance that the program participant needs.
(F) Require the program participant to meet with a case manager not less than once per month to assist the program
participant in ensuring lona term housing stability. The project is . exempt from this requirement if the Violence
Against Women Act of 1994 (42 U.S .C. 13925 et seq. ) or the Family Violence Prevention and Services Act (42
U. S .C . 10401 et seq. ) prohibits the recipient carrying out the project from .making its housing conditional on the
participant's acceptance of services.
, .
(2) Transitional Housing (TH). Transitional housing facilitates the movement of homeless individuals and families
to PH within 24 months of entering TH. Grant funds may be used for acquisition, rehabilitation, new construction,
leasing, rental assistance, operating costs, and supportive services. '
(3) Supportive ' Service Only (SSO). Funds may be used for acquisition; rehabilitation, relocation costs, or leasing of a
facility from which supportive services will be provided, and supportive services in order to provide supportive
services to unsheltered and sheltered homeless persons for whom the recipient or subrecipient is not providing
housing or housing assistance. SSO includes street 'outreach.
(4) HMIS. Funds may be used by HMIS Leads to lease a structure in which the HMIS is operated or as. operating
funds to operate a structure in which the HMIS is operated, and for other costs eligible in § 578 .57 .
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(5) Homelessness prevention. Funds may be used by recipients in Continuums of Care-designated high-performing
communities for housing relocation and stabilization services, and short- and/or medium-term rental assistance, as
described in 24 CFR 576. 105 and 24 CFR 576 . 106, that are necessary to prevent an individual or family from
becoming homeless.
(b) Uses of assistance. Funds are available to pay for the eligible costs listed in §578.39 through §578 .63 when used
to:
( 1 ) Establish new housing or new facilities to provide supportive services ;
(2) Expand existing housing and facilities in order to increase the number of homeless persons served;
(3) Bring existing housing and facilities into compliance with State and local government health and safety
standards, as described in §578 . 87 ;
(4) Preserve existing permanent housing and facilities that provide supportive services;
(5 ) Provide supportive services for residents of supportive housing or for homeless persons not residing in
supportive housing;
(6) Continue funding permanent housing when the recipient has received funding under this part for leasing,
supportive services, operating costs, or rental assistance ;
(7) Establish and operate an HMIS or comparable database ; and
(8) Establish and carry out a Continuum of Care planning process and operate a Continuum of Care,
(c) Multiple _purposes. Structures used to provide housing, supportive housing, supportive services , or as a facility
for HMIS activities may also be used for other purposes. However, assistance under this part will be available only
in proportion to the use of the structure for supportive housing or supportive services. If eligible and ineligible
activities are carried out in separate portions of the same structure or in separate structures, grant funds may not be
used to pay for more than the actual cost of acquisition, construction, or rehabilitation of the portion of the structure
or structures used for eligible activities. If eligible and ineligible activities are carried out in the same structure, the
costs will be prorated based on the amount of time that the space is used for eligible versus ineligible activities,
§ 578 .39 Continuum of Care planning activities.
(a) In general. Collaborative applicants may use up to 3 percent of their FPRN, or a maximum amount to be
established by the NOFA, for costs of:
( 1 ) Designing and carrying out a collaborative process for the development of an application to HUD;
(2) Evaluating the outcomes of projects for which funds are awarded in the geographic area under the Continuum of
Care and the Emergency Solutions Grants programs ; and
(3 ) Participating in the consolidated plan(s) for the geographic area(s),
(b) Continuum of Care planning activities. Eligible planning costs include the costs of:
( 1 ) Developing a communitywide or regionwide process involving the coordination of nonprofit homeless providers,
victim service providers, faith-based organizations, governments, businesses, advocates, public housing agencies,
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school districts; social service providers, mental health agencies, hospitals, universities, affordable housing
developers, law enforcement, organizations that serve veterans, and homeless and formerly homeless individuals,
(2) Determining the geographic area that the Continuum of Care will serve ;
(3 ) Developing a Continuum of Care system; .
(4) Evaluating the outcomes of projects for which funds are awarded in the geographic area, including the
Emergency Solutions Grants program;
(5 ) Participating in the consolidated plan(s) of the jurisdiction(s) in the geographic area; and
(6) Preparing and submitting an application to HUD on behalf of the entire Continuum of Care membership,
including conducting a sheltered and unsheltered point4n-time count and other data collection as required by HUD.
(c) Monitoring costs. The costs of monitoring recipients and subrecipients and enforcing compliance with program
requirements are eligible.
§ 578 .41 Unified . Funding Agency costs.
(a) In general. UFAs may use up to 3 percent of their FPRN, or a maximum amount to be established by the NOFA,
whichever is less, for fiscal control and accounting costs necessary to assure the proper disbursal of, and accounting
for, federal funds awarded to subrecipients under the Continuum of Care program.
(b) UFA costs. UFA costs include costs of ensuring that all financial transactions carried out under the Continuum of
Care program are conducted and records are maintained in accordance with generally accepted accounting
principles, including arranging for an annual survey, audit, or evaluation of the financial records of each project
carried out by a subrecipient funded by a grant received through the Continuum of Care program.
(c) Monitoring costs. The costs of monitoring subrecipients and enforcing compliance with program requirements
are eligible for costs.
§ 578 .43 Acquisition. pa.
Grant funds may be used to pay up to 100 percent of the cost of acquisition of real property selected by the recipient
or subrecipient for use in the provision of housing or supportive services for homeless persons.
§ 578.45 Rehabilitation.
(a) Use. Grant funds may be used to pay up to 100 percent of the cost of rehabilitation of structures to provide
housing or supportive services to homeless persons.
(bYg Eligible costs. Eligible rehabilitation costs include installing cost-effective energy measures, and bringing an '
existing structure to State and local government health and safety standards.
(c) Ineligible costs. Grant funds may not be used for rehabilitation of leased property.
§ 578 .47 New construction.
(a) Use. Grant funds may used to :
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( 1 ) Pay up to 100 percent of the cost of new construction, including the building of a new structure or building an
addition to an existing structure that increases the floor area by 100 percent or more, and the cost of land associated
with that construction, for. use as housing.
(2) If grant funds are used for new construction, the applicant must demonstrate that the costs of new construction
are substantially less than the costs of rehabilitation or that there is a lack of available appropriate units that could be
rehabilitated at a cost less than new construction. For purposes of this cost comparison, costs of rehabilitation or new
construction may include the cost of real property acquisition .
(b) Ineligible costs. Grant funds may not be used for new construction on leased property.
§ 578 .49 Leasing.
(a) Use. ( 1 ) Where the recipient or subrecipient is leasing the structure, or portions thereof, grant funds may be used
to pay for 100 percent of the costs of leasing a structure or structures, or portions thereof, to provide housing or
supportive services to homeless persons for up to 3 years. Leasing funds may not be used to lease units or structures
owned by the recipient, subrecipient, their parent organization(s), any other related organization(s), or organizations
that are members of a partnership, where the partnership owns the structure, unless HUD authorized an exception for
good cause.
(2) Any request for an exception must include the following:
(i) A description of how leasing these structures is in the best interest of the program;
(ii) Supporting documentation showing that the leasing charges paid with grant funds are reasonable for the market;
and
(iii) A copy of the written policy for resolving disputes between the landlord and tenant, including a recusal for
officers, agents; and staff who work for both the landlord and tenant.
(b) Requirements. ( 1 ) Leasing structures. When grants are used to pay rent for all or part of a structure or structures,
the rent paid must be reasonable in relation to rents being charged in the area for comparable space. In addition, the
rent paid may not exceed rents currently being charged by the same owner for comparable unassisted space.
(2) Leasing individual units. When grants are used to pay rent for individual housing units, the rent paid must be
reasonable in relation to rents being charged for comparable units, taking into account the location, size, type,
quality, amenities, facilities, and management services. In addition, the rents may not exceed rents currently being
charged for comparable units, and the rent paid may not exceed HUD-determined fair market rents.
(3)' Utilities. If electricity, gas, and water are included in the rent, these utilities may be paid from leasing funds. If
utilities are not provided by the landlord, these utility costs are an operating cost, except for supportive service
facilities. If the structure is being used as a supportive service facility, then these utility costs are a supportive
service cost.
(4) Security deposits and first and last month's rent. Recipients and subrecipients may use grant funds to pay
security deposits, in an amount not to exceed 2 months of actual 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 the first month's rent.
(5) Occupancy agreements and subleases. Occupancy agreements and subleases are required as specified in
§ 578 .77(a) .
(6) Calculation of occupancy charges and rent. Occupancy charges and rent from program participants must be
calculated as provided in §578.77 .
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(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-term, 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 transitional or
ILL
permanent housing.
(2) Grant funds may be used for security deposits in an amount not to exceed 2 months of rent. An advance 4 payment
of the lash 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 ILL
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 of the 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
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health agency established as a public nonprofit organization. Program participants must reside in housing owned or
leased by the sponsor. Up to 5 years worth of rental assistance may be awarded to a project in one competition. .
(e) Project-based rental assistance. Project-based rental assistance is provided through a contract with the owner of
an existing structure, where the owner agrees to lease the subsidized units to program participants . Program
participants will not retain rental assistance if they move. Up to 15 years of rental assistance may be awarded in one
competition.
(f) Grant amount. The amount of rental assistance in each project will be based on the number and size of units
proposed by the applicant to be assisted over the grant period. The amount of rental assistance in each project will be
calculated by multiplying the number and size of units proposed by the FMR of each unit on the date the application
is submitted to HUD, by the term of the grant.
(g) Rent reasonableness. HUD will only provide rental assistance for a unit if the rent is reasonable. The recipient or
subrecipient must determine whether the rent charged for the unit receiving rental assistance is reasonable in relation
to rents being charged for comparable unassisted units, taking into account the location, size, type, quality,
amenities, facilities, and management and maintenance of each unit. Reasonable rent must not exceed rents currently
being charged by the same owner for comparable unassisted units.
(h) Payment of grant. ( 1 ) The amount of rental assistance in each project will be reserved for rental assistance over
the grant period. An applicant's request for rental assistance in each grant is an estimate of the amount needed for
rental assistance. Recipients will make draws from the grant funds to pay the actual costs of rental assistance for
program participants.
(2) For tenant-based rental assistance, on demonstration of need:
(i) Up to 25 percent of the total rental assistance awarded may be spent in any year of a 5-year grant term; or
(ii) A higher percentage if approved in advance by HUD, if the recipient provides evidence satisfactory to HUD that
it is financially committed to providing. the housing assistance described in the application for the full 5-year period.
(3 ) A recipient must serve at least as many program participants as shown in its application for assistance.
(4) If the amount in each grant reserved for rental assistance over the grant period exceeds the amount that. will be
needed to pay the actual costs of rental assistance, due to such factors as contract rents being lower than FMRs and
program participants being able to pay a portion of the rent, recipients or subrecipients may use the excess funds for
covering the costs of rent increases, or for serving a greater number of program participants.
(i) Vacancies. If a unit assisted under this section is vacated before the expiration of the lease, the assistance for the
unit may continue for a maximum of 30 days from the end of the month in which the unit was vacated, unless
occupied by another eligible person. No additional assistance will be paid until the unit is occupied by another
eligible person. Brief periods of stays in institutions, not to exceed 90 days for each occurrence, are not considered
vacancies.
0 ) Property damage. Recipients and subrecipients may use grant funds in an amount not to exceed one month's rent
to pay for any damage to housing due to the action of a program participant. This shall be a one-time cost per
participant, incurred at the time a participant exits a housing unit.
(k) Resident rent. Rent must be calculated as provided in §578 .77 . Rents collected from program participants are
program income and may be used as provided under §578 .97 .
(1) Leases. ( 1 ) Initial lease. For project-based, sponsor-based, or tenant-based rental assistance, program participants
must enter into a lease agreement for a term of at least one year, which is terminable for cause. The leases must be
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automatically renewable upon expiration for terms that area minimum of monthlong, except on prior notice by
either party.
(2) Initial lease for transitional housing. Program participants in transitional housing must enter into a lease
agreement for a term of at least one month. The lease must be automatically renewable upon expiration, except on
prior notice by either party, up to a maximum term of 24 months.
§ 578.53 Supportive services .
(a) In general. Grant funds may be used to pay the eligible costs of supportive services that address the special needs
of the program participants. If the supportive services are provided in a supportive service facilitynot contained in a '
housing structure, the costs of day-to-day operation of the supportive service facility, including maintenance, repair,
building security, furniture, utilities, and equipment are eligible as a supportive service.
( 1 ) Supportive services must be necessary to assistprogram participants obtain and maintain housing.
(2) Recipients and subrecipients shall conduct an annual assessment of the service needs of the program participants
and should . adjust services accordingly.
(b) Duration. ( 1 ) For a transitional housing project, supportive services must be made available to residents
throughout the duration of their residence in the project.
(2) Permanent supportive housing projects must provide supportive services for the residents to enable them to live
as independently as is practicable throughout the duration of their residence in the project.
(3) Services may also be provided to former residents of transitional housing and current residents of permanent
housing who were homeless in the prior 6 months, for no more than 6 months after leaving transitional housing or
homelessness, respectively, to assist their adjustment to independent living.
(4) Rapid rehousing projects must require the program participant to meet with a case manager not less than once
per month as set forth in § 578 .37 (a)( 1 )(ii)(F) , to assist the program participant in maintaining long-term housing
stability .
(c) Special populations. All eligible -costs are eligible to the same extent for program participants who are
unaccompanied homeless youth; persons living with HIV/AIDS ; and victims of domestic violence, dating violence,
sexual assault, or stalking.
(d) Ineligible costs. Any cost that isnot described as an eligible cost under. this section is not an eligible cost of
providing supportive services' using Continuum of Care program funds. Staff training and the costs of obtaining
professional licenses or certifications needed to provide supportive services are not eligible costs.
(e) Eligible costs. '
( 1 ) Annual Assessment of Service Needs. The costs of the assessment required by § 578 .53(a)(2) are eligible costs.
(2) Assistance with moving costs. Reasonable one-time moving costs are eligible and include truck rental and hiring
a moving company.
(3) Case management. The costs of assessing, arranging, coordinating, and monitoring the delivery of individualized
services to meet the needs of the program participant(s) are eligible costs. Component services and activities consist
of:
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(i) Counseling;
(ii) Developing, securing, and coordinating services ;
(iii) Using the centralized or coordinated assessment system as required under §578 .23 (c)(9).
(iv) Obtaining federal, State, and local benefits ;
(v) Monitoring and evaluating program participant progress ;
(vi) Providing information and referrals to other providers ;
(vii) Providing ongoing risk assessment and safety planning with victims of domestic violence, dating violence,
sexual assault, and stalking; and
(viii) Developing an individualized housing and service plan, including planning a path to permanent housing
stability.
(4) Child care. The costs of establishing and operating child care, and providing child-care vouchers, for children
from families experiencing homelessness, including providing meals and snacks, and comprehensive and
coordinated developmental activities, are eligible.
(i) The children must be under the age of 13 , unless they are disabled children .
(ii) Disabled children must be under the age of 18 .
(iii) The child-care center must be licensed by the jurisdiction in which it operates in order for its costs to be eligible.
(5) Education services. The costs of improving knowledge and basic educational skills are eligible.
(i) Services include instruction or training in consumer education, health education, substance abuse prevention,
literacy, English as a Second Language, and General Educational Development (GED) .
(ii) Component services or activities are screening, assessment and testing; individual or group instruction ; tutoring;
provision of books, supplies, and instructional material; counseling; and referral to community resources.
(6) Employment assistance and job training. The costs of establishing and operating employment 'assistance and job
training programs are eligible, including classroom, online and/or computer instruction, on-the job instruction,
services that assist individuals in securing employment, acquiring learning skills, and/or increasing earning
potential. The cost of providing reasonable stipends to program participants in employment assistance and job
training programs is also an eligible cost.
(i) Learning skills include those skills that can be used to secure and retain a job, including the acquisition of
vocational licenses and/or certificates .
(ii) Services that assist individuals in securing employment consist of.
(A) Employment screening, assessment, or testing;
(B ) Structured job skills and job-seeking skills ;
(C) Special training and tutoring, including literacy training and pre-vocational training ;
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(D) Books and instructional material ;
(E) Counseling or job coaching; and
(F) Referral to community resources.
(7) Food. The cost of providing meals or groceries to program participants is eligible.
(8) Housing search and counseling services. Costs of assisting eligible program participants to locate; obtain, and
retain suitable housing are eligible.
(i) Component services or activities are tenant counseling; assisting individuals and families to understand leases ;
securing utilities; and making moving arrangements.
(ii) Other eligible costs are:
(A) Mediation with property owners and landlords on behalf of eligible program participants ;
(B) Credit counseling, accessing a free personal credit report, and resolving personal credit issues ; and
(C) The payment of rental application fees.
(9) Legal services. Eligible costs are the fees charged by licensed attorneys and by person(s) under the supervision
of licensed attorneys, for advice and representation in matters that interfere with the homeless individual or family's
ability to obtain and retain housing.
(i) Eligible subject matters are child support; guardianship; paternity; emancipation , legal separation; orders of
protection and other civil remedies for victims of domestic violence, dating violence, sexual assault, and stalking;
appeal of veterans and public benefit claim denials; landlord tenant disputes ; and the resolution of outstanding
criminal warrants.
(ii) Component services or activities may include receiving and preparing cases for trial, provision of legal advice,
representation at hearings, and counseling .
(iii) Fees based on the actual service performed (i .e. , fee for service) are also eligible, but only if the cost would be
less than the cost of hourly fees . Filing fees and other necessary court costs are also eligible. If the subrecipient is a
legal services provider and performs the services itself, the eligible costs are the subrecipient's employees' salaries
and other costs necessary to perform the services.
(iv) Legal services for immigration . and citizenship matters and issues related to mortgages and homeownership are
ineligible. Retainer fee arrangements and contingency fee arrangements are ineligible.
( 10) Life skills training. The costs of teaching critical life management skills that may never have been learned or
have been lost during the course of physical or mental illness, domestic violence, substance abuse, and homelessness
are eligible. These services must be necessary to assist the program participant to function independently in the
community. Component life skills training are the budgeting of resources and money management, household
management, conflict management, shopping for food and other needed items, nutrition, the use of public
transportation, and parent training.
( 11 ) Mental health services. Eligible costs are the direct outpatient treatment of mental health conditions that are
provided by licensed professionals . Component services are crisis interventions ; counseling, individual, family, or
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group therapy sessions; the prescription of psychotropic medications or explanations about the use and management
of medications; and combinations of therapeutic approaches to address multiple problems.
( 12) Outpatient health services. Eligible costs are the direct outpatient treatment of medical conditions when
provided by licensed medical professionals including: . ,.
(i) Providing an analysis or assessment of an individual's health problems and the development of a treatment plan;
(ii) Assisting individuals to understand their health needs ,
(iii) Providing directly or assisting individuals to obtain and utilize appropriate medical treatment;
(iv) Preventive medical care and health maintenance services, including in-home health services and emergency
medical services ;
(v) Provision of appropriate medication;
(vi) Providing follow-up services ; and
(vii) Preventive and noncosmetic dental care.
( 13) Outreach services. The costs of activities to engage persons for the purpose of providing immediate support and
intervention, as well as identifying potential program participants, are eligible.
(i) Eligible costs include the outreach worker's transportation costs and a cell phone to be used by the individual
performing the outreach.
(ii) Component activities and services consist of. initial assessment, crisis counseling; addressing urgent physical
needs, such as providing meals, blankets, clothes, or toiletries; actively connecting and providing people with
information and referrals to homeless and mainstream programs ; and publicizing the availability of the housing
and/or services provided within the geographic area covered by the Continuum of Care.
( 14) Substance abuse treatment services. The costs of program participant intake and assessment, outpatient
treatment, group and individual counseling, and drug testing are eligible. Inpatient detoxification and other inpatient
drug or alcohol treatment are ineligible.
( 15 ) . Transportation. Eligible costs are:
(i) The costs of program participant's travel on public transportation or in a vehicle provided by the recipient or
subrecipient to and from medical care, employment, child care, or other services eligible under this section.
(ii) Mileage allowance for service workers to visit program participants and to carry out housing quality inspections ,
(iii) The cost of purchasing or leasing a vehicle in which staff transports program participants and/or staff serving
program participants;
(iv) The cost of gas, insurance, taxes, and maintenance for the vehicle;
(v) The costs of recipient or subrecipient staff to accompany or assist program participants to utilize public
transportation; and
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(vi) If public transportation options are not sufficient. within the area, the recipient may make a one-time payment on
behalf of a program participant needing car repairs or maintenance required to operate a personal vehicle, subject to
the following:
(A) Payments for car repairs or maintenance on behalf of the program participant may not exceed 10 percent of the
Blue Book value of the vehicle (Blue Book refers to the guidebook that compiles and quotes prices for new and used
automobiles and other vehicles of all makes, models, and types) ;
(B) Payments for car repairs or maintenance must be paid by the recipient or subrecipient directly to the "third party
that repairs or maintains the car; and
(C) The recipients or subrecipients may require program participants to share in the cost of car repairs or
maintenance as a condition of receiving assistance with car repairs or maintenance.
( 16) Utility deposits. This form of assistance consists of paying for utility deposits . Utility deposits must be a one-
time fee, paid to utility companies .
( 17) Direct provision of services. If the service described in paragraphs (e)( 1 ) through (e)( 16) of this section is being
directly delivered by the recipient or subrecipient, eligible costs for those services also include:
(i) The costs of labor or supplies, and materials incurred by the recipient or subrecipient in directly providing
supportive services to program participants ; and
(ii) The salary and benefit packages of the recipient and subrecipient staff who directly deliver the services.
§ 578.55 Operating costs .
(a) Use. Grant funds may be used to pay the costs of the day-to-day operation of transitional and permanent housing
in a single structure or individual housing units.
(b) Eligible costs. ( 1 ) The maintenance and repair of housing;
(2) Property taxes and insurance ;
(3) Scheduled payments to a reserve for replacement of major systems of the housing (provided that the payments
must be based on the useful life of the system and expected replacement cost);
(4) Building security for a structure where more than 50 percent of the units or area is paid for with grant funds ;
(5 ) Electricity, gas, and water,
(6) Furniture; and
(7) Equipment.
(c) Ineligible costs. Program funds may not be used for rental assistance and operating costs in the same project.
Program funds may not be used for the operating costs of emergency shelter- and supportive service-only facilities.
Program funds may not be used for the maintenance and repair of housing where the costs of maintaining and
repairing the housing are included in the lease . .
§ 578.57 Homeless Management Information System.
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(a) Eligible costs. ( 1 ) The recipient or subrecipient may use Continuum of Care program funds to pay the costs of
contributing data to the HMIS designated by the Continuum of Care, including the costs of:
(i) Purchasing or leasing computer hardware ;
(ii) Purchasing software or software licenses;
(iii) Purchasing or leasing equipment, including telephones, fax machines, and furniture ; .
(iv) Obtaining technical support;
(v) Leasing office space;
(vi) Paying charges for electricity, gas, water, phone service, and high-speed data transmission necessary to operate
or contribute data to the HMIS ;
(vii) Paying salaries for operating HMIS , including:
(A) Completing data entry;
(B ) Monitoring and reviewing 'data quality;
(C) Completing data analysis ;
(D) Reporting to the HMIS Lead;
(E) Training staff on using the HMIS ; and
(F) Implementing and complying with HMIS requirements ;
(viii) Paying costs of staff to travel to and attend HUD-sponsored and HUD-approved training on HMIS and
programs authorized by Title IV of the McKinney-Vento Homeless Assistance Act;
(ix) Paying staff travel costs to conduct intake ; and
(x) Paying participation fees charged by the HMIS Lead, as authorized by HUD, if the recipient or subrecipient is
not the HMIS Lead.
(2) If the recipient or subrecipient is the HMIS Lead, it may also use Continuum of Care funds to pay the costs of:
(i) Hosting and maintaining HMIS software or data;
(ii) Backing up, recovering, or repairing HMIS software or data;
(iii) Upgrading, customizing, and enhancing the HMIS ;
(iv) Integrating and warehousing data, including development of a data warehouse for use in aggregating data from
subrecipients using multiple software systems ;
(v) Administering the system;
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(vi) Reporting to providers, the Continuum of Care, and HUD; and .
(vii) Conducting training on using the system, including traveling to the training.
(3) If the recipient or subrecipient is a victim services provider, or a legal services provider, it may use Continuum
of Care funds to establish and operate a comparable database that complies with HUD's HMIS requirements.
(b) General restrictions Activities funded under this section must comply with the HMIS requirements .
§ 578 .59 Project administrative costs.
(a) Eligible costs. The recipient or subrecipient may use up to 10 percent of any grant awarded under this part,
excluding the amount for Continuum of Care Planning Activities and UFA costs, for the payment of project
administrative costs related to the planning and execution of Continuum of Care activities. This does not include ,
staff and overhead costs directly related to carrying out activities eligible under §578.43 through § 578.57 , because
those costs are eligible as part of those activities. Eligible administrative costs include :
( 1 ) General management, oversight, and coordination. Costs of overall program management, coordination,
monitoring, and evaluation. These costs include, but are not limited to, necessary expenditures for the following:
(i) Salaries, wages, and related costs of the recipient's staff, the staff of subrecipients, or other staff engaged in
program administration. In charging costs to this category , the recipient may include the entire salary, wages, and
related costs allocable to the program of each person whose primary responsibilities with regard to the program
involve program administration assignments, or the pro rata share of the salary, wages, and related costs of each
person whose job includes any program administration assignments. The recipient may use only one of these
methods for each fiscal year grant. Program administration assignments include the following:
. (A) Preparing program budgets and schedules, and amendments to those budgets and schedules ; "
(B ) Developing systems for assuring compliance with program requirements;
(C) Developing agreements with subrecipients and 'contractors to carry out program activities ;
(D) Monitoring program activities for progress and compliance with program requirements,
(E) Preparing reports and other documents directly related to the program for submission to HUD ;
(F) Coordinating the resolution of audit and monitoring findings;
(G) Evaluating program results against stated objectives ; and
(H) Managing or supervising persons whose primary responsibilities with regard to the program include such
assignments as those described in paragraph (a)( 1 )(i)(A) through (G) of this section.
(ii) Travel costs incurred for monitoring of subrecipients;
(iii) Administrative services performed under third-party contracts or agreements, including general legal services,
accounting services, and audit services ; and
(iv) Other costs for goods and services required for administration of the program, including rental or purchase of
equipment, insurance, utilities, office supplies, and rental and maintenance (but not purchase) of office space.
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(2) Training on Continuum of Care requirements. Costs of providing training on Continuum of Care requirements
and attending HUD-sponsored Continuum of Care trainings.
(3) Environmental review. Costs of carrying out the environmental review responsibilities under §578 .31 .
(b) Sharing requirement. ( 1 ) UFAs. If the recipient is a UFA that carries out a project, it may use up to 10 percent of
the grant amount awarded for the project on project administrative costs. The UFA must share the remaining project
administrative funds with its subrecipients.
(2) Recipients that are not UFAs. If the recipient is not a UFA, it must share at least 50 percent of project
administrative funds with its subrecipients .
§ 578 .61 Relocation costs .
(a) In general. Relocation costs under the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 are eligible.
(b) Eligible relocation costs. Eligible costs are costs to provide relocation payments and other assistance to persons
displaced by a project assisted with grant funds in accordance with § 578 . 83 .
§ 578 .63 Indirect costs.
(a) In general. Continuum of Care funds may be used to pay indirect costs in accordance with OMB Circulars A47
or A- 122; as applicable.
(b) Allocation. Indirect costs may be allocated to each eligible activity as provided in subpart D, so long as that
allocation is consistent with an indirect cost rate proposal developed in accordance with OMB Circulars A47 or A-
122, as applicable.
(c) Expenditure limits. The indirect costs charged to an activity subject to an expenditure limit under § §578 .39,
578 .41 , and 578 .59 must be added to the direct costs charged for that activity when determining the total costs
subject to the expenditure limits .
Subpart E—High-Performing Communities
§ 578 .65 Standards.
(a) In general. The collaborative applicant for a Continuum may apply to HUD to have the Continuum be designated
a high-performing community (HPC). The designation shall be for grants awarded in the same competition in which
the designation is applied for and made.
(b) Applying for HPC designation. The application must be submitted at such time and in such manner as HUD may
require, must use HMIS data where required to show the standards for qualifying are met, and must contain such
information as HUD requires, including at a minimum.
( 1 ) A report showing how the Continuum of Care program funds received in the preceding year were expended;
(2) A specific plan for how grant funds will be expended ; and
(3) Information establishing that the Continuum of Care meets the standards for HPCs.
(c) Standards for qualifying as an HPC. To qualify as an HPC, a Continuum must demonstrate through.
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( 1 ) Reliable data generated by the Continuum of Care's HMIS that it meets all of the following standards:
(i) Mean length of homelessness. Either the mean length of episode of homelessness within the Continuum's
geographic area is fewer than 20 days, or the mean length of episodes of homelessness for individuals or families in
similar circumstances was reduced by at least 10 percent from the preceding federal fiscal year.
(ii) Reduced recidivism. Of individuals and families who leave homelessness, less than 5 percent become homeless
again at any time within the next 2 years ; or the percentage of individuals and families in similar circumstances who
become homeless again within 2 years after leaving homelessness was decreased by at least 20 percent from the
preceding federal fiscal year.
(iii) HMIS coverage. The Continuum's HMIS must have a bed coverage rate of 80 percent and a service volume
coverage rate of 80 percent as calculated in accordance with HUD's HMIS requirements.
(iv) Serving families and youth. With respect to Continuums that served homeless families and youth defined as
homeless under other federal statutes in paragraph (3) of the definition of homeless in §576. 2 :
(A) 95 percent of those families and youth did not become homeless again within a 2-year period following
termination of assistance; or
(B) 85 percent of those families achieved independent living in permanent housing for at least 2 years following
termination of assistance.
(2) Reliable data generated from sources other than the Continuum's HMIS that is provided in a narrative or other
form prescribed by HUD that it meets both of the following standards:
(i) Community action. All the metropolitan cities and counties within the Continuum's geographic area have a
comprehensive outreach plan, including specific steps for identifying homeless persons and referring them to
appropriate housing and services in that geographic area.
(ii) Renewing HPC status. If the Continuum was designated an HPC in the previous federal fiscal year and used
Continuum of Care grant funds for activities described under §578 .71 , that such activities were effective at reducing
the number of individuals and families who became homeless in that community.
§ 578.67 Publication of application.
HUD will publish the application to be designated an HPC through the HUD Web site, for public comment as to
whether the Continuum seeking designation as an HPC meets the standards for being one.
§ 578.69 Cooperation among entities.
An HPC must cooperate with HUD in distributing information about its successful efforts to reduce homelessness.
§ 578.71 HPC-eligible activities.
In addition to using grant funds for the eligible costs described in subpart D of this part, recipients and subrecipients
in Continuums of Care designated as HPCs may also use grant funds to provide housing relocation and stabilization
services and short- and/or medium-term rental assistance to individuals and families at risk of homelessness as set
forth in 24 CFR 576 . 103 and 24 CFR 576 . 104, if necessary to prevent the individual or family from becoming
homeless. Activities must be carried out in accordance with the plan submitted in the application. When carrying out
housing relocation and stabilization services and short- and/or medium-term rental assistance, the written standards
set forth in §578 .7 (a)(9)(v) and recordkeeping requirements of 24 CFR 576.500 apply.
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Subpart F—Program Requirements
§ 578 .73 Matching requirements .
(a) In general. The recipient or subrecipient must match all grant funds, except for leasing funds, with no less than
25 percent of funds or in-kind contributions from other sources . For Continuum of Care geographic areas in which
there is more than one grant agreement, the 25 percent match must be provided on a grant-by-grant basis. Recipients
that are UFAs or are the sole recipient for their Continuum, may provide match on a Continuum-wide basis. Cash
match must be used for the costs of activities that are eligible under subpart D of this part, except that_ HPCS may use
such match for the costs of activities that are eligible under §578 .71 .
(b) Cash sources. A recipient or subrecipient may use funds from any source, including any other federal sources
(excluding Continuum of Care program funds), as well as State, local, and private sources, provided that funds from
the source are not statutorily prohibited to be used as a match. The recipient must ensure that any funds used to
satisfy the matching requirements of this section are eligible under the laws governing the funds in order to be used
as matching funds for a grant awarded under this program.
(c) In-kind_ contributions. ( 1 ) The recipient or subrecipient may use the value of any real property, equipment, goods,
or services contributed to the project as match, provided that if the recipient or subrecipient had to pay for them with
grant funds, the costs would have been eligible under Subpart D, or, in the case of HPCs, eligible under §578 .71.
(2) The requirements of 24 CFR 84.23 and 85 . 24 apply.
(3 ) Before grant execution, services to be provided by a third party must be documented by a memorandum of
understanding (MOU) between the recipient or subrecipient and the third party that will provide the services.
Services provided by individuals must be valued at rates consistent with those ordinarily paid for similar work in the
recipient's or subrecipient's organization. If the recipient or subrecipient does not have employees performing similar
work, the rates must be consistent with those ordinarily paid by other employers for similar work in the same labor
market.
(i) The MOU must . establish the unconditional commitment, except for selection to receive a grant, by the third party .
to provide the services, the specific service to be provided, the profession of the persons providing the service, and
the hourly cost of the service to be provided.
(ii) During the term of the grant, the recipient or subrecipient must keep and make available, for inspection, records
documenting the service hours provided.
§ 578.75 General operations.
(a) State and local requirements. ( 1 ) Housing and facilities constructed or rehabilitated with assistance under this
part must meet State or local building codes, and in the absence of State or local building codes; the International
Residential Code or International Building Code (as applicable to the type of structure) of the International Code
Council.
(2) Services provided with assistance under this part must be provided in compliance with all applicable State and
local requirements, including licensing requirements.
(b) Housing quality standards. Housing leased with Continuum of Care program funds, or for which rental
assistance payments are made with Continuum of Care program funds, must meet the applicable housing quality
standards (HQS) under 24 CFR 982.401. of this title, except that 24 CFR 982.401 (* ) applies only to housing
occupied by program participants receiving tenant-based rental assistance. For housing rehabilitated with funds
under this part, the lead-based paint requirements in 24 CFR part 35 , subparts A, B , J, and R apply. For housing that
receives project-based or sponsor-based rental assistance, 24 CFR part 35 , subparts A, B , H, and R apply. For
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residential property for which funds under this part are used for acquisition, leasing, services, or operating costs, 24
CFR part 35 , subparts A, B , K, and R apply.
( 1 ) Before any assistance will be provided on behalf of a program participant, the recipient, or subrecipient, must
physically inspect each unit to, assure that the unit meets HQS . Assistance will not be provided for units that fail to
meet HQS , unless the owner corrects any deficiencies within 30 days from the date of the initial inspection and the
recipient or subrecipient verifies that all deficiencies have been corrected.
(2) Recipients or subrecipients must inspect all units at least annually during the grant period to ensure that the units
continue to meet HQS .
(c) Suitable dwelling size. The dwelling unit must have at least one bedroom or living/sleeping room for each two
persons .
( 1 ) Children of opposite sex, other than very young children, may not be required to occupy the same bedroom or
living/sleeping room.
(2) If household composition changes during the ' term of assistance, recipients and subrecipients may relocate `the
household to a more appropriately sized unit. The household must still have access to appropriate supportive
services.
(d) Meals. Each recipient and subrecipient of assistance under this part who provides supportive housing for
homeless persons with disabilities must provide meals or meal preparation facilities for residents.
(e) Ongoing assessment of supportive services. To the extent practicable, each project must provide supportive
services for residents of the project and homeless persons using the project, which may be designed by the recipient
or participants. Each recipient and subrecipient of assistance under this part must conduct an ongoing assessment of
the supportive services needed' by the residents of the project, the availability of such services, and the coordination
of services needed to ensure long-term housing stability and must make adjustments, as appropriate .
(f) Residential supervision. Each recipient and subrecipient of assistance under this part ' must provide residential
supervision as necessary` to facilitate the adequate provision of supportive services to the residents of the housing
throughout the term of the commitment to operate supportive housing. Residential supervision may include the
employment of a full- or part-time residential supervisor with sufficient knowledge to provide or to supervise the
provision of supportive services to the residents:
(g) Participation of homeless individuals. ( 1 ) Each recipient and subrecipient must provide for the participation of
not less than one homeless individual or formerly homeless individual on the board of directors or other equivalent
policymaking entity of the recipient or subrecipient, to the extent that such entity considers and makes policies and
decisions regarding any project, supportive services, or. assistance provided under this part. This requirement is
waived if a recipient or subrecipient is unable to meet such requirement and obtains HUD approval for a plan to
otherwise consult with homeless or formerly homeless persons when considering and making policies and decisions.
(2) Each recipient and subrecipient of assistance under this part must, to the maximum extent practicable, involve
homeless individuals and families through employment; volunteer services ; or otherwise in constructing,
rehabilitating, maintaining, and operating the project, and in providing supportive services for the project.
(h) Supportive service agreement. Recipients and subrecipients may require the program participants to take .part in
supportive services that are not disability-related services provided through the project as a condition of continued .
participation in the program. Examples of disability4elated services include, but are not limited to, mental health
services, outpatient health services, and provision of medication, which are provided to a person with a disability to
address a condition caused by the disability. Notwithstanding this provision, if the purpose of the project is to
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provide substance abuse treatment services, recipients and subrecipients may require program. participants to take
part in such services as a condition of continued participation in the program.
(i) Retention of assistance after death; incarceration, or institutionalization for more than . 90 days of qualifying
member: For permanent supportive housing projects surviving, members of any household who were living in .a unit
assisted under this part at the time of the qualifying member's death, long-term incarceration, or long-term
institutionalization, have the right to rental assistance under this section until the expiration of the lease in effect at
the time of the qualifying member's death, long-term incarceration, or long-term institutionalization.
§ 578 .77 Calculating occupancy charges and rent.
(a) Occupancy agreements and leases. Recipients and subrecipients must have signed occupancy agreements or
leases (or subleases) with program participants residing in housing.
(b) Calculation of occupancy charges. Recipients and subrecipients are not required to impose occupancy charges
on program participants as a condition of residing in the housing. However, if occupancy charges are imposed, they
may not exceed the highest of.
( 1 ) 30 percent of the family's monthly adjusted income (adjustment factors include the number of people in the
family, age of family members, medical expenses, and child-care expenses) ;
(2) 10 percent of the family's monthly income; or
(3) If the family is receiving payments for welfare assistance from a public agency and a part of the payments
(adjusted in accordance with the family's actual housing costs) is specifically designated by the agency to meet the
family's housing costs, the portion of the payments that is designated for housing costs.
(4) Income. Income must be calculated in accordance with 24 CFR 5 . 609 and 24 CFR 5 . 611 (a). Recipients and
subrecipients must examine a program participant's income initially, and if there is a change in family composition
e. g., birth of a child) or a decrease in the resident's income during the year, the resident may request an interim
reexamination, and the occupancy charge will be adjusted accordingly.
(c) Resident rent. ( 1 ) Amount of rent. (i) Each program participant on whose behalf rental assistance payments are
made must pay a contribution toward rent in accordance`with section 3(a)( 1 ) of the U. S . Housing Act of 1937 (42
U. S .C. 1437a(a)( 1 )) .
(ii) Income of program participants must be calculated in accordance with 24 CFR 5 .609 and 24 CFR 5 .611 (a).
(2) Review. Recipients or subrecipients must examine a program participant's income initially, and at least annually
thereafter, to determine the amount of the contribution toward rent payable by the program participant. Adjustments
to a program participant's contribution toward the rental payment must be made as changes in income are identified.
(3) Verification. As a condition of participation in the program, each program participant must agree to supply the
information or documentation necessary to verify the program participant's income. Program participants must
provide the recipient or subrecipient with information at any time regarding changes in income or other
circumstances that may result in changes to a program participant's contribution toward the rental payment.
§ 578.79 Limitation on transitional housing.
A homeless individual or family may remain in transitional housing for a period longer than 24 months, if
permanent housing for the individual or family has not been located or if the individual or family requires additional
time to prepare for independent living. However, HUD may discontinue assistance for a transitional housing project
if more than half of the homeless individuals or families remain in that project longer than 24 months .
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§ 578 . 81 Term of commitment, repayment of grants, and prevention of undue benefits:
(a) In general. All recipients and subrecipients receiving grant funds for acquisition, rehabilitation, or new
construction must operate the, housing or provide supportive services in accordance with this part, for at least 15
years from the date of initial occupancy or- date of initial service provision: Recipient and subrecipients must execute
and record a HUD-approved Declaration of Restrictive Covenants before receiving payment of giant funds.
(b) Conversion. Recipients and subrecipients carrying out a project that provides transitional or permanent housing
or supportive services in a structure may submit a request to HUD to convert a project for the direct benefit of very
low-income persons . The request must be made while the project is operating as homeless housing or supportive
services for homeless individuals and families, must be in writing, and must . include an explanation of why the
project is no longer needed to provide transitional or permanent housing or supportive services. The primary factor;
in HUD's decision on the proposed conversion is the unmet need for transitional or permanent housing or supportive
services in the Continuum of Care's geographic area.
(c) Repayment of grant funds. If a project is not operated as transitional or permanent housing for 10 years following
the date of initial occupancy, HUD will require repayment of the entire amount of the grant used for acquisition, .
rehabilitation, or new construction, unless conversion of the project has been authorized under paragraph (b) of this
section. If the housing is used for such purposes . for more than 10 years, the payment amount will be reduced by 20
percentage points for each year, beyond the 10-year period to which the project is used for transitional or permanent
housing.
(d) Prevention of undue benefits. Except as provided under paragraph (e) of this section, upon any sale or other -
disposition of a project site that received grant funds for acquisition, rehabilitation, or new construction, occurring
before the 15-year period, the recipient must comply
ml
ith such terms and conditions as 'HUD may prescribe to
prevent the recipient or subrecipient from unduly benefiting from such sale or disposition.
(e) Exception. A recipient or subrecipient will not be required to comply with the terms and conditions prescribed
under paragraphs (c) and (d) of this section if:
( 1 ) The sale or disposition of the property used for the project results in the use of the property, for the direct benefit
of very low-income persons ;
(2) All the proceeds are used to provide transitional or permanent housing that meet the requirements of this part;
(3) Project-based rental assistance or operating cost assistance from any federal program or an equivalent State or
local program is no longer made available and the project is meeting applicable performance standards, provided
that the portion of the project that had benefitted, from such assistance continues to meet the tenant income and rent
restrictions for low-income units under section 42(g) of the Internal Revenue Code of 1986; or
(4) There are no individuals and families in the Continuum of Care geographic area who are homeless, in which case
the project may serve individuals and families at risk of homelessness.
§ 578.83 Displacement, relocation, and acquisition.
(a) Minimizing displacement. Consistent with the other goals and objectives of this part, recipients and subrecipients
must ensure that they have taken all reasonable steps to minimize the displacement of persons (families, individuals,
businesses, nonprofit organizations, and farms) as a result of projects assisted under this part. . "Project," as used in
this section, means any activity or series of activities assisted with Continuum of Care funds received or anticipated
in any phase of an undertaking.
(b) Temporary relocation. ( 1 ) Existing Building Not Assisted under. Title IV of the McKinney= Vento Act. No tenant
may be required to relocate temporarily for aproject if the building in which the project is being undertaken or will
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be undertaken is not currently assisted under Title IV of the McKinneyNento Act. The absence of such assistance to
the building means the tenants are not homeless and the tenants are therefore not eligible to receive assistance under
the Continuum of Care program. When a tenant moves for such a project under conditions that cause the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), 42 U. S .C. 460114655, to apply,
the tenant must be treated as permanently displaced and offered relocation assistance and payments consistent with
paragraph (c) of this section.
(2) Existing Transitional Housing or Permanent Housing Projects Assisted Under Title IV of the McKinney- Vento
Act. Consistent with paragraph .(c)(2)(ii) of this section, no program participant may be required to relocate
temporarily for a project if the person cannot be offered a decent, safe, and sanitary unit in the same building or
complex upon project completion under reasonable terms and conditions. The length of occupancy requirements in
§578 .79 may prevent a program participant from returning to the property upon completion (See paragraph
(c)(2)(iii)(D) of this section) . Any program participant who has been temporarily relocated for a period beyond one
year must be treated as permanently displaced and offered relocation assistance and payments consistent with
paragraph (c) of this section. Program participants temporarily relocated in accordance with the policies described in
this paragraph must be provided :
(i) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation,
including the cost of moving to and from the temporarily occupied housing and any increase in monthly
rent/occupancy charges and utility costs; and
(ii) Appropriate advisory services, including reasonable advance written notice of.
(A) The date and approximate duration of the temporary relocation;
(B ) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period ;
(C) The reasonable terms and conditions under which the program participant will be able to occupy a suitable,
decent, safe, and sanitary dwelling in the building or complex upon completion of the project; and
(D) The provisions of paragraph (b)(2)(i) of this section.
(c) Relocation assistance for displaced persons. ( 1 ) In general. A displaced person (defined in paragraph (c)(2) of
this section) must be provided relocation assistance in accordance with the requirements of the URA and
implementing regulations at 49 CFR part 24 . A displaced person must be advised of his or her rights under the Fair
Housing Act. Whenever possible, minority persons must be given reasonable opportunities to relocate to decent,
safe, and sanitary replacement dwellings, not located in an area of minority concentration, that are within their
financial means. This policy, however, does not require providing a person a larger payment than is necessary to
enable a person to relocate to a comparable replacement dwelling. See 49 CFR 24 .205 (c)(2)(ii)(D) .
(2) Displaced person. (i) For the purposes of paragraph (c) of this section, the term "displaced person' means any
person (family, individual, business, nonprofit organization, or farm) that moves from real property, or moves
personal property from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition for a
project. This includes any permanent, involuntary move for a project, including any permanent move from the real
property that is made :
(A) After the owner (or person in control of the site) issues a notice to move permanently from the property, or
refuses to renew an expiring lease, if the move occurs after the date of the submission by the recipient or
subrecipient of an application for assistance to HUD (or the recipient, as applicable) that is later approved and
funded and the recipient or subrecipient has site control as evidenced in accordance with § 578 . 25(b) ; or
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(B )' After the owner (or person in control of the site) issues a notice to move permanently from the property, or
refuses to renew an expiring lease, if the move occurs after the date the recipient or subrecipient obtains site control,
as evidenced in accordance with §578 .25(b), if that occurs after the application for assistance ; or
(C) Before the date described under paragraph (c)(2)(i)(A) or (B ) of this section, if the recipient or HUD determines
that the displacement resulted directly from acquisition, rehabilitation, or demolition for the project; or
(D) By a tenant of a building that is not assisted under Title IV of the McKinney-Vento Act, if the tenant moves
after execution of the agreement covering the acquisition, rehabilitation, or demolition of the property for the
project, or
(ii) For the purposes of paragraph (c) of this section, the term "displaced person" means any person (family,
individual, business, nonprofit organization, or farm) that moves from real property, or moves personal property
from real property, permanently, as a direct result of acquisition, rehabilitation, or demolition for a project. This
includes any permanent, involuntary move for a project that is made by a program participant occupying transitional
housing or permanent housing assisted under Title IV of the McKinney-Vento Act, if any one of the following three
situations occurs:
(A) The program participant moves after execution of the agreement covering the acquisition, rehabilitation, or
demolition of the property for the project and is either not eligible to return upon project completion or the move
occurs before the program participant is provided written notice offering the program participant an opportunity to
occupy a suitable, decent, safe, and sanitary dwelling in 'the same building or complex uponproject completion "
under reasonable terms and conditions . Such reasonable terms and conditions must include a lease (or occupancy _
agreement, as applicable) consistent with Continuum of Care program requirements, including a monthly rent or
occupancy charge and monthly utility costs that does not exceed the maximum amounts established in §578 .77 ; or
(B ) The program participant is required to relocate temporarily, does not return to the building or complex, and any
one of the following situations occurs :
( 1 ) The program participant is not offered payment for all reasonable out-of-pocket expenses incurred in
connection with the temporary relocation;
( 2 ) The program participant is not eligible to return to the building or complex upon project completion; or
( 3 ) Other conditions of the temporary relocation are not reasonable; or
(C) The program participant is required to move to another unit in the same building or complex, and any one of the
following situations occurs:
( 1 ) The program participant is not offered reimbursement for all reasonable out-of-pocket expenses incurred in
connection with the move ;
( 2 ) The program participant is not eligible to remain in the building or complex upon project completion, or
( 3 ) Other conditions of the move are not reasonable.
(iii) ' Notwithstanding the provisions of paragraph (c)(2)(i) or (ii) of this section, a person does not qualify as a
"displaced person" if:
(A) The person has been evicted for serious or repeated violation of the terms and conditions of the lease or
occupancy agreement; the eviction complied with applicable federal, State, or local requirements (see §578. 91 ); and
the recipient or subrecipient determines that the eviction was not undertaken for the purpose of evading the
obligation to provide relocation assistance ;
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(B) The person moved into the property after the submission of the application but, before signing a lease or
occupancy agreement and commencing occupancy, was provided written notice of the project's possible impact on
the person ( e. g., the person may be displaced, temporarily relocated, or incur a rent increase) and the fact that the
person would not qualify as a "displaced person" (or for any relocation assistance provided under this section), as a
result of the project;
(C) The person is ineligible under 49 CFR 24 . 2(a)(9)(ii)) ;
(D) The person is a program participant occupying transitional housing or permanent housing assisted under Title IV
of the Act who must move as a direct result of the length-of- occupancy restriction under §578 .79 ; or
(E) HUD determines that the person was not displaced as a direct result of acquisition, rehabilitation, or demolition
for the project.
(iv) The recipient may request, at any time, HUD's determination of whether a displacement is or would be covered
under this section.
(3) Initiation of negotiations. For purposes of determining the formula for computing replacement housing payment
assistance to be provided to a displaced person pursuant to this section, if the displacement is a direct result of
privately undertaken rehabilitation, demolition, or acquisition of the real property, "initiation of negotiations" means
the execution of the agreement between the recipient and the subrecipient, or between the recipient (or subrecipient,
as applicable) and the person owning or controlling the property. In the case of an option contract to acquire
property, the initiation of negotiations does not become effective until execution of a written agreement that creates
a legally enforceable commitment to proceed with the purchase, such as a purchase agreement..
(d) Real property acquisition requirements. Except for acquisitions described in 49 CFR 24. 101 (b)( 1 ) through (5 ),
the URA and the requirements of 49 CFR part 24, subpart B apply to any acquisition of real property for a project
where there are. Continuum of Care funds in any part of the project costs.
(e) Appeals. A person who disagrees with the recipient's (or subrecipient's, if applicable) determination concerning
whether the person qualifies as a displaced person, or the amount of relocation assistance for which the person is
eligible, may file a written appeal of that determination with the recipient (see 49 CFR 24. 10). A low-income person
who is dissatisfied with the recipient's determination on his or her appeal may submit a written request for review of
that determination to the local HUD field office.
§ 578 . 85 Timeliness standards.
(a) In general. Recipients must initiate approved activities and projects promptly.
(b) Construction activities. Recipients of funds for rehabilitation or new construction must meet the following
standards :
( 1 ) Construction activities must begin within 9 months of the later of signing of the grant agreement or of signing an
addendum to the grant agreement authorizing use of grant funds for the project.
(2). Construction activities must be completed within 24 months of signing the grant agreement.
(3) Activities that cannot begin until after construction activities are completed must begin within 3 months of the
date that construction activities are completed.
(c) Distribution. A recipient that receives funds through this part must:
( 1 ) Distribute the funds to subrecipients (in advance of expenditures' by the subrecipients) ;
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(2) Distribute the appropriate portion of the funds to a subrecipient no later than 45 days after receiving an
approvable request for such distribution from the subrecipient; and
(3) Draw down funds at least once per quarter of the program year, after eligible activities commence.
§ 578 . 87 Limitation on use of funds.
(a) Maintenance of effort. No assistance provided under this part (or any State or local government funds used to
supplement this assistance) may be used to replace State or local funds previously used, or designated for use, to
assist homeless persons.
(b) Faith-based activities. ( 1 ) Equal treatment of program participants and program beneficiaries. (i) Program
participants. Organizations that are religious or faith-based are eligible, on the same basis as any other organization,
to participate in the Continuum of Care program. Neither the Federal Government nor a State or local government
receiving funds under the Continuum of Care program shall discriminate against an organization on the_basis of the
organization's religious character or affiliation. Recipients and subrecipients of program funds shall not, in providing
program assistance, discriminate against a program participant or prospective program participant on the basis of
religion or religious belief.
(ii) Beneficiaries. In providing services supported in whole or in part with federal financial assistance, and in their
outreach activities related to such services, program participants shall not discriminate against current or prospective
program beneficiaries on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to
attend or participate in a religious practice. -
(2) Separation of explicitly religious activities. Recipients and subrecipients of Continuum of Care funds that engage
in explicitly religious activities, including activities that involve overt religious content such as worship, religious
instruction, or proselytization, must perform such activities and offer such services outside of programs that are
supported with federal financial assistance separately, in time or location, from the programs or services funded
under this part, and participation in any such explicitly religious activities must be voluntary for the program
beneficiaries of the HUD4unded programs or services.
(3 ) Religious identity. A faith-based organization that is a recipient or subrecipient of Continuum of Care program
funds is eligible to use such funds as provided under the regulations of this part without impairing its independence,
autonomy, expression of religious beliefs, or religious character. Such organization will retain its independence from
federal, State, and local government, and may continue to carry out its mission, including the definition,
development, practice, and expression of its religious beliefs, provided that it does not use direct program funds to
support or engage in any explicitly religious activities, including activities that involve overt religious content, such
as worship, religious instruction, or proselytization, .or any manner prohibited by law. Among other things, faith=
based organizations may use space in their facilities to provide prograrn4unded services, without. removing or
altering religious art, icons, scriptures, or other religious symbols. In addition, a Continuum of Care program4unded
religious organization retains its authority over its internal governance, and it may retain religious terms in its
organization's name, select its board members on a religious basis, and include religious references in its
organization's mission statements and other governing documents .
(4) Alternative provider. If a program participant or prospective program participant of the Continuum of Care
program supported by HUD objects to the religious character of an organization that provides services under the
program, that organization shall, within a reasonably prompt time after the objection, undertake reasonable efforts to
identify and refer the program participant to an alternative provider to which the prospective program participant has
no objection. Except for services provided by telephone, the Internet, or similar means, the referral must be to an
alternate provider in reasonable geographic proximity to the organization making the referral. In making the referral,
the organization shall comply with applicable privacy laws and regulations . Recipients and subrecipients shall
document any objections from program participants and prospective program participants and any efforts to refer
such participants to alternative providers in accordance with the requirements of §578 . 103(a)( 13). Recipients shall
ensure that all subrecipient agreements make organizations receiving program funds aware of these requirements.
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(5) Structures. Program funds may not be used for the acquisition, construction, or rehabilitation of structures to the
extent that those structures are used for explicitly religious activities . Program funds may be used for the acquisition,
construction, or rehabilitation of structures only to the extent that those structures are used for conducting eligible
activities under this part. When a structure is used for both eligible and explicitly religious activities, program funds
may not exceed the cost of those portions of the acquisition, new construction, or rehabilitation that are attributable
to eligible activities in accordance with the cost accounting requirements applicable to the Continuum of Care
program. Sanctuaries, chapels, or other rooms that a Continuum of Care program4unded religious congregation uses
as its principal place of worship, however, are ineligible for Continuum of Care program4unded improvements. .
Disposition of real property after the term of the grant, or any change in the use of the property during the term of
the grant, is subject to governmentwide regulations governing real property disposition (see 24 CFR parts 84 and
85) .
(6) Supplemental funds. If a State or local government voluntarily contributes its own funds to supplement federally
funded activities, the State or local government has the option to segregate the federal funds or commingle them.
However, if the funds are commingled, this section applies to all of the commingled funds.
(c) Restriction on combining funds. In a single structure or housing unit, the following types of assistance may not
be combined:
( 1 ) Leasing and acquisition, rehabilitation, or new construction ;
(2) Tenant-based rental assistance and acquisition, rehabilitation, or new construction;
(3) Short- or medium-term rental assistance and acquisition, rehabilitation, or new construction;
(4) Rental assistance and leasing; or
(5) Rental assistance and operating.
(d) Program fees. Recipients and subrecipients may not charge program participants program fees.
§ 578. 89 Limitation on use of grant funds to serve persons defined as homeless under other federal laws.
(a) Application requirement. Applicants that intend to serve unaccompanied youth, and families with children and
youth defined as homeless under other federal laws in paragraph (3) of the homeless definition in §576.2 must
demonstrate in their application, to HUD's satisfaction, that the use of grant funds to serve such persons is an equal
or greater priority than serving persons defined as homeless under paragraphs ( 1 ), (2), and (4) of the definition of
homeless in §576.2 . To demonstrate that it is of equal or greater priority, applicants must show that it is equally or
more cost effective in meeting the overall goals and objectives of the plan submitted under section 427 (b)( 1 )(B) of
the Act, especially with respect to children and unaccompanied youth.
(b) Limit. No more than 10 percent of the funds awarded to recipients within a single Continuum of Care's
geographic area may be used to serve such persons.
(c) Exception. The 10 percent limitation does not apply to Continuums in which the rate of homelessness, as
calculated in the most recent point4n-time count, is less than one-tenth of one percent of the total population.
§ 578 .91 Termination of assistance to program participants.
(a) Termination of assistance. The recipient or subrecipient may terminate assistance to a program participant who
violates program requirements or conditions of occupancy. Termination under this section does not bar the recipient
or subrecipient from providing further assistance at a later date to the same individual or family.
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(b) Due process. In terminating assistance to a program participant, the recipient or subrecipient must provide a
formal process that recognizes the rights of individuals receiving assistance under the due process of law. This
process, at a minimum, must consist of%
( 1 ) Providing the program participant with a written' copy of the program rules and the termination process before .
the participant begins to receive assistance ;
(2) Written notice to the . program participant containing a clear statement of the reasons for termination; .
(3) A review of the decision, in which the program participant is given the opportunity to present written or oral
objections before a person other than the person (or a subordinate of that person) who made or approved the
termination decision; and
(4) Prompt written notice of the final decision to the program participant.
(c) Hard- to-house populations. Recipients and subrecipients that are providing permanent supportive housing for
hard-to-house populations of homeless persons must exercise judgment and examine all extenuating circumstances
in determining when violations are serious enough to warrant termination so that a program participant's assistance
is terminated only in the most severe cases .
§ 578.93 Fair Housing and Equal Opportunity.
(a) Nondiscrimination and equal opportunity requirements. The nondiscrimination and equal opportunity
requirements set forth in 24 CFR 5 . 105 (a) are applicable.
(b) Housing for specific subpopulations. Recipients and subrecipients may exclusively serve a particular homeless
subpopulation in transitional or permanent housing if the housing addresses a need identified by the Continuum of .
Care for the geographic area and meets one of the following:
( 1 ) The housing may be limited to one sex where such housing consists of a single structure with shared bedrooms
or bathing facilities such that the considerations of personal privacy and the physical limitations of the configuration
of the housing make it appropriate for the housing to be limited to one sex ;
(2) The housing may be limited to a specific subpopulation, so long as admission does not discriminate against any
protected class under federal nondiscrimination laws in 24 CFR 5 . 105 ( e.g. , the housing may be limited to homeless
veterans, victims of domestic violence and. their children, or chronically homeless persons and families) .
(3) The housing may be limited to families with children.
(4) If the housing has in residence at least one family with a child under the age of 18 , the housing may exclude
registered sex offenders and persons with a criminal record that includes a violent crime from the project so long as
the child resides in the housing.
(5 ) Sober housing may exclude persons who refuse to sign an occupancy agreement or lease that prohibits program
participants from possessing, using, or being under the influence of illegal substances and/or alcohol on the
premises.
(6) If the housing is assisted with funds under a federal program that is limited by federal statute or Executive Order
to a specific subpopulation, the housing may be limited to that subpopulation ( e. g. , housing also assisted with
funding from the Housing Opportunities for Persons with AIDS program under 24 CFR part 574 may be limited to
persons with acquired immunodeficiency syndrome or related diseases).
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(7) Recipients may limit admission to or provide a preference for the housing to. subpopulations of homeless persons
and families who need the specialized supportive services that are provided in the housing ( e.g. , substance abuse
addiction treatment, domestic violence services, or a high intensity package designed to meet the needs of hard-to-
reach homeless persons) . While the housing may offer services for a particular type of disability, no otherwise
eligible individuals with disabilities or families including an individual with a disability, who may benefit, from the
services provided may be excluded on the grounds that they do not have a particular disability.
(c) Affirmatively furthering fair housing. A recipient must implement its programs in a manner that affirmatively
furthers fair housing, which means that the recipient must:
( 1 ) Affirmatively market their housing and supportive services to eligible persons regardless of race, color,. national
origin, religion, sex, age, familial status, or handicap who are least likely to apply in the absence of special outreach,
and maintain records of those marketing activities ;
(2) Where a recipient encounters a condition or action that impedes fair housing choice for current or prospective
program participants, provide such information to the jurisdiction that provided the certification of consistency with
the Consolidated Plan ; and
(3 ) Provide program participants with information on rights and remedies available under applicable federal, State
and local fair housing and civil rights laws.
(d) Accessibility and integrative housing and services for persons with disabilities. Recipients and subrecipients
must comply with the accessibility requirements of the Fair Housing Act (24 CFR part 100), . Section 504 of the
Rehabilitation Act of 1973 (24 CFR part 8), and Titles II and III of the Americans with Disabilities Act, as
applicable (28 CFR parts 35 and 36) . In accordance with the requirements of 24 CFR 8 .4(d), recipients must ensure
that their program's housing and supportive services are provided in the most integrated setting appropriate to the
needs of persons with disabilities.
(e) Prohibition against involuntaryfamily separation. The age and gender of a child under age 18 must not be used
as a basis for denying any family's admission to a project that receives funds under this part.
§ 578 .95 Conflicts of interest.
(a) Procurement. For the procurement of property (goods, supplies, or equipment) and services, the recipient and its
subrecipients must comply with the codes of conduct and conflict-of4nterest requirements under 24 CFR 85 .36 (for
governments) and 24 CFR 84 .42 (for private nonprofit organizations) .
(b) Continuum of Care board members. No Continuum of Care board member may participate in or influence
discussions or resulting decisions concerning the award of a grant or other financial benefits to the organization that
the member represents.
(c) Organizational conflict. An organizational conflict of interest arises when, because of activities or relationships
with other persons or organizations, the recipient or subrecipient is unable or potentially unable to render impartial
assistance in the provision of any type or amount of assistance under this part, or when a covered person's, as in
paragraph (d)( 1 ) of this section, objectivity in performing work with respect to any activity assisted under this part is
or might be otherwise impaired. Such an organizational conflict would arise when a board member of an applicant
participates in decision of the applicant concerning the award of a grant, or provision of other financial benefits, to
the organization that such member represents. It would also arise when an employee of a recipient or subrecipient
participates in making rent reasonableness determinations under §578 .49(b)(2) and §578 .51 (g) and housing quality
inspections of property under §578 .75 (b) that the recipient, subrecipient, or related entity owns:
(d) Other conflicts. For all other transactions and activities, the following restrictions apply:
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( 1 ) No covered person, meaning a person who is an employee, agent, consultant, officer, or elected or appointed
official of the recipient or its subrecipients and who exercises or has exercised any functions or responsibilities with
respect to activities assisted under this part, or who is in a position to participate in a decision-making process or
gain inside information with regard to activities assisted under this part, may obtain a financial interest or benefit
from an assisted activity, have a financial interest in any contract, subcontract, or agreement with respect to an
assisted activity, or have a -financial interest in the proceeds derived from an assisted activity, either for him or
herself or for those with whom he or she has immediate , family or business ties, during his or her tenure or during the
one-year period following his or her tenure.
(2) Exceptions. Upon the written request of the recipient, HUD may grant an exception to the provisions of this
section on a . case-by-case basis, taking into account the cumulative effects of the criteria in paragraph (d)(2)(ii) of
this section, provided that the recipient has satisfactorily met the threshold requirements of paragraph (d)(2)(ii) of
this section.
(i) Threshold requirements. HUD will consider an exception only after the recipient has provided the following
documentation:
(A) Disclosure of the nature of the conflict, accompanied by a written assurance, if the recipient is a government,
that there- has been public disclosure of the conflict and a description of how the public disclosure was made; and if
the recipient is a private nonprofit organization, that the conflict has been disclosed in accordance with their written
code of conduct or other conflict-oMnterest policy; and
(B ) An opinion of the recipient's attorney that the interest for which the exception is sought would not violate State
or local law, or if the subrecipient is a private nonprofit organization, the exception' would not violate the
organization's internal policies .
(ii) Factors to be considered for exceptions. In determining whether to grant a requested exception after the recipient
has satisfactorily met the threshold requirements under paragraph (c)(3 )(i) of this section, HUD must conclude that
the exception will serve to further the purposes of the Continuum of Care program and the effective and efficient
administration of the recipient's or subrecipient's project, taking into account the .cumulative effect of the following .
factors, as applicable :
(A) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program
or project. that would otherwise not be available;
(B) Whether an opportunity was provided for open competitive bidding or negotiation;
(C) Whether the affected person has withdrawn from his or her functions, responsibilities, or the decision-making
process with respect to the specific activity in question ;
(D) Whether the interest or benefit was present before the affected person was in the position described in paragraph
(c)( 1 ) of this section; -
(E) Whether undue hardship will result to the recipient, the subrecipient, or the person affected, when weighed
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gainst the public interest served by avoiding the prohibited conflict;
(F) Whether the person affected is a member of a group or class of persons intended to be the beneficiaries of the
assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are ,
being made available or provided to the group or class ; and
(G) Any other relevant considerations.
§ 578 .97 Program income.
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(a) Defined. Program income is the income received by the recipient or subrecipient directly generated by a grant-
supported activity.
(b) Use. Program income earned during the grant term shall be retained by the recipient, and added to funds
committed to the project by HUD and the recipient, used for eligible activities in accordance with the requirements
of this part. Costs incident to the generation of program income may be deducted from gross income to calculate
program income, provided that the costs have not been charged to grant funds.
(c) Rent and occupancy charges. Rents and occupancy charges collected from program participants are program
income. In addition, rents and occupancy charges collected from residents of transitional housing may be reserved ,
in whole or in part, to assist the residents from whom they are collected to move to permanent housing.
§ 578.99 Applicability of other federal requirements.
In addition to the requirements set forth in 24 CFR part 5 , use of assistance provided under this part must comply
with the following federal requirements:
(a) Environmental review. Activities under this part are subject to environmental review by HUD under 24 CFR part
50 as noted in §578 .31 .
(b) Section 6002 of the Solid Waste Disposal Act. State agenciesand agencies of a political subdivision of a state
that are using assistance under this part for procurement, and any person contracting with such an agency with -
respect to work performed under an assisted contract, must comply with the requirements of Section 6003 of the
Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with Section
6002, these agencies and persons must:
( 1 ) Procure items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that
contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of
competition, where the purchase price of the item exceeds $ 10,000 or the value of the quantity acquired in% the
preceding fiscal year exceeded $ 10,000;
(2) Procure solid waste management services in a manner that maximizes energy and resource recovery; and
(3) Must have established an affirmative procurement program for the procurement of recovered materials identified
in the EPA guidelines .
(c) Transparency Act Reporting. Section 872 of the Duncan Hunter Defense Appropriations Act of 2009, and
additional requirements published by the Office of Management and Budget (OMB), requires recipients to report
subawards made either as pass through awards, subrecipient awards, or vendor awards in the Federal Government
Web site www.fsrs. gov or its successor system. The reporting of award and subaward information is in accordance
with the requirements of the Federal Financial Assistance Accountability and Transparency Act of 2006, as
amended by section 6202 of Public Law 110452 and in OMB Policy Guidance issued to the federal agencies on
September 14, 2010 (75 FR 55669).
(d) The Coastal Barrier Resources Act of 1982 ( 16 U.S.C. 3501 . et seq .) may apply to proposals under this part,
depending on the assistance requested.
(e) Applicability of OMB Circulars. The requirements of 24 CFR part 85—Administrative Requirements for Grants
and Cooperative Agreements to State, Local, and Federally Recognized Indian Tribal Governments and 2 CFR part
225—Cost Principles for State, Local and Indian Tribal Governments (OMB Circular A47)- apply to
governmental recipients and subrecipients except where inconsistent with the provisions of this part. The
requirements of 24 CFR part 84—Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations; 2 CFR part 230—Cost Principles
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for Non-Profit Organizations (OMB Circular A-122) ; and 2 CFR part 220— Cost Principles for Education
Institutions apply to the nonprofit recipients and subrecipients, except where inconsistent with the provisions of the
McKinney-Vento Act or this part.
(f) Lead-based paint. The Lead-Based Paint Poisoning Prevention Act (42 U.S .C. 4821 -4846), the Residential Lead- -
Based Paint Hazard Reduction Act of 1992 (42 U.S .C. 4851 -4856), and. implementing regulations -at 24 CFR part
35 , subparts A, B , H, J, K, M, and R apply to activities under this program.
(g) Audit. Recipients` and subrecipients must comply with the audit requirements of OMB Circular A- 133, "Audits
of States, Local Governments, and Non-profit Organizations."
(h) Davis-Bacon Act. The provisions of the Davis-Bacon Act do not apply to this program.
(i) Section 3 of the Housing and Urban Development Act. Recipients and subrecipients must, as applicable, comply
with Section 3 of the Housing and Urban Development Act of 1968 and its implementing regulations at 24 CFR part
135, as applicable.
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Subpart G=Grant. Administration
i
§ 578. 101 Technical assistance.
(a) Purpose. The purpose of Continuum of Care technical assistance is to increase the effectiveness with which
Continuums of Care, eligible applicants, recipients, subrecipients, and UFAs implement and administer their
Continuum -of.Care. planning .process ; improve their capacity to, prepare applications ; prevent the separation of
families in projects funded under the Emergency Solutions Grants, Continuum of Care, and Rural Housing Stability
Assistance programs; and adopt and provide best practices in housing and services for persons experiencing
homelessness.
(b) Defined. Technical assistance means the transfer of skills and knowledge to entities that may need, but do not ..
possess, such skills and knowledge. The assistance may 'include, but is not limited to, .written information such as
papers, manuals, guides, and brochures ; person-to-person exchanges, web-based curriculums, training and
Webinars, and their costs. . '
(c) Set-aside. HUD may set aside funds annually to provide technical assistance, either directly by HUD staff or
indirectly through thir&party providers.
(d) Awards. From time to time, as HUD determines the need, HUD may advertise and competitively select providers
to deliver technical assistance. HUD may enter into contracts, grants, or cooperative agreements, when necessary, to
in the technical assistance. HUD may also enter into agreements with other federal agencies for awarding
the technical assistance funds.
§ 578. 103 Recordkeeping requirements.
(a) In general. The recipient and its subrecipients must establish and maintain standard operating procedures for
ensuring that Continuum of Care program funds are used in accordance with the requirements of this part and must
establish and maintain sufficient records to enable HUDjto determine whether the recipient and its subrecipients are
meeting the requirements of this part, including :
( 1 ) Continuum of Care records. :Each collaborative applicant must keep the following documentation related to
establishing and operating a Continuum of Care:
(i) Evidence that the Board selected by the Continuum of Care meets the requirements of §578 .5(b),
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(ii) Evidence that the Continuum has been established and operated as set forth in subpart B of this part, including
published agendas and meeting minutes, an approved Governance Charter that is reviewed and updated annually, a
written process for selecting a board that is reviewed and updated at least once every 5 years, evidence required for
designating a single HMIS for the Continuum, and monitoring reports of recipients and subrecipients;
(iii) Evidence that the Continuum has prepared the application for funds as set forth in §578 .9, including the
designation of the eligible applicant to be the collaborative applicant.
(2) Unified funding agency records. UFAs that requested grant amendments from HUD, as set forth in §578 . 105 ,
must keep evidence that the grant amendment was approved by the Continuum. This evidence may include minutes
of meetings at which the grant amendment was discussed and approved.
(3) Homeless status. Acceptable evidence of the homeless as status is set forth in 24 CFR 576.500(b).
(4) At risk of homelessness status. For those recipients and subrecipients that serve persons at risk of homelessness,
the recipient or subrecipient must keep records that establish "at risk of homelessness" status of each individual or '
family who receives Continuum of Care homelessness prevention assistance. Acceptable evidence is found in 24
CFR 576.500(c).
(5) Records of reasonable belief of imminent threat of harm. For each program participant who moved to a different
Continuum of Care due to imminent threat of further domestic violence, dating violence, sexual assault, or stalking
under §578 .51 (c)(3), each recipient or subrecipient of assistance under this part must retain :
(i) Documentation of the original incidence of domestic violence, dating violence, sexual assault, or stalking, only if
the original violence is not already documented in the program participant's case file. This may be written
observation of the housing or service provider; a letter or other documentation from a victim service provider, social
worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom the
victim has sought assistance; medical or dental records; court records or law enforcement records; or written
certification by .the program participant to whom the violence occurred or by the head of household.
(ii) Documentation of the reasonable .belief of imminent threat of further domestic violence, dating violence, or
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. This may be written observation by the 'housing or service provider, a letter or other
documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental
health provider, or other professional from whom the victim has sought assistance; current restraining order; recent
court order or other court records; law enforcement report or records ; communication records from the perpetrator of
the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text
messages, and social media posts; or a written certification by the program participant to whom the violence
occurred or the head of household.
(6) Annual income. For each program participant who .receives housing assistance where rent or an occupancy
charge is paid by the program participant, the recipient or subrecipient must keep the following documentation of
annual income:
(i) Income evaluation form specified by HUD and completed by the recipient or subrecipient; and
(ii) Source documents ( e.g. , most recent wage statement, unemployment compensation statement, public benefits
statement, bank statement) for the assets held by the program participant and incogie received before the date of the
evaluation ,
(iii) To the extent that source documents are unobtainable, a written statement by the relevant third party ( e.g. ,
employer, government benefits administrator) or the written certification by the recipient's or subrecipienfs intake
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staff of the oral verification by the relevant third party of the income -the program participant received over the most
recent period ; or
(iv) To the extent that source documents and third-party verification are unobtainable, the written certification by the
program participant of the amount of income that the program participant is reasonably expected to receive over the
3-month period following the evaluation.
(7) Program participant records. In addition to evidence of "homeless" status or "at-risk-of-homelessness" status, as
applicable, the recipient or subrecipient must keep records for each program participant that document:
(i) The services and assistance provided to that program participant, including evidence that the recipient or
subrecipient has conducted an annual assessment .of services for those program participants that remain in the
program for more than a year and adjusted the service package accordingly, and including case management
services as provided in §578 .37(a)( 1 )(ii)o ; and
(ii) Where applicable, compliance with the termination of assistance requirement in §578 .91 .
(8) Housing standards. The recipient or subrecipient must retain documentation of compliance with the housing
standards in §578 .75 (b), including inspection reports.
(9) Services provided. The recipient or subrecipient must document the types ofsupportive services provided under
the recipient's program and the amounts spent on those services. The recipient or subrecipient must keep record that
these records were reviewed at least annually and that the service package offered to program participants was
adjusted as necessary . .
( 10) Match. The recipient must keep records of the source and use of contributions made to satisfy the match
requirement in §578 .73 . The records must indicate the grant and fiscal year for which each matching contribution is
counted. The records must show how the value placed on third party. in-kind contributions was derived. To the
extent feasible, volunteer services must be supported by; the same methods that the organization use& to support the
allocation of regular personnel costs.
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(11 ) Conflicts of interest. The recipient and its subrecipients must keep records to show compliance with the
organizational conflict-oMnterest requirements in § 578 :95(c), the Continuum of Care board conflict-of-interest
requirements in §578.95 (b), the other conflict requirements in § 578 .95 (d), a copy, of the personal conflict-of-interest
policy developed and implemented to comply with the requirements in §578 .95 , and records supporting exceptions
to the personal conflict-of-interest prohibitions.
( 12) Homeless participation. The recipient or subrecipient must document its compliance with the homeless
participation requirements under § 578 .75 (g) .
( 13) Faith-based activities. The recipient and its subrecipients must document their compliance with the faith-based
activities requirements under §578.87(b) .
( 14) Affirmatively Furthering Fair Housing. Recipients and subrecipients must maintain copies of their marketing,
outreach, and other materials used to inform eligible persons of the program to document compliance with the
requirements in §578 .93(c).
( 15) Other federal requirements. The recipient and its subrecipients must document their compliance with the
federal requirements in §578:99, as applicable.
( 16) Subrecipients and contractors. (i) The recipient must retain copies of all solicitations of and agreements with
subrecipients, records of all payment requests by and dates of payments made to subrecipients, and documentation
of all monitoring and sanctions of subrecipients, as applicable.
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(ii) The recipient must retain documentation of monitoring subrecipients, including any monitoring findings and
corrective actions required.
(iii) The recipient and its subrecipients must retain copies of all procurement contracts and documentation of
compliance with the procurement requirements in 24 CFR 85 .36 and 24 CFR part 84.
( 17) Other records specified by HUD. The recipient and subrecipients must keep other records specified by HUD.
(b) Confidentiality. In addition to meeting the specific confidentiality and security requirements for HMIS data, the
recipient and its subrecipients must develop and implement written procedures to ensure:
( 1 ) All records containing protected identifying information of any individual or family who applies for and/or
receives Continuum of Care . assistance will be kept secure and confidential ;
(2) The address or location of any family violence project assisted with Continuum of Care funds will not be made
public, except with written authorization of the person responsible for the operation of the project; and
(3 ) The address or location of any housing of a program participant will not be made public, except as provided
under a preexisting privacy policy of the recipient or subrecipient and consistent with State and local laws regarding
privacy and obligations of confidentiality ;
(c) Period of record retention. All records pertaining to Continuum of Care funds must be retained for the greater of
5 years or the period specified below. Copies made by microfilming, photocopying, or similar methods may be
substituted for the original records.
( 1 ) Documentation of each program participant's qualification as a family or individual at risk of homelessness or as
a homeless family or individual and other program participant records must be retained for 5 years after the
expenditure of-ill funds from the grant under which the program participant was served ; and
(2) Where Continuum of Care funds are used for the acquisition, new, construction, or rehabilitation of a project site,
records must be retained until 15 years after the date that the project site is first occupied, or used, by program
participants.
(d) Access to records. ( 1 ) Federal Government rights. Notwithstanding the confidentiality procedures established
under paragraph (b) of this section, HUD, the HUD Office of the Inspector General, and the Comptroller General of
the United States, or any of their authorized representatives, must have the right of access to all books, documents,
papers, or other records of the recipient 11 and its subrecipients that are pertinent to the Continuum of Care grant, in
order to make audits, examinations, excerpts, and transcripts . These rights of access are not limited to the required
retention period, but last as long as the records are retained.
(2) Public rights. The recipient must provide citizens, public agencies, and other interested parties with reasonable
access to records regarding any uses of Continuum of Care funds the recipient received during the preceding 5 years,
consistent with State and local laws regarding privacy and obligations of confidentiality and confidentiality
requirements in this part.
(e) Reports. In addition to the reporting requirements in 24 CFR parts 84 and 85 , the recipient must collect and
report data on its use of Continuum of Care funds in an Annual Performance Report (APR), as well as in any
additional reports as and when required by HUD. Projects receiving grant funds only for acquisition rehabilitation,
or new construction must submit APRs for 15 years from the date of initial occupancy or the date of initial service
provision, unless HUD provides an exception under §578 .81 (e) .
§ 578. 105 Grant and project changes.
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(a) For Unified Funding Agencies and Continuums having only one recipient. ( 1 ) The recipient may not make any
significant changes without prior HUD approval, evidenced by a grant amendment signed by HUD and the recipient.
Significant grant changes include a change of recipient, a shift in a single year of more than 10 percent of the total
amount awarded under the grant for one approved eligible activity category to another activity and a permanent
change in the subpopulation served by any one project funded under the grant, as well as a permanent proposed
reduction in the total number of units funded under the grant.
(2) Approval of substitution of the recipient is contingent on the new recipient meeting the capacity criteria in the
NOFA under which the grant was awarded, or the most recent NOFA. Approval of shifting funds between activities
and changing subpopulations is contingent on the change being necessary to better serve eligible persons within the
geographic area and ensuring that the priorities established under the NOFA in which the grant was originally
awarded, or the most recent NOFA, are met.
(b) For Continuums having more than one recipient. ( 1 ) The recipients or subrecipients may not make any
significant changes to a project without prior HUD approval, evidenced by a grant amendment signed by HUD and
the recipient. Significant changes include a change of recipient, a change of project site, additions or deletions in the
types of eligible activities approved for a project, a shift of more than 10 percent from one approved eligible activity
to another, a reduction in the number of units, and a change in the subpopulation served.
(2) Approval of substitution of the recipient is contingent on the new recipient meeting the capacity criteria in the
NOFA under which the grant was awarded, or the most recent NOFA. Approval of shifting funds between activities .
and changing subpopulations is contingent on the change being necessary to better serve eligible persons within the
geographic area and ensuring that the priorities established under the NOFA in which the grant was originally
awarded, or the most recent NOFA, are met.
(c) Documentation of changes not requiring a grant amendment. Any other changes to an approved grant or project
must be fully documented in the recipient's or subrecipient's records.
§ 578. 107 Sanctions .
(a) Performance reviews. ( 1 ). HUD will review the performance of each recipient in carrying out its responsibilities
under this part, with or without prior notice to the recipient. In conducting performance reviews, HUD will rely
primarily on information obtained from the records and reports from the recipient and subrecipients, as well as
information from on-site monitoring, audit reports, and information generated from HUD's financial and reporting
systems ( e. g. , LOCCS and e-snaps) and HMIS . Where applicable, HUD may also consider relevant information
pertaining to the recipient's performance gained from other sources, including citizen comments, complaint
determinations, and litigation.
(2) If HUD determines preliminarily that the recipient or one of its subrecipients has not complied with a program
requirement, HUD will give the recipient notice of this determination and an opportunity to demonstrate, within the
time prescribed by HUD and on the basis of substantial facts and data that the recipient has complied with the
requirements. HUD may change the method of payment to require the recipient to submit documentation before
payment and obtain HUD's prior approval each time the recipient draws down funds. To obtain prior approval, the
recipient may be. required to manually submit its payment requests and supporting documentation to HUD in order
to show that the funds to be drawn down will be expended on eligible activities in accordance with all program
requirements.
(3) If the recipient fails to demonstrate to HUD's satisfaction that the activities were carried out in compliance with
program requirements, HUD may take one or more of the remedial actions qr sanctions specified in paragraph (b) of
this section.
(b) Remedial actions and sanctions. Remedial actions and sanctions for a failure to meet a program requirement will
be designed to prevent a continuation of the deficiency; to mitigate, to the extent possible, its adverse effects or
consequences; and to prevent its recurrence.
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( 1 ) HUD may instruct the recipient to submit and comply with proposals for action to correct, mitigate, and prevent
noncompliance with program requirements, including:
(i) Preparing and following a schedule of actions for carrying out activities and projects affected by the
noncompliance, including schedules, timetables, and milestones necessary to implement the affected activities and
projects;
(ii) Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions;
(iii) Canceling or revising activities or projects likely to be affected by the noncompliance, before expending grant
funds for them,
(iv) Reprogramming grant funds that have not yet been expended from affected activities or projects to other eligible
activities or projects ;
(v) Suspending disbursement of grant funds for some or all activities or projects ;
(vi) Reducing or terminating the remaining grant of a subrecipient and either reallocating those funds to other
subrecipients or returning funds to HUD ; and
(vii) Making matching contributions before or as draws are made from the recipient's grant.
(2) HUD may change the method of payment to a reimbursement basis.
(3) HUD may suspend payments to the extent HUD determines necessary to preclude the further expenditure of
funds for affected activities or projects.
(4) HUD may continue the grant with a substitute recipient of HUD's choosing .
(5) HUD may deny matching credit for all or part of the cost of the affected activities and require the recipient to
make further matching contributions to make up for the contribution determined to be ineligible.
(6) HUD may require the recipient to reimburse the recipient's line of credit in an amount equal to the funds used for
the affected activities.
(7) HUD may reduce or terminate the remaining grant of a recipient.
(8) HUD may condition a future grant.
(9) HUD may take other remedies that are legally available.
(c) Recipient sanctions. If the recipient determines that a subrecipient is not complying with a program requirement
or its subrecipient agreement, the recipient must take one of the actions listed in paragraphs (a) and (b) of this
section.
(d) Deobligation. HUD may deobligate funds for the following reasons :
�
( 1 ) If the timeliness standards in §578 . 85 are not met; ; :. ; ANr 7t ) r 4. ;; ,'; ; x
t
(2) If HUD determines that delays completing construction activities for a projeet will mean that the funds,for other , N , ;.
funded activities cannot reasonably be expected to be expended for eligible cosh during the remaining term ofth _ '; aV i
grant.
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(3) If the actual total cost of acquisition, rehabilitation, or new construction for a project is less than the total cost
agreed to in the grant agreement;
(4) If the actual annual leasing costs, operating costs, supportive services costs, rental assistance costs, or HMIS
costs are less than the total cost agreed to in the grant agreement for a one-year period,
(5) Program participants have not moved into units within 3 months of the time that the units are available for
occupancy; and
(6) The grant agreement may set forth in detail other circumstances under which funds may be deobligated and other
sanctions may be imposed.
§ 578. 109 Closeout.
(a) In general. Grants will be closed out in accordance with the requirements of 24 CFR parts 84 and 85 , and
closeout procedures established by HUD.
(b) Reports. Applicants. must submit all reports required by HUD no later than 90 days from the date of the end of
the project's grant term.
(c) Closeout agreement. Any obligations remaining as of the date of the closeout must be covered by the terms of a
closeout agreement. The agreement will be prepared by HUD in consultation with the recipient. The agreement must
identify the grant being closed out, and include provisions with respect to the following:
( 1 ) Identification of any closeout costs or contingent liabilities subject to payment with Continuum of Care program
funds after the closeout agreement is signed;
(2) Identification of any unused grant funds to be deobligated by HUD;
(3) Identification of any program income on deposit in financial institutions at the time the closeout agreement is
signed;
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(4) Description of the recipient's responsibility after closeout for:
(i) Compliance with all program requirements in using program income on deposit at the time the closeout
agreement is signed and in using any other remaining Continuum of Care program funds available for.closeout costs
and contingent liabilities,
(ii) Use of real property assisted with Continuum of Care program funds in accordance with the terms of
commitment and principles ;
(iii) Use of personal property purchased with Continuum of Care program funds; and
(iv) Compliance with requirements governing program income received subsequent to grant closeout:
(5) Other provisions appropriate to any special circumstances of the grant closeout, in modification of or in addition
to the obligations in paragraa hs c ough (4) of this section.
STATE OF FLORIDA •"onnncnuu
INSAAN RIVER COUNTY *° 'C4 liA1SSIQ�F se .
THIS IS TO CERTIFY AT THIS I •.••,t�� ' � , , ,,'Q ,4
ATR AND COR T _ ' at ?°a
THE ORIt3i AL 1 T °o
OFFICE . ` ct) ;
. SMI RK s s
BY _ D.C. o
DATE ' ee `�2O �d:_