[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR576.23]

[Page 215-216]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 576_EMERGENCY SHELTER GRANTS PROGRAM: STEWART B. McKINNEY HOMELESS 
ASSISTANCE ACT--Table of Contents
 
                      Subpart B_Eligible Activities
 
Sec. 576.23  Faith-based activities.

    (a) Organizations that are religious or faith-based are eligible, on 
the same basis as any other organization, to participate in the 
Emergency Shelter Grants program. Neither the Federal government nor a 
State or local government receiving funds under Emergency Shelter Grants 
programs shall discriminate against an organization on the basis of the 
organization's religious character or affiliation.
    (b) Organizations that are directly funded under the Emergency 
Shelter Grants program may not engage in inherently religious 
activities, such as worship, religious instruction, or proselytization 
as part of the programs or services funded under this part. If an 
organization conducts such activities, the activities must be offered 
separately, in time or location, from the programs or services funded 
under this part, and participation must be voluntary for the 
beneficiaries of the HUD-funded programs or services.
    (c) A religious organization that participates in the Emergency 
Shelter Grants program will retain its independence from Federal, State, 
and local governments, and may continue to carry out its mission, 
including the definition, practice, and expression of its religious 
beliefs, provided that it does not use direct Emergency Shelter Grants 
funds to support any inherently religious activities, such as worship, 
religious instruction, or proselytization. Among other things, faith-
based organizations may use space in their facilities to provide 
Emergency Shelter Grants-funded services, without removing religious 
art, icons, scriptures, or other religious symbols. In addition, an 
Emergency Shelter Grants-funded 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.
    (d) An organization that participates in the Emergency Shelter 
Grants program shall not, in providing program assistance, discriminate 
against a program beneficiary or prospective program beneficiary on the 
basis of religion or religious belief.
    (e) Emergency shelter grants may not be used for the rehabilitation 
of structures to the extent that those structures are used for 
inherently religious activities. Emergency shelter grants may be used 
for the rehabilitation of structures only to the extent that those 
structures are used for conducting eligible activities under this part. 
Where a structure is used for both eligible and inherently religious 
activities, emergency shelter grants may not exceed the cost of those 
portions of the rehabilitation that are attributable to eligible 
activities in accordance with the cost accounting requirements 
applicable to emergency shelter grants in this part. Sanctuaries, 
chapels, or other rooms that an Emergency Shelter Grants-funded 
religious congregation uses as its principal place of worship, however, 
are ineligible for Emergency Shelter Grants-funded improvements. 
Disposition of real property after the term of the grant, or any change 
in use of the property during the term of the grant, is subject to 
government-wide regulations governing real property disposition (see 24 
CFR parts 84 and 85).
    (f) If a State or local government voluntarily contributes its own 
funds to

[[Page 216]]

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.

[68 FR 56406, Sept. 30, 2003]