[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: 24CFR582.105]

[Page 237-238]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 582_SHELTER PLUS CARE--Table of Contents
 
                      Subpart B_Assistance Provided
 
Sec. 582.105  Rental assistance amounts and payments.

    (a) Eligible activity. S+C grants may be used for providing rental 
assistance for housing occupied by participants in the program and 
administrative costs as provided for in paragraph (e) of this section, 
except that the housing may not be currently receiving Federal funding 
for rental assistance or operating costs under other HUD programs. 
Recipients may design a housing program that includes a range of housing 
types with differing levels of supportive services. Rental assistance 
may include security deposits on units in an amount up to one month's 
rent.
    (b) Amount of the grant. The amount of the grant is based on the 
number and size of units proposed by the applicant to be assisted over 
the grant period. The grant amount is calculated by multiplying the 
number of units proposed times the applicable Fair Market Rent (FMR) of 
each unit times the term of the grant.
    (c) Payment of grant. (1) The grant amount will be reserved for 
rental assistance over the grant period. An applicant's grant request is 
an estimate of the amount needed for rental assistance. Recipients will 
make draws from the reserved amount to pay the actual costs of rental 
assistance for program participants. For TRA, on demonstration of need, 
up to 25 percent of the total rental assistance awarded may be spent in 
any one of the five years, or a higher percentage if approved by HUD, 
where the applicant provides evidence satisfactory to HUD that it is 
financially committed to providing the housing assistance described in 
the application for the full five-year period.
    (2) A recipient must serve at least as many participants as shown in 
its application. Where the grant amount 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 factor as contract rents 
being lower than FMRs and participants are being able to pay a portion 
of the rent, recipients may use the remaining funds for the costs of 
administering the housing assistance, as described in paragraph (e) of 
this section, for damage to property, as described in paragraph (f) of 
this section, for covering the costs of rent increases, or for serving a 
great number of participants.
    (d) Vacancies. (1) If a unit assisted under this part is vacated 
before the expiration of the occupancy agreement described in Sec. 
582.315 of this part, 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.
    (2) As used in this paragraph (d), the term ``vacate'' does not 
include brief periods of inpatient care, not to exceed 90 days for each 
occurrence.
    (e) Administrative costs. (1) Up to eight percent of the grant 
amount may be used to pay the costs of administering the housing 
assistance. Recipients may contract with another entity approved by HUD 
to administer the housing assistance.
    (2) Eligible administrative activities include processing rental 
payments to landlords, examining participant income and family 
composition, providing housing information and assistance, inspecting 
units for compliance with housing quality standards, and receiving into 
the program new participants. This administrative allowance does not 
include the cost of administering the supportive services or the grant 
(e.g., costs of preparing the application, reports or audits required by 
HUD), which are not eligible activities under a S+C grant.
    (f) Property damage. Recipients may use grant funds in an amount up 
to one month's rent to pay for any damage to

[[Page 238]]

housing due to the action of a participant.

[58 FR 13892, Mar. 15, 1993, as amended at 61 FR 51170, Sept. 30, 1996]