[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: 24CFR585.406]

[Page 274]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 585_YOUTHBUILD PROGRAM--Table of Contents
 
                        Subpart E_Administration
 
Sec. 585.406  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 
Youthbuild program. Neither the Federal government nor a State or local 
government receiving funds under Youthbuild 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 Youthbuild 
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 Youthbuild 
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 Youthbuild Program 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 Youthbuild Program-funded 
services, without removing religious art, icons, scriptures, or other 
religious symbols. In addition, a Youthbuild Program-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 Youthbuild 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) Youthbuild funds may not be used for the acquisition, 
construction, or rehabilitation of structures to the extent that those 
structures are used for inherently religious activities. Youthbuild 
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. Where a structure is 
used for both eligible and inherently religious activities, Youthbuild 
funds may not exceed the cost of those portions of the acquisition, 
construction, or rehabilitation that are attributable to eligible 
activities in accordance with the cost accounting requirements 
applicable to Youthbuild funds in this part. Sanctuaries, chapels, or 
other rooms that a Youthbuild-funded religious congregation uses as its 
principal place of worship, however, are ineligible for Youthbuild-
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 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 56407, Sept. 30, 2003]