[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR574.310]

[Page 204-206]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 574_HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS--Table of Contents
 
                      Subpart D_Uses of Grant Funds
 
Sec. 574.310  General standards for eligible housing activities.

    All grantees using grant funds to provide housing must adhere to the 
following standards:
    (a)(1) General. The grantee shall ensure that qualified service 
providers in the area make available appropriate supportive services to 
the individuals assisted with housing under this subpart. Supportive 
services are described in Sec. 574.300(b)(7). For any individual with 
acquired immunodeficiency syndrome or a related disease who requires 
more intensive care than can be provided in housing assisted under this 
subpart, the grantee shall provide for locating a care provider who can 
appropriately care for the individual and for referring the individual 
to the care provider.
    (2) Payments. The grantee shall ensure that grant funds will not be 
used to make payments for health services for any item or service to the 
extent that payment has been made, or can reasonably be expected to be 
made, with respect to that item or service:
    (i) Under any State compensation program, under an insurance policy, 
or

[[Page 205]]

under any Federal or State health benefits program; or
    (ii) By an entity that provides health services on a prepaid basis.
    (b) Housing quality standards. All housing assisted under Sec. 
574.300(b) (3), (4), (5), and (8) must meet the applicable housing 
quality standards outlined below.
    (1) State and local requirements. Each recipient of assistance under 
this part must provide safe and sanitary housing that is in compliance 
with all applicable State and local housing codes, licensing 
requirements, and any other requirements in the jurisdiction in which 
the housing is located regarding the condition of the structure and the 
operation of the housing.
    (2) Habitability standards. Except for such variations as are 
proposed by the locality and approved by HUD, recipients must meet the 
following requirements:
    (i) Structure and materials. The structures must be structurally 
sound so as not to pose any threat to the health and safety of the 
occupants and so as to protect the residents from hazards.
    (ii) Access. The housing must be accessible and capable of being 
utilized without unauthorized use of other private properties. 
Structures must provide alternate means of egress in case of fire.
    (iii) Space and security. Each resident must be afforded adequate 
space and security for themselves and their belongings. An acceptable 
place to sleep must be provided for each resident.
    (iv) Interior air quality. Every room or space must be provided with 
natural or mechanical ventilation. Structures must be free of pollutants 
in the air at levels that threaten the health of residents.
    (v) Water supply. The water supply must be free from contamination 
at levels that threaten the health of individuals.
    (vi) Thermal environment. The housing must have adequate heating 
and/or cooling facilities in proper operating condition.
    (vii) Illumination and electricity. The housing must have adequate 
natural or artificial illumination to permit normal indoor activities 
and to support the health and safety of residents. Sufficient electrical 
sources must be provided to permit use of essential electrical appliance 
while assuring safety from fire.
    (viii) Food preparation and refuse disposal. All food preparation 
areas must contain suitable space and equipment to store, prepare, and 
serve food in a sanitary manner.
    (ix) Sanitary condition. The housing and any equipment must be 
maintained in sanitary condition.
    (c) Minimum use period for structures. (1) Any building or structure 
assisted with amounts under this part must be maintained as a facility 
to provide housing or assistance for individuals with acquired 
immunodeficiency syndrome or related diseases:
    (i) For a period of not less than 10 years, in the case of 
assistance provided under an activity eligible under Sec. 574.300(b) 
(3) and (4) involving new construction, substantial rehabilitation or 
acquisition of a building or structure; or
    (ii) For a period of not less than 3 years in the cases involving 
non-substantial rehabilitation or repair of a building or structure.
    (2) Waiver of minimum use period. HUD may waive the minimum use 
period of a building or structure as stipulated in paragraph (c)(1) of 
this section if the grantee can demonstrate, to the satisfaction of HUD, 
that:
    (i) The assisted structure is no longer needed to provide supported 
housing or assistance, or the continued operation of the structure for 
such purposes is no longer feasible; and
    (ii) The structure will be used to benefit individuals or families 
whose incomes do not exceed 80 percent of the median income for the 
area, as determined by HUD with adjustments for smaller and larger 
families, if the Secretary finds that such variations are necessary 
because of construction costs or unusually high or low family incomes.
    (d) Resident rent payment. Except for persons in short-term 
supported housing, each person receiving rental assistance under this 
program or residing in any rental housing assisted under this program 
must pay as rent, including utilities, an amount which is the higher of:

[[Page 206]]

    (1) 30 percent of the family's monthly adjusted income (adjustment 
factors include the age of the individual, medical expenses, size of 
family and child care expenses and are described in detail in 24 CFR 
5.609). The calculation of the family's monthly adjusted income must 
include the expense deductions provided in 24 CFR 5.611(a), and for 
eligible persons, the calculation of monthly adjusted income also must 
include the disallowance of earned income as provided in 24 CFR 5.617, 
if applicable;
    (2) 10 percent of the family's monthly gross 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 payment 
that is designated for housing costs.
    (e) Termination of assistance--(1) Surviving family members. With 
respect to the surviving member or members of a family who were living 
in a unit assisted under the HOPWA program with the person with AIDS at 
the time of his or her death, housing assistance and supportive services 
under the HOPWA program shall continue for a grace period following the 
death of the person with AIDS. The grantee or project sponsor shall 
establish a reasonable grace period for continued participation by a 
surviving family member, but that period may not exceed one year from 
the death of the family member with AIDS. The grantee or project sponsor 
shall notify the family of the duration of their grace period and may 
assist the family with information on other available housing programs 
and with moving expenses.
    (2) Violation of requirements--(i) Basis. Assistance to participants 
who reside in housing programs assisted under this part may be 
terminated if the participant violates program requirements or 
conditions of occupancy. Grantees must ensure that supportive services 
are provided, so that a participant's assistance is terminated only in 
the most severe cases.
    (ii) Procedure. In terminating assistance to any program participant 
for violation of requirements, grantees must provide a formal process 
that recognizes the rights of individuals receiving assistance to due 
process of law. This process at minimum, must consist of:
    (A) Serving the participant with a written notice containing a clear 
statement of the reasons for termination;
    (B) Permitting the participant to have a review of the decision, in 
which the participant is given the opportunity to confront opposing 
witnesses, present written objections, and be represented by their own 
counsel, before a person other than the person (or a subordinate of that 
person) who made or approved the termination decision; and
    (C) Providing prompt written notification of the final decision to 
the participant.

(Paragraph (c) approved by the Office of Management and Budget under 
control number 2506-0133)

[57 FR 61740, Dec. 28, 1992, as amended at 59 FR 17200, Apr. 11, 1994; 
61 FR 7963, Feb. 29, 1996; 66 FR 6225, Jan. 19, 2001]