[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR954.301]

[Page 422-423]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 954_INDIAN HOME PROGRAM--Table of Contents
 
             Subpart C_Eligible Activities and Affordability
 
Sec. 954.301  Faith-based activities.

    (a) Religious organizations are eligible, on the same basis as any 
other organization, to participate in the Indian HOME program. Neither 
the federal government nor a tribal government nor any other entity that 
administers any program or activity under this part shall discriminate 
against an organization on the basis of the organization's religious 
character or affiliation.
    (b) Organizations that receive direct HUD funds under the Indian 
HOME program may not engage in inherently religious activities, such as 
worship, religious instruction, or proselytization, as part of the 
program or services funded under this part. If an organization conducts 
such inherently religious activities, the inherently religious 
activities must be offered separately, in time

[[Page 423]]

or location, from the programs, activities, or services supported by 
direct HUD funds under this part, and participation must be voluntary 
for the beneficiaries of the programs, activities, or services provided.
    (c) A religious organization that participates in the Indian HOME 
program will retain its independence from federal, state, local, and 
tribal governments, and may continue to carry out its mission, including 
the definition, practice, and expression of its religious beliefs, 
provided that it does not engage in any inherently religious activities, 
such as worship, religious instruction, or proselytization, as part of 
the programs or services funded under a program or activity pursuant to 
this part. Among other things, religious organizations may use space in 
their facilities to provide services under the Indian HOME program 
without removing religious art, icons, scriptures, or other religious 
symbols. In addition, a religious organization participating in the 
Indian HOME program 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) A religious organization's exemption from the federal 
prohibition on employment discrimination on the basis of religion, set 
forth in section 702(a) of the Civil Rights Act of 1964 (42 U.S.C. 
2000e-1), is not forfeited when the organization participates in a HUD 
program. Some HUD programs, however, contain independent statutory 
provisions that impose certain nondiscrimination requirements on all 
grantees. Accordingly, grantees should consult with the appropriate HUD 
program office to determine the scope of applicable requirements.
    (e) An organization that receives direct funds under the Indian HOME 
program shall not, in providing program assistance, discriminate against 
a program beneficiary or prospective program beneficiary on the basis of 
religion or religious belief.
    (f) Indian HOME 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. Indian HOME 
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, Indian HOME 
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 Indian HOME funds in this part. Sanctuaries, chapels, or 
other rooms that an Indian HOME-funded religious congregation uses as 
its principal place of worship, however, are ineligible for Indian HOME-
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 governmentwide regulations governing real property 
disposition (see 24 CFR parts 84 and 85).
    (g) If a tribal government voluntarily contributes its own funds to 
supplement federally funded activities, the tribal 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. Further, if a state or local government is required to contribute 
matching funds to supplement a federally funded activity, the matching 
funds are considered commingled with the federal assistance and 
therefore subject to the requirements of this section. Some HUD programs 
requirements govern any project or activity assisted under those 
programs. Accordingly, grantees should consult with the appropriate HUD 
program office to determine the scope of applicable requirements

[69 FR 62169, Oct. 22, 2004]