[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1003.207]



[Page 781-782]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1003_COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKA 

NATIVE VILLAGES--Table of Contents

 

                      Subpart C_Eligible Activities

 

Sec.  1003.207  Ineligible activities.



    The general rule is that any activity that is not authorized under 

the provisions of Sec. Sec.  1003.201 through 1003.206 is ineligible to 

be assisted with ICDBG funds. This section identifies specific 

activities that are ineligible and provides guidance in determining the 

eligibility of other activities frequently associated with housing and 

community development.

    (a) The following activities may not be assisted with ICDBG funds:

    (1) Buildings or portions thereof used for the general conduct of 

government as defined at Sec.  1003.4 cannot be assisted with ICDBG 

funds. This does not include, however, the removal of architectural 

barriers under Sec.  1003.201(c) involving any such building. Also, 

where acquisition of real property includes an existing improvement 

which is to be used in the provision of a building for the general 

conduct of government, the portion of the acquisition cost attributable 

to the land is eligible, provided



[[Page 782]]



such acquisition meets the primary objective described in Sec.  

1003.208.

    (2) General government expenses. Except as otherwise specifically 

authorized in this subpart or under OMB Circular A-87, expenses required 

to carry out the regular responsibilities of the grantee are not 

eligible for assistance under this part.

    (3) Political activities. ICDBG funds shall not be used to finance 

the use of facilities or equipment for political purposes or to engage 

in other partisan political activities, such as candidate forums, voter 

transportation, or voter registration. However, a facility originally 

assisted with ICDBG funds may be used on an incidental basis to hold 

political meetings, candidate forums, or voter registration campaigns, 

provided that all parties and organizations have access to the facility 

on an equal basis, and are assessed equal rent or use charges, if any.

    (b) The following activities may not be assisted with ICDBG funds 

unless authorized under provisions of Sec.  1003.203 or as otherwise 

specifically noted herein, or when carried out by a CBDO under the 

provisions of Sec.  1003.204.

    (1) Purchase of equipment. The purchase of equipment with ICDBG 

funds is generally ineligible.

    (i) Construction equipment. The purchase of construction equipment 

is ineligible, but compensation for the use of such equipment through 

leasing, depreciation, or use allowances pursuant to OMB Circular A-21, 

A-87 or A-122 as applicable for an otherwise eligible activity is an 

eligible use of ICDBG funds.

    (ii) Furnishings and personal property. The purchase of equipment, 

fixtures, motor vehicles, furnishings, or other personal property not an 

integral structural fixture is generally ineligible. Exceptions to this 

general prohibition are set forth in Sec.  1003.201(o).

    (2) Operating and maintenance expenses. The general rule is that any 

expense associated with repairing, operating or maintaining public 

facilities, improvements and services is ineligible. Specific exceptions 

to this general rule are operating and maintenance expenses associated 

with public service activities, interim assistance, and office space for 

program staff employed in carrying out the ICDBG program. For example, 

the use of ICDBG funds to pay the allocable costs of operating and 

maintaining a facility used in providing a public service would be 

eligible under Sec.  1003.201(e), even if no other costs of providing 

such a service are assisted with such funds. Examples of ineligible 

operating and maintenance expenses are:

    (i) Maintenance and repair of streets, parks, playgrounds, water and 

sewer facilities, neighborhood facilities, senior centers, centers for 

persons with a disability, parking and similar public facilities; and

    (ii) Payment of salaries for staff, utility costs and similar 

expenses necessary for the operation of public works and facilities.

    (3) New housing construction. ICDBG funds may not be used for the 

construction of new permanent residential structures or for any program 

to subsidize or assist such new construction, except:

    (i) As provided under the last resort housing provisions set forth 

in 24 CFR part 42; or

    (ii) When carried out by a CBDO pursuant to Sec.  1003.204(a);

    (4) Income payments. The general rule is that ICDBG funds may not be 

used for income payments. For purposes of the ICDBG program, income 

payments means a series of subsistence-type grant payments made to an 

individual or family for items such as food, clothing, housing (rent or 

mortgage) or utilities, but excludes emergency payments made over a 

period of up to three months to the provider of such items or services 

on behalf of an individual or family.