[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: 24CFR954.308]



[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.  954.308  Prohibited activities.



    (a) HOME funds may not be used to--

    (1) Provide a project reserve account for replacements, a project 

reserve account for unanticipated increases in operating costs, or 

operating subsidies; except as authorized under Sec.  954.302; (2) 

Provide nonfederal matching contributions required under any other 

Federal program;

    (3) Provide assistance in connection with programs authorized under 

part



[[Page 423]]



950 (Indian Housing Programs) of this title;

    (4) Provide assistance to eligible low-income housing under part 248 

(Prepayment of Low Income Housing Mortgages) of this title; or

    (5) Provide assistance (other than tenant-based rental assistance or 

assistance to a homebuyer to acquire housing previously assisted with 

HOME funds) to a project previously assisted with HOME funds during the 

period of affordability established by the grantee under Sec.  954.306 

or Sec.  954.307. However, additional HOME funds may be committed to a 

project up to one year after project completion (see Sec.  954.500), but 

the amount of HOME funds in the project may not exceed the maximum per-

unit subsidy amount established under Sec.  954.400.

    (b) Grantees may not charge monitoring, servicing and origination 

fees in HOME-assisted projects. However, grantees may charge nominal 

application fees (although these fees are not an eligible HOME cost) to 

project owners to discourage frivolous applications.