[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR1003.600]

[Page 795-796]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
 
PART 1003_COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKA 
 
                  Subpart G_Other Program Requirements
 
Sec.  1003.600  Faith-based activities.


    (a) Religious organizations are eligible, on the same basis as any 
other eligible organization, to participate in the ICDBG 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 ICDBG 
program may not engage in inherently religious activities, such as 
worship, religious

[[Page 796]]

instruction, or proselytization, as part of the programs or services 
funded under this part. If an organization conducts such inherently 
religious activities, the inherently religious activities must be 
offered separately, in time 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 ICDBG 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 ICDBG-funded services, without removing religious 
art, icons, scriptures, or other religious symbols. In addition, a 
religious organization participating in the ICDBG 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 ICDBG 
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) ICDBG 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. ICDBG 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, ICDBG 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 ICDBG funds in this part. 
Sanctuaries, chapels, or other rooms that an ICDBG-funded religious 
congregation uses as its principal place of worship, however, are 
ineligible for ICDBG-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]