§ 578.55 Operating costs.

(a) Use. Grant funds may be used to pay the costs of the day-to-day operation of transitional and permanent housing in a single structure or individual housing units. (b) Eligible costs. (1) The maintenance and repair of housing; (2) Property taxes and insurance; (3) Scheduled payments to a reserve for replacement of major systems of the housing (provided that the payments must be based on the useful life of the system and expected replacement cost); (4) Building security for a structure where more than 50 percent of the units or area is paid for with grant funds; (5) Electricity, gas, and water; (6) Furniture; and (7) Equipment. (c) Ineligible costs. Program funds may not be used for rental assistance and operating costs in the same project. Program funds may not be used for the operating costs of emergency shelter- and supportive service-only facilities. Program funds may not be used for the maintenance and repair of housing where the costs of maintaining and repairing the housing are included in the lease.