Cal. Code Regs. tit. 25 § 7961

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 7961 - Eligible Use of Funds

The use of grants of program funds shall be restricted to the following eligible activities and allowable costs.

(a) Eligible activities for which grant funds may be used to defray the costs of providing direct client housing include:

(1) Operating facilities to provide emergency shelter or transitional housing;

(2) Acquiring, constructing, converting, expanding, or rehabilitating emergency shelter or transitional housing sites pursuant to section 7966;

(3) Leasing facilities for emergency shelter or transitional housing;

(4) Administrative costs up to five percent of the total grant amount;

(5) Supervising and counseling clients;

(6) Residential rental assistance;

(7) Housing vouchers;

(8) Purchase of equipment; and

(9) Subcontracting with other eligible organizations to provide vouchers for temporary shelter and/or to provide residential rental assistance.

(b) Allowable costs within operating facility grants include, but are not limited to, costs of:

(1) Supervisory and line staff who provide services directly to clients;

(2) Counseling clients and supervising the counseling services;

(3) Utilities, telephone, office supplies, document duplication, printing and mailing;

(4) Routine maintenance and repair (such as interior painting and cleaning; repairs to heating, ventilating, air-conditioning, plumbing, and electrical systems; repairs of tenant damages; and other items not constituting a capital expenditure);

(5) Debt reduction, limited to no more than the one year's principle and interest on fully-amortized installment loans, excluding any balloon payments;

(6) Rent or lease payments for a shelter or transitional housing facility;

(7) Insurance and taxes;

(8) Administration (administrative staff and overhead costs up to five percent of the grant amount);

(9) Costs of paying rents in arrears and costs of paying initial rents for residential rental assistance in compliance with section 7964;

(10) Issuing vouchers for the purpose of leasing or renting individual units, hotel rooms, or motel rooms for use as emergency shelter, pursuant to subsection (a)(7), section 7965 and subject to the limitations of Health and Safety Code section 50803(b) (i.e., no more than 15% of an urban county's allocation).

(11) Up to $20,000 per site for costs of capital development-type activities and equipment such as described in subsection (c).

(c) Allowable costs within capital development grants include, but are not limited to costs of:

(1) Site acquisition, such as purchasing land and improvements, purchasing and moving an existing structure to the site, purchasing and moving a modular or manufactured structure to the site, necessary architectural and engineering services, and escrow, title and other standard closing costs;

(2) Site construction, rehabilitation or conversion, such as materials, labor, local government fees, and architectural and engineering services;

(3) Equipment required in the provision of client housing.

Cal. Code Regs. Tit. 25, § 7961

1. New section filed 3-18-94 as an emergency; operative 3-18-94 (Register 94, No. 11). A Certificate of Compliance must be transmitted to OAL 7-18-94 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 7-8-94 as an emergency; operative 7-8-94 (Register 94, No. 27). A Certificate of Compliance must be transmitted to OAL by 11-7-94 or emergency language will be repealed by operation of law on the following day.
3. Repealer and new section refiled 10-31-94 as an emergency; operative 10-31-94 (Register 94, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-28-95 or emergency language will be repealed by operation of law on the following day.
4. Repealer and new section refiled 2-15-95 as an emergency; operative 2-15-95 (Register 95, No. 7). A Certificate of Compliance must be transmitted to OAL by 6-15-95 or emergency language will be repealed by operation of law on the following day.
5. Repealer and new section refiled 6-15-95 as an emergency; operative 6-15-95 (Register 95, No. 24). A Certificate of Compliance must be transmitted to OAL by 10-13-95 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 6-15-95 order including amendment of section transmitted to OAL 6-26-95 and filed 7-12-95 (Register 95, No. 28).

Note: Authority cited: Sections 50402, 50801.5 and 50806.5, Health and Safety Code. Reference: Sections 50801.5 and 50803, Health and Safety Code.