24 CFR § 578.55 - Operating costs.

---
identifier: "/us/cfr/t24/s578.55"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 578.55 - Operating costs."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "578.55"
section_name: "Operating costs."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "C"
subchapter_name: "COMMUNITY FACILITIES"
part_number: "578"
part_name: "CONTINUUM OF CARE PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1701x, 1701 x-1; 42 U.S.C. 11381  42 U.S.C. 3535(d)."
regulatory_source: "77 FR 45442, July 31, 2012, unless otherwise noted."
cfr_part: "578"
---


# 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.