24 CFR § 578.87 - Limitation on use of funds.

---
identifier: "/us/cfr/t24/s578.87"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 578.87 - Limitation on use of funds."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "578.87"
section_name: "Limitation on use of funds."
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"
---


# 578.87 Limitation on use of funds.

(a) *Maintenance of effort.* No assistance provided under this part (or any State or local government funds used to supplement this assistance) may be used to replace State or local funds previously used, or designated for use, to assist homeless persons.

(b) *Equal participation of faith-based organizations.* The HUD program requirements in § 5.109 apply to the Continuum of Care program, including the requirements regarding disposition and change in use of real property by a faith-based organization.

(c) *Restriction on combining funds.* In a single structure or housing unit, the following types of assistance may not be combined:

(1) Leasing and acquisition, rehabilitation, or new construction;

(2) Tenant-based rental assistance and acquisition, rehabilitation, or new construction;

(3) Short- or medium-term rental assistance and acquisition, rehabilitation, or new construction;

(4) Rental assistance and leasing; or

(5) Rental assistance and operating.

(d) *Program fees.* Recipients and subrecipients may not charge program participants program fees.

[77 FR 45442, July 31, 2012, as amended at 80 FR 75804, Dec. 4, 2015;80 FR 75940, Dec. 7, 2015; 81 FR 19418, Apr. 4, 2016]