---
kind: "section"
citation: "20 C.F.R. § 688.550"
title: "20"
number: "688.550"
heading: "How are the costs associated with real property treated in the YouthBuild program?"
url: "https://uscodex.org/cfr/20/688.550"
---

# §688.550. How are the costs associated with real property treated in the YouthBuild program?

- (a) As provided in paragraphs [(b)](#b) and [(c)](#c) of this section, the costs of the following activities associated with real property are allowable solely for the purpose of training YouthBuild participants:
  - (1) Rehabilitation of existing structures for use by homeless individuals and families or low-income families or for use as transitional housing;
  - (2) Construction of buildings for use by homeless individuals and families or low-income families or for use as transitional housing; and
  - (3) Construction or rehabilitation of community or other public facilities, except, as provided in [§ 688.520(b)](/cfr/20/688.520.md?p=b), only 15 percent of the grant award is allowable for such construction and rehabilitation.
- (b) The costs for acquisition of buildings that are used for activities described in [paragraph (a)](#a) of this section are allowable with prior grant officer approval and only under the following conditions:
  - (1) The purchase cost of buildings used solely for training purposes is allowable; and
  - (2) For buildings used for training and other purposes, the allowable amount is determined based on the proportionate share of the purchase cost related to direct training.
- (c) The following costs are allowable to the extent allocable to training YouthBuild participants in the construction and rehabilitation activities specified in [paragraph (a)](#a) of this section:
  - (1) Trainees' tools and clothing including personal protective equipment (PPE);
  - (2) On-site trainee supervisors;
  - (3) Construction management;
  - (4) Relocation of buildings; and
  - (5) **Clearance and demolition.**
- (d) Architectural fees, or a proportionate share thereof, are allowable when such fees can be related to items such as architectural plans or blueprints on which participants will be trained.
- (e) **The following costs are unallowable—**
  - (1) The costs of acquisition of land; and
  - (2) **Brokerage fees.**

## Notes

### Authority

Authority: Secs. 171, 189, 503, Pub. L. 113-128, 128 Stat. 1425 (Jul. 22, 2014).

### Source

Source: 81 FR 56460, Aug. 19, 2016, unless otherwise noted.