---
kind: "section"
citation: "24 C.F.R. § 578.55"
title: "24"
number: "578.55"
heading: "Operating costs."
url: "https://uscodex.org/cfr/24/578.55"
---

# §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.

## Notes

### Authority

Authority: 12 U.S.C. 1701x, 1701 x-1; 42 U.S.C. 11381 et seq., 42 U.S.C. 3535(d).

### Source

Source: 77 FR 45442, July 31, 2012, unless otherwise noted.