---
kind: "section"
citation: "42 U.S.C. § 11383"
title: "42"
title_heading: "The Public Health and Welfare"
number: "11383"
heading: "Eligible activities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/11383"
units:
  - "Chapter 119 — Homeless Assistance"
  - "Subchapter IV — Housing Assistance"
  - "Part C — Continuum of Care Program"
---

# §11383. Eligible activities

- (a) **In general—** Grants awarded under [section 11382 of this title](/usc/42/11382.md) to qualified applicants shall be used to carry out [projects](/usc/42/13641.md?p=2) that serve [homeless individuals](/usc/42/11302.md?p=a) or families that consist of one or more of the following eligible activities:
  - (1) [Construction](/usc/42/300s–3.md?p=7) of new housing units to provide transitional or permanent housing.
  - (2) Acquisition or rehabilitation of a structure to provide transitional or permanent housing, other than emergency shelter, or to provide supportive services.
  - (3) Leasing of property, or portions of property, not owned by the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor involved, for use in providing transitional or permanent housing, or providing supportive services.
  - (4) Provision of rental assistance to provide transitional or permanent housing to eligible persons. The rental assistance may include tenant-based, [project](/usc/42/13641.md?p=2)-based, or sponsor-based rental assistance. [Project](/usc/42/13641.md?p=2)-based rental assistance, sponsor-based rental assistance, and operating cost assistance contracts carried out by [project](/usc/42/13641.md?p=2) sponsors receiving grants under this section may, at the discretion of the applicant and the [project](/usc/42/13641.md?p=2) sponsor, have an initial term of 15 years, with assistance for the first 5 years paid with funds authorized for appropriation under this chapter, and assistance for the remainder of the term treated as a renewal of an expiring contract as provided in [section 11386c of this title](/usc/42/11386c.md). [Project](/usc/42/13641.md?p=2)-based rental assistance may include rental assistance to preserve existing permanent supportive housing for [homeless individuals](/usc/42/11302.md?p=a) and families.
  - (5) Payment of [operating costs](/usc/42/11371.md?p=4) for housing units assisted under this part or for the preservation of housing that will serve [homeless individuals](/usc/42/11302.md?p=a) and families and for which another form of assistance is expiring or otherwise no longer available.
  - (6) Supportive services for individuals and families who are currently [homeless](/usc/42/11302.md?p=a), who have been [homeless](/usc/42/11302.md?p=a) in the prior six months but are currently residing in permanent housing, or who were previously [homeless](/usc/42/11302.md?p=a) and are currently residing in permanent supportive housing.
  - (7) Provision of rehousing services, including housing search, mediation or outreach to property [owners](/usc/42/13641.md?p=4), credit repair, providing security or utility deposits, rental assistance for a final month at a location, assistance with moving costs, or other activities that—
    - (A) are effective at moving [homeless individuals](/usc/42/11302.md?p=a) and families immediately into housing; or
    - (B) may benefit individuals and families who in the prior 6 months have been [homeless](/usc/42/11302.md?p=a), but are currently residing in permanent housing.
  - (8) In the case of a collaborative applicant that is a legal entity, performance of the duties described under [section 11360a(f)(3) of this title](/usc/42/11360a.md?p=f-3).
  - (9) Operation of, participation in, and ensuring consistent participation by [project](/usc/42/13641.md?p=2) sponsors in, a community-wide [homeless](/usc/42/11302.md?p=a) management information system.
  - (10) In the case of a collaborative applicant that is a legal entity, payment of administrative costs related to meeting the requirements described in paragraphs (1) and (2) of [section 11360a(f) of this title](/usc/42/11360a.md?p=f), for which the collaborative applicant may use not more than 3 percent of the total funds made available in the geographic area under this part for such costs.
  - (11) In the case of a collaborative applicant that is a unified funding [agency](/usc/42/8262.md?p=1) under [section 11360a(g) of this title](/usc/42/11360a.md?p=g), payment of administrative costs related to meeting the requirements of that section, for which the unified funding [agency](/usc/42/8262.md?p=1) may use not more than 3 percent of the total funds made available in the geographic area under this part for such costs, in addition to funds used under [paragraph (10)](#a-10).
  - (12) Payment of administrative costs to [project](/usc/42/13641.md?p=2) sponsors, for which each [project](/usc/42/13641.md?p=2) sponsor may use not more than 10 percent of the total funds made available to that [project](/usc/42/13641.md?p=2) sponsor through this part for such costs.
  - (13) [^1] Facilitating and coordinating activities to ensure compliance with subsection (e) of [section 12491 of title 34](/usc/34/12491.md) and monitoring compliance with the confidentiality protections of [subsection (c)(4)](/usc/34/12491.md?p=c-4) of such section.
  - (13) [^1] [Projects](/usc/42/13641.md?p=2) in rural areas that consist of one or more of the following activities:
    - (A) Payment of short-term emergency lodging, including in motels or shelters, directly or through vouchers.
    - (B) Repairs to units—
      - (i) in which [homeless individuals](/usc/42/11302.md?p=a) and families will be housed; or
      - (ii) which are currently not fit for human habitation.
    - (C) Staff training, professional development, skill development, and staff retention activities.
- (b) **Minimum grant terms—** The [Secretary](/usc/42/11371.md?p=7) may impose minimum grant terms of up to 5 years for new [projects](/usc/42/13641.md?p=2) providing permanent housing.
- (c) **Use restrictions—**
  - (1) **Acquisition, rehabilitation, and new construction—** A [project](/usc/42/13641.md?p=2) that consists of activities described in paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a) shall be operated for the purpose specified in the application submitted for the [project](/usc/42/13641.md?p=2) under [section 11382 of this title](/usc/42/11382.md) for not less than 15 years.
  - (2) **Other activities—** A [project](/usc/42/13641.md?p=2) that consists of activities described in any of paragraphs [(3)](#a-3) through [(12)](#a-12) of subsection (a) shall be operated for the purpose specified in the application submitted for the [project](/usc/42/13641.md?p=2) under [section 11382 of this title](/usc/42/11382.md) for the duration of the grant period involved.
  - (3) **Conversion—** If the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor carrying out a [project](/usc/42/13641.md?p=2) that provides transitional or permanent housing submits a request to the [Secretary](/usc/42/11371.md?p=7) to carry out instead a [project](/usc/42/13641.md?p=2) for the direct benefit of low-income persons, and the [Secretary](/usc/42/11371.md?p=7) determines that the initial [project](/usc/42/13641.md?p=2) is no longer needed to provide transitional or permanent housing, the [Secretary](/usc/42/11371.md?p=7) may approve the [project](/usc/42/13641.md?p=2) described in the request and authorize the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor to carry out that [project](/usc/42/13641.md?p=2).
- (d) **Repayment of assistance and prevention of undue benefits—**
  - (1) **Repayment—** If a [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor receives assistance under [section 11382 of this title](/usc/42/11382.md) to carry out a [project](/usc/42/13641.md?p=2) that consists of activities described in paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a) and the [project](/usc/42/13641.md?p=2) ceases to provide transitional or permanent housing—
    - (A) earlier than 10 years after operation of the [project](/usc/42/13641.md?p=2) begins, the [Secretary](/usc/42/11371.md?p=7) shall require the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor to repay 100 percent of the assistance; or
    - (B) not earlier than 10 years, but earlier than 15 years, after operation of the [project](/usc/42/13641.md?p=2) begins, the [Secretary](/usc/42/11371.md?p=7) shall require the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor to repay 20 percent of the assistance for each of the years in the 15-year period for which the [project](/usc/42/13641.md?p=2) fails to provide that housing.
  - (2) **Prevention of undue benefits—** Except as provided in [paragraph (3)](#d-3), if any property is used for a [project](/usc/42/13641.md?p=2) that receives assistance under [subsection (a)](#a) and consists of activities described in paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a), and the sale or other disposition of the property occurs before the expiration of the 15-year period beginning on the date that operation of the [project](/usc/42/13641.md?p=2) begins, the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor who received the assistance shall comply with such terms and conditions as the [Secretary](/usc/42/11371.md?p=7) may prescribe to prevent the [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor from unduly benefitting from such sale or disposition.
  - (3) **Exception—** A [recipient](/usc/42/11371.md?p=6) or [project](/usc/42/13641.md?p=2) sponsor shall not be required to make the repayments, and comply with the terms and conditions, required under paragraph [(1)](#d-1) or [(2)](#d-2) if—
    - (A) the sale or disposition of the property used for the [project](/usc/42/13641.md?p=2) results in the use of the property for the direct benefit of very low-income persons;
    - (B) all of the proceeds of the sale or disposition are used to provide transitional or permanent housing meeting the requirements of this part;
    - (C) [project](/usc/42/13641.md?p=2)-based rental assistance or operating cost assistance from any Federal program or an equivalent [State](/usc/42/11371.md?p=8) or local program is no longer made available and the [project](/usc/42/13641.md?p=2) is meeting applicable performance standards, provided that the portion of the [project](/usc/42/13641.md?p=2) that had benefitted from such assistance continues to meet the tenant income and rent restrictions for low-income units under [section 42(g) of title 26](/usc/26/42.md?p=g); or
    - (D) there are no individuals and families in the geographic area who are [homeless](/usc/42/11302.md?p=a), in which case the [project](/usc/42/13641.md?p=2) may serve individuals and families at risk of homelessness.
- (e) **Staff training—** The [Secretary](/usc/42/11371.md?p=7) may allow reasonable costs associated with staff training to be included as part of the activities described in [subsection (a)](#a).
- (f) **Eligibility for permanent housing—** Any [project](/usc/42/13641.md?p=2) that receives assistance under [subsection (a)](#a) and that provides [project](/usc/42/13641.md?p=2)-based or sponsor-based permanent housing for [homeless individuals](/usc/42/11302.md?p=a) or families with a disability, including [projects](/usc/42/13641.md?p=2) that meet the requirements of [subsection (a)](#a) and subsection (d)(2)(A) of [section 11386b of this title](/usc/42/11386b.md) may also serve individuals who had previously met the requirements for such [project](/usc/42/13641.md?p=2) prior to moving into a different permanent housing [project](/usc/42/13641.md?p=2).
- (g) **Administration of rental assistance—** Provision of permanent housing rental assistance shall be administered by a [State](/usc/42/11371.md?p=8), [unit of general local government](/usc/42/11851.md?p=12), [private nonprofit organization](/usc/42/11371.md?p=5), or public housing [agency](/usc/42/8262.md?p=1).

## Footnotes

[^1]: So in original. Two pars. (13) have been enacted.

## Source credit

(Pub. L. 100–77, title IV, § 423, as added Pub. L. 111–22, div. B, title III, § 1302, May 20, 2009, 123 Stat. 1684; amended Pub. L. 114–94, div. G, title LXXIX, § 79001, Dec. 4, 2015, 129 Stat. 1792; Pub. L. 117–103, div. W, title VI, § 605(a)(2), Mar. 15, 2022, 136 Stat. 886; Pub. L. 117–263, div. E, title LVII, § 5707, Dec. 23, 2022, 136 Stat. 3419.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (a)(4), was in the original “this Act”, meaning Pub. L. 100–77, July 22, 1987, 101 Stat. 482, known as the McKinney-Vento Homeless Assistance Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 11301 of this title and Tables.

### Prior Provisions

A prior section 11383, Pub. L. 100–77, title IV, § 423, as added Pub. L. 102–550, title XIV, § 1403(a), Oct. 28, 1992, 106 Stat. 4015; amended Pub. L. 106–377, § 1(a)(1) [title II, § 226], Oct. 27, 2000, 114 Stat. 1441, 1441A–30; Pub. L. 109–162, title VI, § 605(1), Jan. 5, 2006, 119 Stat. 3041; Pub. L. 109–271, § 5(b), Aug. 12, 2006, 120 Stat. 759, which related to eligible activities, was repealed by Pub. L. 111–22, div. B, title III, § 1302, May 20, 2009, 123 Stat. 1684.

Another prior section 11383, Pub. L. 100–77, title IV, § 423, July 22, 1987, 101 Stat. 501; Pub. L. 100–628, title IV, §§ 441(b), (c), 445(a), 446–448(a), 449, Nov. 7, 1988, 102 Stat. 3233, 3234; Pub. L. 101–625, title VIII, § 833(c)–(e), (g), Nov. 28, 1990, 104 Stat. 4362, 4363, which outlined types of assistance provided under the supportive housing demonstration program, was repealed by Pub. L. 102–550, title XIV, § 1403(a), Oct. 28, 1992, 106 Stat. 4013.

### Amendments

2022—Subsec. (a)(13). Pub. L. 117–263 added par. (13) relating to the eligibility of certain projects in rural areas.

Pub. L. 117–103 added par. (13) relating to facilitating and coordinating activities to ensure compliance with section 12491(e) of title 34.

2015—Subsec. (g). Pub. L. 114–94 inserted “private nonprofit organization,” after “unit of general local government,”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2022 Amendment

Amendment by Pub. L. 117–103 not effective until Oct. 1 of the first fiscal year beginning after Mar. 15, 2022, see section 4(a) of div. W of Pub. L. 117–103, set out as an Effective Date note under section 6851 of Title 15, Commerce and Trade.

### Effective Date

Section effective on the earlier of 18 months after May 20, 2009, or 3 months after publication of certain final regulations by Secretary of Housing and Urban Development, see section 1503 of Pub. L. 111–22, set out as an Effective Date of 2009 Amendment note under section 11302 of this title.

### Definition

For provisions relating to definition of “local government” as used in this section, see section 100261 of Pub. L. 112–141, set out as a HEARTH Act Technical Corrections note under section 11360 of this title.