Acquisition, Rehabilitation, and New Construction

What activities can be paid for out of Acquisition, Rehabilitation, and New Construction?

Acquisition funds (§ 578.43) may be used to pay up to 100 percent of the acquisition cost of real property for the purpose of providing housing (PSH or TH) or supportive services to homeless persons.

Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

Rehabilitation funds (§ 578.45) may be used to pay up to 100 percent of the cost to rehabilitate an existing structure that is owned (not leased) by the recipient or subrecipient, and that is used to provide housing (PSH or TH) or supportive services to homeless persons. These costs may include installing cost-effective energy measures or bringing an existing structure to State and local government health and safety standards.

New Construction funds (§ 578.47) may be used to pay up to 100 percent of the cost of new construction, which can include:

  • Building a new structure
  • Building an addition to an existing structure that increases the floor area by more than 100 percent
  • Acquiring land associated with the construction

Note: To apply for new construction costs, the applicant must show:

  1. The costs of new construction are substantially less than the costs of rehabilitation; or
  2. There is a lack of available appropriate units that could be rehabilitated for less than it would cost to build new housing.