Ineligible Costs

What costs cannot by covered by CoC operating funds? (§ 578.55(c))

CoC operating costs can only be used in Transitional Housing and Permanent Supportive Housing programs. CoC operating costs may not be used in a building or unit receiving CoC rental assistance. Funding also cannot be used for emergency shelter or for Supportive Services Only programs. Finally, if the lease for the unit/building states that certain costs are covered in that lease, then CoC operating funds cannot be used to cover those items.

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

Virtual Binders Glossary

Examples of ineligible operating costs include:

  • Mortgage payments
  • Rent
  • Landscaping for beautification
  • Legal fees to keep attorney on retainer
  • General cleaning supplies
  • Office supplies (pens, paper, files, folders, postage)

This list is not meant to be all inclusive. Please contact your HUD Field Office representative with specific questions regarding eligibility prior to incurring any expenses.


CoC operating funds may not be used in units receiving CoC rental assistance funds.