2-HUD Final RULE Revised Church and State.docx

DOCX document 42 KB Posted

Attached to
2027-2028 CDBG Neighborhood Opportunity Fund Public Service
Solicitation number
551005
Issued by
Wayne County, Detroit City, Michigan

About this file

This document is a HUD final rule guidance document addressing the relationship between church and state regulations and their applicability to Community Development Block Grant (CDBG) programs administered by HUD. The guidance clarifies how religious organizations can participate in CDBG-funded projects while maintaining compliance with federal constitutional and statutory requirements regarding the separation of church and state. The document establishes that religious organizations are eligible to receive CDBG funding for eligible activities, provided that such funding is used for secular purposes and does not support inherently religious activities, worship, or sectarian instruction. The guidance addresses the parameters for allowable activities, including social services, facilities improvement, and community development initiatives that serve the public benefit regardless of beneficiary religion. No specific response dates, due dates, site visits, or bidder meetings are outlined in this rule document, as it serves as interpretive guidance rather than a solicitation.

The rule establishes funding principles applicable to all CDBG programs, including the Neighborhood Opportunity Fund (NOF) referenced in the related City of Detroit solicitation. Religious organizations seeking CDBG funding must ensure that grant-funded activities serve a broader public purpose and that facilities or services funded through CDBG are available to all eligible individuals without religious discrimination or preference. The document does not establish specific funding amounts, pricing terms, or award timelines but rather provides the regulatory framework governing how HUD-funded programs, including the 2027-2028 CDBG/NOF program for which Detroit is soliciting applications, must evaluate and process applications from faith-based organizations. Organizations should reference this guidance when preparing applications to ensure proposed projects comply with applicable federal requirements regarding religious activities and public benefit standards.

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Coleman A. Young Municipal Center 2 Woodward Avenue. Suite 908 Detroit, Michigan 48226

Phone: 313.224.6380 Fax: 313.224.1629 www.detroitmi.gov

ATTACHMENT

HUD FINAL RULE: REVISED CHURCH AND STATE REGULATIONS

Pursuant to Title I of the Housing and Community Development Act of 1974, as amended, and the implementing CDBG regulations at 24 CFR 570.200(j) dated September 30, 2003, the Sponsoring Organization agrees that, if awarded CDBG funds for eligible activities: a) It will not discriminate against any person applying for, or seeking to participate in, CDBG funded activities on the basis of religion and will not limit such services or give preference to persons on the basis of religion or religious belief; b) It will provide no religious instruction or counseling, conduct no religious worship or services, and engage in no religious proselytizing, in the provision of funded CDBG activities; c) If the organization conducts any religious activities, such activities must be offered separately in time or location from the funded CDBG activities and participation of beneficiaries of CDBG funded activities in any such religious activities must be wholly voluntary; d) If CDBG funds are received for public service activities, minor maintenance repairs may be made to the facility space in which public services are to be provided only in proportion to the CDBG funding allocation for the entire facility and to the extent to which the facility is used for secular, public service eligible purposes. Such space must not be a sanctuary, chapel or other room(s) used as a principal place of worship or for inherently religious activities; e) No CDBG funds may be used to improve, acquire, construct, rehabilitate, repair, or maintain a sanctuary, chapel, or other rooms that a CDBG-funded religious congregation uses as its principal place of worship or for inherently religious activities. However, if CDBG funds are awarded for public facility rehabilitation, and space other than provided above is used, the CDBG funds may be used for rehabilitation of structures only to the extent and proportion that those structures are used for conducting eligible CDBG activities. CDBG funds may not exceed the cost of those portions of the rehabilitation that are attributable to eligible activities in accordance with cost accounting requirements of 2 CFR 200.

HUD FINAL RULE: REVISED CHURCH AND STATE REGULATIONS

Pursuant to Title I of the Housing and Community Development Act of 1974, as amended, and the implementing CDBG regulations at 24 CFR 570.200(j) dated September 30, 2003, the Sponsoring Organization agrees that, if awarded CDBG funds for eligible activities: a) It will not discriminate against any person applying for, or seeking to participate in, CDBG funded activities on the basis of religion and will not limit such services or give preference to persons on the basis of religion or religious belief; b) It will provide no religious instruction or counseling, conduct no religious worship or services, and engage in no religious proselytizing, in the provision of funded CDBG activities; c) If the organization conducts any religious activities, such activities must be offered separately in time or location from the funded CDBG activities and participation of beneficiaries of CDBG funded activities in any such religious activities must be wholly voluntary; d) If CDBG funds are received for public service activities, minor maintenance repairs may be made to the facility space in which public services are to be provided only in proportion to the CDBG funding allocation for the entire facility and to the extent to which the facility is used for secular, public service eligible purposes. Such space must not be a sanctuary, chapel or other room(s) used as a principal place of worship or for inherently religious activities; e) No CDBG funds may be used to improve, acquire, construct, rehabilitate, repair, or maintain a sanctuary, chapel, or other rooms that a CDBG-funded religious congregation uses as its principal place of worship or for inherently religious activities. However, if CDBG funds are awarded for public facility rehabilitation, and space other than provided above is used, the CDBG funds may be used for rehabilitation of structures only to the extent and proportion that those structures are used for conducting eligible CDBG activities. CDBG funds may not exceed the cost of those portions of the rehabilitation that are attributable to eligible activities in accordance with cost accounting requirements of 2 CFR 200.

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