24 C.F.R. § 35.1135
§ 35.1135 Eligible costs. (24 CFR Part 35)
Operative Text
A PHA may use financial assistance received under the modernization program (CIAP or CGP) for the notice, evaluation and reduction of lead-based paint hazards in accordance with § 968.112 of this title. Eligible costs include: (a) Evaluation and insurance costs. Evaluation and hazard reduction activities, and costs for insurance coverage associated with these activities. (b) Planning costs. Planning costs are costs that are incurred before HUD approval of the CGP or CIAP application and that are related to developing the CIAP application or carrying out eligible modernization planning, such as planning for abatement, detailed design work, preparation of solicitations, and evaluation. Planning costs may be funded as a single work item. Planning costs shall not exceed 5 percent of the CIAP funds available to a HUD Field Office in a particular fiscal year. (c) Architectural/engineering and consultant fees. Eligible costs include fees for planning, identification of needs, detailed design work, preparation of construction and bid documents and other required documents, evaluation, planning and design for abatement, and inspection of work in progress. (d) Elevated blood lead level response costs. The PHA may use its operating reserves and, when necessary, may request reimbursement from the current fiscal year CIAP funds, or request the reprogramming of previously approved CIAP funds to cover the costs of evaluation and hazard reduction.
Under 24 CFR Part 35 § 35.1135, Public Housing Authorities (PHAs) are permitted to draw on federal modernization program funds—specifically CIAP or CGP allocations—to cover a defined set of lead-based paint hazard activities. Eligible costs span evaluation, hazard reduction, insurance tied to those activities, architectural and engineering fees, and responses to elevated blood lead level cases. Planning costs incurred before HUD approval are also eligible, but are capped at 5 percent of the CIAP funds available to a given HUD Field Office in any single fiscal year. This provision establishes both the scope of permissible spending and the procedural boundaries that govern how those funds may be accessed.
Plain English — not legal advice.
PHAs administering modernization funds under 24 CFR Part 35 § 35.1135 generally document all lead-related expenditures against the specific eligible cost categories defined in the provision—evaluation, hazard reduction, insurance, planning, and architectural or engineering fees. Compliant operators track planning costs carefully to ensure they do not exceed the 5 percent cap relative to CIAP funds available at the relevant HUD Field Office for the fiscal year. When elevated blood lead level cases arise, operators familiar with § 35.1135 understand that operating reserves may be used first, with CIAP reimbursement or reprogramming requests available as a secondary funding path.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents of public housing have an interest in knowing that 24 CFR Part 35 § 35.1135 authorizes their PHA to use federal modernization funds specifically for lead-based paint evaluation and hazard reduction—meaning funding mechanisms exist to address lead hazards in covered properties. If a household member has an elevated blood lead level, § 35.1135 provides a dedicated cost category that allows the PHA to seek reimbursement or reprogramming of funds to respond to that situation. Tenants who believe their PHA is not utilizing available funds for lead hazard work may explore options such as contacting their local HUD Field Office, reaching out to a tenant-rights organization, or raising the issue through their PHA's formal grievance process.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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