24 C.F.R. § 574.340
§ 574.340 Additional standards for community residences. (24 CFR Part 574)
Operative Text
(a) A community residence is a multiunit residence designed for eligible persons to provide a lower cost residential alternative to institutional care; to prevent or delay the need for such care; to provide a permanent or transitional residential setting with appropriate services to enhance the quality of life for those who are unable to live independently; and to enable such persons to participate as fully as possible in community life. (b) If grant funds are used to provide a community residence, except for planning and other expenses preliminary to construction or other physical improvement for a community residence, the grantee must, prior to the expenditure of such funds, obtain and keep on file the following certifications: (1) A services agreement. (i) A certification that the grantee will itself provide services as required by § 574.310(a) to eligible persons assisted by the community residence; or (ii) A certification that the grantee has entered into a written agreement with a project sponsor or contracted service provider to provide services as required by § 574.310(a) to eligible persons assisted by the community residence; (2) The adequacy of funding. (i) A certification that the grantee has acquired sufficient funding for these services; or (ii) A certification that the grantee has on file an analysis of the service level needed for each community residence, a statement of which grantee agency, project sponsor, or service provider will provide the needed services, and a statement of how the services will be funded; and (3) Capability. (i) A certification that the grantee is qualified to provide the services; or (ii) A certification that the project sponsor or the service provider is qualified to provide the services.
Section 574.340 establishes what qualifies as a "community residence" under the HOPWA program and sets conditions that must be met before grant funds are spent on such housing. Specifically, the rule requires grantees to have on file three categories of certifications — covering a services agreement, adequate funding for those services, and the capability of whoever will deliver them — before most grant expenditures occur. The provision is designed to ensure that residents of these multiunit settings actually receive the supportive services intended to help them live as fully as possible in the community rather than in institutional care.
Plain English — not legal advice.
Property owners and project sponsors working with HOPWA grantees on a community residence under § 574.340 should understand that the grantee bears the certification obligations, but operators are often the parties whose qualifications and service agreements are documented in those certifications. A compliant grantee will typically have a written services agreement in place with the operator or a contracted provider, documentation confirming that funding for those services is secured or analyzed, and evidence that whoever delivers the services is qualified to do so — all before most grant funds are expended. Operators who are named as service providers in a § 574.340 arrangement generally maintain records of their qualifications and any written agreements so the grantee can satisfy its file-keeping requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents of a community residence funded under § 574.340 have an interest in knowing that the grantee was required to certify — before spending most grant funds — that supportive services would be provided, that funding for those services was in place or analyzed, and that the delivering party was qualified. If services that were promised as part of a community residence arrangement are not being delivered, tenants may have grounds to raise that concern with the grantee, the local HUD field office, or a tenant-rights or disability-rights organization familiar with HOPWA-funded housing. Reviewing the certifications on file, which § 574.340 requires grantees to maintain, can be a useful starting point for understanding what service commitments were made.
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 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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