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5 <br /> 2. Inherently Religious Activities <br /> Organizations that are directly funded under the HOME Program may not engage in <br /> inherently religious activities, such as worship, religious instruction, or proselytization, <br /> as a part of the programs or services funded under 24 CFR Part 92. If the Agency <br /> conducts such activities, the activities must be offered separately, in time or location, <br /> from the programs or services funded under 24 CFR Part 92, and participation must <br /> be voluntary for the beneficiaries of the HUD-funded programs or services. <br /> 3. Discrimination Against Beneficiaries or Prospective Beneficiaries <br /> An organization that participates in the HOME Program shall not, in providing <br /> program assistance, discriminate against a program beneficiary or prospective <br /> program beneficiary on the basis of religion or religious belief. <br /> 4. Structures Used for Inherently Religious Activities <br /> HOME and ADDI funds may not be used for the acquisition, construction or <br /> rehabilitation of structures to the extent that those structures are used for inherently <br /> religious activities. HOME and ADDI funds may be used for the acquisition, <br /> construction or rehabilitation of structures only to the extent that those structures are <br /> used for conducting eligible activities under 24 CFR Part 92. Where a structure is <br /> used for both eligible and inherently religious activities, HOME and ADDI funds may <br /> not exceed the cost of those portions of the acquisition, construction or rehabilitation <br /> that are attributable to eligible activities in accordance with the cost accounting <br /> requirements applicable to HOME and ADDI funds in 24 CFR Part 92. Sanctuaries, <br /> chapels or other rooms that a HOME or ADDI funded religious congregation uses as <br /> its principal place of worship, however, are ineligible for HOME or ADDI funded <br /> improvements. <br /> 5. Employment Discrimination <br /> Pursuant to 24 CFR § 5.109(e), a religious organization's exemption from the federal <br /> prohibition on employment discrimination on the basis of religion, set forth in section <br /> 702(a) of the Civil Rights Act of 1964 (codified at 42 U.S.C. § 2000e-1), is not <br /> forfeited when the organization participates in the HUD program. Notwithstanding <br /> the foregoing, non-discrimination requirements imposed by statute on all HOME <br /> grantees shall apply to religious and faith-based organizations. <br /> J. Debarred and Suspended Parties <br /> No portion of the loan made under this Agreement shall be used directly or indirectly <br /> to employ, award contracts to, or otherwise engage the services of, or fund, any <br /> contractor or subcontractor during any period of debarment, suspension, voluntary <br /> ,U <br /> HOME and ADDI Agreement between <br /> City of Everett and HomeSight <br /> 9 <br />