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J <br /> Organizations that are directly funded under the HOME Program may not engage in inherently <br /> religious activities, such as worship, religious instruction, or proselytization, as a part of the <br /> programs or services funded under 24 CFR Part 92. If the Agency conducts such activities, the <br /> activities must be offered separately, in time or location, from the programs or services funded <br /> under 24 CFR Part 92, and participation must be voluntary for the beneficiaries of the HUD- <br /> 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 program <br /> assistance, discriminate against a program beneficiary or prospective program beneficiary on <br /> the basis of religion or religious belief. <br /> 4 Structures Used for Inherently Religious Activities <br /> HOME funds may not be used for the acquisition, construction or rehabilitation of structures to <br /> the extent that those structures are used for inherently religious activities. HOME funds may be <br /> used for the acquisition, construction or rehabilitation of structures only to the extent that those <br /> structures are used for conducting eligible activities under 24 CFR Part 92. Where a structure <br /> is used for both eligible and inherently religious activities, HOME funds may not exceed the cost <br /> of those portions of the acquisition, construction or rehabilitation that are attributable to eligible <br /> activities in accordance with the cost accounting requirements applicable to HOME funds in 24 <br /> CFR Part 92. Sanctuaries, chapels or other rooms that a HOME-funded religious congregation <br /> uses as its principal place of worship, however, are ineligible for HOME-funded improvements. <br /> 5. Employment Discrimination <br /> Pursuant to 24 CFR § 5.109(e), a religious organization's exemption from the federal prohibition <br /> on employment discrimination on the basis of religion, set forth in section 702(a) of the Civil <br /> Rights Act of 1964 (codified at 42 U.S.C. § 2000e-1), is not forfeited when the organization <br /> participates in the HUD program. Notwithstanding the foregoing, non-discrimination <br /> requirements imposed by statute on all HOME grantees shall apply to religious and faith-based <br /> organizations. <br /> 111. USE OF PROPERTY <br /> The following provisions apply to real property improved or acquired through this HOME <br /> Agreement, PROVIDED, HOWEVER, that Subsections D through I of this Section III apply only <br /> to the two City HOME Assisted Units as set forth in Attachment A hereto: <br /> A. Beneficiaries <br /> The Agency agrees that the HOME-assisted units as described in Attachment A shall be used <br /> as permanent housing to benefit Low-Income households from the date that the Project is <br /> certified for occupancy and throughout the term of this HOME Agreement. <br /> B. Maintenance <br /> - 6 - <br />