1. (a) Applicability. This section applies to recipients of Federal rehabilitation assistance.

2. (b) Rehabilitation assistance.

   1. (1) Lead-based paint requirements for rehabilitation fall into three categories that depend on the amount of Federal rehabilitation assistance provided. The three categories are:

      1. (i) Assistance of up to and including $5,000 per unit;
      2. (ii) Assistance of more than $5,000 per unit up to and including $25,000 per unit; and
      3. (iii) Assistance of more than $25,000 per unit.
   2. (2) For purposes of implementing §§ 35.930 and 35.935, the amount of rehabilitation assistance is the lesser of two amounts: the average Federal assistance per assisted dwelling unit and the average per unit hard costs of rehabilitation. Federal assistance includes all Federal funds assisting the project, regardless of the use of the funds. Federal funds being used for acquisition of the property are to be included as well as funds for construction, permits, fees, and other project costs. The hard costs of rehabilitation include all hard costs, regardless of source, except that the costs of lead-based paint hazard evaluation and hazard reduction activities are not to be included. Costs of site preparation, occupant protection, relocation, interim controls, abatement, clearance, and waste handling attributable to compliance with the requirements of this part are not to be included in the hard costs of rehabilitation. All other hard costs are to be included, regardless of whether the source of funds is Federal or non-Federal, public or private.

3. (c) Calculating rehabilitation assistance in properties with both assisted and unassisted dwelling units. For a residential property that includes both federally assisted and non-assisted units, the rehabilitation costs and Federal assistance associated with non-assisted units are not included in the calculations of the average per unit hard costs of rehabilitation and the average Federal assistance per unit.

   1. (1) The average per unit hard costs of rehabilitation for the assisted units is calculated using the following formula:

      Per Unit Hard Costs of Rehabilitation $ = (a/c) + (b/d)

      Where: a = Rehabilitation hard costs for all assisted units (not including common areas and exterior surfaces) b = Rehabilitation hard costs for common areas and exterior painted surfaces c = Number of federally assisted units d = Total number of units

   2. (2) The average Federal assistance per assisted dwelling unit is calculated using the following formula:

      Per unit Federal assistance = e/c

      Where: e = Total Federal assistance for the project c = Number of federally assisted units

[69 FR 34272, June 21, 2004]