Section 578.45 - Rehabilitation(a)Use. Grant funds may be used to pay up to 100 percent of the cost of rehabilitation of structures to provide housing or supportive services to homeless persons.(b)Eligible costs. Eligible rehabilitation costs include installing cost-effective energy measures, and bringing an existing structure to State and local government health and safety standards.(c)Ineligible costs. Grant funds may not be used for rehabilitation of leased property.(d)Broadband infrastructure. Any substantial rehabilitation, as defined by 24 CFR 5.100 , of a building with more than 4 rental units and funded by a grant awarded after January 19, 2017 must include installation of broadband infrastructure, as this term is also defined in 24 CFR 5.100 , except where the grantee determines and, in accordance with § 578.103 , documents the determination that:(1) The location of the substantial rehabilitation makes installation of broadband infrastructure infeasible;(2) The cost of installing broadband infrastructure would result in a fundamental alteration in the nature of its program or activity or in an undue financial burden; or(3) The structure of the housing to be substantially rehabilitated makes installation of broadband infrastructure infeasible. 77 FR 45442 , July 31, 2012, as amended at 81 FR 92637 , Dec. 20, 2016