NEWS STORY: HUD Rule Would Allow Funds for Buildings Including Religious Activities

c. 2003 Religion News Service WASHINGTON _ The Department of Housing and Urban Development has proposed a new rule that would permit federal funds to be used for the construction of buildings that include “inherently religious activities” as well as eligible social service programs. The proposal, outlined in the Federal Register earlier this month (January), […]

c. 2003 Religion News Service

WASHINGTON _ The Department of Housing and Urban Development has proposed a new rule that would permit federal funds to be used for the construction of buildings that include “inherently religious activities” as well as eligible social service programs.

The proposal, outlined in the Federal Register earlier this month (January), is being welcomed and criticized by observers of President Bush’s faith-based initiative.


The eight-page proposal lists several instances where, for the first time, future construction of facilities using HUD funds might involve faith-based groups.

“Where a structure is used for both eligible and inherently religious activities, HUD funds may not exceed the cost of those portions of the acquisition, construction or rehabilitation that are attributable to eligible activities,” the proposed rule reads.

It also says HUD funds cannot be used for buildings that are solely for religious activities, including “worship, religious instruction or prayer.”

The proposal’s language concerning construction was published on Jan. 6 but did not immediately draw much attention. It will be open for public comment until March 7, when HUD officials will begin drafting a final version of the rule.

Its provisions concerning construction affect a variety of initiatives by HUD, which offered a total of $7.7 billion in grants last year. The language applies to community development block grants as well as programs related to owning single-family homes, housing persons with AIDS and providing emergency shelter.

A HUD official said the proposal could allow a church to construct a building that would both offer shelter to the homeless and include a chapel. That official said HUD field staff would determine a formula so that federal grant money would be used for the social service and not the religious purpose.

As with other HUD grants, inspections and reports would be required to monitor compliance with the specifics of the grant.


Supporters and opponents of the faith-based initiative consider this a dramatic push ahead by the Bush administration. But the idea that facilities funded with public money could sometimes be used for worship services is drawing criticism and questions from some quarters.

“I see no way that the Constitution or Supreme Court decisions permit the use of federal dollars for the construction of religious facilities,” the Rev. Barry Lynn, executive director of Americans United for Separation of Church and State, said in an interview.

“If you put a roof on a building and it covers both the homeless shelter and the chapel, frankly, you’ve violated the Constitution.”

Bob Tuttle, a law professor at George Washington Law School who has co-written analyses of the Bush administration’s faith-based initiative, agreed and wondered how officials would monitor compliance with a rule that HUD money be used solely for eligible services.

“When you pay for bricks and mortar, you have no idea how that’s being used,” said Tuttle, whose analyses have been published by the Roundtable on Religion and Social Welfare Policy.

“It doesn’t have a dedicated purpose like paying for food or paying for somebody’s rent.”


But Jay Sekulow, chief counsel for the American Center for Law and Justice, believes it’s possible to have publicly funded facilities for community and religious services without violating church-state separation.

“I think it’s the right move,” he said. “The fact of the matter is that the law, as currently interpreted by the Supreme Court, allows for precisely that.”

He cited several church-state cases related to religious uses of publicly funded venues, including one involving an evangelical church’s use of a public school auditorium to show Christian movies.

“They’re being constructed for community uses, which will include religious use, not only for religious use,” he said.

The Traditional Values Coalition, a Washington-based conservative public policy organization, also praised the proposal.

“This is getting federal aid to the front lines,” said the Rev. Louis P. Sheldon, chairman of the coalition, in a statement.

“President Bush’s effort is on target and the American people appreciate this common-sense approach to getting the biggest and most compassionate bang for federal bucks.”


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