In the operation of each residence established with the assistance of the loan, the recipient must agree to the following:
(a)
The use of alcohol or any illegal drugs in the residence will be prohibited;
(b)
Any resident who violates the prohibition of alcohol or any illegal drugs will be expelled from the residence;
(c)
The cost of maintaining the residence, including fees for rent and utilities, will be paid by residents;
(d)
The residents will, through a majority vote of the residents, otherwise establish policies governing the conditions of the residence, including the manner in which applications for residence are approved;
(e)
The residence will be operated solely as a residence for not less than six veterans.
Code of Federal Regulations
(Authority: Sec. 8 of Pub. L. 102-54, 105 Stat. 271,
38 U.S.C. 501
)