694.3—What are the requirements for a cohort?
        
        (a) In general.
         Each cohort to be served by a Partnership or State must be from a participating school—
    
    
    
        
        (2) 
         In which at least 50 percent of the students are eligible for free or reduced-price lunch under the National School Lunch Act; or
    
    
        
        (b) Public housing exception.
         If the Partnership or State determines it would promote program effectiveness, a cohort may consist of all of the students in a particular grade level at one or more participating schools who reside in public housing, as defined in  section 3(b)(1) of the United States Housing Act of 1937.