Can scholarship money cover cost of living/books/housing?

It depends on several factors. First, each school has rules on how much scholarship money a student can receive. At some schools scholarships (both school awarded and outside combined) cannot exceed the cost of tuition. In the case that you receive a school awarded scholarship and another outside scholarship that exceeds tuition costs then your school award will be reduced.
Some schools offer a very limited number of full-tuition fellowships that include an additional stipend. Consideration for these awards will differ by school (i.e. requiring an additional application or not).
The biggest factor in determining if outside scholarship money can be used for living expenses is if the money goes to the student or the university. Some scholarships are sent directly to the school while others go to the student. If the money goes to you then you typically can use it as needed to cover books, student fees, and living expenses, if needed. These awards are great for students who have a full-scholarship but are looking to offset the additional costs beyond tuition.

Hope this helps.