24 C.F.R. Subpart E—Program Administration
Title 24 - Housing and Urban Development
(a) HOME funds will be made available pursuant to a HOME Investment Partnership Agreement. The agreement ensures that HOME funds invested in affordable housing are repayable if the housing ceases to qualify as affordable housing before the period of affordability expires. The amount of HOME funds expended on housing assisted with HOME funds that does not meet the affordability requirements for the period specified in §954.306 or §954.307, as applicable, must be repaid in accordance with paragraph (b) of this section. (b) Any repayment of HOME funds (including repayment required if the housing no longer qualifies as affordable housing), and any payment of interest or other return on the investment of HOME funds, that is made before grant close out must be deposited in the grantee's account and used in accordance with the requirements of this part. A grantee may retain repayments, interest, and other return on investment of HOME funds that are made after grant closeout if the grantee agrees to use the funds for eligible activities. (c) HUD will recapture HOME funds that are not expended within five years after the last day of the month in which it obligated the funds. (d) Termination before completion. If a project is terminated before its completion, whether voluntarily by the grantee or otherwise, an amount equal to the HOME funds disbursed for the project must be paid by the grantee to its HOME account. If the HOME funds were disbursed by HUD, the amount must be paid to HUD; if the HOME funds were disbursed from the grantee's account, the amount must be paid to the grantee's account. If the amount is not repaid, the grantee will be subject to actions under §954.600 Performance reviews, §954.601 Corrective and remedial actions, and §954.602 Notice and opportunity for hearing; sanctions. (a) Responsibilities. The grantee is responsible for ensuring that HOME funds are used in accordance with all program requirements. The use of subgrantees and contractors does not relieve the grantee of this responsibility. (b) Executing a written agreement. Before disbursing any HOME funds to any entity (e.g., for-profit housing developer, nonprofit organization, homeowner, or IHA) the grantee must enter into a written agreement with the entity ensuring compliance with the requirements of this part. A subgrantee and a contractor must also enter into a written agreement before it disburses funds to any entity. The agreement remains in effect during the period for affordability under §954.306 or §954.307, as applicable, or if the entity is a subgrantee, during any period that the entity has control over HOME funds. (c) Provisions in written agreement. At a minimum, the written agreement must include applicable provisions concerning the following items: (1) Use of the HOME funds. The agreement must describe the use of the HOME funds, including the tasks to be performed, a schedule for completing the tasks, and a budget. These items must be in sufficient detail to provide a sound basis for the grantee effectively to monitor performance under the agreement. (2) Affordability. The agreement must require housing assisted with HOME funds to meet the affordability requirements of §954.306 or §954.307, as applicable, and must require repayment of the funds if the housing does not meet the affordability requirements for the specified time period. (3) Repayments. If the entity is a subgrantee, the agreement must state if repayment, interest, and other return on the investment of HOME funds are to be remitted to the grantee or are to be retained for additional eligible activities by the entity. (4) Uniform administrative requirements. If the entity is a subgrantee, the agreement must require the entity to comply with applicable uniform administrative requirements, as described in §954.502. (5) Project requirements. The agreement must require compliance with project requirements in §954.400 through §954.402 of this part, as applicable in accordance with the type of project assisted. (6) Housing quality standard. The agreement must require owners of rental housing assisted with HOME funds to maintain the housing in compliance with applicable Housing Quality Standards and local housing code requirements for the duration of the agreement. (7) Other program requirements. The agreement must require the entity to carry out each activity in compliance with all Federal laws and regulations described in §954.4. (8) Conditions for religious organizations. Where applicable, the agreement must include the conditions prescribed in §954.301 for the use of HOME funds by religious organizations. (9) Requests for disbursements of funds. The agreement must specify that the entity may not request disbursement of funds under the agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount needed. (10) Reversion of assets. If the entity is a subgrantee, the agreement must specify that upon expiration of the agreement, the entity must transfer to the grantee any HOME funds on hand at the time of expiration and any accounts receivable attributable to the use of HOME funds. (11) Records and reports. The agreement must specify the particular records that must be maintained and any information or reports that must be submitted in order to assist the grantee in meeting its recordkeeping and reporting requirements. (12) Enforcement of the agreement. The agreement must provide for a means of enforcement by the grantee or the intended beneficiaries. In addition, the agreement must specify remedies for breach of the provisions of the agreement. If the entity is a subgrantee, the agreement must specify that, in accordance with 24 CFR 85.43, suspension or termination may occur if the entity materially fails to comply with any term of the agreement, and that the agreement may be terminated for convenience in accordance with 24 CFR 85.44. (13) Duration of the agreement. The agreement must specify that the agreement is in effect for the period of affordability required by the grantee under §954.306 or §954.307. (d) Monitoring. The grantee is responsible for managing the day-to-day operations of its HOME program, for monitoring the performance of all entities receiving HOME funds from the grantee to assure compliance with the requirements of this part, and for taking appropriate action when performance problems arise. (1) Not less than annually, the grantee must review the activities of owners of rental housing assisted with HOME funds to assess compliance with the requirement of this part, as set forth in the written agreement under paragraphs (b) and (c) of this section. For multifamily housing, each review must include on-site inspection to determine compliance with housing codes and the requirements of this part. For rental housing containing one- to four-dwelling units, an on-site review must be made once within each two-year period. The results of each review must be included in the grantee's performance report. (2) Not less than annually, the grantee must review the performance of each contractor and subgrantee. (a) Governmental entities. The requirements of OMB Circular No. A–87 and the following requirements of 24 CFR part 85 apply to the grantee and any governmental subgrantee receiving HOME funds: §§85.6, 85.12, 85.20, 85.21, 85.22, 85.26, 85.32, 85.33, 85.35, 85.36, 85.43, 85.44, 85.51, and 85.52. (b) Non-profit organizations. The requirements of OMB Circular No. A–122 (available from the Executive Office of the President, Publication Service, 725 17th Street, N.W., Suite G–2200, Washington, DC 20503; Telephone, (202) 395–7332)) and the following requirements of 24 CFR part 84 apply to subgrantees receiving HOME funds that are private nonprofit organizations: §§84.12, 84.22, 84.23, 84.25, 84.51, 84.52, and 84.71. (c) Alternatives to bonding. For construction contracts that exceed the amount for small purchase under 24 CFR 85.36, each contractor shall be required to provide bid guarantees and adequate assurance of performance and payment acceptable to HUD in accordance with 24 CFR 85.36(h). Performance and payment bonds for 100 percent of the total contract price are acceptable to HUD. There may be circumstances under which the bonding requirements of §85.36(h) are inconsistent with other responsibilities and obligations of the grantee. Alternative methods to provide performance and payment assurance may include: (1) Deposit with the grantee of a cash escrow of not less than 20 percent of the total contract price, subject to reduction during the warranty period, commensurate with potential risk; (2) Letter of credit for 25 percent of the total contract price, unconditionally payable upon demand of the grantee, subject to reduction during the warranty period commensurate with potential risk. Audits of the grantee and subgrantees must be conducted in accordance with 24 CFR parts 44 and 45, as applicable. (a) A grant will be closed out when all the following criteria have been met: (1) All funds to be closed out have been drawn down and expended for completed project costs, or funds not drawn down and expended have been deobligated by HUD; (2) Project Completion Reports for all projects using funds to be closed out have been submitted. HUD will use data contained in the project completion reports in the preparation of the Closeout Reports; (3) The grantee has been reviewed and audited and HUD has determined that all requirements, including affordability (for which also see paragraph (b)(2) of this section), are met or all monitoring and audit findings have been resolved. (i) A signed copy of the grantee's most recent audit report—covering all funds to be closed out—must be received by HUD. If the audit review by the Department of Interior (DOI) results in significant delays, the Area ONAP may request a signed copy of the audit prior to DOI review and use it as the document needed prior to closeout. If the audit does not cover all funds to be closed out, the closeout may proceed, provided the grantee agrees in the Closeout Report that any costs paid with the funds that were not audited must be subject to the grantee's next single audit and that the grantee may be required to repay to HUD any disallowed costs based on the results of the audit. (ii) The on-site monitoring of the grantee by the Area ONAP must include verification of data reflected in the Closeout Report and reconciliation of any discrepancies which may exist between HUD data and grantee records. (b) The Closeout Report contains the final data on the funds and must be signed by the grantee and HUD. In addition, the report must contain: (1) A provision regarding unaudited funds (“closeout subject to audit”), required by paragraph (a)(3)(i) of this section; and (2) A provision requiring the grantee to continue to meet the requirements applicable to housing projects for the period of affordability specified in §954.306 or §954.307, to keep records demonstrating that the requirements have been met and to repay the HOME funds, as required by §954.500, if the housing fails to remain affordable for the required period. (a) General. Each grantee must establish and maintain sufficient records to enable HUD to determine whether the grantee has met the requirements of this part. Records must be kept in a manner that identifies the source and use of funds for each project. (b) Period of record retention. (1) Except as provided in paragraphs (b)(2), (b)(3), or (b)(4) of this section, records must be retained for three years after closeout of the funds. (2) If any litigation, claim, negotiation, audit, or other action has been started before the expiration of the regular period specified in paragraph (b)(1) of this section, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular period, whichever is later. (3) Records regarding project requirements (§954.400 to §954.402) and other federal requirements (§954.4) that apply for the duration of the period of affordability, as well as the written agreement and inspection and monitoring reports must be retained for three years after the required period of affordability specified in §954.306 or §954.307, as applicable. (4) Records covering displacements and acquisition must be retained for at least three years after the date by which all persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled in accordance with §954.4(e). (c) Access to records. (1) The grantee must provide citizens, public agencies, and other interested parties with reasonable access to records, consistent with applicable tribal laws (or State law, which may apply if the Indian tribe is not exercising recognized powers of self-government) regarding privacy and obligations of confidentiality. (2) HUD and the Comptroller General of the United States, or any of their representatives, have the right of access to any pertinent books, documents, papers or other records of the grantees and subgrantees, in order to make audits, examinations, excerpts, and transcripts.
Title 24: Housing and Urban Development
PART 954—INDIAN HOME PROGRAM
Subpart E—Program Administration
§ 954.500 Repayment of investment.
§ 954.501 Grantee responsibilities; written agreements; monitoring.
§ 954.502 Applicability of uniform administrative requirements.
§ 954.503 Audit.
§ 954.504 Closeout.
§ 954.505 Recordkeeping.
§ 954.506 Performance reports.
(a) Management reports. Each grantee must submit management reports on its HOME program in such format and at such time as HUD may prescribe. Each grantee must submit a “Financial Status Report,” SF–269A, short form, at the same time it submits the Semi-Annual Performance Report, described below. A separate “Financial Status Report” is to be submitted for each Indian HOME program grant that the grantee has received.
(b) Semi-Annual performance report—(1) Submission. A grantee must submit a semi-annual performance report on its HOME activities to the responsible Area ONAP at such time as HUD may prescribe. Single copies of the report must be provided to the public upon request at no charge.
(2) Elements of the semi-annual performance report. The report must contain such information and be in such form as HUD may prescribe, and must include at least the following:
(i) A report on the proposed use of HOME funds from the grant application, consisting of the number of additional housing opportunities to be created for low-income and very low-income families, by project category (housing rehabilitation, acquisition of housing, new housing construction, and tenant-based rental assistance);
(ii) A report on the actual use of HOME funds, consisting of the number of additional housing opportunities created for low-income and very low-income families, by project category (housing rehabilitation, acquisition of housing, new housing construction, and tenant-based rental assistance). This includes a report on project income and includes data on the amount of repayments, interest, and other return on investment of HOME funds and the use of the funds for projects, including number of projects assisted, and characteristics of tenants and owners;
(iii) An assessment of the effectiveness of the efforts in providing the preferences and opportunities under section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)); and
(iv) Data on the total number of households (families and individuals) and business and nonprofit organizations displaced as a result of investments of HOME funds, including the cost of relocation payments (moving expenses and replacement housing), and the number and cost of real property acquisitions.
(Approved by the Office of Management and Budget under OMB control number 2577–0191)§ 954.507 Submission of project completion reports.
A Project Completion Report must be submitted to HUD within 120 days of the final drawdown request for the project. If a satisfactory Project Completion Report is not submitted by the due date, HUD will suspend further HOME disbursements and grant approvals for the grantee. Disbursements and grant approvals will remain suspended until a satisfactory Project Completion Report is received.
(Approved by the Office of Management and Budget under OMB control number 2577–0191) Browse Previous | Browse Next
