(a) Exhaustion required. No complainant may file a complaint with
the Department until the grantee level procedures specified in
Sec. 636.3 have been exhausted.
(b) Exhaustion exceptions. Complainants who have not exhausted the
procedures at the grantee level may file the complaint at the Federal
level, and the Department may accept such complaint if it determines
that:
(1) The grantee or subrecipient has not acted within the time frames
specified in Sec. 636.3; or
(2) The grantee's or subrecipient's procedures are not in compliance
with Sec. 636.3; or
(3) An emergency situation exists.