[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR570.902]

[Page 162-163]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 570_COMMUNITY DEVELOPMENT BLOCK GRANTS--Table of Contents
 
                      Subpart O_Performance Reviews
 
Sec. 570.902  Review to determine if CDBG funded activities are being 
carried out in a timely manner.

    HUD will review the performance of each entitlement and HUD-
administered small cities recipient to determine whether each recipient 
is carrying out its CDBG assisted activities in a timely manner.
    (a) Entitlement recipients. (1) Before the funding of the next 
annual grant and absent contrary evidence satisfactory to HUD, HUD will 
consider an entitlement recipient to be failing to carry out its CDBG 
activities in a timely manner if:
    (i) Sixty days prior to the end of the grantee's current program 
year, the amount of entitlement grant funds available to the recipient 
under grant agreements but undisbursed by the U.S. Treasury is more than 
1.5 times the entitlement grant amount for its current program year; and
    (ii) The grantee fails to demonstrate to HUD's satisfaction that the 
lack of timeliness has resulted from factors beyond the grantee's 
reasonable control.
    (2) Notwithstanding that the amount of funds in the line of credit 
indicates that the recipient is carrying out its activities in a timely 
manner pursuant to paragraph (a)(1) of this section, HUD may determine 
that the recipient is not carrying out its activities in a timely manner 
if:
    (i) The amount of CDBG program income the recipient has on hand 60 
days prior to the end of its current program year, together with the 
amount of funds in its CDBG line of credit, exceeds 1.5 times the 
entitlement grant amount for its current program year; and
    (ii) The grantee fails to demonstrate to HUD's satisfaction that the 
lack of timeliness has resulted from factors beyond the grantee's 
reasonable control.
    (3) In determining the appropriate corrective action to take with 
respect to a HUD determination that a recipient is not carrying out its 
activities in a timely manner pursuant to paragraphs (a)(1) or (a)(2) of 
this section, HUD will consider the likelihood that the recipient will 
expend a sufficient amount of funds over the next program

[[Page 163]]

year to reduce the amount of unexpended funds to a level that will fall 
within the standard described in paragraph (a)(1) of this section when 
HUD next measures the grantee's timeliness performance. For these 
purposes, HUD will take into account the extent to which funds on hand 
have been obligated by the recipient and its subrecipients for specific 
activities at the time the finding is made and other relevant 
information.
    (b) HUD-administered Small Cities program. The Department will, 
absent substantial evidence to the contrary, consider that a HUD-
administered small cities recipient is carrying out its CDBG funded 
activities in a timely manner if the schedule for carrying out its 
activities as contained in the approved application, or subsequent 
amendment, is being substantially met.

[53 FR 34466, Sept. 6, 1988, as amended at 60 FR 56917, Nov. 9, 1995]