[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: 24CFR570.510]

[Page 142-143]
 
                 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 J_Grant Administration
 
Sec. 570.510  Transferring projects from urban counties to metropolitan 
cities.

    Section 106(c)(3) of the Act authorizes the Secretary to transfer 
unobligated grant funds from an urban county to a new metropolitan city, 
provided: the city was an included unit of general local government in 
the urban county immediately before its qualification as a metropolitan 
city; the funds to be transferred were received by the county before the 
qualification of the city as a metropolitan city; the funds to be 
transferred had been programmed by the urban county for use in the city 
before such qualification; and the city and county agree to transfer 
responsibility for the administration of the funds being transferred 
from the county's letter of credit to the city's letter of credit. The 
following rules apply to the transfer of responsibility for an activity 
from an urban county to the new metropolitan city.
    (a) The urban county and the metropolitan city must execute a 
legally binding agreement which shall specify:
    (1) The amount of funds to be transferred from the urban county's 
letter of credit to the metropolitan city's letter of credit;
    (2) The activities to be carried out by the city with the funds 
being transferred;
    (3) The county's responsibility for all expenditures and 
unliquidated obligations associated with the activities before the time 
of transfer, including a statement that responsibility for all audit and 
monitoring findings associated with those expenditures and obligations 
shall remain with the county;

[[Page 143]]

    (4) The responsibility of the metropolitan city for all other audit 
and monitoring findings;
    (5) How program income (if any) from the activities specified shall 
be divided between the metropolitan city and the urban county; and
    (6) Such other provisions as may be required by HUD.
    (b) Upon receipt of a request for the transfer of funds from an 
urban county to a metropolitan city and a copy of the executed 
agreement, HUD, in consultation with the Department of the Treasury, 
shall establish a date upon which the funds shall be transferred from 
the letter of credit of the urban county to the letter of credit of the 
metropolitan city, and shall take all necessary actions to effect the 
requested transfer of funds.
    (c) HUD shall notify the metropolitan city and urban county of any 
special audit and monitoring rules which apply to the transferred funds 
when the date of the transfer is communicated to the city and the 
county.