[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: 24CFR570.708]

[Page 160]
 
                 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 M_Loan Guarantees
 
Sec. 570.708  Sanctions.

    (a) Non-State assisted public entities. The performance review 
procedures described in subpart O of this part apply to all public 
entities receiving guaranteed loan funds other than State-assisted 
public entities. Performance deficiencies in the use of guaranteed loan 
funds made available to such public entities (or program income derived 
therefrom) or violations of the contract entered into pursuant to Sec. 
570.705(b)(1) may result in the imposition of a sanction authorized 
pursuant to Sec. 570.900(b)(7) against pledged CDBG grants. In 
addition, upon a finding by HUD that the public entity has failed to 
comply substantially with any provision of the Act with respect to 
either the pledged grants or the guaranteed loan funds or program 
income, HUD may take action against the pledged grants as provided in 
Sec. 570.913 and/or may take action as provided in the contract for 
loan guarantee assistance.
    (b) State-assisted public entities. Performance deficiencies in the 
use of guaranteed loan funds (or program income derived therefrom) or 
violations of the contract entered into pursuant to Sec. 570.705(b)(1) 
may result in an action authorized pursuant to Sec. 570.495 or Sec. 
570.496. In addition, upon a finding by HUD that the State or public 
entity has failed to comply substantially with any provision of the Act 
with respect to the pledged CDBG nonentitlement funds, the guaranteed 
loan funds, or program income, HUD may take action against the pledged 
funds as provided in Sec. 570.496 and/or may take action as provided in 
the contract.