[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: 24CFR570.900]

[Page 161-162]
 
                 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. 570.900  General.

    Source: 53 FR 34466, Sept. 6, 1988, unless otherwise noted.


    (a) Performance review authorities--(1) Entitlement and HUD-
administered Small Cities performance reviews. Section 104(e)(1) of the 
Act requires that the Secretary shall, at least on an annual basis, make 
such reviews and audits as may be necessary or appropriate to determine 
whether the recipient has carried out its activities, and where 
applicable, its housing assistance plan in a timely manner, whether the 
recipient has carried out those activities and its certifications in 
accordance with the requirements and the primary objectives of the Act 
and with other applicable laws, and whether the recipient has a 
continuing capacity to carry out those activities in a timely manner.
    (2) Urban Development Action Grant (UDAG) performance reviews. 
Section 119(g) of the Act requires the Secretary, at least on an annual 
basis, to make such reviews and audits of recipients of Urban 
Development Action Grants as necessary to determine whether the 
recipient's progress in carrying out the approved activities is 
substantially in accordance with the recipient's approved plans and 
timetables.
    (b) Performance review procedures. This paragraph describes the 
review procedures the Department will use in conducting the performance 
reviews required by sections 104(e) and 119(g) of the Act:
    (1) The Department will determine the performance of each 
entitlement and HUD-administered small cities recipient in accordance 
with section 104(e)(1) of the Act by reviewing for compliance with the 
requirements described in Sec. 570.901 and by applying the performance 
criteria described in Sec. Sec. 570.902 and 570.903 relative to carrying 
out activities and, where applicable, the housing assistance plan in a 
timely manner. The review criteria in Sec. 570.904 will be used to 
assist in determining if the recipient's program is being carried out in 
compliance with civil rights requirements.
    (2) The Department will review UDAG projects and activities to 
determine whether such projects and activities are being carried out 
substantially in accordance with the recipient's approved plans and 
schedules. The Department will also review to determine if the recipient 
has carried out its UDAG program in accordance with all other 
requirements of the Grant Agreement and with all applicable requirements 
of this part.
    (3) In conducting performance reviews, HUD will primarily rely on 
information obtained from the recipient's performance report, records 
maintained, findings from monitoring, grantee and subrecipient audits, 
audits and surveys conducted by the HUD Inspector General, and financial 
data regarding the amount of funds remaining in the line of credit plus 
program income. HUD may also consider relevant information pertaining to 
a recipient's performance gained from other sources, including 
litigation, citizen comments, and other information provided by or 
concerning the recipient. A recipient's failure to maintain records in 
the prescribed manner may result in a finding that the recipient has 
failed to meet the applicable requirement to which the record pertains.
    (4) If HUD determines that a recipient has not met a civil rights 
review criterion in Sec. 570.904, the recipient will be provided an 
opportunity to demonstrate that it has nonetheless met the applicable 
civil rights requirement.
    (5) If HUD finds that a recipient has failed to comply with a 
program requirement or has failed to meet a performance criterion in 
Sec. 570.902 or Sec. 570.903, HUD will give the recipient an 
opportunity to provide additional information concerning the finding.
    (6) If, after considering any additional information submitted by a 
recipient, HUD determines to uphold the finding, HUD may advise the 
recipient to undertake appropriate corrective or remedial actions as 
specified in Sec. 570.910. HUD will consider the recipient's capacity 
as described in Sec. 570.905 prior to selecting the corrective or 
remedial actions.
    (7) If the recipient fails to undertake appropriate corrective or 
remedial actions which resolve the deficiency to

[[Page 162]]

the satisfaction of the Secretary, the Secretary may impose a sanction 
pursuant to Sec. 570.911, 570,912, or 570.913, as applicable.

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