[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: 24CFR570.911]

[Page 166]
 
                 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. 570.911  Reduction, withdrawal, or adjustment of a grant or other 
appropriate action.

    (a) Opportunity for an informal consultation. Prior to a reduction, 
withdrawal, or adjustment of a grant or other appropriate action, taken 
pursuant to paragraph (b), (c), or (d) of this section, the recipient 
shall be notified of such proposed action and given an opportunity 
within a prescribed time period for an informal consultation.
    (b) Entitlement grants. Consistent with the procedures described in 
Sec. 570.900(b), the Secretary may make a reduction in the entitlement 
grant amount either for the succeeding program year or, if the grant had 
been conditioned, up to the amount that had been conditioned. The amount 
of the reduction shall be based on the severity of the deficiency and 
may be for the entire grant amount.
    (c) HUD-administered small cities grants. Consistent with the 
procedures described in Sec. 570.900(b), the Secretary may adjust, 
reduce or withdraw the grant or take other actions as appropriate, 
except that funds already expended on eligible approved activities shall 
not be recaptured or deducted from future grants.
    (d) Urban Development Action Grants. Consistent with the procedures 
described in Sec. 570.900(b), the Secretary may adjust, reduce or 
withdraw the grant or take other actions as appropriate, except that 
funds already expended on eligible approved activities shall not be 
recaptured or deducted from future grants made to the recipient.