[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR954.500]

[Page 425]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 954--INDIAN HOME PROGRAM--Table of Contents
 
                    Subpart E--Program Administration
 
Sec. 954.500  Repayment of investment.


    (a) HOME funds will be made available pursuant to a HOME Investment 
Partnership Agreement. The agreement ensures that HOME funds invested in 
affordable housing are repayable if the housing ceases to qualify as 
affordable housing before the period of affordability expires. The 
amount of HOME funds expended on housing assisted with HOME funds that 
does not meet the affordability requirements for the period specified in 
Sec. 954.306 or Sec. 954.307, as applicable, must be repaid in 
accordance with paragraph (b) of this section.
    (b) Any repayment of HOME funds (including repayment required if the 
housing no longer qualifies as affordable housing), and any payment of 
interest or other return on the investment of HOME funds, that is made 
before grant close out must be deposited in the grantee's account and 
used in accordance with the requirements of this part. A grantee may 
retain repayments, interest, and other return on investment of HOME 
funds that are made after grant closeout if the grantee agrees to use 
the funds for eligible activities.
    (c) HUD will recapture HOME funds that are not expended within five 
years after the last day of the month in which it obligated the funds.
    (d) Termination before completion. If a project is terminated before 
its completion, whether voluntarily by the grantee or otherwise, an 
amount equal to the HOME funds disbursed for the project must be paid by 
the grantee to its HOME account. If the HOME funds were disbursed by 
HUD, the amount must be paid to HUD; if the HOME funds were disbursed 
from the grantee's account, the amount must be paid to the grantee's 
account. If the amount is not repaid, the grantee will be subject to 
actions under Sec. 954.600 Performance reviews, Sec. 954.601 Corrective 
and remedial actions, and Sec. 954.602 Notice and opportunity for 
hearing; sanctions.