[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: 24CFR511.82]

[Page 29-30]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 511_RENTAL REHABILITATON GRANT PROGRAM--Table of Contents
 
   Subpart I_Grantee Performance: Review, Reporting and Corrective or 
                            Remedial Actions
 
Sec. 511.82  Corrective and remedial actions.

    (a) General. HUD will use the procedures in this section in 
conducting the performance review as provided in Sec. 511.80(a) and in 
taking corrective and remedial actions.
    (b) Performance review. (1) If HUD determines preliminarily that the 
grantee has not met the performance review standards in Sec. 511.80, 
the grantee will be given notice of this determination and an 
opportunity to demonstrate, within the time prescribed by HUD and on the 
basis of substantial facts and data, that it has done so.
    (2) If the grantee fails to demonstrate to HUD's satisfaction that 
it has met the performance review standards in Sec. 511.80, HUD will 
take appropriate corrective or remedial action in accordance with this 
section.
    (c) Corrective and remedial actions. In formulating appropriate 
corrective or remedial actions for performance deficiencies, HUD will 
take one or more of the actions specified in paragraphs (c)(1), (c)(2), 
and (c)(3) of this section. The action chosen will be designed to 
prevent a continuation of the deficiency; mitigate, to the extent 
possible, its adverse effects or consequences; and prevent its 
recurrence. In addition to these actions, HUD will take the action 
specified in paragraph (c)(4) of this section, when paragraph (c)(4) of 
this section is applicable.
    (1) HUD may request the grantee to submit and comply with proposals 
for action to correct, mitigate and prevent performance deficiencies, 
including:
    (i) Preparing and following a schedule of actions for carrying out 
the affected rental rehabilitation activities, consisting of schedules, 
timetables and milestones necessary to implement the affected 
activities;
    (ii) Establishing and following a management plan that assigns 
responsibilities for carrying out the remedial actions;
    (iii) Cancelling or revising activities likely to be affected by a 
performance deficiency, before expending grant amounts for the 
activities;
    (iv) Reprogramming rental rehabilitation grant amounts that have not 
yet been expended from affected activities to other eligible activities; 
and
    (v) Suspending disbursement of grant amounts for affected activities 
for a period of not more than 60 days.
    (2) [Reserved]
    (3) When HUD determines that a grantee has failed to meet one or 
more of the requirements of this part, HUD may reduce or withdraw rental 
rehabilitation grant amounts, or take other action as appropriate, 
except that rental rehabilitation grant amounts already expended on 
eligible activities will not be recaptured from existing grant 
allocations or obligations or deducted from future grants made available 
to the grantee. For purposes of paragraph (c)(3) of this section--
    (i) Grant amounts already expended on eligible activities includes 
all grant amounts that have been disbursed under this part for eligible 
activities, and
    (ii) Other action as appropriate means any remedial action legally 
available, including, without limitation, affirmative litigation, such 
as suits for declaratory judgment, specific performance, temporary or 
permanent injunctions, and any other available remedies other than those 
for recovery of money.

[[Page 30]]

    (4) Where HUD makes a final determination that it has a judicially 
enforceable claim for money against the grantee in a situation where 
rental rehabilitation grant amounts have been disbursed to the grantee 
or State recipient for ineligible costs under this part, HUD will follow 
the procedures described in the Federal Claims Collection Standards (4 
CFR parts 101-105) in order to:
    (i) Demand in writing that the grantee or State recipient reimburse 
HUD in the amount of the ineligible costs, using funds from non-
federally derived sources; and
    (ii) Initiate affirmative litigation to recover the amount of the 
ineligible costs, if necessary for collection. HUD's final determination 
to seek recovery of grant amounts expended on ineligible costs under 
paragraph (c)(4) of this section shall constitute a claim within the 
meaning of 31 U.S.C. 3711, et seq., and interest shall be charged on 
delinquent claims as required by the Federal Claims Collection 
Standards.
    (d) Amounts recovered under paragraph (c)(4) of this section are not 
rental rehabilitation grant amounts and shall be deposited in the U.S. 
Treasury's miscellaneous receipts account.

[55 FR 20050, May 14, 1990, as amended at 61 FR 7062, Feb. 23, 1996]