[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: 24CFR583.410]

[Page 261]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 583_SUPPORTIVE HOUSING PROGRAM--Table of Contents
 
                        Subpart E_Administration
 
Sec. 583.410  Obligation and deobligation of funds.

    (a) Obligation of funds. When HUD and the applicant execute a grant 
agreement, funds are obligated to cover the amount of the approved 
assistance under subpart B of this part. The recipient will be expected 
to carry out the supportive housing or supportive services activities as 
proposed in the application.
    (b) Increases. After the initial obligation of funds, HUD will not 
make revisions to increase the amount obligated.
    (c) Deobligation. (1) HUD may deobligate all or parts of grants for 
acquisition, rehabilitation, acquisition and rehabilitation, or new 
construction:
    (i) If the actual total cost of acquisition, rehabilitation, 
acquisition and rehabilitation, or new construction is less than the 
total cost anticipated in the application; or
    (ii) If proposed activities for which funding was approved are not 
begun within three months or residents do not begin to occupy the 
facility within nine months after grant execution.
    (2) HUD may deobligate the amounts for annual leasing costs, 
operating costs or supportive services in any year:
    (i) If the actual leasing costs, operating costs or supportive 
services for that year are less than the total cost anticipated in the 
application; or
    (ii) If the proposed supportive housing operations are not begun 
within three months after the units are available for occupancy.
    (3) The grant agreement may set forth in detail other circumstances 
under which funds may be deobligated, and other sanctions may be 
imposed.
    (4) HUD may:
    (i) Readvertise the availability of funds that have been deobligated 
under this section in a notice of fund availability under Sec. 583.200, 
or
    (ii) Award deobligated funds to applications previously submitted in 
response to the most recently published notice of fund availability, and 
in accordance with subpart C of this part.