[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1003.503]



[Page 791-792]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1003_COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKA 

NATIVE VILLAGES--Table of Contents

 

                     Subpart F_Grant Administration

 

Sec.  1003.503  Program income.



    (a) Program income requirements for ICDBG grantees are set forth in 

24 CFR 85.25, as modified by this section.

    (b) Program income means gross income received by the grantee or a 

subrecipient directly generated from the use of ICDBG funds during the 

grant period, except as provided in paragraph (b)(4) of this section. 

When program income is generated by an activity that is only partially 

assisted with ICDBG funds, the income shall be prorated to reflect the 

percentage of ICDBG funds used.

    (1) Program income includes, but is not limited to, the following:

    (i) Proceeds from the disposition by sale or long-term lease of real 

property purchased or improved with ICDBG funds;

    (ii) Proceeds from the disposition of equipment purchased with ICDBG 

funds;

    (iii) Gross income from the use or rental of real or personal 

property acquired by the grantee or by a subrecipient with ICDBG funds, 

less costs incidental to generation of the income;

    (iv) Gross income from the use or rental of real property, owned by 

the grantee or by a subrecipient, that was constructed or improved with 

ICDBG funds, less costs incidental to generation of the income;

    (v) Payments of principal and interest on loans made using ICDBG 

funds, except as provided in paragraph (b)(3) of this section;



[[Page 792]]



    (vi) Proceeds from the sale of loans made with ICDBG funds except as 

provided in paragraph (b)(4) of this section;

    (vii) Proceeds from sale of obligations secured by loans made with 

ICDBG funds;

    (viii) Interest earned on funds held in a revolving fund account;

    (ix) Interest earned on program income pending its disposition; and

    (x) Funds collected through special assessments made against 

properties owned and occupied by households not of low and moderate 

income, where the assessments are used to recover all or part of the 

ICDBG portion of a public improvement.

    (2) Program income does not include income earned on grant advances 

from the U.S. Treasury. The following items of income earned on grant 

advances must be remitted to HUD for transmittal to the U.S. Treasury 

and will not be reallocated:

    (i) Interest earned from the investment of the initial proceeds of a 

grant advance by the U.S. Treasury;

    (ii) Income (e.g., interest) earned on loans or other forms of 

assistance provided with ICDBG funds that are used for activities 

determined by HUD either to be ineligible or that fail substantially to 

meet any other requirement of this part.

    (3) The calculation of the amount of program income for the 

grantee's ICDBG program as a whole (i.e., comprising activities carried 

out by a grantee and its subrecipients) shall exclude payments made by 

subrecipients of principal and/or interest on loans received from 

grantees where such payments are made from program income received by 

the subrecipient. (By making such payments, the subrecipient shall be 

deemed to have transferred program income to the grantee.) The amount of 

program income derived from this calculation shall be used for reporting 

purposes and in determining limitations on planning and administration 

and public services activities to be paid for with ICDBG funds.

    (4) Program income does not include any income received in a single 

year by the grantee and all its subrecipients if the total amount of 

such income does not exceed $25,000.

    (5) Examples of other receipts that are not considered program 

income are proceeds from fundraising activities carried out by 

subrecipients receiving ICDBG assistance; funds collected through 

special assessments used to recover the non-ICDBG portion of a public 

improvement; and proceeds from the disposition of real property acquired 

or improved with ICDBG funds when the disposition occurs after the 

applicable time period specified in Sec.  1003.502(b)(8) for 

subrecipient-controlled property, or in Sec.  1003.504 for grantee-

controlled property.

    (6) For purposes of determining the applicability of the program 

income requirements included in this part and in 24 CFR 85.25, the grant 

period is the time between the effective date of the grant agreement and 

the close-out of the grant pursuant to the requirements of Sec.  

1003.508.

    (7) As provided for in 24 CFR 85.25(g)(2), program income received 

will be added to the funds committed to the grant agreement and shall be 

used for purposes and under the conditions of the grant agreement.

    (8) Recording program income. The receipt and expenditure of program 

income as defined in Sec.  1003.503(b) shall be recorded as part of the 

financial transactions of the grant program.



(Approved by the Office of Management and Budget under control number 

2577-0191)