[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: 24CFR1003.508]



[Page 793-795]

 

                 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.  1003.508  Grant closeout procedures.



    (a) Criteria for closeout. A grant will be closed out when the Area 

ONAP determines, in consultation with the grantee, that the following 

criteria have been met:

    (1) All costs to be paid with ICDBG funds have been incurred, with 

the exception of closeout costs (e.g., audit costs) and costs resulting 

from contingent liabilities described in the closeout agreement pursuant 

to paragraph (c) of this section. Contingent liabilities include, but 

are not limited to, third-party claims against the grantee, as well as 

related administrative costs.

    (2) With respect to activities which are financed by means of escrow 

accounts, loan guarantees, or similar mechanisms, the work to be 

assisted with ICDBG funds has actually been completed.

    (3) Other responsibilities of the grantee under the grant agreement 

and applicable laws and regulations appear to have been carried out 

satisfactorily or there is no further Federal interest in keeping the 

grant agreement open



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for the purpose of securing performance.

    (b) Closeout actions. (1) Within 90 days of the date it is 

determined that the criteria for closeout have been met, the grantee 

shall submit to the Area ONAP a copy of the final status and evaluation 

report described in Sec.  1003.506(a) and a completed Financial Status 

Report (SF-269). If acceptable reports are not submitted, an audit of 

the grantee's program activities may be conducted by HUD.

    (2) Based on the information provided in the status report and other 

relevant information, the grantee, in consultation with the Area ONAP, 

will prepare a closeout agreement in accordance with paragraph (c) of 

this section.

    (3) The Area ONAP will cancel any unused portion of the awarded 

grant, as shown in the signed grant closeout agreement. Any unused grant 

funds disbursed from the U.S. Treasury which are in the possession of 

the grantee shall be refunded to HUD.

    (4) Any costs paid with ICDBG funds which were not audited 

previously shall be subject to coverage in the grantee's next single 

audit performed in accordance with 24 CFR part 44. The grantee may be 

required to repay HUD any disallowed costs based on the results of the 

audit, or on additional HUD reviews provided for in the closeout 

agreement.

    (c) Closeout agreement. Any obligations remaining as of the date of 

the closeout shall be covered by the terms of a closeout agreement. The 

agreement shall be prepared by the grantee in consultation with the Area 

ONAP. The agreement shall identify the grant being closed out, and 

include provisions with respect to the following:

    (1) Identification of any closeout costs or contingent liabilities 

subject to payment with ICDBG funds after the closeout agreement is 

signed;

    (2) Identification of any unused grant funds to be canceled by HUD;

    (3) Identification of any program income on deposit in financial 

institutions at the time the closeout agreement is signed;

    (4) Description of the grantee's responsibility after closeout for:

    (i) Compliance with all program requirements, certifications and 

assurances in using program income on deposit at the time the closeout 

agreement is signed and in using any other remaining ICDBG funds 

available for closeout costs and contingent liabilities;

    (ii) Use of real property assisted with ICDBG funds in accordance 

with the principles described in Sec.  1003.504; and

    (iii) Ensuring that flood insurance coverage for affected property 

owners is maintained for the mandatory period;

    (5) Other provisions appropriate to any special circumstances of the 

grant closeout, in modification of or in addition to the obligations in 

paragraphs (c) (1) through (4) of this section. The agreement shall 

authorize monitoring by HUD, and shall provide that findings of 

noncompliance may be taken into account by HUD as unsatisfactory 

performance of the grantee in the consideration of any future grant 

award under this part.

    (d) Termination of grant for convenience. Grant assistance provided 

under this part may be terminated for convenience in whole or in part 

before the completion of the assisted activities, in accordance with the 

provisions of 24 CFR 85.44. The grantee shall not incur new obligations 

for the terminated portions after the effective date, and shall cancel 

as many outstanding obligations as possible. HUD shall allow full credit 

to the grantee for those portions of obligations which could not be 

canceled and which had been properly incurred by the grantee in carrying 

out the activities before the termination. The closeout policies 

contained in this section shall apply in such cases, except where the 

approved grant is terminated in its entirety. Responsibility for the 

environmental review to be performed under 24 CFR part 50 or 24 CFR part 

58, as applicable, shall be determined as part of the closeout process.

    (e) Termination for cause. In cases in which HUD terminates the 

grantee's grant under the authority of subpart H of this part, or under 

the terms of the grant agreement, the closeout policies contained in 

this section shall apply, except where the approved grant is canceled in 

its entirety. The provisions in 24 CFR 85.43(c) on the effects of 

termination shall also apply. HUD shall



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determine whether an environmental review is required, and if so, HUD 

shall perform it in accordance with 24 CFR part 50.