[Code of Federal Regulations]

[Title 24, Volume 3]

[Revised as of April 1, 2005]

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

[CITE: 24CFR570.432]



[Page 100]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 

        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 570_COMMUNITY DEVELOPMENT BLOCK GRANTS--Table of Contents

 

            Subpart F_Small Cities and Insular Areas Programs

 

Sec.  570.432  Repayment of section 108 loans.



    Notwithstanding any other provision of this subpart, a unit of 

general local government in a nonentitlement area where the State has 

not elected to administer the CDBG program shall be eligible for Small 

Cities Grant assistance hereunder for the sole purpose of paying any 

amounts due on debt obligations issued by such unit of general local 

government (or its designated public agency) and guaranteed by the 

Secretary pursuant to section 108 of the Act (see subpart M of this 

part). The award of grant assistance for such purpose shall be 

consistent with section 106(d)(3)(B) of the Act, in such amount, and 

subject to such conditions as the Secretary may determine. Since 

guaranteed loan funds (as defined in Sec.  570.701) are required to be 

used in accordance with national and primary objective requirements, and 

other applicable requirements of this part, any grant made to make 

payments on the debt obligations evidencing the guaranteed loan shall be 

presumed to meet such requirements, unless HUD determines that the 

guaranteed loan funds were not used in accordance with such 

requirements. Any such determination by HUD shall not prevent the making 

of the grant in the amount of the payment due, but it may be grounds for 

HUD to take appropriate action under subpart O of this part based on the 

original noncompliance.