[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: 24CFR954.500]



[Page 424-425]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 954_INDIAN HOME PROGRAM--Table of Contents

 

                    Subpart E_Program Administration

 

Sec.  954.500  Repayment of investment.





    (a) HOME funds will be made available pursuant to a HOME Investment 

Partnership Agreement. The agreement ensures that HOME funds invested in 

affordable housing are repayable if the housing ceases to qualify as 

affordable housing before the period of affordability expires. The 

amount of HOME funds expended on housing assisted with HOME funds that 

does not meet the affordability requirements for the period specified in 

Sec.  954.306 or Sec.  954.307, as applicable, must be repaid in 

accordance with paragraph (b) of this section.

    (b) Any repayment of HOME funds (including repayment required if the 

housing no longer qualifies as affordable housing), and any payment of 

interest or other return on the investment of HOME funds, that is made 

before grant close out must be deposited in the grantee's account and 

used in accordance with the requirements of this part. A grantee may 

retain repayments, interest, and other return on investment of HOME 

funds that are made after grant closeout if the grantee agrees to use 

the funds for eligible activities.

    (c) HUD will recapture HOME funds that are not expended within five 

years after the last day of the month in which it obligated the funds.

    (d) Termination before completion. If a project is terminated before 

its completion, whether voluntarily by the



[[Page 425]]



grantee or otherwise, an amount equal to the HOME funds disbursed for 

the project must be paid by the grantee to its HOME account. If the HOME 

funds were disbursed by HUD, the amount must be paid to HUD; if the HOME 

funds were disbursed from the grantee's account, the amount must be paid 

to the grantee's account. If the amount is not repaid, the grantee will 

be subject to actions under Sec.  954.600 Performance reviews, Sec.  

954.601 Corrective and remedial actions, and Sec.  954.602 Notice and 

opportunity for hearing; sanctions.