[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: 24CFR954.501]



[Page 425-426]

 

                 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.  954.501  Grantee responsibilities; written agreements; monitoring.



    (a) Responsibilities. The grantee is responsible for ensuring that 

HOME funds are used in accordance with all program requirements. The use 

of subgrantees and contractors does not relieve the grantee of this 

responsibility.

    (b) Executing a written agreement. Before disbursing any HOME funds 

to any entity (e.g., for-profit housing developer, nonprofit 

organization, homeowner, or IHA) the grantee must enter into a written 

agreement with the entity ensuring compliance with the requirements of 

this part. A subgrantee and a contractor must also enter into a written 

agreement before it disburses funds to any entity. The agreement remains 

in effect during the period for affordability under Sec.  954.306 or 

Sec.  954.307, as applicable, or if the entity is a subgrantee, during 

any period that the entity has control over HOME funds.

    (c) Provisions in written agreement. At a minimum, the written 

agreement must include applicable provisions concerning the following 

items:

    (1) Use of the HOME funds. The agreement must describe the use of 

the HOME funds, including the tasks to be performed, a schedule for 

completing the tasks, and a budget. These items must be in sufficient 

detail to provide a sound basis for the grantee effectively to monitor 

performance under the agreement.

    (2) Affordability. The agreement must require housing assisted with 

HOME funds to meet the affordability requirements of Sec.  954.306 or 

Sec.  954.307, as applicable, and must require repayment of the funds if 

the housing does not meet the affordability requirements for the 

specified time period.

    (3) Repayments. If the entity is a subgrantee, the agreement must 

state if repayment, interest, and other return on the investment of HOME 

funds are to be remitted to the grantee or are to be retained for 

additional eligible activities by the entity.

    (4) Uniform administrative requirements. If the entity is a 

subgrantee, the agreement must require the entity to comply with 

applicable uniform administrative requirements, as described in Sec.  

954.502.

    (5) Project requirements. The agreement must require compliance with 

project requirements in Sec.  954.400 through Sec.  954.402 of this 

part, as applicable in accordance with the type of project assisted.

    (6) Housing quality standard. The agreement must require owners of 

rental housing assisted with HOME funds to maintain the housing in 

compliance with applicable Housing Quality Standards and local housing 

code requirements for the duration of the agreement.

    (7) Other program requirements. The agreement must require the 

entity to carry out each activity in compliance with all Federal laws 

and regulations described in Sec.  954.4.

    (8) Conditions for religious organizations. Where applicable, the 

agreement must include the conditions prescribed in Sec.  954.301 for 

the use of HOME funds by religious organizations.

    (9) Requests for disbursements of funds. The agreement must specify 

that the entity may not request disbursement of funds under the 

agreement until the funds are needed for payment of eligible costs. The 

amount of each request must be limited to the amount needed.

    (10) Reversion of assets. If the entity is a subgrantee, the 

agreement must specify that upon expiration of the agreement, the entity 

must transfer to the grantee any HOME funds on hand at the time of 

expiration and any accounts receivable attributable to the use of HOME 

funds.

    (11) Records and reports. The agreement must specify the particular 

records that must be maintained and any information or reports that must 

be submitted in order to assist the



[[Page 426]]



grantee in meeting its recordkeeping and reporting requirements.

    (12) Enforcement of the agreement. The agreement must provide for a 

means of enforcement by the grantee or the intended beneficiaries. In 

addition, the agreement must specify remedies for breach of the 

provisions of the agreement. If the entity is a subgrantee, the 

agreement must specify that, in accordance with 24 CFR 85.43, suspension 

or termination may occur if the entity materially fails to comply with 

any term of the agreement, and that the agreement may be terminated for 

convenience in accordance with 24 CFR 85.44.

    (13) Duration of the agreement. The agreement must specify that the 

agreement is in effect for the period of affordability required by the 

grantee under Sec.  954.306 or Sec.  954.307.

    (d) Monitoring. The grantee is responsible for managing the day-to-

day operations of its HOME program, for monitoring the performance of 

all entities receiving HOME funds from the grantee to assure compliance 

with the requirements of this part, and for taking appropriate action 

when performance problems arise.

    (1) Not less than annually, the grantee must review the activities 

of owners of rental housing assisted with HOME funds to assess 

compliance with the requirement of this part, as set forth in the 

written agreement under paragraphs (b) and (c) of this section. For 

multifamily housing, each review must include on-site inspection to 

determine compliance with housing codes and the requirements of this 

part. For rental housing containing one- to four-dwelling units, an on-

site review must be made once within each two-year period. The results 

of each review must be included in the grantee's performance report.

    (2) Not less than annually, the grantee must review the performance 

of each contractor and subgrantee.