[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: 24CFR954.601]



[Page 429]

 

                 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 F_Performance Reviews and Sanctions

 

Sec.  954.601  Corrective and remedial actions.



    (a) General. HUD will use the procedures in this section in 

conducting the performance review as provided in Sec.  954.600 and in 

taking corrective and remedial actions. However, HUD may temporarily 

suspend payments based upon HUD's preliminary determination that the 

grantee has failed to comply with the requirements of the Act, 

regulations, or grant agreement if suspension is necessary to preclude 

the further expenditure of funds for activities affected by the failure 

to comply.

    (b) Performance review. (1) If HUD determines preliminarily that the 

grantee has not met a requirement of this part, the grantee will be 

given notice of this determination and an opportunity to demonstrate, 

within the time prescribed by HUD (not to exceed 30 days) and on the 

basis of substantial facts and data, that it has done so.

    (2) If the grantee fails to demonstrate to HUD's satisfaction that 

it has met the requirement, HUD will take corrective or remedial action 

in accordance with this section or Sec.  954.602.

    (c) Corrective and remedial actions. Corrective or remedial actions 

for a performance deficiency (failure to meet a provision of this part) 

will be designed to prevent a continuation of the deficiency; mitigate, 

to the extent possible, its adverse effects or consequences; and prevent 

its recurrence.

    (1) HUD may request the grantee to submit and comply with proposals 

for action to correct, mitigate and prevent a performance deficiency, 

including:

    (i) Preparing and following a schedule of actions for carrying out 

the affected activities, consisting of schedules, timetables, and 

milestones necessary to implement the affected activities;

    (ii) Establishing and following a management plan that assigns 

responsibilities for carrying out the remedial actions;

    (iii) Cancelling or revising activities likely to be affected by the 

performance deficiency, before expending HOME funds for the activities;

    (iv) Reprogramming HOME funds in the HUD account that have not yet 

been expended from affected activities to other eligible activities;

    (v) Reimbursing the HUD account in any amount not used in accordance 

with the requirements of this part; and

    (vi) Suspending disbursement of funds in the HUD account for 

affected activities.

    (2) HUD may also--

    (i) Change the method of payment from an advance to reimbursement 

basis; and

    (ii) Take other remedies that may be legally available.