[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: 24CFR968.425]



[Page 528-529]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 968_PUBLIC HOUSING MODERNIZATION--Table of Contents

 

                   Subpart D_Vacancy Reduction Program

 

Sec.  968.425  HUD review of grantee performance.



    (a) Performance reviews. HUD shall carry out such reviews of the 

performance of each funded PHA as may be necessary or appropriate to 

determine compliance with the PHA's vacancy reduction plan and related 

HUD requirements. In these reviews HUD will determine whether the PHA 

has:

    (1) Carried out its vacancy reduction activities in a timely manner 

and in accordance with its vacancy reduction plan;

    (2) Completed, or made reasonable progress toward completing, the 

physical items funded under the vacancy reduction plan, and whether the 

work items being carried out conform with the modernization and energy 

standards in Sec.  968.115 of this chapter;

    (3) Implemented, or made reasonable progress toward implementing, 

the management improvements funded under the vacancy reduction program; 

and

    (4) Made reasonable progress in meeting the goals established in its 

vacancy reduction plan.

    (b) Notice of deficiency. If HUD finds any deficiency in a review of 

a grantee's performance under this part, HUD may issue to the grantee a 

notice of deficiency stating the specific program requirements that the 

grantee has violated and requesting the grantee to take corrective 

action.

    (c) Corrective action order--(1) Issuance. If HUD finds any of the 

deficiencies listed in paragraph (c)(3) of this section in its review of 

the grantee's performance, HUD may issue to the grantee a corrective 

action order, whether or not a notice of deficiency has previously been 

issued on the specific deficiency. The corrective action order shall 

notify the grantee of the specific program requirements that the grantee 

has violated and shall specify the corrective action.

    (2) Consultation with grantee. Before ordering corrective action, 

HUD will give the grantee an opportunity to consult with HUD regarding 

the proposed action.

    (3) Bases for corrective action. HUD may order a grantee to take 

corrective action only if HUD determines:

    (i) The grantee has not submitted a performance report as required 

by HUD;

    (ii) The grantee has not carried out activities under its vacancy 

reduction program in a timely manner and in accordance with HUD 

requirements;

    (iii) The grantee does not have continuing capacity to carry out 

activities in its vacancy reduction plan; or

    (iv) An audit conducted in accordance with 24 CFR part 44, or 

pursuant to other HUD reviews, reveals deficiencies that HUD reasonably 

believes require corrective action.

    (d) Nature of corrective action. (1) HUD shall design corrective 

action to prevent a continuation or recurrence of the same or a similar 

deficiency or to mitigate to the greatest extent feasible any adverse 

effects of the deficiency.

    (2) HUD may order a grantee to take the corrective action that HUD 

determines appropriate for carrying out the



[[Page 529]]



elements of the vacancy reduction plan. Corrective action may include, 

but is not limited to, suspension of grantee's authority to incur costs 

against the vacancy reduction funding and reimbursement, from sources 

other than HUD funds, of any amount spent improperly.

    (e) Failure to take corrective action. In cases where HUD has 

ordered corrective action and the grantee has failed to take the 

required action within a reasonable time, as specified by HUD, HUD may 

take one or more of the following steps:

    (1) Withhold vacancy reduction funds from the grantee;

    (2) Declare a breach of the ACC by the grantee; and

    (3) Any other sanctions authorized by law or regulation.