CDBG Entitlement FAQ

When are funds for a project in our annual action plan considered to be obligated? Is it when the sub-grantee agreement with that municipality is executed or when the actual construction contract is signed by the municipality and the street contractor? 

Date Published: May 2015

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The Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments (24 CFR Part 85) / [2 CFR Part 200] which is applicable to the CDBG Program, includes the following definition: Obligations mean the amounts of orders placed, contracts and subgrants awarded, goods and services received, and similar transactions during a given period that will require payment by the grantee during the same or a future period. The funds would not meet this definition of obligation until the contract is executed between the unit of government and the entity that will perform the work.

Tags: CDBG Entitlement Program Cost Reasonableness