In the CDBG Program, can a "for profit" entity administer/manage the jurisdiction’s Housing Rehabilitation Program as a subrecipient?
Date Published: May 2015
A for-profit entity cannot be a subrecipient unless it is a qualified microenterprise as stated in 24 CFR 570.201(o). A subrecipient is defined at 24 CFR 570.500(c) as a public or private nonprofit agency, authority, or organization, or a for-profit entity authorized under 570.201(o). If the for-profit is not a qualified microenterprise, it cannot be considered as a subrecipient. A grantee may procure a contractor (which may be a for-profit) to administer its housing rehabilitation program as long as all of the requirements in 2 CFR 200.320 are met. In this capacity, the contractor is not considered a subrecipient.