May Unified Funding Agencies (UFAs) impose sanctions on their subrecipients?

Date Published: August 2015

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Yes - UFAs may impose remedial actions and sanctions on subrecipients that are not in compliance with CoC Program regulation. Per 24 CFR 578.107(a)-(b), remedial actions and sanctions include:

  • Requiring the subrecipient to submit and comply with proposals for action to correct, mitigate, and prevent noncompliance with program requirements;
  • Changing the method of payment to a reimbursement basis;
  • Suspending payments to the extent the UFA determines necessary to preclude the further expenditure of funds for affected activities or projects;
  • Continuing the grant with an eligible substitute subrecipient of the UFA’s choosing;
  • Denying credit for a matching contribution for all or part of the cost of the affected activities and requiring the recipient to make further matching contributions to make up for the contribution determined to be ineligible;
  • Requiring the subrecipient to reimburse the recipient’s line of credit in an amount equal to the funds used for the affected activities;
  • Reducing or terminating the remaining grant of a subrecipient;
  • Conditioning a future grant; and
  • Taking other remedies that are legally available.

Tags: CoC Program Administration - Unified Funding Agencies