Date Published: July 2016
Because it will become Community Development Block Grant (CDBG) program funding, the program income on hand is not subject to the 25% set-aside requirement. Therefore, first deduct the amounts of any unused NSP program income proposed for transfer (not including anticipated future revenue). Next calculate the amount of funds expended or obligated for set-aside projects. Divide that set-aside amount by the total grant amount plus program income used to date. If the result indicates that no less than one quarter of the funds that would remain NSP funds after the transfer are for the 25% set-aside, this calculation will suffice to document the transaction to the field office and permit a transfer to go forward.