Date Published: July 2016
A grantee does not have to have met the 25% set-aside prior to requesting a program income transfer. However, HUD has the discretion to determine the risk that the grantee will fail to meet the 25% set-aside (for grant funds plus program income expended to date) and make a determination regarding a fund transfer in that context. HUD may disallow the transfer if the risk of non-compliance with any NSP requirement is high or would be increased by the transfer. HUD may also allow a partial transfer of NSP program income to the Community Development Block Grant (CDBG) program, requiring the grantee to retain sufficient NSP funds to meet the set-aside requirement.