If I have not yet met the 25% Set-Aside Requirement, can I retain only the amount of program income needed to meet the set-aside requirement and transfer the remaining program income? Or must I meet the Set-Aside Requirement prior to any transfers?

Date Published: July 2016

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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.

Tags: NSP Financial and Grants Management - Program Income