If an agency is placed on inactive status, then re-activated once deficiencies have been cured, are expenses incurred during the time the agency was inactive eligible for reimbursement?
Date Published: August 2018
No, expenses incurred during the period of time when an agency was placed on inactive status as a result of a deficiency are not eligible for reimbursement.
HUD-approved agencies are expected to provide housing counseling that meets HUD standards. If an agency is placed on inactive status as a result of not meeting HUD’s standards for Housing Counseling, the activities performed during that time are not eligible expenses. Once the agency has cured any deficiencies and is placed in ‘active’ status, they may seek reimbursement for expenses occurred as of the date they were re-activated.