CDBG Entitlement FAQ
Q

What if the housing or other use (LMI)-benefiting use that was planned for our CDBG activity does not materialize?

Date Published: October 2018

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A

In such cases, the change of use rules apply, as described at 24 CFR 570.505 for entitlement grantees and 24 CFR 570.503(a)(7) for subrecipients. Change of use rules apply to real property acquired or improved using CDBG funds in excess of $25,000. Note that demolition costs are not counted toward the $25,000. For entitlement grantees, these standards apply from the date CDBG funds are first spent for the property until five years after closeout of an entitlement recipient's participation in the entitlement CDBG program or, with respect to other recipients, until five years after the closeout of the grant from which the assistance to the property was provided. For subrecipients, the properties must be used to meet one of the national objectives until five years after expiration of the agreement, or for such longer period of time as determined to be appropriate by the grantee. If the property is still covered by these requirements, the grantee or subrecipient must follow the change of use procedures.


Tags: CDBG Entitlement Program Acquisition-Disposition-Demolition

FAQ ID:

3458