Can a HOPWA grantee deny administrative costs to a sponsor?

Date Published: July 2011

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No.  Sponsors must undertake the grant administration activities established at 24 C.F.R. § 574.500, including project management, recordkeeping, performance reporting and evaluation of HOPWA efforts.  Carrying out these activities ensures that awards are being administered in compliance with all applicable laws.  To ensure a reasonable level of funding is available to carry out administrative responsibilities, HOPWA grantees should allow a project sponsor to use at least four percent (and not more than seven percent) of amounts received for administrative expenses.  In lieu of providing HOPWA grant funds for administration, grantees may identify and use leveraged funds or other resources, such as State, local or private funding, equivalent to at least four percent of the award for project sponsor administrative expenses.

Tags: HOPWA Program Requirements - Administrative and Planning Costs/Cap