CDBG Entitlement FAQ

Can a county take CDBG funds away from a participating UGLG after the county has awarded those funds to the city for an activity?

Date Published: March 2019

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Yes. An urban county may take back CDBG funds awarded to an unit of general local government (UGLG) for various reasons. These reasons include but are not limited to untimely performance, noncompliance with cooperation and/or subrecipient agreements, ineligible activities, activity does not meet a national objective, noncompliance with Davis-Bacon requirements or fair housing requirements. The urban county ensures CDBG funds are used in accordance with all program requirements. Allowing an UGLG to carry out a CDBG-assisted activity does not relieve the urban county of this responsibility. When an UGLG is participating with, or as part of, an urban county, the urban county is responsible for holding the UGLG to the same requirements as subrecipients.

Tags: CDBG Entitlement Program Urban County