Date Published: March 2019
The first year a CDBG grantee is untimely, the HUD Field Office will send the grantee a finding letter and the grantee will be required to submit a workout plan showing how it intends to get back into compliance before the next timeliness measurement date. The plan might include how the grantee will speed up its overall expenditure rate, how it will spend down the backlog of funds, and how it will fix the problems that caused the untimely expenditure performance.
The second year an entitlement grantee is untimely, HUD has the authority to reduce the next year's grant by the dollar amount by which the grantee missed the 1.50 ratio. Before making any decision, HUD Headquarters will invite the grantee to participate in an informal consultation, pursuant to 24 CFR 570.911 in the CDBG regulations.