CDBG Entitlement FAQ
Q

Why does HUD include RLF balances in computing the CDBG timeliness ratio? Those funds are set aside for a specific type of activity, cannot be drawn for other activities and we cannot control the demand for these funds by potential beneficiaries.

Date Published: March 2019

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A

HUD includes Revolving Loan Fund (RLF) balances because they fall under the definition of program income and therefore are subject to the same terms and conditions as CDBG grant funds, including the timely expenditure requirements. Despite RLFs being subject to different rules and circumstances, there are actions that a grantee can take to ensure those funds truly revolve and do not lead to a timely expenditure problem.


Tags: CDBG Entitlement Program Timeliness

FAQ ID:

3621