Date Published: February 2013
Most state funds flowed through subgrantees and subrecipients such as cities and towns. Non-entitlement subrecipients will operate as before, following the regulations at 24 CFR 570.489(e). Non-entitlement subrecipients will continue to report program income to the state. States that receive revenues from direct administration of NSP activities will report on, and be subject to the same limitations, as subrecipients. In NSP, some states made grants to entitlement cities and counties. The same limits will apply to these subrecipients and they will continue to report program income to the states until closeout. After closeout of the state grant, these subrecipients will report any program revenues as part the CDBG program, although such funds must be used for NSP-eligible activities and national objectives. The $25,000 minimum amount to be considered program income has been increased to $35,000 per year for state subrecipients. If program income generated from all sources does not exceed $25,000 in a program year for entitlement grantees and $35,000 for state grantees, the grantee shall use the funds for administration or include the funds in another CDBG program activity.