NSP FAQ
Q

Are items that are stolen or damaged during rehabilitation or disposition of NSP property able to be replaced or repaired with NSP funds?

Date Published: October 2012

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A

Insurance that a grantee, subrecipient, developer, or contractor holds in case of damage or loss should cover the cost to repair or replace any items. However, according to OMB Circulars A-122 and A-87, "Costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sounds business practices are allowable." If the theft and/or damage are the result of negligence on the part of the entity, there should not be a change order, and the entity would be responsible for replacing the items without using NSP funds.


Tags: NSP Program Requirements - Eligible Costs

FAQ ID:

652