Will HUD block payment of expenses incurred in the NSP Program after the expenditure deadline?

Date Published: February 2013

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It depends on whether the grantee meets the spending requirement. However, HUD will allow draws for legitimate expenses incurred on or before the expenditure deadline.            

HUD will process draws for any expense legitimately incurred by the deadline, even if the draw occurs several weeks later. For example, staff and administrative costs may be incurred through the deadline date, although they will not be paid immediately. Therefore, they are expenditures which may be counted even though they may not be drawn down and disbursed for several weeks.            

Grantees that achieve 100% expenditure by the deadline will always be able to make such payments. They will also be able to spend program income and any remaining funds in the line of credit.            

Grantees that do not meet the expenditure requirement will have 30 days to post correct expenditure amounts in the QPR. If at the end of that period, the grantee still cannot document 100% expenditures, HUD will evaluate the reasons for the failure and take appropriate corrective action. Such action could include grant reduction or blocks on the grantee's line of credit. Draws for valid expenses incurred by the deadline will continue to be approved.

Tags: NSP Program Requirements - Eligible Activities/Uses