Multifamily Housing Program Financial Management Toolkit

12b.  Summary of Closeout Procedures

The Multifamily Housing grant closeout process is a series of procedures to verify that: (1) the grant funds were properly spent and (2) the grantee is in full compliance with the terms and conditions of the governing agreement and regulations. If the terms and conditions have been satisfied, the grant may be closed out. If it is determined that the terms and conditions of the awards have not been satisfied, the Field Office must coordinate with Headquarters to determine next steps.

When Can Owners Close Out ALCP Grants?

ALCP grants may be closed out when all of the following criteria have been met:

  • The grantee has not applied for an extension of the subject award
  • Programmatic requirements have been satisfied and required performance reports submitted
  • Financial reports and other related information have been submitted and any payments to the recipient for allowable reimbursable costs under the award have been made
  • Unexpended funds, if any, have been recaptured or de-obligated

What Criteria Does HUD Apply When Considering Terminating an Award?

HUD may terminate an award if a grant has been inactive for more than 180 days and the grantee fails to provide a justification and has not complied with HUD’s request to satisfy the terms of the agreement.

If a property type has changed and the property no longer meets the eligible property requirements, as determined by governing statute, the grant must be terminated.

Upon the determination that the grant is to be terminated or closed out, the closeout process must commence.