24 C.F.R. § 570.911

Reduction, withdrawal, or adjustment of a grant or other appropriate action

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(a) Opportunity for an informal consultation. Prior to a reduction, withdrawal, or adjustment of a grant or other appropriate action, taken pursuant to paragraph (b), (c), or (d) of this section, the recipient shall be notified of such proposed action and given an opportunity within a prescribed time period for an informal consultation.

(b) Entitlement grants, Non-entitlement CDBG grants in Hawaii, and Insular Areas grants. Consistent with the procedures described in § 570.900(b), the Secretary may make a reduction in the entitlement, non-entitlement CDBG grants in Hawaii, or Insular Areas grant amount either for the succeeding program year or, if the grant had been conditioned, up to the amount that had been conditioned. The amount of the reduction shall be based on the severity of the deficiency and may be for the entire grant amount.

(c) HUD-administered small cities grants. Consistent with the procedures described in § 570.900(b), the Secretary may adjust, reduce or withdraw the grant or take other actions as appropriate, except that funds already expended on eligible approved activities shall not be recaptured or deducted from future grants.

(d) Urban Development Action Grants. Consistent with the procedures described in § 570.900(b), the Secretary may adjust, reduce or withdraw the grant or take other actions as appropriate, except that funds already expended on eligible approved activities shall not be recaptured or deducted from future grants made to the recipient.

[61 FR 11481, Mar. 20, 1996, as amended at 72 FR 12537, Mar. 15, 2007; 72 FR 46371, Aug. 17, 2007]

Notes of Decisions

Cited in 2 cases, 1978–1985 · leading case: United States v. Yonkers Bd. of Educ., 611 F. Supp. 730 (S.D.N.Y. 1985).

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United States v. Yonkers Bd. of Educ., 611 F. Supp. 730 (S.D.N.Y. 1985). · cites it 2× “(b) Failure to submit or cause to be submitted such request(s), or failure to follow such other procedure as HUD may require, within sixty (60) days following publication of the invitation will cause HUD to initiate the procedure to reduce funding for the City’s 1984 CDBG…”

Broaden v. Harris, 451 F. Supp. 1215 (W.D. Pa. 1978). “Nonetheless, responsibility for achieving housing assistance goals remains with the City: failure to implement the Section 8 Existing Program can result in the exercise of sanctions proposed at 24 CFR 570.911 (enclosed). We recommend that you develop a record of Pittsburgh’s…”

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