1. (a) Funding allocations to state recipients, Developers and CHDOs shall be canceled or reduced and standard agreements shall be terminated or amended by the department under any one of the following conditions:

   1. (1) State recipients, Developers or CHDOs are not in compliance with the requirements of HOME or the standard agreement;
   2. (2) implementation of the local HOME program is not in compliance with the time frames and goals stated in the state recipient's, Developer's or CHDO's application and standard agreement;
   3. (3) special conditions for funding as stated in the standard agreement have not been fulfilled; or
   4. (4) the department has been notified by HUD of a reduction in or elimination of the department's allocation of HOME funds.
2. (b) At least fourteen days prior to the effective date of the termination or amendment of a standard agreement, the department shall provide written notice to state recipients, Developers and CHDOs of its intent to cancel or amend the funding allocation.

3. (c) Upon notification by the department that the funding allocation is canceled or reduced and the standard agreement is terminated or amended, the state recipient, Developer or CHDO shall:

   1. (1) complete all work affected by the cancellation or reduction that is in progress; and
   2. (2) terminate any other activities that were to be paid for with HOME funds.
4. (d) After all required repayments have been returned to C/MI, any funds remaining in the state recipient's local account shall be made available in accordance with section 8210(g) of this subchapter.

Note: Authority cited: Sections 50406 and 50896.3(b), Health and Safety Code. Reference: 24 CFR Sections 92.504(c)(1)(x) and 92.504(c)(3)(vii); and Sections 50896 and 50896.1, Health and Safety Code.

History

1. Certificate of Compliance as to 3-2-93 order including renumbering and amendment of former section 8219 to section 8220 with amendment of Note transmitted to OAL 5-26-93 and filed 7-7-93 (Register 93, No. 28).

2. Renumbering of former section 8218 to new section 8216, and renumbering of former section 8220 to new section 8218, including amendment of section and Note filed 3-14-97; operative 3-14-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 11).

3. Amendment of subsections (a)-(a)(2), (b) and (c) filed 10-31-2016; operative 1-1-2017 (Register 2016, No. 45).