1. (a) Objective. HUD will, at least annually, review DHHL's performance to determine whether the DHHL has:

   1. (1) Carried out eligible activities in a timely manner;
   2. (2) Carried out and made certifications in accordance with the requirements and the primary objectives of the Act and this part and with other applicable laws;
   3. (3) A continuing capacity to carry out the eligible activities in a timely manner;
   4. (4) Complied with its housing plan; and
   5. (5) Submitted accurate performance reports.

2. (b) Basis for review. In reviewing DHHL's performance, HUD will consider all available evidence, which may include, but not be limited to, the following:

   1. (1) The DHHL's housing plan and any amendments thereto;
   2. (2) Reports prepared by the DHHL;
   3. (3) Records maintained by the DHHL, including their retention under 2 CFR 200.333, noting that the NHHBG Annual Performance Report is the program's final expenditure report;
   4. (4) Results of HUD's monitoring of the DHHL's performance, including field evaluation of the quality of the work performed;
   5. (5) Audit reports;
   6. (6) Records of drawdowns on the line of credit;
   7. (7) Records of comments and complaints by citizens and organizations; and
   8. (8) Litigation.
3. (c) Failure to maintain records. The DHHL's failure to maintain records may result in a finding that the DHHL failed to meet the applicable requirement to which the record pertains.

[67 FR 40776, June 13, 2002, as amended at 80 FR 75945, Dec. 7, 2015; 89 FR 9764, Feb. 12, 2024]