(a) HUD will reallocate under this section:
- (1) Any HTF funds available for reallocation because HUD reduced or recaptured funds from an HTF grantee under § 93.400(d) for failure to commit or expend the funds within the time specified, or under § 93.453 for failure to comply substantially with any provision of this part;
- (2) Any HTF funds reduced for failure by the grantee to obtain funds required to be reimbursed or returned under § 93.450; and
- (3) Any HTF funds remitted to HUD under § 93.403(b)(4) when a grantee ceases to be an HTF grantee for any reason.
- (b) Any reallocation of funds must be made only among all participating States, except those States from which the funds were recaptured or reduced.
- (c) Any amounts that become available for reallocation shall be added to amounts for formula allocation in the succeeding fiscal year.