If the Applicant does not comply with applicable laws and rules relating to the project and to the financial assistance documents, the executive administrator may take any of the following actions:

1. (1) impose additional conditions to remedy the noncompliance;
2. (2) withhold releases from escrows or disbursements until the Applicant comes into compliance;
3. (3) refrain from closing on existing commitments;
4. (4) disallow all or part of the cost of a project expenditure that is not in compliance;
5. (5) allow a substitution of eligible cost activities for disallowed costs or require repayment of disallowed costs, at the discretion of the executive administrator; and
6. (6) take other remedial actions that may be legally available.

Source Note:The provisions of this §371.91 adopted to be effective June 10, 2020, 45 TexReg 3863.