576.67—Sanctions.

(a) HUD sanctions. If HUD determines that a grantee is not complying with the requirements of this part or of other applicable Federal law, HUD may (in addition to any remedies that may otherwise be available) take any of the following sanctions, as appropriate:
(1) Issue a warning letter that further failure to comply with such requirements will result in a more serious sanction;
(2) Condition a future grant;
(3) Direct the grantee to stop the incurring of costs with grant amounts;
(4) Require that some or all of the grant amounts be remitted to HUD;
(5) Reduce the level of funds the grantee would otherwise be entitled to receive; or
(6) Elect not to provide future grant funds to the grantee until appropriate actions are taken to ensure compliance.
(b) State sanctions. If a State determines that a State recipient is not complying with the requirements of this part or other applicable Federal laws, the State must take appropriate actions, which may include the actions described in paragraph (a) of this section. Any grant amounts that become available to a State as a result of a sanction under this section must, at the option of the State, be made available (as soon as practicable) to other nonprofit organizations or units of general local government located in the State for use within the time periods specified in § 576.35(a)(2), or to HUD for reallocation under § 576.45(d).
(c) Reallocations. Any grant amounts that become available to HUD as a result of the imposition of a sanction under this section will be reallocated under § 576.45(d).

Code of Federal Regulations

[54 FR 46799, Nov. 7, 1989. Redesignated and amended at 61 FR 51553, Oct. 2, 1996]