24 C.F.R. § 574.190
§ 574.190 Reallocation of grant amounts. (24 CFR Part 574)
Operative Text
If an eligible State or qualifying city does not submit a consolidated plan in a timely fashion, in accordance with 24 CFR part 91, that provides for use of its allocation of funding under this part, the funds allocated to that jurisdiction will be added to the funds available for formula allocations to other jurisdictions in the current fiscal year. Any formula funds that become available as a result of deobligations or the imposition of sanctions as provided for in § 574.540 will be added to the funds available for formula allocations in the next fiscal year.
Under § 574.190, federal housing assistance funds originally allocated to a state or city can be redistributed if that jurisdiction fails to submit a required consolidated plan on time under 24 CFR part 91. Those forfeited funds are folded back into the pool available for other eligible jurisdictions within the same fiscal year. Separately, any funds freed up through deobligations or sanctions under § 574.540 are added to the redistribution pool for the following fiscal year rather than the current one.
Plain English — not legal advice.
Section § 574.190 primarily governs the flow of federal grant dollars between governmental jurisdictions rather than directly regulating property owners. However, landlords who participate in programs funded under this part should be aware that funding availability in their area can shift if a local jurisdiction loses its allocation due to a missed consolidated plan deadline. Operators who rely on these funds generally stay informed about their local housing authority's compliance status and maintain awareness of any reallocation announcements that could affect program continuity.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 574.190, tenants in jurisdictions that lose funding due to a late or missing consolidated plan may see changes in the availability of locally administered housing assistance programs. If a tenant believes their community's access to these federal resources has been affected, reaching out to the local housing authority or a tenant-rights organization can help clarify what services remain available. Tenants can also monitor HUD announcements related to formula allocations to understand how reallocation under § 574.190 may affect programs in their area.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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