24 C.F.R. § 574.540
§ 574.540 Deobligation of funds. (24 CFR Part 574)
Operative Text
HUD may deobligate all or a portion of the amounts approved for eligible activities if such amounts are not expended in a timely manner, or the proposed activity for which funding was approved is not provided in accordance with the approved application or action plan and the requirements of this regulation. HUD may deobligate any amount of grant funds that have not been expended within a three-year period from the date of the signing of the grant agreement. The grant agreement may set forth other circumstances under which funds may be deobligated or sanctions imposed.
Under 24 CFR Part 574 § 574.540, the U.S. Department of Housing and Urban Development (HUD) retains the authority to cancel, in whole or in part, previously approved grant funding under the HOPWA program. This can occur when funds are not spent within a reasonable timeframe, when the funded activities deviate from the approved application or action plan, or when grant funds remain unspent after three years from the date the grant agreement was signed. The grant agreement itself may also specify additional conditions that could trigger deobligation or other sanctions.
Plain English — not legal advice.
Grantees and program operators administering HOPWA funds under 24 CFR Part 574 § 574.540 generally maintain detailed expenditure tracking systems to ensure funds are drawn down and spent in alignment with the approved application and action plan. Compliant operators routinely monitor the three-year expenditure deadline established from the grant agreement signing date and document all program activities to demonstrate conformance with HUD requirements. Reviewing the specific grant agreement for any additional deobligation triggers or sanction provisions is a standard part of responsible grant administration.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants and program participants receiving housing assistance funded through HOPWA grants should be aware that 24 CFR Part 574 § 574.540 governs how HUD can reclaim unspent or misused grant funds from grantees. If a program loses funding due to deobligation, it may affect the availability of housing services, and participants can reach out to their local HUD field office or a tenant-rights organization to understand what protections or alternative resources may exist. Keeping records of any assistance received and staying in contact with the administering agency can help participants stay informed about the status of their program.
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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