CDBG-assisted real property over $25,000 stays subject to national-objective use for five years after closeout

cdbg.affordability_period.change_of_use_of_real_property · v1.0.0

Where real property within the recipient's control was acquired or improved in whole or in part with more than $25,000 of CDBG funds, the recipient may not change the use or planned use of the property, including the beneficiaries of that use, from the use for which the acquisition or improvement was made, unless it gives affected citizens reasonable notice and an opportunity to comment and either the new use qualifies under a national objective in 24 CFR 570.208 and is not a building for the general conduct of government, or the CDBG program is reimbursed the current fair market value of the property less the portion of the value attributable to non-CDBG expenditures. These standards apply from the date CDBG funds are first spent on the property until five years after closeout of the recipient's participation in the entitlement CDBG program, or for other recipients five years after closeout of the grant from which the assistance was provided.

Confidence

high

Effective from

1988-10-21

Consequence model

agency finding with cure

Last reviewed

2026-08-31