A recipient must sign a written agreement with a subrecipient BEFORE disbursing any CDBG funds, covering seven required subjects and lasting as long as the subrecipient controls the funds

cdbg.monitoring_review.written_subrecipient_agreement_before_any_disbursement · v1.0.0

Before disbursing any CDBG funds to a subrecipient the recipient must sign a WRITTEN AGREEMENT, and that agreement remains in effect during any period the subrecipient has control over CDBG funds INCLUDING PROGRAM INCOME. At a minimum it must contain provisions on seven subjects. A statement of work - a description of the work, a completion schedule and a budget, in enough detail to give the recipient a sound basis for monitoring performance. Records and reports the subrecipient must maintain and submit so the recipient can meet its own recordkeeping and reporting duties. Program income, incorporating the 570.504(c) requirements and specifying that the grantee may require remittance of program income balances at the end of the program year. Uniform requirements as described in 570.502. Other program requirements - compliance with every Federal law and regulation in subpart K, EXCEPT that the subrecipient does not assume the recipient's environmental responsibilities at 570.604 and does not assume the recipient's responsibility for initiating the 24 CFR part 52 intergovernmental review. Suspension and termination remedies in accordance with 2 CFR part 200 subpart D. And reversion of assets. A recipient that funds a nonprofit housing developer without this agreement in place before the first draw has a defect that cannot be cured retroactively for the disbursements already made.

Confidence

high

Effective from

2015-12-07

Consequence model

agency finding with cure

Last reviewed

2026-08-22