Do The Feds Want the Mayor to Step Into the Woodshed For A Spanking ?

.HUD

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, DC 20410-7000
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT


Dear Mayor Green:
SUBJECT: Noncompliance with Timely Expenditure Requirements
Community Development Block Grant (CDBG) Program
I would like to thank Gregory Kinsela, City Manager, and Donna Steinebach, Assistant to the City Manager, for taking the time to participate in an informal consultation held on September 20,2013, with members of my team to discuss the reasons for Port Orange’s failure to comply with the timely expenditure requirement at 24 CFR 570.902, Review to determine if CDBG-funded activities are being carried out in a timely manner. Pursuant to this regulation, an entitlement grantee is considered to be carrying out its CDBG program in a timely manner, if, 60 days prior to the end of its program year, the grantee has a balance in its line of credit no greater than one and one-half (1.5) times its annual grant.
In accordance with Community Planning and Development’s timeliness policy, a grantee’s future grant may be reduced when the grantee continues to be untimely. The 60-day ratio for Port Orange, as measured on August 2, 2012, was 2.01. The last 60-day test measured for your community on August 2,2013, indicated a balance remaining in the city’s line-of-credit amounting to 2.22 times its Fiscal Year (FY) 2012 grant. Based on this new ratio, the amount of the potential reduction is $189,318.
………….

See full text below


Leave a Reply

Your email address will not be published.