§ 93.407 Recordkeeping. ( a ) *General.* Each grantee must establish and maintain sufficient records to enable HUD to determine whether the grantee has met the requirements of this part. At a minimum, the following records are needed: ( 1 ) *Program records.* ( i ) The forms of HTF assistance used in the program.
( ii ) The subsidy layering guidelines adopted in accordance with § 93.300.
( iii ) If HTF funds are used for housing for first-time homebuyers, the procedures used for establishing 95 percent of the median purchase price for the area in accordance with § 93.305, as set forth in the consolidated plan.
( iv ) If HTF funds are used for acquisition of housing for homeownership, the resale guidelines established in accordance with § 93.304, as set forth in the consolidated plan.
( v ) Records documenting compliance with the 24-month commitment deadline of § 93.400(d)(l).
( vi ) Records documenting compliance with the 10 percent limitation on administrative and planning costs in accordance with § 93.202.
( 2 ) *Project records.* ( i ) A full description of each project assisted with HTF funds, including the location (address of each unit), form of HTF assistance, and the units assisted with HTF funds.
( ii ) The source and application of funds for each project, including supporting documentation, in accordance with 2 CFR 200.333 through 200.337, and records to document the eligibility and allowability of the project costs, including the documentation of the actual HTF-eligible development costs of each HTF-assisted unit (through allocation of costs, if permissible under § 93.200(c)) where HTF funds are used to assist less than all of the units in a multi-unit project.
( iii ) Records demonstrating that each rental housing or homeownership project meets the maximum per-unit subsidy amount established pursuant to § 93.300(a), and the subsidy layering and underwriting evaluation in accordance with § 93.300.
( iv ) Records (*e.g.,* inspection reports) demonstrating that each project meets the property standards of § 93.301 of this part at project completion. In addition, during the period of affordability, records for rental projects demonstrating compliance with the property standards, and financial reviews and actions pursuant to § 93.404(a).
( v ) Records demonstrating that each family is income-eligible.
( vi ) Records demonstrating that each rental housing project meets the affordability and income targeting requirements of § 93.302 for the required period. Records must be kept for each family assisted.
( vii ) Records demonstrating that each lease for an assisted rental housing unit complies with the tenant and participant protections of § 93.303. Records must be kept for each family assisted.
( viii ) Records demonstrating that the purchase price for each housing unit for a first-time homebuyer does not exceed 95 percent of the median purchase price for the area, in accordance with § 93.305.
( ix ) Records demonstrating that each housing unit for a first-time homebuyer meets the affordability requirements of § 93.304 for the required period.
( x ) Records demonstrating that a site and neighborhood standards review was conducted for each project that included new construction of rental housing assisted under this part, to determine that the site meets the requirements of § 93.150.
( xi ) Records (written agreements) demonstrating compliance with the written agreements requirements in § 93.404.
( 3 ) *Financial records.* ( i ) Records identifying the source and application of funds for each fiscal year, including the annual grant and any reallocation (identified by federal fiscal year).
( ii ) Records concerning the HTF Treasury account and local account required to be established and maintained by § 93.400, including deposits, disbursements, balances, supporting documentation, and any other information required by the program disbursement and information system established by HUD.
( iii ) Records identifying the source and application of program income and repayments.
( iv ) Records demonstrating adequate budget control, in accordance with 2 CFR part 200, including evidence of periodic account reconciliations.
( 4 ) *Program administration records.* ( i ) Written policies, procedures, and systems, including a system for assessing risk of activities and projects, and a system for monitoring entities consistent with this section, to ensure that the requirements of this part are met.
( ii ) Records demonstrating compliance with the applicable uniform administrative requirements required by § 93.405.
( iii ) Records documenting required inspections, monitoring reviews and audits, and the resolution of any findings or concerns.
( 5 ) *Records concerning other Federal requirements.* ( i ) Equal opportunity and fair housing records, as required under 24 CFR part 121.
( ii ) Data on the extent to which each racial and ethnic group and single-headed households (by gender of household head) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HTF funds.
( iii ) Records demonstrating compliance with the affirmative marketing procedures and requirements of § 93.350.
( iv ) Records demonstrating compliance with the lead-based paint requirements of 24 CFR part 35, subparts A, B, J, K, M, and R.
( v ) Records demonstrating compliance with requirements of § 93.352 regarding displacement, relocation, and real property acquisition.
( vi ) Records supporting exceptions to the conflict-of-interest prohibition pursuant to § 93.353.
( vii ) Debarment and suspension certifications required by 24 CFR5.105(c) and 2 CFR part 2424.
( viii ) Records demonstrating compliance with § 93.354.
( ix ) Records demonstrating compliance with 2 CFR 200.321 regarding the grantee's activities related to minority business enterprise (MBE) and women's business enterprise (WBE).
( x ) Documentation on emergency transfers requested under 24 CFR 5.2005(e) and § 93.356 pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of such requests.
( xi ) Documentation of actions undertaken to meet the requirements of 24 CFR part 75, which implements section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u).
( b ) *Period of record retention.* All records pertaining to each fiscal year of HTF funds must be retained in a secure location for the most recent 5-year period, except as provided below. ( 1 ) For rental housing projects, records may be retained for 5 years after the project completion date, except that records of individual tenant income verifications, project rents, and project inspections must be retained for the most recent 5-year period, until 5 years after the affordability period terminates.
( 2 ) For homeownership housing projects, records may be retained for 5 years after the project completion date, except for documents imposing resale or recapture restrictions that must be retained for 5 years after the affordability period terminates.
( 3 ) Written agreements must be retained for 5 years after the agreement terminates.
( 4 ) Records covering displacements and acquisitions must be retained for 5 years after the date by which all persons displaced from the property and all persons whose property is acquired for the project have received the final payment to which they are entitled, in accordance with § 93.352.
( 5 ) If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, records must be retained until completion of the action and resolution of all issues that arise from it, or until the end of the required period, whichever is later.
( c ) *Access to records.* ( 1 ) The grantee must provide citizens, public agencies, and other interested parties with reasonable access to records, consistent with applicable State and local laws regarding privacy and obligations of confidentiality.
( 2 ) HUD and the Comptroller General of the United States, and any of their representatives, have the right of access to any pertinent books, documents, papers, or other records of the grantee, subgrantees, and recipients, to make audits, examinations, excerpts, and transcripts.
[80 FR 5220, Jan. 30, 2015, as amended at 81 FR 80805, Nov. 16, 2016; 85 FR 61567, Sept. 29, 2020]