107072 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 

FIGURE 1 TO PARAGRAPH (g)—SERVICE INFORMATION REFERENCES—Continued 

Airplane model Bombardier service information 

Model CL–600–2B16 ................................................................................ Bombardier Service Bulletin 605–35–005, Revision 01, dated June 28, 

2023. 

Model CL–600–2B16 ................................................................................ Bombardier Service Bulletin 650–35–001, Revision 01, dated June 28, 

2023. 

(h) Retained Bracket Modification, With 

Specified Compliance Time 

This paragraph restates the requirements of 

paragraph (h) of AD 2020–19–13, with a 

specified compliance time. If, during the 

inspection specified in paragraph (g) of this 

AD, any portable oxygen bottle is found to be 

manufactured by Scott (Avox/Zodiac) and is 

a 5500 or 5600 series 11 cubic foot bottle, 

with upper bracket P/N 36758–02, 36758–12, 

or H3–2091–1 installed at the neck of the 

bottle: Within 60 months after November 3, 

2020 (the effective date of AD 2020–19–13), 

modify the portable oxygen bottle brackets in 

accordance with paragraph 2.C. of the 

Accomplishment Instructions of the 

applicable Bombardier service information 

specified in figure 1 to paragraph (g) of this 

AD. 

(i) Retained Check for Airplanes Not Listed 

in the Service Information, With Revised 

Figure Reference and Revised Service 

Information 

This paragraph restates the requirements of 

paragraph (i) of AD 2020–19–13, with a 

revised figure reference and revised service 

information. For airplanes with a serial 

number that is not listed in section 1.A. of 

the applicable Bombardier service 

information specified in figure 1 to paragraph 

(g) of this AD, within 60 months after 

November 3, 2020 (the effective date of AD 

2020–19–13), check each portable oxygen 

bottle installation to determine the 

manufacturer and part number and 

accomplish corrective actions in accordance 

with the procedures specified in paragraph 

(l)(1) of this AD. 

(j) New Check Requirement for Added 

Airplanes 

For airplane S/Ns 6158, 6161, 6176, and 

6181: Within 60 months after the effective 

date of this AD, check each portable oxygen 

bottle installation to determine the 

manufacturer and part number and 

accomplish corrective actions in accordance 

with the procedures specified in paragraph 

(l)(1) of this AD. 

(k) Credit for Previous Actions 

This paragraph provides credit for actions 

required by paragraphs (g) and (h) of this AD, 

if those actions were performed before the 

effective date of this AD using the applicable 

material specified in paragraphs (k)(1) 

through (5) of this AD. This material is not 

incorporated by reference in this AD. 

(1) Bombardier Service Bulletin 600–0772, 

dated June 29, 2018; 

(2) Bombardier Service Bulletin 601–0646, 

dated June 29, 2018; 

(3) Bombardier Service Bulletin 604–35– 

006, dated June 29, 2018; 

(4) Bombardier Service Bulletin 605–35– 

005, dated June 29, 2018; and 

(5) Bombardier Service Bulletin 650–35– 

001, dated June 29, 2018. 

(l) Additional AD Provisions 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Validation Branch, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or 

responsible Flight Standards Office, as 

appropriate. If sending information directly 

to the manager of the International Validation 

Branch, mail it to the address identified in 

paragraph (m) of this AD. Information may be 

emailed to: AMOC@faa.gov. Before using any 

approved AMOC, notify your appropriate 

principal inspector, or lacking a principal 

inspector, the manager of the responsible 

Flight Standards Office. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain instructions 

from a manufacturer, the instructions must 

be accomplished using a method approved 

by the Manager, International Validation 

Branch, FAA; or Transport Canada; or 

Bombardier’s Transport Canada Design 

Approval Organization (DAO). If approved by 

the DAO, the approval must include the 

DAO-authorized signature. 

(m) Additional Information 

For more information about this AD, 

contact Brenda Buitrago, Aviation Safety 

Engineer, FAA, 1600 Stewart Avenue, Suite 

410, Westbury, NY 11590; telephone 516– 

228–7300; email 9-avs-nyaco-cos@faa.gov. 

(n) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the material listed in this paragraph 

under 5 U.S.C. 552(a) and 1 CFR part 51. 

(2) You must use this material as 

applicable to do the actions required by this 

AD, unless this AD specifies otherwise. 

(3) The following material was approved 

for IBR on [DATE 35 DAYS AFTER 

PUBLICATION OF THE FINAL RULE]. 

(i) Bombardier Service Bulletin 600–0772, 

Revision 01, dated June 28, 2023. 

(ii) Bombardier Service Bulletin 601–0646, 

Revision 01, dated June 28, 2023. 

(iii) Bombardier Service Bulletin 604–35– 

006, Revision 01, dated June 28, 2023. 

(iv) Bombardier Service Bulletin 605–35– 

005, Revision 01, dated June 28, 2023. 

(v) Bombardier Service Bulletin 650–35– 

001, Revision 01, dated June 28, 2023. 

(4) For Bombardier material identified in 

this AD, contact Bombardier Business 

Aircraft Customer Response Center, 400 CoˆteVertu Road West, Dorval, Que ́bec H4S 1Y9, 

Canada; telephone 514–855–2999; email 

ac.yul@aero.bombardier.com; website 

bombardier.com. 

(5) You may view this material at the FAA, 

Airworthiness Products Section, Operational 

Safety Branch, 2200 South 216th St., Des 

Moines, WA. For information on the 

availability of this material at the FAA, call 

206–231–3195. 

(6) You may view this material at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

visit www.archives.gov/federal-register/cfr/ 

ibr-locationsoremailfr.inspection@nara.gov. 

Issued on December 23, 2024. 

Steven W. Thompson, 

Acting Deputy Director, Compliance & 

Airworthiness Division, Aircraft Certification 

Service. 

[FR Doc. 2024–31379 Filed 12–30–24; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 4, 5, 75, 92, 93, 200, 570, 

574, 576, 578, 700, 880, 881, 883, 884, 

886, 905, 964, 965, 970, 990, 1000, 1003, 

1005, 1006, and 1007 

[Docket No. FR–6266–P–01] 

RIN 2501–AE01 

HUD’s Implementation of OMB’s 

Guidance for Federal Financial 

Assistance 

AGENCY: Office of General Counsel, 

HUD. 

ACTION: Proposed rule. 

SUMMARY: The U.S. Department of 

Housing and Urban Development (HUD) 

is proposing to amend its regulations on 

Federal financial assistance to conform 

with 2020 and 2024 changes to Office of 

Management and Budget (OMB) 

guidance governing Federal financial 

assistance (previously called grants and 

agreements). The proposed amendments 

would implement the guidance and 

update cross-references to OMB 

provisions that have been renumbered 

or reorganized. HUD is also proposing 

changes to improve some grant 

management and administrative 

program regulations based on HUD’s 

experience implementing OMB’s 


khammond on DSK9W7S144PROD with PROPOSALS
Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 107073 

1Through OMB’s 2024 round of revisions to its 

regulations and final guidance, OMB has indicated 

its preference for the use of the terms ‘‘Federal 

financial assistance,’’ ‘‘recipient,’’ and 

‘‘subrecipient’’ over other terms. 89 FR 30046. This 

preamble sometimes uses the term ‘‘Federal 

financial assistance,’’ which is now used 

throughout OMB’s regulations and guidance, in 

place of ‘‘grant’’ or ‘‘Federal award,’’ but this 

preamble also uses ‘‘grant’’ or ‘‘Federal award’’ 

where appropriate for a given program, when 

discussing prior rounds of OMB revisions (which 

used ‘‘grant’’ or ‘‘Federal award’’), when discussing 

updated OMB provisions that use ‘‘grant’’ or 

‘‘Federal award,’’ or when used as part of a quote. 

Also in this preamble, HUD uses ‘‘recipient’’ and 

‘‘subrecipient’’ interchangeably with ‘‘grantee’’ and 

‘‘subgrantee,’’ respectively, as those terms are 

defined in OMB’s regulations and guidance. See 2 

CFR 200.1. 

2 78 FR 78590, 78590 (Dec. 26, 2013). 

3 78 FR 78590, 78950; see also 85 FR 3766 (Jan. 

22, 2020) (providing additional explanation of 

OMB’s 2013 final guidance). 

4 74 FR 62201 (Nov. 25, 2009). 

5Admin. of Barack Obama, 2011, Presidential 

Memorandum on Administrative Flexibility, Lower 

Costs, and Better Results for State, Local, and Tribal 

Governments (2011) [hereinafter Presidential Memo 

2011], https://www.gpo.gov/fdsys/pkg/DCPD201100123/pdf/DCPD-201100123.pdf. 

6 74 FR 62201, 62201. 

7Presidential Memo 2011, at 2. 

8 78 FR 78590, 78591. 

9 79 FR 75871 (Dec. 19, 2014). 

regulations and guidance in existing 

entitlement, discretionary, and other 

programs involving grant management 

and administration. Finally, HUD is 

proposing changes to its Title VI, 

Section 108, Section 184, and Section 

184A loan guarantee program 

regulations to address OMB’s changes 

for loan guarantee programs regarding 

System for Award Management 

(SAM.gov) registration and to clarify 

that the Section 184 and Section 184A 

programs are subject to audit 

requirements in OMB’s regulations and 

final guidance. All these changes will 

improve HUD’s processes for awarding 

Federal financial assistance and align 

HUD’s regulations with 

governmentwide efforts to adopt 

consistent and standardized terms and 

data elements, implement data- and 

risk-based frameworks, reduce Federal 

agency and recipient burdens, promote 

consistent interpretations of OMB’s 

regulations and guidance, and improve 

and maximize agencies’ ability to assess 

performance of recipients. 

DATES: Comment Due Date: March 3, 

2025. 

ADDRESSES: There are two methods for 

submitting public comments. All 

submissions must refer to the above 

docket number and title. 

1. Electronic Submission of 

Comments. Comments may be 

submitted electronically through the 

Federal eRulemaking Portal at 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt by HUD, and enables HUD to 

make comments immediately available 

to the public. Comments submitted 

electronically through 

www.regulations.gov can be viewed by 

other commenters and interested 

members of the public. Commenters 

should follow the instructions provided 

on that website to submit comments 

electronically. 

2. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street SW, Room 10276, 

Washington, DC 20410–0500. 

Note: To receive consideration as a 

public comment, comments must be 

submitted through one of the two 

methods specified above. 

Public Inspection of Public 

Comments. HUD will make all properly 

submitted comments and 

communications available for public 

inspection and copying during regular 

business hours at the above address. 

Due to security measures at the HUD 

Headquarters building, you must 

schedule an appointment in advance to 

review the public comments by calling 

the Regulations Division at 202–708– 

3055 (this is not a toll-free number). 

HUD welcomes and is prepared to 

receive calls from individuals who are 

deaf or hard of hearing, as well as 

individuals with speech or 

communication disabilities. To learn 

more about how to make an accessible 

telephone call, please visit https://

www.fcc.gov/consumers/guides/ 

telecommunications-relay-service-trs. 

Copies of all comments submitted are 

available for inspection and 

downloading at www.regulations.gov. 

In accordance with 5 U.S.C. 553(b)(4), 

a summary of this proposed rule may be 

found at www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Aaron Santa Anna, Office of General 

Counsel, Office of Legislation and 

Regulations, Department of Housing and 

Urban Development, 451 7th Street SW, 

Washington, DC 20410–8000; telephone 

number 202–708–1793 (this is not a tollfree number). HUD welcomes and is 

prepared to receive calls from 

individuals who are deaf or hard of 

hearing, as well as individuals with 

speech or communication disabilities. 

To learn more about how to make an 

accessible telephone call, please visit 

https://www.fcc.gov/consumers/guides/ 

telecommunications-relay-service-trs. 

SUPPLEMENTARY INFORMATION: 

I. Background 1

OMB’s 2013 Uniform Guidance and 

HUD’s Implementation 

On December 26, 2013, the Office of 

Management and Budget (OMB) issued 

the Uniform Administrative 

Requirements, Cost Principles, and 

Audit Requirements for Federal Awards 

(Uniform Guidance), parts of which are 

codified in 2 CFR part 200. This 

Uniform Guidance ‘‘set standard 

requirements for financial management 

of Federal awards across the entire 

[F]ederal government.’’ 2 OMB 

promulgated the Uniform Guidance to 

(1) streamline guidance in making 

Federal awards to ease administrative 

burden and (2) strengthen financial 

oversight over Federal funds to reduce 

risks of fraud, waste, and abuse.3

The requirements at 2 CFR part 200 

derive from previously issued policies: 

Executive Order (E.O.) 13520 titled 

Reducing Improper Payments and 

Eliminating Waste in Federal Programs 4

and a related Presidential Memorandum 

on Administrative Flexibility, Lower 

Costs, and Better Results for State, 

Local, and Tribal Governments.5 The 

E.O. required agencies to improve 

accountability by ‘‘intensifying efforts to 

eliminate payment error, waste, fraud, 

and abuse’’ in Federal programs.6 The 

Presidential Memorandum directed 

OMB to ‘‘review and where appropriate 

revise guidance concerning cost 

principles, burden minimizations, and 

audits for State, local, and tribal 

governments in order to eliminate, to 

the extent permitted by law, 

unnecessary, unduly burdensome, 

duplicative, or low-priority 

recordkeeping requirements and 

effectively tie such requirements to 

achievement of outcomes.’’ 7 OMB’s 

2013 Uniform Guidance added a new 2 

CFR part 200 based on work done by the 

Federal and non-Federal financial 

assistance community in response to 

these directives.8

In a joint interim final rule published 

December 19, 2014, and titled ‘‘Federal 

Awarding Agency Regulatory 

Implementation of Office of 

Management and Budget’s Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards (UAR)’’, all Federal 

award-making departments and 

agencies, including HUD, implemented 

OMB’s 2013 Uniform Guidance.9 HUD 

adopted and codified the Uniform 

Guidance as requirements for Federal 

awards at 2 CFR part 2400 and, 

amended 24 CFR parts 84 and 85 by 


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107074 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 

10 79 FR 75871, 76078; 80 FR 75931, 75931–32 

(Dec. 7, 2015). 

11 79 FR 75871, 75871. 

12U.S. Dep’t of Hous. & Urban Dev., Notice SD– 

2015–01: Transition to 2 CFR part 200, Uniform 

Administrative Requirements, Cost Principles, and 

Audit Requirements for Federal Awards, Final 

Guidance, (2015), https://www.hudexchange.info/

resource/4444/notice-sd201501-transition-to-2-cfrpart-200-uniform-administrative-requirements-costprinciples-and-audit-requirements-for-Federalawards-final-guidance/. 

13 80 FR 75931, 75931–32. 

14 80 FR 75931, 75931. 

15OMB has used terms such as ‘‘non-Federal 

entities’’ in the past to collectively refer to 

recipients and subrecipients. E.g., 85 FR 49506. 

However, under OMB’s 2024 changes, OMB is 

replacing the term ‘‘non-Federal entity’’ with 

‘‘recipients,’’ ‘‘subrecipients,’’ or both. See 89 FR 

30046, 30047. HUD is adopting this terminology for 

this preamble and in HUD’s regulations in title 24 

of the Code of Federal Regulations. 

16As explained in section II of this proposed rule, 

while OMB amended 2 CFR parts 25, 170, and 183, 

in its 2020 final guidance, the changes made to 

these parts do not require modifications to HUD’s 

regulations at this time. 

17 85 FR 49506, 49506. 

18 85 FR 49506, 49506. 

19Office of Mgmt. & Budget, Reference Document 

for Federal Register Document Number: 2020– 

17468 (2020), https://www.trumpadministration.

archives.performance.gov/CAP/20200812-2-CFRRevision-Redline_Final.pdf. 

20 Id. at 46–53. 

21https://www.trumpadministration.archives.

performance.gov/CAP/20200812-2-CFR-RevisionRedline_Final.pdf. 

removing substantive provisions 

implementing OMB circulars issued 

prior to OMB’s Uniform Guidance in 

2013.10 Implementation of the Uniform 

Guidance became effective on December 

26, 2014.11 Shortly after, HUD 

published a notice that provided 

guidance to internal and external 

stakeholders on HUD’s transition to the 

new UAR provisions.12 On December 7, 

2015, HUD published a final rule 

(HUD’s 2015 rulemaking) to conform 

title 24 of the CFR to OMB’s 2013 

Uniform Guidance by removing 

references in title 24, including in HUD 

program regulations, to 24 CFR parts 84 

and 85 and replacing them with 

corresponding references to 2 CFR part 

200 in HUD program regulations.13

These changes took effect January 6, 

2016.14

OMB’s 2013 Uniform Guidance and 

the 2014 UAR apply to the recipients 

(and, as provided, subrecipients) of 

Federal financial assistance from HUD, 

whether such assistance is provided in 

the form of grants or cooperative 

agreements, with such recipients and 

subrecipients.15

OMB’s 2020 Updated Uniform 

Guidance: Summary of Changes 

OMB reviews its Uniform Guidance 

periodically per 2 CFR 200.109. On 

August 13, 2020, OMB published final 

guidance titled ‘‘Guidance for Grants 

and Agreements’’, 85 FR 49506 (OMB’s 

2020 final guidance), which amended 2 

CFR parts 25, 170, 183, and 200.16

(Although OMB amended 2 CFR parts 

25, 170, and 183, the changes made to 

these provisions do not require 

modifications to HUD’s regulations at 

this time and thus are not the subject of 

this rulemaking.) OMB’s 2020 final 

guidance, among other things, added 

new sections, such as the new 2 CFR 

200.322, Domestic preferences for 

procurements; changed section numbers 

for several existing sections of 2 CFR 

part 200; revised and reorganized 

definitions; shifted requirements away 

from monitoring compliance to creating 

a ‘‘risk-based, data-driven framework 

that balances compliance with 

demonstrating successful results’’; 

implemented statutory requirements; 

and clarified areas to improve consistent 

interpretation.17 For ease of reference, 

this preamble uses ‘‘OMB’s 2020 

changes’’ or ‘‘2020 changes’’ when 

referring to changes made by OMB’s 

2020 final guidance. 

According to OMB’s 2020 final 

guidance, the revisions were intended to 

support four strategies identified by the 

Results-Oriented Accountability for 

Grants Cross Agency Priority Goal 

Executive Steering Committee in the 

President’s Management Agenda on 

March 20, 2018. Those strategies are to 

(1) operationalize the grants 

management standards, (2) establish a 

robust marketplace of modern solutions, 

(3) manage risk, and (4) achieve program 

goals and objectives. To further these 

strategies, OMB modified 2 CFR part 

200, among other parts, to require 

Federal agencies to adopt standard data 

elements for the information recipients 

are required to report (in support of 

strategies 1 and 2), as well as to 

strengthen governmentwide approaches 

to performance and risk (in support of 

strategies 3 and 4).18 OMB issued a 

reference document instructing agencies 

on the new revisions prior to the 

effective date of August 13, 2020.19 This 

document stated that OMB’s clarifying 

changes also meant to address areas of 

misinterpretation and reduce burdens 

on recipients by improving consistency 

in interpretation of the guidance.20 For 

more information on the 2020 changes 

to 2 CFR part 200 and the previously 

mentioned strategies, see OMB’s final 

guidance, 85 FR 49506, and OMB’s 

reference document.21

Relevant to this proposed rulemaking 

are the following changes made by 

OMB’s 2020 final guidance to 2 CFR 

part 200: 

• OMB revised 2 CFR 200.318(a) and 

200.319(a) to add language clarifying 

that those sections’ (and other sections’) 

requirements apply to procurement ‘‘for 

the acquisition of property or services 

required under a Federal award.’’ In 

§ 200.318(a), the last phrase was revised 

to read, ‘‘under a Federal award or 

subaward.’’ OMB also reorganized 2 

CFR 200.319 and separated paragraph 

(a) into two paragraphs (a) and (b). 

Therefore, where HUD’s 2 CFR part 200 

cross references refer to 2 CFR 

200.319(a)(5), they should refer to 

paragraph (b)(5) under OMB’s 2020 

changes. 

• OMB added a new section 2 CFR 

200.322, Domestic preferences for 

procurements, to align with prior 

administration policy and E.O. 13788, 

Buy American and Hire American 

(April 18, 2017), and E.O. 13858, 

Strengthening Buy-American 

Preferences for Infrastructure Projects 

(January 31, 2019). Under OMB’s 2020 

changes, this provision stated nonFederal entities (and others subject to 

the requirement), as appropriate and to 

the extent permitted by law, should, to 

the greatest extent practicable under a 

Federal award, provide a preference for 

the purchase, acquisition, or use of 

goods, products, or materials produced 

in the United States (including but not 

limited to iron, aluminum, steel, 

cement, and other manufactured 

products). E.O. 14005, Ensuring the 

Future Is Made in All of America by All 

of America’s Workers (January 25, 

2021), revoked E.O. 13788 and E.O. 

13858. OMB made changes to 2 CFR 

200.322 through OMB’s 2024 final rule 

and notification of final guidance, 89 FR 

30046. These changes are discussed in 

more detail later in this preamble. 

• At 2 CFR 200.340, Termination, 

OMB made changes to ensure that 

Federal awarding agencies could 

terminate a grant in whole or in part, to 

the greatest extent authorized by law, 

when the grant no longer effectuates the 

program goals or Federal awarding 

agency priorities. However, OMB also 

made changes focused on the need for 

agencies to communicate clearly to 

recipients, such as those changes at 2 

CFR 200.211(c)(1)(v), which requires 

that recipients be clearly and 

unambiguously informed of the 

termination provisions at 2 CFR 

200.340. OMB made further changes to 

2 CFR 200.340 through OMB’s 2024 

final rule and notification of final 

guidance, 89 FR 30046. These changes 

are discussed in more detail later in this 

preamble. 

• OMB revised 2 CFR 200.344, 

Closeout, ‘‘to support timely closeout of 

awards, improve the accuracy of final 


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Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 107075 

22 Id. at 32. 

23The public comment period for this proposed 

rule ended on March 13, 2023. 24The Build America, Buy America Act (‘‘BABA’’ 

or ‘‘the Act’’) was enacted on November 15, 2021, 

as part of the Infrastructure Investment and Jobs Act 

(‘‘IIJA’’) (Pub. L. 117–58). 25Under the proposed rule, the new part 184 

would address the Buy America Preference for all 

awards with infrastructure expenditures set forth in 

section 70914 of the Act, generally align with OMB 

guidance M–22–11, provide definitions for the 

purposes of 2 CFR part 184 and a common 

framework for applying Buy America Preferences to 

Federal Financial Assistance, include guidance for 

determining the cost of manufactured products and 

use the definition of ‘‘cost of components’’ in the 

Federal Acquisition Regulation (FAR) (48 CFR 

25.003) that is used for Federal procurement, and 

include OMB’s proposed standards for ‘‘all 

manufacturing processes’’ for the manufacture of 

construction materials. OMB’s rule also proposed to 

modify 2 CFR 200.322 to direct Federal agencies to 

the new part in chapter I (2 CFR part 184) for 

guidance on all awards that include infrastructure 

projects. 

26As explained in section II. of this proposed 

rule, while OMB amended 2 CFR parts 1, 170, 175, 

180, 182, 183, and 184 in its 2024 final guidance, 

the changes made to these parts do not require 

modifications to HUD’s regulations at this time. 

Some provisions in 2 CFR part 25 are relevant to 

this rulemaking, as explained later in this preamble. 

closeout reporting, and reduce recipient 

burden.’’ 22 At § 200.344(a), OMB 

revised language to extend the deadline 

for report submission by recipients, 

established a deadline for subrecipients 

to submit reports to pass-through 

entities, and made changes such as 

changing ‘‘non-Federal entity’’ to 

‘‘recipient’’ and adding ‘‘or an earlier 

date as agreed upon by the pass-through 

entity and subrecipient.’’ OMB made 

further changes to 2 CFR 200.344 

through OMB’s 2024 final rule and 

notification of final guidance, 89 FR 

30046. These changes are discussed in 

more detail later in this preamble. 

• OMB added a new paragraph (h) to 

2 CFR 200.403, Factors affecting 

allowability of costs. Section 200.403 

lists general criteria for costs to be 

allowed under Federal awards. New 

paragraph (h) states that costs must be 

incurred during the approved budget 

period, and it authorizes Federal 

awarding agencies to waive prior 

written approvals for carrying forward 

unobligated balances to later budget 

periods per § 200.308(e)(3). OMB made 

further changes to 2 CFR 200.403 

through OMB’s 2024 final rule and 

notification of final guidance, 89 FR 

30046. These changes are discussed in 

more detail later in this preamble. 

• OMB revised 2 CFR 200.414(f) to 

change the requirement permitting use 

of the 10 percent de minimis rate 

election for recovering indirect costs. 

Previously, a non-Federal entity was 

permitted to use the 10 percent de 

minimis option only if it had never 

received a negotiated indirect cost rate. 

The new rule permits use of the de 

minimis rate of 10 percent if the nonFederal entity does not have a current 

negotiated rate. OMB clarified that no 

documentation is required to justify the 

10 percent de minimis indirect cost rate. 

OMB made further changes to 2 CFR 

200.414(f) through OMB’s 2024 final 

rule and notification of final guidance, 

89 FR 30046. These changes are 

discussed in more detail later in this 

preamble. 

• OMB revised 2 CFR 200.465, Rental 

costs of real property and equipment, by 

redesignating paragraph (c)(5) as 

paragraph (d), revising the text of 

paragraph (d), and adding a new 

paragraph (e). Revisions to paragraph (d) 

replace the reference to ‘‘leases which 

are required to be treated as capital 

leases’’ (in accordance with generally 

accepted accounting principles, GAAP) 

with ‘‘leases which are required to be 

accounted for as a financed purchase 

under [Governmental Accounting 

Standards Board (GASB)] standards or a 

finance lease under [Financial 

Accounting Standards Board (FASB)] 

standards[.]’’ New paragraph (e) 

provides for general allowability of 

rental or lease payments under lease 

contracts where the non-Federal entity 

must recognize an intangible right-touse lease asset (per GASB) or right of 

use operating lease asset (per FASB) for 

purposes of financial reporting in 

accordance with generally accepted 

accounting principles. OMB made 

further changes to 2 CFR 200.465 

through OMB’s 2024 final rule and 

notification of final guidance, 89 FR 

30046. These changes are discussed in 

more detail later in this preamble. 

• OMB revised 2 CFR 200.515, Audit 

reporting, to better align the regulation 

with the Federal Audit Clearinghouse’s 

audit form and collections on financial 

statements. Section 200.515 requires 

auditors to determine and provide an 

opinion on whether an auditee’s 

financial statements ‘‘are presented 

fairly in all material respects.’’ Section 

200.515 permits use of GAAP to make 

such determinations. OMB revised 

§ 200.515 to permit use of a special 

purpose framework, such as cash, 

modified cash, or regulatory as required 

by State law, in addition to GAAP. OMB 

made further changes to 2 CFR 200.515 

through OMB’s 2024 final rule and 

notification of final guidance, 89 FR 

30046. These changes are discussed in 

more detail later in this preamble. 

OMB’s 2024 Final Rulemaking and 

Notification of Final Guidance for 

Federal Financial Assistance 

On October 5, 2023, OMB published 

another proposed rule to revise OMB’s 

guidance and its regulations in title 2 of 

the Code of Federal Regulations, 

including, among other parts, part 200. 

88 FR 69390 (October 2023 proposed 

rule). OMB’s proposed rule sought to 

further streamline, clarify, and update 

the guidance, including raising certain 

thresholds, where permissible under 

law, in recognition of inflation over 

time. The proposals were based on four 

objectives: (1) incorporating statutory 

requirements and administration 

priorities related to Federal financial 

assistance; (2) reducing agency and 

recipient burden; (3) clarifying sections 

that recipients or agencies have 

interpreted in different ways; and (4) 

rewriting applicable sections in plain 

language, improving flow, and 

addressing inconsistent use of terms. 

OMB partially based its proposed 

changes on Federal agency input from 

ongoing engagement with Federal 

agencies and the broader Federal 

financial assistance community, and 

from Federal agency comments and 

public comments on a previously issued 

Request for Information (RFI) that OMB 

published on February 9, 2023. 88 FR 

8480. The RFI announced that OMB 

would be proposing revisions to 

chapters I and II of subtitle A of title 2 

of the Code of Federal Regulations, 

which includes 2 CFR part 200 among 

other parts, and requested public 

comment on 2 CFR and several specific 

questions. OMB also published a 

proposed rule on the same date 

proposing to revise OMB Guidance for 

Grants and Agreements and soliciting 

public comment on the rule’s proposals. 

88 FR 8374 (OMB’s 2023 proposed 

rule).23 OMB proposed to create a new 

part 184 in 2 CFR chapter I and revise 

2 CFR 200.322 to support 

implementation of the Build America, 

Buy America Act provisions of the 

Infrastructure Investment and Jobs Act 

(IIJA) 24 and to clarify existing 

requirements.25

After consideration of further public 

and Federal agency comments on the 

October 2023 proposed rule, OMB 

published a final rule on April 22, 2024, 

to finalize changes to guidance and 

OMB regulations in title 2 of the CFR, 

89 FR 30046 (OMB’s 2024 final rule), 

parts 1, 25, 170, 175, 180, 182, 183, 184, 

and 200.26 OMB finalized these changes 

for purposes related to the four 

objectives stated in the October 2023 

proposed rule, and to improve Federal 

financial assistance management, 

transparency, and oversight through 

more accessible and comprehensible 

guidance. OMB largely retained the 

overall structure and part, subpart, and 

section number organization from prior 


khammond on DSK9W7S144PROD with PROPOSALS
107076 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 

27This rulemaking is part of HUD’s effort to 

implement OMB’s changes for HUD regulations and 

programs. ‘‘Consistent with 2 CFR 200.106 and 

applicable law, Federal agencies must take 

appropriate steps to ensure the 2024 Revisions are 

effective for all Federal awards issued on or after 

October 1, 2024.’’ OMB Memorandum M–24–11, 

https://www.whitehouse.gov/wp-content/uploads/ 

2024/04/M-24-11-Revisions-to-2-CFR.pdf. 

28 89 FR 30052. 

29Non-Federal entity under 2 CFR 200.1 ‘‘means 

a State, local government, Indian Tribe, Institution 

of Higher Education (IHE), or nonprofit organization 

that carries out a Federal award as a recipient or 

subrecipient.’’ 

iterations of its guidance and 

regulations. OMB made many plain 

language revisions to simplify text, 

reduce technical verbiage, and increase 

consistency and brevity, but largely did 

not change the substantive content of 

the guidance and regulations. The 

changes from OMB’s 2024 final rule 

became effective October 1, 2024.27

Relevant to this proposed rulemaking 

are the following changes made by 

OMB’s 2024 final guidance to 2 CFR 

part 25: 

• OMB amended 2 CFR 25.105, 

Applicability, which now provides in 

paragraph (a) that 2 CFR part 25 applies 

to all applicants for and recipients of 

Federal financial assistance as defined 

in 2 CFR 25.400 unless exempted by 

Federal statute or 2 CFR 25.110. Under 

revised paragraph (b), subrecipients 

must obtain a unique entity identifier 

(UEI) by registering with the System for 

Award Management (SAM.gov) and 

acquiring a UEI through that website, as 

discussed below, in accordance with 2 

CFR part 25, subpart C. OMB also 

clarified in a new paragraph (d) that 

recipients of the guarantee from the 

Federal agency, including for-profit 

lenders participating in loan guarantee 

programs, are required to register in 

SAM.gov. These lenders are also 

required to complete entity validations 

and acquire a UEI. Finally, a Federal 

agency may require non-individual 

beneficiary borrowers, including small 

businesses or corporations, to obtain a 

UEI or register in SAM.gov. There is no 

change to the underlying requirements, 

but OMB has clarified that applicability 

extends to lenders participating in loan 

guarantee programs. 

• OMB revised 2 CFR 25.200, 

Requirements for notice of funding 

opportunities, regulations, and 

application instructions, to reorganize, 

provide clarity, and make plain 

language changes, but did not make 

substantive changes.28

• OMB revised 2 CFR 25.205, Effect 

of noncompliance with a requirement to 

obtain a UEI or register in SAM.gov, to 

make plain language revisions and 

provide minor clarifications, including 

that the requirement to have an active 

UEI does not apply to amendments to 

terminate or close a Federal award. 

• OMB revised 2 CFR 25.300, 

Requirement for recipients to ensure 

subrecipients have a unique entity 

identifier, to make plain language 

changes, but did not make substantive 

changes. 

• OMB amended the definition of 

Federal financial assistance in 2 CFR 

25.400, Definitions, by adding ‘‘loan 

guarantee’’ as a form of assistance that 

constitutes Federal financial assistance. 

Read together with revised 2 CFR 

25.105, OMB’s changes clarify that 2 

CFR part 25 applies to loan guarantee 

assistance. 

• OMB amended Appendix A to 2 

CFR part 25, Award Term, to make plain 

language revisions and minor clarifying 

edits, but did not make substantive 

changes. Appendix A to 2 CFR part 25 

requires, among other things, that 

recipients to maintain current and 

active registration in SAM.gov until the 

recipient submits all final reports 

required under a Federal award or 

receives final payment, whichever is 

later; that recipients notify potential 

subrecipients that no entity may receive 

a subaward until the entity has provided 

its UEI to the recipient; and that 

recipients must not make subawards to 

an entity unless the entity has provided 

its UEI to the recipient. 

Relevant to this proposed rulemaking 

are the following changes made by 

OMB’s 2024 final guidance to 2 CFR 

part 200: 

• OMB revised the definition of Cost 

sharing in 2 CFR 200.1 by removing ‘‘or 

matching’’ from the previously defined 

term ‘‘Cost sharing or matching’’. 

Instead, OMB has clarified that cost 

sharing includes matching, meaning the 

required levels of cost share that must 

be provided by entities such as 

recipients, subrecipients, and third 

parties. The definition continues to 

cross-reference 2 CFR 200.306, Cost 

sharing. 

• OMB revised the definition of 

Modified Total Direct Cost (MTDC), in 2 

CFR 200.1, by changing the two dollar 

amounts of $25,000 in the definition to 

$50,000. The MTDC definition now 

provides that MTDC includes up to the 

first $50,000 of each subaward, and that 

MTDC excludes the portion of each 

subaward in excess of $50,000. 

• OMB revised the definition of 

Federal financial assistance in 2 CFR 

200.1 by replacing ‘‘non-Federal 

entities’’ and with ‘‘recipients or 

subrecipients’’ throughout. The revised 

definition now specifies that 2 CFR part 

200 provisions, including, under 

paragraph (2) of the definition of 

Federal financial assistance, 2 CFR 

200.203 and subpart F of 2 CFR part 

200, apply to loan guarantee program 

assistance that goes to or is 

administered by recipients and 

subrecipients. Under the previously 

existing definition of ‘‘Non-Federal 

entity’’ under 2 CFR 200.1, for-profit 

entities were not included. 

• OMB made several revisions to 2 

CFR 200.101, Applicability. Of 

relevance to this rulemaking’s proposed 

changes to HUD regulations in 24 CFR 

parts 5, 1005, and 1007: OMB removed 

the table 1 for paragraph (b), and 

reorganized and clarified text describing 

the applicability of 2 CFR part 200 

subparts and provisions for different 

types of Federal financial assistance, 

including loan guarantee program 

assistance. The items under revised 

paragraph (b)(5), including agreements 

for loan guarantees, are subject to 2 CFR 

part 200, subpart F, Audit Requirements 

only when awarded to a non-Federal 

entity as defined in 2 CFR 200.1.29

• Under 2 CFR 200.208, Specific 

conditions, paragraph (d), before OMB’s 

2024 changes, if a Federal awarding 

agency or pass-through entity was 

imposing additional requirements 

through specific conditions, they were 

required to notify the applicant or nonFederal entity without specification as 

to when this notice must be provided. 

Under revised paragraph (d), the Federal 

agency or pass-through entity must 

notify the recipient or subrecipient prior 

to imposing specific conditions. 

Notification must include the nature of 

and reason for the specific conditions, 

the action needed to remove them, the 

time allowed for completing such 

actions, and the method for requesting 

the Federal agency or pass-through 

entity to reconsider imposing a specific 

condition. 2 CFR 200.208(d)(1) through 

(5). 

• OMB reorganized and revised 2 

CFR 200.307. The previous paragraph 

(e), concerning use of program income, 

has been moved to new paragraph (b)(2). 

Additionally, OMB simplified language 

by revising all paragraphs in 

§ 200.307(b), but the substantive 

requirements did not change. For 

purposes of cross-reference updates in 

this rulemaking, HUD notes that 

preexisting paragraph (e)(2) is now in 

paragraph (b)(2). 

• OMB revised 2 CFR 200.317 by, 

among other things, adding ‘‘Indian 

Tribes’’ where States are mentioned in 

the regulation. This means that, if 

applicable, Indian Tribes receiving HUD 

Federal financial assistance must use 

their own procurement policies and 

procedures when conducting 

procurement transactions under a 


khammond on DSK9W7S144PROD with PROPOSALS
Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 107077 

30 85 FR 49506 (Aug. 13, 2020). Some of OMB’s 

changes and the updated Uniform Guidance are 

already in effect based on language in a Federal 

award or through another implementation method. 

Federal award. If these policies and 

procedures do not exist, then a Tribe 

must follow the procurement standards 

in 2 CFR 200.318 through 200.327. 

Applicability does not extend to 

Tribally Designated Housing Entities 

under OMB’s revisions. 

• OMB revised 2 CFR 200.318 by, 

among other things, removing the term 

‘‘non-Federal entity’’ and replacing it 

with ‘‘recipient or subrecipient’’. 

Paragraph (c) of this section concerns 

conflicts of interest, including 

organizational conflicts of interest, and 

is of relevance to this rulemaking. 

(Paragraph (c) was not changed 

substantively other than the addition of 

a ‘‘board member with a real or apparent 

conflict of interest’’ to the list of persons 

who may not participate in the 

selection, award, or administration of a 

contract supported by the Federal 

award.) 

• After its 2020 changes to 2 CFR 

200.319, OMB further reorganized and 

revised this section in its 2024 round of 

changes. Of relevance to this rulemaking 

is the requirement under what was, 

prior to OMB’s 2020 and 2024 changes, 

paragraph (a)(5): To ensure objective 

contractor performance and eliminate 

unfair competitive advantage, 

contractors that develop or draft 

specifications, requirements, statements 

of work, or invitations for bids or 

requests for proposals must be excluded 

from competing for such procurements. 

One situation ‘‘considered to be’’ 

restrictive of competition is 

organizational conflicts of interest; this 

example was, prior to OMB’s 2020 and 

2024 changes, provided in 

§ 200.319(a)(5). These requirements are 

now found in paragraph (b), which 

speaks to the exclusions for 

procurement competition, and (c)(5), 

which contains the organizational 

conflicts of interest example. Therefore, 

where HUD’s regulations cross reference 

2 CFR 200.319(a)(5), they should now 

cross reference 2 CFR 200.319(b) and 

(c)(5) following OMB’s 2020 and 2024 

changes. 

• OMB revised 2 CFR 200.321, 

Contracting with small businesses, 

minority businesses, women’s business 

enterprises, veteran-owned businesses, 

and labor surplus area firms, such that 

this section (as of October 1, 2024) no 

longer requires but instead recommends 

actions to ensure consideration of 

minority, women, and veteran-owned 

businesses and labor surplus area firms. 

OMB added qualifying language, ‘‘When 

possible,’’ to the beginning of paragraph 

(a), changed the language of requirement 

‘‘must’’ in paragraph (a) to discretionary 

language ‘‘should’’ to state that a 

recipient or subrecipient ‘‘should 

ensure’’ that such businesses and firms 

are considered, and replaced the term 

‘‘Affirmative steps must include’’ with 

‘‘Such consideration means’’. OMB also 

added the category of ‘‘veteran-owned 

business’’ to this section for the first 

time. Finally, OMB made several 

changes for simplification of language 

and clarification. 

• In 2 CFR 200.322, OMB added a 

new paragraph (c) stating that Federal 

agencies providing Federal financial 

assistance for infrastructure projects 

must implement the Buy America 

preferences set forth in 2 CFR part 184. 

While HUD is not proposing that any of 

its regulations specifically crossreference 2 CFR part 184, where HUD’s 

regulations do require applicability or 

compliance with 2 CFR 200.322 and/or 

2 CFR part 200, subpart D (which 

contains 2 CFR 200.322), this also 

necessarily includes 2 CFR part 184 

where Federal financial assistance is 

provided for infrastructure projects. 

• OMB revised 2 CFR 200.331 by, 

among other things, clarifying in 

paragraph (b) that a contract is for the 

purpose of obtaining goods and services 

for the recipient’s or subrecipient’s 

(previously ‘‘the non-Federal entity’s 

own’’) use and creates a procurement 

relationship with a contractor. 

• OMB revised 2 CFR 200.403(h) to 

add language clarifying that 

administrative closeout costs may be 

incurred until the due date of the final 

report(s) and, if incurred, these costs 

must be liquidated prior to the due date 

of the final report(s) and charged to the 

final budget period of the award unless 

otherwise specified by the Federal 

agency. OMB also made minor edits to 

the existing language of paragraph (h) 

for plain language and clarification. 

• Through its 2024 final guidance, 

OMB amended 2 CFR 200.414(f) by: 

Æ Providing that recipients and 

subrecipients that do not have a current 

negotiated indirect cost rate may elect to 

charge a de minimis rate; 

Æ Removing the exception for nonFederal entities described in 2 CFR part 

200 appendix VII, paragraph D.1.b; 

Æ Increasing the amount of the de 

minimis indirect cost rate from 10 to 15 

percent of MTDC, and expressly 

authorizing the recipient or subrecipient 

to determine the appropriate rate up to 

this limit; 

Æ Specifying that Federal agencies 

and pass-through entities cannot require 

recipients and subrecipients to use a de 

minimis rate lower than the negotiated 

indirect cost rate or the rate chosen 

pursuant to § 200.414, unless required 

by Federal statute or regulation; 

Æ Prohibiting application of the de 

minimis rate to cost reimbursement 

contracts issued directly by the Federal 

government in accordance with the 

Federal Acquisition Regulation (FAR); 

Æ Specifying that recipients and 

subrecipients are not required to use the 

de minimis rate; 

Æ Clarifying that if a recipient or 

subrecipient elects to use the de 

minimis rate or a lower rate, or if it is 

required to use a lower rate by Federal 

statute or regulation, it must use the de 

minimis rate for all Federal awards until 

the recipient or subrecipient choose to 

receive a negotiated rate; and 

Æ Removing language that permitted a 

non-Federal entity to apply to negotiate 

a rate at any time. 

OMB retained (but moved, within 

§ 200.414(f)) language stating that the de 

minimis rate does not require 

documentation to justify its use and 

may be used indefinitely. 

• OMB revised 2 CFR 200.445(b) by 

removing the phrase ‘‘regardless of 

whether reported as taxable income to 

the employees’’ in the provision stating 

that housing costs, housing allowances, 

and personal living expenses for the 

recipient’s or subrecipient’s employees 

are only allowable as direct costs and 

must be approved in advance by the 

Federal agency. 

• OMB revised 2 CFR 200.472 by, 

among other things, adding a new 

paragraph (b) that states that 

administrative costs related to closeout 

activities of a Federal award are 

allowable and the recipient or 

subrecipient may charge the Federal 

award during the closeout for the 

necessary administrative costs of that 

Federal award. Section 200.472(b) 

provides examples including salaries of 

personnel preparing final reports, 

publication and printing costs, costs 

associated with the disposition of 

equipment and property, and related 

indirect costs. The provision also 

repeats requirements stated in 2 CFR 

200.403(h): The administrative costs 

may be incurred until the due date of 

the final report(s) and, if incurred, the 

costs must be liquidated prior to the due 

date of the final report(s) and charged to 

the final budget period of the award 

unless otherwise specified by the 

Federal agency. 

II. This Proposed Rule 

This proposed rule is necessary to 

incorporate into HUD’s regulations and 

bring into effect the updated Uniform 

Guidance issued by OMB in 2020 

(OMB’s 2020 final guidance),30 and 


khammond on DSK9W7S144PROD with PROPOSALS
107078 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 

31 89 FR 30046 (April 22, 2024). OMB’s changes 

go into effect October 1, 2024. 32 89 FR 46618. 

OMB’s Guidance for Federal Financial 

Assistance issued in 2024 (OMB’s 2024 

final guidance).31 Implementation of 

this guidance will reduce administrative 

burden and decrease risk of waste, 

fraud, and abuse for HUD’s management 

of Federal financial assistance. Because 

HUD previously implemented OMB’s 

guidance into HUD’s Federal financial 

assistance management regulations 

throughout title 24 of the CFR, OMB’s 

2020 and 2024 amendments require that 

HUD review those regulations and 

incorporate changes made in 2 CFR part 

200 and, as applicable, the other parts 

in title 2 of the CFR amended by OMB. 

During this process HUD has also 

identified instances where technical 

corrections to HUD regulations are 

necessary. Although OMB also amended 

2 CFR parts 25, 170, and 183 in OMB’s 

2020 final guidance, and OMB amended 

2 CFR parts 1, 25, 170, 175, 180, 182, 

183, and 184 in OMB’s 2024 final 

guidance, the changes being made to 

these provisions do not require 

modifications to HUD’s regulations at 

this time, with the exception of changes 

to 2 CFR part 25 made through OMB’s 

2024 final guidance, which is explained 

in more detail elsewhere in this 

preamble. 

Specifically, through this proposed 

rule HUD is proposing to make 

technical changes to 2 CFR part 200 

cross-references to conform HUD’s 

regulations with revisions made by 

OMB. OMB also made substantive 

changes to certain 2 CFR part 200 

provisions that HUD previously 

implemented in its regulations, and 

HUD is proposing conforming changes 

to implement new or changed 

requirements in relevant 2 CFR part 200 

provisions. HUD is also proposing to 

amend its regulations based on its 

experience implementing 2 CFR part 

200 to improve clarity and consistency 

in HUD regulations that cross-reference 

2 CFR part 200 or specific subparts or 

provisions. HUD’s proposed changes are 

explained in more detail below. This 

includes proposed changes to HUD’s 

Housing Trust Fund (HTF) program 

regulations to establish program-specific 

procedures and better align 

programmatic and administrative 

requirements for HTF grant closeout. 

Additionally, HTF program regulations 

are modeled off of HUD’s HOME 

Investment Partnership program 

regulations, so HUD is proposing some 

changes in this rulemaking that would 

align HTF regulations with changes 

related to 2 CFR part 200 proposed in 

HUD’s recent proposed rule for the 

HOME program.32 Finally, because 

some of OMB’s 2024 changes affect loan 

guarantee programs, and because HUD 

has yet to codify in regulation some 

requirements that have applied to loan 

guarantee programs even before OMB’s 

2020 changes, HUD is proposing to 

amend its Section 184 and 184A 

program regulations (24 CFR parts 1005 

and 1007, respectively) to implement 

the relevant requirements. HUD is 

seeking public comment on its proposed 

changes. 

Conforming Technical Changes Based 

on OMB’s 2020 and 2024 Updates to 

Uniform Guidance 

Cross Reference Updates 

Through this proposed rulemaking, 

HUD is proposing to make technical 

changes to 2 CFR part 200 crossreferences to conform HUD’s regulations 

with revisions made by OMB in its two 

rounds of changes, 2020 and 2024. For 

example, through its 2020 final 

guidance, OMB removed all 2 CFR part 

200 sections containing specific 

definitions, sections 2 CFR 200.2 

through 200.99, and added all the 

definitions in those sections into a 

general ‘‘Definitions’’ section, 2 CFR 

200.1. Therefore, in its regulations at 

title 24, HUD proposes replacing any 

cross-references to sections 2 CFR 200.2 

through 200.99 (which no longer exist) 

with a cross-reference to 2 CFR 200.1. 

For example, HUD proposes to revise 24 

CFR 4.9(a)(iii) by removing the crossreference ‘‘2 CFR 200.80,’’ which 

previously contained the definition of 

‘‘program income,’’ and adding in its 

place a cross-reference to 2 CFR 200.1, 

which now contains the definition for 

‘‘program income.’’ 

Through its 2020 and 2024 final 

guidance, OMB revised and reorganized 

some sections, such as 2 CFR 200.319. 

This created new paragraph and 

regulatory text organization and some 

new paragraph designations within 

these 2 CFR provisions. Therefore, 

through this rulemaking, HUD is 

proposing to update cross-references in 

HUD’s existing regulations, such as 24 

CFR 700.175(b) and 1003.606(a)(1), 

which cross-reference 2 CFR 

200.319(a)(5), to reference the new, 

correct paragraph(s). In this example, 

the cross-reference to 2 CFR 

200.319(a)(5) would be updated to 2 

CFR 200.319(b) and (c)(5), since the 

information previously contained in 2 

CFR 200.319(a)(5) is now split into 

several paragraphs with new paragraph 

designations because of changes from 

both OMB’s 2020 and 2024 final 

guidance. 

HUD is also proposing updates to 

cross-references to point to more 

specific 2 CFR part 200 subparts or 

provisions. For example, 24 CFR 75.31 

provides for recordkeeping 

requirements and states that 

documentation must be maintained for 

a time period in accordance with 

applicable program regulations or, in 

the absence of such regulations, ‘‘in 

accordance with 2 CFR part 200.’’ For 

clarity, HUD proposes to replace the 

cross-reference in 24 CFR 75.31(c) to 2 

CFR part 200 with a reference to 2 CFR 

200.334, which specifies a three-year 

requirement and exceptions to this 

requirement. In addition, HUD proposes 

changes to cross-reference more specific 

2 CFR part 200 subparts or provisions in 

§ 75.33(a), to cross-reference 2 CFR 

200.334; and § 570.509(b)(3), to crossreference 2 CFR part 200, subpart F. 

Finally, some of HUD’s regulations, 

24 CFR 570.502(a) for example, cross 

reference 2 CFR provisions by only 

section number (not CFR title number 2) 

and then by section title: in 

§ 570.502(a)(1), ‘‘Section 200.305 

‘Payment’ ’’. This could refer to 

§ 200.305 in any title of the CFR. HUD 

is proposing to clarify that the crossreferences are to title 2 provisions by 

revising these cross-references to read, 

e.g., ‘‘2 CFR 200.305.’’ OMB’s 2024 

changes also changed the section titles 

of some of these 2 CFR part 200 

provisions. For example, 2 CFR 200.306, 

which 24 CFR 570.502(a)(2) crossreferences as ‘‘Section 200.306 ‘Cost 

sharing or matching,’ ’’ is no longer 

‘‘Cost sharing or matching’’ but ‘‘Cost 

sharing’’. HUD is proposing to remove 

the section titles from the 2 CFR part 

200 cross-references in its regulations to 

remove the need to update HUD’s 

regulations to account for any future 

change in section titles of 2 CFR part 

200 provisions. HUD is therefore 

proposing for 24 CFR 570.502(a)(1) to 

simply cross-reference ‘‘2 CFR 200.305,’’ 

and, for paragraph (a)(2), ‘‘2 CFR 

200.306,’’ and so on. HUD is proposing 

these technical changes in 24 CFR 

570.502(a), 1000.26(a), and 1003.501(a). 

Section 570.489 Program 

Administrative Requirements 

Through OMB’s 2020 changes to 2 

CFR part 200, OMB removed section 2 

CFR 200.88, which contained the 

definition of ‘‘simplified acquisition 

threshold’’ (SAT), and moved the SAT 

definition into the new definitions 

section 2 CFR 200.1. OMB also revised 

the definition of ‘‘simplified acquisition 

threshold’’ to cross-reference 2 CFR 

200.320 and clarify that the SAT ‘‘for 


khammond on DSK9W7S144PROD with PROPOSALS
Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 107079 

33On July 2, 2020, the Department of Defense, the 

General Services Administration (GSA), and the 

National Aeronautics and Space Administration 

(NASA) finalized changes to the Federal 

Acquisition Regulation at 48 CFR part 2, subpart 

2.1, in a final rule titled ‘‘Federal Acquisition 

Regulation; Federal Acquisition Circular 2020–07; 

Introduction.’’ 85 FR 40060; see also FAR Case 

2018–004, titled ‘‘Federal Acquisition Regulation: 

Increased Micro-Purchase and Simplified 

Acquisition Thresholds,’’ at 85 FR 40064. That final 

rule, among other things, increased the general 

simplified acquisition threshold amount from 

$150,000 to $250,000. These changes are not 

directly relevant to HUD’s reasoning for proposing 

changes to 24 CFR 570.489(j), but are worth noting. 

34 80 FR 75931. 35HUD’s proposed 24 CFR 5.1004(b) incorporates 

provisions in 2 CFR part 25, Appendix A, Award 

Term. 36See 70 FR 77292. HUD’s requirements originate 

from goals set by the President in the President’s 

Management Agenda for Fiscal Year 2002, which 

furthered the objectives of the Federal Financial 

Assistance Management Improvement Act of 1999 

and the Government Paperwork Elimination Act. 69 

FR 68218. The Federal Financial Assistance 

Management Improvement Act of 1999, which 

required Federal agencies to streamline and 

simplify the application, administrative, and 

reporting procedures for Federal financial 

assistance programs, ceased to be effective on Nov. 

20, 2007. 

37 89 FR 30072. 

38See existing 24 CFR 5.1004, ‘‘Applicants for 

HUD financial assistance that are subject to this 

subpart are required to register with the System of 

Award Management (SAM) and have an active 

registration in SAM in accordance with 2 CFR part 

25, appendix A in order for HUD to obligate funds 

and for an awardee to receive an award of funds 

from HUD.’’ 

procurement activities administered 

under Federal awards’’ is set by the 

Federal Acquisition Regulation at 48 

CFR subpart 2.1.33 In § 570.489(j), HUD 

is proposing to remove the language 

‘‘the threshold for small purchase 

procurement (2 CFR 200.88),’’ and 

replace it with ‘‘the simplified 

acquisition threshold (2 CFR 200.1) set 

by the FAR at 48 CFR part 2, subpart 

2.1.’’ This will incorporate OMB’s 

renumbering of 2 CFR part 200 

definitions and make HUD’s regulatory 

language consistent with the language in 

the SAT definition in 2 CFR 200.1. 

Conforming Substantive Changes Based 

on OMB’s 2020 and 2024 Updates to 

Uniform Guidance 

Some of OMB’s changes to the 

Uniform Guidance add new 

requirements or changes to existing 

requirements. HUD has reviewed these 

substantive changes and seeks to 

implement OMB’s permissive 

requirement for consideration of small, 

minority, veteran-owned, and women’s 

business enterprises and labor surplus 

area firms in 2 CFR 200.321; OMB’s 

indirect cost requirements in section 2 

CFR 200.414(f); and OMB’s audit 

reporting requirements in 2 CFR 

200.515. The relevant substantive 

changes to OMB’s Uniform Guidance 

and HUD’s corresponding proposed 

changes are outlined in this section. 

HUD is proposing to make these 

changes to align its program regulations 

with OMB’s regulations and 2020 and 

2024 final rules and final guidance. 

Doing so will help HUD regulations and 

programs to achieve or better achieve 

the objectives outlined in the preambles 

of OMB’s rulemakings: align with 

statutory requirements and 

administration priorities, reduce agency 

and recipient burden, and strengthen 

Federal agency approaches to 

performance and risk. 

Application, Registration, and 

Submission Requirements: §§ 5.1001 

Through 5.1005 

Following OMB’s 2024 changes to 2 

CFR 25.105, 2 CFR part 25 applies to 

applicants for and recipients of Federal 

financial assistance as defined in 2 CFR 

25.400 unless a Federal statute or 2 CFR 

25.110 provides for an exemption. 

OMB’s changes to the definition of 

Federal financial assistance in 2 CFR 

25.400 clarify that loan guarantees 

constitute Federal financial assistance 

for purposes of 2 CFR part 25. The 

changes to 2 CFR 25.105 and 25.400 

together mean that 2 CFR part 25 

applies to loan guarantee assistance. 

HUD is proposing conforming changes 

to 24 CFR 5.1001 that would incorporate 

OMB’s new applicability language and 

include loan guarantees as a form of 

Federal financial assistance subject to 

the requirements of HUD regulations 

that implement 2 CFR part 25: 24 CFR 

5.1001 through 5.1005 (24 CFR part 5, 

subpart K). 

HUD regulations at §§ 5.1003 and 

5.1004 implement OMB’s preexisting 

provisions in title 2 of the Code of 

Federal Regulations related to use of a 

unique entity identifier and the System 

of Award Management (SAM), 2 CFR 

25.200 and 25.205. HUD implemented 

these OMB provisions as part of its prior 

2 CFR rulemaking effort to implement 

OMB’s 2013 uniform guidance, and 

HUD’s regulations currently only 

expressly incorporate these 

requirements for applicants of Federal 

financial assistance, not recipients and 

subrecipients.34 HUD is proposing 

conforming changes to 24 CFR 5.1003 

and 5.1004 to align them with the 

revised OMB provisions and to clarify 

that certain requirements extend to 

applicants, in § 5.1003, and also to 

recipients and subrecipients, in 

§ 5.1004. HUD is proposing conforming 

changes to § 5.1003 to incorporate the 

revised language in OMB’s revised 2 

CFR 25.200 and 25.205. HUD is also 

proposing to maintain some of the 

structure and language in current 24 

CFR 5.1003 related to consortium 

arrangements. HUD is similarly 

proposing conforming changes to 24 

CFR 5.1004 to align it with revised 2 

CFR 25.200, 25.205, 25.300, and 

appendix A to 2 CFR part 25. HUD is 

proposing to incorporate 2 CFR 

25.205(d) in § 5.1004(c) to clarify UEI 

and SAM.gov requirements for 

recipients of loan guarantee 

assistance.35

Section 5.1005 of title 24 of the CFR 

currently incorporates HUD’s 

requirements for electronic submission 

of applications for HUD assistance.36

These requirements apply only for 

applications submitted in response to 

any application that HUD has placed on 

the www.grants.gov website. This 

website, grants.gov, is only applicable 

for awards made via competition, and 

not all HUD programs use grants.gov for 

electronic submission of applications. 

Additionally, in response to public 

comment, OMB stated in its 2024 final 

rulemaking that it would not implement 

a single, centralized application system 

or related provisions.37 HUD is therefore 

proposing to remove the existing 

requirements in 24 CFR 5.1005. 

OMB’s regulations at 2 CFR 25.220(a), 

as revised through OMB’s 2024 changes, 

require all awards of Federal financial 

assistance to include the award term in 

appendix A to 2 CFR part 25. This was 

a preexisting requirement; OMB’s 2024 

changes did not alter its substance, but 

this requirement has only been included 

indirectly via cross-reference in HUD’s 

regulations up to this point.38 HUD is 

therefore proposing a new § 5.1005 that 

would provide that every agreement for 

Federal financial assistance executed by 

HUD with a recipient on or after 

October 1, 2024, is subject to the Award 

Term in appendix A to 2 CFR part 25. 

Section 92.508 Recordkeeping 

Through OMB’s 2024 changes, OMB 

revised 2 CFR 200.321 by removing the 

requirement that non-Federal entities 

‘‘must take all necessary affirmative 

steps to assure’’ use of minority 

businesses, women’s business 

enterprises, and labor surplus area 

firms, and replacing it with a statement 

that ‘‘[w]hen possible, the recipient or 

subrecipient should ensure’’ (emphasis 

added) consideration of small 

businesses, minority businesses, 

women’s business enterprises, veteranowned businesses, and labor surplus 

area firms, for contracting purposes. 

Affirmative steps to ensure use of these 

entities is no longer a requirement, and, 

instead, consideration of these entities 


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39Under OMB’s 2020 changes, these non-Federal 

entities described in appendix VII in paragraph 

D.1.b. were defined as a State or local governmental 

department or agency unit that receives more than 

$35 million in direct Federal funding or is 

specifically requested to submit an indirect cost rate 

proposal by the cognizant agency for indirect costs. 

State or local governments receiving more than $35 

million in direct Federal funding were required to 

submit an indirect cost rate proposal to its 

cognizant agency for indirect costs. 40See, e.g., 24 CFR 576.109(b). 

is now an option that OMB regulations 

encourage ‘‘when possible’’. 

Additionally, the list of entities has 

expanded and now includes small 

businesses and veteran-owned 

businesses. Through this rulemaking, 

HUD is proposing to add a new 

paragraph (a)(7)(ii)(C) to 24 CFR 92.508 

to require participating jurisdictions to 

establish and maintain records of any 

efforts to consider small businesses, 

minority businesses, women’s business 

enterprises, veteran-owned businesses, 

and labor surplus area firms, as 

described in 2 CFR 200.321. HUD’s 

current recordkeeping requirements in 

this section only address HOME 

statutory requirements; HUD is 

proposing this change to clarify that the 

recordkeeping requirements include 

records for groups mentioned within 2 

CFR part 200 even if not mentioned 

within the HOME statute. 

Indirect Costs: §§ 570.206, 576.109, and 

578.63 

Through its 2020 final guidance, OMB 

amended 2 CFR 200.414(f) to expand 

use of the de minimis indirect cost rate 

of 10 percent of modified total direct 

costs (MTDC), defined in 2 CFR 200.1. 

Under OMB’s 2020 changes, § 200.414(f) 

stated that any non-Federal entity that 

does not have a current negotiated 

indirect cost rate, except for a nonFederal entity described in paragraph 

D.1.b of appendix VII to 2 CFR part 

200,39 may elect to charge the de 

minimis rate. 

Through its 2024 final guidance, OMB 

further amended 2 CFR 200.414(f) by, 

among other things, increasing the 

amount of the de minimis indirect cost 

rate from 10 to up to 15 percent of 

MTDC, and as otherwise described 

previously in the ‘‘OMB’s 2024 Final 

Rulemaking and Notification of Final 

Guidance for Federal Financial 

Assistance’’ section in the 

‘‘Background’’ section of this preamble. 

HUD’s regulation at 24 CFR 578.63(b) 

currently states that indirect costs may 

be allocated to eligible activities 

‘‘consistent with an indirect cost rate 

proposal developed in accordance with 

2 CFR part 200, subpart E,’’ (emphasis 

added). This does not contemplate use 

of the de minimis rate, which is 

included under 2 CFR part 200, subpart 

E, but is not considered an indirect cost 

rate proposal. Other HUD regulations 

state that direct costs may be allocated 

to eligible activities ‘‘consistent with 2 

CFR part 200, subpart E,’’ without 

reference to an indirect cost rate 

proposal.40 Therefore, HUD proposes to 

revise language in § 578.63(b) to state 

that indirect costs may be allocated 

consistent with 2 CFR part 200, subpart 

E, and remove reference to an ‘‘indirect 

cost rate proposal.’’ This will end 

confusion over the permissible use of a 

de minimis rate as contemplated by 2 

CFR 200.414 and improve consistency 

with other HUD regulations. 

Under the regulations for several of 

HUD’s Community Planning and 

Development (CPD) programs, the 

programs’ administrative cost caps do 

not limit costs directly related to 

carrying out eligible activities, because 

HUD considers those costs part of the 

activity delivery costs. For example, 

where rental assistance is the eligible 

activity, the costs of writing out and 

mailing the rental assistance checks to 

each property owner are costs of 

providing rental assistance and 

therefore chargeable under the ‘‘rental 

assistance’’ activity. Because some of 

these ‘‘activity delivery costs’’ may be 

classified as indirect costs under 2 CFR 

part 200, some of CPD’s program rules 

(24 CFR parts 576 and 578) include 

provisions to clarify the conditions 

under which indirect costs can be 

charged to eligible activities. These 

conditions are to ensure (1) the 

applicable indirect cost rate and direct 

cost base allow for activity-level 

allocation of indirect costs, and (2) the 

sum of direct and indirect costs charged 

to a specific activity category or to 

administrative costs is within with the 

program’s cost caps. 

However, when reviewing OMB’s 

changes to the part 200 definitions and 

the de minimis indirect cost rate 

requirements, HUD determined that a 

further condition is needed where 

indirect costs are determined using 

modified total direct cost (MTDC). 

Specifically, because part 200 defines 

MTDC at 2 CFR 200.1 to include ‘‘up to 

the first $50,000 of each subaward 

(regardless of the period of performance 

of the subawards under the award),’’ 

and the portion of indirect costs 

determined based on that specific 

amount can only be considered program 

administration costs, HUD proposes to 

amend 24 CFR 576.109(b) and 578.63(b) 

to make sure that the portion of indirect 

costs can only be charged as program 

administration costs, when indirect 

costs are allocated and charged at the 

activity level. 

In addition, HUD invites public 

comments on whether similar 

conditions should be added to other 

CPD program regulations that 

distinguish activity delivery costs from 

program administration costs for 

purposes of determining compliance 

with applicable cost caps (e.g., parts 92, 

93, 570, and 574). 

Section 574.500 Responsibility for 

Grant Administration 

Through its 2024 changes, OMB 

amended 2 CFR 200.342 to require 

Federal agencies to, upon initiating a 

remedy for noncompliance including 

disallowed costs, a corrective action 

plan, or termination, provide a recipient 

an opportunity to object and provide 

information challenging the action. 

Through this rulemaking, HUD is 

proposing conforming amendments to 

its Housing Opportunities for Persons 

With AIDS (HOPWA) program 

enforcement regulation at 24 CFR 

574.500(c) to directly incorporate the 

language and procedure laid out in 

OMB’s revised regulations. HUD is not 

proposing any changes to the first 

sentence of existing paragraph (c). 

HUD’s proposed language replacing the 

second sentence would provide that, 

upon initiating a remedy for 

noncompliance (for example, 

disallowed costs, a corrective action 

plan, or termination), HUD will provide 

the grantee with an opportunity for 

informal consultation, in which the 

grantee may object and provide 

information challenging the action. 

Section 574.540 Deobligation of Funds 

As explained earlier in this preamble, 

OMB revised 2 CFR 200.403(h) to allow 

administrative costs to be incurred until 

the due date of the final report(s) for 

that Federal award. This allows Federal 

financial assistance funds to be used for 

such costs after the period of 

performance. For consistency with this 

revised requirement, HUD is proposing 

to revise 24 CFR 574.540. Rather than 

provide that 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, which is the 

language in HUD’s existing regulation, 

revised § 574.540 would provide that 

the period of performance for the grant 

will be 36 months after the date that 

HUD executes the grant agreement with 

the recipient, unless the grant agreement 

provides for a longer period. The 

proposed change would retain the 

default three-year period of performance 

and HUD’s discretion to amend grant 


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41OMB’s 2024 changes removed the use of the 

term ‘‘match’’ throughout 2 CFR part 200 

provisions, and ‘‘cost sharing’’ as defined by 2 CFR 

200.1 now includes matching, which refers to 

required levels of cost share that must be provided. 

HUD is retaining the use of the word ‘‘matching’’ 

throughout ESG program regulations in 24 CFR part 

576, as this is more accurate and consistent with the 

ESG program statute. See 42 U.S.C. 11375. 

agreements to provide for a longer 

period of performance without needing 

to waive the regulation. HUD is also 

proposing to clarify that ‘‘the 

requirements of this regulation’’ in 

§ 574.540 means 24 CFR part 574, and 

to reorganize the sentences in this 

section. HUD is not proposing any other 

changes to existing requirements in 

§ 574.540. 

Section 576.200 Submission 

Requirements and Grant Approval 

Section 576.200(a) of the Emergency 

Solutions Grants (ESG) program 

regulation currently includes the 

following statement with respect to the 

specific award conditions provision in 2 

CFR 200.207, ‘‘As provided under 2 CFR 

200.207, HUD may impose special 

conditions or restrictions on a grant, if 

the recipient is determined to be high 

risk.’’ HUD is proposing to revise this 

statement to accommodate the changes 

OMB made to the criteria for imposing 

specific conditions as well as to reflect 

OMB’s renumbering of the specific 

conditions provision in part 200 from 2 

CFR 200.207 to 2 CFR 200.208. The 

proposed revision would state that HUD 

may include specific conditions in the 

grant agreement for a State, urban 

county, or metropolitan city as provided 

by 2 CFR 200.208. 

Section 576.201 Matching 

Requirement 

Section 576.201(b) of title 24 of the 

CFR provides the requirements for 

contributions to be recognized as match 

for HUD’s ESG program. 

Through this rulemaking, HUD is 

seeking to provide its prior approval of 

ESG grant recipients to use unrecovered 

indirect costs as match for the ESG 

grant, as permitted by 2 CFR 200.306(c). 

As revised by OMB’s 2020 and 2024 

changes, 2 CFR 200.306(c) provides that 

unrecovered indirect costs may be 

included as part of cost sharing (which 

includes matching, per OMB’s 2024 

changes to the definition of ‘‘cost 

sharing’’ in 2 CFR 200.1 41) with prior 

approval of the Federal agency or passthrough entity. Section 200.306(c) of 

title 2 of the CFR defines ‘‘unrecovered 

indirect cost’’ to mean the difference 

between the amount charged to the 

Federal award and the amount which 

could have been charged to the Federal 

award under the recipient’s or 

subrecipient’s approved indirect cost 

rate. Accordingly, HUD is proposing to 

add a new paragraph (d) in 24 CFR 

576.201 that would permit matching 

contributions to include unrecovered 

indirect costs as described in 2 CFR 

200.306(c). This provision would clarify 

that unrecovered indirect costs may be 

used to satisfy the ESG matching 

requirements. 

HUD is also proposing to remove the 

existing paragraphs (d) through (f) in 

§ 576.201. In HUD’s 2015 final rule, 

HUD revised § 576.201 by revising 

paragraphs (a) through (c) as part of 

HUD’s efforts to update, substitute, or 

correct cross-references and make other 

conforming changes to implement 

OMB’s 2013 Uniform Guidance. 80 FR 

75932. HUD’s amendatory instruction 

number 86 stated, ‘‘Revise § 576.201(a), 

(b), and (c) to read as follows,’’ 80 FR 

75939, and it should have stated 

‘‘Revise § 576.201 to read as follows,’’ to 

remove paragraphs (d) through (f). 

Paragraph (d)(1) refers to OMB circulars 

A–87 and A–122 and former parts of 2 

CFR, which were superseded by 2 CFR 

part 200. See 78 FR 7283. Paragraphs 

(d)(2) and (e) contradict the application 

of 2 CFR 200.306 in § 576.201(b) and (c), 

as amended by HUD’s 2015 final rule. 

Paragraph (f) was made redundant by 

another amendment (number 89) of 

HUD’s 2015 final rule. 80 FR75939. 

HUD is therefore proposing in this 

rulemaking to correct this inadvertent 

error by removing the obsolete, 

redundant, and contradictory 

paragraphs (d) through (f) from 

§ 576.201. 

Section 576.203 Obligation, 

Expenditure, and Payment 

Requirements 

OMB’s 2024 changes to 2 CFR 

200.403(h) and 200.472(b) permit 

administrative costs associated with 

closeout activities to be charged to the 

Federal award during closeout, and 

such costs may be incurred until the 

due date of the final report(s). HUD is 

proposing to revise § 576.203(b) to 

provide for an exception for funds used 

for administrative closeout costs as 

provided by 2 CFR 200.403(h) within 

the sentence stating that the recipient’s 

grant must be expended for eligible 

activity costs within 24 months after the 

date HUD signs the grant agreement 

with the recipient. HUD is also 

proposing minor technical edits to the 

language in this sentence for clarity and 

plain language, but otherwise is not 

proposing further changes to this 

paragraph and section. 

Section 964.230 Audit and 

Administrative Requirements, and 

§ 965.205, Qualified PHA-Owned 

Insurance Entity 

Through its 2020 final guidance, OMB 

amended 2 CFR 200.515 to permit 

auditors to review and make 

determinations regarding auditees’ 

financial statements in accordance with 

a special purpose framework, such as 

cash, modified cash, or regulatory as 

required by State law, in addition to 

generally accepted accounting 

principles (GAAP). OMB’s 2024 final 

guidance made technical revisions to 2 

CFR 200.515, but did not alter the 

underlying substantive requirements. 

HUD’s regulation at 24 CFR 964.230(b) 

currently provides that resident 

management corporations managing a 

development(s) must be audited 

annually by a licensed certified public 

accountant, designated by the 

corporation, in accordance with 

generally accepted auditing standards. 

HUD’s regulation at 24 CFR 

965.205(d)(1) similarly provides that 

certain nonprofit insurance entities 

must prepare and submit (to HUD) 

audits and actuarial reviews, and that 

the annual financial statement must be 

audited by an independent auditor in 

accordance with generally accepted 

auditing standards. HUD is proposing to 

revise § 964.230(a)(2) and (b) and 

§ 965.205(d)(1) to add language that 

permits auditing in accordance with a 

special purpose framework as described 

in 2 CFR 200.515, in addition to 

generally accepted auditing standards. 

This proposed change would conform 

HUD’s regulations to OMB’s change to 

2 CFR 200.515. 

Section 1006.370 Uniform 

Administrative, Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards 

HUD’s regulation at 24 CFR 

1006.370(b)(1)(iii) directly incorporates 

the language from 2 CFR 200.445(b). 

OMB revised 2 CFR 200.445(b) through 

OMB’s 2024 final rule by removing the 

phrase ‘‘regardless of whether reported 

as taxable income to the employees’’ 

because OMB, upon further review, 

found this to be an unnecessary 

clarification. For consistency with 

OMB’s changes, HUD is proposing to 

remove this phrase from the language in 

§ 1006.370(b)(1)(iii). It is sufficient to 

state that housing costs, housing 

allowances, and personal living 

expenses are only allowable as direct 

costs and must be approved by HUD. 


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42 In HUD’s proposed regulatory text, HUD uses 

the term ‘‘Responsible Civil Rights Official.’’ This 

means the Assistant Secretary for Fair Housing and 

Equal Opportunity (FHEO). See 76 FR 73984 and 

https://www.hud.gov/sites/dfiles/FHEO/documents/ 

2021_Sep_Amended_Consolidated_Delegation_

Authority%20_FHEO.pdf. 

43Paragraphs (b) and (c)(5) were previously 

organized under paragraph (a) and (a)(5) of 

§ 200.319 until OMB’s 2020 and 2024 rounds of 

changes. 

44 Including all the sections and paragraphs listed 

in the first sentence of this preamble paragraph 

except 24 CFR 576.404(a). 

Conforming Technical Changes Based 

on HUD’s Experience Implementing 2 

CFR Part 200 

HUD proposes technical, conforming 

amendments to its regulations based on 

its experience implementing 2 CFR part 

200 in programs involving Federal 

financial assistance management and 

administration. These technical, 

conforming changes would improve 

clarity in some of HUD’s regulations 

that cross-reference 2 CFR part 200 or 

specific subparts or provisions. 

Section 5.1006 Certifications and 

Assurances 

In HUD’s existing regulations, e.g., 24 

CFR 1.5(a)(1), there are existing 

requirements that applicable contracts 

and applications for Federal financial 

assistance must include certifications 

and assurances of compliance with 

various cross-cutting Federal 

requirements, including relevant civil 

rights obligations and requirements, as a 

condition for approval and extension of 

any Federal financial assistance. See 

also 24 CFR 3.115, 8.50, and 146.25. 

Currently, these assurances 

requirements are only contained in 

those respective cross-cutting subject 

regulations and not in HUD’s general 

program requirement regulations. HUD 

is therefore proposing to add a new 

section 24 CFR 5.1006 that would, in 

one place, state that every agreement for 

Federal financial assistance that HUD 

executes on or after October 1, 2024, 

with a recipient, including recipients 

provided an exemption to the 

requirements of 2 CFR 25.110, must 

contain or be accompanied by the 

appropriate assurances and 

certifications. 

HUD developed its own Assurances 

and Certifications form, HUD–424B, to 

tailor assurances and certifications to 

HUD programs and to consolidate the 

SF–424B and SF–424D. The new 

§ 5.1006 would state that HUD has 

specified the form HUD–424B be used 

for purposes of meeting requirements in 

relevant regulations, 24 CFR 1.5, 3.115, 

8.50, and 146.25. New § 5.1006 would 

also provide that HUD 42 may require 

specific civil rights assurances be 

provided consistent with those 

authorities, in which case HUD will 

specify the form on which such 

assurances must be made. 

Conflicts of Interest: §§ 92.356, 93.353, 

570.611, 574.625, 576.404, 578.95, 

1000.30, 1003.606, 1006.360 

Several of HUD’s existing conflict of 

interest regulations require technical 

revisions to include a more complete 

scope of applicable conflict of interest 

provisions in 2 CFR part 200 and to 

reflect which 2 CFR part 200 conflict of 

interest requirements have traditionally 

applied, or should apply, in practice for 

procurement by recipients and 

subrecipients of HUD Federal financial 

assistance. 

Section 200.317 of 2 CFR requires 

States and, now under OMB’s 2024 

changes, Indian Tribes, to apply the 

conflict of interest requirements that are 

required under their State or Tribe 

procurement policies when conducting 

procurement transactions under a 

Federal award. If a State or Tribe does 

not have its own procurement policies, 

then it must follow the procurement 

standards in 2 CFR 200.318 through 

200.327. Additionally, under 2 CFR 

200.317, non-State and non-Tribe 

recipients and subrecipients, including 

subrecipients of a State or Indian Tribe, 

must follow the procurement standards 

in 2 CFR 200.318 through 200.327. 

Two sections within this range of 2 

CFR provisions, 2 CFR 200.318 and 

200.319, contain applicable conflict of 

interest provisions. Section 200.318 of 2 

CFR, paragraph (c), includes the 

requirement for recipients and 

subrecipients to maintain written 

standards covering conflicts of interest 

and actions of employees participating 

in contract selection, award, and 

administration; a prohibition on the 

participation of individuals with 

conflicts of interest in the selection, 

award, and administration of a contract 

supported by a Federal award; a 

definition of conflict of interest; and 

other requirements. Section 200.319 of 2 

CFR describes the requirements for 

competition for non-State/non-Tribe 

recipients, subrecipients, and States that 

have chosen to adopt the 2 CFR 200.317 

through 200.327 requirements or similar 

procurement policies. Paragraph (b) of 

§ 200.319 prohibits certain conflicts, 

and paragraph (c)(5) provides that 

organizational conflicts of interest are 

an example of a situation that may 

restrict competition in procurement.43

Through this rulemaking, HUD is 

seeking to provide greater clarity about 

where in 2 CFR part 200 any applicable 

conflict of interest provisions are 

located and to provide recipients and 

subrecipients with accurate notice about 

2 CFR part 200 conflict of interest 

requirements that apply to their 

procurement actions. HUD is proposing 

to revise some of its conflict of interest 

regulations to more accurately cite the 

relevant conflict of interest provisions 

in 2 CFR part 200, and to standardize 

language across various HUD program 

regulations. 

Specifically, HUD is proposing 

changes in 24 CFR 92.356(a), 93.353(a), 

570.611(a)(1), 574.625(a), 576.404(a) and 

(b), 578.95(a), 1000.30(a), 1003.606(a), 

and 1006.360. HUD is proposing to 

update cross-references to refer to 2 CFR 

200.317 through 200.319, with language 

stating that recipients and subrecipients 

must comply with the ‘‘applicable’’ 

conflict of interest requirements in these 

three sections. HUD is proposing to use 

the section numbers, e.g., 2 CFR 200.317 

through 200.319, and not specific 

paragraphs within these sections, e.g., 2 

CFR 200.319(b)(5) and (c), to 

accommodate any further reorganization 

by OMB of the paragraphs in these 

sections. HUD is also proposing to make 

the lead-in language for these 

regulations 44 consistently begin with, 

‘‘When procuring goods and services in 

accordance with 2 CFR part 200, . . . .’’ 

This change will reduce confusion by 

eliminating needless differences in the 

wording of different program 

regulations’ references to the conflict of 

interest requirements 2 CFR part 200 

applies to procurement of goods and 

services under a Federal award. 

Sections 24 CFR 92.356(a), 93.353(a), 

570.611(a)(2), 574.625(a), 576.404(b), 

1000.30(a), and 1003.606(a) would also 

state, ‘‘[i]n all other situations, the 

provisions of this section apply,’’ or 

similar language. These proposed 

changes would provide, consistently 

across certain HUD program regulations, 

that recipients and subrecipients must 

follow one set of requirements (i.e., the 

applicable conflict of interest 

requirements under 2 CFR 200.317 

through 200.319) when procuring goods 

and services under a Federal award and 

must follow another set of requirements 

(i.e., the additional requirements spelled 

out in the conflict of interest section of 

the program regulations) in all other 

situations. 

HUD is also proposing minor 

technical changes in some of the 

conflict of interest provisions. HUD is 

proposing, in § 574.625(a), (b), (c), and 

(d) to include program-specific 

terminology by changing ‘‘recipient’’ to 

‘‘grantee’’ and ‘‘subrecipient’’ to 


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45 89 FR 46618, 46652. 

‘‘project sponsor.’’ In § 578.95(b), HUD 

is proposing changes to add the phrase 

‘‘or collaborative applicant’’ after ‘‘No 

Continuum of Care’’ and before ‘‘board 

member.’’ The Department is revising 

§ 578.95(b) to include collaborative 

applicants because collaborative 

applicants and Continuum of Care board 

members are statutorily prohibited from 

participating in or influencing 

discussions or decisions concerning the 

award of a grant or other financial 

benefits to the organization that the 

member represents. HUD is also 

proposing to add a sentence to the end 

of § 578.95(c) that would prohibit 

recipients and subrecipients from 

having organizational conflicts of 

interests and require these entities to 

maintain standards of conduct covering 

organizational conflicts of interest 

described in 2 CFR 200.318. The 

Department is revising § 578.95(c) to 

clarify that under the CoC program 

recipients and subrecipients are 

prohibited from having organizational 

conflicts of interest, consistent with 

applicable 2 CFR part 200 requirements. 

Section 92.505 Applicability of 

Uniform Administrative Requirements 

In a proposed rule published May 29, 

2024, titled ‘‘HOME Investment 

Partnerships Program: Program Updates 

and Streamlining,’’ 89 FR 46618 

(‘‘HUD’s proposed HOME rule’’), HUD 

proposed amendments to 24 CFR 92.505 

to revise the applicability of 2 CFR part 

200 to participating jurisdictions, State 

recipients, and subrecipients receiving 

HOME funds, to exclude 2 CFR 200.328 

and 200.344. For more information on 

why HUD proposed to exclude these 

provisions from applicability to HOME 

program assistance, see HUD’s proposed 

HOME rule.45

HUD is, through this rulemaking, not 

changing the proposal to exclude 

applicability of 2 CFR 200.328 and 

200.344. HUD is additionally proposing 

to exclude applicability of 2 CFR 

200.329(c) because 2 CFR 200.329(c) 

requires reporting on a different cycle 

than is required under the HOME 

program regulations and HUD is seeking 

to provide a more flexible reporting than 

the annual reporting of nonconstruction performance requirements 

in that regulation. 

Income From Equipment Sales: 

§§ 570.502, 1000.26, 1003.501 

Several sections in title 24 of the CFR 

state that 2 CFR 200.313, Equipment, 

applies except that when the equipment 

is sold, the proceeds shall be considered 

and treated as program income. For the 

Entitlement Community Development 

Block Grant program, see 

§ 570.502(a)(6); for Native American 

housing activities, see § 1000.26(a)(8); 

and for the Community Development 

Block Grant program for Indian tribes 

and Alaska native villages, see 

§ 1003.501(a)(6). These sections do not 

account for other sections in title 24 of 

the CFR that state that income received 

by a recipient and its subrecipients in a 

single year that, in total, is less than 

$25,000 does not constitute program 

income. For the Entitlement Community 

Development Block Grant program, see 

§ 570.500(a)(4)(i); for Native American 

housing activities, see § 1000.62(b); and 

for the Community Development Block 

Grant program for Indian tribes and 

Alaska native villages, see 

§ 1003.503(b)(4). HUD proposes to 

revise §§ 570.502(a)(6), 1000.26(a)(8), 

and 1003.501(a)(6), to provide for a 

$25,000 de minimis exception. In other 

words, proceeds from equipment sales 

shall not be considered and treated as 

program income if the total income, 

including income from equipment sales, 

of a recipient and its subrecipients totals 

less than $25,000. HUD also proposes to 

revise § 570.502(a)(6) by reorganizing 

the two sentences in existing paragraph 

(a)(6) into two paragraphs (a)(6)(i) and 

(ii) for clarity. 

Recordkeeping: §§ 574.530 and 576.500 

HUD’s consolidated plan regulations 

require access to records related to a 

jurisdiction’s records related to the 

consolidated plan and use of assistance 

under the applicable programs during 

the preceding five years. See 24 CFR 

91.105(h) and 91.115(g). Section 

574.530 in title 24 of the CFR currently 

provides for a four-year record retention 

period. Following OMB’s changes to 2 

CFR part 200, 2 CFR 200.334 now states 

that the recipient and subrecipient must 

retain all Federal award records for 

three years from the date of final 

financial report submission. To resolve 

these discrepancies, HUD is proposing 

to reorganize and revise 24 CFR 

574.530, regarding recordkeeping for 

HUD’s HOPWA program. New proposed 

paragraph (a)(1) would provide that, for 

formula grants, grantees ensure that all 

grant records are maintained for the 

longer of five years or the applicable 

record retention period provided in 2 

CFR 200.334. Paragraph (a)(2) would 

provide that for all other grants, grantees 

must ensure that all grant records are 

maintained for the applicable record 

retention period provided in 2 CFR 

200.334. Paragraph (a)(3) would require 

grantees to ensure maintenance of all 

records for real property subject to 

minimum use requirements are 

maintained for at least three years after 

final disposition. This language would 

account both for HUD’s consolidated 

plan access to records requirements and 

OMB’s requirements in 2 CFR 200.334, 

including for recipients and 

subrecipients to retain all Federal award 

records from three years from the date 

of submission of their final financial 

report. (This has been a longstanding 

requirement; OMB did not substantively 

revise 2 CFR 200.334 in its 2020 and 

2024 changes.) 

Existing paragraphs (a) through (c) of 

§ 574.530, which describe the types of 

data and information that grantees must 

maintain in records, would not be 

substantively changed. HUD is only 

proposing to reorganize these 

paragraphs into a new (b)(1) through (3). 

HUD is also proposing changes to 

§ 576.500 to bring the recordkeeping 

requirements for HUD’s ESG program 

into greater alignment with 2 CFR part 

200, where the recordkeeping 

requirements in 2 CFR part 200 would 

not undermine HUD’s implementation 

of the statutory requirements for ESG 

program. For example, 2 CFR part 200 

requires records to be kept for longer 

periods to account for certain 

circumstances or special purposes, and 

it is possible to satisfy both the 

minimum period 2 CFR part 200 would 

require the records to be retained and 

the minimum period HUD currently 

requires the records to be retained to 

implement the statutory requirements 

for ESG. So, HUD is proposing to revise 

the introductory text for § 576.500(y) to 

state that all records related to a 

recipient’s grant must be kept for the 

longer of 5 years, the minimum period 

described in § 576.500(y)(1) through (3), 

or the minimum period provided by 2 

CFR part 200 (2 CFR 200.334) for the 

specific situation or record. Likewise, 

HUD is proposing to change the 

language in § 576.500(y)(1) through (3) 

from ‘‘records must be retained for 5 

years’’ to ‘‘records must be kept for at 

least 5 years.’’ In addition, HUD 

proposes to update a cross-reference to 

2 CFR 200.336, to 2 CFR 200.337, in 

§ 576.500(z) to account for OMB’s 

changes to 2 CFR part 200 section 

numbers. Finally, HUD is also 

proposing to remove the sentence, 

‘‘Copies made by microfilming, 

photocopying, or similar methods may 

be substituted for their original 

records,’’ because it is no longer 

necessary or useful, considering what 2 

CFR 200.336 provides on methods for 

collection, transmission, and storage of 

information. 


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46See, e.g., 24 CFR 578.99(e). 

47E.g., 2 CFR 200.100(a)(1), 200.102(b), 200.106. 

48https://www.hud.gov/sites/dfiles/PIH/ 

documents/PIH-2016-20.pdf. 

49See part III. Questions for Public Comment, 

question 2, in this proposed rule’s preamble. 

50 25 U.S.C. 4133(g). 

Section 574.605 Applicability of 

Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards 

Section 574.605 currently states that 2 

CFR part 200 provisions apply to 

Housing Opportunities for Persons With 

AIDS (HOPWA) grants, but it does not 

specify any exceptions. As a practical 

matter, 2 CFR part 200 provisions do not 

apply to HOPWA grants without 

exception. Section 200.101(d) of title 2 

of the CFR contemplates this and states 

that where Federal statutes or 

regulations conflict with 2 CFR part 200 

provisions, Federal statutes or 

regulations govern. Therefore, HUD is 

revising § 574.605 to clarify this point 

and add language that states 2 CFR part 

200 provisions apply except where they 

are inconsistent with relevant HOPWA 

statutes—the AIDS Housing 

Opportunity Act and title I of the 

Cranston-Gonzalez National Affordable 

Housing Act—or implementing 

regulations in 24 CFR part 574 or 91. 

This also improves consistency with 

other HUD regulations for other 

programs, which specify that the 

relevant Federal statutes and regulations 

govern where 2 CFR part 200 provisions 

conflict with those statutes and 

regulations,46 and with 2 CFR part 200 

provisions that speak to the precedence 

of Federal statutes over 2 CFR part 200 

provisions.47

Section 970.1 Purpose 

Section 970.1 of title 24 of the CFR 

currently provides that the regulations 

in 2 CFR part 200 are not applicable to 

24 CFR part 970, HUD’s regulations for 

the Public Housing Program— 

Demolition or Disposition of Public 

Housing Projects. However, the Office of 

Public and Indian Housing (PIH) Notice 

2016–20 48 provides that, as an 

alternative to disposition of public 

housing property under section 18 of 

the United States Housing Act of 1937 

and 24 CFR part 970, with PIH Special 

Application Center approval, public 

housing authorities (PHAs) are 

permitted to retain public housing 

property in accordance with 2 CFR 

200.311. This rulemaking provides the 2 

CFR part 200 disposition instructions 

for PHAs’ retention of certain public 

housing real property. Therefore, in this 

rulemaking, HUD is proposing to revise 

the last sentence of § 970.1 to state that 

the regulations in 2 CFR part 200 are not 

applicable except where the PHA 

requests to retain the public housing 

property, in which case 2 CFR 

200.311(d)(1) applies; and where the 

PHA disposes of equipment or supplies, 

in which case 2 CFR 200.313 and 

200.314 apply. 

Applicability of Administrative 

Requirements: §§ 1000.26 and 1003.501 

Through this rulemaking, HUD is 

proposing to add a new paragraph (a)(1) 

to § 1000.26 to clarify that the definition 

for ‘‘Indian Tribe’’ in section 104 of 

NAHASDA (25 U.S.C. 4103) will apply 

instead of the definition of ‘‘Indian 

Tribe’’ in 2 CFR 200.1. As provided in 

2 CFR 200.1, definitions in Federal 

statutes or regulations that apply to 

specific programs take precedence over 

the definitions in 2 CFR 200.1. HUD is 

proposing such a change with the 

definition of ‘‘Indian Tribe’’ to ensure 

the use of the broader definition under 

NAHASDA. HUD is proposing a similar 

change to § 1003.501, by adding a new 

paragraph (a)(1), to ensure the broader 

definition of ‘‘Indian tribe’’ under the 

Housing and Community Development 

Act of 1974 is used when applying part 

200 to the Indian Community 

Development Block Grant program. 

HUD’s Indian Housing Block Grant 

(IHBG) program regulation at 24 CFR 

1000.26(a)(10) currently excepts 2 CFR 

200.317 from the requirements of 2 CFR 

part 200 that recipients of IHBG 

assistance must comply with. Through 

its 2024 changes, OMB revised 2 CFR 

200.317 and made the provision 

applicable to Indian tribes as well as 

States. Under OMB’s 2024 changes, 

applicability of 2 CFR 200.317 does not 

extend to Tribally Designated Housing 

Entities, which are also eligible to be 

direct recipients of IHBG funds. To align 

HUD’s IHBG program regulations with 

OMB’s change, HUD is proposing to 

revise existing § 1000.26(a)(10) (which 

this rule proposes to renumber as 

paragraph (a)(11) due to the proposed 

addition of a new § 1000.26(a)(1)) to 

state that 2 CFR 200.317 does apply to 

Indian tribes, as that term is defined 

under NAHASDA, but does not apply to 

TDHEs receiving grants on an Indian 

tribe’s behalf. Additionally, to align 

OMB’s changes to 200.317 with 

NAHASDA, HUD is proposing new 

paragraphs (a)(11)(i) and (ii) in 

§ 1000.26 to clarify that statutory 

requirements under NAHASDA limiting 

competitive procurements when the 

value of goods and services is less than 

$5,000 and authorization for the use of 

Federal supply sources in procurement 

apply to the procurements by tribes 

under 2 CFR 200.317. 

Paragraph (a)(11) of § 1000.26 

currently applies 2 CFR 200.318 through 

200.327 as modified by that paragraph 

(a)(11). HUD is proposing to renumber 

this paragraph as (a)(12) (due to the 

proposed addition of a new 

§ 1000.26(a)(1)) and, as discussed later 

in this preamble,49 to add a new 

paragraph (a)(12)(i) that would state that 

2 CFR 200.318 through 200.327 apply 

when a Tribe does not have their own 

policies and procedures for 

procurement with non-Federal funds or 

when a TDHE does not follow the 

policies and procedures for 

procurement with non-Federal funds of 

the Tribe they serve. 

Existing paragraph (a)(11)(i), which 

would become paragraph (a)(12)(ii) 

through this proposed rule, provides 

that a recipient is not required to 

comply with 2 CFR 200.318 through 

200.326 (2 CFR 200.326 is now 2 CFR 

200.327 after OMB’s 2020 changes) with 

respect to procurements, using grants 

under NAHASDA, of goods and services 

with a value of less than $5,000. HUD 

is proposing to add language that would 

except application of 2 CFR 200.318 

through 200.327 for such procurements 

of an ‘‘other higher amount as may be 

established in NAHASDA,’’ in addition 

to those valued under $5,000. This 

change would accommodate any future 

increases to the amount in NAHASDA’s 

statutory de minimis procurement 

exemption.50

Income From Sales of Supplies: 

§§ 1000.26, 1003.501 

Several sections in title 24 of the CFR 

state that 2 CFR 200.314, Supplies, 

applies except that when the supplies 

are sold, the proceeds shall be 

considered and treated as program 

income. For Native American housing 

activities, see existing § 1000.26(a)(9); 

for the Community Development Block 

Grant program for Indian tribes and 

Alaska native villages, see existing 

§ 1003.501(a)(7). These sections do not 

account for other sections in title 24 of 

the CFR that state that income received 

by a recipient and its subrecipients in a 

single year that, in total, is less than 

$25,000 does not constitute program 

income. For Native American housing 

activities, see § 1000.62(b); and for the 

Community Development Block Grant 

program for Indian tribes and Alaska 

native villages, see § 1003.503(b)(4). For 

consistency, HUD is proposing to revise 

§ 1000.26(a)(9), which would be 

designated paragraph (a)(10) under this 

proposed rule, and § 1003.501(a)(7), 

which would be designated paragraph 

(a)(8) under this proposed rule, to 

provide for a $25,000 de minimis 


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51 Id. 

52Under this proposed rule, § 1000.26(a)(3) 

would become § 1000.26(a)(4). 

53See sections 1337 and 1338 of the Federal 

Housing Enterprises Financial Safety and 

Soundness Act of 1992 (12 U.S.C. 4567 and 4568), 

the statutes establishing the HTF program and its 

funding mechanism. 

exception, as in existing §§ 1000.62(b) 

and 1003.503(b)(4). 

Section 1006.370 Uniform 

Administrative, Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards 

To correct a drafting error in HUD’s 

2015 rulemaking,51 and to make 

§ 1006.370(b)(2) more consistent with 

other HUD program regulations 

regarding compensation for consultant 

services, for example, 24 CFR 

570.200(d)(1), HUD is proposing to 

amend § 1006.370(b)(2) to add the 

phrase ‘‘more than a reasonable rate of 

compensation for personal services paid 

with NHHBG’’ after the word ‘‘receive’’ 

and before the word ‘‘funds.’’ This 

amendment would mean that 

§ 1006.370(b)(2) requires that no person 

providing consultant services in an 

employer-employee type of relationship 

shall receive more than a reasonable rate 

of compensation for personal services 

paid with NHHBG funds. 

HUD is also proposing to update an 

outdated aspect of NHHBG program 

regulations. HUD’s NHHBG program 

regulations are modeled off its IHBG 

program regulations. HUD is proposing 

to add a new paragraph (c) to § 1006.370 

that would provide that 2 CFR 200.305 

applies except HUD must not require 

the sole recipient of NHHBG assistance, 

the Department of Hawaiian Home 

Lands (DHHL), to expend retained 

program income before drawing down 

or expending NHHBG funds. This 

proposed change would align NHHBG 

program regulations with the 

corresponding Indian Housing Block 

Grant regulation, existing 24 CFR 

1000.26(a)(3),52 which permits Tribes 

and TDHEs to spend grant funds before 

spending down all their program 

income. To enable this change to take 

effect, HUD is proposing to remove 

§ 1006.340(b)(3), which provides that, as 

part of DHHL’s authority to retain 

program income, DHHL must disburse 

program income before disbursing 

additional NHHBG funds in accordance 

with 2 CFR 200.305. HUD is also 

proposing to add language to existing 

§ 1006.370(a) that would provide that 

DHHL and its subrecipients receiving 

NHHBG funds must comply with the 

requirements and standards in 2 CFR 

part 200 ‘‘except as otherwise provided 

by this section,’’ to clarify that 

paragraphs (b) and (c) of § 1006.370 

provide for exceptions to 2 CFR part 200 

requirements. 

Substantive Changes Based on HUD’s 

Experience Implementing 2 CFR Part 

200 and the Housing Trust Fund (HTF) 

Program 

Describing Period of Performance in the 

HTF Program, Closeout of HTF Grant 

Awards: §§ 93.400 and 93.409 

HUD is proposing HTF closeout 

regulations at § 93.409 to establish 

program-specific procedures and better 

align programmatic and administrative 

requirements for grant closeout. HUD’s 

existing regulation at § 93.405 applies 

the 2 CFR part 200 closeout 

requirements at 2 CFR 200.344, which 

are very specific as to the timing of 

closeouts and reporting by grantees after 

the end of the grant’s period of 

performance, as set forth in the grant 

agreement. Rather than adopt the 

specific requirements of 2 CFR 200.344 

for the HTF program, HUD is instead 

proposing program-specific closeout 

requirements at § 93.409 to provide HTF 

grantees greater flexibility to request 

additional time, if needed, to meet 

certain program requirements, such as 

meeting project completion 

requirements. (As discussed elsewhere 

in this preamble, HUD is also proposing 

in § 93.405 to add 2 CFR 200.344 as one 

of the 2 CFR part 200 provisions that 

would not apply to grantees and 

subgrantees receiving HTF funds.) 

HUD recognizes that there are many 

things that could disrupt an HTF 

grantee’s intended timeline for activity 

completion. To complete all program 

activities, including, but not limited to, 

satisfying reporting requirements, 

grantees are permitted to request an 

extension of one year beyond the nineyear period of performance, as 

identified in the grant agreement, for 

good cause. 

The proposed rule at § 93.409(a) 

would include elements from the 

current closeout process for HTF grants. 

The proposed rule at § 93.409(a) 

describes the closeout process, and 

states that HUD will close out a grant 

after the period of performance has 

ended. A grantee must complete all the 

required activities and closeout actions 

for the grant, as required by HUD. 

Otherwise, proposed § 93.409(a)(1) 

states that HUD will close out the grant 

based on the information available, 

including individual grants or multiple 

grants. 

Proposed § 93.409(a)(2) explains that 

to prepare for closeout, before the 

budget period of the grant ends, the 

grantee must review all the eligible 

activities under the grant and reconcile 

in accordance with proposed 

§ 93.409(a)(2)(i) and (ii). Proposed 

§ 93.409(a)(2)(i) requires that for all 

eligible costs incurred under the grant 

and not yet drawn down, the grantee 

must draw the funds down in a timely 

manner. Proposed § 93.40(a)(2)(ii) states 

that the grantee must promptly refund 

to the proper accounts any previously 

disbursed balances of unobligated case 

paid in advance. These refunds must be 

completed before the reports in the 

proposed § 93.409(b). Additionally, 

unlike other programs, since the HTF 

funds are not appropriated and are not 

required to be returned to the U.S. 

Treasury, proposed § 93.409(a)(3) 

requires HUD to reallocate the grant 

funds in accordance with the regulation 

at § 93.54. 

In § 93.409(a)(4)(i), HUD is proposing 

a nine-year period of performance for 

the HTF program, with the ability to 

extend the period of performance by a 

year. Given that HUD is proposing this 

period of performance in 24 CFR 

93.409(a)(4)(i) in this rulemaking and 

that period of performance is not 

consistent with the current expenditure 

deadline in § 93.400(d)(2), HUD is 

proposing to revise the expenditure 

deadline to avoid misalignment of 

program requirements and grantee 

responsibilities. HUD is also proposing 

that § 93.400(d)(2) be revised to state 

that HUD will reduce or recapture HTF 

grants that remain unexpended after the 

date of expiration of the grant’s period 

of performance, as described in 24 CFR 

93.409(a)(4). Due to the HTF program’s 

unique source of funding, which is 

through an allocation of a set-aside of 

funds earned by the Federal Home Loan 

Mortgage Corporation and the Federal 

National Mortgage Association,53 HUD 

is not required to cancel HTF grants 

under 31 U.S.C. 1552(a) after a certain 

time period, and instead is reallocating 

any recaptured funds to HTF grantees in 

accordance with § 93.54. The revisions 

to §§ 93.409 and 93.400(d)(2) would 

enable consistent application of 

recapture and reallocation requirements 

including better defining the HTF 

grantee’s period of performance and 

closeout responsibilities. These changes 

will avoid burdensome and misaligned 

expenditure, budget period, and period 

of performance requirements and will 

prevent inconsistent application of 

reporting and closeout requirements. 

These proposed regulatory revisions 

would better enable HTF grantees to 

administer the HTF program in their 

jurisdictions. 

Proposed § 93.409(a)(4)(ii) would also 

establish that HUD may report an HTF 


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54 89 FR 46618. 

grantee’s material failure to comply with 

the terms and conditions of the Federal 

award or closeout requirements in 

SAM.gov and pursue other enforcement 

actions in 2 CFR 200.339. Under 

proposed § 93.409(a)(5), a grantee may 

request, and HUD may provide, an 

extension of the performance period or 

closeout deadlines for good cause. Even 

if HUD approves an extension pursuant 

to the proposed § 93.409, an HTF 

grantee must still expend its funds by 

the end of the grant’s budget period. If 

the grantee fails to expend all its funds 

by the end of the grant’s budget period, 

HUD shall recapture and reallocate the 

grant funds. Further, the proposed rule 

would clarify that certain requirements 

survive grant closeout. While this is not 

a change from the current requirements, 

HUD is taking the opportunity to clarify 

that closeout of a HTF grant does not 

relieve a grantee from project oversight 

in accordance with 24 CFR part 93 for 

as long as specified in the requirements 

applicable to the assisted project and 

grantee. 

Proposed § 93.409(b) specifies the 

actions that must be taken for closeout 

of a grant, including: 

• submitting a Federal Financial 

Report; 

• demonstrating that the grantee has 

fulfilled all programmatic and 

administrative requirements for the 

project within the period of 

performance; 

• entering all data into the 

computerized disbursement and 

information system, demonstrating that 

all HTF units were occupied by eligible 

occupants (including inputting correct 

beneficiary data) within one year of the 

end of the period of performance; 

• resolving all finding associated with 

the grant; 

• carrying out all responsibilities 

under the grant agreement and 

applicable laws; and 

• completing a closeout certification 

that 

Æ identifies the grant being closed 

out, 

Æ any funds being returned to HUD, 

Æ certifies compliance with 

recordkeeping requirements, monitoring 

and enforcement of HUD requirements, 

Æ certifies compliance with program 

income, 

Æ states that all actions required 

under 2 CFR 2003.44 for both the 

grantee and subgrantee have been taken, 

Æ explains any other provisions 

appropriate to special circumstances of 

the grant closeout, 

Æ acknowledges future monitoring, 

and 

Æ certifies that unless otherwise 

provided the Consolidated Plan for the 

grantee remains in effect until 

expiration of the program year covered 

by the most recent Consolidated Plan. 

Proposed paragraph § 93.409(c) 

explains that regardless of closeout of 

the grant, the rights and requirements 

under 2 CFR 200.345 remain in effect. 

These include the ability for HUD to 

disallow costs based on future audits, 

the requirement that the grantee comply 

with § 93.407 and § 93.408, record 

retention policies in 2 CFR 200.345, 

monitoring and enforcement of all 

requirements in 24 CFR part 93 that 

apply to the grant for the period of 

affordability specified in the written 

agreement with the owner, compliance 

with program income requirements in 

§ 93.403, compliance with the 

requirement that the grantee return any 

funds due as a result of later refunds, 

corrections or other transactions, and 

compliance with audit requirements. 

Section 93.405 Applicability of 

Uniform Administrative Requirements, 

Cost Principles, and Audits 

HUD’s existing regulation at § 93.405 

applies 2 CFR part 200 to grantees and 

subgrantees receiving HTF funds, except 

for certain provisions. In this 

rulemaking, HUD is proposing to add 

five provisions to the list of exceptions: 

2 CFR 200.308, 200.312, 200.328, 

200.335, and 200.344 (except as 

provided in § 93.409). HUD is proposing 

some of these exceptions because, 

among other reasons, doing so would 

align the HTF program regulations with 

the proposed HOME program 

regulations in HUD’s recent proposed 

rule for the HOME program.54 The 

specific reasoning for each provision is 

as follows: 

• HUD is proposing to except 

application of 2 CFR 200.308 because its 

requirements are inconsistent with HTF 

program rules governing downpayment 

assistance and application of those 

requirements would prove unduly 

burdensome given the current reporting 

requirements in 24 CFR 93.407 and 

93.408. 

• HUD is proposing to except 

application of 2 CFR 200.312 because 

Federally owned and exempt real 

property are not features of the HTF 

program. Additionally, HUD is 

proposing this exception to align with 

HOME program regulations at 24 CFR 

92.205; the HOME and HTF programs 

treat acquired real property similarly, 

and HTF’s approach is modeled after 

the HOME program’s approach. 

• HUD is proposing to except 

application of 2 CFR 200.328 to align 

HTF program requirements and 

regulations with those of the HOME 

program. Both programs have the same 

Integrated Disbursement and 

Information System (IDIS) financial 

reporting requirements, and those 

requirements do not align with the 

annual or quarterly cycle described in 2 

CFR 200.328. Instead, the HOME and 

HTF financial reporting requirements 

are performed as needed and pursuant 

to programmatic or regulatory 

milestones, such as project completion. 

• HUD is proposing to except 

application of 2 CFR 200.335 to align 

HOME and HTF program requirements 

and because the 2 CFR provision 

conflicts with existing recordkeeping 

requirements in 24 CFR part 93. 

• As explained earlier in this 

preamble, the requirements at 2 CFR 

200.344 are very specific as to the 

timing of closeouts and reporting by 

grantees after the end of the grant’s 

period of performance, as set forth in 

the grant agreement. HUD is proposing 

to except application of 2 CFR 200.344 

for the HTF program and, in lieu, apply 

program-specific requirements under 

this rule’s proposed revisions to 24 CFR 

93.400 and 93.409, to provide grantees 

more flexibility and time, where 

needed, to meet program requirements 

such as project completion 

requirements, and to align HTF 

regulations with HOME program 

regulations. 

As explained elsewhere in this 

preamble, HUD is proposing to except 

application of 2 CFR 200.329(c) in the 

HOME program regulations. For the 

HTF program, § 93.405 already excludes 

application of this provision, which was 

previously numbered 2 CFR 200.328(b) 

before OMB’s 2020 and 2024 changes. 

As under the HOME program, 2 CFR 

200.329(c)’s reporting requirements 

conflict with those for the HTF program 

regulations and HUD is seeking to 

provide a more flexible reporting than 

the annual reporting of nonconstruction performance requirements 

under 2 CFR 200.329(c). Therefore, HUD 

is proposing to continue to exclude 

application of 2 CFR 200.329(c)’s 

requirements for the HTF program, and 

to update the cross-reference consistent 

with OMB’s changes. 

Changes to HUD’s Title VI, Section 108, 

Section 184, and 184A Loan Guarantee 

Program Regulations 

SAM.gov Registration and Acquiring a 

UEI Under 2 CFR 25.105: §§ 570.707, 

1000.438, 1005.219(b), and 1007.50(e) 

As explained earlier in this preamble, 

through its 2024 final guidance, OMB 

revised 2 CFR 25.105 by clarifying that 

for-profit lenders participating in loan 


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55Title VI in this NPRM refers to the Title VI of 

NAHASDA and not Title VI of the Civil Rights Act 

of 1964, 42 U.S.C. 2000d–1 et seq.; 24 CFR part 1. 

56 42 U.S.C. 5308(r)(4) states: 

(4) Effect of laws 

No State or local law, and no Federal law, shall 

preclude or limit the exercise by the Secretary of— 

(A) the power to contract with respect to public 

offerings and other sales of notes, trust certificates, 

and other obligations guaranteed under this section 

upon such terms and conditions as the Secretary 

deems appropriate; 

(B) the right to enforce any such contract by any 

means deemed appropriate by the Secretary; and 

(C) any ownership rights of the Secretary, as 

applicable, in notes, certificates, or other 

obligations guaranteed under this section, or 

constituting the trust or pool against which trust 

certificates, or other obligations guaranteed under 

this section, are offered. 

57See 2 CFR 200.101(b) and table 1 to paragraph 

(b), https://www.trumpadministration.archives.

performance.gov/CAP/20200812-2-CFR-RevisionRedline_Final.pdf. 

58As 2 CFR 200.203 requires HUD to ensure 

Federal programs are listed under the Federal 

Assistance Listings, and HUD already complies 

with this provision for HUD’s Section 184 and 184A 

loan guarantee programs, the change in entities 

covered for purposes of 2 CFR 200.203 does not 

result in any actual change for these programs. 

59 2 CFR 200.101(b)(5) provides, ‘‘(5) Subpart F 

(Audit Requirements) only applies to the following 

items when awarded to a non-Federal entity: . . . 

(iii) Agreements for loans, loan guarantees, interest 

subsidies, and insurance; . . . .’’ The Single Audit 

Act as codified may be found at 31 U.S.C. chapter 

75. OMB’s 2024 final rule and final guidance may 

be found at 89 FR 30046. 

60 2 CFR 200.101(b)(3)(ii) provides, ‘‘(ii) Section 

200.216 (Prohibition on certain telecommunications 

and video surveillance equipment or services) 

applies to loans and grants (see Pub. L. 115–232, 

Continued 

guarantee programs are required to 

register with SAM.gov and acquire a 

UEI. The revised provisions applying 

the UEI requirements and registration in 

the System of Award Management 

(SAM) in 2 CFR part 25 apply to lenders 

and holders of notes guaranteed under 

various HUD programs, including the 

Title VI,55 Section 184, and Section 

184A Loan Guarantee Programs. 

Through this rulemaking, HUD is 

proposing conforming amendments to 

its Community Development Block 

Grant program regulations (24 CFR part 

570), Native American Housing 

Activities regulations (24 CFR part 

1000), Loan Guarantee for Indian 

Housing program regulations (24 CFR 

part 1005) and Loan Guarantee for 

Native Hawaiian Housing program 

regulations (24 CFR part 1007), to add 

language specifying that certain entities, 

such as holders and lenders, must 

complete entity validations and acquire 

a UEI in SAM.gov per 2 CFR 25.105. 

HUD is proposing to add a new 

paragraph (d) in 24 CFR 570.707, add a 

new § 1000.438 in 24 CFR part 1000, 

add a new paragraph (b) to 24 CFR 

1005.219, and add a new paragraph (e) 

to 24 CFR 1007.50 to clarify which 

entities must complete entity 

validations and acquire a UEI in 

SAM.gov per 2 CFR 25.105. 

For the Community Development 

Block Program and § 570.707, applying 

the UEI and SAM registration 

requirements to lenders and holders of 

notes under the Section 108 Loan 

Guarantee program would conflict with 

the statutory provisions of section 

108(r)(4) of the Housing and Community 

Development Act of 1974 (42 U.S.C. 

5308(r)(4)) 56 because it would impair 

the Secretary’s ability to issue freely 

marketable securities through issuance 

of a public offering. Requiring each 

holder of a Note issued through a public 

offering to obtain a UEI and register in 

SAM before purchasing a security on 

the open market would limit the eligible 

pool of investors for the security and 

negatively affect pricing. This would be 

expressly against the statutory intent for 

the Section 108 Loan Guarantee 

program. 

Moreover, HUD has determined that 

the beneficiary of a loan guaranteed 

under section 108 is properly the public 

entity or State that applies for the loan 

and not the interim lender or the holder 

of the Note after a public offering. 

Section 108 of the Housing and 

Community Development Act (42 U.S.C. 

5308), and the program regulations at 24 

CFR part 570, subpart M, were written 

to require that the public entity or State 

apply for the loan and contract directly 

with the Secretary to provide necessary 

security to enable the Secretary to 

guarantee the Loan. This has also been 

how the Department has treated the 

obligation to obtain a UEI and register 

in SAM. Only the borrower of a loan 

guaranteed under section 108 must 

obtain a UEI and register in SAM. 

Therefore, HUD is proposing to add a 

new paragraph (d) to § 570.707 that 

would require public entities and States 

to complete entity validations and 

acquire a UEI in SAM.gov in accordance 

with 2 CFR 25.105 in order to apply for 

and obtain a loan guaranteed under 24 

CFR part 570, subpart M. The lender or 

holder of a note guaranteed under that 

subpart would not be subject to this 

requirement, and HUD’s proposed 

regulation states this directly. 

Compliance With Audit Requirements 

Under 2 CFR Part 200, Subpart F: 

§§ 1005.219(c) and 1007.50(f) 

Prior to OMB’s 2020 and 2024 

changes, 2 CFR part 200, subpart F, 

applied to ‘‘[A]greements for loans, 

loans guarantees, interest subsidies, and 

insurance and other forms of Federal 

Financial Assistance as defined by the 

Single Audit Act Amendment of 

1996.’’ 57 Under the Single Audit Act, 

Federal financial assistance is defined to 

mean assistance that ‘‘non-Federal 

entities receive or administer in the 

form of . . . loan guarantees . . .,’’ 31 

U.S.C. 7501(a)(5), and non-Federal 

entity is defined to include States, local 

governments, or nonprofit 

organizations. 31 U.S.C. 7501(a)(13). 

OMB’s 2020 and 2024 changes do not 

substantively alter this applicability. 

OMB’s 2024 changes at 2 CFR 

200.101(b)(5) provide that 2 CFR part 

200, subpart F, applies to agreements for 

loan guarantees only when awarded to 

a non-Federal entity. Non-Federal entity 

as defined by 2 CFR 200.1 includes 

more entity types than does the Single 

Audit Act, and means a State, local 

government, Indian Tribe, Institution of 

Higher Education, or nonprofit 

organization that carries out a Federal 

award as a recipient or subrecipient. 

Prior to this rulemaking, HUD’s 

Section 184 and 184A program 

regulations did not specify that these 

programs must comply with the audit 

requirements under 2 CFR part 200, 

subpart F, despite the applicability of 

subpart F to these programs. HUD is 

seeking to clarify in its Section 184 and 

184A program regulations that lenders 

and holders of loan guarantees that are 

States, local governments, Tribes (for 

section 184 program only), or nonprofit 

organizations, must comply with the 

audit requirements of 2 CFR part 200, 

subpart F but that this requirement does 

not extend to for-profit entities. HUD is 

proposing, in this rulemaking, to add 

new §§ 1005.219(c) and 1007.50(f) with 

language to this effect. 

As explained earlier in this preamble, 

OMB revised the definition of Federal 

financial assistance in 2 CFR 200.1. The 

change from ‘‘non-Federal entities’’ to 

‘‘recipients and subrecipients,’’ means 

that for-profit entities are now included 

for purposes of the definition of Federal 

financial assistance. With this 

definition alone, OMB’s changes would 

mean that the 2 CFR part 200 provisions 

listed in paragraphs (2) and (3) of the 

Federal financial assistance definition, 

2 CFR 200.203 and subpart F, and 2 CFR 

200.216, respectively, apply to Section 

184 and 184A loan guarantee program 

assistance received or administered by 

for-profit entities. However, after review 

of 2 CFR 200.203; 58 2 CFR 200.101(b)(5) 

and the preamble of OMB’s 2024 final 

rule and final guidance, for 2 CFR part 

200, subpart F; 59 and 2 CFR 

200.101(b)(3)(ii) and section 889 of the 

John S. McCain National Defense 

Authorization Act for Fiscal Year 2019, 

for 2 CFR 200.216; 60 HUD has 


khammond on DSK9W7S144PROD with PROPOSALS
107088 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 

Div. A, Title VIII, § 889, as amended).’’ The John S. 

McCain National Defense Authorization Act for 

Fiscal Year 2019 may be found at Public Law 115– 

232. 

61HUD is proposing changes to capture the 

exception by revising § 1000.26(a)(9), (11), and (12) 

in this proposed rule, which are currently 

designated as paragraphs (a)(8), (10), and (11) in 

HUD’s existing regulations. 

62HUD is proposing changes to capture the 

exception by revising existing paragraph (a)(6) in 

§ 1003.501, which would become designated 

paragraph (a)(7) under this proposed rule, and by 

adding a new paragraph (a)(9) to that section. 63 89 FR 46618. 

concluded that OMB’s changes in the 

definition of Federal financial 

assistance do not result in any 

substantive changes for for-profit 

entities. Therefore, for-profit entities are 

not included in the regulatory text 

proposed in 24 CFR 1005.219(c) and 

1007.50(f). 

Cross-Reference Updates 

Because the changes described above 

add new paragraphs (b) and (c) to 24 

CFR 1005.219, and there are already 

existing paragraphs (b) and (c) in that 

section, HUD is proposing to 

redesignate existing paragraphs (b) 

through (e) as paragraphs (d) through (g) 

in § 1005.219. Additionally, this change 

requires updates to cross-references to 

existing paragraphs in § 1005.219 made 

throughout 24 CFR part 1005. In 

§§ 1005.217(b)(7), 1005.739(h), and 

1005.803(a), HUD is proposing to 

update the cross-references as follows, 

respectively: 

• In § 1005.217(b)(7), update the 

cross-reference 1005.219(d)(3) to 

1005.219(f)(3); 

• In § 1005.739(h), update the crossreference 1005.219(d)(2) to 

1005.219(f)(2); and 

• In § 1005.803(a), update the crossreference 1005.219(d)(2) to 

1005.219(f)(2). 

III. Questions for Public Comment 

HUD welcomes comments on all 

aspects of this proposed rule. In 

addition, HUD specifically requests 

public comments on the following: 

1. Section 200.300 of title 2 of the CFR 

requires that agencies or pass-through 

entities manage and administer Federal 

awards in a manner to ensure 

compliance with applicable Federal 

nondiscrimination and environmental 

protection provisions. OMB also added 

paragraphs clarifying that sex 

discrimination encompasses sexual 

orientation and gender identity. Are 

these provisions, along with HUD 

regulations, such as those in 24 CFR 

part 5, sufficiently clear to make 

recipients aware of their civil rights and 

environmental protection obligations? 

What additional provisions, if any, 

should HUD add to program and crosscutting regulations that would help 

ensure that Federal awards are 

administered in compliance with 

Federal nondiscrimination and 

environmental protection requirements? 

2. HUD has requested an exception 

from OMB under 2 CFR 200.102 that 

would authorize HUD to treat Tribally 

Designated Housing Entities (TDHEs) 

and Tribal organizations like Indian 

Tribes for purposes of 2 CFR part 200 

procurement requirements in the Indian 

Housing Block Grant and Indian 

Community Development Block Grant 

programs. HUD is seeking this exception 

to conform with 2 CFR 200.313, which 

now states, ‘‘Indian Tribes must use, 

manage, and dispose of equipment 

acquired under a Federal award in 

accordance with tribal laws and 

procedures,’’ and 2 CFR 200.317, which 

now requires that Indian Tribes, like 

States, must follow the same policies 

and procedures that Tribes use for 

procurements with non-Federal funds. 

The structure of HUD’s Indian Housing 

Block Grant (IHBG) and the Indian 

Community Development Block Grant 

(ICDBG) programs treats Tribally 

Designated Housing Entities (TDHEs) 

and Tribal Organizations as 

instrumentalities of the Tribe. HUD has 

proposed regulatory text in this 

proposed rule that would account for 

the requested exception, at proposed 24 

CFR 1000.26(a)(9), (a)(11)(i), and 

(a)(12)(i),61 and 1003.501(a)(7) and 

(a)(9).62 The proposed changes for 

proposed §§ 1000.26(a)(9) and (a)(11)(i) 

and 1003.501(a)(7) and (9) would 

provide that the 2 CFR provision, either 

2 CFR 200.313 or 200.317, applies 

except as modified by HUD’s 

regulations. HUD’s proposed regulations 

would permit a TDHE or Tribal 

Organization to follow the Tribal laws, 

policies, and procedures of the Indian 

Tribe they serve, instead of 2 CFR part 

200 requirements. Proposed 24 CFR 

1000.26(a)(12)(i) would require 2 CFR 

200.318 through 200.327 to apply when 

a Tribe does not have their own policies 

and procedures for procurement with 

non-Federal funds or when a TDHE 

does not follow the policies and 

procedures for procurement with nonFederal funds of the Tribe they serve. 

HUD is seeking public comment on 

these proposals pending OMB’s 

approval of the requested exception. 

IV. Findings and Certifications 

Regulatory Review—Executive Orders 

12866, 13563, and 14094 

Pursuant to Executive Order 12866 

(Regulatory Planning and Review), a 

determination must be made whether a 

regulatory action is significant, and 

therefore, subject to review by OMB in 

accordance with the requirements of the 

order. Executive Order 13563 

(Improving Regulations and Regulatory 

Review) directs executive agencies to 

analyze regulations that are ‘‘outmoded, 

ineffective, insufficient, or excessively 

burdensome, and to modify, streamline, 

expand, or repeal them in accordance 

with what has been learned.’’ Executive 

Order 13563 also directs, where 

relevant, feasible, and consistent with 

regulatory objectives, and to the extent 

permitted by law, agencies to identify 

and consider regulatory approaches that 

reduce burdens and maintain flexibility 

and freedom of choice for the public. 

Executive Order 14094, entitled 

‘‘Modernizing Regulatory Review’’ 

(hereinafter referred to as the 

‘‘Modernizing E.O.’’), amends section 

3(f) of Executive Order 12866 

(Regulatory Planning and Review), 

among other things. This proposed rule 

was determined to not be a significant 

regulatory action under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. This rule 

proposes to amend HUD regulations to 

make necessary technical updates to 

cross-references to sections of 2 CFR 

part 200 and other conforming changes 

that align HUD’s regulations with 

revisions made by OMB to 2 CFR parts 

25 and 200. This rule also proposes to 

amend HUD regulations based on HUD’s 

experience implementing 2 CFR part 

200 to improve clarity and consistency 

in HUD regulations that cross-reference 

2 CFR part 200 or specific subparts or 

provisions; to establish program-specific 

procedures for the Housing Trust Fund 

(HTF) program and better align 

programmatic and administrative 

requirements for HTF grant closeout; to 

align HTF regulations with changes 

related to 2 CFR part 200 proposed in 

HUD’s recent proposed rule for the 

HOME program; 63 to update HUD’s 

Title VI, Section 108, Section 184, and 

Section 184A loan guarantee program 

regulations to address OMB’s changes 

for loan guarantee programs regarding 

System for Award Management 

(SAM.gov) registration; and to update 


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HUD’s Section 184 and 184A loan 

guarantee programs to explicitly state 

requirements that apply to these 

programs both prior to and because of 

OMB’s recent changes. These 

amendments impose no significant 

economic impact on a substantial 

number of small entities. Therefore, the 

undersigned certifies that this 

rulemaking will not have a significant 

impact on a substantial number of small 

entities. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531– 

1538) (UMRA) establishes requirements 

for Federal agencies to assess the effects 

of their regulatory actions on State, 

local, and Tribal governments and the 

private sector. This proposed rule does 

not impose any Federal mandates on 

any State, local, or Tribal governments 

or the private sector within the meaning 

of the UMRA. 

Environmental Review 

This proposed rule does not direct, 

provide for assistance or loan and 

mortgage insurance for, or otherwise 

govern, or regulate, real property 

acquisition, disposition, leasing, 

rehabilitation, alteration, demolition, or 

new construction, or establish, revise, or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this proposed 

rule is categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either imposes 

substantial direct compliance costs on 

State and local governments and is not 

required by statute, or the rule preempts 

State law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Order. This proposed 

rule does not have federalism 

implications and would not impose 

substantial direct compliance costs on 

State and local governments nor 

preempt State law within the meaning 

of the Order. 

List of Subjects 

24 CFR Part 4 

Administrative practice and 

procedure, Government employees, 

Grant programs—housing and 

community development, 

Investigations, Loan programs—housing 

and community development, Penalties, 

Reporting and recordkeeping 

requirements. 

24 CFR Part 5 

Administrative practice and 

procedure, Aged, Claims, Crime, 

Government contracts, Grant 

programs—housing and community 

development, Individuals with 

disabilities, Intergovernmental relations, 

Loan programs—housing and 

community development, Low and 

moderate income housing, Mortgage 

insurance, Penalties, Pets, Public 

housing, Rent subsidies, Reporting and 

recordkeeping requirements, Social 

Security, Unemployment compensation, 

Wages. 

24 CFR Part 75 

Administrative practice and 

procedure, Community development, 

Government contracts, Grant 

programs—housing and community 

development, Housing, Loan 

programs—housing and community 

development, Reporting and 

recordkeeping requirements, Small 

businesses. 

24 CFR Part 92 

Administrative practice and 

procedure, Low and moderate income 

housing, Manufactured homes, Rent 

subsidies, Reporting and recordkeeping 

requirements. 

24 CFR Part 93 

Administrative practice and 

procedure, Grant programs—housing 

and community development, Low and 

moderate income housing, 

Manufactured homes, Rent subsidies, 

Reporting and recordkeeping 

requirements. 

24 CFR Part 200 

Administrative practice and 

procedure, Claims, Equal employment 

opportunity, Fair housing, Housing 

standards, Lead poisoning, Loan 

programs—housing and community 

development, Mortgage insurance, 

Organization and functions 

(Government agencies), Penalties, 

Reporting and recordkeeping 

requirements, Social Security, 

Unemployment compensation, Wages. 

24 CFR Part 570 

Administrative practice and 

procedure, American Samoa, 

Community development block grants; 

Grant programs—education, Grant 

programs—housing and community 

development, Guam, Indians, Loan 

programs—housing and community 

development, Low and moderate 

income housing, Northern Mariana 

Islands, Pacific Islands Trust Territory, 

Puerto Rico, Reporting and 

recordkeeping requirements, Student 

aid, Virgin Islands. 

24 CFR Part 574 

Community facilities, Grant 

programs—housing and community 

development, Grant programs—social 

programs, HIV/AIDS, Low and moderate 

income housing, Reporting and 

recordkeeping requirements. 

24 CFR Part 576 

Community facilities, Grant 

programs—housing and community 

development, Grant programs—social 

programs, Homeless, Reporting and 

recordkeeping requirements. 

24 CFR Part 578 

Community development, 

Community facilities, Grant programs— 

housing and community development, 

Grant programs—social programs, 

Homeless, Reporting and recordkeeping 

requirements. 

24 CFR Part 700 

Aged, Grant programs—housing and 

community development, Grant 

programs—Indians, Indians, Individuals 

with disabilities, Low and moderate 

income housing, Public housing, 

Reporting and recordkeeping 

requirements. 

24 CFR Parts 880, 881, and 883 

Grant programs—housing and 

community development, Rent 

subsidies, Reporting and recordkeeping 

requirements. 

24 CFR Part 884 

Accounting, Administrative practice 

and procedure, Grant programs— 

housing and community development, 

Home improvement, Housing, Low and 

moderate income housing, Public 

assistance programs, Public housing, 

Rent subsidies, Reporting and 

recordkeeping requirements, Rural 

areas, Utilities. 

24 CFR Part 886 

Grant programs—housing and 

community development, Lead 

poisoning, Rent subsidies, Reporting 

and recordkeeping requirements. 

24 CFR Parts 905 and 964 

Grant programs—housing and 

community development, Public 

housing, Reporting and recordkeeping 

requirements. 

24 CFR Part 965 

Government procurement, Grant 

programs—housing and community 

development, Lead poisoning, Loan 


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programs—housing and community 

development, Public housing, Reporting 

and recordkeeping requirements, 

Utilities. 

24 CFR Part 970 

Grant programs—housing and 

community development, Public 

housing, Reporting and recordkeeping 

requirements. 

24 CFR Part 990 

Accounting, Grant programs—housing 

and community development, Public 

housing, Reporting and recordkeeping 

requirements. 

24 CFR Part 1000 

Aged, Community development block 

grants, Grant programs—housing and 

community development, Grant 

programs—Indians, Indians, Individuals 

with disabilities, Public housing, 

Reporting and recordkeeping 

requirements. 

24 CFR Part 1003 

Alaska, Community development 

block grants, Grant programs—housing 

and community development, Grant 

programs—Indians, Indians, Reporting 

and recordkeeping requirements. 

24 CFR Part 1005 

Indians, Loan programs—Indians, 

Reporting and recordkeeping 

requirements. 

24 CFR Part 1006 

Community development block 

grants, Grant programs—housing and 

community development, Grant 

programs—Indians, Hawaiian Natives, 

Low and moderate income housing, 

Reporting and recordkeeping 

requirements. 

24 CFR Part 1007 

Hawaiian Natives, Loan programs— 

housing and community development, 

Loan programs—Indians, Reporting and 

recordkeeping requirements. 

For the reasons described in the 

preamble, and under the authority of 42 

U.S.C. 3535(d), the Department of 

Housing and Urban Development 

proposes to amend 24 CFR parts 4, 5, 

75, 92, 93, 200, 570, 574, 576, 578, 700, 

880, 881, 883, 884, 886, 905, 964, 965, 

970, 990, 1000, 1003, 1005, 1006, and 

1007, as set forth below: 

PART 4—HUD REFORM ACT 

■ 1. The authority citation for part 4 

continues to read as follows: 

Authority: 42 U.S.C. 3535(d), 3537a, 3545. 

§ 4.9 [Amended] 

■ 2. In § 4.9(a)(1)(iii), remove ‘‘2 CFR 

200.80’’ and add in its place ‘‘2 CFR 

200.1’’. 

PART 5—GENERAL HUD PROGRAM 

REQUIREMENTS; WAIVERS 

■ 3. The authority citation for part 5 

continues to read as follows: 

Authority: 12 U.S.C. 1701x; 42 U.S.C. 

1437a, 1437c, 1437f, 1437n, 3535(d); 42 

U.S.C. 2000bb et seq.; 34 U.S.C. 12471 et seq.; 

Sec. 327, Pub. L. 109–115, 119 Stat. 2396; 

E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., 

p. 258; E.O. 13559, 75 FR 71319, 3 CFR, 2010 

Comp., p. 273; E.O. 14015, 86 FR 10007, 3 

CFR, 2021 Comp., p. 517. 

§ 5.801 [Amended] 

■ 4. In § 5.801(a)(1): 

■ a. Remove ‘‘5, 9, or 14’’ and add in its 

place ‘‘5 or 9’’; and 

■ b. Remove ‘‘(42 U.S.C. 1437c, 1437g, 

and 1437l)’’ and add in its place ‘‘(42 

U.S.C. 1437c, 1437g)’’. 

■ 5. Revise § 5.1001 to read as follows: 

§ 5.1001 Applicability. 

This subpart applies to all applicants 

for and recipients of Federal financial 

assistance provided under HUD 

programs, unless a Federal statute or an 

exception under 2 CFR part 25 provides 

otherwise. See 2 CFR 25.400 for the 

definitions that apply to ‘‘Federal 

financial assistance’’ and other terms in 

this subpart. 

■ 6. Revise § 5.1003 to read as follows: 

§ 5.1003 System for Award Management 

(SAM) and Unique entity identifier (UEI) 

requirements for applicants. 

(a) General requirement. Each 

applicant for Federal financial 

assistance must: 

(1) Be registered in SAM.gov before 

submitting an application; 

(2) Maintain a current and active 

registration in SAM.gov at all times 

during which it has an active Federal 

award as a recipient or an application 

under consideration by a Federal 

awarding agency. The applicant must 

review and update its information in 

SAM.gov annually from the date of 

initial registration or later updates to 

ensure the information is current, 

accurate, and complete. If applicable, 

this includes identifying the applicant’s 

immediate and highest-level owner and 

subsidiaries, as well as providing 

information on all predecessors that 

have received a Federal award or 

contract within the last 3 years; and 

(3) Include its UEI in each application 

it submits to HUD, including 

applications for renewal of a Federal 

award. 

(b) Special cases. (1) Applicants or 

groups of applicants under a consortium 

arrangement: 

(i) If one organization is submitting 

the application for Federal assistance as 

the lead applicant on behalf of the other 

applicants, that organization must 

comply with the requirements in 

paragraph (a) of this section. 

(ii) If each organization is submitting 

a separate application as part of a group 

of applications, then each organization 

must comply with the requirements in 

paragraph (a) of this section. 

(2) If an organization is submitting an 

application as a sponsor or on behalf of 

other applicants, and the other entities 

will be receiving funds directly from 

HUD, then each entity that would 

receive funds directly from HUD must 

comply with the requirements in 

paragraphs (a)(1) and (2) of this section, 

and the application submitted to HUD 

must include the UEI of each of those 

entities. 

(3) If an organization is managing 

funds for a group of organizations and 

will be drawing down funds directly 

from HUD, that organization must 

comply with the requirements in 

paragraph (a) of this section. 

(c) Issuing or amending a Federal 

award. Unless an entity is exempt under 

2 CFR 25.110, HUD may not issue a 

Federal award or amend an existing 

Federal award to provide additional 

Federal funds if the entity is not in 

compliance with the requirements of 

this part. 

(d) Awarding another applicant. 

When HUD is ready to make a Federal 

award, if the intended recipient has not 

complied with the requirements to 

obtain a UEI and maintain an active 

registration in SAM.gov with current 

information, HUD may make a Federal 

award to another applicant. 

■ 7. Revise § 5.1004 to read as follows: 

§ 5.1004 System for Award Management 

(SAM) and Unique entity identifier (UEI) 

requirements for recipients and other 

entities. 

(a) Each recipient of Federal financial 

assistance must maintain a current and 

active registration in SAM.gov at all 

times during which it has an active 

Federal award as a recipient or an 

application under consideration by a 

Federal awarding agency. The recipient 

must review and update its information 

in SAM.gov annually from the date of 

initial registration or later updates to 

ensure the information is current, 

accurate, and complete. If applicable, 

this includes identifying the recipient’s 

immediate and highest-level owner and 

subsidiaries, as well as providing 

information on all predecessors that 


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have received a Federal award or 

contract within the last 3 years. 

(b) Each recipient of Federal financial 

assistance must notify any potential 

subrecipients that the recipient cannot 

make a subaward to a subrecipient that 

has not obtained a UEI and provided it 

to the recipient. Subrecipients are not 

required to complete full registration in 

SAM.gov to obtain a UEI. 

(c) For purposes of loan guarantees 

and other guaranteed programs, 

recipients of the guarantee from the 

Federal agency (for example, lenders of 

guaranteed loans) are required to 

complete entity validations and acquire 

a UEI. In addition, HUD may require 

non-individual beneficiary borrowers 

(for example, small businesses or 

corporations) to obtain a UEI or register 

in SAM.gov. 

■ 8. Revise § 5.1005 to read as follows: 

§ 5.1005 Incorporation of required Award 

Term. 

Every agreement for Federal financial 

assistance that HUD executes with a 

recipient on or after October 1, 2024, is 

subject to the Award Term in appendix 

A to 2 CFR part 25. 

■ 9. Add § 5.1006 to read as follows: 

§ 5.1006 Certifications and assurances. 

Every agreement for Federal financial 

assistance that HUD executes with a 

recipient on or after October 1, 2024, 

must contain or be accompanied by the 

appropriate assurances and 

certifications (e.g., HUD–424B). This 

applies to recipients provided an 

exemption to the requirements of 2 CFR 

25.110. The Responsible Civil Rights 

Official has specified the form HUD– 

424B for use for purposes of meeting the 

requirements of §§ 1.5, 3.115, 8.50, and 

146.25 of this title, as applicable. The 

Responsible Civil Rights Official may 

require specific civil rights assurances 

to be furnished consistent with those 

authorities and will specify the form on 

which such assurances must be made. 

PART 75—ECONOMIC 

OPPORTUNITIES FOR LOW- AND 

VERY LOW-INCOME PERSONS 

■ 10. The authority citation for part 75 

continues to read as follows: 

Authority: 12 U.S.C. 1701u; 42 U.S.C. 

3535(d). 

§ 75.5 [Amended] 

■ 11. In § 75.5, remove ‘‘2 CFR 200.93’’ 

wherever it appears and add in its place 

‘‘2 CFR 200.1’’. 

§ 75.31 [Amended] 

■ 12. In § 75.31(c), remove ‘‘2 CFR part 

200’’ and add in its place ‘‘2 CFR 

200.334’’. 

§ 75.33 [Amended] 

■ 13. In § 75.33(a), remove ‘‘2 CFR part 

200’’ and add in its place ‘‘2 CFR 

200.334’’. 

PART 92—HOME INVESTMENT 

PARTNERSHIPS PROGRAM 

■ 14. The authority citation for part 92 

continues to read as follows: 

Authority: 42 U.S.C. 3535(d) and 12701– 

12839, 12 U.S.C. 1701x. 

§ 92.220 [Amended] 

■ 15. In § 92.220(a)(1)(ii), remove ‘‘2 

CFR 200.80’’ and add in its place ‘‘2 

CFR 200.1’’. 

■ 16. In § 92.356, revise paragraph (a) to 

read as follows: 

§ 92.356 Conflict of interest. 

(a) Applicability. When procuring 

goods and services in accordance with 

2 CFR part 200, the participating 

jurisdiction, State recipient, or 

subrecipient must comply with the 

applicable conflict of interest 

requirements in 2 CFR 200.317 through 

200.319. In all other situations, the 

provisions of this section apply. 

* * * * * 

§ 92.502 [Amended] 

■ 17. In § 92.502(c)(2), remove ‘‘2 CFR 

200.305(b)(9)’’ and add in its place ‘‘2 

CFR 200.305(b)(12)’’. 

§ 92.504 [Amended] 

■ 18. In § 92.504: 

■ a. In paragraph (c)(1)(x): 

■ i. Remove ‘‘2 CFR 200.338’’ and add 

in its place ‘‘2 CFR 200.339’’; and 

■ ii. Remove ‘‘2 CFR 200.339’’ and add 

in its place ‘‘2 CFR 200.340’’; and 

■ b. In paragraph (c)(2)(ix): 

■ i. Remove ‘‘2 CFR 200.338’’ and add 

in its place ‘‘2 CFR 200.339’’; and 

■ ii. Remove ‘‘2 CFR 200.339’’ and add 

in its place ‘‘2 CFR 200.340’’. 

■ 19. Revise § 92.505 to read as follows: 

§ 92.505 Applicability of uniform 

administrative requirements. 

The requirements of 2 CFR part 200 

apply to participating jurisdictions, 

State recipients, and subrecipients 

receiving HOME funds, except for the 

following provisions: §§ 200.306 

through 200.308 (not applicable to 

participating jurisdictions), 200.311 

(except as provided in § 92.257), 

200.312, 200.328, 200.329(c), 200.330, 

200.334, 200.335, and 200.344. The 

provisions of 2 CFR 200.305 apply as 

modified by § 92.502(c). If there is a 

conflict between definitions in 2 CFR 

part 200 and this part, the definitions in 

this part govern. 

■ 20. In § 92.508, add paragraph 

(a)(7)(ii)(C) to read as follows: 

§ 92.508 Recordkeeping. 

(a) * * * 

(7) * * * 

(ii) * * * 

(C) Records of any efforts to consider 

small businesses, minority businesses, 

women’s business enterprises, veteranowned businesses, and labor surplus 

area firms, as described in 2 CFR 

200.321. 

* * * * * 

§ 92.551 [Amended] 

■ 21. In § 92.551: 

■ a. In paragraph (c)(2): 

■ i. Remove ‘‘2 CFR 200.207’’ and add 

in its place ‘‘2 CFR 200.208’’; and 

■ ii. Remove ‘‘2 CFR 200.338’’ and add 

in its place ‘‘2 CFR 200.339’’. 

PART 93—HOUSING TRUST FUND 

■ 22. The authority citation for part 93 

continues to read as follows: 

Authority: 42 U.S.C. 3535(d), 12 U.S.C. 

4568. 

■ 23. In § 93.353, revise paragraph (a) to 

read as follows: 

§ 93.353 Conflict of interest. 

(a) Applicability of procurement 

standards. When procuring goods and 

services in accordance with 2 CFR part 

200, the grantee or subgrantee must 

comply with the applicable conflict of 

interest requirements in 2 CFR 200.317 

through 200.319. In all other situations, 

the provisions of this section apply. 

* * * * * 

■ 24. In § 93.400, revise paragraph (d)(2) 

to read as follows: 

§ 93.400 Housing Trust Fund (HTF) 

accounts. 

* * * * * 

(d) * * * 

(2) Any fiscal year grant funds in the 

HTF Treasury account that are not 

expended after the date of expiration of 

the grant’s period of performance, as 

described in § 93.409(a)(3); 

* * * * * 

§ 93.404 [Amended] 

■ 25. In § 93.404: 

■ a. In paragraph (c)(1)(v), remove ‘‘2 

CFR 200.331’’ and add in its place ‘‘2 

CFR 200.332’’; and 

■ b. In paragraph (c)(1)(xi): 

■ i. Remove ‘‘2 CFR 200.338’’ and add 

in its place ‘‘2 CFR 200.339’’; and 

■ ii. Remove ‘‘2 CFR 200.339’’ and add 

in its place ‘‘2 CFR 200.340’’. 

■ 26. Revise § 93.405 to read as follows: 

§ 93.405 Applicability of uniform 

administrative requirements, cost 

principles, and audits. 

The requirements of 2 CFR part 200 

apply to the grantees and subgrantees 


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receiving HTF funds, except for the 

following provisions: §§ 200.307, 

200.308, 200.311, 200.312, 200.328, 

200.329(c), 200.330, 200.334, 200.335, 

and 200.344 (except as provided in 

§ 93.409). If there is a conflict between 

the definitions in 2 CFR part 200 and 

this part, the definitions in this part 

govern. 

§ 93.407 [Amended] 

■ 27. In § 93.407: 

■ a. In paragraph (a)(2)(ii): 

■ i. Remove ‘‘2 CFR 200.333’’ and add 

in its place ‘‘2 CFR 200.334’’; and 

■ ii. Remove ‘‘200.337’’ and add in its 

place ‘‘200.338’’; and 

■ b. In paragraph (a)(3)(iv), remove ‘‘2 

CFR part 200,’’ and add in its place ‘‘2 

CFR 200.302’’. 

■ 28. Add § 93.409 to read as follows: 

§ 93.409 Closeout. 

This section specifies the procedure 

and actions that must be completed by 

a HTF grantees and HUD to close out a 

grant. The requirements of 2 CFR 

200.344 apply to closeouts, except to the 

extent that such requirements conflict 

with the following: 

(a) Closeout process. (1) HUD will 

close out a grant after the period of 

performance has ended. A grantee must 

complete all required activities and 

closeout actions for the grant, as 

required by HUD. If the grantee fails to 

complete the requirements in 

accordance with this section, HUD may 

close out the Federal award with the 

information available. HUD may 

closeout individual grants or multiple 

grants simultaneously. 

(2) To prepare for closeout, before the 

end of the budget period of the grant, 

the grantee must review all eligible 

activities under the grant and reconcile 

its accounts as follows: 

(i) For any eligible costs incurred 

under the grant and not yet drawn down 

from the U.S. Treasury account, the 

grantee must draw down those funds in 

a timely manner. 

(ii) The grantee must promptly refund 

to the proper accounts any previously 

disbursed balances of unobligated cash 

paid in advance. All such refunds must 

be completed prior to submission of the 

information and reports required in 

paragraph (b) of this section. 

(3) After the end of the grant budget 

period, no additional eligible activities 

may be undertaken by the grantee using 

the grant funds and no additional 

eligible costs incurred after the budget 

period may be submitted by the grantee. 

Unused funds remaining on the grant 

will be returned to HUD. The grantee 

must promptly refund any unused grant 

funds not authorized to be retained, 

consistent with HUD’s instructions. 

HUD shall reallocate the grant funds by 

formula in accordance with § 93.54. 

(4) HUD will initiate closeout actions 

in the computerized disbursement and 

information system when the grantee 

has met the requirements established in 

paragraph (b) of this section. 

(i) If the grantee does not submit and 

enter all required data, information, and 

reports or complete the actions 

described in paragraph (b) of this 

section, HUD will proceed to close out 

the grant with the information available 

within one year of the period of 

performance end date. Each grant shall 

have a 9-year period of performance 

beginning after the date of HUD’s 

execution of the HTF grant agreement. 

The date of HUD’s execution of the HTF 

grant agreement is also the point of 

obligation for the HTF grant. 

(ii) HUD may report the grantee’s 

material failure to comply with the 

terms and conditions of the Federal 

award or requirements in this section in 

SAM.gov. HUD may also pursue other 

enforcement actions in 2 CFR 200.339. 

(5) A grantee may request, and HUD 

may provide an extension of the period 

of performance or closeout deadlines 

provided good cause is demonstrated. 

(b) Actions required for closeout. A 

grantee must complete the following 

actions for closeout of the grant: 

(1) Submit a complete and final 

Federal Financial Report for the grant to 

HUD within 120 days of the end date of 

the period of performance, as indicated 

in the grant agreement; 

(2) Demonstrate that it has fulfilled all 

programmatic and administrative 

requirements for the project (i.e., 

property inspections, obtaining 

certificates of occupancy, etc.) within 

the period of performance in accordance 

with 2 CFR 200.344(a); 

(3) Enter all data for activities in the 

computerized disbursement and 

information system established by HUD, 

within one year from the end of the 

period of performance as required by 

the grant agreement; 

(4) Demonstrate that all HTF-assisted 

units are occupied by eligible occupants 

by entering accurate beneficiary data in 

the computerized disbursement and 

information system established by HUD, 

within one year from the end of the 

period of performance, as required by 

the grant agreement; 

(5) Comply with the requirements in 

2 CFR 200.313(e) for the disposition of 

any equipment acquired under one or 

more HTF grants, that is no longer 

needed for the HTF program, or for 

other activities previously supported by 

a Federal agency; 

(6) Resolve and close all HTF 

monitoring findings for the grant (if 

applicable); 

(7) Resolve and close all OIG audit 

findings for the grant (if applicable); 

(8) Resolve and close all Single Audit 

findings for the grant (if applicable); 

(9) Carry out all other responsibilities 

under the grant agreement and 

applicable laws and regulations 

satisfactorily; and 

(10) Complete a closeout certification 

prepared by HUD. The certification 

shall identify the grant being closed out 

and include provisions with respect to 

the following: 

(i) Identification of any unused grant 

funds that were returned to HUD; 

(ii) Compliance with the 

recordkeeping requirements in § 93.407, 

including maintaining program, project, 

financial, program administration, 

records concerning other Federal 

requirements, and such other records as 

necessary to carry out responsibilities 

for the grant by the grantee and its 

subgrantees; 

(iii) Monitoring and enforcement of 

the requirements for all HTF-assisted 

units set forth in this part for the period 

specified in the HTF written agreement 

with the property owner; 

(iv) Compliance with use of program 

income, recaptured funds, and 

repayments in accordance with 

§ 92.403. If the grantee is not a grantee 

when it receives funds, the funds may 

be retained and used for other affordable 

housing purposes; 

(v) All actions required in 2 CFR 

200.344 applicable to the grant have 

been taken by the grantee; 

(vi) All actions required in 2 CFR 

200.344 applicable to the grantee’s 

subgrantees have been taken; 

(vii) Other provisions appropriate to 

any special circumstances of the grant 

closeout, in modification of or in 

addition to the obligations in paragraphs 

(c)(1) and (2) of this section; 

(viii) Acknowledge future monitoring 

by HUD, including that findings of 

noncompliance may be taken into 

account by HUD as unsatisfactory 

performance of the grantee and in any 

risk-based assessment of a future grant 

award under this part; and 

(ix) Unless otherwise provided in a 

closeout certification, the Consolidated 

Plan will remain in effect after closeout 

until the expiration of the program year 

covered by the most recent Consolidated 

Plan. 

(c) Post closeout adjustments and 

continuing responsibilities. The closeout 

of a grant does not affect any of the 

obligations required under this part and 

under 2 CFR 200.345, including: 


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(1) The right of HUD to disallow costs 

and recover funds on the basis of a later 

audit or other review. HUD must make 

any cost disallowance determination 

and notify the grantee within the record 

retention period; 

(2) Compliance with the requirements 

in § 93.407; 

(3) Compliance with the requirements 

in § 93.408; 

(4) Records retention as required in 2 

CFR 200.345, as applicable; 

(5) Monitoring and enforcement of the 

requirements for all HTF-assisted units 

set forth in this part for the period of 

affordability specified in the HTF 

written agreement with the property 

owner; 

(6) Compliance with use of program 

income, recaptured funds, and 

repayments in accordance with 

§ 93.403. If the grantee is not a grantee 

when it receives funds, the funds may 

be retained and used for other affordable 

housing purposes; 

(7) Compliance with the requirement 

in 2 CFR 200.345(a)(2) that the grantee 

return any funds due as a result of a 

later refund, corrections, or other 

transactions including final indirect cost 

rate adjustments; and 

(8) Compliance with the audit 

requirements at 2 CFR part 200, subpart 

F. 

§ 93.452 [Amended] 

■ 29. In § 93.452: 

■ a. In paragraph (c)(2): 

■ i. Remove ‘‘2 CFR 200.207’’ and add 

in its place ‘‘2 CFR 200.208’’; and 

■ ii. Remove ‘‘200.338’’ and add in its 

place ‘‘200.339’’. 

PART 200—INTRODUCTION TO FHA 

PROGRAMS 

■ 30. The authority citation for part 200 

continues to read as follows: 

Authority: 12 U.S.C. 1702–1715z–21; 42 

U.S.C. 3535(d). 

■ 31. Revise § 200.11 to read as follows: 

§ 200.11 Audit requirements for State and 

local governments as mortgagees. 

Requirements set forth in 2 CFR part 

200, subpart F, apply to State and local 

governments (as defined at 2 CFR 200.1) 

that receive mortgage insurance as 

mortgagees. 

PART 570—COMMUNITY 

DEVELOPMENT BLOCK GRANTS 

■ 32. The authority citation for part 570 

continues to read as follows: 

Authority: 12 U.S.C. 1701x, 1701 x–1; 42 

U.S.C. 3535(d) and 5301–5320. 

■ 33. In § 570.206, revise paragraph (e) 

to read as follows: 

§ 570.206 Program administrative costs. 

* * * * * 

(e) Indirect costs. The amount of 

indirect costs determined by applying 

the indirect cost rate to the portion of 

modified total direct costs (as defined at 

2 CFR 200.1) that represents up to 

$50,000 of each subaward may only be 

charged to the grant as a program 

administrative cost. 

* * * * * 

§ 570.485 [Amended] 

■ 34. In § 570.485(d), remove ‘‘2 CFR 

200.207’’ and add in its place ‘‘2 CFR 

200.208’’. 

§ 570.489 [Amended] 

■ 35. In § 570.489: 

■ a. In paragraph (g), remove ‘‘2 CFR 

200.330’’ and add in its place ‘‘2 CFR 

200.331; 

■ b. Revise paragraph (j) introductory 

text; 

■ c. In paragraph (m): 

■ i. Remove ‘‘2 CFR 200.330’’ and add 

in its place ‘‘2 CFR 200.331’’; and 

■ ii. Remove ‘‘200.332’’ and add in its 

place ‘‘200.333’’; and 

■ d. In paragraph (o), remove ‘‘2 CFR 

200.343’’ and add in its place ‘‘2 CFR 

200.344’’. 

The revision reads as follows: 

§ 570.489 Program administrative 

requirements. 

* * * * * 

(j) Change of use of real property. The 

standards described in this section 

apply to real property within the unit of 

general local government’s control 

(including activities undertaken by 

subrecipients) that was acquired or 

improved in whole or in part using 

CDBG funds in excess of the simplified 

acquisition threshold (2 CFR 200.1) set 

by the FAR at 48 CFR part 2, subpart 

2.1. These standards shall apply from 

the date CDBG funds are first spent for 

the property until 5 years after closeout 

of the unit of general local government’s 

grant. 

* * * * * 

■ 36. In § 570.502, revise paragraph (a) 

to read as follows: 

§ 570.502 Applicability of uniform 

administrative requirements. 

(a) Grantees and subrecipients shall 

comply with 2 CFR part 200, ‘‘Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards’’, except that: 

(1) 2 CFR 200.305 is modified for 

lump sum drawdown for financing of 

property rehabilitation activities, in 

accordance with § 570.513. 

(2) 2 CFR 200.306 does not apply. 

(3) 2 CFR 200.307 does not apply. 

Program income is governed by 

§ 570.504. 

(4) 2 CFR 200.308 does not apply. 

(5) 2 CFR 200.311 does not apply, 

except as provided in § 570.200(j). Real 

property is governed by § 570.505. 

(6)(i) 2 CFR 200.313 applies, except 

that in all cases in which the equipment 

is sold, the proceeds shall be considered 

and treated as program income unless 

§ 570.500(a)(4)(i) provides otherwise. 

(ii) Equipment not needed by the 

subrecipient for CDBG activities shall be 

transferred to the recipient for the CDBG 

program or shall be retained after 

compensating the recipient. 

(7) 2 CFR 200.334 applies except that: 

(i) For recipients: 

(A) The period shall be 4 years from 

the date of execution of the closeout 

agreement for a grant, as further 

described in this part; 

(B) Records for individual activities 

subject to the reversion of assets 

provisions at § 570.503(b)(7) or the 

change of use provisions at § 570.505 

must be maintained for 3 years after 

those provisions no longer apply to the 

activity; 

(C) Records for individual activities 

for which there are outstanding loan 

balances, other receivables, or 

contingent liabilities must be retained 

for 3 years after the receivables or 

liabilities have been satisfied. 

(ii) For subrecipients: 

(A) The retention period for 

individual CDBG activities shall be the 

longer of 3 years after the expiration or 

termination of the subrecipient 

agreement under § 570.503, or 3 years 

after the submission of the annual 

performance and evaluation report, as 

prescribed in § 91.520 of this title, in 

which the specific activity is reported 

on for the final time; 

(B) Records for individual activities 

subject to the reversion of assets 

provisions at § 570.503(b)(7) or change 

of use provisions at § 570.505 must be 

maintained for as long as those 

provisions continue to apply to the 

activity; and 

(C) Records for individual activities 

for which there are outstanding loan 

balances, other receivables, or 

contingent liabilities must be retained 

until such receivables or liabilities have 

been satisfied. 

(8) 2 CFR 200.344 applies to closeout 

of subrecipients. 

* * * * * 

§ 570.508 [Amended] 

■ 37. In § 570.508, remove ‘‘2 CFR 

200.337’’ and add in its place ‘‘2 CFR 

200.338’’. 


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§ 570.509 [Amended] 

■ 38. In § 570.509: 

■ a. In paragraph (b)(3), remove ‘‘2 CFR 

part 200’’ and add in its place ‘‘2 CFR 

part 200, subpart F’’; 

■ b. In paragraph (e), remove ‘‘2 CFR 

200.339’’ and add in its place ‘‘2 CFR 

200.340’’; and 

■ c. In paragraph (f), remove ‘‘2 CFR 

200.342)’’ and add in its place ‘‘2 CFR 

200.343’’. 

■ 39. In § 570.611, revise paragraph (a) 

to read as follows: 

§ 570.611 Conflict of interest. 

(a) Applicability. (1) When procuring 

goods and services in accordance with 

2 CFR part 200, the recipient or 

subrecipient must comply with the 

applicable conflict of interest 

requirements in 2 CFR 200.317 through 

200.319. 

(2) In all cases where the provisions 

of 2 CFR 200.317 through 200.319 do 

not apply, the provisions of this section 

shall apply. Such cases include the 

acquisition and disposition of real 

property and the provision of assistance 

by the recipient or by its subrecipients 

to individuals, businesses, and other 

private entities under eligible activities 

that authorize such assistance (e.g., 

rehabilitation, preservation, and other 

improvements of private properties or 

facilities pursuant to § 570.202; or 

grants, loans, and other assistance to 

businesses, individuals, and other 

private entities pursuant to § 570.203, 

570.204, 570.455, or 570.703(i)). 

■ 40. In § 570.707, add paragraph (d) to 

read as follows: 

§ 570.707 Applicability of rules and 

regulations. 

* * * * * 

(d) Registration in SAM.gov. Public 

entities and States must complete entity 

validations and acquire a unique entity 

identifier (UEI) in SAM.gov in 

accordance with 2 CFR 25.105 in order 

to apply for and obtain a loan 

guaranteed under this subpart. The 

lender or holder of a note guaranteed 

under this subpart is not required to 

complete entity validations and acquire 

a UEI in SAM.gov in accordance with 2 

CFR 25.105 in order to obtain the 

benefit of the loan guarantee. 

PART 574—HOUSING 

OPPORTUNITIES FOR PERSONS WITH 

AIDS 

■ 41. The authority citation for part 574 

continues to read as follows: 

Authority: 12 U.S.C. 1701x, 1701 x–1; 42 

U.S.C. 3535(d) and 5301–5320. 

■ 42. In § 574.500, revise paragraph (c) 

to read as follows: 

§ 574.500 Responsibility for grant 

administration. 

* * * * * 

(c) Enforcement. HUD will enforce the 

obligations in the grant agreement in 

accordance with the provisions of 2 CFR 

part 200, subpart D. Upon initiating a 

remedy for noncompliance (for 

example, disallowed costs, a corrective 

action plan, or termination), HUD will 

provide the grantee with an opportunity 

for informal consultation, in which the 

grantee may object and provide 

information challenging the action. 

■ 43. Revise § 574.530 to read as 

follows: 

§ 574.530 Recordkeeping. 

(a)(1) For formula grants, each grantee 

must ensure that all grant records are 

maintained for the longer of five years 

or the applicable record retention period 

provided in 2 CFR part 200 (2 CFR 

200.334). 

(2) For all other grants, grantees must 

ensure that all grant records are 

maintained for the applicable record 

retention period provided in 2 CFR part 

200 (2 CFR 200.334). 

(3) For all grants, grantees must 

ensure that all records for real property 

subject to minimum use requirements 

are maintained for at least three years 

after final disposition. 

(b) Grantees must maintain the 

following: 

(1) Current and accurate data on the 

race and ethnicity of program 

participants. 

(2) Documentation of the actions the 

grantee has taken to affirmatively 

further fair housing, pursuant to 

§§ 5.151 and 5.152 of this title. 

(3) Data on emergency transfers 

requested under § 5.2005(e) of this title, 

pertaining to victims of domestic 

violence, dating violence, sexual 

assault, or stalking, including data on 

the outcomes of such requests. 

■ 44. Revise § 574.540 to read as 

follows: 

§ 574.540 Deobligation of funds. 

The period of performance for the 

grant will be 36 months after the date 

that HUD executes the grant agreement 

with the recipient, unless the grant 

agreement provides for a longer period. 

HUD may deobligate all or a portion of 

the amounts approved for eligible 

activities if the amounts are not 

expended in a timely manner, or the 

proposed activity for which funding was 

approved is not in accordance with the 

approved application or action plan and 

requirements of this part. The grant 

agreement may set forth other 

circumstances under which funds may 

be deobligated or sanctions imposed. 

■ 45. Revise § 574.605 to read as 

follows: 

§ 574.605 Applicability of uniform 

administrative requirements, cost 

principles, and audit requirements for 

Federal awards. 

The requirements of 2 CFR part 200, 

‘‘Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards,’’ 

apply, except where inconsistent with 

the AIDS Housing Opportunity Act, title 

I of the Cranston-Gonzalez National 

Affordable Housing Act, or the 

implementing regulations in this part or 

part 91 of this title. 

■ 46. Revise § 574.625 to read as 

follows: 

§ 574.625 Conflict of interest. 

(a) Applicable requirements. When 

procuring goods and services in 

accordance with 2 CFR part 200, the 

grantee or project sponsor must comply 

with the applicable conflict of interest 

requirements under 2 CFR 200.317 

through 200.319. In all other situations, 

the prohibition in paragraph (b) of this 

section applies. 

(b) Conflicts prohibited. No person 

who is an employee, agent, consultant, 

officer, or elected or appointed official 

of the grantee or project sponsor and 

who exercises or has exercised any 

functions or responsibilities with 

respect to assisted activities, or who is 

in a position to participate in a decision 

making process or gain inside 

information with regard to such 

activities, may obtain a financial interest 

or benefit from the activity, or have an 

interest in any contract, subcontract, or 

agreement with respect thereto, or the 

proceeds thereunder, either for himself 

or herself or for those with whom he or 

she has family or business ties, during 

his or her tenure or for one year 

thereafter. 

(c) Exceptions: Threshold 

requirements. Upon the written request 

of the grantee, HUD may grant an 

exception to the prohibition in 

paragraph (b) of this section when it 

determines that the exception will serve 

to further the purposes of the HOPWA 

program and the effective and efficient 

administration of the grantee’s program 

or project. An exception may be 

considered only after the grantee has 

provided the following: 

(1) A disclosure of the nature of the 

conflict, accompanied by an assurance 

that there has been public disclosure of 

the conflict and a description of how the 

public disclosure was made; and 

(2) An opinion of the grantee’s 

attorney that the interest for which the 

exception is sought would not violate 

State or local law. 


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(d) Factors to be considered for 

exceptions. In determining whether to 

grant a requested exception after the 

grantee has satisfactorily met the 

requirements of paragraph (c) of this 

section, HUD will consider the 

cumulative effect of the following 

factors, where applicable: 

(1) Whether the exception would 

provide a significant cost benefit or an 

essential degree of expertise to the 

program or project that would otherwise 

not be available; 

(2) Whether the person affected is a 

member of a group or class of eligible 

persons and the exception will permit 

such person to receive generally the 

same interests or benefits as are being 

made available or provided to the group 

or class; 

(3) Whether the affected person has 

withdrawn from his or her functions or 

responsibilities, or the decision making 

process with respect to the specific 

assisted activity in question; 

(4) Whether the interest or benefit was 

present before the affected person was 

in a position as described in paragraph 

(b) of this section; 

(5) Whether undue hardship will 

result to the grantee, the project 

sponsor, or the person affected when 

weighed against the public interest 

served by avoiding the prohibited 

conflict; and 

(6) Any other relevant considerations. 

PART 576—EMERGENCY SOLUTIONS 

GRANTS PROGRAM 

■ 47. The authority citation for part 576 

continues to read as follows: 

Authority: 12 U.S.C. 1701x, 1701x–1; 42 

U.S.C. 11371 et seq., 42 U.S.C. 3535(d). 

§ 576.2 [Amended] 

■ 50. In § 576.2, remove ‘‘2 CFR 200.80’’ 

wherever it appears and add in its place 

‘‘2 CFR 200.1’’. 

■ 51. In § 576.109, revise paragraphs (b) 

and (c) to read as follows: 

§ 576.109 Indirect Costs. 

* * * * * 

(b) Allocation to eligible activities 

under §§ 576.101 through 576.107. 

Indirect costs may be allocated to an 

eligible activity under §§ 576.101 

through 576.107, provided that: 

(1) The applicable indirect cost 

methodology and requirements under 2 

CFR part 200, subpart E, would allow 

for allocation of indirect costs to a 

specific activity by applying the indirect 

cost rate to only the allowable direct 

costs of that activity that are included 

within the applicable direct cost base; 

and 

(2) The sum of direct costs and 

indirect costs charged for street outreach 

and emergency shelter activities would 

not exceed the expenditure limit in 

§ 576.100(b). 

(c) Allocation to administrative costs 

under § 576.108. Indirect costs that 

cannot be allocated to an eligible 

activity under §§ 576.101 through 

576.107, but can otherwise be allocated 

to the ESG grant under 2 CFR part 200, 

subpart E, may be charged to the grant 

as administrative costs under § 576.108, 

provided the sum of direct and indirect 

costs charged as administrative costs 

does not exceed the expenditure limit in 

§§ 576.100(c) and 576.108(a). Costs that 

may only be charged in this manner 

include any amount of indirect costs 

that is determined by applying the 

indirect cost rate to ‘‘up to the first 

$50,000 of each subaward’’ as provided 

by the MTDC definition in 2 CFR 200.1, 

where indirect costs are determined by 

applying the indirect cost rate to MTDC. 

■ 52. In § 576.200, revise paragraph (a) 

to read as follows: 

§ 576.200 Submission requirements and 

grant approval. 

(a) Application submission and 

approval. In addition to meeting the 

requirements in part 5, subpart K of this 

title, each State, urban county, or 

metropolitan city must submit and 

obtain HUD approval of a consolidated 

plan in accordance with the 

requirements in part 91 of this title, and 

each territory must submit and obtain 

HUD approval of a consolidated plan in 

accordance with the requirements that 

apply to local governments under part 

91 of this title. HUD may include 

specific conditions in the grant 

agreement for a State, urban county, or 

metropolitan city as provided by 2 CFR 

200.208. 

* * * * * 

■ 53. In § 576.201, revise paragraph (d) 

and remove paragraphs (e) and (f) to 

read as follows: 

§ 576.201 Matching requirement. 

* * * * * 

(d) Matching contributions may 

include unrecovered indirect costs as 

described in 2 CFR 200.306(c). 

■ 54. In § 576.203, revise the second 

sentence of paragraph (b) to read as 

follows: 

§ 576.203 Obligation, expenditure, and 

payment requirements. 

* * * * * 

(b) * * * The recipient’s entire grant 

must be expended for eligible costs 

within 24 months after the date HUD 

signs the grant agreement with the 

recipient (‘‘period of performance’’), 

except for funds used for administrative 

closeout costs as provided by 2 CFR 

200.403(h). * * * 

* * * * * 

■ 55. In § 576.404, revise the last 

sentence of paragraph (a) and the 

introductory text for paragraph (b) to 

read as follows: 

§ 576.404 Conflicts of interest. 

(a) * * * Recipients and 

subrecipients must also comply with the 

applicable organizational conflicts of 

interest requirements under 2 CFR 

200.317 through 200.319. 

(b) Individual conflicts of interest. 

When procuring goods and services in 

accordance with 2 CFR part 200, the 

recipient or subrecipient must comply 

with the applicable conflict of interest 

requirements under 2 CFR 200.317 and 

200.318. For all other transactions and 

activities, the following provisions 

apply: 

* * * * * 

■ 56. In § 576.500, revise paragraphs (y) 

and (z)(1) to read as follows: 

§ 576.500 Recordkeeping and reporting 

requirements. 

* * * * * 

(y) Period of record retention. All 

records related to the recipient’s ESG 

grant must be kept for the longer of 5 

years, the minimum period described in 

paragraphs (y)(1) through (3) of this 

section, or the minimum period that 2 

CFR part 200 (2 CFR 200.334) provides 

for specific situations or records. 

(1) Documentation of each program 

participant’s qualification as a family or 

individual at risk of homelessness or as 

a homeless family or individual and 

other program participant records must 

be kept for at least 5 years after the 

expenditure of all funds from the grant 

under which the program participant 

was served; 

(2) Where ESG funds are used for the 

renovation of an emergency shelter 

involves costs charged to the ESG grant 

that exceed 75 percent of the value of 

the building before renovation, records 

must be kept for at least 10 years after 

the date that ESG funds are first 

obligated for the renovation; and 

(3) Where ESG funds are used to 

convert a building into an emergency 

shelter and the costs charged to the ESG 

grant for the conversion exceed 75 

percent of the value of the building after 

conversion, records must be kept for at 

least 10 years after the date that ESG 

funds are first obligated for the 

conversion. 

(z) * * * 

(1) Federal Government rights. 

Notwithstanding the confidentiality 

procedures established under paragraph 

(x) of this section, the recipient and its 


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subrecipients must comply with the 

requirements for access to records in 2 

CFR 200.337. 

* * * * * 

PART 578—CONTINUUM OF CARE 

■ 57. The authority citation for part 578 

continues to read as follows: 

Authority: 12 U.S.C. 1701x, 1701 x–1; 42 

U.S.C. 11381 et seq., 42 U.S.C. 3535(d). 

■ 58. In § 578.63: 

■ a. Revise paragraph (b); 

■ b. Redesignate paragraph (c) as 

paragraph (d); and 

■ c. Add a new paragraph (c). 

The revision and addition read as 

follows: 

§ 578.63 Indirect costs. 

* * * * * 

(b) Allocation to eligible activities 

under §§ 578.39 through 578.57 and 

578.61. Indirect costs may be allocated 

to an eligible activity under §§ 578.39 

through 578.57 and 578.61, provided 

that: 

(1) The applicable indirect cost 

methodology and requirements under 2 

CFR part 200, subpart E, would allow 

for allocation of indirect costs to a 

specific activity by applying the indirect 

cost rate to only the allowable direct 

costs of that activity that are included 

within the applicable direct cost base; 

and 

(2) The sum of direct costs and 

indirect costs charged for eligible 

activities under §§ 578.39 and 578.41 

would not exceed the expenditure limits 

in §§ 578.39(a) and 578.41(a) 

respectively. 

(c) Allocation to administrative costs 

under § 578.59. Indirect costs that 

cannot be allocated to an eligible 

activity under paragraph (b) of this 

section, but can otherwise be allocated 

to the CoC program grant under 2 CFR 

part 200, subpart E, may be charged to 

the grant as administrative costs under 

§ 578.59, provided the sum of direct and 

indirect costs charged as administrative 

costs does not exceed the applicable 

expenditure limit in § 578.59. Costs that 

may only be charged in this manner 

include any amount of indirect costs 

that is determined by applying the 

indirect cost rate to ‘‘up to the first 

$50,000 of each subaward’’ as provided 

by the MTDC definition in 2 CFR 200.1, 

where indirect costs are determined by 

applying the indirect cost rate to MTDC. 

* * * * * 

■ 59. In § 578.95: 

■ a. Revise paragraphs (a) and (b); and 

■ b. Add a sentence to the end of 

paragraph (c). 

The revision and addition read as 

follows: 

§ 578.95 Conflicts of interest. 

(a) Procurement. When procuring 

goods and services in accordance with 

2 CFR part 200, the recipient or 

subrecipient must comply with the 

applicable conflict of interest 

requirements in 2 CFR 200.317 through 

200.319. 

(b) Continuum of Care board 

members. No Continuum of Care or 

collaborative applicant board member 

may participate in or influence 

discussions or resulting decisions 

concerning the award of a grant or other 

financial benefits to the organization 

that the member represents. 

(c) * * * No recipient or subrecipient 

may have an organizational conflict of 

interest. Recipients and subrecipients 

must also maintain standards of conduct 

covering organizational conflicts of 

interest described in 2 CFR 200.318. 

PART 700—CONGREGATE HOUSING 

SERVICES PROGRAM 

■ 60. The authority citation for part 700 

continues to read as follows: 

Authority: 42 U.S.C. 3535(d) and 8011. 

§ 700.175 [Amended] 

■ 61. In § 700.175(b), remove ‘‘and 

200.319(a)(5)’’ and add in its place ‘‘and 

200.319(b) and (c)(5).’’ 

PART 880—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS PROGRAM 

FOR NEW CONSTRUCTION 

■ 62. The authority citation for part 880 

continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), 12701, and 13611–13619. 

§ 880.211 [Amended] 

■ 63. In § 880.211, remove ‘‘2 CFR 

200.69’’ and add in its place ‘‘2 CFR 

200.1’’. 

PART 881—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS PROGRAM 

FOR SUBSTANTIAL REHABILITATION 

■ 64. The authority citation for part 881 

continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), 12701, and 13611–13619. 

§ 881.211 [Amended] 

■ 65. In § 881.211(a), remove ‘‘2 CFR 

200.69’’ and add in its place ‘‘2 CFR 

200.1’’. 

PART 883—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS 

PROGRAM—STATE HOUSING 

AGENCIES 

■ 66. The authority citation for part 883 

continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), and 13611–13619. 

§ 883.313 [Amended] 

■ 67. In § 883.313, remove ‘‘2 CFR 

200.69’’ and add in its place ‘‘2 CFR 

200.1’’. 

PART 884—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS PROGRAM, 

NEW CONSTRUCTION SET-ASIDE FOR 

SECTION 515 RURAL RENTAL 

HOUSING PROJECTS 

■ 68. The authority citation for part 884 

continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), and 13611–13619. 

§ 884.124 [Amended] 

■ 69. In § 884.124, remove ‘‘2 CFR 

200.69’’ and add in its place ‘‘2 CFR 

200.1’’. 

PART 886—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS 

PROGRAM—SPECIAL ALLOCATIONS 

■ 70. The authority citation for part 886 

continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), and 13611–13619. 

§ 886.131 [Amended] 

■ 71. In § 886.131, remove ‘‘2 CFR 

200.69’’ and add in its place ‘‘2 CFR 

200.1’’. 

§ 886.336 [Amended] 

■ 72. In § 886.336, remove ‘‘2 CFR 

200.69’’ and add in its place ‘‘2 CFR 

200.1’’. 

PART 905—THE PUBLIC HOUSING 

CAPITAL FUND PROGRAM 

■ 73. The authority citation for part 905 

continues to read as follows: 

Authority: 42 U.S.C. 1437g, 42 U.S.C. 

1437z–2, 42 U.S.C. 1437z–7 and 3535(d). 

■ 74. In § 905.322 revise the first 

sentence in paragraphs (a) and (b)(1)(i) 

and (ii) to read as follows: 

§ 905.322 Fiscal closeout. 

(a) General. Each Capital Fund grant 

and/or development project is subject to 

fiscal closeout in accordance with 2 CFR 

200.344. * * * 

(b) * * * 

(1) * * * 

(i) Actual Development Cost 

Certificate (ADCC) is to be submitted 

according with 2 CFR 200.344. * * * 

(ii) Actual Modernization Cost 

Certificate (AMCC) for each grant, is to 

be submitted according with 2 CFR 

200.344, but no earlier than the 

obligation end date. * * * 

* * * * * 


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PART 964—TENANT PARTICIPATION 

AND TENANT OPPORTUNITIES IN 

PUBLIC HOUSING 

■ 75. The authority citation for part 964 

continues to read as follows: 

Authority: 42 U.S.C. 1437d, 1437g, 1437r, 

3535(d). 

§ 964.230 [Amended] 

■ 76. In § 964.230: 

■ a. In paragraph (a)(2), add ‘‘or a 

special purpose framework as approved 

by HUD’’ after ‘‘generally accepted 

government audit standards’’; and 

■ b. In paragraph (b), add ‘‘or a special 

purpose framework as approved by 

HUD’’ after ‘‘generally accepted 

government audit standards’’. 

PART 965—PHA-OWNED OR LEASED 

PROJECTS—GENERAL PROVISIONS 

■ 77. The authority citation for part 965 

continues to read as follows: 

Authority: 42 U.S.C. 1437, 1437a, 1437d, 

1437g, and 3535(d). Subpart H is also issued 

under 42 U.S.C. 4821–4846. 

§ 965.205 [Amended] 

■ 78. In § 965.205(d)(1), add ‘‘or a 

special purpose framework as approved 

by HUD’’ after ‘‘generally accepted 

accounting principles’’ wherever it 

appears. 

§ 965.308 [Amended] 

■ 79. In § 965.308: 

■ a. In paragraph (a)(1), remove ‘‘2 CFR 

200.320(d)’’ wherever it appears and 

add in its place ‘‘2 CFR 200.320(b)(2)’’; 

and 

■ b. In paragraph (a)(2), remove ‘‘2 CFR 

200.320(f)’’ and add in its place ‘‘2 CFR 

200.320(c)’’. 

PART 970—PUBLIC HOUSING 

PROGRAM—DEMOLITION OR 

DISPOSITION OF PUBLIC HOUSING 

PROJECTS 

■ 80. The authority citation for part 970 

continues to read as follows: 

Authority: 42 U.S.C. 1437p and 3535(d). 

■ 81. In § 970.1, revise the last sentence 

to read as follows: 

§ 970.1 Purpose. 

* * * The regulations in 2 CFR part 

200 are not applicable to this part 

except: if the PHA requests to retain the 

public housing property, in which case, 

2 CFR 200.311(d)(1) applies; and if the 

PHA disposes of equipment or supplies, 

2 CFR 200.313 and 200.314 apply. 

PART 990—THE PUBLIC HOUSING 

OPERATING FUND PROGRAM 

■ 82. The authority citation for part 990 

continues to read as follows: 

Authority: 42 U.S.C. 1437g; 42 U.S.C. 

3535(d). 

§ 990.280 [Amended] 

■ 83. In § 990.280(b)(2), remove ‘‘2 CFR 

part 200it’’ and add in its place ‘‘2 CFR 

part 200), it’’. 

PART 1000—NATIVE AMERICAN 

HOUSING ACTIVITIES 

■ 84. The authority citation for part 

1000 continues to read as follows: 

Authority: 25 U.S.C. 4101 et seq.; 42 

U.S.C. 3535(d). 

■ 85. In § 1000.26: 

■ a. Revise paragraph (a); and 

■ b. Add a heading to paragraph (b). 

The revision and addition read as 

follows: 

§ 1000.26 What are the administrative 

requirements under NAHASDA? 

(a) Uniform Administrative 

Requirements. Except as addressed in 

§ 1000.28, recipients shall comply with 

the requirements and standards of 2 

CFR part 200, ‘‘Uniform Administrative 

Requirements, Cost Principles, And 

Audit Requirements for Federal 

Awards’’, except for the following 

sections: 

(1) 2 CFR 200.1 applies, except that, 

in lieu of the definition for Indian Tribe, 

the definition for Indian Tribe in section 

104 of NAHASDA (25 U.S.C. 4103) will 

apply. 

(2) 2 CFR 200.113 applies, except that, 

in lieu of the remedies described in 2 

CFR 200.339, HUD shall be authorized 

to seek remedies under subpart F of this 

part. 

(3) 2 CFR 200.302(a). 

(4) 2 CFR 200.305 applies, except that 

HUD shall not require a recipient to 

expend retained program income before 

drawing down or expending IHBG 

funds. 

(5) 2 CFR 200.306. 

(6) 2 CFR 200.307. 

(7) 2 CFR 200.308. 

(8) 2 CFR 200.311, except as provided 

in § 5.109 of this title. 

(9) 2 CFR 200.313 applies except that 

a TDHE may follow the Tribal laws and 

procedures contemplated in 2 CFR 

200.313(b) of the Indian Tribe they 

serve. 

(10) 2 CFR 200.314 applies, except in 

all cases in which the supplies are sold, 

the proceeds shall be program income. 

(11) 2 CFR 200.317 applies except as 

modified in this paragraph (a)(11): 

(i) Procurement policies and 

procedures. A TDHE may follow the 

same policies and procedures on 

procurement used by the Indian tribe 

they serve. 

(ii) De minimis procurement. 

Regardless of the Tribe’s policies and 

procedures for procurement, 

procurements using a grant provided 

under NAHASDA cannot be subject to 

competitive procurement requirements 

when the value of the goods and 

services is less than $5,000, or such 

other higher amount as may be 

established in NAHASDA. 

(iii) Utilizing Federal supply sources 

in procurement. In accordance with 

section 101(j) of NAHASDA, recipients 

may use Federal supply sources made 

available by the General Services 

Administration pursuant to 40 U.S.C. 

501. 

(12) 2 CFR 200.318 through 200.327 

apply, as modified in this paragraph 

(a)(12): 

(i) General. These provisions apply 

when a Tribe does not have their own 

policies and procedures for 

procurement with non-Federal funds or 

when a TDHE does not follow the 

policies and procedures for 

procurement with non-Federal funds of 

the Tribe they serve. 

(ii) De minimis procurement. A 

recipient shall not be required to 

comply with 2 CFR 200.318 through 

200.327 with respect to any 

procurement, using a grant provided 

under NAHASDA, of goods and services 

with a value of less than $5,000, or such 

other higher amount as may be 

established in NAHASDA. 

(iii) Utilizing Federal supply sources 

in procurement. In accordance with 

section 101(j) of NAHASDA, recipients 

may use Federal supply sources made 

available by the General Services 

Administration pursuant to 40 U.S.C. 

501. 

(13) 2 CFR 200.326 applies. There 

may be circumstances under which the 

bonding requirements of 2 CFR 200.326 

are inconsistent with other 

responsibilities and obligations of the 

recipient. In such circumstances, 

acceptable methods to provide 

performance and payment assurance 

may include: 

(i) Deposit with the recipient of a cash 

escrow of not less than 20 percent of the 

total contract price, subject to reduction 

during the warranty period, 

commensurate with potential risk; 

(ii) Letter of credit for 25 percent of 

the total contract price, unconditionally 

payable upon demand of the recipient, 

subject to reduction during any 

warranty period commensurate with 

potential risk; or 

(iii) Letter of credit for 10 percent of 

the total contract price, unconditionally 

payable upon demand of the recipient, 

subject to reduction during any 

warranty period commensurate with 

potential risk, and compliance with the 


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procedures for monitoring of 

disbursements by the contractor. 

(14) 2 CFR 200.329(c) through (e) and 

(g), ‘‘Monitoring and reporting program 

performance.’’ 

(15) 2 CFR 200.334. 

(16) 2 CFR 200.339. 

(17) 2 CFR 200.344. 

(b) Cost principles. 

* * * * * 

■ 86. In § 1000.30, revise paragraph (a) 

to read as follows: 

§ 1000.30 What prohibitions regarding 

conflict of interest are applicable? 

(a) Applicability. When procuring 

goods and services in accordance with 

2 CFR part 200, the recipient or 

subrecipient must comply with the 

applicable conflict of interest 

requirements in 2 CFR 200.317 through 

200. 319. In all other situations, the 

provisions of this section apply. 

* * * * * 

§ 1000.52 [Amended] 

■ 87. In § 1000.52(c)(2)(iii), remove 

‘‘through 200.326’’ and add in its place 

‘‘through 200.327’’. 

■ 88. Add § 1000.438 to read as follows: 

§ 1000.438 Are Title VI lenders and holders 

of Title VI guarantee certificates required to 

register for the System for Award 

Management (SAM) and obtain a Unique 

entity identifier (UEI)? 

Yes. All Title VI lenders and holders 

of Title VI guarantee certificates must 

complete entity validations and acquire 

a unique entity identifier (UEI) in 

SAM.gov per 2 CFR 25.105. 

PART 1003—COMMUNITY 

DEVELOPMENT BLOCK GRANTS FOR 

INDIAN TRIBES AND ALASKA NATIVE 

VILLAGES 

■ 89. The authority citation for part 

1003 continues to read as follows: 

Authority: 42 U.S.C. 3535(d) and 5301 et 

seq. 

§ 1003.4 [Amended] 

■ 90. In § 1003.4, in the definition for 

‘‘Subrecipient’’, remove ‘‘through 

200.326’’ and add in its place ‘‘through 

200.327’’. 

■ 91. In § 1003.501, revise paragraphs 

(a) and (b)(1)(iii) to read as follows: 

§ 1003.501 Applicability of uniform 

administrative requirements and cost 

principles. 

(a) Uniform Administrative 

Requirements. Grantees and 

subrecipients shall comply with the 

requirements and standards of 2 CFR 

part 200, except for the following 

sections: 

(1) 2 CFR 200.1 applies, except that, 

in lieu of the definition for Indian Tribe, 

the definition for Indian tribe in section 

102 of the Housing and Community 

Development Act of 1974 (42 U.S.C. 

5302) will apply, and in lieu of the 

definition for Subrecipient, the 

definition for Subrecipient at § 1003.4 

will apply. 

(2) 2 CFR 200.302(a). 

(3) 2 CFR 200.306. 

(4) 2 CFR 200.307 applies as modified 

by § 1003.503. 

(5) 2 CFR 200.308. 

(6) 2 CFR 200.311 except as provided 

in § 1003.600. 

(7) 2 CFR 200.313 applies, except that 

Tribal Organizations may follow the 

Tribal laws and procedures used by the 

Indian tribe it serves. In all cases in 

which the equipment is sold, the 

proceeds shall be program income in 

accordance with § 1003.503. 

(8) 2 CFR 200.314 applies, except in 

all cases in which the supplies are sold, 

the proceeds shall be program income in 

accordance with § 1003.503. 

(9) 2 CFR 200.317 applies, except that 

Tribal Organization may follow the 

same policies and procedures on 

procurement used by the Indian tribe it 

serves. 

(10) 2 CFR 200.326 applies. However, 

there may be circumstances under 

which the bonding requirements of 2 

CFR 200.326 are inconsistent with other 

responsibilities and obligations of the 

grantee. In such circumstances, 

acceptable methods to provide 

performance and payment assurance 

may include: 

(i) Deposit with the grantee of a cash 

escrow of not less than 20 percent of the 

total contract price, subject to reduction 

during the warranty period, 

commensurate with potential risk; or 

(ii) Letter of credit for 25 percent of 

the total contract price, unconditionally 

payable upon demand of the grantee, 

subject to reduction during the warranty 

period commensurate with potential 

risk. 

(11) 2 CFR 200.329(c) through (e) and 

(g). 

(12) 2 CFR 200.334 applies. However, 

the retention period referenced in 2 CFR 

200.334 pertaining to individual ICDBG 

activities starts from the date of the 

submission of the final status and 

evaluation report as prescribed in 

§ 1003.506(a) in which the specific 

activity is reported. 

(13) 2 CFR 200.344. 

(b) * * * 

(1) * * * 

(iii) Costs of housing (e.g., 

depreciation, maintenance, utilities, 

furnishings, rent), housing allowances, 

and personal living expenses (goods or 

services for personal use, 2 CFR 

200.445) require prior HUD approval. 

* * * * * 

§ 1003.503 [Amended] 

■ 92. In § 1003.503(b)(7), remove ‘‘2 

CFR 200.307(e)(2)’’ and add in its place 

‘‘2 CFR 200.307(b)(2)’’. 

§ 1003.507 [Amended] 

■ 93. In § 1003.507, remove ‘‘2 CFR 

200.337’’ and add in its place ‘‘2 CFR 

200.338’’. 

§ 1003.508 [Amended] 

■ 94. In § 1003.508: 

■ a. In paragraph (d), remove ‘‘2 CFR 

200.339’’ and add in its place ‘‘2 CFR 

200.340’’; and 

■ b. In paragraph (e), remove ‘‘2 CFR 

200.342’’ and add in its place ‘‘2 CFR 

200.343’’. 

§ 1003.510 [Amended] 

■ 95. In § 1003.510(d)(3), remove ‘‘of 2 

CFR 200.320.’’ and add in its place ‘‘of 

2 CFR 200.320.’’. 

■ 96. In § 1003.606, revise paragraph (a) 

to read as follows: 

§ 1003.606 Conflict of interest. 

(a) Applicability. When procuring 

goods and services in accordance with 

2 CFR part 200, the grantee or 

subrecipient must comply with the 

applicable conflict of interest 

requirements in 2 CFR 200.317 through 

200.319. In all other situations, the 

provisions of this section apply. 

* * * * * 

PART 1005—LOAN GUARANTEES 

FOR INDIAN HOUSING 

■ 97. The authority citation for part 

1005 continues to read as follows: 

Authority: 12 U.S.C. 1715z–13a; 15 U.S.C. 

1639c; 42 U.S.C. 3535(d). 

§ 1005.217 [Amended] 

■ 98. In § 1005.217(b)(7), remove 

‘‘1005.219(d)(3)’’ and add in its place 

‘‘1005.219(f)(3)’’. 

■ 99. In § 1005.219: 

■ a. Redesignate paragraphs (b) through 

(e) as paragraphs (d) through (g); and 

■ b. Add new paragraphs (b) and (c). 

The additions read as follows: 

§ 1005.219 Other requirements. 

* * * * * 

(b) Registration in SAM.gov. All 

Holders and Direct Guarantee Lenders 

must complete entity validations and 

acquire a UEI in SAM.gov per 2 CFR 

25.105. 

(c) Compliance with 2 CFR part 200, 

subpart F. All Holders and Direct 

Guarantee Lenders that are States, local 

governments, Tribes, or nonprofit 


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Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Proposed Rules 107099 

organizations must comply with the 

audit requirements of 2 CFR part 200, 

subpart F. 

* * * * * 

§ 1005.739 [Amended] 

■ 100. In § 1005.739(h), remove 

‘‘1005.219(d)(2)’’ and add in its place 

‘‘1005.219(f)(2)’’. 

§ 1005.803 [Amended] 

■ 101. In § 1005.803(a), remove 

‘‘1005.219(d)(2)’’ and add in its place 

‘‘1005.219(f)(2)’’. 

PART 1006—NATIVE HAWAIIAN 

HOUSING BLOCK GRANT PROGRAM 

■ 102. The authority citation for part 

1006 continues to read as follows: 

Authority: 12 U.S.C. 1701x, 1701x–1; 25 

U.S.C. 4221 et seq.; 42 U.S.C. 3535(d), Pub. 

L. 115–141, Pub. L. 116–6, Pub. L. 116–94, 

Pub. L. 116–260, Pub. L. 117–103, Pub. L. 

117–328. 

■ 103. In § 1006.340, revise paragraph 

(b) to read as follows: 

§ 1006.340 Treatment of program income. 

* * * * * 

(b) Authority to retain. The DHHL 

may retain any program income that is 

realized from any NHHBG funds if: 

(1) That income was realized after the 

initial disbursement of the NHHBG 

funds received by the DHHL; and 

(2) The DHHL agrees to use the 

program income for affordable housing 

activities in accordance with the 

provisions of the Act and this part. 

* * * * * 

■ 104. Revise § 1006.360 to read as 

follows: 

§ 1006.360 Conflict of interest. 

When procuring goods and services in 

accordance with 2 CFR part 200, DHHL 

and its contractors must comply with 

the applicable conflict of interest 

requirements in 2 CFR 200.317 through 

200.319. 

■ 105. In § 1006.370: 

■ a. Revise paragraph (a); 

■ b. Add a heading to paragraph (b); 

■ c. Revise paragraphs (b)(1)(iii) and 

(b)(2); and 

■ d. Add paragraph (c). 

The revisions and additions read as 

follows: 

§ 1006.370 Uniform administrative, 

requirements, cost principles, and audit 

requirements for Federal awards. 

(a) Uniform Administrative 

Requirements. The DHHL and 

subrecipients receiving NHHBG funds 

shall comply with the requirements and 

standards of 2 CFR part 200, ‘‘Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards’’ except as otherwise 

provided by this section. 

(b) Cost principles. 

(1) * * * 

(iii) Costs of housing (e.g., 

depreciation, maintenance, utilities, 

furnishings, rent), housing allowances, 

and personal living expenses (goods or 

services for personal use, 2 CFR 

200.445). 

* * * * * 

(2) In addition, no person providing 

consultant services in an employeremployee type of relationship shall 

receive more than a reasonable rate of 

compensation for personal services paid 

with NHHBG funds. In no event, 

however, shall such compensation 

exceed the equivalent of the daily rate 

paid for Level IV of the Executive 

Schedule. The Executive Pay Schedule 

can be obtained by visiting https://

www.opm.gov/policy-data-oversight/ 

pay-leave/salaries-wages. 

(c) Section 200.305 applies, except 

that HUD shall not require DHHL to 

expend retained program income before 

drawing down or expending NHHBG 

funds. 

§ 1006.420 [Amended] 

■ 106. In § 1006.420(b)(3), remove ‘‘2 

CFR 200.333’’ and add in its place ‘‘2 

CFR 200.334’’. 

PART 1007—SECTION 184A LOAN 

GUARANTEES FOR NATIVE 

HAWAIIAN HOUSING 

■ 107. The authority citation for part 

1007 continues to read as follows: 

Authority: 12 U.S.C. 1715z–13b; 15 U.S.C. 

1639c; 42 U.S.C. 3535(d). 

■ 108. In § 1007.50, add paragraphs (e) 

and (f) to read as follows: 

§ 1007.50 Certificate of guarantee. 

* * * * * 

(e) Registration in SAM.gov. All 

lenders and subsequent holders of the 

loan guarantee must complete entity 

validations and acquire a UEI in 

SAM.gov per 2 CFR 25.105. 

(f) Compliance with 2 CFR part 200, 

subpart F. All lenders and subsequent 

holders of the loan guarantee that are 

States, local governments, or nonprofit 

organizations must comply with the 

audit requirements of 2 CFR part 200, 

subpart F. 

Damon Y. Smith, 

General Counsel. 

[FR Doc. 2024–30260 Filed 12–30–24; 8:45 am] 

BILLING CODE 4210–67–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 700 

[EPA–HQ–OPPT–2024–0501; FRL–12463– 

01–OCSPP] 

Preliminary Lists Identifying 

Manufacturers Subject to Fee 

Obligations for Five Chemical 

Substances Undergoing EPA-Initiated 

Risk Evaluations Under the Toxic 

Substances Control Act (TSCA); Notice 

of Availability and Request for 

Comment 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Determination; request for 

comments. 

SUMMARY: The Environmental Protection 

Agency (EPA or Agency) is announcing 

the availability of and soliciting 

comment on the preliminary lists of 

manufacturers (including importers) of 

five chemical substances that have been 

designated as High-Priority Substances 

for risk evaluation under the Toxic 

Substances Control Act (TSCA) and for 

which fees will be charged. As required 

by TSCA, EPA established fees to defray 

a portion of the costs associated with 

administering certain provisions of 

TSCA. The comment period provides an 

opportunity for the public to provide 

comments, self-identify, or correct 

errors on the preliminary lists. In 

addition, manufacturers (including 

importers) are required to self-identify 

as a manufacturer (or importer) of one 

or more the five identified High-Priority 

Substances irrespective of whether they 

are included on the preliminary lists, 

and may use this period to do so. Where 

appropriate, entities may also avoid or 

reduce fee obligations by making certain 

certifications consistent with the TSCA 

Fees Rule. EPA expects to publish final 

lists of manufacturers (including 

importers) subject to fees no later than 

concurrently with the publication of the 

final scope documents for risk 

evaluations of these five High-Priority 

Substances. Manufacturers (including 

importers) identified on the final lists 

will be subject to the applicable fees. 

DATES: Comments must be received on 

or before March 3, 2025. 

ADDRESSES: Submit your comments, 

identified by docket identification (ID) 

number EPA–HQ–OPPT–2024–0501, 

online at https://www.regulations.gov. 

Follow the online instructions for 

submitting comments. Do not submit 

electronically any information you 

consider to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 


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