A State must allocate to its local governments or to nonprofit organizations the entire grant, except for the up to five percent used to administer the grant. The administrative funds must be shared with local government grantees in that State. A State recipient should have all of its grant obligated by 180 days from the date on which the State made the grant available to it, and spent the entire grant within 24 months of this date. For the homeless prevention set aside, the State has 180 days to make the funds available to its recipients, and the recipients have 30 days to obligate and 180 days to spend the funds. Each local government grantee should have all of its grant obligated by 180 days from its grant award by HUD, and entirely spent within 24 months.
Grantees can use up to five percent of the allocation for administering the grant.
In the case of State grantees, the grant for administration must be shared with funded recipients. Each grantee shall annually report on its uses of funds and program progress in a HUD-approved format within 90 days after the close of its program year. Local governments report via an on-line computer linkup with HUD, and a consolidated annual performance and evaluation report. Most States will report their performance in a written format. According to the ESG regulations, grantees and recipients must retain records for four years from the date of submission of the annual performance report.