Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 110 - STATE ADMINISTRATION OF THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR SMALL CITIES › Subpart B - REVOLVING FUNDS › Section 110.340 - Department Monitoring

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				grantee shall be responsible for operating the RF in accordance with the terms
				of its CDAP grant agreements and its RF Plan.
b) The grantee shall permit any agent
				authorized by the Department, upon presentation of credentials, to have full
				access to and the right to examine any documents, papers, and records of the
				grantee and the RF relating to transactions of the RF.
c) The Department shall monitor RF programs
				using on-site visits, semi-annual status reports submitted by the grantee,
				disbursement transactions and other contacts with the grantee as
				necessary.
d) Department monitoring
				procedures shall concentrate on financial assistance evaluation and
				decision-making as well as servicing and monitoring of RF agreements. The
				grantee shall remain responsible for the actions, compliance and recordkeeping
				of its administrator. Grantee communities are responsible for establishing a
				system to monitor the performance of their RF administrator.
e) Pursuant to its obligations under the Act,
				this Part, and the applicable grant agreements, the Department will conduct a
				program of RF visitations for the purpose of providing technical assistance and
				monitoring the operations of the local RF grantees. As a result of those
				visits, the Department may take any of the following actions, by way of
				sanctions against inappropriate local RF activities or against the grantee
				jurisdiction:
1) issue "Findings" outlining
				deficiencies in the RF operations and requiring that they be corrected within a
				specified time;
2) the Findings may
				mandate the return to the RF account, from non-Block Grant sources, amounts
				disbursed for ineligible activities;
3) require for a specified period of time
				(including permanently) that an RF seek prior written approval from the
				Department for any specified activity. Specified activities may be limited, for
				instance, to include only new Financial Assistance Agreements made, or may
				include all RF activities. This sanction may include the requirement that all
				application materials for new financial assistance be forwarded for review to
				the Department;
4) the grantee may
				be deemed to be unable to continue operations of a local RF program, in which
				case the Department may take any of the following actions:
A) revocation of local authority to operate a
				CDBG RF;
B) instruct the grantee to
				continue to collect loan payments of existing Financial Assistance Agreements
				and service the current portfolio. However, no additional Financial Assistance
				Agreements would be allowed to be made from the portfolio. Instead, on a yearly
				basis the balance available in the account would be returned to the Department;
				and
C) instruct the grantee to turn
				over the cash balance and loans in the RF to the Department.