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A TRUE COPY <br /> CERTIFICATION ON LAST PAGE <br /> J . R. SMITH, CLERK <br /> ( 1 ) HUD may instruct the recipient to submit and comply with proposals for action to correct, mitigate, and prevent <br /> noncompliance with program requirements, including: <br /> (i) Preparing and following a schedule of actions for carrying out activities and projects affected by the <br /> noncompliance, including schedules, timetables, and milestones necessary to implement the affected activities and <br /> projects; <br /> (ii) Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions; <br /> (iii) Canceling or revising activities or projects likely to be affected by the noncompliance, before expending grant <br /> funds for them, <br /> (iv) Reprogramming grant funds that have not yet been expended from affected activities or projects to other eligible <br /> activities or projects ; <br /> (v) Suspending disbursement of grant funds for some or all activities or projects ; <br /> (vi) Reducing or terminating the remaining grant of a subrecipient and either reallocating those funds to other <br /> subrecipients or returning funds to HUD ; and <br /> (vii) Making matching contributions before or as draws are made from the recipient's grant. <br /> (2) HUD may change the method of payment to a reimbursement basis. <br /> (3) HUD may suspend payments to the extent HUD determines necessary to preclude the further expenditure of <br /> funds for affected activities or projects. <br /> (4) HUD may continue the grant with a substitute recipient of HUD's choosing . <br /> (5) HUD may deny matching credit for all or part of the cost of the affected activities and require the recipient to <br /> make further matching contributions to make up for the contribution determined to be ineligible. <br /> (6) HUD may require the recipient to reimburse the recipient's line of credit in an amount equal to the funds used for <br /> the affected activities. <br /> (7) HUD may reduce or terminate the remaining grant of a recipient. <br /> (8) HUD may condition a future grant. <br /> (9) HUD may take other remedies that are legally available. <br /> (c) Recipient sanctions. If the recipient determines that a subrecipient is not complying with a program requirement <br /> or its subrecipient agreement, the recipient must take one of the actions listed in paragraphs (a) and (b) of this <br /> section. <br /> (d) Deobligation. HUD may deobligate funds for the following reasons : <br /> � <br /> ( 1 ) If the timeliness standards in §578 . 85 are not met; ; :. ; ANr 7t ) r 4. ;; ,'; ; x <br /> t <br /> (2) If HUD determines that delays completing construction activities for a projeet will mean that the funds,for other , N , ;. <br /> funded activities cannot reasonably be expected to be expended for eligible cosh during the remaining term ofth _ '; aV i <br /> grant. <br />