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§ 583 . 410 24 CFR Ch . V ( 44409 Edition ) <br /> § 583 . 410 Obligation and deobligation of <br /> funds. <br /> ( a ) Obligation of funds. When HUD and the <br /> applicant execute a grant agreement, funds are <br /> obligated to cover the amount of the approved <br /> assistance under subpart B of this part. The <br /> recipient will be expected to carry out the <br /> supportive housing or supportive services <br /> activities as proposed in the application . <br /> ( b) Increases . After the initial obligation of <br /> funds, HUD will not make revisions to increase <br /> the amount obligated . <br /> (c) Deobligation . ( 1 ) HUD may deobligate <br /> all or parts of grants for acquisition , <br /> rehabilitation , acquisition and rehabilitation , or <br /> new construction : <br /> ( i ) If the actual total cost of acquisition , <br /> rehabilitation , acquisition and rehabilitation, or <br /> new construction is less than the total cost <br /> anticipated in the application ; or <br /> ( ii) If proposed activities for which funding <br /> was approved are not begun within three <br /> months or residents do not begin to occupy the <br /> facility within nine months after grant execution . <br /> ( 2 ) HUD may deobligate the amounts for <br /> annual leasing costs, operating costs or <br /> supportive services in any year : <br /> ( i ) If the actual leasing costs, operating <br /> costs or supportive services for that year are <br /> less than the total cost anticipated in the <br /> application ; or <br /> ( ii ) If the proposed supportive housing <br /> operations are not begun within three months <br /> after the units are available for occupancy. <br /> ( 3 ) The grant agreement may set forth in <br /> detail other circumstances under which funds <br /> may be deobligated, and other sanctions may <br /> be imposed . <br /> (4) HUD may : <br /> ( i ) Readvertise the availability of funds that <br /> have been deobligated under this section in a <br /> notice of fund availability under § 583 . 200, or <br /> ( ii ) Award deobligated funds to applications <br /> previously submitted in response to the most <br /> recently published notice of fund availability, <br /> and in accordance with subpart C of this part. <br /> www . hud. gov cspunol . hud. gov Page 21 <br />