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( b) ( 2) of this section , HUD will consider the Significant changes that require approval include, cumulative effect of the following factors, where but are not limited to , a change in sponsor, a applicable : change in the project site for SRO or PRA with ( i ) Whether the exception would provide a rehabilitation projects, and a change in the type significant cost benefit or an essential degree of of persons with disabilities to be served . expertise to the project which would otherwise Depending on the nature of the change, HUD may require a new certification of consistency not be available ; with the CHAS (see Sec . 582 . 120) . ( ii ) Whether the person affected is a member of a group or class of eligible persons and the ( b) Approval . Approval for such changes is exception will permit such person to receive contingent upon the application ranking generally the same interests or benefits as are remaining high enough to have been being made available or provided to the group or competitively selected for funding in the year the class ; application was selected . ( iii ) Whether the affected person has Sec. 582.410 Obligation and deobligation of withdrawn from his or her functions or funds. responsibilities , or the decisionmaking process (a ) Obligation of funds . When HUD and the with respect to the specific assisted activity in applicant execute a grant agreement, HUD will question ; obligate funds to cover the amount of the ( iv) Whether the interest or benefit was approved grant . The recipient will be expected to present before the affected person was in a carry out the activities as proposed in the position as described in paragraph ( b) ( 1 ) of this application . After the initial obligation of funds, section ; HUD is under no obligation to make any upward revisions to the grant amount for any approved ( v) Whether undue hardship will result either assistance . to the recipient or the person affected when ( b ) Deobligation . ( 1 ) HUD may deobligate all weighed against the public interest served by or a portion of the approved grant amount if such avoiding the prohibited conflict ; and amount is not expended in a timely manner, or (vi ) Any other relevant considerations . the proposed housing for which funding was approved or the supportive services proposed in the application are not provided in accordance [ 58 FR 13892, Mar. 15 , 1993 , as amended at 61 with the approved application , the requirements FR 5210 , Feb . 9, 1996 ; 61 FR 51171 , Sept . 30 , of this part, and other applicable HUD 1996 ; 62 FR 13539, Mar. 21 , 1997 ] regulations. The grant agreement may set forth Subpart E -Administration other circumstances under which funds may be deobligated , and other sanctions may be Sec. 582 .400 Grant agreement. imposed . (a ) General . The grant agreement will be ( 2 ) HUD may readvertise, in a notice of fund between HUD and the recipient. HUD will hold availability, the availability of funds that have the recipient responsible for the overall been deobligated , or may reconsider applications administration of the program , including that were submitted in response to the most overseeing any subrecipients or contractors . recently published notice of fund availability and Under the grant agreement, the recipient must select applications for funding with the agree to operate the program in accordance with deobligated funds . Such selections would be the provisions of this part and other applicable made in accordance with the selection process HUD regulations . described in Sec. 582 . 220 of this part . Any ( b) Enforcement. HUD will enforce the selections made using deobligated funds will be subject to applicable appropriation act obligations in the grant agreement through such requirements governing the use of deobligated action as may be necessary, including recapturing assistance awarded under the funding authority . program . (Approved by the Office of Management and Sec. 582.405 Program changes. Budget under control number 2506- 0118) ( a ) Changes. HUD must approve , in writing , any significant changes to an approved program . 12