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r r Ofc. of Asst. Secy., Comm. Planning, Develop., HUD § 582.410 has been public disclosure of the con- (b) Enforcement. HUD will enforce the flict and a description of how the pub- obligations in the grant agreement lic disclosure was made; and through such action as may be nec- (ii) For all recipients, an opinion of essary, including recapturing assist- the recipient's attorney that the inter- ance awarded under the program. est for which the exception is sought would not violate State or local law. § 582.405 Program changes. (3) In determining whether to grant a (a) Changes. HUD must approve, in requested exception after the recipient has satisfactorily met the requirement Writing, any significant changes to an of paragraph (b) (2) of this section, HUD approved program. Significant changes will consider the cumulative effect of that require approval include, but are the following factors, where applicable : not limited to, a change in sponsor , a (i) Whether the exception would pro- change in the project site for SRO or vide a significant cost benefit or an es- PRA with rehabilitation projects, and sential degree of expertise to the a change in the type of persons with project which would otherwise not be disabilities to be served. Depending on available; the nature of the change, HUD may re- (ii) Whether the person affected is a quire a new certification of consistency member of a group or class of eligible with the CHAS (see § 582. 20) . persons and the exception will permit (b) Approval. Approval for such such person to receive generally the changes is contingent upon the applica- same interests or benefits as are being tion ranking remaining high enough to made available or provided to the have been competitively selected for group or class; funding in the year the application was (iii) Whether the affected person has selected. withdrawn from his or her functions or responsibilities, or the decisionmaking § 582.410 Obligation and deobligation process with respect to the specific as- of funds. sisted activity in question; (a) Obligation of funds. When HUD and (iv) Whether the interest or benefit was present before the affected person the applicant execute a grant agree- was in a position as described in para- ment, HUD will obligate funds to cover graph (b) (1) of this section; the amount of the approved grant. The (v) Whether undue hardship will re- recipient will be expected to carry out sult either to the recipient or the per- the activities as proposed in the appli- son affected when weighed against the cation. After the initial obligation of public interest served by avoiding the funds, HUD is under no obligation to prohibited conflict; and make any upward revisions to the - (vi) Any other relevant consider- grant amount for any approved assist- ations. ance. [58 FR 13892, Mar. 15, 1993, as amended at 61 (b) Deobligation. (1) HUD may FR 5210, Feb. 9, 1996; 61 FR 51171 , Sept. 30, deobligate all or a portion of the ap- 1996; 62 FR 13539, Mar. 21 . 19971 proved grant amount if such amount is not expended in a timely manner, or Subpart E—Administration the proposed housing for which funding was approved or the supportive services § 582.400 Grant agreement. proposed in the application are not pro- (a) General. The grant agreement will vided in accordance with the approved be between HUD and the recipient. application, the requirements of this HUD will hold the recipient responsible part, and other applicable HUD regula- for the overall administration of the tions. The grant agreement may set program, including overseeing any sub- forth other circumstances under which recipients or contractors. Under the funds may be deobligated, and other grant agreement, the recipient must sanctions may be imposed . agree to operate the program in ac- (2) HUD may readvertise, in a notice cordance with the provisions of this of fund availability, the availability of part and other applicable HUD regula- funds that have been deobligated, or tions. may reconsider applications that were 247