FAQ - EXPENDITURE DEADLINE

Question

Are NSP grantees required to ensure all NSP-assisted units are occupied by the 100 percent expenditure deadline?

Answer

No. The expenditure deadline for all three NSP programs only applies to expenditures. Grantees must spend 100 percent of the grant award amount by the expenditure deadline. This does not mean that all units must be occupied by that date. However, grantees will not be able to close out their grants until all of activities have met a National Objective, which requires housing units to be occupied with LMMI households. HUD is currently working on close out instructions and will be following the applicable regulations at 24 CFR 570.509. These regulations do not include a timeline requirement, and HUD has yet to impose a deadline for close out. However, HUD anticipates determining a close out schedule that will allow grantees to have sufficient time to work towards meeting all national objectives.