Virginia Law

A. Responsibility for grant administration. Grantees are responsible for ensuring that rental rehabilitation grants are administered in accordance with the requirements of these rules and regulations, all applicable sections of 24 CFR Part 511 and other applicable state and federal laws.

B. Records to be maintained. Each grantee must maintain records specified by the authority that clearly document its performance under each requirement of these rules and regulations. Required records must be retained for a period of three years from the date of final close-out of the rental rehabilitation grant. Public disclosure of records and documents must comply with the requirements of 24 CFR 511.73(c).

C. Grant management and audit. Each grantee must comply with the policies, guidelines and requirements of 24 CFR 511.11(c) in the acceptance and use of rental rehabilitation grant funds. Access to grantee records and files must be provided in accordance with the requirements of 24 CFR 511.74. The financial management systems used by grantees must conform to the requirements of 24 CFR 511.75.

D. Disbursement of funds/cash management systems. Grant monies will be disbursed to grantees for payment of eligible program costs in accordance with the following procedures:

1. Project accounts. Grantees must identify to the authority each project for which they wish to provide rental rehabilitation funds and the amount of grant monies to be committed to each project. Upon receipt of all necessary project information, the authority will establish a project account with HUD.

2. Disbursement of funds. Grant monies will be disbursed on a project-by-project basis by electronic funds transfer to a designated depository institution in accordance with HUD procedures and guidelines. The authority will designate a depository institution and make all requests to HUD for funds transfer, unless such authority is formally delegated to a grantee by the authority. Grantees will notify the authority of the need for grant funds to pay eligible rehabilitation costs. the authority will in turn request HUD to transfer funds to the authority. Upon receipt of such monies, the authority will disburse grant funds to the grantee or, at the authority's option, the authority may, prior to receiving the grant funds requested from HUD, disburse to the grantee its own funds in an amount equal to such requested grant funds and reimburse itself with the HUD funds upon receipt thereof.

3. Conditions for requesting draw-downs of funds. Grantees must not request draw-downs of funds until such funds are actually needed for payment of eligible costs. A request for funds for payment of a contractor may only be made after the work has been inspected and found to be satisfactory. Grant funds must be drawn down at no greater proportion than the amount of rental rehabilitation funds in the project. For example, if on a $10,000 rehabilitation project, $5,000 of rental rehabilitation grant funds were provided and the construction was 50% complete, no more than $2,500 in rental rehabilitation grant funds could be drawn down for the project. Disbursement of any grant funds is conditioned on the submission of satisfactory information by the grantee about the project and compliance with other procedures established by the authority and HUD.