Program Income and Other Assets. Subrecipient shall report monthly all Program Income, as defined in section VI(A)(17)(a) of the HUD Notice 78 Fed. Reg. 14,329, 14,341 (March 5, 2013, as may be amended by HUD), generated by activities carried out with CDBG-DR funds made available under this Agreement. All Program Income shall be returned to Grantee, absent written authorization from Grantee to the contrary, in accordance with any procedures established by HUD and Grantee. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not Program Income and shall be remitted promptly to Grantee. All Program assets, other than Program Income (property, equipment, etc.) shall revert to Grantee upon termination of this Agreement in accordance with applicable Federal, laws, regulations, HUD Notices, policies, and guidelines.
Program Income and Other Assets. Program Income is defined as the gross income, which includes principal and interest, of the Subrecipient or its sub-subrecipients1 that was generated from the use of CDBG- DR funds when such total exceeds $35,000, as that term is defined in section III.E of Appendix B of HUD Notice 87 Fed. Reg. 31,636 (May 24, 2022, as may be amended by HUD). When the income is generated by an activity that is only partially funded with CDBG-DR funds, the income must be prorated to reflect the percentage of CDBG-DR used. The gross income from the CDBG-DR funds must be accumulated in a separate local account. If during the State's fiscal year (April 1 - March 31), the gross income does not exceed $35,000, the funds are considered miscellaneous revenue and may be retained by Subrecipient and moved to its general account at the end of the State's fiscal year. However, prior to moving the funds to the general account, Subrecipient must submit the account bank settlements to the Corporation, for the State's fiscal year, to demonstrate that the gross income did not exceed $35,000, at which time the Corporation may provide written approval to transfer. However, if during the State's fiscal year, the gross income exceeds $35,000, then all funds received, including the initial $35,000, are considered Program Income and must be returned to the Corporation at the end of the State's fiscal year with a required annual Program Income Report. Nevertheless, no Program Income may be directly disbursed to activities by Subrecipient or its sub-subrecipients without HTFC written consent. Gross income accrued after the grant has been closed out by HTFC may still be Program Income if it exceeds $35,000 during the State's fiscal year, in which case it must be returned to the Corporation.
1 As used herein, a “sub-subrecipient” refers to all subrecipients that are lower-tiered than the Subrecipient that is a signatory to this Agreement. Real property sold within five (5) years from the date of closeout by the Corporation must be included in gross income for the purposes of determining Program Income. However, after five (5) years from the date of closeout by the Corporation, any proceeds from the sale of real property purchased or improved with CDBG funds are not considered Program Income and may be retained by Subrecipient. Notwithstanding any other provisions of this clause, all revolving loan fund income, both of principal and interest, is Program Income. Revolving loan fund income must be ret...
