| (a) Purpose. The purpose of this section is to inform
Persons or entities requesting awards of new funds or resources, Form(s)
8609, application amendments, LURA amendments, new Contracts (with
the exception of a Household Commitment Contract), Contract amendments,
or loan modifications that, with the exceptions noted by this rule,
if fees or loan payments (principal or interest) are past due, or
Disallowed Costs have not been repaid, to the Department, the request
may be denied, delayed, or the Subrecipient/Administrator/Developer/Owner's
Contract(s) terminated.
(b) Definitions.
(1) Capitalized words used herein have the meaning
assigned in the specific Chapters and Rules of this Part that govern
the program associated with the request, or assigned by federal or
state law.
(2) Disallowed Costs: Expenses claimed by a Subrecipient/Administrator/Developer/Owner,
paid by the Department, and subsequently determined by the Department
to be ineligible and subject to repayment.
(c) Except in the case of interim construction loans,
if Disallowed Costs, fees, or loan payments are past due the Department
will not: issue Form(s) 8609; amend applications or LURAs; or modify
loan documents.
(d) Except in the case of Contracts for CSBG non-discretionary
funds, the Department will not make awards of new funds or resources,
enter into new Contracts, or amend Contracts when Disallowed Costs,
fees, or loan payments remain unpaid, unless the entity has entered
into, and is complying with, an agreed-upon repayment plan that is
approved by the Department's Executive Director or Enforcement Committee.
(e) Once the Department notifies a Person or entity
that they are responsible for the payment of Disallowed Costs, required
fee or payment that is past due, if no corrective action is taken
within seven days of notification, the Executive Director may deny
the requested action for failure to comply with this rule.
(f) Exception for a Work Out Development. If fees (not
including application or amendment fees) or payments affiliated with
a work out Development are past due, then the past due amounts affiliated
with a work out Development may be excepted from this rule, so long
as the work out is actively underway by Department staff. In which
case, in the Department's sole discretion, LURA or any other kinds
of amendments may be considered for the subject Development or Contract.
(g) In accordance with Subchapter C of this Chapter
(relating to Previous Participation Reviews), if a Person or entity
applies for funding or an award from the Department, any fees, Disallowed
Costs, or payment of principal or interest to the Department that
is past due beyond any grace period provided for in the applicable
loan documents and any past due fees (not just those related to the
subject of the request) will be reported to the EARAC.
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