Playing by the Rules: A Handbook for CDBG ... - City of El Cajon

Playing by the Rules
A Handbook for CDBG Subrecipients on Administrative Systems
6.1 Program Income (24 CFR 570.503(a), (b)(3) and (7), and 570.504)
• The term “program income” means any gross income received by the subrecipient
that was directly generated from the use of CDBG funds (24 CFR 570.500(a)). This
includes, but is not limited to:
• Proceeds from the sale or long-term lease of real property purchased or
improved with CDBG funds.
• Proceeds from the disposition of equipment purchased with CDBG funds.
• Gross income from the use or rental of property acquired by the grantee or
subrecipient with CDBG funds, less the costs incidental to the generation of
such income.
• Gross income from the use or rental of property owned by the grantee or
subrecipient that was constructed or improved with CDBG funds, less any
costs incidental to the generation of such income.
• Payments of principal and interest on loans made using CDBG funds.
• Proceeds from the sale of loans made with CDBG funds.
• Proceeds from the sale of obligations secured by loans made with CDBG
funds.
• Interest earned on program income, pending the disposition of such
program income.
• Funds collected through special assessments made against properties
owned and occupied by households not of low- and moderate-income,
where such assessments are used to recover part or all of the CDBG portion of
a public improvement.
Program income does not include (except for funds in lump-sum drawdown
accounts), the interest earned on cash advances from the grantee or funds held in a
revolving loan fund account. Such interest must be returned to the grantee for
remittance to HUD.
Chapter 6–3