Pre-Award Costs

PJs may incur eligible costs prior to the effective date of their annual HOME Investment Partnership Agreement with HUD, subject to the following conditions:

1. Only costs eligible under the HOME Program rules in effect at the time the costs are incurred are included.
   
   
2. Expenditures must meet all applicable regulatory requirements. The following is a checklist of requirements that must be met for the use of pre-award costs.

• Have applicable environmental review requirements been met?

• For administrative costs, has HUD received the Consolidated Plan or has the Consolidated Program Year begun?
• For project costs, have all applicable citizen participation requirements been met, including inclusion of projects in a full Action Plan?
• For project costs, is there a planning and tracking system in place to assure that an amount no greater than 25 percent of the current year's grant is expended?
• Have all authorizations to sub recipients and state recipients been made in writing, and have all applicable HOME requirements been met, including citizen participation?

Administrative and Planning Costs

Administrative and planning costs may be incurred as pre-award costs starting at:

• The beginning of the PJ's consolidated program year, or
• The date the PJ's Consolidated Plan is received by HUD, whichever is later!

Project Costs

Limited project costs may be incurred at any time during the PJ's program year, provided applicable citizen participation requirements of the Consolidated Plan have been met. Pre-award project costs may not exceed 25 percent of the PJ's current HOME grant without written approval from HUD.