---
kind: "section"
citation: "24 C.F.R. § 1000.428"
title: "24"
number: "1000.428"
heading: "For what reasons may HUD disapprove an application or approve an application for an amount less than that requested?"
url: "https://uscodex.org/cfr/24/1000.428"
---

# §1000.428. For what reasons may HUD disapprove an application or approve an application for an amount less than that requested?


HUD may disapprove an application or approve a lesser amount for any of the following reasons:

- (a) **HUD determines that the guarantee constitutes an unacceptable risk.** Factors that will be considered in assessing financial risk shall include, but not be limited to, the following:
  - (1) The ratio of the expected annual debt service requirements to the expected available annual grant amount, taking into consideration the obligations of the borrower under the provisions of [section 203(b)](/cfr/24/203.md?p=b) of NAHASDA;
  - (2) Evidence that the borrower will not continue to receive grant assistance under this part during the proposed repayment period;
  - (3) The borrower's inability to furnish adequate security pursuant to [section 602(a)](/cfr/24/602.md?p=a) of NAHASDA; and
  - (4) The amount of program income the proposed activities are reasonably estimated to contribute toward repayment of the guaranteed loan or other obligations.
- (b) The loan or other obligation for which the guarantee is requested exceeds any of the limitations specified in [sections 601(c)](/cfr/24/601.md?p=c) or [section 605(d)](/cfr/24/605.md?p=d) of NAHASDA.
- (c) **Funds are not available in the amount requested.**
- (d) Evidence that the performance of the borrower under this part has been determined to be unacceptable pursuant to the requirements of subpart F of this part, and that the borrower has failed to take reasonable steps to correct performance.
- (e) **The activities to be undertaken are not eligible under either—**
  - (1) [Section 202](/cfr/24/202.md) of NAHASDA; or
  - (2) **Section 601(a) of NAHASDA.**
- (f) The loan or other obligation documents for which a guarantee is requested do not meet the requirements of this subpart.

## Notes

### Amendments

[63 FR 12349, Mar. 12, 1998, as amended at 77 FR 71528, Dec. 3, 2012]

### Authority

Authority: 25 U.S.C. 4101 et seq.; 42 U.S.C. 3535(d).

### Source

Source: 63 FR 12349, Mar. 12, 1998, unless otherwise noted.

### Amendments

[63 FR 12349, Mar. 12, 1998, as amended at 77 FR 71528, Dec. 3, 2012]