---
kind: "section"
citation: "24 C.F.R. § 1000.503"
title: "24"
number: "1000.503"
heading: "What is an appropriate extent of HUD monitoring?"
url: "https://uscodex.org/cfr/24/1000.503"
---

# §1000.503. What is an appropriate extent of HUD monitoring?

- (a) Subject to any conflicting or supplementary requirement of specific legislation, and upon the effective date of this regulation, the frequency of HUD monitoring of a particular recipient will be determined by application of the HUD standard risk assessment factors, provided that when a recipient requests to be monitored, HUD shall conduct such monitoring as soon as practicable. The HUD standard risk assessment factors may be but are not limited to the following:
  - (1) Annual grant amount;
  - (2) **Disbursed amounts—** all open grants;
  - (3) Months since last on-site monitoring;
  - (4) Delinquent audits under [2 CFR part 200](/cfr/2/part200.md), [subpart F](/cfr/24/subpartF.md);
  - (5) Open [2 CFR part 200](/cfr/2/part200.md), [subpart F](/cfr/24/subpartF.md), or Inspector General audit findings;
  - (6) Conclusions of [2 CFR part 200](/cfr/2/part200.md), [subpart F](/cfr/24/subpartF.md), auditor;
  - (7) Open monitoring findings;
  - (8) Delinquent Annual Performance Reports or Annual Status and Evaluation Reports;
  - (9) Status of Corrective Action Plan (CAP) or Performance Agreement (PA);
  - (10) Recipient Self-Monitoring;
  - (11) Inspection of 1937 Act units;
  - (12) Preservation of 1937 Act units; and
  - (13) Any other additional factors that may be determined by HUD, consistent with HUD's Tribal Consultation Policy, by which HUD will send written notification and provide a comment period. Such additional factors shall be provided by program guidance.
- (b) If monitoring indicates noncompliance, HUD may undertake additional sampling and review to determine the extent of such noncompliance. The level of HUD monitoring of a recipient once that recipient has been selected for HUD monitoring is as follows:
  - (1) Review recipient program compliance for the current program year and the 2 prior program years;
  - (2) On-site inspection of no more than 10 dwelling units or no more than 10 percent of total dwelling units, whichever is greater;
  - (3) Review of no more than 10 client files or no more than 10 percent of client files, whichever is greater.
- (c) Notwithstanding [paragraph (b)](#b) of this section, HUD may at any time undertake additional sampling and review of prior program years, subject to the records retention limitations of [§ 1000.552](/cfr/24/1000.552.md), if HUD has credible information suggesting noncompliance. HUD will share this information with the recipient as appropriate.
- (d) A recipient may request ONAP to enter into Self-Monitoring Mutual Agreements or other self-monitoring arrangements with recipients. ONAP will monitor the recipient only in accordance with such agreement or arrangement, unless ONAP finds reasonable evidence of fraud, a pattern of noncompliance, or the significant unlawful expenditure of IHBG funds.

## Notes

### Amendments

[77 FR 71528, Dec. 3, 2012, as amended at 80 FR 75944, Dec. 7, 2015]

### 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

[77 FR 71528, Dec. 3, 2012, as amended at 80 FR 75944, Dec. 7, 2015]