---
kind: "section"
citation: "24 C.F.R. § 578.85"
title: "24"
number: "578.85"
heading: "Timeliness standards."
url: "https://uscodex.org/cfr/24/578.85"
---

# §578.85. Timeliness standards.

- (a) **In general.** Recipients must initiate approved activities and projects promptly.
- (b) **Construction activities.** Recipients of funds for rehabilitation or new construction must meet the following standards:
  - (1) Construction activities must begin within 9 months of the later of signing of the grant agreement or of signing an addendum to the grant agreement authorizing use of grant funds for the project.
  - (2) Construction activities must be completed within 24 months of signing the grant agreement.
  - (3) Activities that cannot begin until after construction activities are completed must begin within 3 months of the date that construction activities are completed.
- (c) **Distribution.** A recipient that receives funds through this part must:
  - (1) Distribute the funds to subrecipients (in advance of expenditures by the subrecipients);
  - (2) Distribute the appropriate portion of the funds to a subrecipient no later than 45 days after receiving an approvable request for such distribution from the subrecipient; and
  - (3) **Draw down funds at least once per quarter of the program year, after eligible activities commence.**

## Notes

### Authority

Authority: 12 U.S.C. 1701x, 1701 x-1; 42 U.S.C. 11381 et seq., 42 U.S.C. 3535(d).

### Source

Source: 77 FR 45442, July 31, 2012, unless otherwise noted.