---
kind: "section"
citation: "29 C.F.R. § 1470.12"
title: "29"
number: "1470.12"
heading: "Special grant or subgrant conditions for “high-risk” grantees."
url: "https://uscodex.org/cfr/29/1470.12"
---

# §1470.12. Special grant or subgrant conditions for “high-risk” grantees.

- (a) A grantee or subgrantee may be considered “high risk” if an awarding agency determines that a grantee or subgrantee:
  - (1) Has a history of unsatisfactory performance, or
  - (2) Is not financially stable, or
  - (3) Has a management system which does not meet the management standards set forth in this part, or
  - (4) Has not conformed to terms and conditions of previous awards, or
  - (5) Is otherwise not responsible; and if the awarding agency determines that an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and shall be included in the award.
- (b) Special conditions or restrictions may include:
  - (1) Payment on a reimbursement basis;
  - (2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;
  - (3) Requiring additional, more detailed financial reports;
  - (4) Additional project monitoring;
  - (5) Requiring the grante or subgrantee to obtain technical or management assistance; or
  - (6) **Establishing additional prior approvals.**
- (c) If an awarding agency decides to impose such conditions, the awarding official will notify the grantee or subgrantee as early as possible, in writing, of:
  - (1) The nature of the special conditions/restrictions;
  - (2) The reason(s) for imposing them;
  - (3) The corrective actions which must be taken before they will be removed and the time allowed for completing the corrective actions and
  - (4) **The method of requesting reconsideration of the conditions/restrictions imposed.**

## Notes

### Authority

Authority: 29 U.S.C. 175a.

### Source

Source: 53 FR 8087, Mar. 11, 1988, unless otherwise noted.