---
kind: "section"
citation: "45 C.F.R. § 1627.5"
title: "45"
number: "1627.5"
heading: "Applicability of restrictions, recordkeeping, and recipient priorities; private attorney involvement subgrants."
url: "https://uscodex.org/cfr/45/1627.5"
---

# §1627.5. Applicability of restrictions, recordkeeping, and recipient priorities; private attorney involvement subgrants.

- (a) **Applicability of restrictions.** The prohibitions and requirements set forth in [45 CFR part 1610](/cfr/45/part1610.md) apply both to the subgrant and to the subrecipient's non-LSC funds, except as modified by paragraphs [(b)](#b), [(c)](#c), and [(d)](#d) of this section.
- (b) **Priorities.** Subrecipients must either:
  - (1) Use the subgrant consistent with the recipient's priorities; or
  - (2) **Establish their own priorities for the use of the subgrant consistent with 45 CFR part 1620.**
- (c) **Recordkeeping.** A recipient must be able to account for how its subrecipients spend LSC funds or use property or services funded in whole or in part with LSC funds. A subrecipient must provide to the recipient records as described in paragraphs [(c)(1)](#c-1) and [(2)](#c-2) of this section.
  - (1) A subrecipient that handles matters as defined at [45 CFR 1635.2(b)](/cfr/45/1635.2.md?p=b) must maintain adequate records to demonstrate that its attorneys and paralegals used the LSC funds or property or services funded in whole or in part with LSC funds:
    - (i) To carry out the activities described in the subgrant agreement; and
    - (ii) **Consistent with the restrictions set forth at 45 CFR part 1610.**
  - (2) A subrecipient that handles cases as defined at [45 CFR 1635.2(a)](/cfr/45/1635.2.md?p=a):
    - (i) Must require its attorneys and paralegals to maintain records for each case that show the amount of time spent on the case and the activity conducted by date, and a unique client name or case number; and
    - (ii) Either the subrecipient or the recipient must maintain records for each case that show the problem type and the closing code for the case.
    - (iii) **This requirement does not apply to subrecipients described in paragraph (d)(2)(ii) of this section.**
  - (3) A subrecipient who handles both cases and matters must maintain the types of records described in paragraphs [(c)(1)](#c-1) and [(2)](#c-2).
- (d) **Subgrants for engaging private attorneys—**
  - (1) **Subgrants of funds.** The prohibitions and requirements set forth in [45 CFR part 1610](/cfr/45/part1610.md) apply only to the subgranted funds when the subrecipient is a bar association, pro bono program, private attorney or law firm, or other entity that receives a subgrant for the sole purpose of funding private attorney involvement activities (PAI) pursuant to [45 CFR part 1614](/cfr/45/part1614.md).
  - (2) **In-kind subgrants.** The prohibitions and requirements set forth in [45 CFR part 1610](/cfr/45/part1610.md) apply only to the subgranted property or services acquired in whole or in part with LSC funds when the subrecipient is a bar association, pro bono program, private attorney or law firm, or other entity that receives a subgrant for the sole purpose of:
    - (i) Conducting private attorney involvement activities (PAI) pursuant to [45 CFR part 1614](/cfr/45/part1614.md); or
    - (ii) Providing legal information or legal assistance on a pro bono or reduced fee basis to individuals who have been screened and found eligible to receive legal assistance from an LSC recipient.
  - (3) **Treatment of non-LSC funds.** Any funds or property or services acquired in whole or in part with LSC funds and used by a recipient as payment for a PAI subgrant are deemed LSC funds for purposes of this [paragraph (d)](#d).
  - (4) **Recordkeeping exception.** The recordkeeping requirement in [paragraph (c)](#c) of this section does not apply to private attorneys providing legal assistance on a pro bono or reduced fee basis.

## Notes

### Authority

Authority: 42 U.S.C. 2996g(e).

### Source

Source: 82 FR 10283, Feb. 10, 2017, unless otherwise noted.