---
kind: "section"
citation: "25 U.S.C. § 4240"
title: "25"
title_heading: "Indians"
number: "4240"
heading: "Review and audit by Secretary"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/4240"
units:
  - "Chapter 43 — Native American Housing Assistance and Self-Determination"
  - "Subchapter VIII — Housing Assistance for Native Hawaiians"
---

# §4240. Review and audit by Secretary

- (a) **Annual review—**
  - (1) **In general—** The [Secretary](/usc/25/4103.md?p=20) shall, not less frequently than on an annual basis, make such reviews and audits as may be necessary or appropriate to determine whether—
    - (A) the [Director](/usc/25/4221.md?p=2) has—
      - (i) carried out eligible activities under this subchapter in a timely manner;
      - (ii) carried out and made certifications in accordance with the requirements and the primary objectives of this subchapter and with other applicable laws; and
      - (iii) a continuing capacity to carry out the eligible activities in a timely manner;
    - (B) the [Director](/usc/25/4221.md?p=2) has complied with the [housing plan](/usc/25/4221.md?p=7) submitted by the [Director](/usc/25/4221.md?p=2) under [section 4223 of this title](/usc/25/4223.md); and
    - (C) the performance reports of the [Department](/usc/25/4221.md?p=1) under section 4240[^1] of this title are accurate.
  - (2) **Onsite visits—** Each review conducted under this section shall, to the extent practicable, include onsite visits by employees of the [Department](/usc/25/4221.md?p=1) of Housing and Urban Development.
- (b) **Report by Secretary—** The [Secretary](/usc/25/4103.md?p=20) shall give the [Department of Hawaiian Home Lands](/usc/25/4221.md?p=1) not less than 30 days to review and comment on a report under this subsection. After taking into consideration the comments of the [Department](/usc/25/4221.md?p=1), the [Secretary](/usc/25/4103.md?p=20) may revise the report and shall make the comments of the [Department](/usc/25/4221.md?p=1) and the report with any revisions, readily available to the public not later than 30 days after receipt of the comments of the [Department](/usc/25/4221.md?p=1).
- (c) **Effect of reviews—** The [Secretary](/usc/25/4103.md?p=20) may make appropriate adjustments in the amount of annual grants under this subchapter in accordance with the findings of the [Secretary](/usc/25/4103.md?p=20) pursuant to reviews and audits under this section. The [Secretary](/usc/25/4103.md?p=20) may adjust, reduce, or withdraw grant amounts, or take other action as appropriate in accordance with the reviews and audits of the [Secretary](/usc/25/4103.md?p=20) under this section, except that grant amounts already expended on [affordable housing](/usc/25/4103.md?p=2) activities may not be recaptured or deducted from future assistance provided to the [Department of Hawaiian Home Lands](/usc/25/4221.md?p=1).

## Footnotes

[^1]: So in original. Probably should be section “4239”.

## Source credit

(Pub. L. 104–330, title VIII, § 821, as added Pub. L. 106–568, title II, § 203, Dec. 27, 2000, 114 Stat. 2894, and Pub. L. 106–569, title V, § 513, Dec. 27, 2000, 114 Stat. 2988.)

## Notes

### Editorial Notes

### Codification

Pub. L. 106–568, § 203, and Pub. L. 106–569, § 513, enacted identical sections 821 of Pub. L. 104–330. This section is based on the text of section 821 of Pub. L. 104–330, as added by Pub. L. 106–569, § 513.