Resolution 2016-16 - Laserfiche WebLink

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Requirements for Recapturing Funds Awarded Erroneously or for Non -Compliance with Program Rules Notification The City will provide notice to recipients upon determining that ineligible assistance was received. The notice will be delivered by registered or certified mail, or will be delivered by some other means that can be confirmed and documented. The notice will: 1. Specify in detail the reason(s) that the assistance was determined to be ineligible, stating the amount of ineligible assistance to be repaid; 2. Offer a meeting for the recipient to discuss the basis for the claim giving the recipient an opportunity to provide facts, figures, written records, or other information that might alter the determination that the assistance was ineligible; 3. Outline the recipients appeal rights; 4. Specify the address to which a response must be sent; 5. Contain a statement that failure to submit an answer within fifteen (15) days of receipt of the letter may result in the imposition of the maximum amount of penalties, allowable by law/regulation, and assessments sought. Generally, the City will set the meeting within thirty (30) days of the date of the initial letter. Upon request, the City may grant additional time for the recipient to assemble the necessary documentation. If additional time is granted, the recipient file will be documented, on a case-by- case basis, as to why additional time was granted. Corrective Action If the problem causing the assistance to be ineligible can be corrected, appropriate corrective action will be required. For example: • Where the recipient is a homeowner and did not follow the Forgivable Promissory Note requirement to obtain flood insurance, the insurance must be obtained promptly, and upon demonstrating proof of insurance, the recipient will re-sign the Forgivable Promissory Note in order to restart the term of the loan, also known as the Effective Period. • If the recipient is a homeowner and is not using the house as his or her primary residence, when the recipient proves (s)he has moved into the home permanently, the Forgivable Promissory Note document will be re-signed and the Effective Period will restart. • If a sub -grantee executes a change order on an infrastructure project without a sufficient cost estimate and signatures, then the recipient will need to obtain a cost estimate that justifies the change in costs and also get appropriate signatures. 25 L \FRIEDLAN\My Documents L\CMG \2016 CDBG-DR IGA Louisv,lle_FINALdocx 3/15/2016