24 C.F.R. § 93.54
§ 93.54 Reallocations by formula. (24 CFR Part 93)
Operative Text
(a) HUD will reallocate under this section: (1) Any HTF funds available for reallocation because HUD reduced or recaptured funds from an HTF grantee under § 93.400(d) for failure to commit or expend the funds within the time specified, or under § 93.453 for failure to comply substantially with any provision of this part; (2) Any HTF funds reduced for failure by the grantee to obtain funds required to be reimbursed or returned under § 93.450; and (3) Any HTF funds remitted to HUD under § 93.403(b)(4) when a grantee ceases to be an HTF grantee for any reason. (b) Any reallocation of funds must be made only among all participating States, except those States from which the funds were recaptured or reduced. (c) Any amounts that become available for reallocation shall be added to amounts for formula allocation in the succeeding fiscal year.
Under § 93.54 of 24 CFR Part 93, HUD is authorized to reclaim Housing Trust Fund (HTF) dollars from grantees that fail to commit or spend funds on time, fail to reimburse required amounts, or cease to be HTF grantees altogether. Those recaptured funds are then redistributed by formula among all participating states except the one from which the funds were taken. The reallocated amounts are folded into the next fiscal year's formula allocation cycle rather than distributed immediately.
Plain English — not legal advice.
Property owners and developers working with HTF-assisted projects should be aware that § 93.54 governs what happens when a state grantee loses HTF funding through recapture or reduction. A compliant HTF grantee—and by extension the projects it funds—generally avoids disruption by meeting commitment and expenditure deadlines outlined elsewhere in Part 93. Operators who rely on HTF allocations typically monitor their state agency's compliance status, since a reallocation event at the grantee level can affect the availability of funds for active or planned projects.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in housing developed with HTF assistance should know that § 93.54 sets out the process by which HUD redistributes funds when a state grantee fails to meet federal requirements. If a reallocation affects a project you live in or are waiting for, tenant-rights organizations and local housing agencies can help clarify what protections remain in place. Raising concerns about HTF compliance with your state's housing finance agency or HUD field office is one general path available under the broader framework of 24 CFR Part 93.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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