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Question

When can a Subrecipient incur costs for an approved activity?

Answer

Under no circumstances should a Subrecipient incur any cost to be paid with CDBG funds without receiving a formal letter to proceed from the City.  The City needs to complete the required environmental review and, if required, receive approval for the release of funds before the City can issue the letter to proceed.  Any cost incurred prior to completion of the required procedures will not be eligible for reimbursement from the City.