The FmHA or its successor agency under Public Law 103-354 offices processing HPG preapplications/applications will review the preapplications and applications submitted. Further review and actions will be taken by FmHA or its successor agency under Public Law 103-354 personnel in accordance with exhibit C of this subpart (available in any FmHA or its successor agency under Public Law 103-354 office). Exhibit G of this subpart (available in any FmHA or its successor agency under Public Law 103-354 office) will be used by the State Office to notify the National Office of preapplications received, eligibility, ranking, number of proposed units, amount requested by applicants, and amount recommended by State Office. Preapplications determined not eligible and/or not meeting the selection criteria will be notified in the manner prescribed in exhibit C of this subpart (available in any FmHA or its successor agency under Public Law 103-354 office). In addition, FmHA or its successor agency under Public Law 103-354 will document its findings and advise the applicant of its review rights or appeal rights (if applicable) under subpart B of part 1900 of this chapter. Applications determined not eligible will be handled in the same manner. The preapplications or applications determined incomplete will be notified in the manner prescribed in exhibit C of this subpart (available in any FmHA or its successor agency under Public Law 103-354 office) and will not be given appeal rights. The State Director is authorized to approve an HPG in accordance with this subpart and subpart A of part 1901 of this chapter. The State Director may delegate this authority in writing to designated State Office personnel and District Directors. Further:
(a) Grant approval is the process by which FmHA or its successor agency under Public Law 103-354 determines that all applicable administrative and legal conditions for making a grant have been met, the grant agreement is signed, and funds have been obligated for the HPG project. If acceptable, the approval official will inform the applicant of approval, having the applicant sign Form FmHA or its successor agency under Public Law 103-354 1940-1, ``Request for Obligation of Funds,'' and exhibit A of this subpart (available in any FmHA or its successor agency under Public Law 103-354 office). The applicant will be sent a copy of the executed grant agreement and Form FmHA or its successor agency under Public Law 103-354 1940-1. Should any conditions be attached to the grant agreement that must be satisfied prior to the applicant receiving any HPG funds, the grant agreement and the conditions will be returned to the applicant for acceptance and acknowledgement on the grant agreement prior to execution by the approval official.
(b) The application may be disapproved before execution of the grant agreement if the applicant is no longer eligible, the proposal is no longer feasible, or the applicant requests cancellation of its project. Except when the applicant requests cancellation, FmHA or its successor agency under Public Law 103-354 will document its findings and advise the applicant of its appeal rights under subpart B of part 1900 of this chapter.
(c) With the executed grant agreement and Form FmHA or its successor agency under Public Law 103-354 1940-1, FmHA or its successor agency under Public Law 103-354 will send the approved applicant (now the ``grantee'') copies of SF-270, ``Request for Advance or Reimbursement''. The grantee must submit an original and two copies of SF-270 to the FmHA or its successor agency under Public Law 103-354 office servicing the project. In addition, the grantee must submit SF-272, ``Federal Cash Transactions Report,'' each time an advance of funds is made. This report shall be used by FmHA or its successor agency under Public Law 103-354 to monitor cash advances made to the grantee. Advances or reimbursements must be in accordance with the grantee's budget and statement of activities, including any amendments, prior approved by FmHA or its successor agency under Public Law 103-354. Requests for reimbursement or advances must be at least 30 calendar days apart.
(d) If the grantee fails to submit required reports pursuant to Sec. 1944.683 of this subpart or is in violation of the grant agreement, FmHA or its successor agency under Public Law 103-354 may suspend HPG reimbursements and advances or terminate the grant in accordance with Sec. 1944.688 of this subpart and the grant agreement.