24 CFR § 578.85 - Timeliness standards.

---
identifier: "/us/cfr/t24/s578.85"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 578.85 - Timeliness standards."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "578.85"
section_name: "Timeliness standards."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "C"
subchapter_name: "COMMUNITY FACILITIES"
part_number: "578"
part_name: "CONTINUUM OF CARE PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1701x, 1701 x-1; 42 U.S.C. 11381  42 U.S.C. 3535(d)."
regulatory_source: "77 FR 45442, July 31, 2012, unless otherwise noted."
cfr_part: "578"
---


# 578.85 Timeliness standards.

(a) *In general.* Recipients must initiate approved activities and projects promptly.

(b) *Construction activities.* Recipients of funds for rehabilitation or new construction must meet the following standards:

(1) Construction activities must begin within 9 months of the later of signing of the grant agreement or of signing an addendum to the grant agreement authorizing use of grant funds for the project.

(2) Construction activities must be completed within 24 months of signing the grant agreement.

(3) Activities that cannot begin until after construction activities are completed must begin within 3 months of the date that construction activities are completed.

(c) *Distribution.* A recipient that receives funds through this part must:

(1) Distribute the funds to subrecipients (in advance of expenditures by the subrecipients);

(2) Distribute the appropriate portion of the funds to a subrecipient no later than 45 days after receiving an approvable request for such distribution from the subrecipient; and

(3) Draw down funds at least once per quarter of the program year, after eligible activities commence.