1006.430—Corrective and remedial action.
        
        (a) General.
         One or more corrective or remedial actions will be taken by HUD when, on the basis of a performance review, HUD determines that the DHHL has not:
    
    
        
        (1) 
         Complied with the requirements of the Act and this part and other applicable laws and regulations, including the environmental responsibilities assumed under  § 1006.350 ;
    
    
    
        
        (3) 
         Made substantial progress in carrying out its program and achieving its quantifiable goals as described in its housing plan; or
    
    
    
        
        (b) Action.
         The action taken by HUD will be designed, first, to prevent the continuance of the deficiency; second, to mitigate any adverse effects or consequences of the deficiency; and third, to prevent a recurrence of the same or similar deficiencies. The following actions may be taken singly or in combination, as appropriate for the circumstances:
    
    
        
        (1) 
         Issue a letter of warning advising the DHHL of the performance problem(s), describing the corrective actions that HUD believes should be taken, establishing a completion date for corrective actions, and notifying the DHHL that more serious actions may be taken if the performance problem(s) is not corrected or is repeated;
    
    
        
        (2) 
         Request the DHHL to submit progress schedules for completing activities or complying with the requirements of the Act and this part;
    
    
    
    
        
        (5) 
         Recommend that the DHHL reimburse its program account or line of credit under the Act in the amount improperly expended and reprogram the use of the funds; and
    
    
        
        (6) 
         Recommend that the DHHL obtain appropriate technical assistance using existing grant funds or other available resources to overcome the performance problem(s).