Page:United States Statutes at Large Volume 89.djvu/385

 PUBLIC LAW 94-63—JULY 29, 1975

89 STAT. 325

for assistance under this p a i t for such project. Amendment of any approved application shall be subject to approval in the same manner as an original application. "PAYMENTS

" SEC. 223. (a)(1) Upon certiHcation to the Secretary by the State agency, based upon inspection by it, that work has been performed upon a remodeling, construction, or expansion project, or purchases for such a project have been made, in accordance with the approved plans and specifications, and that payment of an installment is due to the applicant, such installment shall be paid to the State, from the applicable allotment of such State, except that (1) if the State is not authorized by law to make payments to the applicant, the payment shall be made directly to the applicant, (2) if the Secretary, after investigation or otherwise, has reason to believe that any act (or failure to act) has occurred requiring action pursuant to subsection (c) of this section, payment may, after he has given the State agency notice of opportunity for hearing pursuant to such section, be withheld in whole or in part, pending corrective action or action based on such hearing, and (3) the total payments with respect to such project may not exceed an amount equal to the Federal share of the cost of such project. " (2) If an amendment to an approved application is approved or the estimated cost of a remodeling, construction, or expansion project is revised upward, any additional payment with respect thereto may be made from the applicable allotment of the State for the fiscal year in which such amendment or revision is approved. " (b) Payments from a State allotment for acquisition and leasing projects shall be made in accordance with regulations which the Secretary shall promulgate. " (c)(1) If the Secretary finds that— " (A) a State agency is not substantially complying with the provisions required by section 237 to be in a State plan or with regulations issued under section 236; " (B) any assurance required to be in an application filed under section 222 is not being carried o u t; " (C) there is substantial failure to carry out plans and specifications approved by the Secretary under section 222; or " (D) adequate State funds are not being provided annually for the direct administration of a State plan approved under section 237, the Secretary may take the action authorized under paragraph (2) of this subsection if the finding was made after reasonable notice and opportunity for hearing to the involved State agency. " (2) If the Secretary makes a finding described in paragraph (1), he may notify the involved State agency, which is the subject of the finding or which is connected with a project or State plan which is the subject of the finding, that— " (A) no f u r the r payments will be made to the State from allotments under section 227; or " (B) no further payments will be made from allotments under section 227 for any project or projects designated by the Secretary as being affected by the action or inaction referred to in subparagraph (A), (B), (C), o r (D) of paragraph (1), as the Secretary may determine to be appropriate under the circumstances; and, except with regard to any project for which the application has already been approved and which is not directly affected, further payments from such allotments may be withheld, in whole or

57-194 O - 77 - 25

42 USC 2689k.

Notice and hearing,

Regulations,

Post, p. 330. Post, p. 329. ^"•^^> P- 323,.

Notice and hearing,

Post, ^.327.

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