The grant assistance may be canceled in whole or in part for mutual convenience if both parties agree that the project's continuation is infeasible or would not produce beneficial results commensurate with the further expenditure of funds. Approval of requests for increased grant assistance after grant agreement execution rests solely in the discretion of the agency.

The agency may terminate the grantee's entire grant or the remaining balance for cause. When the agency determines that a grantee has failed to meet one or more of the requirements of the grant agreement, or, as the case may be, the regulatory agreement, the agency may reduce or recapture the grant, including amounts already obligated, or take other appropriate action. If the agency determines that the grantee has not met the requirements of the grant agreement, or, as the case may be, the regulatory agreement, the grantee will be notified and given an opportunity within a prescribed time to show that it has done so or has taken curative action. If the grantee fails to demonstrate that it has done so, the agency may take appropriate corrective or remedial action. For purposes of this section, appropriate action means any remedial action legally available, including, without limitation, demanding in writing that the grantee reimburse (and the grantee will reimburse) the agency in the amount of the ineligible costs, and bringing affirmative litigation, such as suits for declaratory judgment specific performance, temporary or permanent injunctions and any other available remedies. In the event that the agency makes such a determination, then the grantee will deliver to the agency all original documents relevant to the project(s) or program, including but not limited to, any construction agreements, loan documents and any other related documents that the agency may require.