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3110/2021 Electronic Code of Federal Regulations (eCFR) the basis of substantial facts and data, that the recipient has complied with Emergency Solutions Grant (ESG) requirements. HUD may change the method of payment to require the recipient to obtain HUD's prior approval each time the recipient draws down Emergency Solutions Grant (ESG) funds. To obtain prior approval, the recipient may be required to manually submit its payment requests and supporting documentation to HUD in order to show that the funds to be drawn down will be expended on eligible activities in accordance with all ESG program requirements. (3) If the recipient fails to demonstrate to HUD's satisfaction that the activities were carried out in compliance with ESG program requirements, HUD will take one or more of the remedial actions or sanctions specified in paragraph (b) of this section. (b) Remedial actions and sanctions. Remedial actions and sanctions for a failure to meet an ESG program requirement will be designed to prevent a continuation of the deficiency; mitigate, to the extent possible, its adverse effects or consequences; and prevent its recurrence. (1) HUD may instruct the recipient to submit and comply with proposals for action to correct, mitigate, and prevent noncompliance with ESG requirements, including: (i) Preparing and following a schedule of actions for carrying out activities affected by the noncompliance, including schedules, timetables, and milestones necessary to implement the affected activities; (ii) .Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions; (iii) Canceling or revising activities likely to be affected by the noncompliance, before expending ESG funds for the activities; (iv) Reprogramming ESG funds that have not yet been expended from affected activities to other eligible activities; (v) Suspending disbursement of ESG funds for some or all activities; (vi) Reducing or terminating the remaining grant of a subrecipient and reallocating those funds to other subrecipients; and (vii) Making matching contributions before or as draws are made from the recipient's ESG grant. (2) HUD may change the method of payment to a reimbursement basis. (3) HUD may suspend payments to the extent HUD deems it necessary to preclude the further expenditure of funds for affected activities. (4) HUD may remove the recipient from participation in reallocations of funds under subpart D of this part. https:lhw .ecfr.gov/cgi-bin/text-idx?node=pt24.3.576&rgn=div5 57/58