Section 570.502 - Applicability of uniform administrative requirements(a) Grantees and subrecipients shall comply with 2 CFR part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards", except that:(1) Section 200.305 "Payment" is modified for lump sum drawdown for financing of property rehabilitation activities, in accordance with § 570.513 .(2) Section 200.306 "Cost sharing or matching" does not apply.(3) Section 200.307 "Program income" does not apply. Program income is governed by § 570.504 .(4) Section 200.308 "Revisions of budget and program plans" does not apply.(5) Section 200.311 "Real property" does not apply, except as provided in § 570.200(j) . Real property is governed by § 570.505 .(6) Section 200.313 "Equipment" applies, except that when the equipment is sold, the proceeds shall be program income. Equipment not needed by the subrecipient for CDBG activities shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient.(7) Section 200.333 "Retention requirements for records" applies except that:(i) For recipients:(A) The period shall be 4 years from the date of execution of the closeout agreement for a grant, as further described in this part;(B) Records for individual activities subject to the reversion of assets provisions at § 570.503(b)(7) or the change of use provisions at § 570.505 must be maintained for 3 years after those provisions no longer apply to the activity;(C) Records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities must be retained for 3 years after the receivables or liabilities have been satisfied.(ii) For subrecipients: (A) The retention period for individual CDBG activities shall be the longer of 3 years after the expiration or termination of the subrecipient agreement under § 570.503 , or 3 years after the submission of the annual performance and evaluation report, as prescribed in § 91.520 of this title, in which the specific activity is reported on for the final time;(B) Records for individual activities subject to the reversion of assets provisions at § 570.503(b)(7) or change of use provisions at § 570.505 must be maintained for as long as those provisions continue to apply to the activity; and(C) Records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities must be retained until such receivables or liabilities have been satisfied.(8) Section 200.343 "Closeout" applies to closeout of subrecipients. 80 FR 75937 , Dec. 7, 2015