SUPPLEMENTARY INFORMATION:

This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A. The Federal Register notice that solicited public comment on the information collection for a period of 60 days was published on July 8, 2026 at 91 FR 42209.

A. Overview of Information Collection

Title of Information Collection: Financial Documentation for the HUGS Recipient Portal.

OMB Approval Number: 2535-New.

Type of Request: New.

Form Number: N/A.

Description of the need for the information and proposed use: HUD is implementing the HUGS Recipient Portal to strengthen its oversight and stewardship of Federal grant funds and improve visibility into the use of those funds. The proposed information collection would require recipients of covered HUD grant awards to submit financial and supporting documentation associated with grant expenditures through the Recipient Portal. This may include: invoices and vendor billings; proof of payment and disbursement records; payroll or cost allocation documentation; subrecipient cost documentation; invoices for vendor and subcontractor spending made by the recipient and the subrecipient and other supporting documentation identified by HUD and described in the regulations. HUD will use the information to substantiate expenditures, support monitoring and oversight activities, assess financial and compliance risks, and identify transactions or patterns that may warrant additional review. HUD will publish forthcoming implementation guidance that will provide additional details regarding the submission of financial documentation through the HUGS Recipient Portal, including details on scope and applicability, the Recipient Portal, submission frequency, required financial and supporting documentation, privacy safeguards, and additional resources.

This information collection aligns with cross-government priorities to strengthen stewardship of Federal funds and better identify and address potential fraud, waste, and abuse in a timely manner. The information collection is also supported by several key provisions of Part 200 of Title 2 of the Code of Federal Regulations (2 CFR 200):

• 2 CFR 200.208 (Specific conditions) authorizes Federal agencies to impose additional requirements, including requiring additional or more detailed record production and financial reports, when appropriate.
• 2 CFR 200.302 (Financial management) requires recipients to maintain records identifying the amount, source, and expenditure of Federal funds and to support records with source documentation.
• 2 CFR 200.328 (Financial reporting) requires Federal agencies and pass-through entities to collect financial reports no less than annually and no more than quarterly unless a specific condition has been implemented in accordance with 2 CFR 200.208.
• 2 CFR 200.334 (Record retention requirements) requires recipients and subrecipients to retain Federal award records, including financial records and supporting documentation, generally for three years following submission of the final financial report; and
• 2 CFR 200.337 (Access to records) provides Federal agencies and their authorized representatives the right of access to any records of the recipient or subrecipient that are pertinent to a Federal award for audits, site visits, or any other official use.

The Recipient Portal is not a reaction to an individual incident of fraud, waste, abuse, or noncompliance, though there are well-reported incidents across HUD programs. However, HUD usually does not find these issues until well after the fact, so there is a need for proactive monitoring that this information collection will allow. HUD also clarifies that this information collection will not impact existing ( printed page 68541) reimbursement or draw-down processes; required financial and supporting documentation will be submitted on a quarterly basis, not prior to the disbursement or voucher payment.

HUD has considered feedback, including concerns that HUGS duplicates existing oversight requirements and recommendations that it be limited only to certain grantees through a risk-based approach. However, while HUD already has important controls, including payment systems, program reporting, audits, and monitoring, these mechanisms were developed for different purposes and do not provide a consistent Department-wide view of supporting transactions and documentation. The proposed collection supports expenditure substantiation, monitoring, risk assessment, and stewardship of Federal funds by providing a more complete understanding of how award funds are spent. Over time, HUD anticipates that this collection and its broader grants modernization efforts may allow existing financial monitoring collections or processes to be consolidated or replaced where appropriate.

HUD also received feedback on the burden estimate and has updated the calculation accordingly. Recipients are already required to maintain financial records and supporting source documentation associated with their Federal awards as established in 2 CFR 200. The proposed collection generally requires submission of applicable records recipients maintain in the ordinary course of administering those awards; it does not require recipients to create a new financial analysis, recalculate expenditures, or manipulate the underlying financial information into a new format solely for submission to HUD. HUD recognizes, however, that identifying, organizing, digitizing where necessary, and submitting applicable documentation through the Recipient Portal requires administrative effort and that this effort may vary by recipient and program. Therefore, clear, proactive communication is essential. HUD is preparing for full engagement with grantees and industry and has engaged a technical assistance provider to guide grantees through the transition with hands-on support and training. After consideration, HUD has determined that the documents that HUD seeks through HUGS are authorized by existing law as described above.

B. Solicitation of Public Comment

This notice is soliciting comments from members of the public and affected parties concerning the collection of information described in Section A on the following:

(1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;

(2) The accuracy of the agency's estimate of the burden of the proposed collection of information;

(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and

(4) Ways to minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses.

HUD encourages interested parties to submit comments in response to these questions.

C. Authority

44 U.S.C. 3507.

91 FR 68540