(a) Agencies which participate in the FHAP must:
(1) Conform to reporting and record maintenance requirements determined by the Assistant Secretary;
(2) Agree to on-site technical assistance and guidance and implementation of corrective actions set out by the Department in response to deficiencies found during the technical assistance or performance assessment evaluations of the agency's operations;
(3) Agree to implement and adhere to policies and procedures (as their laws and ordinances will allow) provided to the agencies by the Assistant Secretary, including but not limited to guidance on
investigative techniques, case file preparation and organization, implementation of data elements for complaint tracking, etc.;
(4) Spend at least twenty (20) percent of its total annual budget on fair housing activities; and
(5) Not unilaterally reduce the level of financial resources currently committed to fair housing complaint processing (budget and staff reductions or other actions outside the control of the agency will not, alone, result in a negative determination for the agency's participation in the FHAP).
(b) The agency's refusal to provide information, assist in implementation, or carry out the requirements of paragraph (a) of this section may result in the denial or interruption of its receipt of FHAP funds.