HUD has policies and procedures for setting up activities and reporting activity delivery costs (ADC). While the procurement standards encourage intergovernmental agreements for the procurement of common goods and services (defined as standard commercial equipment, materials, supplies and services readily obtainable on the open market through conventional commercial marketing channels), procurement activities by CDBG entitle Piggybacking in this case refers to using the results of another CDBG grantee's procurement for equipment after-the-fact, rather than the City conducting its own procurement. Many times, it is impractical, if not downright impossible, to secure income verification from the beneficiaries of certain CDBG activities. Are these professional services subject to the same Section 3 reporting requirements as the construction work? var tr = table.getElementsByTagName("tr"); The other 34 units may meet the slum/blight national objective (or in certain circumstances, the urgent need national objective). We are requiring this of the contractor that is doing the site work. Improvements to a housing structure would be eligible at 24 CFR 570.202(a) or Section 105(a)(4) of the Housing and Community Development Act of 1974 (HCDA), as amended, if the low- and moderate-income housing national objective can be met. The grant administering entity receives more than $200,000 in grant funds, and invests any amount of these funds to carry out new construction or rehabilitation activity (including demolition and lead-based paint abatement). However, if the local HUD fie Year 2 accomplishments should be reported as zero jobs created for year 2. For States the definition is found under Section 105(a)(3) of the HCDA and is stated as: the use of CDBG funds for code enforcement in deteriorated or deteriorating areas in which such enforcement, together with the public or private improvements or services to be provided, may be expected to arrest the decline of the area. National objective for Acquisition: Depends on the end use. Code enforcement as an activity does not provide such a direct benefit to the household. Salary records (salaries, benefits, timesheets) for employees that process and issue citations and collect and process fines. Grantees may not set up separate activities for ADC. The entitlement is legally obligated to remain in a joint agreement status for the duration of the three-year UC qualification period. If a person brings his/her lunch, he/she would not receive a lunch voucher. The requirements would not apply to the staffing of the community center even if the construction / rehabilitation of the community center was a Section 3 covered project. 2 entitled Federal Labor Standards Requirements in Housing and Urban Development Programs. If the county government cannot undertake essential community developmen After HUD has notified an urban county of its eligibility, a county must contact each unit of general local government (UGLG) in writing and offer them the opportunity to participate or defer participation in the urban county's CDBG program. No Record Found means that the entity is not registered or has let its registration lapse. The written code of conduct must apply to all employees, officers, agents of the grantee, members of their immediate family and partners. What IDIS reports would be helpful in assembling information for the CDBG Cash on Hand report? } In all cases, the acquisition activity must meet a national objective, but not necessarily the slum and blight national objective required for the demolition. When a grantee does not make a timely payment on its Section 108 Guaranteed Loan, the CDBG grant funds are deducted from its line(s) of credit to pay amounts due on the Section 108 Guaranteed Loans. Missing or incomplete docume A community will benefit from a comprehensive place-based approach by using CDBG dollars to leverage additional funding for the neighborhood. An UGLG that reaches the population threshold to become an entitlement will be notified of its status. If a grantee wanted to carry out an activity that would only serve persons at risk of homelessness, the provisions of the low- and moderate-income limited clientele national objective at 24 CFR 570.208(a)(2)(i)(B) or (C) for Entitlements and 24 CFR 570.483(b)(2)(ii)(B) or (C) for States would have to be met. Within the NRSA, the activity may be qualified under the low- and moderate-income area benefit (LMA) national objective criteria. Theoretically, the state may choose to award any leftover FY 2018 funding to these UGLGs. Women fleeing domestic violence: Yes. The UC must enter into a cooperation agreement with any UGLG where the UC does not have power to carry out essential community renewal and lower-income housing assistance activities. May an extension to the deadlines outlined in the Notice be granted? Under that scenario, not only is your CDBG investment unsecured but (assuming your intent is rehabilitation assistance rather than homebuyer assistance), you are in essence doing rental rehabilitation and would need the actual "owner's" approval to do the rehabilitation. The Entitlement CDBG regulations at 24 CFR 570.202(c) state that code enforcement may be carried out with CDBG funds "when such enforcement together with public or private improve No. I know that CDBG funds can be expended if the property is owned in fee-simple title, as a life estate, or a 99 year leasehold, but is living trust a valid form of ownership for CDBG? Pursuant to 24 CFR 570.606, CDBG grantees must follow the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended. Is there a requirement to do a financial analysis to determine the amount of CDBG funds to provide to a subrecipient for the acquisition of real property? for (i = 0; i < tr.length; i++) { The review should include examination of the specifications to consider if they were sufficiently clear and not unduly restrictive, the process used to solicit adequate competition so that it could have been reasonably assumed that more than one bid would have been submitted, whether the price of the bid received is fair and reasonable, and if the bid is otherwise in accordance with the invitation for bids. According to 24 CFR 570.208(a)(3), "If two or more rental buildings being assisted are or will be located on the same or contiguous properties, and the buildings will be under common ownership and management, the grouped buildings may be considered for this purpose as a single structure." However, there must be an address entered for each assisted unit in an IDIS activity. See Note C below. In 2017, the grantee will submit a new certification for FY 2017, 2018 and 2019.Related FAQ(s)In 2014, a grantee has a three-year certification period of 2014, 2015, and 2016. For example, when a grantee returns funds to its line of credit due to ineligible uses of CDBG grant funds for CDBG activities, those returned funds show up in Activity #2 as a negative draw (collection), and the grantee then transfers those funds to the original activity to repay that activity for the ineligible expenses. Part III of the PR26, Low- and Moderate-Income Benefit This Reporting Period, will show the dollars expended for low- and moderate-income benefit with line items within this part devoted to expenditure adjustments. HUD has policies and procedures for setting up activities and reporting activity delivery costs (ADC). To meet the low- and moderate-income national objective, add the total number of housing activities together (110). Overview. In 2014, a grantee has a three-year certification period of 2014, 2015, and 2016. In order for the grantee to comply with 24 CFR 85.20(b)(7), grantees must have procedures in place to minimize the time elapsed between the transfer of funds from Treasury and disbursement by the grantee. The CDBG regulations do not speak of layoffs; however, it has treated layoffs that occur within two years of the CDBG assistance as though they were vacancies created through job turnover [24 CFR 570.506(b)(5) and (6)]. 24 CFR 5.1003 describes the DUNS number requirement in detail. At a minimum, grantees' files must contain: Can CDBG funds be used to pay training costs for code enforcement inspectors? Sta CDBG funds can be used for down payment assistance up to 50% of the lender required down payment amount. table = document.getElementById("myTable"); The language at 24 CFR 85.21(f)(1) / [2 CFR 200.305(b)(5)] refers to repayments made by borrowers and the interest earned from the loan repayments. Subrecipient agreements contain a scope of work that the participating local government or subrecipient (a public or private nonprofit) is required to perform; have a budget; and usually have a beginning and ending date. Rather, it would be appropriate for your local government to involve its CDBG subrecipients in the process of determining locally appropriate actions to further fair housing and carrying out those actions, and to hold the subrecipients accountable for them in all their projects. Yes. Depends on the end use of the property. Does this refer to the interest earned on the RLF account from the banking institution or the interest received from the loan repayment (program income)? For joint agreements and cooperation agreements, there can be an renewable clause therein stating the agreements automatically renew. Therefore, Section 105(a)(25) of the Housing and Community Development Act (HCDA) restricts homeownership assistance provided under 24 CFR 570.201(n) of the Entitlement CDBG regulations to low- and moderate-income homebuyers. Yes. Promise Zones located within a jurisdiction actively implementing comprehensive community revit All federal Empowerment Zone (EZ) and Renewal Community (RC) designations expired on December 31, 2009. What happens when a business assisted with CDBG funds fails to create the number of jobs expected or the business closes? Sends email to the Grantee CDBG First contact [Grantee/PJ page], Sends email to the Grantee CDBG Second contact [Grantee/PJ page], Sends email to any Grantee user with the CDBG 'Set up Activity' user privilege, Sends email to any Grantee user with the CDBG 'Update Activity' user privilege, A grantee must define a geographical area that comprises a neighborhood that is primarily residential and contains a percentage of low- and moderate-income residents that is 70% or equal to the community's "upper quartile percentage", Documentation of consultations with community members and stakeholders, An assessment of the housing market and economic conditions of the area and a comprehensive strategy that will produce measurable results. Thus, even if the UC does not receive a HOME formula allocation, the participating UGLG cannot form a HOME consortium with other local governments. If the urban county fails to apply for its CDBG grant by not submitting its SF 424, Consolidated Plan/Action Plan, and certifications by August 16 of that year, it will not receive a CDBG grant. All CDBG-R funds had to be expended by September 30, 2012. Sec. What about vacant lots? The grantee may be able to recategorize costs such as homebuyer education and credit counseling as a public service (provided the public service cap is not exceeded). // Get the Class of the row if hasTopic == 1 24 CFR 570.609 establishes that the requirements set forth in 24 CFR part 5 apply to the CDBG program. Repayments of ineligible costs are not considered program income. Although the participant did not complete the homebuying process, the courses she completed were not standalone courses and were required to be completed to p Homeownership assistance is cited at 24 CFR 570.201(n) of the Entitlement CDBG regulations, and the list of activities is found at Section 105(a)(25) of the Housing and Community Development Act (HCDA) of 1974, as amended. Activities eligible for assistance The HOME Program has long used a rate of $10.00 per hour as its established rate for unskilled donated or voluntary labor. However, occasionally we have only one bid, necessitating a costly and time consuming rebidding process. In 2016, it submitted a three-year certification for 2016, 2017, and 2018. (4) Implement safe work practices during rehabilitation work in accordance with 35.1350 and repair any paint that is disturbed and is known or presumed to be lead-based paint. Content current as of December 8, 2021. The Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments (24 CFR Part 85) / [2 CFR Part 200] which is applicable to the CDBG Program, includes the following definition: Obligations mean the amounts of orders placed, contracts and subgrants awarded, goods and services received, and similar transactions during a given period that will require payment by the grantee duri No. Where CDBG funds are used to finance only a portion of the construction work, labor standards are applicable to the entire construction work. The grantee must return the funds to the LOC unless it can revise the draws to another activity that has immediate cash needs. What does "financing the acquisition of housing occupied by the homebuyers" mean in the CDBG program? The new construction standard requires 5 percent of the units to be accessible to persons with mobility impairments, and an additional 2 percent accessible for persons with hearing or vision impairments. Some reports that would be helpful are the PR07 for drawdowns, and the PR09 for Program Income and other local CDBG accounts such as Revolving Loan (RL) and Grant-Specific Repayment to Local Account (LA) funds receipted and drawn. For each selected outcome, the grantee should identify expected outputs from the CPD performance measurement framework. The grantee must follow the procurement requirements, in accordance with 24 CFR 85.36(b), even if in the end the result is that the same contractor is selected. The Office of Block Grant Assistance (OBGA) sponsored a webinar series for CDBG grantees on best practices in CDBG Program administration. for all public services that provide indirect financial assistance to beneficiaries). Please note that whenever a grantee changes the use of CDBG funds from one activity to another that triggers a substantial amendment which requires that citizens be provided an opportunity to comment on the substantial amendment. The definition should have criteria that addresses the physical conditions of buildings/structures or will be considered insufficient. You are correct that clearance is not required when painted surface areas are below HUD's de minimis threshold (only).Note that when clearance is required, HUD's Lead Safe Housing Rule (LSHR) requires a clearance examination be done by an independent party instead of the certified renovator's cleaning verification procedure. Congress prohibited this practice, beginning with the Consolidated Appropriations Act, 2014. This does not include planning and administrative costs, but does include program income. It is the correction of the code violation, such as rehabilitation, that directly benefits the household and would be eligible under the Each grantee certifies over a specified period of time (one (1), two (2), or three (3) years), a minimum of 70% of CDBG funds shall be expended for activities benefitting low to moderate income persons. Can HUD reject my Consolidated Plan because it is missing certifications? When code enforcement activities are undertaken under the slum and blight area (SBA) or urgent need national object Code enforcement and inspections may take place in primarily residential areas and will allow enforcement activities for commercial and industrial buildings, as well as vacant land within the designated deteriorated or deteriorating area as long as the activity is able to meet the low to moderate income area (LMA) national objective and code enforcement is performed in conjunction with planned improvements, rehabilitation, or services to the area Code enforcement may meet the urgent need national objective if the grantee is able to certify the following: The buildings inspected pose a serious and immediate threat to the health and welfare of the community. There is a conflict with Section 3 which requires that preferential hiring be afforded to those living in the project area and FHWA regulations that prohibit preferential hiring. For example, Mr. Smith received $5,000 of downpayment assistance. The annual end-of-year report, a requirement for the program, notes the financial status and accomplishments of the county's program, including an . What resources are available to ensure a CDBG grantee stays below its 1.50 timeliness ratio? Grantees are more likely to choose the benefit to low and moderate-income persons on an area basis national objective to ensure this requirement is met. Consequently, the project must conform not only to the Eligibility and National Objective requirements, but also to the appropriateness criteria (Public Benefit and Appendix A). In a HUD-approved NRSA, CDBG funds may be involved in the following incentives: What is an example of a project where housing units can be aggregated? Option1 (aggregate all units): The grantee may choose to enter all homeownership activities funded in a program year under one IDIS activity. Piggybacking in this case refers to using the results of another CDBG grantee's procurement for equipment after-the-fact, rather than the City conducting its own procurement. The URA real property acquisition regulations that apply to CDBG at 24 CFR 570.606(e) and 49 CFR Part 24, Subpart B, generally require both an appraisal and appraisal review to establish the fair market value of real property to be acquired, with the exception of real property acquisitions that meet the criteria at 49 CFR 24.101(b)(1)-(5), often referred to as "voluntary acquisitions." Please note that acquiring real property with CDBG funds through eminent domain (condemnation) for economic development projects benefiting private, for-profit businesses is prohibited. The first year a CDBG grantee is untimely, the HUD Field Office will send the grantee a finding letter and the grantee will be required to submit a workout plan showing how it intends to get back into compliance before the next timeliness measurement date. No. Before an Entitlement Jurisdiction grantee provides any CDBG funds for an activity, it must determine the entire area that will be served by the activity. However, it may be difficult to show that a given vehicle is used exclusively in one or more deteriorated areas, consistent with CDBG requirements, or exclusively by staff whose entire salaries are paid for with CDBG funds because they perform only CDBG-eligible code enforcement inspections. This is because some CDBG funds for a grant year may not be spent until the following or subsequent years. The second threshold is when CDBG is used to fund residential construction contracts for properties that include 8 or more units. The CDBG regulations are silent on a definition of homeownership. (E) pay reasonable closing costs (normally associated with the purchase of a home) incurred by a low- or moderate-income homebuyer. This amount includes funds received (both fund types, EN and AD) for all CDBG activities including planning and administration. If there are balances under Activity #2, positive or negative, log into IDIS and search vouchers for Activity #2. HMIS is used to collect data for CoC assisted homeless programs and is not a data source for CDBG-assisted activities benefiting homeless persons. Subrecipients engaged in housing activities may have more direct involvement in furthering fair housing; nevertheless, all subrecipients, other participants in the CDBG program, as well as the general public can provide information, insight, and resources that contribute to fulfilling the countys obligation to affirmatively further fair housing. If over $25,00 Pursuant to 24 CFR 570.606, CDBG grantees must follow the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended. Actual NRSA performance information should be updated at least semi-annually in the Integrated Disbursement and Information System (IDIS) and reported in the grantee's Consolidated Annual Performance and Evaluation Report (CAPER). if (e != null){ Construction, and construction-related, and any contracts are subject to Section 3 requirements if $1 of covered HUD funds is used. 24 CFR Part 85.21(f)(1) says to disburse interest earned on RLFs. For more information on different types public services activities and available matrix codes, check "Matrix Code Definitions.". Which source(s) did HUD use to calculate the individual categories (population size, poverty, & overcrowding) in determining the funding amounts for entitlement communities? Section 110 requires the payment of wages at rates "not less than" the local prevailing wages determined by the U.S. Secretary of Labor under the Davis-Bacon Act. Choice Neighborhoods Implementation Grantees must be actively implementing their Transformation Plan. For this purpose, a grantee includes program income in these calculations based on the program year in which the program income is received. Change of use rules apply to real property acquired or improved using CDBG funds in excess of $25,000. The most updated version of the Application for Federal Assistance, or SF-424 form, may be found at www.grants.gov. For example, county X has a population of 200,475, not counting the populations of Entitlement cities Y and Z. If the activity met a national objective, if the grantee complies and if defaulted loans are rare, HUD is less likely to require repayment of loans that had to be written off. This is unless the city notifies the urban county during its year of requalification it no longer wants to have a joint agreement with the county or opts out of the county as a participant in its CDBG program. A suggested format would include a brief statement, signed and dated by the reviewer, indicating that a specifically identified payroll document had been compared to specific wage determination, along with notation whether or not any discrepancies have been identified. Adequate documentation of payroll review can be based on establishing a reasonable, objective set of records that can be verified by a third party. Explore collections of guided learning opportunities on a variety of topics. For example, a subrecipient is using CDBG for an intersection improvement and another for a wheelchair accessible play structure must they have an Affirmative Fair Housing Policy? console.log("filter is "+filter); Each grantee's circumstances, however, will be considered on its own merits. An example of eligible CDBG costs would include staff time using HMIS for client case management for services being provided to homeless persons, or relating to the operation of a homeless shelter, both which are CDBG-eligible under the authority of 24 CFR 570.201(e) and (c) for Entitlements and Section 105(a)(8) and (a)(2) of the HCDA for States, respectively. the housing rehabilitation beneficiary household) receives a grant or loan from a grantee or subrecipient, the federal procurement requirements do not apply to that private individual. The check stub (and the grantee's records) must clearly identify the amount being provided for up to half of the required downpayment ($3,000) and the amount subsidizing the mortgage principal ($12,000). The grantee's files must document the required downpayment, so the correct amount of assistance is provided. If lower than $25,000, the grantee may dispose of property with no further requirements. The deadline to complete this step is contained in the annual Urban County Notice. } CDBG funds may be used to pay the costs of the hearing. Some private end uses that will likely qualify are: What if the housing or other use (LMI)-benefiting use that was planned for our CDBG activity does not materialize? However, even if that is determined to be sufficient, you are still required to maintain support documentation such as time sheets (# number of hours, rate of pay and benefits ties to the CDBG activity), invoices / proof of payment (contacts, purchase orders, copies of checks, receipts for work completed or equipment purchased), or completed product (i.e., plan, study, survey). The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) requirement addresses value and the CDBG portion acknowledges the OMB requirement of cost reasonableness. Acquisition and Disposition: When setting up acquisition and disposition activities in IDIS, grantees should set up one activity for each property assisted. They have private funds which they intend to use to hire a design team, including a construction manager. This public service cap is statutory and cannot be waived. For each selected outcome, A CDBG grantee with a designated Choice Neighborhood may request automatic NRSA designation. In contrast, housing counseling, or other types of housing information and education services, may be provided as part of the activity delivery costs for specific types activities that do not come under the public services cap. CDBG regulations do not mandate a financial analysis, except that grantees must ensure that costs are reasonable. The city currently uses CDBG funds to operate a homeowner rehab program. However, this does not preclude the UC or a UGLG within an urban county from applying to the State for HOME funds, if the State allows.