Monday, March 7, 2022
City of Rialto
Virtual - Via Zoom
CDBG Ad-Hoc Committee
Regular Meeting - Addendum
1 March 7, 2022CDBG Ad-Hoc Committee Regular Meeting - Addendum Notice is given that the Rialto City Council has declared a Local Emergency related to COVID-19 Public meetings will be held VIRTUALLY. The CDBG Ad-Hoc Committee will participate in the meeting from remote locations.
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CALL TO ORDER
ROLL CALL
PRESENTATIONS
1 CDBG-22-21
9 CDBG Program Applicant Presentations.
a. Each applicant will be allowed 3 minutes to present
REPORTS/DISCUSSION ITEMS
1 CDBG-22-21
8 2022-2023 Subrecipient Applications Review
2 CDBG-22-21
6 CDBG Mobile Home Repair Program Policy Updates
3 CDBG-22-21
5 CDBG Policies and Procedures
PUBLIC COMMENTS
ADJOURNMENT
2 City of Rialto
Legislation Text
File #: CDBG-22-219, Version: 1, Agenda #: 1
For CDBG Ad-Hoc Committee Meeting [March 7, 2022]
TO: Honorable City Council
FROM: Cynthia Alverado-Crawford
CDBG Program Applicant Presentations.
a. Each applicant will be allowed 3 minutes to present City of Rialto Printed on 3/7/2022Page 1 of 1
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3 City of Rialto
Legislation Text
File #: CDBG-22-218, Version: 1, Agenda #: 1
For CDBG Ad-Hoc Committee Meeting [March 7, 2022]
TO: Honorable City Council
FROM: Cynthia Alverado-Crawford
2022-2023 Subrecipient Applications Review
RECOMMENDED ACTION(S):
Request the CDBG Ad-Hoc Committee to (1) Receive presentations and consider funding applications regarding CDBG funded Public Services projects for FY 2022-23; and (2) provide funding recommendations for the FY 2022-2023 CDBG.
BACKGROUND
The City of Rialto (City), as an entitlement city, receives Community Development Block Grant (CDBG) Program funds on an annual basis from the U.S. Department of Housing and Urban Development (HUD) to carry out a wide range of community development activities to benefit low-income residents. On an annual basis the City receives an estimated $1.2 million.
Per its Citizen Participation Plan, the City published in the local newspaper a Notice of Fund Availability (NOFA) to notify the public that the City was inviting proposals for CDBG activities for Fiscal Year 2022-2023. Eligible applications shall be for activities designed to meet one of the City’sfour Strategic Plan goals included in the 2020-2024 Consolidated Plan: (1) Community Facilities and Infrastructure Improvements, (2) Public Services for Low income residents, (3) Housing Preservation, (4) Fair Housing Services. Public service projects meeting Strategic Plan goal (2) must benefit low- and moderate-income people. A technical workshop was held on Thursday, February 3, 2022 at 10:00 a.m. to provide an overview of the program and explain the process. Applications were do no later than 12:00 noon on Thursday, February 12, 2022.
Annually the City can utilize up to 15% of its CDBG allocation for public service activities. As such, the anticipated public services budget is $182,100.
In FY 2019/20 HUD enabled additional CDBG economic support as part of the Coronavirus Aid Relief and Economic Security (CARES) Act which is referred to as CDBG-CV. The objective of the CDBG-CV program is to support activities that respond to the economic effects of the Coronavirus Disease 2019 (Covid-19). Given the immediate needs faced by communities, HUD issued two rounds of CDBG-CV funds to the City of Rialto and waived the 15% Public Services cap on its regular CDBG allocation for FY 2019-20 and FY 2020-21. HUD resumed the 15% Public Services cap effective FY 2021-22.
In addition, the City can utilize up to 20% of their CDBG allocation for Administration of CDBG programs, this includes Fair Housing Services.
Table 1 provides a summary of available funding, separated by source. The totals represent the net amount, less the allowed administrative percentage to be used to manage CDBG programs.
Table 1
CDBG FY 2022-2023
$ 1,200,000 Estimated CDBG Allocation
$ 200,000 Estimated Carryover Funds
$ 1,400,000 Estimated Total Allocation
$ (240,000) Estimated Administration CAP (20% of Allocation) $ (182,100) Estimated Public Service CAP (15% of Allocation) $ (434,000) Estimated Section 108 Loan Repayment $ 544,000 Estimated Available for non-public service projects City of Rialto Printed on 3/7/2022Page 1 of 3
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4 File #: CDBG-22-218, Version: 1, Agenda #: 1CDBG FY 2022-2023 $ 1,200,000 Estimated CDBG Allocation
$ 200,000 Estimated Carryover Funds
$ 1,400,000 Estimated Total Allocation
$ (240,000) Estimated Administration CAP (20% of Allocation) $ (182,100) Estimated Public Service CAP (15% of Allocation) $ (434,000) Estimated Section 108 Loan Repayment $ 544,000 Estimated Available for non-public service projects
DISCUSSION
The estimated allocation for FY 2022/2023 Public Service projects is $182,100. The City received ten (10) public service project applications as noted below in Table 2:
Table 2
Program Name Organization Amount Requested
1. Public Services Housing, Food, and
Transportation Assistance Program
Arrowhead United Way $57,700
2. Legal Aid - Rialto Legal Aid Society of San
Bernardino
$25,830
3. Autism Services Easterseals South California $40,000
4. Veterans Services Rialto Family Health Services Inc. $35,000
5. Academic Enrichment / Pre-employment skills
training
National Council of Negro Women $42,000
6. Rialto Senior Computer Lab Community Services Department $15,000
7. Rialto Youth Rocks Community Services Department $98,270
8. Rialto Teen Computer Lab Community Services Department $20,000
9. Community Services Scholarship Fund Community Services Department $10,000 10 Rialto Senior Services Community Services Department $49,300 TOTAL PUBLIC SERVICES REQUESTS $393,100
The estimated allocation for non-public service projects for FY 2022/2023 is $544,000. The City received three (3) applications as noted below in Table 3:
Table 3
Program Name Department Amount Requested
1. Community Center Building 400 ADA Upgrades Engineering $268,105
2. Community Center Building 500 ADA Upgrades Engineering $600,000
3. Curb, Gutter, Sidewalks Engineering $150,000
TOTAL NON-PUBLIC SERVICES
REQUESTS
$1,018,105
The estimated allowable allocation for Administration is $240,000, which includes the costs for Fair Housing Services.
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5 File #: CDBG-22-218, Version: 1, Agenda #: 1
The estimated allowable allocation for Administration is $240,000, which includes the costs for Fair Housing Services.
Table 4 provides the amount requested for fair housing and remaining Administration:
Table 4
Program Name Organization Amount Requested
1. Fair Housing Services Inland Fair Housing $32,000
2. Administration $208,000
TOTAL ADMINISTRATION REQUESTS $240,000
The CDBG Ad Hoc Committee recommendations will be presented as part of the City’sAnnual Action Plan for public review and City Council consideration. Listed below are the scheduled activities leading to the submittal of the FY 2022/23 Annual Action Plan:
March 28, 2022 Publish Notice of Public Hearing for public input and consideration of Draft Annual Action Plan and availability for a 30-day period April 26, 2022 City Council conducts Public Hearing for Annual Action Plan April 28, 2022 Submitters notified of selected projects May 6, 2022 Submit final Annual Action Plan to HUD
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
FINANCIAL IMPACT
The City receives an annual allocation of CDBG funds. The recommended action may result in appropriating FY 2022/2023 CDBG funds without impact to the General Fund.
RECOMMENDATION
Staff recommends the CDBG Ad-Hoc Committee (1) Receive and consider funding applications and presentations regarding Community Development Block Grant (CDBG) funded Public Services projects for FY 2022-23; and (2) provide funding recommendations for the FY 2022-2023 CDBG.
Attachments:
1. Exhibit “A”: Program Funding Totals
2. Exhibit “B”: CDBG Public Services Funding Requests
3. Exhibit “C”: Subrecipient Matrix
4. Public Service and Non- Public Service Applications
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6 2022-2023 YE
AR CDBG EXHIBIT “A” PROGRAM FUNDING TOTALS
A-1
2022-2023 Budget
2022 – 2023 Allocation (Expected) $1,200,000
Total 2022-2023 Allocated Funds (Expected) $1,200,000
Administration
Max. 20% of 2022-2023 Allocation ($1,200,000) $240,000
Total Administration Funds Available (Estimated) $240,000 Public Service
Max. 15% of 2021-2022 Allocation (Estimated $1,200,000) $182,100 Total Public Service Funds Available (Estimated $182,100 Capital Improvement
2022-2023 Allocation (Expected) $1,200,000
Plus, Estimated Carryover Funds $200,000
Minus Allocated Administration Funds (estimated) ($240,000) Minus Allocated Public Service Funds (estimated) ($182,100) Minus Section 108 Loan Repayment * ($434,000)
Total Estimated Capital Improvement Funds Available* $544,000 *Note that a total of $4 34,000 of Capital Improvement funds is budgeted towards the repayment of the Section 108 Loans for the 1) Construction of the Rialto Senior Center; a nd 2) the Bud Bender Park projects. 7 A-2
FY 2022-2023 CDBG
EXHIBIT “B”
CDBG Public Services
Funding Requests
8 CDBG Public Services Funding Requests - FY 2022-23
(15% : $182,000)
Program Name Organization
FY 2018-19
Approved
FY 2019-20
Approved
FY 2020-21
Approved
FY 2021-22
Approved
FY 2022-23
Requested
Public Service housing / Food and
Transportation Assistance Program Arrowhead United Way $ - $ - $ - $ - $ 57,700.00 Legal Aid - Rialto
Legal Aid Society of San
Bernardino
$ 11,540.00 $ 11,376.00 $ 21,000.00 $ 13,244.67 $ 25,830.00 Autism Services
Easterseals Southern
California $ - $ - $ - $ 20,000.00 $40,000.00
Veterans Assistance for Homeless &
Disabled
Rialto Family Health Services $ 11,540.00 $ 11,376.00 $ 20,000.00 $ 13,244.67 $ 35,000.00 Academic and Job skills training
National Council of Negro
Women $ 38,475.00 $ 40,417.00 $ 40,417.00 $ 42,000.00 $ 42,000.00 Rialto Senior Computer Lab Community Services Dept $ - $ - $ - $ - $ 15,000.00 Rialto Youth Rocks
Community Services Dept $ - $ - $ - $ - $ 98,270.00 Rialto Teen Computer Lab Community Services Dept $ - $ - $ - $ - $ 20,000.00 Community Services Scholarship Fund Community Services Dept $ - $ - $ - $ - $ 10,000.00 Rialto Senior Services Community Services Dept $ 18,175.00 $ 17,916.00 $ 48,500.00 $ 48,500.00 $ 49,300.00 $393,100
Funded with Admin Set Aside
Fair Housing services
Inland Fair Housing and
Mediation oard $ 29,480.00 $ 29,061.00 $ 29,061.00 $ 32,478.00 $ 32,000.00 9 A-3
FY 2022-2023 CDBG
EXHIBIT “C”
Subrecipient Application Matrix
10 Legal Name Program Amount
Requested
FY 21/22
Allocation
FY 20/21
Allocation
FY 19/20
Allocation
Persons
Served
National
Objective
DUNS Workers
Comp
Liability
Insurance
Contact Info Schedule of
Performance
Proposed
Budget
Conflict of
Interest
Agency
Certification
Playing By the
Rules
Cert of
Insurance
Articles of
Incorporation
Non-Profit
Determination
Board of
Directors
Resumes
of Key
Personnel
Job
Descriptions
Arrowhead United Way Public Service
Housing, Food
and
Transportation
Assitance
Program
$57,700 $0 $0 $0 831
households
concern (1) yes yes yes yes concern (2) concern (3) no conflict concern (4) provided yes yes yes yes yes yes Legal Aid Society of San
Bernardino
Legal Aid - Rialto $25,830 $13,245 $21,000 $0 510 yes yes yes yes yes yes yes no conflict yes provided yes yes yes yes yes yes Easterseals Southern
California
Autism Services $40,000 $20,000 $0 $0 20 yes yes yes yes yes yes concern (1) no conflict yes provided yes yes yes yes yes yes Rialto Family Health
Services
Veterans Program $35,000 $13,245 $20,000 $11,376 40 concern (1) yes concern (2) yes yes yes yes no conflict yes provided liability only yes yes yes yes yes National Council of
Negro Women Inc
NCNW Bethune
Center
$42,000 $42,000 $404,417 $40,417 26 yes yes yes yes yes yes concern (1) disclosed yes provided yes yes yes yes yes yes Community Services
Department
Rialto Senior
Computer Lab
$15,000 75 yes yes exempt exempt yes yes concern (1) disclosed yes provided na na na na na na Community Services
Department
Rialto Youth
Rocks
$98,270 80 yes yes exempt exempt yes yes concern (1) disclosed yes provided na na na na na na Community Services
Department
Rialto Teen
Computer Lab
$20,000 50 yes yes exempt exempt yes yes yes disclosed yes provided na na na na na na Community Services
Department
Community
Services
Scholarship Fund
$10,000 120 yes yes exempt exempt yes yes concern (1) disclosed yes provided na na na na na na Community Services
Department
Rialto Senior
Services
$49,300 100 yes yes exempt exempt yes yes concern (1) disclosed yes provided na na na na na na Public Services
SubTotal
$393,100 $88,489 $445,417 $51,793
Inland Fair Housing and
Mediation Board
Fair Housing
Services
$32,000 $32,478 $29,061 $29,061 350 yes yes yes yes yes yes yes none yes provided yes yes yes yes yes yes 11 Audit /
financials
SAM Comments
audit concern (5) (1) LMA is identified but it should be noted at limited clientelle.
Income elgiibility will be required. (2) activities in the schedule occur prior to the FY - they will not be eligible for
reimbursement. (3) Budget is incomplete and only accounts for the $7700. Missing the budget for the remaining request. (4) the application was not signed. Overall comments - the program includes rental assistance paid to the landlords. This is a duplicate program that is currently provided by the City. (5) Entity is not showing up
audit clear
990 clear (1) budget incomplete and CDBG request did not match budget concern (3) clear (1) LMA is identified but it should be noted as limited clientelle.
Income eligibility will be required. (2) applicant indicated N/A for workers comp however they list paid staff in application. WC will be required. (3) Applicant did not supply adequate financials (chart of accounts, P&L, or tax return)
990 concern (2) program includes resume writing, customer service training and job searching assistance. (1) budget was incomplete missing totals. (2) Entity is not showing up
na clear (1) budget innacuracies. Request is $15,000 but budget indicated $17,000
na clear (1) budget was incomplete. Does not demonstrate other funding sources
na clear
na clear (1) budget was incomplete. Does not demonstrate other funding sources
na clear (1) budget was incomplete. Does not demonstrate other funding sources
yes clear Services will be paid out of adminsitration set aside. 12 CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
Arrowhead United Way
Public service housing / Food and
Transportation assistance program
13 14
15 16
17 18
19 20
21 22
23 CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
Legal Aid Society of San Bernardino
Legal Aid - Rialto
24 25
26 27
28 29
30 31
32 33
CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
Easterseals Southern California
Autism Services
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
Inland Empire Section - National
Council of Negro Women, Inc.
Academic and Job Skills training
56 57
58 59
60 61
62 63
64 65
66 CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
City of Rialto
Rialto Senior computer lab
67 68
69 70
71 72
73 74
75 76
77 CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
City of Rialto
Rialto Youth Rocks
78 79
80 81
82 83
84 85
86 87
88 CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
City of Rialto
Rialto teen computer lab
89 90
91 92
93 94
95 96
97 98
99 CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
City of Rialto
Community Services Scholarship
Fund
100
101
102
103
104
105
106
107
108
109
110
CITY OF RIALTO
FY 2022/2023
CDBG PUBLIC SERVICES APPLICATION
City of Rialto
Rialto Senior Services
111
112
113
114
115
116
117
118
119
120
121
CITY OF RIALTO
FY 2022/2023
CDBG NON-PUBLIC SERVICES
APPLICATION
City of Rialto
Community Center Building 400
ADA upgrades
122
123
124
125
126
127
128
129
130
131
132
CITY OF RIALTO
FY 2022/2023
CDBG NON-PUBLIC SERVICES
APPLICATION
City of Rialto
Curb, Gutter, Sidewalks
133
134
135
136
137
138
139
140
141
142
143
CITY OF RIALTO
FY 2022/2023
CDBG NON-PUBLIC SERVICES
APPLICATION
City of Rialto
Community Center Building 500 ADA
upgrades
144
145
146
147
148
149
150
151
152
153
154
City of Rialto
Legislation Text
File #: CDBG-22-216, Version: 1, Agenda #: 2
For CDBG Ad-Hoc Committee Meeting [March 7, 2022]
TO: Honorable City Council
FROM: Cynthia Alverado-Crawford
CDBG Mobile Home Repair Program Policy Updates
BACKGROUND
The purpose of the Program is to promote the rehabilitation of housing stock in the City of Rialto (“City”).It is designed to provide assistance to eligible individuals for correction of health and safety deficiencies, and code violations.
On July 1, 2021, City Council approved the allocation of $121,435 for the Mobile Home Repair grant program as part of the 2021-2022 Annual Action Plan. The program has been designed to serve approximately 12 households, with a maximum rehabilitation of $10,000.00 for eligible repairs. The program provides grants to low-income residents to conduct necessary rehabilitations to their homes.
This program assists in keeping homes up to code by assisting in completing costly repairs.
SUMMARY OF REQUIREMENTS
• Mobile Home must be within the City of Rialto
• Mobile Homes constructed before 1978 do not qualify for the program • Applicant must own and reside in the mobile home requesting the repairs for at least one year • Existing property taxes, and homeowners’ insurance must be current • Only one application per household will be allowed.
Applicant Eligibility Criteria
Household income cannot exceed 80% of the area median income (AMI), adjusted for household size. The income limits are published by HUD each year.
On November 8, 2021, staff presented to the Ad Hoc Committee policies and procedures for the Mobile Home Program.
Eligible repairs include serious health and safety issues as defined in the Section of the California Health & Safety Code and the City of Rialto Municipal Code. Evaluation of repairs requested will need to be first completed by Department staff to determine serious code violations/deficiencies prior to approval of application. Some of the items eligible for the Mobile Home Repair Program are:
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155
File #: CDBG-22-216, Version: 1, Agenda #: 2
• Accessibility issues
• Unsanitary Plumbing Conditions
• Hazardous Electrical Systems
• Roof replacements
• Inoperative HVAC systems
Program Outreach and Marketing: Staff Conducted outreach at 11 Mobile Home parks in the City of Rialto, in addition to advertisement on the City’s website and outreach efforts at the Farmers Market.
As a result of the outreach efforts, program staff received feedback that many of the mobile homes that need assistance were built prior to 1978. HUD regulations specify that if homes built prior to 1978 are funded, the City must comply with specific requirements related to lead base paint which requires that if any amount of paint will be disturbed, the City must:
1. Presume all painted surfaces constitute lead hazards, provide Notice of Presumption and treat all areas with Standard Treatments, or
2. Conduct a Risk Assessment (and testing of surfaces to be disturbed) and treat hazards with Interim Controls or Hazard Abatement.
We are recommending that the Ad-Hoc committee allow homes built prior to 1978 to apply, since there is demonstrated need in the community. We are also recommending that the city allow homeowners to apply for an additional grant up to $10,000 to address lead abatement costs if needed for the project.
CONCLUSION
It is recommended that the Ad Hoc Committee update the Mobile Home Program Guidelines to allow mobile homes built prior 1978 to apply and allow homeowners to apply for an additional grant up to $10,000 to address lead abatement costs if needed for the project.
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City of Rialto
Legislation Text
File #: CDBG-22-215, Version: 1, Agenda #: 3
For CDBG Ad-Hoc Committee Meeting [March 7, 2022]
TO: Honorable City Council
FROM: Cynthia Alverado-Crawford
CDBG Policies and Procedures
BACKGROUND
The Community Development Department implements various programs and projects with funds received from the Housing and Urban Development (“HUD”). Funds are received annually through the Community Development Block Grant (“CDBG”) Program.
HUD regulations 24 CFR 92.500 and 24 CFR 570 require that entitlement jurisdictions certify to HUD that they have adopted local policies and procedures concerning the administration of the CDBG Program. A recent HUD audit required that the City develop comprehensive written policies and procedures which provide internal controls and uniform guidance for the administration of the CDBG program.
ANALYSIS
The attached CDBG Policies and Procedures Manual has been created to include the required program procedures that provide guidance in the overall administration and financial management of the CDBG program. The main objective of the Policies and Procedures are to ensure that program funds are expended and provide benefit to low-income eligible recipients and complies with the national objectives, where applicable. The Policies and Procedures Manuals include a sample of all forms used, an organizational chart to delineate responsibilities, monitoring schedules, financial reconciliation procedures, standard procedures, general operating procedures, and other resource materials necessary for administering the programs in compliance with HUD regulations.
CONCLUSION
It is recommended that the Ad Hoc Committee receive and file the Policies and Procedures for the administration of the CDBG program.
ATTACHMENT
Draft CDBG Policies and Procedures
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File #: CDBG-22-215, Version: 1, Agenda #: 3
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City of Rialto
Community Development Block Grant
POLICIES AND PROCEDURES MANUAL
City of Rialto
Community Services Department
Revised February 1, 2022
159
City of Rialto
Community Development Block Grant Program
Policies and Procedures Manual Page 2
Table of Contents
1. INTRODUCTION AND CDBG GRANT ADMINISTRATION ........................................................................................... 10 PURPOSE OF THIS MANUAL ................................................................................................................................................ 10 WHAT IS CDBG? .................................................................................................................................................................. 10 NATIONAL OBJECTIVES ................................................................................................................................................... 11 WHO GETS CDBG AND HOW MUCH? ................................................................................................................................. 11 PROGRAM AREAS ........................................................................................................................................................... 11 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ............................................................ 12 THE CODE OF FEDERAL REGULATIONS (CFR) ...................................................................................................................... 13 CDBG GRANT ADMINISTRATION ......................................................................................................................................... 14 FINANCIAL MANAGEMENT PROCEDURES ...................................................................................................................... 17 CONFLICT OF INTEREST .................................................................................................................................................. 20 CDBG PROGRAM STAFFING PLAN .................................................................................................................................. 21 CITY OF RIALTO - ORGANIZATION ROLES AND RESPONSIBILITIES.................................................................................. 21
2. CONSOLIDATED PLANNING OVERVIEW ................................................................................................................... 25 PROGRAM YEAR .................................................................................................................................................................. 26 PLAN SUBMISSION AND REVIEW ........................................................................................................................................ 26 CONSOLIDATED PLAN CONTENTS ....................................................................................................................................... 27 BACKGROUND AND GENERAL INFORMATION .................................................................................................................... 28 DESCRIBE THE LEAD AGENCY ......................................................................................................................................... 28 DESCRIBE THE PLANNING PROCESS ............................................................................................................................... 28 TELL HUD WHO WAS INVOLVED .................................................................................................................................... 28 TELL HUD WHO YOU "CONSULTED" ............................................................................................................................... 28 EXECUTIVE SUMMARY ........................................................................................................................................................ 28 PUBLIC PROCESS SUMMARY ............................................................................................................................................... 29 COMMUNITY NEEDS ........................................................................................................................................................... 29 GENERAL COMMUNITY NEEDS ........................................................................................................................................... 29 HOUSING NEEDS ................................................................................................................................................................. 29 DATA SOURCES ............................................................................................................................................................... 30 SUPPORTIVE HOUSING NEEDS ....................................................................................................................................... 31 LEAD-BASED PAINT HAZARDS ........................................................................................................................................ 32 HOUSING MARKET ANALYSIS GENERAL ............................................................................................................................. 32 SUPPLY AND DEMAND ................................................................................................................................................... 32 INCOME, RACE AND ETHNIC CONCENTRATION ............................................................................................................. 32 PUBLIC HOUSING AND AFFORDABLE HOUSING ............................................................................................................. 32 160
City of Rialto
Community Development Block Grant Program
Policies and Procedures Manual Page 3
HOUSING FOR THE HOMELESS ....................................................................................................................................... 32 SPECIAL NEEDS HOUSING—NON-HOMELESS ................................................................................................................. 33 BARRIERS TO AFFORDABLE HOUSING ............................................................................................................................ 33 STRATEGIC PLAN ................................................................................................................................................................. 33 PRIORITY NEEDS ............................................................................................................................................................. 33 OBSTACLES TO MEETING UNDER-SERVED NEEDS .......................................................................................................... 33 SPECIFIC OBJECTIVES ...................................................................................................................................................... 33 AFFORDABLE HOUSING .................................................................................................................................................. 33 PUBLIC HOUSING ............................................................................................................................................................ 34 HOMELESSNESS .............................................................................................................................................................. 34 NON-HOMELESS SPECIAL NEEDS .................................................................................................................................... 34 NON-HOUSING COMMUNITY DEVELOPMENT (CDBG ONLY) ......................................................................................... 34 NEIGHBORHOOD REVITALIZATION ................................................................................................................................. 34 BARRIERS TO AFFORDABLE HOUSING ............................................................................................................................ 34 LEAD HAZARD REDUCTION ............................................................................................................................................. 35 ANTI-POVERTY ................................................................................................................................................................ 35 GAPS IN INSTITUTIONAL STRUCTURE ............................................................................................................................. 35 COORDINATION .............................................................................................................................................................. 35 ANNUAL ACTION PLAN CONTENTS ..................................................................................................................................... 35 EXECUTIVE SUMMARY ................................................................................................................................................... 35 RESOURCES .................................................................................................................................................................... 36 SPECIFIC ANNUAL OBJECTIVES ........................................................................................................................................... 36 DESCRIPTION OF ACTIVITIES .......................................................................................................................................... 37 ALLOCATION PRIORITIES ................................................................................................................................................ 37 GEOGRAPHIC DISTRIBUTION AND LOW/MODERATE INCOME (LMI) BENEFIT ............................................................... 37 ANNUAL AFFORDABLE HOUSING GOALS ....................................................................................................................... 37 HOMELESS ...................................................................................................................................................................... 38 SPECIAL NEEDS ............................................................................................................................................................... 38 PUBLIC HOUSING ............................................................................................................................................................ 38 ANTI-POVERTY STRATEGY .............................................................................................................................................. 38 LEAD-BASED PAINT HAZARD REDUCTION ...................................................................................................................... 38 "OTHER ACTIONS" .......................................................................................................................................................... 38 FAIR HOUSING ................................................................................................................................................................ 39 MONITORING ................................................................................................................................................................. 39 CITIZEN PARTICIPATION PLAN CONTENTS .......................................................................................................................... 39 MINIMUM PUBLIC PARTICIPATION REQUIREMENTS ......................................................................................................... 40 ENCOURAGEMENT OF CITIZEN PARTICIPATION IN GENERAL ........................................................................................ 40 CITIZEN PARTICIPATION DURING PLAN DEVELOPMENT ................................................................................................ 40 PLAN AMENDMENTS .......................................................................................................................................................... 41 PERFORMANCE REPORTS ............................................................................................................................................... 42 PUBLIC HEARINGS .......................................................................................................................................................... 42 161
City of Rialto
Community Development Block Grant Program
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PUBLIC ACCESS ............................................................................................................................................................... 42 TECHNICAL ASSISTANCE ................................................................................................................................................. 42 COMPLAINTS .................................................................................................................................................................. 43 CITIZEN COMMENT ON THE CITIZEN PARTICIPATION PLAN ........................................................................................... 43 THE CONSOLIDATED PLANNING PROCESS .......................................................................................................................... 43 CONSULTATION .............................................................................................................................................................. 43 GENERAL CONSULTATION .............................................................................................................................................. 43 HOMELESS ...................................................................................................................................................................... 44 LEAD-BASED PAINT HAZARDS ........................................................................................................................................ 44 NON-HOUSING COMMUNITY DEVELOPMENT ............................................................................................................... 44 PUBLIC HOUSING ............................................................................................................................................................ 45
3. ACTIVITY SELECTION ............................................................................................................................................... 46 OVERVIEW .......................................................................................................................................................................... 46 CATEGORICAL ANNUAL SPENDING LIMITS ......................................................................................................................... 46 PUBLIC SERVICES ............................................................................................................................................................ 46 ADMINISTRATION........................................................................................................................................................... 47 PROPOSALS ......................................................................................................................................................................... 48 THRESHOLD CRITERIA ......................................................................................................................................................... 48 STATUTORY ELIGIBILITY .................................................................................................................................................. 48 MEETING A NATIONAL OBJECTIVE ................................................................................................................................. 50 OVERALL LMI BENEFIT .................................................................................................................................................... 50 PRIORITY NEED ............................................................................................................................................................... 50 MEANS OF CARRYING OUT THE ACTIVITY ...................................................................................................................... 51 RANKING CRITERIA ............................................................................................................................................................. 51 CAPACITY ........................................................................................................................................................................ 51 SCOPE AND BUDGET ...................................................................................................................................................... 52 COST/BENEFIT ................................................................................................................................................................ 52 TIMELINESS .................................................................................................................................................................... 52 TRACK RECORD ............................................................................................................................................................... 53 LEVERAGE ....................................................................................................................................................................... 53 GENERAL POLICIES .............................................................................................................................................................. 53 CDBG PROGRAM GOALS ..................................................................................................................................................... 53 PUBLIC SERVICES "NON-SUPPLANTING" RULE ................................................................................................................... 54 REQUEST FOR PROPOSALS (RFP) CONTENTS AND PROPOSAL REQUIREMENTS ................................................................. 54 RFP PROCESS ....................................................................................................................................................................... 56 PREPARATION................................................................................................................................................................. 56 PUBLICATION .................................................................................................................................................................. 56 WORKSHOP AND Q&A ................................................................................................................................................... 56 162
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SUBMISSION ................................................................................................................................................................... 57 EVALUATION AND RECOMMENDATIONS ....................................................................................................................... 57 AWARDS ......................................................................................................................................................................... 58 DOCUMENTATION .......................................................................................................................................................... 58
4. CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) OVERVIEW ..................................... 58 CAPER CONTENTS ............................................................................................................................................................... 59 GENERAL......................................................................................................................................................................... 60 CDBG .............................................................................................................................................................................. 60 CAPER OUTLINE .................................................................................................................................................................. 60 THE CAPER AND INFORMATION DISBURSEMENT AND INFORMATION SYSTEM (IDIS) ....................................................... 62 CAPER AND CITIZEN PARTICIPATION [24 CFR 91.105(D)] ................................................................................................... 63 A GUIDE TO HUD GUIDANCE ON THE CAPER ................................................................................................................. 63
5. SUB-RECIPIENT MANAGEMENT ............................................................................................................................... 65 OVERVIEW .......................................................................................................................................................................... 65 REPORTING REQUIREMENTS .............................................................................................................................................. 65 MONITORING ...................................................................................................................................................................... 65 DESK REVIEWS ................................................................................................................................................................ 66 ON-SITE REVIEWS ........................................................................................................................................................... 66 TECHNICAL ASSISTANCE/CAPACITY DEVELOPMENT ........................................................................................................... 67 MANAGING NON-PERFORMING SUB-RECIPIENTS .............................................................................................................. 67 FORMS ................................................................................................................................................................................ 68 RESOURCES .................................................................................................................................................................... 68
6. PERFORMANCE MEASURES ..................................................................................................................................... 69 OVERVIEW .......................................................................................................................................................................... 69 OBJECTIVES ......................................................................................................................................................................... 69 CREATING A SUITABLE LIVING ENVIRONMENT .............................................................................................................. 70 PROVIDING DECENT HOUSING ....................................................................................................................................... 70 CREATING ECONOMIC OPPORTUNITIES ......................................................................................................................... 70 OUTCOMES ......................................................................................................................................................................... 70 AVAILABILITY/ACCESSIBILITY .......................................................................................................................................... 70 AFFORDABILITY .............................................................................................................................................................. 70 SUSTAINABILITY .............................................................................................................................................................. 70 INDICATORS .................................................................................................................................................................... 71
7. ELIGIBLE ACTIVITIES ................................................................................................................................................ 71 OVERVIEW .......................................................................................................................................................................... 71 163
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PUBLIC FACILITIES AND IMPROVEMENTS [570.20L(C)] ...................................................................................................... 73 PUBLIC SERVICES [570.20L(E)] ............................................................................................................................................ 73 HOUSING ............................................................................................................................................................................ 74 HOUSING SERVICES ........................................................................................................................................................ 74 FAIR HOUSING .................................................................................................................................................................... 77 HOMELESS .......................................................................................................................................................................... 77 PROGRAM ADMINISTRATION [570.206] ............................................................................................................................. 78 PLANNING/CAPACITY BUILDING [570.205] ........................................................................................................................ 78 A NOTE ABOUT PRESUMPTION AND OVERALL LOW- AND MODERATE-INCOME (LMI) BENEFIT. ...................................... 79
8. MEETING A NATIONAL OBJECTIVE OVERVIEW ......................................................................................................... 80 OVERVIEW .......................................................................................................................................................................... 80 LOW- AND MODERATE-INCOME BENEFIT [570.209(A)] ..................................................................................................... 80 LOW- AND MODERATE-AREA [570.209 (A)(1)] .............................................................................................................. 80 LIMITED CLIENTELE [570.209(A)(2)] ............................................................................................................................... 81 LOW- AND MODERATE-INCOME HOUSING ................................................................................................................... 82 ELIMINATION OF SLUM AND BLIGHT .................................................................................................................................. 82 URGENT NEED..................................................................................................................................................................... 82
9. FINANCIAL MANAGEMENT OVERVIEW .................................................................................................................... 83 Policies Regarding Cash Management ................................................................................................................................ 83 Procedures for Reflecting Prior Period Adjustments and Accruals ..................................................................................... 84 Policy Regarding Rebates, Refunds and Credits to Federally Funded Programs ................................................................ 84 Procedures for Evaluating Travel and Training Costs Charged to the CDBG Program ........................................................ 85 Procedures for Allocating and Documenting Personnel Costs Charged to CDBG Admin Account ..................................... 85 Procedures for Allocating and Documenting Personnel Costs Charged to CDBG Rehab Account ................................... 86 Procedures for Allocating and Documenting Personnel Costs Charged to CDBG Microenterprise Activities (18-305-300) ............................................................................................................................................................................................ 86 Procedures for Determining Cost Reasonableness ............................................................................................................. 87 Process for Approval of Subrecipient Reimbursement Requests for Public Services ......................................................... 88 Process for Approval of Reimbursement Requests for Consultant Services ...................................................................... 88 FINANCIAL REPORTING ....................................................................................................................................................... 89 FFATA Reports .................................................................................................................................................................... 89 Open Balance Review ......................................................................................................................................................... 90 164
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Monthly Reconciliation ....................................................................................................................................................... 90 Federal Cash Transactions Report ...................................................................................................................................... 90 Policy Regarding Rebates, Refunds and Credits to HUD CPD Programs ............................................................................. 91 Procedures for Evaluating Travel and Training Costs Charged to the CDBG Program ........................................................ 91 Schedule of Federal Expenditures ...................................................................................................................................... 92 ASSET MANAGEMENT ........................................................................................................................................................ 93 Real Property ...................................................................................................................................................................... 94 Recordkeeping .................................................................................................................................................................... 95 EXHIBIT I ......................................................................................................................................................................... 95 Program Income ................................................................................................................................................................. 95 Reimbursement Process in IDIS .......................................................................................................................................... 96 TIMELINESS REVIEW ........................................................................................................................................................... 97 REIMBURSEMENT REQUESTS ............................................................................................................................................. 97 IDIS DRAWS ......................................................................................................................................................................... 97 PROGRAM INCOME ........................................................................................................................................................ 98 LUMP SUM DRAWS [570.513] .......................................................................................................................................... 100 REVOLVING LOAN FUNDS [570.5OO(B)] ........................................................................................................................... 100 ESCROW ACCOUNTS ......................................................................................................................................................... 101 INTEREST ON FEDERAL FUNDS.......................................................................................................................................... 101 FEDERAL FINANCIAL REPORT [STANDARD FORM 425] ..................................................................................................... 101
10. INTEGRATED DISBURSEMENT AND INFORMATION SYSTEM (IDIS) OVERVIEW .............................................. 101 WHAT IS IDIS? ................................................................................................................................................................... 101 IDIS IN CONTEXT ........................................................................................................................................................... 102 IDIS STRUCTURE: PLAN, PROJECT, AND ACTIVITY ............................................................................................................. 102 INTEGRATION INTO IDIS ONLINE ...................................................................................................................................... 102 IDIS FACTS ......................................................................................................................................................................... 103 IDIS ACCESS ....................................................................................................................................................................... 104 REQUESTING IDIS ACCESS ............................................................................................................................................ 104 SELECTING THE CORRECT “ACTION” ............................................................................................................................ 105 AUTHORIZED FUNCTIONS IN IDIS ................................................................................................................................. 105 THE AUTHORIZATION PACKET ...................................................................................................................................... 105 PC AND SOFTWARE REQUIREMENTS ................................................................................................................................ 105 GOING INTO IDIS ............................................................................................................................................................... 106 165
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DRAWDOWN FUNDS .................................................................................................................................................... 106
11. ENVIRONMENTAL OVERVIEW ....................................................................................................................... 109 OVERVIEW ........................................................................................................................................................................ 109 LEVEL OF REVIEW DETERMINATION ................................................................................................................................. 109 LEVELS OF REVIEW ............................................................................................................................................................ 109 EXEMPT ........................................................................................................................................................................ 109 CATEGORICALLY EXCLUDED, NOT SUBJECT TO 58.5 .................................................................................................... 110 CATEGORICALLY EXCLUDED, SUBJECT TO 58.5 ............................................................................................................ 111 ENVIRONMENTAL ASSESSMENT "EA" .......................................................................................................................... 113 ENVIRONMENTAL IMPACT STATEMENT "EIS" ............................................................................................................. 113 EXTRAORDINARY CIRCUMSTANCES .................................................................................................................................. 114 "58.6" REVIEW .................................................................................................................................................................. 114 CONVERSION TO EXEMPT ................................................................................................................................................. 114 PUBLIC NOTICE ............................................................................................................................................................. 114 RELEASE OF FUNDS ...................................................................................................................................................... 115 PROCESS/FLOW ............................................................................................................................................................ 115 BEST PRACTICES AND GENERAL PRINCIPLES ................................................................................................................ 116 IDIS ............................................................................................................................................................................... 116
12. PROCUREMENT ............................................................................................................................................ 116 OVERVIEW ........................................................................................................................................................................ 116 TYPES OF PROCUREMENT ................................................................................................................................................. 117 SMALL PURCHASES ....................................................................................................................................................... 117 SEALED BID ................................................................................................................................................................... 118 COMPETITIVE PROPOSAL (RFP/RFQ) ............................................................................................................................ 119 NONCOMPETITIVE PROPOSALS .................................................................................................................................... 120 IN GENERAL ...................................................................................................................................................................... 120 Conflict of Interest ........................................................................................................................................................ 121 Excluded Parties ........................................................................................................................................................... 121 Minority/Woman-Owned Business Enterprises ........................................................................................................... 122
13. OTHER FEDERAL REQUIREMENTS ................................................................................................................. 122 OVERVIEW ........................................................................................................................................................................ 122 LABOR STANDARDS (570.603) .......................................................................................................................................... 122 FAIR HOUSING (570.601) .................................................................................................................................................. 122 NON-DISCRIMINATION (570.602—SECTION 109) ............................................................................................................ 123 RELOCATION/DISPLACEMENT (570.606) .......................................................................................................................... 123 EQUAL OPPORTUNITY (570.607) ...................................................................................................................................... 123 166
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LEAD-BASED PAINT (570.608) ........................................................................................................................................... 123 SECTION 504/REASONABLE ACCOMMODATION .............................................................................................................. 124 LIMITED ENGLISH PROFICIENCY ........................................................................................................................................ 124
14. APPENDICES ................................................................................................................................................. 125 LOS ANGELES FIELD OFFICE .............................................................................................................................................. 125 HUD WEB SITE .................................................................................................................................................................. 125 TRAINING .......................................................................................................................................................................... 125 HUD EXCHANGE – CDBG: COMMUNITY DEVELOPMENT BLOCK GRANTS ........................................................................ 125 THE CODE OF FEDERAL REGULATIONS (CFR) .................................................................................................................... 125 PROGRAM RELATED DOCUMENTS ................................................................................................................................... 125 REQUEST FOR REIMBURSEMENT ................................................................................................................................. 126 PUBLIC SERVICE APPLICATION ..................................................................................................................................... 128 SUBGRANTEE ON-SITE MONITORING CHECKLIST ........................................................................................................ 138 DETERMINATION OF EXEMPTION ................................................................................................................................ 145 Project Information .......................................................................................................................................................... 145 Funding Information ......................................................................................................................................................... 145 Compliance with 24 CFR §50.4 and §58.6 Laws and Authorities ...................................................................................... 146 DETERMINATION OF CATEGORICAL EXCLUSION .......................................................................................................... 149 Project Information .......................................................................................................................................................... 149 Funding Information ......................................................................................................................................................... 149 Compliance with 24 CFR 50.4, 58.5, and 58.6 Laws and Authorities ................................................................................ 150
15. GLOSSARY .................................................................................................................................................... 155
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1. INTRODUCTION AND CDBG GRANT ADMINISTRATION
PURPOSE OF THIS MANUAL
The purpose of this manual is to assist staff to obtain a basic and clear understanding of the program's fundamental requirements. As staff members of a local entitlement jurisdiction begin working with federal programs such as the Community Development Block Grant, one of the first challenges is gaining a comfortable understanding of all the related acronyms. Throughout this manual, The federal Community Development Block Grant program will be referred to as CDBG.
This policies and procedures manual also provides an understanding of the overall grant administration responsibilities of the City, identification of assigned staff to meet these responsibilities, and instructional policies and procedures to provide guidance to staff.
Please note, that despite being designed as an educational tool for staff of an entitlement jurisdiction, this manual is not intended to be the sole reference or an authoritative source on the CDBG program. In fact, a substantial section of the manual is devoted to guiding staff to where they can find the answers to questions and further details about CDBG. This manual in no way is intended to act as a substitute for staff training sponsored by the federal Department of Housing and Urban Development (HUD) Community Planning and Development division (CPD) field office.
WHAT IS CDBG?
The Community Development Block Grant (CDBG) program is a flexible program that provides communities with resources to address a wide range of unique community development needs.
Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD.
The CDBG program provides annual grants on a formula basis to approximately 1180 general units of local government and States. (www.hud.gov)
The program is authorized under Title 42 US Code, Chapter 69, Section 5301, and the regulations that govern the CDBG program are at Title 24, Chapter 570 of the Code of Federal Regulations (CFR).
(https://www.ecfr.gov/cgi-bin/text-
idx?SID=a478864825fbeb76f67160e3f0522f7a&mc=true&node=pt24.3.570&rgn=div5).
The CDBG program was enacted in 1974 with the passage of the Housing and Community Development Act of the same year. The program originated out of the consolidation of several previous federal grant programs that aimed to address similar community issues targeted by CDBG.
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NATIONAL OBJECTIVES
In its most broad and general definition, the intent of the program is to help local communities improve the quality of life for residents. To this end, the program has what are called three "National Objectives”. In order to use CDBG funds, the proposed use must meet one of these three National Objectives. These are:
1. to benefit low- or moderate-income persons;
2. to aid in the prevention or elimination of slums or blight; or
3. to meet an urgent community development need.
The Code of Federal Regulations ("CFR" or "regulations" or "regs") and published HUD guidance go into detail about how one determines whether a jurisdiction is meeting a National Objective.
WHO GETS CDBG AND HOW MUCH?
The annual CDBG appropriation is allocated between States and local jurisdictions called “non - entitlement” and “entitlement” communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (“MSAs”); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute funds to non- entitlement localities not qualified as entitlement communities.
HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas. (www.hud.gov)
Each year, the US Congress appropriates funds to the CDBG program as part of the budget for the Department of Housing and Urban Development, known as HUD. More specifically, the CDBG program is funded from the Community Development Fund (the "Fund"). Although there are a number of smaller programs funded from the Fund, the CDBG program is by far the largest.
PROGRAM AREAS
The funding allocated to the CDBG program is then further distributed among eight "program areas" according to a statutory formula. These programs are:
1. Entitlement Communities – annual grants to larger cities and urban counties
2. State Administered CDBG – the "Small Cities" program. States award grants to smaller units of general local government
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3. Section 108 Loan Guarantee Program – for entitlement communities and non- entitlement. HUD provides financing for CDBG -funded activities using future CDBG awards to repay the loan
4. Neighborhood Stabilization Program – This Program was established to stabilize communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized
5. Insular Areas – grants to four designated insular areas: American Samoa; Guam; Northern Mariana Islands; and the Virgin Islands
6. Disaster Recovery Assistance – grants to help cities, counties, and States recover from disasters
7. Colonias – Texas, Arizona, California, and New Mexico set aside a portion of state CDBG funds to improve living conditions in under -developed settlements along the US -Mexico border
8. Non-Entitlement CDBG Grants in Hawaii – The Non-Entitlement CDBG Grants in Hawaii offer a source of financing allotted for the Community Development, housing rehabilitation, public facilities rehab, construction or installation for the benefit of low- to moderate-income persons, or to aid in the prevention of slums.
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
HUD’s mission is to create strong, sustainable, inclusive communities and quality, affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality, affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
HUD is a large federal department with a broad range of responsibility. HUD has five main divisions or "program offices": Housing, Community Planning/Development, Fair Housing/Equal Opportunity, Public/Indian Housing and Ginnie Mae.
As a CDBG recipient, the City will be working with the Community Planning/Development office, which is referred to as CPD. The City will also have a field representative assigned to the jurisdiction from the local field office. This person can be viewed as a ga teway to HUD. Any questions regarding the CDBG program that cannot be answered internally can be directed to the field representative. It is key to establish an open and effective line of communication with the field representative, so he/she are kept informed on the status of the jurisdiction’s programs and entitlement.
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HUD has 81 field offices distributed across the country with at least one in each state. Located at these field offices are representatives of the various HUD divisions or program offices. HUD has also divided up the nation into regions. Each region has a Regional Office and a Regional Office Director. You will also have minor interactions with other HUD offices including Labor Relations and Policy Development and Research (PDR).
THE CODE OF FEDERAL REGULATIONS (CFR)
The Code of Federal Regulations (CFR) is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government. It is divided into 50 titles that represent broad areas subject to Federal regulation.
There are several federal laws, regulations and rules that guide and impact the CDBG program.
The most important is the enabling regulation, which can be found in Part 570 of Title 24 of the Code of Federal Regulations or "24 CFR 570”. This is where the "how-to" and the “dos and don’ts” of the CDBG program are located.
Every April, the regulations affecting HUD, and therefore the CDBG program, are updated. Any changes to the regulations are published in the Federal Register as they are being considered and as they are implemented. The most current version of the regulations can be found on the website of the US Government Printing Office (GPO). (https://www.ecfr.gov/cgi-bin/text- idx?SID=a478864825fbeb76f67160e3f0522f7a&mc=true&node=pt24.3.570&rgn=div5#sp24.3.5
70.a). In addition to accessing the GPO website for the most current Regulations, HUD will typically notify grantees when changes are being considered and when they are implemented.
HUD will also occasionally publish memoranda or notices that are collectively referred to as "guidance”. These letters generally serve to clarify common misunderstandings or explain how to interpret program regulations considering new federal requirements or changing circumstances. HUD will also publish "handbooks" and "guides" that offer more comprehensive guidance for grant recipients.
Some of the other regulations that impact the CDBG program are:
• Lead Safe Housing;
• Environmental Review;
• General Administration; and
• The federal Office of Management and Budget (OMB) Circulars.
It is often difficult to locate HUD guidance after it has been issued. A good resource that can be utilized are assembled links to all the relevant documents at CDBG Laws and Regulations (https://www.hudexchange.info/programs/cdbg/cdbg-laws-and-regulations/). 171
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CDBG GRANT ADMINISTRATION
CDBG funds are received from HUD as grants to States and local communities, known as grantees, to carry out a wide range of community development activities directed toward revitalizing neighborhoods, Community Development and providing improved community facilities and services.
The City of Rialto, as an entitlement community, is responsible for developing its own programs and funding priorities. As a grantee, the City must ensure one of the three national objectives is met when funding activities including benefitting low- and moderate-income persons, aid in the prevention or elimination of slums or blight, or meeting other community development needs having a particular urgency. This is discussed further in Chapter 8.
Consolidated Plan
Recipients of CDBG funds must engage in a planning process to identify priority needs in the community and then develop goals and objectives to address these needs. The Consolidated Plan process produces a 3- to 5-year Consolidated Plan which describes the jurisdiction's community development priorities and multi-year goals based on an assessment of housing and community development needs, an analysis of housing and economic market conditions and available resources (see Chapter 2 for a further discussion). The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan (see Chapter 3 for a discussion on Activity Selection and Chapter 7 on Eligible Activities).
Citizen Participation
An essential part of the Consolidated Plan process is consultation and citizen participation.
Through the Consolidated Plan grantee jurisdictions engage the community, both in the process of developing and reviewing the proposed plan, and as partners and stakeholders in the implementation of CPD programs. By consulting and collaborating with other public and private entities, grantees can align and coordinate community development programs with a range of other plans, programs and resources to achieve greater impact (see Chapter 2 and the City's Citizens Participation Plan).
Consolidated Annual Performance and Evaluation Report (CAPER)
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By providing detailed financial and beneficiary information, the CAPER explains how a jurisdiction is carrying out its housing and community development strategies, projects, and activities (see Chapter 4). In addition to writing general and program narratives, grantees must use IDIS to capture the information needed to meet CAPER requirements. As IDIS users set up activities, draw funds, and report accomplishments, they are creating a database that contains information required for the CAPER. Grantees can retrieve this data from IDIS at the end of their program year. By keeping information current in IDIS throughout the year, there is no need to collect and gather large amounts of data required for the CAPER (see Chapter 10).
Sub-Recipients
One way of implementing the local CDBG program is through the use of sub- recipients. Chapter 5 provides an overview of identifying, selecting, and monitoring a CDBG sub- recipient. The management and oversight of sub-recipients is a critical task of the entitlement jurisdiction. Using a sub-recipient to implement the local CDBG program does not relieve the original grantee of its responsibilities under CDBG and other federal rules and regulations. Another essential requirement necessary to administer a CDBG grant is to have policies and procedures in place for financial management of the grant. Chapter 9 covers the financial responsibilities of a grantee when funds are requested, money is committed, and drawdowns occur. It is important for entitlement jurisdiction staff to understand the process and regulations pertaining to the CDBG program even after they are commi tted to a specific activity or project through a contract or agreement. Other program requirements which must be met in the administration of the CDBG program include meeting environmental regulations under the National Environmental Policies Act (NEPA), addressing federal requirements for procurement under 2 CFR Part 200.317 -326, in addition to meeting other federal requirements [24 CFR 570.600].
Planning Suite
HUD's Office of Community Planning and Development (CPD) introduced the eCon Planning Suite, including the Consolidated Plan template in IDIS Online and the CPD Maps website. The eCon Planning Suite supports grantees and the public to assess their needs and make strategic investment decisions by creating a more cohesive planning and grants management framework and providing better data and a tool for analysis. The Consolidated Plan template in IDIS facilitates the planning process by making critical data on housing and community development needs readily accessible to grantees in the format required by HUD. By providing detailed and timely demographic, housing affordability and economic data, the template frees up time formerly spent searching out and compiling data to allow grantees to focus on understanding the data, further boosting the process beyond simple compliance with reporting and budgeting requirements.
Moreover, by providing a standard format for all the required Consolidated Plan elements, HUD is providing clear guidance on when requirements will be met.
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INTERNAL CONTROLS
These policies and procedures are developed to ensure that the CDBG grant is operated in compliance with Federal statutes, regulations, and all terms and conditions established as part of the grant award. As such the City will ensure that it:
1. Complies with U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards.
i. Should new guidance, regulations, statutes, terms, or conditions be issued, the City will perform its due diligence and review the information and work to update (if applicable) its program documents and implement the guidance.
2. Evaluate and monitor its compliance with statutes, regulations and terms and conditions of the CDBG grant.
i. The City will work with consultants to regularly monitor its CDBG award for compliance.
This includes regular meetings between City staff and consultants, monitoring subrecipient files, reimbursement request reviews, regular check-ins with Finance to confirm draws, monitoring of IDIS data entry and activities.
3. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings.
i. The City will comply with deadlines and respond to HUD when there are instances of noncompliance are identified including noncompliance identified in audit findings.
4. Safeguard protected personally identifiable information (PII)
i. The City will take steps necessary to ensure the privacy of PII obtained from participants.
ii. PII data will be stored in areas that are always safe from access by unauthorized persons and processed in a manner to that will protect the confidentiality of the record. This typically means that information is always kept in a locked file, when not actively working on the file. Records containing PII should never be left open and unattended.
iii. Access to PII will be restricted to only those staff (including program staff, City staff, Consultants, HUD staff) who need it in their official capacity to perform duties in connection with the scope of work in the agreement with the City, or as part of 174
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monitoring visit in the case of HUD.
iv. Documents containing PII will only be retaining for the period required to use it for assessment and/or to satisfy applicable Federal records retentions requirements.
FINANCIAL MANAGEMENT PROCEDURES
1. Payment/Drawdown Procedure
CDBG funds are available on a reimbursement basis only based on documentation of incurred expenses and the payment of the expenses.
i. The City of Rialto will reimburse funds based upon information submitted by the Recipient. Any expenditures occurring after the effective date up to the end of the contractual agreement between the City of Rialto and the Recipient are eligible for reimbursement.
ii. Expenditures must be consistent with the approved budget as stated in the contractual agreement between the City of Rialto and the Recipient. Only eligible expenses will be reimbursed.
iii. Payments will be adjusted by the City in accordance with program income balances available in sub-recipient accounts, if applicable.
iv. To ensure accurate billing and fund management sub-recipients should keep track of the following information for activities funded:
a. Funds budgeted.
b. Funds received from the City of Rialto.
c. Reimbursements to-date.
d. Funds obligated in the most recent period and to-date.
e. Funds expended in the most recent period and to-date.
f. Cash on hand (including program income identified as such), if applicable.
g. Previous reimbursements requested but not yet received, if applicable.
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v. All requests for final reimbursements must be submitted to the Finance Department within 30 days after June 30th (end of fiscal year).
To request reimbursement:
a. The "Request for Reimbursement" form (see Appendix) must be completed and signed by authorized personnel.
b. Provide original invoices for all expenditures to be reimbursed.
c. Payment receipts, copies of checks, and/or all documentation proving that payment has been made prior to requesting reimbursement.
d. For salary reimbursement, timesheets must include total time worked and a breakdown of funding sources covering the salary and benefits associated.
All reimbursements will be made within thirty (30) days of receipt of the request, if proper documentation has been submitted. The City of Rialto will not provide reimbursements if quarterly reports have not been submitted within the time limits stated in the contractual agreement between the City and the Recipient.
2. Internal Controls
The City of Rialto internal controls include a combination of procedures, specified job responsibilities, qualified personnel, and records that together create accountability in an organization's financial system and safeguard its cash, property, and other assets. The City's internal controls make sure that:
i. Resources are used for authorized purposes and in a manner consistent with applicable laws, regulations, and policies,
ii. Resources are protected against waste, mismanagement, or loss, and
iii. Reliable information on source, amount, and use of resources are secured up-to-date, and recorded.
Additionally, internal controls will ensure that no one individual has authority of an entire financial transaction.
Specifically, the City has a separation of power for the following three responsibilities:
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i. Authorization to execute a transaction,
ii. Recording of the transaction, and
iii. Custody of assets involved in the transaction. This type of separation of responsibilities will create a system of checks and balances for grant and general organization expenditures.
The City will periodically reconcile its financial records to actual assets and liabilities which will safeguard resources as well as detect instances of fraud or misuse.
3. Record-Keeping
The CDBG Program has recordkeeping and reporting requirements to document that CDBG funds are used appropriately and that CDBG Program objectives are being met.
i. Requirements
Under the CDBG Program regulations, the City of Rialto is required to meet certain record-keeping and reporting requirements that are designed to:
a. Ensure consistency with CDBG program requirements;
b. Clarify the record retention periods; and
c. Include new records that exercise any of the three new options allowed in the Final Rule (i.e., multi-family refinancing, presumption of affordability for homebuyer assistance, and locally established 95 percent of area median purchase price limits).
ii. The City of Rialto will maintain records that include:
a. Program records;
(a) Written agreement with the City of Rialto and documentation of compliance with the written agreement;
(b) A copy of the application originally submitted to the City of Rialto; and (c) Forms of assistance used.
b. Project records;
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c. Community Housing Development Organizations (CHDO) records; d. Financial records;
e. Program administration records; and
f. Records concerning other Federal requirements.
CONFLICT OF INTEREST
The City of Rialto will comply with the following conflict-of-interest provisions:
1. 24 CFR Parts 84 and 85, and CFR 85.36 and 24 CFR 84.42.
2. Provisions not covered by 24 CFR Parts 84 and 85, set forth in the CDBG regulations.
Additionally, the CDBG regulations include conflict of interest provisions for nonprofit, for- profit owners/developers/sponsors and CHDOs.
3. No employee, officer, or agent of the city shall participate in the selection, award, or administration of a contract supported by CDBG if a conflict -of-interest, either real or apparent, would be involved;
4. City empl oyees, officers, and agents shall not accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to sub -agreements; and
5. Enforce provisions for penalties, sanctions or other disciplinary actions for violations of standards.
6. No person who exercises or has exercised any functions or responsibilities with respect to CDBG activities or who is in a position to participate in decisions or gain inside information:
a. May obtain a financial interest or benefit from a CDBG activity; or the City of Rialto CDBG Program Operations;
b. Have an interest in any contract, subcontract, or agreement for themselves or for persons with business or family ties.
NOTE: This requirement applies to covered persons during their tenure and for one year after leaving the Recipient entity.
7. Include the conflict -of-interest provision in written agreements and other documents 178
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with owners, developers, and sponsors.
8. Monitoring of projects will include necessary actions to ensure that the conflict of Interest provision is adhered to.
CDBG PROGRAM STAFFING PLAN
It is the intentions of the City to have City staff provide management oversight of the administration of the CDBG program. To the extent necessary, the City will utilize other resources including consultants to assist with the administration of the CDBG Programs. Provided below is a brief staffing plan identifying roles and responsibilities of City staff and program consultants.
CITY OF RIALTO - ORGANIZATION ROLES AND RESPONSIBILITIES
For questions concerning the CDBG Program, individuals may contact the Community services Department staff directly by telephone, or e-mail. The mailing address is:
City of Rialto
Community Services Department
150 S. Palm Ave
Rialto, CA 92376
Exhibit 7, on the following page, summarizes the City of Rialto staff’s roles and responsibilities in administering the City's CDBG Program.
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EXHIBIT 7
CITY OF RIALTO STAFFING PLAN
Staff Members Phone Number E-Mail Address
Marcus Fuller
City Manager
(909) 820-2689
Arron Brown
Deputy City Manager
(909) 421-7219
Cynthia Alvarado - Crawford
Director of Community
Services
(909) 421-4949
[email protected]
Vacant
Director of Finance
Vacant Vacant
Katherine I. Stevens
Deputy Director of Finance
(909) 421- 7242
Thad Coffing
Accounting Supervisor
(909) 421-4998
Anne Darroch
Principal Budget & Financial
Analyst
(909) 820-8065
CDBG Program Consultant
(909) 895-7146
City Manager – City of Rialto certifying officer responsible for overall functions of the City of Rialto, including the functions of the Community Services Department and Finance Department.
The City Manager shall have the authority to make minor modifications to the manual that are not in conflict with federal regulations.
Deputy City Manager – Responsible for the CDBG program administrative oversight, including managing program consultants to ensure programs are being carried out in compliance with 180
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program requirements. As the City of Rialto certifying officer, designated by the City Manager, signs CDBG Program certifications, grant documents, loan agreements, and wiring requests.
Director of Community Services – Responsible for overall program management and evaluation of the operation of the program. Facilitates the adoption of program policies and procedures and assigns the necessary staff resources to carry out the program. The Director shall have the authority to make minor modifications to the manual that are not in conflict with federal regulations.
Director of Finance (vacant) - Responsible for overall financial operations of the City and evaluating and making recommendations on financial operations, such as the City’s CDBG Program.
Deputy Director of Finance – Responsible for the internal operations of the finance department and making recommendations on financial operations, such as the City's CDBG Program.
Accounting Supervisor – Responsible for approving IDIS drawdowns and evaluating/approving financial requisitions and supporting documentation. Works with the Director of Finance and Housing and Grants Analyst to implement financial operations related to the CDBG programs and works with auditors for the completion of City audits.
Principal Budget & Financial Analyst – Responsible for providing expenditure reports. Works with Accounting Supervisor and Housing and Grants Analyst to implement financial operations related to the CDBG programs and works with auditors for the completion of City audits.
CDBG Program Consultant – Responsible for ensuring the administration and implementation of the CDBG program is being carried out in compliance with program requirements. Assists, as assigned, with the preparation of required reports. Sets up activities in IDIS and prepares vouchers. Reviews the program to ensure compliance with CDBG regulatory commitment and expenditure requirements; ensures file documentation is maintained. Assists with the preparation of required reports and implementation of CDBG activities.
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City Manager
Director of
Community Serivce
CDBG Program
Consultant
Director of Finance
(Vacant)
Deputy Director of
Finance
Supervising
Accountant
Deputy City Mananger
City of Rialto
CDBG
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2. CONSOLIDATED PLANNING OVERVIEW
This section will inform staff of the purpose and guide staff through the requirements of the Consolidated Plan and processes. Recipients of federal CDBG funds must prepare a Consolidated Plan, often referred to as the "Con Plan". The Consolidated Plan is intended to act as a consolidated planning document that describes the housing and community development needs of the grantee’s community, the resources available to meet those needs, and the proposed actions to meet those needs. The Con Plan must cover a minimum period of at least 3 years, but not exceed more than 5 years.
The consolidated plan serves the following functions [24 CFR 91]:
1. A planning document for the jurisdiction, which builds on a participatory process among citizens, organizations, businesses, and other stakeholders;
2. A submission for federal funds under HUD’s formula grant programs for jurisdictions;
3. A strategy to be followed in carrying out HUD programs; and
4. A management tool for assessing performance and tracking results.
A Consolidated Plan is also required for grantees under the federal Housing Investment Partnerships Program (HOME), Emergency Shelter Grant program (ESG), and Housing Opportunity for Persons with AIDS (HOPWA) Program. The Con Plan should address all of these programs if the grantee receives these funds. The Plan should also describe other resources that will be made available to meet the community's identified needs.
The Consolidated Plan must also include an Action Plan that is submitted each year. The annual Action Plan provides HUD with more details regarding the entitlement jurisdiction's plan to allocate funds through programs and projects that will meet the current needs of the community.
In other words, where the Action Plan speaks to the specific activities that will be undertaken over the following year, the Consolidated Plan delivers a general outline and is considered to be a guiding document rather than a commitment to certain actions.
The Consolidated Planning requirements of 24 CFR 91 are not only requirements for documentation but also require the grantee to involve the public. HUD sees the Consolidated Plan and Action Plans as much as processes as they are documents, if not more so. From HUD's perspective, the document serves as evidence of the process.
Unless cited otherwise, quotes from HUD in this section are from "GUIDELINES FOR PREPARING A CONSOLIDATED PLAN SUBMISSION FOR LOCAL JURISDICTIONS", "FY 2007 Implementation:
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New Local Regulatory Provisions for 3 -5 Year Consolidated Plan Amendments", and "New Local Action Plan Submission Provisions". They all are available on the HUD website. The FY2007 and "new" requirements were released following the update and revision of 24 CFR 91 adopted in 2006 and implemented in federal fiscal year 2007.
PROGRAM YEAR
The program year for the City of Rialto coincides with the Fiscal year, which begins on July 1 and ends on June 30.
PLAN SUBMISSION AND REVIEW
Consolidated Plans and Annual Action Plans must be submitted 45 days prior to the start of the program year which they cover.
In May 2012, HUD's Office of Community Planning and Development (CPD) introduced the eCon Planning Suite, including the Consolidated Plan template in IDIS Online and the CPD Maps website. By creating a more cohesive planning and grants management framework and providing better data and a tool for analysis, the econ Planning Suite supports grantees and the public to assess their needs and make strategic investment decisions.
The Consolidated Plan template in IDIS facilitates the planning process by making critical data on housing and community development needs readily accessible to grantees in the format required by HUD. By providing detailed and timely demographic, housing affordability and economic data, the template frees up time formerly spent searching out and compiling data to allow grantees to focus on understanding the data, further boosting the process beyond simple compliance with reporting and budgeting requirements. Moreover, by providing a standard format for all the required Consolidated Plan elements, HUD is providing clear guidance on when requirements will be met.
With the incorporation of the Consolidated Plan and Annual Action Plans into IDIS Online, the key reporting elements of the grants management cycle are integrated into a single system. This will help ensure cohesiveness among
• the goals described in the Consolidated Plan and Action Plan, • the activities and accomplishments tracked in IDIS, and • the outcomes reported in the Consolidated Annual Performance and Evaluation Report (CAPER).
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This integrated system makes the Consolidated Plan a more useful planning and management tool.
CPD Maps is an online data mapping tool for place -based planning. Grantees and the public can use CPD Maps to analyze and compare housing and economic conditions across their jurisdictions. The CPD Maps tool is publicly available, giving all community stakeholders access to the same data. The Consolidated Plan template allows grantees to insert maps and data tables from CPD Maps with ease, throughout their plan.
CONSOLIDATED PLAN CONTENTS
The regulations require that the Consolidated Plan include certain information about the community, that it answer certain questions about the community and the grantee jurisdiction, and that it tell HUD how the grantee intends to comply with certain program and HUD requirements.
In general, the following components are required [24 CFR 91.200]:
• description of the lead agency
• description of the planning process
• description of those who participated in the process
• description of consultations with other agencies and entities • executive summary of the plan
• summary of the public planning process
• housing and homeless needs assessment
• housing market analysis
• Strategic Plan
• annual Action Plan
• required certifications
• monitoring plan
• citizen participation plan
The regulations specify the form and content of these components to varying degrees. It is key that those staff members who assist in the development of entitlement jurisdictions pay particular attention to those requirements identified in the regulations. In addition to 24 CFR 91, HUD has also provided additional guidance resources regarding the development of a Consolidated Plan. HUD provides links to "model" Consolidated Plans and best planning practices on its web site at http://www.hud.gov/offices/cpd/about/conplan/
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BACKGROUND AND GENERAL INFORMATION
The first four requirements above are typically presented in a background section that includes general information about the community. Details on what HUD is looking for in these sections are summarized below.
DESCRIBE THE LEAD AGENCY
From HUD: "The jurisdiction must identify the lead agency or entity for overseeing the development of the plan and the major public and private agencies responsible for administering programs covered by the consolidated plan”.
The "lead agency" is going to be the grantee jurisdiction except in the rare case that the plan covers more than one jurisdiction. In this case, the lead agency is the City of Rialto.
DESCRIBE THE PLANNING PROCESS
HUD wants a general description of the planning process that identifies those steps taken by the jurisdiction to prepare for the development of the consolidated plan in a way that meets the federal requirements. This can be in the form of a narrative timeline of the planning process.
TELL HUD WHO WAS INVOLVED
HUD wants to know about the public and private agencies involved in planning for the use of funds. This can be as simple as a list of agencies.
TELL HUD WHO YOU "CONSULTED"
HUD requires that you "consult" with agencies that have knowledge of housing and community development needs. There are certain required consultations. These are described in more detail in the following section. You need to list those agencies you consulted in the preparation of the plan. HUD encourages entitlement jurisdictions to consult with a dynamic pool of community representatives that can include local businesses, developers, non -profit agencies, faith -based organizations, the general public and other parties that carry an interest in the community.
EXECUTIVE SUMMARY
Grantees must provide a separate "executive summary" of the Consolidated Plan. This should be a short description of the Consolidated Plan. HUD wants the executive summary to include the objectives and outcomes that have been identified in the plan and for it to discuss the past performance of the grantee.
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PUBLIC PROCESS SUMMARY
Jurisdictions need to summarize the "citizen participation process" that was implemented to gain public input. This is often a separate section or an appendix to the plan. This section describes the various public workshops, public hearings, and public meetings of elected or appointed bodies. The public process summary should specifically mention when and how the public was informed of these meetings and should provide a summary of the public comment captured at the meetings. In addition to the public meetings, HUD wants to know when and how the public was informed of the planning process; when and how they were given an opportunity to review the plan document.
Please note: HUD wants draft documents to be made available on -line at the entitlement jurisdiction's web site.
Copies of all public notices with evidence of when they were posted should be captured.
COMMUNITY NEEDS
HUD requires that the Consolidated Plan discuss the community's needs in general and specifically discuss those identified housing needs, homeless needs, and provide an analysis of the local housing market.
GENERAL COMMUNITY NEEDS
Although the regulations and HUD are not specific about the discussion of general needs there should be substantial presentation of the community's demographics including current characteristics and trends in population, age, education, employment, race/ethnicity, household characteristics, and characteristics of special needs populations (elderly, disabled, large households, single -parent households, persons addicted to drugs and alcohol, persons with HIV/AIDS, victims of domestic violence, and persons receiving public assistance).
HOUSING NEEDS
The requirements for the discussion of Housing and Homeless Needs are much more specific.
Housing needs must be projected for the Consolidated Plan period. Housing needs must be discussed by income group and by renters vs. owners. Data from the US Census must be used.
Census data may be complemented by other reliable data sources and local surveys. Consultation with local service providers and advocates should also be reflected in the discussion of housing needs.
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The housing needs of the following special needs groups must be discussed:
• elderly
• disabled
• single persons
• large families
• public housing residents
• families on the public housing waiting list
• persons with HIV/AIDS and their families
The discussion of housing needs must also include:
• housing cost burden
• over-crowding (especially for large families)
• housing conditions
The discussion must provide specific information by income group and tenure. The needs assessment must also include an analysis of how any particular ethnic or racial group has disproportionate housing needs.
DATA SOURCES
Special US Census data tabulations for the preparation of Consolidated Plans including data on housing needs are availa ble from HUD's Policy Development and Research Information Service or "PD&R" from the "HUD User" website: http://www.huduser.org/dalasets/cp.html.
CHAS Data
One special data set that can be a useful tool in developing an effective Consolidated Plan is called "CHAS Data". This source of data is a collection of custom tabulations that were once used in the preparation of what was known as a "Comprehensive Housing Affordability Study" (CHAS), which has since been replaced by the Consolidated Plan. It, along with other data sources, can be accessed through what is called the "State of the Cities Data System" (SOCDS) at http://socds.huduser.org/. CHAS Data can be pulled at this website:
http://socds.huduser.org/chas/index.html.
Consolidated Plan Template in IDIS
The Consolidated Plan Template in IDIS makes data on housing and community development needs readily accessible to grantees in the format required by HUD. The provision of detailed and 188
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timely demographic, housing affordability and economic data in the template frees up staff time to allow grantees to focus on understanding the data, further boosting the process beyond simple compliance with reporting and budgeting requirements.
Both the Consolidated Plan Template in IDIS Online and CPD Maps draw on multiple data sources to produce data tables, populate maps and create reports. The following data sources are used by both tools.
• American Community Survey (ACS)
• eCon Planning Suites data
• Fair Market Rents (FMR)
• HOME Program Rent Limits
• HOME Income Limits
• Homeless Data Exchange/Annual Homeless Assessment Report Data • Homeless Data Exchange Public Report
• Assisted Housing (IMS/PIC)
• Physical Inspection Reports
Data sources from HUD and others are listed HUD's Consolidated Plan Data Sources page http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/about/conplan/c p_data.
The Consolidated Plan must include a concise summary of the extent and nature of the community's homeless population including chronically homeless individuals and rural homelessness. It must include a distinct analysis of need for services and facilities for homeless individuals, families, families with children, sheltered, unsheltered and other homeless subpopulations. The summary should provide the characteristics and needs of low - and very- low-income families that are threatened by homelessness. This section should also present a brief narrative on the racial and ethnic characteristics of the homeless population to the greatest extent possible. HUD requires the Consolidated Plan include "Table 1A" to present this information.
SUPPORTIVE HOUSING NEEDS
The discussion must include an estimate of non- homeless persons with special needs and a discussion of their needs. These populations include elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or drug addictions, persons with HIV/AIDS and their families, public housing residents, and any other population the grantee believes have a need for supportive housing. HUD requires jurisdictions to use "Table 1B" to present this information.
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LEAD-BASED PAINT HAZARDS
The Consolidated Plan must include an estimate of housing units occupied by low -income households that may contain lead-based paint. The Plan must also discuss the incidence of actual lead poisonings attributable to lead-based paint in the grantee jurisdiction.
HOUSING MARKET ANALYSIS GENERAL
SUPPLY AND DEMAND
The Consolidated Plan must discuss the supply of, demand for, condition and cost of housing in the grantee jurisdiction. This must include specific discussion of housing serving persons with special needs and low-income households. (See Housing Needs.) Condition of housing units must estimate the number of vacant and abandoned housing units and the suitability of these units for rehabilitation and occupancy.
INCOME, RACE AND ETHNIC CONCENTRATION
The Consolidated Plan must identify and describe any areas with concentrations of low -income households and areas of racial or ethnic concentration. A low -income concentration area is a primarily residential area where 51% or more of the housing units are occupied by low -income households. The grantee must determine and justify the threshold for race/ethnic concentration.
These areas should be illustrated using maps in the plan.
PUBLIC HOUSING AND AFFORDABLE HOUSING
The Plan must discuss the needs of public housing and other subsidized affordable housing. This must include an identification of the developments, number and type of units, condition, physical needs, and the results of any recent Section 504 evaluation. The Plan should discuss the local Public Housing Authority's (PHA) management plan and identify if the PHA is operating under an HUD-approved PHA Plan.
Discussion of privately-owned affordable housing must include the target income levels, source of assistance, term of affordability and an evaluation of the likelihood of conversion to market rate.
HOUSING FOR THE HOMELESS
The Plan must describe the services and facilities available to meet the needs of the homeless and chronically homeless. This must include separate mention of emergency shelter, transitional housing, and supportive and non-supportive housing for the homeless. The percentage available to and currently serving the chronically homeless should be estimated.
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SPECIAL NEEDS HOUSING—NON-HOMELESS
The Consolidated Plan must describe services and facilities available to special needs populations who are not homeless. The Plan must also describe services and faculties for those discharged from hospitals and institutions.
BARRIERS TO AFFORDABLE HOUSING
The Plan must describe barriers to the development of affordable housing including the general cost of construction and other public or private factors that may pose a barrier to the development, maintenance or improvement of affordable housing. This includes local tax policy, land use controls, building codes, fees, growth limits or other factors.
STRATEGIC PLAN
The Strategic Plan section of the Consolidated Plan discusses the priority needs of the grantee jurisdiction and the allocation of resources to meet those needs as well as strategies to meet specific HUD-mandated goals.
PRIORITY NEEDS
Staff will need to discuss the general priorities for allocating resources both geographically and amongst activities. Use the tables provided by HUD to summarize priority given to various needs and resources allocated.
A description of the rationale used to determine the allocation of resources with particular attention to distribution across income groups will need to be provided.
OBSTACLES TO MEETING UNDER-SERVED NEEDS
This section should describe any identified obstacles to meeting under -served needs in the grantee jurisdiction.
SPECIFIC OBJECTIVES
Summarize the specific objectives the grantee has for the planning period including resources available and which identified needs will be met. Each objective must include proposed quantified accomplishments for the planning period and measurable outcomes. (See performance measurement guidance from HUD.) Use Tables “1C” and “2C”.
AFFORDABLE HOUSING
Describe the strategy for meeting affordable housing needs by income group and tenure. Discuss the allocation of resources made available for rental assistance, production of new units, rehabilitation, acquisition and preservation. Enumerate the number of households under the plan who will receive assistance by income group. Use Table 2A.
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PUBLIC HOUSING
This section will need to discuss the strategy for meeting the needs of public housing and the needs of public housing residents including homeownership. If the local PHA has been designated as "troubled" by HUD, the grantee must describe the resources it will make available to the PHA.
You should contact your local PHA or HUD Field Representative to determine if the PHA has a "troubled" designation and if so, why.
HOMELESSNESS
Identify and describe the grantee jurisdiction's strategies for the following:
• Helping low-income families avoid/prevent homelessness; • Homeless outreach and needs assessment;
• Meeting emergency shelter and transitional housing needs of the homeless; and • Helping homeless and chronically homeless transition to permanent housing and independent living.
NON-HOMELESS SPECIAL NEEDS
Summarize the priority needs for special needs populations not related to housing and strategy for meeting those needs. Use “Table 1B”.
NON-HOUSING COMMUNITY DEVELOPMENT (CDBG ONLY)
Describe the non -housing community development needs that will be met. These must be provided by CDBG eligibility category. Use Table 2B.
NEIGHBORHOOD REVITALIZATION
This section will need to present any geographically targeted revitalization efforts. This includes any HUD-approved or proposed Neighborhood Revitalization Strategy Areas (NRSAs).
BARRIERS TO AFFORDABLE HOUSING
Describe any barriers to the development of affordable housing including the general cost of construction and other public or private factors that may pose a barrier to the development, maintenance or improvement of affordable housing. This includes local tax policy, land use controls, building codes, fees, growth limits or other factors.
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LEAD HAZARD REDUCTION
The grantee's strategy to reduce lead-based paint poisoning hazards will need to be summarized.
The grantee must discuss how the federal Lead-Safe Housing Rule and local lead hazard reduction strategy will be integrated into the grantee's housing programs.
ANTI-POVERTY
Describe the grantee's strategy to reduce the number of poverty-level families. Describe how the grantee's housing programs will reduce poverty and how they will be coordinated with the other programs and services available to relieve and reduce poverty in the grantee jurisdiction.
GAPS IN INSTITUTIONAL STRUCTURE
Describe the grantee's strategy to reduce gaps in institutional structure that impair the ability to implement the Strategic Plan.
COORDINATION
This section will need to provide a description of the grantee's strategy to enhance coordination between public and assisted housing providers, private and public service agencies in order to implement the Strategic Plan. Homeless coordination must address the needs of the chronically homeless. Community Development coordination should describe coordination with private industry.
ANNUAL ACTION PLAN CONTENTS
The Action Plan discusses the specific activities planned for each year and the resources available.
It implements the Consolidated Plan on a more detailed level. It must be submitted annually and approved by HUD before funds are released. The first- year Action Plan for the Consolidated Planning period is submitted with the Consolidated Plan.
The required elements of the Action Plan and a brief discussion of each follow.
EXECUTIVE SUMMARY
An executive summary of the Action Plan is required. This element should briefly outline the Action Plan and planning process. It must include a summary of objectives and outcomes for the plan year and discuss past performance.
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RESOURCES
Staff needs to provide a summary of all funds that will be available in the year to meet identified needs. These resources may be insufficient to meet needs or in excess of need. This should include all formula grants expected, loan payments and program income, and un-expended prior year funds. Any significant assets or real property that is available should also be discussed.
The availability of funds not directly controlled by the grantee should also be discussed in general.
This would include federal homeless funds (Mc Kinney -Vento) and funding for the local housing authority, especially funds for the Housing Choice Voucher program.
Other funds from all sources should be summarized. These would include reserved Low -Income Housing Tax Credits and other state and local funds and programs.
Where there is a matching requirement or there is significant local support for specific activities or the CDBG program in general, this should be mentioned in this discussion.
The discussion of CDBG funds must include:
• Program income expected to be received in the upcoming plan year. • The amount expected to be generated by and deposited into revolving loan funds in the current plan year.
• The amounts expected to be received by "float-funded" activities in the current plan year and all prior plan years.
• Prior year program income, Section 108 loan proceeds or funds returned to the line-of- credit that have not previously been programmed.
SPECIFIC ANNUAL OBJECTIVES
The Action Plan must summarize the specific objectives and priority needs that will be met during the plan year. This is often done by summarizing the planned activities under each specific objective.
The relationship between a planned activity and specific objective(s) and priority need(s) should be discussed when describing the activity. The priority need and specific objective are also included in HUD "Table 3C - Consolidated Plan Projects". The proposed accomplishments and outcome of the annual activity should be related back to meeting the planned accomplishments and objectives of the Strategic Plan section of the Consolidated Plan.
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DESCRIPTION OF ACTIVITIES
Staff should ensure the Action Plan includes a general narrative description of each planned activity, relate each activity to a priority need and specific objective; and the Action Plan must describe the proposed accomplishments for each. The Action Plan must also estimate the number and type of beneficiaries including income level. A start and completion date must be provided for each activity. Each activity must have an outcome measure associated with it. This information is also included in "Table 3C”.
There are specific requirements for the description of "float -funded" CDBG activities. (A "float - funded" activity is an activity that will re-pay the CDBG grant line of credit in the short-term.)
ALLOCATION PRIORITIES
The Action Plan must explain why certain activities were funded over others and how the levels of funding were determined. If there were any particular obstacles to meeting under -served needs, they should be discussed.
GEOGRAPHIC DISTRIBUTION AND LOW/MODERATE INCOME (LMI) BENEFIT
The Action Plan must show and describe the geographic distribution of planned activities. An estimate of funding directed to target areas should be provided.
The Action Plan must estimate the percentage of annual CDBG funding that will benefit Low/Moderate Income (LMI) persons and households. The specific location of CDBG activities must be identified and shown in relation to LMI areas. For activities that do not have a specific location or where there is a need to maintain secrecy the Action Plan should describe the general location or the general area that will likely benefit. Where there are CDBG-funded activities for which locations have yet to be determined such as business assistance or housing rehabilitation loans the Action Plan must describe who may apply and how recipients will be selected.
The use of funds in Neighborhood Revitalization Strategy Areas or as part of a coordinated effort focused on improving conditions within a specific area should be discussed.
ANNUAL AFFORDABLE HOUSING GOALS
Much as the Strategic Plan section of the Consolidated Plan has five-year goals for housing, the Action Plan must describe the annual goals for homeless, non -homeless and special needs. The number of households assisted via rental assistance, construction, rehabilitation and/or acquisition must be specified.
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HOMELESS
Staff will need to ensure the Action Plan identifies activities that meet the needs of the homeless for emergency shelter and transitional housing or that provide supportive services that prevent homelessness or assist the homeless to be placed in housing or remain in housing. This includes un-related individuals, families with children and the chronically homeless.
SPECIAL NEEDS
HUD requires the Action Plan discuss how activities meet the needs of populations having special needs such as the disabled and persons living with HIV/AIDS.
PUBLIC HOUSING
The Action Plan will need to include a description on how the planned activities will assist the local public housing authority. If the local PHA is "troubled" the Action Plan must describe the efforts the grantee will take to help the PHA remove that designation.
ANTI-POVERTY STRATEGY
A brief discussion on how the planned activities will help to reduce the poverty level in the jurisdiction will need to be provided.
LEAD-BASED PAINT HAZARD REDUCTION
The Action Plan will need to include a section that discusses the extent of lead- based paint hazards and how planned activities will reduce the hazard. If there are specific activities that may have the potential to affect lead-paint hazards these should be discussed. The annual implementation of the grantee' s Lead Hazard Reduction plan should be discussed. Activities that have the potential to disturb lead- based paint should be mentioned and specific efforts or program design elements that reduce lead exposure or abate lead hazards should be described.
"OTHER ACTIONS"
The Action Plan must discuss the following "other actions" the grantee will undertake in the plan year to meet various grant and general HUD grantee requirements.
• Address obstacles to meeting under-served needs
• Foster and maintain affordable housing
• Remove barriers to affordable housing
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• Develop institutional structure
• Enhance coordination between public and private housing, health and social services agencies
• Encourage public housing residents to become more involved in management and participate in homeownership
FAIR HOUSING
There should be a discussion of actions related to the grantee's obligation to affirmatively further fair housing. This should relate to the implementation of the grantee's Analysis of Impediments to Fair Housing Choice. Any changes in the grantee jurisdiction that impact fair housing should be discussed along with any appropriate changes to the grantee' s fair housing program.
MONITORING
This section should describe the policies and practices in place to monitor activities and assure long-term compliance. This includes any specific sub- grant requirements and the administrative requirements of federal funds in general. The monitoring discussion should include plans to assure affordable housing compliance, the timely expenditure of funds, site inspections to determine housing code compliance and on-site sub-recipient monitoring. Labor compliance and the verification of environmental mitigation requirements should also be mentioned.
Grantees should also discuss the local implementation of performance measurements.
CITIZEN PARTICIPATION PLAN CONTENTS
HUD has very specific requirements for how the public is to be informed and involved in the planning process. HUD requires that the grantee spell out exactly how it will meet these requirements by developing and adopting a Citizen Participation Plan as part of the consolidated planning process. This plan only needs to be updated as the practices of the grantee change or as HUD changes requirements for public participation.
There are also certain minimal public participation requirements for the development of the consolidated plan, the annual action plan and the annual performance report.
The minimal public participation requirements for the consolidated plan are buried in the regulations for the citizen participation plan. It is helpful to look at them separate from plan requirements.
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MINIMUM PUBLIC PARTICIPATION REQUIREMENTS
ENCOURAGEMENT OF CITIZEN PARTICIPATION IN GENERAL
HUD wants the grantee to involve those who are most likely to be impacted and therefore potentially benefit from the use of CDBG funds. This includes low- and moderate-income persons and those living in CDBG target areas. HUD "expects" the grantee to encourage the participation of minorities, non-English-speaking persons and disabled persons.
The grantee is required to involve local and regional agencies in plan preparation specifically businesses, developers, and community and faith-based organizations.
HUD encourages the use of "alternative techniques" to involve the public such as internet- based applications and small group consultations.
The grantee is required to make a specific effort to involve residents of public and other forms of assisted housing. This effort is to be coordinated with the local PHA. The grantee should share its plans for planned activities with the PHA.
CITIZEN PARTICIPATION DURING PLAN DEVELOPMENT
At least one public hearing must be held during plan development, prior to publication of the plan. The public hearing should discuss housing and community development needs and proposed activities. Many grantees have two separate hearings, one on needs and one on proposed activities.
Public hearings must have "adequate advance notice”. HUD does not provide a statutory definition but it does state in the regulations that "small print notices ... a few days before the hearing" are not adequate. HUD also offers that it considers two weeks’ prior notice as adequate.
Public hearings must also be held in such a place and at such a time as to facilitate the participation of actual or intended beneficiaries. The grantee must offer accommodations to the disabled and those with limited English proficiency.
Before adoption, the grantee must make available to the public information regarding:
• The amount of assistance expected (new grant funds and income) • The range of activities planned to be undertaken
• The estimated amount planned to be expended to benefit to low- and moderate-income persons.
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The proposed plan must be published to allow time for the public to review and comment. The publication requirement can be met by publishing a summary of the plan in at least one newspaper of general circulation and by making copies of the plan available in local libraries, government offices and public places such as community centers. A "reasonable number" of copies of the plan must be made available free to the public. The summary must at a minimum describe the contents and purpose of the plan and tell the reader where copies of the entire plan may be reviewed. The plan must be made available in a form accessible to persons with disabilities when requested.
The grantee must allow for a public comment period of not less than 30 days.
HUD requires that all public comment be considered during plan development and that a summary of public comment be included in the plan document. The grantee's response to all comments must be documented in the plan. Comments that are not accepted must have the reason they were not accepted included in the plan.
The plan document, related documents and records related to plan development must be made available to the public in a "reasonable and timely manner”.
PLAN AMENDMENTS
During the approved Consolidated Plan period, decisions by the jurisdiction to make changes to certain programmatic items may result in the grantee having to amend its plan. Changes that would require an amendment to the Consolidated Plan include:
• Allocation priority changes or changes to the jurisdictions method of distribution; • A change in activities to be carried out by the jurisdiction that were not originally included in the approved Action Plan; and/or
• Changes to an activity that will affect the purpose, scope, location, or beneficiaries The jurisdiction is required to establish criteria for substantial amendments in the development of their Citizen Participation Plan. The criteria identified will be utilized to determine whether any changes will be considered a substantial amendment. Substantial amendments are subject to citizen participation requirements followed during the preparation of the Consolidated Plan and must follow the jurisdictions Citizen Participation Plan developed in accordance with 24 CFR Part 91 requirements. Substantial amendments require a public comment period and citizens must be provided reasonable notice and an opportunity to comment on amendments. The amended Consolidated Plan or Action Plan will have to be re-adopted by Council.
Upon completion of the amendment and after a comment period, HUD must be notified of amendments to the plan and the jurisdiction is required to submit the amendments to HUD for approval.
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PERFORMANCE REPORTS
The grantee must describe how the public will be afforded an opportunity to comment on performance reports and that those comments will be considered. A summary of the public comments must be attached to the performance report.
PUBLIC HEARINGS
The regulations state the grantee must hold at least two public hearings per year at two different times during the year, with one being conducted prior to the adoption of the Consolidated Plan.
These hearings should address housing and community development needs, proposed activities, and program performance. This section must describe how "adequate advance" notice of public hearings will be given to the public and how the hearings will be held in places and at times convenient to actual and potential beneficiaries . A description of how the needs of non -English speaking persons and people with disabilities will be accommodated needs to be provided.
In practice, most communities conduct one or two public hearings when the consolidated plan and annual Action Plans are being developed and one when the annual report (CAPER) is presented to the governing body.
HUD does not define "adequate advance" notice but it is quite specific in the regulations about inadequate notice, ''Publishing small print notices in the newspaper a few days before hearing does not constitute adequate notice. Although HUD is not specifying the length of notice required, it would consider two weeks [to be] adequate”. [24 CFR 91.1 10 (e)(2)]
PUBLIC ACCESS
Describe how residents will be provided with "reasonable and timely" access to meetings and to public records related to the use of CDBG funds for the preceding 5 years. Identify the steps taken to assure the Consolidated Plan, amendments and performance reports will be made available, and how they will be made available in a form accessible to the disabled.
HUD does expect the public will have relatively easy access to the grantee's records. Many grantees maintain one or more public information binders that are available in public places or on request. Availability on the grantee's website in electronic form is also generally expected.
TECHNICAL ASSISTANCE
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groups or persons who wish to develop proposals for the use of grant funds.
COMPLAINTS
A brief description must be provided on how the grantee will handle complaints and deliver a written response in "timely and substantive" manner.
HUD expects CDBG grantees to respond to complaints within 1 5 working days. It is not specific with other types of grantees.
Moreover, the Citizen Participation Plan must require that the grantee follow the plan. It must commit the grantee to meeting the requirements of the Plan and be adopted as official policy and practice of the grantee jurisdiction.
CITIZEN COMMENT ON THE CITIZEN PARTICIPATION PLAN
The Citizen Participation Plan document must be made available for public review and comment before it is adopted and if it is ever amended. If you take the Citizen Participation Plan through the same review process as the Consolidated Plan you will meet the review requirements.
THE CONSOLIDATED PLANNING PROCESS
CONSULTATION
As mentioned in the previous section, HUD requires the grantee to consult with certain agencies when preparing the plan. These consultations are both general and specific to certain topics.
What HUD means by "consultation" are meaningful interactions with these agencies that result in "collaboration and collective problem-solving”. HUD wants the grantee to develop, "partnerships among government agencies and between government and private groups ...[that]...marshal government and private resources to achieve intended public purposes”.
HUD wants the plan to be a comprehensive document that reports on the needs of the community. The assumption is that the grantee does not have a sufficient breadth or depth of knowledge to represent the complete needs of the community.
GENERAL CONSULTATION
In preparation of the plan in genera l, the grantee must consult with public and private agencie s that provide:
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• Assisted housing
• Health services
• Social services
• Fair housing services
HUD also requires that among those agencies, ones that focus on meeting the needs of certain specific groups be consulted. These groups are:
• Children
• Elderly persons
• Persons with disabilities
• Persons with HIV/AIDS and their families
• Homeless persons
Adjacent units of local government should be consulted. In particular, agencies having planning areas that cross local jurisdictional boundaries or concern regional matters (e.g., transportation, air quality) should be consulted.
HOMELESS
In preparation of the section on homeless needs, the grantee must consult with public and private agencies that provide assisted housing, health services and social services to determine what resources are available to meet the needs of the chronically homeless.
LEAD-BASED PAINT HAZARDS
In preparation of the section on lead-based paint hazards the grantee must consult with state or local health and child welfare agencies regarding the degree of lead -based paint hazard to children in the community. The grantee must also consider data on lead hazards and actual cases of childhood lead poisoning in the community including residential locations of cases believed to be related to lead-paint poisoning.
NON-HOUSING COMMUNITY DEVELOPMENT
The regulations require that adjacent units of general local government be notified that the grantee is preparing a consolidated plan and that the non-housing community development plan be submitted to the state and the local county. Providing notification to these agencies along with the public is usually sufficient to meet this requirement.
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PUBLIC HOUSING
The grantee shall consult with the local public housing agency (PHA). In most cases this will be the local housing authority, the agency that implements federal housing programs. HUD requires consultation regarding "public housing needs and planned programs and activities”.
This consultation is relatively meaningful in preparation of the plan as one of the required plan certifications is that the PHA plan is consistent with the consolidated plan. The Consolidated Plan must also describe how the grantee will meet the needs of the local PHA, and if it is a "troubled PHA" how the grantee will assist the agency. HUD also expects that the grantee and the PHA will coordinate efforts to address common needs.
If a PHA is under a Section 504 Voluntary Compliance Agreement with HUD, the grantee should identify how it will assist the PHA with compliance, if the grantee is planning to assist the PHA.
CDBG funds can be used to assist the PHA with accessibility requirements if the PHA is under a compliance agreement and needs are discussed in the plan. 203
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3. ACTIVITY SELECTION
OVERVIEW
When working with the Community Development Block program, there are several steps to consider when selecting an activity to fund. This section of the manual will guide staff through those steps in a manner and order that are efficient and effective.
CATEGORICAL ANNUAL SPENDING LIMITS
When determining the activities to be funded and planning for the use of CDBG funds the two major categorical limits on the use of CDBG funds must be considered – public services and administration.
PUBLIC SERVICES
In any program year, the grantee may not "obligate" more than 15% of the current year's entitlement and 15% of the previous year's program income to public service activities [570.201(e)].
It is important to understand the term "obligation”. This means that no more than the public services cap can be allocated to public services activities or otherwise committed each year. It is
Current
Program Year
Award (or
Anticipated
Award)
Prior Year
Program
Income
Total Public
Services Cap
"Basis"
Total Public
Services Cap
"Basis"
15%
Maximum
Annual
Obligation for
Public Services
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also important to realize that the cap amount is re-calculated each year, and if all funds obligated to public services are not expended within the program year, the remaining obligated but unexpended funds are not available to obligate in subsequent years. This scenario is often referred to as "use-it-or-lose-it”.
ADMINISTRATION
The limit on planning and administrative activities [570.205 and 570.206] is similar to public services with the exception that it is calculated at 20% and uses the current year award and current year program income. [570.200(g)]
The annual cap on planning and admin is also a "use-it-or-lose-it" scenario. It is recommended to over-allocate staffing and overhead costs to the CDBG program (assuming that they are accurate and reasonable) and back them out at the end of the year. Otherwise a grantee will not be able to take advantage of the provision to use 20% of program income.
Note: Re-Payments of principal and interest that go into a Revolving Loan Fund are NOT included in the calculation of the annual caps for public services or planning and administration. Interest on RLF balances or other “advances of federal funds” are also not program income. Such interest must be remitted to the U.S. Treasury.
Current
Program Year
Award (or
Anticipated
Award)
Current Year
Program
Income
Total Planning
and
Administration
Cap "Basis"
Total Planning
and
Administration
Cap "Basis"
20%
Maximum
Annual
Obligation for
Planning and
Administration
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PROPOSALS
The first step is to solicit proposals for the use of CDBG funds. This process occurs as part of the annual planning process discussed more fully in the annual Action Plan section. There are several ways that proposals can be generated and typically several are used in the same planning process.
There is no process or limit required by HUD other than the public must be involved in determining the use of funds as described in the Citizen Participation portion of the manual.
City staff is often consulted to determine if there are city projects appropriate for CDBG funding.
City staff should also internally determine how much funding will be needed for administrative and planning purposes.
An external request for proposals (commonly referred to RFPs) can be made of specific organizations who serve the community or be targeted at certain types of organizations that provide services or can undertake projects that would meet high pri ority needs. A request for proposals has the flexibility to solicit only a select type of services or can request a broad range of CDBG-eligible services and projects.
THRESHOLD CRITERIA
There are several "threshold criteria" against which any proposed CDBG activity should be evaluated. These are:
• statutory eligibility
• national objective
• overall low-to-moderate-income benefit
• non-supplanting
• priority need
• eligible means
Every activity must also comply with HUD environmental review requirements.
STATUTORY ELIGIBILITY
A proposed activity must fit within the activities described in the CDBG regulations at 24 CFR 570.201 through 570.206. They may not be among those described in 24 CFR 570.207 as "specifically ineligible" even if they otherwise appear to be eligible.
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There are six broad categories of eligible activities:
• "Basic eligible activities" (570.201)
• "Rehabilitation and Preservation" (570.202)
• "Special Community Development" (570.203)
• "Special Community Based Development Organizations (CBDO) " (570.204)
• "Planning, design and capacity-building" (570.205)
• "Program Administration" (570.206)
If an activity is being considered that does not fit within the description of eligible activities, it cannot be considered to be eligible. If grantee is uncertain as to the eligibility of an activity staff should consult the local HUD Field Representative as mentioned earlier in the manual. Once discussions are held and a result is produced, staff should document the determination in writing in the form of a formal request for or statement of determination of eligibility.
Another general rule of eligibility is that an activity should be qualified as eligible under the sub- section that it best fits. If there is more than one possibility, the most accurate and common - sense possibility should be used.
Staff should examine the eligibility of each activity within the context of the specific sub -section under which it is eligible - planning under the terms of 570.205, public services under 570.201(c), etc.
The section regarding specifically -ineligible activities describes three categories of activities for which CDBG may not be used:
• Buildings used for the general conduct of government
• General government expenses (except eligible direct planning and admin and indirect costs allowed under federal rules)
• Political activities
The regulations also provide guidance on several categories of activities that are only eligible under specific circumstances or when carried out by specific entities such as:
• Purchase of equipment, furnishings and personal property • Operating and maintenance expenses
• Construction of new housing
• Income payments
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MEETING A NATIONAL OBJECTIVE
The proposed activity must be able to meet one of the three National Objectives. In review, these are:
• Primarily benefiting low-and moderate-income persons
• Preventing or eliminating blight
• Addressing an urgent need
See the section "Meeting a National Objective" and the CDBG "Desk Guide" for a more detailed description and discussion of National Objectives. The activity should be reviewed in light of its ability to meet the proposed National Objective.
It is rare that an activity will be proposed that would meet a National Objective other than that of "primarily benefitting low- and moderate-income persons”. This objective is also known as the "LMI Benefit”.
In the case of meeting the "LMI benefit" National Objective, special attention should be paid to the match between type of activity and the way that the LMI benefit test is met. If the proposal includes a method for determining and documenting LMI benefit, the method should be evaluated for its appropriateness to the particular LMI benefit test being applied and the general efficacy of the method in regard to practice and documentation of results.
Activities that have an area benefit should have the determination of service area and the determination of that area as a low-to-moderate-income area documented in the file.
OVERALL LMI BENEFIT
The activity should be evaluated for its potential impact on the requirement that not less than 70% of aggregate CDBG expenditures benefit low-to-moderate-income persons.
In general, it is best to only select activities that will or are likely to primarily benefit low -to- moderate-income persons/households. This allows some flexibility should the documentation of income benefit be faulty.
PRIORITY NEED
The activity must meet a priority need identified in the Consolidated Plan. This is why it is important that the Consolidated Plan be comprehensive and broadly define community needs.
The activity does not need to meet a high priority need to be selected. If it is meeting a need 208
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identified as low priority, it is recommended internal discussion be held amongst staff to why it has/should be selected.
If an activity that meets a lower priority need is selected over one that meets a higher priority need the reasons should be clearly documented.
MEANS OF CARRYING OUT THE ACTIVITY
CDBG activities may only be carried out by the following types of entities:
• grantee using grantee employees
• grantee through contractors
• loans or grants to sub-recipients
• public agency
• qualified Community-Based Development Organization (CBDO)
In the last three instances, the entities are acting as sub- grantees. Any entity can act as a contractor, but only certain entities can be sub-grantees.
The use of contractors must be done following federal procurement rules. The selection of a sub- recipient, a public agency or a CBDO (acting as a sub-grantee) does not need to follow procurement rules but should nonetheless be deliberate, fair and transparent. The use of contractors by any type of sub-grantee must' be done following federal procurement rules.
RANKING CRITERIA
In addition to the threshold criteria, each proposed use of funds should be ranked on the quality of the proposal, the feasibility of the proposed project and how well it meets the identified needs of the grantee community.
CAPACITY
The proposed activity should be measured against the capacity of the proposer. The proposer should have a successful background in similar projects of similar scale. If not, how does the proposer plan to create capacity? Review the proposer's level of staff with the skills and experience appropriate to the activity.
In addition to the capacity to undertake the proposed activity, does the proposer have the capacity to meet the administrative requirements of the CDBG program? Verify they can adequately document income eligibility, maintain records, and provide accurate reports in a timely manner.
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A sub-grantee must also have some financial capacity to provide services and meet the administrative requirements of the CDBG grant independent of the grant itself. Does the proposer have other resources?
The proposer should have an organizational structure that assures integrity and internal controls.
Is there an independent governing board? Staff should request and be able to review audited financial statements of the proposer.
Finally, the quality of the proposal document and its attachments is revealing as to capacity. Are the proposal requirements accurately and completely met? Are the questions answered? Is the document neat and legible? Does it reflect an organization that will take a sub- award of federal funds with the gravity it should?
SCOPE AND BUDGET
Analyze if the scope of the project is reasonable to accomplish within the CDBG program and within the proposed budget. The scope should be complete in light of the proposed accomplishments.
Verify the budget is complete and it considers all reasonable costs. Review the income assumptions and all funding sources for levels of security.
COST/BENEFIT
Evaluate the potential impact the project will have on the community on a priority need against the overall cost of the project. It is helpful to break down the cost per accomplishment unit. It should be noted that different types of projects will have widely different unit costs.
TIMELINESS
HUD regulations require CDBG funds must be used in a timely manner. The balance of funds at the end of the program year may not exceed 1.50 times the most recent annual entitlement amount. In the case of public services, the annual limit (15%) does not rollover. Public services projects that do not use funds in a timely manner will impact the overall ability of local CDBG program to fund other public services. It is recommended that all projects have a time limit after which funds may be re-allocated.
The proposal should be evaluated for how likely it is that funds will be used in the time required. 210
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The proposal should include a schedule for when the project will hit performance milestones and when it will be complete. The proposed schedules should meet deadlines and be realistic.
TRACK RECORD
If the proposer has performed a similar project for the requesting grantee before, how did they do? When applicable, staff should consider previous experience when selecting a proposer.
If they have not done a similar project, have they done other projects for the grantee or similar projects for other grantees/entitlement jurisdictions? How did they do? Ask for references and call them.
LEVERAGE
Analyze how many other sources are being used to fund the project and/or support the proposing agency. Grantees should look for proposals that leverage additional funding sources. When other funding sources are being leveraged, it is recommended staff determine if the outside funds are secure or unsecured.
GENERAL POLICIES
Grantees should also be aware that there are several "special policies" in the regulations that apply to certain uses of CDBG funds. These are:
• 570.200(b) special policies governing facilities
• 570.200(c) special assessments under the CDBG program • 570.200(d) consultant activities
• 570.200(j) faith-based activities
570.200(e) lists certain categories of activities that must have a written determination of eligibility made and retained in the file. These local determinations must be documented and retained. It is, however, good practice to do this for all activities.
CDBG PROGRAM GOALS
In the Consolidated Plan and Annual Action Plan grantees are required to tell HUD how they will meet several overall CDBG program goals. The program goals are developed to help address the following needs:
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• Affordable housing goals including homeless and special needs • Homeless needs including shelter, transitional housing and services • Special needs populations including the disabled and persons with AIDS • Public housing
• Anti-poverty
• Lead-based paint hazard reduction
• Fair housing
Action Plans that do not address these needs, especially fair housing and homelessness, may b e questioned by HUD.
PUBLIC SERVICES "NON-SUPPLANTING" RULE
A public service funded by CDBG must be "either a new service or a quantifiable increase in an existing service”. This is known as the "non-supplanting" rule. [570.201(e)] The idea is that CDBG funds should enhance or increase the level of local services provided to low -and-moderate income persons and not provide budgetary relief to local governments. Federal CDBG funds should not "supplant" local funds.
This rule applies to services that "have been provided by or on behalf of" the grantee using local or state funds. The grantee may not use CDBG funds to "supplant" an allocation of funds or a commitment to provide services that implies an a/location of funds that has been made in the 12 months preceding the submission of the Action Plan.
The grantee may be given an exception to this rule if HUD determines that the decrease in the level of service being made up using CDBG is "the result of events not within the control" of the grantee.
REQUEST FOR PROPOSALS (RFP) CONTENTS AND PROPOSAL REQUIREMENTS
When making a formal request for proposals, also known as an RFP, it is critical that submitted proposals have all the information required to make a decision. It is also important to have standardized responses to facilitate comparison of proposals.
The request for proposals should include:
• Community and program background
• When, where, and to whom the proposal should be submitted • Who to contact with questions
• Available funds
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• Eligible use of funds
• Contracting requirements
• Conditions of funding (e.g., contracting requirements, insurance, monitoring, labor compliance)
• Proposal process timeline
• Evaluation criteria
• When and by whom award decisions will be made
• Number of copies, binding, certifications and attachments • Proposal contents checklist (forms and attachments)
• Instructions for any required forms
The proposal requirements should
include:
• General information on the applicant and proposal
• General description of the proposed project
o Location
o Statement of need and how project will meet that need o Beneficiaries (type, location, and number)
• Proposed accomplishments
o Total persons/households
o LMI persons/households
• Method to assure eligibility of beneficiaries
• Performance schedule with milestones
• Discussion of any similar programs or projects
• Performance measurement
• Organizational structure
o General description of organization
o Governing structure and board members
o Evidence of incorporation and tax status/public benefit status o Articles of incorporation/bylaws
• Relevant experience
• Staffing
• Partners or co-applicants
• Budget (program and agency)
• Current financial statements
• Audited financial statements (if audited)
• Leverage
• Evidence of insurability
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• Governing board authorization to apply and contract if awarded • Federal lobbying disclosure (SF-LLL)
• Conflict of interest certification (Byrd amendment)
RFP PROCESS
The RFP process begins with publication of the RFP and ends with the award of funds. The steps in between vary somewhat by grantee. What follows are a general description and a suggested process.
PREPARATION
Well in advance of the date when allocation and award decisions need to be made, preparation for the RFP begins. The first step is the schedule . Although it will likely follow the same general schedule from year to year, actual dales may need to be adjusted to accommodate holidays and governing board and/or committee calendars.
The means of publication and distribution should also be decided. If mailing and or e-mailing will be done, a list of addresses should be prepared. There is often interest in the CDBG program expressed throughout the year. A list of interested agencies and persons should be maintained year-round in anticipation of the annual planning process.
The RFP documents need to be prepared. This includes notices, the RFP itself, RFP forms, evaluation/ranking forms, governing board and/or committee report templates, award/deny letters and a record-keeping system.
PUBLICATION
The RFP may be widely publicized or narrowly targeted. Many grantees include a notice of RFP in the annual planning notice for CDBG that meets the public participation requirements of the Action Plan. A notice and the RFP itself are commonly sent to recent recipients and previous applicants.
There is no HUD requirement for publication when using sub-grantees. In the case of contractors, formal procurement rules must be followed.
Grantees often publicize the RFP on their website and make RFP materials available via the web.
WORKSHOP AND Q&A
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After the RFP is published, it is recommended the grantee hold a workshop/conference for prospective proposers. This serves several purposes including increasing the likelihood of receiving quality applications, reducing the number of errors, fulfilling the obligation to provide technical assistance to non-profits, and to get an understanding of the interested organizations.
It is important to be available for and to respond promptly to questions regarding the request for proposals. Occasionally an applicant will spot an error in the RFP or have a question that would pertain to the request in general. When this occurs, it is important to publish a correction, revision or clarification immediately, so all interested applicants have equal access to any new information.
If a correction to the RFP needs to be made after proposals have already been received, applicants should be given adequate time to revise in light of the correction. If you are aware of pending applications, it is recommended the applicants be contacted immediately and in person.
The correction should be publicized by the same means the RFP was publicized.
Grantees may decide whether or not to accept draft proposals for review and guidance. If this process is elected, it is recommended a deadline be posted for early submission.
SUBMISSION
The proposal should have clear instructions regarding to whom, where, when and how to submit.
Instructions should be given for delivery by USPS, courier or other acceptable means. If electronic submissions are acceptable the format should be specified.
The location for submission should be accessible and the hours noted. There should be a means of assuring that proposal submissions are logged, the proposal is date -stamped and there is a process for acknowledging submission.
EVALUATION AND RECOMMENDATIONS
Each proposal should be carefully evaluated. The first step in the evaluation should be to determine if the application is complete. The grantee should have an established policy in place to address incomplete applications. Generally, a proposal is accepted if it is "substantially complete”. Rejecting a proposal for a minor omission or error might be perceived as punitive and potentially exclusive.
If a proposal is incomplete or contains an obvious error the applicant should be notified immediately and may be given a deadline to provide the missing component or documentation.
The next step is a cursory review of the application. If there is anything unclear in the application, 215
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this is the point at which the applicant should have the opportunity to clarify.
The final step is the complete evaluation and ranking of the proposals.
Once proposals have been evaluated and ranked a summary should be prepared for the decision- makers/review committee. This should summarize the proposal and how it aligns with the RFP criteria
AWARDS
Once decisions are made regarding the award of funds, each applicant should be formally notified in writing in a timely manner.
DOCUMENTATION
The entire proposal and decision-making process should be carefully and completely documented. Complete written records should be retained including original submissions and all records of applicant contact and decision-making. These records should be retained in the annual CDBG file.
4. CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) OVERVIEW This section will deliver a brief, yet detailed summary of the process and requirements tied to the annual performance report required from each jurisdiction that receives funds under a Consolidated Plan program. This yearly report is known by HUD as the "Consolidated Annual Performance and Evaluation Report" or by another commonly used acronym, CAPER.
This report must be submitted to HUD within 90 days of the close date of the grantee's program year. For most jurisdictions (those on a July l-June 30 program year) this will be September 30 of each year.
HUD is required to review the CAPER and may suspend funding if "a satisfactory report is not submitted in a timely manner”. There is no statutory review period, and it is not uncommon for HUD to lag on getting review letters out by six months or more.
The regulations specify certain contents in the CAPER but provide grantees with little guidance.
Over the years, HUD has provided some guidance on form and content. At this time, the guidance has not found its way into the regulations, nor is it available in a formal guidebook. It is however available on HUD's website www.hud.gov. It has been consolidated and appended to this manual.
Beginning in May 2012, HUD grantees will be able to submit their Consolidated Plan using the 216
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Consolidated Plan template in IDIS Online. The Consolidated Plan template will be required for all Consolidated Plans submitted on or after November 15, 2012.
With the incorporation of the Consolidated Plan and Annual Action Plan into IDIS Online, all key elements of the grants management cycle are integrated into a single system. This will ensure consistency among the goals described in the Consolidated Plan and Action Plan and the outcomes tracked in IDIS and reported in the Consolidated Annual Performance and Evaluation Report (CAPER), making the Consolidated Plan a more useful management tool.
• Many of the data tables within the Consolidated Plan template are pre -populated with the most up -to-date housing and economic data available. The data is provided to help grantees develop their funding priorities in the Strategic Plan and save time in searching out, entering and compiling the data.
• The Consolidated Plan template is integrated with the CPD Maps tool. Together, the maps and data can help grantees to assess market conditions in many different ways, and to present this information in a clear and compelling fashion. o The data that pre-populates tables in the template comes from the CPD Maps database, ensuring consistency between the data grantees use to make planning decisions and data that is available to the public.
o Grantees can also insert maps and data tables from CPD Maps throughout the document.
CAPER CONTENTS
The CAPER has several sections of requirements:
• General
• Affordable Housing
• CDBG
• Home Investment Partnership Program (HOME)
• Housing Opportunities for Persons with AIDS (HOPWA)
The general and affordable housing sections must be provided by all grantees despite the source of federal funds received. The other sections only apply to recipients of those respective funding sources. This manual will only discuss the CAPER requirements for CDBG grantees:
Although the regulations call for a report "in a form prescribed by HUD", there is no specified form for the CAPER. (The Consolidated Plan Management Process tool does provide an optional form.)
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GENERAL
The CAPER must discuss the following:
1. Resources made available in the report year
2. The investment of available resources
3. The geographic distribution and location of investments
4. The persons assisted
5. Actions taken to affirmatively further fair housing
6. Other actions taken by the grantee
7. Affordable Housing
8. Assessment of Three to Five Year Goals and Objectives
9. Continuum of Care (Homeless)
10. Leveraging Resources
11. Citizen Comments
12. Self-Evaluation
13. Performance Measurement
CDBG
Recipients of CDBG must discuss the following in their CAPER:
1. How the undertaken activities and persons/households benefitted related to the priority needs and specific objectives identified in the Consolidated Plan
2. Any changes in program objectives during the report year and future changes that may be made as the result of experiences during the report year
3. Compliance with Consolidated Plan certifications
4. Compliance with National Objectives and overall low- and moderate-income household benefits
5. Anti-displacement efforts (if report year activities involved acquisition, demolition or rehabilitation of real property)
6. Low- and moderate-income jobs (if report year activities involved Community Development)
7. Limited clientele benefit activities/beneficiaries
8. Rehabilitation
9. Activities in Neighborhood Revitalization Strategy Areas and Enterprise Zones/Empowerment Communities
CAPER OUTLINE
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As stated earlier, there is no specified form for the CAPER. HUD has provided an optional form as part of the Consolidated Plan Management Process (CPMP) tool and has also suggested that the CAPER follow the format of the "CAPER Checklist”. It is suggested the grantee utilize the following outline for the CDBG CAPER:
• Introduction
• General Narratives
o Highlights of Accomplishments
o Summary of Accomplishments
Table: Progress Meeting 3-5 Year Goals
Housing Activities
Infrastructure and Public Facilities
Public Services
Planning and Administration
Non-CDBG Housing Activities
o Geographic Distribution of Activities
o Progress Meeting Consolidated Plan Goals and Priority Needs o Actions Taken to Affirmatively Further Fair Housing
o Affordable Housing
o Continuum of Care
o Other Actions
Address Obstacles to Meeting Under-served Needs
Foster, Maintain and Eliminate Barriers to Affordable Housing Overcoming Gaps in the Institutional Structure and Enhancing Coordination Public Housing Needs
Reduction of Lead-Based Paint Hazards
Actions Taken to Assure Compliance
Anti-Poverty Strategy
o Leveraging
o Citizen Participation
o Self-Evaluation
o Plan Amendments
o Implementation of Performance Measurement
• CDBG-specific Narratives
o Priority Needs and Specific Objectives
o Changes in Program Objectives
o Compliance with Consolidated Plan Certifications
o Compliance with National Objectives and Overall Low-Mod Benefit o Limited Clientele Benefit
o Anti-displacement efforts
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o Low-mod Income Jobs
o Rehabilitation
o Neighborhood Revitalization Strategy Areas and Enterprise Zones/Empowerment Communities
o Program Income
• Appendices
o Evidence of Public Notice
o Public Comment
o Evidence of Submission to Governing Body
o IDIS Reports
THE CAPER AND INFORMATION DISBURSEMENT AND INFORMATION SYSTEM (IDIS)
In addition to providing HUD with a written CAPER submission, grantees must report annual accomplishments on -line via the Integrated Disbursement and Information System, which is commonly referred to as IDIS. Although the statutory deadline of 90 days after the end of the program year does not technically apply to IDIS reporting, HUD has made it clear that reporting in the Integrated Disbursement and Information System in a timely manner is an obligation of the grantee, including year -end reporting. IDIS will also not allow the reporting of prior year expenditures more than 90 days after the end of the program year.
IDIS reports must be submitted to HUD along with the CAPER narrative report. The required reports are:
All grantees
• Summary of Accomplishments Report (PR23)
• Consolidated Annual Performance and Evaluation Report (PR06) • Consolidated Plan Projects for Program Year (PR73)
CDBG grantees
• Financial Summary Report (PR26)
• Summary of Activities (PR03)
• Rehabilitation Activities (PR1O)
There are also reports that provide useful information for the CAPER and that should be pulled and retained as part of the CAPER file. These are:
• HUD Grants and Program Income (PRO1)
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• List of Activities by Program Year and Project (PR02) • Grantee Summary Activity Report (PRO8)
• Drawdown Report by Voucher Number (PR07)
• CDBG Timeliness Report (PR56)
HUD also provides CDBG "Data Clean-up" worksheets that are helpful to find out where accomplishment or other essential information is missing. They can be found at http://www.hud.gov/offices/cpd/communitydevelopment/cleanup/index.cfm.
CAPER AND CITIZEN PARTICIPATION [24 CFR 91.105(D)]
The section on Citizen Participation discusses the general requirements in greater detail. The grantee's adopted Citizen Participation Plan will outline the particular process the jurisdiction has decided to follow.
The grantee does need to provide an opportunity for public review of the CAPER and allow for a public comment period of at least 15 days. Any comments received by the grantee must receive a response from the grantee. A summary of the comments and the responses must be submitted with the CAPER.
Grantees are required to hold two public hearings each year. Submitting the CAPER to the City Council and holding a public hearing is a convenient way to meet this requirement.
A GUIDE TO HUD GUIDANCE ON THE CAPER
HUD has issued guidance regarding the CAPER over the years. The most current "set" of materials is always available on their website. It is not always easy to navigate for the novice. It has been assembled and appended to this manual.
The most comprehensive current guidance is a 21 -page document posted on the HUD website titled "Guide for Consolidated Plan Performance Report Narratives”. In February 1998 HUD sent out a formal memorandum, "Consolidated Annual Performance and Evaluation Reporting for Entitlement Grantees for 1997 Program Year”. This guidance overlaps the previous guidance. It also requires grantees to use IDIS and specifies the IDIS reports that must be included in the CAPER submitted to HUD.
Additionally, in 2003, the San Francisco CPD Office published a memo (CPD 04 -16) that offered guidance on the CAPER based on common problems the field office was encountering.
Then on March 7, 2006, HUD published implementing rules in the Federal Register that required all CAPERs submitted after 10/01/06 to include a discussion of the implementation of performance measures and discuss the program year activities using the performance 221
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5. SUB-RECIPIENT MANAGEMENT
OVERVIEW
One way of implementing the local CDBG program is through the use of sub- recipients. This section will provide an overview of identifying, selecting, and monitoring a CDBG sub-recipient.
Simply, sub -recipients are sub -grantees of the CDBG grantee. The term sub -recipient has a specific meaning in the CDBG regulations. More specifically, a sub-recipient must be a non-profit public benefit corporation or a public agency. A sub-recipient agreement should be used to pass CDBG requirements to the sub- recipient. The management and oversight of sub- recipients is a critical task of the entitlement jurisdiction. Using a sub -recipient to i mplement the local CDBG program does not relieve the original grantee of its responsibilities under CDBG and other federal rules and regulations.
REPORTING REQUIREMENTS
The grantee should establish reporting requirements for the sub-recipient throughout the project term. Sub -recipients should be required to submit quarterly progress reports to the grantee jurisdiction reporting on funding activity, milestones reached in accordance with the project schedule, and accomplishments.
It is the sole responsibility of the grantee jurisdiction to conduct any sub- recipient audits or reviews necessary by federal rules and regulations. The entitlement jurisdiction is responsible for the preparation of the Consolidated Plan, Annual Action Plan, and Consolidated Annual Performance and Evaluation Report (CAPER) using the information collected through any sub - recipient reporting requirements established.
MONITORING
It is the responsibility of the grantee to monitor sub- recipients for performance and program compliance. To accomplish this, grantees will have to develop and implement a monitoring strategy. Sub-recipients need to be monitored to ensure activities are being carried out in a timely manner, in accordance with federal and other regulations, to ensure productivity, and to ensure that the sub-recipient continues to have the capacity to administer the project or program successfully. Sub-recipients can be monitored through desk reviews or on-site reviews.
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DESK REVIEWS
Desk monitoring is a key component of monitoring a sub -recipient's performance on a regular basis without conducting an on-site review. Desk monitoring includes the review of:
• Progress reports;
• Compliance reports;
• Financial information;
• Information and material submitted from the sub-recipient regarding the funded- grantee.
Desk monitoring is an efficient and effective way to gather additional information regarding an y questions, concerns or identified potential problem areas without having to spend staff time with on-site visits. However, on-site visits may be performed because of desk monitoring findings.
ON-SITE REVIEWS
An on-site review allows the jurisdiction to monitor sub- recipient performance and make sure that record retention requirements are being followed. It also allows for the jurisdiction to identify and address areas of concern with property or sub-recipient facilities. On-site monitoring can include the review of:
• Progress reports;
• Labor standards documentation;
• Requests for payments;
• Bid documents;
• Contract agreements;
• Facilities and projects sites; and
• Other project-related documentation.
Jurisdictions should also conduct project-specific monitoring and should monitor project schedule, accomplishments, and compliance with National Objectives (see Appendix for sampl e monitoring checklist).
It is recommended that the grantee monitoring schedule allow for all sub- recipients to be monitored once a year. With limited staffing, this is not always possible. In general, sub-recipients who have received funding for the first time should be monitored in the first year. Sub-recipients who have had a history of "clean" monitoring visits and are usually found to be in compliance of the regulations are candidates for less frequent monitoring. Reports and progress should be regularly reviewed throughout the program year for signs of non-compliance or difficulty making progress.
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Sub-recipients who consistently provide complete, well-organized reports, adhere to performance goals and schedules, expend funds in a timely manner and have a history of compliance are can be candidates for desk review.
Sub-recipients who show the following signs of "distress" should be monitored more closely and more frequently:
• Incomplete, incorrect, or late beneficiary reports;
• Incomplete, incorrect, or late disbursement requests; and/or • Falling short of goals or performance timelines.
Sub-recipients who exhibit these "symptoms" may require immediate intervention:
• Expenditure of funds on other than the approved scope of work; • Failure or refusal to document Low- and moderate-income household benefit; and/or • Failure to make progress and/or request funds more than 6 months after award of funds.
TECHNICAL ASSISTANCE/CAPACITY DEVELOPMENT
Monitoring a sub -recipient is an opportunity to identify any concerns or capacity issues. It also provides an opportunity to offer the sub -recipient technical assistance. Technical assistance should be on-going throughout the project term and include various techniques exercised by the grantee.
To assist in limiting inadequate performance of sub- recipients and to help build capacity, it is recommended the grantee implement occasional orientation sessions and/or application workshops. This type of technical assistance is typically held at the beginning of a funding cycle.
A grantee jurisdiction may want to provide technical assistance on a more one -on-one basis rather than in a workshop setting aimed at a larger audience. Meeting with a sub- recipient individually can provide the opportunity for the entitleme nt jurisdiction to work with the sub - recipient on specific weaknesses or to improve performance regarding a particular project underway. It is common for jurisdictions to utilize staff time efficiently and provide such technical assistance in conjunction with a monitoring visit.
MANAGING NON-PERFORMING SUB-RECIPIENTS
When performance problems arise with sub -recipients, it is the responsibility of the grantee to take corrective action. The type and degree of the corrective action will vary with the extent of the problem. It is recommended that any corrective action be measured, incremental, 225
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documented and with the goal of guiding the sub- recipient back into compliance. Corrective actions a grantee jurisdiction may consider include:
• A letter advising the recipient of deficiencies or performance issues requiring them to correct any unresolved issues;
• Provide technical assistance or training to assist in resolving issues; • Implement more reporting requirements the sub-recipient must meet; • Conduct more frequent monitoring visits;
• Restrict payment requests;
• Disallow specific expenses; and/or
• Implement a probationary status.
More serious corrective actions that could be implemented as a result of unresolved issues or continuous poor performance include:
• Suspending the sub-recipient from participation in the program; • Terminating the sub-recipient agreement or re-capturing funds; and/or • Legal action if necessary.
FORMS
Standard forms may be required by the grantee from the sub -recipient to ensure compliance with HUD requirements. The grantee can create their own forms for application, payment, and reporting purposes. Grantees should always have a sub -recipient agreement or contract as a standard form to be signed by both parties. However, if a sub-recipient agreement or contract is in effect, this does not relieve the grantee from complying with HUD requirements and ensuring that the sub -recipient also stays in compliance. Other standard forms that may be provided to the sub-recipient to submit to the grantee include:
• Application forms;
• Requests for Payments;
• Progress Report forms;
• Monitoring forms; and
• Project close-out forms.
RESOURCES
HUD has published several useful guidebooks on sub-recipient management. These are available on the web at http://www.hud.gov/offices/cpd/communitydevelopment/library/subrecipient/.
They are the following:
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• "Managing CDBG: A Guidebook for Grantees on Sub-Recipient Oversight" • "Playing by the Rules: A Handbook for CDBG Sub-recipients on Administrative Systems" • "Training CDBG Sub-recipients in Administrative Systems"
The "Playing by the Rules" handbook is particularly useful. Sections of the book and the entire publication are often given to sub-recipients.
6. PERFORMANCE MEASURES
OVERVIEW
This section of the manual will provide a summary of the grantee's requirements to implement a local performance measurement system. This system should serve as a tool to allow the grantee to collect data, track progress, and report on results in a way that demonstrates the impact of the CDBG program on the community. The performance measurement system should provide the grantee with specific beneficiary data and help to determine how well a program is performing in the community and if the program is meeting proposed goals.
The implementation of the outcome performance measurement system and its use by grantee s will enable HUD to collect information on the outcomes of activities funded with Community and Planning Development formula grant assistance. This data will be entered into the Integrated Disbursement and Information System (IDIS) and will be aggregated at the national level to provide HUD with the information necessary to show the national results and benefits of the expenditure of federal CDBG funds.
HUD has issued guidance on the required components of a local performance measurement system with the goal of providing standardized performance data to the federal government.
HUD's performance measurement web page is at
http://www.hud.gov/offices/cpd/about/performance/.
The three components of a performance measurement system are
1. Objectives;
2. Outcomes; and
3. Indicators.
OBJECTIVES
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Objectives are based on the statutory objectives for the CDBG program. Objectives are broad categories to capture the range of community impact an activity, program or project might have.
CREATING A SUITABLE LIVING ENVIRONMENT
This objective is designed for activities that will benefit communities, families, and individuals by addressing issues within their living environment. This objective relates to a wide range of issues faced by low-and-moderate income persons from poor infrastructure to social issues.
PROVIDING DECENT HOUSING
This objective covers a wide range of housing activities meant to meet individual family or community housing needs.
CREATING ECONOMIC OPPORTUNITIES
This objective is designed for activities that will assist with Community Development opportunities, commercial revitalization, or job creation.
OUTCOMES
The outcome component helps to further refine the objective the grantee chose for the activity and is designed to identify the expected result of the objective. Outcomes assist in describing the expected impact of the activity on the community.
AVAILABILITY/ACCESSIBILITY
This outcome will be chosen for activities that will make services, infrastructure, public facilities, housing, or shelter available or accessible to low-and-moderate income persons.
AFFORDABILITY
This outcome applies to activities that will provide for affordability in a variety of ways to low - and-moderate-income persons. Activities under this outcome could include the creation or maintenance of affordable housing, infrastructure hook -ups, or specific services that are to be affordable such as transportation.
SUSTAINABILITY
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Activities falling under this outcome have the purpose of improving communities or neighborhoods and assisting in making them livable by providing benefit to persons of low- and moderate-income, removing slum and blight and sustaining communities and neighborhoods.
INDICATORS
Once the grantee has established program objectives and intended results (outcomes), the grantee will establish a means of measuring progress towards achieving those results. Indicators are already determined by HUD and inputted into the Integrated Disbursement and Information System (IDIS). Grantees are required to report on indicators that are applicable to the specific activity being carried out
7. ELIGIBLE ACTIVITIES
OVERVIEW
This section will discuss the most commonly undertaken activities and some of the common issues with each. Like previous sections of the manual, this one is not intended to act an exhaustive review of or sole resource for eligible activities.
There are six broad categories of eligible activities:
1. “Basic eligible activities" (570.201)
2. "Rehabilitation and Preservation" (570.202)
3. "Special Community Development" (570.203)
4. "Special Community Based Development Organizations (CBDO)" (570.204)
5. "Planning, design, and capacity-building" (570.205)
6. "Program Administration" (570.206)
a. "Basic eligible activities" include:
• acquisition of real property
• disposition of real property
• public facilities and improvements
• clearance and remediation
• public services
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• interim assistance
• payment of non-federal share
• urban renewal completion
• relocation and relocation assistance
• housing services
• privately-owned utilities
• construction of housing
• homeownership
• Community Development
• technical assistance
• assistance to institutions of higher learning
b. "Rehabilitation and Preservation" includes:
• rehabilitation of residential structures
• rehabilitation of public housing
• rehabilitation of commercial or industrial structures • code enforcement
• historic preservation
• renovation and re-use of closed buildings
• lead-based paint activities
c. "Special Community Development" includes:
• acquisition, construction of or improvements to structures and real property
• business assistance
• Community Development services
d. "Special Community Based Development Organizations (CBDO)" includes:
• Neighborhood revitalization project
• Community Development project
• Energy conservation project
• Directly carries out project activity funded by CDBG
e. "Planning, design and capacity-building" includes:
• Planning activities
• Policy management
• Markel studies
• Strategies and action plans
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• Analysis of Impediments to Fair Housing Choice
f. "Program Administration" includes:
• Salaries, wages and other costs of staff
• Travel costs
• Third-party administration costs
• Goods and services
PUBLIC FACILITIES AND IMPROVEMENTS [570.20L(C)]
In general, public facilities or improvements may be acquired, constructed, installed or rehabilitated.
The grantee or any public, private or non-profit entity may undertake the activity.
Public facilities for the general conduct of government may not be assisted [570,207(a)]. The one exception is the "removal of architectural barriers" to the elderly and severely disabled persons.
There has been a great deal of confusion and misunderstanding about this exception. Staff shal l consult the Desk Guide and/or HUD representative should they desire i mprovements to public facilities.
The construction of "facilities" that serve to shelter or house persons with special needs are no t subject to the prohibition on constructing new housing with CDBG. This includes those that serve the homeless, seniors, the disabled, victims of domestic violence, addicts and alcoholics, drug offenders and parolees, "retarded" persons and victims of federally-declared disasters.
When a facility has both ineligible and eligible uses, there are special rules that apply to assistance [570.200(b)]. The eligible use area or component must be "separate and distinct" and the cost of assistance attributable to that area or component can be clearly determined. The CDBG share of costs must be limited to the costs attributed to the eligible use.
Fees for the use of facilities assisted with CDBG may be changed but they may not have the effect of restricting low- and moderate-income persons from using or accessing the entire facility. They must be nominal or waived for low- and moderate-income persons.
PUBLIC SERVICES [570.20L(E)]
Public services are broadly defined in the regulations. Generally, the direct costs of providing a service are eligible including the costs of labor, supplies and materials. The purchase of 231
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equipment is generally ineligible and problematic when it can be made eligible. Indirect costs can be allowed but they must comply with federal rules for cost allocation [Office of Management and Budget (OMB) circular 110].
Public services include (but are not limited to) those concerned with:
• Employment;
• Crime prevention;
• Child care;
• Health;
• Drug abuse prevention and treatment;
• Education;
• Fair housing counseling (general fair housing education is not a public service); • Welfare (excluding income payments);
• Homebuyer down payment assistance; and
• Recreation.
The beneficiaries of public services may "attest" or "self-certify" as to low- and moderate-income status.
HOUSING
The HUD regulations allow entitlement jurisdictions to allocate CDBG funds toward privately owned single-family residences. More specifically, grantees can develop first-time homebuyer assistance products for low - and moderate -income families and can create single -family rehabilitation programs to assist privately owned residences address emergency needs.
HOUSING SERVICES
HOME PURCHASE ASSISTANCE
There are several ways that CDBG can be used to assist homeownership as a housing activity. 570.201(n)
• Direct down-payment assistance (up to 50% of required down-payment); • Payment of reasonable non-recurring closing costs;
• Principal write-down;
• Interest buy-down; and
• Mortgage guarantees and mortgage insurance (PMI, FHA, or VA).
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Home purchase can also be undertaken as a public service under 570.201(e) or by a Community Based Development Organization. Done this way, there are far fewer limitations on the use of funds. However, the 15% cap on public services would apply.
It can also be done within a Neighborhood Revitalization Strategic Area (NRSA). See the section on NRSAs for more detail on forming a NRSA. A few of the issues are:
• A Community Based Development Organization providing homeownership assistance within an NRSA under 570.201(e) is exempt from the public services cap. • Non-low- and moderate-income households may be assisted since the low- and moderate-income test is met on an area basis within the NRSA.
When determining eligibility, the income of the entire household is examined. Income eligibility must be documented using third party verification.
SINGLE FAMILY OWNER-OCCUPIED HOUSING REHABILITATION 570.202
The rehabilitation of owner -occupied single-family homes is one of the most commonly -funded CDBG activities. CDBG allows a variety of approaches to program design and type of assistance.
Programs can be focused on single issues (e.g., roof repair, heating, weatherization) or be comprehensive. Assistance can be in the form of grants or loans and there is no long -term affordability requirement.
Eligible costs are generally the labor and materials to complete the work. Related "delivery costs" are also eligible. These are the costs to provide assistance to the homeowner. These include but are not limited to:
• Energy audits;
• Inspections to determine scope of work;
• Appraisal;
• Title and recording;
• Loan or grant document preparation;
• Work specifications;
• Bidding;
• Construction management; and
• Assistance to the homeowner.
If acquisition is being done along with rehabilitation, the costs of acquisition are also eligible.
Eligible work includes:
• Repair of deferred maintenance;
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• Repair or replacements of major systems;
• Weatherization;
• Installation of safety and security equipment (such as deadbolt locks, smoke detectors, fire escape ladders [burglar alarms are not generally considered to be eligible]); • Abatement of asbestos hazards;
• Addressing lead-based paint hazards;
• Insulation and energy efficiency including solar energy equipment; • Water conservation equipment and devices;
• Connection to municipal water supply or sewer systems; and • Accessibility.
In general, the costs of general property improvements should be limited to those made necessary by other work and limited in overall scope. For example, painting would be funded only if repairs were being made to the exterior or if required to protect the exterior.
The grade of finishes should be the most basic possible while still assuring durability. The occupants of the household should be considered when making this determination. For example, vinyl flooring and wainscoting in the traffic areas would be reasonable for a wheelchair user. The cost of "luxury" finishes can be considered reasonable and eligible when replacing a portion with a similar grade would be less than replacing the entire finish with a lesser grade or in the interest of historic preservation.
Equipment, furnishings and appliances are not eligible unless they are integral to the structure and meet a basic need. Stoves, ovens, cooktops, disposers, dishwashers, refrigerators and built- in microwaves are eligible. "Portable" items su ch as clothes washers, dryers, televisions, space heaters are not eligible. "Luxury" items such as trash compactors and water softeners, and freezers are not eligible. In general, the most basic grade and smallest adequate capacity should be specified.
Enlargement of living spaces other than to address over- crowding is also not generally eligible.
Second units may not be constructed or rehabilitated.
The repair or construction of accessory structures is not generally considered to be eligible. Two common exceptions are structures and improvements related to accessibility improvements for the elderly and severely disabled.
There are many considerations when designing a housing rehabilitation program. While the scope is beyond this document, there are a number of good references available. The use of lump-sum draw - downs, revolving loan funds and escrow accounts are key financial tools to understand when creating a housing rehabilitation program. See the Financial Management section for more information.
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When determining eligibility for single-family rehabilitation, the income of the entire household is examined. Income eligibility must be documented using third party verification.
Accomplishments for single-family rehabilitation are reported in housing units assisted.
FAIR HOUSING
Fair housing is one of the few activities that can be categorized as either a public service [570.2019(e)] or conducted as an eligible planning and administration activity [570.207]. There are several reasons a grantee should choose one over the other.
Because fair housing can be administration or public service, it can "fit" under either annual obligations "cap”. It can also be split across the two caps.
There are also certain fair housing activities that clearly benefit low - and moderate -income persons such as advising persons of their fair housing rights or counseling them to resolve a fair housing dispute and others that fall more into the grantee meeting its general obligation to further fair housing (e.g., publications, surveys, analysis of impediments).
When conducting fair housing as a public service, the grantee should be thinking of how the level of low- and moderate-income benefit will be determined and the potential impact of the fair housing activity' s impact on the overall low- and moderate-income benefit. If it is not clear how low- and moderate-income persons will benefit it may be best to undertake the activity under planning and admin.
HOMELESS
The homeless may be served several ways using CDBG:
• Services that benefit the homeless
• Services that serve to prevent homelessness
• Construction of shelters
• Operation of shelters
• Construction of housing for the homeless (by a Community Based Development Organization)
Cases of services that benefit the homeless or prevent homelessness, or the operational costs of a shelter, fall under public services and under the 15% allocation cap. Homeless persons are a "presumed benefit" population. If the person attests to being homeless, the LMI test is met.
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Construction of shelters or the conversion of existing non- residential structures to shelters is eligible under public facilities 570.201(c) as are transitional housing facilities,
Conversion of existing residential structures into shelter or transitional housing is eligible under rehabilitation.
The construction of new permanent supporting housing (not conversion of existing) is eligible as a Community Based Development Organization activity.
PROGRAM ADMINISTRATION [570.206]
CDBG allows for the entitlement grant to pay for the reasonable administrative costs associated with the planning and implementation of CDBG -funded activities and the overall local CDBG program. This includes reporting, compliance, monitoring, record-keeping, accounting, and annual planning.
Costs associated directly with carrying out eligible activities are eligible under those activity categories.
The costs of program administration include but are not limited to:
• Salaries, wages, and related costs;
• Travel;
• Third-party services;
• Equipment and overhead:
• Public information, public notice, publication;
• Fair housing;
• Indirect costs;
• Preparation of the annual CDBG submission;
• Preparation of other applications for federal funds; and • Program management costs associated with a federally-designated Empowerment Zone or Enterprise Zone or with the federal HOME Investment Partnership Program.
PLANNING/CAPACITY BUILDING [570.205]
Although program administration (570.206) and planning/capacity building (570.205) are both under the "planning and administration" cap, they are distinct in the regulations. The differenc e is academic.
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Eligible costs are those associated with:
• Data gathering;
• Studies;
• Analysis;
• Preparations of plans; and
• Identification of actions to implement plans
Eligible planning activities include, but are not limited to:
• Housing needs;
• Land use and design;
• Community Development;
• Parks;
• Floodplain and wetlands management;
• Environmental studies (not associated with a CDBG-funded project); and • Analysis of impediments to fair housing choice.
Please note these activities are not required to meet a National Objective but should further the CDBG program goals.
A NOTE ABOUT PRESUMPTION AND OVERALL LOW- AND MODERATE-INCOME (LMI) BENEFIT.
It is certainly acceptable to have every beneficiary of a presumed benefit activity self -certify as to membership in that class. It is also acceptable to have every beneficiary of an LM -LC activity self-certify that their income is below a certain level. The danger is that you as the grantee will not have an accurate picture of overall LMI benefit if you do not collect income data. You will not have an accurate picture of the population you are actually benefitting. 237
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8. MEETING A NATIONAL OBJECTIVE OVERVIEW
OVERVIEW
This section of the manual will provide staff with a more in -depth understanding of the three CDBG National Objectives as determined by HUD. As mentioned earlier in the manual. there are specific criteria that must be met in order for the activity to be eligible for CDBG funding including benefiting low- and moderate -income persons, preventing or eliminating blight, or addressing urgent needs. An activity that fails to meet the criteria set forth in 24 570.209 of the Code of Federal Regulations (CFRs) will be in non-compliance with CDBG rules.
LOW- AND MODERATE-INCOME BENEFIT [570.209(A)]
To meet the low -and moderate-income national objective the activity to be undertaken must benefit persons that are at or below 80% of the area median income (AMI) for the area where the activity is taking place. The area median income is calculated and determined by HUD and available on the HUD website (www.hud.gov). An activity can qualify under this national objective as a direct benefit or as a benefit on an area basis. As a direct benefit, the activity will directly benefit a low-and moderate-income person, such as a housing rehabilitation activity. Benefit on an area basis or low -and moderate-area (LMA) benefit. refers to activities that will benefit all persons in that area and not just low-and moderate-income persons. In cases such as these, the targeted area where the activity will take place must include at least 51% low -and moderate- income persons. An example of an activity qualifying under the low -and moderate- area benefit would be infrastructure activities such as water/sewer lines.
LOW- AND MODERATE-AREA [570.209 (A)(1)]
The low-and moderate-area (LMA) objective is designed for activities undertaken in a primarily residential area that will benefit all residents and not just low-and moderate-income persons.
TARGET AREA
The target area is defined as the service area proposed where the activity will take place. The service area must be the entire area served by the activity and cannot be defined only by a particular low-and-moderate income portion that is part of the target area. For example, if the activity is a grocery store, the target area must include all residents that will benefit from that grocery store and not just low-and-moderate income residents.
QUALIFYING THE TARGET AREA
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at least 51% low-and moderate-income households. A grantee may use HUD census data providing low- and-moderate-income percentage information for each census tract and block group within the jurisdiction to determine if the service area qualifies. Often, a service area may not be coterminous with the census tracts or block groups defined by HUD. In this case the grantee can conduct a survey of the determined service area to confirm that the area is 51% low- and moderate-income.
UPPER QUARTILE
In some instances, HUD will make an exception to a low -and moderate-area activity having to meet the criteria of having at least 51% low-and moderate-income persons within the determined service area. If the degree of concentration of low -and moderate-income persons within the service area is considered the highest quartile of low -and moderate-income persons of all areas within the community, there may be an exception to qualifying the activity under the 51% criteria. HUD will determine the lowest proportion a grantee may use to qualify an area based on the upper quartile exception.
LIMITED CLIENTELE [570.209(A)(2)]
Limited clientele activities are designed to benefit particular groups of people within the proposed service area rather than everyone. Limited clientele activities still must meet the 51% low-and moderate-income criteria. To meet the limited clientele objective one of the following tests must be met:
• Benefit clientele who are presumed by HUD to be low-and moderate-income persons including:
o Abused children;
o Elderly persons;
o Battered spouses;
o Homeless persons;
o Severely disables adults;
o Illiterate adults;
o Persons with AIDS; and
o Migrant farmworkers.
• Require information on family size and income to evidence that at least 51% of the clientele are low-and moderate-income;
• Have the activity be of a nature and location that it can reasonably be presumed that the beneficiaries are low-and moderate-income; or
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• Be an activity that will remove architectural or material obstacles to improve accessibility for the elderly or severely disabled as determine by HUD.
LOW- AND MODERATE-INCOME HOUSING
The low- and moderate-income housing objective is designed to ensure that an activity assisting in the acquisition, construction, or improvement of permanent residential housing benefits low- and moderate-income persons directly. To qualify under this objective the activity must result in housing that is occupied by low- and moderate -income persons. The housing can be owner - occupied or renter-occupied can be single-family housing or multi-family housing. Rental housing must be occupied at affordable rents. Occupancy qualifying criteria includes:
• Single unit structures must be occupied by low-and moderate-income persons; • Two-unit structures must have at least one occupant that is low-and moderate-income; and
• More than two units must have at least 51% of the units occupied by low-and moderate- income persons.
LOW- AND MODERATE-INCOME JOBS
This objective is meant to assist with Community Development activities that intend to create or retain permanent jobs of which at least 51% are held by or available to low - and moderate - income persons.
ELIMINATION OF SLUM AND BLIGHT
This National Objectives include activities which help to prevent or eliminate slums or blighted conditions. These activities must meet the criteria of one of the three following categories:
• Prevent or eliminate slum and blight on an area basis; • Prevent or eliminate slum and blight on a spot basis; or • Be in an urban renewal area.
URGENT NEED
Use of this National Objective is rare. It is designed only for activities that alleviate emergency conditions. Urgent need activities must meet the following qualifying criteria:
• The existing conditions must pose a serious and immediate threat to the health or welfare of the community;
• The existing conditions are of recent origin or recently became urgent (generally within 240
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the last 18 months);
• The recipient is unable to finance the activity in its own; and • Other sources of funding are not available.
9. FINANCIAL MANAGEMENT OVERVIEW
This section will cover the financial responsibilities of a grantee when funds are requested, money is committed, and drawn downs occur. It is important for entitlement jurisdiction staff to understand the process and regulations tied the CDBG program even after they are committed to a specific activity or project through a contract or agreement.
Policies Regarding Cash Management
All payments under City of Rialto’s Federal programs will be on a reimbursement basis, AFTER costs have been incurred. No cash advances will be allowed. Reimbursements will not exceed actual cash outlays
All payments to sub-recipients and for in-house activities will be monitored for compliance with federal regulations and applicable OMB circulars. Prior to payment, sub -recipient requests for program funds shall be properly evaluated. The following will be monitored:
a. Bi-weekly employee timesheets
b. Payroll records
c. Cost per capita served
d. Portion of clientele served that is low-income
e. Eligibility of activity
f. Allowable costs
g. Non-Federal funds leveraged (if applicable)
h. Proper allocation of costs to City of Rialto
Drawdown of federal funds through federal reporting system is subject to review and approval by Finance staff. Variances between expected and actual cash disbursements of federal awards and drawdowns of federal funds are reported to an appropriate level of management.
Since federal funds will only be provided on a reimbursement basis, it is anticipated that no interest earnings will accrue to the City or to sub-recipients. In the unlikely event interest earnings on federal funds are accrued, they must be paid back to that federal department.
Program income funds will be generated primarily by housing rehab loan repayments and occasionally, housing development activities. Program income received by the City must be deducted from reimbursement requests before drawing down entitlement grant funds. 241
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The federal financial reporting syste m is capable of scheduling payments for accounts payable and requests for funds from Treasury that enables the City to avoid a time -lapse between drawdown of funds and the actual disbursement of funds. Rialto’ s accounting program, shall be reconciled by the following steps:
1) Invoices are received by Finance Department via email, mail, etc. 2) No less than twice per month, invoices are coded by purchase order accounting number (account waiting for the money so accounts payable will know where to take it from), where money has been allocated to those activities; codes by stamping invoice with stamp that includes: vendor number, PO # dollar; after filling out info on stamp, it goes to finance;
3) At the end of the month all expenditures are totaled and drawdowns for the particular activities are reported to the Government agency; the Account Clerk reviews drawdowns for accuracy and compiles data in a spreadsheet
4) The Account Clerk inputs drawdowns into IDIS
5) The Deputy Director or Senior Analyst approves vouchers in federal system
Staff will carry out periodic independent evaluation (e.g., by internal audit, top management) o f entity cash management, budget and actual results, repayments of excess interest earnings, and federal drawdown.
Procedures for Reflecting Prior Period Adjustments and Accruals
In preparation of the CAPER, City staff review the following reports:
- PR09- Program Income Details by Fiscal Year and Program (report generated by IDIS) - PR26- CDBG Financial Summary Report (report generated by IDIS) - Analysis of CDBC Funds - City of Rialto Sources & Uses of Funds spreadsheet (report generated by the City's Consultant)
Director of Finance or Designee reconciles discrepancies between the IDIS reports and the City's Budget and makes the necessary adjustments in the PR26 report. These adjustments are explained as Notes to the PR26, which is included as an appendix to the CAPER.
Policy Regarding Rebates, Refunds and Credits to Federally Funded Programs
All rebates, refunds, and credits to HUD CPD programs will be properly reported. Bid bond 242
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forfeiture funds that are not offset by additional costs to select another bidder will be credited to HUD CPD programs at their pro-rata share.
Procedures for Evaluating Travel and Training Costs Charged to the CDBG Program
All travel and training expenses charged to the HUD programs must be approved by the Community Development Manager or a Department Director. Prior to approval, travel and training expenses are evaluated based on the following criteria:
- Compliance with 2 CFR 200.472
- Applicability/relevance to CDBG/HOME program goals and objectives - Eligibility under Federal programs
- Within the allocated budget for that program
Procedures for Allocating and Documenting Personnel Costs Charged to CDBG Admin Account
1. Personnel costs charged to HUD programs will follow Section 200.430, of 2 CFR 200.
Prior to the beginning of the fiscal year, City of Rialto Staff and the Community Development Director will evaluate available funding as well as the Admin workload, scope of work and staffing assignments. This evaluation will produce an estimate of staffing needed including percent allocation of each Admin staff member's time dedicated to HUD Programs. These allocation factors will be noted on the employee's action form and transmittal to the City Payroll Department for the affected employee.
Compensation (including salary and benefits, if eligible) will be allocated accordingly to the Admin account.
2. All employees whose compensation is charged to Admin will maintain bi - weekly timecards documenting the number of hours charged to various programs. Timecards will represent an after -the-fact distribution of the actual activity of each employee and will account for the total activity for which the employee is compensated. Time cards will be signed by the employee and approved by their Supervisor.
3. Admin staff will conduct a quarterly reconciliation to confirm that employee timecards are consistent with actual time charged to HUD-funded programs. If inconsistencies are found, the costs charges to HUD-funded programs will be adjusted.
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Procedures for Allocating and Documenting Personnel Costs Charged to CDBG Rehab Account
1. Personnel costs charged to the Housing Rehab program will follow Section 200.430, of 2 CFR 200 (including CFDA 14.218 Part Ill)
2. Prior to the beginning of the fiscal year, City of Rialto staff and the Community Development Director will evaluate available funding as well as the Rehab work loan, scope of work and staffing assignments. This evaluation will produce an estimate of staffing needed including percent allocation of each Rehab staff member's time dedicated to Rehab. These allocation factors will be noted on the employee's action form and transmittal to the City Payroll Department for the affected employee.
Compensation (including salary and benefits) will be allocated accordingly to the Rehab account.
3. All employees whose compensation is charged to Rehab will maintain bi- weekly timecards documenting the number of hours charged to various programs. Time cards will represent an after-the-fact distribution of the actual activity of each employee and will account for the total activity for which the employee is compensated. Time cards will be signed by the employee and approved by their Supervisor.
4. Rehab staff will conduct a quarterly reconciliation to confirm that employee time cards are consistent with actual time charged to Rehab programs. If inconsistencies are found, the costs charged to HUD-Rehab programs will be adjusted.
Procedures for Allocating and Documenting Personnel Costs Charged to CDBG Microenterprise Activities (18-305-300)
1. Personnel costs charged to the CDBG Microenterprise program will follow Section 200.430, of 2 CFR 200 (including CFDA 14.218 Part Ill)
2. Prior to the beginning of the fiscal year, City Rialto Community Development staff and the Community Development Director will evaluate available funding as well as the CDBG Microenterprise workload, scope of work and staffing assignments. Thi s evaluation will produce an estimate of staffing needed including percent allocation of each CDBG Microenterprise staff member's time dedicated to CDBG Microenterprise.
These allocation factors will be noted on the employee's action form and transmittal to the City Payroll Department for the affected employee. Compensation (including salary and benefits) will be allocated accordingly to the CDBG Microenterprise account.
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3. All employees whose compensation is charged to CDBG Microenterprise will maintain bi-weekly timecards documenting the number of hours charged to various programs.
Timecards will represent an after- the-fact distribution of the actual activity of each employee and will account for the total activity for which the employee is compensated. Timecards will be signed by the employee and approved by their Supervisor.
4. CDBG Microenterprise staff will conduct a quarterly reconciliation to confirm tha t employee timecards are consistent with actual time charged to CDBG Microenterprise programs. If inconsistencies are found, the costs charged to CDBG -microenterprise programs will be adjusted.
Procedures for Determining Cost Reasonableness
The City's annual allocation process includes an analysis of the reasonableness of costs charged by sub-recipients to the City's CPD Programs. This analysis includes an evaluation of whether costs associated with a proposed service are in accordance with OMB Circular A- 122. Every activity considered by CDBG or HOME funding is evaluated by a variety of criteria, including:
• Cost per capita served
• Portion of clientele to be served that is low-income or presumed benefit • Eligibility of proposed activity
• Allowability of costs associated with proposed activity • Timeliness of expenditures in prior year(s)
• Severity of need for proposed service
• Number of City Rialto residents to be served
• Accessibility of service to be provided to City of Rialto residents, particularly for services offered outside of City of Rialto
• Duplication/uniqueness of service
• Non-HUD funds leveraged
Costs for training and travel are evaluated on a case-by-case basis and consideration of their eligibility, applicability and reasonableness is made before they are charged to the CDBG program. CDBG Admin staff must approve all training and travel costs charged to the CDBG program.
Activities are determined eligible and reasonable for CDBG/HOME funding if all the criteria 245
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identified above are satisfied.
Process for Approval of Subrecipient Reimbursement Requests for Public Services
Based on the terms of the written agreement with the sub -recipient, city staff will review reimbursement requests for allowability, eligibility, and reasonableness. All reimbursement requests by public service subrecipients shall include a summary detailing expenses by project budget line item and the amount being charged to the City's CDBG program. Where sub - recipients serve clients from multiple jurisdictions in Los Angeles County, the City's invoice review procedures include an evaluation that charges to City of Rialto are pro-rated based upon the actual number of City of Rialto residents served.
The table below outlines what supporting documentation must accompany reimbursement requests.
COST ITEM SUPPORTING DOCUMENTS
Salaries
• Documented payrolls approved by a
responsible official of the organization
• Signed personnel activity reports (timesheets)
summarizing the distribution of activity of each
employee. Timesheets should identify the amount
of time spent on serving City of Rialto clients, or
directly on the program.
• Refer to OMB Circular A-122, Attachment B,
Paragraph 8 (m)
Fringe Benefits • Proof of payment of fringe benefits including health insurance statements, life insurance statements, etc.
Fringe benefits will be calculated as a percentage of
salaries. This percentage may generally not exceed 30
percent of salaries.
Materials and Supplies • Copies of invoices/receipts
Utilities • Copies of invoices/receipts
Other expenses • Copies of invoices/receipts/billing statements
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Based on the terms of the written agreement with the contractor, city staff reviews reimbursement requests for eligibility, and reasonableness. All reimbursement requests by the contractor shall include a summary detailing expenses and the amount being charged to the City's HUD programs.
The table below outlines what supporting documentation must accompany reimbursement requests.
COST ITEM SUPPORTING DOCUMENTS
Salaries • Requests for reimbursement shall include a summary of the position(s) billed to the contract, the dates
that services were provided, total number of hours
billed by each position per clay, and the hourly billing rate of each position charged to the City of Rialto
activity.
Materials and Supplies • Copies of invoices/receipts
Other expenses • Copies of invoices/receipts/billing statements
FINANCIAL REPORTING
In addition to the budgeting, payment processing, and oversight actions described in other sections, the City will undertake the following actions to ensure accurate, current, and complete disclosure of the financial results of HUD -assisted activities in accordance with the financial reporting requirements of the CDBG Program.
FFATA Reports
At the end of each month, the Accounting Manager will report on all awards in excess of $25,000 using the FFATA sub-award reporting system (FSRS) in order to comply with the Federal Funding Accountability and Transparency Act of 2006. For guidance on data entry, refer to the guidance material on www.onecpd.info entitled “FFATA Subaward Reporting System Webinar for CDBG Grantees”.
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Open Balance Review
On a quarterly basis, the Community Development Director, Grants Consultant and Accounting Manager will review the Annual Expenditure Work Plan with IDIS PR 08 to identify slow-moving projects. The review will include an assessment of the project’s progress and its effectiveness of meeting its objectives. If a project is not on schedule or not effective, staff will develop a work plan and timeline for corrective actions.
Monthly Reconciliation
At the close of each month, the Accounting Manager will work with the Grants Consultant to reconcile General Ledger expenditures and IDIS drawdowns for all HUD accounts. The information in IDIS, the PR07 Drawdown by Voucher Number, will also be compared to the local Project Report to ensure the IDIS system accurately reflects expenditures and cash balances. All discrepancies will be reported directly to the Finance Director and Community Development Director who will jointly oversee corrective action.
Federal Cash Transactions Report
Semi-annually, the Grants Consultant will prepare and submit the Federal Cash Transactions Report SF-425. The Grant Administrator will take the following steps to reconcile IDIS with the City’s local internal financial records:
STEP 1: DETERMINE DRAWS PER IDIS
1. From IDIS, generate the PR07 Drawdown by Voucher Number Submitted to LOCCS. Limit the report to the time period in question (i.e. Initial Date: 01/01/2014 and End Date:
06/30/2014 for Q2 of 2014).
2. Import the report into Excel.
3. Filter the report to show Entitlement Draws (EN Fund Type) with a Complete Status.
4. Verify the total amount of Entitlement funds drawn during the quarter by totaling all line items. This is the amount to enter on line 10a. Cash Receipts of the SF-425.
5. If it is requested by the local HUD field office, the Federal Financial Report attachment can be used to report the amount disbursed from each grant allocation. Sort the PR07 report by the Grant Number field to determine the amount disbursed from each allocation.
STEP 2: DETERMINE EXPENDITURES PER LOCAL SYSTEM
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1. From City’s Accounting System, generate the Accounts Payable Invoice Report for the CDBG Fund. When selecting the date range, include the three months prior to the quarter in question. The City works on a reimbursement basis, meaning a draw that occurred in the current quarter may have been paid in the previous quarter.
2. For each drawdown listed on the PR07, identify the corresponding record on the Accounts Payable Invoice Report and initial the line item. Please note that it will not always be a one to one relationship. One IDIS draw could represent several claims and vice versa. To help with the identification process, reference the Voucher for IDIS Drawdown forms processed during the quarter.
3. Verify that each draw has a corresponding claim. If so, enter the same amount from 10a. on line 10b. of the SF-425 report and enter 0 on line 10c. If there is a discrepancy, report the matter to the Finance Director for correction.
STEP 3: FILING
1. Complete the remainder of the SF-425 Report and submit it to the local HUD Field Office within 15 days of the close of the quarter.
2. Maintain a copy of the completed and signed SF -425 Report, the PR07 Report, the Accounts Payable Invoice Report, and any notes or related correspondence in a folder labeled Federal Financial Reports.
Policy Regarding Rebates, Refunds and Credits to HUD CPD Programs
All rebates, refunds, and credits to HUD CPD programs will be properly reported. Bid bond forfeiture funds that are not offset by additional costs to select another bidder will be credited to HUD CPD programs at their pro-rata share.
Procedures for Evaluating Travel and Training Costs Charged to the CDBG Program
All travel and training expenses charged to HUD programs must be approved by the Community Development Director or a Department Director. Prior to approval, travel and training expense s are evaluated based on the following criteria:
• Compliance with OMB Circular A-122
• Applicability/relevance to CDBG/HOME program goals and objectives • Eligibility under CPD programs
• Within the allocated budget for that program
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Schedule of Federal Expenditures
The Finance Department is responsible for preparing, based on information provided by the Community Services Department, the Schedule of Federal Expenditures (SEFA) as part of the annual auditing process. Regarding CDBG, the following procedures will be followed to ensure that the SEFA is reconciled:
1. Department of Finance staff will prepare the SEFA in preparation for the annual audit.
Expenditures shall be determined using the following guidelines:
a. Use the same accounting basis as the City’s Financial Statements. b. Include all expenditures of federal awards for the year, including but not limited to
i. transactions associated with grants, cost-reimbursement contracts, cooperative agreements, and direct appropriations;
ii. federal awards received directly from a federal agency and indirectly from a state agency;
iii. disbursement of funds passed through to sub-recipients; iv. receipt of loan proceeds under loan and loan guarantee programs; receipt of federal property and surplus property;
v. receipt and use of program income.
c. List all financial assistance from the same federal agency together on the schedule.
d. Within each federal agency section, list all direct awards first followed by indirect awards.
e. Provide subtotals for programs with the same Catalog of Federal Domestic Assistance (CFDA) number.
f. Provide subtotals for assistance received directly and assistance received indirectly.
g. Provide a total for each federal agency.
2. Accounting Manager will provide any and all underlying records, claims, and vouchers needed to verify CDBG expenditures and draws.
3. Director of Finance or his designee will review the draft SEFA for:
a. reported expenditures against information from the Eden system; b. the correct CDFA and agency information is provided, including identification of pass-through entities.
c. that the draft version presents the minimum data elements required by 2 CFR 200 Subpart F.
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4. Director of Finance will provide the draft SEFA to the outside auditing firm for review.
5. Director of Finance will work with staff and outside auditing firm to address any errors, omissions or weaknesses.
Asset Management
Any property, personal or real, is limited in use to serving the objectives of HUD programs. All property purchased with HUD funds must be adequately controlled and safeguarded. In general, it is the responsibility of the Community Development Director to ensure staff take appropriate day to day actions to prevent loss, damage, or theft of the property. It is also the responsibility of the Community Development Director to ensure all equipment and property is adequately maintained on a regular, as -needed basis. Any loss, damage, or theft must be r eported to the Mayor and City Manager.
Regarding asset management, property can be generally divided into three categories: supplies, equipment, and real property. Supplies are all tangible personal property other than Equipment.
A computing device is a supply if the acquisition cost is less than $5,000, regardless of the length of its useful life. Equipment is tangible personal property having a useful life of more than one year and a per- unit acquisition cost more than $5,000. Examples include office eq uipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles.
Equipment must be used by the City and/or its subrecipients for the purpose which it was acquired whether or not the project or program continues to be supported by CDBG. When no longer needed for the original program or project, the equipment may be used in other activities.
However, CDBG-purchased equipment cannot be used to provide services for a fee that is less than private companies charge for equivalent services unless the service meets all of the CDBG rules and regulations.
When original or replacement equipment acquired with HUD funds is no longer needed for the original project or program or for other activities currently or previously supported by HUD funds, the City shall request disposition instructions from HUD. In most cases, items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation. Some portion of the proceeds may be considered program income.
If replacement equipment is necessary, the City may use the existing equipment as a trade -in or sell the property and use the proceeds to offset the cost of the replacement property.
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Real Property
All real property, such as buildings, should be protected by using reasonable security measures.
Equipment and supplies should be reasonably protected from possible theft. Short-term supplies, such as office supplies, do not need to be controlled through a perpetual inventory system, but must still be adequately safeguarded.
When the City or its subrecipients wish to dispose of property acquired or improved with HUD Funds, the disposition is subject to the regulations at 24 CFR 570.505 (see below). If the property is changed to a non- eligible use within the five -year period, the funds returned to the City are treated as returned funds (as opposed to program income). After the five-year period, any funds returned to the City are considered program income.
When selling the property, the City and or its sub -recipient shall follow its local procedure to ensure the highest possible return.
The standards described in this section apply to real property within the recipient's control which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards shall apply from the date CDBG funds are first spent for the property until five years after closeout of an entitlement recipient's participation in the entitlement CDBG program or, with respect to other recipients, until five years after the closeout of the grant from which the assistance to the property was provided.
(a) A recipient may not change the use or planned use of any such property (including the beneficiaries of such use) from that for which the acquisition or improvement was made unless the recipient provides affected citizens with reasonable notice of, and opportunity to comment on, any proposed change, and either:
(1) The new use of such property qualifies as meeting one of the national objectives in §570.208 (formerly §570.901) and is not a building for the general conduct of government; or
(2) The requirements in paragraph (b) of this section are met.
(b) If the recipient determines, after consultation with affected citizens, that it is appropriate to change the use of the property to 252
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a use which does not qualify under paragraph (a)(1) of this section, it may retain or dispose of the property for the changed use if the recipient's CDBG program is reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, and improvements to, the property.
(c) If the change of use occurs after closeout, the provisions governing income from the disposition of the real property in §570.504(b)(4) or (5), as applicable, shall apply to the use of funds reimbursed.
(d) Following the reimbursement of the CDBG program in
accordance with paragraph (b) of this section, the property no longer will be subject to any CDBG requirements.
Recordkeeping
Property records must be maintained that include:
- a description of the property,
- a serial number or other identification number,
- cost of property, including percentage paid for with HUD Funds, - who holds title,
- the acquisition date,
- the location, use, and condition of the property, and - any ultimate disposition data including the date and sale price.
The Community Development Director shall take inventory of all property and reconcile inventory with property records at least once every two years. Any difference between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The inventory shall include verification of the existence, current use and condition, and continued need for the property.
EXHIBIT I
Department of Housing & Urban Development
Program Income
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Drawdowns of funds through IDIS will occur at least monthly. It is anticipated that monthly IDIS drawdowns of expenditures will greatly exceed monthly program income. Interest earnings on program income that are not offset by monthly expenditures will be credited to the appropriate program.
There are currently two sources of CDBG program income.
Program income from the home rehabilitation program. The loan servicer receives loan repayments and creates a monthly report to the City. The repayments are forwarded to the City and deposited into different accounts used for loan repayments. As described above, this program income is drawn down first when funds are drawn down for any appropriate activity.
Program income from housing activity. A few housing development projects received funds and loan repayments are made when there is surplus cash or residual receipts at the end of the year, as evidenced by the developments' annual financial audits. The amount of program income is determined by the loan terms indicated in the promissory note or appropriate funding agreement. The Community Development Director records the loan repayment and forwards it to Finance to deposit. As above, the program income is drawn down first when funds are drawn down for any appropriately funded activity.
Reimbursement Process in IDIS
The City will adhere to the following procedure to pay CDBG-related claims monthly:
- Within IDIS, the Accountant creates program income receipts based on monies received since the last drawdown
- Accountant reconciles Invoice Report with Draw Schedule and alerts Accounting Manager to any discrepancies
- Within IDIS, Grants Consultant will create IDIS draw voucher based on the actual expenditures incurred by the City. Once the drawdown voucher is created, the Grants Consultant will print a screenshot of the voucher creation screen from IDIS, record the Voucher Number on the Departmental Budget, and alert the Accounting Manager that the drawdown is ready for approval
- Accounting Manager approves drawdown voucher in IDIS. Funds will wire transfer to City designated account in two to three business days
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- Upon receipt of wire transfer from the U.S. Treasury, the Finance Department Accountant will alert the Accounting Manager of receipt by forwarding the report with the CDBG disbursements identified. The General Fund will be reimbursed for the CDBG costs that were advanced
TIMELINESS REVIEW
On a monthly basis, the Grants Consultant will generate and review with Accounting Manager, the CDBG Timeliness Report and evaluate the timeliness of CDBG expenditures.
REIMBURSEMENT REQUESTS
One of the most common steps that follow entering a contract with a sub-recipient or other third party is when that sub- recipient or other sub -grantee (or contractor) has completed work as specified in the agreement, and they submit request for funds. This request is applicable to activities held internally with the entitlement jurisdiction. '
A request for reimbursement should include:
• The amount requested
• The date requested
• Clear description of the work completed
• The date range of the work completed
• A beneficiary report if the activity is Limited Clientele
Requests should be submitted at least quarterly and a final request should be submitted within 15-days of the end of the fiscal year. (See Appendix for Public Services Request for Reimbursement.)
NOTE: CDBG Grantee staff who are responsible for compliance with the CDBG grant agreement with HUD should review all uses of CDBG funds. It is not recommended that you give a sub- grantee or even another City department "carte blanche" to expend CDBG funds. It is highl y recommended that the grantee requires an internal review and authorized signature for all disbursement of CDBG funds.
IDIS DRAWS
Once funds have been paid to the sub-recipient, sub-grantee, or contractor, the City must request reimbursement from HUD. Funds can only be advanced from HUD under special circumstances. (See below.)
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Funds are held by the US Treasury in what is called a Line of Credit. Funds are disbursed by the US Treasury through what is called the Line of Credit Control System or LOCCS. It is often referred to as “locks”.
The Integrated Disbursement and Information System (IDIS) is the online system set up by HUD to tell HUD what you are doing with CDBG funds and to request funds from the Line of Credit Control System.
When funds are requested via the Integrated Disbursement and Information System (IDIS) and approved, they are wired directly to the grantee.
The chapter on IDIS includes detailed instructions on making draws in the system.
The request for funds should originate from the entitlement jurisdiction's Finance Department based on records of expended funds. The draw is then created in IDIS by one staff person and approved by another. The Integrated Disbursement and Information System does not allo w the same login ID to be used to both create and approve a draw.
Once a draw has been created and approved, the grantee's Finance Department should be informed and the amounts confirmed.
When the entitlement jurisdiction receives funds, as the CDBG administrator, the grantee should be notified in the case there is a discrepancy.
City financial reports and IDIS records should be regularly reconciled.
PROGRAM INCOME
The receipt and expenditure of program income shall be recorded as part of the financial transactions of the grant program.
(b) Disposition of program income received by recipients.
(1) Program income received before grant closeout may be retained by the recipien t if the income is treated as additional CDBG funds subject to all applicable requirements governing the use of CDBG funds.
(2) If the recipient chooses to retain program income, that program income shall be disposed of as follows:
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(i) Program income in the form of repayments to, or interest earned on, a revolving fund as defined in Sec. 570.500(b) shall be substantially disbursed from the fund before additional cash withdrawals are made from the U.S. Treasury for the same activity. (This rule does not prevent a lump sum disbursement to finance the rehabilitation of privately owned properties as provided for in Sec. 570.513.)
(ii) Substantially all other program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U.S.
Treasury.
(iii) At the end of each program year, the aggregate amount of program income cash balances and any investment thereof (except those needed for immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump -sum drawdown, or cash or investments held for section 108 loan gua rantee security needs) that, as of the last day of the program year, exceeds one-twelfth of the most recent grant made pursuant to Sec. 570.304 shall be remitted to HUD as soon as practicable thereafter, to be placed in the recipient's line of credit. This provision applies to program income cash balances and investments thereof held by the grantee and its sub-recipients.
(3) Program income on hand at the time of closeout shall continue to be subject to the eligibility requirements in subpart C and all other applicable provisions of this part until it is expended.
(4) Unless otherwise provided in any grant closeout agreement, and subject to the requirements of paragraph (b)(5) of this section, income receiv ed after closeout shall not be governed by the provisions of this part, except that, if at the time of closeout, the recipient has another ongoing CDBG grant received directly from HUD, funds received after closeout shall be treated as program income of th e ongoing grant program.
(5) If the recipient does not have another ongoing grant received directly from HUD at the time of closeout, income received after closeout from the disposition of real property or from loans outstanding at the time of closeout shall not be governed by the provisions of this part, except that such income shall be used for activities that meet one of the national objectives in Sec. 570.901 and the eligibility requirements described in section l05 of the Act.
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(c) Disposition of program income received by sub-recipients. The written agreement between the recipient and the sub- recipient, as required by Sec. 570.503, shall specify whether program income received is to be returned to the recipient or retained by the sub-recipient. Where program income is to be retained by the sub-recipient, the agreement shall specify the activities that will be undertaken with the program income and that all provisions of the written agreement shall apply to the specified activities.
When the sub-recipient retains program income, transfers of grant funds by the recipient to the sub-recipient shall be adjusted according to the principles described in paragraphs (b)(2)(i) and (ii) of this section. Any program income on hand when the agreement expires, or received after the agreement's expiration, shall be paid to the recipient as required by Sec. 570.503(b)(8).
(d) Disposition of certain program income received by urban counties. Program income derived from urban county program activities undertaken by or within the jurisdiction of a unit of general local government which thereafter terminates its participation in the urban county shall continue to be program income of the urban county. The urban county may transfer the program income to the unit of general local government, upon its termination of urban county participation, provided that the unit of general local government has become an entitlement grantee and agrees to use the program income in its own CDBG entitlement program.
LUMP SUM DRAWS [570.513]
CDBG regulations allow the grantee to draw down a lump sum for planned housing rehabilitation activities. The grantee can draw down up to two years’ amount. The lump-sum must be deposited in a financial institution and there must be a specific agreement with that institution. This allows the grantee to provide funds to a project much quicker without having to advance local funds and be reimbursed.
Interest earned on the balance of funds must be remitted to the US Treasury.
REVOLVING LOAN FUNDS [570.5OO(B)]
CDBG allows the grantee to set up a revolving loan fund (RLF). This is a fund that is set up to that it receives program income (principal and interest) from a certain use (single-family housing rehabilitation, business assistance, homebuyer assistance) and re -loans monies for that same use.
The advantage of a revolving loan fund is that funds can be allowed to accumulate. Monies in the revolving loan fund are not subject to the "first-in, first-out" rule of typical program income. 258
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A revolving loan fund must be an interest-bearing account and interest earned on the balance of funds must be remitted to the US Treasury.
ESCROW ACCOUNTS
In order to facilitate the timely availability of funds for projects such as housing rehabilitation, a grantee may draw down and deposit funds into an escrow account. This account can be held by the grantee or in trust by a local escrow company.
The main advantage is ease of disbursement. A simple faxed form or e-mail can typically serve to release funds to the contractor or other entities within a timely manner.
The greatest disadvantage is some loss of control. The grantee does not have possession of the funds. There is also often a cost associated with escrow accounts. The loss of control can be mitigated by creating a good working relationship with a local escrow officer and writing clear and detailed escrow instructions. The cost can be financed with CDBG funds.
It should be noted that escrow accounts are intended to fund hard costs only. They cannot be used to fund "soft" costs or the grantee's administrative or delivery costs.
INTEREST ON FEDERAL FUNDS
Interest earned on federal funds must be remitted to the US Treasury.
FEDERAL FINANCIAL REPORT [STANDARD FORM 425]
(See Appendix for Standard Form 425.)
10. INTEGRATED DISBURSEMENT AND INFORMATION SYSTEM (IDIS) OVERVIEW
This section is intended to provide an introductory tour through the Integrated Disbursement and Information System and offer concise explanations of the most common tasks to be performed in the system. It is not intended as a substitute for the Disbursement and Information System Reference Guide or other reference material listed at the end of this section.
WHAT IS IDIS?
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IDIS stands for "Integrated Disbursement and Information System”. It is an on -line system that HUD developed to manage the four Community and Planning Development formula programs:
CDBG, HOME Investment Partnership Program (HOME), ESG, and Hosing Opportunities for Persons with AIDS (HOPWA).
IDIS allows recipients of formula grant funds to report on the use of funds as well as to request funds from the US Treasury.
IDIS does have a reference manual and other reference materials. You should have a copy of the reference manual. Where to find the reference manual (available on the HUD web site in PDF) and other resources are in the IDIS resources section at the end of this chapter.
IDIS IN CONTEXT
IDIS is one of four management systems envisioned by HUD as supporting the formula grant programs. The other three are:
• The Consolidated Plan Management Process (CPMP) system organizes and reports information regarding the projects and activities conducted by the grantee. It is designed to provide consistent information in a consistent format to the public, to HUD, and ultimately to the US Congress. It also may be used to upload project and activity information into IDIS. See the section on CPMP for more information. • The Line of Credit and Control System (LOCCS) interacts with IDIS to disburse funds from the US Treasury and report information to IDIS on the availability of funds and grant balances. The grantee has no direct access to LOCCS.
• The Grants Management Process system (GMP) is the system employed by HUD field offices to manage formula grants and review the performance of grantees. HUD field staff use IDIS to view the performance of grantees. Grantees are not involved in GMP.
IDIS STRUCTURE: PLAN, PROJECT, AND ACTIVITY
IDIS is intended to "mirror" the Consolidated Plan and the Annual Action Plan. Projects represent the undertakings identified in the Consolidated Plan as meeting the community's needs. Projects are organized into Plan Years that coincide with the annual Action Plan. Activities represent the individual tasks that contribute to the goals of the Project.
INTEGRATION INTO IDIS ONLINE
Beginning in May 2012, HUD grantees will be able to submit their Consolidated Plan using the Consolidated Plan template in IDIS Online. The Consolidated Plan template will be required for 260
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all Consolidated Plans submitted on or after November 15, 2012. Grantees that are scheduled to submit Consolidated Plans to HUD after this date will use the template for both the Consolidated Plan and each Annual Action Plan.
With the incorporation of the Consolidated Plan, Annual Action Plan, and CAPER into IDIS Online, all the key reporting elements of the grants are integrated into one system. This will help ensure cohesiveness between the goals described in the Consolidated Plan and Action Plan and the outcomes tracked in IDIS and reported in the Consolidated Annual Performance and Evaluation Report (CAPER). The reports in IDIS Online can be run throughout the program year to monitor progress and performance against the goals established in the Consolidated Plan and Annual Action Plan.
To access IDIS Online, a grantee must have an active IDIS Online User ID. To add new users, grantees should follow the instructions on the IDIS Log On page:
http://www.hud,gov/offices/cpd/systems/idis/obtainaccount.cfm.
Before a grantee user can add or edit a Consolidated Plan or Action Plan, the local IDIS Administrator for the grantee must edit the user's profile to provide that functionality. Local administrators can use these steps to edit a user's profile to provide access to the Consolidated Plan, Action Plan, and CAPER templates:
1. All grantees have a local administrator. To determine who has local administrator privileges, run the Security
2. Click on Admin in the Main Menu bar (only local administrators will see this option).
3. By default, the system will display the Search User Profiles screen. Use the fields provided, such as User ID or First Name and Last Name to search for the user profile that needs to be revised, then click Search.
IDIS FACTS
• Each activity must be associated with a project, each project with a Plan Year • A Project may have one or more Activities associated with it. • Reporting and disbursement happens at the Activity level.
Once the initial structure of Plan Year, Projects and Activities has been established in IDIS, nearly all future activity in IDIS is at Activity level.
When would there be more than one Activity under a Project?
• When there is a single undertaking that has several distinct components or stages. o Community Center – acquisition, design, construction, operations 261
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o Homeless Shelter – bus tickets, counseling, meal vouchers, clothing operations
IDIS ACCESS
The starting place for IDIS is the main IDIS webpage:
http://www.hud.gov/offlces/cpd/systems/idis/
IDIS is accessed through an internet browser using an application that emulates a mainframe "green screen”.
The steps you need to take to access IDIS can be found on the "getting started" page of the IDIS web page.
REQUESTING IDIS ACCESS
The first thing to do is to request IDIS access by submitting an IDIS Access Request Form on the IDIS web page.
Be sure to follow the instructions carefully and note:
• Check the correct action box
• Check the correct “authorized function” box(es) (more on this below) • Check the program area box(es) for the programs for which you need access to IDIS • The person who is requesting access signs under “authorized user” • Leave “field office approval” blank
• Under “approved by”, enter the information for your jurisdiction’s chief executive or other authorized official (this will be the same person who signs your grant agreements with HUD)
• You must notarize the signature of the “approving” official
Submit the form to your HUD field office (not to IDIS Security). Send it attention to your Program Representative. Let your representative know it is on the way.
If you do not receive your IDIS authorization within 4 weeks, follow-up with your representative.
A call to IDIS Security might also be required.
IDIS Access is specific to the person. A person may have access to one or more jurisdictions. Once you have an IDIS ID you will never have a new one issued to you. It's important to let IDIS Security know (via the form) if you have had IDIS access in the past, as they will simply "renew" your ID.
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SELECTING THE CORRECT “ACTION”
Your choices for "Action" on the form and when to tick them are:
• New Request - You have never had an IDIS ID.
• Renew Lapsed ID - You had an IDIS ID but you let it lapse. (Call IDIS technical assistance to confirm.)
• Drop from IDIS - You no longer want access to IDIS, or more likely, you want to remove someone's access to IDIS.
• Add Access to Another Grantee - You currently have IDIS access for one grantee and you want authorization for another. This is uncommon for most grantee staff. You will see consultants with this sort of access or the staff of Consortia or Urban Counties. • Change Name/Functions/Grantee - Self-explanatory. Seldom used.
AUTHORIZED FUNCTIONS IN IDIS
In general, it is best to select all authorized functions unless there is a specific reason not to. Such a reason might be that you only want certain staff to approve draws or certain staff to be able to perform administrative functions in IDIS.
It is recommended that if this is desired, two levels be created: those that can only set -up activities and request (create) draw -downs and those that can perform all functions including administration.
It is important to remember that the same user cannot both create and approve a draw request.
THE AUTHORIZATION PACKET
When your IDIS authorization is complete you will receive an authorization "packet" from IDIS Security. The items you want to focus your attention on are your WEB390 ID or "wi" number, your IDIS ID or "c" number and your IDIS temporary password. Keep this packet in a safe place.
When monitoring, some HUD staff will want to see that you have your IDIS authorization documents in order and in a secure location.
PC AND SOFTWARE REQUIREMENTS
If you have a PC running MS Windows, you should not have a problem working with IDIS.
Currently the most stable configuration is Windows 2000 using IE 6.x. Issues have been reported using IE 7.x and with XP. No word on Vista. Netscape is no longer supported so its use is not recommended. IDIS does not support Firefox.
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It is typical that as new operating systems are released (or even significant updates) or new browser versions are released, IDIS lakes some time to catch up.
You will need to download and install a "plug -in" or helper application that works with your browser. To see which of the two plug-ins to install, check the chart on the "Browser and Plug-in Information" page:
http://www.hud.gov/offices/cpd/systems/idis/gettingstarted/browser.cfm#browsers.
See the "Plug-in Guide" published by IDIS staff (attached) for step-by-step instructions.
Ignore the instructions to download and install the report batch file. Ignore the report batch guide. This is obsolete.
GOING INTO IDIS
To access IDIS, start at the IDIS page http://www.hud.gov/offices/cpd/systems/idis/idis.cfm. This page is also where HUD will post news related to IDIS. From this page, you can log in to the IDIS practice area as well as the IDIS "production" area.
To login to IDIS, scroll down the page to the map and click on the region of the map that includes your state. Alternatively, click on your state's name below the map. This will take you to the WEB390 login page.
Enter the WEB390 ID you were assigned along with your WEB390 password. The WEB390 ID is also called your "wi" number. It will never change, nor will your WEB390 password.
If you enter the correct credentials, you will go to what some call the "house" screen.
Here you should see your local time and date in the top right corner, and under the HUD logo:
"Current 3270 connection status: NOT CONNECTED". (If it does not say this, it means that someone else did not log off correctly or the browser hung up and was for ced to close. You will need to wait until the system resets.) You will see a drop- down box below that ... ignore it. You will also see a button "LOGON" and a row of buttons: "RESHOW"; "ATTN"; "LOGOFF”; and “Get Reports/Data”.
DRAWDOWN FUNDS
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Four basic steps are necessary to draw down funds for CDBG, HOME, ESG, or HOPWA. These four steps must be followed in order. A helpful way to remember this order is the acronym "JAID", which refers to the letters on the IDIS Main Menu that access these functions.
STEP 1: CREATE A PROJECT
Projects serve as an organizational structure under which activities can be set up in IDIS. They connect activities with a specific Consolidated Plan year. In many cases, HUD automatically loads projects into IDIS from Annual Action Plans at the beginning of each grantee's program year. If the grantee chooses to load its own projects, it must create them at the start of its program year.
The IDIS Reference Manual provides more detailed explanation of Setting Up, Approving, and Revising Projects (see website below):
http://portal.hud.gov/hudporlal/HUD?src=/program_offices/comm_planning/atfordablehousin g/programs/home/home_idis_manual_pj
STEP 2: SET UP AN ACTIVITY
Setting up an activity in IDIS is a prerequisite to committing and drawing down funds and reporting on the progress of your program initiatives throughout the year. Activities provide a way to report on the work underway for a project and are the level where funds are committed and drawn. Setting up an activity is a two -part process. The first part involves entering data on four activity setup screens, often called the "Common Path", that are similar regardless of the program. On the fourth screen (called the "money screen"), enter the budgeted amount and indicate the formula grant program(s) that will fund this activity. The second part of setting up an activity involves entering information on screens in the "Program Path", which are different for each grant program.
The IDIS Reference Manual provides a more detailed explanation of Setting Up the Activity Common Path in Chapter 4.
IDIS MATRIX CODES
Assigning correct matrix codes and national objectives to activities is important, not only in recording the eligibility of activities, but also inaccurately reporting accomplishment data. The matrix code and national objective selected for an activity generally identify the purpose for which assistance is provided and determine the type of accompli shment units that should be reported. The IDIS Reference Manual provides definitions of matrix codes in Appendix B.
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• CDBG Cross Reference Matrix
All CDBG activities must be assigned a matrix code and a national objective code. Grantees across the country must be consistent in uniformly applying matrix codes and national objectives to activities.
STEP 3: FUND THE ACTIVITY
This step consists of committing the funds budgeted for the activity from the program(s) that will fund it. The Activity Funding process allows you to fund an activity from grants, subfunds, receipt funds, or subgrants. You identify each grant, subfund, receipt fund, or subgrant and the amount of funds to be committed from the funding source to an activity.
The IDIS Reference Manual provides a more detailed explanation of Activity Funding in Chapter
5. STEP 4: DRAWDOWN FUNDS
A drawdown, also called a voucher, is a request for payment against a grantee's line of credit for services performed in support of one or more activities. Grantees draw funds as required to pay for work that has occurred for an activity. A separation of duties policy is applicable under certain circumstances.
The IDIS Reference Manual provides a more detailed explanation of Creating and Approving Drawdowns in Chapter 7.
STEP 5: REPORT ACCOMPLISHMENTS
HUD requires reliable, comprehensive information regarding program performance in order to comply with the Government Performance and Results Act of 1993, fulfill reporting requirements for Congress and other stakeholders, measure progress made in meeting Business and Operating Plan goals, monitor grantee performance, and evaluate overall program results.
For detailed reporting instructions, CDBG grantees may refer to Guidance for Reporting CDBG Accomplishments in IDIS.
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11. ENVIRONMENTAL OVERVIEW
OVERVIEW
This section of the manual will provide an overview of the HUD environmental review and National Environmental Policy Acts (NEPA) requirements. There is an entire part of federal regulations (24 CFR 58) dedicated to describing these requirements and compliance with them.
There are also several "related acts" and Executive Orders that impose environmental requirements on recipients of CDBG funds. These laws are listed at http://www.hud.gov/offices/cpd/environment.
LEVEL OF REVIEW DETERMINATION
The initial step of the process is to determine which "level of review" is appropriate for the activity being considered. There is a model form for this provided by the HUD San Francisco field office.
LEVELS OF REVIEW
EXEMPT
The following activities are by their nature not considered by HUD to have a significant environmental impact. (See Appendix for sample Exempt Activities Checklist).
• Environmental and other studies, resource identification, and the development of plans and strategies;
• Information and financial services;
• Administrative and management activities;
• Public services that will not have a physical impact or result in any physical changes, including but not limited to services concerned with employment, crime prevention, child care, health, drug abuse, education, counseling, energy conservation and welfare or recreational needs;
• Inspections and testing of properties for hazards or defects; • Purchase of insurance;
• Purchase of tools;
• Engineering or design costs;
• Technical assistance and training;
• Assistance for temporary or permanent improvements that do not alter environmental conditions and are limited to protection, repair or restoration activities necessary only to control or arrest the effects from disasters or imminent threats to public safety including those resulting from physical deterioration; and
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• Payment of principal and interest on loans made or obligations guaranteed by HUD.
The only requirement is to review compliance with flood hazards, flood insurance/disaster assistance, coastal barriers, and airport clear zones. These are referred to as "the authorities listed at 24 CFR 58.6”.
The level of review determination form includes a section to address 24 CFR 58.6. No further review is necessary.
CATEGORICALLY EXCLUDED, NOT SUBJECT TO 58.5
These "categorically excluded" activities do not require an EIS or EA except under "extraordinary circumstances" as defined at 58.2(a)(3) (see Appendix for sample Categorically Excluded Checklist).
These following activities are by their nature not considered to have an impact that would require environmental review:
• Tenant-based rental assistance;
• Supportive services including, but not limited to, health care, housing services, permanent housing placement, daycare, nutritional services, short-term payments for rent/mortgage/utility costs, and assistance in gaining access to local, State, and Federal government benefits and services;
• Operating costs including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training and recruitment and other incidental costs; • Community Development activities, including but not limited to, equipment purchase, inventory financing, interest subsidy, operating expenses and similar costs not associated with construction or expansion of existing operations;
• Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction, including dosing costs and down payment assistance, interest buydowns, and similar activities that result in the transfer of title; • Affordable housing pre -development costs including legal, consulting, developer and other costs related to obtaining site options, project financing, administrative costs and fees for loan commitment s, zoning approvals, and other related activities which do not have a physical impact; and
• Approval of supplemental assistance (including insurance or guarantee) to a project previously approved under this part, if the approval is made by the same responsi ble entity that conducted the environmental review on the original project and re-evaluation of the environmental findings is not required under Sec. 58.47.
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assistance, coastal barriers, and airport clear zones. These are referred to as "the authorities listed at 24 CFR 58.6”.
The level of review determination form includes a section to address 24 CFR 58.6. No further review is necessary.
The only significant difference between "exempt" and "categorically excluded, not subject to
58.5" is that the latter are subject to further review if It is determined that there are "extraordinary circumstances and conditions" that would have an environmental effect. [24 CFR
58.35(c)].
CATEGORICALLY EXCLUDED, SUBJECT TO 58.5
Categorically excluded activities do not require an EIS or EA except under "extraordinary circumstances" as defined at 58.2(a)(3).
The following activities are by their nature not considered to have an impact that would require review under NEPA:
(1) Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities and improvements (other than buildings) when the facilities and improvements are in place and will be retained in the same use without change in size or capacity of more than 20 percent (e.g., replacement of water or sewer lines, reconstruction of curbs and sidewalks, repaving of streets).
(2) Special projects directed to the removal of material and architectural barriers that restrict the mobility of and accessibility to elderly and handicapped persons.
(3) Rehabilitation of buildings and improvements when the following conditions are met:
(i) In the case of a building for residential use (with one to four units), the density is not increased beyond four units, the land use is not changed, and the footprint of the building is not increased in a floodplain or in a wetland;
(ii) In the case of multifamily residential buildings:
(A) Unit density is not changed more than 20 percent;
(B) The project does not involve changes in land use from residential to non- residential; and
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(C) The estimated cost of rehabilitation is less than 75 percent of the total estimated cost of replacement after rehabilitation.
(iii) In the case of non-residential structures, including commercial, industrial, and public buildings:
(A) The facilities and improvements are in place and will not be changed in size or capacity by more than 20 percent; and
(B) The activity does not involve a change in land use, such as from non-residential to residential, commercial to industrial, or from one industrial use to another.
(4) [Blank]
(i) An individual action on up to four dwelling units where there is a maximum of four units on any one site. The units can be four one-unit buildings or one four-unit building or any combination in between; or
(ii) An individual action on a project of five or more housing units developed on scattered sites when the sites are more than 2,000 feet apart and there are not more than four housing units on any one site.
(iii) Paragraphs (a)(4)(i) and (ii) of this section do not apply to rehabilitation of a building for residential use (with one to four units) (see paragraph (a)(3)(i) of this section).
(5) Acquisition (including leasing) or disposition of, or equity loans on an existing structure, o r acquisition (including leasing) of vacant land provided that the structure or land acquired, financed, or disposed of will be retained for the same use.
(6) Combinations of the above activities.
Review of compliance with flood hazards, flood insurance/disaster assistance, coastal barriers, and airport clear zones is required (58.6).
Review of the factors under 24 CFR 58.5 is required for these activities. These are referred to as "the related laws and authorities”. The HUD San Francisco Field Office has provided a model “statutory review checklist”.
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ENVIRONMENTAL ASSESSMENT "EA"
An Environmental Assessment or "EA" is required if a project is not found to be categorically excluded or exempt.
The regulations specify how to prepare an Environmental Assessment and the public notices and public review periods that must be followed. These are in "Subpart E" of Section 58.
The HUD San Francisco Field Office has provided a model Environmental Assessment form.
ENVIRONMENTAL IMPACT STATEMENT "EIS"
An Environmental Impact Statement or "EIS" is required when "the project is determined to have a potentially significant impact on the human environment”.
There are also several specific circumstances that require the preparation of an Environmental Impact Statement. These are listed at 58.37(b).
Below is a table summarizing the various levels of review.
Level of Review Definitions Required Review Documents
Exempt 58.34 58.6 • Level of Review
Determination/58.6
Review
Categorically
Excluded, not subject
to 58.5
58.35(b) 58.6 • Level of Review
Determination/58.6
Review
Categorically
Excluded, subject to
58.5 58.35(a) 58.6
• Level of Review
Determination/58.6
Review
• Statutory Worksheet
Environmental
Assessment
58.36 58.5
58.6 EA
• Level of Review
Determination/58.6
Review
• Statutory Worksheet
• EA
Environmental Impact
Statement
58.37 58.8
58.6 EIS
• Level of Review
Determination/58.6
Review
• Statutory Worksheet
• EIS
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EXTRAORDINARY CIRCUMSTANCES
The "extraordinary circumstances" referred to above are defined in the regulations at 24 CFR
58.2(a)(3).
(3) Extraordinary Circumstances means a situation in which an environmental assessment (EA) or environmental impact statement (EIS) is not normally required, but due to unusual conditions, an EA or EIS is appropriate. Indicators of unusual conditions are:
(i) Actions that are unique or without precedent;
(ii) Actions that are substantially similar to those that normally require an EIS;
(iii) Actions that are likely to alter existing HUD policy or HUD mandates; or
(iv) Actions that, due to unusual physical conditions on the site or in the vicinity, have the potential for a significant impact on the environment or in which the environment could have a significant impact on users of the facility.
"58.6" REVIEW
The model “Level of Review Determination" worksheet provided walks you through the review for the "58.6" requirements. It is a "yes/no”, “if/then" format. You proceed until you have hit a line that indicates "the review of this factor is complete”.
CONVERSION TO EXEMPT
PUBLIC NOTICE
Grantees must provide the public with the following minimum comment periods:
• Notice of Finding of No Significant l5 days when published or, if Impact (FONSI). No publication, 18 days when mailing and posting
• Notice of Intent to Request Release 7 days when published or, if no of Funds (NOI-RROF) Publication, 10 days when mailing and posting
• Concurrent or combined notices l5 days when published or, if no publication, l8 days when mailing and posting
FONSI/RROF
(a) If the responsible entity makes a finding of no significant impact, it must prepare a FONSI notice, using the current HUD-recommended format or an equivalent format. As 272
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a minimum, the responsible entity must send the FONSI notice to individuals and groups known to be interested in the activities, to the local news media, to the appropriate tribal, local, State and Federal agencies; to the Regional Offices of the Environmental Protection Agency having jurisdiction and to the HUD Field Office (or the State wh ere applicable). The responsible entity may also publish the FONSI notice in a newspaper of general circulation in the affected community. If the notice is not published, it must also be prominently displayed in public buildings, such as the local Post Office and within the project area or in accordance with procedures established as part of the citizen participation process.
(b) The responsible entity may disseminate or publish a FONSI notice at the same time it disseminates or publishes the NOI/RROF required by Sec. 58.70. If the notices are released as a combined notice, the combined notice shall:
(i) Clearly indicate that it is intended to meet two separate procedural requirements:
and
(ii) Advise the public to specify in their comments which "notice" their comments address.
(c) The responsible entity must consider the comments and make modifications, if appropriate, in response to the comments, before it completes its environmental certification and before the recipient submits its RROF. If funds will be used in Presidentially declared disaster areas, modifications resulting from public comment, if appropriate, must be made before proceeding with the expenditure of funds.
RELEASE OF FUNDS
The certification form executed by the responsible e ntity's certifying officer shall be sent to the recipient that is to receive the assistance along with a description of any special environmental conditions that must be adhered to in carrying out the project. The recipient is to submit the RROF and the certification of the responsible entity to HUD (or the State, if applicable) requesting the release of funds.
PROCESS/FLOW
Level of review – Make it clear from project description and LOR determination why this LOR is appropriate.
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BEST PRACTICES AND GENERAL PRINCIPLES
The most important thing to remember about the environmental review process is to never expend funds or contract to expend funds before the review process is completed.
IDIS
In the Integrated Disbursement and Information System (IDIS) activity set up path there is a screen (C04MA03) that has a place to indicate the “environmental assessment code”. If the activity is set up in IDIS before the environmental review is complete, this field should be left blank. The field must be completed before the activity can be funded.
Note that a complete environmental review may be when the record is complete or later when a release of funds has been received from HUD. It will depend on the particular level of review.
For all activities except those requiring an Environmental Assessment (EA) or Environmental Impact Statement (EIS), an "A" should be entered in the field to indicate the activity does not require an EA or EIS. IDIS will show the project as "exempt.'' This is t he case even for those that are categorically excluded.
If an EA or EIS is required, a "D" may be entered for "underway" while the EA or EIS is being conducted. It is not required.
Once the EA or EIS is completed, a "C" is entered for "completed”.
Status Enter into “environmental
assessment code” field
ER incomplete Leave Blank
ER completed, finding of exempt or
categorically excluded (Anything but EA or
EIS)
“A” for exempt
EA or EIS required, but not completed “D” for underway
EA or EIS completed “C” for completed
12. PROCUREMENT
OVERVIEW
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This section will provide an overview of the HUD standards for Federal procurement requirements located at “Procurement Standards” at 2 CFR Part 200.317-326. In addition to these requirements, the "other program requirements" in Sub-Part K of the Part 570 should be reviewed when procuring goods and services. For example, the rules regarding contracting opportunities, the Americans with Disabilities Act (ADA) and environmental standards may be relevant.
The regulations that specifically address procurement include 2 CFR Part 200.317-326.
Procurement of goods and services by both the grantee and any sub- grantees or sub-recipients are all controlled by federal regulation. These requirements pass through with federal funds.
Any state or local regulations should also be considered. The most stringent requirement should be followed.
Although there are very specific requirements for procurement using CDBG, there are a few general guidelines that apply to assure a quality process:
• Provide dear standards for the quality and nature of the goods and services to be provided;
• Assure a competitive process that results in the best possible product for a reasonable price;
• Provide a purchase agreement or contract that clearly states the obligations of each party; • Maintain adequate records of the process; and
• Have a system in place to verify that the goods or services provided are as specified.
TYPES OF PROCUREMENT
In general, procurement processes can be grouped into four types:
1. Small purchases;
2. Sealed bid;
3. Competitive proposal (RFP/RFQ); and
4. Non-competitive.
SMALL PURCHASES
This is the most common form of procurement that most grantees, sub- grantees and sub- recipients will use. It is the least formal and the most flexible. It is permissible only for purchases that fall under $100,000. Publication of a formal request for proposals (RFP) or an invitation to bid is not required. This is most often used to procure materials, equipment or professional 275
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services. It is not typically used for construction contracts nor is it recommended.
The purchaser identifies several potential vendors and solicits quotes or bids from those vendors.
The purchaser reviews the received quotes or bids and selects the best one.
SEALED BID
This method is characterized by a formal bid notice, the submission of sealed bids, and the award of a fixed-price contract. Sealed bidding is preferred for construction.
Bids are solicited through formal public notice or advertisement. Solicitations should be circulated to trade groups, unions, and builders' exchanges.
The contract is awarded to the lowest responsible bid. As the regulations state, the contract is awarded to the lowest bid which, "[conforms] with all the material terms and conditions of the invitation for bids...” If there is a "sound documented reason", one or even all bids may be rejected.
• The sealed bid process works when there are:
o A clear well-defined and detailed scope of work or product specification(s); o At least two bidders able to offer competitive pricing; and o The good or service lends itself to a fixed-price contract and selection can best be made based on competitive pricing.
HUD has set forth the following minimum requirements for sealed bid procurement:
• The bid solicitation must be publicly advertised;
• Bids must be solicited from an "adequate" number of potential vendors; • Bidders must be given "sufficient" time to develop a bid; • The bid solicitation must include all the specifications, background information, and a definition of the goods or services required for the bidder to be able to develop and submit a complete bid; and
• The solicitation must state the place, time and date of the public bid opening.
Although not specifically mentioned in the regulations, late bids should not be accepted. Bids must be opened at the time and place stated. Bid results must be made public.
The contract or purchase agreement must be awarded to the "lowest responsive and responsible bidder”. As stated before, any or all bids may be rejected for a "sound" reason that is well - documented. Bids that are incomplete or that fail to consider the entire scope of work or provide goods or services that are not those specified may be considered "not responsive”. Bids that propose a price that is judged to be grossly insufficient to complete the scope of work or from 276
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bidders who appear to lack the basic qualifications to complete the work can be considered to be "not responsible”. In all cases, the evaluation of the bids received must be documented and the selection of the bidder justified.
COMPETITIVE PROPOSAL (RFP/RFQ)
Competitive sealed proposals are used in two instances:
1. The acquisition of any engineering or architecture services, or
2. The purchase of other professional services where the total cost will exceed $100,000.
Under this procurement method, the Recipient must publish a written request for submissions and then review these submissions based on established selection criteria. This method of procurement differs from the small purchases method in that the solicitation must be published and cannot be restricted to a smaller or limited number of bidders. Under this approach, there are two possible methods of soliciting proposals:
1. A Request for Proposals asks that officers submit both qualifications and cost information.
2. A Request for Qualifications only asks for information on the offeror’s expertise/experience and not on cost.
When acquiring any service that is not architecture or engineering, the full RFP process must b e used. For example, if the City were to hire a for-profit HOME Program contract administrator and that contract exceeded $100,000, an RFP would be required.
When acquiring architectural or engineering services, either a RFP or a RFQ may be used. The City recommends the use of an RFP process when feasible or practical, since it provides the recipient additional information.
Request for Proposals (RFP): When a RFP process is required, the City must develop a written document outlining the scope of the services and the selection criteria. The scope must be sufficiently detailed so that potential bidders are able to develop effective pricing proposals and submit appropriate qualifications.
Request for Qualifications (RFQ): The RFQ process may only be used in two instances:
1. For complicated architectural or engineering services, or
2. When the RFQ is used to narrow a pool of potential bidders and a formal RFP will follow .
In any other competitive proposal instance, the RFP must be used. The RFQ process does 277
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not request cost information at the time of solicitation.
NONCOMPETITIVE PROPOSALS
Procurement by noncompetitive proposals is procurement through solicitations of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate.
Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals and one of the following circumstances applies:
a. The item is available only from a single source;
b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
c. The City authorizes noncompetitive proposals; or
d. After solicitation of a number of sources, competition is determined inadequate.
IN GENERAL
The form specified for the quote or bid should allow the purchaser to accurately compare the cost of the goods or services.
Single purchases that would logically follow in sequence or typically be a single service, good or "work" may not be broken down into parts to be procured separately to avoid a formal procurement process.
The goal is to obtain a reasonable and responsible price. The lowest price doe s not need to be taken if the selected vendor's price can be considered to be reasonable in comparison to others.
If the lowest price is not considered to be "responsible" it should not be accepted. Such a price would be considered to be infeasible or would for some reason have been determined to have failed to consider the full scope of work or the desired quality of product.
Let your bidders know how you will decide and when. This not only includes your decision criteria, but the process that will be used. Will there be interviews or follow-up questions?
Make your process transparent. If they ask, let your bidders know who responded. After the selection process, you should be willing to reveal the responses and discuss your selection decision. If you are not, some firms may request this information through a formal public information request. This is much more expensive and time-consuming for all involved. Your goal 278
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is to always get better bids. Letting an un- successful bidder know how they came up short may make for a better bid next time.
Document the procurement process. This includes when actions were taken to solicit, when responses were received, when decisions were made and why.
If a bidder asks a clarifying question, the question and response should be shared with all bidders.
Each vendor should be given the same information on the desired goods or services. The requests should be made at the same time and each potential vendor should be required to return the quote or bid on the same date and time.
Aside from selecting the method of procurement, there are several other considerations the City of Rialto adhere to when procuring goods or services with Federal funds including:
Conflict of Interest
1. A written code of conduct must be maintained to help prevent conflicts of interest in procurement.
2. The written code of conduct must apply to all employees, officers, agents of the City or its Recipient, and members of their immediate family, and partners.
3. The code shall prevent financial interest or other benefits earned for any of these persons due to a HOME Program-related procurement action. These persons also cannot solicit or accept gratuities, favors or other items of monetary value from contractors.
Excluded Parties
1. The City must adhere to the prohibitions in 2 CFR Part 2424 on the use of debarred, suspended, or ineligible contractors. A person who is debarred or suspended shall be excluded from Federal financial and nonfinancial assistance and benefits under Federal programs and activities.
2. Federal funds may not be used to directly or indirectly employ, award contracts to, or otherwise engage the services of any contractor during any period of debarment, suspension, or placement on ineligibility status.
3. The City should regularly check all contractors, subcontractors, and lower-tier contractors against the Federal publication that lists debarred, suspended, and ineligible contractors.
4. In addition, the City should check this list before signing any contract with contractors or 279
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subcontractors.
5. Information on parties excluded from Federal procurement and non-procurement programs is available at www.sam.gov.
Minority/Woman-Owned Business Enterprises
1. The City of Rialto is required by Federal law to ensure that minority and women - owned business have information about and the opportunity to bid on federally funded competitive contracts.
2. The City is required by law to use minority and women’s businesses whenever possible.
13. OTHER FEDERAL REQUIREMENTS
OVERVIEW
This final section of the manual is designed to deliver a brief overview of some related federal requirements that will need to be considered by a grantee when working with federal CDBG funds.
LABOR STANDARDS (570.603)
To ensure that employment standards are maintained and workers are being compensated fairly for their labor, grantees using federal funds through HUD must comply with required labor standards, otherwise known as Davis-Bacon. The Davis-Bacon and Related Acts, apply to contractors and subcontractors working on federally funded or assisted contracts in excess of $2,000 for the construction or repair of public buildings or public works. Contractors are required to pay their employees no less than the local prevailing wages and fringe benefits determined by the Department of Labor. Refer to http://www.wdol.gov to find prevailing wage rates.
FAIR HOUSING (570.601)
Under the Fair Housing Act, HUD is obligated to uphold fair housing laws and requires grantees of HUD CDBG funding to commit to furthering fair housing within their community. As part of this commitment grantees are required to conduct an Analysis of Impediments to Fair Housing Choice (AI) and take appropriate actions to overcome any impediments to fair housing identified through the AI process. Fair housing laws assist in eliminating racial and ethnic segregation, illegal physical barriers, barriers to persons with disabilities, and discriminatory practices in housing. The grantee is encouraged to complete an AI with the update of their Consolidated Plan or every five years.
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Fair Housing regulations can be found on HUD’s website at www.hud.gov. There is also a Fair Housing Planning Guide available on the website that provides fair housing information and assists in the completion of an AI.
NON-DISCRIMINATION (570.602—SECTION 109)
Grantees receiving federal funding through HUD are required to certify that no person will be denied access or participation in a program based on the grounds of race, national origin, religion, sex, age, or disability status. When submitting the Consolidated Plan and Annual Action Plan the grantee will have to sign the required certifications to attest that the grantee will commit to the non-discrimination requirements
RELOCATION/DISPLACEMENT (570.606)
Grantees of HUD funding are required to certify and assure that all reasonable steps will be taken to minimize the displacement of persons, families, businesses, non -profit organizations, and farms from their homes or place of business as a result of activities undertaken by the grantee, such as rehabilitation or demolition activities. The grantee must adopt an anti-displacement and relocation plan that the jurisdiction will follow in cases where relocation is necessary.
See HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition on HUD's website for further information and requirements on relocation/displacement.
EQUAL OPPORTUNITY (570.607)
CDBG regulations stale that no person shall be subject to discrimination under any program funded in whole or in part by CDBG funds. CDBG grantees/sub- grantees must take measures to ensure non-discriminatory treatment, outreach and access to program resources. This applies to employment and contracting, as well as to marketing and selection of program participants.
The Office of Fair Housing and Equal Opportunity also enforces federal laws to create equal housing opportunities for all persons. HUD implements and enforces the Fair Housing Act, the Civil Rights Act, the Housing and Community Development Act and others to ensure equal opportunity.
LEAD-BASED PAINT (570.608)
Grantees are required to identify and mitigate lead hazards when undertaking housing rehabilitation or homeownership activities for homes built before 1978. These regulations must be carefully followed to ensure that exposure to lead hazards is reduced in any residential property to be rehabilitated or purchased. The regulation can be found at 281
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http://portal.hud.gov/hudportal/HUD?src=/programoffices/healthy_homes/enforcement/lshr.
SECTION 504/REASONABLE ACCOMMODATION
Recipients are required to take affirmative steps to ensure that qualified persons with disabilities are informed of the availability of program services and activities, and the Recipient's activities or services are readily accessible to, and usable by, individuals with disabilities. Recipients must provide handicapped persons with benefits and services that are as effective as those provided to non-handicapped individuals. They must ensure that CDBG programs and activities are accessible, both structurally and administratively, to handicapped and disabled persons.
Recipients are responsible for providing access to handicapped/disabled persons in four areas:
communications, employment opportunities, program benefits, and physically accessible housing. Section 504 regulations can be found on HUD's website at http://www.hud.gov/offices/fheo/disabilities/index.cfm.
LIMITED ENGLISH PROFICIENCY
HUD-funded recipients should ensure that if working with Limited English Proficient (LEP) populations that guidance is provided to make sure that LEP persons have sufficient access to HUD programs and activities.
For further information on Limited English Proficiency please see HUD's website at http://www.hud.gov/offices/fheo/promotingfh/lep.cfm.
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14. APPENDICES
LOS ANGELES FIELD OFFICE
United States Department
of Housing & Urban
Development (HUD)
Los Angeles Field Office
300 North Los Angeles
Street, Suite 4054
Los Angeles, CA 90012
Phone: (213) 894 - 8000
Fax: (213) 894-8107
Laurie Cannady Udit
Field Office Director Region
HUD WEB SITE
http://www.hud.gov
TRAINING
"Basically CDBG" Course Training Manual
http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevel opment/training/basicallycdbg
HUD EXCHANGE – CDBG: COMMUNITY DEVELOPMENT BLOCK GRANTS CDBG: Community Development Block Grants
https://www.hudexchange.info/programs/cdbg/
THE CODE OF FEDERAL REGULATIONS (CFR)
https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title24/24cfr570_main_02.tpl
PROGRAM RELATED DOCUMENTS
Request for
Reimbursement Public
Service Application
Subgrantee On-Site Monitoring
Checklist Determination of Exemption
Determination of Categorical Exclusion
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REQUEST FOR REIMBURSEMENT
City of Rialto
Community Development Block Grant Program – XXXX/XXXX
REQUEST FOR REIMBURSEMENT
Agency Name
Program Name
Agency Address
Quarter or Month
Approved CDBG Budget
CDBG Disbursements to Date
Available CDBG Balance to Date
(Including the Total Requested
Below)
Date of
Invoice Description of Purchase/Expenditure Amount
Requested
TOTAL
Note – Please attach proof of expenditure: receipts, invoices, statements, etc. The City will not process any reimbursement request without proof of expenditure.
Acknowledgement and Disclaimer.
I certify that this organization has not previously billed the City of Rialto for the costs covered in this invoice.
Name, Title Signature of Authorized Representative Date
For Office Use Only
Date
Received:
Reviewed
By:
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COMPLETE QUARTERLY REPORT
A complete quarterly report includes the following:
☐ Request for Reimbursement Form (this form)
☐ Original Invoice – the invoice shall be addressed to the City and include your organization logo, address, and contact information
☐ Proof of Expenditure – receipts, invoices, bids/estimates, cancelled checks, etc.
The City will not process any reimbursement request without proof of expenditure. ☐ Completed Quarterly Performance Report
☐ Participant Data Forms – completed and signed
☐ Proof of Participation – sign-in sheets, rosters, etc. ☐ Supporting Income Documentation for Participant Data Forms – only if required
DELIVER TO
When complete, submit all required documents by the required deadline to
Community Services Department
City of Rialto
150 S Palm Ave
Rialto, CA 92376
DEADLINES
Provide the Complete Quarterly Report to the Person named above by the appropriate deadline.
QUARTER
TIME PERIOD
from
to
DEADLINE
1 July 1 September 30 October 31
2 October 1 December 31 January 31
3 January 1 March 31 April 30
4 April 1 June 30 July 31
Annual Report* July 1 June 30 July 31
* The Annual Report requires a separate, more in-depth report form
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PUBLIC SERVICE APPLICATION
City of Rialto
Community Development Block Grant
Fiscal Year 2022/202
PUBLIC SERVICE APPLICATION
DEADLINE
The Deadline for returning completed applications is 5:00 p. m., Thursday, February 17, 2021. Postmarks and late applications will not be accepted. All application must be mailed to:
Rialto Administrative Services Department, Deputy City Manager Office City of Rialto
150 S. Palm Ave,
Rialto, CA 92376
REQUIRED REVIEW
Prior to submitting a proposal, it is required that you review "Playing by the Rules: A Handbook for CDBG Sub- recipients on Administrative Systems". Please pay special attention to chapters two and five. The handbook can be located at the following link:
https://www.hudexchange.info/resource/687/playing-by-the-rules-a-handbook-for-cdbg-subrecipients- on-administrative-systems/
REQUIRED DOCUMENTS
Please submit the following information along with your completed application by the abovementioned deadline.
☐ Completed and Signed Application – Parts I-VI
☐ Articles of Incorporation
☐ Non-Profit Determination – 501(c)3 IRS Letter (if applicable) ☐ List of Board of Directors
☐ Organizational Chart
☐ Most Recent Audited Financials
☐ Resumes of Key Administrators
☐ Job Descriptions for Personnel/Positions Listed in Application ☐ Most Recent Certificates of Insurances.
CONTACT
If you have any questions regarding the City of Rialto’s Community Development Block Grant (CDBG) funded program, please contact:
Contact
Phone
Email
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I. APPLICANT AND PROJECT/ACTIVITY INFORMATION
Legal Name of
Organization/Agency
Program/Activity Title
Physical Address
City, State, ZIP
Type of Organization ☐ Non-Profit ☐ Government ☐ For-Profit Tax ID
Are you a Women owned, or a
majority Women operated
organization?
☐ Yes ☐ No ☐ Decline to state Are you a Minority owned, or a
majority Minority operated
organization?
☐ Yes ☐ No ☐ Decline to state If yes, please select which
category or categories is most
applicable.
☐ Black Americans ☐ Native Americans ☐ Hispanic Americans ☐ Asian/Pacific Americans ☐ Hasidic Jews
DUNS Number
Name of Workers’ Compensation
Insurance (Government exempt)
Coverage Amount ($)
Expiration Date
Name of General Liability and
Property Damage Insurance
(Government exempt)
Coverage Amount ($)
Expiration Date
Name of Applicant Contact
Title
Mailing Address
City, State, ZIP
Email
Phone
Amount of CDBG Funds
Requested ($)
Approximate Total Number of
Unduplicated Beneficiaries
(Persons or Households) to be
Served
Type of Beneficiary ☐ Persons ☐ Households Groups that the Program/Activity
will Serve
(Check all that apply)
☐ Youth
☐ Adults
☐ Seniors
☐ Homeless Persons
☐ Disabled Persons
☐ Battered Spouses
☐ Abused/Neglected Children
☐ Households
☐ Community
☐ Housing Units
☐ Public Facilities
☐ Businesses
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II. CDBG ELIGIBILITY
CDBG Eligible Activity Categories
Please choose the CDBG Eligible
Activity Category for your
proposed project.
☐ Public Service. Improves community public services and facilities, including but not limited to those concerned with employment, fair housing and homeownership, homelessness, crime prevention, child care, health, drug abuse, education or recreational needs. ☐ Public Facilities/Improvements
☐ Housing/Special Activities by Subrecipients
☐ Economic Development
☐ Acquisition and/or rehabilitation of real property
☐ Other. Click to specify
CDBG National Objective
Compliance
Your proposed project/activity
must meet at least one of HUD’s
CDBG National Objectives.
Please check all that apply to
your proposal.
☐ Benefits Low and Moderate Income (LMI) Individuals/Households. ☐ Addresses the prevention or elimination of slums or blight.
Meetings National Objectives
Check all statements that
describe how your proposed
project/activity meets one of the
National Objectives above:
☐ Low/Moderate Area Benefit – The project serves only a limited area which is proven by current Census data or survey to be a low-income area. By choosing this category you must be able to prove your project/activity primarily benefits low/moderate income households. ☐ Low/Moderate Limited Clientele – The project/activity benefits a specific group of people (rather than all areas in a particular area), at least 51% of whom are low/moderate income persons. Income verification for clients must be provided for this category. The following groups are presumed to be low/moderate: abused children, elderly persons (62 or older), battered spouses, homeless persons, adults meeting the Census definition of severely disabled, illiterate adults, persons living with AIDS and migrant farm workers.
☐ Slum or Blight on an Area Basis – Area basis activities must be within an officially designated area as defined under State or local law, and addresses one or more of the conditions that contributed to the deterioration of the area.
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III. PROJECT NARRATIVE
PROJECT/PROGRAM DESCRIPTION. Briefly describe the proposed service/activity/project to be carried out with the funds requested.
COMMUNITY NEED. Does your proposed project/activity address an identified gap in service or current need in the community? Document the need for the project/program.
BENEFIT. Discuss how the project/program provides benefit to low-income persons.
COLLABORATION. Has your organization/agency developed this project in collaboration with other groups/organizations? If so, please list the groups/organizations and describe their roles in this project.
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SIMILAR RESOURCES. Is a similar service provided by another agency/organization? If so, how will your program/activity differ?
OUTREACH. Discuss outreach efforts for the proposed service/activity/project.
PERFORMANCE SCHEDULE. Prepare a Work Plan for implementation/completion of the services and activities. Identify activities and completion dates below.
Activity Completion Date
OTHER SOURCES OF FUNDS. List all other funding sources that will be used to undertake the proposed project/program and status of each source.
Source Name Committed or
Pending
Fund Amount ($) Current Status
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IV. PROPOSED PUBLIC SERVICE BUDGET
Scope of work and use of CDBG funds must be directly related. The CDBG funds requested must be used to provide a direct benefit/service to low - or moderate-income residents of the City of Rialto . Proof of income eligibility and current residence must be acquired from all recipients. Adequate documentation must also be provided by the Agency to support costs associated with the services provided. This includes such support as timesheets to demonstrate the amount of time spent on each service, cancelled c hecks to demonstrate payment, client intake forms to demonstrate who received the service and any other documentation deemed necessary to show a direct correlation between the service provided and the costs associated with them.
Please use the following format to present your proposed line item budget:
Column A: List the items for which you anticipate the need for CDBG Funds during FY 20 22/2023.
Column B: Provide the projected request for CDBG funds.
Column C: Provide the total of other funds to be used.
Column D: List the name of the other funding source.
Column E: List the total line budget. Please round your request to the nearest ten.
Column A Column B Column C Column D Column E
BUDGET ITEM CDBG REQUEST
($)
OTHER SOURCES
($)
NAMES OF
OTHER SOURCES
TOTAL BUDGET
($)
Personnel*
Personnel Total
Non-Personnel
Rent/Lease
Supplies
Utilities
Equipment
Services
Printing
Admission/Enrollment
Other:
Other:
Other:
Other:
Other:
Other:
Non-Personnel Total
TOTAL PROJECT BUDGET
*For personnel, complete the following CDBG-Funded Personnel Tables. 291
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CDBG-FUNDED PERSONNEL
☐ Check this box if CDBG funds will NOT be used to fund personnel.
If CDBG funds will be used to fund personnel, complete the following tables, as appropriate. Only list personnel that will be paid with CDBG funds.
AGENCY ADMINISTRATION
Job Title Annual Salary
($)
Annual Benefits
($)
Total
Compensation
($)
CDBG Funds
Budgeted ($)
Time Position is
Dedicated to
CDBG Activity
(%)
PROPOSED PROGRAM STAFF
Job Title Annual Salary
($)
Annual Benefits
($)
Total
Compensation
($)
CDBG Funds
Budgeted ($)
Time Position is
Dedicated to
CDBG Activity
(%)
KEY PERSONNEL DUTIES. Provide a list of the duties of key personnel listed above.
Job Title Duties
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COST RATIONALE. If you consider it necessary, explain why your program/activity costs is reasonable.
PROGRAM CHANGES. If you received CDBG funding last year, has there been an increase in service that you will provide during FY 2022/2023? Explain why there is a new demand or an unmet need in the community for this service.
IMPACT OF NO CDBG FUNDING. Describe the effect of partial or no CDBG funding on your project/activity.
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V. CONFLICT OF INTEREST QUESTIONNAIRE
Federal, State, and City law prohibits employees and public officials of the City of Rialto from participating on behalf of the City in any transaction in which they have a financial interest.
This questionnaire must be completed and submitted by each applicant for CDBG program funding. The purpose of this questionnaire is to determine if the applicant, or any of the applicant’s staff, or any of the applicant’s Board of Directors would be in conflict of interest.
1. Is there any member(s) of the applicant’s staff or governing body who is or has been, within one year of the date of this questionnaire, (a) a City Employee or (b) a City Councilmember?
☐ Yes ☐ No
If Yes, please list the name(s) and information requested below:
Name of Person Job Title Relationship City Department
2. Will the CDBG funds requested by the applicant be used to award a subcontract to any individual(s) or business affiliate(s) who is currently or has been, within one year of the date of this questionnaire, (a) a City Employee or Consultant or (b) a City Councilmember?
☐ Yes ☐ No
If Yes, please list the name(s) and information requested below:
Name of Person Job Title Relationship City Department
3. Is there any member(s) of the applicant’s staff or member(s) of the applicant’s Board of Directors or other governing body who are business partners or family members of (a) a City Employee or (b) a City Councilmember?
☐ Yes ☐ No
If Yes, please list the name(s) and information requested below:
Name of Person Relationship Tie If Family, Indicate
Relationship
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VI. SIGNATURES
Authorized Signature
To the best of my knowledge, the information provided on this application is true, and I am authorized to submit this application on behalf of the applicant agency.
Print Name Title
Signature Date
Authorized Signature
I have read "Playing by the Rules: A Handbook for CDBG Subrecipients on Administrative Systems" with special attention to chapters two and five.
Print Name Title
Signature Date
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SUBGRANTEE ON-SITE MONITORING CHECKLIST
CITY OF RIALTO
Community Development Block Grant Program – XXXX/XXXX
Sub-Recipient On-Site Monitoring Checklist
Sub-Recipient Name
Project Name/Agreement No.
Project Address
Project Director
Other Project Contact(s)
Monitoring Conducted by
In-house review and general
oversight conducted on
On-site monitoring visit(s)
conducted on
Monitoring letter sent on
Follow-up monitoring visit
conducted/letter sent on
A. NATIONAL OBJECTIVE AND ELIGIBILITY
1 Which National Objective does this project meet? (570.208) a. Benefit to Low- and Moderate-Income Persons
i. ☐ Low/Mod Area Benefit
ii. ☐ Limited Clientele Benefit
iii. ☐ Low/Mod Housing Benefit
iv. ☐ Job Creation or Retention
b. Aid in the Prevention or Elimination of Slums or Blight i. ☐ On an Area Basis
ii. ☐ On a Spot Basis
c. An Urgent Need
i. ☐ Needs having a Particular Urgency
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2 Which eligibility category does the project meet? (570.201-6) 570.201(e) Public services. Provision of public services (including labor, supplies, and materials) including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, welfare (but excluding the provision of income payments identified under §570.207(b)(4)), homebuyer down- payment assistance, or recreational needs. If housing counseling, as defined in 24 CFR 5.100, is provided, it must be carried out in accordance with 24 CFR 5.111.
3 Is key reporting data obtained and verified? (e.g., ethnicity, disability, elderly, female head of household)
4 Is the Sub-Recipient using current HUD income guidelines to determine eligibility of beneficiaries?
B. CONFORMANCE TO THE SUB-RECIPIENT AGREEMENT
1 Contract Scope of Services – Is the full scope of services listed in the Agreement being undertaken? List any deviation.
2 Levels of Accomplishments – Compare actual accomplishments at the point of monitoring with planned accomplishments. Is the project achieving the expected levels of performance (number of persons served, number of units rehabbed, etc.) and reaching the intended client group? Explain any problem the Sub- Recipient may be experiencing. Acknowledge major accomplishments.
3 Time of Performance – Is the work being performed in a timely manner (i.e., meeting the schedule as shown in the Agreement)? Explain.
4 Budget – Compare actual expenditures versus planned expenditures. Verify maximum budget has not been exceeded and ensure all expenditures have occurred during the performance period. Note any discrepancies or possible deviations.
5 Requests for Payment – Are requests for payment being submitted in a timely manner and are they consistent with the level of work accomplished? Is program income properly accounted for and recorded? Explain.
6 Progress Reports – Have progress reports been submitted with payment requests (where required) on time and were they complete and accurate?
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7 Special Conditions – Does the project conform to any special terms and conditions included in the Sub- Recipient Agreement? Explain.
8 Litigation – Are there any legal actions or litigation against the Sub-Recipient? If yes, please explain.
9 Board Meetings – Does the Board of Directors meet on a regular basis? When? a. Are the Board Meetings available for review? When are the review dates?
C. RECORD-KEEPING SYSTEMS (570.506) – Records should demonstrate that each activity undertaken meets the criteria for National Objectives compliance. Such records should be found in both the grantee’s project file and the Sub-Recipient file.
1 Filing System – Are the Sub-Recipient’s files orderly, comprehensive, secured for confidentiality where necessary, and up-to-date? Note any areas of deficiency.
2 Documentation (activities, costs and beneficiaries) – Do the HCD project file and Sub-Recipient records have the necessary documentation supporting the National Objective being met, eligibility, and program costs as they relate to 570.506? Do the project files support the data the Sub-Recipient has provided for the CAPER? (i.e. Income verification documents for all assisted clients).
3 Record Retention – Is there a process for determining which records need to be retained and for how long? Have records been retained as required by the Agreement?
4 Site Visit (where applicable) – Is the information revealed by a site visit consistent with the records maintained by the Sub-Recipient and with data previously provided to the grantee? Explain any discrepancies.
a. Is the project manager located on-site and running the day-to-day operations? Does the staff seem fully informed about program requirements and project expectations? Explain. b. Is the project accomplishing what it was designed to do? Explain any problems.
D. FINANCIAL MANAGEMENT SYSTEMS [85.20 (LOCAL GOVERNMENTS) AND 84.21- 28 (NON-PROFITS)]
1 Systems for Internal Control – Are systems in compliance with accounting policies and procedures for 298
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cash, real and personal property, equipment and other assets (85.20(b)(3) and 84.20(b)(3))?
2 Components of a Financial Management System – Review the chart of accounts, journals, ledgers, reconciliation, data processing, and reporting system. Note any discrepancies.
3 Accounting – Compare the latest performance report, drawdown requests, bank records, payroll records, receipts/disbursements, etc. Note any discrepancies.
4 Eligible, Allocable, and Reasonable Costs – See OMB Circulars A-87, A-122. Pay particular attention to the time distribution records where the Sub-Recipient has employees who work on both CDBG and non- CDBG funded activities. Note any discrepancies.
5 Cash Management/Drawdown Procedures – See Treasury Circular 1075, 85.20(b)(7), and 84.20. Has all cash been promptly drawn down and deposited? Are all drawdowns of Federal funds properly recorded? Note any discrepancies.
6 Management of Program Income – If the Sub-Recipient generates program income, refer to 570.504 and the Sub-Recipient Agreement about its use. Note any discrepancies.
7 IPA Audit Reports/Follow-up – (OMB Circular A-133) Determine if the Sub-Recipient has expended $500,000 or more in Federal funds for the subject program year. a. IPA Audit Required?
i. ☐ Yes
ii. ☐ No
iii. ☐ N/A
b. Date Conducted:
c. Any findings related to CDBG activity? Status? Explain.
8 Maintenance of Source Documentation – (85.20(b) and 84.20(b)) Note any discrepancies in sample records, invoices, vouchers and time records traced through the system.
9 Budget Control – Do actual expenditures match the line item budget? Refer to 85.20(b)(4) and 84.20. Note any discrepancies.
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E. INSURANCE
1 Has the Sub-Recipient submitted a current copy of its Certificate of Insurance?
2 Is the City named as an additional insured?
3 Workers Compensation – Has the Sub-Recipient submitted proof of Worker’s Compensation for all of its employees involved in the performance of this Agreement?
F. PROCUREMENT
1 Procurement Procedures – Do the procedures the Sub-Recipient uses for procurement of goods and services meet CDBG requirements? Review a sample number of procurements. a. Are CDBG funds used to pay for consultant services?
i. If yes, what is the method for selecting consultants? ii. If yes, what types of services are provided by consultants?
2 Conflict of Interest – How does the Sub-Recipient assure there was no conflict of interest, real or apparent? Review the process and comment.
G. EQUIPMENT AND REAL PROPERTY
1 Has the Sub-Recipient acquired or improved any property it owns in whole or in part with CDBG funds in excess of $25,000? If yes, review for compliance with 570.503(b)(7).
2 Has the Sub-Recipient purchased equipment with CDBG funds in excess of $1,000? Does the Sub- Recipient maintain the records required at 84.34?
3 Was any equipment purchased, leased, or rented with CDBG funds? a. If yes, does the Sub-Recipient have procedures to adequately identify and safeguard CDBG property? b. Was equipment essential to the program?
c. Is there documentation for the acquisition?
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d. Were at least three (3) bids secured? If not, why?
e. Was the lowest bidder accepted? If not, why?
f. What method is implemented to prevent property loss?
4 Has a physical inventory taken place and the results reconciled with property records within the last two years?
5 If the Sub-Recipient disposed of equipment/property that was purchased with Federal funds within the last five years:
a. Were proceeds from the sale reported as program income? b. Did the grantee approve expenditure of program income? c. Was the program income returned to the grantee?
H. NON-DISCRIMINATION AND ACTIONS TO FURTHER FAIR HOUSING
1 Equal Employment Opportunity – Refer to 570.506, 601 and 602. Note any deficiencies.
2 Section 3 – Opportunities for Training and Employment for Local Residents – Refer to 570.506(g)(5) and 570.607(a) (affirmative action). Note any deficiencies. a. Has the required Section 3 language been included in all subcontract agreements as required on p.12 (3)(a) of the prime Sub-Recipient agreement with the City?
3 Fair Housing Compliance – Refer to 570.904 and 570.601(b). Note any deficiencies.
4 Requirements for Disabled Persons – Refer to 8.6. Note any concerns.
5 Women and Minority Business Enterprises – Refer to 570.506(g), 85.36(e), and 84.44, affirmative steps documentation. Note any concerns.
6 Affirmative Action – Has the Sub-Recipient submitted a plan for an Affirmative Action Program for approval prior to the award of funds? (See p.10 (B)(1) of City/Sub-Recipient agreement).
7 Is there any evidence of religious or political activities in CDBG projects?
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I. CITY/SUB-RECIPIENT AGREEMENT COMPLIANCE
1 City Recognition – Verify Sub-Recipient has recognized the role of the City in providing services through the agreement. All activities, facilities and items utilized pursuant to this agreement shall be prominently labeled as to funding source.
2 Staffing – Have there been any changes to key personnel assigned or their general responsibilities under this project? Were they approved prior to implementation as required by the Agreement?
3 Notification – Was each labor union and representative of workers with which the Sub-Recipient has a collective bargaining agreement or other contract or understanding, notified of the Sub-Recipient’s commitments as provided in the Agreement?
4 Subcontracts and Assignability – Has the Sub-Recipient obtained approval for all subcontracts with any agency or individual created in relation to the performance of the agreement? a. Have all of the provisions of the original Sub-Recipient agreement been included in all subcontract agreements?
b. Have all subcontractors been monitored on a regular basis as required?
J. CONCLUSION AND FOLLOW-UP
1 Is the Sub-Recipient meeting the terms of the Sub-Recipient Agreement and HUD regulations? Discuss both positive conclusions and any weaknesses identified.
2 Identify any follow-up measures to be taken by the grantee and/or the Sub-Recipient as a result of this monitoring review.
a. List the required schedule for implementing corrective actions or making improvements. b. List the schedule for any needed technical assistance or training and identify who will provide the training.
Project Monitor Date
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DETERMINATION OF EXEMPTION
Environmental Review for Activity/Project that is Exempt or Categorically Excluded
Not Subject to Section 58.5
Pursuant to 24 CFR Part 58.34(a) and 58.35(b)
Project Information
Project Name:
Responsible Entity:
Grant Recipient (if different than Responsible Entity):
State/Local Identifier:
Preparer:
Certifying Officer Name and Title:
Consultant (if applicable):
Project Location:
Description of the Proposed Project [24 CFR 58.32; 40 CFR 1508.25]:
Level of Environmental Review Determination:
Activity/Project is Exempt per 24 CFR 58.34(a):
Activity/Project is Categorically Excluded Not Subject To §58.5 per 24 CFR 58.35(b):
Funding Information
Grant Number HUD Program Funding
Amount
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Estimated Total HUD Funded Amount:
This project anticipates the use of funds or assistance from another Federal agency in addition to HUD in the form of (if applicable):
Estimated Total Project Cost (HUD and non-HUD funds) [24 CFR 58.32(d)]:
Compliance with 24 CFR §50.4 and §58.6 Laws and Authorities Record below the compliance or conformance determinations for each statute, executive order, or regulation. Provide credible, traceable, and supportive source documentation for each authority. Where applicable, complete the necessary reviews or consultations and obtain or note applicable permits of approvals. Clearly note citations, dates/names/titles of contacts, and page references. Attach additional documentation as appropriate.
Compliance Factors:
Statutes, Executive Orders,
and Regulations listed at 24
CFR 50.4 and 58.6
Are formal compliance
steps or mitigation
required?
Compliance determinations
STATUTES, EXECUTIVE ORDERS, AND REGULATIONS LISTED AT 24 CFR §58.6 Airport Runway Clear
Zones and Accident
Potential Zones
24 CFR Part 51 Subpart D
Yes No
Coastal Barrier Resources
Coastal Barrier Resources Act,
as amended by the Coastal
Barrier Improvement Act of
1990 [16
USC 3501]
Yes
No
Flood Insurance
Flood Disaster Protection Act
of 1973 and National Flood
Insurance Reform Act of 1994
[42 USC 4001-4128 and 42
USC 5154a]
Yes
No
Mitigation Measures and Conditions [40 CFR 1505.2(c)]
Summarize below all mitigation measures adopted by the Responsible Entity to reduce, avoid, or eliminate adverse environmental impacts and to avoid non-compliance or non- conformance with the above-listed authorities and factors. These measures/conditions must 304
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be incorporated into project contracts, development agreements, and other relevant documents. The staff responsible for implementing and monitoring mitigation measures should be clearly identified in the mitigation plan.
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Law, Authority, or Factor Mitigation Measure
Preparer Signature: Date:
Name/Title/Organization:
Responsible Entity Agency Official Signature:
Date:
Name/Title:
This original, signed document and related supporting material must be retained on file by the Responsible Entity in an Environmental Review Record (ERR) for the activity/project (ref: 24 CFR Part 58.38) and in accordance with recordkeeping requirements for the HUD program(s).
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DETERMINATION OF CATEGORICAL EXCLUSION
Environmental Review for Activity/Project that is Categorically Excluded
Subject to Section 58.5
Pursuant to 24 CFR 58.35(a)
Project Information
Project Name:
Responsible Entity:
Grant Recipient (if different than Responsible Entity):
State/Local Identifier:
Preparer:
Certifying Officer Name and Title:
Grant Recipient (if different than Responsible Entity):
Consultant (if applicable):
Direct Comments to:
Project Location:
Description of the Proposed Project [24 CFR 50.12 & 58.32; 40 CFR 1508.25]:
Level of Environmental Review Determination:
Categorically Excluded per 24 CFR 58.35(a), and subject to laws and authorities at §58.5:
Funding Information
Grant
Number
HUD
Program
Funding Amount
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Estimated Total HUD Funded Amount:
Estimated Total Project Cost (HUD and non-HUD funds) [24 CFR 58.32(d)]:
Compliance with 24 CFR 50.4, 58.5, and 58.6 Laws and Authorities Record below the compliance or conformance determinations for each statute, executive order, or regulation. Provide credible, traceable, and supportive source documentation for each authority.
Where applicable, complete the necessary reviews or consultations and obtain or note applicable permits of approvals. Clearly note citations, dates/names/titles of contacts, and page references.
Attach additional documentation as appropriate.
Compliance Factors:
Statutes, Executive Orders,
and Regulations listed at 24
CFR §58.5 and §58.6
Are formal
compliance
steps or
mitigation
required?
Compliance determinations
STATUTES, EXECUTIVE ORDERS, AND REGULATIONS LISTED AT 24 CFR 50.4 & 58.6
Airport Hazards
24 CFR Part 51 Subpart D
Yes No
Coastal Barrier Resources
Coastal Barrier Resources Act,
as amended by the Coastal
Barrier Improvement Act of
1990 [16 USC 3501]
Yes No
Flood Insurance
Flood Disaster Protection Act
of 1973 and National Flood
Insurance Reform Act of 1994
[42 USC 4001-4128 and 42
USC 5154a]
Yes No
STATUTES, EXECUTIVE ORDERS, AND REGULATIONS LISTED AT 24 CFR 50.4 & 58.5
Clean Air
Clean Air Act, as amended,
particularly section 176(c) &
(d); 40 CFR Parts 6, 51, 93
Yes No
Coastal Zone Management
Coastal Zone Management
Act, sections 307(c) & (d)
Yes No
Contamination and Toxic Yes No
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Substances
24 CFR Part 50.3(i) &
58.5(i)(2)
Endangered Species
Endangered Species Act of
1973, particularly section 7; 50
CFR Part 402
Yes No
Explosive and Flammable
Hazards
24 CFR Part 51 Subpart C
Yes No
Farmlands Protection
Farmland Protection Policy
Act of 1981, particularly
sections 1504(b) and 1541; 7
CFR Part 658
Yes No
Floodplain Management
Executive Order 11988,
particularly section 2(a); 24
CFR Part 55
Yes No
Historic Preservation
National Historic Preservation
Act of 1966, particularly
sections 106 and 110; 36 CFR
Part 800
Yes No
Noise Abatement and
Control
Noise Control Act of 1972, as
amended by the Quiet
Communities Act of 1978; 24
CFR Part 51 Subpart B
Yes No
Sole Source Aquifers
Safe Drinking Water Act of
1974, as amended, particularly
section 1424(e); 40 CFR Part
149
Yes No
Wetlands Protection
Executive Order 11990,
particularly sections 2 and 5
Yes No
Wild and Scenic Rivers
Wild and Scenic Rivers Act of
1968, particularly section 7(b)
and (c)
Yes No
ENVIRONMENTAL JUSTICE
Environmental Justice Yes No
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Executive Order 12898
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Field Inspection (Date and completed by):
Summary of Findings and Conclusions:
Mitigation Measures and Conditions [40 CFR 1505.2(c)]
Summarize below all mitigation measures adopted by the Responsible Entity to reduce, avoid, or eliminate adverse environmental impacts and to avoid non -compliance or non - conformance with the above-listed authorities and factors. These measures/conditions must be incorporated into project contracts, development agreements, and other relevant documents. The staff responsible for implementing and monitoring mitigation measures should be clearly identified in the mitigation plan.
Law, Authority, or Factor Mitigation Measure
Determination:
This categorically excluded activity/project converts to Exempt, per 58.34(a)(12) because there are no circumstances which require compliance with any of the federal laws and authorities cited at
§58.5. Funds may be committed and drawn down after certification of this part for this (now) EXEMPT project; OR
This categorically excluded activity/project cannot convert to Exempt because there are circumstances which require compliance with one or more federal laws and authorities cited at
§58.5. Complete consultation/mitigation protocol requirements, publish NOI/RROF and obtain “Authority to Use Grant Funds” (HUD 7015.16) per Section 58.70 and 58.71 before committing or drawing down any funds; OR
This project is now subject to a full Environmental Assessment according to Part 58 Subpart E due to extraordinary circumstances (Section 58.35(c)).
Preparer Signature: Date:
Name/Title/Organization:
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Responsible Entity Agency Official Signature:
Date:
Name/Title:
This original, signed document and related supporting material must be retained on file by the Responsible Entity in an Environmental Review Record (ERR) for the activity/project (ref: 24 CFR Part 58.38) and in accordance with recordkeeping requirements for the HUD program(s).
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15. GLOSSARY
GLOSSARY OF ACRONYMS
AI Analysis of Impediments to Fair Housing Choice
AMI Area Median Income
CAPER Consolidated Annual Performance and Evaluation Report CBDO Community-Based Development Organization
CDBG The Federal Community Development Block Grant
Program
CDF Community Development Fund
CFR Code of Federal Regulations. Also referred to as "the regs"
CHAS Data Comprehensive Housing Affordability Strategy
CPD The Office of Community Planning and Development
CPMP Tool Consolidated Plan Management Process tool
CPP Citizen Participation Plan
EA Environmental Assessment
EIS Environmental Impact Statement
ESG The federal Emergency Shelter Grant program
FONSI Finding of No Significant Impact
GMP System Grants Management Process System
GPO Government Printing Office (online access to CFRs)
HOME HOME Investment Partnership Program
HOPWA The federal Housing Opportunity for Persons With AIDS HUD The federal Department of Housing and Urban
Development
IDIS Integrated Disbursement and Information System
LEP Limited English Proficient
LMA Low- and Moderate-Income Area
LMI Low- and Moderate-Income
LOCCS Line of Credit Control System. Also referred to as "locks".
MRER Minor Rehabilitation Environmental Review
NEPA National Environmental Policy Acts
NRSA Neighborhood Revitalization Strategic Area
OMB The Federal Office of Management and Budget
PHA Public Housing Agency
RFP/RFQ Request for Proposals/Request for Qualifications RLF Revolving Loan Fund
RROF Request for Release of Funds
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