The Lifecycle of Grants: Acquisition, Relocation and Procurement

The Lifecycle of Grants:Acquisition, Relocation and Procurement

November 8, 2012

Presenter

Betsy Giffin Section Supervisor, Training &

Technical Assistance Office of Community Development   77 South High Street                                Columbus, Ohio 43215    614.466.8216      F 614.752.4575                                                         Betsy.Giffin@development.ohio.gov

TopicsIntroduction, Resources, and Tips

• Real Property Acquisition

• Relocation of Residential, Businesses, Non-Profits, and Farms

• Section 104(d)

• Procurement– Administrative

Services– Consulting Services– Interagency

Agreements– Intra-agency

Agreements– Engineering and

Architectural Services

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Acquisition, Relocation, and Section 104(d)

The Act and Regulations

• The Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended (URA)

• 49 CFR Part 24 is the government-wide regulation that implements the URA.

• The regulations HUD follows are U. S. Department of Transportation regulations at Title 49 of the Code of Federal Regulations

Regulations

• Available on-line

• http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR&searchPath=Title+40&oldPath=&isCollapsed=true&selectedYearFrom=2010&ycord=1593

What are the URA Objectives

– To provide uniform, fair and equitable treatment of persons whose real property is acquired or who are displaced in connection with federally funded projects 

– To ensure relocation assistance is provided to displaced persons to lessen the emotional and financial impact of displacement 

– To ensure that no individual or family is displaced unless decent, safe, and sanitary (DSS) housing is available within the displaced person's financial means 

– To help improve the housing conditions of displaced persons living in substandard housing 

– To encourage and expedite acquisition by agreement and without coercion

How do URA requirements impact your project?

• Agencies conducting a program or project under the URA must carry out their legal responsibilities to affected property owners and displaced persons.

• Agencies should plan accordingly to ensure that adequate time, funding and staffing are available to carry out their responsibilities.

Some of those responsibilities include:

• For Real Property Acquisition – 2 kinds– Involuntary– Voluntary

Some of those responsibilities include:

Involuntary Acquisition– Appraise property before negotiations– Invite the property owner to accompany the

appraiser during the property inspection– Provide the owner with a written offer of just

compensation and a summary of what is being acquired

– Pay for property before possession– Reimburse expenses resulting from the transfer of

title such as recording fees, prepaid real estate taxes, or other expenses.

Involuntary Acquisition

Involuntary• Property is dilapidated and

blighting the neighborhood• Property owner not willing

or unable to make repairs• Specific property needed

for another purpose e. g. easements

• Property owner is not willing to sell

Voluntary Acquisition

Voluntary• Property is dilapidated

and blighting the neighborhood

• Property owner not willing or unable to make repairs

• You have a willing seller• Selling price is fair and

reasonable

Some of those responsibilities include:

• For Residential Displacements – Provide relocation advisory services to

displaced tenants and owner occupants– Provide a minimum 90 days written notice to

vacate prior to requiring possession– Reimburse for moving expenses– Provide payments for the added cost of

renting or purchasing comparable replacement housing

Some of those responsibilities include:

• For Nonresidential Displacements (businesses, farms, and nonprofit organizations) –  Provide relocation advisory services– Provide a minimum 90 days written notice to

vacate prior to requiring possession– Reimburse for moving and reestablishment

expenses

Resource for Acquisition, Relocation, & Residential Anti-Displacement and Relocation Assistance Plan

• Real Estate Acquisition and Relocation Policy and Guidance

• HUD Handbook 1378• Available On-line

• http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/relocation/policyandguidance/handbook1378

Let’s Take a Look at the Index of the Handbook

• Invaluable Resource• Contains many, many

sample forms• Is kept up to date on-

line

Publications

• HUD Brochures

• These brochures provide general information about rights when real estate (real property) is acquired, or person/entities forced to move from tier home, business, or farm as a direct result of the acquisition, rehabilitation or demolition of real property for a Federally-funded project.

Brochures

• Acquisition– When a Public Agency

Acquires Your Property

• Relocation– Relocation Assistance to

Tenants Displaced From Their Homes

– Relocation Assistance to Tenants Displaced From Their Homes (Section 104(d))

– Relocation Assistance to Displaced Businesses, Nonprofit Organizations and Farms

– Relocation Assistance to Displaced Homeowner Occupants

* Also available in Spanish

Brochures

• Other Publications– Developing Projects With

HOME Funds: Ten Things You Need To Know About Relocation and the Uniform Act (URA) * but might have been afraid to ask

– Planning and Budgeting Relocation Costs for HUD-Funded Projects

• http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/relocation/publications

Section 104(d) aka Barney-Frank Amendment

• Each Grantee has an Anti-Displacement Plan and Certification– Replacement of

Occupiable Housing– Extra Relocation

Assistance for LMI– 24 CFR 570.488(c)

A Housing Unit Demolished Must be Replaced if:

• Occupied, regardless of its condition and rents at or below FMR

• Currently vacant but occupied within the past 3 months regardless of its condition

• Vacant for more than 3 months and suitable for rehabilitation

Housing Does Not Need to Be Replaced if

• Property that has a value of less than $10,000,

• Has been vacant for at least 3 months,

• and has been documented to be dilapidated will be considered not suitable for rehabilitation.

Tenants and Relocation

• Tenants required to leave a property because of sale or intent to sell are eligible for relocation services and cost.

Relocation Benefits

• Can also be due to homeowners, non-profits, businesses, and farms if displaced

Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000

Recipient may not change the use or planned use of property (including the beneficiaries of such use) unless• affected citizens are

given reasonable notice of, and opportunity to comment on, any proposed change, and either:

Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000

• The new use of such property qualifies as meeting one of the national objectives and is not a building for the general conduct of government;

• or the following requirements are met:

Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000

• All parties agree to a new use which does not qualify as meeting a national objective

• The CDBG program is reimbursed the current fair market value of the property.

Liens

• Liens are required to be placed on real property which is acquired and/or improved in whole or in part using CDBG funds in excess of $25,000.

• Demolition is considered an improvement.

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Procurement

What We Will Cover Today

• Basic Procurement Requirements per 24 CFR Part 85• Competitive Construction Bidding• Competitive Proposals• Small Purchases• Noncompetitive Proposals

• Administrative Services• Professional Services Interagency Agreements• Force Account• Contract Provisions

Procurement Regulations

• Layered

• Federal (24 CFR Part 85)

– State (Ohio Revised Code)

• Local

Procurement Standards

• Grantees use their own Procedures

• Provided they conform to:– Applicable Federal

Law – Standards identified in

24 CFR Part 85

Code of Conduct

• Must be written procedures

• Governs employees employed in the award or administration of contracts

Code of Conduct

• Identify Conflict of Interests

• Standards for Procurement and Contracting

• Financial Management and Recording Systems

• Cost Allowability• Program Monitoring

Full, Open and Free Competition – Regardless of Dollar Amount

• All procurement

• Fair and open competition is a basic tenet of public procurement.

• Such competition reduces the opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically.

Four Methods of Procurement Identified in 24 CFR Part 85

• Small Purchases (less than $50,00)

• Sealed Bids ($50,000 or more)

• Competitive Proposals

• Noncompetitive Proposals

Methods of Procurement

1. Competitive Sealed Bidding

2. Competitive Sealed Proposals

3. Small Purchases

4. Sole Source Procurement

5. Emergency Procurements

6. Special Procurements

7. Architectural and Engineering Services

8. Administrative Services, etc.

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Sealed Competitive Bids

Competitive Sealed Bids

•Cost > $50,000

•Formal Advertising

•Publicly solicited

•Publicly Opened

•Preferred for construction contracting

Competitive Sealed Bids

•Firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder who is the lowest price.

Competitive Sealed Bids

If sealed bids are used, the following conditions must apply:• A complete, adequate, and realistic

specification or purchase description must be available

• Two or more responsible bidders are willing and able to compete

• Procurement lends itself to a firm fixed price

Bid Advertisement - Counties

• ORC 307.87 - Notice shall be published once a week for not less than 2 consecutive weeks preceding the day of the opening of bids in a newspaper of general circulation

• The county must also post the notice on a public bulletin board

Bid Advertisement - Counties

• The county may also cause notice to be inserted in trade papers or post the notice on the county’s internet site.

• If the notice is posted website, the county may eliminate the second notice otherwise required to be published in a newspaper, provided that the first notice published in such a newspaper meets all of the following requirements:

Bid Advertisement – Cities and Villages

• ORC 731.22 - “for not less than 2 nor more than 4 consecutive weeks in a newspaper of general circulation”

• No Internet posting provisions

Procurement Process

• Maintain written documentation of the process

• Including bid table or quote tabulation sheet

• Issue Notice of Award to successful contactor

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Small Purchases

Small Purchases

• Simple and informal method

• Lower of less than $50,000, local policy, or charter

• Federal rules different rules than Ohio Revised Code

Small Purchases

• 1st must develop scope of project

• Development detailed specifications about the goods and services to procured so an apples to oranges evaluation can be done

Bid Advertisement - Counties

• It is published at least two weeks before the opening of bids.

• It includes a statement that the notice is posted on the county’s internet site on the world wide web.

• It includes the address of the county’s internet.• It includes instructions describing how the notice

may be accessed on the county’s internet site.

Small Purchases Initial Third Party Estimate of Cost

• Catalog prices• Data from similar

previous bids• Engineer• Phone inquiries

sometimes• Etc.

Construction Contract > $2,000for Small or Sealed bids

• Require Federal Prevailing Wage

• Must have written bid packets

• Must contain wage determination

• More complex than some other small purchases

Small Purchases

• Bids, price or rate quote must be obtained form adequate number of qualified sources

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Competitive Proposals

Competitive Proposals

• Used when conditions are not appropriate for the use of sealed bids

• More than one qualified source is available

• Fixed price or cost reimbursement type of contract is awarded

• Request for Proposal (RFP) will be publicized and identify all evaluation factors and their relative importance

• RFP will be solicited for adequate number of qualified sources

Competitive Proposal Requirements

Competitive Proposal Requirements

• Grantees will have a method from conducting technical evaluations of proposals for selecting awardees

• Awards will be made to the responsible firm whose proposal is most advantageous, with price and other factors considered

Competitive Proposal Requirements

• Grantees may use competitive proposal procedures for qualification based procurement of architects and engineers.

• Refer to Ohio’s Design Professional Selection Law ORC 153.65 - .71

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Noncompetitive Proposals

Noncompetitive Proposals

• Solicitation of proposals from only one source, or after solicitation of a number of sources, competition is determined inadequate

Noncompetitive Proposals

• … Item is available form only one source

• A public emergency exists and will not permit a delay resulting from competitive solicitation

• After solicitation from a number of sources, competition is determined inadequate

Noncompetitive Proposals

• Cost analysis is required, i. e. verifying the proposed cost data, the projections of the data, and the evaluation of the specific elements of costs

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Qualification Based Selection

Design Professional

• Ohio’s Design Professional Selection Law (ORC 153.65 -.71) is consistent with federal requirements

• See Handout: Ohio Qualifications-Based Selection (QBS Manual): A guide to selecting the highest qualified architecture/engineering firm

Ohio’s Design Professional Selection Law

• Sections 153.66 to 153.70 do not apply to any of the following: – Any project with an estimated professional design fee

of less than fifty-thousand dollars;– Any project determined in writing by the public

authority head to be an emergency requiring immediate action including, but not limited to, any projects requiring multiple contracts let as part of a program requiring a large number of professional design firms of the same type;

– Any public authority that is not empowered by law to contract for professional design services.

Architect and Engineering Under $50,000

• Use competitive proposal process

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Interagency Agreements

Interagency Agreements

• Interagency agreement (IAA) is a written transaction that allows one agency to obtain supplies, services, personnel, material, equipment, and facilities from another agency.

Interagency Agreements ContentIAAs should include:

1. A description of the supplies, services, etc. to be obtained by the grantee or provided to a receiving agency;

2. Payment or funds transfer terms;

3. Cancellation or termination provisions;

4. The effective period; and,

5. Terms of performance and delivery

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Force Account

Force Account

• Before constructing or reconstructing a road, or constructing, reconstructing, improving, maintaining, or repairing a public improvement by force account, the jurisdiction is required to “first cause to be made an estimate of the cost of such work,” using the force account project assessment form developed by the Auditor of State under R.C. 117.16.

Force Account

• The Auditor of State is authorized by R.C. 117.16 to require a community who is estimating the cost of road, bridge, or culvert work under R.C. 5543.19 to use a “safe harbor rate” for the cost of overhead or justify the use of a different rate.

Force Account

• A community may, as the general contractor of a force account project, acquire material and equipment pursuant to contract, and may subcontract part of the work undertaken by force account, so long as the contracts for material and equipment and the subcontracts are let in compliance with it competitive bidding requirements.

Force Account• A community who is estimating the cost of a

public work must include in the estimate the cost of materials and equipment that would be acquired by contract, and the cost of work that would be performed pursuant to a subcontract, if the project were undertaken by force account. If the total exceeds the applicable force account limit, as set forth Ohio Revised Code, the whole project must be competitively bid.

Memorandum of Understanding (MOU)

• When two or more agencies wish to express an intent or expectation to Cooperate, they may execute a MOU. The MOU is often preliminary to, but not a requirement of, an IAA. A MOU may not be used to transfer funds or obligate work to be performed.

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Memorandum of Agreement

Memorandum of Understanding (MOU)

• It may say that the agencies expect to commit funds to some purpose, but it shall also state that authorized officials from the participating agencies must confirm such action by execution of a formal IAA. The MOU may serve as the formal agreement for non-monetary cooperation (e.g., two agencies might agree via a MOU to collaborate on a program evaluation.)

HUD Quick Guide to Cost and Price Analysis

• http://www.hud.gov/offices/cpo/grantees/cstprice.pdf

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

Time and Materials

Time and Material Contracts

• Grantees will use time and material type contracts only—– (i) After a

determination that no other contract is suitable, and

– (ii) If the contract includes a ceiling price that the contractor exceeds at its own risk.