UNDERSTANDING CDBG DISASTER RECOVERY FUNDS · Tips for Invoice Management 5. Tips for Program Administrators: Understanding HUD Waivers 13. Severe Winter Weather Staffing Tips 6

© 2019 Institute for Building Technology and Safety 1

UNDERSTANDING CDBG DISASTER RECOVERY FUNDS

Michael Spletto, Corporate Executive with IBTS

Todays Discussion1. Is CDBG-DR here to stay?

Comparisons of CDBG $ to CDBG-DR $ over the last 26 years.

2. Parking lot of issues – Tell us your concerns

3. Getting Ready to manage your CDBG-DR programs –Lessons learned

© 2019 Institute for Building Technology and Safety

public sector accountability

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private sectorflexibility

The Institute for Building Technology and Safety is a 501(c)(3) nonprofit organization established to provide unbiased professional services, while enhancing the communities in which we work.

ABOUT IBTS

MISSIONAt IBTS, our mission is to deliver quality services to meet the challenges of governance at all levels while enhancing public safety, economic development, and the general welfare of the community.


IBTS is guided by a Board of Directors consisting of representatives of five national associations.

BOARD OF DIRECTORS

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________________

Comparison between CDBG and CDBG-DR Funding

Mike SplettoInstitute for Building Technology and Safety



CDBG VS CDBG-DR FUNDING SINCE 1993

$2,783,000,000

$16,700,000,000

$9,400,000,000

$16,000,000,000

$7,800,000,000

$28,000,000,000

$-

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

CDBG CDBG-DR

Annual CDBG-DR allocations are increasing, surpassing CDBG funding.

© 2019 Institute for Building Technology and Safety7

CDBG-DR FUNDING SINCE 1993

(Since 1993)

$90 Billionin CDBG-DR allocations.

$102 Billionin CDBG allocations.

vs.

Years with CDBG-DR Allocations over $1 Billion

FYCDBG-DR

Appropriation Disaster

2002 $2.8 billionPost-September 11th New York City's Recovery efforts

2006 $16.7 billion Hurricanes Katrina, Rita, and Wilma

2008 $9.4 billionSupplement the LA homeowner assistance program, Midwest Floods and Hurricanes Ike, Gustav and Dolly

2013 $16 billionRecovery from Hurricane Sandy – Rebuild by Design and National Disaster Resilience

2016 $2.6 billionRecovery from Hurricanes Joaquin and Patricia, and other flood events occurring in 2015 & 2016 and LA Floods

2017 $7.8 billion Recovery from Events in 2015, 2016, & 2017

2018 $28 billion Recovery from Events in 2017 and to assist Community Mitigation in areas effected by Events in 2015 thru 2017

2019 $4 billion Recovery from Events in 2018 and 2019


CDBG-DR APPROPRIATIONS SINCE 1993

Has been a CDBG-DR Grantee

Has not been a CDBG-DR Grantee

Since 1993:

5 years with 2 or more CDBG-DR appropriations.

18 years with a CDBG-DR appropriation.


Parking Lot

What keeps you awake worrying about CDBG Disaster Recovery Funding?


ISSUES AND CONCERNS

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CDBG-DR PROGRAM MANAGEMENT________________

Preparing for CDBG-DR programsMike Spletto

Institute for Building Technology and Safety


IBTS OnHAND

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IBTS Online Help and Advice for Natural Disasters (OnHAND) is an online resource of natural disaster-related case studies, tools, and tips developed to meet the needs of stakeholders at the State and local level.

All content can be customized to be role-based, peril-based, or phase-based.


Before a Disaster

Now is the time to focus on the disaster plan. When no

natural disasters are looming, local and state governments and other

stakeholders should incorporate disaster

planning as an ongoing, scheduled process. Once a

natural disaster is imminent, the disaster plan

is activated.

During a Disaster

In the hours and days following a disaster,

communities first prioritize lifesaving operations in the

response phase, then meeting basic needs during the post disaster response.

The focus then changes over the next few weeks to helping the community re-

establish normal operations during recovery administration.

After a Disaster

At the end of the post-disaster response, it may seem like funding options

are ending, but the recovery process and

funding options are largely just beginning. Numerous

long-term recovery funding options should be explored, primarily from HUD’s CDBG-

DR program and other hazard mitigation funding

and other sources.

OnHAND organizes content into the three phases of the disaster timeline.

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After a Disaster

Program Administration

• Stories• Tips• Tools• Links

MOVING THROUGH ONHAND

ibtsonhand.org

https://ibtsonhand.org/


PROGRAM ADMINISTRATION: STORIES

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1. CDBG-DR Procurement: Reduce Time And Cost by Using A Bid Book 7. Experiences Gained: Debris Removal in

Louisiana

2. Experiences Gained: Documentation During Response and Recovery 8. Experiences Gained: Team Building After a

Disaster – How to Plan and Pay for it

3. Experiences Gained: Documentation, Documentation, Documentation! 9. Legislative History of the US Department

of Housing and Urban Development (HUD)

4. Experience Gained: Consultants Assist with Code Compliance and Construction 10. What is the Super Circular?

5. Legislative History of the Role of the Federal Government in Disaster Assistance 11. Experience Gained: Building a Strong Long-

term Recovery Group

6. Experiences Gained for Case Managers: Managing the CDBG-DR Appeals Process 12. How to Develop a Comprehensive CDBG-

DR Program Specifications Document


WHAT IS A BID BOOK?

Bid books establish a unit cost for each construction line items needed for a CDBG-DR program (such as a home or infrastructure project) for a specific region at the time of the disaster event. For a CDBG-DR home rehab or reconstruction project, this can range from carpet and tile, to roofing, drywall, framing, and all other potential materials needed for the project.

A Bid book is customized to the specific grantee’s program –integrating everything from local building and energy code to specific city ordinances – to ensure projects meet local, state and federal requirements.

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HOW DOES A BID BOOK WORK?

The grantee or subgrantee first develops a list of pre-qualified contractors by issuing and selecting a pool of contractors eligible to bid on work packages.

Once the grantee issues the bid book, eligible contractors use the bid book’s unit prices to determine their multiplier or baseline modifier unique to their business model. The grantee then chooses the contractors with the best, most reasonable prices to complete the work.

In regular CDBG programs, houses are typically assessed and scoped individually, and then awarded to contractors in packages, or as a Request for Proposal (RFP), based on the contractor’s capacity to complete the work.

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HOW DO BID BOOKS STREAMLINE THE BIDDING PROCESS?

Eliminates the lengthy contractor negotiation period. Contractors no longer have to get pricing from individual traders (mechanical, electric, plumbing, etc.) and subcontractors, but simply determine pricing based on the bid book’s unit prices.

Bid books take the guess work out of market price changes. They establish unit-cost based on regional market prices at the time the book is written. This stabilizes overhead costs and allows for uniform adjustments to the unit price due to any inflation or shortages throughout the process.

Contractors can begin their jobs as soon as the contract is signed. This can reduce the timeline by up to two weeks, getting homeowners back into their homes faster and reducing the overall program timeline.

Change orders and unforeseen conditions are more easily priced and agreed upon. Contractors no longer have to get separate prices or bids from a subcontractor for a change order, instead they can just refer back to the unit prices in the bid book to simply add more quantity.

Reduced time for advertisement and award. Grantees don’t have to advertise because they are choosing from pre-qualified contractors instead of active bidders.

Easily identify contractor price variances. Because all of the unit costs are outlined in the bid book, grantees can easily spot contractor price markups above regional market prices.

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PROGRAM ADMINISTRATION : TIPS

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1. Getting Started: Policy & Procedure Management 9. Tips: Managing the Appeals Process

2. Tips: CDBG-DR Public Outreach Compliance 10. Tips for Project Managers: Getting Started with Contractors

3. Legislative Update: Duplication of Benefits 11. Tips: Working with Homeowners During Pre-construction

4. Tips: CDBG Vs. CDBG-DR Programs 12. Tips for Invoice Management

5. Tips for Program Administrators: Understanding HUD Waivers 13. Severe Winter Weather Staffing Tips

6. Tips: CDBG-dR Procurement Basics 14. Tips for Improving Program Compliance Oversight

7. Tips: Understanding CDBG-DR Public Laws, Regulations & Notices 15. Tip: Understand how your Locality will Manage

Program Administration

8. Tips for Creating a Comprehensive Program Specifications Document 16. Tips for Managing Documentation & Program

Requirements


CDBG VS CDBG DR PROGRAMS

Understand duplication of benefits and how to prevent it

Stay current on laws and regulations pertaining to CDBG-DR assistance as they are released

Adapt your homeowner application process

Ensure that your monitoring and quality control procedures can handle the size and scope of your CDBG-DR program

Take a tiered environmental review approach to expedite the process

Hire a consultant to assist with the environmental review

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PROGRAM ADMINISTRATION : TOOLS

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1. IBTS On-site Monitoring Review Checklist For CDBG-DR Infrastructure Programs

2. IBTS Presentation: Understanding Subrecipient Agreements

3. IBTS Presentation: Grant Administration

4. Grant Administration & Procurement: Presentation For NLB

5. Grant Administration & Procurement


PROGRAM ADMINISTRATION : LINKS

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1. Role of Section 106 in Disaster Response FAQs 10. CDBG-DR Toolkit: Financial

Management 19. CDBG-DR Procurement Checklist

2. Guidance on Minority Business Enterprise & Women’s Business Enterprise Outreach

11. CDBG-DR Program Life Cycle Quick Guide 20. Overview: Disaster Recovery (CDBG-

DR)

3. Buying Right: CDBG-DR & Procurement 12. CDBG-DR Grants Management 21. HUD Presentation: CDBG-DR Action

Plan

4. HUD Request for Release of Funds & Certification 13. HUD Disaster Recovery Homelessness

Toolkit 22. Lessons from Texas: 10 Years of Disaster Recovery Examined

5. CDBG-DR Recordkeeping & Reporting Requirements 14. Long-term Disaster Recovery – Best

Practices 23. HUD Chronological Checklist for CDBG-DR Grantees

6.CDBG-DR Subrecipient Agreement Template 15. CDBG-DR Application Handbook 24.

CDBG Disaster Recovery: Keys To Effective Grant Management

7. Community Planning & Development (CPD) Monitoring Handbook 16.

Disaster Preparedness, Response, Mitigation & Recovery Activities: Compliance with Title VI of the Civil Rights Act of 1964

25.Hurricane Sandy Task Force’s Infrastructure Resilience Guidelines: Initial Assessment, Federal AgencyImplementation

8. CDBG-DR Organizational Models 17. CDBG-DR Program Operations 26. CDBG-DR Human Resources

9. Hurricane Sandy Rebuilding Strategy 18. 24 CFR 85 – Title 24 of Housing Urban Development Part 85 27. Sandy’s Effect on Housing in New

York City


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UNDERSTANDING CDBG DISASTER RECOVERY FUNDS · Tips for Invoice Management 5. Tips for Program Administrators: Understanding HUD Waivers 13. Severe Winter Weather Staffing Tips 6