South Carolina
Community Development Block Grant Program
American Recovery and Reinvestment Act
CDBG-R Recovery FundsImplementation
Guidelines
Agenda
ARRA Purposes and Requirements
CDBG-R Recovery Funding Purposes and Goals
CDBG-R Implementation Requirements Eligible Activities Timelines Procurement and Contract Requirements Other Requirements Financial Management and Recordkeeping Reporting
American Recovery and Reinvestment Act
Signed into law February 17, 2009 SC CDBG R is $5.9 million
Investments should focus on Creating and sustaining jobs Providing immediate economic stimulus Achieving long term benefit
American Recovery and Reinvestment Act
ARRA Requirements: Buy American provisions
oRequires use of American made iron, steel, and manufactured goods
Davis Bacon compliance NEPA/Environmental compliance Transparency and Accountability
American Recovery and Reinvestment Act
President’s Responsible Spending Memo
OMB Reporting and Accountability Establishes required data elements Establishes quarterly detail of expenditures Assesses impact of expenditures
Recovery.gov Posting of information on how funds are being
spent and the programmatic results
CDBG-R Program Amendment
Funds are separate from regular CDBG program funds and must be tracked separately
Amendment to State’s 2008 Annual Action Plan
Reduced regular program CP requirements to 7 day public comment
Required identification of the actual projects to be funded with CDBG-R
CDBG-R Amendment
Purpose: Assist those impacted by recession Invest in long term benefits of environmental
protection or infrastructure Promote smart growth, green building
technologies, or foster energy independence Create or retain full and part time jobs
CDBG-R Amendment
ULG certified that projects would: Be “Ready to Go”
Award contracts within 120 days
Be implemented and completed expeditiously
Maximize job creation/retention
Provide economic benefit and recovery
CDBG-R National Objective
Project must meet a national objective LMI Area based on census or surveys Document beneficiaries at completion
70% of CDBG-R funds must benefit LMI
CDBG-R Requirements
Unless otherwise specified - all other CDBG regular program requirements are applicable to the CDBG-R recovery funds
Expenditure deadline of September 30, 2012 State must use or lose
CDBG-R Recovery Program
Any questions?
CDBG- R Recovery Program
Implementation Requirements
CDBG-R Applicable Regulations ARRA – Recovery Act of 2009
74 Fed Register 21816
OMB Guidance 74 Fed Register 18449
Title I of HCDA of 1974HUD Regulations
24 CFR Part 570 Subpart I
SC CDBG Program Requirements
Eligible Activities Only construction or equipment costs as
approved in the application or as otherwise officially amended
Cost overruns will be responsibility of the Grantee If CDBG-R funds are available, additional funds
may be obligated to cover additional costs
Advise GA immediately of any cost under runs so that funds may be quickly obligated Cost savings plan required
Eligible Activities
Administrative costs limited to 8% of total CDBG-R project activity costs Be careful if project costs come in under budget
Adjustment may be required within 30 days of construction contract approval
No more than 25% drawn before construction start
Engineering paid by local or other funds
Project Timeline Requirements
Environmental complete or imminent
Acquisition complete or not required
Other project financing committed
Engineer under contract
Project designed and bid specs prepared
Permits approved or imminent
Project Timeline Requirements
Bid advertisement period reduced to 15 days as long as adequate competition received
Construction contracts awarded by November 30, 2009
Projects must be completed expeditiously
All funds must be expended by September 30, 2012
Procurement and Contracting
Separate contracts whenever possible
Separate division bid Separate invoices
CDBG-R provisions applicable to entire contract if any activity funded in whole or in part with ARRA
Contractors must be able to meet time and performance standards
Project sign is optional Must use ARRA logo (GA can provide)
Procurement and Contracting
First tier contractors need DUNS number or HQ address
Post Whistleblower Notice Protections regarding possible fraud, waste and or
abuse of ARRA funds
Citation- ARRA Section 1553
Buy American Provisions
Section 1605 of Title XVI of ARRA
OMB Interim Final Guidance Establishes government-wide rule
74 Federal Register 18449 - April 23, 2009
2 CFR Part 176
Applies to CDBG-R funded activities
Buy American Provisions
No funds may be used for the construction, alteration, or repair of a public building or public work unless all the iron, steel, and manufactured goods used in the project are produced in the US
Public building or public work must be owned by governmental entities
Buy American Provisions
Exceptions considered if: It would be inconsistent with the public interest
Goods not produced in sufficient and reasonably available quantities and quality
Will increase costs of project by more than 25%
Only HUD can approve exceptions
Nation wide exceptions CDBG-R grant or contract is less than $100,000
Buy American Provisions
Manufactured good:A good brought to the construction site for incorporation into the building or work that has been processed into a specific form or shape or combined with other raw material to created a material with different properties than the properties of the individual raw material.
Buy American
Include a provision requiring compliance in Grant agreements and sub recipient agreements,
Bidder certification
Contract Agreement CDBG R Special Conditions
Certification on Direct Equipment purchases
Buy American Documentation
Contractor must maintain information necessary to support the certification
Bidder’s Certification – contractor will provide Grantee with reasonable, timely and sufficient verification regarding each component applicable to CDBG R funds
Buy American Documentation
What documentation is needed to determine compliance? Product labels and descriptions
Certification from the manufacturer
Consultation with suppliers
Maintain supporting records and document all verification efforts for monitoring
Refer to OMB Guidance
Costs may be disallowed for non-compliance
Change Orders
Change orders of 10% or $10,000 whichever is greater must be approved in advance by GA
CDBG-R Recovery Program
Any questions?
CDBG-R Other Requirements
Other CDBG requirements apply: Davis Bacon Section 3 FHEO, 504 Section 102 Disclosures Record keeping
Financial Management CDBG-R funds must be tracked separately
from other programs or other funding for the same project
Drawdown funds in a timely manner commensurate with progress
All funds must be expended by September 30, 2012 Grantee is responsible for contractual obligations if
funds are recaptured
Audit requirements are applicable
CDBG-R Reporting Detailed quarterly reporting of
activities/results Use of funds/purpose
Status of activities
Expenditure amounts
FTEs charged to ARRA funds
Types of jobs
Project information and status to be posted on national and state web sites
Quarterly Reports
Progress
Contract and Vendor Activity
Jobs
Deadlines: October 1, January 1, April 1, and July 1
Failure to meet deadlines or provide accurate information is violation of grant agreement and will involve sanctions
Progress Reporting
Quarterly Status Report – Q1 R Give detailed description of progress and
accomplishments to date Attach
o Jobs reporto Contractor and Vendor reporto Section 3o Implementation Schedule (P- 1), if applicable
Contract and Vendor Activity Vendor and Contract Activity Report EO-1 R
Contracts executed during the quarter
Vendor purchases during the quarter
Other procurements during the quarter
Information required: Date executed
CDBG R amount of the contract or procurement
Contractor/Subcontractor ID (DUNS)
Name, HQ address and Zip code + 4
“No activity this quarter” check box
Jobs Reporting
Jobs – CDBG R Jobs Report Will not involve “estimates” of the number of jobs
created or retained on a project
FTE calculation based on hours charged to CDBG R using a standard work week as the basis
Must include all work paid for with CDBG R Construction – contractors and subcontractors
Vendors – estimated manufacturing/delivery hours only if CDBG R is paying for equipment only
Administration
Jobs Reporting
Information needed: Contractor/Vendor Name
Job classification type
Full time Basis
o Number of hours in a full time work week for each classification type (assuming same number for all workers in the classification)
Total hours worked this quarter paid for with CDBG R funds
Total FTEs – this is a calculated field
Jobs Reporting
You may use the form for each contractor to report on hours charged to CDBG R
Contractors/vendors must submit information to the grantee in sufficient time for compilation and submission to GA Compare to weekly payrolls to verify the hours
reported and classifications are accurate
Grantee will summarize all activity from all contractors/vendors on one form and submit to GA no later than the first day of the quarter
CDBG-R Recovery Program
Any questions?
CDBG R Guidance
CDBG R Grant Agreement Supplemental Special Conditions Project Special Conditions Grant Agreement Terms and Conditions
CDBG R Certifications
CDBG R Performance and Accomplishments Report
CDBG R Guidance
Guidance on Bidding/Award of Construction Contracts
Bidders Buy American Certification
Grantee Buy American Certification
Accountability Notice/Whistleblower Poster
CDBG R Guidance Policy Memos
Contract Special Provisions
oBuy American Quarterly Reporting
oForms - Progress, Contracts, Jobs
o Instructions
oSample Section 3 Compliance
oHUD Handout
CDBG-R Recovery Program
Any questions?