community development block grant – disaster recovery overview and implementation august 05, 2014

Community Development Block Grant – Disaster Recovery

Overview and ImplementationAugust 05, 2014

AGENDA

• Introductions• Program Overview• Program Requirements• The Process – from Application to

Payment• Resources and Contacts• Q & A

• Special appropriations by Congress following a disaster

• Supplements FEMA, SBA, NFIP, USACE and other federal resources to cover unmet needs

• General focus is on ‘recovery’ rather than ‘relief’

• Administered by HUD as grants to States (or entitlements) following CDBG rules with certain waivers

Overview: What is CDBG-DR?

Funds must be used for:

“…necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure, housing, and economic revitalization…”

Appropriations Law

Applicable Disasters•DR 4145 – Colorado Severe Storms, Flooding, Landslides and mudslides – Sept. 2013•DR 4134 – Black Forest Wildfire – June 2013•DR 4133 – Royal Gorge Wildfire – June 2013•DR 4067 – High Park and Waldo Canyon Wildfires – Jun/Jul 2012

Colorado Disasters

First Allocation of $62.8 Million covers only the Colorado Floods of 2013.Wildfires included as part of Second Allocation

First Allocation of $62.8 Million covers only the Colorado Floods of 2013.Wildfires included as part of Second Allocation

• 1st Allocation - $62.8 Million (Floods Only)– Federal Register Vol.78 No.241; Dec 16, 2013

• 2nd Allocation - $199 Million (Includes Wildfires)– Federal Register Vol.79 No.106; Jun 3, 2014

• 3rd Allocation - $58 Million – TBA

• Nationwide Competitive Resiliency Grant $1B

Allocations

Program Amount

Household Assistance* $12,826,900

New Construction 10,440,500

Private Roads and Bridges** 2,000,000

Infrastructure 19,477,600

Planning 1,000,000

Economic Development Grants and Loans 9,000,000

Economic Development Tourism Marketing 500,000

Agriculture 4,500,000

Administration 3,055,000

TOTAL $62,800,000

First Allocation $62.8M

* Includes Temporary Rental Assistance, Down Payment Assistance, Single-Family Rehabilitation, and Construction and Demolition* Includes Temporary Rental Assistance, Down Payment Assistance, Single-Family Rehabilitation, and Construction and Demolition

** Colorado is currently seeking a waiver to implement this program** Colorado is currently seeking a waiver to implement this program

• Overall Management – Department of Local Affairs (DOLA)

• Housing Programs – Division of Housing (DOH)• Infrastructure Programs – Department of

Homeland Security and Emergency Management (DHSEM)

• Economic Development Programs – Office of Economic Development and Int’l Trade (OEDIT)

• Agriculture Programs – Colorado Department of Agriculture (CDA)

Implementation Partnership

AGENDA

• Introductions• Program Overview• Program Requirements• The Process – from Application to

Payment• Resources and Contacts• Q & A

Projects Must …•Be Disaster Related*•Meet a National Objective

– Serve Low/Moderate Income– Address Slum and Blight– Meet an ‘urgent need’

•Be an Eligible Activity under CDBG

Program Requirements

*”Disaster Related” does not always mean “damaged.”*”Disaster Related” does not always mean “damaged.”

As a Grant we must …•Ensure 50% of the dollars are invested in programs that serve Low and Moderate Income Households.•Ensure 80% of the resources go to the 3 most heavily impacted counties of Boulder, Larimer and Weld.

Program Requirements

April 29, 2016•2 years from the date HUD grant agreement was executed with the State of Colorado.•All $62.8 million must be expended and drawn

Expenditure Deadline!!

1. Benefit low- and moderate-income (LMI) persons– LMI Area Benefit (Census or Survey)– LMI Limited Clientele– LMI Housing– LMI Jobs

2. Aid in the prevention or elimination of Slums or Blight (Area or Spot basis)

3. Urgent Need (threat to community health / welfare; disaster related impact; 18 month requirement waived for post-Sandy disasters)

National Objectives

CDBG regulations permit grantees to undertake a wide range of program activities in the following broad categories:• Housing• Public Facilities• Public Services• Economic Development• Planning and Administration

Eligible Activities

Chapter 2 of this document provides an excellent resource for determining the eligible activity: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/library/stateguide

Chapter 2 of this document provides an excellent resource for determining the eligible activity: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/library/stateguide

NOTE: Cost share for other federal funds is allowed, provided the original use was for an eligible activity.NOTE: Cost share for other federal funds is allowed, provided the original use was for an eligible activity.

• Timely Expenditure requirement (2 year clock)• Serve 50% LMI rather than 70%• Prevention of Duplication of Benefits requirement• Prevention and identification of Fraud, Waste,

and Abuse requirement• Citizen Participation requirements• Pre-agreement costs• State can contract directly with entitlements,

nonprofits, for-profits, and other entities

What’s Different from Regular CDBG?

CDBG-DR is the “funding source of last resort.” Verification is needed that demonstrates all other sources:

•Have been depleted (or unavailable, provided application was made), including insurance payments, FEMA assistance, and Small Business Administration assistance. Funds from any other source that are available for the same purpose being applied for are considered to be duplicated benefits.

•Subrogation Agreements are REQUIRED – repayment of funds if another source is received or disclosed at a later date.

Duplication of Benefits

A separate notice regarding Duplication of Benefits can be found in Federal Register Vol. 76, No. 221/ November 16, 2011. A separate notice regarding Duplication of Benefits can be found in Federal Register Vol. 76, No. 221/ November 16, 2011.

DR activities must adhere to all applicable Federal and State CDBG Program guidelines and requirements, unless specifically waived by HUD, including:

• Environmental Review (NEPA) • Recordkeeping Requirements (see Exhibit I-A) • Uniform Relocation Assistance• Section 3

CDBG Requirements

See the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217 for assistance with complying with CDBG requirements.

See the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217 for assistance with complying with CDBG requirements.

• Affirmatively Furthering Fair Housing • Section 504 • Labor Standards – Davis-Bacon

prevailing wage requirements and enforcement

CDBG Requirements (cont.)

See the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217 for assistance with complying with CDBG requirements.

See the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217 for assistance with complying with CDBG requirements.

Applies to federally funded construction•Greater than $2000•Residential construction of greater than eight unitsDoes not apply•For cost share on FEMA PA Category A & B (Debris removal and emergency response)•Projects completed prior to May 16, 2014 without the initial intent of using CDBG-DR

Labor: Davis-Bacon

• Copy of Wage Determination or Exhibit VII-D

• Evidence of Wage Lock-In

• Copy of Bid Package

• Bid Log kept

• Minutes of the Bid Opening recorded

• Evidence of Bid Bond and Payment Bond

• Contractor Eligibility Verification (debarment check in SAM)

Labor: Davis-Bacon (cont.)

• Construction Contract Award Letter/ Notice to Proceed

• Copy of Construction Contract or Construction File

• Weekly Payrolls

• Additional Job Classification Request (if applicable)

• Copy of Job Site Interviews

• Section 3 Recruitment Efforts

• Notice of Final Payment

Labor: Davis-Bacon (cont.)

See Contractor’s Guide to Davis-Bacon in your handouts for more information

See Contractor’s Guide to Davis-Bacon in your handouts for more information

• Use your own locally approved standards, as long as they are equally or more restrictive than 24 CFR Part 85.

Procurement

AGENDA

• Introductions• Program Overview• Program Requirements• The Process – from Application to

Payment• Resources and Contacts• Q & A

• Application• Award Letter / Environmental

Review• Contract Process• Reimbursement Process• Quarterly Reporting

Process Overview

Infrastructure Application Example

APPLICANT (UGLG) DOLAProgram Lead

Submits Notice of Intent (NOI)Review and Score

Preliminary Approval of Project List

Submits Complete Application based on approved projects

Issue Conditional Award Letter

DOLA Executes Contract

Signs Contract

Complete Environmental Review Process

Issue Release of Funds (ROF)

Repeat Award Letter, ROF, Contract process as projects are ready for implementation.Repeat Award Letter, ROF, Contract process as projects are ready for implementation.

Write Statement of Project (SOP) or of Work (SOW);

Develop Contract based on approved template

Pre-Review

Release of Funds Process

1. Award letter– Identifies level of environmental review

required

2. Grantee completes environmental review process using proper form

3. CENST and EA forms sent to AGEISS for review

4. ROF letter issued

Environmental Review

See handout: Recipients will either submit documentation to AGEISS OR Request assistance with the environmental review

See handout: Recipients will either submit documentation to AGEISS OR Request assistance with the environmental review

• The AGEISS team will be available for the following:– to provide technical assistance for environmental

review questions; – to complete CEST and EA environmental review

requirements for any CDBG-DR grantee; and – to review all CEST and EA environmental

documents for completeness, regardless of who completed the review.

AGEISS is to be utilized strictly for CDBG-DR funded projects AGEISS is to be utilized strictly for CDBG-DR funded projects

Environmental Review

Environmental Review

• CDBG Environmental Guidebook: www.dola.state.co.us/environmentalreview

• Environmental Consultant – services for CDBG-DR Grantees

AGEISS Inc.Energy | Environment | Facilities | Professional Services1202 Bergen Pkwy, Ste. 310, Evergreen, CO 80439

Main contact: Jennifer Loos at 303-674-5059 x121AGEISS team email: DOLA-Support@ageiss-inc.com

Contract Overview

• All contract documents are boiler templates that have been approved by the Office of the State Controller

• Generally one contract per project, but exceptions are possible

• No required cure period for failure to perform• Reimbursement of Pre-Agreement Costs

Contract Exhibits• Exhibit A – Applicable Laws• Exhibit B – Statement of Project• Exhibit C – Supplemental Provisions for Federal Funding Accountability and Transparency Act of 2006 (FFATA)

• Exhibit D – Rent and Income Limit Table• Exhibit E –Form Of Option Letter• Exhibit F – Procedure to Prevent Duplication of Benefits

• Assurances and Certifications (Exhibit I-B)• Excessive Force Resolution (Exhibit I-D)• Residential Anti-Displacement and Relocation

Assistance Plan (Exhibit I-F)• Intergovernmental Agreement (IGA) — if

necessary (Exhibit I-G)• Memorandum of Understanding (MOU) — if

necessary (Exhibit I-H)

Start-up Requirements

These exhibits are available in the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

These exhibits are available in the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

• Delegation of Signatory Auth. (Exhibit II-F)• Environmental Review Correspondence• Environmental Release of Funds Letter from

DOLA, followed by Final Award Letter• Executed CDBG-DR Grant Agreement Contract• Evidence of SAM registration of contractor and

subcontractors for debarment checks• Federal Funding Accountability and Transparency

Act (FFATA) Reporting

Start-up Requirements (cont.)

These exhibits are available in the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

These exhibits are available in the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

Payment Process Example

Incur cost/submit invoice

Receives reimbursement

Program Review/Approve

Reviews/Approves CORE payment

and DRGR Voucher

Cuts check

Package pay request Financial Review/Approve

Applicant DOLA FINANCEDR TeamProgram Lead CONTROLLER

Requests Check

DRGR Voucher Entry and CORE payment entry

Payment Requests

Payment Request Forms

•Quarterly—can be used for longer term projects•Monthly—should be used for shorter term projects

Payment Request Documentation

QUARTERLY REQUEST FORM

MONTHLY REQUEST FORM

Pay Request must have the following:•All supporting documentation for any cost(s) sought for reimbursement •Documentation of any match required for the grantee’s project, must accompany the form . •Documentation requirements include any documentation of procurement activities associated with the cost(s) requested for reimbursement.

Pay Request Documentation

Failure to submit th e full amount of supporting documentation will definitely delay payment of the amount requested until after the required documentation is received and fully reviewed.

Failure to submit th e full amount of supporting documentation will definitely delay payment of the amount requested until after the required documentation is received and fully reviewed.

• HUD requires quarterly performance updates on all CDBG-DR funded activities

• Performance will be collected with pay requests for short-term activities

• Quarterly reporting will be required for long-term activities– Progress– Beneficiaries

• Reporting requirements vary with eligible activity

Quarterly Performance

Reporting Requirements will be a required deliverable in the contracts.

Reporting Requirements will be a required deliverable in the contracts.

• Legal Notice and Public Hearing Minutes for Post-Award Public Hearing

• Programmatic Monitoring Letter

• Copy of Final Financial Status Report

• Copy of Final Payment Request

• Copy of Section 3 Report (if applicable)

• Copy Project Completion Report

• Project Close-out Letter

Project Closeout

• Completion and Submission of Audit to DOLA **OMB Circular A – 133 Compliance Supplement for single audit can be downloaded from: http://harvester.census.gov/sac/sainfo.html

• This supplement should be provided to the local government’s auditor prior to completion of audit.

• CDBG Catalog of Federal Domestic Assistance (CFDA) # is 14.228

• Acceptance of Audit from DOLA

Project Closeout (cont.)

Project Closeout (cont.)

See the CDBG Guidebook for complete closeout instructions at:

http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

See the CDBG Guidebook for complete closeout instructions at:

http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

AGENDA

• Introductions• Program Overview• Program Requirements• The Process – from Application to

Payment• Resources and Contacts• Q & A

• Colorado CDBG-DR Website: http://dola.colorado.gov/cdbg-dr

• DOLA’s CDBG Guidebook: http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

• CDBG-DR laws, regulations and federal register notices: https://www.onecpd.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/

• CDBG Environmental Guidebook: www.dola.state.co.us/environmentalreview

Web Resources

Contacts

Don Sandoval, North Central Regional Manager, DOLAdon.sandoval@state.co.usoffice phone: 970-679-4501

Dave Bowman, State Disaster Recovery Manager, DOLAdave.bowman@state.co.usoffice phone: 303-864-7877

Justin Hamel, Federal Grants Program Manager, DOLAjustin.hamel@state.co.usoffice phone: 303-864-7745

Contacts – Program AreasAlison O’Kelly, CDBG-DR Housing Programs, DOHalison.okelly@state.co.usoffice phone: 303-864-7821

Jill Hart, CDBG-DR Infrastructure Pgms, DHSEMjill.hart@state.co.usoffice phone: 720-852-6621

Andy Hill, CDBG-DR Planning Pgms, DLGandy.hill@state.co.usoffice phone: 303-864-7725

George Bistany, CDBG-DR Economic Development, DLGgeorge.bistany@state.co.usoffice phone: 303-892-3815

Lara Duran, CDBG-DR Agriculture Pgms, DLGlara.duran@state.co.usoffice phone: 303-869-9028

AGENDA

• Introductions• Program Overview• Program Requirements• The Process – from Application to

Payment• Resources and Contacts• Q & A