The costs of the homebuyer education and credit counseling courses may still be charged as activity delivery costs of homeownership assistance under 24 CFR 570.201(n), but only if the grantee enters all its homeownership assistance activities for the program year in IDIS under one activity. The percentage of self-certifications for which a grantee has back-up verifiable income documentation, though recommended to be 20%, is ultimately a function of several factors, as noted above. tr = table.getElementsByTagName("tr"); There are three primary areas for the NRSA designation: Detailed information on what is required for an NRSA designation is available in CPD Notice 16-16: NRSAs in the CDBG Entitlement Program. Does the use of CDBG funds to pay fees to a general contractor/builder managing a project trigger Davis-Bacon requirements? 3 apartment buildings each consisting of 5 units and located on one tract of land. Ensure multiple staff members have IDIS access to both initiate and approve drawdown requests to address sudden or unexpected employee absences. This activity is not frequently No. The grantee has the discretion to choose the method it prefers. 24 CFR 570.209(d) addresses the actions HUD may take if the public benefit standards are not met as projected. What is code enforcement for CDBG program purposes? The CDBG Review Activities process sends emails accordingly: A grantee local IDIS administrator can edit user privileges and/or update the CDBG First and Second contact in IDIS to add/remove individuals from receiving these auto-generated email notifications. Activity Delivery Costs: If referral services, homeownership education programs, or general budget/financial counseling is provided to homebuyers in conjunction with homeownership assistance, the services are considered activity delivery costs. console.log(filter); Staff should also review any state and local debarment lists. If the economic development activity is eligible, the public benefit standards apply. 24 CFR 5.1003 describes the DUNS number requirement in detail. Activity #2 is essentially the repository for CDBG funds adjustments. HUD's 45-day review period begins when the last item is received by the field office. Grantees must develop and maintain a written code of standards that helps prevent conflicts of interest in procurement. For additional information, also see the FAQs on Urban Counties and on Joint Agreements vs. Cooperation Agreements. Yes, the CDBG rules allow for the rehabilitation of both parts of a duplex, as long as one household is below 80% of area median income (570.208(a)(3)). (Section 102(a)(6)(B) of the HCDA). tr[i].style.display = ""; ELIGIBILITY: Acquisition - 24 CFR 570.201(a) for Entitlements, Section 105(a)(1) for States; Disposition - 24 CFR 570.201(b) for Entitlements, Section 105(a)(7) for States; Clearance-Demolition - 24 CFR 570.201(d) for Entitlements, Section 105(a)(4) for States. If you need more information on relocation, the HUD Handbook 1378might be useful. 24 CFR 85.32(e) / [2 CFR 200.313(e)] pertains to the disposition of equipment by the grantee or subrecipient. Even though CDBG funds are being used in the acquisitio All procurements made with CDBG funds must comply with the applicable federal requirements found in 24 CFR Part 85.36. A county that has a minimum population of 200,000 may also qualify as an urban county if the unincorporated areas and participating units of general local government (UGLGs) in the aggregate have a preponderance of persons of low and moderate income that reside in the county (preponderance test). However, it is based on expenditures for state grantees. It depends on when the county became an urban county. This is because the city is located centrally in the county, providing easy access to people all over the county. Yes. If lower than $25,000, the grantee may dispose of property with no further requirements. to run its CDBG program on its behalf. The grantee must perform basic underwriting to determine the appropriate level: enough to make the cost affordable, but not so much that it creates undue enrichment. Therefore, if the Manual Payment was deducted from 2015 or subsequent grant years, the grantee must fund the Section 108 repayment activity from the same origin year grant. There are instances when CDBG funds are used for demolition to make way for related non-federal assisted construction. Is it OK if the Consolidated Plan General Certification combines the acquisition/relocation and the anti-displacement and relocation certifications into one document? It is at the grantee's discretion regarding the provision of assistance as a grant or loan. At the grantee's option, it could also pay 50% of the downpayment on behalf of the family. Self-certifications are not intended to be used with housing and other direct-benefit activities, such as down payment assistance, where significant financial benefits accrue to the beneficiary of the activity. A business wants to apply for an infrastructure loan/grant to create a road to a building that is not built yet. What can a CDBG grantee do if it knows in advance it is going to be untimely? In the past, HUD presumed the strategic plan for an EZ or EC within an Entitlement community met the above criteria and, therefore, approved an initial NRSA submission at the written request of the grantee without further review. When to apply General Purpose Grant Application - The 2023 CDBG General Purpose Grant Application cycle is now open. Funds drawn down erroneously must also be returned to HUD in a timely manner. HMIS is used to col CDBG funds may support only those Homeless Management Information System (HMIS) costs that are activity delivery costs of a public service activity in accordance with 24 CFR 570.201(e) for Entitlements and Section 105(a)(8) of the HCDA for States. The timeliness test, which is taken 60 days before the grantee's program year end date, includes available grant balances undisbursed by Line Of Credit Control System (LOCCS) and CDBG program income the grantee has on hand. In another example, City Y provides homeownership assistance for 30 units and rehabilitates 40 houses in its NRSA for a total of 70 units. Cooperation agreements do not identify the activities to be carried out by the UGLGs. Yes. The more general term for these activities is homeownership assistance. This amount includes funds received (both fund types, EN and AD) for all CDBG activities including planning and administration. Vehicles are often used by code enforcement inspectors for transportation from one site to another. What happens in IDIS when a CDBG grantee misses a Section 108 repayment? 24 CFR 5.1003 describes the DUNS number requirement in detail. No. SB or SBA is allowable if the end use is clearing blighted property in a flood zone. APPLICATION INSTRUCTIONS The Local Law Enforcement Equipment Grant Announcement, Application Instructions, Forms, other related documents and final reporting documents can be downloaded and/or accessed from the DFA-IGS LLEBG program website http://www.dfa.arkansas.gov/offices/intergovernmentalServices/grants/Pages/llebg.aspx "Essential powers" refers to the ability of a county government to undertake essential community development and housing assistance activities in its unincorporated areas, if any, which are not units of general local government. tr[i].style.display = "none"; The Office of Block Grant Assistance (OBGA) sponsored a webinar series for CDBG grantees on best practices in CDBG Program administration. What are those activities? Coveralls and hand-held electronic devices may only be used by code enforcement inspectors when they are conducting CDBG-eligible code enforcement inspections. Yes. The requirements, including terms of the agreement, including the possibility of waiving repayment for the activity, would need to be part of the grantee's policies and procedures and contained in the CDBG written agreement between the grantee and the business. It was part of the Bureau of Justice Assistance office. Use of SBA covers more properties; establishing an area as blighted requires more documentation. HUD's Office of Public and Indian Housing will confirm the Choice Neighborhood's status and barring any inconsistencies, HUD-CPD will presume that these areas have met the NRSA standards and will automatically approve the NSRA designation. This can be done as a stand-alone homeownership assistance activity under 24 CFR 570.201(n) as well as other eligible costs such as principal write-downs, closing costs, etc. The CDBG Cash on Hand Report should display only the CDBG funds that were received, returned, or disbursed during the quarter, and therefore you can use IDIS reports to assist in completing the information. Section 3 applies to projects of a certain scope and monetary amount and is triggered when the following thresholds are met and new hiring and/or contracting opportunities are generated by the use of grant funds. There is no regulatory or statutory requirement for grantees to have written strategies and plans in place to address code violations before carrying out CDBG-assisted code enforcement. When completing the SF-425 line 10a Cash Receipts should I include the total amount of funds received through IDIS drawdowns for the reporting period, including both EN and AD fund types? More information about the PR29 CDBG Cash on Hand report is available in the Instructions for the IDIS Cash on Hand Quarterly Report. The Community Development Block Grant (CDBG) Program was established by the U.S. Housing and Community Development Act of 1974 ("HCD Act"). The URA is quite complex. However, when the planned use does not come to fruition, grantees often struggle to find alternative end uses for these properties. Does the CDBG overall benefit requirement include Section 108 loan guarantee funds? Costs for legal proceedings such as salaries of hearing officers and attorneys (salaries and timesheets). Grantees that want to use the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act definition of homeless must be made aware that they cannot presume that persons at risk of homelessness are low- and moderate-income. The second year an entitlement grantee is untimely, HUD has the authority to reduce the next year's grant by the dollar amount by which the grantee missed the 1.50 ratio. We want to charge activity delivery costs that were previously billed to CDBG administrative costs. Funds drawn down erroneously must also be returned to HUD in a timely manner. HUD will also determine whether the untimeliness was due, in "Timely performance" means compliance with the requirement that a CDBG Entitlement grantee, or Hawaii nonentitlement county grantee, must carry out its program in a timely manner, as measured by the rate of expenditure of funds from the grantee's Line of Credit (LOC). Non-entitlement units of general local government (UGLGs) choosing not to participate in the urban county's CDBG program may apply for CDBG funds from the State where it is located or choose not to participate in the CDBG program at all. In addition, the plan should include a discussion of projects which are behind schedule and the possibility of replacing them with faster-moving projects, as well as funds available for reprogramming. Coveralls and hand-held electronic devices may only be used by code enforcement inspectors when they are conducting CDBG-eligible code enforcement inspections. TTY: 202-708-1455, Privacy Policy | Web Policies | Accessibility | Sitemap, Privacy Policy | Web Policies | Accessibility | Sitemap. The beneficiary should also be informed that all sources of income and assets must be included when calculating annual income, depending upon the specified definition of the CDBG grantee (e.g., Part 5 (24 CFR 5.609), or the IRS definition. The CDBG program must be reimbursed at current market value, regardless of the original purchase price. There is a conflict with Section 3 which requires that preferential hiring be afforded to those living in the project area and FHWA regulations that prohibit preferential hiring. These activities also have different IDIS matrix codes. If so, what regulations govern the provision of CDBG down payment assistance? This collection of products will help grantees: create transformative impact in your community, improve the lives of residents, especially those with low- and moderate-income levels; develop strategies that bring partners and resources together; and implement your program effectively. HUD encourages the entitlement community and urban county to ensure their residents benefit in proportion to the percentage of CDBG funds contributed by each entity for the activity. In such cases, the change of use rules apply, as described at 24 CFR 570.505 for entitlement grantees and 24 CFR 570.503(a)(7) for subrecipients. The funds repaid to the line of credit will be credited to the original activity and zero out the draws. What is the estimated value of the benefit being provided, whether direct or indirect? However, if the grantee enters each household assisted under separate IDIS activities, the grantee may recategorize the activity delivery costs incurred as a program administration cost [24 CFR 570.206], provided it does not cause the grantee to exceed the 20 percent planning and administration cap. If down payment assistance is funded as a public service, this activity would count towards the 15 percent public services cap under 24 CFR 570.201(e). Provides input regarding activities to be funded with CDBG, Other responsibilities may be spelled out in the joint agreement, as agreed to by the entitlement and the UC, The UC is required to expend the entitlement's CDBG grant in and for the benefit of that entitlement, Develops Consolidated Plan and Action Plan, Program Income and Timeliness computed by UC, Work with the UC to determine what activities need to be carried out, The UC maintains all responsibilities for CDBG grant administration such as submission of the Consolidated Plan/Action Plan and CAPER, A-133 audit, Assessment of Fair Housing, environmental review, design of the UGLGs CDBG program, and management/oversight of subrecipients, The UC may select UGLGs for CDBG awards but is not required to award CDBG funds to every participating UGLG. Should an SF-424 form be submitted for each grant? The answers to all these questions and others should play into the sample size a CDBG grantee requests for verifiable income documentation. Is it based on the total value of the construction contract or is it based on the value of the covered contracts for building trades work, such as carpentry, masonry, plumbing, electrical, and demolition? May CDBG grantees change their selected overall benefit certification periods whenever they want to do so? Are the match funds from the private business that will be used to build the building considered part of the CDBG project and therefore Davis-Bacon is required on the construction of the building? Im doing code enforcement on housing so why cant it be eligible under LMH? The acquisition, construction, reconstruction, rehabilitation, or installation of distribution lines and facilities of privately-owned utilities, which includes the placing underground of new or existing distribution facilities and lines under 24 CFR 570.201(l); Digital literacy classes as a public service under 24 CFR 570.201(e); and, Economic development grants/loans to for-profit businesses, particularly businesses that focus on broadband/Internet access and technology under. Each grantee makes decisions about how its program is run. There are three national objectives for the CDBG program: benefiting low-moderate income persons, removing slum and blight, and meeting urgent needs. The grantee must return the funds to the LOC unless it can revise the draws to another activity that has immediate cash needs. 5310). Each homeowner receiving assistance must be low- or moderate-income. Make use of the regulatory authority to incur-pre-award costs (24 CFR 570.200(h)), where appropriate and permitted by state/local law. If over $25,000, the grantee must give affected citizens reasonable opportunity to comment on the proposed change. Community Development Block Grant Program - HUD.gov A grantee expends close to 100% of its CDBG grant on activities that benefit low- and moderate-income persons in a single year. There must be a clear distinction between the amount of CDBG funds being provided for downpayment assistance and the amount provided for subsidizing the mortgage principal or interest rates. Note that a defendant's legal costs are not eligible costs. Grantees may look at collateral and other means of recovering their CDBG dollars if a business defaults on its loan payments if it does not want to forgive the loan. The organization plans to do 10 owner occupied rehabs of single family, one-unit properties. Can a unit of general local government (UGLG) join a CDBG urban county during any year of its three-year qualification period? The following table compares requirements for Joint Agreements and Cooperative Agreements. What are some common ways in which properties are disposed in the CDBG program? The documentation for national objective is LMI benefit via the creation of jobs (24 CFR 570.483(a)(4). Community Development Block Grant (CDBG) in 3 minutes The UGLG must write back to the urban county with its decision to participate or defer participation in the county's CDBG program. There are a number of project costs that may be paid with CDBG funds without triggering the Davis-Bacon requirements. Select activities in the Action Plan that are ready to go and include a list of back-up activities that could be funded in case the originally selected activities encounter delays. The flexibility a grantee exercises regarding the 20% sampling recommendation can be a function of several things. In a CDBG acquisition activity, do the environmental review requirements at 24 CFR Part 58 apply? document.getElementById("no_matches").style.display = ''; Related expenses of code enforcement inspectors, such as equipment, uniforms, and vehicles. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education progr. The entitlement city may contract with a nearby unit of government (city, town, county, state agency, council of governments, etc.) Budgets for activity delivery and program administration cannot be combined in your Annual Action Plan or in IDIS. HUD still requires original ink signatures on all certifications and SF-424s. Grantees may use general funds or obtain a private loan to assist the activity. If the business fills th For CDBG economic development activities, the terms of the loan are negotiated between the grantee and the business being funded. References: 2 CFR Part 225, Appendix B, #8(h)(3) and 24 CFR 570.502(a)(4). Urban counties must have cooperation agreements with UGLGs unless state/local law gives the urban county essential powers countywide, even in incorporated UGLGs. The activity may also meet the low- and moderate-income limited clientele national objective provisions at 24 CFR 570.208(a)(2)(i)(B) or (C). At an informal consultation, a grantee is given the opportunity "to demonstrate," as stated in 24 CFR 570.902(a)(1)(ii) and (2)(ii), "to HUD's satisfaction that the lack of timeliness has resulted from factors beyond the grantee's reasonable control." Grantees and subrecipients that are governmental entities are required to use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal law and the standards identified in 2 CFR 200.320. If your project does not meet the threshold for compliance with the new construction standard, accessibility must be provided to the maximum extent feasible. Does our organization need to submit a separate Cash on Hand report in IDIS for each of our open CDBG grants? Each CDBG grantee's certification period is separate and distinct. For example, 14A and 14G are two different types of rehabilitation, the grantee must set up two separate activities in IDIS, one for all 14A units, one for all 14G units.). (If there is no subrecipient agreement between the grantee and subrecipient concerning the activity, or if the subrecipient agreement contains no expiration date, the activity must continue to meet a national objective in perpetuity.) There are no specific guidelines or maximum amounts for the cost of appliances included in housing rehabilitation. The city offers homeowners forgivable mortgage loans funded through the CDBG program for qualifying activities involving home ownership, down payment or rehabilitation of property. The CDBG regulations permit grantees to decide how to provide CDBG assistance. The primary national objective used by grantees carrying out CDBG-assisted code enforcement is benefit to low- and moderate-income persons on an area basis [24 CFR 570.208(a)(1)]. Code enforcement activity may take place in residential, commercial, or industrial areas. A grantee should draw down funds from its LOC on a regular, periodic basis commensurate with cash needs, to ensure consistent bill payment. The Final Rule does not mandate that anything previously characterized as housing counseling must now either meet the new requirements or stop receiving CDBG funds. To request that a portion of the Promise Zone area also receive NRSA designation, the grantee should submit the NRSA proposed boundaries and demographic information for HUD review. Explore CDBG. If the use changes and the subsequent use does not meet a national objective, then the property may be taken out of the program. If I use CDBG dollars for demolition and cleaning of a site for a larger project which triggers Davis-Bacon, is it required the private dollars invested for construction also follow the rules of Davis- Bacon? A CDBG grantee may submit an NRSA strategy at any time. We are planning to provide technical assistance and training to owners of microenterprises and persons developing microenterprises for a small fee.
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