Transcript Arial Black Headline

South Carolina
Community Development
Block Grant Program
American Recovery and
Reinvestment Act
CDBG-R Recovery Funds
Implementation
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
o Requires 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 1974
HUD 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 report
o Contractor and Vendor report
o Section 3
o 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
oInstructions
oSample
 Section 3 Compliance
oHUD Handout
CDBG-R Recovery Program
Any questions?