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?