The Ins and Outs of CDBG Homeowner ReimbursementApril 2, 2015; 8:30 a.m. – 10 a.m.

Leslie Bean, Housing Manager

• “My father gave me these hints on speech-making: Be sincere…be brief….be seated.” James Roosevelt

Agenda

• Introduction

• Federal Requirements

• Program Implementation

• Best Practices

• Lessons Learned

• Document Guide

Introduction

• Federal Register Volume 78, No. 43, March 5, 2013 states “ The provisions of 24 CFR 570.489(b) are applied to permit a State to reimburse itself for otherwise allowable costs incurred by itself or its recipients sub-grantees or sub-recipients on or after the incident date of the covered disaster.

•

Introduction

• CPD-13-05 B. Generally Applicable Terms:

HUD will permit grantees to charge to grant the pre-award and pre-applications costs of homeowners for eligible costs they have incurred in response to a Presidentially-declared disaster.

For Rehabilitation and Reconstruction costs, grantees mayonlycharge costs for activities completed within the same footprint of the damaged structure.

Costs must be adequately documented

A duplication of benefits check must be completed before providing assistance.

Introduction

• “The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy.”

Martin Luther King Jr.

Federal Requirements

• National Objectives:

Low and Moderate Income (LMI)

Urgent Need

• Davis-Bacon

Not required but check with local/state building code departments

• Civil Rights Requirements

504, Americans w Disabilities Act, Fair Housing

Federal Requirements

• Environment Grantee is responsible for completing the environmental reviews in

accordance to Federal laws including Section 106

Lead-Based Paint Rule applies to homes built prior to January 1978. A housing unit can be exempt if:

The homeowner undertook CDBG-eligible activities that qualify as emergency actions necessary to safeguard against imminent danger to human life, health /safety, or to protect the property from further structural damage. (see 24 CFR 35.115(a)(9).

The rehab did not disturb any painted surface

An inspection performed found to property contained no lead-based paint

Lead paint had been identified, removed and cleared.

Property is meets the “housing for the elderly definition” or “persons with disabilities” but no child 6 years or under resides in the home. (see 24 CFR 35.110)

Federal Requirements

• Duplication of Benefits (DOB)

Section 312 of the Robert T. Stafford Disaster Assistance and Emergency Relief Act (42 U.S.C. 5155) prohibits any person, business concern, or other entity from receiving financial assistance with respect to any part of a loss resulting from a major disaster as to which he has received financial assistance under any other program or from insurance or any other source

Program Implementation

• Develop program policies

The policies should reflect the action plan.

Be careful not to include procedures in the policies

Consult with other communities

Ensure the policies are approved by all applicable parties

*Remember-You must have procedures identifying how you plan to verify and monitor the policies.

Program Implementation

• Develop Procedures DOB

Acceptable Documentation

Verification of Sources

Allowable/Unallowable Expenses

Income

Part 5

1040

Self Certification

Document Control

MIS

Paper Files

Version Control

Program Implementation

• Develop Procedures (cont….)

Due Diligence

Homeowners that apply but never provide appropriate documentation

Unable to verify documents through a 3rd Party

Appeals

Process, Forms, Letters, Tracking

Quality Control

One level or Two levels?

Beginning, Middle, End?

Best Practices

• Develop program policies and procedures before starting program and accepting applications

• Streamline the process

• Promote program through various avenues

• Develop Tracking Systems

• Develop program policies and procedures before starting program and accepting applications

Lessons Learned

• Do not set up this program to mimic a rehab/reconstruction program

• Policies should not more stringent that local/state/federal requirements

• Properly review the receipts the first time

• Hire extra staff to just make copies of receipts

Document Guide(Index)

• CPD-13-05, July 30, 2013

• Disaster Relief Appropriations Act, 2013

• 24 CFR 58.5 and 58.6

• 2 CFR part 225

• FR Vol. 78 No. 43, March 5, 2013

• FR Vol. 76 No. 221, November 16, 2011

• www.hud.gov

Questions

• Leslie Bean; beanlj@cdmsmith.com