The grantee contracts with a CBDO to carry out the activity to serve 150 residents. Statutory requirements cannot be waived. Sec. The purpose of the fine cannot be to recover the cost of the code inspections and enforcement; The costs of carrying out the code inspections and enforcement were not paid with CDBG funds; or. If lower than $25,000, the grantee may dispose of property with no further requirements. Acquisition of real property, demolitionand disposition are all eligible activities. You can find HUDs description of the applicability of Davis-Bacon to CDBG projects provided on the Factors of Labor Standards Applicability page. The construction of a road using a CDBG infrastructure loan is subject to Davis-Bacon labor standards if the cost of construction is $2,000 or more, regardless of whether it is financed partially or completely with CDBG funds. Hearings are scheduled to ensure that property owners receive due process if they challenge the citation or fine assessed. A cooperation agreement allows an urban county to carry out eligible activities in participating units of general local government (UGLGs) where it cannot undertake essential community development and housing assistance activities. The property must support an eligible use and meet a national objective. CDBG funds may be used to pay salaries for code enforcement inspectors for the time spent conducting such inspections in CDBG-eligible areas (areas that meet the state/local definition of deteriorated/deteriorating). *Sales proceeds are program income. Within the NRSA, the activity may be qualified under the low- and moderate-income area benefit (LMA) national objective criteria. In many cases, PITI charges exceed 30% of the household's income. The HOME Program has long used a rate of $10.00 per hour as its established rate for unskilled donated or voluntary labor. // Call this to make sure we are honoring any text search string. For homeownership assistance, grantees have two options to set up activities. The federal law that applies federal prevailing wage rates (Davis-Bacon rates) to CDBG funding is Section 110 of the Housing and Community Development Act of 1974, as amended (42 U.S.C. The applicability of Davis-Bacon under CDBG turns on whether the property is in fact a residential property containing less than 8 units. } The fact that the property is considered a public facility for program eligibility purposes wouldnt alter its residential character. The disastrous occurrence is of a recent origin (within 18 months before the grantees certification), or the disastrous occurrence recently became urgent. May compliance with meeting the CDBG overall benefit requirement be waived? When only one bid is received in response to an invitation for bids, the grantee needs to carefully review and evaluate the relevant circumstances in making a decision about how to proceed. If you need more information on relocation, the HUD Handbook 1378might be useful. For joint agreements and cooperation agreements, there can be an renewable clause therein stating the agreements automatically renew. If the demolition is integral to another activity meeting the national objective of benefitting low- and moderate-income persons, the demolition could meet a national objective other than slums and blight. CDBG Programs - Community Development - Illinois In a HUD-approved NRSA, CDBG funds may be involved in the following incentives: What is an example of a project where housing units can be aggregated? 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 CDBG program must be reimbursed at current market value, regardless of the original purchase price. A CDBG or CDBG Disaster Recovery (CDBG-DR) grantee still has the flexibility to design activities to meet its locally identified needs. The new location is away from the homes of the current employees, but it would allow the company to create 50 new jobs. Depending on the program design and the intended beneficiaries, housing counseling may be eligible as a public service (under 24 CFR 570.201(e)), as part of a homeownership assistance activity (24 CFR 570.201(n)), or as a housing service in support of the HOME program (24 CFR 570.201(k)). Tennessee Department of Economic and Community Development Stuart McWhorter, Commissioner 312 Rosa L. Parks Avenue Nashville, Tennessee 37243 (615) 741-1888 ECD.Communications.Office@tn.gov Chat In most counties, the county government's essential powers do not apply to incorporated units of general local government (UGLGs) within the county. The required time and activity timesheets should be used to provide budget estimates for activity delivery and program administration. The policy should assure that all purchases are handled fairly and in a manner that encourages full and open competition. While not required by 2 CFR Part 200 regulations, the city could formally procure the services of the other jurisdiction(s). } else { function myFunction(e) { The city may contract with the urban county to administer its CDBG program; The city may remain an entitlement and enter into a joint agreement with the urban county during its year of requalification; or. The grantee operates a small business loan program for the purpose of creating new jobs. At the end of each program year, HUD will review the grantee's progress on measurable outcomes. Down payment assistance provided under 24 CFR 570.201(n) is restricted to low/moderate income households. tr[i].style.display = "none"; However, when the planned use does not come to fruition, grantees often struggle to find alternative end uses for these properties. 110 of the HCD Act. count++; How do you establish the basis for the 10% goal for contracts? Code enforcement may count toward the overall benefit requirement if the national objective of low and moderate area (LMA) is used. This means that participants would have to be income-qualified to ensure that a national objective is met. 03A for senior centers). Pursuant to the Consolidated and Further Continuing Appropriations Act, 2016, Pub. This public service cap is statutory and cannot be waived. Change of use rules apply to real property acquired or improved using CDBG funds in excess of $25,000. Property does not have an eligible end use. If there are balances under Activity #2, positive or negative, log into IDIS and search vouchers for Activity #2. PDF Monmouth County Division of Planning Office of Community Development Click on SF-424 Instructions. A grantee wants to encourage homeowners to remain in the neighborhood and offers a homeowner rehabilitation program. See the following CPD Policy Notice CPD-97-1, which is being updated, but still valid. Im doing code enforcement on housing so why cant it be eligible under LMH? 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. As states and units of general local government are subject to different procurement standards, there is no presumption that a state agency's procurement standards will conform to 24 CFR 85.36(b). This could include the executed original SF-424s, the required executed original certificat Notice CPD-12-012: Submission of Federal Financial Report Standard Form 425 provides guidance for the Entitlement Communities, Insular Areas, and Non-Entitlement Counties in Hawaii under the Community Development Block Grant (CDBG) program on the submission of the Federal Financial Report. Consequently, the project must conform not only to the Eligibility and National Objective requirements, but also to the appropriateness criteria (Public Benefit and Appendix A). console.log(e); For example, county X has a population of 200,475, not counting the populations of Entitlement cities Y and Z. The Local Law Enforcement Block Grants (LLEBG) Program provides funds to units of local government to underwrite projects that reduce crime and improve public safety. 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. How do we ensure compliance with the change of use rules with our CDBG activities? What should be included in a CDBG Workout Plan? HUD staff may provide guidance to the grantee remotely or onsite on how best to manage its CDBG program. Possibly Urgent Need (URG) in limited situations.**. What is the estimated value of the benefit being provided, whether direct or indirect? The plan should show how the grantee will meet the 1.5 timeliness performance standard by a specific date and identify all the actions the grantee expects to take to meet the specified timetable. Option1 (aggregate all units): The grantee may choose to enter all homeownership activities funded in a program year under one IDIS activity. If the fees to a general contractor/builder managing a project you cite are fees for services (e.g., communicating with building officials, consulting with the project architect, reviewing the construction schedule, conducting site inspections, etc.) "Financing" can mean, for example, using CDBG assistance to pay the interest charged to reduce the interest rate on a construction loan (including certain collateral accounts). These instructions include the use of Activity #2. table.style.display = 'none'; CDBG funds may only be used to pay the salaries for code enforcement inspectors for the time spent conducting inspections in areas that meet the state/local law definition of deteriorated/deteriorating or use the criteria at 24 CFR 570.208(b)(1) or 24 CFR 570.483(c)(1) to define deteriorated/deteriorating. Therefore, if a grantee has a contract with a firm for professional services such as engineering, surveying or architectural services, and it wants the firm to continue to do so beyond the time period specified in the original procurement and contract (e.g. Most communities include specifications for allowable appliances in their housing rehabilitation standards. This is also a free service. The City is thinking about creating a CDBG funded Microenterprise Loan Program. The Cash on Hand report should not include any local non-CDBG funds (such as those used to pay for CDBG expenses before reimbursement is received through IDIS drawdowns), and therefore the report should not have negative amounts. What kind of written agreements are required between a CDBG urban county and participating UGLGs? Code enforcement is a process whereby local governments gain compliance with ordinances and regulations regarding health and housing codes, land use and zoning ordinances, permitting, sign standards, and uniform building and fire codes in deteriorated or deteriorating areas in which such enforcement, together with public or private improvements or services to be provided, may be expected to arrest the decline of the area. Origin Bona-fide volunteers are excluded from Davis-Bacon requirements under CDBG (and other HUD programs). Yes. This should reduce the amount of CDBG funds required to fund the project.