CDBG funds may be used CDBG-eligible. WebFormula-eligible entities are encouraged to submit this sheet as soon as possible to begin the application process. According to IRS Publication 4861, if a debt for which a person is personally liable is forgiven or satisfied for less than the full amount owed, the debt is considered canceled in whatever amount if remained unpaid. Here again, the disposition must lead to an eligible end use, such as affordable housing or low- to moderate-income (LMI) area benefit activities such as a park. 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. The CDBG regulations do not specify if children expected to be born to pregnant women are included as members of the household. Is the 20% threshold for verifications of CDBG self-certifications a hard and fast rule? Grantees may use the slum/blight area (SBA) national objective as well. table.style.display = 'none'; In 2010, FHWA developed a livability initiative to better coordinate federal aid highway programs with grant programs administered by HUD and EPA. WebWhen Congress passed the Housing and Community Development (HCD) Act of 1974, it broke down the barriers of prevailing practice -- where under separate categorical The low/moderate income housing national objectives may be used for this activity. When is a 2 CFR Part 200 audit or Single Audit required, and how much oversight is a grantee required to have over these audits? Any small city (or entitlement city) that chooses not to participate in the urban county's CDBG program is not considered part of the urban county for CDBG program purposes. CDBG-CV Grants III.A. The Community Development Block Grant (CDBG) Program Which version of the Application for Federal Assistance, also known as the SF-424 form, should I use? A business wants to apply for an infrastructure loan/grant to create a road to a building that is not built yet. The use allowance is an eligible activity delivery cost [see 24 CFR 570.207(b)(1)(iii)]. However, it is important to review a homebuyer's income and expenses, even when providing limited financial assistance such as down payment assistance, to help prevent applicants from entering into financial commitments that they will not be able to sustain over time. WebAll CDBG-CV1 grantees (CDBG entitlement and nonentitlement) are eligible to apply for a CDBG-CV2 grant. This is so that the possibility of default by the business may be minimized. (m) Community Development Block Grant Funds, CDBG Funds, Grant Funds, or Program Funds, means any funds allocated by a Standard Agreement pursuant to these guidelines, or previously funded to nonentitlement jurisdictions The security requirements for Section 108 loans are determined on a case by case basis, as described in CFR 24 570.705 (b). Code enforcement as an activity does not provide such a direct benefit to the household. 5305. WebCDBG funds may be used to provide direct homeownership assistance to LMI households in two ways. More information about the PR29 CDBG Cash on Hand report is available in the Instructions for the IDIS Cash on Hand Quarterly Report. However, the CDBG regulations give each grantee the flexibility to design its program based on locally-identified needs and priorities. Procuring the services of real estate development support professionals to provide sales support, and to brainstorm market opportunities in the area; Identifying opportunities to attend public events and to engage partners to participate in housing fairs in target areas; Meeting with local employers to determine if there is interest in employer-assisted housing programs; or. Yes. document.getElementById("no_matches").style.display = 'none'; CDBG-DR Fact Sheet - HUD.gov Urgent Need (URG) in limited situations**. HUD measures a CDBG grantee's timely expenditure performance 60 days before the end of a grantee's program year so if corrective actions or sanctions are imposed, a grantee will be informed of those actions prior to the start of the grantee's subsequent program year. One of the main values of the requirements under 24 CFR 85.20(b)(7) is there are less likely to be errors made in ordering of materials for the project when the materials are ordered closer to the project schedule. Access the product on the HUD Exchange Explore CDBG page by clicking on the link titled, "The Urban County CDBG Qualification Process--Requirements, Procedures and Deadlines.". WebThe Community Development Block Grant (CDBG) program requires the Qualifications Based Selection (QBS) procurement method for architectural and engineering services. Change of use rules apply to real property acquired or improved using CDBG funds in excess of $25,000. 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. If CDBG-Disaster Recovery funds are used, contact your Field Office for further direction. CDBG funds may be used more than once to rehabilitate the same housing structure. When provided as a forgivable loan, the CDBG regulations do not specify if IRS Form 1099C must be issued when the mortgage is forgiven. If you are in the midst of a project and remove a prime construction contractor, what are the options for completing the work so that a nonprofit owner is in compliance with the federal requirements? The population of entitlement communities (those having a population over 50,000) located within an urban county is not included. This question suggests that CDBG funds will make payments on the construction financing; Davis-Bacon applies in this case. The amount of funding a grantee commits to any individual business cannot exceed $50,000 per job. CDBG funds may be used to implement eligible activities (defined at 24 CFR 570.201 206). Can self-certifications of income be used in the CDBG Program to document that an activity has helped low- and moderate-income persons? The downpayment involves equity and the homeownership assistance adjusts debt. Under 570.202(c) the costs of correcting the code violations are not eligible. Theoretically, the state may choose to award any leftover FY 2018 funding to these UGLGs. Eligible Recipients. Note that demolition costs are not counted toward the $25,000. Use of SBA covers more properties; establishing an area as blighted requires more documentation. The applicable federal regulations are contained in: Most state and local governments have laws regarding procurement. Paragraphs C and D of Section 102(a)(6) of the HCDA were written in the law so that certain counties that Congress designated could qualify as urban counties. NRSAs should improve the housing and economic conditions in the area, along with physical and social outcomes. Consider if any changes are needed to the citizen participation plan to facilitate fund reprogramming. Staff should also review any state and local debarment lists. count++; Activity Delivery Costs: ADC for the public services should be included in the budgets of each activity. HUD recommends that a grantee with any circumstances leading to untimeliness discuss its situation with its field office as soon as possible to explore possible solutions. The correct method for submitting a three-year certification period is identified in FAQ 3512. What type of communities contribute to the population threshold for a county to be determined eligible for CDBG urban county status? document.getElementById("filterInput").value = d.getAttribute("data-id"); There is one particularly large building in the center of a neighborhood that has become an eyesore. The CDBG regulations allow the rehabilitation of owner-occupied mobile homes if they are considered part of the community's permanent housing stock. 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)]. WebOVERVIEW OF THE CDBG PROGRAM (CONT.) The population of unincorporated areas of the county are automatically included. All of this review documentation could be subject to some level of supervisory quality control, which could be done on a sample basis, allowing for increased supervisory review if discrepancies arise. 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. The CDBG overall benefit requirement is a statutory requirement which cannot be waived. Promise Zones located within a jurisdiction actively implementing comprehensive community revitalization and meeting boundary and demographic requirements, as confirmed by HUD's Office of Field Policy and Management, will be presumed to meet the above criteria and HUD-CPD will automatically approve the NRSA designation. } else { Under that scenario, not only is your CDBG investment unsecured but (assuming your intent is rehabilitation assistance rather than homebuyer assistance), you are in essence doing rental rehabilitation and would need the actual "owner's" approval to do the rehabilitation. Grantees are more likely to choose the benefit to low and moderate-income persons on an area basis national objective to ensure this requirement is met. The Final Rule will not affect what activities are eligible as a public service and thus subject to the public services cap. Note that after August 1, 2020, the final compliance date, all housing counseling required under or provided in connection with HUD programs, as defined in CFR 5.111 (b), must be provided by HUD certified housing counselors that must work for agencies approved to participate in HUD's Housing Counseling Program. Where is homeownership assistance cited in the CDBG regulations, and where may you find the list of activities defined as homeownership assistance? Henceforth, however, an activity that does not meet the definition of 24 CFR 5.100 should not be called housing counseling. Grantees will need to come up with another term to characterize this type of activity, such as housing information and referral services or homeownership education program or general budget/financial counseling. No, unlike housing rehab programs (e.g. The CDBG program gives grantees the flexibility and latitude to use their own definitions and criteria when defining deteriorated/deteriorating. If CDBG funds only pay for pre-development costs on a project that will ultimately lead to jobs for low- and moderate-income people, does the use of the CDBG funds in the project trigger Davis-Bacon requirements? CDBG - General Purpose Grants HUD determines the amount of each entitlement grantees annual funding allocation by a statutory dual formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. If the property never achieves an eligible end use that meets a national objective, the maintenance expenses may be found ineligible as well. 03E for neighborhood facilities). Your policies and procedures should govern what/and how they are included in your program. three years), the additional year(s) of services must be re-advertised and there must be full and open competition for the work. tr[i].style.display = ""; 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. What is considered a deteriorated/deteriorating area for CDBG program purposes? This is because some CDBG funds for a grant year may not be spent until the following or subsequent years. When disposing of a property purchased with CDBG funds, does the grantee need to ensure that the property will continue to meet a national objective? Grantees should submit one original executed SF-424 Form for each CPD grant the jurisdiction receives (CDBG, ESG, HOME, HOPWA, HTF). 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). Real property acquired with CDBG funds may be managed and maintained as an eligible disposition expense, but such work must be limited in duration. Requests for quotations may also be used for sealed bid procurements where the contract will be awarded to the firm whose bid, conforming with all of the material te CDBG regulations allow grantees to utilize third parties to perform the functions of program implementation. If the use changes and the subsequent use does not meet a national objective, then the property may be taken out of the program. A project funded by FHWA and CDBG is in conflict with Section 3 requirements for preferential treatment. Sta CDBG funds can be used for down payment assistance up to 50% of the lender required down payment amount. Identification of other activities to be carried out (whether CDBG-assisted or not) that will arrest the decline of the areas and their funding sources. Subrecipient agreements contain a scope of work that the participating local government or subrecipient (a public or private nonprofit) is required to perform; have a budget; and usually have a beginning and ending date. 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." When running the PR07, be sure to select the report that reads Vouchers Submitted to LOCCS. HUD measures compliance with this requirement by reviewing the expenditure CDBG funds that occurs during the one-, two-, or three-year certification period, as appropriate. Eligibility will need to be based on job creation; In your question you note that existing jobs are held by residents of the entitlement community. If the urban county became an urban county in 2000 or later, then it is possible for the urban county to lose its urban county status. If a business fails to meet the CDBG requirements within the economic development loan agreement, the grantee would typically require repayment of the loan. 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. The UGLG may join the urban county's CDBG program during the first, second or third year of its qualification period. If an entitlement grantee relinquished its entitlement status to join the urban county, it may regain its entitlement status by notifying HUD in writing of its intent by mid- September of the preceding fiscal year. Homeownership assistance cannot meet the low- and moderate-income area benefit national objective because it is a direct benefit activity. Some public uses that are eligible and meet a national objective are: If property is acquired with CDBG funds, what kind of expenses are eligible at the time of disposition? The grantee should draw more program income for the public service activities. WebCDBG Funds may be used to support HMIS only if: The HMIS costs are activity delivery costs of a public service activity in accordance with 24 CFR 570.201(e). Legal proceedings costs such as the salaries of hearing officers and attorneys may only be paid with CDBG funds to address issues raised by the code enforcement inspections that were CDBG-assisted. CDBG-CV Toolkit There is no regulatory or statutory requirement for grantees to assist property owners with addressing code violations discovered during CDBG-assisted code enforcement inspections. Please also note that federal acquisition requirements under the Uniform Relocation Assistance and Real Property Acquisition Policies Act are triggered. Yes, as a public service under 24 CFR 570.201(e) of the Entitlement CDBG regulations and Section 105(a)(8) of the Housing and Community Development Act (HCDA). However, it may only do so during the year that the UC is requalifying. These reasons include but are not limited to untimely performance, noncompliance with cooperation and/or subrecipient agreements, ineligible activities, activity does not meet a national objective, noncompliance with Davis-Bacon requirements or fair housing requirements. Under the aggregate public benefit standard, all the business loans the grantee makes during any given program year need to, in essence, average out to no more than $35,000 per job. Community Development Block Grant Program Approximately $4.5 million in assistance was made available statewide through MHMR Tarrant and The Harris Center who are administering the management and WebCommunity Development Block Grant Neighborhood Revitalization Program (CDBG-NR) Community Development Block Grant Neighborhood Revitalization Program (CDBG-NR) All project activities must meet a national objective to be eligible for CDBG funds. eCFR :: 24 CFR Part 570 Subpart C -- Eligible Activities WebFor the 2023 funding cycle, DLG will receive $25,726,812 for distribution. if (textInput.length > 0) { As long as the total amount of funds used for public service activities is equal to or less than 15% of the grant plus the prior year program income, the grantee has options to obligate/draw the entire amount for public service activities from grant funds, program income, or a combination of grant funds and program income. 24 CFR 570.308(a) states that a joint request shall only be considered if submitted at the time the county is seeking a three-year qualification or requalification as an urban county. Referencing the example in FAQ 3513, for 2014, the CDBG grantee would submit its certification for the three-year period (2014, 2015, 2016). In another example, City Y provides homeownership assistance for 30 units and rehabilitates 40 houses in its NRSA for a total of 70 units. The funds would not meet this definition of obligation until the contract is executed between the unit of government and the entity that will perform the work. Allocations of CDBG-CV Funds. *Note: The 15% public service cap is determined based on obligations for Entitlement grantees. ", The CDBG regulation states that the recipient, meaning the grantee, can "substitute a copy of a verifiable certification from the assisted person that his or her family income does not exceed the applicable income limit established in accordance with 570.3". In this case, the demolition would have to meet the slum and blight national objective, either on an area basis (SBA) or a spot basis (SB), unless the demolition is integral to another activity that benefits lower-income persons, such as affordable housing. HUD also recognizes that local codes may be written to address a broader spectrum of local health, safety and appearance issues than just building conditions. This is a single family residence and they own the lot that the mobile home is on. If grantees have an approved multi-year Consolidated Plan, they are not required to use IDIS to submit their Annual Action Plan until the next multi-year strategy is due. If neither of these is possible, the grantee must cancel the activity and reimburse its CDBG program for the costs. Perform a cash flow analysis of Revolving Loan Funds (RLFs) to determine whether the fund is over-capitalized (i.e. An existing urban county may use this method of requalifying as an urban county A metropolitan city, or a principal city (designated by Office of Management and Budget OMB) as such and having less than 50,000 population) may relinquish its entitlement status and join the urban county as a participating unit of general local government (UGLG), along with other UGLGs located therein. Consider making f 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." HUD, like all other federal agencies is looking at digital documentation. This does not include planning and administrative costs, but does include program income. Chapter 18 of the IDIS Online Training Manual, Grant Repayments, CPD Notice 16-16: NRSAs in the CDBG Entitlement Program, Keeping Your CDBG Funds Moving: Guidelines for Managing Your Overall Community Development Block Grant Program in a Timely Manner, Developing and Implementing a CDBG Workout Plan, The Urban County CDBG Qualification Process--Requirements, Procedures and Deadlines. var hasTopic = document.getElementById('topic_selector').selectedIndex; Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons. two bids must be received). Can I use the code enforcement activity to help low income homeowners correct their code violations? Although an entitlement city may be the location of the county seat (e.g., Chicago, Cook County), the city's population is not included in the urban county's population. If no national objective is ever met for either Acquisition or Disposition, then it is ineligible. However, please keep in mind that for purposes of determining eligibility of activities funded under Section 108 loans, CDBG General Policies and requirements apply. However, the grantee is always allowed to pursue repayment from the assisted business. However, because grantees are required to expend To be an eligible area for carrying out CDBG-assisted code enforcement, the area must be deteriorated/deteriorating in accordance with state/local law. These instructions include the use of Activity #2. Can Consolidated Plan Certifications be attached to the plan and sent in through the e-Con Planning Suite? Community Development Block Grant A CDBG Entitlement grantee wants to carry out homeownership assistance under 24 CFR 570.201(n) in a Neighborhood Revitalization Strategy Area (NRSA). The regulation at 24 CFR 570.207(b)(1) states that purchase of equipment with CDBG funds is generally ineligible. The applicable payroll and wage Davis-Bacon wage rates apply when CDBG funds pay in whole or in part for any direct cost of construction and the construction meets one of the following thresholds: Residential: property has more than 8 units Non Residential: Any construction work valued at more than $2,000 Certain CDBG activities or soft costs such as real property acquisition or architectural and engineering fees do not trigger Davis-Bacon requirements. Web While the county is using CARES Act funds, this CDBG -CV eligible activity would meet a LMA national objective provided the population of public facilitys service area is at least 51% Low -mod. The agreements are in effect for three years unless they contain an automatic renewal clause. HUD recommends that grantees' local policies and procedures are consistent across similar types of CDBG-funded activities (e.g. Documentation of the sale, either voluntary or involuntary, must be in the project file. Examples of 8+ unit properties may include: The requirement is more clearly explained in HUD Handbook 1344.1 Rev. 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. Therefore, UGLGs cannot have joint agreement 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. Where can I get resources to help the incorporated areas, the county commissioners, and other elected officials, especially, understand the CDBG urban county qualification and requalification process? "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). The report should be reflective of only the CDBG funds that were received, returned, or disbursed during the quarter period of the report. Where are the regulations that pertain to the disposition of assets purchased with CDBG funds? The building will be paid for by the business and the business will create 15 jobs. This is the minimum number of persons that reside in the county that must be low- and moderate-income to meet the preponderance test. Regulations on applicable provisions regarding procurement are 24 CFR Sections 85.36 (grantees) or 84.40 to 84.48 (subrecipients). This has the effect of the urban county relinquishing its status for that year. This means new hiring and contracting opportunities generated by the PJ/grantee, subrecipient that is related to work arising in connection with the HUD-assisted new construction or rehabilitation project would be subject to the Section 3 hiring and contracting goals. The following provides guidance on how to set up activity and report ADC in IDIS for different types of major CDBG activities. SB for demolition. For additional information, also see the FAQs on Urban Counties and on Joint Agreements vs. Cooperation Agreements. In addition, in accordance with 24 CFR 91.100, urban counties must consult with business and civic leaders; local and regional government agencies; the Continuum(s) No. A Neighborhood Revitalization Strategy Area (NRSA) is a Community Development Block Grant (CDBG) grantee-designated area targeted for revitalization. Why does HUD measure timely expenditure performance 60 days before the end of a CDBG grantee's program year, instead of on the last day of the program year? Content current as of December 8, 2021. CDBG funds will eventually be used to pay for the actual construction work to rehab a community center. The final decision on who will carry out activities in the urban county rests with the county. The example below shows how under No, when providing homebuyer assistance, grantees are not required to ensure that applicant households pay no more than 30 percent of household income for housing expense. The government-wide regulation that implements the URA can be found at 49 CFR Part 24. The primary intent of the CDBG program is for low- and moderate-income persons to benefit from CDBG-assisted activities. Absent full and open competition consistent with the requirements of 24 CFR 85.36, there is no basis to determine the reasonability of the contract price. Each program must be in a separate activity to demonstrate that each program has met a national objective.
The Hague Tech Membership,
San Francisco State University Athletics Staff Directory,
Washington County District Map,
When Was The First Bar Established?,
How Far Is Bensalem, Pa From Me,
Articles W
