Fort Walton Beach Council agenda — 06-02-09 special — reading text

CDBG activities is available to grantees, the Department strongly suggests that grantees incorporate consideration of the public perception of the intent of the Recovery Act in identifying and selecting projects for CDBG -R funding. On March 20, 2009, President Obama issued a memorandum to the heads of executive branch agencies, entitled " Ensuring Responsible Spending of Recovery Act Funds ". ( This memorandum was published in the Federal Register on March 25 at 74 FR 12531.) This memorandum lays out principles and steps that federal agencies are to take to ensure responsible distribution and use of Recovery Act funds. Grantees should ensure that the activities that they select for CDBG -R funding adhere to the expectations of this notice, particularly those of Section 2( c). The Department must emphasize the following points to recipients of CDBG -R funds. Certain specified activities and/ or projects may not be funded with CDBG -R funds pursuant to the Recovery Act and this includes swimming pools, golf courses, zoos, aquariums, and casinos or other gambling establislunents. Other activities generally prohibited under regulations governing the regular CDBG program are also prohibited under CDBG -R. This includes prohibitions on the construction of buildings for the general conduct of govermnent, political activities, purchase of equipment, and operating and maintenance expenses. Other CDBG restrictions may also apply including bans on assistance to professional sports teams, recreational facilities that serve a predominantly higher income clientele, and general promotional activities for the grantee. Table of Contents I. ALLOCATIONS A. Formula: Allocation B. Formula: Reallocation II. ALTERNATIVE REQUIREMENTS AND REGULATORY WAIVERS A. Pre -Grant Process 1. General 2. Contents of a CDBG -R Action Plan Substantial Amendment 3. Citizen Participation Alternative Requirement 4, Submission Deadlines 5. Program Design Considerations B. Reimbursement For Pre -Award Costs C. Recovery Act Requirements For CDBG -R Expenditures D. Program Income Requirements E. Eligibility, Allowable Costs, and National Objective Waivers F. Timeliness of Use and Expenditure of CDBG -R funds G. Reporting H. Certifications I. Paperwork Reduction Act K. Environmental Impact I. ALLOCATIONS A. Formula: Allocation, The Recovery Act appropriates $ 1 billion of CDBG funding and Pursuant to is distributing $ 980 million to grantees that received CDBG funding in F'Y2008. provisions of the Recovery Act, HUD has reserved $ 10 million to address its administrative costs and has allocated $ 10 million to the Indian CDBG program, as required by 42 U. S. C. 5306( a). Any unit of local government that did not apply for its FY2008 funds is not eligible to receive CDBG -R funding. The formulas for the allocation of CDBG -R funds are the same as the fonnulas used for the annual allocation of CDBG funds to the states, entitlement grantees, and Insular Areas. On February 25, 2009, HUD announced the list-of the CDBG -R allocations, and these may be found at http:Hwww.hud,gov /recovery /cdblock,efin. B. Formula: Reallocation. To expedite the use ofCDBG -R funds, the Department is specifying alternative requirements to 42 U.S. C. 5306(c) and 42 U.S. C. 5306( d)( 3)( C). The Department has detennined that it is necessary to employ an alternative reallocation process in order to expedite grantees' timely use of any reallocated funds. Under the existing provisions of 42 U. S. C. 5306, funds that become available for reallocation would be reallocated as part of the process for allocating the next fiscal year' s appropriation of regular CDBG funding; this means any unawarded CDBG -R funds would not get reallocated until sometime in federal fiscal year 2010. To expedite the reallocation process, HUD is adopting the following procedure instead. If a unit of general local govenuent, State, or Insular Area receiving an allocation of CDBGrR funds under this notice fails to submit a substantial amendment to its program year 2008 action plan for its grant allocation by the deadlines specified in Section II.A.4. of this notice, or submits an application for less than the total allocation amount, or if HUD is unable to approve any entity' s submission, HUD may notify the jurisdiction of the cancellation of all or part of its allocation amount. Once HUD determines the amount of funds (if any) that are not awarded to any jurisdictions, the Secretary will establish performance criteria by which to award these funds to other entities. These criteria will be published in the Federal Register. However, these criteria will be established only if funds become available for reallocation. II. ALTERNATIVE REQUIREMENTS AND REGULATORY 'WAIVERS This section of the notice provides a justification for alternative requirements and describes the necessary basis for each regulatory waiver. The section also highlights some of the statutory provisions applicable to the grants. This background narrative is followed by the CDBG -R requirement( s). Each grantee eligible for a CDBG -R grant has already received an annual allocation of FY2008 CDBG funds, has carried out needs hearings, has a consolidated plan, an annual action plan, a citizen participation plan, a monitoring plan, an analysis of impediments to fair housing choice, and has made CDBG certifications. The consolidated plan already discusses housing needs related to up to four major grant programs: CDBG; Home Investment Partnerships Program ( HOME); Emergency Shelter Grants ( ESG); and Housing Opportunities for Persons Witli AIDS ( HOPWA). A grantee' s annual action plan describes the activities budgeted under each of those annual programs. The CDBG -R grant is a supplemental appropriation. As such, HUD is treating a grantee' s use of its CDBG -R grant to be a substantial amendment to its current approved consolidated plan and PY2008 annual action plan, ( For grantees that received an allocation under the Neighborhood Stabilization Program ( NSP), this will constitute a second substantial amendment to the PY2008 annual action plan.) Treating the CDBG -R as a substantial amendment and requiring grantees to amend the PY2008 annual action plan will expedite the distribution of CDBG -R funds, while ensuring citizen participation on the specific use of the funds. HUD is also waiving the consolidated plan regulations to the  8 extent necessary to adjust the reporting requirements for the use of CDBG -R funds to comply with the Recovery Act. These waivers and alternative requirements apply only to the grant fiends appropriated under the Recovery Act and not to the use of regular formula allocations of CDBG funds, even if they are used in conjunction with CDBG -R funds for a project. The waivers and alternative requirements provide expedited program implementation and implement statutory requirements unique to this supplemental appropriation. A. Pre -Grant Process Pursuant to Recovery Act provisions, HUD is treating CDBG -R funds as a special allocation of CDBG funding. HUD is requiring grantees to provide a substantial amendment to their PY2008 annual action plans. To receive CDBG -R funding, each CDBG grantee must submit to HUD a substantial amendment to its action plan in accordance with this notice, by the deadlines specified in Section II.A.4. of this notice. This submission will include a signed standard federal form SF -424, signed certifications, and a substantial action plan amendment meeting the requirements of paragraph 2. below. Grantees may immediately begin to prepare and submit substantial amendments to their action plans for CDBG -R funds, in accordance with this notice. HUD will consider any existing cooperation agreements between a local goverrunent and an urban county governing FY2008 CDBG funding ( for purposes of either an urban These county or a joint program) to automatically cover CDBG -R funding as well. cooperation agreements will continue to apply to the use of CDBG --R funds for the duration of the CDBG -R grant. For example, a local government presently has a cooperation agreement covering participation in an urban county for federal FYs 2007, 2008, and 2009.  9 The local government may choose to discontinue its participation with the county at the end of the applicable qualification period for purposes of regular CDBG entitlement funding. However, the county will still be responsible for any CDBG -R projects funded in that community, and for any CDBG -R funding the local government receives from the county, until those funds are expended and the funded activities are completed. Each grantee will have until the deadlines specified in paragraph 4, below to complete and submit a substantial amendment to its annual action plan. HUD encourages grantees, during development of their action plan amendments, to contact HUD field offices for guidance in complying with these requirements. In the regular CDBG program, a grantee is required to provide 30 calendar days for soliciting comments from its citizens before it submits an annual action plan to HUD. Then, HUD has 45 calendar days to accept or reject the plan. To expedite the process and to ensure that the CDBG -R grants are awarded in a timely manner, while preserving a reasonable citizen participation process, HUD is waiving the requirement that the grantee follow its citizen participation plan for this substantial amendment. HUD is shortening the minimum time for citizen comments to 7 calendar days and requiring the substantial amendment materials to be posted on the grantee' s official website as the materials are developed, published, and submitted to HUD. Grantees are cautioned that, despite the expedited application and plan process, they are still responsible for ensuring that all citizens have equal access to information about activities assisted with CDBG --R funds. In addition, grantees must ensure that non -English speaking persons and persons with disabilities have access to copies of substantial amendments. Since not all citizens have internet access, HUD  a encourages grantees to make copies of substantial amendments available in public places such as libraries and government buildings. HUD will not require states to follow their existing citizen participation plan requirements, either for the state' s development of this substantial amendment or for the development of funding proposals by units of general local government. The citizen participation pursuant to CDBG -R will be conducted at the state level and must assure that citizens and units of general local goverrunent have an oppoMmity to comment on all proposed activities to be undertaken with these funds. HUD is therefore waiving the provisions of 24 CFR 91. 115( e) and 24 CFR 570. 486( a), However, states are encouraged to establish alternative procedures for units of general local government that will provide reasonable citizen access to information and participation in the local decision -making process. To facilitate the