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benefits;
E) Minimizing or avoiding reductions in essential services; or
F) Fostering energy independence.
iv. For each activity, the number of full- and part -time jobs estimated to be created
and retained by the activity, which will include permanent, construction and
temporary jobs.
v. A description of activities that will be carried out with CDBG -R funds to promote
energy conservation, smart growth, green building techniques or reduced
pollution emissions.
vi. Information on how to contact grantee or unit of general local government
program administrators so that citizens and other interested parties will know who
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to contact for additional information.
vii. A signed standard federal form SF -424, and signed certifications as specified in
section II.H. of this notice.
3. Citizen Participation Alternative Requirement. HUD is providing an alternative
requirement to 42 U. S. C. 5304( a)( 2) and ( 3), to expedite distribution of grant funds and to
provide for expedited citizen participation for the CDBG -R substantial amendment.
Provisions of 24 CFR 570. 302, 24 CFR 570. 486( a), 24 CFR 91. 105( k) and 91, 115( 1), with
respect to following the citizen participation plan, are waived to the extent necessary to allow
implementation of the requirements below. In addition, for States, 24 CFR 91. 110 is waived
to the extent necessary to eliminate the requirement that a state must consult with units of
local government in determining the state' s method of distribution in its substantial
amendment.
a. 24 CFR 91. 105( k) and 24 CFR 91. 115( i) are being waived to specify that the grantee
will provide no fewer than 7 calendar days for citizen comment (rather than 30 days) for its
CDBG -R substantial amendment. At the time of submission to HUD, each grantee will post
its action plan amendment and any subsequent CDBG -R amendments on its official website
along with a summary of citizen comments received within the 7 -day comment period. HUD
encourages the grantee to make copies of the substantial amendment available in public
places such as libraries and government buildings. In addition, the grantee must ensure that
non -English speaking persons and persons with disabilities have access to copies of
substantial amendments.
b. The regulation at 24 CFR 91. 505( c)( 1) states that a grantee may submit a copy of an
amendment to its action plan to HUD as it occurs or at the end of the program year. 24 CFR
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91. 505 is waived to require each grantee to submit the substantial amendment to its action
plan for CDBG -R funds no later than the deadlines specified in paragraph 4. below.
4. Submission Deadlines. Except as otherwise provided in this paragraph, entitlement
grantees, Insular areas and non -entitlement counties in Hawaii are to submit their substantial
amendments to their 2008 action plans to their HUD field office by June 5, 2009. States are
to submit the substantial amendments to their PY2008 action plans to their HUD field office
by June 29, 2009. The deadline for the substantial amendment for HPRP is May 18, 2009;
therefore, grantees that wish to submit a single substantial amendment for both programs
must do so by May 18, 2009.
Any grantee that will be submitting its program year 2009 action plan between the
date of this notice and June 5, 2009, may wish to consider ways in which it can combine the
citizen .participation and submission steps for its CDBG -R substantial amendment with those
for its 2009 action plan. Any entitlement grantee or non -entitlement county in Hawaii with a
program year start date of July 1 or earlier, and which has not yet submitted its program year
2009 action plan to its field office as of the date of this notice, may submit its CDBG -R
substantial amendment to its 2008 action plan simultaneously with the submission of its
program year 2009 action plan. However, in no case can such an entitlement grantee or non -
entitlement county in Hawaii submit its CDBG -R action plan amendment later than June 5,
2009. States that submit their substantial amendment to 2008 action plans by June 29, 2009,
will need to submit the 2009 action plan by its original deadline. However, the abbreviated
citizen participation process provided in this notice applies only to CDBG -R substantial
amendments, not to the submission of program year 2009 action plans. Existing regulatory
citizen participation requirements continue to apply to action plans submitted for regular
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CDBG funding, even if a grantee wishes to submit its CDBG -R substantial amendment
simultaneously with its program year 2009 action plan.
A grantee' s failure to meet the submission deadlines for CDBG -R, as applicable, may
constitute grounds for the Department to cancel the grantee' s CDBG --R funding allocation
pursuant to the provisions of section I.B. of this notice.
5. Program Design Considerations
Although the Recovery Act applies additional or alternative requirements upon
CDBG -R funding that do not exist in the regular CDBG program, this additional
appropriation is otherwise subject to all regular CDBG program requirements. HUD has
minimized the number of additional changes between CDBG -R and regular CDBG program
requirements, to maximize grantees' flexibility in administering these funds. The Recovery
Act also contains language which, while not stating explicit mandates, makes clear that
Congress intends the use of Recovery Act appropriations to be targeted to address current
economic conditions. For example, Section 1602 of the Recovery Act states that,
Recipients shall also use grant funds in a manner that maximizes job creation and economic
benefit." While grantees have the full range of CDBG eligible activities at their disposal for
CDBG -R, Congress clearly intends that CDBG -R funds should primarily be invested in
economic development, housing, infrastructure and other public facilities activities that will
quickly spur further economic investment, increased energy efficiency, and job creation or
retention. In selecting activities for CDBG -R funding, grantees should keep in mind that
some. eligible activities under the Housing and Community Development Act are unlikely to
substantively address the intent of the Recovery Act.
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At the same time, the broad purpose language of the Recovery Act does not expand
the list of eligible activities beyond those specified by the Housing and Community
Development Act. Some uses of funds suggested by the Recovery Act' s broad purpose
language do not necessarily fit into any CDBG eligible activity category, and may not be
eligible for CDBG -R funding. However, HUD has determined that the purpose language and
overall intent of the Act, particularly regarding Iocal fiscal stabilization, supersedes the
requirement at 42 U. S. C. 5301 (c) that CDBG funding not be used to substantially replace the
amount of local financial support previously provided to community development activities.
The Recovery Act also makes clear that grantees are to identify projects that can
achieve the Recovery Act purposes AND can be quickly implemented. Language at Title
XIr of Division A of the Recovery Act, which appropriates the CDBG -R funds, states that,
in selecting projects to be funded, recipients shall give priority to projects that can award
contracts based on bids within 120 days from the date the funds are made available to the
recipients." Section 1602 of the Recovery Act further states, " In using funds made available
in this Act for infrastructure investment, recipients shall give preference. to activities that can
be started and completed expeditiously, including a goal of using at least 50 percent of the
funds for activities that can be initiated not later than 120 days after the date of the enactment
of this Act."
Grantees should not assume that their nonnal CDBG funding distribution procedures
can meet the goals for obligation of funds described above. For example, if a grantee' s
existing activity selection process mandates a lengthy Request For Proposals, lengthy
procurement actions, or other process that would take months to produce funding
recommendations, grantees should explore what local waiver authority or emergency
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procedures they can implement to expedite the process. This may particularly be necessary
with some states, for which deviations from existing procedures could require state rule -
making. Some Urban County funding procedures that distribute funds on a proportional
basis among all participating jurisdictions could result in funding awards that are too small to
be used expeditiously and productively by the participating jurisdictions.
Grantees may have already identified activities that were approved to receive funding
out of the grantee' s FY2009 funding allocation. Grantees should consider whether any of
these activities meet the additional CDBG -R requirements, and if so, whether their
implementation schedules could be accelerated so that they could instead be funded with
CDBG -R funds. However, moving an activity from a grantee' s 2008 or 2009 program year
regular. CDBG program to the CDBG -R program, and replacing that moved activity with a
new activity, would trigger a substantial amendment to a grantee' s already- approved 2008 or
2009 action plan. This would trigger additional citizen participation requirements beyond
those required for the CDBG -R substantial amendment.
States should consider whether their existing method of distribution processes can be
employed to fund worthwhile activities that fell below the funding cut -off line from their
program year 2008 distribution process, or to fund applications already submitted for their
program year 2009 distribution process.
HUD encourages grantees to use CDBG -R funds for discrete, stand -alone activities
whenever possible. As noted elsewhere in this notice, final guidance on reporting
requirements and applicability of the Davis -Bacon Wage Rate Act has not yet been issued.
Amending a construction contract to add CDBG -R funding to an existing project
particularly one that is not otherwise federally funded) may subject the entire project to
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Recovery Act reporting and other compliance requirements. Grantees should also avoid
using CDBG -R funds to initiate a new project that cannot be completed within the
expenditure deadline for the CDBG -R program or that will require the commitment of future
years' allocations of regular CDBG funds.
However, HUD recognizes that the additional increment of CDBG -R funding may
not be enough for some grantees to fully fund a new activity. ( The amount of additional
funding allocated to grantees equals about 27 percent of their FY2008 regular CDBG
allocation.) Grantees should consider whether it is possible to issue a new contract to use
CDBG -R funds to fund an additional increment of work or services beyond that which is
already under contract or otherwise underway. For example:
A grantee may have
