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108 loan guarantee funds" from the
certifications.
2. Each jurisdiction will also sign and submit the following certifications:
a. a certification that the jurisdiction will comply with Title XII of Division A of the
American Recovery and Reinvestment Act of 2009.
b. a certification that in selecting projects to be funded, the grantee will 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, and will ensure maximum job creation and economic
benefit.
c. a certification that when CDBG --R funds are being used for infrastructure investments, the
grantee will give preference to quick -start and finish activities, including a goal to use at least
50 percent of the funds for activities within 120 days of enactment of the Recovery Act.
d. a certification that all iron, steel and manufactured goods used in construction, alteration,
repair, or maintenance of a public building or public work project assisted with CDBG -R
funds under the Recovery Act must be produced in the United States unless the Secretary
finds-that: ( 1) the requirement is inconsistent with public interest; ( 2) those goods are not
reasonably available or produced in sufficient quantity in the U. S.; ( 3) or the use of the goods
will increase the project cost by more than 25 percent.
e. a certification from the Governor, mayor, or other chief executive, as appropriate, that any
infrastructure investments have received the full review and vetting required by law and that
the chief executive accepts responsibility that the infrastructure investment is an appropriate
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use of taxpayer dollars. Alternatively, a grantee' s chief elected official may certify that
infrastructure investments will receive the full review and vetting required by law and that
the chief executive accepts responsibility that the infrastructure investment is an appropriate
use of taxpayer dollars.
f, a certification that, for activities carried out with CDBG -R funds using the urgent need
national objective where the urgent need is the current economic conditions, the activity is
alleviating current economic conditions which pose a threat to the economic welfare of the
community in which the activity is being carried out, the recipient is unable to finance the
activity on its own, and other sources of funding are not available.
g. a certification stating that the aggregate use of CDBG -R funds shall principally benefit
low- and moderate -income families in a manner that ensures that at least 70 percent of the
grant is expended for activities that benefit such persons over the life of the CDBG --
R grant.
Y. Paperwork Reduction Act
The information collection requirements in this notice have been approved by the
Office of Management and Budget ( OMB) under the Paperwork Reduction Act of 1995 ( 44
U. S. C. 3501 -3520) and assigned OMB Control Number 2506 -0184. In accordance with the
Paperwork Reduction Act, HUD may not
42
conduct or sponsor, and a person is not required to respond to, a collection of information
unless the collection displays a currently valid OMB control number.
J. Environmental Impact
A Finding of No Significant impact (FONSI) with respect to the environment has been made
for this issuance in accordance with HUD regulations at 24 CFR part 50, which implement
section 102( 2)( C) of the National Environmental Policy Act of 1969 ( 42 U.S. C. 4332( 2)( C)).
The FONSI is available for public inspection between the hours of 8: 00 a. m. and 5: 00 p. m.
weekdays in the Regulations Division, Office of General Counsel, Room 10276, Department
of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410. Due
to security measures at the HUD Headquarters building, please schedule an appointment to
review the FONSI by calling the Regulations Division at 202 -708 -3055 ( this is not a toll -free
number), individuals with speech or hearing impairments may access this number via TTY
by calling the Federal Information Relay Service at ( 800) 877 -8339.
Dated:
Xaun Secretary
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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
THE SECRETARY
WASHINGTON, DC 20410. 0001
May S, 2009
Dear CDBG Grantee:
In these difficult economic times, the U. S. Department of Housing and Urban
Development is pleased to announce additional funding for the Community Development Block
Grant ( CDBG) program under the American Recovery and Reinvestment Act of 2009 ( Recovery
Act). The attached CDBG Recovery Act ( CDBG -R) Notice provides your community with a
significant opportunity to address critical employment and economic development needs. In
accepting these funds, it is imperative, however, that you be good stewards of these precious
taxpayer dollars by focusing your efforts on the Recovery Act goals of investing in infrastructure
that will create or sustain jobs in the near -term and generate maximum economic benefits in the
long -term.
HUD is fully committed to implementation of the guidance provided by President Obama
in his March 20, 2009, memorandum regarding the need for responsible spending of Recovery
Act funds. The CDBG -R funding presents a unique set of challenges because of the wide range
of activities allowable under the CDBG program, as compared to the more narrow range of
activities allowable under the CDBG -R program. The goals of the Recovery Act are focused on
stimulating job creation and long -terra economic benefit. In an effort to ensure responsible
spending of Recovery Act funds, a number of actions have been taken,
First, Section 1604 of the Recovery Act prohibits the use of funds for certain types of
projects including aquariums, casinos, golf courses, swimming pools, and zoos. This prohibition
is clear and direct, and I-fM s guidance on the use of CDBG -R funds reflects these prohibitions.
In addition, HUD is:
1. Conducting extensive outreach to housing and community development officials through
such groups as the National League of Cities, the U.S. Conference of Mayors, the
National Association of County Officials, and the National Governors Association to
underscore the importance of focusing on the key elements of the Recovery Act as they
examine projects proposed for CDBG -R funding,
2. Adding a " terms and conditions" to all grant agreements that clearly reflect the obligation
of the grantee to comply with the Recovery Act in carrying out its responsibilities.
www. hud.gov espanoi. bud.gow
3. Providing detailed guidance to grantees regarding expectations for projects and activities
accomplished under the Recovery Act.
4. Encouraging grantees to engage with their auditors early in the planning process, as HUD
has been doing with the Office of the Inspector General, to ensure that major risks to
responsible spending are quickly identified, and mitigation strategies established, upfront.
Requiring grantees to identify, upfront, the specific activities and projects that they intend
to fund with CDBG -R funds. The CDBG citizen participation process will apply, with
the additional requirement that grantees post their plans on their own websites in order to
receive a greater level of public comment and scrutiny. Through these efforts, IUD
expects that imprudent projects will be identified and weeded out and that CDBG -R
funds will be used in a manner consistent with the purposes and goals of the Recovery
Act,
6. Posting all proposed grantee projects on the HUD Recovery website to provide complete
transparency and encourage greater scrutiny.
The economic crisis has resulted in many critical needs in our nation' s communities. In
order to respond to the core issues of job creation and long -term economic benefit, we must be
disciplined in spending Recovery Act funds. Through the actions outlined above, the
Department intends to reinforce President Obama' s message of responsible spending of critical
Recovery Act resources.
Sinc
Shaun Donovan
Attachment
12531
Federal Register
Presidential Documents
Vol. 74, No. 56.
Wednesday, March 25, 2008
Title 3— Memorandum of March 20, 2009
The President Ensuring Responsible Spending of Recovery Act Funds
Memorandum for the Heads of Executive Departments and Agencies
My Administration is committed to ensuring that public funds are expended
responsibly and in a transparent manner. Last month, I signed into law
the " American Recovery and Reinvestment Act of 2009," Public Law 111-
5 ( the " Recovery Act" or " Act "), an investment package designed to provide
a necessary boost to our economy in these difficult times and to create
jobs, restore economic growth, and strengthen America' s middle class. The
Recovery Act is designed to stimulate the economy through measures that,
among other things, modernize the Nation' s infrastructure, jump start Amer-
ican energy independence, expand high -quality educational opportunities,
preserve and improve access to affordable health care, provide middle -class
tax relief, and protect those in greatest need. It is not intended to fund
projects for special interests,
In implementing the Recovery Act, we have undertaken unprecedented efforts
to ensure the responsible distribution of funds for the Act' s purposes and
to provide public transparency and accountability of expenditures. We must
not allow Recovery Act funds to be distributed on the basis of factors
other than the merits of proposed projects or in response to improper influ-
ence or pressure. We must also empower executive department and agency
officials to exercise their available discretion and judgment to help ensure
that Recovery Act funds are expended for projects that further the job
creation,
economic recovery, and other purposes of the Recovery Act and
are not used for imprudent projects.
To these ends, I hereby direct that for any further commitments, obligations,
