Henry County Community Development Block Grant (CDBG) Program Manual

Transcription

1 Henry County Community Development Block Grant (CDBG) Program Manual Henry Parkway McDonough, Georgia ; Fax Revised September 8,

2 Preface The Community Development Block Grant (CDBG) is a federal grant program administered by the U.S. Department of Housing and Urban Development (HUD) that provides funds to communities for a variety of public projects and services. Henry County, Georgia is a new federal CDBG Program entitlement Urban County. As such, the county will receive CDBG funds each year from HUD for housing and community development activities. The CDBG Program is administered and implemented in the Community Development Department of Henry County government. County CDBG funds will be used to address a variety of housing, public service, public facilities, infrastructure, and economic development needs within Henry County and all of the municipalities located within its boundaries. Specifically, the Cities of Hampton, Locust Grove, McDonough and Stockbridge in addition to the unincorporated areas of Henry County will be served through the utilization of CDBG funds. For the purpose of this manual nonprofit agencies and municipalities awarded Henry County CDBG funding will be referred to as subrecipients. Likewise, the County will be used in reference of Henry County or more specifically the Henry County CDBG Program. This manual is to provide nonprofit agencies, municipal officials and the public information on the administration and implementation of the County s CDBG program to permit them to utilize available CDBG funds. The manual is designed to assist nonprofit agencies and municipal subrecipients and applicants in understanding the requirements of the program. An explanation of the history and goals of community development, the eligible program activities and subrecipient requirements are also included in the manual. Future updates of information within this manual will be provided to subrecipients during the Federal Fiscal Years of Additionally, these updates will be made available to the public and applicants through the CDBG Program s website at For more information about the Henry County CDBG Program, please call or send correspondence to the Henry County CDBG Program via at [email protected], mail or hand deliver to 140 Henry Parkway; McDonough, GA

3 Table of Contents Page # Section I: An Introduction to the Community Development Block Grant (CDBG) Program... 5 Section II: CDBG National Objective... 9 Section III: Eligible Activities Section IV: Documenting Benefit Section V: Henry County Priority Needs and Strategies Section VI: The Application Process Section VII: Subrecipient Responsibilities Section VIII: Funding Distribution, Expenditures and Operational Policies Section IX: General Program Policies Section X: Other Federal Requirements that Apply to CDBG Environmental Review Lead Based Paint Labor Standards [24 CFR Parts 1, 3, 5, 6, and 7] Georgia Security and Immigration Compliance (GSICA) Section 3 [24 CFR Part 135] Minority and Women Owned Businesses (MBE/FBE) Procurement [24 CFR Part 85] Equal Employment Opportunity Civil Rights and Section Uniform Relocation Act Section XI: Appendixes Appendix A: FY14 Incomes Limit Summary

4 Table of Contents (Continued) Appendix B: FY14 Fair Market Rents Appendix C: Percentage of Low/Moderate Income Census Block Groups Appendix D: Map of Eligible Low/Moderate Income Census Block Groups Appendix E: CDBG Reimbursement Request (Required Documentation) Appendix F: Sample Environmental Review Request Form Appendix G: Conflict of Interest 24 CFR Part Appendix H: Faith Based Organizations Appendix I: Procurement Policy Appendix J: Methods of Procurement Appendix K: CDBG Subrecipient Monitoring Plan Appendix L: Henry County National Register of Historic Places Appendix M: Definitions of Commonly Used CDBG Terms

5 SECTION I AN INTRODUCTION TO THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM What is the Community Development Block Grant Program? Established by Title I of the Housing and Community Development Act of 1974, by the Nixon administration, the primary goal of CDBG is to develop and strengthen viable urban communities by providing decent housing and suitable living environments principally for low- and moderate-income persons and/or households. In contrast to previous federal discretionary programs that required applications for specific categorical grants, the 1974 legislation enabled communities to develop flexible, locally specific, and comprehensive community development strategies by consolidating several programs into block grants. Inherent in the strategy is the requirement that CDBG-funded projects and services meet one of the Programs National Objectives: Provide a benefit to low/moderate income persons. Eliminate or prevent slums and blight. Meet an urgent community need of recent origin that threatens the health or welfare of residents. Since its passage in 1974, the Act has been amended to reflect changes in federal priorities and experience from program implementation. The Housing and Community Development Act of 1977, for example, opened CDBG funding opportunities to previously ineligible applicants. Acts in 1979 and 1981 expanded the list of eligible economic development activities and changed the citizens participation requirements. While the program objectives have remained consistent, the emphasis on low- and moderate-income benefits has been increased. The Housing and Community Development Act of 1983 added the requirement that at least fifty-one percent (51%) of all persons benefiting from a particular CDBG activity must be in the low- to moderate-income category. The block grant funds are made available annually through HUD to states and urban entitlements or participating jurisdictions that administer the funds and allocate them to municipalities and nonprofit agencies for community development 5

6 projects. The amount of each entitlement grant can change annually. A statutory formula, which includes an objective analysis of community needs based on poverty, population, and age of housing stock, is used to determine the actual annual allocation to entitlement entities. Henry County s funding priorities and policies for CDBG are a result of the County s 5-year Consolidated Plan process. Henry County CDBG projects shall be designed to meet the goals and objectives of the County s current year Consolidated Plan. It is important to note that due to its generally more affluent population, HUD has established an exception criteria that lowers the LMI Area Benefit percentage requirement for Henry County to 44.6%. As required by HUD, Henry County has established priorities for how it allocates CDBG funds for projects and services that benefit low- and moderate-income persons and/or households. The County shall solicit input on projects and services it should provide through needs assessment and public hearing dialogue with its residents and service providers. The information obtained through these meetings, combined with demographic and census data research, will be utilized by the County to derive its priority needs. Once these needs are identified, this information is used to guide the selection of projects and services to be funded. These projects and services are then documented in an Annual Action Plan (AAP) submitted to HUD as a part of a 5-year Consolidated Plan. The AAP is the description of how the County will implement the 5-year goals as outlined in its Consolidated Plan. The County s Consolidated Plan can be found on the CDBG Program s website at for review. The County s Consolidated Plan priorities are: Housing Needs Homeless Needs Community Development Needs Henry County shall use this information to guide its award of CDBG funds through its competitive grant application process. The County solicits applications from agencies that provide projects and services that are consistent with the intent of the CDBG program and meet the priorities established for the County. The County s application cycle coincides with a July 1- June 30 fiscal year. It is important to note, that the County is not obligated to fund projects and services until several factors are accomplished. This includes the county s receipt of its annual Funding Approval/Agreement from HUD; the Board of Commissioners adoption the 6

7 County s proposed AAP, and the execution of a legally binding contractual agreement between the county and the subrecipient. Community Development in Henry County Each year the Henry County Board of Commissioners, based upon recommendations from the CDBG Program staff will submit an AAP on behalf of the County to HUD. This plan will incorporate projects developed by municipalities and non-profit agencies and recommend funding for these projects and services. In its role as CDBG entitlement, the County has established goals and objectives for meeting the needs described in the Consolidated Plan. Maximum priority is given to those projects and services that benefit low- and moderate-income persons through housing rehabilitation, job creation, infrastructure improvements, and the provision of public services (see Section V: Henry County Priority Needs and Strategies). 7

8 Examples of 2013 CDBG funding awards are listed in the table that follows. Project National Objective Eligible Activity Award Amount Southern Crescent Habitat for Humanity Low/Mod Housing (Limited Clientele) Rehabilitation & Preservation Activity (Housing) $160,000 City of Hampton City of Stockbridge Low/Mod (Area Benefit) Low/Mod (Area Benefit) Public Infrastructure $150,000 Public Facility $150,000 Haven House, Inc. Low/Mod (Limited Clientele) Public Services (Services to battered spouses) $36,426 Hands of Hope Clinic, Inc. Low/Mod (Limited Clientele) Public Services (Medical Care Assistance) $36,426 A Friend s House, Inc. Low/Mod (Limited Clientele) Public Service (Support services and transitional housing for homeless youth) $36,426 Connecting Henry, Inc. Low/Mod (Limited Clientele) Public Service (Employment Training) $36,426 8

9 SECTION II CDBG NATIONAL OBJECTIVES The Basic Requirements To develop a CDBG project it is helpful to follow a step-by-step process. In order to be eligible for funding, each proposed CDBG activity must comply with four (4) steps. The project or service must: Meet a National Objective; Be an Eligible Activity; Be Adequately Documented; and Must have other funding for each project/activity. CDBG is not sole source funding. It is therefore extremely important to determine at the outset whether a project or activity meets one of the three National Objectives of the CDBG program. To begin, ensure that the proposed project meets one of these criteria: Step 1: Meeting the National Objectives All projects and services must meet at least one (1) of the following: Provide a benefit to low- to moderate-income persons and/or households; Aid in the prevention or elimination of slums or blight; or Meet an urgent community development need of recent origin that threatens the health or welfare of residents. It is important to note that unless a proposed project or service meets one of the National Objectives, it will not be considered for funding. The following is a brief discussion of each National Objective including definitions, criteria, and examples. A. Criteria for Activities Benefiting Low/Moderate Income Persons: A low- or moderate-income person is defined in the statute as a member of a household having an annual income equal to or less than 80% of the median income as defined by HUD. The two pertinent median income limits for CDBG 9

10 are as follows: Low income = 50% of median Moderate income = 80% of median The median income changes annually, therefore, the household s low- and moderate-income levels may also change. Every applicant must document the income levels of the potential beneficiaries of CDBG funding at the time of application submission to ensure that at least 51% of the beneficiaries meet HUD guidelines. Due to an exception criteria from HUD this is reduced to 44.6% for LMI Area Benefit projects. For income guidelines, see Appendix A. Activities, which benefit low/mod income persons, may be classified as providing: Area Benefit Limited Clientele Benefit to persons of low/moderate income Housing Benefit to persons of low/moderate income Job Creation or Retention for persons of low/moderate income Examples of potentially eligible activities under the Area Benefit category may include activities such as street improvements; water and sewer line upgrades; and neighborhood facility construction. Potentially eligible activities under the Limited Clientele Benefit category may include the construction of a senior center; public services for the homeless; job training or job creation for low/mod income individuals; and meals on wheels for the elderly. Potentially eligible Housing Benefit Activities include the acquisition of property for permanent housing; rehabilitation of permanent housing; conversion of non-residential structures into permanent housing; and eligible activities connected with new housing construction. For an activity of Job Creation, the recipient must document that at least 51 percent of the jobs will be held by, or available to, lowand moderate-income persons. For activities designed for Job Creation or Retention, permanent jobs where at least 51 percent of the jobs, computed on a full time equivalent basis, involve the employment of low- and moderate-income persons. Section IV contains information on specific guidelines for determining and documenting low- to- moderate income benefit. To test whether a project will meet the low-and moderate-income benefit National Objective, it is helpful to follow these guidelines: 1. To determine a project s eligibility using Area Benefit, refer to the lowand moderate-income area map in Appendix D. If the area is not eligible using this data, applicants may contact the County CDBG Program 10

11 Office to request to make a petition to HUD to conduct an area survey. At least 44.6% of households within the identified service area must meet the low- to- moderate income limits in Appendix A. 2. To calculate Limited Clientele Benefit, determine the total household income of each user by household size. At least 51% of users must meet the income limits. 3. To calculate Housing Benefit Activities, households meeting the income guidelines must occupy single-family structures. If the structure contains more than one unit, at least 51% of the units must be occupied by households meeting the income limits. Note: The income of all adults (not necessarily related) living in the household must be combined and compared to the income limit for the number of persons living in the household. The CDBG Coordinator is available to assist applicants in this evaluation. B. Criteria for Activities to Prevent or Eliminate Slums or Blight Activities that address the prevention or elimination of slums or blight may be classified as: An Area Basis A Spot Basis An Urban Renewal Basis 1. Prevention or Elimination of Slums or Blight on an Area Basis. (It is strongly recommended that applicants contact the County for guidance if they plan to meet this national objective). In order to qualify under the National Objective of slums/blight on an Area Basis, an activity must meet all of the following criteria: i. The area must be designated as a slum/blight area by the governing jurisdiction; and must meet the definition of a slum, blighted, deteriorated, or deteriorating area under state or local law. ii. A substantial number of deteriorated or deteriorating buildings or 11

12 public improvements must be located throughout the area. iii. Documentation must be maintained by the governing jurisdiction on the boundaries of the area and the conditions, which qualified the area under this objective at the time of designation. iv. The activity must address one of the conditions which contributed to the deterioration of the area. Potentially eligible activities include assistance to commercial or industrial businesses; public facilities and improvements; and code enforcement provided the assistance is designed to address one or more of the specific conditions which qualified the area. 2. Prevention or Elimination of Slums or Blight on a Spot Basis. In order to qualify under the National Objective of prevention or elimination of slums or blight on a Spot Basis, the activity must meet all of the following criteria: i. The activity must be designed to eliminate specific conditions of blight or physical decay at a specific location not incorporated in a slum or blighted area; and ii. The activity must be limited to acquisition, clearance, relocation, historic preservation, or building rehabilitation to eliminate specific conditions detrimental to public health and safety. Potentially eligible activities under the objective to prevent or eliminate slums or blight on a spot basis include the removal of faulty wiring or falling plaster; historic preservation of a public facility; and demolition of a vacant, deteriorated, (non-historic) abandoned building. 3. Elimination of Slums or Blight in an Urban Renewal Area. This category is intended to permit the redevelopment of areas in which activities were begun under funds received under the Federal Urban Renewal program (replaced by the CDBG Program). C. Criteria for Activities to Meet an Urgent Community Development Need 12

13 In order to qualify an activity under the objective of meeting an Urgent Community Development Need, an activity must be designed to alleviate existing conditions in which the governing jurisdiction certifies all of the following: i. The existing conditions pose a serious and immediate threat to the health, safety or welfare of the community; and ii. The existing conditions are of recent origin (within the last 18 months); and iii. iv. The grantee is unable to finance the activity; and Other funding resources are not available. A condition will generally be considered of recent origin if it developed or became critical within 18 months preceding certification. Activities meeting the urgent needs criteria involve emergency or disaster situations with substantial costs which overextend the ability of a community to pay the costs through local taxation. Examples of activities meeting the Urgent Community Development Need objective include ruptured sewer and water mains; damages resulting from major catastrophes; or emergencies such as floods and earthquakes. 13

14 SECTION III ELIGIBLE ACTIVITIES Step 2: Determining Eligibility Once an activity has been classified as meeting a National Objective, the second step is to determine whether CDBG funds may be used for a specific project or activity. Many types of activities qualify for CDBG assistance. This section describes these in detail by type. The proper classification of an activity insures that CDBG funds are used only for eligible activities and may further identify applicable statutes, requirements, and regulations for certain activities. A. Activities that are Eligible HUD has established the listing of eligible activities below as provided in the CDBG regulations. It should be noted that the list occasionally changes and that several activities have specific eligibility requirements. The following are considered eligible activities: Public Facility/ Infrastructure Improvements Related Activities Acquisition of Real Property (land and/or building) - in whole or in part, by purchase, long-term lease, donation or other (a) Disposition of Real Property (land and/or building) - the payment of costs incidental to the disposition of real property acquired with CDBG funds (b) Installation, construction, reconstruction, rehabilitation, and installation of public facilities (except government buildings) (c) Clearance and demolition (d) Interim Assistance for Public Facilities and Improvements - including limited improvement to a deteriorating area as a prelude to permanent improvements and activities to alleviate an emergency condition (f) 14

15 Privately-Owned Utilities - including acquisition, reconstruction, rehabilitation, and installation of such (l) Code Enforcement (c) Fire Protection Equipment considered for this purpose to be an integral part of a public facility and thus, purchase of such equipment would be eligible under (c) Construction Equipment limited to the purchase of construction equipment for use as part of a Solid Waste Disposal facility (c) Removal of material and architectural barriers that restrict the mobility and accessibility of elderly or severely disabled persons to public facilities (c) Relocation costs incurred by displacement from CDBG projects (i) Loss of rental income by owners holding units for persons displaced by CDBG projects (j) Homeownership assistance, such as down payment assistance or mortgage interest subsidy for homebuyers (n) Rehabilitation and Preservation Related Activities Rehabilitation of properties including privately-owned homes, publically-owned housing, publically or privately-owned commercial or industrial buildings, non-residential buildings owned by nonprofits, and manufactured housing when it is part of the permanent housing stock (a) Historic Preservation - the rehabilitation, preservation and restoration of historic properties. Historic properties, publicly or privately owned, may include those listed on or eligible for listing on the State or National Registers of Historic Places (d) Renovation of closed buildings (e) 15

16 Lead-based paint testing, evaluation, reduction, and clearance (f) Improvements to increase the efficient use of energy and or water in a structure (b) Connection of residential structures to water distribution lines or local sewer collection lines (b) Rehabilitation Services to include rehabilitation counseling, energy auditing, preparation of work specifications, loan processing, and inspections (b) Public Service Activities (e) Employment training Crime Prevention Child Care Health and drug abuse and education Furnishings and Personal Property limited to such items necessary for use by a recipient or its subrecipients in the administration of activities assisted with CDBG funds, or when eligible as firefighting equipment, or when such items constitute all or part of a Public Service Operating and maintenance expenses associated with Public Service activities, interim assistance, and office space for program staff employed in carrying out the CDBG program. The use of CDBG funds to pay allocable costs of operating and maintaining a facility used in providing a Public Service even if no other costs of providing such service are assisted with CDBG funds. Fair housing counseling and homebuyer pre-purchase counseling Energy Conservation Economic Development Activities , and (o) 16

17 Acquisition, construction, rehabilitation, or installation of commercial or industrial buildings or railroad spurs. Grants, loans, loan guarantees, interest subsidies to businesses. Administrative costs directly related to economic development projects. Special activities by Community-Based Development Organizations (CBDOs) that are part of a broader effort to revitalize a neighborhood. Assistance to micro-enterprises, such as loans, grants, technical assistance, or supportive services. Planning and Administration and Preparation of general plans such as the Consolidated Plan. Functional plans such as housing plans. Neighborhood plans and general historic preservation plans. Policy planning, management, and capacity building activities. Monitoring General program administration: o General management, office expenses, travel, legal services, and salaries. o Public information, Fair Housing activities, indirect costs, and preparation of applications for federal funds. o Does not include costs to directly deliver a specific project. B. Activities that are Explicitly Ineligible: Despite apparent inclusion within the listing of eligible activities, some activities fall within a category of explicitly ineligible activities. In general, any activities not authorized under the provisions of eligible activities are ineligible for funding. The following activities may Not be assisted with CDBG funds: 17

18 Buildings (or portions thereof) utilized for the General Conduct of Government (unless the proposed activity is related to ADA compliance being the removal of material or architectural barriers that limit the accessibility of elderly persons or adults with severe disabilities ( (a)(2(ii)); General Government Expenses - required to carry out the regular responsibilities of general local government; and Political Activities - the use of CDBG funds to finance facilities or equipment for political purposes or to engage in other partisan political activities, such as candidates forums, voter transportation, or voter registration is not eligible. In addition, the following activities will generally Not be assisted with CDBG funds: Purchase of Equipment - for example, construction, fixtures, motor vehicles, furnishings and other personal property not an integral structural fixture is generally ineligible; Operating and Maintenance Expenses any expense associated with repairing, operating or maintaining public facilities, improvements and services in ineligible. Examples of ineligible operating and maintenance include: the maintenance and repair of publically owned streets (filling of pot holes in streets, repairing of cracks in sidewalks, replacement of expended street light bulbs), parks (the mowing of recreational areas), water and sewer facilities, neighborhood facilities, senior centers, centers for persons with disabilities; Payment of staff salaries, utility costs and similar expenses necessary for the operation of public works and facilities; New Housing Construction the construction of new permanent residential structures or for any program to subsidize or assist such new construction is ineligible except: o When carried out by an entity pursuant to (a) Income payments any series of subsistence - type grant payments, such 18

19 as Housing allowances, food, clothing or utilities. C. National Objective Once an activity has been determined eligible, it is wise to check again to be sure the activity address one of the three National Objectives described in Section II. 19

20 SECTION IV DOCUMENTING BENEFIT Step 3: Obtain Adequate Documentation How to Prepare Information for Your Community Development Application The essential aspect of any community development project is the information presented to document the National Objective addressed by the proposed community development project. Step 3 in this process is data collection to justify that the proposed project meets a particular National Objective. The three National Objectives described in Section II are benefit to low- and moderate-income persons; prevention of slums and blight; or meeting an urgent need. The following chart summarizes the different National Objectives and the documentation required to justify project funding under them: National Objective Low/Mod Income Benefit Requirements Map identifying the boundaries of the service area Income characteristics of the users Most recent quarterly/annual reports on beneficiaries and users by income Example of Data Sources Survey of residents incomes in the service area Census and Block Group information Income surveys of all users of project/service 20

21 National Objective Requirements Example of Data Sources Removal of Slum or Blight Board resolution designating area under state or local law Substantial number of buildings or public improvements must be deteriorated Map delineating boundaries of area Activity addresses one or more of the deteriorated conditions Detailed narrative describing programs and comprehensive plans for improvements Urgent Need Certification that condition poses serious threat to the health and welfare of the community Condition is recent Governing jurisdiction is unable to finance project No other resources or funds are available Pre-rehabilitation inspection reports and a Phase I Environmental Site Assessment Infrastructure conditions report Detailed survey of building conditions and code violations Urban renewal plans Turndown letters indicating no other source of funding is available Health Department reports documenting a serious condition Evidence that applicant-designed activity to address the urgent need 21

22 A. Benefit to Low-and Moderate-Income (LMI) Persons ( (a)) Activities benefiting low- and moderate-income (LMI) persons: Activities meeting the criteria in paragraph (1), (2), (3), or (4) of this section as applicable, will be considered to benefit low- and moderate-income persons unless there is substantial evidence to the contrary. In assessing any such evidence, the full range of direct effects of the assisted activity will be considered. (The recipient shall appropriately ensure that the activities that meet these criteria do not benefit moderate-income persons to the exclusion of low-income persons.) As described in Section II, Low/Moderate income benefit activities are classified as Area Benefit; Limited Clientele; Housing Activities; or Job Creation or Retention. 1. Area Benefit ( (a)(1)) HUD provides census data for the areas that qualify under the low/moderate income benefit on an area basis. The most current data and the accompanying maps delineating the areas for this application cycle are based on Census data (see Appendix A, C and D). The activity may benefit all of the area s residents. It is important that all the boundaries of the service area be clearly defined. This area need not be coterminous with census tracts or other officially recognized boundaries, but must include the entire area served by the activity. This National Objective is met if an eligible nonhousing activity is undertaken and at least 44.6% of the residents in the defined service area who benefit from this activity are LMI. Examples of eligible Area Benefit projects are: New sidewalks in a low/moderate income neighborhood A new paved road or water and sewer system in a low/moderate income neighborhood A new playground in a low/moderate income neighborhood To qualify a project as Area Benefit for persons of low- and moderateincome, an applicant/subrecipient must: 22

23 a. Establish the boundaries of the service area of the proposed community development project. The service area must be primarily residential in character and the activity must meet locally identified needs. b. Document the income of the families in the service area. If the HUD low- and moderate-income area data available does not show the area to be part of a low- and moderate-income block group, and there is reason to believe that the area is a pocket of poverty, the County can provide technical assistance for conducting a survey of the households in the service area (see Appendix E). 2. Limited Clientele Benefit ( (a)(2)) Activities in this category benefit a specific group of people, rather than all the residents in a particular area. These are non-housing activities that are eligible because they are designed to benefit a limited number of persons. HUD requires that at least 51 percent of the members of these specific groups be persons of low- to moderate- income. Data on incomes of users is often available from the files of the service agency or sponsoring organization. Examples of eligible Limited Clientele activities are: Construction or rehabilitation of a community center, center for senior citizens, homeless shelter, job training facility, or domestic abuse shelter Public services for the homeless or battered spouses, Meals on Wheels for the elderly, or food pantries, etc. To qualify under this category, the activity must meet one of the following tests: a. Benefit a clientele 51 percent of which must meet the HUD definition for low/moderate income persons. Those benefiting from the activity must be documented, by family size and income, to show that at least 51% are LMI; 23

24 b. The activity has income eligibility requirements limiting the activity to LMI persons only; c. Benefit a clientele generally presumed to be principally low/moderate income persons. The following groups are currently presumed to meet this criterion: Abused children Severely disabled adults (as defined by the Bureau of Census) Elderly persons (62 years of age and over) Illiterate adults Migrant farm workers Battered spouses Persons with HIV/AIDS Homeless persons Therefore, the description of severely disabled adults and elderly persons is not the determining factor; the 51% low- moderate-income is the determining factor. d. Be of such nature and location that it may be concluded that the beneficiaries will primarily be low- and moderate-income persons. Documenting Limited Clientele Benefit with User Data Applicants/Subrecipients who need documentation for limited clientele projects can obtain information about beneficiaries and users with CDBG survey forms. Nonprofit organizations, depending upon the type of activity they conduct, may already have user or intake forms and statistics. For example, health care centers may use intake forms to document family income; day care centers may use admittance applications to obtain data, etc. The County s CDBG Coordinator will provide assistance in the development of a CDBG survey form for any organization that does not currently have one. The following activities Do not qualify under the Limited Clientele category: 24

25 Activities that benefit all the residents of an area; Activities involving acquisition, construction or rehabilitation of property for housing; or Activities that benefit LMI persons through the creation or retention of jobs, Except job training and placement and/or other employment support services (a)(2)(iv) 3. LMI Housing Activities ( (a)(3)) CDBG funds are primarily used for the rehabilitation of residential and mixed-use buildings. The original intent of the CDBG program was for housing rehabilitation, there are limitations on the way funds may be used for the construction of new housing. Important questions to ask when determining the eligibility of housing activities are: Does the activity benefit LMI households, or remove blight, and Is the subrecipient an eligible public or private non-profit organization or a special limited profit corporation? Note: Only Permanent housing is eligible under this subcategory for LMI benefit. Examples of eligible Housing Activities benefiting low- and moderateincome persons/households are: Acquisition of land or existing buildings Rehabilitation of owner-occupied or rental units Conversion of non-residential structures to housing units Newly constructed homes developed by a Community Based Development Organization (CBDO as pursuant to (a)) Purchase assistance for LMI homebuyers 25

26 Note: The income of all adults (not necessarily related) living in the household must be combined and compared to the income limit for the number of persons living in the household. Activities that include acquisition, construction or rehabilitation of housing units may qualify as meeting the National Objective of benefiting LMI households only to the extent that the required number of units is occupied by LMI households upon completion. The required number of LMI units for Housing Activities cover both owneroccupied and rental units. At completion: If the unit is a single unit, the occupant must be a LMI household. In duplexes, at least one of the units must be occupied by a LMI household. When CDBG assistance is provided to buildings with more than two units, at least 51% of the units must be occupied by LMI households. Documenting LMI Housing Activities For each activity, the following records must be kept: a. Fair Housing and Equal Opportunity rules apply to the use of CDBG funding therefore occupancy record identifying the occupants race and ethnicity as well as female-headed households must be maintained on file. b. Documentation of household size and income must be maintained on file. Also include a copy of the HUD income limit for the relevant funding year as income limits typically change from year to year. 4. LMI Job Creation or Retention Activities ( (a)(4)) For an activity that creates jobs, the recipient must document that at least 51 percent of the jobs will be held by, or will be available to, low- and moderate-income persons. For an activity that retains jobs, the recipient must document that the jobs 26

27 would actually be lost without the CDBG assistance and that either or both of the following conditions apply with respect to at least 51percent of the jobs at the time the CDBG assistance is provided: The job is known to be held by a low- or moderate-income person; or The job can reasonably be expected to turn over within the following two years; and that steps will be taken to ensure that it will be filled by, or made available to, a low- and moderate-income person upon turnover. a. Jobs that are not held or filled by a low- or moderate-income person may be considered available to low- and moderateincome persons for these purposes only if: i. Special skills that can only be acquired with substantial training or work experience or education beyond high school are not a prerequisite to fill such jobs, or the business agrees to hire unqualified persons and provide the needed training; and ii. The recipient and the assisted business take actions to ensure that low- and moderate-income persons receive first considerations for filling such jobs. b. For purposes of determining whether a job is held by or made available to a low- or moderate-income person, the person may be presumed to be a low- or moderate-income person if: i. He/she resides within a census tract (or block numbering area) that either: (1) Meets the requirements of paragraph (A)(4)(c) of this section; or (2) Has at least 70 percent of its residents who are lowand moderate-income persons, or ii. The assisted business is located within a census tract (or block numbering area) that meets the requirements of paragraph (A)(4)(c) of this section and the job under 27

28 consideration is to be located within that census tract. c. A census tract (or block numbering area) qualifies for the presumptions permitted under paragraphs (A)(4)(b)(i)(1) and (ii) of this section if it is either part of a Federally-designated Empowerment Zone or Enterprise Community or meets the following criteria: i. It has a poverty rate of at least 20 percent as determined by the most recently available decennial census information; ii. It does not include any portion of a central business district, as this term is used in the most recent Census of Retail Trade, unless the tract has a poverty rate of at least 30 percent as determined by the most recently available decennial census information; and d. It evidences pervasive poverty and general distress by meeting at least one of the following standards: i. All block groups in the census tract have poverty rates of at least 20 percent; ii. The specific activity being undertaken is located in a block group that has a poverty rate of at least 20 percent, or iii. Upon the written request of the recipient, HUD determines that the census tract exhibits other objectively determinable signs of general distress such as high incidence of crime, narcotics use, homelessness, abandoned housing, and deteriorated infrastructure or substantial population decline. B. Prevention or Elimination of Slums and Blight: Required Documentation Activities, which eliminate or prevent slums and blight, can be conducted on an Area Basis, a Spot Basis, or in an Urban Renewal Area. 1. Elimination of Slum or Blight on an Area Basis 28

29 Potentially eligible activities with the objective of eliminating slums and blight on an Area Basis include assistance to commercial/industrial properties for exterior or code related improvements, public facilities and improvements, as well as code enforcement, provided the assistance is designed to address one or more of the specific conditions that qualified the area as one of slum and blight. 2. Elimination of Slums or Blight on a Spot Basis In order to qualify under the National Objective of elimination of slums and blight on a Spot Basis the activity must meet the following criteria: It must be designed to eliminate specific conditions of blight or physical decay on a Spot Basis not located in a slum or blighted area; or It must be limited to acquisition, clearance, relocation, historic preservation, or building rehabilitation to eliminate special conditions detrimental to public health and safety. Potentially eligible activities under the objective to eliminate slums or blight on a spot basis include the removal of faulty wiring or falling plaster; historic preservation of a public facility; or demolition of a vacant, deteriorated, (non-historic) abandoned building. 3. Elimination of Slums or Blight in an Urban Renewal Area This category is intended to permit the redevelopment of areas in which activities were begun with funds received under Federal Urban Renewal and related programs (replaced by the CDBG Program). In order to qualify under the objective to eliminate slums or blight in an Urban Renewal Area, an activity must be: 1. Located within an urban renewal project area; and 2. Necessary to complete the urban renewal plan C. Urgent Need: Required Documentation The records to document urgent need should include the following: 29

30 1. Photographs of the condition 2. Building Department statements regarding health and safety hazards 3. State and Federal designation of the condition as a disaster In addition, if a participating unit of general local government within an urban county uses CDBG funds for an urgent need, the county Must be able to document that the participating local government was unable to finance the activity. 30

31 SECTION V HENRY COUNTY PRIORITY NEEDS AND STRATEGIES Housing Needs and Strategies Increase the supply of affordable and accessible housing for low and moderate income households. o Henry County intends to allot 15%-30% of its annual CDBG allocation for each year of the current Consolidated Plan (FY ) for residential rehabilitation. Proposed Accomplishments and Outcomes: Rehabilitation of units per year. Promote physically accessible housing for those with disabilities through partnerships with nonprofits and other appropriate agencies. o Over the period of the current Consolidated Plan (FY ) work with partners to purchase 5-10 housing units that will be accessible or adaptable for persons with disabilities. Proposed Accomplishments and Outcomes: 5-10 housing units that will be accessible to or adoptable for persons with disabilities. Examples of projects under this priority are: o Affordable housing o Rental assistance o Housing rehabilitation o Down payment assistance for the purchase of homes o Rental Rehabilitation Homeless Needs and Strategies Improve the quality of life for homeless individuals and families. o For each year of the current Consolidate Plan (FY ) the county will provide public services funding for at least one agency that serves the homeless population. Examples of projects under this priority are: o Emergency shelter o Transitional shelter 31

32 o Supportive service/program Community Development Needs and Strategies Improve the quality of life in low- and moderate-income neighborhoods through infrastructure and public facilities improvements, and spot demolition. o The county will fund 1-2 infrastructure and public facilities projects (e.g., streets, sidewalks, sewers, recreational facilities, etc.) annual over the current Consolidated Plan period (FY ). Investments will be targeted and coordinated to achieve the maximum public benefit. o The county will demolish 2-10 vacant buildings in LMI areas under the current Consolidated Plan period (FY ) to prevent blighting influences. Improve economic opportunities for LMI residents by fostering and maintaining partnerships and initiatives that provide living-wages jobs and job training. o The county foster and maintain partnerships and initiatives that provide living-wages jobs and job-training opportunities that benefit at least 5-10 persons annually and that encourage a linkage between the job training recipients and county employers. Support public services that address the community development needs of LMI residents, especially extremely low-income persons. o The county intends to provide CDBG funding for 2-3 public services annually to meet the needs of LMI resident and special needs populations. Examples of projects under this priority are: o Youth centers o Job creation and retention o Sidewalk improvements o Child care o Parks and recreational facilities o Business improvements o Street improvements o Sewer/water improvements o Senior services o Youth services o Domestic abuse shelter 32

33 o Elderly/Elderly frail shelter o ADA facility o HIV facility 33

34 SECTION VI THE APPLICATION PROCESS The application process includes the following: Advertised notification of the upcoming application period/workshops will be placed in the local newspaper of general circulation (Henry Daily Herald) and may also be published in other local newspapers to include the Henry County Times. Advertised notification of the application period /workshops will be place on the CDBG Program link from the county s website at Minimum of two (2) application workshops will be held prior to the application submission deadlines. Applicants will be mandated to attend at least one of the application workshops. Departments review and ranking of applications Department completes summary of applications and funding allocation recommendations for the Board of Commissioners Funding recommendation advertised in newspapers and web page Department manages public hearings on proposed recommendations Proposed recommendations submitted to the Board of Commissioners for approval Approved allocations submitted to HUD in the Consolidated Plan and Annual Action Plan Application Preparatory (AP) workshops are held to provide nonprofit and municipal applicants guidance and information on the preparation of their application submissions. These AP workshops shall be held within thirty (30) days of the advertisement of the availability of the CDBG applications. These AP workshops will typically held in the following location: Henry County Administration Building 140 Henry Parkway, Conference room B McDonough, GA Merle Manders Center 111 Davis Road, Stockbridge, GA

35 Other AP workshops may be scheduled on an as needed basis. Meeting times and dates are subject to the availability of space at the above listed location; however, the County publishes this information at the time that it advertises the availability of applications for funding. The County also makes public service announcements and issue news releases through its Communication Department for advertisement on the County television station (Henry TV 14). Information is also updated regularly on the County s website at For more information, interested applicants can call (770) or [email protected]. The amount of funding awarded will be based on the applicants project or activity proposal and its ability to assist the county in fulfilling its priorities. The applicant s demonstrated ability to expend funds within each program fiscal year, which runs from July 1 through June 30 of each year will also be a factor of consideration. Funding amounts and the release of funds is contingent upon the congressional approval of HUD s annual CDBG budget. Should Congress elect to reduce CDBG funding, the County will be required to modify allocations consistent with these reductions. It is important to note that the County is not obligated to fund projects and services until it has received its annual Funding Approval/Agreement from HUD; the Board of Commissioners has adopted the proposed Annual Action Plan, and the County has entered into a legally binding contractual agreement with the subrecipient. Agencies will need to consider this in the planning of their programs and projects. 35

36 Applicant Minimum Criteria Interested agencies must meet the minimum criteria as listed below. Agencies that cannot provide adequate documentation to demonstrate that it meets all of the criteria below will not be considered for funding. Minimum Criteria 1. Must have non-profit status for at least two (2) full years or be a governmental entity serving Henry County residents. 2. Must be registered and licensed to do business in the State of Georgia at the time of application. 3. Must have Independent Public Accountant (IPA) Audit no older than 12 months from the end of the agency s last fiscal year. 4. Applicants not currently receiving CDBG assistance from Henry County must provide two (2) recently completed years of financial statements. 5. Applicants must demonstrate that it has an active, independent Board of Directors that meets at least four (4) times per years. 6. Applicants not currently receiving CDBG assistance from Henry County must provide a copy of its most recent Internal Revenue Services (IRS) Form Applicants not currently receiving CDBG assistance from Henry County must provide evidence of experience and knowledge of the service that financial assistance is being requested for. Documentation to be Provided with Application Copy of Non-Profit designation from the U.S. Internal Revenue Services (IRS). Not applicable for Government entities. Certificate of Incorporation from the Georgia Secretary of State s Office. One (1) copy of most recent independent audit, including management letter. Not older than 12 months from the end of the agency s last fiscal year. Copies of two (2) recently completed years of financial statements (income & expense statement, balance sheet and/or profit and loss statement). Provide current list of members of the Board of Directors. Applicants not currently receiving CDBG assistance from Henry County must provide dated copies of its four (4) most recent Board of Directors meeting minutes. One (1) copy of the most recent IRS Form 990. Provide copies of the of key staff persons resumes, copy of the organization s history, mission and/or strategic plan. 36

37 SECTION VII SUBRECIPIENT RESPONSIBILITIES Each Henry County CDBG subrecipient must comply with the statutory, regulatory, and the County program requirements. Some of these requirements include: 1. Completing projects as expeditiously as possible and in accordance with contract requirements; 2. Promptly notifying the County when changes in the conditions or scope of work or service for the CDBG-funded activity may occur, notification must be provided to the County in writing. Subrecipient must await approval decision by the County prior to making actual changes in the project; 3. Submitting requests for reimbursements in compliance with all applicable regulations, record keeping and submission schedules; 4. Maintaining adequate filing systems that document all program activities, with particular emphasis on expenditures and benefit to low- and moderate-income persons; and 5. Providing monthly or quarterly Progress Reports (as applicable) to the County on project progress, and on the beneficiaries (individuals or households), indicating how they benefit from the activity funded by the grant. Timely Performance The timely performance of all CDBG subrecipients is critical to the County remaining in compliance with HUD s 1.5 rule 1. For all subrecipients that will execute public facility and housing related projects, it is important to plan for construction and rehabilitation prior to the award of CDBG funds. 1. Project Design rule - CDBG regulations require that no participating county or city have more than 1½ years of CDBG funds in their line of credit with HUD sixty (60) days prior to receipt of their annual program allocation. 37

38 2. For nonprofit agencies proposing projects that, involve: a. Construction; b. Reconstruction; c. Expansion; and/or d. Other physical changes to a structure. A project design meeting with the nonprofit agency following attendance at County technical assistance (TA) meetings can be scheduled to: Assess the scope of work to be performed Assess the scope of an environmental review of all HUD assisted projects and check for historical significance if assisted units are more than 50 years old Review requirements for clearance testing (or clearance examination) for lead-based paint by testing the paint, dust and soil in all HUD assisted units built prior to 1978 involving rehabilitation and acquisition Provide information on specific federal requirements that apply to public facility and housing related projects Establish a time line for project phasing and completion to ensure compliance with the 1.5 rule Assess agency capacity to successfully execute the project according to schedule; or Discuss necessary expertise beyond staff capacity 3. Staff Capacity and Project Execution Project design meetings for public facility projects are intended to determine 38

39 the scope of work to be covered in a nonprofit agency s CDBG application. Historical review has shown that nonprofit agencies often lack the ability to execute successful public facility projects due to the following: a. Staff inexperience, b. Contractor unfamiliarity with federal labor standards requirements, c. Lack of financial resources for preconstruction planning costs; and d. Unfamiliarity with the bidding, contracting, and construction management process. As a condition of the funding cycle, all nonprofit agencies planning to submit public facility projects for funding request should contact Henry County CDBG staff to assess the agency s ability to carry out the proposed project. Evidence of the existence of agency capacity would include: a. Volunteers, board members, or other individuals and/or firms committed to providing the nonprofit agency with donated services and support that will, to the County s satisfaction, ensure project success and compliance with CDBG regulations; or b. Documentation that clearly illustrates how the agency has successfully managed other similar projects through previous CDBG grants or other public or private programs; or c. Some combination of the above experience with anticipated funding (CDBG or other funds) to procure consulting, design and construction management services to ensure the project s success. If it is determined that the agency cannot successfully manage the public facility project, the County can then suggest alternative solutions and make recommendations to the agency. The intent is to provide guidance to nonprofit agencies on how they may secure the necessary expertise needed to execute the public facility project prior to submission of an application for CDBG funding. An agency may still submit an application for the project; however, if the capacity to 39

40 administer the work successfully according to CDBG regulations is unavailable, at a minimum the County expects the nonprofits CDBG application to obtain funds to cover securing this expertise. These funds should go for private construction management, architectural or multidisciplinary firm services to include: a. Project design, b. Contract bidding and administration, c. Project inspection, d. Federal reporting; and e. Project closeout It is important to note that Henry County CDBG staff will be available to provide guidance and technical support for the duration of the project activity; however, the County will not manage the phases of the construction process for subrecipients. 4. Other Project Issues a. For public facility projects, as with all eligible CDBG activities, agencies may incur expenses for approved project costs prior to execution of a contract with Henry County. However, projects must have received environmental clearance from County CDBG staff prior to the commencement of any CDBG funded project or program. b. All contracts for public facility projects that are greater than $2,000 must pay Davis-Bacon wage rates to all laborers and mechanics or other employees working directly on a project using CDBG funds. Weekly payroll reports must be submitted to the County s CDBG Program as a part of all requests for reimbursement. Wage interviews to ensure workers are paid the proper wages must also be conducted. County CDBG staff may elect to perform wage interviews or may assign the responsibility to the nonprofit agency or municipality at its discretion. 40

41 c. Pre-bid and preconstruction conferences are requirements of all contracts for public facility projects. d. A request to extend the term of a CDBG contract must be made in writing to the County s CDBG Program sixty (60) days prior to the expiration of the agencies contract with the County. Extensions are subject to County approval based upon staff evaluation of project progress, which will be used to determine if an extension is warranted for the project. e. The County must approve changes to the scope of work prior to commencement of any change to a public facility project or other program. f. All public facility project budgets are expected to include contingencies for unanticipated cost overruns. The County will not increase CDBG awards to cover unanticipated costs. g. HUD will require the testing of paint, dust, and soil in all HUD assisted units built prior to Securing a Certified Lead-Based Paint Risk Assessor/Certified Inspector to be responsible for the identification of defective paint surfaces, post work inspection, and the collection of dust and soil samples for clearance testing is an eligible CDBG expense. The work to correct or stabilize the defective paint surfaces will be the responsibility of the property owner or rehabilitation contractor. Cost of correcting or stabilizing the defective paint surfaces should be included with the agency s budget. 5. General CDBG Program Requirements In recent years, HUD has emphasized the need for CDBG funds to be expended as quickly as possible. When funds are not expended within the contract period as stated in the agency s contract with the County, CDBG policies permit the recapture and reallocation of funds from subrecipients. To avoid recapture of funds, the County has several requirements to help agencies implement projects quickly and effectively, and to facilitate communication between the County and subrecipients, in order to avoid project delays. These requirements include: 41

42 a. The submission of monthly or quarterly progress reports as specified in the contractual agreement updating the County on project or program status, to include the number of low- and moderate-income individuals benefiting from the CDBG-funded activities; b. Regularly scheduled meetings with CDBG staff to discuss project status; and c. Staff s review of subrecipient s reimbursement schedule progress. Citizen Participation Responsibilities For the CDBG Program, HUD and the County have specific requirements regarding citizen participation. To apply for CDBG funds, each subrecipient must encourage citizen participation in the development of projects and services that are submitted to the County for CDBG funding. The County further emphasizes that agencies and municipalities should solicit input from persons of low- and moderate-income, the disabled and non-english speaking groups who live in areas where CDBG projects are proposed. To assist agencies and municipalities with encouraging citizen participation in the planning of CDBG projects County facilities and services centers are available as meeting and program planning locations. The County considers it very important that each agency and municipality outreach to the community regarding the availability and proposed uses of CDBG funds in Henry County. 42

43 SECTION VIII FUNDING DISTRIBUTION, EXPENDITURE, AND OPERATIONAL POLICIES HUD considers Henry County to be an urban entitlement county. Urban counties meet certain demographic criteria, as well as deliver services to constituents that are the same as those provided to urban areas. In Henry County s case, there is 100% participation of the county s four (4) municipalities (the Cities of Hampton, Locust Grove, McDonough, and Stockbridge) which each elected to participate in the county s consortium that make up the County s urban entitlement demographics. In addition, because the populations of these cities are formulated into the overall calculation used by HUD to determine the amount of CDBG funds awarded to Henry County, the County will distribute a portion of its CDBG funds to municipalities for projects in their jurisdiction over the five (5) Consolidated Planning period. CDBG regulations require that no participating county or city have more than 1½ years of CDBG funds in their line of credit with HUD (60) sixty days prior to receipt of their annual program allocation. The County must meet this 1.5 rule in order to remain in compliance with overall CDBG program regulations. The Board of Commissioners may recapture and reallocate unexpended funds to agencies and municipalities who are more aggressive and effective in the administration of their projects and services, and who consistently submit timely reporting and requests for reimbursement to the County. Agencies enter into an annual contract with the County in order to receive CDBG funds. The CDBG funds must be drawn as specified within a twelve month (12) period. The County for reallocation may recapture CDBG funds not expended within that period in order to comply with the 1.5 rule. While the County permits agencies and municipalities to draw funds for the entire contract period, the County strongly encourages these entities to expend the majority of their allocation between July 1 and April 1 of the contract year. This helps the County keep its expenditures high prior to an annual assessment of county and city expenditures performed by HUD. This annual assessment occurs each May, sixty (60) days 43

44 prior to the end of the program year. Another important aspect of the CDBG program is that the program operates on a reimbursement basis. The County must receive reimbursement documentation to support these costs. See Appendix G for a summary of the type of information required for reimbursement. Upon the County s receipt of the request, the agency shall receive payment within fourteen to twenty-one days. In order to determine if the applicant has an eligible CDBG project or service according to HUD requirements, the CDBG staff will review applications received by the application deadline and provide the final prioritization and ranking of the applications submitted to the Board of Commissioners. Publication of the decisions on proposed project and service funding occur in local news media outlets in the form of a Final Statement of Community Development Objectives and Proposed Uses of Funds. Following the public notice of funding recommendations, applicants have seven (7) calendar days to present a written appeal, containing all supporting documentation to support the appeal, to the County. Present all appeals to the following: Henry County Board of Commissioners Community Development Block Grant (CDBG) Program 140 Henry Parkway McDonough, GA The County intends to respond to all appeals within fourteen (14) calendar days of receipt. The Board of Commissioners will consider the recommended CDBG allocation as a part of the overall Consolidated Plan submission process. Henry County submits to HUD each May the CDBG allocation for approval. HUD must approve the County s Consolidated Plan and Annual Action Plan as a condition of receiving CDBG funds for projects and services. 44

45 SECTION IX GENERAL PROGRAM POLICIES The executed contracts between Henry County and each CDBG subrecipient provide specific administrative requirements for the award of CDBG funds. Below are some of the most important policies the County wishes to emphasize with potential CDBG applicants. 1. All recipients of CDBG funds from Henry County must adhere to all applicable federal regulations pertaining to the CDBG program. 2. Expenditure Deadlines for each subrecipient agreement period is 12 months. All subrecipients must notify the County in writing no later than January 1, to extend their current contractual period. Documentation justifying the need for the extension must accompany the written request. The County will notify the subrecipient within seven (7) calendar days of receipt of the request of its determination. 3. If sufficient documentation cannot be obtained to justify a contract extension, the County may recapture a portion or all remaining CDBG funds for reallocation to a subrecipient who is able to expend the recaptured funds efficiently. 4. Henry County s CDBG Program operates on a reimbursement basis. Duplicate invoices, payroll documentation and copies of canceled checks are an example of support documentation to accompany reimbursement requests. Payment processes follow guidelines established by the Henry County Finance Department. The submission of a request for reimbursement with all required documentation results in a payment anticipated to be received by the subrecipient within fourteen to twenty-one days. 5. All subrecipients must submit monthly or quarterly performance reports developed by the CDBG Program staff depending on the project or service provided. It is imperative that the reports are submitted as scheduled. The County is responsible for reporting program accomplishments to HUD, who in turn submits the information in congressional reports. The CDBG 45

46 Program staff will provide reporting formats prior to the commencement of the CDBG-funded project or service. 6. The CDBG Coordinator or designee will visit the site of each project or service delivery location no less than bi-annually to assess progress. Additional site visits may be required depending on the nature of the activity and the subrecipient s need for technical support. 7. Each CDBG subrecipient must keep records of fund expenditures; a copy of the CDBG contract executed with Henry County; and all other project or service information important to the administration of the project for a minimum of four (4) years. 8. The County will monitor CDBG subrecipient files and record keeping procedures in an on-site monitoring visit no less than once each three (3) years. On-site visits could be scheduled more frequently depending on the performance, need and capacity of the subrecipient. Agencies will receive notification in writing prior to the anticipated monitoring date. See additional information regarding on-site monitoring visits in Appendix K, CDBG Subrecipient Monitoring Plan. 9. The County discourages applications for funding for start-up programs and expects that CDBG funds will be used to close the gap in agency or municipal project and service program budgets. CDBG funds cannot be an agency s primary source of funding. 46

47 SECTION X OTHER FEDERAL REQUIREMENTS THAT APPLY TO CDBG Environmental Review [24 CFR Part 58] 1. Overview The Community Development Block Grant (CDBG) Program requires that the environmental effects of each activity carried out with CDBG funds be assessed in accordance with the provisions of HUD s regulations covering the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD s implementing regulations at 24 CFR Parts 50 and 58. The assessment is conducted considering other federal laws covering areas such as noise, air quality, historic properties, flood plains, wetlands, water quality, solid waste disposal, man-made hazards, farmlands protection, wild and scenic rivers, coastal areas, and endangered species. 2. Responsibility for Environmental Review The 1994 Amendments to the Community Development Block Grant Program statute significantly changed the environmental review responsibilities of CDBG Program participants. It requires that units of general local government such as cities and counties assume the responsibility for the environmental review, including the publication of the environmental review process, and then later request that the funds be released by HUD. For nonprofit agencies, Henry County as the unit of general local government will continue to be the responsible agencies for the environmental review. However, Henry County will depend upon the nonprofit agency to gather the necessary information for publication of required notices with the assistance of the CDBG Coordinator. Only the county can certify that the environmental review requirements have been met and will be responsible for requesting a release of funds from HUD for each individual agency. Subrecipients will be required to submit information regarding project cost, age of property, project activity and location map. Refer to Appendix E, the Environmental Review request form. 3. Exempt Activities CDBG-funded projects cannot begin until the environmental review process 47

48 has been completed. The only tasks that may be undertaken prior to completing the environmental review assessment are administrative activities, feasibility and engineering studies, outreach, and planning activities. These have no affect on the human and physical environments and are exempted under Section of 24 CFR Part Environmental Review Requirements The environmental review process should be initiated as soon as the proposed activities are determined. Environmental review expenses are considered as administrative costs under the CDBG Program. Private Citizens and organizations can object to the release of funds for CDBG projects on certain procedural grounds relating to the environmental review. Therefore, it is important that all procedural requirements be met. Lead-Based Paint CDBG-funded activities, such as the acquisition, construction, or rehabilitation of residential structures, may not use lead-based paint. 1. Lead-Based Paint Hazards Lead-based paint hazards include deteriorated lead-based paint on friction surfaces, impact surfaces and accessible (chewable) surfaces; and dust and soil that is contaminated with lead above specified standards. Surfaces that show signs of paint abrasion, damage, or teeth marks are also considered lead-based paint hazards. Lead-based paint that is intact and in good condition is usually not considered a hazard. Lead poisoning is a result of exposure to lead-based paint hazards. Lead poisoning is one of the most common health hazards to humans. Although anyone can contract lead poisoning, children and women of childbearing age are at the greatest risk. Childhood lead poisoning is considered a major health problem because of its extremely damaging and irreversible effects. The exposure to lead in children (including pregnant women) can cause brain damage, liver and kidney disorders, behavioral problems, blindness, permanent learning disabilities, and even death. 2. Lead-Based Paint Mandate Congress mandated reduction of lead-based paint hazards in federally owned residential property and housing receiving federal assistance in On 48

49 September 15, 2000, HUD promulgated a final rule applying advances in the scientific understanding of childhood lead poisoning. The new HUD regulation significantly increases the quantity of testing and home maintenance, repair, or rehabilitation work that must be performed in a leadsafe manner. Buildings and homes constructed before 1978 could have lead-based paint. The primary source of lead is from the chipping and peeling of lead-based paint and paint dust. It is more commonly found on exterior and interior walls, but also may be on baseboards, door and window trimmings and heating units. Lead poisoning also can be obtained from lead in the air, dust, soil, food, certain commercial products (e.g., automotive and industrial batteries), and even water. Frequently, in the case of the latter, the use of lead soldered pipes in older structures is responsible for lead getting into the water. 3. Determining The Presence Of Lead Inspections determine whether or not lead-based paint is present and, if it is, where it is located, regardless of whether or not it is currently a hazard. Risk assessments determine whether or not lead-based paint hazards exist and, if they do, where they are located. Two methods may assist you in determining whether lead is present in the property you plan on acquiring: a. Method 1 - Scoring the Building Based on Risk Factors: Use the Lead Toxicity Risk Assessment developed by EPA as a guide to help you detect potential lead problems. This is not scientific, but less costly, and can help establish the likelihood of lead problems. A copy of the Lead Toxicity Risk Assessment may be obtained from EPA. b. Method 2 - Testing There are two testing methods that produce accurate lead readings: XRF-X-Ray Fluorescence Detector This is the newest testing technology, which is also available in portable form. The XRF portable is capable of measuring between samples in three hours and provide immediate results. 49

50 Laboratory Testing Laboratory testing of samples physically collected and removed from the property is a method of obtaining lead readings. However, unlike the newer technology of XRF, it is more time-consuming and the results are not immediately available. Certain requirements apply to the use of CDBG funds for the rehabilitation of a residential property that was constructed before At a minimum, subrecipients and/or contractors are required to: (a) Notify a purchaser or lessee of the presence of any known lead-based paint and/or lead-based paint hazards; (b) Paint test surfaces to be disturbed or removed during rehabilitation for the presence of lead-based paint, or presume lead-based paint and notify the occupants of the results within 15 days of when the evaluation report is received or the presumption is made; (c) Provide each occupied dwelling unit discussed in (a) and (b) in the preceding section with the EPA-approved lead hazard information pamphlet Protect Your Family From Lead in Your Home or EPA- approved equivalent; (d) Reduce lead hazards as required by the applicable subparts of Part 35; and (e) Perform clearance testing, including dust testing, before reoccupancy after all but minimal ( de minimis ) amounts of paint disturbances. (See in the following section for details.) The CDBG regulation at 24 CFR states that the following subparts of Part 35 apply to the use of CDBG funds in pre-1978 housing: A - (Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards upon Sale or Lease of Residential Property), B - (General Lead-Based Paint Requirements and Definitions for All Programs), J - (Rehabilitation), K - (Acquisition, Leasing, Support Services, or Operation), and 50

51 R - (Methods and Standards for Lead-Based Paint Hazard Evaluation and Hazard Reduction Activities). Part 35, Subpart A, is called the Lead Disclosure Rule; and Part 35, Subparts B, J, K, and R, are called the Lead Safe Housing Rule. Certain properties are exempt from the requirements of the Lead Safe Housing Rule. They include: a. Housing built on or after January 1, 1978; b. Zero-bedroom dwellings, including efficiency apartments, singleroom occupancy housing, dormitories, or military barracks; c. Housing exclusively for the elderly or people with disabilities, unless a child under age 6 resides or is expected to reside there; d. Units that have been found to be free of lead-based paint by a certified lead-based paint inspector; e. Units where all lead-based paint has been removed; f. Unoccupied housing that will remain vacant until it is demolished; g. Non-residential portions of mixed-use buildings, except that spaces serving both residential and non-residential uses are covered by the rule; h. Units that are to be rehabilitated without disturbing a painted surface; and i. Units that are subject to emergency repair action needed to safeguard against imminent danger to human life, health or safety or to protect the property from further structural damage. For properties that are covered by the Lead Safe Housing Rule, the lead-based paint requirements for rehabilitation depend on the amount of Federal rehabilitation assistance provided. The amount of Federal rehabilitation assistance is the average per unit amount of Federal funds for the hard costs of rehabilitation, excluding lead-based paint hazard evaluation and hazard reduction activities. In calculating this assistance amount, you must consider both the total amount of Federal assistance to be used (including CDBG and other funds) and the hard costs of rehabilitation (including Federal and non-federal funds). Whenever these two amounts are not the same, the smaller of the two determines the type and level of lead-based paint requirement. For a structure with more than one dwelling unit, the thresholds are applied against the average amount of Federal assistance per unit or the average hard cost of rehabilitation per unit, whichever is lower. 51

52 The following is a general overview of the requirements based on dollar thresholds per year per assisted housing unit: Up to and including $5,000 notice, provision of pamphlet, paint testing of surfaces to be disturbed or presumption of lead-based paint, safe work practices as part of rehabilitation (except for minimal amounts of paint disturbances), repair any paint that is disturbed, and clearance after the work and before re-occupancy. $5,001 $25,000 notice, provision of pamphlet, paint testing or presumption, risk assessment to identify lead-based paint hazards, interim control or standard treatment of lead-based paint hazards, and clearance. Over $25,000 notice, provision of pamphlet, paint testing or presumption, risk assessment, abatement of lead-based paint hazards, ongoing lead-based paint maintenance, and clearance. Minimal ( de minimis ) amounts Safe work practices and clearance are not required when maintenance or hazard reduction activities do not disturb painted surfaces that total more than: 20 square feet on exterior surfaces; 2 square feet in any one interior room or space, or 10 percent of the total surface area on an interior or exterior type of component type with a small surface area (e.g., window sills, baseboards, and trim). Pamphlet The Protect Your Family From Lead in Your Home pamphlet can be downloaded in English and Spanish from or and single paper copies can be obtained from the National Lead Information Clearinghouse at LEAD. Persons with hearing or speech impediments may access this telephone number via TTY by calling the toll-free Federal Information Relay Service at The in the preceding section description is intended to provide basic information on lead-based paint requirements. Consult the applicable portions of 24 CFR Part 35 (see for greater detail if you are carrying out an activity subject to these requirements. 52

53 Labor Standards [29 CFR Parts 1, 3, 5, 6 and 7] Participants in Henry County s CDBG program are responsible for full compliance with labor standards regulations at all contracting levels, including the general contractor, subcontractors, and any other lower level subcontractor. Construction work that is financed in whole or in part with CDBG funds must adhere to federal labor standards. Labor Standard requirements include the Davis-Bacon Act, Copeland Anti-Kickback Act and Contract Work Hours and Safety Standards Act. These requirements are commonly known as the Davis-Bacon and Related Acts, abbreviated as DBRA. These Acts require that: a. Contractors with a history of non-compliance cannot participate in federally-assisted projects. b. Workers must be paid weekly wages set by the Department of Labor and be paid overtime at time-and-a half for hours worked beyond a forty (40) hour work week. c. No laborer or mechanic may be forced by their employer to work in conditions that are unsanitary, hazardous, or dangerous to the worker s health. d. The County and the Subrecipient must monitor compliance through contractor reports and on-site interviews with workers. Down Payment Assistance (without construction or rehabilitation involved) or rehabilitation of owner-occupied homes do not trigger Labor Standards requirements. The following activities trigger Federal Labor Standards: a. CDBG-funded construction or rehabilitation of properties with eight (8) or more total residential units. b. Other construction projects using over $2,000 in CDBG funds. This could include public improvements to neighborhoods or housing projects, such as streets or sidewalks. c. Clearance of land or site improvements with CDBG funds which will 53

54 ultimately result in eight (8) or more units (or homes) being built on the project site or which will be used for public improvements such as a park or parking lot. Construction is broadly defined and includes the hard Costs of rehabilitation, repairs, painting, decoration and the installation of equipment when installation costs are more than incidental. It does not include soft costs, such as design or engineering costs. The following do not trigger Federal Labor Standards: a. Owners, supervisors and managers of the construction company b. Bona-fide self-employed contractors c. Government (state, local) employees involved with the project d. Utilities work (performed by utility companies) e. Construction work that is determined to not be part of a CDBG assisted project or building Laws and Regulations that apply: 1. Davis-Bacon Act (DBA). Pay workers the prevailing wage. All laborers and mechanics employed by contractors or subcontractors who work on a federally funded or assisted construction project where the contract is in excess of $2,000 must be paid the prevailing wage for workers performing similar construction in the market area and they must be paid at least weekly. This wage rate is set periodically by the Department of Labor (DOL) and the CDBG Coordinator will request a wage determination from HUD prior to requesting bids or proposals from contractors. Published wage rates for CDBG projects must be posted on-site for review by employees and the general public. a. Exceptions to Wage Rate: Workers classified as Apprentices and Trainees may be compensated at a rate that is less than the Davis- Bacon rate: i. Apprentices These are formal trainees that are 54

55 registered in an apprenticeship program that has been approved by the DOL or by a state apprenticeship agency that has been recognized by the DOL. (A new apprentice is approved for probationary employment for 90 days and then registered. ii. Trainee These are registered participants in an employment training program that has been approved by the DOL. There is no provision for state agency approval. Probationary employment is an option that may be include in the program. 2. Contract Work Hours and Safety Standards Act (CWHSSA). Applies to both federal contracts and indirect federally assisted contracts except where the assistance is solely in the nature of a loan guarantee or insurance. CWHSSA violations carry a liquidated damage penalty ($10 a day per violation). Intentional violations of CWHSSA are considered a federal criminal misdemeanor. a. Work Hours Contractors must pay 1 1/2 times the base hourly rate for each hour more than 40 that any employee works in a seven (7) day period. b. Safety Standards DOL has written standards that define what is unsanitary, hazardous, or dangerous. Laborers and mechanics may not be required to work in these conditions. 3. Copeland Act (Anti-Kickback Act). a. No Kick-Backs to employers. All laborers and mechanics must be paid without strings attached to their paychecks and they must be paid at least weekly. b. Take only Eligible Payroll Deductions. They must be paid at least the prevailing wage rate and cannot be required to have deductions taken from their check other than those that are permitted by DOL regulations. c. Contract Language. All contracts for construction, reconstruction or 55

56 repair (regardless of value) must contain the following prohibition: No contractor or subcontractor shall induce, by any means, any person employed in such publicly-funded construction, reconstruction, or repair to give up any part of the compensation to which he/she is otherwise entitled by authorized payroll deductions. d. Submit Payroll Evidence. Weekly payroll and compliance statements are required to be submitted to the County s CDBG Coordinator. 4. Fair Labor Standards Act (FLSA). Contains federal minimum wage rate and overtime (O/T) requirements. These requirements generally apply to any labor performed and may be pre-empted by other federal standards such as the DBRA prevailing wage requirements and CWHSSA O/T provisions. Only the DOL has the authority to administer and enforce FLSA. HUD will refer to the DOL any possible FLSA violations that are found on HUD projects. Georgia Security and Immigration Compliance Act (GSICA) It is policy of Henry County Government, its agencies, departments, and agents to comply with the Georgia Security and Immigration Compliance Act (GSICA), as amended from time to time. This law requires Henry County to a. Verify citizenship of all newly hired employees; b. Verify citizenship of all applicants for certain public services and benefits; c. Determine the immigration status of any foreign national charged and jailed with a felony, driving under the influence (DUI), driving without a license, or a serious misdemeanor; d. Notify foreign nationals detained in the Henry County Jail of their right to notify their country s local consular office of their detention; e. Ensure that all contractors and subcontractors doing business with Henry County register with, and participate in, a federal work authorization program to verify work eligibility of all new employees; 56

57 f. Register with a federal work authorization program (currently E- Verify ). Furthermore, the requirements of O.C.G.A and Georgia Department of Labor Rule are conditions of the Henry County CDBG Program. Compliance with these requirements shall be attested by the execution of the Contractor Affidavit as found in written CDBG award contracts between the County and the Subrecipient. In the event the Contractor employs or contracts with any subcontractor(s) in connection with the awarded contract, the Contractor shall secure from such subcontractor(s) attestation of the subcontractor s execution of the Subcontractor Affidavit also found in written CDBG award contracts. Contractor and all Subcontractor Affidavits shall become a part of the awarded contract and also a part of the contractor/subcontractor agreement. The subrecipient shall maintain records of such attestation for inspection by Henry County at any time. The subrecipient shall be required to provide copies to Henry County upon request. Failure to comply with these rules will result in the termination of any awarded contract where it is subsequently determined that there has been a violation of any provision of the Act or implementing rules and regulations. Section 3 [24 CFR Part 135] The purpose of Section 3 of the Housing and Urban Development Act of 1968 is to ensure that when employment or contracting opportunities are generated because a federally funded or assisted project or activity necessitates the employment of additional persons or the awarding of contracts for work, preference must be given to low- and very low-income persons, particularly those who are recipients of government assistance for housing and/or to business concerns residing in the community where the project is located. It is important to note that Section 3 requirements apply to an entire project or activity regardless if its fully or partially funded with CDBG. Section 3 requirements apply to a variety of HUD housing and community development assistance programs, including CDBG. Specifically, for entitled state and local governments that receive a combined total of $200,000 or more in Community Planning and Development assistance, the Section 3 regulations require that contractors who receive contract work funded with CBDG in excess of 57

58 $100,000 are encouraged to provide, to the greatest extent feasible, training, employment, and contracting opportunities generated by the expenditure of CDBG funds to low- and very low- income persons, and business concerns owned by lowand very low- income persons, or which employ very low- income persons. Section 3 is triggered when the normal completion of construction and rehabilitation project creates the need for new employment, contracting, or training opportunities. All new employment opportunities including laborers, mechanics, administrative support and professional services qualify as Section 3 jobs. The County will assist each contracting agency with the preparation of a Section 3 plan that must be included in each contract for construction services that exceeds $100,000. If the expenditure of CDBG funding does not result in new employment, contracting, or training opportunities Section 3 requirements have not been triggered. As a condition of funding, subrecipients must submit monthly or quarterly reports (as applicable) with their Progress Reports on newly hired employees to the County for reporting to HUD. Subrecipient responsibilities with regard to Section 3: a. Implement procedures to notify Section 3 residents and business concerns about training, employment, and contracting opportunities generated by CDBG projects or activities; b. Notify potential contractors and subcontractors working on Section 3 projects of their responsibilities; c. Incorporate the Section 3 Clause into all covered solicitations and contract [see 24 CFR Part below]; d. Facilitate the training and employment of Section 3 residents and the award of contracts to Section 3 business concerns; e. Refrain from entering into contracts with contracts that are in violation of Section 3 regulations; f. Document actions taken to comply with Section 3; and g. Submit Section 3 reports Section 3 Clause. 58

59 All section 3 covered contracts shall include the following clause (referred to as the section 3 clause): A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD s regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers representative of the contractor s commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision 59

60 of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor s obligations under 24 CFR part 135. F. Noncompliance with HUD s regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b). Section 3 Residents and Business Concerns: 1. Section 3 residents are: a. Residents of Public and Indian Housing; or 60

61 b. Individuals that reside in Henry County and whose income does not exceed the local HUD income limits set forth for low- or very lowincome households. 2. Section 3 Business Concerns are one of the following: a. Businesses that are 51% or more owned by Section 3 residents; b. Businesses whose permanent, full-time employees include persons, at least 30% of whom are currently Section 3 residents, or within three (3) years of the date of first employment with the firm were Section 3 residents; or c. Businesses that provide evidence of a commitment to subcontract in excess of 25% of the dollar amount of all subcontracts to be awarded to businesses that meet the qualifications described above. MBE/FBE [24 CFR Part (e)] It is national policy for federal programs to award a fair share of contracts to small and minority business firms. Subrecipients that are awarding contracts for construction and services to be supported with County CDBG funds shall take appropriate affirmative action to support minority and women-owned businesses (MBE and FBE businesses) and are encouraged to procure goods and services from labor surplus areas. At the time of contract execution, contractors shall complete and include with their contract the MBE/FBE participation forms that are a part of all CDBG bid documents, and shall submit with the contract the required information on the solicitation of MBE/FBE firms in the proposed project or service. Steps to affirmatively promote efforts to utilize MBE/FBE businesses should include: a. Placing qualified small and minority businesses and women s businesses enterprises on bid solicitation lists; b. Contacting these enterprises whenever they are potential sources for the services needing to be procured; c. Dividing the work to be performed, when economically feasible, into 61

62 smaller tasks or quantities to permit maximum participation by these MBE/FBE and small firms; d. Establishing delivery schedules, where possible, which encourage the participation of these firms; e. Using the services and assistance of the Small Business Administration (SBA) and the Minority Business Development Agency of the Department of Commerce to promote MBE/FBE participation; and f. Requiring prime contractors, if subcontracts are to be awarded, to affirmatively promote the solicitation and utilization of these firms by utilizing the above listed steps. Contractors and their subcontractors will be required to demonstrate a good faith effort to promote the utilization of MBE/FBE firms for all CDBG-funded projects and services as a condition of the award of CDBG funds. Procurement [24 CFR Part 85] All projects assisted with CDBG funds that include the procurement of goods or services must, at a minimum, comply with the Henry County procurement requirements. It is not acceptable to comply with the State law for procurement with Henry County CDBG funds. Municipalities must comply with the more stringent of the local procurement policies or Henry County s Procurement Policy. Refer to Procurement [24 CFR Part 85] found in Section X: Other Federal Requirements that Apply to CDBG and Appendix I Procurement Policy and Appedix J - Methods of Procurement. Future updates will be provided to subrecipients. The type of procurement and the dollar amount of the anticipated contract will dictate which of the following procurement methods must be used: Informal Quotations (Small Purchase) - Solicit at least three verbal or written bids. Formal Bids - Invitation to bid must be advertised and bids publicly opened at a specified time and place. 62

63 Request for Proposals (RFP) or Qualifications (RFQ) - Used for procuring professional services. Requests for Proposals or Qualifications must be advertised but are not publicly opened. For contracts exceeding $100,000, the following bonding requirements apply: Bid guarantee for each bidder equal to 5% of the bid price. Performance bond equal to 100% of the contract price. Payment bond equal to 100% of the contract price. Equipment purchases with CDBG must, until disposition, meet the following: Property records must be maintained, that include a description of the property; a serial number or other identification number, the source of the property, who holds the title, the acquisition date and the cost of the property; the percentage of federal funds used to purchase the property, the location, use and condition of the property; and the ultimate disposition data, including the date of disposal and sale price of the property; A physical inventory of the property must be taken and the results reconciled with the property records every two years; A control system must be developed to ensure adequate safeguards to prevent loss, damage or theft of the property. Any loss, damage or theft shall be investigated; Adequate maintenance procedures must be developed to keep the property in good condition; and If the County or subrecipient is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Disposition of Equipment must: When original or replacement equipment acquired under a grant or sub-grant is no longer needed for the original program or project or for other activities currently or previously supported by a federal agency, disposition of the 63

64 equipment will be as follows: Items of equipment with a current per unit fair market value of less than $5,000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency; but Items of equipment with a current per unit fair market value in excess of $5,000 may be retained or sold and the awarding agency shall have a right to an amount calculated by multiplying the current market value or proceeds from sale by the awarding agency s share of the equipment. Additional technical assistance will be provided to agencies who are awarded County CDBG funds for the procurement of goods or services. Equal Employment Opportunity CDBG requires that subrecipients comply with the regulations discussed below governing employment and contracting opportunities. Subrecipients must comply with the following regulations that ensure equal opportunity for employment and contracting. Equal Employment Opportunity, Executive Order 11246, as amended: Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin. Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. Implementing regulations may be found at 41 CFR Part 60. Employers must not discriminate. Employers must remove physical and administrative barriers to employment. o Employers must make reasonable accommodations for individuals with known disabilities (e.g., job restructuring, providing readers of sign interpreters, making facilities 64

65 accessible). Civil Rights and Section 504 The CDBG regulations also require adherence to the three (3) following regulations governing the accessibility of federal-assisted buildings, facilities, and programs. Americans with Disabilities Act (42 U.S.C ; 47 U.S.C. 155, 201, 218, and 225): Provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, state and local government services, and telecommunications. The Act, referred to as the ADA, also states that discrimination includes the failure to design and construct facilities (built for first occupancy after January 26, 1993) that are accessible to and usable by persons with disabilities. The ADA also requires the removal of architectural and communication barriers that are structural in nature in existing facilities. Removal must be readily achievable, easily accomplishable, and carried out without much difficulty or expense. Fair Housing Act: Multi-family dwellings must also meet the design and construction requirements at 24 CFR , which implement the Fair Housing Act (42 U.S.C ). Section 504: Section 504 or the Rehabilitation Act of 1973 prohibits discrimination in federally assisted programs based on handicap. Section 504 imposes requirements to ensure that Qualified individuals with handicaps have access to programs and activities that receive Federal funds. Under Section 504, recipients and subrecipients are defined more broadly than under the CDBG program. Section 504 recipients and subrecipients include any entity that receives Federal funding (for example, a subrecipient of CDBG CBDO funds). For any recipient or subrecipient principally involved in housing or social services, all of the activities of the agency, not just those directly receiving federal assistance, are covered 65

66 under Section 504. Contractors and vendors are subject to Section 504 requirements only in the work they do on behalf of a recipient or subrecipient. The ultimate beneficiary of the Federal assistance is not subject to Section 504 requirements. Under Section 504, recipients and subrecipients are not required to take actions that create undue financial and administrative burdens or alter the fundamental nature of the program. The Architectural Barriers Act of 1968 (42 USC ) requires certain Federal and Federally-funded buildings and other facilities to be designed, constructed or altered in accordance with standards that ensure accessibility to, and use by, physically challenged people. Removal of Physical Barriers: For new construction of multi-family projects, 5 percent of the units in the project (but not less than one unit) must be accessible to individuals with mobility impairments, and an additional 2 percent of the units (but not less than one unit) must be accessible to individuals with sensory impairments. The Section 504 definition of substantial rehabilitation multifamily projects includes construction in a project with 15 or more units for which the rehabilitation costs will be 75 percent or more of the replacement cost. In such developments, 5 percent of the units in the project (but not less than one unit) must be accessible to individuals with mobility impairments, and an additional 2 percent (but not less than one unit) must be accessible to individuals with sensory impairments. When rehabilitation less extensive than substantial rehabilitation is undertaken, alterations must, to the maximum extent feasible, make the unit accessible to and usable by individuals with disabilities, until 5 percent of the units are 66

67 accessible to people with mobility impairments. Alterations to common spaces must make the project accessible to the maximum extent feasible. Accessible units must be, to the maximum extent feasible, distributed throughout projects and sites, and must be available in a sufficient range of sizes and amenities so as not to limit choice. Owners and managers of projects with accessible units must adopt suitable means to assure that information regarding the availability of accessible units reaches eligible individuals with disabilities. They also must take reasonable non-discriminatory steps to maximize use of such units by eligible individuals. When an accessible unit becomes vacant, before offering the unit to a non-severely disabled individual, the owner/manager should offer the unit; first, to a current occupant of the project requiring the accessibility feature; and second, to an eligible qualified applicant on the waiting list requiring the accessibility features. The usual standards for ensuring compliance with Section 504 are the Uniform Federal Accessibility Standards (UFAS), although deviations are permitted in specific circumstances. Provide Program Accessibility: Individuals with disabilities must be able to find out about, apply for, and participate in federally assisted programs or activities. Special communication systems may be needed for outreach and ongoing communication (e.g., Telecommunications Devices for the Deaf (TDD), materials on tape or in Braille, accessible locations for activities and meetings). Policies and procedures must be non-discriminatory (e.g., housing providers may not ask people with disabilities questions not asked of all applicants, screen individuals with 67

68 Uniform Relocation Act disabilities differently or assess an individual s ability to live independently). Projects, which include the acquisition of property, may be subject to providing relocation assistance to displaced families, individuals, businesses, or nonprofit organizations. Relocation assistance includes both technical and financial support to the above groups. Generally, it is recommended that only vacant properties or owner-occupied properties be considered for acquisition. Any property, housing, or commercial, which is occupied by renters, is subject to the requirements of the Uniform Relocation Act. If relocation expenses are anticipated, the project budget must contain a line item for a relocation consultant and relocation financial assistance. The hiring of a relocation consultant is required to ensure that the Uniform Relocation requirements are met. If you think your project may be subject to the Uniform Relocation Act requirements, it is imperative that Community Development staff be contacted at the onset of project planning to ensure all URA notification procedures are met. 68

69 APPENDIX A FY 2014 INCOME LIMITS SUMMARY The following table shows the Final FY 2014 Income Limits for Henry County, Georgia. Persons 30% of Median Extremely Low Income 50% of Median Very Low Income 80% of Median Low Income 1 $13, $22, $36, $15, $25, $41, $17, $29, $46, $19, $32, $51, $20, $34, $55, $22, $37, $59, $23, $39, $63, or more $25, $42, $68, *FY Henry County Median Income = $64, NOTE: Henry County is part of the Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area, so all information presented here applies to all of the Atlanta- Sandy Springs-Marietta, GA HUD Metro FMR Area. NOTE: Income Limits are rounded to the nearest $50 and in order to make it easier for those wishing to replicate HUD's calculations; the rounded 4-person income limit is used to calculate other family size income limits instead of the unrounded 4-person income limit. Source: HUD USER 69

70 APPENDIX B FY 2014 FAIR MARKET RENT (FMR) The following table shows the Final FY 2014 Fair Market Rents (FMR) by unit bedrooms for Henry County, Georgia. Final FY2014 FMR Efficiency FY2014 FMRs by Unit Bedrooms 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms $693 $756 $896 $1,187 $1,442 FY 2014 FMR areas continue to use the revised Office of Management and Budget (OMB) area definitions that were first issued in 2003 along with HUD defined Metropolitan areas (HMFAs) as described in the FY2011 FMR documentation, which can be found at (Henry County FY2011 FMR Documentation system). No changes have been made to these OMB-defined areas since the publication of Final FY2011 FMRs Henry County, Georgia is part of the Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area, which is comprised of the following counties: Bartow County, Georgia; Cherokee County, Georgia; Cobb County, Georgia; Dawson County, Georgia; Barrow County, Georgia; Carroll County, Georgia; Clayton County, Georgia; Coweta County, Georgia; DeKalb County, Georgia; Douglas County, Georgia; Forsyth County, Georgia; Gwinnett County, Georgia; Henry County, Georgia; Newton County, Georgia; Pickens County, Georgia; Rockdale County, Georgia; Walton County, Georgia; Fayette County, Georgia; Fulton County, Georgia; Heard County, Georgia; Jasper County, Georgia; Paulding County, Georgia; Pike County, Georgia; and Spalding County, Georgia. All information here applies to the entirety of the Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area. Source: HUD USER 70

71 APPENDIX C FY14 Eligible Low-to-Moderate Income Census Block Groups based on 2000 Census Tract and Block Group CENSUS TRACT BLOCK GROUP TOTAL LOW/MOD UNIVERSAL LOW/MOD TOTAL % of LOW/MOD ,570 3, % , % , % ,530 3, % ,035 1, % , % ,075 1, % , % ,250 2, % , % ,425 3, % , % ,975 2, % ,190 2, % ,095 4, % ,225 1, % Henry County 2014 Exception Criteria: 39.84% Source: HUD Census 2000 Data Georgia 71

72 APPENDIX D Map of Eligible Low- to- Moderate Income Census Block Groups based on 2000 Census Tract and Block Group Source: HUD Low and Moderate Summary Income Data 72

73 APPENDIX E CDBG REIMBURSEMENT REQUEST REQUIRED DOCUMENTATION Please provide the following documentation with each request for reimbursement through the CDBG Program. A. A Reimbursement Request Summary to include: 1. The period for which reimbursement is being requested 2. A brief description of expenditures by line item 3. The amount requested by line item 4. The total amount of reimbursement requested B. For General Expenditures and Purchases, provide: 1. A copy of the invoice or receipt evidencing the expenditure 2. A copy of the canceled check evidencing payment of the expenditure C. For Salary Reimbursement, provide: 1. A copy of the payroll record indicating the dates and hours worked and signed by an authorized representative of the organization, or a time sheet signed by the employee and approved by an authorized representative of the organization 2. A breakdown of the hours charged to CDBG activities if the employees time is split between CDBG and non-cdbg activities 3. A copy of the canceled check evidencing payment to the employee D. For Indirect Costs, provide: 1. Documentation identifying the organizations allocation method of indirect costs and the Indirect Cost Rate 2. Identification of the specific indirect costs for which reimbursement is being requested In addition, required Monthly or Quarterly Progress Reports must be submitted through the most recent month or quarter s end prior to the submission date of the reimbursement request. The Progress Reports should indicate the number of clients served, their income status, and race. Additionally, Progress Reports should indicate the progress against goals outlined in the funding contract, including if applicable, the reasons why established goals were not met. 73

74 APPENDIX F SAMPLE ENVIRONMENTAL REVIEW REQUEST FORM All CDBG Projects require an environmental review prior to the commitment of funds. The following information must be provided for the County to complete an Environmental Review: Request Form Submission Date: Estimated Start Date: Name of City/Agency: CDBG Funding Year: CDBG Funding Amount: $ Is this a request for: An initial Assessment A Re-Assessment Address and location of project/development (attach map and pictures): In what Year was the Structure built? Description of Structure to be Improved (Single Family Residential (Detached or Attached), Multi- Family Residential Attached, Commercial (Detached or Attached)): Project Description/Summary of Work to be Done (attach Scope of Work): What is the primary use of the Structure? Previous known uses of the project site: Will any residents/tenants need to relocate or vacate the property as a result of the proposed project (permanent or temporary)? YES NO If yes, attach further explanation and details. For question pertaining to this specific project contact: 74

75 APPENDIX G CONFLICT OF INTEREST 24 CFR PART (a) Applicability. (1) In the procurement of supplies, equipment, construction, and services by recipients and by subrecipients, the conflict of interest provisions in 24 CFR and 24 CFR 84.42, respectively, shall apply. (2) In all cases not governed by 24 CFR and 84.42, the provisions of this section shall apply. Such cases include the acquisition and disposition of real property and the provision of assistance by the recipient or by its subrecipients to individuals, businesses, and other private entities under eligible activities that authorize such assistance (e.g., rehabilitation, preservation, and other improvements of private properties entities pursuant to , , , or (i)). (b) Conflicts Prohibited. The general rule is that no persons described in paragraph (c) of this section who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a CDBG-assisted activity, or with respect to the proceeds of the CDBG-assisted activity, either for themselves or those with whom they have business (Partner, share holder, or vested percentage)or immediate family ties (relatives such as first-cousins), during their tenure or for one year thereafter. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient (Henry County), or any designated public agencies, or of subrecipients (recipients of Henry County) that are receiving funds under this part. (d) Exceptions. Upon the written request of the recipient, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis 75

76 when it has satisfactorily met the threshold requirements of (d)(1) of this section, taking into account the cumulative effects of paragraph (d)(2) of this section. (1)Threshold requirements. HUD will consider an exception only after the recipient has provided the following documentation; i. A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure was made; and ii. An opinion of the recipient s attorney that the interest for which the exception is sought would not violate State or local law. (2) Factors to be considered for exceptions. In determining whether to grant a requested exception after the recipient has satisfactorily met the requirements of paragraph (d)(1) of this section, HUD shall conclude that such an exception will serve to further the purposes of the Act and the effective and efficient administration of the recipient s program or project, taking into account the cumulative effect of the following factors, as applicable: i. Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project that would otherwise not be available; ii. Whether an opportunity was provided for open competitive bidding or negotiation; iii. Whether the person affected is a member of a group or class of low- or moderate-income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; iv. Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision-making process with respect to the specific assisted activity in question; v. Whether the interest or benefit was present before the affected person was in a position as described in paragraph (b) of this section; vi. Whether undue hardship will result either to the recipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and vii. Any other relevant considerations. 76

77 APPENDIX H FAITH BASED ORGANIZATIONS Per CFR (j) the following policies apply to Faith Based Organizations: Faith based organizations are eligible for CDBG funding on an equal footing with any other organization. There is no Federal requirement that an organization incorporate or operate as a nonprofit to obtain tax-exempt status under section 501(c)(3) in order to receive CDBG funds. Organizations may not use CDBG funds to support inherently religious activities such as worship, religious instruction or proselytization. If an organization does conduct such activities, the activities must be offered separately from activities or services funded by the CDBG Program, in time or location. Participation in any such religious activities must be voluntary for the beneficiaries of the CDBG assisted activity or service. Organizations that receive CDBG assistance are prohibited from discriminating against beneficiaries or prospective beneficiaries of the CDBG assisted activity or service on the basis of religion or religious belief. o Accordingly, organizations offering activities or providing services supported in whole or in part with CDBG funds, and in their outreach activities related to such activities or services, are prohibited from discriminating against current or prospective program beneficiaries on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice. Faith-based organizations retain their independence from Federal, state and local governments, including their exemption from the federal prohibition on employment discrimination on the basis of religion for employees not involved in CDBG funded activities ( ). o Accordingly, a faith-based organization that applies for, or participates in a CDBG funded activity or service may retain its independence and may continue to carry out its mission, including the 77

78 definition, development, practice, and expression of its religious beliefs, provided that it does not use CDBG funding to support or engage in any inherently religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), or in any other manner prohibited by law. o Among other things, faith-based organizations that receive CDBG funding may use their facilities to provide services or offer activities supported by the CDBG Program, without removing or altering religious art, icons, scriptures, or other symbols from these facilities. o In addition, a faith-based organization that applies for, or participates in a CDBG funded activity or service may retain religious terms in its name, select its board members on a religious basis, and include religious references in its organization's mission statements and other chartering or governing documents. Faith-based organizations, like all organizations, may receive CDBG funds to acquire, construct, or rehabilitate buildings and other real property as long as the funds only pay the costs attributable to CDBG activities and/or services. The following are examples of CDBG eligible activities and social services which are subject to the faith-based organization policies: o Child care services, o Youth services, o Senior services, o Legal services, o Substance abuse services; o Crime awareness; o Services for Battered and Abused spouses and/or Abused and Neglected children; o Transportation services; o Job training and related services, and employment services; o Counseling services (including housing counseling and tenant/landlord counseling); o Services related to soup kitchens or food banks; 78

79 o Health services and Mental health services; o Services related to the provision of assistance for housing under federal law. These policies apply to state or local funds if a state or local government chooses to commingle its own funds with CDBG funds. 79

80 APPENDIX I PROCUREMENT POLICY The awarded Henry County CDBG subrecipient, in keeping with the regulations 24 CFR Part 84 governing the procurement of supplies, and other expendable property, equipment, real property and other services with Federal funds, shall comply with procurement guidelines and procedures to ensure that materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and Executive Orders. This document reflects the written standards required to be adopted by nonprofits to meet Federal compliance in procurement activities. It also includes any additional policies adopted by the awarded subrecipient that are applicable to procurement activities and to the agency s administration of CDBG funds. All agency procurement activities are subject to applicable laws of the State of Georgia Code of Conduct No employee, officer, or agent of the CDBG subrecipient shall participate in the selection, award, or administration of a contract supported by Federal funds if a real or apparent conflict of interest would be involved. Such a conflict would arise when an employee, officer, or agent, of the subrecipient or any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the firm selected for an award. The employees, officers, and agents of the subrecipient shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, or parties to sub agreements. The CDBG subrecipient shall enforce this code of conduct in all of its procurement activities and shall pursue appropriate disciplinary and legal action as necessary where violations occur. 80

81 84.43 Competition All subrecipient procurement transactions shall be conducted in a manner to provide, to the maximum extent practical, free and open competition. The subrecipient shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, and invitations for bids and/or requests for proposals for the subrecipient shall be excluded from competing for such procurements. Awards shall be made by the subrecipient to the bidder or proposer whose bid or offer is responsive to the solicitation and is most advantageous to the subrecipient considering solicitation criteria to include but not be limited to price, quality and other factors as determined by subrecipient. The CDBG subrecipient shall include Federal Section 3 language in all solicitations where applicable, and all solicitations shall clearly describe all requirements that the bidder or proposer shall meet in order for the bid or proposal to be evaluated by the subrecipient. Section 3 provides that, to the greatest extent feasible, and consistent with existing Federal, State and local laws, and regulations, economic opportunities generated by certain U.S. Department of Housing and Urban Development (HUD) financial assistance shall be directed to low-and very low-income persons. Solicitations shall clearly set forth all requirements that the bidder or proposer shall fulfill in order for the bid or proposal to be evaluated by the subrecipient. Any and all bids or proposals may be rejected when it is in the subrecipient s interest to do so Procurement Procedures A. All subrecipients shall establish written procurement procedures. These procedures shall, at a minimum, provide for paragraphs (A)(1), (A)(2) and (A)(3) of this section. 1. The CDBG subrecipient shall avoid the purchasing of unnecessary items with Federal funds. 81

82 2. Analysis shall be performed by the subrecipient, where appropriate and when considering lease purchase alternatives, to determine which would be the most economical and practical alternative when using Federal funds. 3. Solicitations for goods and services by the subrecipient shall provide for: a. A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, the subrecipient will ensure that such descriptions do not contain any features that will unduly restrict competition. b. A description of the requirements that the bidder or proposer must fulfill and all other factors to be used in evaluating the bids or proposals submitted. c. A description of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards. d. The specific features of brand name or equal descriptions that bidders are required to meet when such items are included in the solicitation. e. The acceptance, to the extent practical and economically feasible, of products and services dimensioned in the metric system of measurement. f. Preference, to the practical extent and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient. B. Positive efforts shall be made by subrecipients to utilize small businesses, minority-owned firms, and women s business enterprises, whenever possible. Recipients and subrecipients of Federal awards shall take all of the following steps to further this goal. 1. Ensure that small business, minority-owned firms, and women s business enterprises are used to the fullest extent practicable. 2. Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women s business enterprises. 3. Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women s business enterprises. 4. Encourage contracting with consortiums of small businesses, minorityowned firms and women s business enterprises when a contract is too 82

83 large for one of these firms to handle individually. 5. Use the services and assistance, as appropriate, of such organization as the Small Business Administration and the Department of Commerce s Minority Business Development Agency in the solicitation and utilization of small businesses, minority-owned firms and women s business enterprises. C. The type of procurement solicitation used (e.g., informal quotations, formal bids, Request for Proposals (RFP) or Qualifications (RFQ) shall be determined by the subrecipient but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved. See the Summary of Procurement Requirements: Methods of Solicitation in the following Appendix. D. The subrecipient shall enter into contracts only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. In addition, the subrecipient shall consider such matters as contractor integrity; compliance with public policy, including, where applicable, Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u); record of past performance; financial and technical resources or accessibility to other necessary resources. E. The subrecipient recognizes that in certain circumstances, contracts with certain parties are restricted as a result of Executive Orders and These orders dictate the actions taken against contractors who are debarred from participation in contracts paid with Federal funds. The subrecipient will consult the CDBG Coordinator for assistance in evaluating a potential bidder s inclusion on the debarred list as codified at 24 CFR Part 24 and found at the General Services Administration s website F. The subrecipient shall at the request of any Federal, State or local government make available any pre-award or procurement documentation, such as requests for proposals or invitations for bids, independent cost estimates, etc., when any of the following apply: 1. The subrecipient s procurement procedures or operations fail to comply with the procurement standards in HUD s implementation of Circular A The procurement is expected to exceed the $100,000 or the Henry County small purchase threshold of $10,000 fixed at 41 U.S.C. 403 (11), and is to be awarded without competition or only one bid or offer is received in response to solicitation. 3. The procurement, which is expected to exceed the small purchase threshold, specifies a brand name product. 83

84 4. The proposed award over the small purchase threshold is to be awarded to other than the apparent low bidder under sealed bid procurement. 5. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the small purchase threshold Cost and Price Analysis The subrecipient will perform a cost or price analysis for each procurement activity undertaken with Federal funds to include: A. A comparison of price quotations submitted, market prices, and similar indicators, together with discounts. B. A review and evaluation of each element of cost to determine reasonableness, allocable-ability, and allow-ability. C. A comparison of any change order request against an independently prepared estimate for the same work requested to be done as part of the contract. The requested change order must be within 10% of the independently prepared estimate for approval. However, an item-by-item comparison may be made of the request and negotiation for items with wide variations in price may occur to determine if an accurate estimate for that item can be obtained to meet the 10% limit Procurement Records The subrecipient will maintain and provide the county with copies of the procurement records and files for all purchases made with Federal funds, especially those that exceed the small purchase threshold, to include at a minimum: A. The basis for contractor selection. B. Justification for lack of competition when competitive bids or offers are not obtained. C. The basis for the award cost or price Contract Administration The subrecipient will maintain a system of contract administration to ensure contractor conformance with the terms, conditions, and specifications of the contract and to ensure adequately and timely follow up of all procurement activities and purchases. The subrecipient shall evaluate contractor performance and document, as appropriate, whether contractors have met the terms, conditions, and specifications of the contract. 84

85 Contract Provisions The subrecipient shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. The following provisions shall also be applied to subcontracts: A. Contracts in excess of the small purchase threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions as may be appropriate. B. All contracts in excess of the small purchase threshold shall contain suitable provisions for termination by the subrecipient, including the manner by which termination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor. C. Except as otherwise required by Federal statute, an award that requires the contracting (or subcontracting) for construction or facility improvements shall provide for the subrecipient to follow its own requirements relating to bid guarantees, performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding $100,000, HUD may accept the bonding policy and requirements of the subrecipient, provided that HUD has made a determination that the Federal Government s interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows: 1. A bid guarantee from each bidder equivalent to five (5) percent of the bid price. The bid guarantee shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance of the bid; execute such contractual documents as may be required within the time specified. 2. A performance bond on the part of the contractor for one-hundred percent (100%) of the contract prices, a performance bond is one executed in connection with a contract to secure fulfillment of all contractor s obligations under such contracts. 3. A payment bond on the part of the contractor for one-hundred percent (100%) of the contract price, a payment bond is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and materials in the execution of the work provided 85

86 for in the contract. 4. Where bonds are required in the situations described herein, the bonds shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR Part 223, Surety Companies Doing Business with the United States. D. All negotiated contracts (except those for less than the small purchase threshold) awarded by the subrecipient shall contain a provision to the effect that the subrecipient, Henry County CDBG Program, HUD, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers, and records of the contractor which is directly pertinent to a specific program for the purpose of making audits, examinations, excerpts, and transcriptions. E. All contracts, including small purchases, awarded by recipients and their contractors shall contain the procurement provisions of 24 CFR Part 84Appendix A to, as applicable. Appendix A covers other federal laws and provisions covering Equal Employment Opportunity, the Copeland Anti-Kickback Act, the Davis- Bacon Act, the Contract Work Hours and Safety Standards Act, the Rights to Inventions Made Under Contract or Agreement, the Clean Air Act, the Byrd Anti- Lobbying Amendment, Debarment and Suspension, and the Drug-Free Workplace Requirements. 86

87 APPENDIX J METHODS OF PROCUREMENT Informal Quotation Informal Quotations may be used for purchases that do not exceed the County s small purchase threshold of $10,000. A. Quotation Process 1. Subrecipient shall provide a simple specification for the product or service needed. Specification must be prepared and used in soliciting quotations. Vendors are entitled to a written copy of the specification on their request. a. If a need occurs to change the specification during the solicitation period, vendors who have already quoted on the old specification must be provided the revised specification and permitted to change their quotation. 2. The informal quotations may be either verbal or in writing or a mix of verbal and written quotations. If three (3) or more vendors exist, a minimum of three (3) quotes should be sought. a. Verbal Quotes permitted if dollar amount is under $2,500 b. Three (3) verbal quotes. c. File Documentation: Copy of written specifications, List of Vendors contacted include contact information. Copy of any written quotes received. d. Written Quotes permitted when dollar amount is between $2,500 and $10,000 e. Three (3) written quotes. f. File Documentation: Copy of written specifications, List of Vendors contacted include contact information. Copy of all written quotes received. 3. A record of the verbal and/or written quotations and responses of not-interested must be kept. B. The Award 1. When two (2) or more quotes are received, the award must be granted to the vendor whose quotation is the lowest and who: 87

88 a. Is offering the quality needed and requested, b. Can and will deliver the product or service when needed and requested, and c. Has not been found to perform unsatisfactorily in any previous contracts with the County and/or subrecipient and is not listed in the GSA catalog of barred or suspended contractors. 2. Price reasonableness must be documented in the procurement file. In addition to the quotations received, price reasonableness may be documented with: a. Other recent competitive purchases of the same item; b. Catalog price lists that are recent issues. Formal Bids Formal bids procedures must be used for all purchase expected to exceed the County s small purchase threshold of $10,000. A. The Bid Package 1. A Formal Bid Package must be developed by the subrecipient. While every bid package must contain certain standard items, the subrecipient is responsible for developing a specification that is unique to the solicited purchase. 2. A cost estimate should be prepared as part of writing the specification. B. The Specification 1. A detailed written specification must describe: a. The services to be provided, b. The services, construction, repairs, maintenance, replacements or improvements to be accomplished, and/or the supplies, materials or equipment to be delivered, and when they must be provided, accomplished or delivered. 2. Care must be taken to avoid specifications that are unnecessarily restrictive. a. Unnecessary restriction cause potential bidders to decide not to bid and require those who do bid to increase the bid amount. 88

89 b. They discourage Minority and Women s Business Enterprise participation in the bid. C. An Invitation for Bids must be part of the formal bid package and it must include: 1. Special Instructions to the Bidders with the following attachments when applicable: a. Bid Bond requirements b. Performance/Payment Bond a letter of intent from a bonding company c. Statement of Bidder s Qualifications required to be submitted with a bid. d. Davis-Bacon Wage Determination e. Federal CDBG Construction Exhibits f. Section 3 Certification Forms g. Previous Participation Certificate (HUD Form 2530) multifamily residential projects 2. Notice of Invitation for Bids a. Formal bidding requires newspaper advertising of a Notice of Invitation to Bid. The advertisement must be in a newspaper of general circulation. b. The notice must be published at least thirty (30) calendar days before the Bid Opening. c. The advertised Notice of Invitation to Bid must contain the following information: i. A brief, accurate description of the product or service wanted; ii. The full address of the place where complete sets of the bid documents may be obtained; iii. iv. The deadline for obtaining the bid documents; If a pre-bid conference is needed, the date, time and place and whether attendance is mandatory; v. Instructions on packaging, identification and delivery of bids. The full address of the place where the bids will be returned and the deadline (date and time) to return completed bids; vi. The date and time of the bid opening, an admonition that late bids will not be accepted and the full address of the place where the bids will be 89

90 opened; vii. A brief statement of the bid, payment and performance bond requirements and the wage requirements. 3. Amendment of the Notice of Invitation to Bid a. If the original bid documents were posted to the subrecipient s and/or County s website amendments must be posted. It is the bidder s responsibility to check the website regularly during the bid period. b. If the original bid document was not posted to the subrecipient s and/or the county s website the subrecipient is responsible for notifying all potential bidders who obtained the bid documents. Notification may be done via , fax or mail. c. The amendment may be provided together with sets of the bid documents that are obtained after the amendment has been made. d. If an amendment will significantly affect the task of preparing responsive bids or bid amounts and is made within seven (7) calendar days of the bid opening date, the subrecipient must reschedule the bid opening date. 4. Cancelling the Notice of Invitation to Bid a. May be cancelled at any time. b. If the original bid documents were posted to the subrecipient s and/or County s website notice of cancellation must be posted. It is the bidder s responsibility to check the website regularly during the bid period. c. If the original bid document was not posted to the subrecipient s and/or the county s website the subrecipient is responsible for notifying all potential bidders who obtained the bid documents of the cancellation. Notification may be done via , fax or mail. d. If payment for bid documents were required payment must be returned in fill. e. The reason for the cancellation must be supportable and documented in the project file. 90

91 5. Treatment of Bids: a. Before the Opening i. Safeguarding Bids: The Subrecipient will receive bids from the bidders, mark them with the date and time of receipt and keep them together in a safe place. ii. Bids to Remain Sealed: No bid shall be opened for any reason before the time and date specified in the invitation to bid. iii. Registry: A registry of bids received will be kept. The form to be used to record bid data at the opening may be used for this purpose. iv. Withdrawal by Bidder: Before the opening of the bids, bidders may withdraw their bid for any reason, including the wish to make revisions and submit a corrected bid. b. At Bid Opening i. The Cut Off: At the designated place and time as specified in the invitation to bid the Subrecipient or an authorized employee who is in charge of the Bid Opening should announce the bid opening and the closing for accepting bids. Bids received after the close of bidding shall be returned unopened to the bidders with a letter explaining the reason for the return. ii. iii. iv. Recording the Bids: Bids will be opened and recorded on the Bid Registry form. Noting Completeness of Bids: Any missing or unacceptable document, bond, or other requirement of the Notice and the Bid Package shall be noted verbally for the benefit of all who are present and such discrepancies shall also be noted on the Bid Registry form. Declaration Regarding the Bids: When all bids have been opened, verbally noted and entered on the Bid Registry, the Subrecipient or its authorized employee shall make a statement such as: To conclude this bid opening, I note that the bids of 91

92 (names of bidders with no known discrepancies) appear to be complete as submitted. The low bidder is (name of the bidder with the lowest and most complete bid). The decision on an award will be announced within days. The Subrecipient or its authorize employee shall be non-committal about any protests or appeals made at the bid opening and say that the Subrecipient will take such appeals and protests under advisement. v. Bid Registry: The Subrecipient or its authorized employee shall make copies of the Bid Registry and provide a copy to those present at the Bid Opening. Additionally, copies shall be made available to anyone who requests one at a later time. The Subrecipient may consider posting the Bid Registry on its web page for public viewing or ing to all bidders who were not present at the bid opening. 6. Corrections or Withdrawals After the Bid Opening a. The withdrawal of a bid after the bid opening shall result in the forfeiture of the 5% Bid Bond unless the Subrecipient or its authorized employee confirms that a substantial involuntary error was committed- such as a major mathematical error or omission of an important item. b. Correcting omissions or discrepancies that would cause a bid to be rejected will be accepted within a specific period of time following the bid opening only when such discrepancies are not related to the substance of the bid. Corrections may not include such items as price, amount, quality or date of delivery. Request for Proposals (RFP) or Qualifications (RFQ) A. A RFP or a RFQ (for Architectural /Engineering Services) should contain the following elements: 92

93 1. A description of the service needed in sufficient detail to permit potential proposers to determine if they are qualified and interested. 2. The relative importance of price in selecting a contractor when applicable. 3. The complete mailing address of the place to which responses must be delivered; specifying delivery option whether mail, or courier in addition to hand delivery by the proposer. 4. Instructions for packaging the response and for labeling the package. 5. Contact information (name, title, phone number, address) of the Subrecipient or its authorized employee to who any questions must be directed. 6. The date and time at which responses will be opened and beyond which none will be accepted. 7. The time frame or schedule by which the work must be completed, this may be expressed in stages. 8. Selection criteria by which the proposals may be evaluated on. a. Technical competence demonstrated through experience, examples of work, references. b. Evidence that the proposer has the financial and other resources needed to complete the work. c. Stated ability and willingness to complete the work within the stated time frames. d. Merit of specific proposed approaches to the work. e. Cost of proposed services (Not relevant for Architectural/Engineering RFQ s) f. Each evaluation criterion should be given a maximum point value. While 100 maximum points are commonly used, a maximum point value equaling more or less than 100 may be used. The point value system should be established in writing prior to the review of proposals. 93

94 9. Contract Requirements: The RFP or RFQ shall include the various contractual requirements regarding wages and hours, Equal Employment Opportunity, Women s and Minority Business Enterprise, compliance with Federal, Commonwealth and local law, Insurance requirements, etc. B. Notice of Request for Proposals or Qualifications: A Notice of Request for Proposals or Notice of Request for Qualifications must be published in a newspaper of general circulation and industry media likely to reach qualified proposers. 1. Required Timing: The notice must be published at least once thirty (30) days prior to the opening of the proposals. 2. Content: The advertised Notices shall be published in the legal notices section or as a display ad in the newspaper. It must contain the following information: a. A brief, accurate description of the service wanted; b. The full address of the place where complete sets of the proposal documents may be obtained; c. The deadline for obtaining the RFP or RFQ documents; and d. The date and time of which proposals will be opened and evaluated, an admonition that late proposals will not be accepted and the full address of the place where the proposals will be opened. C. Evaluation of Proposals 1. Cost Analysis: Following the proposal opening, the Subrecipient or its authorized representative must evaluate the proposals in light of what is needed to perform the work versus the proposed costs. A comparison of relevant cost factors shall be made. 2. Competitive Range: The evaluation committee will evaluate the proposal received on the basis of the criteria stated in the RFP and the cost/price evaluation. a. A proposal may be determined unacceptable on technical grounds, if the price is clearly excessive compared to other acceptable proposals, or if the proposer does not respond to the RFP as intended. b. Those that are clearly unacceptable will be so notified by 94

95 letter with an appropriate brief explanation for this decision. D. Tentative Award 1. When one (1) proposal is clearly superior to all others, that proposer will be notified of the tentative contract award, subject to negotiation of mutually acceptable terms. 2. The notification letter shall request an appointment with the proposer to negotiate the terms of the contract and to discuss details of the work assignment. E. Tentative Contract 1. The Subrecipient will prepare the contract as prescribed by these requirements. The awardee may request changes in those parts of the contract that are not standard requirements. F. Agreeing to Terms 1. If the Subrecipient and the awardee come to agreement on the terms of the contract, they may proceed with its execution and the awardee will begin providing the contracted services. G. No Agreement 1. If the Subrecipient and the awardee cannot come to an agreement, the Subrecipient shall proceed with contract negotiations with the proposer with the second highest total of evaluation points. H. Best and Final Offers 1. If two (2) or more proposals are similar in ranking under the evaluation criteria, each should be interviewed for solicitation of a best and final offer. 2. Excessive Costs: If proposed cost is excessive, the proposer should be advised as so. 3. Limits on Offers: Only one (1) best and final offer should be permitted from each proposer. 4. Confidentiality of Offer: Care should be taken to not reveal any information about other offers. I. Price Negotiation Memo: The Subrecipient must prepare a price negotiation memo for the file that summarizes the results of the negotiations and explains the basis for the award decision. 95

96 INTRODUCTION APPENDIX K CDBG SUBRECIPIENT MONITORING PLAN Henry County will monitor CDBG activities to ensure appropriate use of CDBG funds. The county will require all subrecipients to submit project completion schedules with measurable objectives to be achieved on a monthly or quarterly basis. Progress reports will be required for each project receiving grant funds. Monthly progress reports will be required for activities involving construction such as public facility improvements or housing rehabilitation projects. Quarterly progress reports will be required for public service activities. Reporting may be requested more frequently if deemed necessary by CDBG Program Staff. However, progress reports shall not be required more frequently than monthly. In addition to progress reports, each subrecipient will submit periodic requests for reimbursement. Each subrecipient will be required to maintain records of all project expenses, activities, correspondence, and other information as requested by the county, for a period of no less than five years from the date of the final project report. All documentation will be maintained in the county s CDBG files. Additionally, the county will make on-site visits to inspect the progress of each project and review subrecipient records. PURPOSE The purpose of this Monitoring Plan is to establish standards and provide guidance for monitoring CDBG funded projects. Monitoring is a management control technique for ongoing assessment of the quality of grantee performance over a period of time. Monitoring is required pursuant to 24 CFR (b) which states that: [the grantee] is responsible for ensuring that CDBG funds are used in accordance with all program requirements. The use of Subrecipients does not relieve the recipient of this responsibility. The recipient is also responsible for determining the adequacy of performance under subrecipient agreements and for taking appropriate action when performance problems arise. 96

97 The language of 24 CFR 85.40(a), Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, applicable to CDBG funds, further elaborates that: Grantee is responsible for managing the day-to-day operations of grant and subgrant supported activities. Grantees must monitor subgrant supported activities to assure compliance with applicable Federal requirements and that performance goals are being achieved on an annual basis. Grantee monitoring must cover each program, function, or activity. Similar language in 24 CFR 84.51(a) applies to the monitoring of non-profit entities. Henry County CDBG Program Staff will monitor the performance of the Subrecipient against goals and performance standards as set out in the Subrecipient Agreement. Substandard performance, as determined by said program staff, will constitute non-compliance with the Agreement. If action to correct any Findings is not taken by the Subrecipient within a reasonable period after notification by the program staff, contract suspension or termination may occur. CDBG staff will make on-site visits frequently and ensure ongoing compliance; however, the process outlined in this plan is for the official Monitoring on-site visit. OBJECTIVE The Monitoring Plan will help Henry County to make informed judgments about Subrecipient program effectiveness, efficiency, and their ability to prevent fraud, waste, and abuse of public funds. Monitoring also allows the County to provide technical assistance to help Subrecipients comply with applicable laws and regulations, improve technical skills, increase capacity, and stay updated on regulations relevant to CDBG. Additionally, monitoring helps to identify deficiencies, and highlight accomplishments and best practices that can be duplicated. This plan applies to any project funded with CDBG dollars in part or in full. The primary objectives of monitoring are to: Make sure the Subrecipients comply with all the federal regulations governing their administrative, financial and programmatic operations; and 97

98 Make sure the Subrecipients achieve their performance objectives within the scheduled phase and the budget. This document will identify the types of monitoring, the risk analysis to determine monitoring levels and the procedures and tools for monitoring. APPLICABILITY This plan applies to monitoring strategies for the following compliance areas: Compliance Areas: National Objective and Eligibility; Citizen Participation; Environment; Fair Housing and Equal Opportunity (FHEO); Professional Services Procurement and Contract Management; Financial Management and Common Rule Compliance; Bidding and Contracting; Labor; Housing Rehabilitation and Lead Hazards; Uniform Act and Section 104(d) (demolition, acquisition and relocation); and Close-Outs. High-risk Assessment Activities or Subrecipients considered high risk will undergo monitoring on an annual basis. High risk activities and Subrecipients include: Subrecipients new to the CDBG program; Subrecipients that have experienced turnover in key staff positions or a change in goals or direction; Subrecipients with previous compliance or performance problems including failure to meet schedules, submit timely reports or clear monitoring or audit findings; Subrecipients carrying out high-risk activities (such as economic development or acquisition activities); and Subrecipients undertaking multiple CDBG activities simultaneously. 98

99 Subrecipients not considered high risk will be monitored at a minimum of once every three (3) years or once per activity, if the project is not ongoing. All CDGB projects will be monitored at least once. PROCEDURE Monitoring visits occur by the submission of a formal monitoring letter including the date, time, attendees, review of checklist of items, and any other pertinent information. Clear documentation of all information is required. A desk review of the project file should take place before the on-site visit. There are six (6) phases to any monitoring visit: 1. Notification Letter 2. Desk Review 3. Entrance Conference 4. Documentation, Data Acquisition, and Analysis 5. Exit Conference 6. Monitoring Follow-up Letter Notification Letter The process for on-site monitoring begins with a phone call or to explain the purpose of monitoring and to schedule an appropriate time. A formal notification should be sent a few weeks prior once this date is established confirming the date and scope, providing a description of the information that will be reviewed, and summarizing the duration and resources needed for the monitoring visit. Desk Review Before taking an on-site visit, a Desk Review should be conducted. This review should check the progress of the project based on reports and files that have been submitted to the office. It should also review that the subrecipient is current with submitting necessary paperwork, and any other issues that may be addressed during the on-site visit. Preliminary concerns from the Desk Review may be brought up in the Entrance Conference. Entrance Conference A meeting should take place with the Subrecipient s Director or appropriate staff before monitoring begins. This meeting is to ensure that the Subrecipient staff has a clear understanding of the purpose, scope, and schedule or the monitoring before the process begins. There should also be a clear consensus at this meeting that it is 99

100 the CDBG staff s responsibility to monitor subrecipient activities and determine whether CDBG funds are being used appropriately and whether regulations are being met. Documentation and Data Acquisition Monitoring should include a tour of the program facilities or project site, including explanations of services provided by CDBG funds, discussions with program, administrative, or construction staff, and introductions to beneficiaries where applicable and possible. All of these actions should be documented by the CDBG monitoring staff. Documents should also be reviewed, including, but not limited to, written policies, file reviews, financial books and files, and program literature and administrative forms. In the case of healthcare activities, no patient medical files should be reviewed by CDBG staff as part of the monitoring process. As much as possible, sources of data should be carefully recorded by the monitoring staff to refer back to in analysis. An on-site report should be written up based on the attached form. Exit Conference At the end of the on-site visit, CDBG monitoring staff should meet again with the key representatives from the Subrecipient and present tentative conclusions from the visit. The exit conference should cover the following four (4) main objectives: 1. To present preliminary results of the monitoring visit; 2. To provide an opportunity for the Subrecipient to correct any misconceptions or misunderstandings; 3. To secure additional information from the Subrecipient staff clarifying or supporting their positions; and 4. For any deficiency that the Subrecipient agrees with, to provide an opportunity for Subrecipient staff to report on steps they are already taking to correct the matter. Documentation of this exit conference should also be carefully kept including noting the tentative conclusions and agreement or disagreement with those on the part of the Subrecipient. At the end of the exit conference, there should be a clear understanding of the areas of agreement and disagreement about the monitoring results. 100

101 Monitoring Follow-Up Letter Following the on-site monitoring visit, a follow-up letter should be sent to the Subrecipient summarizing the visit and formalizing any Findings. This should also include highlighting successes of the project observed during the visit. Any deficiencies should be described in the letter along with recommendations or requirements for improvement. The Monitoring Follow-up Letter should be a formal, permanent written record in the project file, and it should fully identify every Finding and Concern. A Finding should be issued for non-compliance with rules and regulations of the CDBG program. Findings must be: Correctly identified; Based on applicable law, regulation, or program policy; and Supported by the facts presented in the monitoring letter. For each Finding, corrective actions the Subrecipient must take should be specified. Concerns in the monitoring process are instances where the deficiency is not a finding, but where non-compliance may occur in the future because of weakness in the Subrecipient s operations. For each Concern, specific recommendations for improvement should be included. Deadlines on the following should be included in the Monitoring Follow-up Letter: Providing a written response to the monitoring letter that describes how the Subrecipient should resolve any Finding(s); and Correcting each deficiency identified in the letter. No written response is required for Concerns noted in the Monitoring Follow-up Letter. The Monitoring Follow-up Letter should be mailed within 30 days of the exit conference. REMEDIES The overriding goal of monitoring is to determine compliance, prevent/identify deficiencies, and provide technical assistance to enhance grantee performance. However, when findings are made, the CDBG Department should determine appropriate corrective actions to address the Finding or deficiency. Subrecipients who are found to be in non-compliance and receive a Finding as a result of their 101

102 monitoring should be provided with technical assistance towards a resolution, and actions taken by the County to achieve compliance may include, but not be limited to, withholding further disbursements of CDBG funds until satisfactory compliance with applicable regulations are achieved. 102

103 APPENDIX L HENRY COUNTY NATIONAL REGISTER OF HISTORIC PLACES (To assist with determination of projects that may affect historic resources) Through December 5, 2013 Row Resource Name Address City Listed 1 Brown House 71 Macon Street McDonough 8/1/ Crawford- NW of Hampton at U. Unincorporated 4/1/1980 Talmadge House also known as Lovejoy Planation S. 19/41 and Talmadge Road Hampton 3 Globe Hotel 20 Jonesboro Street McDonough 9/5/1985 also known as Dunn House 4 Griffin, Smith Off Wynn Drive, NE Unincorporated 12/19/1985 House of GA Hwy 20 Hampton 5 Hampton Depot E. Main Street Hampton 9/10/ Henderson 10 James Street Hampton 10/27/2004 Manufacturing Company 7 Henry County Courthouse Square McDonough 9/18/1980 Courthouse 8 Hooten, James and 115 Atlanta Street McDonough 5/20/2009 Bertha House 9 Lawrenceville Street Historic District 10 Locust Grove Institute Academic Building 11 McDonough Historic District 12 Walden-Turner House Lawrenceville Street (roughly between Henry County Courthouse Square and GA Hwy 20) McDonough 2/20/ GA Hwy 42 Locust Grove 9/4/1986 Centered on Griffin Street and Keys Ferry Street GA Hwy 42 and Ward Street 103 McDonough 11/19/2007 Stockbridge 4/9/1980

104 APPENDIX M DEFINITIONS OF COMMONLY USED CDBG TERMS Action Plan: The one-year portion of a grantee s Consolidated Plan describing how it will use CDBG and HOME funds, among others. See the definition of the Consolidated Plan. Administrative Cost: The cost for general management, oversight, monitoring, and reporting eligible activities. These costs do not include costs to directly administer eligible activities. Allocation: The amount of budget authority transferred from one agency, bureau, or account that is for the purpose of the Appropriation. A grantee gets an allocation of CDBG funds. Analysis of Impediments (AI): A HUD requirement for each grantee to conduct an analysis to determine impediments to fair housing choice within the grantee. The grantee must take appropriate actions to overcome the effects of any impediments identified through that analysis. Annual income: Gross income projected forward for the next twelve months for all adult members of the household. Grantees may select one of three definitions of income The Sections 8 (or Part 5 ) definition; the IRS adjusted gross definition used in the Form 1040; or the definition used in completing the Census Long Form. (See HUD s latest Technical Guide on Calculating Income and Allowances in the HOME Program, updated in 2005, for detailed information about calculating income that also provides guidance to CDBG administrators.) Appropriation: Statutory authority that allows federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriation act is the most common means of providing budget authority. HUD gets a certain appropriation of funds for the CDBG program. Authorized Legislation: Specific authority in the form of a law which is necessary before a program can be carried out and funds can be appropriated. 104

105 Community Based Development Organization (CBDO): A for-profit or nonprofit organization organized under state or local law to undertake community development activities within a defined service area. CBDO s primary purpose is to undertake community development by addressing one or more critical problem areas, with special attention to the needs of low- and moderate-income (LMI) persons. After designation a CBDO may undertake eligible activities, including special economic development activities and new construction of housing. (CBDOs are the only entities that may construct new rental or homeownership units utilizing CDBG funds.) At least 51% of the CBDO s governing Board must represent LMI citizens in its service area. No more than 1/3 of the Board members may be employees of the County or appointed or elected public officials. Similar to a Community Housing Development Organization (CHDO) in Home, but a CBDO is not automatically a CHDO and vice-versa. Community Development Financial Institution (CDFI): A non-public organization that serves an investment area or targeted population and has as its primary mission the promotion of community development for that area or population. It provides development services, loans and investments and is accountable to the residents within the investment area. Consolidated Plan: Developed by local and state government with input form citizens and community groups, the Consolidated Plan serves four functions: 1) it is a planning document for each state and community, build upon public participation and input; 2) it is the application for funds under HUD s formula grant programs (CDBG, HOME, ESG, and HOPWA); 3) it lays out local priorities; and 4) it lays out a 3-5 year strategy the jurisdiction will follow in implementing HUD programs. Continuum of Care: Policies designed to address the critical problem of homelessness that include a coordinated community-based process of identifying needs and building a system to address those needs. The approach is based on the understanding that homelessness is not caused merely by a lack of shelter, but involves a variety of unmet needs including physical, economical and social. Cost Burdened: Persons paying greater than 30% of their income on housing. Extremely Cost burdened households spend greater than 50% of their income on housing. 105

106 Davis-Bacon: Statutory requirement that persons working on Federally-supported projects be paid at least prevailing wage rates as determined for classifications of work by region and set by the Department of Labor. Disbursements: Payments made using cash, checks, or electronic transfers. Disbursements include advances to others as well as payments for goods and services received and other types of payments made. Environmental Assessment (EA): A preliminary, written, environmental analysis required by EPA to determine whether a federal activity such as the creation of a airport or highway would significantly impact the environment; an EA may require preparation of a more detailed Environmental Impact Statement. Environmental Impact Statement (EIS): A document prepared by or for EPA which identifies and analyses, in detail, the environmental impacts of a proposed action. As a tool for decision-making, the EIS describes positive and negative effects and lists alternatives for an undertaking, such as development of a wilderness area. Extremely Low Income: For many HUD programs, households making less than 30% of Area Median Income. Fair Housing Act: Legislation first enacted in 1968 and expanded by amendments in 1974 and 1988, which provides the Secretary with investigation and enforcement responsibilities for fair housing practices. Prohibits discrimination in housing and lending based on race, color, religion, sex, national origin, handicap, or familial status. Fair Market Rents (FMR): Rent Schedules published annually in the Federal Register which establishes maximum eligible rent levels allowed under the Section 8 program by geographic area and used for various purposes in the HOME and CDBG programs. Fiscal Year (FY): Any yearly accounting period, regardless of its relationship to a calendar year. Henry County s fiscal year begins on July 1 and ends the following June

107 Finding of No Significant Impact (FONSI): A document presenting findings of an Environmental Assessment that a proposed project will result an action which will significantly affect the quality of human life. Group Home: Housing occupied by two or more single persons or families consisting of common space and/or facilities for group use by the occupants and separate private space for each family or household. Hatch Act: Act prohibiting partisan political activity on the part of federal employees. Home: HUD program which provides funds to local governments and states for new construction, rehabilitation, acquisition of standard housing, assistance to homebuyers, and tenant-based rental assistance. Household versus family: A household includes all persons residing together, whether or not they are related through blood, marriage, or act of law. Integrated Disbursement and Information System (IDIS): A database created by HUD to provide current information regarding CPD program activities, including funding data. HUD uses this information to report to Congress and monitor grantees. IDIS is the draw down and reporting system for the four CPD formula grant programs: CDBG, HOME ESG, and HOPWA. Inspector General (IG): The head of the Department s Office of Inspectors General, appointed by the President, responsible for conducting audits and investigations of HUD programs and operations. Low- and Moderate-Income (LMI) Households: For purpose of the CDBG program, this includes households whose total annual income is between 0 80% of the Area Median Income. As determined by HUD. Low Income Household: These are households with incomes between 0 50% of Area Median Income, as determined by HUD. In the HOME Program, and many other HUD programs, households at this income level would be called very low income. Moderate Income Household: These are households with incomes between 51 80% of Area Median Income, as determined by HUD. In the HOME Program, and 107

108 many other HUD programs, households at this income level would be called low income. Neighborhood Revitalization Strategy (NRS): Entitlement grantees are authorized to develop comprehensive approaches to address economic development needs in an identified neighborhood and, upon HUD approval, may undertake a broader range of activities than they would be able to do otherwise. Notice of Funding Availability (NOFA): Published in the Federal Register to announce federal competitive funding programs. Obligations: An amount reserved for an order placed, contract awarded, services received, and similar transaction that will require payment during a specific period and that complies with applicable laws and regulations. Office of Management and Budget (OMB): An Executive Agency which assist the President in overseeing the preparation of the Federal budget. In addition, OMB oversees and coordinates the Administration s procurement, financial management, information, and regulatory policies. Participating Jurisdiction: The term given to any State o local government that HUD has designated to administer HOME Program funding. Project Completion: The stage at which all necessary title transfer requirements and construction work has been performed; the project complies with all program requirements; and the project completion data has been entered into IDIS. Request for Proposals (RFP) or Qualifications (RFQ): An RFP or RFQ is the instrument used to solicit competitive proposals/offers for proposed contracts using the negotiated procurement method. This method is appropriate for work of such nature that the end result or product can be expressed in general terms. The Request for Proposals selection process is most appropriate for Consultant Services, Accounting Services and Project Developers. The services of an Architectural or Engineering firm would usually be selected through a competitive Request for Qualifications process. Section 3: A section of the Housing and Urban Development Act of 1968 which obligates grantees undertaking construction projects to provide local low-income residents access to jobs and contracting opportunities created by federal funding. 108

109 Severely Disabled: The census definition of Severely Disabled states that persons are classified as having a severe disability if they: Used a wheel chair or another special aid for six months or longer; Are unable to perform one or more functional actives or need assistance with activities of daily life such as getting around the home, bathing, cooking, eating, and toileting. It includes seeing, hearing, having one s speech understood, lifting and carrying, walking up flight of stairs, and walking. Are prevented from working at a job or doing housing; or Have a selected condition including autism. Cerebral palsy, Alzheimers disease, senility or dementia, or mental retardation. Persons under 65 years of age and who are covered by Medicare or receive SSI are considered to have a severe disability. Title I of the Housing and Community Development Act of 1974 (CDBG): Act authorizing block grant assistance to communities instead of categorical grants. Transitional Housing: A project that has as its purpose facilities the movement of homeless persons to permanent housing within a specified time. Services to the residents are generally a part of the program. 109