Community Development Block

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American Recovery and Reinvestment Act of 2009

• Community Development Block
• Grant Recovery
• Meeting and Informational Session

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WELCOMING REMARKS

• Tony Wilder, Commissioner DLG
• Welcome and Congratulations
• Lynn Littrell, Executive Director, Federal Grants
• Quick Synopsis of ARRA
• CDBG-R Selection Process
• CDBG-R Grantee Roll Call
• Please feel free to ask questions throughout the
  session

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Why ARRA was passed?

• Act signed into law on February 17, 2009
• Designed to
• Stimulate the Economy
• Create and Maintain Jobs
• Modernize the Nations Infrastructure
• Improve Energy Efficiency
• Expand Educational Opportunities and Access to
  Health Care
• Provide Funding for Carefully Targeted Priority
  Investments
• Stress Accountability and Transparency Measures

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Kentuckys Share of the ARRA

• Estimated 3 Billion to be Spent over 28 months

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DLGs Share of ARRA

• 7.2 Million from Housing and Urban Development
  (HUD CDBG-R)
• Timing and Project Selection
• Recommended 13 projects to HUD on 6/29/09
• Received HUD approval on 8/3/09
• Projects in Four Program Areas
• - Housing - Public Facilities
• - Community Projects - Econ. Development

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CDBG-R Housing Projects
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CDBG-R Public Facilities Projects

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CDBG-R Community Development, Recovery, and
Economic Development Projects
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HUD Award Process and DLG Implementation

• Preliminary Approval Letters
• Supplemental Application Form
• Project Information
• Title VI
• Housing and Community Needs
• Statement of Assurances
• Grant Agreements

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Kentucky CDBG-R Timeline
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Preliminary Approval Letters

• Sent to each recipient in August.
• Each letter describes details and guidelines for
  the administration of CDBG-R funds.
• Letters signed by the elected official of each
  awarded community.
• Returned to our offices by September 1, 2009
• Identifies the CDBG-R Grant award amount

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Supplemental Application Form

• Project
• Funding
• Summary

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Supplemental Application Form

• Project
• Funding
• Summary

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Supplemental Application Form

• Mapping
• Requirements

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Supplemental Application Form

• Full Application Checklist
• Project Summary
• Cost Summary Commitment of other funds
• Mapping Requirements
• Clearinghouse Comments Need to Update
• National Objectives Identification
• Certification of Area Income Eligibility
• Benefit Profile (Person/Household)
• Detailed Cost Estimate (Eng./Arch.)
• Housing and Community Development Needs
• Title VI Form
• Statement of Assurances
• Disclosure Report

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Supplemental Application Form

• Statement of Assurances
• Each entity must sign a new Statement of
  Assurances that contains additional assurances.

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Supplemental Application Form

• Citizen Participation
• Must conduct at least one public hearing in the
  community where the project is taking place.

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Supplemental Application Form

• Grant Agreements
• Each recipient of CDBG-R funds will enter into a
  separate grant agreement.
• Separate Grant Agreement Meetings will be
  conducted upon request from DLG.

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Standard CDBG Requirements

• Certified Administrators
• Federal Requirements
• Drawing Funds
• Monitoring
• Closeout

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Certified Administrator

• The State of Kentucky requires that individuals
  who administer CDBG funds be officially certified
  by DLG as a CDBG administrator.
• To be certified as a CDBG administrator,
  individuals must attend a specific DLG-sponsored
  training workshop and pass a test, which is
  administered on the last day of the training
  delivery.

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Certified Administrator

• New Administrator Certification Training
• OCTOBER 6-9, 2009
• Holiday Inn University Plaza
• 1021 Wilkinson Trace
• Bowling Green, KY 42103
• [phone]
• Guest Room Rate 95
• Reservation must be made by 9/5/09

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Federal Requirements

• ARRA did not modify CDBG program requirements
  such as
• Environmental Review w/clearinghouse comments
• Labor Standards
• Acquisition/Relocation
• Fair Housing/Equal Opportunity
• Etc.

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Federal Requirements

• The only federal requirement waived was
  application stage citizen participation no
  initial public hearing.
• All other CDBG requirements apply!
• Similarly, Federal Wage Rates and URA will apply
  to the entire project, even if ARRA only funds a
  portion of the project

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Sample Evidentiary Required

• Evidence of commitment of all other funds
• Copy of and evidence of adoption of a procurement
  code meeting the CDBG requirements
• Evidence of Clearinghouse review and assurance
  that all conditions will be met
• Resolution that cost overruns will be borne by
  the Recipient
• Authorized Signature Form
• Electronic Transfer of Funds Form

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Drawing Funds

• ARRA funds must be drawn as a new project, even
  if you are adding money to an existing CDBG.
• Separate draw request form
• Separate number (project number-A)

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Drawing Funds

• Draw requests received by DLG by the 3rd of the
  month will be processed by the 15th and draw
  requests received by DLG by the 18th of the month
  will be processed by the 30th.
• Draw request form http//dlg.ky.gov/downloads.htm
  

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Authorized Signature Form

• The signatures listed on this form must match a
  signature on the draw request.

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Direct Electronic Transfer Form

• This form must be signed and returned before a
  draw request can be processed.
• Attach a voided check or deposit slip so that DLG
  can ensure the funds are going into the right
  account.
• Non-interest bearing account
• When a draw request is processed, the funds will
  be transferred to your account.
• The money must be spent within 5 days, if the
  account balance is more than 5,000.

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Project Monitoring

• DLG is required by Title I of the Housing and
  Community Development Act of 1974, and 24 CFR
  Part 570.492 of the State CDBG Regulations to
  monitor its grantees.

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Project Monitoring

• The review responsibility requires that the State
  ensure three key areas are in compliance
• Approved activities are carried out in a timely
  manner
• Activities and certifications are conducted in
  accordance with the requirements and the primary
  objectives of Title I and with other applicable
  laws and
• Grantees show a continuing capacity to carry out
  approved activities in a timely manner.

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Project Monitoring

• DLG will monitor all or a portion of the
  following documents and files, depending on the
  type of project
• program performance
• environmental review
• financial management
• procurement
• acquisition and relocation
• fair housing, minority business enterprise
• construction contracts

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Closeout

• Upon completion of CDBG-R-funded activities and
  the expenditure of all CDBG-R funds in
  conformance with program guidelines, the grantee
  enters the final phase in the grant management
  process known as grant close-out.
• The close-out process encompasses a series of
  activities that together verify that CDBG-R funds
  have been properly spent and that the grantee
  complied with all applicable rules and
  requirements in the implementation of its
  program.

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Closeout

• Grant close-out is initiated when a project is
  complete. The CDBG-R close-out process consists
  of several key steps, including
• Conducting a public hearing to inform citizens
  that the project is complete and will be closed
  out
• Completing and obtaining approval of the Project
  Completion Report (PCR) and several other
  documents that must be submitted with the PCR
  and
• If applicable, submittal of an audit and
  resolution of any audit findings.

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Closeout

• Project Completion Report (PCR)
• http//dlg.ky.gov/downloads.htm

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Special CDBG-R Requirements

• Project Timelines
• Buy American
• Reporting Requirements
• Signs/Logos

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CDBG-R Project Timeline

• Spirit and Letter of the Law in the ARRA and OMB
  Guidance
• DLGs Project Selection Criteria
• Limit of 120 Days to Award Contracts
• Project Specific Completion Date in Preliminary
  Approval Letter and Grant Agreement
• September 30, 2012 ARRA Ends
• State and Federal Oversight via Reporting

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Buy American Provisions

• The Act includes a Buy American provision in
  Section 1605 that requires recipients of ARRA
  funds to use domestic iron, steel, and
  manufactured goods that are produced in the
  United States for construction and rehabilitation
  of public buildings and public works
• Section 1605 also sets forth certain
  circumstances under which a federal agency may
  determine to waive Buy American Requirements

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Definitions

• Steel an alloy that includes at least 50 iron,
  between .02 and 2 carbon, and may include other
  elements.
• Production in the US of the iron or steel used in
  the project requests that all manufacturing
  processes must take place in the US, except
  metallurgic processes involving refinement of
  steel additives

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Definitions

• Manufactured good a good brought to the
  construction site for incorporation into the
  building or work that has been
• Processed into a specific form and shape or
• Combined with other raw material to create a
  material that has different properties than the
  properties of the individual raw materials
• There is no requirement with regard to the origin
  of components or subcomponents in manufactured
  goods, as long as the manufacture of the goods
  occurs in the US

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Waivers of Buy American Provision

• A waiver must be provided if HUD Headquarters
  determines that
• Applying these requirements would be inconsistent
  with the public interest
• Iron, steel, and the relevant manufactured goods
  are not produced in the United States in
  sufficient and reasonably available quantities
  and of satisfactory quality or,
• Inclusion of iron, steel, and manufactured goods
  produced in the United States will increase the
  cost of the overall project by more than 25.

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Definitions

• Reasonably Available Quantity The quantity of
  iron, steel, or the relevant manufactured good is
  available or will be available at the time needed
  and place needed, and in the proper form or
  specification as specified in the project plans
  and design.

• Satisfactory Quality The quality of iron,
  steel, or relevant manufactured good as specified
  in project plans and designs.

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How to Get a Waiver

• The waiver process begins with you
• The grantee must design the project and solicit
  bids for construction with American made iron,
  steel, and manufactured goods in good faith
• All soliticitations for bids must include the Buy
  American terms
• Complete a checklist and send it to DLG
• Waivers will be approved or denied within a
  reasonable time

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Buy American Provision

• Assure Language is contained in Bid Document
• DLG can provide a Sample Insert

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ARRA Reporting Requirements

• Who is required to report under Section 1512 of
  the Act?
• Prime recipients who receive Recovery Act funds
• Sub-recipients of Recovery Act funds
• Prime recipients may select to report on behalf
  of sub-recipients

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ARRA Reporting Requirements

• What reporting is required under Section 1512?
• Total amount of funds received and of that, the
  amount spent on projects and activities
• A list of projects and activities funded by name
  to include
• Description
• Completion Status
• Estimates on jobs created and retained
• Details on Vendors

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ARRA Reporting RequirementsPrime Recipient
(State) Basic Requirements

• Federal Funding Agency Name
• Award Identification
• Recipient D-U-N-S number
• Parent D-U-N-S
• Recipient CCR information
• CDFA number, if applicable
• Recipient Account Number
• Project/grant period
• Award Type, Date, Description, and Amount
• Activity code and description

• Amount of Federal Recovery Act funds expended to
  projects/activities
• Project description and status
• Job creation narrative and number
• Infrastructure expenditures and rationale, if
  applicable
• Recipient primary place of performance
• Recipient area of benefit
• Recipient officer names and compensation (Top 5)
• Total number and amount of small awards less
  than 25,000

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ARRA Reporting RequirementsSub-Recipient (County
or City) Basic Requirements

• Sub-recipient D-U-N-S
• Sub-recipient CCR information
• Sub-recipient type
• Amount received by sub-recipient
• Amount awarded to sub-recipient
• Sub-award date
• Sub-award period
• Sub-recipient place of performance
• Sub-recipient area of benefit
• Sub-recipient officer names and compensation (Top
  5)

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ARRA Reporting RequirementsSub-Recipients
Vendor Basic Requirements

• D-U-N-S or Name and Zip Code of Headquarters
• www.fedbizopps.gov

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ARRA Reporting Requirements

• When is the reporting required to begin?
• Initial reports are due October 10
• Reporting is cumulative from enactment of the
  Recovery Act
• How will Prime Recipients report?
• FederalReporting.gov
• How will Kentucky sub-recipients report?
• Vendors ? Grantee on Last Day of Quarter
• Grantee ? DLG on 5th Day of New Quarter
• Format to be developed

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ARRA Reporting Requirements

• Additional Reporting Issues
• No waivers
• Non-compliance could be treated as a violation of
  the award agreement
• Finally, all of the information will be available
  to the public through www.Recovery.gov

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Reporting on Job Creation

• Prime recipients are required to report on all
  jobs they have created or retained as a result of
  the Recovery Act, by project or activity
• This information will be reported as two separate
  fields a numeric field and a separate narrative
  with an expanded description of the job creation
  and reporting methodology
• Prime recipients will report the number created
  and retained using a standard calculation,
  translating both full and part time employees
  into full-time equivalents, or FTEs
• This calculation is performed by adding the total
  hours worked by all employees in the quarter, and
  dividing by the total hours in a full-time
  schedule

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Reporting on Job Creation

• In some cases recipients will not perform the
  work themselves, but will distribute the funding
  via a grant, loan, or contract to another entity.
  In these cases, recipients will provide
  estimates of the jobs created or retained by
  those entities
• Prime recipients are required to generate
  estimates of job impact by directly collecting
  specific data from sub-recipients and vendors on
  the total FTE resulting from the sub-award

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Job Estimate Example

• Assume that a recipient is preparing its first
  quarterly report and that the recipients
  Recovery Act funded work required two full-time
  employees and one part-time employee working half
  days for the quarter
• Also assume that the recipients full-time
  schedule for the quarter is 520 hours (2080 hours
  in a work year divided by 4)
• To convert hours worked to number of FTE for the
  first quarterly report, aggregate all hours
  worked and divide by the number of hours in a
  full-time schedule for the quarter
• In this example, full-time hours worked (520
  hours x 2 employees 1040 hours) part-time
  hours worked (260 hours) number of hours in a
  full-time schedule for the quarter (520 hours)
  2.5 FTE reported in the first quarterly report
• Because jobs are reported cumulatively each
  quarter, this same number of FTE would be
  reported for the second quarter if the same
  number of employees worked the same number of
  hours

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Job Estimate Example (continued)
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General Guidelines for Emblem and Logo
Applications

• Projects funded by the ARRA must bear Emblem
  throughout the construction phase
• Symbol of President Obamas commitment to
  American People to invest their tax dollars
  wisely to put Americans back to work
• Must be displayed in a prominent location on site
• Precise Color References

• Two Approved Marks
• Primary Emblem (circle)
• Horizontal Logomark (recovery.gov)
• Primary Emblem
• Should not be displayed at a size less than 6 in.
  in diameter
• Horizontal Logomark
• Press releases and other online or offline
  communications

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(No Transcript)
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ANY QUESTIONS?
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For More Information

• Office of Federal Grants
• Department for Local Government
• 1024 Capital Center Drive, Suite 340
• Frankfort, KY 40601
• Phone [phone]
• Fax [phone]
• Website www.dlg.ky.gov
• www.kentuckyatwork.ky.gov
• www.recovery.gov
• www.whitehouse.gov