Community Development Block Grant – Disaster Recovery

1. Community Development Block Grant – Disaster Recovery Overview and Implementation August 05, 2014

2. AGENDA • Introductions • Program Overview • Program Requirements • The Process – from Application to Payment • Resources and Contacts • Q & A

3. Overview: What is CDBG-DR? • Special appropriations by Congress following a disaster • Supplements FEMA, SBA, NFIP, USACE and other federal resources to cover unmet needs • General focus is on ‘recovery’ rather than ‘relief’ • Administered by HUD as grants to States (or entitlements) following CDBG rules with certain waivers

4. Appropriations Law Funds must be used for: “…necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure, housing, and economic revitalization…”

5. Colorado Disasters Applicable Disasters • DR 4145 – Colorado Severe Storms, Flooding, Landslides and mudslides – Sept. 2013 • DR 4134 – Black Forest Wildfire – June 2013 • DR 4133 – Royal Gorge Wildfire – June 2013 • DR 4067 – High Park and Waldo Canyon Wildfires – Jun/Jul 2012 First Allocation of $62.8 Million covers only the Colorado Floods of 2013. Wildfires included as part of Second Allocation

6. Allocations • 1st Allocation - $62.8 Million (Floods Only) • Federal Register Vol.78 No.241; Dec 16, 2013 • 2nd Allocation - $199 Million (Includes Wildfires) • Federal Register Vol.79 No.106; Jun 3, 2014 • 3rd Allocation - $58 Million • TBA • Nationwide Competitive Resiliency Grant $1B

7. First Allocation $62.8M * Includes Temporary Rental Assistance, Down Payment Assistance, Single-Family Rehabilitation, and Construction and Demolition ** Colorado is currently seeking a waiver to implement this program

8. Implementation Partnership • Overall Management – Department of Local Affairs (DOLA) • Housing Programs – Division of Housing (DOH) • Infrastructure Programs – Department of Homeland Security and Emergency Management (DHSEM) • Economic Development Programs – Office of Economic Development and Int’l Trade (OEDIT) • Agriculture Programs – Colorado Department of Agriculture (CDA)

9. AGENDA • Introductions • Program Overview • Program Requirements • The Process – from Application to Payment • Resources and Contacts • Q & A

10. Program Requirements Projects Must … • Be Disaster Related* • Meet a National Objective • Serve Low/Moderate Income • Address Slum and Blight • Meet an ‘urgent need’ • Be an Eligible Activity under CDBG *”Disaster Related” does not always mean “damaged.”

11. Program Requirements As a Grant we must … • Ensure 50% of the dollars are invested in programs that serve Low and Moderate Income Households. • Ensure 80% of the resources go to the 3 most heavily impacted counties of Boulder, Larimer and Weld.

12. Expenditure Deadline!! April 29, 2016 • 2 years from the date HUD grant agreement was executed with the State of Colorado. • All $62.8 million must be expended and drawn

13. National Objectives • Benefit low- and moderate-income (LMI) persons • LMI Area Benefit (Census or Survey) • LMI Limited Clientele • LMI Housing • LMI Jobs • Aid in the prevention or elimination of Slums or Blight (Area or Spot basis) • Urgent Need (threat to community health / welfare; disaster related impact; 18 month requirement waived for post-Sandy disasters)

14. Eligible Activities CDBG regulations permit grantees to undertake a wide range of program activities in the following broad categories: • Housing • Public Facilities • Public Services • Economic Development • Planning and Administration NOTE: Cost share for other federal funds is allowed, provided the original use was for an eligible activity. Chapter 2 of this document provides an excellent resource for determining the eligible activity: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/library/stateguide

15. What’s Different from Regular CDBG? • Timely Expenditure requirement (2 year clock) • Serve 50% LMI rather than 70% • Prevention of Duplication of Benefits requirement • Prevention and identification of Fraud, Waste, and Abuse requirement • Citizen Participation requirements • Pre-agreement costs • State can contract directly with entitlements, nonprofits, for-profits, and other entities

16. Duplication of Benefits CDBG-DR is the “funding source of last resort.” Verification is needed that demonstrates all other sources: • Have been depleted (or unavailable, provided application was made), including insurance payments, FEMA assistance, and Small Business Administration assistance. Funds from any other source that are available for the same purpose being applied for are considered to be duplicated benefits. • Subrogation Agreements are REQUIRED – repayment of funds if another source is received or disclosed at a later date. A separate notice regarding Duplication of Benefits can be found in Federal Register Vol. 76, No. 221/ November 16, 2011.

17. CDBG Requirements DR activities must adhere to all applicable Federal and State CDBG Program guidelines and requirements, unless specifically waived by HUD, including: • Environmental Review (NEPA) • Recordkeeping Requirements (see Exhibit I-A) • Uniform Relocation Assistance • Section 3 See the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217for assistance with complying with CDBG requirements.

18. CDBG Requirements (cont.) • Affirmatively Furthering Fair Housing • Section 504 • Labor Standards – Davis-Bacon prevailing wage requirements and enforcement See the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217for assistance with complying with CDBG requirements.

19. Labor: Davis-Bacon Applies to federally funded construction • Greater than $2000 • Residential construction of greater than eight units Does not apply • For cost share on FEMA PA Category A & B (Debris removal and emergency response) • Projects completed prior to May 16, 2014 without the initial intent of using CDBG-DR

20. Labor: Davis-Bacon (cont.) • Copy of Wage Determination or Exhibit VII-D • Evidence of Wage Lock-In • Copy of Bid Package • Bid Log kept • Minutes of the Bid Opening recorded • Evidence of Bid Bond and Payment Bond • Contractor Eligibility Verification (debarment check in SAM)

21. Labor: Davis-Bacon (cont.) • Construction Contract Award Letter/ Notice to Proceed • Copy of Construction Contract or Construction File • Weekly Payrolls • Additional Job Classification Request (if applicable) • Copy of Job Site Interviews • Section 3 Recruitment Efforts • Notice of Final Payment See Contractor’s Guide to Davis-Bacon in your handouts for more information

22. Procurement • Use your own locally approved standards, as long as they are equally or more restrictive than 24 CFR Part 85.

23. AGENDA • Introductions • Program Overview • Program Requirements • The Process – from Application to Payment • Resources and Contacts • Q & A

24. Process Overview • Application • Award Letter / Environmental Review • Contract Process • Reimbursement Process • Quarterly Reporting

25. Infrastructure Application Example DOLA APPLICANT (UGLG) Program Lead Submits Notice of Intent (NOI) Review and Score Preliminary Approval of Project List Submits Complete Application based on approved projects Issue Conditional Award Letter Complete Environmental Review Process Issue Release of Funds (ROF) Write Statement of Project (SOP) or of Work (SOW); Develop Contract based on approved template Pre-Review Signs Contract DOLA Executes Contract Repeat Award Letter, ROF, Contract process as projects are ready for implementation.

27. Release of Funds Process • Award letter • Identifies level of environmental review required • Grantee completes environmental review process using proper form • CENST and EA forms sent to AGEISS for review • ROF letter issued

28. Environmental Review See Handout See handout: Recipients will either submit documentation to AGEISS OR Request assistance with the environmental review

29. Environmental Review • The AGEISS team will be available for the following: • to provide technical assistance for environmental review questions;  • to complete CEST and EA environmental review requirements for any CDBG-DR grantee; and  • to review all CEST and EA environmental documents for completeness, regardless of who completed the review.   • AGEISS is to be utilized strictly for CDBG-DR funded projects

30. Environmental Review • CDBG Environmental Guidebook:www.dola.state.co.us/environmentalreview • Environmental Consultant – services for CDBG-DR Grantees AGEISS Inc.Energy | Environment | Facilities | Professional Services 1202 Bergen Pkwy, Ste. 310, Evergreen, CO 80439 Main contact: Jennifer Loos at 303-674-5059 x121 AGEISS team email: DOLA-Support@ageiss-inc.com

31. Contract Overview • All contract documents are boiler templates that have been approved by the Office of the State Controller • Generally one contract per project, but exceptions are possible • No required cure period for failure to perform • Reimbursement of Pre-Agreement Costs

32. Contract Exhibits • Exhibit A – Applicable Laws • Exhibit B – Statement of Project • Exhibit C – Supplemental Provisions for Federal Funding Accountability and Transparency Act of 2006 (FFATA) • Exhibit D – Rent and Income Limit Table • Exhibit E –Form Of Option Letter • Exhibit F – Procedure to Prevent Duplication of Benefits

33. Start-up Requirements • Assurances and Certifications (Exhibit I-B) • Excessive Force Resolution (Exhibit I-D) • Residential Anti-Displacement and Relocation Assistance Plan (Exhibit I-F) • Intergovernmental Agreement (IGA) — if necessary (Exhibit I-G) • Memorandum of Understanding (MOU) — if necessary (Exhibit I-H) These exhibits are available in the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

34. Start-up Requirements (cont.) • Delegation of Signatory Auth. (Exhibit II-F) • Environmental Review Correspondence • Environmental Release of Funds Letter from DOLA, followed by Final Award Letter • Executed CDBG-DR Grant Agreement Contract • Evidence of SAM registration of contractor and subcontractors for debarment checks • Federal Funding Accountability and Transparency Act (FFATA) Reporting These exhibits are available in the CDBG Guidebook located at http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

35. Payment Process Example CONTROLLER Applicant Program Lead DOLA FINANCE DR Team Incur cost/ submit invoice Package pay request Program Review/Approve Financial Review/Approve DRGR Voucher Entry and CORE payment entry Reviews/Approves CORE payment and DRGR Voucher Requests Check Cuts check Receives reimbursement

36. Payment Requests Payment Request Forms • Quarterly—can be used for longer term projects • Monthly—should be used for shorter term projects Payment Request Documentation

37. QUARTERLY REQUEST FORM

38. MONTHLY REQUEST FORM

39. Pay Request Documentation Pay Request must have the following: • All supporting documentation for any cost(s) sought ​for reimbursement​ • Documentation of any match required for the grantee’s project, must accompany the ​​form​. • Documentation requirements​ ​include​ any documentation of procurement activities associated with the cost(s) requested for reimbursement.  Failure to submit th​e full amount of supporting​ documentation will definitely delay payment of the amount requested until after the required documentation is received and fully reviewed.

40. Quarterly Performance • HUD requires quarterly performance updates on all CDBG-DR funded activities • Performance will be collected with pay requests for short-term activities • Quarterly reporting will be required for long-term activities • Progress • Beneficiaries • Reporting requirements vary with eligible activity Reporting Requirements will be a required deliverable in the contracts.

41. Project Closeout • Legal Notice and Public Hearing Minutes for Post-Award Public Hearing • Programmatic Monitoring Letter • Copy of Final Financial Status Report • Copy of Final Payment Request • Copy of Section 3 Report (if applicable) • Copy Project Completion Report • Project Close-out Letter

42. Project Closeout (cont.) • Completion and Submission of Audit to DOLA * *OMB Circular A – 133 Compliance Supplement for single audit can be downloaded from: http://harvester.census.gov/sac/sainfo.html • This supplement should be provided to the local government’s auditor prior to completion of audit. • CDBG Catalog of Federal Domestic Assistance (CFDA) # is 14.228 • Acceptance of Audit from DOLA

43. Project Closeout (cont.) See the CDBG Guidebook for complete closeout instructions at: http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217

44. AGENDA • Introductions • Program Overview • Program Requirements • The Process – from Application to Payment • Resources and Contacts • Q & A

45. Web Resources • Colorado CDBG-DR Website: http://dola.colorado.gov/cdbg-dr • DOLA’s CDBG Guidebook: http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251592194217 • CDBG-DR laws, regulations and federal register notices: https://www.onecpd.info/cdbg-dr/cdbg-dr-laws-regulations-and-federal-register-notices/ • CDBG Environmental Guidebook: www.dola.state.co.us/environmentalreview

46. Contacts Don Sandoval, North Central Regional Manager, DOLA don.sandoval@state.co.us office phone: 970-679-4501 Dave Bowman, State Disaster Recovery Manager, DOLA dave.bowman@state.co.us office phone: 303-864-7877 Justin Hamel, Federal Grants Program Manager, DOLA justin.hamel@state.co.us office phone: 303-864-7745

47. Contacts – Program Areas George Bistany, CDBG-DR Economic Development, DLG george.bistany@state.co.us office phone: 303-892-3815 Lara Duran, CDBG-DR Agriculture Pgms, DLG lara.duran@state.co.us office phone: 303-869-9028 Alison O’Kelly, CDBG-DR Housing Programs, DOH alison.okelly@state.co.us office phone: 303-864-7821 Jill Hart, CDBG-DR Infrastructure Pgms, DHSEM jill.hart@state.co.us office phone: 720-852-6621 Andy Hill, CDBG-DR Planning Pgms, DLG andy.hill@state.co.us office phone: 303-864-7725

48. AGENDA • Introductions • Program Overview • Program Requirements • The Process – from Application to Payment • Resources and Contacts • Q & A