South Carolina Community Development Block Grant Program American Recovery and Reinvestment Act

1. South Carolina Community Development Block Grant Program American Recovery and Reinvestment Act CDBG-R Recovery Funds Implementation Guidelines

2. Agenda • ARRA Purposes and Requirements • CDBG-R Recovery Funding Purposes and Goals • CDBG-R Implementation Requirements • EligibleActivities • Timelines • Procurement and Contract Requirements • Other Requirements • Financial Management and Recordkeeping • Reporting

3. American Recovery and Reinvestment Act • Signed into law February 17, 2009 • SC CDBG R is $5.9 million • Investments should focus on • Creating and sustaining jobs • Providing immediate economic stimulus • Achieving long term benefit

4. American Recovery and Reinvestment Act • ARRA Requirements: • Buy American provisions • Requires use of American made iron, steel, and manufactured goods • Davis Bacon compliance • NEPA/Environmental compliance • Transparency and Accountability

5. American Recovery and Reinvestment Act • President’s Responsible Spending Memo • OMB Reporting and Accountability • Establishes required data elements • Establishes quarterly detail of expenditures • Assesses impact of expenditures • Recovery.gov • Posting of information on how funds are being spent and the programmatic results

6. CDBG-R Program Amendment • Funds are separate from regular CDBG program funds and must be tracked separately • Amendment to State’s 2008 Annual Action Plan • Reduced regular program CP requirements to 7 day public comment • Required identification of the actual projects to be funded with CDBG-R

7. CDBG-R Amendment • Purpose: • Assist those impacted by recession • Invest in long term benefits of environmental protection or infrastructure • Promote smart growth, green building technologies, or foster energy independence • Create or retain full and part time jobs

8. CDBG-R Amendment • ULG certified that projects would: • Be “Ready to Go” • Award contracts within 120 days • Be implemented and completed expeditiously • Maximize job creation/retention • Provide economic benefit and recovery

9. CDBG-R National Objective • Project must meet a national objective • LMI Area based on census or surveys • Document beneficiaries at completion • 70% of CDBG-R funds must benefit LMI

10. CDBG-R Requirements • Unless otherwise specified - all other CDBG regular program requirements are applicable to the CDBG-R recovery funds • Expenditure deadline of September 30, 2012 • State must use or lose

11. CDBG-R Recovery Program Any questions?

12. CDBG- R Recovery Program Implementation Requirements

13. CDBG-R Applicable Regulations ARRA – Recovery Act of 2009 74 Fed Register 21816 OMB Guidance 74 Fed Register 18449 Title I of HCDA of 1974 HUD Regulations 24 CFR Part 570 Subpart I SC CDBG Program Requirements

14. Eligible Activities • Only construction or equipment costs as approved in the application or as otherwise officially amended • Cost overruns will be responsibility of the Grantee • If CDBG-R funds are available, additional funds may be obligated to cover additional costs • Advise GA immediately of any cost under runs so that funds may be quickly obligated • Cost savings plan required

15. Eligible Activities • Administrative costs limited to 8% of total CDBG-R project activity costs • Be careful if project costs come in under budget • Adjustment may be required within 30 days of construction contract approval • No more than 25% drawn before construction start • Engineering paid by local or other funds

16. Project Timeline Requirements • Environmental complete or imminent • Acquisition complete or not required • Other project financing committed • Engineer under contract • Project designed and bid specs prepared • Permits approved or imminent

17. Project Timeline Requirements • Bid advertisement period reduced to 15 days as long as adequate competition received • Construction contracts awarded by November 30, 2009 • Projects must be completed expeditiously • All funds must be expended by September 30, 2012

18. Procurement and Contracting • Separate contracts whenever possible • Separate division bid • Separate invoices • CDBG-R provisions applicable to entire contract if any activity funded in whole or in part with ARRA • Contractors must be able to meet time and performance standards • Project sign is optional • Must use ARRA logo (GA can provide)

19. Procurement and Contracting • First tier contractors need DUNS number or HQ address • Post Whistleblower Notice • Protections regarding possible fraud, waste and or abuse of ARRA funds • Citation- ARRA Section 1553

20. Buy American Provisions • Section 1605 of Title XVI of ARRA • OMB Interim Final Guidance • Establishes government-wide rule • 74 Federal Register 18449 - April 23, 2009 • 2 CFR Part 176 • Applies to CDBG-R funded activities

21. Buy American Provisions • No funds may be used for the construction, alteration, or repair of a public building or public work unless all the iron, steel, and manufactured goods used in the project are produced in the US • Public building or public work must be owned by governmental entities

22. Buy American Provisions • Exceptions considered if: • It would be inconsistent with the public interest • Goods not produced in sufficient and reasonably available quantities and quality • Will increase costs of project by more than 25% • Only HUD can approve exceptions • Nation wide exceptions • CDBG-R grant or contract is less than $100,000

23. Buy American Provisions • Manufactured good: A good brought to the construction site for incorporation into the building or work that has been processed into a specific form or shape or combined with other raw material to created a material with different properties than the properties of the individual raw material.

24. Buy American • Include a provision requiring compliance in • Grant agreements and sub recipient agreements, • Bidder certification • Contract Agreement CDBG R Special Conditions • Certification on Direct Equipment purchases

25. Buy American Documentation • Contractor must maintain information necessary to support the certification • Bidder’s Certification – contractor will provide Grantee with reasonable, timely and sufficient verification regarding each component applicable to CDBG R funds

26. Buy American Documentation • What documentation is needed to determine compliance? • Product labels and descriptions • Certification from the manufacturer • Consultation with suppliers • Maintain supporting records and document all verification efforts for monitoring • Refer to OMB Guidance • Costs may be disallowed for non-compliance

27. Change Orders • Change orders of 10% or $10,000 whichever is greater must be approved in advance by GA

28. CDBG-R Recovery Program Any questions?

29. CDBG-R Other Requirements • Other CDBG requirements apply: • Davis Bacon • Section 3 • FHEO, 504 • Section 102 Disclosures • Record keeping

30. Financial Management • CDBG-R funds must be tracked separately from other programs or other funding for the same project • Drawdown funds in a timely manner commensurate with progress • All funds must be expended by September 30, 2012 • Grantee is responsible for contractual obligations if funds are recaptured • Audit requirements are applicable

31. CDBG-R Reporting • Detailed quarterly reporting of activities/results • Use of funds/purpose • Status of activities • Expenditure amounts • FTEs charged to ARRA funds • Types of jobs • Project information and status to be posted on national and state web sites

32. Quarterly Reports • Progress • Contract and Vendor Activity • Jobs Deadlines: • October 1, January 1, April 1, and July 1 Failure to meet deadlines or provide accurate information is violation of grant agreement and will involve sanctions

33. Progress Reporting • Quarterly Status Report – Q1 R • Give detailed description of progress and accomplishments to date • Attach • Jobs report • Contractor and Vendor report • Section 3 • Implementation Schedule (P- 1), if applicable

34. Contract and Vendor Activity • Vendor and Contract Activity Report EO-1 R • Contracts executed during the quarter • Vendor purchases during the quarter • Other procurements during the quarter • Information required: • Date executed • CDBG R amount of the contract or procurement • Contractor/Subcontractor ID (DUNS) • Name, HQ address and Zip code + 4 • “No activity this quarter” check box

35. Jobs Reporting • Jobs – CDBG R Jobs Report • Will not involve “estimates” of the number of jobs created or retained on a project • FTE calculation based on hours charged to CDBG R using a standard work week as the basis • Must include all work paid for with CDBG R • Construction – contractors and subcontractors • Vendors – estimated manufacturing/delivery hours only if CDBG R is paying for equipment only • Administration

36. Jobs Reporting • Information needed: • Contractor/Vendor Name • Job classification type • Full time Basis • Number of hours in a full time work week for each classification type (assuming same number for all workers in the classification) • Total hours worked this quarter paid for with CDBG R funds • Total FTEs – this is a calculated field

37. Jobs Reporting • You may use the form for each contractor to report on hours charged to CDBG R • Contractors/vendors must submit information to the grantee in sufficient time for compilation and submission to GA • Compare to weekly payrolls to verify the hours reported and classifications are accurate • Grantee will summarize all activity from all contractors/vendors on one form and submit to GA no later than the first day of the quarter

38. CDBG-R Recovery Program Any questions?

39. CDBG R Guidance • CDBG R Grant Agreement • Supplemental Special Conditions • Project Special Conditions • Grant Agreement Terms and Conditions • CDBG R Certifications • CDBG R Performance and Accomplishments Report

40. CDBG R Guidance • Guidance on Bidding/Award of Construction Contracts • Bidders Buy American Certification • Grantee Buy American Certification • Accountability Notice/Whistleblower Poster

41. CDBG R Guidance • Policy Memos • Contract Special Provisions • Buy American • Quarterly Reporting • Forms - Progress, Contracts, Jobs • Instructions • Sample • Section 3 Compliance • HUD Handout

42. CDBG-R Recovery Program Any questions?