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 Eligible Activities 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 o 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 Presidents 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 States 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 Bidders 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 o Jobs report o Contractor and Vendor report o Section 3 o Implementation Schedule (P- 1), if applicable

34. Contract and Vendor Acti vity 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 o 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 o Buy American Quarterly Reporting o Forms - Progress, Contracts, Jobs o Instructions o Sample Section 3 Compliance o HUD Handout

42. CDBG-R Recovery Program Any questions?