HomeMy WebLinkAboutAccptnc of CDBG-R Funds ($92,992) CITY OF PALM DESERT
SPECIAL PROGRAMS DEPARTMENT
STAFF REPORT
REQUEST: Ratification of City Manager Approval to Accept Community
Development Block Grant Recovery (CDBG-R) Funds in the
Amount of$92,992.
SUBMITTED BY: Frankie Riddle, Director of Special Programs
DATE: September 24, 2009
CONTENTS: U.S. Department of Housing and Urban Development
Funding Approval/Agreement
Recommendation:
By Minute Motion, ratify City Manager approval to accept Community Development
Block Grant Recovery (CDBG-R) funds in the Amount of$92,992.
Discussion:
The City was originally notified by the U.S. Department of Housing and Urban
Development (HIfD) in March 2009 that there were Community Development Block
Grant Recovery (CDBG-R) funds available to the City in the amount of $92,992;
however, staff was under the assumption that the funds would be tied into the CDBG
funds received for FY 2009/10. Unfortunately, the legislature decided to separate the
CDBG-R funds from CDBG funds and separate the programs (CDBG vs. CDBG-R). As
a result, staff was unable to advertise these funds separately and accept applications
specific to this program. In addition, by the time staff became aware of this separation,
there was insufficient time to submit to City Council prior to the deadline to submit to
HUD for review and approval. Therefore, in order to apply for the funds, staff had to
assign funds to those activities/organizations that were awarded funding and approved
by City Council under the CDBG FY 2009/2010 Cycle.
Under the CDBG-R Program, there is double the reporting required that is separate
from the CDBG Program reporting. Staff originally planned to divide the funds up
equally between the various organizations; however, per HUD's advice, staff reduced
the number of organizations funded to four (4), which HUD was in favor of. The
decision of which organizations to fund was primarily based on the following criteria: 1)
whether the organization was funded in full or not, and 2) community need.
CITY COUNCIL STAFF REPORT
SEPTEMBER 24, 2009
PAGE 2 ,
The proposed funding breakdown is 75 percent for capital improvement projects, 15
percent for public service activities, and 10 percent for administration. (The CDBG-R
funding formula is the same as CDBG.) Outlined below are the organizations and
award amounts for the CDBG-R funds:
FY 2009/2010 CDBG-R AWARDS
Name: T e of Pro ram: Amount of Award: Pro ram Descri tion:
Ranch Recovery Center Capital Improvement $69,745.00 Interior/exterior
(i.e., septic system,
replacement of water well,
bathroom(s), and floor
�oists, etc.
Desert Aids Project Public Service $4,650.00 Nutrition Program with
Farmers Market concept/
food distribution
FISH Public Service $4,650.00 Food distribution
Martha's Village & Kitchen Public Service $4,648.00 Homeless, food, shelter,
counselin
Administration $9,299.00 Pro ram administration
TOTAL: $92,992.00
Given the process that was followed, staff was unsure if the City would receive funding;
however, the City received notice from HUD dated August 30, 2009, that it had been
awarded funding and requested that the Funding Approval/Agreement be signed and
returned within 30 days of the date of notice. As a result, staff is requesting City Council
ratification of City Manager approval.
Staff recommends that City Council ratify City Manager approval to accept CDBG-R
funding and submit Approval/Agreement.
Submitted By: Approval:
,
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Frankie Riddle o n ohlmuth
Director of Special Programs C' y Manager
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=_�-_._ AUG 2 0 2009
John Wohlmuth, City Manager
City of Palm Desert
73-510 Fred Warning Drive
Palm Desert, CA 92260
Dear Mr. Wohlmuth:
SUBJECT: 2008 Action Plan Substantial Amendment Approved
Project Number: B-09-MY-06-0594
The Department is pleased to announce the approval of the City of Palm Desert's Substantial
Amendment to its Fiscal Year 2008 Action Plan for Community Development Block Grant Recovery
(CDBG-R) Program funding. These funds were authorized by the American Recovery and
Reinvestment Act of 2009 (Recovery Act). The City of Palm Desert has been authorized to receive
$92,992 in CDBG-R Program funding.
Enclosed are three copies of the Grant Agreement (including the Funding Approval (Form
HUD-7082) and Special Conditions) between the U. S. Department of Housing and Urban
Development (HUD) and the City of Palm Desert for the CDBG-R Program. In order to establish a
Line of Credit for your CDBG-R grant, it will be necessary to execute and return two copies of the
Grant Agreement, retaining one copy for your files. Failure to execute and return the grant agreements
within 30 days of the transmittal date may be deemed to constitute rejection of the grant and cause for
HUD to determine that the funds are available for reallocation to other grantees.
Financial Mana ement
All CDBG-R funds must be spent no later than September 30, 2012. Please be advised that
HUD establishes a cut-off date for submission of draw requests several days before the end of a fiscal
year because of systems and disbursing related issues. You will be notified of the expenditure cut-off
date for the CDBG-R grant funds in 2012.
Grantees are reminded that the Recovery Act was enacted to provide an immediate stimulus to
the economy. The current practice by many grantees - to meet immediate cash needs by paying
outstanding obligations for CDBG activities with local funds, and then to obtain reimbursement from
their Line of Credit on a semi-annual or yearly basis - works against governments' fiscal constraints as
well as the transparency provisions of the Recovery Act. HUD strongly encourages grantees to
examine their current drawdown practices for HUD formula grant funding, and to make adjustments as
necessary to ensure that CDBG-R funds are drawn down on a regular basis. HUD expects that
grantees will draw down CDBG-R funds on at least a quarterly basis, assuming the existence of actual
cash needs for CDBG-R activities, and consistent with federal financial management regulations.
2
Please be advised that if there is a need to establish or change the depository account to which
these grant funds are to be wired, a Direct Deposit Sign-Up Form (SF-1199A) must be completed by
you and your financial institution and mailed to this office.
Policv Reminders
Certain activities are subject to the provisions of 24 CFR Part 58, Environmental Review
Procedures for Entities Assuming HUD Environmental Responsibilities. Funds for such activities may
not be obligated or expended unless the release of funds has been approved in writing by HUD. A
request for the release of funds must be accompanied by an environmental certification.
Section 1605 of the Recovery Act requires grantees to comply with provisions of the Buy
American Act for all CDBG-R assisted public buildings and public works. HUD is in the process of
developing further implementation guidance for grantees regarding compliance with this provision and
the process for requesting a waiver of these provisions.
Section 1604 of the Recovery Act contained language that significantly expanded the
applicability of Davis-Bacon Act labor standards provisions to CDBG-R funded construction work.
Please be advised that Section 1205 of the Supplemental Appropriations Act signed by President
Obama on June 24, 2009, repealed the applicability of Section 1604 of the Recovery Act to CDBG-R
activities. All CDBG-R funded construction activities are now subject to the same labor standard
provisions that apply to regular (annual formula) CDBG funding, pursuant to Section 110 of the
Housing and Community Development Act of 1974, as amended.
Reporting Requirements
The Recovery Act requires timely and accurate reporting of the CDBG-R grant. According to
Section 1512, grantees must provide the following information no later than 10 days after the end of
each calendar quarter:
(1) The total amount of recovery funds received;
(2) The amount of recovery funds received that were expended or obligated to project
activities; and,
(3) A detailed list of all projects or activities for which recovery funds were expended or
obligated, including the name of the project or activity; a description of the project or
activity; an evaluation of the completion status of the project or activity; an estimate of the
number of jobs created and number of jobs retained by the project or activity; and for
infrastructure investments made, the purpose, total cost and rationale of the agency for
funding infrastructure investment with funds made available under the Recovery Act and
name of person to contact at the jurisdiction, if there are concerns with the infrastructure
investment.
3
At this time, HUD intends that grantees will enter this data into the Integrated Disbursement
and Information System (IDIS), so that HUD can automatically generate the quarterly reports.
However, the Office of Management and Budget has not finalized the government-wide reporting
requirements for Recovery Act funds. HUD will provide guidance on specific reporting requirements
at a later date.
The necessary changes to IDIS to accommodate CDBG-R reporting requirements have not
been fully implemented yet. In the meantime, please make sure you are collecting all necessary data,
both from grantee sources and from all subrecipients and contractors, as it may be necessary for you to
backfill this data into IDIS at a later date, once system changes have been made.
Please be advised that if there is a need to delete or add individuals authorized to access the
IDIS, an IDIS Security Access Authorization Form (February 1999) must be prepared, notarized, and
returned to this office with the Grant Agreement.
The Recovery Act also requires that State and local governments receiving Recovery Act funds
report on the status of the environmental compliance reviews. HUD grantees are required to go to:
http://aortal.hud. ov/a p ram�5/and complete the information for all Recovery Act funded activities.
Information should be entered when an activity's environmental compliance review is started and
when it is completed. This reporting requirement will continue throughout the implementation period
of the activity.
Please return two copies of the executed grant agreement to this office as expeditiously as
possible, but no later than 30 days of the date of this letter. If you have any questions or require any
assistance, please contact Cheryl Hamilton, Community Planning and Development Representative, at
(213) 534-2576. We look forward to working with you and your staff throughout the coming year.
Sincerely,
G�Cj ' '
s�
William G. Vasquez
Director of Community Planning
and Development
Enclosures