CDBG/HOME/ADDI PROGRAM
POLICY AND PROCEDURES MANUAL
SUBJECT: CDBG PUBLIC SERVICES
PURPOSE
The primary objective of Title I of the Housing and Community Development Act of 1974, as amended, is the development of viable urban communities. This is achieved by providing decent housing, a suitable living environment, and expanding economic opportunities. This activity meets the national objective of benefiting low and moderate-income persons.
This meets the 2010-2014 Consolidated Plan priority of setting aside up to 15% of the CDBG allocation of entitlement funds each year for public services benefiting persons who are low-and-moderate income.
NATIONAL OBJECTIVES Reference: 24 CFR 570.208(a)(2)(ii)
Each activity funded by CDBG must meet one of three national objectives:
· Benefit low and moderate-income persons (LMI),
· Aid in the prevention or elimination of slums or blight; or
· Meet a particularly urgent community development need (such as following a flood or tornado).
The activities for this program qualify as benefitting low-and-moderate income persons. They may do so as either an Area Benefit activity or as a Limited Clientele Activity.
Area Benefit Activities (LMA)
Area Benefit Activities are those that benefit all residents of a particular area, where at least 51 percent of the residents are LMI persons. HUD uses a special run of the Census tract block group data to identify these areas. HUD permits an exception to the LMI benefit area for certain entitlement communities. Dane County is allowed to qualify activities based on the “exception criteria” or “upper quartile”. Currently, activities that benefit areas where at least 42.8% of the residents are LMI qualify as an area benefit.
Limited Clientele Activities (LMC)
Under this category 51% of the beneficiaries of the activity have to be LMI persons. Activities must meet one of the following tests:
· Benefit a clientele that is generally presumed to be LMI. This presumption covers abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers; or
· Require documentation on family size or income in order to show that at least 51% of the clientele are LMI; or
· Have income eligibility requirements limiting the activity to LMI persons only; or
· Be of such a nature and in such a location that it can be concluded that clients are primarily LMI.
NATIONAL OBJECTIVE DOCUMENTATION – Reference 24 CFR 570.506
For activities that qualify as an area benefit, the following information must be maintained:
· Boundaries of the service area;
· Income characteristics of families and unrelated individuals in the service area; and
· Data showing that the area qualifies under the exception rule if the percent of LMI persons in the service area is less than 51 percent.
For activities that qualify as a limited clientele activity, the following records must be maintained:
· Documentation showing that the activity is designed for and used by a segment of the population presumed by HUD to be low-and-moderate income persons – abused children, battered spouses, elderly persons, adults meeting the U.S. Census Bureau Current Population Reports’ definition of “severely disabled,” homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers; or
· Documentation describing how the nature, and if applicable, the location of the activity establishes that it is used predominately by LMI persons; or
· Data showing the size and annual income of the family of each person receiving the benefit and that at least 51% of those served are low-and-moderate income.
Income eligibility is not needed for activities that qualify as an area benefit or a presumed limited clientele.
Activities that qualify on the basis of the family size and income must determine the income eligibility of persons to be served.
Annual income is the gross amount of income anticipated by all adults in a family during the 12 months following the effective date of the determination. Dane County uses the definition of annual income under the Section 8 Housing Assistance Payments Program (24 CFR 5.609).
To determine if program applicants are income eligible, the program must:
· Obtain a verifiable certification from the assisted person that his/her family income does not exceed the applicable income limit; or
· Obtain evidence the assisted person is homeless; or
· Obtain evidence the household/person assisted qualified under another program having income qualification criteria at least as restrictive as that used in the definitions of a LMI household/person, such as welfare programs; or
· Obtain a referral from a state, county, or local employment agency or other entity that agrees to refer individuals it determines to be LMI persons based on HUD’s criteria and agrees to maintain the documentation supporting these determinations.
DEFINITIONS
Low and moderate income person means a member of a family having an income equal to or less that the Section 8 low-income limit established by HUD. This is typically at or below 80% of the County median income.
The census definition of “severely disabled” is: Persons are classified as having a severe disability if they (a) used a wheel-chair or had used another special aid for six months or longer; b) are unable to perform one or more “functional activities” or need assistance with an ADL or IADL:; c) are prevented from working at a job or doing housework; or d) have a selected condition including autism, cerebral palsy, Alzheimer’s disease, senility, or dementia, or mental retardation. Also persons who are under 65 years of age and who are covered by Medicare or who receive SSI are considered to have a severe disability.
Functional activities includes: seeing, hearing, having one’s speech understood, lifting and carrying, walking up a flight of stairs, and walking. An ADL is an activity of daily living which includes getting around inside the home, getting in or out of bed or a chair, bathing, dressing, eating, and toileting. An IADL is an instrument of daily living and includes going outside the home, keeping track of money or bills, preparing meals, doing light housework, and using the telephone.
ELIGIBLE APPLICANTS
Non-profit agencies with 501 (c) (3) designation, units of local government and related agencies, e.g. school districts, libraries, park districts.
ELIGIBLE ACTIVITIES - Reference: 24 CFR 570. 201 (e)
The CDBG regulations authorize up to a total of 15% of the County’s total CDBG grant funds (plus 15% of prior year program income) to be used for public service projects for a wide variety of activities including, but not limited to the following:
· Employment services (e.g. job training)
· Crime prevention and public safety
· Child care
· Health services
· Substance abuse services (e.g. counseling and treatment)
· Fair housing counseling
· Education programs
· Energy conservation
· Services for senior citizens
· Services for homeless persons
· Welfare services
· Down payment assistance
· Recreational services
In order to qualify for funding, a public service be either a new service or a quantifiable increase in the level of an existing public service above that which has been provided by or on behalf of the unit of general local government (through funds raised by the local government or received by the local government from the State) in the 12 calendar months preceding the year in which funds are to be awarded. An exception may be made if HUD determines that any decrease in the level of service was the result of events not within the control of the local government.
This provision was put in place to ensure that localities did not use CDBG funds to replace local or state monies to fund essential services typically offered by the local government.
Specifically:
· If a service is new, it may be funded:
· If a service is existing and it was not provided by or on behalf of a unit of local government with funding from the local government, it may be funded;
· If it was provided by or on behalf of the local government with funding from the local government, it can be funded if it is a documented quantifiable increase in the level of service.
· The regulations do not prohibit a grantee from continuing to provide funding to a CDBG-funded public service at the same or decreased level in subsequent years, however.
INELIGIBLE ACTIVITIES - Reference: 24 CFR 570.207 (4)
The general rule is that CDBG funds may not be used for income payments. For purposes of the CDBG program, income payments means a series of subsistence-type grant payments made to an individual or family for items such as food, clothing, housing (rent or mortgage), or utilities. However, emergency grant payments made over a period of up to three consecutive months to the provider of such items or services on behalf of an individual or family are eligible.
ELIGIBLE COSTS
CDBG funds may be used to pay for:
· activity hard costs, such as supplies and materials for the activity;
· staff and overhead costs DIRECTLY related to carrying out the activity, such as providing direct services to consumers. This may include staff time spent supervising staff who are carrying out the activities specified in 24 CFR 570.201-204 when that time is spent addressing a direct consumer, service, or property issue. It does not include supervisory time spent on such functions as employee evaluations;
· Operating and maintenance expenses, such as the lease of a facility, office space, equipment, and other property for program staff employed in carrying out the CDBG funded activity.
REQUIREMENTS
General
· The project must benefit persons in the participating municipalities of the Dane County Urban County Consortium.
· Subrecipients that are directly funded under the CDBG program may not engage in inherently religious activities, such as worship, religious instruction or proselytization, as part of the program. If a Subrecipient conducts such activities, the activities must be offered separately, in time or location, from the CDBG-funded program, and participation must be voluntary for the beneficiaries of the CDBG-funded program.
· The project may not begin until the environmental review requirements at Part 58 are met and the County has given notice to proceed.
Procurement
1. Subrecipients of County CDBG funding will comply with the procurement standards under 24 CFR 85.36 for governmental subrecipients and 24 CFR 84.40-48 for subrecipients that are non-profit organizations, including the requirements for bonding in procurement.
2. The Subrecipient is the responsible authority, without recourse to HUD or the County regarding the settlement of all contractual and administrative issues arising out of the procurement entered in support of the award or other agreement.
3. The Subrecipient must conduct all procurement in a manner to provide to the maximum extent practicable, open and free competition.
4. Subrecipients must maintain records to detail the significant history of procurement. These records include, but are not limited to: files on the rationale for selecting the method of procurement used, selection of the contract type, the contractor selection/rejection process, and the basis for the cost or price of a contract.
5. Pre-qualified lists of vendors/contractors, if used, must be current, developed through open solicitation, include adequate numbers of qualified sources, and must allow entry of other firms to qualify at any time.
6. Steps should be taken to assure that women and minority businesses are utilized when possible as the sources of supplies, equipment, and services.
7. Subrecipients must ensure that awards are not made to any party that is debarred or suspended or is otherwise excluded for or ineligible for participation in the Federal assistance programs under Executive Order 12549.
8. There must be written selection procedures for procurement transactions.
9. Subrecipients must not use costs plus a percentage of cost pricing for contracts.
10. Subrecipients must have protest procedures in place to handle and resolve disputes relating to their procurement and in all instances report such disputes to the County.
11. There must be a documented system of contract administration for determining the consistency of contractor performance.
12. Subrecipients must have a written code of conduct governing employees, officers, or agents engaged in the award or administration of contracts.
/cdbg – policies – public services.doc
Adopted by the CDBG Commission: 3.26.2009
Revised by CDBG Commission 3.22.2012.
3.13.2012
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