HomeMy WebLinkAboutIowa Department of Economic Development-Housing Enterprise Zone Program Agreement-12.19.2008 O WA
changing
December 15, 2008
The Honorable Timothy Hurley,Mayor
City of Waterloo
City Hall -715 Mulberry St.
Waterloo, IA 50703
SUBJECT: Contract Number 08-DRH-011 —Amendment Number Two (2)
Dear Mayor Hurley:
The Iowa Department of Economic Development(IDED)hereby amends the above referenced Community
Development Block Grant(CDBG)Program contract by substituting a revised Attachment E.
This amendment is initiated by the Iowa Department of Economic Development.
The contract by and between the Iowa Department of Economic Development("Department or IDED")
and City of Waterloo ("Recipient")is amended as of the date of this letter as follows:
AMEND each Article in the Contract that refers to"Attachment E,Requirements for Housing Activities—
CDBG(Disaster Recovery) Supplemental Funds"to "Attachment E,Requirements for Housing Activities
—CDBG(Disaster Recovery) Supplemental Funds,revised as of December 8, 2008."
Except as otherwise revised above,the terms,provisions, and conditions of the Contract remain unchanged
and are in full force and effect.
PLEASE FILE THIS AMENDMENT MATERIAL WITH YOUR ORIGINAL CONTRACT
DOCUMENT so that you will have current information on the status of your contract. If your amendment
includes a budget change,be sure that is reflected on your next"Request for Payment/Activity Status
Form". Please contact me at(515)242-4753 if you have any questions.
Sincerely,
�u-n�r✓
Julie Lunn vvv
Project Manager
RECEIVED DEC 19 2008
Attachment
cc: Rudy D. Jones, City of WaterlieU/' 724r7l
Fiscal
File (JL)
Chester J.Culver,Governor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT Patty Judge,Lieutenant Governor
Mike Tramontina,Director ' 200 East Grand Avenue,Des Moines,Iowa USA 50309 Phone:515.242.4700 Fax:515.242.4809 • www.iowalifechanging.com \®>
Revised December 8, 2008
Attachment E
Requirements for Single-Family Housing Activities -
CDBG (Disaster Recovery) Supplemental Funds —
Jump Start Federal
• These requirements pertain to the $35 million slated for single-family
housing activities that will be accomplished under the 1st CDBG
Supplemental.
• Single-family housing activities will be limited to the activities described in
the IDED's Disaster Recovery Action Plan: 1) Housing Repair/
Rehabilitation; 2) Homebuyer Assistance; and 3) Interim Mortgage
Assistance.
• Housing Repair/ Rehabilitation and Homebuyer Assistance activities are
broken down into sub-activities. There are sub-activities serving only low
and moderate income (I_MI) persons or households (at or below 80% of
MFI), and sub-activities serving those above 80% up to 100% of MFI.
• The Housing Repair/ Rehabilitation activity also provides for an emergency
rehabilitation sub-activity (known as Jump Start Express) that provides for
repair and rehabilitation costs at an amount not-to-exceed $24,999 in
federal funds, and that does not require that property standards
compliance be achieved on the property with these repairs / rehabilitation.
• All activities undertaken must meet a CDBG National Objective.
• For purposes of the CDBG Supplemental funds, all technical services
related costs (also known as soft costs; carrying costs; direct
administration costs) will be considered as "project delivery costs". Project
delivery costs, although administrative in nature, must be considered as
project costs attributable to the housing activity undertaken and accounted
for in this manner. Overall, project delivery costs need to be reasonable.
• The lead COG will be considered as a sub-recipient of the lead county (Le.,
an extension of that local government).
• This 1st CDBG Supplemental Funds allocation dedicated to single-family
housing will be limited t:o serving only persons or households whose
incomes are at or below the median income limits as established by HUD
(100% of HUD MFI, by County and by household size).
• Use the HUD definition of "single-family" dwelling unit.
• Applicants at the local level, in order to be eligible for assistance, must
have applied for and received FEMA housing assistance.
• No duplication of benefits will be allowed. Prior to assisting homeowners
or homebuyers with CDBG Supplemental Funds, the IDED / recipient will
need to determine and verify any monies received from any other federal or
state financial resources providing disaster recovery funding and any
insurance settlement payments provided to your homeowner or
homebuyer, and adjust the CDBG Supplemental Funds amount and project
scope accordingly.
• Any Federal Flood Insurance settlement received by a homeowner or
homebuyer seeking assistance must be deducted from any CDBG
Supplemental Funds assistance provided as well. Again, no duplication of
benefits will be allowed.
• No rehabilitation benefits to structures located within the 100-year
floodplain or a designated buy-out area will be allowed, unless the activity
meets all HUD environmental requirements, all applicable flood mitigation
design standards, and the property is insured by Federal Flood Insurance.
• No new construction for homebuyer assistance will be allowed to be
constructed within the 100-year floodplain or a designated buy-out area,
unless the activity meets all HUD environmental requirements, all
applicable flood mitigation design standards, and the property is insured
by Federal Flood Insurance.
• Activity specific requirements:
Housing Repair/ Rehabilitation
• The maximum per unit assistance level (CDBG Supplemental funds) for
Housing Repair/ Rehabilitation is $60,000. The administrative entity will be
allowed actual project delivery costs not to exceed $10,000 per unit.
• Recipients are allowed to conduct an "Emergency Repair/ Rehabilitation"
activity known as Jump Start Express. The maximum per unit assistance
level (CDBG Supplemental funds) for Jump Start Express is $37,500,
inclusive of all costs. The hard costs of federally funded rehabilitation
cannot exceed $24,999. Under Jump Start Express, assisted properties are
not required to be brought into conformance with the applicable property
standards, pre-disaster condition only.
• It will be the homeowner's choice for the selection of either the Housing
Repair I Rehabilitation activity or Jump Start Express.
• Beneficiaries of this activity must be the owner of record of the property to
be assisted (ownership type is limited to fee simple title or 99-year
leasehold ownership). Absolutely no land sales contracts.
• Housing repair/ rehabilitation assistance will be allowed only on the
beneficiary's primary residence.
• Assistance to homeowners will be limited to forgivable loans. Forgivable
loans under this activity must be a 10-year receding forgivable loan.
Forgivable loans must be secured as a mortgage lien on the assisted
property. Payback will be required if the assisted property owner sells,
vacates, rents or abandons the property any time within the 10 year period.
• Only the actual CDBG Supplemental Funds-funded rehabilitation costs
incurred and/or the lead hazard abatement costs incurred need to be
secured with the forgivable loan. Project delivery costs incurred need not
be included in, or secured by, the mortgage lien. Lead hazard reduction
costs incurred (structures rehabilitated with CDBG Supplemental funds at
or less than $24,999) need not be included in, or secured by, the mortgage
lien.
• All units to be repaired or rehabilitated must be both financially and
structurally feasible to rehabilitate. Recipients should establish parameters
for making this determination.
• Except for Jump Start Express, all units to be repaired or rehabilitated must
meet all applicable property standards upon completion.
The CDBG Entitlement Cities and communities with populations at or
greater than 15,000, both need to comply with your own locally adopted
and enforced codes, standards and ordinances.
For the remainder of the State, in the absence of any locally adopted and
enforced codes or standards, the requirements of Iowa's Minimum Housing
Rehabilitation Standards apply.
• It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner
that results in green-built, sustainable single-family structures. For those
communities conducting single-family rehabilitation activities that are
subject to Iowa's Minimum Housing Rehabilitation Standards, the
applicable "green" requirements are contained therein.
For all communities not subject to Iowa's Minimum Housing Rehabilitation
Standards, the IDED asks that you incorporate the "green" design
requirements of Iowa's Minimum Housing Rehabilitation Standards into
your individual project specifications / work write-ups, all assisted units.
• The CDBG Supplemental funds are subject to the requirements of the
Federal Lead Safe Housing regulations, impacting all single-family dwelling
units that were constructed prior to January 1, 1978. The approach needing
to be taken with regard to lead safe housing is dictated based on the
amount of CDBG Supplemental funds used for rehabilitation costs.
Homebuver Assistance
• Homebuyer Assistance is limited to persons or households whose primary
residence was destroyed or substantially damaged and determined to be
infeasible to rehabilitate.
• Types of Homebuyer Assistance activities that may be undertaken with the
CDBG Supplemental Funds are:
1) Rehabilitation in Support of Homeownership (existing
structures), not-to-exceed $24,999 in federal funds ;
The CDBG Entitlement Cities and communities with populations at or
greater than 15,000 both need to comply with your own locally adopted and
enforced codes, standards and ordinances.
For the remainder of the State, in the absence of any locally adopted and
enforced codes or standards, the requirements of Iowa's Minimum Housing
Rehabilitation Standards apply.
• It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner
that results in green-built, sustainable single-family structures. For those
communities conducting single-family rehabilitation activities in support of
homeownership that are subject to Iowa's Minimum Housing Rehabilitation
Standards, the applicable "green" requirements are contained therein.
For all communities not subject to Iowa's Minimum Housing Rehabilitation
Standards, the IDED asks that you incorporate the "green" design
requirements of Iowa's Minimum Housing Rehabilitation Standards into
your individual project specifications / work write-ups, all assisted units.
• All replacement housing purchased with CDBG Supplemental funds needs
to be located outside of the 100-year flood plain
• The CDBG Supplemental funds are subject to the requirements of the
Federal Lead Safe Housing regulations, impacting all single-family dwelling
units to be purchased that were constructed prior to January 1, 1978.
Interim Mortgage Assistance
• Interim Mortgage Assistance is available only to applicants whose
destroyed or substantially damaged dwelling unit is located in a proposed
buy-out area. Applicants for Interim Mortgage Assistance are also eligible
for Homebuyer Assistance, but not Housing Repair/ Rehabilitation.
• Interim mortgage assistance may be used to maintain mortgages (payment
of principal, interest, property taxes and hazard insurance).
• The maximum interim mortgage assistance allowable per assisted person
or household will be $1,000 per month for a period not to exceed 3 months,
starting on the date the Interim Mortgage Assistance is awarded.
• Interim mortgage assistance may be provided as a grant.
2) Acquisition Assistance (either existing or newly constructed
structures), including: downpayment assistance; buyer's side
closing costs; mortgage buy-down (principal reduction);
combinations of the above; and
3) Combinations of both rehabilitation and acquisition
assistance„
• 100% of the downpayment required with a purchase may be paid for with
CDBG Supplemental Funds, however, the downpayment requirement
cannot exceed 25% of the purchase price or the appraised Fair Market
Value (FMV), whichever is less.
• Purchased properties under this activity must result in ownership in the
form of fee simple title or 99-year leasehold. Absolutely no land sales
contracts.
• Homebuyer Assistance must be provided as a 10-year receding forgivable
loan secured by a mortgage lien on the assisted (purchased) property.
Payback will be required if the assisted homebuyer sells, vacates, rents or
abandons their purchased property any time within the 10 year period.
• Any equity derived from a future buy-out of the assisted homebuyer's
destroyed or substantially damaged dwelling unit must be recaptured.
• Only the actual CDBG Supplemental Funds-funded rehabilitation costs
and/or acquisition subsidy needs to be secured with the forgivable loan.
Project delivery costs and lead hazard reduction costs incurred need not
be included in, or secured by, the mortgage lien.
• Recipients shall require the beneficiaries of their homebuyer assistance
activities to use a principal loan product that meets all of the following
criteria:
1) With the exception of a Habitat for Humanity or a Small
Business Administration (SBA) principal loan product, the
principal mortgage loan must be the only repayable loan in all
individual homebuyer assistance projects
2) The CDBG Supplemental funds may be recorded in junior
position to the principal loan, but must be recorded in senior
position to all other funding in all homebuyer assistance
projects (with the exception of a Habitat for Humanity or a SBA
principal loan). Additionally, recipients of CDBG Supplemental
homebuyer assistance activities must maintain their
assistance security agreements in the above-stated recording
position throughout the 10-year period, and will not be allowed
to subordinate the required recording position to any other
forms of assistance, such as home equity loans.
3) Any mortgage lending entity's (a regulated lender's) principal
mortgage loan products may be used provided they meet all of
the following minimum requirements:
a) Loan interest rates cannot be higher than two percentage
points above the federal prime interest rate at the time of
loan closing;
b) Loan terms will include a 75% or higher Loan-to-Value ratio
(LVR);
c) No less than a 15-year, fully amortized, fixed-rate mortgage
may be used (early pay-off provisions must be allowed);
and
d) No adjustable rate mortgages or balloon payment types of
mortgages will be allowed.
• The maximum per unit assistance level (CDBG Supplemental funds) for
Homebuyer Assistance is $60,000. The administrative entity will be allowed
actual project delivery costs, not to exceed $10,000.
• The Homebuyer Assistance is to be provided by the recipient jurisdiction
where the assisted homebuyer is purchasing a replacement dwelling unit,
not from the recipient jurisdiction where the homebuyer's destroyed
dwelling unit is located. The exception to this provision would be if an
assisted homebuyer purchases a dwelling unit in any of the counties that
are not declared disaster area counties. These homebuyers would apply for
and obtain Hlomebuyer Assistance from the recipient jurisdiction where
their destroyed dwelling unit is located.
• All existing units to be purchased in need of rehabilitation must be both
structurally and financially feasible to rehabilitate.
• All existing units to be purchased in need of rehabilitation must meet all
applicable property standards upon completion.
I OWA
changing
October 23, 2008
The Honorable Timothy Hurley, Mayor
City of Waterloo
City Hall - 715 Mulberry St.
Waterloo, IA 50703
SUBJECT: Contract 013-DRH-011
Dear Mayor Hurley:
Enclosed is a signed copy of your CDBG Disaster Recovery Housing Contract from the Iowa
Department of Economic Development. The assigned number should be referred to in all
correspondence to our office.
As the project proceeds, you will be expected to report to our office periodically and submit
formal requests for funds as needed. Please refer to your Management Guide for other
reporting forms and instructions.
If you have any questions, please feel free to call this office at (515) 242-4711.
Sincerely,
Alice Me
yer
Contract Coordinator
Enclosure
cc: File (JL) RECEIVED OCT 2 7 2001
/64.?tikW eAldia-c."
Chester J.Culver,Governor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT Patty J udge,Lieutenant Governor
Mike Tramontina,Director 200 East Grand Avenue,Des Moines,Iowa USA 50309 Phone:515.242.4700 * Fax 515.242.4809 * www.iowalifechanging.com c
t o-/ 3_o OCT 1 200810N'A®
OCT
o - 2008
IOWA DEPARTMENT OF ECONOMIC
OElifeo
PMENT
MMUNITY DEVELOPMENT BLOCK GRANT )T(CDBG � lir r��/ ,.
HOUSING DISASTER RECOVERY FUND CONTRACT ��
RECIPIENT: City of Waterloo
CONTRACT NUMBER: 08-DRH-011
CONTRACT EFFECTIVE DATE: September 23,2008
AWARD AMOUNT: $611,090
END DATE: December 31,2009
•
THIS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ("CDBG") DISASTER RECOVERY FUND
CONTRACT is made by and between the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT,200 East Grand Avenue,
Des Moines,Iowa 50309("Department"or"IDED")and the Recipient, effective as of the date stated above.
WHEREAS,the Department is designated to receive,administer, and disburse CDBG funds in the State of Iowa; and
WHEREAS,the Department received funds under the Supplemental Appropriations Act of 2008(P.L. 110-252)under the
CDBG program; and
WHEREAS,the Department desires to disburse grant funds to the Recipient for eligible purposes primarily benefiting low
and moderate income persons,eliminating slums and blight,or meeting community development needs having particular urgency;
and
WHEREAS,the Recipient submitted an Application for funding to the Department and the Department has approved the
Application; and
WHEREAS, in approving the Application the Department has relied upon the representations of proposed activities;
management and financial condition of the Recipient;investment of other funds;and other material information contained therein;
and
WHEREAS, the Recipient has certified to the Department that the primary purpose for obtaining CDBG funds is to
primarily benefit low and moderate income persons,eliminate slums and blight,or meet community development needs having a
particular urgency; and
WHEREAS,the Recipient has agreed to provide project services to the following geographic areas:City of Waterloo;and
NOW, THEREFORE, the Recipient accepts this grant upon the terms and conditions set forth in this Contract. In
consideration of the mutual promises contained in this Contract and other good and valuable consideration,it is agreed as follows:
ARTICLE 1
DEFINITIONS
As used in this Contract,the following terms shall apply:
1.1 ACT. "Act"means Title I of the Housing and Community Development Act of 1974 as amended(42 U.S.C.5301 et seq.).
1.2 ACTIVITY. "Activity" means the description of work, services, and other accomplishments to be performed by the
Recipient as described in the Disaster Recovery Fund Application approved by the Department.
1.3 ALLOWABLE COSTS. "Allowable Costs"are those costs which are identified on Attachment A,"Program Description
and Budget;"Attachment B,Application;and consistent with Federal regulations and guidelines applicable to the CDBG program.
1.4 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM(CDBG). "Community Development Block Grant
Contract Number 08-DRH-011
Page 2 of 10 '
1.4 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM(CDBG). "Community Development Block Grant
Program"means the grant program authorized by Title I of the Housing and Community Development Act of 1974,as amended.
1.5 CONTRACT. "Contract"means this Contract and all of the leases,assignments,and similar documents referred to in the
Contract and all other instruments or documents executed by the Recipient or otherwise required in connection with the Contract,
including the Disaster Recovery Fund Application together with any related submittal documents.
1.6 CONTRACT END DATE. "Contract End Date"means the date the Contract ceases to be in force and effect,unless the
Contract is terminated earlier. The Contract expires upon the occurrence of one of the following: a) the Recipient fulfills the
conditions and accomplishments agreed to herein as of the Contract End Date;orb)the Contract is terminated by the Department
due to any default under Article 9;or c)the Contract is terminated in accordance with provisions set forth in Sections 8 and 9 of the
General Provisions,Attachment C of this Contract.
1.7 GRANT. "Grant"means the award of CDBG funds to the Recipient for activities.
1.8 HUD. "HUD"means the U.S.Department of Housing and Urban Development.
1.9 LOW-INCOME FAMILIES. "Low-Income Families"means those families earning no more than 50 percent of the
higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest U.S.Department
of Housing and Urban Development,Section 8 income guidelines. Unrelated individuals shall be considered as one-person families
for this purpose.
1.10 LOW-INCOME PERSON. "Low-Income Person"means a member of a low-income family as defined above.
1.11 MEDIAN INCOME FAMILIES. "Median Income Families"means those families earning no more than 100 percent of
the higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest U.S.
Department of Housing and Urban Development, Section 8 income guidelines. Unrelated individuals shall be considered as one-
person families for this purpose.
1.12 MEDIAN INCOME PERSON. "Median Income Person"means a member of a median income family defined above.
1.13 LOW-AND MODERATE-INCOME FAMILIES. "Moderate Income Families"means those families earning no more
than 80 percent of the higher of the median family income of the county or statewide nonmetropolitan area as determined by the
latest U.S.Department of Housing and Urban Development,Section 8 income guidelines. Unrelated individuals shall be considered
as one-person families for this purpose.
1.14 LOW-AND MODERATE-INCOME PERSON. "Moderate Income Person"means a member of a moderate income
family defined above.
1.15 PROJECT. "Project"means a discrete item of work as determined to be eligible under program guidelines.
ARTICLE 2
FUNDING
2.1 FUNDING SOURCE. The source of funding for the Grant is a Federal appropriation for the Community Development
Block Grant(CDBG)Program, Supplemental Appropriations Act of 2008(P.L. 110-252).
2.2 RECEIPT OF FUNDS. All payments under this Contract are subject to receipt by the Department of sufficient Federal
funds for the CDBG program. Any termination,reduction, or delay of CDBG funds to the Department shall, at the option of the
Depaitinent, result in the termination,reduction or delay of CDBG funds to the Recipient.
Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract
Format Approved September 2008
Contract Number 08-DRH-011
Page 3 of 10
2.3 PRIOR COSTS. If any Recipient has received written approval from the Depai tanent to incur certain costs prior to the
Effective Date of this Contract,then said written approval and the terms and conditions therein are incorporated herein and made a
part of this Contract by this reference as if fully set forth. Any such costs incurred prior to the Effective Date of this Contract are
subject to the Special Conditions and General Conditions of this Contract.
2.4 DISBURSEMENT OF LESS THAN THE TOTAL AWARD AMOUNT. If the total award amount has not been
requested by the Recipient within sixty(60)days after the Contract End Date,then the Department shall be under no obligation for
further disbursement. The Department may allow access to funds after this time for allowable costs associated with the conduct of
the audit(s)required in Article 2.0 of the General Provisions,Attachment C to this Contract.
ARTICLE 3
TERMS OF GRANT
3.1 TIME OF PERFORMANCE. The services of the Recipient are to commence as of the Effective Date and shall be
undertaken in such sequence as to assure their expeditious completion. All of the services required hereunder shall be completed on
or before the Contract End Date.
3.2 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid to the Recipient
by the Department for any item of work or service shall conform to the budget as presented in Attachment A,"Program Description
and Budget." It is further understood and agreed that the total of all payments to the Recipient by the Department for all work and
services required under this Contract shall not exceed the Award Amount unless modified by written amendment of this Contract as
provided in Section 1.0 of the General Provisions.
3.4 ADMINISTRATION. This Contract shall be administered in accordance with 261 Iowa Administrative Code,Chapter 23
and all applicable State and Federal laws and regulations,including the 2008 CDBG Management Guide and the required elements
of the IDED's model of the Owner-Occupied Rehabilitation Administrative Plan(as applicable),which have been provided by IDED
to the Recipient.
ARTICLE 4
ACTIVITY REQUIREMENTS
4.1 PERFORMANCE TARGETS. On the Contract End Date, the Recipient shall have accomplished the activities and
performance targets as described in Attachment A,"Program Description and Budget".
4.2 CALCULATION OF ACTIVITY COMPLETION. The Department has the final authority to assess whether the
Recipient has met their performance targets at the Contract End Date. The Department shall determine completion according to the
performance targets set forth in Attachment A,"Program Description and Budget." The Depai tinent reserves the right to monitor
and measure at any time during the Contract term the achievement of the performance targets.
ARTICLE 5
USE OF FUNDS
5.1 GENERAL. The Recipient shall perform in a satisfactory and proper manner,as determined by the Department,the work
and services as written and described in the approved"Program Description and Budget"(Attachment A). In order to qualify under
the National Objective of benefitting low- and moderate-income persons, every person or household benefitted must be low-or
moderate income. Any persons or households assisted between 80 percent of median income and 100 percent of median income
must qualify as either"preventing or eliminating slums or blight"or"addressing urgent need."
5.2 PROGRAM INCOME. Proceeds in excess of$25,000 in a year generated from the use of CDBG funds (program
income)received by the recipient prior to the Contract End Date,shall be expended prior to requesting additional CDBG funds.
Proceeds in excess of$25,000 in a year generated from the use of CDBG funds(program income)received by the recipient after the
Contract End Date shall be returned to the Department. For entitlement cities funded directly by this contract,program income
received after the end date of this contract shall be used as program income for their regular entitlement city CDBG program.
Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract
Format Approved September 2008
Contract Number 08-DRH-011
Page 4 of 10
5.3 BUDGET REVISIONS. Budget revisions shall be subject to approval of the Department through the Contract amendment
process. Budget line item decreases that would lower the Recipient's performance level required under this Contract must be first
approved by the Department through the amendment process. In no instance shall a budget revision result in total costs exceeding
the total Contract amount. Budget revisions shall be compatible with the terms of this Contract and be of such a nature as to qualify
as an allowable cost. These provisions shall not be construed as allowing general administrative costs to exceed the limits provided
in Article 5.4. Budget revisions requested during the final ninety (90) days of the Contract period will be approved by the
Department only if it determines that the revisions are necessary to complete all activities. The Department retains the right to
amend this contract to reduce the award amount when necessary to achieve an equitable distribution of funds for all areas of the
state.
5.4 GENERAL ADMINISTRATIVE COST LIMITATIONS. Federal funds used for reasonable general administrative
costs, as allowed under Federal and State regulations, shall be limited to the amount shown on the Attachment A,plus up to 2
percent of any program income received.
ARTICLE 6
CONDITIONS TO DISBURSEMENT OF FUNDS
Unless and until the following conditions have been satisfied, the Department shall be under no obligation to disburse to the
Recipient any amounts under this Contract:
6.1 CONTRACT EXECUTED. The Contract shall have been properly executed and,where required,acknowledged.
6.2 COMPLIANCE WITH ENVIRONMENTAL AND HISTORIC PRESERVATION REQUIREMENTS. Funds shall
not be released under this Contract until the Recipient has satisfied the environmental review and release of funds requirements set
forth in 24 CFR Part 58, "Environmental Review Procedures for the Community Development Block Grant Program," and
summarized in the 2008 CDBG Management Guide. In addition, construction contracts for non-exempt activities shall not be
executed and construction shall not begin prior to providing the Department with documentation of the Recipient's compliance with
Section 106 of the National Historic Preservation Act and 36 CFR Part 800,"Protection of Historic Properties"and the Request for
Release of Funds is issued. The Recipient shall comply with the Programmatic Agreement between the Iowa Department of
Economic Development and the Iowa State Historic Preservation Office,applicable to any activities included in this Contract.
6.3 PERMITS AND LICENSES. The Department reserves the right to withhold funds until the Department has reviewed and
approved all documents, such as permits or licenses from other local, state or federal agencies, which may be required prior to
Activity commencement.
6.4 EXCESSIVE FORCE POLICY. The Department,prior to release of funds under this Contract,shall review and approve
the Recipient's policy on protecting individuals engaged in nonviolent civil rights demonstrations from the use of excessive force by
law enforcement agencies within its jurisdiction,and enforcing state and local laws against physically barring entrance to or exit
from a facility or location which is the subject of such nonviolent civil rights demonstrations within its jurisdiction,consistent with
the provisions of Section 906 of the National Affordable Housing Act of 1990 and Subsection 104(1)of the Housing and Community
Development Act of 1974,as amended.
6.5 RECIPIENT SUBAGREEMENT APPROVAL. The Recipient will enter into agreements with any Councils of
Government,Counties or Entitlement Cities in their area,as designated by the Department for the administration of this contract.
ARTICLE 7
REPRESENTATIONS AND WARRANTIES OF RECIPIENT
To induce the Department to make the Grant referred to in this Contract,the Recipient represents covenants and warrants that:
7.1 AUTHORITY. The Recipient is duly authorized and empowered to execute and deliver the Contract. All action on the
Recipient's part, such as appropriate resolution of its governing board for the execution and delivery of the Contract, has been
effectively taken.
Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract
Format Approved September 2008
Contract Number 08-DRH-011
Page 5 of 10
7.2 FINANCIAL INFORMATION. All financial statements and related materials concerning the Activity that have been
provided to the Department are true and correct in all material respects and completely and accurately represent the subject matter
thereof as of the Effective Date of the statements and related materials,and no material adverse change has occurred since that date.
7.3 DISASTER RECOVERY FUND APPLICATION. The contents of the Application the Recipient submitted to the
Department for funding is a complete and accurate representation of the proposed Activity as of the date of submission and there has
been no material adverse change in the organization, operation, or key personnel of the Recipient since the date the Recipient
submitted its Disaster Recovery Fund Application to the Department.
7.4 CLAIMS AND PROCEEDINGS. There are no actions, lawsuits or proceedings pending or,to the knowledge of the
Recipient,threatened against the Recipient affecting in any manner whatsoever their rights to execute the Grant or the ability of the
Recipient to make the payments required under the Grant,or to otherwise comply with the obligations of the Grant contained under
the Grant. There are no actions,lawsuits or proceedings at law or in equity,or before any governmental or administrative authority
pending or,to the knowledge of the Recipient,threatened against or affecting the Recipient or any property involved in the Activity.
7.5 PRIOR AGREEMENTS. The Recipient has not entered into any verbal or written contracts,agreements,or arrangements
of any kind,which are inconsistent with the Contract.
7.6 EFFECTIVE DATE. The covenants,warranties and representations of this Article are made as of the Effective Date of
this Contract and shall be deemed to be renewed and restated by the Recipient at the time of each advance or request for
disbursement of funds.
ARTICLE 8
COVENANTS OF THE RECIPIENT
8.1 AFFIRMATIVE COVENANTS. Until the Activity has been closed out,audited,and approved by IDED,the Recipient
covenants with IDED that:
(a) WORK AND SERVICES. The Recipient shall perform work and services detailed in the Attachment A of the
Contract by the Contract End Date.
(b) REPORTS. The Recipient shall prepare,review and sign the requests and reports as specified below in the form
and content specified by the Depai tuient. The requests and reports shall be submitted to the Department by the 15th of the
month when due,and for final reports,within sixty(60)days after the Contract End Date. The Recipient shall review all
reimbursement requests and verify that claimed expenditures are allowable costs. The Recipient shall maintain
documentation adequate to support the claimed costs.
REPORT DUE DATE
Request for Payment—Housing Report As funds are needed(original and three copies)
Housing beneficiary and unit data,entered on statewide All unit information added and updates complete
online system, as specified by IDED as of end of each contract quarter. If the online system
is unavailable,a written report in a form defined
by IDED shall be due.
Final Request for Payment—Housing Report Within 60 days of Contract End Date
Final Housing Recipient Quarterly Performance Report Within 60 days of Contract End Date
—Activity Status
Section 3 Report Within 60 days of Contract End Date
Updates to the Applicant/Recipient Disclosure Report As needed due to changes
Audit Report Within 30 days of Audit Completion
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Contract Number 08-DRH-011
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(c) RECORDS. The Recipient shall maintain books,records,documents and other evidence pertaining to all costs
and expenses incurred and revenues received under this Contract in sufficient detail to reflect all costs,direct and indirect,
of labor,materials,equipment,supplies,services and other costs and expenses of whatever nature,for which payment is
claimed under this Contract. The Recipient shall maintain books,records and documents in sufficient detail to demonstrate
compliance with the Contract and shall maintain these materials for a period of five(5)years beyond the date upon which
the final audit of the Activity is accepted by IDED. Records for non-expendable property acquired under this Contract
shall be retained for a five(5)year period after the final disposition of property. Records shall be retained beyond the
prescribed period if any litigation or audit is begun or if a claim is instituted involving the grant or agreement covered by
the records. In these instances,the records shall be retained until the litigation,audit or claim has been finally resolved.
(d) ACCESS TO RECORDS/INSPECTIONS. The Recipient shall,without prior notice and at any time,permit
HUD or its representatives,the General Accounting Office or its representatives,and the Department,its representatives or
the State Auditor to examine, audit and/or copy(i)any plans and work details pertaining to the Activity, (ii) all of the
Recipient's books,records and accounts,and(iii)all other documentation or materials related to this Grant;the Recipient
shall provide proper facilities for making such examination and/or inspection.
(e) USE OF GRANT FUNDS. The Recipient shall expend funds received under the Grant only for the purposes and
activities described in its Attachment A,this Contract and as approved by the Department.
(f) DOCUMENTATION. The Recipient shall deliver to IDED, upon request, (i) copies of all contracts or
agreements relating to the Activity,(ii)invoices,receipts,statements or vouchers relating to the Activity,(iii)a list of all
unpaid bills for labor and materials in connection with the Activity, and (iv)budgets and revisions showing estimated
Activity costs and funds required at any given time to complete and pay for the Activity.
(g) NOTICE OF PROCEEDINGS. The Recipient shall promptly notify IDED of the initiation of any claims,
lawsuits or proceedings brought against the Recipient.
(h) INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department, its officers and
employees from and against any and all losses in connection with the Activity.
(i) NOTICE TO DEPARTMENT. In the event the Recipient becomes aware of any material alteration in the
Activity,initiation of any investigation or proceeding involving the Activity,or any other similar occurrence,the Recipient
shall promptly notify the Department.
(j) CERTIFICATIONS. The Recipient certifies and assures that the Activity will be conducted and administered in
compliance with all applicable Federal and State laws, regulations and orders. Certain statutes are expressly made
applicable to activities assisted under the Act by the Act itself,while other laws not referred to in the Act may be applicable
to such activities by their own terms. The Recipient certifies and assures compliance with the applicable orders,laws and
implementing regulations, including but not limited to, the following, as modified by the waivers and alternative
requirements published in the Federal Register on September 11,2008:
(i) Financial Management guidelines issued by the U.S.Office of Management and Budget,OMB Circular
A-133 ("Single Audit Act Amendment of 1996"), OMB Circular A-122 ("Cost Principles for Nonprofit
Organizations"),OMB Circular A-87("Principles for Determining Costs Applicable to Grants and Contracts with
State,Local and Federally recognized Indian Tribal Governments").
(ii) Title I of the Housing and Community Development Act of 1974 as amended(42 U.S.C.5301 et seq.);
and regulations which implement these laws,as modified by the waivers and alternative requirements published in
the Federal Register on September 11,2008.
(iii) Title VI of the Civil Rights Act of 1964 as amended(Public Law 88-352;42 U.S.C.2000d et seq.);
Title VIII of the Civil Rights Act of 1968 as amended(Public Law 90-284;42 U.S.C. 3601 et seq.);the Iowa
Civil Rights Act of 1965;Iowa Code Section 19B.7,and Executive Order#34,dated July 22, 1988;Iowa Code
Chapter 216,Presidential Executive Order 11063,as amended by Executive Order 12259;Presidential Executive
Order 11246,as amended;Section 504 of the Rehabilitation Act of 1973 as amended(29 U.S.C.794);the Age
Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract
Format Approved September 2008
Contract Number 08-DRH-011
Page 7 of 10
Discrimination Act of 1975 as amended (42 U.S.C. 6101 et seq.); the Americans with Disabilities Act, as
applicable,(P.L. 101-336,42 U.S.C. 12101-12213);and related Civil Rights and Equal Opportunity statutes;and
regulations which implement these laws.
(iv) Fair Housing Act,Public Law 90-284. The Fair Housing Act is part of Title VIII of the Civil Rights
Act of 1968 as amended (42 U.S.C. 3601 et seq.); Section 109 of the Title I of the Housing and Community
Development Act of 1974, as amended; Section 3 of the Housing and Urban Development Act of 1968 as
amended(12 U.S.C. 1701u); and regulations which implement these laws.
(v) Department of Housing and Urban Development regulations governing the CDBG program,24 Code of
Federal Regulations,Part 570.
(vi) Section 102 of the Department of Housing and Urban Development Reform Act of 1989
(P.L. 101-235), and implementing regulations.
(vii) Requirements for the Notification,Evaluation,and Reduction of Lead-Based Paint Hazards in Federally
Owned Residential Property and Housing Receiving Federal Assistance;Final Rule(24 CFR Part 35, et al.).
(viii) Davis-Bacon Act,as amended(40 U.S.C.276a-276a-5),where applicable under Section 110 of the
Housing and Community Development Act of 1974,as amended;Contract Work Hours and Safety Standards Act
(40 U.S.C. 327 et seq.); the Copeland Anti-Kickback Act (18 U.S.C. 874); the Department of Defense
Reauthorization Act of 1986;and regulations which implement these laws.
(ix) National Environmental Policy Act of 1969 and implementing regulations.
(x) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended,
(URA)(42 U.S.C. 4601 -4655) and implementing regulations; Section 104(d)of the Housing and Community
Development Act of 1974, as amended, governing the residential anti-displacement and relocation assistance
plan;and Section 105(a)(11)of the Housing and Community Development Act of 1974,as amended,governing
optional relocation assistance.
(xi) Iowa CDBG Program Administrative rules adopted by the Iowa Department of Economic
Development,261 Iowa Administrative Code, Chapter 23.
(xii) Financial and Program Management guidelines issued by the Iowa Department of Economic
Development;the 2008 CDBG Management Guide and the IDED Audit Guide.
(xiii) Government-wide Restriction on Lobbying Certification [Section 319 of Public Law 101-121] and
implementing regulations.
(xiv) Fair Labor Standards Act and implementing regulations.
(xv) Hatch Act (regarding political partisan activity and federally funded activities) and implementing
regulations.
(xvi) Citizen participation,hearing and access to information requirements found under sections 104(a)(2)
and 104(a)(3)of Title I of the Housing and Community Development Act of 1974,as amended and as modified
by the waivers and alternative requirements published in the Federal Register on September 11,2008.
(xvii) Subsection 104(1)of Title I of the Housing and Community Development Act of 1974, as amended,
regarding the prohibition of the use of excessive force in nonviolent civil rights demonstrations and the
enforcement of state and local laws on barring entrance to or exit from facilities subject to such demonstrations.
(xviii) Drug-Free Workplace Act.
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Contract Number 08-DRH-011
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(k) MAINTENANCE OF ACTIVITY PROPERTY AND INSURANCE. The following provision shall apply to
Activity Number(s)None. The Recipient and any sub-recipient shall maintain the property in good repair and condition,
ordinary wear and tear excepted,and shall not suffer or commit waste or damage upon the property. At the Department's
request, the Recipient or sub-recipient shall pay for and maintain insurance as is customary in their industry. This
insurance shall be in an amount not less than the full insurable value of the property. The sub-recipient shall name the
Recipient and Department as a mortgagee and/or an additional loss payee,as appropriate,and the Recipient shall name the
Department as a mortgagee and/or an additional loss payee, as appropriate, and submit copies of the policies to the
Department.
8.2 NEGATIVE COVENANTS. During the Contract term the Recipient covenants with IDED that it shall not,without the
prior written disclosure to and prior written consent of IDED, directly or indirectly:
(a) ASSIGNMENT. Assign its rights and responsibilities under this Contract.
•
(b) ADMINISTRATION. Discontinue administration activities under the Contract.
ARTICLE 9
DEFAULT AND REMEDIES
9.1 EVENTS OF DEFAULT. The following shall constitute Events of Default under this Contract:
(a) MATERIAL MISREPRESENTATION. If at any time any representation, warranty or statement made or
furnished to the Department by,or on behalf of the Recipient in connection with this Contract or to induce the Department
to make a grant to the Recipient shall be determined by the Department to be incorrect,false,misleading or erroneous in
any material respect when made or furnished and shall not have been remedied to the Department's satisfaction within thirty
(30)days after written notice by the Department is given to the Recipient.
(b) NONCOMPLIANCE. If there is a failure by the Recipient to comply with any of the covenants, terms or
conditions contained in this Contract.
(c) CONTRACT END DATE. If the Activity,in the sole judgment of the Department,is not completed on or before
the Contract End Date.
(d) MISSPENDING. If the Recipient expends Grant proceeds for purposes not described in the Disaster Recovery
Fund Application,this Contract,or as authorized by the Department.
(e) INSURANCE. If loss,theft,damage,or destruction of any substantial portion of the property of the Recipient
occurs for which there is either no insurance coverage or for which,in the opinion of the Depai tment,there is insufficient
insurance coverage. This provision shall apply to Activity Number(s)None.
9.2 NOTICE OF DEFAULT. In the event of default,IDED shall issue a written notice of default providing therein a fifteen
(15)day period in which the Recipient shall have an opportunity to cure,provided that cure is possible and feasible.
9.3 REMEDIES UPON DEFAULT. If,after opportunity to cure,the default remains,IDED shall have the right,in addition
to any rights and remedies available to it,to do one or more of the following:
(a) exercise any remedy provided by law,
(b) require immediate repayment of up to the full amount of funds disbursed to the Recipient under this Contract,plus
interest.
Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract
Format Approved September 2008
Contract Number 08-DRH-011
•
Page 9 of 10
9.4 FAILURE TO MEET PERFORMANCE TARGETS. If the Recipient is determined by the Department to be in default
of this Contract due to meeting less than one hundred percent(100%)of its Performance Targets,the Department may require full
Grant repayment or,at its discretion,the Department may require partial repayment of Grant proceeds which allows partial credit for
the performance targets which have been met,or the Department may require other remedies that the Department determines to be
appropriate. Performance targets include income targeting and affordability requirements as required by Federal law and regulation.
No beneficiaries of each activity funded under this contract shall exceed 100 percent of the higher of the median family income of
the county or statewide nonmetropolitan area as determined by the U.S.Department of Housing and Urban Development,Section 8
income guidelines.
ARTICLE 10
INCORPORATED DOCUMENTS
10.1 DOCUMENTS INCORPORATED BY REFERENCE. The Recipient shall comply with the terms and conditions of the
following documents that are hereby incorporated by reference:
1. Attachment A,"Program Description and Budget."
2. Attachment B,"Approved Disaster Recovery Fund Application."
3. Attachment C,"CDBG Program Disaster Recovery Fund General Provisions,"dated September 23,2008.
4. Attachment D,"CDBG Program Waivers for the Supplemental Appropriations Act of 2008"(P.L. 110-252).
5. Attachment E,"Requirements for Housing Activities for the CDBG Disaster Recovery Supplemental Funds."
10.2 ORDER OF PRIORITY. In the event of a conflict between documents of this Contract,the following order of priority
shall govern:
1. Articles 1 through 11 herein.
2. Attachment C,"CDBG Program Disaster Recovery Fund General Provisions,"dated September 23,2008.
3. Attachment D,"CDBG Program Waivers for the Supplemental Appropriations Act of 2008"(P.L. 110-252).
4. Attachment A,"Program Description and Budget."
5. Attachment E,"Requirements for Housing Activities for the CDBG Disaster Recovery Supplemental Funds."
6. Attachment B,"Disaster Recovery Fund Application."
ARTICLE 11
MISCELLANEOUS
11.1 LIMIT ON GRANT PROCEEDS ON HAND. The Recipient shall request funds only as needed and shall not have more
than five hundred dollars($500.00)of Grant proceeds,including earned interest on hand for a period of longer than ten(10)working
days, after which time any surplus amount shall be returned to the Department.
11.2 BINDING EFFECT. This Contract shall be binding upon and shall inure to the benefit of the Department and Recipient
and their respective successors, legal representatives and assigns. The obligations, covenants, warranties, acknowledgments,
waivers,agreements,terms,provisions,and conditions of this Contract shall be jointly and severally enforceable against the parties
to this Contract.
11.3 SURVIVAL OF CONTRACT. If any portion of this Contract is held to be invalid or unenforceable,the remainder shall
be valid and enforceable. The provisions of this Contract shall survive the execution of all instruments herein mentioned and shall
continue in full force until the Activity is completed as determined by the Department.
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Contract Number 08-DRH-011
Page 10 of 10
11.4 GOVERNING LAW. This Contract shall be interpreted in accordance with the laws of the State of Iowa,and any action
relating to the Contract shall only be commenced in the Iowa District Court for Polk County or the United States District Court for
the Southern District of Iowa.
11.5 NOTICES. Whenever this Contract requires or permits any notice or written request by one party to another,it shall be in
writing,enclosed in an envelope,addressed to the party to be notified at the address heretofore stated(or at such other address as
may have been designated by written notice),properly stamped,sealed and deposited in the United States Mail. Any such notice
given hereunder shall be deemed delivered upon the earlier of actual receipt or two(2)business days after posting. The Department
may rely on the address of the Recipient set forth heretofore,as modified from time to time,as being the address of the Recipient.
11.6 WAIVERS. No waiver by the Department of any default hereunder shall operate as a waiver of any other default or of the
same default on any future occasion. No delay on the part of the Department in exercising any right or remedy hereunder shall
operate as a waiver thereof. No single or partial exercise of any right or remedy by the Department shall preclude future exercise
thereof or the exercise of any other right or remedy.
11.7 LIMITATION. It is agreed by the Recipient that the Department shall not, under any circumstances, be obligated
financially under this Contract except to disburse funds according to the terms of the Contract.
11.8 HEADINGS. The headings in this Contract are intended solely for convenience of reference and shall be given no effect in
the construction and interpretation of this Contract.
11.9 INTEGRATION. This Contract contains the entire understanding between the Recipient and the Department and any
representations that may have been made before or after the signing of this Contract,which are not contained herein,are nonbinding,
void and of no effect. None of the parties has relied on any such prior representation in entering into this Contract.
11.10 COUNTERPARTS. This Contract may be executed in any number of counterparts,each of which shall be deemed to be
an original,but all of which together shall constitute but one and the same instrument.
IN WITNESS WHEREOF,the parties have executed this Contract as of the Contract Effective Date first stated.
RECIPIENT: City of City of Waterloo
BY: lrm 7'lt' Y , MgYu1
Mayor Typed or Printed Name and Title
City of Waterloo
City Hall-715 Mulberry St.
Waterloo, IA 50703
IOWA DEPARTME F E 0 IC DEVELOPMENT:
BY:
addell,Division Administrator
Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract
Format Approved September 2008
IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET
ATTACHMENT A DATE: q. a.3 •05
... .. ........... .............
To.3efilledinazyID:Ea :; i Name of Recipient: City of Waterloo X;:;;
Amendment#
. ... .................................... ...
.... ..........
Contract Number: 08-DRH-011 Proj w10fSigrktii'
Ni4TIONAL
A�TIVI7Y pESGRIPTIQfi1 �I;RFpRIVI�IVC��AF2GIr7S%MEASURE T
013JECTIV:E
�UAGE
Activity 1: 971 Housing Repair/Rehabilitation
for families<80%LMI
7 UNITS LMI $454,852
Activity 2: 972 Housing Repair/Rehabilitation
for families 80- 100%LMI
2 UNITS UN $113,713
Activity 3: 981 Homebuyer Assistance
for families<80%LMI
0 UNITS LMI $0
Activity 4:982 Homebuyer Assistance
for families 80-100%LMI
0 UNITS UN $0
Activity 5:991 Interim Mortgage Assistance
for families 0- 100%LMI,
9 HOUSEHOLDS UN $29,925
Activity 6:
$0
Activity 7:
$0
Activity 8:
$0
Activity 9:
$0
GENERAL ADMINISTRATION 181 $12,600
TOTAL BUDGET: $611,090
C:\Docurnents and Settings\jlunn\Desktop\2008 Disaster REcovery Attach!\Waterloo 08-DRH-011
ATTACHMENT C
GENERAL PROVISIONS
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
DISASTER RECOVERY FUND
September 23,2008
1.0 AMENDMENT.
(a) WRITING REQUIRED. The Contract may only be amended through written prior approval of IDED. Examples of situations
where amendments are required include extensions for completion of Activities,changes to the Activities including,but not limited
to,alteration of existing approved Activities and Performance Target Goals or inclusion of new Activities.
(b) UNILATERAL MODIFICATION. Notwithstanding Paragraph(a)above,IDED may unilaterally modify the Contract at will in
order to accommodate any change in the Act or any change in the interpretation of the Act or any applicable Federal,State or local
laws,regulations,rules or policies. A copy of such unilateral modification will be given to the Recipient as an amendment to this
Contract.
(c) IDED REVIEW. IDED will consider whether an amendment request is so substantial as to necessitate reevaluating IDED's
original funding decision on the Activity. An amendment will be denied if it substantially alters the circumstances under which the
Activity funding was originally approved or if it does not meet requirements set forth in 261 Iowa Administrative Code,
Chapter 23.
2.0 AUDIT REQUIREMENTS.
(a) SINGLE AUDIT. The Recipient shall ensure that an audit is performed in accordance with the Single Audit Act Amendment of
1996 and OMB Circular A-133,as applicable,the IDED's administrative rules for the CDBG Program(261 Iowa Administrative
Code Chapter 23),and the 2008 CDBG Management Guide.
(b) ADDITIONAL AUDIT. As a condition of the grant to the Recipient,IDED reserves the right to require the Recipient to submit
to a post Activity completion audit and review in addition to the audit required above.
3.0 COMPLIANCE WITH LAWS AND REGULATIONS. The Recipient shall comply with all applicable State and Federal laws,rules,
ordinances,regulations and orders.
4.0 UNALLOWABLE COSTS. If IDED determines at any time,whether through monitoring,audit,closeout procedures or by other
means or process that the Recipient has expended funds which are unallowable,the Recipient will be notified of the questioned costs
and given an opportunity to justify questioned costs prior to IDED's final determination of the disallowance of costs. Appeals of any
determinations will be handled in accordance with the provisions of Chapter 17A,Iowa Code. If it is IDED's final determination that
costs previously paid by the IDED are unallowable under the terms of the Contract,the expenditures will be disallowed and the
Recipient shall repay to IDED any and all disallowed costs.
5.0 PROGRAM INCOME. All program income as defined in OMB Circular A-102 and 261 Iowa Administrative Code,Chapter 23,shall
be added to the Activity Budget and used to further eligible Activity objectives as defined in the Contract and the Scope of Work in the
Disaster Recovery Application for funding. Program income received after the Contract End Date shall be returned to IDED,or may be
used in another CDBG Contract that is"open"when the Program Income is received. For entitlement cities funded directly by this
contract,program income received after the end date of this contract shall be used as program income for their regular
entitlement city CDBG program.Proceeds totaling less than$25,000 from any CDBG Contract or Contracts received in one year
would not be considered Program Income.
6.0 INTEREST EARNED. To the extent that interest is earned on advances of CDBG funds,this interest shall be returned to IDED,
except that the Recipient may keep interest amounts of up to$100 per year for administrative expenses.
7.0 SUSPENSION. When the Recipient has failed to comply with the Contract,award conditions or standards,IDED may,on reasonable
notice to the Recipient,suspend the Contract and withhold future payments,or prohibit the Recipient from incurring additional
obligations of CDBG funds. Suspension may continue until the Recipient completes the corrective action as required by IDED. IDED
may allow such necessary and proper costs which the Recipient could not reasonably avoid during the period of suspension provided
IDED concludes that such costs meet the provisions of HUD regulations issued pursuant to OMB Circular A-87.
CDBG Contract Number«Contract_Num»
Page 2 of 4
8.0 TERMINATION.
(a) FOR CAUSE. IDED may terminate the Contract in whole,or in part,whenever IDED determines that the Recipient has failed to
comply with the terms and conditions of the Contract.
(b) FOR CONVENIENCE. IDED,the Recipient may terminate the Contract in whole,or in part,when all parties agree that the
continuation of the Activity would not produce beneficial results commensurate with the future disbursement of funds.
(c) DUE TO REDUCTION OR TERMINATION OF CDBG FUNDING. At the discretion of IDED,the Contract may be
terminated in whole,or in part,if there is a reduction or termination of CDBG funds to the State.
9.0 PROCEDURES UPON TERMINATION.
(a) NOTICE. IDED shall provide written notice to the Recipient of the decision to terminate,the reason(s)for the termination,and
the effective date of the termination. If there is a partial termination due to a reduction in funding,the notice will set forth the
change in funding and the changes in the approved budget. The Recipient shall not incur new obligations beyond the effective date
and shall cancel as many outstanding obligations as possible. IDED's share of noncancellable obligations which IDED determines
were properly incurred prior to notice of cancellation will be allowable costs.
(b) RIGHTS IN PRODUCTS. All finished and unfinished documents,data,reports,or other material prepared by the Recipient
under the Contract shall,at IDED option,become the property of IDED.
(c) RETURN OF FUNDS. The Recipient shall return to IDED all unencumbered funds within one week of receipt of the notice of
termination. Any costs previously paid by IDED which are subsequently determined to be unallowable through audit,monitoring,
or closeout procedures shall be returned to IDED within thirty(30)days of the disallowance.
10.0 ENFORCEMENT EXPENSES. The Recipient shall pay upon demand any and all reasonable fees and expenses of the Department,
including the fees and expenses of their attorneys,experts and agents,in connection with the exercise or enforcement of any of the rights
of the Department under this Contract.
11.0 INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department,its officers and employees,from and against
any and all losses,accruing or resulting from any and all claims subcontractors,laborers and any other person,firm or corporation
furnishing or supplying work,services,materials or supplies in connection with the performance of this Contract,and from any and all
claims and losses accruing or resulting to any person,firm or corporation who may be injured or damaged by the Recipient in the
performance of this Contract.
12.0 CONFLICT OF INTEREST.
(a) GENERAL. Except for the use of CDBG funds to pay salaries and other related administrative or personnel costs,no persons
identified in paragraph(b)below who exercise or have exercised any functions or responsibilities with respect to CDBG assisted
Activities or who are in a position to participate in a decision making process or gain inside information with regard to such
Activities,may obtain a personal or financial interest or benefit from a CDBG assisted Activity,or have an interest in any contract,
subcontract or agreement with respect thereto,or the proceeds thereunder,either for themselves or those with whom they have
family or business ties,during their tenure or for one year thereafter.
(b) PERSONS COVERED. The conflict of interest provisions described above apply to any person who is an employee,agent,
consultant,officer,or elected or appointed official of the Recipient,or of any designated public agencies,or sub-recipients which
are receiving CDBG funds.
(c) CONFLICTS OF INTEREST. Chapter 68B,Code of Iowa,the"Iowa Public Officials Act,"shall be adhered to by the
Recipient,its officials and employees.
13.0 USE OF DEBARRED,SUSPENDED,OR INELIGIBLE CONTRACTORS OR SUB-RECIPIENTS. CDBG funds shall not be
used directly or indirectly to employ,award contracts to,or otherwise engage the service of,or fund any contractor or sub-recipient
during any period of debarment,suspension,or placement in ineligible status under the provisions of 24 CFR Part 24 or any applicable
law or regulation of the Department of Labor.
14.0 CIVIL RIGHTS.
CDBG Contract Number«Contract_Num»
Page 3 of 4
(a) DISCRIMINATION IN EMPLOYMENT. The Recipient shall not discriminate against any qualified employee or applicant for
employment because of race,color,religion,sex,national origin,age,or physical or mental disability. The Recipient may take
affirmative action to ensure that applicants are employed and that employees are treated without regard to their race,color,religion,
sex,national origin,age,or disability. Such action shall include but may not be limited to the following:employment,upgrading,
demotion or transfers;recruitment or recruitment advertising;lay-off or termination;rates of pay or other forms of compensation;
and selection for training,including an apprenticeship. The Recipient agrees to post notices setting forth the provisions of the
nondiscrimination clause in conspicuous places so as to be available to employees.
(b) CONSIDERATION FOR EMPLOYMENT. The Recipient shall,in all solicitations or advertisements for employees placed by
or on behalf of the Recipient,state that all qualified applicants will receive consideration for employment without regard to race,
color,religion,sex,national origin,age,disability,or familial status. Solicitation and Advertisement-The Recipient shall list all
suitable employment openings in the State Employment Service local offices.
(c) CIVIL RIGHTS COMPLIANCE IN EMPLOYMENT. The Recipient shall comply with all relevant provisions of the Iowa
Civil Rights Act of 1965 as amended,Iowa Code Section 19B.7,Federal Executive Order 11246,as amended;Title VI of the U.S.
Civil Rights Act of 1964 as amended(42 U.S.C. Section 2000d et seq.),the Fair Labor Standards Act
(29 U.S.C. Section 201 et seq.),The Americans with Disabilities Act,as applicable,(P.L. 101-336,42 U.S.C. 12101-12213),
Section 504 of the Rehabilitation Act of 1973 as amended(29 U.S.C.Section 794),and the Age Discrimination Act of 1975 as
amended(42 U.S.C. Section 6101 et seq.). The Recipient will furnish all information and reports requested by the State of Iowa or
required by or pursuant to the rules and regulations thereof and will permit access to payroll and employment records by the State
of Iowa to investigate compliance with these rules and regulations.
(d) CERTIFICATION REGARDING GOVERNMENT-WIDE RESTRICTION ON LOBBYING. The Recipient certifies,to the
best of his or her knowledge and belief,that:
i) No Federal appropriated funds have been paid or will be paid,by or on behalf of the Recipient,to any person for influencing
or attempting to influence an officer or employee of any agency,a Member of Congress,an officer or employee of Congress,
or an employee of a Member of Congress in connection with the awarding of any Federal contract,the making of any Federal
grant,the making of any Federal loan,the entering into of any cooperative agreement,and the extension,continuation,
renewal,amendment,or modification of any Federal contract,grant,loan,or cooperative agreement.
ii) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting
to influence an officer or employee of any agency,a Member of Congress,an officer or employee,or an employee of a
Member of congress in connection with this Federal contract,grant,loan,or cooperative agreement,the Recipient shall
complete and submit Standard Form-LLL,"Disclosure Form to Report Federal Lobbying"in accordance with its instruction.
iii) The Recipient shall require that the language of this certification be included in the award documents for all subawards at all
tiers(including subcontracts,subgrants,and contracts under grants,loans,and cooperative agreements)and that all sub-
recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered
into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352,title 31,
U.S.Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than$10,000 and
not more than$100,000 for each such failure.
(e) PROGRAM NONDISCRIMINATION. The Recipient shall conform with requirements of Title VI of the Civil Rights Act of
1964(42 U.S.C.2000d et seq.)and HUD regulations issued pursuant thereto contained in 24 CFR Part 1. No person in the United
States shall on the basis of race,color,national origin,sex or religion or religious affiliation be excluded from participation in,be
denied the benefits of,or be subjected to discrimination under any program or Activity funded in whole or in part with funds made
available through this Contract. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of
1975(42 U.S.C.6101 et. seq.)or with respect to an otherwise qualified individual with a disability as provided in the Americans
with Disabilities Act,as applicable,(P.L. 101-336,42 U.S.C. 12101-12213)or Section 504 of the Rehabilitation Act of 1973
(29 U.S.C.Section 794)shall also apply to any such program or Activity.
(f) FAIR HOUSING. The Recipient shall comply with Title VIII of the Civil Rights Act of 1968(42 U.S.C. 3601 et seq.),generally
known as the Fair Housing Act,and with HUD regulations found at 24 CFR Part 107,issued in compliance with Federal Executive
CDBG Contract Number«Contract_Num»
Page 4 of 4
Order 11063,as amended by Federal Executive Order 12259. The recipient shall also comply with Section 109,Title I of the
Housing and Community Development Act of 1974,as amended.
(g) SECTION 3 COMPLIANCE. The Recipient shall comply with provisions for training,employment,and contracting in
accordance with Section 3 of the Housing and Urban Development Act of 1968(12 U.S.C. 1701u).
(h) NONCOMPLIANCE WITH THE CIVIL RIGHTS LAWS. In the event of the Recipient's noncompliance with the
nondiscrimination clauses of this Contract or with any of the aforesaid rules,regulations,or requests,this Contract may be
canceled,terminated,or suspended either wholly or in part. In addition,the State of Iowa may take further action,imposing other
sanctions and invoking additional remedies as provided by the Iowa Civil Rights Act of 1965(Chapter 216,Code of Iowa 2007)or
as otherwise provided by law.
(i) INCLUSION IN SUBCONTRACTS. The Recipient will include the provisions of the preceding paragraphs of Section 14 in
every subcontract unless exempt by the State of Iowa,and said provisions will be binding on each subcontractor. The Recipient
will take such action with respect to any subcontract as the State of Iowa may direct as a means of enforcing such provisions
including sanctions for noncompliance. In the event the Recipient becomes involved in or is threatened by litigation with a
subcontractor or vendor as a result of such direction by the State of Iowa,the Recipient may request the State of Iowa to enter into
such litigation to protect the interests of the State of Iowa.
15.0 POLITICAL ACTIVITY. No portion of program funds shall be used for any partisan political activity or to further the election or
defeat of any candidate for public office. Neither the program nor the funds provided therefore,nor the personnel employed in the
administration of this Contract,shall be in any way or to any extent,engaged in the conduct of political activities in contravention of
The Hatch Act(5 U.S.C. 15).
16.0 LIMIT ON RECOVERY OF CAPITAL COSTS. The Recipient will not attempt to recover any capital costs of public improvements
assisted in whole or part under this Contract by assessing any amount against properties owned and occupied by persons of low and
moderate income,including any fee charged or assessment made as a condition of obtaining access to such public improvements,unless
(i)funds received under this Contract are used to pay the proportion of such fee or assessment that relates to the capital costs of such
public improvements that are financed from revenue sources other than under Title I of the Housing and Community Development Act
of 1974,as amended,or(ii)for purposes of assessing any amount against properties owned and occupied by persons of low and
moderate income who are not persons of very low income,the Recipient has certified to the Department that it lacks sufficient funds
received under Title I of the Housing and Community Development Act of 1974,as amended,to comply with the requirements of clause
(i)above.
Attachment D
52870 Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices
to(202)395-6974.Comments must be Send written material to Teressa Kaas, Information on Services for Individuals
submitted on or before October 14, 16825 South Seton Avenue, With Disabilities
2008. Emmitsburg,Maryland 21727. For information on facilities or
FOR FURTHER INFORMATION CONTACT: Comments must be identified by Docket services for individuals with disabilities
Requests for additional information or ID FEMA-2008-0010 and may be or to request special assistance at the
copies of the information collection submitted by one of the following meeting,contact Teressa Kaas as soon as
should be made to Director,Records methods: possible.
Management Division,500 C Street, • Federal eRulemaking Portal:http:// Dated:September 5,2008.
SW.,Washington,DC 20472,Mail Drop www.regulations.gov.Follow the Denis G.Onieal,
Room 301,facsimile number(202)646- instructions for submitting comments.
Superintendent,National Fire Academy,U.S.
3347,or e-mail address FEMA-
• E-mail:FEMA-RULES@dhs.gov. Fire Administration,Federal Emergency
Information-Collections@dhs.gov. Include Docket ID in the subject line of Management Agency.
Dated:September 5,2008 the message. [FR Doc.E8-21127 Filed 9-10-08;8:45 am]
John A.Sharetts-Sullivan, • Fax:(866)466-5370. BILLING CODE 9110-17-P
Director,Records Management Division, • Mail:Teressa Kaas,16825 South
Office
nagementAgencytDepartmentof,Federal Emergency Seton Avenue,Emmitsburg,Maryland
Homeland Security. 21727. DEPARTMENT OF HOUSING AND
[FR Doc.E8-21136 Filed 9-10-08;8:45 am)
Instructions:All submissions received URBAN DEVELOPMENT
BILUNG CODE 9110-11-P must include the Docket ID for this [Docket No.FR-5250-N-01]
action.Comments received will be
posted without alteration at Allocations and Common Application
DEPARTMENT OF HOMELAND www.regulations.gov,including any and Reporting Waivers Granted to and
SECURITY personal information provided. Alternative Requirements for Midwest
Docket:For access to the docket to Flood Community Development Block
Federal Emergency Management read background documents or Grant(CDBG)Disaster Recovery
Agency Grantees Under the Supplemental
comments received by the National Fire Appropriations Act,2008
[Docket ID FEMA-2008-0010] Academy Board of Visitors,go to
http://www.regulations.gov. AGENCY:Office of the Secretary,HUD.
National Fire Academy Board of ACTION:Notice of allocations,waivers,
Visitors FOR FURTHER INFORMATION CONTACT:
Teressa Kaas,16825 South Seton and alternative requirements.
AGENCY:Federal Emergency Avenue,Emmitsburg,Maryland 21727,
Management Agency,DHS. telephone(301)447-1117,fax(301) oUMMARY of the initial allocation for l Notice advises the public
grant funds
ACTION:Committee Management;Notice 447-1173,and e-mail for CDBG disaster recovery grants for
of Open Federal Advisory Committee teressa.kaas@dhs.gov. the purpose of assisting in the recovery
Meeting.
SUPPLEMENTARY INFORMATION:Notice of in areas covered by a declaration of
SUMMARY:The National Fire Academy this meeting is given under the Federal major disaster under title IV of the
Board of Visitors will meet on October Advisory Committee Act,5 U.S.C.App. Robert T.Stafford Disaster Relief and
2-4,2008. (Pub.L.92-463).The National Fire Emergency Assistance Act(42 U.S.C.
DATES:The meeting will take place Academy Board of Visitors will be 5121 et seq.)as a result of recent natural
Thursday,October 2, 2008,from 8:30 holding a meeting for purposes of disasters.As described in the
a.m.to 4 p.m.,e.s.t.;Friday,October 3, reviewing U.S.Fire Administration/ SUPPLEMENTARY INFORMATION section of
2008,from 9 a.m,to 5 p.m.,e.s.t.;and National Fire Academy Program this Notice,HUD is authorized by
Saturday,October 4, 2008,from 9 a.m. activities,including the status of statute and regulations to waive
to 11:30 a.m.,e.s.t.Comments must be campus maintenance and capital statutory and regulatory requirements
submitted by Thursday,October 9, improvements,the budget update,the and specify alternative requirements for
2008. annual Ethics Briefing,the Learning this purpose,upon the request of the
ADDRESSES:Members of the public who Management System update,the state grantees.This Notice also
wish to obtain information for the National Fire Programs update,the describes the common application,
public meeting may contact Teressa Education,Training and Partnerships eligibility,and administrative waivers
Kaas as listed in the FOR FURTHER update,the Academy update,and Board and the common alternative and
INFORMATION CONTACT section by
discussions and new items.This statutory requirements for the grants.
September 30,2008.Members of the meeting is open to the public. DATES:Effective Date:September 16,
public may participate by coming to the The Chairperson of the National Fire 2008.
National Emergency Training Center, Academy Board of Visitors shall FOR FURTHER INFORMATION CONTACT:
Building H,Room 300,Emmitsburg, conduct the meeting in a way that will, Jessie Handforth Kome,Director,
Maryland.Members of the general in his judgment,facilitate the orderly Disaster Recovery and Special Issues
public who plan to participate in the conduct of business.During its meeting, Division,Office of Block Grant
meeting should contact Teressa Kaas as the committee welcomes public Assistance,Department of Housing and
listed in the FOR FURTHER INFORMATION comment;however,comments will be Urban Development,451 7th Street,
CONTACT section,on or before September permitted only during the public SW.,Room 7286,Washington,DC
30,2008.Requests to have written comment period.The Chairperson will 20410,telephone number 202-708-
material distributed to each member of make every effort to hear the views of 3587.Persons with hearing or speech
the committee prior to the meeting all interested parties.Please note that impairments may access this number
should reach the contact person at the the meeting may end early if all via TTY by calling the Federal
address below by September 30, 2008. business is completed. Information Relay Service at 800-877-
Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices 52871 1
8339.Facsimile inquiries may be sent to The Secretary finds that the following the Robert T.Stafford Disaster Relief and
Ms.Kome at 202-401-2044. (Except for waivers and alternative requirements,as Emergency Assistance Act(42 U.S.C.5121 et
the'`800"number,these telephone described below,are not inconsistent seq.)as a result of recent natural disasters.
numbers are not toll-free.) with the overall purpose of Title I of the The law further notes:
Housing and Community Development That funds provided under this heading
SUPPLEMENTARY INFORMATION: Act of 1974,as amended(HCD Act),or
the Cranston-Gonzalez National shall be administered through an entity or
onzaez
Authority To Grant Waivers entities designated by the Governor of each
Affordable Housing Act,as amended. state.Provided further,that funds allocated
The Supplemental Appropriations Under the requirements of the under this heading shall not adversely affect
Act,2008 (Pub.L. 110-252,approved Department of Housing and Urban the amount of any formula assistance
June 30, 2008) (Supplemental Development Reform Act of 1989(the received by a state under this heading:
Appropriations Act)appropriates$300 HUD Reform Act),regulatory waivers Provided further,that each state may use up
million,to remain available until must be justified and published in the to five percent of its allocation for
expended,in CDBG funds for necessary Federal Register. administrative costs.
expenses related to disaster relief,long- Except as described in this Notice, HUD computes allocations based on
term recovery,and restoration of statutory and regulatory provisions data that is generally available covering
infrastructure in areas covered by a governing the CDBG program for states, all the eligible affected areas.Two
declaration of major disaster under title including those at 24 CFR part 570, challenges arose in making this
IV of the Robert T. Stafford Disaster shall apply to the use of these funds.In allocation.First,the statute gave very
Relief and Emergency Assistance Act accordance with the Supplemental little guidance on what states are to
(42 U.S.C. 5121 et seq.)as a result of Appropriations Act,HUD will receive funding,so HUD had to
recent natural disasters.The reconsider every waiver in this Notice determine the eligible universe of
Supplemental Appropriations Act on the two-year anniversary of the day grantees.The appropriation calls for
this Notice is published.
authorizes the Secretary to waive,or funding"recent natural disasters."
specify alternative requirements for,any Additional Waivers Since this appropriation was enacted on
provision of any statute or regulation Each state receiving an allocation may June 30,2008,and was developed while
that the Secretary administers in request additional waivers from the there was significant awareness of
connection with the obligation by the Department as needed to address the flooding in the Midwest,the
Secretary or use by the recipient of these Department's primary assumption was
specific needs related to that state's
funds and guarantees,except for recovery activities.The Department will that the funds were targeted to the
requirements related to fair housing, respond separately to the state's Midwest flooding.However,there were
nondiscrimination,labor standards,and requests for waivers of provisions not also several other severe storms,
the environment(including covered in this Notice,after working flooding,and tornado events that
requirements concerning lead based with the state to tailor the program to received major disaster declarations
paint),upon a request by the state and best meet the unique disaster recovery during the same time frame.There were
a finding by the Secretary that such a needs in its impacted areas. no declared disasters in April 2008,
waiver would not be inconsistent with which allows for a natural break and
the overall purpose of the statute. Allocations argues that"recent disasters"is most
Additionally,regulatory waiver The Supplemental Appropriations likely to be those occurring after this
authority is provided by 24 CFR 5.110, Act provides$300 million of lull.Therefore,HUD is defining"recent
91.600,and 570.5.The following supplemental appropriation for the natural disasters"to be all major natural
application and reporting waivers and CDBG program for: disasters that occurred and were
alternative requirements are in response Necessary expenses related to disaster declared from May 1,2008,through
to requests from each of the states relief,long-term recovery,and restoration of June 30,2008.This would limit the
receiving an allocation under this infrastructure in areas covered by a eligibility for an allocation to disasters
Notice. declaration of major disaster under title IV of in the states shown below.
TABLE 1—FEDERALLY DECLARED DISASTERS IN MAY AND JUNE 2008
No. Declared date State Title
1773 25-Jun-08 Missouri Severe Storms and Flooding.
1772 25-Jun-08 Minnesota Severe Storms and Flooding.
1771 24-Jun-08 Illinois Severe Storms and Flooding.
1770 20-Jun-08 Nebraska Severe Storms,Tornadoes,and Flooding.
1769 19-Jun-08 West Virginia Severe Storms, Tornadoes, Flooding, Mudslides, and Land-
slides.
1768 14-Jun-08 Wisconsin Severe Storms,Tornadoes,and Flooding.
1766 8-Jun-08 Indiana Severe Storms and Flooding.
1763 27-May-08 Iowa Severe Storms,Tornadoes,and Flooding.
1762 26-May-08 Colorado Severe Storms and Tornadoes.
1760 23-May-08 Missouri Severe Storms and Tornadoes.
1758 20-May-08 Arkansas Severe Storms, Flooding,and Tornadoes.
1756 14-May-08 Oklahoma Severe Storms,Tornadoes,and Flooding.
1755 9-May-08 Maine Severe Storms and Flooding.
1753 8-May-08 Mississippi Severe Storms and Flooding.
52872 Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices
HUD is aware that other federal State Amount allocated To meet this directive,HUB is pursuing
programs,such as Federal Emergency four courses of action.First,this Notice
Management Agency(FEMA)Public Wisconsin 5,000,000 includes specific reporting,written
Assistance and Small Business procedures,monitoring,and internal
Administration(SBA)loans,exist to As soon as better data are available, audit requirements for grantees. Second,
support disaster recovery.Compared to HUD will compute allocations for the to the extent its resources allow,HUD
the number of major disaster remaining$200 million and announce will institute risk analysis and on-site
declarations,the number of times them.A state included in that monitoring of grantee management of
Congress has appropriated CDBG announcement may immediately the grants and of the specific uses of
supplemental disaster recovery funds is proceed to prepare and submit an funds.Third,HUD will be extremely
very small.The Department believes it Action Plan for disaster recovery in cautious in considering any waiver
is reasonable to limit the allocations to accordance with this Notice,although related to basic financial management
places experiencing a significant need HUD will not be able to make the grant requirements.The standard,time-tested
for additional federal assistance to until the allocations are published in CDBG financial requirements will
facilitate long-term recovery and the Federal Register.Therefore,HUD continue to apply.Fourth,HUD is
generally applies a funding threshold,in commits to determining,announcing, collaborating with the HUD Office of
this case,of$2 million.Thus,it is very and publishing the additional Inspector General to plan and
likely that not all of the eligible universe allocations swiftly once the data are implement oversight of these funds.
will be funded. available. Justification
HUD will invite each grantee Waiver
The second challenge in allocating receiving an allocation under the This section of the Notice briefly
supplemental disaster appropriations is Supplemental Appropriations Act to describes the basis for each waiver and
the trade off of a timely allocation submit an Action Plan for Disaster related alternative requirements,if any.
versus having the most complete data Recovery in accordance with this Each state eligible for a disaster
needed to make a fully informed Notice. recovery grant receives annual CDBG
allocation.CDBG disaster recovery The Supplemental Appropriations allocations,has a consolidated plan,a
assistance is intended to fund long-term Act requires funds be used only for citizen participation plan,a monitoring
disaster recovery.States need to know disaster relief,long-term recovery,and plan,and has made CDBG certifications.
relatively quickly how much they are to restoration of infrastructure in areas HUD encourages each CDBG disaster
receive so that they can begin covered by a declaration of major recovery grantee to carry out CDBG
developing their recovery plans. disaster under title IV of the Robert T. disaster recovery activities in the
However,a fair allocation generally Stafford Disaster Relief and Emergency context of its ongoing community
depends on having good data similarly Assistance Act(42 U.S.C. 5121 et seq.) development program to the extent
collected for all eligible states so that as a result of recent natural disasters. feasible(for example,by selecting
the needs of each state are fully taken The statute directs that each grantee will activities consistent with the
into consideration.In this case,where describe in its Action Plan for Disaster consolidated plan,by providing overall
funds were appropriated at a time when Recovery how the use of the grant funds benefit to at least 70 percent low-and
some of the disasters were still ongoing, will address long-term recovery and moderate-income persons,and by
the data for most disasters and thus infrastructure restoration.HUD will holding hearings or meetings to solicit
most states is still incomplete.Complete monitor compliance with this direction public comment).
data to make a full allocation may not and may be compelled to disallow The waivers,alternative requirements,
be available until mid-to late September expenditures if it finds uses of funds are and statutory changes described in this
at the earliest.However,HUD believed not disaster-related,or funds allocated Notice apply only to the CDBG
it was unreasonable to hold funds that duplicate other benefits.HUD supplemental disaster recovery funds
are currently needed as the Department encourages grantees to contact their appropriated in the Supplemental
waits for more complete data.As such, assigned HUD offices for guidance in Appropriations Act,not to funds
HUD is making a two-stage allocation: complying with these requirements provided under the regular CDBG
$100 million was allocated on August 4, during development of their Action program.These actions provide
2008,to the three most affected states Plans for Disaster Recovery or if they additional flexibility in program design
and the remaining funds will be have any questions regarding meeting and implementation and implement
allocated in mid-September or October these requirements. statutory requirements unique to this
when more complete data are available. As provided for in the Supplemental appropriation.
Enough data were available from FEMA, Appropriations Act,the funds may not
SBA,and other sources to make be used for activities reimbursable by or Application for Allocations Under the
reasonable initial allocation to the states for which funds are made available by Supplemental Appropriations Act
with the most severe damage due to the the Federal Emergency Management These waivers and alternative
incidents noted in the table above.The Agency or the Army Corps of Engineers. requirements streamline the pre-grant
Department was concerned that the first process and set the guidelines for states'
stage of the two-stage allocation not Prevention of Fraud,Abuse,and applications for their allocations.HUD
over-fund a grantee.Currently,the Duplication of Benefits encourages each grantee that receives an
Department can say with confidence The Supplemental Appropriations allocation to submit an Action Plan for
that the following grants would not be Act also directs the Secretary to: Disaster Recovery to HUD as soon as
over-funding the disaster recovery needs Establish procedures to prevent recipients practicable following an allocation
of the states receiving allocations, from receiving any duplication of benefits announcement.
and report quarterly to the Committees on Overall Benefit to Low-and Moderate-
State Amount allocated Appropriations with regard to all steps taken Income Persons
to prevent fraud and abuse of funds made
Indiana $10,000,000 available under this heading including Pursuant to explicit authority in the
Iowa 85,000,000 duplication of benefits. Supplemental Appropriations Act,HUD
Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices 52873
is granting an overall benefit waiver that Consistency With the Consolidated Plan Appropriations Act,which allows up to
allows for up to 50 percent of the grant HUD is waiving the requirement for five percent of the grant to be used for
to assist activities under the urgent need consistency with the consolidated plan the state's administrative costs.The
or prevention or elimination of slums because the effects of a major disaster provisions at 42 U.S.C. 5306(d)and 24
and blight national objectives,rather usually alter a grantee's priorities for CFR 570,489(a)(1)(i)and(iii)will not
than the 30 percent allowed in the meeting housing,employment,and apply to the extent that they cap state
annual state CDBG program.The infrastructure needs.To emphasize that administration expenditures and require
primary objective of Title I of the uses of grant funds must be consistent a dollar for dollar match of state funds
Housing and Community Development with the overall purposes of the HCD for administrative costs exceeding
Act and of the funding program of each Act,HUD is limiting the scope of the $100,000.HUD does not waive 24 CFR
grantee is"development of viable urban waiver for consistency with the 570.489(a)(3)to allow the state to
communities,by providing decent consolidated plan;it applies only until exceed the overall planning,
housingand a suitable livingthe grantee first updates its consolidated management and administrative cap of
Plan priorities followingthe disaster. 20 percent.
environment and expanding economic P
opportunities,principally for persons of Action Plan for Disaster Recovery Use of Subrecipients
low and moderate income."The statute HUD is waiving the CDBG action plan The State CDBG program rule does
goes on to set the standard of not make specific provision for the
requirements and substituting an Action
performance for this primary objective Plan for Disaster Recovery.This will treatment of the entities called
at 70 percent of the aggregate of the allow rapid implementation of disaster "subrecipients"in the CDBG
funds used for support of activities recovery grant programs and ensure entitlement program.The waiver
producing benefit to low-and moderate- conformance with provisions of the allowing the state to carry out activities
income persons.Since extensive Supplemental Appropriations Act. directly creates a situation in which the
damage to community structures and Where possible,the Action Plan for state may use subrecipients to carry out
housing affected those with varying Disaster Recovery,including activities in a manner similar to
incomes,and income-producing jobs are certifications,does not repeat common entitlement communities rather than
often lost for a period of time following action plan elements the grantee has using a method of distributing funds to
a disaster,HUD is waiving the 70 already committed to carry out as part local governments.HUD and its Office
percent overall benefit requirement, of its annual CDBG submission, of Inspector General have long
leaving the 50 percent requirement,to Although a state as the grantee may identified the use of subrecipients as a
give grantees even greater flexibility to designate an entity or entities to practice that increases the risk of abuse
carry out recovery activities within the administer the funds,the state is of funds.HUD's experience is that this
confines of the CDBG program national responsible for compliance with federal risk can be successfully managed by
objectives.HUD may only provide requirements.During the course of the following the CDBG entitlement
additional waivers of this requirement if grant,HUD will monitor the state's use requirements
ore,HUD and related
drmuidance.
a state
it makes a finding of compelling need. of funds and its actions for consistency takingTheadvantage ofs equ waiverngthat allowing
astate
The requirement that each activitymeet with the Action Plan.The state may g
q submit an initial partial Action Plan and it to carry out activities directly must
one of the three national objectives is follow the alternative requirements
not waived. amend it one or more times drawn from the CDBG entitlement rule
subsequently until the Action Plan
Expanded Distribution and Direct describes uses for the total grant and specified in this Notice when using
Action amount.The state may also amend subrecipients.
activities in its Action Plan. Reporting
The waivers and alternative
requirements allowing distribution of Citizen Participation HUD is waiving the annual reporting
funds by a state to entitlement The citizen participation waiver and requirement because the Congress
communities and Indian tribes,and to alternative requirements will permit a requires quarterly reports from the
allow a state to carry out activities more streamlined public process,but grantees and from HUD on various
directly rather than distribute all funds one that still provides for reasonable aspects of the uses of funds and of the
to units of local government are public notice,appraisal,examination, activities funded with these grants.
consistent with waivers granted for and comment on the activities proposed Manyr of
t e data to Congresslents the ergr are the
es
previous,similar disaster recovery for the use of CDBG disaster recovery will
as those that U willr quarterly
se a
cases.HUD believes that,in using very grant funds.The waiver removes the
to
similar statutory language to that used requirement at both the grantee and exercise oversight for compliance with
for the CDBG su lemental state grant recipient levels for public the requirements of this Notice and for
PP hearings or meetings as the method for prevention of fraud,abuse of funds,and
appropriations for Hurricane Katrina, disseminating information or collecting duplication of benefits.To collect these
Rita,and Wilma recovery,Congress is citizen comments.Instead,grantees are data elements and to meet its reporting
signaling its intent that the states under encouraged to employ innovative requirements,HUD is requiring each
this appropriation also be able to carry methods to communicate with citizens grantee to report to HUD quarterly using
out activities directly.Therefore,HUD is and solicit their views on proposed uses the online Disaster Recovery Grant
waiving program requirements to of disaster recovery funds,and then to Reporting(DRGR)system,which uses a
support this.HUD is also including in indicate in the Action Plan how it has streamlined,Internet-based format.HUD
this Notice the necessary addressed these views. will use grantee reports to monitor for
complementary waivers and alternative anomalies or performance problems that
requirements related to subrecipients to Administration Limitation suggest fraud,abuse of funds,and
ensure proper management and State program administration duplication of benefits;to reconcile
disposition of funds during the grant requirements must be modified to be budgets,obligations,fund draws,and
execution and at closeout. consistent with the Supplemental expenditures;and to calculate
52874 Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices
applicable administrative and public states asked for waivers to help promote assistance are limited.The change
service limitations and the overall the acquisition of property and the provides access to an additional
percent of benefit to low-and moderate- replacement of housing in a timely and relocation resource option.
income persons,and as a basis for risk efficient manner. The URA and implementing
analysis in determining a monitoring CDBG funds are federal financial regulations to the extent that they
plan. assistance so their use in projects that require a grantee to offer a person
The grantee must post the report on involve acquisition of property displaced from a dwelling unit the
a Web site for its citizens within 3 days necessary for a federally assisted option to receive a"moving expense
of the report's submission to HUD.If a project,or that involve acquisition, and dislocation allowance"based on the
grantee chooses,it may use this report, demolition,or rehabilitation that force a current schedule of allowances prepared
together with a statement regarding any person to move permanently,are subject by the Federal Highway Administration,
sole source procurements,as its to the URA and the government-wide provided that the grantee establishes
required quarterly submission to the implementing regulations found at 49 and offers the person a moving expense
Committees on Appropriations.Each CFR part 24.The URA provides and dislocation allowance under a
quarter,HUD will submit to the assistance and protections to schedule of allowances that is
Committees a summary description of individuals and businesses affected by reasonable for the jurisdiction and takes
its report reviews,other HUD Federal or federally assisted projects. into account the number of rooms in the
monitoring and technical assistance HUD is waiving the following URA displacement dwelling,whether the
activities undertaken during the quarter, requirements to help promote person owns and must move the
and any significant conclusions related accessibility to suitable decent,safe,and furniture,and,at a minimum,the kinds
to fraud or abuse of funds or duplication sanitary housing for Midwest flooding of expenses described in 49 CFR 24.301.
of benefits. victims, Failure to suspend this provision would
Eligibility—Housing Related The acquisition requirements of the impede disaster recovery by requiring
URA and implementing regulations are grantees to offer allowances that do not
The waiver of Section 105(a) of the waived so that they do not apply to an reflect current local labor and
1974 Act that allows new housing arm's length voluntary purchase carried transportation costs.Persons displaced
construction and of Section 105(a)(24), out by a person that does not have the from a dwelling remain entitled to
to allow homeownership assistance for power of eminent domain,in choose a payment for actual reasonable
families whose income is up to 120 connection with the purchase and moving and related expenses if they
percent of median income and payment occupancy of a principal residence by find that approach preferable to the
of up to 100 percent of a housing down that person.The failure to suspend locally established moving expense and
payment is necessary following major these requirements would impede dislocation allowance.
disasters in which large numbers of disaster recovery and may result in
affordable housing units have been windfall payments. In addition to the URA waivers,HUD
damaged or destroyed,as is the case in A limited waiver of the URA is waiving requirements of section
the disaster eligible under this notice. implementing regulations to the extent 104(d)of the HCD Act dealing with one-
The broadening of the Section that they require grantees to provide for-one replacement of low-and
105(a)(24)waiver,in accordance with URA financial assistance sufficient to moderate-income housing units
the state's request,will allow the state reduce the displaced person's post- demolished or converted in connection
to implement mixed-use housing displacement rent/utility cost to 30 with a CDBG-assisted development
recovery programs included in its HUD- percent of household income.The project for housing units damaged by
accepted action plan. failure to suspend these one-size-fits-all one or more disasters.HUD is waiving
requirements could impede disaster this requirement because it does not
Anti-Pirating recovery.To the extent that a tenant has take into account the large,sudden
The limited waiver of the anti-pirating been paying rents in excess of 30 changes a major disaster may cause to
requirements allows the flexibility to percent of household income without the local housing stock,population,or
provide assistance to a business located demonstrable hardship,rental local economy.Further,the requirement
in another state or market area within assistance payments to reduce tenant does not take into account the threats to
the same state if the business was costs to 30 percent would not be public health and safety and to
displaced from a declared area within required. economic revitalization that may be
the state by the disaster and the The URA and implementing caused by the presence of disaster-
business wishes to return.This waiver regulations to the extent necessary to damaged structures that are unsuitable
is necessary to allow a grantee affected permit a grantee to meet all or a portion for rehabilitation.As it stands,the
by a major disaster to rebuild its of a grantee's replacement housing requirement would impede disaster
employment base. financial assistance obligation to a recovery and discourage grantees from
displaced renter by offering rental acquiring,converting,or demolishing
Relocation Requirements housing through a tenant-based rental disaster-damaged housing because of
The states'plan to engage in assistance(TBRA)housing program excessive costs that would result from
voluntary acquisition and optional subsidy(e.g.,Section 8 rental voucher replacing all such units within the
relocation activities(in a form often or certificate)provided that the renter is specified timeframe.HUD is also
called"buyouts")by using waivers also provided referrals to suitable, waiving the relocation assistance
related to acquisition and relocation available rental replacement dwellings requirements contained in section
requirements under the Uniform where the owner is willing to 104(d)of the HCD Act to the extent they
Relocation Assistance and Real Property participate in the TBRA program,and differ from those of the URA(42 U.S.C.
Acquisition Policies Act of 1970,as the period of authorized assistance is at 4601 et seq.).This change will simplify
amended,(42 U.S.C.4601 et seq.)(URA) least 42 months.Failure to grant the implementation while preserving
and the replacement of housing and waiver would impede disaster recovery statutory protections for persons
relocation assistance provisions under whenever TBRA program subsidies are displaced by projects assisted with
section 104(d)of the HCD Act.The available but funds for cash relocation CDBG disaster recovery grant funds.
Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices 52875
Iowa has indicated that an additional activities in the Action Plan may retain recipient through its employees,or
reason for these waivers is related to its this income and use it for additional through procurement contracts,or
decision to administer some buyouts disaster recovery activities.In addition, through loans or grants under
that will include in the same project this notice allows program income to agreements with subrecipients,or by
funds under this notice and FEMA the disaster recovery grant generated by one or more entities that are designated _
mitigation funding.The statutory activities undertaken directly by the by the chief executive officer of the
requirements of the URA are also state or its agent(s)to retain the original state.Unless a waiver provides
applicable to the administration of disaster recovery grant's alternative otherwise,activities made eligible under
FEMA assistance,and disparities in requirements and waivers and to remain section 105(a)(15)of the HCD Act,as
rental assistance payments for activities under the state's discretion until grant amended,may only be undertaken by
funded by HUD and that agency will closeout,at which point any program entities specified in that section,
thus be eliminated.FEMA is subject to income on hand or received whether the assistance is provided to
the requirements of the URA.Pursuant subsequently will become program such an entity from the state or from a
to this authority,FEMA requires that income to the state's annual CDBG unit of general local government.
rental assistance payments be calculated program.The alternative requirements 4.Consolidated Plan waiver.
on the basis of the amount necessary to provide all the necessary conforming Requirements at 42 U.S.C. 12706 and 24
lease or rent comparable housing for a changes to the program income CFR 91.325(a)(6),that housing activities
period of 42 months.HUD is also regulations. undertaken with CDBG funds be
subject to these requirements,but is also consistent with the strategic plan,are
covered by alternative relocation Certifications waived.Further,42 U.S.C. 5304(e),to
provisions authorized under 42 U.S.C. HUD is waiving the standard the extent that it would require HUD to
5304(d)(2)(A)(iii)and(iv)and certifications and substituting annually review grantee performance
implementing regulations at 24 CFR alternative certifications.The alternative under the consistency criteria,is also
42.350,These alternative relocation certifications are tailored to CDBG waived.These waivers apply only until
benefits,available to low-and moderate- disaster recovery grants and remove the time that the grantee first updates
income displacees opting to receive certifications and references that are the consolidated plan priorities
them in certain HUD programs,require redundant or appropriate to the annual following the disaster.
the calculation of similar rental CDBG formula program. 5.Citizen participation waiver and
assistance payments on the basis of 60 alternative requirement.Provisions of
months,rather than 42 months,thereby Applicable Rules,Statutes,Waivers, 42 U.S.C. 5304(a)(2)and(3),42 U.S.C.
creating a disparity between the and Alternative Requirements 12707,24 CFR 570,486,and 24 CFR
available benefits offered by HUD and Pre-Grant Process 91.115(b)with respect to citizen
FEMA(although not always an actual participation requirements are waived
1.General note.Prerequisites to a and replaced bythe requirements
cash difference).The waiver assures P q
grantee's receipt of CDBG disaster below.The streamlined requirements do
uniform and equitable treatment by q
allowing the URA benefits requirements recovery assistance include adoption of not mandate public hearings at either
to be the standard for assistance under a citizen participation plan;publication the state or local government level,but
this notice. of its proposed Action Plan for Disaster do require providing a reasonable
Recovery;public notice and comment; opportunity(at least 7 days)for citizen
Program Income and submission to HUD of an Action comment and ongoing citizen access to
A combination of CDBG provisions Plan for Disaster Recovery,including information about the use of grant
limits the flexibility available to the certifications.Except as described in funds.The streamlined citizen
states for the use of program income. this Notice,statutory and regulatory participation requirements for this grant
Prior to 2002,program income earned provisions governing the Community are:
on disaster recovery grants has usually Development Block Grant program for a.Before the grantee adopts the action
been program income in accordance states,including those at 42 U.S.C. 5301 plan for this grant or any substantial
with the rules of the regular CDBG et seq.and 24 CFR part 570,shall apply amendment to this grant,the grantee
program of the applicable state and has to the use of these funds. will publish the proposed plan or
lost its disaster grant identity,thus 2.Overall benefit waiver and amendment(including the information
losing use of the waivers and alternative requirement.The required in this Notice for an Action
streamlined alternative requirements. requirements at 42 U.S.C. 5301(c),42 Plan for Disaster Recovery).The manner
Also,the State CDBG program rule and U.S.C. 5304(b)(3)(A),and 24 CFR of publication(including prominent
law are designed for a program in which 570.484 that 70 percent of funds are for posting on the state,local,or other
the state distributes all funds rather than activities that benefit low-and relevant Web site)must afford citizens,
carrying out activities directly.The HCD moderate-income persons are waived to affected local governments and other
Act specifically provides for a local stipulate that at least 50 percent of interested parties a reasonable
government receiving CDBG grants from disaster recovery grant funds are for opportunity to examine the plan or
a state to retain program income if it activities that principally benefit low- amendment's contents.Subsequent to
uses the funds for additional eligible and moderate-income persons. publication,the grantee must provide a
activities under the annual CDBG 3.Direct grant administration by reasonable time period and method(s)
program.The HCD Act allows the state states and means of carrying out eligible (including electronic submission)for
to require return of the program income activities.Requirements at 42 U.S.C. receiving comments on the plan or
to the state under certain circumstances. 5306 are waived to the extent necessary substantial amendment.The grantee's
This notice waives the existing statute to allow a state to use its disaster plans to minimize displacement of
and regulations to give the states,in all recovery grant allocation directly to persons or entities and to assist any
circumstances,the choice of whether a carry out state-administered activities persons or entities displaced must be
local government receiving a eligible under this Notice.Activities published with the action plan.
distribution of CDBG disaster recovery eligible under this Notice may be b.In the action plan,each grantee will
funds and using program income for undertaken,subject to state law,by the specify its criteria for determining what
S2876 Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices
changes in the grantee's activities recovery needs resulting from the e.Method of distribution.The state's
constitute a substantial amendment to covered disasters that have not been method of distribution shall include
the plan.At a minimum,adding or addressed by insurance proceeds,other descriptions of the method of allocating
deleting an activity or changing the federal assistance or any other funding funds to units of local government and
planned beneficiaries of an activity will source; of specific projects the state will carry
constitute a substantial change.The b.The grantee's overall plan for out directly,as applicable.The
grantee may modify or substantially disaster recovery including: descriptions will include:
amend the action plan if it follows the (1)How the state will promote sound (1)When funds are to be allocated to
same procedures required in this Notice short-and long-term recovery planning units of local government,all criteria
for the preparation and submission of an at the state and local levels,especially used to select applications from local
Action Plan for Disaster Recovery.The land use decisions that reflect governments for funding,including the
grantee must notify HUD,but is not responsible flood plain management, relative importance of each criterion,
required to notify the public,when it removal of regulatory barriers to and including a description of how the
makes any plan amendment that is not reconstruction,and prior coordination disaster recovery grant resources will be
substantial. with planning requirements of other allocated among all funding categories
c.The grantee must consider all state and Federal programs and entities; and the threshold factors and grant size
comments received on the action plan (2)How the state will encourage limits that are to be applied;and
or any substantial amendment and construction methods that emphasize (2)When the state will carry out
submit to HUD a summary of those high quality,durability,energy activities directly,the projected uses for
comments and the grantee's response efficiency,sustainability,and mold the CDBG disaster recovery funds by
with the action plan or substantial resistance,including how the state will responsible entity,activity,and
amendment. promote enactment and enforcement of geographic area;
d.The grantee must make the action modern building codes and mitigation (3)Flow the method of distribution to
plan,any substantial amendments,and of flood risk where appropriate;and local governments or use of funds
all performance reports available to the (3)How the state will provide or described in accordance with the above
public.HUD recommends posting them encourage provision of adequate,flood- subparagraphs will result in eligible
on the Internet.In addition,the grantee resistant housing for all income groups uses of grant funds related to long-term
must make these documents available in that lived in the disaster affected areas recovery from specific effects of the
a form accessible to persons with prior to the incident date(s)of the disaster(s)or restoration of
disabilities and non-English-speaking applicable disaster(s),including a infrastructure;and
persons.During the term of this grant, description of the activities it plans to (4)Sufficient information so that
the grantee will provide citizens, undertake to address emergency shelter citizens,units of general local
affected local governments,and other and transitional housing needs of government and other eligible
interested parties reasonable and timely homeless individuals and families subgrantees or subrecipients will be able
access to information and records (including subpopulations),to prevent to understand and comment on the
relating to the action plan and the low-income individuals and families action plan and,if applicable,be able to
grantee's use of this grant. with children(especially those with prepare responsive applications to the
e.The grantee will provide a timely incomes below 30 percent of median) state.
written response to every citizen from becoming homeless,to help f.Required certifications (see the
complaint. Such response will be homeless persons make the transition to applicable Certifications section of this
provided within 15 working days of the permanent housing and independent Notice);and
receipt of the complaint,if practicable. living,and to address the special needs g.A completed and executed Federal
6.Modify requirement for of persons who are not homeless form SF-424.
consultation with local governments, identified in accordance with 24 CFR 8,Allow reimbursement for pre-
Currently,the statute and regulations 91.315(d); agreement costs.The provisions of 24
require consultation with affected units c.Monitoring standards and CFR 570.489(b)are applied to permit a
of local government in the non- procedures that are sufficient to ensure grantee to reimburse itself for otherwise
entitlement area of the state regarding program requirements,including non- allowable costs incurred on or after the
the state's proposed method of duplication of benefits,are met and that incident date of the covered disaster.
distribution.HUD is waiving 42 U.S.C. provide for continual quality assurance, 9.Clarifying note on the process for
5306(d)(2)(C)(iv),24 CFR 91.325(b),and investigation,and internal audit environmental release of funds when a
24 CFR 91.110,with the alternative functions,with responsible staff state carries out activities directly.
requirement that the state consult with reporting independently to the Governor Usually,a state distributes CDBG funds
all disaster-affected units of general of the state or,at a minimum,to the to units of local government and takes
local government,including any CDBG chief officer of the governing body of on HUD's role in receiving
entitlement communities,in any designated administering entity; environmental certifications from the
determining the use of funds. d.A description of the steps the state grant recipients and approving releases
7.Action Plan waiver and alternative will take to avoid or mitigate of funds.For this grant,HUD will allow
requirement.The requirements at 42 occurrences of fraud,abuse,and a state grantee to also carry out activities
U.S.C. 12705(a)(2),42 U.S.C. 5304(a)(1), mismanagement,especially with respect directly instead of distributing them to
42 U.S.C. 5304(m),42 U.S.C. to accounting,procurement,and other governments.According to the
5306(d)(2)(C)(iii),24 CFR 1003.604,and accountability,with a description of environmental regulations at 24 CFR
24 CFR 91.320 are waived for these how the state will provide for increasing 58.4,when a state carries out activities
disaster recovery grants.Each state must the capacity for implementation and directly,the state must submit the
submit to HUD an Action Plan for compliance of local government grant certification and request for release of
Disaster Recovery that describes: recipients,subrecipients,subgrantees, funds to HUD for approval.
a.The effects of the covered disasters, contractors,and any other entity 10,Duplication of benefits.In general,
especially in the most impacted areas responsible for administering activities 42 U.S.C. 5155 (section 312 of the
and populations,and the greatest under this grant;and Robert T.Stafford Disaster Assistance
Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices 52877
and Emergency Relief Act,as amended) subrecipient of a state,a unit of general (ii)Amounts generated by activities
prohibits any person,business concern, local government or a tribe that was eligible under section 105(a)(15)of the
or other entity from receiving financial generated from the use of CDBG funds, HCD Act and carried out by an entity
assistance with respect to any part of a except as provided in paragraph(a)(2)of under the authority of section 105(a)(15)
loss resulting from a major disaster as to this section.When income is generated of the HCD Act;
which he has received financial by an activity that is only partially (3)The state may permit the unit of
assistance under any other program or assisted with CDBG funds,the income general local government or tribe which
from insurance or any other source.The shall be prorated to reflect the receives or will receive program income
Supplemental Appropriations Act percentage of CDBG funds used(e.g.,a to retain the program income,subject to
stipulates that funds may not be used single loan supported by CDBG funds the requirements of paragraph(a)(3)(ii)
for activities reimbursable by or for and other funds;a single parcel of land of this section,or the state may require
which funds have been made available purchased with CDBG funds and other the unit of general local government or
by the Federal Emergency Management funds).Program income includes,but is tribe to pay the program income to the
Agency or by the Army Corps of not limited to,the following: state.
Engineers. (i)Proceeds from the disposition by (i)Program income paid to the state.
11.Waiver and alternative sale or long-term lease of real property Program income that is paid to the state
requirement for distribution to CDBG purchased or improved with CDBG or received by the state is treated as
metropolitan cities and urban counties. funds; additional disaster recovery CDBG
a.Section 5302(a)(7)of title 42,U.S.C. (ii)Proceeds from the disposition of funds subject to the requirements of this
(definition of"nonentitlement area") equipment purchased with CDBG funds; notice and must be used by the state or
and provisions of 24 CFR part 570 that (iii)Gross income from the use or distributed to units of general local
would prohibit a state from distributing rental of real or personal property government in accordance with the
CDBG funds to units of general local acquired by the unit of general local state's Action Plan for Disaster
theg entitlement CDBG program and toent regardless of their status n ent
government or tribe or subrecipient of a feasible,Recover program ame income shall maximum beused
state24 ,a tribe or a unit of general local P !�
CFR Indi570.80(a),to the etribes,are xtentlthat s�ch government with CDBG funds;less the add distributed
edwi before
thefrom the makes state
provisions limit the distribution of costs incidental to the generation of the Treasury,except as provided in
income;
funds to units of general local (iv)Gross income from the use or paragraph(b)of this section.
government located in entitlement areas (ii)Program income retained by a unit
rental of real property owned by a state,
and to state or Federally recognized of general local government or tribe.
tribe or the unit of general local
Indian tribes.The state is required A)Program income that is received
instead to distribute funds to the most government or a subrecipient of a state, and retained by the unit of general local
tribe or unit of general local
affected and impacted areas related to government,that was constructed or government or tribe before closeout of
the consequences of the covered the grant that generated the program
improved with CDBG funds,less the
disaster(s)without regard to a local costs incidental to the generation of the income is treated as additional disaster
government or Indian tribe status under recovery CDBG funds and is subject to
income;
any other CDBG program, the requirements of this notice.
b.Additionally,because a state (v)Payments of principal and interest (B)Program income that is received
on loans made using CDBG funds;
grantee under this appropriation may and retained by the unit of general local
carry out activities directly,HUD is (vi)Proceeds from the sale of loans government or tribe after closeout of the
with
CDBG funds;
applying the regulations at 24 CFR madegrant that generated the program
570.480(c)with respect to the basis for (vii)Proceeds from the sale of income,but that is used to continue the
HUD determining whether the state has obligations secured by loans made with disaster recovery activity that generated
failed to carry out its certifications so CDBG funds; the program income,is subject to the
that such basis shall be that the state has (viii)Interest earned on program waivers and alternative requirements of
failed to carry out its certifications in income pending disposition of the this notice.
compliance with applicable program income,but excluding interest earned (C)All other program income is
requirements.Also,24 CFR 570.494 on funds held in a revolving fund subject to the requirements of 42 U.S.C.
regarding timely distribution of funds is account; 5304(j)and subpart I of 24 CFR part 570.
waived.However,HUD expects each (ix)Funds collected through special (D)The state shall require units of
state grantee to expeditiously obligate assessments made against properties general local government or tribes,to
and expend all funds,including any owned and occupied by households not the maximum extent feasible,to
recaptured funds or program income, of low and moderate income,where the disburse program income that is subject
and to carry out activities in a timely special assessments are used to recover to the requirements of this notice before
manner, all or part of the CDBG portion of a requesting additional funds from the
12.Program income alternative public improvement;and state for activities,except as provided in
requirement.42 U.S.C. 5304(j)and 24 (x)Gross income paid to a state,tribe paragraph(b)of this section.
CFR 570.489(e)are waived to the extent or a unit of general local government or (b)Revolving funds.
necessary to allow additional flexibility subrecipient from the ownership (1)The state may establish or permit
in the administration of program interest in a for-profit entity acquired in units of general local government or
income.The requirements that are return for the provision of CDBG tribes to establish revolving funds to
retained are republished here for the assistance. carry out specific,identified activities.
convenience of the grantees. (2)"Program income"does not A revolving fund,for this purpose,is a
a.Program income. include the following: separate fund(with a set of accounts
(1)For the purposes of this subpart, (i)The total amount of funds which that are independent of other program
"program income"is defined as gross is less than$25,000 received in a single accounts)established to carry out
income received by a state,a unit of year that is retained by a unit of general specific activities which,in turn,
general local government,a tribe or a local government,tribe or subrecipient; generate payments to the fund for use in
52878 Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices
carrying out such activities.These 13a.Note on change to administration carries out directly by funding a
payments to the revolving fund are limitation.Up to five percent of the subrecipient;
program income and must be grant amount may be used for the state's a. 24 CFR 570.503,except that
substantially disbursed from the administrative costs.The provisions of specific references to 24 CFR parts 84
revolving fund before additional grant 42 U.S.C. 5306(d)and 24 CFR and 85 need not be included in
funds are drawn from the Treasury for 570.489(a)(1)(i)and(iii)will not apply subrecipient agreements.
revolving fund activities.Such program to the extent that they cap state b. 24 CFR 570.502(b),except that
income is not required to be disbursed administration expenditures,limit a HUD recommends but does not require
for non-revolving fund activities. state's ability to charge a de minimis application of the requirements of 24
(2)The state may also establish a application fee for grant applications for CFR part 84.
revolving fund to distribute funds to activities the state carries out directly, 16.Recordkeeping.Recognizing that
units of general local government or and require a dollar for dollar match of the state may carry out activities
tribes to carry out specific,identified state funds for administrative costs directly,24 CFR 570.490(b)is waived in
activities.A revolving fund,for this exceeding$100,000.HUD does not such a case and the following
purpose,is a separate fund (with a set waive 24 CFR 570.489(a)(3)to allow the alternative provision shall apply:state
of accounts that are independent of state to exceed the overall planning, records.The state shall establish and
other program accounts)established to management and administrative cap of maintain such records as may be
fund grants to units of general local 20 percent. necessary to facilitate review and audit
government to carry out specific by HUD of the state's administration of
activities which,in turn,generate Reporting CDBG disaster recovery funds under 24
payments to the fund for additional 14.Waiver of performance report and CFR 570.493.Consistent with applicable
grants to units of general local alternative requirement.The statutes,regulations,waivers and
government to carry out such activities. requirements for submission of a alternative requirements,and other
Program income in the revolving fund Performance Evaluation Report(PER) federal requirements,the content of
must be disbursed from the fund before pursuant to 42 U.S.C. 12708 and 24 CFR records maintained by the state shall be
additional grant funds are drawn from 91.520 are waived.The alternative sufficient to:enable HUD to make the
the Treasury for payments to units of requirement is that— applicable determinations described at
general local government which could a.Each grantee must submit its Action 24 CFR nation 570.493;make compliance
determination
be funded from the revolving fund. Plan for Disaster Recovery,including s for activities carried out
directly by the state;and show how
(3)A revolving fund established by performance measures,into HUD's Web- activities funded are consistent with the
either the state or unit of general local based Disaster Recovery Grant Reporting descriptions of activities proposed for
government shall not be directly funded (DRGR)system. (The signed funding in the action plan. For fair
or capitalized with grant funds. certifications and the SF-424 must be housing and equal opportunity
(c)Transfer of program income. submitted in hard copy.)As additional purposes,and as applicable,such
Notwithstanding other provisions of this detail about uses of funds becomes records shall include data on the racial,
notice,the state may transfer program available to the grantee,the grantee ethnic,and gender characteristics of
income before closeout of the grant that must enter this detail into DRGR,in persons who are applicants for,
generated the program income to its sufficient detail to serve as the basis for participants in,or beneficiaries of the
own annual CDBG program or to any acceptable performance reports. program.
annual CDBG-funded activities b.Each grantee must submit a 17.Change of use of real property.
administered by a unit of general local quarterly performance report,as HUD This waiver conforms the change of use
government or Indian tribe within the prescribes,no later than 30 days of real property rule to the waiver
state. following each calendar quarter, allowing a state to carry out activities
(d)Program income on hand at the beginning after the first full calendar directly.For purposes of this program,
state or its subrecipients at the time of quarter after grant award and continuing in 24 CFR 570.489(j),(j)(1),and the last
grant closeout by HUD and program until all funds have been expended and sentence of(j)(2),"unit of general local
income received by the state after such all expenditures reported.Each government"shall be read as"unit of
grant closeout shall be program income quarterly report will include general local government or state."
to the most recent annual CDBG information about the uses of funds 18.Responsibility for state review and
program grant of the state. during the applicable quarter including handling of noncompliance.This
13.Note that use of grant funds must (but not limited to)the project name, change conforms the rule with the
relate to the covered disaster(s).In activity,location,and national waiver allowing the state to carry out
addition to being eligible under 42 objective,funds budgeted,obligated, activities directly. 24 CFR 570.492 is
U.S.C. 5305(a)or this Notice and drawn down,and expended;the waived and the following alternative
meeting a CDBG national objective,the funding source and total amount of any requirement applies:The state shall
Supplemental Appropriations Act non-CDBG disaster funds;beginning make reviews and audits including on-
requires that activities funded under and ending dates of activities;and site reviews of any subrecipients,
this Notice must also be for necessary performance measures such as numbers designated public agencies,and units of
expenses related to disaster relief,long- of low-and moderate-income persons or general local government as may be
term recovery,and restoration of households benefiting.Quarterly reports necessary or appropriate to meet the
infrastructure in areas covered by a to HUD must be submitted using HUD's requirements of section 104(e)(2)of the
declaration of major disaster under title Web-based DRGR system and,within 3 HCD Act,as amended,as modified by
IV of the Robert T.Stafford Disaster days of submission,posted on the this Notice.In the case of
Relief and Emergency Assistance Act grantee's official Internet site open to noncompliance with these
(42 U.S.C. 5121 et seq.)as a result of the the public. requirements,the state shall take such
recent natural disaster or disasters listed 15.Use of subrecipients.The actions as may be appropriate to prevent
in this Notice for which the state following alternative requirement a continuance of the deficiency,mitigate
received a funding allocation. applies for any activity that a state any adverse effects or consequences and
Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices 52879
prevent a recurrence.The state shall paying rents in excess of 30 percent of exceptions,no new structure may be
establish remedies for noncompliance household income without erected on the property and no
by any designated public agencies or demonstrable hardship,rental subsequent application for Federal
units of general local governments and assistance payments to reduce tenant disaster assistance may be made for any
for its subrecipients. costs to 30 percent would not be purpose.The acquiring entity may want
19.Housing-related eligibility required.Before using this waiver,the to lease such property to adjacent
waivers. 42 U.S.C. 5305(a)is waived to state must establish a definition of property owners or other parties for
the extent necessary to allow "demonstrable hardship." compatible uses in return for a
homeownership assistance for e.The requirements of sections 204 maintenance agreement.Although
households with up to 120 percent of and 205 of the URA,and 49 CFR Federal policy encourages leasing rather
area median income and downpayment 24.402(b)are waived to the extent than selling such property,the property
assistance for up to 100 percent of the necessary to permit a grantee to meet all may be sold.In all cases,a deed
down payment(42 U.S.C. or a portion of a grantee's replacement restriction or covenant running with the
5305(a)(24)(D))and to allow new housing financial assistance obligation land must require that the property be
housing construction. to a displaced renter by offering rental dedicated and maintained for
20.Waiver and modification of the housing through a tenant-based rental compatible uses in perpetuity.
anti-pirating clause to permit assistance assistance(TBRA)housing program c.Future Federal assistance to owners
to help a business return.42 U.S.C. subsidy(e.g.,Section 8 rental voucher remaining in floodplain.
5305(h)and 24 CFR 570.482 are hereby or certificate)provided that the renter is (1)Section 582 of the National Flood
waived only to allow the grantee to also provided referrals to suitable, Insurance Reform Act of 1994,as
provide assistance under this grant to available rental replacement dwellings amended,(42 U.S.C. 5154(a))prohibits
any business that was operating in the where the owner is willing to flood disaster assistance in certain
covered disaster area before the incident participate in the TBRA program,and circumstances.In general,it provides
date of the applicable disaster,and has the period of authorized assistance is at that no Federal disaster relief assistance
since moved in whole or in part from least 42 months. made available in a flood disaster area
the affected area to another state or to f.The requirements of section 202(b) may be used to make a payment
a labor market area within the same of the URA and 49 CFR 24.302 are (including any loan assistance payment)
state to continue business. waived to the extent that they require a to a person for repair,replacement,or
grantee to offer a person displaced from restoration for damage to any personal,
Relocation Requirements a dwelling unit the option to receive a residential,or commercial property,if
21.Waiver of one-for-one replacement "moving expense and dislocation that person at any time has received
of units damaged by disaster. allowance"based on the current Federal flood disaster assistance that
a.One-for-one replacement schedule of allowances prepared by the was conditional on the person first
requirements at 42 U.S.C. 5304(d)(2) Federal Highway Administration, having obtained flood insurance under
and(d)(3),and 24 CFR 42.375(a)are provided that the grantee establishes applicable Federal law and the person
waived for low-and moderate-income and offers the person a moving expense has subsequently failed to obtain and
dwelling units(1)damaged by the and dislocation allowance under a maintain flood insurance as required
disaster, (2)for which CDBG funds are schedule of allowances that is under applicable Federal law on such
used for demolition,and(3)which are reasonable for the jurisdiction and takes property. (Section 582 is self-
not suitable for rehabilitation. into account the number of rooms in the implementing without regulations.)This
b.Relocation assistance requirements displacement dwelling,whether the means that a grantee may not provide
at 42 U.S.C. 5304(d)(2)(A),and 24 CFR person owns and must move the disaster assistance for the above-
42.350 are waived to the extent they furniture,and,at a minimum,the kinds mentioned repair,replacement,or
differ from those of the URA and its of expenses described in 49 CFR 24.301. restoration to a person that has failed to
implementing regulations at 49 CFR part 22.Notes on flood buyouts:a. meet this requirement.
24 following waivers to activities Payment of pre-flood values for buyouts. (2)Section 582 also implies a
involving buyouts and other activities HUD disaster recovery state grant responsibility for a grantee that receives
covered by the URA and related to recipients and Indian tribes have the CDBG disaster recovery funds or that,
disaster recovery housing activities discretion to pay pre-flood or post-flood under 42 U.S.C. 5321,designates
assisted by the funds covered by this values for the acquisition of properties annually appropriated CDBG funds for
notice and included in an approved located in a flood way or floodplain.In disaster recovery.That responsibility is
Action Plan. using CDBG disaster recovery funds for to inform property owners receiving
c.The requirements at 49 CFR such acquisitions,the grantee must disaster assistance that triggers the flood
24.101(b)(2)(i)—(ii)are waived to the uniformly apply whichever valuation insurance purchase requirement that
extent that they apply to an arm's length method it chooses. they have a statutory responsibility to
voluntary purchase carried out by a b.Ownership and maintenance of notify any transferee of the requirement
person that does not have the power of acquired property.Any property to obtain and maintain flood insurance,
eminent domain,in connection with the acquired with disaster recovery grants and that the transferring owner may be
purchase and occupancy of a principal funds being used to match FEMA liable if he or she fails to do so.These
residence by that person. Section 404 Hazard Mitigation Grant requirements are described below.
d.The requirements at sections 204(a) Program funds is subject to section (3)Duty to notify.In the event of the
and 206 of the URA,49 CFR 24.2, 404(b)(2)of the Robert T.Stafford transfer of any property described in
24.402(b)(2)and 24.404 are waived to Disaster Relief and Emergency paragraph d.,the transferor shall,not
the extent that they require the state to Assistance Act,as amended,which later than the date on which such
provide URA financial assistance requires that such property be dedicated transfer occurs,notify the transferee in
sufficient to reduce the displaced and maintained in perpetuity for a use writing of the requirements to:
person's post-displacement rent/utility that is compatible with open space, (i)Obtain flood insurance in
cost to 30 percent of household income. recreational,or wetlands management accordance with applicable Federal law
To the extent that a tenant has been practices.In addition,with minor with respect to such property,if the
52880 Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices
property is not so insured as of the date of the Code of Federal Regulations is i.The state certifies that it is
on which the property is transferred; waived.Each state must make the complying with each of the following
and following certifications prior to criteria:
(ii)Maintain flood insurance in receiving a CDBG disaster recovery (1)Funds will be used solely for
accordance with applicable Federal law grant: necessary expenses related to disaster
with respect to such property. Such a.The state certifies that it will relief,long-term recovery,and
written notification shall be contained affirmatively further fair housing,which restoration of infrastructure in areas
in documents evidencing the transfer of means that it will conduct an analysis covered by a declaration of major
ownership of the property. to identify impediments to fair housing disaster under title IV of the Robert T.
(4)Failure to notify.If a transferor choice within the state,take appropriate Stafford Disaster Relief and Emergency
fails to provide notice as described actions to overcome the effects of any Assistance Act(42 U.S.C. 5121 et seq.)
above and,subsequent to the transfer of impediments identified through that as a result of recent natural disasters,
the property: analysis,and maintain records reflecting (2)With respect to activities expected
(i)The transferee fails to obtain or the analysis and actions in this regard. to be assisted with CDBG disaster
maintain flood insurance,in accordance (See 24 CFR 570.487(b)(2).) recovery funds,the action plan has been
with applicable Federal law,with b.The state certifies that it has in developed so as to give the maximum
respect to the property; effect and is following a residential anti- feasible priority to activities that will
(ii)The property is damaged by a displacement and relocation assistance benefit low-and moderate-income
flood disaster;and plan in connection with any activity families.
(iii)Federal disaster relief assistance assisted with funding under the CDBG (3)The aggregate use of CDBG disaster
is provided for the repair,replacement, program. recovery funds shall principally benefit
or restoration of the property as a result c.The state certifies its compliance low-and moderate-income families in a
of such damage,the transferor shall be with restrictions on lobbying required manner that ensures that at least 50
required to reimburse the Federal by 24 CFR part 87,together with percent of the amount is expended for
Government in an amount equal to the disclosure forms,if required by part 87. activities that benefit such persons
amount of the Federal disaster relief d.The state certifies that the Action during the designated period.
assistance provided with respect to the Plan for Disaster Recovery is authorized (4)The state will not attempt to
property. under state law and that the state,and recover any capital costs of public
d.The notification requirements any entity or entities designated by the improvements assisted with CDBG
apply to personal,commercial,or state,possesses the legal authority to disaster recovery grant funds,by
residential property for which Federal carry out the program for which it is assessing any amount against properties
disaster relief assistance made available seeking funding,in accordance with owned and occupied by persons of low-
in a flood disaster area has been applicable HUD regulations and this and moderate-income,including any fee
provided,prior to the date on which the Notice. charged or assessment made as a
property is transferred,for repair, e.The state certifies that it will condition of obtaining access to such
replacement,or restoration of the comply with the acquisition and public improvements,unless (A)
property,if such assistance was relocation requirements of the Uniform disaster recovery grant funds are used to
conditioned upon obtaining flood Relocation Assistance and Real Property pay the proportion of such fee or
insurance in accordance with applicable Acquisition Policies Act of 1970,as assessment that relates to the capital
Federal law with respect to such amended,and implementing regulations costs of such public improvements that
property. at 49 CFR part 24,except where waivers are financed from revenue sources other
e.The term"Federal disaster relief or alternative requirements are provided than under this title;or(B)for purposes
assistance"applies to HUD or other for this grant. of assessing any amount against
Federal assistance for disaster relief in f.The state certifies that it will properties owned and occupied by
"flood disaster areas."The term"flood comply with section 3 of the Housing persons of moderate income,the grantee
disaster area"is defined in section and Urban Development Act of 1968(12 certifies to the Secretary that it lacks
582(d)(2)of the National Flood U.S.C. 1701u),and implementing sufficient CDBG funds(in any form)to
Insurance Reform Act of 1994,as regulations at 24 CFR part 135. comply with the requirements of clause
amended,to include an area receiving a g.The state certifies that it is (A).
Presidential declaration of a major following a detailed citizen j.The state certifies that the grant will
disaster or emergency as a result of participation plan that satisfies the be conducted and administered in
flood conditions. requirements of 24 CFR 91.115 (except conformity with title VI of the Civil
23. Information collection approval as provided for in notices providing Rights Act of 1964(42 U.S.C. 2000d)
note. HUD has approval for information waivers and alternative requirements for and the Fair Housing Act(42 U.S.C.
collection requirements in accordance this grant),and that each unit of general 3601-3619)and implementing
with the Paperwork Reduction Act of local government that is receiving regulations.
1995 (44 U.S.C. 3501-3520)under OMB assistance from the state is following a k.The state certifies that it has and
control number 2506-0165.hi detailed citizen participation plan that that it will require units of general local
accordance with the Paperwork satisfies the requirements of 24 CFR government that receive grant funds to
Reduction Act,HUD may not conduct or 570.486(except as provided for in certify that they have adopted and are
sponsor,nor is a person required to notices providing waivers and enforcing:
respond to,a collection of information alternative requirements for this grant). (1)A policy prohibiting the use of
unless the collection displays a valid h.The state certifies that it has excessive force by law enforcement
control number. consulted with affected units of local agencies within its jurisdiction against
government in counties designated in any individuals engaged in non-violent
Certifications covered major disaster declarations in civil rights demonstrations;and
24.Certifications for state the nonentitlement,entitlement and (2)A policy of enforcing applicable
governments,waiver and alternative tribal areas of the state in determining state and local laws against physically
requirement.Section 91,325 of title 24 the method of distribution of funding; barring entrance to or exit from a facility
Federal Register/Vol. 73, No. 177/Thursday, September 11, 2008/Notices 52881 •
or location that is the subject of such scheduled by calling the Regulations leased for solid waste disposal purposes
non-violent civil rights demonstrations Division at 202-708-3055 (this is not a since 1971.The land was classified for
within its jurisdiction. toll-free number),Hearing-or speech- lease under the provisions of the R&PP
1.The state certifies that each state impaired individuals may access this Act.Before the conveyance can occur,
grant recipient or administering entity number through TTY by calling the toll- the land must be classified for
has the capacity to carry out disaster free Federal Information Relay Service conveyance under the provisions of the
recovery activities in a timely manner, at 800-877-8339. R&PP Act.Additional detailed
or the state has a plan to increase the Dated:September a,2008. information pertaining to this
capacity of any state grant recipient or application,plan of development,and
Roy A Bernardi,
administering entity who lacks such site plan is in case file W-27997,
ai Deputy Secretary.
capacity.
located in the BLM Cody Field Office at
m.The state certifies that it will not [FR Doc.E8-21092 Filed 9-10-08;8:45 am) the above address.
use CDBG disaster recovery funds for BILLING CODE 4210-67-P The land is not needed for any
any activity in an area delineated as a Federal purpose.The conveyance is
special flood hazard area in FEMA's consistent with the Cody Resource
most current flood advisory maps unless DEPARTMENT OF THE INTERIOR Management Plan dated November 8,
it also ensures that the action is 1990,and would be in the public
designed or modified to minimize harm Bureau of Land Management interest.The patent,when issued,will
to or within the floodplain in [WY-920-1430—FR;WYW-27997;8-08807] be subject to the provisions of the R&PP
accordance with Executive Order 11988 Act and applicable regulations of the
and 24 CFR part 55. Notice of Realty Action: Recreation Secretary of the Interior,and will
n.The state certifies that it will and Public Purposes Act Classification contain the following reservations to the
comply with applicable laws. of Public Lands in Park County,WY United States:
1.A right-of-way thereon for ditches
Duration of Funding AGENCY:Bureau of Land Management, or canals constructed by the authority of
Availability of funds provisions in 31 Interior. the United States,Act of August 30,
U.S.C. 1551-1557,added by section ACTION:Notice. 1890(43 U.S.C.945);and
1405 of the National Defense 2.All minerals,together with the right
Authorization Act for Fiscal Year 1991 SUMMARY:The Bureau of Land to prospect for,mine,and remove such
(Pub.L. 101-510),limit the availability Management(BLM)has examined and deposits from the same under applicable
of certain appropriations for found suitable for classification for law and such regulations as the
expenditure.This limitation may not be conveyance under the provisions of the Secretary of the Interior may prescribe.
waived.However,the Supplemental Recreation and Public Purposes(R&PP) The patent will be subject to all valid
Appropriations Act for these grants Act,as amended,approximately 90.00 existing rights documented on the
directs that these funds be available acres of public land in Park County, official public land records at the time
until expended unless,in accordance Wyoming.Park County proposes to use of patent issuance.
with 31 U.S.C. 1555,the Department the land for a sanitary landfill. Classification Comments:Interested
determines that the purposes for which DATES:Interested parties may submit parties may submit comments involving
the appropriation has been made have comments regarding the proposed the suitability of the land for municipal
been carried out and no disbursement conveyance or classification of the lands and recreation uses.Comments on the
has been made against the appropriation until October 27,2008. classification are restricted to whether
for two consecutive fiscal years.In such ADDRESSES:Send written comments to the land is physically suited for the
case,the Department shall close out the the Field Manager,Cody Field Office, proposal,whether the use will
grant prior to expenditure of all funds. P.O.Box 518,Cody,Wyoming 82414. maximize the future use or uses of the
Catalogof Federal Domestic Assistance FOR FURTHER INFORMATION CONTACT: land,whether the use is consistent with
Mike Stewart,Field Manager,Bureau of local planning and zoning,or if the use
The Catalog of Federal Domestic Land Management,Cody Field Office,at is consistent with State and Federal
Assistance numbers for the disaster programs.
(307)578-5915. Application Comments:Interested
recovery grants under this Notice are as PP
SUPPLEMENTARY INFORMATION:In parties maysubmit comments regarding
follows: 14.219; 14.228. g g
accordance with Section 7 of the Taylor the specific use proposed in the
Finding of No Significant Impact Grazing Act,(43 U.S.C. 315f),and application and plan of development,
A Finding of No Significant Impact Executive Order No.6910,the following whether the BLM followed proper
(FONSI)with respect to the described public land in Park County, administrative procedures in reaching
environment has been made in Wyoming,has been examined and the decision to convey under the R&PP
accordance with HUD regulations at 24 found suitable for classification for lease Act,or any other factor not directly
CFR part 50,which implement section and conveyance under the provisions of related to the suitability of the land for
102(2)(C)of the National Environmental the R&PP Act,as amended(43 U.S.C. R&PP use.
Policy Act of 1969(42 U.S.C.4332).The 869 et seq.): Confidentiality of Comments:Before
FONSI is available for public inspection Sixth Principal Meridian,Wyoming including your address,phone number,
between 8 a.m.and 5 p.m.weekdays in e-mail address,or other personal
the Regulations Division,Office of T.52 N.,R.101 W., identifying information in your
General Counsel,Department of Sec.20,W3/:NWh/4,Nl/2Nl/ZNEl SW1/,. comment,you should be aware that
Housing and Urban Development,Room The land described contains 90.00 acres, your entire comment—including your
10276,451 7th Street,SW.,Washington, more or less. personal identifying information—may
DC 20410-0500.Due to security In accordance with the R&PP Act, be made publicly available at any time.
measures at the HUD Headquarters Park County filed an application to While you can ask us in your comment
building,an advance appointment to purchase the above-described 90.00 to withhold your personal identifying
review the docket file must be acres of public land which has been information from public review,we
Attachment E
Requirements for Housing Activities -
CDBG (Disaster Recovery) Supplemental Funds
• These requirements pertain only to the $35 million slated for housing
activities that will be accomplished under the 1st CDBG Supplemental.
• Housing activities will be limited to the activities described in the IDED's
Disaster Recovery Action Plan: 1) Housing Repair/ Rehabilitation; 2)
Homebuyer Assistance; and 3) Interim Mortgage Assistance. Housing
Repair / Rehabilitation and Homebuyer Assistance are broken down into
two sub-activities — one serving only low and moderate income (LMI) (at or
below 80% of MFI), and one serving those above 80% up to 100% of MFI.
Effectively, there are five housing activities.
• All activities undertaken must meet a CDBG National Objective.
• For purposes of the CDBG Supplemental funds, all technical services
related costs (also known as soft costs; carrying costs; direct
administration costs) performed by the CDBG Entitlement Cities (direct
recipient or indirect recipient) or by a Council of Governments (lead COG
or otherwise) will be considered as "project delivery costs". Project
delivery costs, although administrative in nature, must be considered as
project costs attributable to the housing activity undertaken and accounted
for in this manner.
Project delivery costs need to be accounted for and billed for on an actual
cost basis. Overall, project delivery costs need to be reasonable.
Presumably, city staff or COG staff will perform all of these functions. If so,
no procurement for these services will be required. If a city or a COG
contracts for these services, the federal procurement requirements and
contracting requirements apply.
• The lead COG will be considered as a sub-recipient of the lead county (i.e.,
an extension of that local government).
• This 1st CDBG Supplemental Funds allocation dedicated to housing will be
limited to serving only persons or households whose incomes are at or
below the median income limits as established by HUD (100% of HUD MFI,
by County and by household size).
• Applicants at the local level, in order to be eligible for assistance, must
have applied for and received FEMA housing assistance
• No duplication of benefits will be allowed. Prior to assisting homeowners
or homebuyers with CDBG Supplemental Funds, the recipient will need to
determine and verify any monies received from any other federal or state
financial resources providing disaster recovery funding and any insurance
settlement payments providers to your homeowner or homebuyer, and
adjust the project scope and CDBG Supplemental Funds accordingly.
• Any Federal Flood Insurance settlement received by a homeowner or
homebuyer seeking assistance must be deducted from any CDBG
Supplemental Funds assistance provided. Again, no duplication of benefits
will be allowed.
• No rehabilitation benefits to structures located within the 100-year
floodplain or a designated buy-out area will be allowed, unless the activity
meets all HUD environmental requirements and the property is insured by
Federal Flood Insurance.
• No new construction for homebuyer assistance will be allowed to be
constructed within the 100-year floodplain or a designated buy-out area,
unless the activity meets all HUD environmental requirements and the
property is insured by Federal Flood Insurance.
• Activity specific requirements:
Housing Repair / Rehabilitation
• Beneficiaries of this activity must be the owner of record of the property to
be assisted (ownership type is limited to fee simple title or 99-year
leasehold ownership). Absolutely no land sales contracts.
• Housing repair / rehabilitation assistance will be allowed only on the
beneficiary's primary residence.
• Use the HUD definition of "single-family" dwelling unit.
• Assistance to homeowners will be limited to forgivable loans. Forgivable
loans under this activity must be a 5-year receding forgivable loan.
Forgivable loans must be secured as a mortgage lien on the assisted
property. Payback will be required if the assisted property owner sells
vacates, rents out or abandons the property within the 5 year period.
• Only the actual CDBG Supplemental Funds-funded rehabilitation costs
incurred and/or the lead hazard reduction or lead hazard abatement costs
incurred need to be secured with the forgivable loan. Project delivery costs
incurred need not be included in, or secured by, the mortgage lien.
• All units to be repaired or rehabilitated must be both financially and
structurally feasible to rehabilitate. Recipients should establish parameters
for making this determination.
• All units to be repaired or rehabilitated must meet all applicable property
standards upon completion.
The CDBG Entitlement Cities and communities with populations at or
greater than 15,000 need to comply with your own locally adopted and
enforced codes, standards and ordinances.
For the remainder of the State, in the absence of any locally adopted and
enforced codes or standards, the requirements of Iowa's Minimum Housing
Rehabilitation Standards apply.
• It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner
that results in green-built, sustainable single-family structures. For those
communities conducting single-family rehabilitation activities that are
subject to Iowa's Minimum Housing Rehabilitation Standards, the
applicable "green" requirements are contained therein.
For all communities not subject to Iowa's Minimum Housing Rehabilitation
Standards, the IDED asks that you incorporate the "green" design
requirements of Iowa's Minimum Housing Rehabilitation Standards into
your individual project specifications /work write-ups, all assisted units.
• All units constructed prior to 1-1-78 must be made at least temporarily lead
safe.
Follow all Federal Lead Safe Housing requirements. The IDED is waiving
it's policy that requires the temporary relocation of the occupants of
assisted housing during any / all interior rehabilitation that disturbs painted
surfaces, known or presumed to be lead based paint and/or during any / all
interior lead hazard reduction activity. Instead, follow all Federal
requirements regarding temporary relocation.
• The maximum per unit assistance level (CDBG Supplemental funds) for
Housing Repair / Rehabilitation serving 80% MFI or below is $50,000. The
maximum per unit assistance level (CDBG Supplemental funds) for
Housing Repair / Rehabilitation serving 81% MFI to 100% MFI is $35,000. In
both cases, the administrative entity will be allowed actual project delivery
costs, not to exceed $10,000.
Homebuyer Assistance
• This activity is available only to individuals or households whose principal
residence will eventually be bought out (i.e., the applicant must have a firm
commitment for buy-out assistance). The timing of the homebuyer
assistance must be coordinated with the buy-out assistance.
• Homebuyer assistance under the CDBG Supplemental Funds are not
limited to First-time Homebuyers.
• Types of Homebuyer Assistance activities that may be undertaken with the
CDBG Supplemental Funds are:
1) Rehabilitation in Support of Homeownership;
2) Acquisition Assistance, including: downpayment assistance;
buyer's side closing costs; mortgage buy-down (principal
reduction); combinations of the above; and
3) Combinations of both rehabilitation and acquisition
assistance.
• 100% of the downpayment required with a purchase may be paid for with
CDBG Supplemental Funds, however, the downpayment requirement
cannot exceed 20% of the purchase price or appraised Fair Market Value
(FMV), whichever is less.
• Homebuyer Assistance must be provided as a 5-year receding forgivable
loan secured by a mortgage lien on the assisted (purchased) property.
• Only the actual CDBG Supplemental Funds-funded rehabilitation costs
incurred and/or the lead hazard reduction or lead hazard abatement costs
incurred need to be secured with the forgivable loan. Project delivery costs
incurred need not be included in, or secured by, the mortgage lien.
• Recipients shall require the beneficiaries of their homebuyer assistance
activities to use a principal loan product that meets all of the following
criteria:
1) With the exception of Habitat for Humanity principal loan
products, the principal loan must be the only repayable loan in
all individual homebuyer assistance projects
2) The CDBG Supplemental funds may be recorded in junior
position to the principal loan, but must be recorded in senior
position to all other funding in all homebuyer assistance
projects. Additionally, recipients of CDBG Supplemental
homebuyer assistance activities must maintain their
assistance security agreements in the above-stated recording
position throughout the 5-year period, and will not be allowed
to subordinate the required recording position to any other
forms of assistance, such as home equity loans.
3) Any mortgage lending entity's principal mortgage loan
products may be used provided they meet all of the following
minimum requirements:
a) Loan interest rates cannot be higher than two percentage
points above the federal prime interest rate at the time of
loan closing;
b) Loan terms will include an 80% or higher Loan-to-Value
ratio (LVR);
c) No less than a 15-year, fully amortized, fixed-rate mortgage
may be used; and
d) No adjustable rate mortgages or balloon payment types of
mortgages will be allowed.
• The maximum per unit assistance level (CDBG Supplemental funds) for
Homebuyer Assistance serving 80% MFI or below is $50,000. The maximum
per unit assistance level (CDBG Supplemental funds) for Homebuyer
Assistance serving 81°1 MFI to 100% MFI is $35,000. In both cases, the
administrative entity will be allowed actual project delivery costs, not to
exceed $10,000.
• All existing units to be purchased in need of rehabilitation must be both
structurally and financially feasible to rehabilitate.
• All existing units to be purchased in need of rehabilitation must meet all
applicable property standards upon completion.
The CDBG Entitlement Cities and communities with populations at or
greater than 15,000 need to comply with your own locally adopted and
enforced codes, standards and ordinances.
For the remainder of the State, in the absence of any locally adopted and
enforced codes or standards, the requirements of Iowa's Minimum Housing
Rehabilitation Standards apply.
• It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner
that results in green-built, sustainable single-family structures. For those
communities conducting single-family rehabilitation activities in support of
homeownership that are subject to Iowa's Minimum Housing Rehabilitation
Standards, the applicable "green" requirements are contained therein.
For all communities not subject to Iowa's Minimum Housing Rehabilitation
Standards, the IDED asks that you incorporate the "green" design
requirements of Iowa's Minimum Housing Rehabilitation Standards into
your individual project specifications I work write-ups, all assisted units.
• All units constructed prior to 1-1-78 must be made at least temporarily lead
safe.
Follow all Federal Lead Safe Housing requirements. The IDED is waiving
it's policy that requires the temporary relocation of the occupants of
assisted housing during any I all interior rehabilitation that disturbs painted
surfaces, known or presumed to be lead based paint and/or during any I all
interior lead hazard reduction activity. Instead, follow all Federal
requirements regarding temporary relocation.
Interim Mortgage Assistance
• This assistance is available to an eligible resident whose disaster-affected
home is proposed by a municipality or county, or is located in an area
proposed by a municipality or county, to the Iowa homeland security and
emergency management division for property acquisition under the hazard
mitigation grant program set forth in chapter 29C of the Iowa Code (or any
other comparable program implemented in whole or in part to assist in
recovery from the natural disasters of 2008.)
• Interim mortgage assistance may be used to maintain mortgages (payment
of principal, interest, property taxes and hazard insurance).
• The maximum interim mortgage assistance allowable per assisted person
or household will be $1,000 per month for a period not to exceed 3 months.
• Interim mortgage assistance may be provided as a grant.
O WA
changing
October 23, 2008 111\1)*(9)1
0,, E
The Honorable Timothy Hurley
Mayor, City of Waterloo
City Hall— 715 Mulberry St.
Waterloo, IA 50703
SUBJECT: Contract Number 08-DRH-011—Amendment Number 1
Dear Mr. Hurley:
The Iowa Department of Economic Development (IDED) hereby amends the above referenced
Community Development Block Grant (CDBG)/Housing Disaster Recovery Program contract by
substituting a revised Attachment A and a revised Attachment E.
This amendment is initiated by the Iowa Department of Economic Development.
The contract by and between the Iowa Department of Economic Development ("Department or
IDED") and Dubuque County ("Recipient") is amended as of the date of this letter as follows:
AMEND each Article in the Contract that refers to "Attachment A,Program Description and Budget" to
"Attachment A,Program Description and Budget,revised as of October 23,2008."
AMEND each Article in the Contract that refers to "Attachment E, Requirements for Housing
Activities —CDBG (Disaster Recovery) Supplemental Funds" to "Attachment E, Requirements for
Housing Activities — CDBG (Disaster Recovery) Supplemental Funds,revised as of October 17,
2008."
Except as otherwise revised above, the terms, provisions, and conditions of the Contract remain
unchanged and are in full force and effect.
PLEASE FILE THIS AMENDMENT MATERIAL WITH YOUR ORIGINAL CONTRACT
DOCUMENT so that you will have current information on the status of your contract. If your
amendment includes a budget change,be sure that is reflected on your next"Request for
Payment/Activity Status Form". Please contact me at (515) 242-4753 if you have any questions.
Sincerely,
�Gvrvc.J
Julie Lunn
Project Manager
Attachment(2)
cc: Rudy D. Jones, C.D. Director
Fiscal
File (JL)
Chester J.Culver,Governor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT Patty Judge,Lieutenant Governor
Mike Tramontina,Director 200 East Grand Avenue,Des Moines,Iowa USA 50309 Phone:515.242.4700 Fax:515.242.4909 www.iowalifechanging.com
IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET
ATTACHMENT A DATE: Oct.23,2008
To be filled in by IDED
Name of Recipient: City of Waterloo Original
Amendment# 1
Contract Number: 08-DRH-011 Proj Mgr Sign jml
NATIONAL •
ACTIVITY DESCRIPTION PERFORMANCE TARGETS/MEASURE BUDGET
. OBJECTIVE
Activity 1: 971 Housing Repair/Rehabilitation
for families<80%LMI
8 UNITS LMI $508,565
$60,000 per unit maximum
Activity 2: 972 Housing Repair/Rehabilitation
for families 80- 100%LMI
1 UNITS UN $60,000
$60,000 per unit maximum
Activity 3: 981 Homebuyer Assistance
for families<80%LMI
0 UNITS LMI $0
$60,000 per unit maximum
Activity 4:982 Homebuyer Assistance
for families 80-100%LMI
0 UNITS UN $0
$60,000 per unit maximum
Activity 5:991 Interim Mortgage Assistance
for families 0-100%LMI,
9 HOUSEHOLDS UN $29,925
$3,000 per household maximum
Activity 6:
$0
Activity 7:
$0
Activity 8:
$0
Activity 9:
$0
GENERAL ADMINISTRATION 181 $12,600
TOTAL BUDGET: $611,090
G:\BCF\Recipients\Disaster\2008 Disaster Relief Housing\Waterloo\AttachAWaterloo 08-DRH-011Amend1
Revised October 17, 2008
Attachment E
Requirements for Housing Activities -
CDBG (Disaster Recovery) Supplemental Funds
• These requirements pertain only to the $35 million slated for single-family
housing activities that will be accomplished under the 1st CDBG
Supplemental.
• Housing activities will be limited to the activities described in the IDED's
Disaster Recovery Action Plan: 1) Housing Repair/ Rehabilitation; 2)
Homebuyer Assistance; and 3) Interim Mortgage Assistance.
Housing Repair/ Rehabilitation and Homebuyer Assistance are broken
down into two sub-activities — one serving only low and moderate income
(LMI) persons or households (at or below 80% of MFI), and one serving
those above 80% up to 100% of MFI. Effectively, there are five housing
activities.
• All activities undertaken must meet a CDBG National Objective.
• For purposes of the CDBG Supplemental funds, all technical services
related costs (also known as soft costs; carrying costs; direct
administration costs) performed by the CDBG Entitlement Cities (direct
recipient or indirect recipient) or by a Council of Governments (lead COG
or otherwise) will be considered as "project delivery costs". Project
delivery costs, although administrative in nature, must be considered as
project costs attributable to the housing activity undertaken and accounted
for in this manner.
Project delivery costs need to be accounted for and billed for on an actual
cost basis. Overall, project delivery costs need to be reasonable.
Presumably, city staff or COG staff will perform all of these functions. If so,
no procurement for these services will be required. If a city or a COG
contracts for these services, the federal procurement requirements and
contracting requirements apply.
• The lead COG will be considered as a sub-recipient of the lead county (i.e.,
an extension of that local government).
• This 1st CDBG Supplemental Funds allocation dedicated to housing will be
limited to serving only persons or households whose incomes are at or
below the median income limits as established by HUD (100% of HUD MFI,
by County and by household size).
• Applicants at the local level, in order to be eligible for assistance, must
have applied for and received FEMA housing assistance.
• No duplication of benefits will be allowed. Prior to assisting homeowners
or homebuyers with CDBG Supplemental Funds, the recipient will need to
determine and verify any monies received from any other federal or state
financial resources providing disaster recovery funding and any insurance
settlement payments provided to your homeowner or homebuyer, and
adjust the project scope and CDBG Supplemental Funds accordingly.
• Any Federal Flood Insurance settlement received by a homeowner or
homebuyer seeking assistance must be deducted from any CDBG
Supplemental Funds assistance provided. Again, no duplication of benefits
will be allowed.
• No rehabilitation benefits to structures located within the 100-year
floodplain or a designated buy-out area will be allowed, unless the activity
meets all HUD environmental requirements, applicable design standards,
and the property is insured by Federal Flood Insurance.
• No new construction for homebuyer assistance will be allowed to be
constructed within the 100-year floodplain or a designated buy-out area,
unless the activity meets all HUD environmental requirements, applicable
design standards, and the property is insured by Federal Flood Insurance.
• Activity specific requirements:
Housing Repair/ Rehabilitation
• Beneficiaries of this activity must be the owner of record of the property to
be assisted (ownership type is limited to fee simple title or 99-year
leasehold ownership). Absolutely no land sales contracts.
• Housing repair/ rehabilitation assistance viulI be allowed only on the
beneficiary's primary residence.
• Use the HUD definition of "single-family" dwelling unit.
• Assistance to homeowners will be limited to forgivable loans. Forgivable
loans under this activity must be a 10-year receding forgivable loan.
Forgivable loans must he secured as a mortgage lien on the assisted
property. Payback will be required if the assisted property owner sells
vacates, rents out or abandons the property within the 10 year period.
• Only the actual CDBG Supplemental Funds-funded rehabilitation costs
incurred and/or the lead hazard reduction or lead hazard abatement costs
incurred need to be secured with the forgivable loan. Project delivery costs
incurred need not be included in, or secured by, the mortgage lien.
• All units to be repaired or rehabilitated must be both financially and
structurally feasible to rehabilitate. Recipients should establish parameters
for making this determination.
• All units to be repaired or rehabilitated must meet all applicable property
standards upon completion.
The CDBG Entitlement Cities and communities with populations at or
greater than 15,000 need to comply with your own locally adopted and
enforced codes, standards and ordinances.
For the remainder of the State, in the absence of any locally adopted and
enforced codes or standards, the requirements of Iowa's Minimum Housing
Rehabilitation Standards apply.
• It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner
that results in green-built, sustainable single-family structures. For those
communities conducting single-family rehabilitation activities that are
subject to Iowa's Minimum Housing Rehabilitation Standards, the
applicable "green" requirements are contained therein.
For all communities not subject to Iowa's Minimum Housing Rehabilitation
Standards, the IDED asks that you incorporate the "green" design
requirements of Iowa's Minimum Housing Rehabilitation Standards into
your individual project specifications /work write-ups, all assisted units.
• All units constructed prior to 1-1-78 must be made at least temporarily lead
safe.
Follow all Federal Lead Safe Housing requirements. The IDED is waiving
it's policy that requires the temporary relocation of the occupants of
assisted housing during any/ all interior rehabilitation that disturbs painted
surfaces, known or presumed to be lead based paint and/or during any/ all
interior lead hazard reduction activity. Instead, follow all Federal
requirements regarding temporary relocation.
• The maximum per unit assistance level (CDBG Supplemental funds) for
Housing Repair/ Rehabilitation is $60,000. The administrative entity will be
allowed actual project delivery costs not to exceed $10,000.
Homebuyer Assistance
• This activity is available only to individuals or households whose principal
residence will eventually be bought out (i.e., the applicant must have a firm
commitment for buy-out assistance). The timing of the homebuyer
assistance must be coordinated with the buy-out assistance.
• Homebuyer assistance under the CDBG Supplemental Funds are not
limited to First-time Hornebuyers.
• Types of Homebuyer Assistance activities that may be undertaken with the
CDBG Supplemental Funds are:
1) Rehabilitation in Support of Homeownership;
2) Acquisition Assistance, including: downpayment assistance;
buyer's side closing costs; mortgage buy-down (principal
reduction); combinations of the above; and
3) Combinations of both rehabilitation and acquisition
assistance.,
• 100% of the downpayment required with a purchase may be paid for with
CDBG Supplemental Funds, however, the downpayment requirement
cannot exceed 25% of the purchase price or appraised Fair Market Value
(FMV), whichever is less.
• Homebuyer Assistance must be provided as a 10-year receding forgivable
loan secured by a mortgage lien on the assisted (purchased) property.
• Only the actual CDBG Supplemental Funds-funded rehabilitation costs
incurred and/or the lead hazard reduction or lead hazard abatement costs
incurred need to be secured with the forgivable loan. Project delivery costs
incurred need not be included in, or secured by, the mortgage lien.
• Recipients shall require the beneficiaries of their homebuyer assistance
activities to use a principal loan product that meets all of the following
criteria:
1) With the exception of Habitat for Humanity principal loan
products, the principal loan must be the only repayable loan in
all individual homebuyer assistance projects
2) The CDBG Supplemental funds may be recorded in junior
position to the principal loan, but must be recorded in senior
position to all other funding in all homebuyer assistance
projects. Additionally, recipients of CDBG Supplemental
homebuyer assistance activities must maintain their
assistance security agreements in the above-stated recording
position throughout the 10-year period, and will not be allowed
to subordinate the required recording position to any other
forms of assistance, such as home equity loans.
3) Any mortgage lending entity's principal mortgage loan
products may be used provided they meet all of the following
minimum requirements:
a) Loan interest rates cannot be higher than two percentage
points above the federal prime interest rate at the time of
loan closing;
b) Loan terms will include a 75% or higher Loan-to-Value ratio
(LVR);
c) No less than a 15-year, fully amortized, fixed-rate mortgage
may be used; and
d) No adjustable rate mortgages or balloon payment types of
mortgages will be allowed.
• The maximum per unit assistance level (CDBG Supplemental funds) for
Homebuyer Assistance is $60,000. The administrative entity will be allowed
actual project delivery costs, not to exceed $10,000.
• All existing units to be purchased in need of rehabilitation must be both
structurally and financially feasible to rehabilitate.
• All existing units to be purchased in need of rehabilitation must meet all
applicable property standards upon completion.
The CDBG Entitlement Cities and communities with populations at or
greater than 15,000 need to comply with your own locally adopted and
enforced codes, standards and ordinances.
For the remainder of the State, in the absence of any locally adopted and
enforced codes or standards, the requirements of Iowa's Minimum Housing
Rehabilitation Standards apply.
• It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner
that results in green-built, sustainable single-family structures. For those
communities conducting single-family rehabilitation activities in support of
homeownership that are subject to Iowa's Minimum Housing Rehabilitation
Standards, the applicable "green" requirements are contained therein.
For all communities not: subject to Iowa's Minimum Housing Rehabilitation
Standards, the IDED asks that you incorporate the "green" design
requirements of Iowa's Minimum Housing Rehabilitation Standards into
your individual project specifications / work write-ups, all assisted units.
• All units constructed prior to 1-1-78 must be made at least temporarily lead
safe.
Follow all Federal Lead Safe Housing requirements. The IDED is waiving
it's policy that requires the temporary relocation of the occupants of
assisted housing during any / all interior rehabilitation that disturbs painted
surfaces, known or presumed to be lead based paint and/or during any / all
interior lead hazard reduction activity. Instead, follow all Federal
requirements regarding temporary relocation.
Interim Mortgage Assistance
• This activity is available only to individuals or households whose principal
residence will eventually be bought out (i.e., the applicant must have a firm
commitment for buy-out assistance). The timing of the interim mortgage
assistance must be coordinated with the buy-out assistance.
• Interim mortgage assistance may be used to maintain mortgages (payment
of principal, interest, property taxes and hazard insurance).
• The maximum interim mortgage assistance allowable per assisted person
or household will be $1,000 per month for a period not to exceed 3 months.
H
•
• Interim mortgage assistance may be provided as a grant.