2020 ADMINISTRATION MANUALCommunity Development Block Grant Program

opportunity.nebraska.gov

CDBG Manual, Revised June 2020 i

TABLE OF CONTENTS CHAPTER 1: Introduction

Purpose of Manual ..................................................................................................................................................... 1-1 Manual Updates ......................................................................................................................................................... 1-1 The CDBG Program ..................................................................................................................................................... 1-1 CDBG in Nebraska ....................................................................................................................................................... 1-2 CHAPTER 2: Administrative Overview

Administrative Requirements ..................................................................................................................................... 2-1 Eligibility ..................................................................................................................................................................... 2-1 Administrative Training .............................................................................................................................................. 2-1 Basic Information for Administration of a CDBG Project ............................................................................................ 2-2 Certified Administrator Requirements ..................................................................................................................... 2-10 Certification Process & Requirements ...................................................................................................................... 2-11 Certified Administrator in Good Standing & Types of Violations ............................................................................. 2-14 Appeal of Department Decisions .............................................................................................................................. 2-17 Program Administration Complaint Process............................................................................................................. 2-18 CHAPTER 3: CDBG National Objectives & Fundability

Low & Moderate Income (LMI) Persons ..................................................................................................................... 3-1 Slum & Blight .............................................................................................................................................................. 3-5 Urgent Need ............................................................................................................................................................... 3-7 CDBG Program Fundability ......................................................................................................................................... 3-7 CHAPTER 4: Developing Program Guidelines

Developing Program Guidelines ................................................................................................................................. 4-1 Section 106 Compliance ............................................................................................................................................. 4-2 Approval of Program Guidelines……………………………………………………………………….. ..................................................... 4-2 Implementation of Program Guidelines ..................................................................................................................... 4-2 Commercial Rehabilitation Program Guidelines ......................................................................................................... 4-2 Commercial Rehabilitation: Eligible Activities ............................................................................................................ 4-4 Housing Program Guidelines & Program Income Reuse Plan .................................................................................... 4-4 Special Policies & Requirements for Housing Program Income ................................................................................. 4-7 CHAPTER 5: Contract

Notice of Approval ...................................................................................................................................................... 5-1 CDBG Contract ............................................................................................................................................................ 5-1 Special Conditions for Release of Funds ..................................................................................................................... 5-2 Federal & State Requirements ................................................................................................................................... 5-4 Affirmatively Furthering Fair Housing ........................................................................................................................ 5-6 Notice of Release of Funds/Environmental Clearance ............................................................................................. 5-11 Amendments ............................................................................................................................................................ 5-11 Post Reward Requirements ...................................................................................................................................... 5-13 Section 504 .............................................................................................................................................................. 5-15 Sample Contract ....................................................................................................................................................... 5-20

CDBG Manual, Revised June 2020 ii

CHAPTER 6: Environmental Review

Introduction ................................................................................................................................................................ 6-1 The Environmental Review Process ............................................................................................................................ 6-5 Comprehensive Overview of Environmental Projects ................................................................................................ 6-8 Publication, RROF/Certification Form, & HUD Objection Period .............................................................................. 6-13 Source Documentation ............................................................................................................................................. 6-15 Timing Considerations .............................................................................................................................................. 6-18 Tiered Environmental Review (24 CFR 58.15) .......................................................................................................... 6-24 Re-Evaluation & Certification of Continued Environmental Compliance of Previously Cleared Projects ................ 6-25 Overview of Environmental Review Record (ERR) Items .......................................................................................... 6-27 CHAPTER 7: Procurement

Introduction ................................................................................................................................................................ 7-1 Grantee Responsibilities ............................................................................................................................................. 7-1 Timing of Contract Execution ..................................................................................................................................... 7-2 General Provisions/ 2CFR §200.318 ........................................................................................................................... 7-3 Summary of Federal Requirements ............................................................................................................................ 7-3 Bonding & Insurance .................................................................................................................................................. 7-4 Use of Local, Small, Minority, and/or Women-Owned Businesses ............................................................................ 7-5 Contract Language ...................................................................................................................................................... 7-5 Procurement Options ................................................................................................................................................. 7-6 Procurement Methods ............................................................................................................................................... 7-8 Best Practices for Procurement ................................................................................................................................ 7-14 Contract File.............................................................................................................................................................. 7-16 Designating Grant Administration to Another Governmental Entity ....................................................................... 7-16 Subrecipients ............................................................................................................................................................ 7-16 Sample Professional Service/Consultant Agreement ............................................................................................... 7-18 CHAPTER 8: Program Income

Program Income Further Defined ............................................................................................................................... 8-1 Revolving Loan Funds Defined .................................................................................................................................... 8-2 CDBG State Revolving Loan Fund (State RLF) ............................................................................................................. 8-2 Program Income – Idle Accounts Must be Returned .................................................................................................. 8-3 How to Repurpose Local Program Income ................................................................................................................. 8-3 Local Economic Development (ED) Program Income ................................................................................................. 8-5 Local Housing Program Income ................................................................................................................................ 8-12 Other CDBG Program Income ................................................................................................................................... 8-19 Reporting Program Income ...................................................................................................................................... 8-19 Other Resources & Planning Tools for Re-purposing Program Income .................................................................... 8-19 CHAPTER 9: Construction & Labor

Statutory Provisions .................................................................................................................................................... 9-1 Labor Standards Procedures Overview ...................................................................................................................... 9-2 When Bids are Higher than Cost Estimates ................................................................................................................ 9-6 Contract Award/Contractor Responsibilities/Notice to Proceed ............................................................................... 9-6 Compliance/Monitoring/Payments ............................................................................................................................ 9-8 Index ......................................................................................................................................................................... 9-13 Attachments ............................................................................................................................................................. 9-18

CDBG Manual, Revised June 2020 iii

CHAPTER 10: Property Acquisition

Task #1: Review Laws, Regulations, & Process Flow Chart ....................................................................................... 10-1 Task #2: Determine What Properties Will Be Acquired ............................................................................................ 10-3 Task #3: Determine Ownership of Properties to be Acquired .................................................................................. 10-3 Task #4: Establish a File for Each Property to be Acquired ....................................................................................... 10-3 Task #5: Notify Owner of Interest in Acquiring the Real Property ........................................................................... 10-4 Task #6: Obtain Appraisal(s) for Each Property ........................................................................................................ 10-4 Task #7: Establish & Offer Just Compensation ......................................................................................................... 10-5 Task #8: Complete Acquisitions, Condemn Property or Decide Not To Acquire ...................................................... 10-6 Task #9: Special Procedures for Donation ................................................................................................................ 10-8 Attachments ............................................................................................................................................................. 10-9 CHAPTER 11: Relocation

Review Laws, Regulations, & Process Flow Chart ..................................................................................................... 11-1 Identify Households or Businesses to be Displaced, Establish a File for Each, & Issue a General Information Notice ...................................................................................................................... 11-2 Provide Notice of Relocation Eligibility & Informational Brochure to Each Displaced Household ........................... 11-2 Contact Displacees to Provide Information & Determine Replacement Housing & Social Service Needs ............... 11-4 Identify Replacement Housing & Social Services Resources, Make Referrals .......................................................... 11-5 Secure Replacement Housing for Displacees ........................................................................................................... 11-8 Determine Moving & Related Expenses ................................................................................................................... 11-8 Process Claims & Make Payments .......................................................................................................................... 11-10 Attachments ........................................................................................................................................................... 11-13 CHAPTER 12: Financial

Financial Management System ................................................................................................................................. 12-1 The Department’s Requirements ............................................................................................................................. 12-2 Accounting Records .................................................................................................................................................. 12-2 Source Documents .................................................................................................................................................... 12-2 Receipt Procedures ................................................................................................................................................... 12-4 Electronic Funds Transfer ......................................................................................................................................... 12-4 ACH Enrollment Form Instructions ........................................................................................................................... 12-5 Bank Accounts .......................................................................................................................................................... 12-5 Payment Procedures ................................................................................................................................................ 12-5 Administrative Costs ................................................................................................................................................. 12-6 Matching Funds ........................................................................................................................................................ 12-6 Indirect Costs ............................................................................................................................................................ 12-6 Requesting CDBG Funds ........................................................................................................................................... 12-6 Budget Amendment & Funds Reallocation .............................................................................................................. 12-9 Contract Records ...................................................................................................................................................... 12-9 Property Records & Management ............................................................................................................................ 12-9 Disposition of Property ........................................................................................................................................... 12-10

CDBG Manual, Revised June 2020 iv

CHAPTER 13: Reporting Requirements

Semi-Annual Project Status & Compliance Reports ................................................................................................. 13-1 Job Creation/Retention Reports ............................................................................................................................... 13-1 Program Income Reports .......................................................................................................................................... 13-1 Notification of Contract Award/LSE7 ........................................................................................................................ 13-1 Verification of Lawful Presence/ Public Benefits Summary Report .......................................................................... 13-2 Notification of Annual Audit .................................................................................................................................... 13-2 Final Reports ............................................................................................................................................................. 13-2 Chapter 14: Monitoring

Overview .............................................................................................................................................................. 14-1 Desktop Monitoring Overview & Process ................................................................................................................. 14-1 On-Site Monitoring ................................................................................................................................................... 14-3 Monitoring Report .................................................................................................................................................... 14-5 Grantee Non-Compliance ......................................................................................................................................... 14-5 Deficient Monitoring ................................................................................................................................................ 14-5 Exhibits ..................................................................................................................................................................... 14-7 CHAPTER 15: Audit

Audit Requirements .................................................................................................................................................. 15-1 Notifications of Annual Audit ................................................................................................................................... 15-1 The Audit .................................................................................................................................................................. 15-1 Auditor Selection ...................................................................................................................................................... 15-2 Single Audit Costs ..................................................................................................................................................... 15-2 Audits of Subrecipients ............................................................................................................................................. 15-2 CHAPTER 16: Closeout

Project Closeout ....................................................................................................................................................... 16-1 Final Project Status & Compliance Report ................................................................................................................ 16-1 Final Financial Report ............................................................................................................................................... 16-2 Final Wage Compliance Report ................................................................................................................................ 16-2 Final Product ............................................................................................................................................................. 16-2 Final Job Creation/Retention Report ........................................................................................................................ 16-2 Public Hearing ........................................................................................................................................................... 16-2 Fair Housing Actions ................................................................................................................................................. 16-2 Limited English Proficiency (LEP) ............................................................................................................................. 16-3 Leveraged Funds Statement ..................................................................................................................................... 16-3 Compliance Monitoring ............................................................................................................................................ 16-3 Certificate of Completion ......................................................................................................................................... 16-3 File Retention ........................................................................................................................................................... 16-3

CDBG Manual, Revised June 2020 v

GLOSSARY

APPENDIX

Section 1: Compliance with CDBG National Objective, LMA, including Income Surveys CPD-19-02: Low-And Moderate-Income Summary Data Updates .............................................................. A1-1 CPD-14-013: Guidelines for Conducting Income Surveys ......................................................................... A1-14 Income Survey Sample Form..................................................................................................................... A1-38

Section 2: Environmental Compliance

HUD Guide to Environmental Compliance .................................................................................................. A2-2 Potential Agency Contact & Distribution List ............................................................................................ A2-16 24 CFR Part 58: Environmental Review Procedure ................................................................................... A2-22

Section 3: Procurement Compliance

Procurement Standards 2 CFR 200.317 - .326 ........................................................................................... A3-1 CDBG Contract Management Checklist....................................................................................................... A3-9 CDBG Procurement Checklist .................................................................................................................... A3-12

Section 4: Program Income Planning Tools

Program Income - Planning Tool: Reuse Plan for Community Development Activities .............................. A4-2 Program Income - Planning Tool: Reuse Plan for Economic Development Activities ................................. A4-3 Program Income - Planning Tool: Reuse Plan for Housing Activities .......................................................... A4-6 Program Income - Planning Tool: Re-purposing Revolving Loan Fund & Reuse Accounts FAQ .................. A4-8

June 2018

CDBG Timeline Overview

*This is an overview and does not include all steps or requirements.

Start Date Months 0 - 1 Months 0 - 3 Months 3-4 Months 4 -24 Month 24

Notice of Approval Contract Executed Special Conditionsfor Release of Funds

Receive Release of Funds / Environmental Clearance Implement Project Complete Closeout

Set up Files

*Execute GeneralAdministration Contracts

*Begin Incurring Costs forGeneral Administration

The Contract between the Grantee and the Nebraska Department of Economic Development (DED) is executed.

Special Conditions are Compiled and Submitted to DED:1. Grantee Information Sheet2. Excessive Force Certification3. Authorization to Request

Funds4. Environmental Review5. Procurement Standards6. Code of Conduct7. Fair Housing Actions8. Implementation Schedule9. Financial Management

10. LEP/LAP11. Others as Requested

*Execute Contracts associatedwith project activities

*Project Activities can begin

*Grantee can submit Requestfor Funds (Drawdowns)

Project Performance

1. Project Status Reports2. Notification of Annual Audit3. Program Income Reports4. Job Creation/Retention

Reports5. Monitor Project6. 2nd Public Hearing Occurs7. Fair Housing Actions

Completed8. Performance Review - Risk

Analysis

Complete Closeout

1. Request Closeout2. Final Financial Report3. Final Performance Report4. Final Wage Compliance

Report5. Final Product

May 2020

Downtown Revitalization (DTR)

Dave Honz ................................................................................................. (402) 471-3763

Economic Development (ED)

Dave Honz .................................................................................................. (402) 471-3763

Anissa Rasmussen ...................................................................................... (402) 471-7999

Tom Stephens ............................................................................................. (402) 471-6587

Labor Compliance (Davis-Bacon & Related Acts)

Steve Charleston ....................................................................................... (402) 471-3757

Terry McAuliffe ............................................................................................ (402) 471-3680

Rebecca Schademann............................................................................ (402) 471-3172

Limited English Proficiency/Language Access Plan (LEP/LAP)

Alison Kumbier .......................................................................................... (402) 471-3775

Monitoring and Compliance

Aaron Boucher ........................................................................................... (402) 471-8605

Alison Kumbier ............................................................................................ (402) 471-3775

Amber Ward ............................................................................................... (402) 471-3369

Owner Occupied Rehabilitation (HO)

Lynn Kohout, Housing Manager .............................................................. (402) 440-2599

Mechele Grimes, Housing Specialist .......................................................(402) 309-4536 Evan Clark, Housing Specialist............................................................... (402) 471-4679

Laura Hart, Central .................................................................................... (308) 202-0177

Nick Dropinski, Southeast .......................................................................... (402) 471-2095

Barb Pierce, Northeast ........................................................................... (402) 719-0030 Kristi McClung, Western ......................................................................... (308) 889-3420

Kylee Bischoff, Application Coordinator ................................................ (402) 471-2843

Planning (PP)

Alison Kumbier............................................................................................ (402) 471-3775

Public Works (PW)

Aaron Boucher........................................................................................... (402) 471-8605

Tourism Development (TD)

Steve Charleston ....................................................................................... (402) 471-3757

Water/Wastewater (WW)

Aaron Boucher .......................................................................................... (402) 471-8605

COMMUNITY DEVELOPMENT BLOCK GRANT STAFF Nebraska Department of Economic Development

http://opportunity.nebraska.gov

Youth Job Training (JT) Rebecca Schademann............................................................................ (402) 471-3172

Common Acronym/Abbreviation Index

Acronym Description

AAP Annual Action PlanACS American Community SurveyADA Americans with Disabilities ActA/E Architectural/EngineeringAFFH Affirmatively Further Fair Housing AMI Area Median IncomeCAPER Consolidated Annual Performance Evaluation ReportCCCFF Civic and Community Center Financal FundCD Comprehensive DevelopmentCDAA Community Development Assistance ActCDBG Community Development Block GrantCENST Categorically Excluded Not SubjectCEST Categorically Excluded SubjectCIS Comprehensive Investment & Stabilization (Inactive)CR Comprehensive Revitalization (Inactive)CWHSSA Contract Work Hours and Safety Standards ActDBRA Davis Bacon and Related ActsDED Department of Economic DevelopmentDTR Downtown RevitalizationDOL Department of LaborDPA Down Payment AssistanceDUNS Data Universal Numbering SystemEA Environmental AssessmentED Economic DevelopmentEDCC Economic Development Certified CommunityEIS Environmental Impact StatementEPA Environmental Protection AgencyERR Environmental Review RecordFFATA Federal Funding Accountability & Transparency ActFONSI Finding of No Significant ImpactHCDA Housing and Community Development Act of 1974HOME HOME Investment PartnershipHTF National Housing Trust FundHUD U.S. Department of Housing and Urban DevelopmentLAP Language Assistance PlanLBP Lead Based PaintLBPH Lead Based Paint HazardLCC Leadership Certified Community LEP Limited English ProficiencyLMA Low/Moderate Income Persons on an Area Basis (Benefit)LMH Low/Moderate Income HouseholdsLMI/Low-Mod Low/Moderate IncomeLMJ Low/Moderate Income on a Job Creation/Retention BasisLMC Low/Moderate Income Persons on a Limited Clientele Basis

Common Acronym/Abbreviation Index LSE7 Notice of Contract Award (Davis Bacon Only-DED Form)MBE/WBE Minority-Owned Business Enterprise/Woman-Owned Business EnterpriseMEF Municipal Equalization FundNAA Notification of Annual AuditNAHTF Nebraska Affordable Housing Trust FundNEOC Nebraska Equal Opportunity CommissionNIS Nebraska Information SystemsNOA Notice of ApprovalNOI/RROF Notice of Intent to Request Release of FundsOOR Owner Occupied RehabilitationPP PlanningPW Public WorksQAP Qualified Allocation PlanRLF Revolving Loan FundROF Release of FundsRFP Request for ProposalsRFQ Request for QualificationsRWHF Rural Workforce Housing FundSAM System of Award ManagementSB Slums & BlightSBA Slums & Blight on an Area BasisSBS Slums & Blight on a Spot BasisSHPO State Historic Preservation OfficerTA Technical AssistanceTD Tourism DevelopmentUGLG Unit of General Local GovernmentURA Uniform Relocation ActUSDA, RD U.S. Department of Agriculture, Rural DevelopmentWH-347 Payroll Certification Form (Davis Bacon)WW Water/Wastewater