The URL can be used to link to this page

Caradco Project_Community Development Block Grant ContractIOWA ECONOMIC DEVELOPMENT AUTHORITY 200 East Grand Avenue 1 Des Moines, Iowa 50309 USA 1 Phone: 515.725.3000 iowaeconomicdevelopment.com December 29, 2017 The Honorable Roy D. Buol Mayor, City of Dubuque City Hall - 50 W. 13th Street Dubuque, IA 52001 R 18 JAN -W; Pti 2: 29 IcI)\wA. economic development SUBJECT: Contract Compliance for the Community Development Block Grant Program (CDBG) Contract Number 08-DRH-212 Dear Mayor Buol, The Iowa Economic Development Authority (IEDA) has completed its review of the file materials relating to the above referenced contract including program compliance, drawdown of funds reports, beneficiary reports, audit report if required and other reports as applicable to your contract. As a result of our review, we have concluded that the project has been administered in substantial compliance with financial and program requirements. You should be aware that your records might be reviewed as part of U.S. Department of Housing and Urban Development (HUD) monitoring of the State's program or the State Auditor's Office annual audit of the IEDA. Either of these could result in findings or conclusions that differ from those of the IEDA. With this in mind, please follow the record retention requirements described in the contract general provisions and the management guide. Thank you for your continued cooperation during these final phases of your CDBG project. If you should have questions, please contact me at (515) 725-3067. Sincerely, Khristy Smith Close -Out Coordinator Community Investments cc: Maurice Jones, City of Dubuque Grantee File: Ami Schmid Fiscal Governor Kim Reynolds 1 Lt. Governor Adam Gregg 1 Director Debi V. Durham IOWA ECONOMIC DEVELOPMENT AUTHORITY 200 East Grand Avenue Des Moines, Iowa 50309 USA Phone: 515.725.3000 iowaeconomicdevelopment.com July 1, 2016 The Honorable Roy D. Buol Mayor, City of Dubuque City Hall - 50 W. 13th Street Dubuque, IA 52001 RE( I \ LEC 16 JUL -5 PM 12: 12 City .Clerks Office 1ubuquir, IA Annual Reminder: Audit Requirements for the Community Development Block Grant (CDBG) Program Recipient: Contract Number: Contract Start Date: Dubuque 08-DRH-212 December 14, 2010 002( "r //,7 nornielopm nt Contract End Date: December 31, 2015 Dear Mayor Buol: Our records indicate that Dubuque received federal funds from the IEDA during the fiscal year (July 1, 2015 through June 30, 2016). OMB (Office of Management and Budget) Circular A-133, issued pursuant to the Single Audit Act of1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156 requires any entity that expends more than $500,000 in Federal awards from any Federal sources during a fiscal year have a single or program specific audit conducted for the applicable fiscal year in accordance with the Circular. A program specific audit is only allowable if an entity expends awards under only one Federal program and the Federal program's rules do not require a financial statement audit. Please read and complete the enclosed Single Audit Form return to IEDA within 30 days of. Completion, of this form is a grant requirement and failure to return this form to IEDA may result in delayed grant reimbursements. If you or your auditor determine you need an A-133 audit, your auditor will also need the following information: • If an audit is required, it is due to us within 9 (nine) months of the end of the applicable fiscal year or within 30 days of the Recipient's receipt of the audit, whichever is earlier. • If the grantee is required by state law to do an entity -wide audit, and is also required to comply with A-133 audit requirements, the grantee may satisfy both requirements by conducting one audit which complies with the A-133 requirements.. • As part of the Single Audit Act requirements, IEDA is required to advise you of the Catalog of Federal Domestic Assistance (CFDA) Number of the program through which the grantee received funding. The CFDA number for the CDBG program is 14.228. If you have any questions please feel free to contact me at (515) 725-3067. Sincerely, Khristy Smith Closeout Coordinator Cc: Maurice Jones, City of Dubuque File: Ann Schmid From: Laura Carstens To: Kevin Firnstahl; Maurice Jones CC: Dean Mattoon; Jill Connors; Kerry Bradley; Kyle Kritz; Melinda Rette... Date: 07/25/2016 2:34 PM Subject: Re: IEDA Correspondence CDBG Grants - Single Audit Forms Kevin, I will handle the single audit form for 08-DRIFWP-203 Catfish Creek Watershed Management. Thanks. Laura Laura Carstens Planning Services Manager City Hall - 50 W. 13th Street Dubuque IA 52001 Phone: 563-589-4210 Fax: 563-589-4221 »> Kevin Firnstahl 7/5/2016 1:15 PM »> Attached is correspondence from the IEDA regarding the following CDBG grants and single audit forms. Response is due in 30 days. 08-DRIFWP-203 Catfish Creek Watershed Management (Dean advises that Planning might handle grant documentation) 08-DRH-212 Caradco-Linseed Buildings (Econ Dev). I'll forward originals to the respective departments. Please advise on any further processing and signatures, or if I have something incorrect. Thank you, Kevin IOWA ECONOMIC DEVELOPMENT AUTHORITY 200 East Grand Avenue 1 Des Moines, Iowa 50309 USA 1 Phone: 515.725.3000 iowaeconomicdevelopment.com Recipient Contract Number SINGLE AUDIT FORM Dubuque Start Date: 12/14/2010 08-DRH-212 econofnic de_Ve=opiti- End Date: 12/31/2015 The Single Audit Act of 1996, as amended, changed the threshold of required audits from entities awarded federal funds. If a unit of local government or non-profit organization has expended $500,000 or more in federal funds from any federal sources or programs during a fiscal year, that entity is required to have these funds audited in accordance with the implementing regulations found in OMB Circular A-133. Entities that have not expended $500,000 in federal funds in a fiscal year are not required to have an A-133 audit performed. As part of the Single Audit Act requirements, IEDA is required to advise you of the Catalog of Federal Domestic Assistance (CFDA) Number of the program through which the grantee received funding. The CFDA number for the CDBG program is 14.228. After reviewing the audit requirements described above, check one of the boxes below and have this form signed by the appropriate official of your organization, and return it to: For projects NOT in IowaGrants, mail to: Khristy Smith, Closeout Coordinator, Iowa Economic Development Authority, 200 E. Grand Avenue, Des Moines, IA 50309 For projects in Iowa Grants (2012 and newer): sign and send to COG/Administrator then have them upload signed form to the Audit Documents component in IowaGrants. Click the add button: type in the year and audit required. Save the form and then upload the letter. COG/Administrator needs to email Khristine.Smith>iowa.gov informing the form has been uploaded I certify that, No Audit Required Audit is Required (will be available ) For fiscal year 2016 Signature Date NOTE: When Audit is available, please mail to IEDA or Notify us to pull from State Auditors Website. Single Audit Form (Audit Reminder Letter) July 1, 2016 IOWA ECONOMIC DEVELOPMENT AUTHORITY 200 East Grand Avenue 1 Des Moines, Iowa 50309 USA 1 Phone: 515.725.3000 iowaeconomicdeveloprnent.com July 13, 2016 The Honorable Roy D. Buol, Mayor Dubuque City Hall - 50 W. 13th Street Dubuque, IA 52001 economic development RE: UPDATED Audit Requirements for Community Development Block Grant (CDBG) Program Recipient: Dubuque Contract Number: 08-DRH-212 Contract Start Date: 12/14/2010 Contract End Date: 12/31/2015 Dear Mayor Buol: This is an update to the previous letter our agency sent on July 1, 2016. IEDA has updated our procedures and the following is applicable to all grants awarded after December 26, 2014. New Audit Requirements: 2 CFR 200 Subpart F requires that any entity that expends $750,000 or more in Federal awards from any Federal sources during a fiscal year have a single or program specific audit conducted for the applicable fiscal year in accordance with 2 CFR 200. A program specific audit is only allowable if an entity expends awards under only one Federal program and the Federal program's rules do not require a financial statement audit. Please use the Single Audit form that was enclosed with the letter dated July 1, 2016. If you have any questions please feel free to contact me at (515) 725-3067. Sincerely, Kbristy Smith Closeout Coordinator Cc: Maurice Jones, City of Dubuque 1 + (.1..vnrr,nr Llim Rok/nnlrlc 1 fliron+nr flohi \/ Ili whnm r� l Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: CDBG Contract Approval for Caradco Building Project DATE: January 12, 2011 Dubuque bfrd AI- Amedca City 1 m 2007 Economic Development Director David Heiar is recommending approval of the resolution authorizing the execution of a Community Development Block Grant (CDBG) Housing Disaster Recovery Fund Contract between the Iowa Department of Economic Development and the City of Dubuque on behalf of the Caradco Building project. The Iowa Department of Economic Development (IDED) awarded to the City of Dubuque a Supplemental Community Development Block Grant (CDBG) of $8.9 million to help fund the construction of 72 residential units at the Caradco Building, at 900 Jackson Street in Dubuque's Historic Millwork District. The City of Dubuque worked with Caradco Building, LLLP in submitting two grant applications totaling $8.9 million. The Iowa Department of Economic Development has prepared one contract to cover both awards. The grant will assist with the development of 72 workforce housing units: 42 two- bedroom units and 30 one - bedroom units. Monthly rents are expected to range from $650 to $850. Income guidelines will apply for a portion the workforce housing units. Projects constructed with this funding will likely result in mixed - income projects, in that, only a percentage of the total number of units are required to meet the activity income and rent requirements. The total estimated cost for the rehabilitation of the structure is $28.3 million. Other major funding sources include a $4.5 million loan secured earlier this year from the Iowa Finance Authority. The CDBG financial assistance will be a 10 -year forgivable loan, forgiven in full at the end of the 10 -year compliance period. The CDBG Supplemental funds subsidy amount provided must be secured as a mortgage lien on the assisted multi - family property. A CDBG Disaster Recovery Housing Recipient must provide a 20% match, to the CDBG funds, as a Source of Funds for the project. These funds must be committed by resolution and examples of the match include but are not limited to Tax Abatement, HOME, TIF. In addition to the residential units, the Caradco Building will feature approximately 35,000 square -feet of first -floor commercial space to attract and support new downtown businesses. The developer is also exploring the use of 12,000 square -feet of lower level space for community betterment projects. The project plans also include an environmentally sensitive HVAC system and other measures to enhance the building's energy efficiency. The renovation is expected to begin in spring 2011. The Carr, Ryder & Adams Company (Caradco) Main Plant Building, a former millwork factory, occupying an entire city block, was built between 1880 and 1906. The renovation of this building is expected to act as a catalyst for the revitalization of the Historic Millwork District. With its foundation of historic, architecturally unique warehouses, the district will become an urban mixed -use development containing mixed - income housing, commercial space, and public gathering places, incorporating sustainable and energy- efficient technologies. It was IDED's goal to utilize the CDBG Supplemental Funds in a manner that results in green - built, sustainable multi - family structures. This project coincides with a full reconstruction of the district's streets, funded through a $5.6 million TIGER (Transportation Investment Generating Economic Recovery) grant from the USDOT. The reconstruction will feature a 'Complete Streets' design, which facilitates a broad range of users, with connections to the downtown and Port of Dubuque. This streetscape project is expected to begin in early spring 2011 and be completed in 2012. Most of the contract language is the standard CDBG policies and regulations. This project requires that at least 46 of the 72 units must be leased to persons or households whose incomes are at or below 80% of the area median income limits (LMI) by household size. The income guidelines for these units will be evaluated and modified annually. The current income guidelines are as follows: 1 person 2 Person 3 Person 4 Person $35,250 $40,250 $45,300 $50,300 I concur with the recommendation and respectfully request Mayor and City Council approval. Mi hael C. Van Milligen MCVM:Iw Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director r\ I:1(--(c4-4-, SUBJECT: CDBG Contract Approval for Caradco Building Project DATE: January 12, 2011 Dubuque kittrg M- 4nelcacnr 1 m 2007 PURPOSE This memorandum presents for City Council a resolution authorizing the execution of a Community Development Block Grant (CDBG) Housing Disaster Recovery Fund Contract between the Iowa Department of Economic Development and the City of Dubuque on behalf of the Caradco Building project. BACKGROUND The Iowa Department of Economic Development (IDED) awarded to the City of Dubuque a Supplemental Community Development Block Grant (CDBG) of $8.9 million to help fund the construction of 72 residential units at the Caradco Building, at 900 Jackson Street in Dubuque's Historic Millwork District. The City of Dubuque worked with Caradco Building, LLLP in submitting two grant applications totaling $8.9 million. The Iowa Department of Economic Development has prepared one contract to cover both awards. The grant will assist with the development of 72 workforce housing units: 42 two- bedroom units and 30 one - bedroom units. Monthly rents are expected to range from $650 to $850. Income guidelines will apply for a portion the workforce housing units. Projects constructed with this funding will likely result in mixed - income projects, in that, only a percentage of the total number of units are required to meet the activity income and rent requirements (i.e., the "assisted" units). The total estimated cost for the rehabilitation of the structure is $28.3 million. Other major funding sources include a $4.5 million loan secured earlier this year from the Iowa Finance Authority. The CDBG financial assistance will be a 10 -year forgivable loan (non- receding), forgiven in full at the end of the 10 -year compliance period. If the assisted rental project is sold or transferred, or converted to an alternate (non - residential) use, during the 10 -year period following completion and acceptance, the entire amount of the CDBG forgivable loan shall be repaid. Upon mutual agreement and consent between the IDED and the originally assisted rental property owner; the assisted rental project may be sold or transferred, but, only if the new purchaser agrees to continue with the terms of the forgivable loan agreement and the agreement for covenants and restrictions, to complete the remainder of the 10 -year affordability period (tenant income and rent limitations). The CDBG Supplemental funds subsidy amount provided must be secured as a mortgage lien on the assisted multi - family property. A CDBG Disaster Recovery Housing Recipient must provide a 20% match, to the CDBG funds, as a Source of Funds for the project. These funds must be committed by resolution and examples of the match include but are not limited to Tax Abatement, HOME, TIF. In addition to the residential units, the Caradco Building will feature approximately 35,000 square -feet of first -floor commercial space to attract and support new downtown businesses. The developer is also exploring the use of 12,000 square -feet of lower level space for community betterment projects. The project plans also include an environmentally sensitive HVAC system and other measures to enhance the building's energy efficiency. The renovation is expected to begin in spring 2011. The Carr, Ryder & Adams Company (Caradco) Main Plant Building, a former millwork factory, occupying an entire city block, was built between 1880 and 1906. The renovation of this building is expected to act as a catalyst for the revitalization of the Historic Millwork District. With its foundation of historic, architecturally unique warehouses, the district will become an urban mixed -use development containing mixed - income housing, commercial space, and public gathering places, incorporating sustainable and energy- efficient technologies. It was IDED's goal to utilize the CDBG Supplemental Funds in a manner that results in green - built, sustainable multi - family structures. This project coincides with a full reconstruction of the district's streets, funded through a $5.6 million TIGER (Transportation Investment Generating Economic Recovery) grant from the USDOT. The reconstruction will feature a 'Complete Streets' design, which facilitates a broad range of users, with connections to the downtown and Port of Dubuque. This streetscape project is expected to begin in early spring 2011 and be completed in 2012. Most of the contract language is the standard CDBG policies and regulations (see attached). The specific for this project is identified in Attachment A which requires that at least 46 of the 72 units must be leased to persons or households whose incomes are at or below 80% of the area median income limits (LMI) by household size. The income guidelines for these units will be evaluated and modified annually. The current income guidelines are as follows: 1 person 2 Person 3 Person 4 Person $35,250 $40,250 $45,300 $50,300 RECOMMENDATION recommend that the City Council approve the attached Resolution authorizing the execution of a Community Development Block Grant (CDBG) Housing Disaster Recovery Fund Contract between the Iowa Department of Economic Development and the City of Dubuque on behalf of the Caradco Building project. F: \USERS\Econ Dev \CARADCO\RIO -CDBG Round 3\20110112 RIO -CDBG Contract Acceptance Memo CARADCO.doc Prepared by: David J. Heiar, ED Director, 50 West 13 Street, Dubuque IA 52001 563 589 -4393 Return to: Jeanne Schneider, City Clerk, 50 West 13 Street, Dubuque IA 52001 563 589 -4121 RESOLUTION NO. 23-11 RESOLUTION AUTHORIZING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) HOUSING DISASTER RECOVERY FUND CONTRACT BETWEEN THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE CITY OF DUBUQUE ON BEHALF OF THE CARADCO BUILDING PROJECT Whereas, the City of Dubuque worked with Caradco Building, LLLP to prepare CDBG Housing Disaster Recovery Fund grant applications to help fund the rehabilitation of the Caradco building; and Whereas, the City of Dubuque submitted an application to the Iowa Department of Economic Development for CDBG funding on behalf of the Caradco building project; and Whereas, the Iowa Department of Economic Development has prepared and submitted for City Council approval a CDBG Housing Disaster Recovery Fund contract which is attached hereto and by this reference made a part hereof; and Whereas, the City Council finds that the proposed contract is acceptable and necessary to the growth and development of the city. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Attest: Section 1. That the Iowa Department of Economic Development Contract is hereby approved. Section 2. Passed, approved and adopted this 18 day of January, 2011. That the Mayor is hereby authorized and directed to execute the Contract on behalf of the City of Dubuque and forward the executed copy to the Iowa Department of Economic Development for their approval. anne F. Schneider, City Clerk F: \USERS \Econ Dev \CARADCO \RIO -CDBG Round 3\20110112 Resolution IDED CDBG Contract - Caradco.doc y D. Buol, ayor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) HOUSING DISASTER RECOVERY FUND CONTRACT (Funded from P.L. 110 -329; Second Federal Disaster Appropriation) RECIPIENT: City of Dubuque CONTRACT NUMBER: 08 -DRH -212 CONTRACT START DATE: December 14, 2010 AWARD AMOUNT: $8,900,000 END DATE: December 31, 2012 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 Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 (P.L. 110 -329) 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: 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 Program" means the grant program authorized by Title I of the Housing and Community Development Act of 1974, as amended. Contract Number 08 -DRH -212 Page 2 of 11 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; or b) 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 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 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, Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 (P.L.110- 329). 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 Department, result in the termination, reduction or delay of CDBG funds to the Recipient. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 Contract Number 08 -DRH -212 Page 3 of 11 2.3 PRIOR COSTS. If any Recipient has received written approval from the Department to incur certain costs prior to the Start 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 Start 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. 2.5 REDISTRIBUTION OF UNUSED FUNDS. If by December 31, 2012, the Grantee has not obligated all of the funds budgeted for housing activities under the contract, and is unlikely to incur additional obligations for said housing activities, the IDED may reallocate all or a portion of the remaining unobligated funds to other Grantees for allowable activities under their contracts. IDED may determine that it is unlikely that all budgeted funds will be obligated if the Grantee has no current applications for assistance pending, or if no applications for assistance have been received within the prior two weeks. ARTICLE 3 TERMS OF GRANT 3.1 TIME OF PERFORMANCE. The services of the Recipient are to commence as of the Start 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 1DED'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. As part of the first Request for Funds, the Recipient shall submit a projected budget for all funds in this Contract, including each activity, associated budget, and performance measures. If these items change over the course of the Contract term, the Recipient shall submit the requested changes along with subsequent Requests for Funds. On the Contract End Date, the Recipient shall have substantially accomplished the activities and performance targets as estimated by the Recipient in that document. 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 mutually agreed to by the Department and the Recipient. The Department reserves the right to monitor and measure at any time during the Contract term the achievement of the performance targets. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 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. 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 ten percent (10 %) of the total award amount. Program income received by the Recipient during the Contract period is subject to the ten percent (10 %) general administrative cost limitation. ARTICLE 6 CONDITIONS TO DISBURSEMENT OF FUNDS Contract Number 08 -DRH -212 Page 4 of 11 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 REOUIREMENTS. 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. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 Contract Number 08 -DRH -212 Page 5 of 11 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 a Subagreement with any Councils of Government, Counties, or Entitlement Cities in their area, as designated by the Department for general administration of the 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. 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 START DATE. The covenants, warranties and representations of this Article are made as of the Start 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 Department. 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 Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 documentation adequate to support the claimed costs. REPORT Request for Payment – Housing Report Housing beneficiary and unit data, entered on statewide online system, as specified by IDED Final Request for Payment – Housing Report Final Housing Recipient Performance Report — Activity Status Section 3 Report Updates to the Applicant/Recipient Disclosure Report Audit Report Within 60 days of Contract End Date Within 60 days of Contract End Date Within 60 days of Contract End Date As needed due to changes Within 30 days of Audit Completion Contract Number 08 -DRH -212 Page 6 of 11 DUE DATE As funds are needed (original and three copies) All unit information added and updates complete 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. (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. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract – Second Appropriation Format Approved March 2009 Contract Number 08 -DRH -212 Page 7 of 11 (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 maybe 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 February 13, 2009: (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 February 13, 2009. (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 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. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 (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) Govemment -wide Restriction on Lobbying Certification [Section 319 of Public Law 101 -121] and implementing regulations. (xiv) Fair Labor Standards Act and implementing regulations. (xviii) Drug -Free Workplace Act. Contract Number 08 -DRH -212 Page 8 of 11 (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. (k) MAINTENANCE OF ACTIVITY PROPERTY AND INSURANCE. The following provision shall apply to Activity Number(s) . 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 s ubmit 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. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 (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 Department, there is insufficient insurance coverage. This provision shall apply to Activity Number(s) . 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, Contract Number 08 -DRH -212 Page 9 of 11 (b) require immediate repayment of up to the full amount of funds disbursed to the Recipient under this Contract, plus interest. 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 K, "Multi- Family (Rental) Unit Production — New Construction — Round #2." 6. Attachment M, "Multi - Family (Rental) Unit Production — New Construction — Round #3." 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. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 Contract Number 08 -DRH -212 Page 10 of 11 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 M, "Multi- Family (Rental) Unit Production — New Construction — Round #3." 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. 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. Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 Contract Number 08 -DRH -212 Page 11 of 11 IN WITNESS WHEREOF, the parties have executed this Contract as of the Contract Start Date first stated. RECIPIENT: City Dubuqu BY: Roy D. Buol Mayor Mayor City of lYubuque 350 West 6th Street, Suite 312 Dubuque, IA 52001 IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT: BY: Timothy R. Waddell, Division Administrator Typed or Printed Name and Title Document Prepared By: Julie Lunn CDBG Disaster Recovery Fund Contract — Second Appropriation Format Approved March 2009 1.0 AMENDMENT. 2.0 AUDIT REQUIREMENTS. 8.0 TERMINATION. ATTACHMENT C GENERAL PROVISIONS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM DISASTER RECOVERY FUND September 23, 2008 (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. (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. 9.0 PROCEDURES UPON TERMINATION. CDBG Contract Number 08 -DRH -212 Page 2 of 4 (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. (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 fmished 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 08 -DRH -212 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 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: (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) 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. 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 (g) CDBG Contract Number 08 -DRH -212 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. 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. Name of Recipient: Dubuque Contract Number: 08 To be filled in by IDED Original X Amendment # Proj Mgr Sign • I ------- . - r.,..., ..... ..- ''''''''' :-: ' :-:::..... '' '' : ' ;:::-• • '' - ''' .:, ' ':. '::.•! ,:.',-,:.:;"!::.2.;-. ' , Y- '' !!:::. ' . ' .,..,. .,.,,-.!.,,, ' , ' 1 -..-• .::;"" : ::::::: :.:-:-.:;-;--- - ' : '' ;; ----- -L' --' ::::::: . ,PIC --: 1 :'''.:: :._ i i.:Hi ,,:: ' , ' '.', '' '' --- ' • ' , ;IppmpytygF, . '' ' :: '' . ' . '''' . :.....,, '-----:--::: '' : - ii:ii:.!%;I:j: Activity 4: 876 Unit Production 46 Units LMI $8,900,000 GENERAL ADMINISTRATION 181 TOTAL BUDGET: $8,900,000 IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET ATTACHMENT A DATE: December 14, 2010 G:\BCF\Recipients\Disaster\O8DRH\Dubuque - 212\Dubuque 08-DRH-212AttachA.xlsx 52870 Federal Register / Vol. 73, No. 177/ Thursday, September 11, 2008 /Notices to (202) 395 -6974. Comments must be submitted on or before October 14, 2008. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the information collection should be made to Director, Records . Management Division, 500 C Street, SW„ Washington, DC 20472, Mail Drop Room 301, facsimile number (202) 646- 3347, or e-mail address FEMA- Inform ation -Coll eatiansOdh s.gov. Dated: September 5, 2008 john A. Sharetts - Sullivan, Director, Records Management Division, Office of Management, Federal Emergency Management Agency, Department of Homeldnd Security. [FR Doc, EB -2113B Filed. 9- 10-08; 8:45 am] BILLING CODE 81t0-11 -P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency [Docket ID FEMA- 2008 -0D10] National Are Academy Board of Visitors AGENCY: Federal Emergency Management Agency, DHS. ACTION: Committee Management; Notice of Open Federal Advisory Committee Meeting. SUMMARY: The National Fire Academy Board of Visitors will meet on October 2-4, 2008. DATES: The meeting will take place Thursday, October 2, 2008, from 8:30 a.m. to 4 p.m., 0.81; Friday, October 3, 2008, from 9 a.m. to 5 p.m., e.s,t.; and Saturday, October 4, 2008, from 9 a.m. to 11 :30 a.m., e.s.t. Comments must be submitted by Thursday, October 9, 2008. ADDRESSES: Members of the public who wish to obtain information for the public meeting may contact Teressa Kaas as listed in the FOR FURTHER INFORMATION CONTACT section by September 30, 2008. Members of the public may participate by coming to the National Emergency Training Center, Building H, Room 300, Emmitsburg, Maryland. Members of the general public who plan to participate in the meeting should contact Teressa Kaas as listed in the FOR FURTHER INFORMATION CONTACT section, on or before September 30, 2008. Requests to have written material distributed to each member of the committee prior to the meeting should reach the contact person at the address below by September 30, 2008. Send written material to Teressa Kaas, 16825 South Seton Avenue, Emmitsburg, Maryland 21727. Comments must be identified by Docket ID FEMA- 2008 -0010 and may be submitted by one of the following methods: • Federal eRulemakingPortal: http: // www.regulations.gov. Follow the instructions for submitting comments. • E - mail: FEMA RULES©dhs.gov. Include Docket ID in the subject line of the message. • Fax: (866) 466 -5370. • Mall: Teressa Kaas, 16825 South Seton Avenue, Emmitsburg, Maryland 21727. Instructions: All submissions received must include the Docket ID for this action. Comments received will be posted without alteration at www.regulations,gov, including any personal information provided. Docket: For access to the docket to read background documents or comments received by the National Fire Academy Board of Visitors, go to http://www,regulations.gov. FOR FURTHER INFORMATION CONTACT: Teressa Kaas, 16825 South Seton Avenue, Emmitsburg, Maryland 21727, telephone (301) 447 -1117, fax (301) 447 -1173, and e-mail teressa.kaas @dhs.gov. SUPPLEMENTARY INFORMATION: Notice of this meeting is given under the Federal 'Advisory Committee Act, 5 U.S,C. App, (Pub. L. 92 -463). The National Fire Academy Board of Visitors will be holding a meeting for purposes of reviewing U.S. Fire Administration/ National Fire Academy Program activities, including the status of campus maintenance and capital improvements, the budget update, the annual Ethics Briefing, the Learning Management System update, the • National Fire Programs update, the Education, Training and Partnerships update, the Academy update, and Board discussions and new items. This meeting is open to the public. The Chairperson of the National Fire Academy Board of Visitors shall conduct the meeting in a way that will, in his judgment, facilitate the orderly conduct of business. During its meeting, the committee welcomes public comment; however, comments will be permitted only during the public comment period. The Chairperson will make every effort to hear the views of all interested parties. Please note that the meeting may end early if all business is completed. Attachment D Information on Services for Individuals With Disabilities For information on facilities or services for individuals with disabilities or to request special assistance at the meeting, contact Teressa Kaas as soon as possible. Dated: September 5, 2008. Denis G. Onieal, Superintendent, National Fire Academy, U.S. Fire Administration, Federal Emergency Management Agency. [FR Doc. E8 -21127 Filed 9 -10-08; 8:45 am] BILLING CODE 8110 -17-P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR- 5250 -N-01] Allocations and Common Application and Reporting Waivers Granted to and Alternative Requirements tor Midwest Flood Community Development Block Grant (CDBG) Disaster Recovery Grantees Under the Supplemental Appropriations Act, 2008 AGENCY: Office of the Secretary, HUD. ACTION: Notice of allocations, waivers, and alternative requirements. SUMMARY: This Notice advises the public of the initial allocation for grant funds for CDBG disaster recovery grants for the purpose of assisting in the recovery in areas covered by a declaration of major disaster under title N of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) as a result of recent natural disasters, As described in the SUPPLEMENTARY INFORMATION section of this Notice, HUD is authorized by statute and regulations to waive statutory and regulatory requirements and specify alternative requirements for this purpose, upon the request of the • state grantees. This Notice also describes the common application, eligibility, and administrative waivers and the common alternative and statutory requirements for the grants. DATES: Effective Date: September 16, 2008. FOR FURTHER INFORMATION CONTACT: Jessie Handforth Kome, Director, Disaster Recovery and Special Issues Division, Office of Block Grant Assistance, Department of Housing and Urban Development, 451 7th Street, SW., Room 7286, Washington, DC 20410, telephone number 202 -708- 3587. Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at 800 -877- No. Declared date State Title 1773 25 -Jun -0B Missouri Severe Storms and Flooding. 1772 25- Jun -08 Minnesota ... Severe Storms and Flooding. 1771 24- Jun-08 lilinois Severe Storrns 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 Tomadoes. 1756 14- May -08 Oklahoma Severe Storms, Tornadoes, and Flooding. 1765 9- May -08 Maine Severe Storms and Flooding. 1753 8- May -08 Mississippi Severe Storms and Flooding. 8339. Facsimile inquiries may be sent to Ms. Koine at 202 -401 -2044. (Except for the "800" number, these telephone numbers are not toll - free.) SUPPLEMENTARY INFORMATION: Authority To Grant Waivers The Supplemental Appropriations Act, 2008 (Pub. L. 110 -252, approved June 30, 2008) (Supplemental Appropriations Act) appropriates $300 million, to remain available until expended, in CDBG funds for necessary expenses related to disaster relief, long- term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) as a result of recent natural disasters. The Supplemental Appropriations Act authorizes the Secretary to waive, or specify alternative requirements for,•any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or use by the recipient of these funds and guarantees, except for requirements related to fair housing, nondiscrimination, labor standards, and the environment (including requirements concerning lead based paint), upon a request by the state and a finding by the Secretary that such a waiver would not be inconsistent with the overall purpose of the statute. Additionally, regulatory waiver authority is provided by 24 CFR 5.110, 91.600, and 570.5. The following application and reporting waivers and alternative requirements are in response to requests from each of the states receiving an allocation under this Notice. Federal Register /Vol. 73, No. 177 / Thursday, September 11, 2008 / Notices 52871 The Secretary finds that the following waivers and alternative requirements, as described below, are not inconsistent with the overall purpose of Title I of the Housing and Community Development Act of 1974, as amended (HCD Act), or the Cranston- Gonzalez National Affordable Housing Act, as amended. Under the requirements of the Department of Housing and Urban Development Reform Act of 1989 (the HUD Reform Act), regulatory waivers must be justified and published in the Federal Register. Except as described in this Notice, statutory and regulatory provisions governing the CDBG program for states, including those at 24 CFR part 670, shall apply to the use of these funds. In accordance with the Supplemental Appropriations Act, HUD will reconsider every waiver in this Notice on the two -year anniversary of the day this Notice is published. Additional Waivers Each state receiving an allocation may request additional waivers from the Department as needed to address the specific needs related to that state's recovery activities. The Department will respond separately to the state's requests for waivers of provisions not covered in this Notice, after working with the state to tailor the program to best meet the unique disaster recovery needs in its impacted areas, Allocations The Supplemental Appropriations Act provides $300 million of supplemental appropriation for the CDBG program for: Necessary expenses related to disaster relief, long -term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster under title IV of TABLE 1— FEDERALLY DECLARED DISASTERS IN MAY AND JUNE 2008 the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) as a result of recent natural disasters. The law further notes: That funds provided under this heading shall be administered through an entity or entities designated by the Governor of each state. Provided further, that funds allocated under this heading shall not adversely affect the amount of any formula assistance received by a state under this heading: Provided further, that each state may use up to five percent of its allocation for administrative costs. HUD computes allocations based on data that is generally available covering all the eligible affected areas. Two challenges arose in making this allocation, First, the statute gave very little guidance on what states are to receive funding, so HUD had to determine the eligible universe of grantees. The appropriation calls for funding "recent natural disasters," Since this appropriation was enacted on June 30, 2008, and was developed while there was significant awareness of flooding in the Midwest, the Department's primary assumption was that the funds were targeted to the Midwest flooding. However, there were also several other severe storms, flooding, and tornado events that received major disaster declarations during the same time frame, There were no declared disasters in April 2008, which allows for a natural break and argues that "recent disasters" is most likely to be those occurring after this lull. Therefore, HUD is defining "recent natural disasters" to be all major natural disasters that occurred and were declared from May 1, 2008, through June 30, 2008. This would limit the eligibility for an allocation to disasters in the states shown below. 52872 Federal Register / Vol. 73, No. 177 / Thursday, September 11, 2008 /Notices HUD is aware that other federal programs, such as Federal Emergency Management Agency (FEMA) Public Assistance and Small Business Administration (SBA) loans, exist to support disaster recovery, Compared to the number of major disaster declarations, the number of times Congress has appropriated CDBG supplemental disaster recovery funds is very small. The Department believes it is reasonable to limit the allocations to places experiencing a significant need for additional federal assistance to facilitate long -term recovery and generally applies a funding threshold, in this case, of $2 million. Thus, it is very likely that not all of the eligible universe will be funded. The second challenge in allocating supplemental disaster appropriations is the trade off of a timely allocation versus having the most complete data needed to make a fully informed allocation. CDBG disaster recovery assistance is intended to fund long -term disaster recovery. States need to know relatively quickly how much they are to receive so that they can begin developing their recovery plans. However, a fair allocation generally depends on having good data similarly collected for all eligible states so that the needs of each state are fully taken into consideration. In this case, where funds were appropriated at a time when some of the disasters were still ongoing, the data for most disasters and thus most states is still incomplete. Complete data to make a full allocation may not be available until mid- to late September at the earliest. However, HUD believed it was unreasonable to hold funds that are currently needed as the Department waits for more complete data. As such, HUD is making a two -stage allocation: $100 million was allocated on August 4, 2008, to the three most affected states and the remaining funds will be allocated in mid- September or October when more complete data are available. Enough data were available from FEMA, SBA, and other sources to make reasonable initial allocation to the states with the most severe damage due to the incidents noted in the table above. The Department was concerned that the first stage of the two -stage allocation not over -fund a grantee. Currently, the Department can say with confidence that the following grants would not be over - funding the disaster recovery needs of the states receiving allocations. State Amount allocated Indiana Iowa $10,000,000 85,000,000 Wisconsin State As soon as better data are available, HUD will compute allocations for the remaining $200 million and announce them, A state included in that announcement may immediately proceed to prepare and submit an Action Plan for disaster recovery in accordance with this Notice, although HUD will not be able to make the grant until the allocations are published in the Federal Register. Therefore, HUD commits to determining, announcing, and publishing the additional allocations swiftly once the data are available, HUD will invite each grantee receiving an allocation under the Supplemental Appropriations Act to submit an Action Plan for Disaster Reoovery in accordance with this • c e. The Supplemental Appropriations Act requires funds be used only for disaster relief, long -term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq. as a result of recent natural disasters. The statute directs that each grantee will describe in its Action Plan for Disaster Recovery how the use of the grant funds will address long -term recovery and infrastructure restoration. HUD will monitor compliance with this direction and may be compelled to disallow expenditures if it finds uses of funds are not disaster - related, pr funds allocated duplicate other benefits, HUD encourages grantees to contact their assigned HUD offices for guidance in complying with these requirements during development of their Action Plans for Disaster Recovery or if they have any questions regarding meeting these requirements. As provided for in the Supplemental Appropriations Act, the funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency or the Army Corps of Engineers. Prevention of Fraud, Abuse, and Duplication of Benefits The Supplemental Appropriations Act also directs the Secretary to: Establish procedures to prevent recipients from receiving any duplication of benefits and report quarterly to the Committees on Appropriations with regard to all steps taken to prevent fraud and abuse of funds made available under this heading including duplication of benefits. Amount allocated To meet this directive, HUD is pursuing four courses of action. First, this Notice 5,000,000 includes specific reporting, written procedures, monitoring, and internal audit requirements for grantees. Second, to the extent its resources allow, HUD will institute risk analysis and on -site monitoring of grantee management of the grants and of the specific uses of funds. Third, HUD will be extremely cautious in considering any waiver related to basic financial management . requirements. The standard, time- tested CDBG financial requirements will continue to apply. Fourth, HUD is collaborating with the HUD Office of Inspector General to plan and implement oversight of these funds. Waiver Justification This section of the Notice briefly describes the basis for each waiver and related alternative requirements, if any. Each state eligible for a disaster recovery grant receives annual CDBG allocations, has a consolidated plan, a citizen participation plan, a monitoring plan, and has made CDBG certifications. HUD encourages each CDBG disaster recovery grantee to carry out CDBG disaster recovery activities in the context of its ongoing community development program to the extent feasible (for example, by selecting activities consistent with the consolidated plan, by providing overall benefit to at least 70 percent low- and moderate - income persons, and by holding hearings or meetings to solicit public comment). The waivers, alternative requirements, and statutory changes described in this Notice apply only to the CDBG supplemental disaster recovery funds appropriated in the Supplemental Appropriations Act, not to funds provided under the regular CDBG program. These actions provide additional flexibility in program design and implementation and implement statutory requirements unique to this appropriation. Application for Allocations Under the Supplemental Appropriations Act These waivers arid alternative requirements streamline the pre -grant process and set the guidelines for states' applications for their allocations. HUD encourages each grantee that receives an allocation to submit an Action Plan for Disaster Recovery to HUD as soon as practicable following an allocation announcement. Overall Benefit to Low- and Moderate - Income Persons Pursuant to explicit authority in the Supplemental Appropriations Act, HUD is granting an overall benefit waiver that allows for up to 50 percent of the grant to assist activities under the urgent need or prevention or elimination of slums and blight national objectives, rather than the 30 percent allowed in the annual state CDBG program. The primary objective of Title i of the Housing and Community Development Act and of the funding program of each grantee is "development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." The statute goes on to set the standard of performance for this primary objective . at 70 percent of the aggregate of the funds used for support of activities producing benefit to low- and moderate - income persons. Since extensive damage to community structures and housing affected those with varying incomes, and income- producing jobs are often lost for a period of time following a disaster, HUD is waiving the 70 percent overall benefit requirement, leaving the 50 percent requirement, to give grantees even greater flexibility to carry out recovery activities within the confines of the CDBG program national objectives. HUD may only provide additional waivers of this requirement if it makes a finding of compelling need. The requirement that each activity meet one of the three national objectives is not waived. Expanded Distribution and Direct Action Federal Register /Vol. 73, No. 177 / Thursday, September 11, 2008 / Notices 52873 The waivers and alternative requirements allowing distribution of funds by a state to entitlement communities and Indian tribes, and to allow a state to carry out activities directly rather than distribute all funds to units of local government are consistent with waivers granted for previous, similar disaster recovery cases. HUD believes that, in using very similar statutory language to that used for the CDBG supplemental appropriations for Hurricane Katrina, Rita, and Wilma recovery, Congress is signaling its intent that the states under this appropriation also be able to carry out activities directly. Therefore, HUD is waiving program requirements to support this, HUD is also including in this Notice the necessary complementary waivers and alternative requirements related to subrecipients to ensure proper management and disposition of funds during the grant execution and at closeout. Consistency With the Consolidated Plan HUD is waiving the requirement for consistency with the consolidated plan because the effects of a major disaster usually alter a grantee's priorities for meeting housing, employment, and infrastructure needs, To emphasize that uses of grant funds must be consistent with the overall purposes of the HCD Act, HUD is limiting the scope of the waiver for consistency with the consolidated plan; it applies only until the grantee first updates its consolidated plan priorities following the disaster. Action Plan* for Disaster Recovery HUD is waiving the CDBG action plan requirements and substituting an Action Plan for Disaster Recovery, This will allow rapid implementation of disaster recovery grant programs and ensure conformance with provisions of the Supplemental Appropriations Act. Where possible, the Action Plan for Disaster Recovery, including certifications, does not repeat common action plan elements the grantee has already committed to carry out as part of its annual CDBG submission. Although a state as the grantee may designate an entity or entities to administer the funds, the state is responsible for compliance with federal requirements. During the course of the grant, HUD will monitor the state's use of funds and its actions for consistency with the Action Plan. The state may submit an initial partial Action Plan and amend it one or more times subsequently until the Action Plan describes uses for the total grant amount. The state may also amend activities in its Action Plan, Citizen Participation The citizen participation waiver and alternative requirements will permit a more streamlined public process, but one that still provides for reasonable public notice, appraisal, examination, and comment on the activities proposed for the use of CDBG disaster recovery grant funds. The waiver removes the requirement at both the grantee and state grant recipient levels for public • hearings or meetings as the method for disseminating information or collecting citizen comments, Instead, grantees are encouraged to employ innovative methods to communicate with citizens and solicit their views on proposed uses of disaster recovery funds, and then to indicate in the Action Plan how it has addressed these views. Administration Limitation State program administration requirements must be modified to be consistent with the Supplemental Appropriations Act, which allows up to five percent of the grant to be used for the state's administrative costs. The provisions at 42 U.S.C. 5306(d) and 24 CFR 570.489(a)(1)(i) and (iii) will not apply to the extent that they cap state administration expenditures and require a dollar for dollar match of state funds for administrative costs exceeding $100,000. HUD does not waive 24 CFR 570.489(a)(3) to allow the state to exceed the overall planning, management and administrative cap of 20 percent, Use of subrecipients The State CDBG program rule does not make specific provision for the treatment of the entities called "subrecipients" in the CDBG entitlement program, The waiver allowing the state to carry out activities directly creates a situation in which the state may use subrecipients to carry out activities in a manner similar to entitlement communities rather than using a method of distributing funds to local governments. HUD and its Office of Inspector General have long identified the use of subrecipients as a practice that increases the risk of abuse of funds. HUD's experience is that this risk can be successfully managed by following the CDBG entitlement requirements and related guidance. Therefore, HUD is requiring that a state taking advantage of the waiver allowing it to carry out activities directly must follow the alternative requirements drawn from the CDBG entitlement rule and specified in this Notice when using subrecipients. Reporting HUD is waiving the annual reporting requirement because the Congress requires quarterly reports from the grantees and from HUD on various aspects of the uses of funds and of the activities funded with these grants. Many of the data elements the grantees will report to Congress quarterly are the same as those that HUD will use to exercise oversight for compliance with the requirements of this Notice and for prevention of fraud, abuse of funds, and duplication of benefits. To collect these data elements and to meet its reporting requirements, HUD is requiring each grantee to report to HUD quarterly using the online Disaster Recovery Grant Reporting (DRGR) system, which uses a streamlined, Internet-based format. HUD will use grantee reports to monitor for anomalies or performance problems that suggest fraud, abuse of funds, and duplication of benefits; to reconcile budgets, obligations, fund draws, and expenditures; and to calculate 52874 Federal Register / Vol, 73, No. 177 / Thursday, September 11, 2008 /Notices applicable administrative and public service limitations and the overall percent of benefit to low - and moderate - income persons, and as a basis for risk analysis in determining a monitoring plan. The grantee must post the report on a Web site for its citizens within 3 days of the report's submission to HUD. If a grantee chooses, it may use this report, together with a statement regarding any sole source procurements, as its required quarterly submission to the Committees on Appropriations. Each • quarter, HUD will submit to the Committees a summary description of its report reviews, other HUD monitoring and technical assistance activities undertaken during the quarter, and any significant conclusions related to fraud or abuse of funds or duplication of benefits. Eligibility— Housing Related The waiver of Section. 105(a) of the 1974 Act that allows new housing construction and of Section 105(a)(24), to allow homeownership assistance for families whose income is up to 120 percent of median income and payment of up to 100 percent of a housing down payment is necessary following major disasters in which large numbers of affordable housing units have been damaged or destroyed, as is the case in_ the, disaster eligible under this notice. The broadening of the Section 105(a)(24) waiver, in accordance with the state's request, will allow the state to implement mixed -use housing recovery programs included in its HUD - accepted action plan, Anti- Pirating The limited waiver of the anti - pirating requirements allows the flexibility to provide assistance to a business located in another state or market area within the same state if the business was displaced from a declared area within the state by the disaster and the business wishes to return, This waiver is necessary to allow a grantee affected by a major disaster to rebuild its employment base. Relocation Requirements The states' plan to engage in voluntary acquisition and optional relocation activities (in a form often called "buyouts ") by using waivers related to acquisition and relocation requirements under the Uniform - Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. 4601 et seq.) (URA) and the replacement of housing and relocation assistance provisions under section 104(d) of the HCD Act. The states asked for waivers to help promote the acquisition of property and the replacement of housing in a timely and efficient manner. CDBG funds are federal financial assistance so their use in projects that involve acquisition of property necessary for a federally assisted project, or that involve acquisition, demolition, or rehabilitation that force a person to move permanently, are subject' to the URA and the government -wide implementing regulations found at 49 CFR part 24. The URA provides assistance and protections to individuals and businesses affected by Federal or federally assisted projects. HUD is waiving the following URA requirements to help promote accessibility to suitable decent, safe, and sanitary housing for Midwest flooding victims. The acquisition requirements of the URA and implementing regulations are waived so that they do not apply to an arm's length voluntary purchase carried out by a person that does not have the power of eminent domain, in connection with the purchase and occupancy of a principal residence by that person. The failure to suspend these requirements would impede disaster recovery and may result in windfall payments. A limited waiver of the URA. implementing regulations to the extent that they require grantees to provide URA financial assistance sufficient to reduce the displaced person's post- ' displacement rent /utility cost to 30 percent of household income. The failure to suspend these one - size - fits -all requirements could impede disaster recovery. To the extent that a tenant has been paying rents in excess of 30 percent of household income without demonstrable hardship, rental assistance payments to reduce tenant costs to 30 percent would not be required. The URA and implementing regulations to the extent necessary to permit a grantee to meet all or a portion of a grantee's replacement housing financial assistance obligation to a displaced renter by offering rental housing through a tenant -based rental assistance (TBRA) housing program subsidy (e.g., Section 8 rental voucher or certificate) provided that the renter is also provided referrals to suitable, available rental replacement dwellings where the owner is willing to participate in the TBRA program, and the period of authorized assistance is at least 42 months. Failure to grant the waiver would impede disaster recovery whenever TBRA program subsidies are available but funds for cash relocation assistance are limited. The change provides access to an additional relocation resource option. The URA and implementing regulations to the extent that they require a grantee to offer a person displaced from a dwelling unit the option to receive a "moving expense and dislocation allowance" based on the current schedule of allowances prepared by the Federal Highway Administration, provided that the grantee establishes and offers the person a moving expense and dislocation allowance under a schedule of allowances that is reasonable for the jurisdiction and takes into account the number of rooms in the displacement dwelling, whether the person owns and must move the • furniture, and, at a minimum, the kinds of expenses described in 49 CFR 24.801. Failure to suspend this provision would impede disaster recovery by'requiring grantees to offer allowances that do not reflect current local labor and transportation costs. Persons displaced from a dwelling remain entitled to choose a payment for actual reasonable moving and related expenses if they find that approach preferable to the locally established moving expense and dislocation allowance. In addition to the URA waivers, HUD is waiving requirements of section 104(d) of the HCD Act dealing with one- for -one replacement of low- and moderate - income housing units demolished or converted in connection with a CDBG- assisted development project for housing units damaged by one or more disasters. HUD is waiving this requirement because it does not take into account the large, sudden changes a major disaster may cause to the local housing stock, population, or local economy. Further, the requirement does not take into account the threats to public health and safety and to economic revitalization that may be caused by the presence of disaster - damaged structures that are unsuitable for rehabilitation. As it stands, the requirement would impede disaster recovery and discourage grantees from acquiring, converting, or demolishing disaster - damaged housing because of excessive costs that would result from replacing all such units within the specified timeframe. HUD is also waiving the relocation assistance requirements contained in section 104(d) of the HCD Act to the extent they differ from those of the URA (42 U.S.G. 4601 et seq.). This change will simplify implementation while preserving statutory protections for persons displaced by projects assisted with CDBG disaster recovery grant funds. Federal Register/Vol. 73, No. 177 /Thursday, September 11, 2008 /Notices 52875 Iowa has indicated that an additional reason for these waivers is related to its decision to administer some buyouts that will include in the same project funds under this notice and FEMA mitigation funding, The statutory requirements of the URA are also applicable to the administration of FEMA assistance, and disparities in rental assistance payments for activities funded by HUD and that agency will . thus be eliminated, FEMA is subject to the requirements of the URA, Pursuant to this authority, FEMA requires that rental assistance payments be calculated on the basis of the amount necessary to lease or rent comparable housing for a period of 42 months. HUD is also subject to these requirements, but is also covered by alternative relocation provisions authorized under 42 U.S.C. 5304(d)(2)(A)(iii) and (iv) and implementing regulations at 24 CFR 42.350. These alternative relocation benefits, available to low- and moderate - income displacees opting to receive them in certain HUD programs, require the calculation of similar rental assistance payments on the basis of 60 months, rather than 42 months, thereby creating a disparity between the available benefits offered by HUD and FEMA (although not always an actual cash difference). The waiver assures uniform and equitable treatment by allowing the URA benefits requirements to be the standard for assistance under this notice. Program Income A combination of CDBG provisions limits the flexibility available to the states for the use of program income. Prior to 2002, program income earned on disaster recovery grants has usually been program income in accordance with the rules of the regular CDBG program of the applicable state and has ' lost its disaster grant identity, thus losing use of the waivers and streamlined alternative requirements. Also, the State CDBG program rule and law are designed for a program in which the state distributes all funds rather than carrying out activities directly. The HCD Act specifically provides for a local government receiving CDBG grants from a state to retain program income if it uses the funds for additional eligible activities under the annual CDBG program. The HCD Act allows the state to require return of the program income to the state under certain circumstances. This notice waives the existing statute and regulations to give the states, in all circumstances, the choice of whether a local government receiving a distribution of CDBG disaster recovery funds and using program income for activities in the Action Plan may retain this income and use it for additional disaster recovery activities. In addition, this notice allows program income to the disaster recovery grant generated by activities undertaken directly by the state or its agent(s) to retain the original disaster recovery grant's alternative requirements and waivers and to remain under the state's discretion until grant closeout, at which point any program income on hand or received subsequently will become program income to the state's annual CDBG program. The alternative requirements provide all the necessary conforming changes to the program income regulations. Certifications HUD is waiving the standard certifications and substituting alternative certifications. The alternative certifications are tailored to CDBG disaster recovery grants and remove certifications and references that are redundant or appropriate to the annual CDBG formula program. Applicable Rules, Statutes, Waivers, and Alternative Requirements Pre - Grant Process 1. General note. Prerequisites to a grantee's receipt of CDBG disaster recovery assistance include adoption of a citizen participation plan; publication of its proposed Action Plan for Disaster Recovery; public notice and comment; and submission to HUD of an Action Plan for Disaster Recovery, including certifications, Except as described in this Notice, statutory and regulatory provisions governing the Community Development Block Grant program for states, including those at 42 U.S.C. 5301 et seq. and 24 CFR part 570, shall apply to the use of these funds. 2. Overall benefit waiver and alternative requirement. The requirements at 42 U.S.C. 5301(c), 42 U.S.C. 5304(b)(3)(A), and 24 CFR 570.484 that 70 percent of funds are for activities that benefit low- and moderate - income persons are waived to stipulate that at least 50 percent of disaster recovery grant funds are for activities that principally benefit low - and moderate - income persons. 3. Direct grant administration by states and means of carrying out eligible activities, Requirements at 42 U.S.C. 5306 are waived to the extent necessary to allow a state to use its disaster recovery grant allocation directly to carry out state- administered activities eligible under this Notice. Activities eligible under this Notice may be undertaken, subject to state law, by the recipient through its employees, or through procurement contracts, or through loans or grants under agreements with subrecipients, or by one or more entities that are designated by the chief executive officer of the state. Unless a waiver provides otherwise, activities made eligible under section 105(a)(15) of the HCD Act, as amended, may only be undertaken by entities specified in that section, whether the assistance is provided to such an entity from the state or from a unit of general local government. 4. Consolidated Plan waiver, Requirements at 42 U.S.C. 12706 and 24 CFR 91.325(a)(6), that housing activities undertaken with CDBG funds be consistent with the strategic plan, are waived. Further, 42 U,S.C. 5304(e), to the extent that it would require HUD to annually review grantee performance under the consistency criteria, is also waived. These waivers apply only until the time that the grantee first updates the consolidated plan priorities following the disaster. 5, Citizen participation waiver and alternative requirement. Provisions of 42 U.S.C, 5304(a)(2) and (3), 42 U.S.C. 12707, 24 CFR 570.486, and 24 CFR 91.115(b) with respect to citizen participation requirements are waived and replaced by the requirements below. The streamlined requirements do not mandate public hearings at either the state or local government level, but do require providing a reasonable opportunity (at least 7 days) for citizen comment and ongoing citizen access to information about the use of grant funds, The streamlined citizen participation requirements for this grant are: a. Before the grantee adopts the action plan for this grant or any substantial amendment to this grant, the grantee will publish the proposed plan or amendment (including the information required in this Notice for an Action Plan for Disaster Recovery). The manner of publication (including prominent posting on the state, local, or other relevant Web site) must afford citizens, affected local governments and other interested parties a reasonable opportunity to examine the plan or amendment's contents. Subsequent to publication, the grantee must provide a reasonable time period and methods) (including electronic submission) for receiving comments on the plan or substantial amendment, The grantee's plans to minimize displacement of persons or entities and to assist any persons or entities displaced must be published with the action plan. b. In the action plan, each grantee will specify its criteria for determining what 52876 Federal Register /Vol. 73, No. 177 /Thursday, September 11, 2008 /Notices changes in the grantee's activities constitute a substantial amendment to the plan. At a minimum, adding or deleting an activity or changing the planned beneficiaries of an activity will constitute a substantial change. The grantee may modify or substantially amend the action plan if it follows the same procedures required in this Notice for the preparation and submission of an Action Plan for Disaster Recovery. The grantee must notify HUD, but is not required to notify the public, when it makes any plan amendment that is not substantial, c. The grantee must consider all comments received on the action plan or any substantial amendment and submit to HUD a summary of those comments and the grantee's response with the action plan or substantial amendment. d. The grantee must make the action plan, any substantial amendments, and all performance reports available to the public. HUD recommends posting them on the Internet. In addition, the grantee must make these documents available in a form accessible to persons with disabilities and non-English-speaking persons, During the term of this grant, the grantee will provide citizens, affected local governments, and other interested parties reasonable and timely access to information and records relating to the action plan and the grantee's use of this grant. e. The grantee will provide.a timely written response to every citizen complaint. Such response will be provided within 15 working days of the receipt of the complaint, if practicable. 6. Modify requirement for consultation with local governments. Currently, the statute and regulations require consultation with affected units of local government in the non- • entitlement area of the state regarding the state's proposed method of distribution. HUD is waiving 42 U.S.C. 5306(d)(2)(C)(iv), 24 CFR 91.325(b), and 24 CFR 91.110, with the alternative requirement that the state consult with all disaster- affected units of general local government, including any CDBG entitlement communities, in determining the use of funds. 7. Action Plan waiver and alternative requirement, The requirements at 42 U.S.C. 12705(a)(2), 42 U.S,C. 5304(a)(1), 42 U,S,C. 5304(m), 42 U,S.C. 5306(d)(2)(C)(iii), 24 CFR 1003.604, and 24 CFR 91.320 are waived for these disaster recovery grants. Each state must submit to HUD an Action Plan for ' Disaster Recovery that describes: a. The effects of the covered disasters, especially in the most impacted areas and populations, and the greatest recovery needs resulting from the covered disasters that have not been addressed by insurance proceeds, other federal assistance or any other funding source; b. The grantee's overall plan for disaster recovery including; (1) How the state will promote sound short- and long -term recovery planning at the state and local levels, especially land use decisions that reflect responsible flood plain management, removal of regulatory barriers to reconstruction, and prior coordination with planning requirements of other state and Federal programs and entities; (2) How the state will encourage construction methods that emphasize high quality, durability, energy efficiency, sustainability, and mold resistance, including how the state will promote enactment and enforcement of modern building codes and mitigation of flood risk where appropriate; and (3) How the state will provide or encourage provision of adequate, flood - resistant housing for all income groups that lived in the disaster affected areas prior to the incident date(s) of the applicable disaster(s), including a description of the activities it plans to undertake to address emergency shelter and transitional housing needs of homeless individuals and families (including subpopulations), to prevent low - income individuals and families with children (especially those with incomes below 30 percent of median) from becoming homeless, to help homeless persons make the transition to permanent housing and independent living, and to address the special needs of persons who are not homeless identified in accordance with 24 CFR 91,315(d); c. Monitoring standards and procedures that are sufficient to ensure program requirements, including non - duplication of benefits, are met and that provide for continual quality assurance, investigation, and internal audit functions, with responsible staff reporting independently to the Governor of the state or, at a minimum, to the chief officer of the governing body of any designated administering entity; d, A description of the steps the state will take to avoid or mitigate occurrences of fraud, abuse, and mismanagement, especially with respect to accounting, procurement, and accountability, with a description of how the state will provide for increasing the capacity for implementation and compliance of local government grant recipients, subreciplents, subgrantees, contractors, and any other entity responsible for administering activities under this grant; and e. Method of distribution. The state's method of distribution shall include descriptions of the method of allocating funds to units of local government and of specific projects the state will carry out directly, as applicable. The descriptions will include: (1) When funds are to be allocated to units of local government, all criteria used to select applications from local governments for funding, including the relative importance of each criterion, and including a description of how the disaster recovery grant resources will be allocated among all funding categories and the threshold factors and grant size limits that are to be applied; and (2) When the state will carry out activities directly, the projected uses for the CDBG disaster recovery funds by responsible entity, activity, and geographic area; (3) How the method of distribution to local governments or use of funds described in accordance with the above subparagraphs will result in eligible uses of grant funds related to long-term recovery from specific effects of the disaster(s) or restoration of infrastructure; and (4) Sufficient information so that citizens, units of general local government and other eligible subgrantees or subreclpients will be able to understand and comment on the action plan and, if applicable, be able to prepare responsive applications to the state. f. Required certifications (see the applicable Certifications section of this Notice); and g. A completed and executed Federal form SF -424. 6. Allow reimbursement for pre - agreement costs. The provisions of 24 CFR 570.489(b) are applied to permit a grantee to reimburse itself for otherwise - allowable costs incurred on or after the incident date of the covered disaster. 9. Clarifying note on the process for environmental release of funds when a state carries out activities directly. Usually, a state distributes CDBG funds to units of local government and takes on HUD's role in receiving environmental certifications from the grant recipients and approving releases of funds. For this grant, HUD will allow a state grantee to also carry out activities directly instead of distributing them to other governments. According to the environmental regulations at 24 CFR 58.4, when a state carries out activities directly, the state must submit the certification, and request for release of funds to HUD for approval, 10. Duplication of benefits. In general, 42 U.S.C. 5155 (section 312 of the Robert T. Stafford Disaster Assistance Federal Register /Vol. 73, No. 177 /Thursday, September 11, 2008 / Notices 52877 and Emergency Relief Act, as amended) prohibits any person, business concern, or other entity from receiving financial assistance with respect to any part of a loss resulting from a major disaster as to which he has received financial assistance under any other program or from insurance or any other source. The Supplemental Appropriations Act stipulates that funds may not be used for activities reimbursable by or for which funds have been made available by the Federal Emergency Management Agency or by the Army Corps of Engineers. 11. Waiver and alternative requirement for distribution to CDBG metropolitan cities and urban counties. a, Section 5302(a)(7) of title 42, U.S.C. (definition of "nonentitlement area ") and provisions of 24 CFR part 570 that would prohibit a state from distributing CDBG funds to units of general local government regardless of their status in the entitlement CDBG program and to Indian tribes, are waived, including 24 CFR 570.480(a), to the extent that such provisions limit the distribution of funds to units of general local government located in entitlement areas and to state or Federally recognized Indian tribes. The state is required instead to distribute funds to the most affected and impacted areas related to the consequences of the covered disaster(s) without regard to a local government or Indian tribe status under any other CDBG program. b. Additionally, because a state grantee under this appropriation may carry out activities directly, HUD is applying the regulations at 24 CFR 570.480(0) with respect to the basis for HUD determining whether the state has failed to carry out its certifications so that such basis shall be that the state has failed to carry out its certifications in compliance with applicable program requirements. Also, 24 CFR 570.494 regarding timely distribution of funds is waived. However, HUD expects each state grantee to expeditiously obligate and expend all funds, including any . recaptured funds or program income, and to carry out activities in a timely manner. 12. Program income alternative requirement. 42 U.S.C. 5304(j) and 24 CFR 570.489(e) are waived to the extent necessary to allow additional flexibility in the administration of program income. The requirements that are retained are republished here for the convenience of the grantees. a. Program income. (1) For the purposes of this subpart, "program income" is defined as gross income received by a state, a unit of general local government, a tribe or a subrecipient of a state, a unit of general local government or a tribe that was generated from the use of CDBG funds, except as provided in paragraph (a)(2) of this section. When income is generated by an activity that is only partially assisted with CDBG funds, the income shall be prorated to reflect the percentage of CDBG funds used (e.g., a single loan supported by CDBG funds and other funds; a single parcel of land purchased with CDBG funds and other funds). Program income includes, but is not limited to, the following: (i) Proceeds from the disposition by sale or long -term lease of real property purchased or improved with CDBG funds; (ii) Proceeds from the disposition of equipment purchased with CDBG funds; (iii) Gross income from the use or rental of real or personal property acquired by the unit of general local government or tribe or subrecipient of a state, a tribe or a unit of general local government with CDBG funds; less the costs incidental to the generation of the income; (iv) Gross income from the use or rental of real property owned by a state, tribe or the unit of general local government or a subrecipient of a state, tribe or unit of general local government, that was constructed or improved with CDBG funds, less the costs incidental to the generation of the income; (v) Payments of principal and interest on loans made using CDBG funds; (vi) Proceeds from the sale of loans made with CDBG funds; (vii) Proceeds from the sale of obligations secured by loans made with CDBG funds; (viii) Interest earned on program income pending disposition of the income, but excluding interest earned on funds held in a revolving fund account; (ix) Funds collected through special assessments made against properties owned and occupied by households not of low and moderate income, where the special assessments are used to recover all or part of the CDBG portion of a public improvement; and (x) Gross income paid to a state, tribe or a unit of general local government or subrecipient from the ownership interest in a for - profit entity acquired in return for the provision of CDBG assistance. (2) "Program income" does not include the following: (i) The total amount of funds which is less than $25,000 received in a single year that is retained by a unit of general local government, tribe or subrecipient; (ii) Amounts generated by activities eligible under section 105(a)(15) of the HCD Act and carried out by an entity under the authority of section 105(a)(15) of the HCD Act; (3) The state may permit the unit of general local government or tribe which receives or will receive program income to retain the program income, subject to the requirements of paragraph (a)(3)(ii) of this section, or the state may require the unit of general local government or tribe to pay the program income to the state. (i) Program income paid to the state. Program income that is paid to the state or received by the state is treated as additional disaster recovery CDBG funds subject to the requirements of this notice and must be used by the state or distributed to units of general local government in accordance with the state's Action Plan for Disaster Recovery. To the maximum extent feasible, program income shall be used or distributed before the state makes additional withdrawals from the Treasury, except as provided in paragraph (b) of this section. (ii) Program income retained by a unit of general local government or tribe. (A) Program income that is received and retained by the unit of general local government or tribe before closeout of the grant that generated the program income is treated as additional disaster recovery CDBG funds and is subject to the requirements of this notice, (B) Program income that is received and retained by the unit of general local government or tribe after closeout of the grant that generated the program income, but that is used to continue the disaster recovery activity that generated the program income, is subject to the waivers and alternative requirements of this notice. (C) All other program income is subject to the requirements of 42 U.S.C. 5304(j) and subpart I of 24 CFR part 570. (D) The state shall require units of general local government or tribes, to the maximum extent feasible, to disburse program income that is subject to the requirements of this notice before requesting additional funds from the state for activities, except as provided in paragraph (b) of this section, (b) Revolving funds, (1) The state may establish or permit units of general local government or tribes to establish revolving funds to carry out specific, identified activities. A revolving fund, for this purpose, is a separate fund (with a set of accounts that are independent of other program accounts) established to carry out specific activities which, in turn, 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 payments to the revolving fund are program income and must be substantially disbursed from the revolving fund before additional grant funds are drawn from the Treasury for revolving fund activities. Such program income is not required to be disbursed for non - revolving fund activities. (2) The state may also establish a revolving fund to distribute funds to units of general local government or tribes to carry out specific, identified activities. A revolving fund, for this purpose, is a separate fund (with a set of accounts that are independent of other program accounts) established to fund grants to units of general local . government to carry out specific activities which, in turn, generate payments to the fund. for additional grants to units of general local government to carry out such activities. Program income in the revolving fund must be disbursed from the fund before additional grant funds are drawn from the Treasury for payments to units of general local government which could be funded from the revolving fund. (3) A revolving fund established by either the state or unit of general local government shall not be directly funded or capitalized with grant funds. (c) Transfer of program income. Notwithstanding other provisions of this notice, the state may transfer program income before closeout of the grant that generated the program income to its own annual CDBG program or to any annual CDBG- funded activities administered by a unit of general local government or Indian tribe within the state. (d) Program income on hand at the state or its subrecipients at the time of grant closeout by HUD and program income received by the state after such grant closeout shall be program income to the most recent annual CDBG program grant of the state. 13. Note that use of grant funds must relate to the covered disaster(s). In addition to being eligible under 42 U.S.C. 5305(a) or this Notice and meeting a CDBG national objective, the Supplemental Appropriations Act requires that activities funded under this Notice must also be for necessary expenses related to disaster relief, long- term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seg.) as a result of the recent natural disaster or disasters listed in this Notice for which the state received a funding allocation. 13a. Note on change to administration limitation. Up to five percent of the grant amount may be used for the state's administrative costs. The provisions of 42 U.S.C. 5306(d) and 24 CFR 570,489(a)(1)(i) and (iii) will not apply to the extent that they cap state administration expenditures, limit a state's ability to charge a de minimis application fee for grant applications for activities the state carries out directly, and require a dollar for dollar match of state funds for administrative costs exceeding $100,000. HUD does not waive 24 CFR 570.489(a)(3) to allow the state to exceed the overall planning, management and administrative cap of 20 percent. Reporting 14. Waiver of performance report and alternative requirement. The requirements for submission of a Performance Evaluation Report (PER) pursuant to 42 U.S.C. 12708 and 24 CFR 91.520 are waived. The alternative requirement is thet— a, Each grantee must submit its Action Plan for Disaster Recovery, including performance measures, into HUD's Web - based Disaster Recovery Grant Reporting (DRGR) system. (The signed certifications and the SF-424 must be submitted in hard copy.) As additional detail about uses of funds becomes available to the grantee, the grantee must enter this detail into DRGR, in sufficient detail to serve as the basis for acceptable performance reports. b. Each grantee must submit a quarterly performance report, as HUD prescribes, no later than 30 days following each calendar quarter, beginning after the first full calendar quarter after grant award and continuing until all funds have been expended and all expenditures reported. Each quarterly report will include information about the uses of funds during the applicable quarter including (but not limited to) the project name, activity, location, and national objective, funds budgeted, obligated, drawn down, and expended; the funding source and total amount of any non -CDBG disaster funds; beginning and ending dates of activities; and performance measures such as numbers of low- and moderate- income persons or households benefiting. Quarterly reports to HUD must be submitted using HUD's Web -based DRGR system and, within 3 days of submission, posted on the grantee's official Internet site open to the public. 15. Use of subrecipients. The following alternative requirement applies for any activity that a state carries out directly by funding a subrecipient: a. 24 (.a k( 570.503, except that specific references to 24 U.FR parts 84 and 85 need not be included in subrecipient agreements. b. 24 CFR 570.502(b), except that HUD recommends but does not require application of the requirements of 24 CFR part 84. 16, Recordkeeping. Recognizing that the state may carry out activities directly, 24 CFR 570.490(b) is waived in such a case and the following alternative provision shall apply: state records, The state shall establish and maintain such records as may be necessary to facilitate review and audit by HUD of the state's administration of CDBG disaster recovery funds under 24 CFR 570.493. Consistent with applicable statutes, regulations, waivers and alternative requirements, and other federal requirements, the content of records maintained by the state shall be sufficient to: enable HUD to make the • applicable determinations described at 24 CFR 570.493; make compliance determinations for activities carried out directly by the state; and show how activities funded are consistent with the descriptions of activities proposed for funding in the action plan. For fair housing and equal opportunity purposes, and as applicable, such records shall include data on the racial, ethnic, and gender characteristics of persons who are applicants for, participants in, or beneficiaries of the program. 17. Change of use of real property. This waiver conforms the change of use of real property rule to the waiver allowing a state to carry out activities directly. For purposes of this program, in 24 CFR 570.489(j), (j)(1), and the last sentence of (j)(2), "unit of general local government" shall be read as "unit of general local government or state." 18. Responsibility for state review and handling of noncompliance. This change conforms the rule with the waiver allowing the state to carry out activities directly. 24 CFR 570.492 is waived and the following alternative requirement applies: The state shall make reviews and audits including on- site reviews of any subrecipients, designated public agencies, and units of general local government as may be necessary or appropriate to meet the requirements of section 104(e)(2) of the HCD Act, as amended, as modified by this Notice. In the case of noncompliance with these requirements, the state shall take such actions as may be appropriate to prevent a continuance of the deficiency, mitigate any adverse effects or consequences and prevent a recurrence, The state shall establish remedies for noncompliance by any designated public agencies or units of general local governments and for its subrecipients. 19. Housing - related eligibility waivers. 42 U.S.C. 5305(a) is waived to the extent necessary to allow homeownership assistance for households with up to 120 percent of area median income and downpayment assistance for up to 100 percent of the down payment (42 U.S.C. 5305(a)(24)(D)) and to allow new housing construction. 20. Waiver and modification of the anti- pirating clause to permit assistance to help a business return, 42 U.S.C. 5305(h) and 24 CFR 570.482 are hereby waived only to allow the grantee to provide assistance under this grant to any business that was operating in the covered disaster area before the incident date of the applicable disaster, and has since moved in whole or in part from the affected area to another state or to a labor market area - within the same state to continue business. Relocation Requirements 21. Waiver of one - for -one replacement of units damaged by disaster. a. One - for -one replacement requirements at 42 U.S.C. 5304(d)(2) and (d)(3), and 24 CFR 42.375(a) are waived for low- and moderate - income dwelling units (1) damaged by the disaster, (2) for which CDBG funds are used for demolition, and (3) which are not suitable for rehabilitation. b. Relocation assistance requirements at 42 U.S.C. 5304(d)(2)(A), and 24 CFR 42.350 are waived to the extent they • differ from those of the URA and its implementing regulations at 49 CFR part 24 following waivers to activities involving buyouts and other activities covered by the URA and related to disaster recovery housing activities assisted by the funds covered by this notice and included in an approved Action Plan, c. The requirements at 49 CFR 24.101(b)(2)(i) —(ii) are waived to the extent that they apply to an arm's length voluntary purchase carried out by a person that does not have the power of eminent domain, in connection with the purchase and occupancy of a principal residence by that person. d. The requirements at sections 204(a) and 206 of the URA, 49 CFR 24.2, 24.402(b)(2) and 24.404 are waived to the extent that they require the state to provide URA financial assistance, sufficient to reduce the displaced person's post - displacement rent /utility cost to 30 percent of household income. To the extent that a tenant has been Federal Register/Vol. 73, No. 177 / Thursday, September 11, 2008 I Notices 52879 paying rents in excess of 30 percent of household income without demonstrable hardship, rental assistance payments to reduce tenant costs to 30 percent would not be required. Before using this waiver, the state must establish a definition of "demonstrable hardship." e. The requirements of sections 204 and 205 of the URA, and 49 CFR 24.402(b) are waived to the extent necessary to permit a grantee to meet all or a portion of a grantee's replacement housing financial assistance obligation to a displaced renter by offering rental housing through a tenant -based rental assistance (TBRA) housing program subsidy (e.g., Section 8 rental voucher or certificate) provided that the renter is also provided referrals to suitable, available rental replacement dwellings where the owner is willing to participatr13re T progra acrd the period of authorized assistance is at least 42 months. f. The requirements of section 202(b) of the URA and 49 CFR 24.302 are waived to the extent that they require a grantee to offer a person displaced from a dwelling unit the option to receive a "moving expense and dislocation allowance" based on the current schedule of allowances prepared by the Federal Highway Administration, provided that the grantee establishes and offers the person a moving expense and dislocation allowance under a schedule of allowances that is reasonable for the jurisdiction and takes into account the number of rooms in the displacement dwelling, whether the person owns and must move the furniture, arid, at a minimum, the kinds of expenses described in 49 CFR 24.301. 22. Notes on flood buyouts: a, Payment of pre -flood values for buyouts. HUD disaster recovery state grant recipients and Indian tribes have the discretion to pay pre -flood or post -flood values for the acquisition of properties located in a flood way or floodplain. In using CDBG disaster recovery funds for such acquisitions, the grantee must uniformly apply whichever valuation method it chooses. b. Ownership and maintenance of acquired property. Any property acquired with disaster recovery grants funds being used to match FEMA Section 404 Hazard Mitigation Grant Program funds is subject to section 404(b)(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, which requires that such property be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, or wetlands management practices. In addition, with minor exceptions, no new structure may be erected on the property and no subsequent application for Federal disaster assistance may be made for any purpose. The acquiring entity may want to lease such property to adjacent property owners or other parties for compatible uses in return for a maintenance agreement. Although Federal policy encourages Ieasing rather than selling such property, the property may be sold. In all cases, a deed restriction or covenant running with the land must require that the property be dedicated and maintained for compatible uses in perpetuity. c. Future Federal assistance to owners remaining in floodplain, (1) Section 682 of the National Flood Insurance Reform Act of 1994, as amended, (42 U.S.C. 6154(a)) prohibits flood disaster assistance in certain circumstances. In generalrit provide that no Federal disaster relief assistance made available in a flood disaster area may be used to make a payment (including any loan assistance payment) to a person for repair, replacement, or restoration for damage to any personal, residential, or commercial property, if that person at any time has received Federal flood disaster assistance that was conditional on the person first having obtained flood insurance under applicable Federal law and the person has subsequently failed to obtain and maintain flood insurance as required under applicable Federal law on such property. (Section 582 is self - implementing without regulations.) This means that a grantee may not provide disaster assistance for the above - mentioned repair, replacement, or restoration to a person that has failed to meet this requirement. (2) Section 582 also implies a responsibility for a grantee that receives CDBG disaster recovery funds or that, under 42 U.S.C. 5321, designates annually appropriated CDBG funds for disaster recovery. That responsibility is to inform property owners receiving disaster assistance that triggers the flood insurance purchase requirement that they have a statutory responsibility to notify any transferee of the requirement to obtain and maintain flood insurance, and that the transferring owner may be liable if he or she fails to do so. These . requirements are described below. (3) Duty to notify. In the event of the transfer of any property described in paragraph d., the transferor shall, not later than the date on which such transfer occurs, notify the transferee in writing of the requirements to (i) Obtain flood insurance in accordance with applicable Federal law 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 on which the property is transferred; and (if) Maintain flood insurance in accordance with applicable Federal law with respect to such property. Such written notification shall be contained in documents evidencing the transfer of ownership of the property. (4) Failure to notify. If a transferor fails to provide notice as described above and, subsequent to the transfer of the property: (1) The transferee fails to obtain or maintain flood insurance, in accordance with applicable Federal law, with respect to the property; (ii) The property is damaged by a flood disaster; and (iii) Federal disaster relief assistance is provided for the repair, replacement, or restoration of the property as a result of such damage, the transferor shall be required to reimburse the Federal Government in an amount equal to the amount of the Federal disaster relief assistance provided with respect to the property. d. The notification requirements apply to personal, commercial, or residential property for which Federal disaster relief assistance made available in a flood disaster area has been provided, prior to the date on which the property is transferred, for repair, replacement, or restoration of the property, if such assistance was conditioned upon obtaining flood insurance in accordance with applicable Federal law with respect to such property. e. The term "Federal disaster relief assistance" applies to HUD or other Federal assistance for disaster relief in "flood disaster areas." The term "flood disaster area" is defined in section 582(d)(2) of the National Flood Insurance Reform Act of 1994, as amended, to include an area receiving a Presidential declaration of a major disaster or emergency as a result of flood conditions, 23, Information collection approval note. HUD has approval for information collection requirements in accordance • with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 -3520) under OMB control number 2508 -0165. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, nor is a person required to respond to, a collection of information unless the collection displays a valid control number. Certifications 24. Certifications for state governments, waiver and alternative requirement. Section 91.325 of title 24 of the Code of Federal Regulations is waived. Each state must make the following certifications prior to receiving a CDBG disaster recovery • grant: a. The state certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the state, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (See 24 CFR 570.487(b)(2).) b. The state certifies that it has in effect and is following a residential anti - displacement and relocation assistance plan in connection with any activity assisted with funding under the CDBG program. • c. The state certifies its compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by part 87. d. The state certifies that the Action Plan for Disaster Recovery is authorized under state law and that the state, and any entity or entities designated by the state, possesses the legal authority to carry out the program for which it is seeking funding, in accordance with applicable HUD regulations and this Notice. e. The state certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR part 24, except where waivers or alternative requirements are provided for this grant. f, The state certifies that it will comply with section 3 of the •Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. g. The state certifies that it is following a detailed citizen participation plan that satisfies the requirements of 24 U1'R 91.115 (except as provided for in notices providing waivers and alternative requirements for this grant), and that each unit of general local government that is receiving assistance from the state is following a detailed citizen participation plan that satisfies the requirements of 24 CFR 570.486 (except as provided for in notices providing waivers and alternative requirements for this grant). h. The state certifies that it has consulted with affected units of local government in counties designated in covered major disaster declarations in the nonentitlement, entitlement and tribal areas of the state in. determining the method of distribution of funding; i. The state certifies that it is complying with each of the following criteria: (1) Funds will be used solely for necessary expenses related to disaster relief, long -term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergen Assistance Act (42 U.S.C. 5121 et seq .) as a result of recent natural disasters. (2) With respect to activities expected to be assisted with CDBG disaster recovery funds, the action plan has been developed so as to give the maximum feasible priority to activities that will benefit low- and moderate - income families. (3) The aggregate use of CDBG disaster recovery funds shall principally benefit low- and moderate - income families in a manner that ensures that at least 50 percent of the amount is expended for activities that benefit such persons during the designated period. (4) The state will not attempt to recover any capital costs of public improvements assisted with CDBG disaster recovery grant funds, 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 (A) disaster recovery grant funds 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 this title; or (B) for purposes of assessing any amount against properties owned and occupied by persons of moderate income, the grantee certifies to the Secretary that it lacks sufficient CDBG funds (in any form) to comply with the requirements of clause (A). j. The state certifies that the grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and the Fair Housing Act (42 U.S.C. 3601 -3619) and implementing regulations, k, The state certifies that it has and that it will require units of general local government that receive grant funds to certify that they have adopted and are enforcing: (1) A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and (2) A policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location that is the subject of such non - violent civil rights demonstrations within its jurisdiction. 1. The state certifies that each state grant recipient or administering entity has the capacity to carry out disaster recovery activities in a timely manner, or the state has a plan to increase the capacity of any state grant recipient or administering entity who lacks such capacity m. The state certifies that it will not use CDBG disaster recovery funds for any activity in an area delineated as a special flood hazard area in FEMA's most current flood advisory maps unless it also ensures that the action is designed or modified to minimize harm to or within the floodplain in accordance with Executive Order 11988 and 24 CFR part 55. n. The state certifies that it will comply with applicable laws. Duration of Funding Availability of funds provisions in 31 U.S,C. 1551 -1557, added by section 1405 of the National Defense Authorization Act for Fiscal Year 1991 (Pub, L. 101 -510), limit the availability of certain appropriations for expenditure. This limitation may not be waived. However, the Supplemental Appropriations Act for these grants directs that these funds be available until expended unless, in accordance with 31 U.S.C. 1555, the Department determines that the purposes for which the appropriation has been made have been carried out and no disbursement has been made against the appropriation for two consecutive fiscal years. In such case, the Department shall close out the grant prior to expenditure of all funds. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance numbers for the disaster recovery grants under this Notice are as follows: 14.219; 14.228. Finding of No Significant Impact A Finding of No Significant Impact (FONSI) with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1989 (42 U.S.C. 4332). The FONSI is available for public inspection between 8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, Room 10276, 4517th Street, SW., Washington, DC 20410 -0500. Due to security measures at the HUD Headquarters building, an advance appointment to review the docket file must be Federal Register /Vol. 73, No. 177 / Thursday, September 11, 2008 / Notices 52881 scheduled by calling the Regulations Division at 202 - 708 -3055 (this is not a toll -free number). Hearing- or speech - impaired individuals may access this number through TTY by calling the toll - free Federal Information Relay Service at 800 - 877 -8339. Dated: September 8, 2008. Roy A Bernardi, Deputy Secretary. [FR Doc. E8 -21092 Filed 9- 10-08; 8:45 am] BILLING CODE 4210 -67-P DEPARTMENT OF THE INTERIOR Bureau of Land Management [WY 920 - 1430 - FR; WYW 27997; 8 08807) Notice of Realty Action: Recreation and Public Purposes Act Classification of Public Lands in Park County, WY AGENCY: Bureau of Land Management, Interior. ACTION: Notice. SUMMARY: The Bureau of Land Management (BLM) has examined and found suitable for classification for conveyance under the provisions of the Recreation and Public Purposes (R&PP) Act, as amended, approximately 90.00 acres of public land in Park County, Wyoming, Park County proposes to use the Iand for a sanitary landfill. DATES: Interested parties may submit comments regarding the proposed conveyance or classification of the lands until October 27, 2008. ADDRESSES: Send written comments to the Field Manager, Cody Field Office, P.O. Box 518, Cody, Wyoming 82414. FOR FURTHER INFORMATION CONTACT: Mike Stewart, Field Manager, Bureau of Land Management, Cody Field Office, at (307) 578 -5915. SUPPLEMENTARY INFORMATION: In accordance with Section 7 of the Taylor Grazing Act, (43 U.S.C. 315f), and Executive Order No, 6910, the following described public land in Park County, Wyoming, has been examined and found suitable for classification for lease and conveyance under the provisions of the R&PP Act, as amended (43 U.S,C. 869 et seq.): Sixth Principal Meridian, Wyoming T. 52 N., R. 101 W., Sec. 20, W /ZNW /4, NP/2N1/2NB1/4SW1/4. Tlae land described contains 90,00 acres, more or less. In accordance with the R&PP Act, Park County filed an application to purchase the above - described 90.00 acres of public land which has been C. leased for solid waste disposal purposes since 1971. The land was classified for lease under the provisions of the R &PP Act. Before the conveyance can occur, the land must be classified for conveyance under the provisions of the R&PP Act. Additional detailed information pertaining to this application, plan of development, and site plan is in case file W- 27997, located in the BLM Cody Field Office at the above address. The land is not needed for any Federal purpose. The conveyance is consistent with the Cody Resource Management Plan dated November 8, 1990, and would be in the public interest. The patent, when issued, will be subject to the provisions of the R&PP Act and applicable regulations of the Secretary of the Interior, and will contain the following reservations to the United States: 1. A right -of -way thereon for ditches or canals constructed by the authority of the United States, Act of August 30, 1890 (43 U.S.C. 945); and 2. All minerals, together with the right to prospect for, mine, and remove such deposits from the same under applicable law and such regulations as the Secretary of the Interior may prescribe. The patent will be subject to all valid existing rights documented on the official public land records at the time of patent issuance. Classification Comments: Interested parties may submit comments involving the suitability of the land for municipal and recreation uses, Comments on the classification are restricted to whether the land is physically suited for the proposal, whether the use will maximize the future use or uses of the land, whether the use is consistent with local planning and zoning, or if the use is consistent with State and Federal programs. AJplication Comments: Interested parties may submit comments regarding the specific use proposed in the application and plan of development, whether the BLM followed proper administrative procedures in reaching the decision to convey under the R &PP Act, or any other factor not directly . related to the suitability of the land for R&PP use. Confidentiality of Comments: Before including your address, phone number, e -mail address, or other personal identifying information in your comment, you should be aware that your entire comment -- including your personal identifying information —may be made publicly available at any time, While you can ask us in your comment to withhold your persona] identifying information from public review, we Final — January 6, 2010 Attachment K Multi - Family (Rental) Unit Production — New Construction — Round 2 Any of the IDED's eleven CDBG Disaster Recovery Housing Recipients and any of the following five CDBG Entitlement Cities: Ames; Council Bluffs; Davenport; Dubuque and West Des Moines, may apply for this activity on behalf of for - profit or non - profit multi - family (rental) housing developers to newly construct multi - family rental dwelling units within their jurisdictions. This activity's funding will only be allowed for projects located in one of the presidentially declared disaster recovery counties. Applications may qualify as either: a) Replacing units lost; or b) Impact on area recovery. More than one application (proposed project) may be submitted under the "replacing units lost" category (see distribution discussion - below), however, applications, project -by- project, need to be submitted individually. For the expanded COG regions, this activity will only be allowed in incorporated communities within your jurisdiction. All individual projects must have written concurrence and acceptance of the project from the local government entity in which the project will be located. Submit your proposals to the IDED by no later than June 30, 2010. • Distribution of awards under this activity will be as follows. No more than one project per applicant will be funded under the "Impact on Area Recovery" category. Multiple projects may be funded under the "Replacing units lost" category provided they qualify (in terms of documented replacement housing need). Applications may be prioritized according to such factors as: a) affordability; b) sustainability; c) need (market); d) the project's relationship to the disasters of 2008; and e) other factors, if necessary, because of funding limitations and /or the overall goal to ensure availability of this activity across all affected areas of the State of Iowa. Otherwise, Applications will be reviewed on a date received basis and funded as they meet requirements for approval. The IDED may require (and at our discretion) a market study to be conducted to support the claimed need for a proposed project (including such factors as location, size of rental units, number of rental units, rent structure, etc.). Required market studies will be at the applicant's expense. • This activity is limited to newly- constructed multi - family housing. This activity does not include those projects for which low income housing tax credits are also sought or that comprise any portion of the financial resources of the proposed project's budget. 1 Final — January 6, 2010 • Definitions: Adaptive Re -use" For purposes of this guidance for this activity, adaptive re -use proposals (i.e., those projects converting non - residential use structures or buildings into residential use structures or buildings) will be considered as new construction, and therefore eligible under this activity. "Affordable Rental Units" means those units contained in the mortgaged property and contained in the agreement for covenants and restrictions that are occupied by low and moderate income persons or households at any given time. Affordable rental units (in the appropriate number as described later in these guidelines under the CDBG National Objective criteria) are to be retained at all times as affordable rental units throughout the period of affordability_ (10 years) through income limitations of the tenants occupying those units and through rent limitations for the tenants occupying those units. "Project" - means a site or sites together with any building or buildings located on a site or sites that are under common ownership, management, and financing and are to be assisted with CDBG Supplemental funds as a single undertaking, and includes all activities associated with the site(s) and building(s). • Applicants, prior to application submission, need to determine the development team that will be involved in each project and prior to proposal submission to the IDED. Applicants will need to be able to . convey the development team members and their respective roles and responsibilities in the proposed projects within the application submitted to the IDED. Development team members may include, but are not limited to: - Owner (or eventual owner); - Program administrator / overseer from start to finish, including throughout the prescribed period of affordability, if different from the owner; Developer(s) and /or builder(s) of the multi- family (rental) housing; - Architectural / Engineering (A /E) or design services, as applicable; - Construction Lender(s); Permanent Lender(s), as applicable; - Property Manager(s); Energy Rater firm; Etc. • There is a maximum per project cap limitation of $3,000,000 on the CDBG Disaster Recovery funds. 2 Final - January 6, 2010 • There is a maximum per unit development cost cap of $60,000 on the CDBG Disaster Recovery funds. The maximum per unit cost cap for adaptive re -use types of projects will be $66,000 on the CDBG Disaster Recovery funds. • Any and all additional costs of the project above the stated CDBG Supplemental funds limitations of $3,000,000 shall come from other financial resources. Projects should reflect a Debt Service Coverage Ratio between 1.15 and 1.35 for the ten years of affordability. All other necessary financial resources shall be committed and secured prior to the commitment of CDBG Supplemental funds to the rental project. • CDBG National Objective - All assisted multi - family (rental) new production projects shall meet the national objective of "Primarily benefits persons of low and moderate income — Housing ". Effectively, this means that no less than 51% of the rental units in an assisted rental project shall be occupied by persons or households whose incomes are at or below 80% of the area median income limits (LMI) by household size as established by HUD for the jurisdiction in which the rental project is located. No mixed -use type of projects will be allowed under this activity. - 51% of all rental units in the project (rounded up to the nearest whole number) shall be . made available to and occupied by a low and moderate (LMI) tenant (e.g., in a thirty -two unit project, seventeen units shall be made available to and occupied by LMI tenants). - For rental projects that contain residential units of varying bedroom sizes, to the extent possible, the 51% criteria needs to be applied (i.e., a proportional share) to all sizes (number of bedrooms) of units. Scattered site projects accomplished as a single undertaking shall take into consideration the individual properties on the various sites when determining national objective compliance (i.e., the 51% criteria). Following the provision of CDBG Supplemental Funds assistance to a rental project, when all work has been completed and accepted and the forgivable loan and agreement for covenants and restrictions has been recorded; the 10 -year term of affordability begins. It is at this juncture (initial occupancy following the provision of assistance) that the appropriate number of units in the project needs to be occupied by the appropriate number of LMI tenants and the subsequent rents limited on those units. • Projects constructed under this activity will likely result in mixed - income projects, in that, only a percentage of the total number of units are required to meet the activity income and rent requirements (i.e., the "assisted" units). In the design of projects under this activity, consideration 3 Final — January 6, 2010 needs to be given to keeping all units in the project, not just the assisted units, consistent with each other in terms of bedroom sizes, square footage, similar design features, similar amenities, etc. This will allow assisted property owners units to maintain the required percentage of assisted units within the project and at the same time be able to use any of the units in the project to meet the required percentage. If unit design is not consistent, applications may be rejected; awards reduced and /or contain other restrictions to ensure appropriate use of funds for affordable units. • Maximum (gross) rent limits on the CDBG Supplemental Funds assisted (affordable) rental units (by bedroom size) shall not exceed the most current HOME Program 65% rent limits. • Rental property owners of CDBG Supplemental funds assisted rental projects shall agree to a 10 -year period of affordability in terms of tenant income restrictions (limitations) and through affordable rent limitations (controls) on all CDBG Supplemental funds assisted rental units (i.e., the affordable rental units) serving LMI tenants, maintaining the appropriate number of affordable rental units for the entire 10 -year period. Long -term affordability requirements shall be secured through an agreement for covenants and restrictions that ride with the assisted rental property owner's land. Throughout the period of affordability, assisted rental property owners shall ensure that the appropriate number of rental units remains affordable to, and are occupied by, income eligible and verified LMI tenants. All assisted rental units shall be subject to the maximum rent limitations (by bedroom size) applicable to all assisted rental units for the entire 10 -year period of affordability. Applicants will need to identify who will be responsible for the Tong -term affordability requirements and oversight for all funded new construction multi - family (rental) projects. • Throughout the period of affordability, assisted rental property owners shall agree to periodic reporting requirements and compliance monitoring and /or inspections (for tenant incomes and rents on the affordable units, appropriate unit mix, property standards compliance, etc.). • The CDBG Supplemental funds subsidy amount provided must be secured as a mortgage lien on the assisted multi - family property. • The CDBG Supplemental funds forgivable loan may be recorded in junior position to the principal conventional loan (if there is one), but must be recorded in senior position to any and all other funding in the project. 4 Final — January 6, 2010 Additionally, recipients must maintain their assistance security agreements in the above - stated recording position throughout the 10 -year period. • Form of assistance — The form of financial assistance (CDBG funds) will be a 10 -year forgivable loan (non- receding), forgiven in full at the end of the 10 -year compliance period. If the assisted rental project is sold or transferred, or converted to an alternate (non - residential) use, during the 10 -year period following completion and acceptance, the entire amount of, the CDBG forgivable loan shall be repaid. Upon mutual agreement and consent between the IDED and the originally assisted rental property owner; the assisted rental project may be sold or transferred, but, only if the new purchaser agrees to continue with the terms of the forgivable loan agreement and the agreement for covenants and restrictions, to complete the remainder of the10 -year affordability period (tenant income and rent limitations on 51% of the rental units). • Newly constructed multi - family dwelling units under this activity shall not be constructed in a 100 -year flood plain or within buy -out areas (those buying out properties in a 100 -year flood plain), known or proposed. No adaptive re -use multi - family proposals located within the 100 -year flood plain will be allowed under this activity. • All newly constructed multi - family units shall be designed and constructed in accordance with all locally adopted and enforced building codes and standards. In the absence of any locally adopted and enforced building codes or standards, the requirements of the Iowa State Building Code shall apply. • It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner that results in green - built, sustainable multi - family structures. All newly constructed multi - family housing shall meet the requirements of the Iowa Green Streets Criteria. All proposals must submit a completed Green Development Plan and Checklist. • Lots (land) on w hich to construct the multi - family housing proposed • need to be identified and where possible site control (not ownership) obtained, prior to application submission, and be identified (property address and legal description) within the application. This is particularly important with regard to the requirements of the Iowa Green Streets Criteria. • Recipients may be allowed general administrative funds in an amount not - to- exceed two percent (2 %) of the total award (calculated by considering the total of all project - related costs as ninety -eight percent of the total award). 5 Final — January 6, 2010 • The owner and /or the developer / builder of the newly constructed multi- family housing shall obtain their own construction financing. • Developers / builders will be allowed a combined developers fee and /or builders fee (overhead and profit) not -to- exceed .twelve percent of the total cost of construction. 6 Final — October 15, 2010 Attachment M Multi - Family (Rental) Unit Production — New Construction — Round #3 Any of the IDED's eleven CDBG Disaster Recovery Housing Recipients and any of the following five CDBG Entitlement Cities: Ames; Council Bluffs; Davenport; Dubuque and West Des Moines, may apply for this activity on behalf of for - profit or non - profit multi - family (rental) housing developers to newly construct multi - family rental dwelling units within their jurisdictions. This activity's funding will only be allowed for projects located in one of the presidentially declared disaster recovery counties. Applications may qualify as either: a) Replacing units lost; or b) Impact on area recovery. More than one application (proposed project) may be submitted under the "replacing units lost" category (see distribution discussion below), however, applications, project -by- project, need to be submitted individually. For the expanded COG regions, this activity will only be allowed in incorporated communities within your jurisdiction. All individual projects must have written concurrence and acceptance of the project from the local government entity in which the project will be located. Submit your proposals to the IDED by no later than November 15, 2010. • Distribution of awards under this activity will be as follows. No more than one project per applicant will be funded under the "Impact on Area Recovery" category. Multiple projects may be funded under the "Replacing units lost" category provided they qualify (in terms of documented replacement housing need). Applications may be prioritized according to such factors as: a) affordability; b) sustainability; c) need (market); d) the. project's relationship to the disasters of 2008; and e) other factors, if necessary, because of funding limitations and /or the overall goal to ensure availability of this activity across all affected areas of the State of Iowa. Otherwise, Applications will be reviewed on a date received basis and funded as they meet requirements for approval. The IDED may require (and at our discretion) a market study to be conducted to support the claimed need for a proposed project (including such factors as location, size of rental units, number of rental units, rent structure, etc.). Required market studies will be at the applicant's expense. • In the event that application requests exceed the amount of funds available, the CDBG Disaster Recovery Housing Funds will be prorated among the applications. • This activity is limited to newly- constructed multi - family housing. This activity does not include those projects for which low income housing tax 1 Final — October 15, 2010 credits are also sought or that comprise any portion of the financial resources of the proposed project's budget. • Definitions: `Adaptive Re -use" For purposes of this guidance for this activity, adaptive re -use proposals (i.e., those projects converting non - residential use structures or buildings into residential use structures or buildings) will be considered as new construction, and therefore eligible under this activity. "Affordable Rental Units" means those units contained in the mortgaged property and contained in the agreement for covenants and restrictions that are occupied by low and moderate income persons or households at any given time. Affordable rental units (in the appropriate number as described later in these guidelines under the CDBG National Objective criteria) are to be retained at all times as affordable rental units throughout the period of affordability (10 years) through income limitations of the tenants occupying those units and through rent limitations for the tenants occupying those units. "Project" - means a site or sites together with any building or buildings located on a site or sites that are under common ownership, management, and financing and are to be assisted with CDBG Supplemental funds as a single undertaking, and includes all activities associated with the site(s) and building(s). • Applicants, prior to application submission, need to determine the development team that will be involved in each project and prior to proposal submission to the IDED. Applicants will need to be able to convey the development team members and their respective roles and responsibilities in the proposed projects within the application submitted to the IDED. Development team members may include, but are not limited to: - Owner (or eventual owner); - Program administrator / overseer from start to finish, including throughout the prescribed period of affordability, if different from the owner; - Developer(s) and /or builder(s) of the multi - family (rental) housing; - Architectural / Engineering (NE) or design services, as applicable; Construction Lender(s); Permanent Lender(s), as applicable; Property Manager(s); Energy Rater firm; - Etc. 2 Final — October 15, 2010 • There is a maximum per project cap limitation of $6,000,000 on the CDBG Disaster Recovery funds. The Recipient shall determine the per unit cost cap limitation, for each project, if any. • A CDBG Disaster Recovery Housing Recipient must provide a 20% match, to the CDBG funds, as a Source of Funds for the project. These funds must be committed by Resolution and examples of the match include but are not limited to Tax Abatement, HOME, TIF. • Any and all additional costs of the project above the stated CDBG Supplemental funds limitations of $6,000,000 shall come from other financial resources. Projects should reflect a Debt Service Coverage Ratio between 1.15 and 1.35 for the ten years of affordability. All other necessary financial resources shall be committed and secured prior to the commitment of CDBG Supplemental funds to the rental project. • CDBG National Objective - All assisted .multi- family (rental) new production projects shall meet the national objective of "Primarily benefits persons of low and moderate income — Housing ". Effectively, this means that no less than 51% of the rental units in an assisted rental project shall be occupied by persons or households whose incomes are at or below 80% of the area median income limits (LMI) by household size as established by HUD for the jurisdiction in which the rental project is located. No mixed -use type of projects will be allowed under this activity. .51% of all rental units in the project (rounded up to the nearest whole number) shall be made available to and occupied by a low and moderate (LMI) tenant (e.g., in a thirty -two unit project, seventeen units shall be made available to and occupied by LMI tenants). For rental projects that contain residential units of varying bedroom sizes, to the extent possible, the 51% criteria needs to be applied (i.e., a proportional share) to all sizes (number of bedrooms) of units. Scattered site projects accomplished as a single undertaking shall take into consideration the individual properties on the various sites when determining national objective compliance (i.e., the 51% criteria). Following the provision of CDBG Supplemental Funds assistance to a rental project, when all work has been completed and accepted and the forgivable loan and agreement for covenants and restrictions has been recorded; the 10 -year term of affordability begins. It is at this juncture (initial occupancy following the provision of assistance) that the appropriate number of units in the project needs to be occupied by the appropriate number of LMI tenants and the subsequent rents limited on those units. 3 Final — October 15, 2010 • Projects constructed under this activity will likely result in mixed - income projects, in that, only a percentage of the total number of units are required to meet the activity income and rent requirements (i.e., the "assisted" units). In the design of projects under this activity, consideration needs to be given to keeping all units in the project, not just the assisted units, consistent with each other in terms of bedroom sizes, square footage, similar design features, similar amenities, etc. This will allow assisted property owners units to maintain the required percentage of assisted units within the project and at the same time be able to use any of the units in the project to meet the required percentage. If unit design is not consistent, applications may be rejected; awards reduced and /or contain other restrictions to ensure appropriate use of funds for affordable units. • Maximum (gross) rent limits on the CDBG Supplemental Funds assisted (affordable) rental units (by bedroom size) shall not exceed the most current HOME Program 65% rent limits. • Rental property owners of CDBG Supplemental funds assisted rental projects shall agree to a 10 -year period of affordability in terms of tenant income restrictions (limitations) and through affordable rent limitations (controls) on all CDBG Supplemental funds assisted rental units (i.e., the affordable rental units) serving LMI tenants, maintaining the appropriate number of affordable rental units for the entire 10 -year period. Long -term affordability requirements shall be secured through an agreement for . covenants and restrictions that ride with the assisted rental property owner's land. Throughout the period of affordability, assisted rental property owners shall ensure that the appropriate number of rental units remains affordable to, and are occupied by, income eligible and verified LMI tenants. All assisted rental units shall be subject to the maximum rent limitations (by bedroom size) applicable to all assisted rental units for the entire 10 -year period of affordability. Applicants will need to identify who will be responsible for the Tong -term affordability requirements and oversight for all funded new construction multi - family (rental) projects. • Throughout the period of affordability, assisted rental property owners shall agree to periodic reporting requirements and compliance monitoring and /or inspections (for tenant incomes and rents on the affordable units, appropriate unit mix, property standards compliance, etc.). • The CDBG Supplemental funds subsidy amount provided must be secured as a mortgage lien on the assisted multi - family property. 4 Final — October 15, 2010 • The CDBG Supplemental funds forgivable loan may be recorded in junior position to the principal conventional loan (if there is one), but must be recorded in senior position to any and all other funding in the project. Additionally, recipients must maintain their assistance security agreements in the above - stated recording position throughout the 10 -year period. • Form of assistance — The form of financial assistance (CDBG funds) will be a 10 -year forgivable loan (non- receding), forgiven in full at the end of the 10 -year compliance period. If the assisted rental project is sold or transferred, or converted to an alternate (non - residential) use, during the 10 -year period following completion and acceptance, the entire amount of the CDBG forgivable loan shall be repaid. Upon mutual agreement and consent between the IDED and the originally assisted rental property owner; the assisted rental project may be sold or transferred, but, only if the new purchaser agrees to continue with the terms of the forgivable loan agreement and the agreement for covenants and restrictions, to complete the remainder of the10 -year affordability period (tenant income and rent limitations on 51% of the rental units). • Newly constructed multi - family dwelling units under this activity shall not be constructed in a 100 -year flood plain or within buy -out areas (those buying out properties in a 100 -year flood plain), known or proposed. No adaptive re -use multi - family proposals located within the 100 -year flood plain will be allowed under this activity. • All newly constructed multi - family units shall be designed and constructed in accordance with all locally adopted and enforced building codes and standards. In the absence of any locally adopted and enforced building codes or standards, the requirements of the Iowa State Building Code shall apply. • It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner that results in green - built, sustainable multi - family structures. All newly constructed multi - family housing shall meet the requirements of the Iowa Green Streets Criteria. All proposals must submit a completed Green Development Plan and Checklist. • Lots (land) on which to construct the multi - family housing proposed need to be identified and where possible site control (not ownership) obtained, prior to application submission, and be identified (property address and legal description) within the application. This is particularly important with regard to the requirements of the Iowa Green Streets Criteria. • Recipients may be allowed general administrative funds in an amount not - to- exceed two percent (2 %) of the total award (calculated by considering 5 Final — October 15, 2010 the total of all project - related costs as ninety -eight percent of the total award). • The owner and /or the developer / builder of the newly constructed multi- family housing shall obtain their own construction financing. • Developers / builders will be allowed a combined developers fee and /or builders fee (overhead and profit) not -to- exceed twelve percent of the total cost of construction. 6