Definitions, Eligibility, Application Process and Administrative Requirements, Specific Requirements for Competitive Categories, Specific Requirements for Economic Development, Grant Administration and Project Implementation, Emergency Set-aside ...
DEPARTMENT OF ECONOMIC OPPORTUNITY
Division of Community Development
RULE NOS.:RULE TITLES:
73C-23.0031Definitions
73C-23.0035Eligibility
73C-23.0041Application Process and Administrative Requirements
73C-23.0045Specific Requirements for Competitive Categories
73C-23.0048Specific Requirements for Economic Development
73C-23.0051Grant Administration and Project Implementation
73C-23.0061Emergency Set-aside Assistance
73C-23.0071Section 108 Loan Guarantee Program
73C-23.0081Nonrecurring CDBG Funding
NOTICE OF CHANGE
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 40 No. 194, October 6, 2014 issue of the Florida Administrative Register.
73C-23.0031 Definitions.
The Florida Small Cities Community Development Block Grant (CDBG) Program is governed by definitions provided in the Housing and Community Development Act of 1974, as amended (2014); Title 2 Code of Federal Regulations (CFR) Part 200 (2 CRF Part 200); 24 CFR Part 8; 24 CFR Part 35, subparts B, J and R; 24 CFR Part 55; 24 CFR Part 58; 24 CFR Part 85; 24 CFR Part 91; 24 CFR Part 92.252; 24 CFR Part 135; 24 CFR Part 570, including Subparts A, C, I, J, K, M and Appendix A; Title 24 Code of Federal Regulations (CFR) Part 570, Subparts A, C, I, J, K, M and Appendix A; 24 CFR Part 8; 24 CFR Part 85; 24 CFR Part 91; 24 CFR Part 135; 29 CFR Part 5; 40 CFR Parts 1500 – 1508; and 49 CFR Part 24; incorporated herein by reference for use throughout this chapter. These and other documents referenced in this rule are available either on the Department’s Small Cities CDBG Program website: www.FloridaJobs.org/CDBGRecipientInfo, on the U.S. Government Printing Office website: www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR www.gpo.gov, or upon request from the CDBG program office. The following additional definitions are provided for clarification:.
(1) No change.
(2) “Administrative closeout” means the written notification to a Recipient by the Department that all applicable administrative actions and all required work of a subgrant have been completed, with the exception of the submission and approval of the final Office of Management and Budget (OMB) Circular A-133 audit required under 2 CFR Part 200.
(3) “Administrative costs” include the payment of all reasonable costs of management, coordination, monitoring, and evaluation, and similar costs and carrying charges, related to the planning and execution of community development activities which are funded in whole or in part under the Small Cities CDBG Program. Administrative costs shall include all costs of administration as defined in Section 290.042(2), F.S., including general administration, planning and urban design, and project administration costs. Excluded from administrative costs are:
(a) through (c) No change.
(4) through (9) No change.
(10)“CATF” means Citizen’s Advisory Task Force pursuant to Section 290.046(5) 290.046(6), F.S. The CATF shall be comprised of at least five residents of the Applicant’s jurisdiction. None of the members shall be an elected official of the Applicant, and no more than one shall be an employee of the local government. The purpose of the CATF is to provide recommendations on all phases of the local CDBG program.
(11) through (14) No change.
(15) “Department” means the Florida Department of Economic Opportunity, whose address is 107 East Madison Street, Tallahassee, Florida 32399.
(16) through (23) No change.
(24) “Income” means annual income as defined by the U.S. Department of Housing and Urban Development as set forth in 24 CFR 570.3, as incorporated in rule 73C-23.0031, F.A.C, incorporated herein by reference.
(25) through (27) No change.
(28) “Jobs retained” means jobs that without CDBG assistance, would be abolished by layoffs, plant closing, or other severe economic or natural conditions or as otherwise clarified in 24 CFR 570.483(b)(4), as incorporated in rule 73C-23.0031, F.A.C, incorporated herein by reference.
(29) through (37) No change.
(38) “One hundred year floodplain” or “100-year floodplain” means the area subject to a one percent or greater chance of flooding in any given year as specified in 24 CFR Part 55.2(b)(1), as incorporated in Rule 73C-23.0031, F.A.C, incorporated herein by reference, and used throughout this chapter.
(39) through (47) No change.
(48) “Section 3” means Section 3 of the Housing and Community Development Act of 1974, as amended, as incorporated in Rule 73C-23.0031, F.A.C., incorporated herein by reference, and the implementing regulation, 24 CFR Part 135, as incorporated in Rule 73C-23.0031, F.A.C., incorporated herein by reference, relating to employment and other economic opportunities for low- to moderate-income persons.
(49) No change.
(50) “Subgrant Agreement” means the contract that is executed between an Applicant and the Department to award CDBG funding for completing the Addressed Need activities that were included in the Applicant’s Small Cities CDBG Application for Funding. When an Applicant submits their Subgrant Agreement to the Department, the Applicant must also submit the following:
a.) Small Cities CDBG Program Information Sheet, DEO Form SC-30, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
b.) Civil Rights Profile Sheet, DEO Form SC-31, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
c.) Applicant/Recipient Disclosure/Update Report, HUD Form 2880; effective date: March 2013, which is incorporated by reference and is available at http://portal.hud.gov/hudportal/documents/huddoc?id=2880.pdf .
(51) through (53) No change.
73C-23.0035 Eligibility.
(1) Eligibility.
The U. S. Department of Housing and Urban Development (HUD) determines which communities in Florida are eligible to receive funding through the Florida Small Cities CDBG Program. HUD publishes a list of eligible “non-entitlement” local governments annually, which the Department posts on its website: www.FloridaJobs.org/CDBGApplicantInfo. Non-entitlement communities eligible to receive funding include:
(a) through (b) No change.
(2) National Objective.
(a) through (c) No change.
(d) If a National Objective is not met for a CDBG-funded activity, the Recipient shall repay all funds received for that activity.
(e)(d) At least 70% of all CDBG funds received by the state must be spent on activities that benefit low- and moderate-income persons.
Rulemaking Authority 290.048 FS. Law Implemented 290.042, 290.043, 290.044, FS. History–New, Amended____.
73C-23.0041 Application Process – General Information.
(1) through (4) No change.
(5) Citizen Participation Requirements.
(a) The Applicant shall adopt a Citizen Participation Plan that complies with the requirements found in 24 CFR 570.486(a), as incorporated in Rule 73C-23.0031, F.A.C. The plan shall include a Citizen Complaint Policy which provides citizens the address, phone number, and times for submitting complaints and grievances, and provides for timely written answers to written complaints and grievances within 15 working days where practicable, as required by 24 CFR 570.486(a)(7), and as incorporated in Rule 73C-23.0031, F.A.C.
(b) The local government must inform and involve its citizens in the project planning and selection, and decision-making process regarding all CDBG-funded projects. Each Applicant shall certify that it is following its Citizen Participation Plan and the citizen participation requirements of this rule. The Applicant shall document that the citizen participation requirements outlined in 24 CFR 570.486(a), this rule, and Section 290.046(4) 290.046(5), F.S., have been satisfied, with public notice provided in accordance with Rule 73C-23.0031(45), F.A.C.
(c) Citizen participation shall include the following at a minimum:
1. No change.
2. a. through b. No change.
c. Copies of the public notices, affidavits of publication, certified minutes and sign-in sheets/speaker cards for both public hearings shall be included in Part 9, Appendix D, of the Application for Funding, Form SC-60, which is further described in subsection (6)(a) below. The application shall be rejected if the affidavit of publication or certified minutes for either public hearing are not provided by the end of the Completeness Period.
(d). 1. through 2. No change.
3. The CATF shall conduct at least one meeting prior to the notice for the second public hearing being published to discuss community needs and to provide recommendations to the local governing body. The meeting shall be advertised in accordance with subsection 73C-23.0031(45). A minimum of 51% of the members must participate in the meeting.
If the Applicant is claiming points for having an active CATF, copies of the public notice, affidavit of publication, meeting minutes and sign-in sheet shall be included in Part 9, Appendix D, of the Application for Funding, Form SC-60, which is further described in subsection (6)(a) below. If the affidavit is not available by the application deadline, it must be provided by the end of the “completeness period” to retain the points.
(6) Applications.
(a) Application Form. The Florida Small Cities Community Development Block Grant Application for Funding, Form SC-60, http://www.flrules.org/Gateway/reference.asp?No=Ref-04762; effective date: ,2015 2014, which is hereby adopted and incorporated by reference. The application form has nine parts, and these parts include scoring guidelines and documentation requirements for the CDBG application. Parts 1-9 of the application are available for download on the Department’s website - www.FloridaJobs.org/CDBGApplicantInfo. Copies of the electronic form will be made available upon request by contacting the Department by email at cdbg@deo.myflorida.com.
(b) through (c) No change.
(d) Architectural and Engineering Costs.
1. The maximum percentage of CDBG funds that may be spent on architectural and engineering design costs, excluding additional engineering services, shall be based on the total initial construction budget for eligible subgrant activities, which require architectural and engineering design. These costs shall not exceed the Rural Development/Rural Utility Service (RD/RUS) fee schedule in Florida or , incorporated herein by reference, RUS Bulletin 1780-9 (rev. 10/2009), both of which can be found in Part 9 of the Application for Funding, Form SC-60., hereby incorporated into this rule by reference. Architectural and engineering inspection services during construction shall not exceed the RD/RUS fee schedule in Florida, incorporated by reference, and RUS Bulletin 1780-9 (rev. 6/2007), both of which can be found in Part 9 of the Application for Funding, Form SC-60., hereby incorporated into this rule by reference.
a. through b. No change.
c. For each additional engineering service as defined in subsection 73C-23.0031(6), F.A.C., and for preliminary engineering, the local government shall negotiate a reasonable fee for the service following procurement procedures in 24 CFR Section 85.36, as incorporated in Rule 73C-23.0031, F.A.C. incorporated herein by reference.
d. through e. No change.
(e) through (h) No change.
(7) National Objective and Public Benefit Documentation.
(a) Achievement of national objectives. Applications must demonstrate that the proposed activities meet the criteria specified in 24 CFR 570.483, as incorporated in Rule 73C-23.0031, F.A.C., for complying with a national objective and meeting public benefit standards and that they address community need as outlined in Sections 290.046(3)(a)-(c)(d), F.S.
(b) 1. No change.
2. Random Sample Survey Methodology – A sample-based survey of the beneficiaries must use the Household Income Certification Form, (Form SC-49), http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference, which is included in the Application for Funding and also is available on the CDBG website: www.FloridaJobs.org/CDBGApplicantInfo.com. The survey methodology must correspond with the random sampling requirements established by HUD in Notice CPD-14-013, issued on September 23, 2014, and which can be found at: www.FloridaJobs.org/CDBGApplicantInfo.com, incorporated herein by reference. The survey methodology must include a confidence level of 95%.
a. through c. No change.
3. through 7. No change.
(8), (a) through (b) No change.
(c) For activities where hookups or connections are required as a condition for beneficiary access to a CDBG funded public improvement, hookup or connection fees shall not be charged to very low-, low- or moderate-income beneficiaries. Further, none of the project construction costs shall be charged to very low-, low- or moderate-income beneficiaries. All very low-, low- and moderate-income beneficiaries in a Neighborhood Revitalization project service area with hookups as an activity shall be hooked up unless they, or the property owner in the case of rental property, provide written notice that they do not desire a hookup. If such written notice cannot be obtained, the Household Income Certification Form, Form SC-49, as incorporated above, shall note such refusal to provide written notice.
(d) through (e) No change.
(9) through (12)(c) No change.
(d) Further point breakdowns for Program Impact, Equal Opportunity and Fair Housing are found in the rule or in the appropriate section of the Florida Small Cities Community Development Block Grant Application for Funding, Form SC-60, as incorporated in Rule 73C-23.0041(6)(a), F.A.C. application form.
(e) through (i) No change.
(13) No change.
Rulemaking Authority 290.044, 290.046, 290.047, 290.048 FS. Law Implemented 290.044, 290.046, 290.047, 290.0475 FS. History–New 5-23-06, Formerly 9B-43.0041, Amended 2-26-07, 6-6-10,_____.
73C-23.0045 Specific Requirements for Neighborhood Revitalization, Commercial Revitalization and Housing Rehabilitation.
(1) Program Requirements for Neighborhood Revitalization.
(a) through (b) No change.
(c) Service Area Requirements.
1. An activity conducted in a primarily residential service area will be considered to benefit low-and moderate-income persons when at least 51 percent of the residents of that service area are low- and moderate-income persons. Such a service area must contain all households that will benefit from the activity. All activities shall meet the national objective of LMI benefit as specified in 24 CFR 570.483(b), as incorporated in Rule 73C-23.0031, F.A.C.
2. through 6. No change.
(d) No change.
(e) Additional Completeness Review Items for Neighborhood Revitalization Applications.
During the completeness review period, the Department shall review applications that propose land assembly or site preparation for new housing construction for low- and moderate-income persons to determine whether documentation is provided to show:
1. An executed agreement between the developer and the Applicant that requires the developer to provide the applicant with a construction performance bond equal to the amount of the funding request prior to a subgrant being executed between the applicant and the Department; Firm commitments for construction from the developer;
2. through 3. No change.
(f) An Applicant for a Neighborhood Revitalization subgrant, which is available in Part 7 of the Application for Funding, Form SC-60, shall meet a national objective by demonstrating that its activities will be carried out in distinct service areas characterized by the concentration of persons of low- or moderate-income.
(g), 1. through 2. No change.
3. A Neighborhood Revitalization subgrant initally awarded for Planning and Design costs shall not exceed $70,000. Administration and engineering costs shall be as follows:
a. Engineering costs funded from the subgrant shall not exceed the RUS fee schedule for engineering [RUS Bulletin 1780-9 (rev. 10/2009), which is available in Part 9 of the Application for Funding, Form SC-60], (Table I, Table II, or proration of these tables, depending on the nature of the project) and applicable additional engineering services as defined in this rule.
b. No change.
4. through 5. No change.
(2), (a) through (c) No change.
(d) Requirements for Rehabilitation of Commercial Buildings. If CDBG funds will be used for rehabilitation of commercial buildings, the local government shall adopt a Commercial Rehabilitation Policy. The Department must approve the policy before funds can be requested for that activity. At a minimum, the The following shall be included in the procedure:
1. Restrict the Rehabilitation of Commercial Buildings activity to commercial buildings within the project area pursuant to 24 CFR 570.202(a)(3), as incorporated in Rule 73C-23.0031, F.A.C. Properties upon which or adjacent to where CDBG activities are undertaken shall not be zoned for residential purposes only.
2. through 4. No change.
5. Provide that all contracts for rehabilitation over $2,000 will comply with the Davis-Bacon Act; effective date April 2009, which is incorporated herein by reference and is available at www.dol.gov/whd/regs/statutes/dbra.htm.
6. Provide that businesses residing in a building rehabilitated with CDBG funds shall comply with the provisions of 24 CFR Part 8, (HUD’s implementing regulation of Section 504 of the Rehabilitative Act of 1973 (29 U.S.C. Section 794), as incorporated in Rule 73C-23.0031, F.A.C., incorporated herein by reference, as it relates to employment discrimination and facility accessibility.
7. No change.
8. Establish a process for recognizing potential conflicts of interest, making those conflicts publicly known, dealing with those conflicts on a local level, and requesting waivers of those conflicts when appropriate pursuant to 24 CFR 570.489, as incorporated in Rule 73C-23.0031, F.A.C., and Sections 112.311-112.3143, F.S. Additionally, provide that no building owner, lesser, lessee, tenant, or occupant, or employee or immediate relative of the same, either personally or corporately, shall serve as a contractor to be paid with CDBG funds for the rehabilitation of said building, nor shall they be paid for their own labor with CDBG funds for the rehabilitation of said building.
9. through 12. No change.
13. CDBG funds for Commercial Revitalization activities shall not be used as grants or loans for working capital, inventory or supplies, or for interior repairs and renovations of existing businesses, except for repairs necessary to correct code violations or removal of architectural barriers to handicap access and correction of architectural barriers to handicap access in public buildings located in the project area pursuant to the requirements of 24 CFR Part 8, as incorporated in Rule 73C-23.0031, F.A.C. adopted herein by reference.
14. No change.
(e) No change.
(3) Program Requirements for Housing Rehabilitation.
(a) No change.
(b) Housing Rehabilitation subgrant Recipients must have a Department-approved Housing Assistance Plan addressing the requirements activities specified in Part 9 of the application.
(c) Low- and Moderate-Income Benefit for Housing Rehabilitation.
1. Selection of beneficiaries or housing units need not take place during the application process, but may take place at any time during the subgrant application or implementation process. All beneficiaries must be low- and moderate-income persons pursuant to 24 CFR 570.482, as incorporated in Rule 73C-23.0031, F.A.C.
2. Activities involving rehabilitation shall be considered to directly benefit low- and moderate-income persons only to the extent that such housing shall, upon completion, be occupied by low- and moderate-income persons, and for rental units, the units must be occupied by low- and moderate-income persons at affordable rents pursuant to 24 CFR 92.252, as incorporated in Rule 73C-23.0031, F.A.C., incorporated herein by reference.
3. through 4. No change.
(d) A Recipient shall adopt and implement procedures to fulfill regulatory and statutory requirements relating to Lead-Based Paint pursuant to 24 CFR 570.487 and 24 CFR 35, Subparts B, J, and R, as incorporated in Rule 73C-23.0031, F.A.C. incorporated herein by reference. A Recipient can request reimbursement from the housing rehabilitation line item of its budget for the cost of a lead-based paint inspection prior to the home’s site specific environmental review being approved because the inspection is part of the environmental review process. The Recipient is required to:
1. through 4. No change
5. Ensure proper clean up and disposal procedures are used; and
6. No change.
(e) through (g) No change.
Rulemaking Authority 290.048 FS. Law Implemented 290.043, 290.044, 290.046, 290.047, FS. History–New 6-6-10, Formerly 9B-43.0045, Amended_______.
73C-23.0048 Specific Requirements for Economic Development.
(1) Applications submitted under this category shall be for the following:
(a) No change.
(b) The creation of jobs that are presumed to be low- and moderate-income under 24 CFR 570.483(b)(4)(iv) and (v), as incorporated in Rule 73C-23.0031, F.A.C., or
(c) To assist a business that provides goods or services to low- and moderate-income persons in accordance with 24 CFR 570.482(f)(2)(ii), as incorporated in Rule 73C-23.0031, F.A.C.
(2) Application Submission and Funding Reservation for Economic Development Projects.
(a) The Florida Small Cities Community Development Block Grant Application for Funding, Form SC-60, as incorporated in Rule 73C-23.0041, F.A.C., An Economic Development Application for Funding may be submitted when the annual application cycle opens. Economic Development applications Applications received by the application deadline will be scored and ranked if the total dollars requested exceeds the amount available in the category. If successful, they will be awarded until all available funds are committed.
(b) through (k) No change.
(3), (a) through (e) No change.
(f) Funds cannot be used for a loan to a non-public entity which is determined not to be appropriate as defined in 24 CFR 570.482(e), as incorporated in Rule 73C-23.0031, F.A.C.
(4) No change.
(5) Eligibility Requirements for Loans.
(a) No change.
(b) Applications which do not contain justification of the appropriateness of the assistance being requested shall be ineligible in accordance with federal law and federal guidelines found in 24 CFR Part 570, including Appendix A, as incorporated in Rule 73C-23.0031, F.A.C., and shall be ineligible for scoring as provided in Section 290.0475, F.S.
(c) No change.
(d) The local government shall provide a financial underwriting analysis and other Participating Party documentation to the Department that was not required at the time of application. The underwriting analysis must meet the requirements of 24 CFR 570.482(e), and Appendix A of 24 CFR 570, as incorporated in Rule 73C-23.0031, F.A.C. The underwriting analysis must be prepared by a certified public accountant, a commercial lending underwriter, a financial professional employed by the local government or a certified the Participating Party, or some other financial or economic development finance professional approved by the Department. , and The underwriter shall not be approved if the State of Florida or the federal government has placed the underwriter on a list that prohibits them from working on state or federal contracts or if the Department determines that a conflict of interest exists. The underwriting analysis shall verify:
1. That all project costs are reasonable based upon industry standards and as determined by a financial underwriter;
2. through 6. No change.
(e) Once this financial underwriting analysis and other required documentation has been provided by the local government, any material change which affects the underwriter’s conclusions, including changes in corporate or ownership structure, which affects the underlying assumptions upon which the local government relied will require that the analysis be re-evaluated by the local government and any assistance requested for the Participating Party must be adjusted if such a change a “material change” has occurred.
(f) No change.
(6) No change.
(7) National Objective and Public Benefit Documentation.
(a) through (c) No change.
(d) If job creation or retention is used to meet the national objective, a Pre-Employment Household Income Certification Form, DEO Form SC-50, , http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference, must be completed for each employee hired or retained.
1. New jobs. The determination of actual benefit to low- and moderate-income persons shall be made based on the number and percent of persons who, at the time they were hired, were low- and moderate-income persons as defined in Rule 73C-23.0031. herein.
2. through 3. No change.
(d) No change.
(e) If a national objective is attained under the provisions of 24 CFR 570.483(b)(4)(iv) or (v), as incorporated in Rule 73C-23.0031, F.A.C., incorporated by reference, demographic and/or census documentation must be provided with the application.
(f) No change.
(8) No change.
(9) Site Visits and Completeness Letters for Economic Development Applications.
(a) through (d) No change.
(e) If the application remains eligible for funding following the site visit, the Department will notify the Applicant and provide send an “Award and Offer to Contract Letter” and a subgrant agreement electronically to the Applicant for execution.
(f) through (j) No change.
(10) through (12) No change.
Rulemaking Authority 290.048 FS. Law Implemented 290.043, 290.044, 290.046, 290.047, FS. History–New____.
73C-23.0051 Grant Administration and Project Implementation.
(1) Financial Management.
(a) CDBG subgrant Recipients shall establish a financial management system for administering subgrant funds that complies with Section 218.33, F.S., and 24 CFR 85.20, as incorporated in Rule 73C-23.0031, F.A.C. At a minimum, the The system must address the following:
1. through 7. No change.
(b) No change.
(c) If the Recipient makes a change in either person authorized in the Subgrant Agreement to submit a Request for Funds, it shall submit an eCDBG Access Authorization Update, DEO Form SC-55, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
(d)(c) If the Office of the Governor has determined that a Recipient is in a State of Financial Emergency as defined in 218.503, Florida Statutes, the Recipient shall provide the documentation listed in the Special Conditions section of the subgrant agreement with each Request for Funds to justify payment.
(2) Environmental Review.
(a) CDBG subgrant Recipients must comply with the procedures set forth in 24 CFR Part 58, Environmental Review Procedures for Title I Community Development Block Grant Programs, incorporated herein by reference, and 40 CFR 1500-1508, National Environmental Policy Act Regulations, as incorporated in Rule 73C-23.0031, F.A.C., incorporated herein by reference.
(b) No change.
(c) One copy of the environmental documents shall be sent to the regional planning council that serves the Recipient’s jurisdiction, and one copy of the documents shall be sent to the Department along with HUD Form 7015.15 (Request for Release of Funds and Certification; effective date: January 1999), which is incorporated herein by reference and available at http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12557.pdf.
(d) After receiving comments from the State Clearinghouse and the regional planning council, the Department will compile the comments and send them to the Recipient to address any unresolved issues. If there are no unresolved issues, the Department will issue HUD Form 7015.16 (Authority to Use Grant Funds; effective date: February 1994), which is incorporated herein by reference and available at http://www.hud.gov/offices/adm/hudclips/forms/files/7015-16.pdf, to the Recipient.
(e) No change.
(3) Procurement.
(a) Each subgrant Recipient shall adopt a local CDBG Procurement Policy that complies with the provisions of 24 CFR Section 85.36, as incorporated in Rule 73C-23.0031, F.A.C., incorporated herein by reference. For covered professional services contracts, the policy shall also comply with Section 287.055, F.S. (Consultants Competitive Negotiation Act).
1. No change.
2. The Recipient shall submit procurements being paid with CDBG funds to the Department for desk monitoring. Submission shall be made in accordance with the requirements outlined in the Recipient’s subgrant agreement. The following forms shall be included with construction procurement documentation:
a. Bidding Information and Contractor Eligibility, DEO Form SC-51, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference;
b. Certification Regarding Debarment, Suspension, and Other Responsibility Matters (Primary Covered Transactions). DEO Form SC-37, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference; and
c. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion (Subcontractor), DEO Form SC-38, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
(b) No change.
1. If the newspaper is located in an Office of Management and Budget (OMB) designated metropolitan statistical area (MSA) as designated by the Office of Management and Budget, only one responsible and responsive bid or proposal is needed to complete the process.
2. through 3. No change.
4. The procurement policy shall require at least 12 days for receipt of the proposals or bids after the date of publishing.
(c) Construction. Public notice for construction procurement shall conform to Section 255.0525, F.S. If fewer than three responsible and responsive bids are received and the notice was not published in a MSA newspaper as described in subsection (3)(b)1 above, the procurement must be readvertised.
1. Prior to procuring construction activities, the Recipient shall request a wage decision for each funded activity that is covered by the Davis-Bacon Act, which is available at www.dol.gov/whd/regs/statutes/dbra.htm., using the Wage Decision Request, DEO Form SC-56, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
(d) through (i) No change.
(j) Construction Contracts.
1. through 2. No change.
3. All contracts in excess of $100,000 covered by Section 3 regulations shall contain the language required in 24 CFR 135.38, incorporated by reference in rule 73C-23.0031, F.A.C, and in CDBG Supplemental Conditions for Construction Contracts, DEO Form SC-66, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
4. The Recipient shall have all contractors and subcontractors complete all of the following Forms that are applicable:
a. Section 3 Participation Report (Construction Prime Contractor), DEO Form SC-52, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
b. Section 3 Participation Report (Construction Subcontractor), DEO Form SC-53, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
c. Documentation for Business Claiming Section 3 Status, DEO Form SC-54, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
5.4. All contracts in excess of $100,000 shall include the following:
a. A performance bond on the part of the contractor for 100 percent of the contract price; and
b. A payment bond on the part of the contractor for 100 percent of the contract price.
6. 5. All contracts shall include liquidated damages clause establishing a predetermined amount that must be paid if the contractor fails to perform as promised.
7. If it is determined that the Davis-Bacon Act wage decision that was previously obtained from the Department does not contain a job classification needed to complete a construction activity, the Recipient shall request an additional classification using the following forms:
a. Employee/Employer Wage-Scale Agreement, DEO Form SC-57, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference; and
b. U.S. Department of Housing and Urban Development Report of Additional Classification and Rate, HUD Form 4230A; effective date: August 2003, which is incorporated herein by reference and is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/forms/hud4
(k) No change.
(4) Modifications.
(a) All proposed modifications to the subgrant agreement must be approved by the Department.
A Recipient shall not request a modification to add activities that would broaden the scope of the project beyond what was included in the original Florida Small Cities Community Development Block Grant Application for Funding, Form SC-60, as incorporated in Rule 73C-23.0041, F.A.C., except as allowed below. Unaddressed need activities that were included in the Application for Funding can be added to the subgrant agreement through a modification request if all addressed need activities have been procured and funds are available to complete the unaddressed need activities. Replacing a participating party that has withdrawn from an economic development project is not considered an activity.
If a modification request involves a reduction in the number of beneficiaries or accomplishments listed in the original Application for Funding, the Recipient shall conduct a public hearing to discuss the changes prior to submitting the modification request. The hearing must be noticed as defined in subsection 73C-23.0031(45) (44), of this rule.
A modification request shall be denied if:
1. through 2. No change.
(b)1. No change.
2. Two copies of Form SC-44 the Modification to the Subgrant Agreement, Form SC-44, http://www.flrules.org/Gateway/reference.asp?No=Ref-_______; effective date: , 2015, which is hereby adopted and incorporated by reference, signed by the Chief Elected Officer or person designated by resolution to sign modifications.
3. through 4. No change.
5. If there are changes to the subgrant budget, including CDBG or leverage funds, beneficiaries or accomplishments, a signed copy of Form SC-35 the Request for Amendment, Form SC-35, http://www.flrules.org/Gateway/reference.asp?No=Ref-_________; effective date: , 2015, which is hereby adopted and incorporated by reference, that shows current and proposed numbers. If funds are being moved between activities, a copy of Sources and Uses of Funds, DEO Form SC-36, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference. The grant manager will prepare a revised Project Budget based on the information on Form SC-35 and include it with the modification package.
6. No change.
7. If applicable, a copy of the public notice for the public hearing at which the modification was approved, documenting compliance with subsection 73C-23.0031(45) (44), F.A.C. and a copy of the minutes from the hearing.
(c), 1. through 6. No change.
7. If a modification request is received after the contract end date, a 40-point penalty shall be assessed for four years from the date that the administrative closeout request is received by the Department if the reinstatement is approved. A reinstatement shall only be approved if the Recipient can show that it will be able to complete any unfinished work before the new end date being requested and that all National Objective and Public Benefit requirements, which are included in the Recipient’s Application for Funding, Form SC-60, and the Subgrant Agreement executed between the Recipient and the Department, will be met.
8. No change.
(d) through (e) No change.
(5), (a) through (d) No change.
(e) The Department will respond to a closeout request by notifying the requester by mail and identifying all mailing a Notice of Outstanding Closeout Issues (NOCISS) letter that identifies issues that must be resolved before the Department can approve the closeout or by mailing a Notice of Administrative Closeout.
(f) If a Recipient fails to meet contractual requirements on time, the Department shall reserves the right to require that a Recipient financially (not administratively) close out a subgrant to meet federal requirements for the timely distribution of funds set by HUD.
(g) No change.
(6) Performance.
(a) Reporting. The At a minimum, the local government shall provide the Department with:
1. By the dates listed in the subgrant Subgrant agreement Agreement, a Quarterly Progress Report progress reports, DEO Form SC-65, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
2. An annual HUD-60002 form, effective date: June 2001, Section 3 Summary Report report, which is incorporated herein by reference and submitted through the Department’s Electronic CDBG reporting system at https://www.deoecdbg.com/Default.aspx
3. A HUD-2516 form, effective date: August 1998, Semi-Annual Minority/Woman Business Enterprise report, which is incorporated herein by reference and submitted through the Department’s Electronic CDBG reporting system at https://www.deoecdbg.com/Default.aspx; and
4. An Administrative Closeout Report administrative closeout report, DEO Form SC-62, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
(b) Monitoring by the Recipient. Each subgrant Recipient shall constantly monitor its own performance of project activities to ensure that time schedules are met, projected milestones are accomplished, and other performance goals are achieved in accordance with the Activity Work Plan of the subgrant agreement.
1. If the Recipient determines that a contractor or subcontractor has paid an employee less that the Davis-Bacon Act required page, it shall take action to see that the employee is paid restitution. If the total restitution due to one or more employees exceeds $50, the Recipient shall complete a Wage Restitution Enforcement Report, DEO Form SC-46, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference.
(c) No change.
(d) Remedies. When the Department determines on the basis of a review of the Recipient’s performance that the terms of the subgrant are not being met, the Department shall:
1. Initiate actions as prescribed in 24 CFR Part 570.910(b), “Corrective and Remedial Actions” and 24 CFR Part 570.911, “Reduction, withdrawal, or adjustment of grant or other appropriate action,.” as incorporated in Rule 73C-23.0031, F.A.C.
2. The Department shall may unilaterally modify the agreement to delete an ineligible activity and deobligate any unencumbered funds if at any time after the effective date of a subgrant the Department determines that a funded activity is not eligible pursuant to 24 CFR Part 570.
(e) Submission of inaccurate information in monitoring report responses; audit or audit finding responses; quarterly, closeout, program income, or other reports; or Requests for Funds shall may result in penalties if this inaccuracy results in subsequent official Department action (such as the granting of administrative or final closeout status, releasing funds, or clearance of findings).
1. through 3. No change.
(7) Audit Requirements.
A Single Audit under 2 CFR Part 200 OMB Circular A-133, or an attestation statement that a Single Audit is not required, using the Audit Certification Memo, DEO Form SC-47, http://www.flrules.org/Gateway/reference.asp?No=Ref- ; effective date: , 2015, which is hereby adopted and incorporated by reference, must be received from each Recipient with either an open or administratively closed contract by the June 30 following the end of each Recipient fiscal year in which subgrant funds were expended or a penalty will be assessed. A 25-point penalty will be assessed for audits not received by the June 30 deadline. A 10-point penalty will be assessed for attestation statements not received by the June 30 deadline. The penalty will expire two years from the date that the audit report or attestation statement was received by the Department.
(a) through (f) No change.
(8) Displacement and Relocation.
(a) Recipients are required to develop a written plan for assisting persons or businesses that may be displaced as a result of activities assisted with CDBG funds. The plan shall include actions that the Recipient shall take to mitigate any adverse effects resulting from CDBG-funded activities that may cause such displacement. This plan shall be in accordance with Section 104(d) of Title I of the Housing and Community Development Act of 1974, as amended and as incorporated in Rule 73C-23.0031, F.A.C, and is required even if displacement is not anticipated.
(b) If the CDBG project involves the acquisition of real property by the local government, regardless of whether such acquisition is funded from the CDBG grant, or causes displacement of persons or businesses, the local government shall comply with 49 CFR Part 24 (the implementing regulation of the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970), as incorporated in Rule 73C-23.0031, F.A.C. incorporated herein by reference. For activities resulting in displacement of persons or businesses that do not involve the acquisition of real property, and thus not subject to the “Uniform Act,” the local government’s local written policy shall identify the assistance it elects to provide for such persons or businesses.
(c) No change.
(9) through (12) No change.
73C-23.0061 Emergency Set-aside Assistance.
Applications will be accepted for the Emergency Assistance Set-aside in accordance with 290.044(5), F.S., and the following criteria:
(1) No change.
(2) The funds shall be to meet serious, urgent community needs of low- and moderate-income residents resulting from a natural disaster. The area must have been declared to be in a state of emergency by executive order of the Governor as provided under Section 252.36, F.S. The National Objective to be met shall be Urgent Need or Low- and Moderate-Income benefit, as found in Rule 73C-23.0035(3), F.A.C.
(3) through (10) No change.
73C-23.0071 Section 108 Loans.
(1) No change
(2) Application Process.
(a) Eligible non-entitlement local governments wanting to receive assistance through the Small Cities Community Development Block Grant Loan Guarantee Program may apply at any time during the year. The following application process must be followed:
1. The non-entitlement local government completes the Section 108 Pre-Application Questionnaire, (See Form SC-58, http://www.flrules.org/Gateway/reference.asp?No=Ref-_______; effective date: , 2015, which is hereby adopted and incorporated by reference,.) and submits it to the Department for review.
2. No change.
3. If the Department determines that the project is eligible for further consideration, the local government is invited to submit an loan request that contains the information required in 42 USC 5308, effictive date: February 3, 2015, which is available at http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5308&num=0&edition=prelim, and which is incorporated herein by reference and 24 CFR part 570, subpart M a Section 108 loan application. The local government must provide documentation to the Department that it has met the Citizen Participation requirements detailed in paragraph 73C-23.0041(5)(b), F.A.C., with the exception that it only has to provide a project summary and draft budget at the second public hearing.
4. The local government then prepares its Section 108 loan application and submits it to the Department for review. The application narrative must describe how the proposed project will meet a national objective and the public benefit standards, and it must document that the proposed activities are eligible for funding. The narrative shall also include a detailed budget showing all sources and uses of funds, a repayment (amortization) schedule, required local government certifications, proof of proper citizen’s participation and site control (if applicable), background information on project partners, maps, and other supporting documentation to illustrate the specifics of the proposed project. Projects which propose a loan(s) to a third party(ies) shall include letters of commitment from all funding sources evidencing sufficient non-loan funds are available to complete the project. For economic development projects, these commitments shall include at a minimum those stated in Part 5 of the Economic Development section of the Florida Small Cities Community Development Block Grant CDBG Application for Funding, (Form SC-60.5), as incorporated in Rule 73C-23.0041(6), F.A.C., under the “Initial Participating Party Commitments.” section.
5. No change.
6. The local government shall have a third party complete a detailed underwriting analysis of the proposed project in accordance with 24 CFR 570.482(e)(2) and Appendix A of 24 CFR Part 570, as incorporated in Rule 73C-23.0031, F.A.C.
a. The Department shall retain the right to approve the third party underwriter and the method of analysis and to enforce adherence to the guidelines in 24 CFR 570.482(e)(2) and Appendix A, as incorporated in Rule 73C-23.0031, F.A.C. The Department shall may, as necessary, require additional underwriting standards, criteria or review when it appears that the proposed project is not economically feasible. necessary.
b. No change.
c. The Department shall be provided the underwriting analysis prior to the final application package being sent to HUD Office in Jacksonville. The Department reserves the right to require additional information from the local government, the underwriter and/or the third party to whom a loan is proposed, when it appears that the proposed project is not economically feasible. Once a financial underwriting analysis and other required documentation has been provided by the local government, any material change, including changes in corporate or ownership structure, which affects the underlying assumptions upon which the local government relied, will require that the underwriting analysis be re-evaluated by the local government and the underwriter and any assistance requested for the Participating Party must be adjusted if a material change that affects the conclusions of the underwriter has occurred.
d. Should the project be approved and funded, the cost for underwriting analysis may be reimbursed from loan proceeds to the entity incurring the cost. This reimbursement requires an up-front letter of request to incur pre-agreement costs from the applying local government, delivered to the Department prior to incurring the costs.
7. Any application that is eligible for funding and financially feasible is forwarded to the HUD Office in Jacksonville, along with the underwriting analysis and a recommendation that the application be approved or denied. HUD staff reviews the application and underwriting analysis to ensure that the project is eligible and feasible and to verify that the proposed project meets a national objective, includes eligible activities and meets the public benefit standards. HUD’s review also verifies that citizen’s participation requirements were met and that all required certifications have been completed.
8. The Jacksonville HUD Office then forwards the application to the Section 108 staff at HUD headquarters, along with its recommendation for approval or disapproval of the project.
9. A HUD staff underwriter completes a detailed review of the application and examines the requested loan terms and additional security requirements. The staff underwriter may communicate with HUD Jacksonville, the Department, the applying local government, and the local underwriter in order to resolve questions, concerns or issues that may arise during the review.
10. Following completion of the HUD staff underwriter’s review, a Project Review Panel (consisting of staff from headquarters and Jacksonville) examines the application, suggest ways to resolve issues, request additional information or recommend approval or disapproval. Applications that are approved are forwarded to the Secretary of HUD for final approval.
(3) Site Visit and Contracting Period.
(a) No change.
(b) The local government shall submit a fully executed Participating Party Agreement(s) that meet(s) the requirements set out in Part 5 the Economic Development section of the Florida Small Cities Community Development Block Grant CDBG Application for Funding, (Form SC-60.5), as incorporated in Rule 73C-23.0031, F.A.C.
(c) through (d) No change.
(4) No change.
73C-23.0081 Nonrecurring CDBG Funding.
(1) through (2) No change.
(3) Rule 73C-23.0031, F.A.C. (Definitions, except the definitions of “application cycle,” “business incubator,” “fundable range” “funding cycle,” “microenterprise” and “service area”) and subsections 73C-23.0051(1), (3) and (9), F.A.C. (Selected portions of Grant Subgrant Administration and Project Implementation) will apply to CDBG disaster recovery funding. All other portions of Rule Chapter 73C-23, F.A.C., are waived.
(4) through (10) No change.
(11), (a) through (b) No change.
(c) Upon completion of the activities contained in the local government’s CDBG subgrant agreement (including any modifications), the local government shall submit to the Department a closeout package which, at a minimum, gives the final statement of costs, certifies that the project and all non-administrative activities are completed and accepted, certifies that all costs except those reflected on the closeout forms have been paid and reports demographics of the program’s beneficiaries.
(d) No change.
(e) When housing assistance is provided, the closeout documents must, at a minimum, include a list of the households assisted by the contract. Additional information required by HUD may be requested by the Department at any time.
(f) through (g) No change.
(h) If a local government fails to meet contractual requirements on time, as listed in the subgrant agreement’s Activity Work Plan, the Department reserves the right to require that a local government financially (not administratively) close out a subgrant agreement in order to meet federal requirements for the timely distribution of funds set by HUD.
(i) No change.
Rulemaking Authority 290.046(2)(b)2, 290.048 FS. Law Implemented 290.043 FS. History–New 6-6-10, Formerly 9B-43.0081, Amended__________.
