HomeMy Public PortalAbout2015 - CDBG Policy and Procedures Manual adopted by Resolution RS2014-301
COMMUNITY DEVELOPMENT BLOCK GRANT
Policy and Procedures Manual
Department of Planning and Protective Services
Redevelopment and Grants Division
City of Jefferson, Missouri
January 2015
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CITY OF JEFFERSON
PLANNING AND PROTECTIVE SERVICES DEPARTMENT
REDEVELOPMENT AND GRANTS DIVISION
Community Development Block Grant Staff
Janice McMillan, AICP, Department Director jmcmillan@jeffcitymo.org
Jayme Abbott, Neighborhood Services Coordinator jabbott@jeffcitymo.org
Lauren Henry, Neighborhood Services Specialist lahenry@jeffcitymo.org
Penny Tyler, Grant Assistant ptyler@jeffcitymo.org
Physical Address:
John G. Christy Municipal Building
320 E. McCarty Street
Jefferson City, MO 65101
Office Hours: 8:00 AM – 5:00 PM
Phone: (573) 634-6410
Fax: (573) 634-6457
Website: http://www.jeffcitymo.org/pps/pps.html
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Table of Contents
INTRODUCTION .................................................................................................................................................................. 4
KEY DEFINITIONS .............................................................................................................................................................. 5
CHAPTER 1: CDBG IMPLEMENTATION PROCESS .................................................................................................... 9
STEP 1 – SUBMIT CONSOLIDATED PLAN & DETERMINE PROGRAM DELIVERY METHOD .............................................. 9
Consolidated Plan/Action Plan ............................................................................................................................. 9
Program Delivery Method .................................................................................................................................. 10
STEP 2 - NATIONAL OBJECTIVE ............................................................................................................................... 11
STEP 3 – ACTIVITIES THAT ARE ELIGIBLE .................................................................................................................. 16
STEP 4 – COMPLY WITH OTHER FEDERAL REQUIREMENTS ..................................................................................... 18
Environmental Review ........................................................................................................................................ 18
Fair Housing, Accessibility, and Equal Employment ........................................................................................... 18
Procurement ....................................................................................................................................................... 21
Contract Management ....................................................................................................................................... 23
Labor Standards ................................................................................................................................................. 28
Acquisition and Relocation ................................................................................................................................. 29
STEP 5 - ADDRESS FINANCIAL AND ADMINISTRATIVE REQUIREMENTS ..................................................................................... 30
Administration & Planning ................................................................................................................................. 30
Calculating Planning and Administration Cap .................................................................................................... 30
Public Services .................................................................................................................................................... 31
Timely Distribution of Funds............................................................................................................................... 32
Program Income ................................................................................................................................................. 32
Uniform Administrative Requirements ............................................................................................................... 33
Audit Requirements ............................................................................................................................................ 33
Citizen Participation ........................................................................................................................................... 33
Record Retention Period ..................................................................................................................................... 34
Internal Controls ................................................................................................................................................. 34
IDIS Draws .......................................................................................................................................................... 34
Equipment Management and Disposition .......................................................................................................... 35
STEP 6 - ENTER RESULTS INTO IDIS ................................................................................................................................. 36
STEP 7 – REPORT AND MONITOR PROGRESS ..................................................................................................................... 37
Calendar of Events ............................................................................................................................................. 37
Monitoring of Subrecipients ............................................................................................................................... 38
CHAPTER 2: HOMEOWNER SUPPORT PROGRAMS ................................................................................................ 39
SECTION 1: HOMEOWNER SUPPORT PROGRAMS .............................................................................................. 39
Eligibility & Assistance Amounts............................................................................................................... 39
Application Procedures .............................................................................................................................. 43
Section 2: Down payment assistance ................................................................................................................. 47
Eligibility & Assistance Amounts............................................................................................................... 47
Section 3: ............................................................................................................................................................ 50
CHAPTER 3: DEMOLITION ............................................................................................................................................. 52
Table 1 Organizational Chart ................................................................................................................................. 53
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INTRODUCTION
The Housing and Community Development Act of 1974 (HCDA), authorized HUD to create the
Community Development Grant (CDBG) Program. The program seeks to provide decent
housing, a suitable living environment, and expand economic opportunities for low and moderate
income persons.
The City of Jefferson receives a yearly distribution for the CDBG entitlement program. The
entitlement program are for cities in metropolitan areas over 50,000 in population, designated
principal cities of metropolitan statistical areas or urban counties with more than 200,000 people.
The grant amounts are determined by the higher of two formulas: Data based on overcrowded
housing, population and poverty; or Data based on age of housing, population growth lag, and
poverty.
This policies and procedure manual is intended as guidance for the City of Jefferson’s CDBG
program, and is not meant to be a substitute for federal regulations. The federal CDBG program
regulations can be found in Title 24 of the Code of Federal Regulations (CFR) Part 570.
This manual will be reviewed and, if required, revised annually. It can be revised to meet
changes in federal regulations, actions of the City Council or to meet administrative needs upon
approval.
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KEY DEFINITIONS
24 CFR Part 85 (the Common Rule): This rule provides that the grantee shall take affirmative
steps to encourage contracting with small minority and female owned business enterprises when
possible as sources of supplies, equipment, construction, and services.
Action Plan: An annual update to HUD regarding the Consolidated Plan.
Consolidated Plan: The Consolidated Plan is prepared by the grantee in accordance with 24
CFR Part 91, and describes needs, resources, priorities and proposed activities to be undertaken
with respect to CDBG program. An approved Consolidated Plan is one which has been approved
by HUD.
Contractors: A contractor is an entity paid with CDBG funds in return for a specific service
(e.g., construction). Contractors must be selected through a competitive procurement process
based on the City’s procurement standards.
Copeland Anti-Kickback Act: Makes it a criminal offense for a person to induce anyone
employed in the construction, completion, or repair of any public building, public work, or
building, or work financed in whole or in part by loans or grants from the United States, to give
up any part of the compensation to which the employee is otherwise entitled. The Act also
regulates payroll deductions, specifies methods of paying wages to covered employees, and
requires the submission of weekly payrolls in conjunction with statements of compliance by all
contractors in a format that meets the requirements of 29 CFR Section 5.5.
Davis-Bacon Act: The Act is triggered when construction work over $2,000 is financed in
whole or in part with CDBG funds. It requires that workers receive no less than the prevailing
wages being paid for similar work in the same area.
Draw down: Refers to the process of requesting and receiving CDBG funds. Grantees draw
down funds from a line of credit established by HUD, while subrecipients draw down funds from
the grantee.
Executive Order 11063: This Executive Order provides that no person shall be discriminated
against on the basis of race, color, religion, sex, or national origin in housing and related
facilities provided with Federal assistance and lending practices with respect to residential
property when such practices are connected with loans insured or guaranteed by the Federal
government.
Executive Order 11246: This Executive Order applies to all Federally assisted construction
contracts and subcontracts. It provides that no person shall be discriminated against on the basis
of race.
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Executive Order 11259: This Executive Order provides that the administration of all Federal
programs and activities relating to housing and urban development be carried out in a manner to
further housing opportunities throughout the United States.
Grantee: Each entitlement community, or grantee, administers its local CDBG program in
accordance with program requirements.
Household: All the persons who occupy a housing unit. The occupants may be a single family,
one person living alone, two or more families living together, or any groups of related or
unrelated persons who share living arrangements.
Income: Grantees may select any of three definitions of income: (1) Annual income as defined
under Section 8; (2) Annual income as reported under the Census long form; or (3) Adjusted
gross income as defined by the IRS Form 1040.
Limited Clientele: Persons (or groups of persons) are presumed to be principally LMI,
according to HUD. These include: abused children, battered spouses, elderly persons (age 62 and
over), adults meeting the Bureau of the Census’ definition of severely disabled, homeless
persons, illiterate adults, persons living with AIDS, and migrant farm workers.
Low and Moderate Income: Low and moderate income (LMI) means family or household
annual income less than the Section 8 Low Income Limit, generally 80% of the area median
income, as established by HUD.
Low-Income Household/Family: A household/family having an income equal to or less than
the Section 8 Very Low Income limit (50% of the area median income) as established by HUD.
Moderate-Income Household/Family: A household/family having an income equal to or less
than the Section 8 Low Income limit (80% of area median income) established by HUD, but
greater than the Section 8 Very Low Income Limit (50% of area median income) established by
HUD.
Restoration Act of 1987: This Act restores the broad scope of coverage and clarifies the
application of the Civil Rights Act of 1964. It also specifies that an institution which receives
Federal financial assistance is prohibited from discriminating on the basis of race, color, national
origin, religion, sex, disability, or age in a program or activity which does not directly benefit
from such assistance.
Section 109 of Title 1 of the Housing and Community Development Act of 1974: This
section of Title 1 provides that no person shall be excluded from participation (including
employment), denied program benefits, or subject to discrimination on the basis of race, color,
national origin, or sex under any program or activity funded in whole or in part under Title I of
the Act.
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Section 3 of the Housing and Urban Development Act of 1968, as amended: Requires the
provision of opportunities for training and employment that arise through HUD-financed projects
to lower-income residents of the project area, to the greatest extent feasible and consistent with
Federal, State and local laws and regulations. Also required is that contracts be awarded to
businesses that provide economic opportunities for low- and very low-income persons residing in
the area. Amendments to Section 3 in 1992 included requirements for providing these
opportunities in contracts for housing rehabilitation, including lead-based paint abatement, and
other construction contracts.
Section 109 of Title I of the Housing and Community Development Act of 1974: Requires
that no person shall be excluded from participation in, be denied the benefits of, or be subjected
to discrimination under any program or activity funded with CDBG funds on the basis of race,
color, religion, national origin, or sex.
Section 504 of the Rehabilitation Act of 1973: It is unlawful to discriminate based on disability
in Federally assisted programs. This section provides that no otherwise qualified individual shall,
solely by reason of his or her disability, be excluded from participation (including employment),
denied program benefits, or subjected to discrimination under any program or activity receiving
Federal funding assistance. Section 504 also contains design and construction accessibility
provisions for multi-family dwellings developed or substantially rehabilitated for first occupancy
on or after March 13, 1991.
Subrecipient: An entity that assists the grantee to implement and administer its program.
Subrecipients are generally nonprofit organizations that assist the recipient to undertake one or
more activities on behalf of the grantee, such as a home rehabilitation. Subrecipients are also
referred to as subgrantees.
The Age Discrimination Act of 1975: This Act provides that no person shall be excluded from
participation, denied program benefits, or subject to discrimination on the basis of age under any
program or activity receiving Federal funding assistance. Effective January 1987, the age cap of
70 was deleted from the laws. Federal law preempts any State law currently in effect on the same
topic including: KRS 18A.140; KRS 344.040; 101 KAR 1:350 Paragraph 11; 101 KAR 1:375
Paragraph 2(3); 101 KAR 2:095 Paragraphs 6 and 7.
The Americans with Disabilities Act of 1990 (ADA): This Act modifies and expands the
Rehabilitation Act of 1973 to prohibit discrimination against “a qualified individual with a
disability” in employment and public accommodations. The ADA requires that an individual
with a physical or mental impairment who is otherwise qualified to perform the essential
functions of a job, with or without reasonable accommodation, be afforded equal employment
opportunity in all phases of employment. Kentucky adopted this Act in 1992 with the enrollment
and passage of Senate Bill 210.
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The Equal Employment Opportunity Act: This Act empowers the Equal Employment
Opportunity Commission (EEOC) to bring civil action in Federal court against private sector
employers after the EEOC has investigated the charge, found “probable cause” of discrimination,
and failed to obtain a conciliation agreement acceptable to the EEOC. It also brings Federal,
State, and local governments under the Civil Rights Act of 1964.
The Fair Housing Amendment Act of 1988: This Act amended the original Fair Housing Act
to provide for the protection of families with children and people with disabilities, strengthen
punishment for acts of housing discrimination, expand of the Justice Department jurisdiction to
bring suit on behalf of victims in Federal district courts, and create an exemption to the
provisions barring discrimination on the basis of familial status for those housing developments
that qualify as housing for persons age 55 or older.
The Housing for Older Persons Act of 1995 (HOPA): Retained the requirement that the
housing must have one person who is 55 years of age or older living in at least 80 percent of its
occupied units. The Act also retained the requirement that housing facilities publish and follow
policies and procedures that demonstrate intent to be housing for persons 55 and older.
The Immigration Reform and Control Act (IRCA) of 1986. Under IRCA, employers may hire
only persons who may legally work in the U.S., i.e., citizens and nationals of the U.S. and aliens
authorized to work in the U.S. The employer must verify the identity and employment eligibility
of anyone to be hired, which includes completing the Employment Eligibility Verification Form
(I-9).
The Uniform Guidelines on Employee Selection Procedures adopted by the Equal
Employment Opportunity Commission in 1978: This manual applies to employee selection
procedures in the areas of hiring, retention, promotion, transfer, demotion, dismissal and referral.
It is designed to assist employers, labor organizations, employment agencies, licensing and
certification boards in complying with the requirements of Federal laws prohibiting
discriminatory employment.
The Vietnam Era Veterans’ Readjustment Act of 1974 (revised Jobs for Veterans Act of
2002): This Act was passed to ensure equal employment opportunity for qualified disabled
veterans and veterans of the Vietnam War. Affirmative action is required in the hiring and
promotion of veterans.
Title VI of the Civil Rights Act of 1964: This Act provides that no person shall be excluded
from participation, denied program benefits, or subject to discrimination based on race, color,
and/or national origin under any program or activity receiving Federal financial assistance.
Title VIII of the Civil Rights Act of 1968 (The Fair Housing Act): This Act prohibits
discrimination in housing on the basis of race, color, religion, sex and/or national origin. This
law also requires actions which affirmatively promotes fair housing.
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CHAPTER 1: CDBG IMPLEMENTATION PROCESS
The following provides an overview of the framework in which the City must make decisions
concerning activities and/or organizations to fund under the CDBG program.
STEP 1 – SUBMIT CONSOLIDATED PLAN & DETERMINE PROGRAM DELIVERY
METHOD
CONSOLIDATED PLAN/ACTION PLAN
The process of completing the Consolidated Plan (and annual Action Plans) helps the City to
determine what activities to fund in the coming year.
The Consolidated Plan is a plan of five years in length, which describes the community
needs, resources, priorities, and proposed activities to be undertaken under CDBG program.
Each year, the City must submit an update to HUD, referred to as an Action Plan. The Action
Plan describes the specific planned uses for CDBG.
The Consolidated Plan includes the following:
1. A description of the entity responsible for overseeing the development of the
Consolidated Plan and a description of the process undertaken to develop the plan;
2. A housing and homeless needs assessment;
Step 1 •Submit Consolidated Plan & Determine Program Delivery Method
Step 2 •Select Activities That Meet A National Objective
Step 3 •Select Activities That Are Eligible
Step 4 •Comply With Other Federal Requirements
Step 5 •Address Financial And Administrative Requirements
Step 6 •Enter Results Into IDIS
Step 7 •Report And Monitor Progress
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3. A housing market analysis;
4. A strategic plan; and
5. A one-year Action Plan.
The following is a timeline of the Consolidated Plan so that it’s timely and accurate.
Pre-Public Hearing regarding the development of the Consolidated/Action Plan shall
be held sometime in June.
End of September, Public Hearing is held regarding the proposed
Consolidated/Action Plan. Copies of the proposed Consolidated/Action Plan will be
made available for public Review. The 30 day public comment period begins the day
after the public hearing is held.
Present the draft plan to the Public Works and Planning Committee and City Council.
The Plan shall be approved by Council via Resolution.
The Consolidated/Action Plan is due to HUD November 15th*.
HUD issued CPD Notice #2014-015, concerning grantees’ submission of Action Plans for FY
2015 funding under the CDBG, HOME, ESG and HOPWA programs. This Notice instructs
grantees not to submit their FY 2015 Action Plans or new 3-5 year Consolidated Plans until an
appropriations bill has been enacted and HUD has notified grantees of their actual FY 2015
allocation amounts under the four formula programs. HUD field offices have been instructed to
disapprove as substantially incomplete any FY 2015 Action Plan that contains estimated grant
amounts.
PROGRAM DELIVERY METHOD
The City (grantee) is responsible for ensuring that CDBG funds are used in accordance with all
program requirements. The use of designated public agencies, subrecipients, or contractors does
not relieve the grantee of this responsibility. The grantee is also responsible for determining the
adequacy of performance under subrecipient agreements and procurement contracts and for
taking appropriate action when performance problems arise.
Before disbursing funds to any organization that is carrying out CDBG activities on behalf of the
grantee as a subrecipient, a written agreement must be executed. The CDBG regulations stipulate
that certain requirements be included in all written agreements with subrecipients.
Written agreements must remain in effect for the length of time that the subrecipient has control
over any CDBG funds, including program income. However, it is good practice to update
subrecipient agreements annually to ensure the agreements are current with regulations and
requirements. This process also allows an opportunity to revisit and clarify problem areas or
issues.
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STEP 2 - NATIONAL OBJECTIVE
In order to use HUD funds, the project must meet a National Objective. They are the following.
The LMI national objective is the primary national objective because the statute requires that
grantees expend 70% of the CDBG funds to meet the LMI national objective.
LMI Calculation Example:
Total entitlement grant amount: $225,000
Less actual planning and admin (up to 20%): ($45,000)
Equals amount subject to LMI calculation: $180,000
Multiplied by 70 percent: X 0.70
Equals minimum to benefit LMI: $126,000
Amount subject to LMI calculation: $180,000
Less LMI minimum: ($126,000)
Equals maximum slum/blight and urgent needs allowable activities: $54,000
National Objective
Urgent
Threat to
Health &
Safety
Eliminates
Slum &
Blight
51% LMI
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a) 51% Low and Moderate Income
At least 51% or more of the persons and families benefiting must be low and moderate-income
(LMI) for public projects and public facilities and 100% LMI for housing activities. LMI can be
determined by HUD census data or by conducting a survey. LMI is generally calculated on an
area basis, meaning either the entire jurisdiction of the City or a defined targeted area within the
City must be at least 51% LMI.
a. To be counted as a beneficiary of a project, LMI documentation must be obtained.
b. For every separate activity funded under the same project, there must be 51% LMI or the
removal of slum and blight achieved.
c. For the purposes of determining eligibility, all persons and families must be counted. For the
purposes of determining the amount of CDBG funding, all households must be counted.
d. A project may not be designed to benefit moderate-income persons to the exclusion of low-
income persons.
e. HUD’s Section 8 program income guidelines (as modified by the Housing and Community
Development Act of 1987) shall be used to define low and moderate-income for the CDBG
Program. The annual income limits are available from http://www.huduser.org/portal/. If
HUD has not published the applicable year’s limits, then the community may use the
previous year in order to begin the survey work.
f. “Income” should be viewed as a family’s total adjusted gross income. Any person that
belongs to an LMI family is considered an LMI person. Request a copy of the direct
beneficiaries IRS Form 1040 or other equivalent income statements.
g. To calculate the LMI percentage, divide the number of LMI persons by the total number of
persons benefiting; and divide the number of LMI families by the total number of families
benefiting. Both calculations must equal or exceed 51%. You may not round up to achieve
51%. The HUD census data is only available in the number of LMI persons. Therefore, in
order to arrive at the correct number of LMI families, divide the number of persons by 2.48,
which is the state average household size.
h. If you choose to survey for eligibility, there are three categories of income to report: 80% of
the county’s median income; 50% of county’s median income; and, 30% of the county’s
median income. Eligible persons and families are all those below 80% of median income.
The terminology may differ for the three categories but the percentages are the same. You
may see: moderate-low-very low; or low-very low-extremely low; or low-very low-30% of
median. It is important to distinguish the categories for the reporting purposes and not to
eliminate any from the survey instrument sample.
i. It is the activity that will often provide the indication of who benefits. The availability of
exact census data will determine whether census or survey may be used. In the CDBG
program, an applicant determines the project to be either: area-wide benefit, or a target-area
benefit. Secondly, the applicant indicates the method of LMI eligibility: census, survey, job-
creation, or limited clientele.
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j. The application may be an area-wide benefit if the activity benefits an entire city, county,
township, or enumeration district, either 2006-2010 American Community Survey or survey
may be used to determine LMI benefit. Please note that the census data provided by HUD
sometimes differs from the U.S. Census Bureau in terms of income and the total number of
persons and families in a given area. City may only accept the HUD data as valid.
k. If the activities proposed in an application only benefit a portion of the community, then a
target-area benefit would be relevant. Most often, surveys are required to gain eligibility
here. Census data by tract or block group may be used if the beneficiaries exactly match the
tracts or block groups (and the entire block group data must be used).
l. If one activity benefits the entire community (such as water or wastewater treatment) and
another activity that benefits only a section of the community (such as water distribution or
wastewater collection) then the treatment activity must represent the majority of the project
costs in order to use an area-wide benefit with census data.
m. Surveys are used to apply accurate information to an area that is not covered by census
information, or to provide updated information to an area that has changed in the number of
persons and their income level during the decade for which the census is valid. There is a
methodology applied to surveys intended to support CDBG eligibility and there is a time
limit in which those surveys may be valid.
n. There are two options for surveys: 100% solicitation (census) or random.
o. For the first option, applicants must solicit 100% of the proposed beneficiaries. The survey
response percentage is 80%. (This is only allowed when the project area contains 200 or
fewer families). For larger surveys, applicants are required to perform a random survey.
p. A random survey requires a smaller sample to be surveyed, but requires that specific
residences (chosen at random by CDBG) be surveyed. The survey response rate is 80% of
the residences surveyed. A random survey is required if the service area contains more than
200 families. Contact CDBG staff for random number table if random survey is required. If
the service area of the project consists of 200 or fewer families, a random survey is not an
option.
q. Regardless of survey options, there are three acceptable procedures: door to door, which
should involve trained personnel, where the survey is conducted at the residence by an
interviewer. Techniques of not introducing bias into the survey should be used including
question wording; probing to obtain clarification, and recording responses accurately.
Modified door-to-door includes hand delivery of the survey but the task of completion is left
to the resident. The deliverer may either wait or make arrangements to pick the survey up at a
later date. Or, the survey may be made via mail.
r. Telephone surveys are not acceptable.
s. The survey instrument and tabulation sheet is made available to the applicant by CDBG.
t. A map must accompany the survey area, showing the project area and beneficiaries. If a
survey is used to prove LMI, then the survey area and the houses surveyed should be clearly
marked on the map.
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u. Limited Clientele persons (or groups of persons) are presumed to be principally LMI,
according to HUD. These include: abused children, battered spouses, elderly persons (age 62
and over), adults meeting the Bureau of the Census’ definition of severely disabled, homeless
persons, illiterate adults, persons living with AIDS, and migrant farm workers. The disability
data used for limited clientele are “persons with a mobility or self-care limitation.” This data
is broken into persons age 16 to 64 and 65 and older. The data for both age groups must be
added together in total. Do not use the data for “persons with a work disability.”
v. In addition, if a project’s activities are limited exclusively to LMI persons (such as a food
pantry with income restrictions either equal to or more restrictive than the LMI income limits
for that area), the project may meet the LMI national objective through limited clientele.
w. Limited Clientele projects are those that exclusively serve a group defined as limited
clientele. If this criterion is met, then no further LMI documentation, either by census or by
survey is necessary. If the project is not exclusive or designed for only that group or groups,
then LMI eligibility must be proven by another method.
b) Elimination of Slums and Blight
To prove this HUD national objective, a project must propose one of the two different methods.
1) The first method occurs when a structure is blighted; when it exhibits objectively determinable
signs of deterioration sufficient to constitute a threat to health, safety and public welfare.
For the City to participate in this activity it must, at a minimum, determine blighted structures by
applying existing dangerous building ordinance, building code level of violation or applicable
occupancy or habitability designation or code violation in a manner consistent with their
ordinance. The ordinance, code violation or designation must be applied to the specific
structure, not to the area as a whole. The predominance of blight in an area does not allow blight
to be assumed for each structure inside the area.
2) The second method covers area blight, and includes submitting a resolution passed by the
governing legislative body declaring the area blighted in accordance with 24 CFR 570. As
stated, the definition of the national objective elimination of slum and blight reads as follows.
The area meets the conditions of either (a) or (b):
a) At least 25% of the properties throughout the area experience one or more of the following
conditions:
1. Physical deterioration of buildings or improvements,
2. Abandonment of properties
3. Chronic high occupancy turnover rates or chronic high vacancy rates in commercial
or industrial buildings,
4. Significant declines in property values or abnormally low property values relative to
other areas in the community, or
5. Known or suspected environmental contamination.
b) The public improvements throughout the area are in a general state of deterioration.
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c) Urgent Threat to Health and Safety
The use of the urgent need national objective is rare. It is generally used for activities to
alleviate emergency conditions. According to “Basically CDBG” Course Training Manual
examples include:
Acquisition of property located in a flood plain that was severely damaged by a recent
flood;
Public facility improvements like the reconstruction of a publicly-owned hospital that
was severely damaged by a tornado;
Demolition of structures that are severely damaged by a major earthquake;
Urgent need qualified activities must meet the following criteria:
The existing conditions must pose a serious and immediate threat to the health or welfare
of the community;
The existing conditions are of recent origin or recently became urgent (generally, within
the past 18 months);
The grantee is unable to finance the activity on its own; and
Other sources of funding are not available.
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STEP 3 – ELIGIBLE ACTIVITIES
Section 105(a) of the Community Development Act and HUD regulations specified the activities
that are eligible for CDBG assistance. A general listing of eligible activities is below, and a
detailed description is provided in 105(a) of the Act and in 24 CFR 570.482.
1. Property Acquisition
2. Property Disposition
3. Property Clearance/Demolition
4. Architectural Barrier Removal
5. Senior Center
6. Community Facilities
7. Centers for the Handicapped
8. Historic Properties
9. Water Treatment/Storage
10. Sanitary Sewer Collection
11. Storm Sewers
12. Flood and Drainage Facilities
13. Streets (or Roads)
14. Street Accessories
15. Parking Facilities
16. Bridges
17. Sidewalks
18. Pedestrian Malls
19. Recycling or Conversion Facilities
20. Parks and Recreation Facilities
21. Fire Protection/Facility Equipment
22. Solid Waste Disposal Facilities
23. Other Utilities
24. Public Service/Supportive Services
25. Rehabilitation of Private Residential
Properties
26. Rehabilitation of Public Residential
Properties
27. Payments for Loss of Rental Income
28. Relocation
29. Code Enforcement
30. Energy Use Strategy
31. Non-Federal Share Payment
32. Interim Assistance
33. Planning
34. Commercial or Industrial Facilities
35. Administration
36. Engineering/Design
37. Housing Rehab/Demo Inspection
38. Engineering/Construction Inspection
39. Airports
40. Natural Gas Lines
41. Electrical Distribution Lines
42. Rail Spurs
43. Lighting
44. Other Professional Services
45. Security Fencing
46. Site Preparation
47. Purchase Land/Building
48. Facility Construction Renovation
49. Machinery/Equipment
50. Working Capital
51. Sewage Treatment
52. LDC Homeownership Assistance – up
to $15,000 to purchase a new home
53. Legal
54. 911 Emergency Systems
55. Homeowners Assistance- up to $5,000
to purchase an existing DSS home
56. Lead-Based Paint Risk Assessment
57. Asbestos Removal
58. Job Training
59. Home-Ownership Counseling
60. Substantial Reconstruction of Private
Residential Properties on Same Lot-
Up to $15,000
61. Water Distribution
62. Lead Reduction NOT incidental to
Rehab
63. Asbestos Inspection
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Pursuant to 24 CFR 570.207 Ineligible Activities are as follows:
1) Maintenance or operation costs. **
2) General government expenses.
3) Political activities.
4) Improvements to city halls and courthouses, except those required to meet the Americans
with Disabilities Act. Note: CDBG funds used for ADA projects may only convert existing
facilities to accessibility. CDBG funds may not be used to add new facilities.
5) Purchase of equipment, except for fire protection, public services, landfills or recreation.
6) Income payments, except for loss of rental income due to displacement.
7) Application preparation costs or a bonus award for writing a successful application.
8) Religious purposes.
** Maintenance and Operation Costs: Any cost that recurs on a regular basis (generally, less than
five years) is considered a maintenance or operation cost, therefore ineligible for CDBG
assistance.
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STEP 4 – COMPLY WITH OTHER FEDERAL REQUIREMENTS
ENVIRONMENTAL REVIEW
An Environmental Review Record must be completed for each project in order to meet the
Environmental Review Requirements set forth at 24 CFR Part 58. All projects will publish
appropriate notices (including HUD 8-Step Process), submission of the Request for Release of
Funds and Certification and Authority to Use Grant Funds will be issued by HUD prior to
commencing with project activities.
FAIR HOUSING, ACCESSIBILITY, AND EQUAL EMPLOYMENT
The City and any sub-recipient(s) must adhere to all the basic tenets of fair housing and equal
opportunity regulations. Recipients are prohibited from practicing discrimination on the grounds
of race, color, national origin, religion, sex, handicap, or familial status.
This prohibition applies to all project contractors or subcontractors. Beneficiary information
should be determined and demographic data compiled, with this information made available in
the project file for public review.
The following is a detailed listing of laws applicable to the CDBG program.
Federal and State Laws and
Regulations (included amendments)
Fair Housing &
Nondiscrimination Accessibility
Equal
Employment
&
Contracting
Title VI of the Civil Rights Act of 1964 X
Title VIII of the Civil Rights Act of
1968 (The Fair Housing Act)
X X
Restoration Act of 1987 X
Section 109 of Title 1 of the Housing
and Community Development Act of
1974
X X
The Fair Housing Amendment Act of
1988
X
The Housing for Older Persons Act of
1995 (HOPA)
X
The Age Discrimination Act of 1975 X
Section 504 of the Rehabilitation Act of
1973
X X X
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The Americans with Disabilities Act of
1990 (ADA)
X X X
Executive Order 11063 X
Executive Order 11259 X
Section 109 of Title I of the Housing
and Community Development Act of
1974
X X
The Equal Employment Opportunity Act X
The Immigration Reform and Control
Act (IRCA) of 1986
X
The Uniform Guidelines on Employee
Selection Procedures adopted by the
Equal Employment Opportunity
Commission in 1978
X
Section 3 of the Housing and Urban
Development Act of 1968, as amended
X
The Vietnam Era Veterans’
Readjustment Act of 1974 (revised Jobs
for Veterans Act of 2002)
X
Executive Order 11246 X
24 CFR Part 85 (the Common Rule): X
A. Fair Housing
As part of HUD’s certification the City is required to complete an analysis of impediments to fair
housing choice. Although not part of the consolidated plan, the City must certify that it
completed the analysis, is taking appropriate actions to overcome the effects of any impediments
identified and maintain records reflecting the analysis and related actions.
The most recent Analysis of Impediments was completed in March 2013. The following
impediments were identified for the City:
Lack of adequate funding allocated for fair housing enforcement and outreach
activities.
Lack of fair housing awareness
Inadequate information and awareness of the city’s housing programs
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Lack of fair housing testing to determine where fair housing discrimination is
taking place.
Concentration of affordable rental housing in certain neighborhoods with higher
minority and low income populations.
Need for ADA education and the lack of availability of housing for persons with
disabilities.
Lack of specific and comprehensive planning efforts around affirmatively
furthering fair housing in the City of Jefferson.
Actions in addressing the above identified impediments should be implemented through the
Consolidated Plan and/or Action plan.
B. Handicapped Accessibility
The City shall abide by HUD regulations in Section 504, HUD’s implementation of the
American with Disability Act (ADA). The City is to conduct a self-evaluation of accessibility to
determine their current programs, services, polices, and practices meet the requirements of
Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act.
C. Equal Employment Opportunities
Congress established Section 3 to ensure that the employment and other economic opportunities
generated by Federal financial assistance for housing and community development programs
shall, to the greatest extent feasible, be directed toward low and very low income persons,
particularly those who are recipients of government assistance for housing.
Section 3 applies to training, employment, contracting and other economic opportunities that are
in connection with the CDBG funds. Contractors and subcontractors providing a service on
projects for which the total amount of federal assistance exceeds $200,000 and the amount of the
contract or subcontract exceeds $100,000 are required to comply with Section 3.
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PROCUREMENT
According to the table below, it appears that the City procurement policy is stricter than CDBG’s
procurement policy. Therefore, City procurement policy will take precedence*.
City of Jefferson HUD Requirements HUD Requirement Notes
$5,000 or less without
competitive bids. See Below
$5,000 and not more
than $25,000 bids to be
in writing, electronic and
online sellers acceptable
from at least 3 vendors.
3 written quotes should
be obtained for all
purchases up to
$100,000.
Award should be made to the lowest
responsive and responsible source.
Over $25,000 requires
advertise for sealed bids
allowing 14 days before
bids are received and
opened. Lowest and best
bid submitted by
responsible bidder
meeting specifications
will be recommended for
award.
Over $100,000
a) Competitive Sealed
Bids. Publish one time in
widest circulation paper.
b) Competitive Proposals
for professional services
All bids must be opened publically at
the time and place stated in the
invitation for bids. A firm-fixed price
contract award must be made in
writing to the responsive bidder whose
bid is lowest, most responsible and
responsive. All unsuccessful bidders
must be notified in writing.
*If City is awarded funds from State CDBG program MO Department of Labor procurement
rules apply.
Non-competitive proposals may be used only when the award of a contract is infeasible under
small purchase procedures, sealed bids, or competitive proposals and one of the following
circumstances applies:
1. Where the item is available only from a single source;
2. Where a public emergency or urgent situation is such that the urgency will not permit a
delay beyond the time needed to employ one or the other procurement methods; or
3. Where after solicitation of a number of sources, competition is determined inadequate.
When bidding out projects with HUD funds must ensure that the equal opportunity housing
symbol is included within the publication.
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A. Conflict of Interest
The following is information from the City’s Purchasing Policy and Procedures Manual.
It shall be unethical for any city employee to participate directly or indirectly in a procurement
contract where the city employee knows that:
a. The city employee or any member of the city employee’s immediate family has a
financial interest pertaining to the procurement contract; or
b. Any other person, business, or organization with whom the city employee or any
member of a city employee’s immediate family is negotiating or has an
arrangement concerning prospective employment is involved in the procurement
contract.
A city employee or any member of a city employee’s immediate family who holds a financial
interest in a disclosed blind trust shall not be deemed to have a conflict of interest with regard to
matters pertaining to that financial interest.
Note: Personnel Policy
Section 20-5 Conflict of Interest
No employee of the municipal service shall hold a financial interest in a firm, institution,
corporation, or other establishment supplying goods or services to the city. No employee shall be
employed in any capacity with a firm, institution, corporation or other establishment supplying
goods or services to the city when that capacity means the possession, direct or indirect, of the
powers to direct or cause the direction of the management and policies of that organization. No
employee shall receive any payment, gifts, favors, or other consideration from any person, firm,
institution, corporation, or other establishment supplying goods or services to the city.
Section 20-6 Penalties
Any employee found guilty of any violation of this section shall be subject to any disciplinary
action up to and including dismissal as defined by these rules and such other penalties as may be
deemed appropriate and consistent with the laws of the City of Jefferson and the State of
Missouri.
B. Excluded Parties
Prior to making any award (sub grant or contract) the organization must be checked for
debarment, suspension or otherwise excluded from participation in Federal assistance programs
under Executive Order 12549, “Debarment and Suspension.”
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Contractor must be cleared through the following links:
a. Secretary of State’s website. Check and see if they are registered to do business in
the State. For this website you will have to have to know exactly how they
registered their company.
https://bsd.sos.mo.gov/BusinessEntity/BESearch.aspx?SearchType=0
b. HUD’s debar website. Click on Limited Denial of Participation list & if nothing
shows up for the company they are not debarred with HUD.
http://portal.hud.gov/hudportal/HUD?src=/topics/limited_denials_of_participation
c. State Department of Labor Contractor Department List
http://labor.mo.gov/DLS/PrevailingWage/debarment_list
d. System for Award Management (SAM)
https://www.sam.gov
CONTRACT MANAGEMENT
Contract management is a large part of any project’s success. It is important that all parties in a
contract are held to the roles and responsibilities for which they are receiving payment. Project
delays or problems are often the result of misunderstandings, assumptions of the responsibilities
of different parties in a contract, or of parties not performing their work to a standard. To correct
these problems, contract language must be clear and must take the management of the contracts
seriously as a working role.
Before entering into a contract you must ensure that all contracts are written so that they are
based on a lump sum or unit price. Please be careful of any hidden or unexpected costs or
additional fees that may have been added to the contract. Such fees may include per hour
additional fees for surveying, obtaining easements, etc. Often grantees may think these costs are
part of the base contract and have not allowed for the additional cost in their budget.
A. Contract Content
According to 24 CFR 85.36(i) contract provisions, a grantee's and subgrantee's contracts must
contain provisions listed below. Federal agencies are permitted to require changes, remedies,
changed conditions, access and records retention, suspension of work, and other clauses
approved by the Office of Federal Procurement Policy.
1. Administrative, contractual, or legal remedies in instances where contractors violate or
breach contract terms, and provide for such sanctions and penalties as may be
appropriate. (Contracts more than the simplified acquisition threshold)
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2. Termination for cause and for convenience by the grantee or subgrantee including the
manner by which it will be effected and the basis for settlement. (All contracts in excess
of $10,000)
3. Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal
Employment Opportunity", as amended by Executive Order 11375 of October 13, 1967,
and as supplemented in Department of Labor regulations (41 CFR chapter 60). (All
construction contracts awarded in excess of $10,000 by grantees and their contractors or
subgrantees)
4. Compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in
Department of Labor regulations (29 CFR part 3). (All contracts and subgrants for
construction or repair)
5. Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) as supplemented by
Department of Labor regulations (29 CFR part 5). (Construction contracts in excess of
$2000 awarded by grantees and subgrantees when required by Federal grant program
legislation). Davis-Bacon does not apply to the rehabilitation of residential structures
containing less than eight units or force account labor.
6. Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards
Act (40 U.S.C. 327A 330) as supplemented by Department of Labor regulations (29 CFR
part 5). (Construction contracts awarded by grantees and subgrantees in excess of $2000,
and in excess of $2500 for other contracts which involve the employment of mechanics
or laborers)
7. Notice of awarding agency requirements and regulations pertaining to reporting.
8. Notice of awarding agency requirements and regulations pertaining to patent rights with
respect to any discovery or invention which arises or is developed in the course of or
under such contract.
9. Awarding agency requirements and regulations pertaining to copyrights and rights in
data.
10. Access by the grantee, the subgrantee, the Federal grantor agency, the Comptroller
General of the United States, or any of their duly authorized representatives to any books,
documents, papers, and records of the contractor which are directly pertinent to that
specific contract for the purpose of making audit, examination, excerpts, and
transcriptions.
11. Retention of all required records for three years after grantees or subgrantees make final
payments and all other pending matters are closed.
12. Compliance with all applicable standards, orders, or requirements issued under section
306 of the Clean Air Act (42 U.S.C. 1857 (h)), section 508 of the Clean Water Act (33
U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations
25
(40 CFR part 15). (Contracts, subcontracts, and subgrants of amounts in excess of
$100,000).
13. Mandatory standards and policies relating to energy efficiency which are contained in the
state energy conservation plan issued in compliance with the Energy Policy and
Conservation Act (Pub. L. 94A 163, 89 Stat. 871).
[53 FR 8068, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19642, Apr. 19, 1995]
B. Common Rules Regarding Contracting
1. All services, professional, or construction, paid in whole or in part with CDBG funds,
require the execution of a formal contract.
2. The use of CDBG dollars, regardless of the amount, for payment of any service under
contract in a grant, initiates the contracting requirements described. The total amount of the
contract will often indicate the proper documentation to be included in the contract.
3. All contracts should contain a clear, concise, and detailed description of the:
scope of work
total cost
duration or life of the contract
compliance requirements
reporting responsibilities
contract content paragraphs listed above
4. If proposals involving architectural/engineering professional services are evaluated with
respect to factors other than price, can the program participant document the basis for
negotiation of fair and reasonable compensation.
C. Acceptable Contract Cost Structures
All construction contract fees shall be based upon a lump sum or unit price. All professional
service contracts shall be based upon a lump sum or a cost-plus-fixed-fee. Cost plus a percentage
of cost and percentage of construction cost methods are prohibited.
D. Alternative Deductibles/Alternate Add-Ons In Construction Bidding
In an effort to remain flexible in the bidding process for construction activities, the grantee may
set in place alternative deductibles or alternate add-ons. These items must be clearly marked as
such and, in the event of bids received over budget, may be “deducted” from the scope of the
project, or in the event of bids received under budget, may be “added” to the scope of the project.
All alternative deductibles/additions must be assigned a number in order of preference to be
eliminated/added. Any elimination/additions of these items must follow that numerical guide
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(e.g., Item #2 may not be deducted/added prior to Item #1). No items may be eliminated/added
from a bid process if they were not initially indicated as an alternative deductible or alternate
add-on. Alternate deductibles should include, but not be limited to, items the grantee may be able
to complete on its own or items that would not have an adverse affect on the project if omitted.
E. Addendum Procedure
If changes or additions to the bid packet must be made prior to the bid deadline date, an
addendum must be executed. The addendum must spell out the change or addition and must be
distributed to all interested bidders. This action must not take place later than 72 hours prior to
the bid submission deadline. If this time period is not possible, the addendum may be distributed
and the deadline may be delayed exactly one week. All bidders obtaining bid documents must be
made aware of all addenda in order not to interrupt the procurement procedure.
F. Amendment Procedure
If, during the life or duration of any formal contract, the parties agree to a change in the design,
duration, cost, or any of the terms of the contract, a formal amendment may be executed. For this
amendment to be valid and recognized by CDBG, it must be in writing, signed, and attested by
both parties and attached to all original contract documents. The grantee may require review by
their attorney prior to implementing the process. Any changes or change orders that directly
affect the use of CDBG dollars, the scope of the project, or greatly changes the duration of the
contract should be reviewed prior to execution.
Reports should be prepared and submitted by each contractor whenever it is determined that any
change in the design, cost, or duration of the project is necessary.
G. Award of Contract
Awarding contracts using CDBG funds shall be completed in the same manner as if using local
funds. The required process for entering into contracts should be reviewed and used for CDBG
projects.
H. Federally Debarred Contractors
Before signing a contract with a proposed contractor, the grantee must ensure that the contractor
is not on the Federal listing of Contractors Unable to Perform Work Under a Federally
Sponsored Project at
http://portal.hud.gov/hudportal/HUD?src=/topics/limited_denials_of_participation. Click on
Limited Denial of Participation list & if nothing shows up for the company then they are not
debarred with HUD. In addition, must check the System for Award Management (SAM) at
www.sam.gov.
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I. Contractors Licensed To Do Business In Missouri
All professional service contracts and construction contracts paid for with CDBG funds must use
firms/businesses that are licensed to operate in the State of Missouri. No grant funds will be
released to pay businesses that do not hold this license. Check
https://bsd.sos.mo.gov/BusinessEntity/BESearch.aspx?SearchType=0 and search for the
company’s name which has to be exactly how they registered with the State.
J. Businesses In Good Standing With The Department of Labor
All licensed businesses must be in good standing with the Missouri State Department of Labor
office. State debar website http://labor.mo.gov/DLS/PrevailingWage/debarment_list.
K. Department Of Treasury’s Listing Of Approved Sureties
The bonding company used by the contractor to provide payment and performance bonds must
be listed with the Department of the Treasury's Listing of Approved Sureties. At the time the
contract is awarded check http://www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570_a-z.htm
to ensure that the Missouri is listed for the surety as being licensed in the state. Print off the
listing as compliance documentation for the file & ensure the date is included on the copy.
L. Internal Control
Proper internal control for each contractor may include a contract file that includes the following:
A signed contract and amendments or change orders;
A schedule of payments supported by:
– Copies of time sheets or payroll records;
– Copies of checks or transfer notifications; and
– Copies of invoices;
All project-related correspondence;
Property records (where appropriate);
Any notice of cancellation, termination, or suspension of the contract;
All field inspection reports and employee interviews; and
Other data as required by the recipient to properly administer the contract.
M. Engineer/Consultant’s Certificate of Completed Work
A copy of the Certificate for Acceptance, and Final Payment, signed by the project
engineer/consultant, must be obtained prior to closeout. This certificate must cover all work
included in the project (regardless of funding source), including grantee cash and in-kind. The
certificate must state that work has been completed in accordance with drawings and
specifications and is functioning properly with the recommendation for Final Payment.
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LABOR STANDARDS
Construction work that is financed in whole or in part with CDBG funds must adhere to certain
Federal labor standards requirements. Additional information can be found at
https://www.hudexchange.info/resources/documents/Module3_TrainingSlides.pdf.
A. Davis-Bacon Act
The Davis-Bacon Act (40 USC, Chapter 3, Section 276a-276a-5; and 29 CFR Parts 1, 3, 5, 6 and
7) is triggered when construction work over $2,000 is financed in whole or in part with CDBG
funds. It requires that workers receive no less than the prevailing wages being paid for similar
work in the same area. Davis-Bacon does not apply to the rehabilitation of residential
structures containing less than 8 units or force account labor (construction carried out by
employees of the grantee).
HUD’s Office of Labor Relations Letter No. LR 2009-01 Davis-Bacon applicability to
demolition work states demolition, by itself, is not necessarily considered to be construction,
alteration, or repair (i.e. activities to which Davis-Bacon requirements may apply). As a result,
Davis-Bacon wage requirements are not typically triggered by demolition work, alone. However,
if subsequent construction at the site is planned as part of the same contract or if subsequent
construction is contemplated as part of a future construction project, then the demolition work is
considered to be part of the overall construction project. In such cases, if the subsequent
construction work is subject to Davis-Bacon requirements, then the demolition world likewise be
covered by Davis-Bacon requirements. Additional information can be found at
http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14999.pdf.
B. Copeland Anti-Kickback Act
The Copeland Anti-Kickback Act (40 USC, Chapter 3, Section 276c and 18 USC, Part 1,
Chapter 41, Section 874; and 29 CFR Part 3) requires that workers be paid weekly, that
deductions workers’ pay be permissible, and that contractors maintain and submit weekly
payrolls.
C. Contract Work Hours and Safety Standards Act
The Contract Work Hours and Safety Standards Act (40 USC, Chapter 5, Sections 326-332; and
29 CFR Part 4, 5, 6 and 8; 29 CFR Part 70 to 240) applies to contracts over $100,000 and
requires that workers receive overtime compensation ( time and one-half pay) for hours they
have worked in excess of 40 hours in one week. Violations under this Act carry a liquidated
damages penalty ($10 per day per violation).
D. Section 3 of the Housing and Urban Development Act of 1968
Section 3 of the Housing and Urban Development Act of 1968, as amended requires the
provision of opportunities for training and employment that arise through HUD-financed projects
to lower-income residents of the project area. Also required is that contracts be awarded to
businesses that provide economic opportunities for low- and very low-income persons residing in
the area.
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E. Missouri Prevailing Wage Law
Missouri's Prevailing Wage Law establishes a minimum wage rate that must be paid to workers
on public works construction projects in Missouri, such as bridges, roads, and government
buildings. The prevailing wage rate differs by county and for different types of work.
The Prevailing Wage Law applies to all public works projects constructed by or on behalf of
state and local public bodies.
ACQUISITION AND RELOCATION
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA)
generally applies to projects involving acquisition, rehabilitation or demolition of real property.
In some cases, the use of CDBG funds in a project involving demolition or conversion of lower
income dwellings may also trigger another Federal law under Section 104 (d) of the Housing and
Community Development Act of 1974.
HUD issued CPD Notice 14-09 which provided guidance concerning the October 1, 2014
effective date of Moving Ahead for Progress in the 21st Century Act (MAP-21) that changed
payment limits and replacement housing payment eligibility criteria in the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA). The revised
regulations at 49 CFR part 24 are consistent with MAP-21, which other proposed changes
underway.
The following changes to the URA become effective on October 1, 2014.
Residential Relocation:
Length of occupancy requirement to receive Replacement Housing Payment for
homeowner occupants is reduced from 180 days to 90 days [42 U.S.C. 4623(a)(1) and 42
U.S.C. 4624(b)];
Maximum Replacement Housing Payment for displaced 90 day (formerly 180 day)
homeowner-occupant increased from$22,500 to $31,000 [42 U.S.C. 4623(a)(1)]; and
Maximum Replacement Housing Payment for displaced 90 day residential tenant
increased from $5,250 to $7,200 [42 U.S.C. 4624(a)].
Nonresidential Relocation:
Maximum Reestablishment Expense Payment increased from $10,000 to $25,000 [42
U.S.C.4622(a)(4)] and
Maximum Fixed Moving Expense Payment increased from$20,000 to $40,000 [42
U.S.C.4622(c)].
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STEP 5 - ADDRESS FINANCIAL AND ADMINISTRATIVE REQUIREMENTS
ADMINISTRATION & PLANNING
CDBG funds can be used for administrative and planning activities. Funds under these
categories are subject to the 20% statutory limitation.
The following are eligible administrative activities:
General management, oversight and coordination
o Providing local officials and citizens with information about the CDBG program;
o Preparing budgets and schedules;
o Preparing reports;
o Monitoring program activities
Fair Housing Activities;
Indirect costs; and
Submission of applications for Federal programs.
Eligible planning activities are the following:
Comprehensive plans;
Community development plans (i.e. Consolidated Plan);
Functional plans (i.e. land use, economic development, floodplain management,
transportation, historic preservation, etc.).
Other plans and studies (i.e. neighborhood plans, capital improvements, individual plans,
historic preservation studies, etc.).
Any costs and time charged must be documented through the appropriate means such as
invoices, receipts, time and attendance records, etc. Documentation shall be kept on file and will
be reviewed at financial monitoring.
Under this category, CDBG funds may not be used for the following activities:
Engineering, architectural and design costs related to a specific project; or
Other costs of implementing plans.
These costs may be eligible as part of an eligible project.
CALCULATING PLANNING AND ADMINISTRATION CAP
In accordance with 24 CFR 570 planning and administration costs are capped at 20% of the sum
of grant plus program income plus reallocated funds.
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Calculating the cap example:
Total grant amount $227,500
Program income & reallocated funds $2,500
Total: the basis for calculating the cap $230,000
Multiplied by 20 percent X 0.20
Maximum dollar level that may be charged $46,000
PUBLIC SERVICES
The total amount of CDBG funds expended for public services activities must not exceed 15% of
the yearly allocation of funds plus 15% of program income received within the program year.
According to 24 CFR 105(a)(8) allows the use of grant funds for public service activities,
including but not limited to:
Employment services (e.g. job training);
Crime prevention and public safety;
Child care;
Health services;
Substance abuse services (e.g. counseling and treatment);
Fair housing counseling;
Education programs;
Energy conservation;
Services for senior citizens;
Services for homeless persons;
Welfare services (excluding income payments);
Down payment assistance; and
Recreational services.
CDBG funds may be used to pay for labor, supplies, and material as well as to operate and/or
maintain the portion of a facility in which the public service and located. This includes the lease
of a facility, equipment and other property needed for the public service.
For the public service to be eligible, the service must be either 1) a new service; or 2) a
quantifiable increase (10%) in the level of an existing service be which has been provided by the
entity through state or local government funds in the 12 months preceding the submission of the
City of Jefferson’s Consolidated Plan Annual Action Plan to HUD.
32
Income payments by HUD regulations for entitlement communities have restrictions. Income
payments are payments to an individual or family, which are used to provide basic services such
as food, shelter (including payment for rent, mortgage and/or utilities) or clothing. Income
payments are not to exceed three consecutive months; and the payment are made directly to the
provider of such services on behalf of an individual or family. Political activities are considered
an ineligible activity.
TIMELY DISTRIBUTION OF FUNDS
CDBG funds are to be distributed in a timely fashion. Timeliness refers to how quickly funds
are able to be committed and expended. It is vital that every effort is made to quickly distribute
and use funds.
Timeliness is defined as the annual grant being obligated within 15 months of the City signing a
grant agreement with HUD.
If the City was to award funds to subgrantees, obligation means the date which the City officially
announces the selection of its awards to the subgrantee. Obligation could mean the following:
Contract;
Letter;
Press release;
News announcement; and/or
Public Notice.
Currently there are no timely regulatory requirements in either the statute or regulations. HUD
tracks expenditures through the Line of Credit Control System (LOCCS). Through this system
several reports can be created by HUD staff such as the Ratio of Unexpended Funds to Grant,
Ratio of Funds Expended in the Last 12 Months to Grant, Expenditure Report and National
Chart.
PROGRAM INCOME
Program income is the gross income received by the City of Jefferson which was directly
generated from the use of CDBG funds. Program income is treated as additional CDBG funds
subject to all requirements.
Examples of program income include:
Proceeds from the sale or lease of property purchased or improved with CDBG funds;
Funds collected through special assessments on properties not owned and occupied by
LMI households in order to recover the CDBG portion of a public improvement.
33
Program income does not include:
Any income received in a single year the City and its subgrantees, that does not exceed
$35,000; and
Amounts generated and kept by a nonprofit development organization under 105(a)(15).
Program income must be disbursed prior to the drawdown of additional funds from IDIS.
Therefore program income works on a last in first out scenario.
UNIFORM ADMINISTRATIVE REQUIREMENTS
In accordance with 24 CFR Part 85 the City of Jefferson must adhere to certain administrative
requirements. These requirements include OMB Circular A-87 “Cost Principles for State, Local
and Indian Tribal Governments”. This circular establishes principles and standards for
determining allowable costs under Federal grants.
Non-profits are required to comply with OMB Circular A-122 “Cost Principles for Non-Profit
Organizations”. This circular establishes principles for determining allowable costs under
grants, contracts and other agreements with nonprofit organizations.
In addition, local governments and nonprofit organizations are required to comply with OMB
Circular A-133 “Audits of Institutions of States, Local Governments and Nonprofit Institutions”.
For additional information on uniform administrative rules for Federal grants and cooperative
agreements visit http://www.hud.gov/offices/lead/library/lead/24_CFRPART_85.pdf
AUDIT REQUIREMENTS
The City of Jefferson’s fiscal year runs from November 1 through October 31. Each year since
1996 the City has been awarded the prestigious national Certificate of Achievement for
Excellence in Financial Reporting. In order to be awarded a Certificate of Achievement, the City
must publish an easily readable and efficiently organized CAFR whose contents conform to
program standards. The CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements.
The City currently grants out the CDBG funds to sub-recipients. The City of Jefferson has
measures in place to ensure that the sub-recipients are aware of federal expenditure thresholds of
$750,000, audit requirements, timeframes, and applicable OMB principals.
CITIZEN PARTICIPATION
The City shall follow its Citizen Participation Plan. Any changes to this plan shall be approved
by the City Council. The City shall hold public hearings at least two times per year and
encourage public participation during preparation of the five year Consolidated Plan, Annual
Action Plan and the Consolidated Annual Performance Evaluation Report (CAPER).
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RECORD RETENTION PERIOD
Under the uniform administrative requirements of the CDBG regulations, the City is required to
retain CDBG records for a period of not less than four years. The record retention period begins
from the date of submission of the CAPER in which the specific activity is reported on for the
final time rather than from the date of submission of the final expenditure report for the award.
To be consistent with Consolidated Plan regulations, which require that grantees maintain
information and records relating to the Plan and the use of funds under the programs covered by
the Consolidated Plan, record(s) must be maintained for a period of not less than five years.
INTERNAL CONTROLS
The CDBG program is administered by the Redevelopment and Grants Division within the
Planning and Protective Services Department. Other individuals and/or departments play a key
role in the day to day of the CDBG program such as the City Administrator, City Counselor,
Director of Department of Planning and Protective Services, Purchasing Agent, Chief
Accountant, and Housing Inspectors.
The Neighborhood Services Coordinator serves as the Director of the Redevelopment and Grants
Division. See Table 1 for Organizational Chart. This position is under general direction of the
Planning and Protective Services Director. The Neighborhood Services Coordinator plans,
organizes and oversees the programs, services and operations of the Community Development
Block Grant Program.
The Neighborhood Services Specialist and Grant Assistant are under the direct supervision of the
Neighborhood Services Coordinator. These person(s) are responsible for obtaining proper
documentation for the homeowner support programs, set up and management of the IDIS system
and performs a variety of technical tasks relative to assigned area of responsibility.
Senior Housing Inspector & Property Inspector assists with identifying code violations for the
Code Deficiency program. During the course of the program, if rehabilitation activities may
disturb lead based paint the Senior Housing Inspector will obtain a sample and complete a test to
determine if the sample contains lead based paint. Both individuals are EPA Lead Certified.
IDIS DRAWS
IDIS drawdowns will be completed at least quarterly, but most preferably monthly, for
expenditure of funds completed the prior month.
The following sequence is completed for preparation of a draw from HUD’s IDIS system:
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1. Each month the Neighborhood Services Specialist, in cooperation with the department’s
Administrative Assistant, prepares supporting documentation for the CDBG drawdown
using Springbrook software.
2. The Neighborhood Services Coordinator and the Director of Planning & Protective
Services reviews and approves the drawdown package.
3. The drawdown and supporting documentation is referred to the Finance Department for
review and approval.
4. Then the approved/signed RFF is returned to the department for drawdown completion
from IDIS.
5. An email is generated to the Chief Accountant, or his/her representative, with a copy of
the IDIS Voucher as proof of draw completion.
6. The Chief Accountant notifies via email when the IDIS Draw is approved and when
funds have been received.
EQUIPMENT MANAGEMENT AND DISPOSITION
The following items are suggested for management and disposition guidelines for equipment
purchased with CDBG funds.
Maintain property records which contain: property description, serial number or ID
number, funding source (grant number), title holder, acquisition date and cost, percentage
of Federal participation in original acquisition cost, location, use and condition or
property, disposition date, date or disposal and sales prices.
Take a physical inventory of equipment and reconcile results with property records every
two years
Establish a control system for adequately safeguarding property against loss, damage, and
theft.
Establish maintenance procedures for keeping property in good condition.
When selling equipment purchased with CDBG funds, proceeds from sale must be kept
as program income.
Establish proper sales procedures to ensure highest possible return.
Must follow HUD disposition instructions when equipment is no longer needed.
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STEP 6 - ENTER RESULTS INTO IDIS
Within IDIS, the Grantee/PJ Project ID field will be utilized to include our in-house project
numbers for each property assisted with CDBG funds. By utilizing the Grantee/PJ Project ID
field the City’s records will be able to correlate, document and associate exactly how CDBG
funds were spent.
The following is a listing of suggested project funding:
Code Deficiency = Yr-CD-01
Energy Efficiency = Yr-EE-01
Emergency Repair = Yr-ER-01
Down Payment = Yr-DP-01
Program files are kept for each individual applicant. Each file contains a checklist of items
required throughout each step of process. The files contain applications, income verifications,
Tier II Environmental Review, reports, correspondences, contracts, deeds, etc.
As part of the application process voluntary racial and ethnicity information is collected. The
information is then entered into IDIS by the time of the completion of the individual project.
For additional information regarding IDIS visit https://www.onecpd.info/resource/2825/idis-
training-modules-for-cdbg-entitlement-grantees/ .
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STEP 7 – REPORT AND MONITOR PROGRESS
CALENDAR OF EVENTS
The following is a copy of events that were due for Program Year 2015. The reports and plans
have the same required submission time frame to HUD year after year.
January
1 Beginning of Program Year 15
31 SF – 425 Federal Financial Report Due for October 1 – December 31
February
15 Hold Public Hearing for CAPER PY 14 (Requires 15 day comment period)
March
7 Last day of CAPER comment period
31 Section 3 Annual Report (HUD 60002) Due
31 CAPER due to HUD
31 Davis-Bacon Report (HUD 4710) for November 1, 2014 – March 31, 2014
31 100% of PY 14 Funds Obligated
April
10 MSP & NSP Quarterly Report Due for January 1 – March 31
30 SF – 425 Federal Financial Report Due for January 1 – March 31
May
TBD
June
TBD Hold Public Hearing for Consolidated Plan/Action Plan Kick-Off
July
10 MSP & NSP Quarterly Report Due April 1 – June 30
31 SF – 425 Federal Financial Report Due for April 1 – June 30
August
TBD
September
15 Hold Public Hearing for 2016 Annual Action Plan (30 Day Comment Period)
30 Last Day of Reporting Period for MBE/WBE Contracts over $10,000
October
10 MSP & NSP Quarterly Report Due July 1 – September 30
15 Last Day for Comment for Annual Action Plan
22 Present Annual Action Plan to Public Works & Planning Committee
30 Annual Action Plan 30 Day Public Comment Period Ends
31 SF – 425 Federal Financial Report Due for July 1 – September 30
31 Davis-Bacon Report (HUD 4710) for April 1 – October 31
November
2 Council Approval by Resolution of Consolidated Plan and/or Annual Action Plan
15 Consolidated Plan/Action Plan Due to HUD
15 MBE/WBE Contract/Sub Contract Report (HUD 2516) Due 10/1/14 – 09/30/15
December
31 End of Program Year 15
31 90% of Program Year 15 Funds Obligated
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MONITORING OF SUBRECIPIENTS
The Redevelopment and Grants staff shall monitor all Subrecipients to ensure program
compliance. Staff will utilize both “desk monitoring” and “internal/on-site” monitoring to assess
the quality of program performance over the duration of the agreement or contract.
Monitoring of Subrecipients shall concentrate on program, financial and regulatory performance
of the Subrecipients. In conducting a monitoring review, program staff will primarily rely on
information obtained from the subrecipient’s performance reports, records, audits, allowed costs,
review of financial reports, eligibility and number of beneficiaries served, compliance with
federal regulations and City program requirements. Staff may also consider relevant information
pertaining to a recipient’s performance gained from other sources including litigation, citizen
comments and other information provided by or concerning the subrecipient.
A subrecipient’s failure to perform under the terms of the agreement with the City of Jefferson
and/or maintain records in the prescribed manner may result in a finding that the subrecipient has
failed to meet the applicable requirement. If the staff finds that a subrecipient has failed to meet
the requirements the following steps will be taken:
1. Issue a letter of warning advising the subrecipient of the deficiency and putting the
subrecipient on notice that additional action will be taken if the deficiency is not
corrected or is repeated;
2. Recommend, or request the subrecipient to submit proposals for corrective actions,
including the correction or removal of the causes of the deficiency.
If the subrecipient fails to undertake appropriate corrective or remedial actions which resolve the
deficiency to the satisfaction of the program staff, the staff may take one or more of the
following actions. Such actions shall be designed to prevent a continuation of the performance
deficiency; mitigate, to the fullest extent possible, the adverse effects or consequences of the
deficiency; and prevent a recurrence of the deficiency. Prior to a reduction, withdrawal or
adjustment of a grant or other appropriate action, taken to pursuant to 1, 2 or 3 below, the
recipient shall be notified of such action and given an opportunity within a prescribed time
period for an informal consultation.
These actions may include but are not limited to:
1. Advise the subrecipient in writing that additional assurances are required;
2. Advise the subrecipient to suspend disbursement of funds for the deficient activity;
3. Advise the subrecipient to reimburse the City of Jefferson program account in any
amounts improperly expended.
The City of Jefferson shall have the same rights as the Secretary of HUD as to other remedies for
noncompliance per 24 CFR 570.912 and 24 CFR 570.913
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CHAPTER 2: HOMEOWNER SUPPORT PROGRAMS
The Homeowner Support Programs includes Code Deficiency, Energy Efficiency, Emergency
Assistance Repairs and Down Payment Assistance. The purpose of the program is to assist low-
to-moderate income homeowners with repairs to meet health and safety standards; to provide the
opportunity to realize measureable energy savings; assist with emergency repairs and/or provide
down payment assistance to first time home buyers.
SECTION 1: HOMEOWNER SUPPORT PROGRAMS
Code Deficiency: Homeowners who live in single family residence within Jefferson City limits
that need exterior repairs and that do not meet city code. Maximum assistance per home is
$5,000 no interest loan. Loans will be secured by a deed of trust. If the owner remains in the
property for five years after the repairs are complete, the loan will be forgiven.
Energy Efficiency: Homeowners who live in single family residence within Jefferson City
limits. Maximum assistance per home is $5,000 no interest loan. Loans will be secured by a deed
of trust. If the owner remains in the property for five years after the repairs are complete, the
loan will be forgiven.
Emergency Assistance Repairs: Emergency assistance must be necessary to safeguard against
imminent danger to human life, health or safety. Homeowners must live in single family
residence within Jefferson City limits. Maximum assistance per home is $5,000 no interest loan.
Loans will be secured by a deed of trust. If the owner remains in the property for five years after
the repairs are complete, the loan will be forgiven.
Eligibility & Assistance Amounts
Assistance is provided on a “first come, first served” basis to eligible applicants, a limited
number will be processed as funding permits. Maximum assistance is $5,000. If costs exceed this
amount, the owner is responsible for the difference. Additional funds up to $500 may be
available for lead hazard mitigation and/or if the property is on the National Register or within a
Historic District which may require using “like” materials from the time era of the construction.
1. The applicant households must be at or below 80% of the median family income as
defined by HUD to participate in the Homeowner Support Programs at the time their
application is processed.
2. The property must be a single family residence located within the City Limits and not
within a designated floodplain area or on land known to be the site of previous dumping
of toxic or hazardous wastes. Mobile homes are not eligible.
3. The property must be owner-occupied and have clear title. If the property is owned by
more than one individual, all owners must sign required legal documents relating to the
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rehabilitation project, including, but not limited to, the deed of trust and rehabilitation
contract, even if they do not reside in the property to be rehabilitated
4. For properties constructed before 1978, the City’s approach to Lead Based Paint is to do
no harm. Testing may be conducted on surfaces to be disturbed, unless presuming the
surfaces contain lead-based paint. Surfaces disturbed during rehabilitation work will be
repaired. Safe work practices shall be used on all surfaces.
5. The applicant and/or the structure for which the application is being made cannot
previously have received a City of Jefferson Homeowner Support Program loan or grant
for owner occupied housing rehabilitation within the past 5 years. Participation in the
Emergency Assistance or Down Payment Assistance program does not exclude the
homeowner from the Code Deficiency or Energy Efficiency program.
6. The applicant must sign a Promissory Note and Deed of Trust for the loan amount.
7. Payment of real-estate taxes must be current and not have any delinquent taxes, liens,
assessments or other fees due to the City.
8. The applicant shall have established trash service.
9. If at any point during the steps the applicant does not provide required documentation
within requested time frames, he/she shall be notified of inactive status by mail or email.
10. Income qualification is good for six months at which time applicant must re-certify.
11. Projects must be complete in one (1) year or the homeowner will have to reapply for the
program.
12. Should a project be determined infeasible for rehabilitation due to a lack of funding or
not meeting the eligibility criteria of any of the Homeowner Support Programs, the City
reserves the right to reject the owner’s application.
Income
The income of a household includes the gross annual income of all persons 18 or older in the
home who are expected to reside in the dwelling at least six months out of the year. The
applicant’s family includes the applicant and any other person or persons related by blood,
adoption, legal guardianship, and/or marriage that share the same dwelling unit. If more than one
family resides in a unit or where unrelated individuals are paying rent to the owner occupant,
than each family or unrelated individual must qualify as being income eligible. If there are
multiple owners of the property, the applicant is the owner-occupant and his/her family. The
annual income of each household is established by projecting income for 12 months from the
time applicant’s name is reached on the waiting list and includes all sources of income included
as Annual Income in the American Community Survey definition of income. Applicants are
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asked for proof of each source of income listed on their application. This may be accomplished
through signing an authorization for third-party verification, by submitting a certified copy of
their latest tax information, or by other approved methods acceptable to HUD and the City’s
Planning & Protective Services staff.
Repayment
No repayment of any kind is required as long as the recipient continues to own and occupy the
property for 5 years after assistance. In the event that the property receiving assistance is no
longer owned or occupied by the recipient within the 5 years, the balance shall be paid in full.
Eligible Costs
Funds are to be used for improvements deemed necessary by Planning & Protective Services
staff, including, but not limited to, one or more of the following:
1. Work necessary to meet code standards for the City of Jefferson and HUD.
2. Building permits and related fees.
3. Addressing lead-based paint hazards identified by a risk assessor.
4. HVAC equipment repair or replacement.
5. Energy efficiency improvements.
6. Structural repairs.
7. Emergency health and safety projects.
Note: All materials, fixtures, equipment, or landscaping shall be of a quality customarily used in
the neighborhoods for properties of the same general type as the property to be assisted.
Ineligible Costs
Except as otherwise provided in this section, funds shall not provide funding for adding rooms,
creating finished living space from unfinished areas (i.e., garages and basements), exterior
improvements such as fencing and landscaping, replacement of items determined to be in good
condition by Planning & Protective Services staff, and purchase and installation of appliances,
such as refrigerators, stoves, window air conditioning units.
Work Write Up
For the Code Deficiency and/or Emergency Assistance Program the City’s Housing Inspector
staff shall prepare a deficiency list and work write-up in accordance with the City’s Code
Standards, to document the work to be assisted with grant and loan funds.
For the Energy Efficiency Program a Department of Natural Resources Certified Energy Auditor
will conduct an energy audit of the home. The Energy Auditor will complete a report identifying
items or projects to complete in order to make the property more energy efficient. Based on this
report a work write-up will be determined.
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Change Orders
The Planning & Protective Services staff, with the consent of the property owner, may approve
change orders to the work write-up if the amount of the contract is not increased more than
$1,000. Changes in excess of $1,000 must be approved by the Neighborhood Services
Coordinator, with the consent of the property owner. All change orders shall be prepared by the
Planning & Protective Services staff and shall be signed by the property owner, or the designated
representative of the property owner, a representative of the City Planning & Protective Services,
and the contractor.
Contractors and Bid Process
The Planning & Protective Services staff will develop a qualified contractor list containing the
names of all contractors meeting the eligibility requirements. Minority and female owned
contractors will be encouraged to participate.
In order to qualify for the list, contractors must meet the following requirements:
1. Must fill out the contractor application form.
2. Must carry Worker’s Compensation Insurance for all employees as required by the State
of Missouri.
3. Must carry liability insurance at the minimum amount of $100,000.
4. If undertaking lead abatement activities, the general contractor must have a current
supervisor’s license and abatement contractor’s license from the Missouri Department of
Health.
5. Either have completed an EPA approved Lead Renovator training or hire an individual or
company who is EPA Lead Certified before undertaking any job disturbing lead painted
surfaces.
6. All contractors must be properly licensed by the city.
7. Must be able to supply the tools and materials necessary to complete each job.
8. References may be requested for at least three jobs completed.
A. Non-Performing Contractors
Contractors who consistently exhibit poor workmanship or do not complete contract
requirements will be eliminated from the contractor list. Contractors who do not complete
their contracts within an allotted time period will not be eligible to submit bids for additional
projects until they are in compliance within the appropriate contract time period. Contractors
that do not honor the warranty provisions of their contract will be eliminated from the
contractor list.
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B. Contractor Selection
1. Contractors will be asked to submit an itemized bid containing a firm amount for each
item on the work write-up for all housing repair programs. Homeowners are responsible
for obtaining at least 3 bids within 30 days. With written permission of the homeowners,
the City may mail bids to all contractors on the list.
2. A contractor is limited to three active contracts at a time through the Homeowner
Programs. In all cases, the city reserves the right to reject any and all bids and reserves
the right to eliminate bid items to meet the maximum loan amounts.
3. Once bids are submitted and obtained, the scope of work is not to be added to in order to
make the bid equal $5,000. The scope of work may only be changed if during the course
of the project the contractor uncovers additional work that is required for the original
scope to be of quality.
C. Owner-Contractors
Owner-contractor projects are not allowed in the City’s Homeowner programs.
D. Time Frames for Contracts
The contract period for Homeowner Program projects shall not exceed 90 days, except as
approved by Neighborhood Services Coordinator, and then shall not exceed 180 days without
penalty to the contractor. The contract period shall begin when Planning & Protective
Services staff provide contractor with the Notice to Proceed.
Application Procedures
Step 1
When applications are received the “Application Response Letter” is sent to notify confirmation
of receipt of application. Create file, assign project number and include copy of correspondence
letter.
If/when funds are available applicants are contacted within 30 days to schedule an interview
appointment to verify income and qualifications.
Income guidelines are updated annually. Income limits may be accessed at
http://www.huduser.org/portal/datasets/il.html. Each applicant file shall include print out of
annual Income Limits Summary.
The applicant(s) must provide the following for all adults 18+ years and shall be included in file
for compliance:
1. Social Security Card
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2. Picture I.D.
3. Proof of income - use CPD Income Eligibility Calculator which utilizes American Census
Survey worksheet. Must provide copy of past two paystubs and previous year Federal
tax returns for all 18+ year olds in household. If on SS or SSI the determination letter will
work. Pension/benefit letters may also be provided. See worksheet for additional
incomes that require documentation.
4. If there is an adult 18+ in the household who claims no income, the Certification of Zero
Income form must be filled out and signed by the individual.
5. Verify age of home through GIS System County Info for the purposes of determining if
Lead Based Paint is a concern.
6. Verify ownership via GIS (copy of Deed of Trust) County info.
7. Verify current trash service with City of Jefferson’s Solid Waste Provider.
8. Applicant(s) must sign and date both Eligibility Review Worksheet and CPD Income
Eligibility Calculator forms, copy to file.
9. For properties constructed prior to 1978, provide applicant copy of Lead Based Paint
pamphlet and have Homeowner initial receipt.
10. Sign both forms and turn in to Neighborhood Services Coordinator for approval
signature.
11. Send Approval/Denial letter to applicant.
Step 2
Code Deficiency and Emergency Assistance programs request inspection from City Inspector. If
Code violations are found, continue with Step 3. If no Code violations are indicated, send
applicant denial letter (copy letter to file) based on findings. Planning & Protective Services
staff shall close file.
Energy Efficiency program will contract with a qualified Auditor to conduct energy audits and
assist homeowners in identifying cost-effective, energy saving measures. The Auditor will
provide a report that includes a list of energy saving measures in order of importance.
Step 3
Completion of the Tier II must be obtained prior to proceeding with the project. Upon receipt of
inspection report listing code violations or completion of energy audit report, a Tier II
Environmental Report including completing FEMA floodplain map to ensure that property is not
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located within the 100 year floodplain, Historic Commission Assessment, SHPO Section 106
Project Information form and Site Assessment form. Once all compliance documents have been
compiled submit Tier II to Neighborhood Services Coordinator for approval. For properties
constructed prior to 1978 ensure that results of the Lead Based Paint test(s) are provided to the
homeowner.
Step 4
1. Send Request for Agreement to the legal department.
2. Using the Inspector’s or Auditor’s report, fill out the bid form.
3. Give 4 copies to applicant. Applicant must obtain a minimum of 3 bids. Also include lien
waivers for subcontractors and suppliers. Must be given to contractor with bid sheet.
Contractor shall be secured within 30 days or applicant will be placed on “inactive” list.
If circumstances exist such as time of year (i.e. winter) additional time shall be allowed.
NOTE: Contractors must be licensed by the City of Jefferson and provide a certificate of
insurance. If project involves disturbance of lead based paint a Lead Certified contractor
must be used. A lead test prior to rehab, lead safe practices and a lead test post rehab are
required.
4. Contractor must be cleared through the following websites. Print off documentation and
include in file.
a. State’s website to check and see if they are registered to do business in the State.
For this website you will have to have to know exactly how they registered their
company. https://bsd.sos.mo.gov/BusinessEntity/BESearch.aspx?SearchType=0
NOTE: Small time contractor who use their name for business purposes, appear
not to be required to file with the Secretary of State as a business. For situations
like this it may be acceptable to proceed if the contractor has a City Business
License, working history with City (and/or references), and review the Better
Business Bureau to determine a history of complaints filed against the contractor.
b. HUD’s debar website. Click on Limited Denial of Participation list & if nothing
shows up for the company they are not debarred with HUD.
http://portal.hud.gov/hudportal/HUD?src=/topics/limited_denials_of_participation
c. Missouri Department of Labor Contractor Debarment List
http://labor.mo.gov/DLS/PrevailingWage/debarment_list
d. System for Award Management (SAM)
https://www.sam.gov
5. Type up Tabulation of Bids to include within project file.
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6. Submit bids, tabulation, debarment website information to Neighborhood Service
Coordinator for award of bid and contract issuance. The Neighborhood Service
Coordinator will confer with the Senior Housing Inspector to determine if bids are fair
and equal.
7. When the contractor has been chosen, the Applicant(s) must come in to sign the
following:
Agreement
Rehabilitation Contract (between homeowner & contractor)
Notice to Proceed
Promissory Note (must be notarized)
W-9 form (submit signed original W-9 & Vendor Request Form to
Administrative Assistant)
8. When work is complete, the City Inspector will return to site to approve/deny
completion. When approved, the Inspector will sign the Certificate of Completion and
submit to the Neighborhood Service Coordinator for final signature.
9. The applicant(s) must come in to sign final documents:
a. Certificate of Completion
b. Deed of Trust
10. Submit check request. Be sure to have check returned to you. Include: Bid summary and
bids, Invoice, Certificate of Completion, and Notice to Proceed. Make three copies.
Retain one for project files, submit one for Finance Department, Neighborhood Services
Coordinator receives one for IDIS drawdown.
11. Contact applicant when check is received. Must come in to endorse check over to
contractor.
12. Contact contractor when check is endorsed. Must come in to sign Lien Waiver. Must
bring lien waiver from subcontractors and suppliers, if any.
13. Record Deed of Trust and Promissory Note. When returned, make 3 copies; original to
law, copies to file, homeowner, and IDIS files. Close applicant file, update active/close
spreadsheet and lien spreadsheet.
14. Grant Assistant(s) shall check lien spreadsheet periodically to determine if deed of
release is required to be recorded after the completion of the 5 year requirement has been
fulfilled.
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SECTION 2: DOWN PAYMENT ASSISTANCE
Down Payment Assistance: First-time homebuyers who agree to acquire and reside in eligible
residential properties in Jefferson City limits may apply for down payment assistance prior to
closing. Maximum assistance per home is $5,000 no interest loan. Additional $500 may be
available to assist with lead hazard reduction. Anything over $500 will be the responsibility of
the buyer or seller. Loans will be secured by a promissory note and deed of trust. If the owner
remains in the property for five years the loan will be forgiven.
Eligibility & Assistance Amounts
Assistance is provided on a “first come, first served” basis to eligible applicants, a limited
number will be processed as funding permits. Maximum assistance is $5,000. If costs exceed this
amount, the owner is responsible for the difference.
1. The applicant households must be at or below 80% of the median family income as
defined by HUD to participate in the Homeowner Support Programs at the time their
application is processed.
2. The property must be a single family residence located within the City Limits and not
within a designated floodplain area or on land known to be the site of previous dumping
of toxic or hazardous wastes. Mobile homes are not eligible.
3. The property must be maintained as an owner-occupied residence If the property is
owned by more than one individual, all owners must sign required legal documents
relating to the purchase.
4. The Assistance shall be $5,000, zero interest loan. An additional grant amount of $500 is
also available to offset costs for lead hazard reduction should this become an obstacle to
use of home ownership assistance funds.
5. Applicants must be first time homebuyers (an individual and his/her partner/spouse who
have not owned a home in the past three years), displaced homemakers, or single parents.
A displaced homemaker is defined as an adult who has not worked full time, full year in
the labor force for a number of years, but during such years worked primarily to care for
his/her home and family, and who is unemployed and experiencing difficulty in obtaining
or upgrading employment.
6. The applicant must sign a Promissory Note and Deed of Trust for amount of total
assistance.
7. The property to be purchased must be an existing single-family dwelling. The buyer must
own and reside in the home as his/her primary residence for a minimum affordability
period of 5 years. If the property is sold or rented within the initial 5 year period, the
assistance shall be repaid. The buyer must maintain trash service at all times in
accordance with City Ordinance.
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8. The buyer is required to obtain a home inspection from a certified home inspection firm
prior to being approved for assistance. The printed report must include, at a minimum,
inspection of the structural, mechanical, electrical, and plumbing components of the
dwelling and an inspection for the presence of termites.
9. The City’s assistance is to be used only for closing costs and down payment assistance.
10. Applications must be received 30 days prior to the scheduled closing.
11. Participation in a City-approved pre-purchase homebuyer’s class must be documented
prior to assistance being provided. Internet courses and/or videotapes for individuals
viewing cannot be substituted for class attendance.
12. The homebuyer shall authorize the City of Jefferson to collect and receive any
information needed from the lender or other sources necessary to ensure eligibility and
funding amount. Buyers shall authorize the City to be provided the final HUD Settlement
Statement and Warranty Deed 24 hours in advance of closing and shall be provided the
Buyer’s signed copy of both documents immediately after closing.
13. Should a home or applicant be determined infeasible for Down Payment Assistance due
to a lack of funding or not meeting the eligibility criteria, the City reserves the right to
reject the application.
Income
The income of a household includes the gross annual income of all persons 18 or older in the
home who are expected to reside in the dwelling at least six months out of the year. The
applicant’s family includes the applicant and any other person or persons related by blood,
adoption, legal guardianship, and/or marriage that share the same dwelling unit. If more than one
family resides in a unit or where unrelated individuals are paying rent to the owner occupant,
than each family or unrelated individual must qualify as being income eligible. If there are
multiple owners of the property, the applicant is the owner-occupant and his/her family. The
annual income of each household is established by projecting income for 12 months from the
time applicant’s name is reached on the waiting list and includes all sources of income included
as Annual Income in the American Community Survey definition of income. Applicants are
asked for proof of each source of income listed on their application. This may be accomplished
through signing an authorization for third-party verification, by submitting a certified copy of
their latest tax information, or by other approved methods acceptable to HUD and the City’s
Planning & Protective Services staff.
Repayment
No repayment of any kind is required as long as the recipient continues to own and occupy the
property for 5 years after assistance. In the event that the property receiving assistance is no
longer owned or occupied by the recipient within the 5 years, the balance shall be paid in full.
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Lenders Procedure
Families must be approved by a participating lending institution. The lender will be the primary
contact with the City of Jefferson and will forward copies of required documents to staff of the
Planning & Protective Services. Lenders must be willing to provide a copy of the Buyer’s
preliminary HUD settlement statement at least 10 days prior to closing and provide final HUD
settlement statement on the day of closing.
Property Standards
Upon determining that an applicant meets eligibility criteria, a request for inspection will be
submitted to the program’s inspector, who will have up to two (2) weeks to schedule an
inspection of the property. This inspection must be completed prior to closing to determine if the
property meets requirements of the City’s Property Maintenance Code. Any defects found must
be corrected prior to the release of homeownership assistance funds. A re-inspection of the
subject property will be completed to ensure compliance with this requirement. Any code
compliant issue that the inspector determines poses a significant health and/or safety risk must be
corrected.
Houses built prior to January 1, 1978, must have an inspection to determine if deteriorated paint
exists. Should the amount of deteriorated paint be greater than HUD’s de minimis standards (10
square feet of exterior surface, one square foot of interior surface, or 10% of any building
component, i.e. window and door trim), samples will be sent to a lab for analysis. If the paint is
determined to contain lead above HUD’s level of concern, paint stabilization of deteriorated
surfaces is required before assistance can be provided. A grant of $500 is available to
participants for lead paint stabilization work. The stabilization must be completed by an
individual or company trained in safe work practices. No assistance will be provided until the
house successfully passes a clearance test performed by a certified lead risk assessor. The City
will cover the cost of two clearance tests. The cost of subsequent tests will be the responsibility
of the buyer or seller.
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SECTION 3:
Grant Cancellation
An approved application may need to be canceled because the applicant has requested
cancellation or is unwilling or unable to participate in the Homeowner program, or for other
reasons. To cancel an approved application, the Planning & Protective Services shall prepare a
letter outlining the reasons for canceling the assistance and distribute the letter to the applicant. A
copy of this letter will be maintained in the project file.
Appeal & Grievance Procedures
1. Applicants who are not in agreement with a decision reached by the Planning & Protective
Services staff, may appeal said decision by filing a written appeal to the Housing
Rehabilitation Appeals Board (hereinafter called the “Board”), within thirty (30) days of
receiving notice of the decision. The Board shall consist of three (3) members: the Director
of the Department of Planning and Protective Services, the Director of Public Works and the
Director of Finance. Appeals will be reviewed that relate to application approval/denial,
Grant cancellation, determination of assistance amount, determination of scope of work,
approval of change orders, and selection of contractor.
2. The Board shall hold a hearing after due notice to the appellant within thirty (30) days of
filing said notice of appeal. The Board may affirm, reverse or modify the decision and notify
the appellant in writing of its decision and the reasons thereof. After the hearing, the Board’s
decision shall be the final procedure of the committee. The applicant may appeal the Board’s
final decision to the City Administrator. The City Administrator, with the advice of the City
Attorney, may reverse or uphold the decision of the Board.
3. Any person denied assistance by the Planning & Protective Services staff who does not take
exception with the findings, but who believes there are circumstances which, if known and
considered, would establish extreme hardship and justify variance from the eligibility
standards established herein may file an appeal with the Neighborhood Services Coordinator
by filing within thirty (30) days of receiving notification of the Planning & Protective
Services staff decision. The Neighborhood Services Coordinator shall, depending upon the
nature of the exception, forward such request to the Director of Planning & Protective
Services Director whose decision shall be final if the appeal involves an administrative
request. Where the change involves a substantial change in a program rule, the request will
be forwarded by the Department Director to the City Administrator, as is appropriate. Should
the appeal require Council action, the City Administrator shall forward such appeal to the
Council for action. The Planning & Protective Services staff shall provide assistance to any
person filing an appeal.
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4. Grievances: The city will not consider any grievance involving rehabilitation work in cases
where:
A. Staff will assist program participants with grievances involving rehabilitation work
within the 1 year warranty period. Assistance will be in the form of access to information
regarding warranty, scope of work, and contractor responsibilities. Contractors that do
not honor legitimate warranty claims will be removed from the eligible contractor list
B. The certificate of acceptance was signed more than one year before the grievance process
is initiated; and the aggrieved party has not documented efforts to have the contractor
return to resolve the matter within the one-year guarantee period after the certificate of
acceptance was signed.
5. Right to Representation: A person has a right to be represented by legal counsel or other
representative in connection with his or her appeal, but solely at the person’s own expense.
6. Right to Files by Persons Making Appeals: The City will permit a person to inspect and
copy all materials pertinent to her or his appeal, except materials that are classified as
confidential. The City may, however, impose reasonable conditions on the person’s right to
inspect which are consistent with applicable laws, such as the cost of copying materials.
7. Scope of Review of Appeal: In deciding an appeal from the Board’s decision, the City
Administrator and/or the City Council shall consider all pertinent justification and other
material submitted by the person, and all other available information that is needed to ensure
a fair and full determination of the appeal.
8. Determination and Notification after Appeal: Within thirty (30) days after the receipt of all
information submitted by a person in support of an appeal, the Board shall make a written
determination on the appeal, including an explanation of the basis on which the decision was
made, and furnish the person a copy. The City official(s) conducting the appeal
determination shall not have been directly involved in the action appealed. If the relief
requested is not granted, upon additional request, the City shall advise the person of her or
his right to seek Department of Housing and Urban Development review of the City’s written
determination of the appeal. A person has 45 days after she or he receives the City’s written
determination of their appeal to file a review appeal with the Department of Housing and
Urban Development
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CHAPTER 3: DEMOLITION
City of Jefferson has a City-wide Demolition Program pursuant to 24 CFR 570.201 (d). The
purpose of this program is to eliminate structures posing an imminent threat to the health and
safety to neighborhoods.
The program addresses any dwelling, building, structure, or property that is unfit for human
habitation or for commercial, industrial or business use and not in compliance with applicable
codes, has been vacant for one year or more, and/or constitutes an endangerment to the public
health or safety as a result of unsanitary or unsafe conditions.
Eligibility
1. Structure must be infeasible to rehabilitate to a HQS code or standard. To meet this
criterion, the costs to rehabilitate the structure must exceed $15,000, or $15 per square
foot.
2. All structures must be vacant for a minimum of one year.
3. Property must have clear title, including not having any delinquent taxes, liens,
assessments, or other fees due to the City.
4. The final use of the property must be consistent with the City’s Consolidated Plan and
Neighborhood Plans.
5. The structure must meet the City’s unsafe building ordinance or nuisance ordinance
criteria.
Funding Terms
Loans are provided at 0% interest for the cost of demolition. The demolition loan will be fully
forgiven if:
The property is redeveloped with affordable housing within 3 years as defined by the City
of Jefferson and HUD; or
Property is located within the 100 year floodplain or floodway which will require deed
restriction for future development in accordance with City floodplain ordinance.
Loans are secured by a Deed of Trust. Terms of loan are determined by amount of assistance. If
the owner retains the property for the applicable loan period then the loan will be forgiven. The
following table lists out the loan periods.
Amount of Assistance Loan Period
Under $15,000 5 years
$15,000 - $40,000 10 years
Over $40,000 15 years
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Demolition Procedure
All federal, state, and local laws and regulations shall be followed by contractors during the
demolition and disposal of hazardous building materials.
1. Owner submits completed application to the Planning & Protective Services Department.
2. Rehabilitation feasibility analysis performed on structure. Staff also verifies
documentation of the building being vacant for at least one year as defined by Section
104(d) of the Housing and Community Development Act.
3. The City completes the environmental review of the proposed demolition site. The
review may take up to 90 days. All Conditions for Approval identified must be adhered to
and documented for compliance.
4. Work-Write Up and Procurement of Contractor
a. City staff develops a work write-up and secures bids from qualified contractors.
b. Applicants may secure demolition bids from qualified contractors, provided that
all City and HUD contractor requirements are met before the bid is awarded.
c. Contract shall not be awarded until Authority to Use Grant Funds is obtained
from HUD.
5. Agreement for Demolition
a. City staff prepares the Agreement containing the terms and conditions of the
funding assistance. This agreement shall be between the City and property owner
and shall include the conditions of the closing and loan documents, and a timeline
for completion.
b. Non-Profits must execute a sub-recipient agreement.
c. Notice to proceed is provided to contractor/owner.
8. Construction Inspection Completion and Draw of Funds
a. City staff inspects the completed work. Issues Certificate of Completion.
b. Contractor provides support documentation to City staff for draw of funds
including but not limited to: invoices, lien waivers, and disposal tickets.
c. Deed of Trust is filed for amount of assistance, if applicable.
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TABLE 1 ORGANIZATIONAL CHART
DEPARTM ENT OF PLANNING AND PROTECTIV E SERVICES · FY2015
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RESOLUTION SUMMARY
RESOLUTION NO: RS2014 -30
SPONSOR: Councilman Scrivner
SUBJECT: Adopting Policies and Procedures for the 2015 Community Development
Block Grant Program
DATE INTRODUCED: January 5, 2015
DEPARTMENT DIRECTOR() ~~
CITY ADMINISTRATOR:_7~~=------------:::::::::..._ _ _:::::;,"""'"""'::------~ Staff Recommendation: Approve.
Summary: This resolution adopts and updates policies and procedures for the
administration of the Community Development Block Grant ("CDBG") program, as
referenced in Article IV, Chapter 25 of the City Code. The previous procedures manual,
adopted for 2014 was adopted by RS2013-35.
Origin of Request: Department of Planning and Protective Services I
Redevelopment and Grants Division
Department Responsible: Department of Planning & Protective Services
Person Responsible: Janice McMillan I Jayme Abbott
Background Information: The City of Jefferson became a designated recipient of the
Entitlement Community Development Block Grant in 2004. The City receives an annual
grant allocation from the Department of Housing and Urban Development that is
allocated according to a five-year consolidated plan and annual action plan.
The CDBG program is administered in accordance with federal regulations contained in
Title 24 CFR Part 570, and while the Policy and Procedure Manual is not a replacement
for applicable federal law, it does provide a format to inform clients and guide staff on
proper administrative procedures to follow.
The Policy and Procedure Manual is not a replacement for applicable federal law, but
does provide guidelines on federal compliance requirements, financial and
administrative procedures, eligibility and application requirements for homeowner
support and demolition programs.
Fiscal Information: No fiscal impact.