What Documents Will Be Required to Justify Proposed Projects?

Last Updated 8/30/2017

Application

1. What documents will be required to justify proposed projects?

A completed 2015 Flood CDBG-DR housing or non-housing application with supporting documentation will be required to justify proposed projects.

1. Is there an application deadline?

For the Statewide housing and non-housing applications the deadline has been extended isFriday, November 30, 2017 at 5:00 p.m. (Updated 8/30/2017)

1. Can CDBG-DR funds be combined with other funds to complete a project?

Yes, other funds can be used, but HUD CDBG-DR rules and regulations will be applied to the entire project. The project would also have to be CDBG-DR eligible.

1. Are pre-agreement costs eligible and can we be reimbursed for pre-award costs?

Pre-agreement costs are eligible for reimbursement so long as all applicable CDBG regulations(i.e. environmental, procurement, labor, URA, etc.) are met and incurred on or after the incident date of the covered disaster and are tied to the proposed project(s) to be funded.

Awarded applicants may incur costs for CDBG Disaster Recovery Program activities before the establishment of a formal grant relationship and to charge the pre-agreement costs to the grant, provided that the activities are eligible and undertaken in accordance with the requirements of 24 CFR Part 570.489, 24 CFR Part 58 and 2 CFR Part 200.

Costs for expenses incurred prior to environmental clearance for activities that are not environmentally exempt are not eligible for reimbursement.

1. Does the project hinged on whether the city is an entitlement or non-entitlement entity? (added 8/17/2017)

The entitlement or non-entitlement entity classifications do NOT apply to our CDBG-DR application.

Only counties, cities, and public housing authorities located in counties that received DR-4223 and DR-4245 disaster declarations are eligible to apply.

1. In the non-housing project application, should the project schedule add up to 24 months? What is consider an “Extended Activity”? (added 8/17/2017)

The project schedule will not add up to 24 months. There are activities that overlap each other such as engineering design and the environmental review. The “Extended Activity” in the project schedule is any activity that would extend the project past 24 months. One example of an extended activity would be if the project requires U.S. Army Corps of Engineers permit. If an extended activity is identified, an explanation is required.

1. What non-housing activities are eligible? (added 8/17/2017)

Non-housing activities that are eligible are water facilities, sewer facilities, street improvements, neighborhood facilities, flood & drainage projects, fire protection, public utilities, senior centers, clearance demolition, FEMA match, and other infrastructure activities that restore property that had been damaged by the eligible disaster event.

1. Are hazard mitigation projects out of a hazard mitigation plan eligible? (added 8/17/2017)

This will depend on if the proposed project is rebuilding for damages or mitigating dangers from the eligible disaster event.

As stated in the Federal Register (LINK Page 39693): "Preparedness and Mitigation. The Appropriations Act states that funds shall be used for recovering from a Presidentially declared major disaster and all assisted activities must respond to the impacts of the declared disaster. HUD strongly encourages grantees to incorporate preparedness and mitigation measures into the aforementioned rebuilding activities, which help to ensure that communities recover to be safer and stronger than prior to the disaster. Incorporation of these measures also reduces costs in recovering from future disasters. Mitigation measures that are not incorporated into those rebuilding activities must be a necessary expense related to disaster relief, long-term recovery, and restoration of infrastructure, housing, or economic revitalization that responds to the eligible disaster. Furthermore, the costs associated with these measures may not prevent the grantee from meeting unmet needs."

1. Our community has been impacted multiple times, and the project we were planning on has been further impacted. How do we apply? (added 8/30/2017)

To be eligible for the 2015 funds, the projectmust have had an impact from the 2015 events. If the budget estimate now exceeds the CDBG-DR maximum amount available, if possible, develop the project into phases. However, each phase must stand on its own, meet a HUD National Objective, and provide a benefit.

Documenting Beneficiaries for Non-Housing Applicants

1. What specific LMISD Data is to be used? Is the data provided by Texas Department of Agriculture (TDA) and used for the 2017/2018 CD Fund applications sufficient?

The 2016 LMISD data will be used for the 2015 Flood CDBG-DR Application. The data provided by TDA and used for the 2017/2018 CD Fund applications will be sufficient.

1. Will approved TDA surveys be accepted for LMI data? If so, is the 5-year period acceptable?

GLO-CDR has adopted the TDA survey methodology. GLO-CDR will accept surveys approved by TDA if the survey questionnaires were completed no more than five years prior to the application deadline or the actual date of submittal of the application. HUD has updated the income limits for 2017. Please use the 2017 survey questionnaire.

1. Will the Extrapolation method for Block Group LMI data be acceptable when identifying project area and LMI data?

We will accept this method. However, it must be replicable and all supporting documentation must be provided.

1. How do we demonstrate that at least 60% of the residents of a block group will benefit from the activity? We would need to know where every occupied residence is located within the block group and how many people live in each house; however, we don’t have that type of data.

The engineer and grant administrator (if applicable) should assist with determining the service area based on the proposed project. A survey of the area may be necessary to determine the beneficiaries.

1. If an activity only benefits a portion of a block, but that block group has an LMI that is 60% or greater, do we still need to demonstrate that at least 60% of the residents in the entire block group will benefit?

Yes, the applicant still needs to demonstrate that 60% block group will benefit.

1. Should we provide map of the census geographic area (Census Track, Block Group, County, City)? (added 8/17/2017)

Yes, the map should identify the specific project location as it relates to the census geographic area. The map should clearly show the project service area and the census geographic area.

Housing Application

1. What do I consider into the budget for a housing unit?

The applicant must consider the cost to deliver a home that includes the cost to demolish the home, and if applicable,costs such as elevation, accessibility, sewer, and septic hook-ups.

1. What is consider a project in the housing application? How many activities may we apply for it to be consider a project? (8/30/2017)

A "project" is defined as a discrete combination of: 1) entity (i.e., city, county, or public housing authority); 2) activity (e.g., single family homeowner assistance rehabilitation/reconstruction/new construction, public housing rehabilitation/reconstruction/new construction, buyout program, etc.); 3) beneficiary population; and 4) national objective.For example, a project is an applicant shall rehab or reconstruct “X” number of low-to-moderate income single family homes.

Non-housing State Competition Scoring Criteria

1. If a community is not listed on Appendix D does this mean they are not eligible? Or, if the community is not listed on Appendix D, but is within the presidentiallydeclared disaster region, will they be eligible but theirFEMA Rate per Capita will be $0.00?

The community located in a county that received the DR-4223 and/or DR-4245 Presidential disaster declaration is eligible. If the community is not listed on Appendix D, but is within the presidentially declared disaster region, the FEMA PA per capita would be $0.00.

1. Where does the per capita damage amount come from?(added 8/17/2017)

The per capita damage amount is calculated using the FEMA Project Amount and Population. The 2015 Action Plan Amendment 1, outlines the methodology used to calculate per capita damage. The FEMA Project Amount is available in the 2015 FloodsAction Plan, Amendment 1, Appendix D, "DR-4223" and/or "DR-4245"Column, and the population is from the 2016 LMISD Spreadsheet. The Amendment 1 and the 2016 LMISD spreadsheet are located on the 2015 Floods Application page.

1. Where does the Low-to-Moderate Percentage come from?(added 8/17/2017)

The Low-to-Moderate Percentage is from the Non-housing Project Housing Application, Table 1 (LMI % column, pg. 11). The percentage is based on the project service area, total beneficiaries and total low/mod beneficiaries. This will be verified by GLO-CDR. Please review the “Non-housing Documenting Beneficiaries” section on the 2015 Application page.

Procurement

1. What is the proposed procurement methodology for grant administration, engineering, and environmental service providers?

GLO-CDR has adopted 2 CFR 200.318-200.326 as the procurement requirements for funds awarded under the 2015 and 2016 CDBG-DR allocations. Please refer to for additional procurement guidance provided by GLO-CDR. (

1. Is there a pre-approved vendor list that we can use?

No, vendors must be procured by the city or county using federal standards in 2 CFR 200.318-200.326.

1. How do we define the scope of work (SOW) for our vendors?

GLO-CDR has provided a scope of work that can be utilized with your vendor procurement documents. The scope of works for grant administration and engineering services are located on TexasRebuilds.org. (

1. Do service providers respond to GLO-CDR or the specific community? Email indicates communities are to complete procurement using GLO's template SOW, but the SOW only references assisting the GLO, not the community.

These exhibits are provided only as an example. They would need to be updated to reflect the circumstances of each community.

1. Should our vendor procurement include pre-application to construction complete activities?

Yes, procurement should include services for the entire project(s).

1. With whom are the vendor contract agreements?

The City or County will contract with vendors (engineers, grant administrators, environmental provider, and construction contractor).

1. Is there a contract format?

Yes, GLO-CDR has provided contract templates. The contract templates are located on TexasRebuilds.org (

1. Does GLO have any issues when communities are doing procurement of professional services to accomplish the publishing/emails and submission of proposals for both CDBG and FEMA Hazard Mitigation Grant Program at the same time?

There is no specific prohibition on the solicitation of goods and services so long as the RFP clearly identifies the goods and services being solicited.

The party awarded a contract to develop procurement or solicitation documents or processes should understand the requirements of 2 CFR 200.319(a) which state: All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Therefore, any party that is awarded a contract to develop a solicitation, statement of work, or other procurement document or process, may not bid on any solicitation that results from the contract.

Any costs associated with the procurement of services to develop or draft solicitation specifications, requirements, statements of work, invitations for bids, requests for proposals, or requests for qualifications are not reimbursable by the program. The costs of any solicitation, contract, or services during the pre-application period are at the applicant’s expense.

1. What type of proof will be needed regarding contract oversight procedures? A letter from the community?

Oversight and documented proof must correspond with the contract deliverables (i.e. how are problems managed, how are timelines managed, etc.). This will be based on the experience and partnership of the subrecipient and GA. A letter from the community would be insufficient. Please note: regardless of the services provided by a GA, the subrecipient remains accountable for the administration and monitoring/oversight of funds.

1. Do we need an ordinance or resolution about the community's standard of conduct addressing conflicts of interest? When does this need to be passed if not already on the books?

Policies and procedures must address conflict of interest per 2 CFR requirements (ref: §200.318(c)(1)(2)General procurement standards). Whether an ordinance or resolution is necessary is based on the local community. GLO-CDR would suggest SOPs be updated prior to the issuance of the first procurement activity.

1. Is having a geographic preference good or bad?

Geographic preference is prohibited per federal requirements (ref: §200.319(b)). Typically, this is contrary to state, municipal and/or local code which sometimes incentivizes local vendor preference, however, given the federal requirements, geographic preference will be prohibited.

1. What if only 1 bid is received? Will communities be covered as long as it is an open, public solicitation?

SeeHUD’s Quick Guide to Cost and Price Analysis provides guidance on cost reasonableness and cost/price analysis (

Additionally, notification and authorization is required when the solicitation results in a non-competitive or sole-source procurements. Once notified, our response will include a review of the particular circumstances and determine what additional efforts are necessary before proceeding to award any contract resulting from a non-competitive or sole-source procurement. An open, public solicitation does not cover a community nor is it the end of the procurement process.

1. Is there a specific number of bidders the community must solicit?

No specific number; the only requirement is that the solicitation be a free and open competition (ref: §200.319).

1. Are there guidelines on how to perform a cost analysis that must be followed?

The HUD’s Quick Guide to Cost and Price Analysis provides guidance on cost reasonableness and cost/price analysis. Cost analysis is the evaluation of the separate elements (e.g., labor, materials, etc.) that make up a contractor's total cost proposal or price (for both new contracts and modifications) to determine if they are allowable, directed related to the requirement and ultimately, reasonable.

1. Must profit be negotiated for contracts less than $50,000? Must profit be negotiated for construction contracts?

§200.323(b) states that profit must be negotiated as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. The HUD’s Quick Guide to Cost and Price Analysis provides guidance on negotiation of profit. (

1. Is there a specific number of days bids/RFQ's must be posted for services? Nothing has been specified.

There is no standard identified in 2 CFR 200 regarding the specific number of days a solicitation must be posted. The number of days is determined by the local community.

Implementation

1. How long will it take to obtain a contract?

After applications are received, reviewed, and approved for funding, it will be approximately 90 to 120 days for a contract to be executed.

1. What are our major deliverables?

GLO-CDR will provide checklists and contracts identifying the major milestones and payments associated with them.

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