GENERAL:

The Amercian Recovery and Reinvestment Act of 2009 (ARRA, "Recovery Act") was signed into law on February 17, 2009. The Recovery Act awards $1 billion in CDBG Recovery (CDBG-R) funds to be distributed to cities, counties, insural area and states, of which $10 million has been reserved by HUD for its administrative costs and $10 million of which will be awarded to indian tribes. Recipients of the remaining $980 million of CDBG-R funds will be the approximately 1,200 jurisdictions that received CDBG funding in Fiscal Year 2008. The State of Rhode Island has been allocated $1,399,061 in CDBG-R funds to distribute to projects/activities in the State's 33 non-entitlement municipalities which do not receive an allocation directly from HUD. The cities of Cranston, East Providence, Pawtucket, Providence, Warwick and Woonsocket have received their own allocation and have prepared their own distribution plan (Substantial Amendment) for such.

In order to access these funds ($1,399,061), the State must complete and submit to HUD its plan (Substantial Amendment to its FY'2008 Consolidated Plan, CDBG Action Plan) for the distribution of these resources by June 29, 2009. The plan/Substantial Amendment will be posted on this webpage for no less than 7 calendar days for public comment. Citizens must be provided adequate opportunity to comment on proposed plan/activities prior to submittal. The plan must be activity-specific and activities funded must meet specified compliance requirements. Unless otherwise stated, statutory and regulatory provisions of the CDBG program apply to the use of these funds.

The following requirements apply to the use of CDBG-R funding:

• HUD has urged recipients to use funds to support development costs associated with infrastructure activities that provide basic services to residents or activities that promote energy efficiency and conservation through rehabilitation or retrofitting of existing buildings
• HUD's guidance states: Funding available under the Recovery Act has clear purposes - to stimulate the economy through measures that modernize the Nation’s infrastructure, improve energy efficiency, and expand educational opportunities and access to health care.
• State must give priority to projects that can award contracts based on bids in as timely a manner as possible. Any funds not expended by 9/30/12 will be recaptured by HUD.
• A final determination on Davis Bacon applicability is pending. For application purposes, it is assumed DBRA applies on every project funded with CDBG-R resources. This includes projects typically exempt from Davis Bacon such as residential rehabilitation below the CDBG unit threshold and those for which investment was limited to acquisition/soft costs.
• HUD encourages grantees to use CDBG-R funds for discrete, stand-alone activities whenever possible.
• All iron, steel and manufactured goods used in construction, alteration, repair or maintenance of a public building/work project assisted by the Recovery Act must be produced in the United States.
• All projects/applications/applicants for funding must demonstrate the ability to (i) delivery programmatic results; (ii) achieve economic stimulus by optimizing economic activity and the number of jobs created or saved in relation to the Federal dollar obligated; (iii) achieve long-term public benefits by, for example, investing in technological advances in science and health to increase economic efficiency and improve qualify of life; investing in transportation, environmental protection and other infrastructure that will provide long-term economic benefits; fostering energy independence; or improving educational quality; or (iv) satisfy the Recovery Act's transparency and accountability objectives.

For a proposal to be considered for CDBG-R funds, the following information must be detailed for each activity.

1. activity name, activity description, CDBG-R dollar amount budgeted, eligibility category, national objective citation, additional Recovery Act funds for the activity received from other programs, and total activity budget.
2. a written description of how the use of CDBG-R funds for the activity will maximize job creation and economic benefit in relation to the CDBG-R funds obligated, and will address the Recovery Act, by:
   (1) Preserving and creating jobs and promoting economic recovery;
   (2) Assisting those most impacted by the recession;
   (3) Providing investment needed to increase economic efficiency;
   (4) Investing in transportation, environmental protection, or other infrastructure that will provide long-term economic benefits;
   (5) Minimizing or avoiding reductions in essential services; or
   (6) Fostering energy independence.
3. the number of full- and part-time jobs estimated to be created and retained by the activity, which will include permanent, construction and temporary jobs.
4. a description of activities that will be carried out with CDBG-R funds to promote energy conservation, smart growth, green building techniques or reduced pollution emissions.
5. Timeline for the implementation of this activity.
   

 

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