Addressing Special Federal And State Requirements
The grantee certified at the time of project application that they will comply with all federal and state requirements. Please refer to Exhibits I in Step 2 for sample documents.
Intergovernmental Agreement for Multi-Jurisdictional Projects
If two or more municipalities and/or counties are proposing to carry out a "multi-jurisdictional" project, it is required that one of the participating municipalities or counties be authorized by the other participating municipalities and counties to act in a representative capacity for all of the participants. This designated entity must assume overall responsibility for ensuring that the entire project is carried out in accordance with all program requirements. This overall responsibility and any related individual responsibilities must be specified in a legally binding cooperation agreement between the designated entity and all other directly participating municipalities and counties. (A sample of an intergovernmental agreement is contained in Exhibit I-G.)
Each participating jurisdiction, to meet the requirements of Title 42, Chapter 69, 5306(d)(5)(A-D) of the Act, must comply with: Displacement, Fair Housing, Citizen Participation, Civil Rights and Section 504 (described in the Civil Rights Section of this manual) and regulations pertaining to special assessments.
Memorandum of Understanding
A memorandum of understanding (MOU) is a document describing a bilateral or multilateral agreement between two or more parties. It expresses a convergence of will between the parties, indicating an intended common line of action. (A sample of a memorandum of understanding is contained in Exhibit I-H)
OEDIT Revolving Loan Funds Only
Sub-grantee Agreements
For economic development projects, responsibility of program operations can be assigned to a non-profit organization through a locally negotiated agreement; however, the grantee is ultimately responsible for compliance and is liable for the non-performance of sub-grantees. The agreement must explicitly define and delegate responsibilities. The grantee's contract with OED should be attached or incorporated by reference in the agreement so that all parties are aware of provisions and applicable regulations.
The items to be covered in the agreement, at a minimum, are:
- The method for the submission of payment requests and disbursement of grant revenues received;
- The name of the responsible administrator. It is advisable that this person be someone other than the staff person(s) who will directly administer the program to ensure adequate checks and balances;
- The name of the Certifying Officer for environmental review;
- Which entity is to receive program income and funds returned by the businesses after the expiration of the grant contract;
- How the audit will be conducted and what funds will pay the cost of the audit;
- What type of notice and opportunity for comment will be given to the local governments other than the grantee where an assisted business is located;
- Which entity will be responsible for affirmatively furthering fair housing;
- The services to be provided by each entity including accounting, preparation of quarterly reports, preparation and execution of updated disclosure forms, office space, supplies, clerical support; and
- For multi-jurisdictional projects, explanation of the relationship between the sub-grantee and participating governments.
Additionally, the non-profit corporation's Articles of Incorporation, along with its resolution authorizing specific individuals to take specific actions on behalf of the non-profit corporation must be available for review. The subgrantee agreement should be amended/revised as necessary and as applicable State contract terms change
Local Determinations
(Does not typically apply to RLF's)
Additionally, Federal CDBG law and regulations require certain local determinations in the case of certain activities as a condition for eligibility of such activities. Specifically, cases in which local determinations are required and Must Be Documented include:
- Preparation Of Applications For Other Federal Programs. This activity is eligible if the grantee "determines that such activities are NECESSARY OR APPROPRIATE to achieve its community development objectives."
- Relocation Payments And Assistance Not Required By Or Above Those Required By The Uniform Act (unless such payments or assistance are made pursuant to State or local law). Such activities are eligible "only upon the basis of a written determination that such payments are Appropriate."
- Loans For Refinancing Existing Indebtedness Secured By A Property Rehabilitated With CDBG Funds. Such loans are eligible "if such financing is Necessary Or Appropriate to achieve the (grantee's) community development objectives."
- Interim Repair Of Public Facilities And Provision Of Special Public Services. Such activities may be undertaken on an interim basis in areas exhibiting objectively determinable signs of physical deterioration where "the grantee has determined that Immediate Action Is Necessary to arrest deterioration and those permanent improvements will be carried out as soon as is practicable."
- Activities Carried Out By Subrecipients When Such Activities Are Not Otherwise Eligible Activities. An example is construction of new housing which is generally an ineligible activity. Such activities are eligible when the grantee "determines that such activities are Necessary Or Appropriate to achieve its community development objectives."
The grantee's documentation regarding the determination should include the basis for the determination.