US Dept. of Housing and Urban Development CDBG-R Closeout Procedures

Presenter Stanley Gimont, Director, Office of Block Grant Assistance

CDBG-R Closeout Overview CDBG-R Expenditure Deadline Status of CDBG-R Expenditures Criteria for Closing out Entitlement/States CDBG-R Grants CDBG-R Closeout Submission Requirements HUD Review/Closeout Procedures Recordkeeping Requirements

CDBG-R Expenditure Deadline Authorized under the American Recovery and Reinvestment and Act of 2009 (ARRA) Pursuant to the May 4, 2009, Federal Register Notice on the CDBG-R program, all funds must be expended by September 30, 2012 or they will be returned to the US Treasury. Final draw down request must be submitted in LOCCS before 8:00pm EST on September 28, 2012.

Status of CDBG-R Expenditures 91.18% drawn down nationally as of 06/11/ (of 1167) grantees are 100% drawn down 16 cities and 6 counties less than 50% drawn - are you one of them? 5 grantees are less than 10% drawn – 1 at $0 9/30/12 deadline to expend all funds (under contract is not good enough) – 102 days left

CDBG-R EXPENDITURES as of 06/11/12 Type of GranteeNumber of Grantees Cumulative Drawdown Percentage Number of Grantees with $0 Drawn Number of Grantees less than 50% drawn Metropolitan Cities % 116 Urban Counties % 06 States % 00 Insular Areas % 00 Nonentitlement Hawaii Counties % 00

Criteria for Closing out Both HUD and the Grantee must make the necessary reviews and audits to ensure that statutory and regulatory requirements have been met prior to closing a CDBG-R grant. Closeout instructions issued 02/13/12 can be accessed at: administration/hudclips/notices/cpdhttp://portal.hud.gov/hudportal/HUD?src=/program_offices/ administration/hudclips/notices/cpd

Criteria for Closing out Entitlement CDBG-R Grants Grant may be closed when all of the following have been met pursuant to 24 CFR : Recipient has completed all activities and expended funds received by Sept 30, 2012; Confirm that the 10% planning and administration and 15% public services caps are not exceeded. Not less than 70% of funds benefit LMI; Complied with grant agreement and applicable laws, including program income. Any program income generated before and after closeout will be treated as program income to the regular CDBG program Grantees should not proceed with grant closeouts until national objectives have been met.

Criteria for Closing out State CDBG-R Grants Grant may be closed when all of the following have been met pursuant to Section 104(e) of the (HCDA) of 1974 and Subpart I of CDBG regulation: The State has disbursed all CDBG-R funds to UGLGs, Recipients have completed all activities and expended funds received by Sept 30, 2012 and performed satisfactorily, Confirmed that the combined (State & UGLGs) do not exceed 10% planning and admin cap and the 15% public services cap. Not less than 70% funds benefit LMI, Audit covers all funds and no open monitoring and audit findings, Complied with grant agreement and applicable laws, including use of program income. Any program income generated before and after closeout will be treated as program income to the regular CDBG program

Submission Requirements For CDBG-R Close out 24 CFR (b) Entitlements and Section 104 (e)(2) for states Required documentation must be submitted to the HUD Field Office: FederalFederalReporting.gov – Final Report Only Final Financial Report Form 425 (for Entitlement/Insular/Hawaii) Grant Closeout Certification CDBG-R Closeout Checklist Grant Closeout Agreement (Sign and return to HUD) CDBG-R report cannot be final until: CDBG-R activities are physically complete and project status is “100% complete”, All FTE jobs, created or retained with Recovery funds are reported, All CDBG-R funds are expended or if there are unspent funds in LOCCS, then indicate in the “Quarterly Project Description” that no more money will be spent and the report is Final, All CDBG-R activities have been entered into IDIS and complied with all program requirements

Submission Requirements For CDBG-R Close out, con’t HUD expects all CDBG-R grants to be ready for grant closeout no later than March 31, 2013 Refer to the CPD Notice for additional guidance

HUD Review/Closeout Procedures HUD will review and verify all submitted documents. Original copies should go to Field Offices. The Field Office prepares a closeout agreement signed by the CPD Director and forwards it to the Fort Worth Accounting Center.

Record Keeping Requirements 24 CFR (a)(16) Entitlement and 24 CFR (d) States 4 years from closeout for Entitlements 3 years from closeout for States

CDBG-R Closeout Questions