This section focuses on a grantee’s responsibilities for pre-award submissions that are generally due to HUD prior to a CDBG-DR grantee signing a grant agreement. These requirements include the Financial Management and Grant Compliance Certification Checklist and the Implementation Plan.
signing a grant
the grantee has
section 312 of
the Robert T.
42 U.S.C. 5155,
to ensure timely
these funds, and
to detect and
fraud, and abuse
The grantee’s Financial Management and Grant Compliance Certification Requirements (described in Section III.A.1 of the Consolidated Notice) are made up of the following components:
Proficient financial management controls,
Duplication of benefits,
Comprehensive disaster recovery website, and
Procedures to detect and prevent fraud, waste, and abuse.
within 60 days
of the effective
date of the
Notice, or with
its action plan,
grant, if a
is awarded a
HUD will rely on
response to the
If a CDBG-DR grantee is awarded a subsequent CDBG-DR grant, and it has been more than three years since the executed grant agreement for the original CDBG-DR grant or a subsequent grant is equal to or greater than ten times the amount of the original CDBG-DR grant, grantees must update and resubmit the documentation required by paragraph III.A.1.a. with the completed Certification Checklist to enable the Secretary to certify that the grantee has in place proficient financial controls and procurement processes, and adequate procedures for proper grant management.
HUD will continue to monitor the grantee’s submissions and updates made to policies and procedures during the normal course of business. The grantee must notify HUD of any substantial changes made to these submissions. The applicable Certification Checklists can be found on HUD.gov. Note, there are two different checklists – one for states and one for units of local government.
affirm to the
provided in the
there is a
The grantee will
check the box
for each of the
indicate to HUD
the grantee will
list each file
title of the
the page numbers
review. In this
also included a
as needed, to
(e.g., copies of
describe how the
for a HUD
program in a
or policies for
how a grantee
After the documentation section, the grantee will complete Part A through Part F, and the certifying official will sign the Certification Checklist. Then, the grantee will submit the completed checklist to HUD within 60 days of the applicability date of the Allocation Announcement Notice or with the submission of the action plan, whichever is earlier. The grantee will work with its grant manager to arrange submission of the Certification Checklist and the required documentation.
• Submit its most recent single audit and consolidated annual financial report, and
• Complete the required Certification Checklist.
• Determine and adopt the grantee’s procurement processes and standards as required in the Consolidated Notice, and
• Uphold the principles of full and open competition.
For states, the grantee must adopt one of the procurement processes permitted in the notice:
Adopted 2 CFR 200.318 through 200.327; or
Follows state procurement policies and procedures and establishes requirements for procurement policies and procedures for local governments and subrecipients based on full and open competition pursuant to 24 CFR 570.489(g), and the requirements applicable to the state, its local governments, and subrecipients include evaluation of the cost or price of the product or service; or
Adopted 2 CFR 200.317, meaning that it will follow its own state procurement policies and procedures and evaluate the cost or price of the product or service, but impose 2 CFR 200.318 through 200.327 on its subgrantees and subrecipients.
adopt 2 CFR
2 CFR 200.327.
Grantees are also reminded that the requirements for professional services at 2 CFR 200.459 apply and costs for contracted professional and consultant services are eligible for grant funding, provided they are reasonable and allowable.
Necessary: Is the cost for an eligible activity? Is there a need for the assistance? Is it for a permissible recovery purpose?
Reasonable: Would a prudent person consider the cost to be payable by the award?
Allowable: Is the cost necessary to the operation? Is the cost eligible?
costs, a number
of factors are
adequacy of the
estimate of time
to define the
time and effort
Additionally, technical assistance resources for procurement are available to grantees either through HUD staff or through technical assistance providers engaged by HUD or a grantee. HUD hosted a webinar on April 26, 2017 discussing updates and clarifications to procurement requirements.
To meet this requirement, a grantee must have policies and procedures that:
Determine unmet needs before committing CDBG-DR funds,
Establish repayment agreements for any duplicative assistance for the same purpose,
Monitor for compliance and including the following language in all agreements, “Warning: Any person who knowingly makes a false claim or statement to HUD or causes another to do so may be subject to civil or criminal penalties under 18 U.S.C. 2, 287, 1001 and 31 U.S.C. 3729.’’,
Use the best, most recent data from relevant sources (i.e., FEMA, SBA, Insurers) to prevent duplication of benefits, and
Reflect the retreatment of loans for declined and cancelled loans, when applicable .
Section 312, a
person or entity
to the extent
that the person
or entity has a
that has not
been fully met.
which FEMA has
must ensure that
In developing DOB policies and procedures, grantees are directed to the 2019 DOB Notice (84 FR 28836), as may be amended. HUD hosted two webinars discussing duplication of benefits and updated requirements.
CDBG-DR grantees must apply the Necessary and Reasonable cost principles and audit requirements for Federal awards in subpart E of 2 CFR 200. Under the Cost Principles, a cost assigned to a grant
‘‘is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost’’ (2 CFR 200.404).
Grantees must consider factors described at 2 CFR 200.404(a) through (e) when determining which types and amounts of cost items are necessary and reasonable. Based on these factors, HUD generally presumes that if a cost has been paid by another source, charging it to the Federal award violates the necessary and reasonable standard unless grant requirements permit reimbursement.
To meet this requirement, a grantee must indicate how they will:
Track and document expenditures (grantee and subrecipients) each month,
Account for and manage program income,
Reprogram funds in a timely manner when there are delays, and
Project all expenditures.
The projections of a grantee’s expenditures enable HUD, the public, and the grantee to track proposed versus actual performance. The action plan should be amended for any subsequent changes, updates, or revision of the projections. To assist CDBG-DR grantees with their projections regarding the expenditure of funds over the life of the award and outcomes associated with planned activities, grantees can use the template on the HUD Exchange.
To meet this requirement, a grantee must:
Have a separate website for CDBG-DR activities;
Post the require information in an accessible form;
Take steps to ensure meaningful access to Limited English Proficiency persons, members of protected classes, vulnerable populations, and individuals in underserved communities; and
Indicate the frequency of website updates (minimum of quarterly).
Information that must be posted to a grantee’s website are:
Information that must be posted to a grantee’s website are:
Action Plan Amendments
Program Policies and Procedures
DRGR Action Plans
Quarterly Performance Reports
Summary of procured contracts
To meet this requirement, a grantee must:
Verify the accuracy of applicant information,
Adopt a procedure to evaluate the capacity of potential subrecipients,
Adopt a monitoring plan for subrecipients, contractors and other program participants,
Demonstrate that it has or will hire an internal auditor for programmatic and financial oversight,
Provide a written standard of conduct and conflict-of-interest policy
Establish a procedure for investigating and taking action when fraud occurs within the grantee’s activities and/or programs.
CDBG-DR grantees must monitor subrecipients, contractors, and other program participants. HUD hosted two webinars to assist grantees in understanding the requirements for managing and monitoring subrecipients, learning record keeping requirements, and gaining effective strategies to avoid common mistakes.
The grantee’s Implementation Plan describes the grantee’s capacity to carry out the recovery and how it will address any capacity gaps. The grantee’s Implementation Plan is made up of the following components:
Internal and interagency coordination
Plan with its
action plan for
award, a grantee
will submit a
Plan after three
years of its
initial grant or
if the amount of
grant is equal
to or greater
than ten times
the amount of
For example, a grantee receives a CDBG-DR grant for disasters occurring in 2021, 2022, 2024, and then 2025. The grantee would submit its initial Implementation Plan for the 2021 disaster with its action plan. The grantee would not submit an Implementation Plan for its 2022 or 2024 award but would need to update or resubmit its 2021 submission when it submits its 2025 disaster recovery action plan.
If the 2022 or 2024 award is ten times the amount of the 2021 award, the grantee would need to update or resubmit its 2021 submission when it submits its 2022 disaster recovery action plan.
Assess your capacity;
Identify staffing positions, partners, and vendors;
Determine your approach to meeting capacity needs; and
Execute agreements with partners;
When a grantee is identifying staffing positions, grantees are encouraged to:
Indicate which personnel or unit is responsible for tasks, and their contact information when available;
Document positions for the purpose of case management for housing, infrastructure, and economic revitalization programs; procurements and contracts; and compliance with section 3, fair housing, the environment, and the elements within the certification submission.
Describe how duties and responsibilities have checks and balances in place to separate duties (to the extent practicable) so that no one individual has complete authority over certain tasks. For example, financial transaction duties should be separate. Grantees should submit work-flow diagrams for major program areas (including financial management) and position descriptions that demonstrate the chain of command for each position.