Welcome and Overview
Each Subrecipient will be assigned a Grant
Project Coordinator (GPC) to act as their point
of contact for their CDBG/HOPWA Award
CDBG Public Service – Ron/Mike
CDBG Improvements – Chris/Sam
CDBG Housing – Jameela
CDBG Economic Development – Ron/Mike
CDBG CNOG - Ron/Mike
We have several open positions, GPCs may
Resources –
◦ Regulations:
Resources –
◦ Hud Technical Assistance
Resources –
◦ City of Providence Website
Funding Sources:
◦ Community Development Block Grant:
◦ Housing for Persons with Aids: $831,644
Funding Sources:
◦ Community Development Block Grant:
◦ Housing for Persons with Aids: $831,644
CDBG Grants by Activity Type
(Parks, Sidewalks,
Public Services
(Youth Programs,
Basic Needs,
Centers, etc)
Consolidated Neighborhood Opportunity Grants
by Category
Public Services
Eligible Populations under CDBG & HOPWA
50% of AMI ->
80% of AMI ->
Income Limits for CDBG are updated
Annually, Subrecipients are responsible for
ensuring they use the current income limit!
Limits can be found online at:
Scroll Down
Click on RI
Contracts will be signed ONLY when the office
has received & reviewed:
◦ Updated Scope of Work
◦ Updated Budget
◦ Procurement Plan
◦ Permits and Licenses (Where applicable)
◦ Section 504 Handicap Accessibility Questionnaire
◦ Audited Financial Statements
◦ Copy of Applicable Insurance Documents
Contracts will be signed ONLY when the
Subrecipient has attended:
Annual Program Workshop
Annual Fiscal Workshop
One on One Contracting Session, &
Any other trainings throughout the year.
Contracts will be signed ONLY when the City
has conducted:
◦ An Environmental Review (for all projects, including
Public Service)
◦ An onsite inspection (for Construction, Acquisition,
& Improvement Projects ONLY)
Failure to comply with any of the these
requirements may result in forfeiture of
Funding provided to Subrecipient.
Contracts bind the City and the Subrecipient
for CDBG or HOPWA funds.
Contracts can ONLY be revised upon written
authorization from the City.
Compliance with the Program Manual is a
requirement of the Contract.
Subrecipients shall NOT expend any funds
under the contract, prior to the contract
signing or after the contract end date.
Expenditures must be in conformance with
the APPROVED budget and meet
reasonableness standards, etc.
Any costs under CDBG/HOPWA must be in
direct support of the funded activity.
Ellen Cynar, MS, MPH
Healthy Communities Office
November 2013
“The City of Providence has made a
commitment to improve health outcomes for
city residents and is implementing a broad
array of strategies to address issues such as
nutrition, food insecurity, access to quality
food, addiction, and more.”
Source: Community Development Program Funding Application
“Community Development-funded programs should
be aligned with the goals of the Healthy
Communities Initiative when relevant and
Organizations administering food or nutrition
programs should:
Align their food service programs with 2010 Dietary
Guidelines for Americans (DGA).
b) Display at least one USDA “My Plate” poster at every
location where food is served.
Food programs should not offer sugar-sweetened
Source: Community Development Program Funding Application
“Community Development-funded programs should
be aligned with the goals of the Healthy
Communities Initiative when relevant and
Organizations administering food or nutrition
programs should:
Align their food service programs with 2010 Dietary
Guidelines for Americans (DGA).
b) Display at least one USDA “My Plate” poster at every
location where food is served.
Food programs should not offer sugar-sweetened
Source: Community Development Program Funding Application
Food service connected to programs funded
by grant
Includes food served:
◦ At program events
◦ At program meetings
◦ As part of program’s breakfast, lunch, dinner,
and/or snacks
Provide science-based advice for food
Overarching guidelines:
Make half your plate fruits and vegetables
Switch to skim or 1% milk
Make at least half your grains whole
Vary your protein food choices
Choose foods and drinks with little or no added
◦ Look out for salt (sodium) in processed foods
◦ Eat fewer foods that are high in solid fats
Source: USDA, HHS,
A drink with sugar added
◦ Sugar examples: Sugar, brown sugar, corn
sweetener, corn syrup, sucrose, fructose, glucose,
high-fructose corn syrup
◦ SSB examples: Non-diet sodas, sweetened teas,
sports and energy drinks, sweetened waters and
juices, and blended coffee drinks
◦ Replacements: water, seltzer water, skim/1% milk
Source: NYC Department of Health,
Example policy guidelines:
 Have water available throughout the event
 Provide fruits and vegetables as snacks
 Whenever possible, offer foods in singleserving portions
Source: RI Department of Health,
Ellen Cynar
Healthy Communities Office
401-421-7740 x733
[email protected]
Wide variety possible
◦ Housing & other real property activities
◦ Economic development
◦ Pubic facilities
◦ Public services
◦ CBDO activities
◦ Planning and administration
◦ Others
Reg cites §570.201 - §570.206, §570.482
Statutory cites at Section 105
See other web modules for more details on eligible
Regs expressly prohibit:
◦ Buildings for conduct of government & general
government expenses
◦ Political activities
◦ New housing construction (some exceptions)
◦ Income payments
◦ Purchase of equipment
◦ Operating and maintenance expenses
Some exceptions for ED and CBDO activities,
interim assistance
Reg cite §570.208, 570.480
All CDBG activities must:
◦ Benefit low/mod income persons
◦ Prevent or eliminate slums and blight OR
◦ Meet an urgent need
Activities that benefit all residents of area
51% LMI persons
Area must be primarily residential
Must determine service area of activity
Typical activities: water/sewer, parks,
community centers
Documentation Needed for Area
 Service area MUST be determined before CDBG assistance can be
provide. This can be done through a map.
 Document the Census Track and Block Group that your agency
 Include any clients that may live outside your service area but utilize
the agency's services
 This information is available at
51% of participants are LMI persons
Participation limited to LMI persons only
Nature and location indicate low/mod benefit
Typical activities: job training, senior services,
facilities for persons with special needs
Activities that benefit specific populations who
reside in Providence
◦ Presumed clientele
Abused Children
Battered Spouses
Elderly persons
Severely disabled
Homeless persons
Illiterate adults
Person living with AIDS
Area must meet definition of slum/blighted area under
state/local law AND
Meet either A) or B) below:
A) At least 25% of properties throughout the area experience 1 or more of
the following conditions:
 Physical deterioration of buildings or improvements
 Abandonment of properties;
 Chronic high occupancy turnover rates or chronic high vacancy rates in
commercial/industrial buildings;
 Significant declines in property values or abnormally low property
values relative to other areas in community; or
 Known or suspected environmental contamination.
B) The public improvements in the area are in a general state of
Typical activities: code enforcement, infrastructure,
commercial rehabilitation
Activities that address specific conditions of blight,
physical decay or environmental contamination not in
slum/blight area
Activities limited: acquisition, clearance, relocation,
historic preservation, remediation of environmentally
contaminated properties, or building rehab
◦ Acquisition & relocation must be precursor to
another eligible activity that addresses
slum/blighted conditions
◦ Rehab limited to elimination of conditions
detrimental to public health & safety
To meet the urgent need test:
Existing conditions pose serious & immediate
threat to health/welfare of community
Existing conditions are recent or recently became
Generally 18 months
Recipient cannot finance on its own
Other funding sources not available
Typical activities: infrastructure, interim
assistance, rehab of community facilities
Scope of Work describes the task to be
undertaken with CDBG/Hopwa Funds
◦ Most be detailed
◦ Updates staff to any changes since application
We will review proposed scopes of work with
Subrecipients one on one in the contracting
Completing the Form:
◦ Provide an updated Summary
◦ Describe outcome measurements
# OR %
• Outcomes = resulting benefits of service
• Not participant/enrollment numbers,
hours of service provided, number of
times a service delivered.
Senior Nutrition
Will demonstrate improved health outcomes by
achieving at least one of the following: lowered
blood pressure; achieving target weight;
demonstrating improved nutrition knowledge/skills
through post test
Pregnant Teen
Newborns will achieve healthy birth weight
Fathers will attend & assist with birth of child
Citizenship Class
Will enroll and take US Citizenship Test
Will achieve passing score on Test
Financial Empowerment 50
Will open and regularly maintain an appropriate
checking account
Will reduce or eliminate use of predatory financial
services (e.g. check cashing)
Will complete a Savings Plan
Completing the Form:
◦ Detail Project Timeline
◦ List Project Staffing
◦ List Current Board Members
Public Service Activities must be complete by
All other activities must be complete by
Extensions may be granted on a case by case
basis, but are discouraged.
Subrecipient timeliness and compliance will
be taken into account when reviewing
Any grant funds not spent by the contract
end date will be forfeited.
Completing the Form:
◦ Agencies must select a National Objective
◦ Documentation must be provided to illustrate that
the objective is met
◦ IF the national objective is not met, FUNDS MUST BE
National Objective
◦ Area Benefit and Limited Clientele are mutually
exclusive! Don’t select both.
◦ If activity serves an entire area which qualifies as
LMI, it’s Area Benefit (example: neighborhood
parks, sidewalks)
◦ If activity serves a limited number of people or
target population, it’s limited clientele (example:
boys/girls club, food pantry, senior center)
Homeless Shelter =
Homeless Shelter =
Limited Clientele (LMC)
Park Improvements=
Park Improvements =
Area Benefit
Afterschool Program =
Afterschool Program =
Limited Clientele
Community Center =
Community Center =
Area Benefit
Demonstrating Area
Must outline
boundaries for
Contact your Grant
Project Coordinator
for Assistance
Demonstrating Limited Clientele requires
keeping documentation of:
◦ Household Income
◦ Household Size
Income is calculated based on the Section
8 process.
Documentation can be:
◦ Self Certification (Client signs paperwork)
◦ 3rd Party Verification (Paystubs, benefit letters)
Every Activity must submit a clear and
concise project budget showing sources and
Any modifications between budget categories
must be approved by the City.
No costs which may be considered as
entertainment in nature will be reimbursed
with CDBG funds
Budget Categories Include:
◦ Non-Administrative Personnel Costs
◦ Non-Administrative Office Costs
◦ General Program Delivery Costs
◦ Capital Assets/Equipment/Computers
◦ Construction Costs
Budget Categories Include:
◦ Non-Administrative Personnel Costs
 Staffing Associated with Direct Service
 Not Administrators
◦ Non-Administrative Office Costs
 Associated with Activity/Direct Service
 Cannot pay MORTGAGE
 Must be reasonable (need cost allocation plan, if splitting
between multiple funding sources)
Budget Categories Include:
◦ General Program Delivery Costs
Supplies less than $500
Direct Services to Client (Bus tickets, books, etc)
Food/Snacks - Eligible only for clients, and must be an
integral part of the program such as after school
snacks for children or lunch for pre-school.
Budget Categories Include:
◦ Capital Assets/Equipment/Computers
 Supplies more than $500 or Item with useful life
beyond 1 year.
 Examples include:
 Industrial Kitchen Equipment
 Computers
 Playground Equipment
Budget Categories Include:
◦ Improvement/Acquisition Costs
 Expenses association with rehabilitation and/or
acquisition of a facility or property.
 Would only include Contracted Services Professional
and technical services not performed by staff.
 Examples include:
 Purchase of Land
 Contractor Expenses associated with renovating a building
New Budget Forms, Require Greater Detail
Break out Fringe
Must keep track of actual time charged to
CDBG (not a %)
The following activities may not be assisted with
CDBG funds:
◦ Administrative Activities
◦ Planning Activities (unless you receive written
◦ Activities not performed in compliance with CDBG
◦ Maintenance & Operation of a Building (Does not Apply
to a Public Service Activity)
The following activities may not be assisted with CDBG
◦ Buildings for the general conduct of government. This includes
operating and maintenance expenses. Exceptions are operation
and maintenance associated with public service activities, interim
assistance, and CDBG program staff.
◦ General government expenses except to carry out the CDBG
◦ Political or religious activities.
◦ Construction equipment.
◦ Fire protection equipment unless part of a public facility.
The following activities may not be assisted
with CDBG funds:
◦ Personal furnishing or property.
◦ Food not related to direct service delivery to clients.
◦ Furnishings that are not integral structural fixtures.
◦ New housing construction except for land
acquisition and other specific circumstances.
◦ Income payments and other subsistence payments
made to individuals or a family.
• Protect health and safety of our clients,
• Avoid or mitigate any harm to the surrounding
environment and project site.
• Avoid litigation that could stop project on the
procedural or on environmental grounds
• Avoid monitoring findings and/or loss of HUD
financial assistance to your project
• REQUIRED – by Federal Law & Regulation
under the National Environmental Policy Act of
1969 (NEPA) and NEPA related laws
• The City of Providence will conduct the
Environmental Review for Subrecipients
• However, Subrecipients must understand the
time restraints & limitations.
• Remember NO WORK can be done until an
Environmental Review is completed.
• In most cases the City will not sign a
CDBG/HOPWA contract until an Environmental
Review has taken place.
Five levels of review: 24 CFR Part 58.34(a)
◦ Exempt 24 CFR Part 58.35
◦ Categorically Excluded, but Subject to 24 CFR
Part 58.5
◦ Categorical Excluded, NOT subject to 24 CFR Part
◦ Environmental Assessment 24 CFR Part 58.36
◦ Environmental Impact Statement 24 CFR Part
Choice Limiting Action
• Choice Limiting Action:
• Undertaking tasks (even with nonCDBG/HOPWA funds) prior to an
environmental review being completed.
• No work can be done from Application
Submission to Environmental Review
• §58.22: Limitations on activities pending
Choice Limiting Action
• HUD assistance may not be committed until
environmental review completed and RROF
• Non-HUD funds cannot be committed if
activity/project would have adverse
environmental impact or limit choice of
reasonable alternatives
Choice Limiting Actions, cont’d
• Cannot start project prior to completion of
environmental review and release of funding
Includes  Property acquisition
 Leasing
 Demo
 Rehab
 Construction
 Site Improvements
Choice-limiting actions reduce or eliminate
your opportunity to choose alternatives.
The subrecipient is responsible to let the City
know of any changes made to a project.
Be aware that if you change the scope of the
project (location, size of lines, etc.) it can
affect the level of review that is required for
that project.
If federal funds are being used for any “part”
of a project, environmental review must:
◦ Be done on the entire project and
◦ Will be held to the most stringent
classification that the project includes.
“A real or seeming incompatibility
between a person’s private interests and
his or her public or fiduciary duties.”
Two Types of Conflict of Interest:
 Procurement
 Non-Procurement
What Regulations and Rules apply for CDBG
24 CFR § 570.611 states:
No person who is an employee, agent, consultant,
officer, or elected or appointed official of recipient or
sub-recipient who:
 Exercises any functions or
responsibilities w/ respect to CDBG
 Is in a position to participate in the
decision making process,
 Or gains inside information with
regard to such activities may:
 Obtain a financial interest or benefit
from a CDBG activity.
 Have a financial interest in any
contract with respect to a CDBG
activity or its proceeds.
 For themselves or those they have
business or immediate family ties.
ALERT: Reg applies during the person’s
tenure and for one year thereafter.
Procurement of:
◦ Supplies
◦ Equipment
◦ Construction
◦ Services
Key point – ALL other Conflicts of
HUD may grant an exception to
Conflict of Interest on a case-by-case
 Recipient must request an exception
in writing.
ALL Conflict of Interest documents
MUST be included in any request
for an exception!!!
Threshold Requirements:
◦ Public disclosure of conflict.
◦ Opinion of Recipient’s attorney that
exception does not violate State or
local law.
HUD legal counsel determines
whether threshold requirements
are met.
Cindy Civic is a City Council member of
the City of Providence:
◦ Cybil is also Vice-president of the Board of
Directors of Friends for Life of South
◦ She does not receive a salary or any other
compensation for serving on FFLSP’s Board.
◦ FFLSP is a subrecipient of $25,000 in CDBG
grant funds from the City.
Is there a conflict of interest?
A. No, as long as Cybil resigns from her
position as VP of FFLSP’s Board.
B. No, because Cybil has no financial
interest in FFLSP.
C. Yes, because FFLSP received $25,00 in
CDBG grants.
D. Yes, unless FFLSP gives the County back
the $25,000 of CDBG funds.
B. No, because Cybil has no financial interest
Cybil may continue to serve as a City
Council member and also as VP of FFLSP’s
A conflict of interest would arise in this
situation only if Cybil received a salary or
other compensation for her FFLSP Board
service. 24 CFR §570.611(b)
Bay County, Texas and the Village of Seaside Creek
sought a contractor to complete some drainage
improvements by sealed competitive bids.
◦ The project will be funded with CDBG funds.
◦ Eric Smith and Associates is the engineering firm
which will oversee the project.
◦ Jones Constructors, Inc. was the low bidder for the
job and has been selected for the award of this
◦ The principles of both the engineering firm and the
construction company are brothers-in-law.
* Is this a procurement or non-procurement
•This is a procurement of construction services covered
by 24 CFR §85.36.
Can Bay County award the
contract to Constructors?
Yes, because although Eric Smith and the principle
of Jones Constructors, Inc. are brothers-in-law,
Bay County secured the bid by sealed competitive
Yes, because they are not immediate family
No, a conflict of interest exists because they are
immediate family members.
No, as long as Eric does not physically handle the
money being paid to Jones Constructor’s Inc.
C. No, a conflict of interest exists because they
are immediate family members.
* Conflict of interest exists for an agent of the grantee to
administer a contract supported by federal funds if a
member of his “immediate family” has a financial
interest in the company selected for the award.
* Accordingly, it would be a conflict of interest for Eric
Smith and Associates to administer a construction
contract funded with CDBG money, since Eric Smith’s
brother-in-law is the President of Jones Constructors,
Would it make a difference in the last
example if Bay County were to pay Eric
Smith and Associates its engineering fees
for overseeing the project out of the
County’s general revenue fund and not
with CDBG money?
The fact that Bay County is paying Eric
Smith and Associates out of general
revenues would not prevent the
occurrence of a conflict of interest in the
previous example.
Eric Smith and Associates, as an agent of
Bay County, cannot administer a CDBG
funded contract for the County in which
his brother-in-law has a financial
interest. 24 CFR § 85.36(b)(3).
The City of Longhorn, Texas, is seeking an
exception from HUD for a conflict of
interest under the CDBG regs.
◦ In connection with the City’s request, the City Attorney
rendered an opinion that there might be a violation of
the Texas Non-profit Corporation Act if the conflict of
interest was not disclosed to disinterested members of
the non-profit subrecipient’s Board, or is not “fair” to
the non-profit subrecipient.
Is there a problem here?
A. Yes, because the City Attorney’s opinion
did not explicitly state the exception request
would not violate State or local law.
Yes, because the State Attorney General
should have sent the letter not the City
C. No, because there is only a remote
possibility the conflict would violate local or
state law.
D. No, unless the conflict the City Attorney’s
letter is sufficient to met the threshold
A. Yes, because the City Attorney’s opinion
did not explicitly state the exception
request would not violate State or local
HUD’s CDBG conflict of interest regs contain certain “threshold”
requirements which must be satisfied.
One such requirement is that the recipient’s counsel must
opine that the interest for which the exception is sought
would not violate state or local law. 24 CFR §
Accordingly, HUD must deny the requested exception pending
receipt of an acceptable recipient’s attorney’s opinion.
Subrecipients are required to submit a quarterly
report for all contracted activities
Reports are due on the 15th of each quarter
Reports must be signed by Executive Director or
Authorized personnel
Incomplete reports will returned for corrections
At project completion, a closeout report must be
◦ Applies to all CDBG/HOPWA funded activities
◦ Report all individual beneficiary data for LMC activities
(including race, ethnicity, income, etc)
Measurable goals and outcomes must be
included in your quarterly report
◦ Only report on data items relevant to the specific activity
Data is reported in a timely fashion
Be consistent with all of the data categories
- Race/ethnicity
- Income levels
- Accomplishment narrative
Duplicative Data
Inaccurate Data
Missing accomplishments
Failure to submit a complete report will
result in denied requests for
Program Files should contain:
◦ Original executed copy of the agreement with the
◦ Any amendments to the application and
◦ Correspondence relating to the grant award
◦ Copies & Backup of Requests for Reimbursement
◦ Any other information pertinent to the CDBG
Grant (URA, Insurance, etc)
◦ Documentation of Program measurable goals and
Records must demonstrate compliance with
HUD and city regulations.
Records shall be kept for 5 years after closeout of
the CITY’S grant with HUD (typically assume 10
years from contract signing)
GPCs will let Subrecipients know of specific grant
close dates
Client Files should contain:
◦ An application for assistance, if applicable
◦ Client Income Documentation or Certification
◦ Documentation as to services provided to the
client and any outcomes of service, for example,
if a client is referred to another agency for
services, a follow up contact is required to
document the services the client received
◦ Copies of any program requirements
◦ Pre and post program evaluations, if applicable
All Subrecipients must obtain and
maintain at their local offices, the
following information on each client
Client name and address
Head of household status
Income of all Household members
Household Size
Languages Spoken
Exceptions to Income Documentation
◦ Clients of a battered women's shelter.
◦ Seniors 62 years of age and older.
◦ Persons with recognized disabilities.
All other documentation is still required.
Documentation of Income:
◦ Beneficiaries must demonstrate to the Subrecipient
that they meet the income requirements through 3rd
party documentation whenever possible (paystubs,
benefit letters, etc).
◦ When 3rd party verification is not possible, a client
may sign a certification indicating their income. A
sample certification is included below:
Documentation of Income:
◦ Remember to document Household size too!
◦ Have clients sign & certify:
 I/We certify that the information given on household
composition and income is accurate and complete to the
best of my/our knowledge and belief.
 I/We understand that false statements or information are
punishable under Federal law.
Documentation of Income:
◦ Have clients sign & certify:
 I/We also understand that false statements or information
are grounds for termination of assistance.
 I/We hereby certify that my household size and income are
as stated above.
 I/We consent to verification of this information by the service
provider, the City Of Providence, or other governmental
officials as required.
Monitoring is not a “one time” event, its
ongoing throughout the entire lifespan of the
Review occurs onsite and remotely.
Risk-based approach may be utilized when
needed to determine which communities
should be prioritized for monitoring.
Technical assistance may be requested prior to
or in conjunction with monitoring effort
Subrecipients may rate highly for risk if:
Recent Changes in Staff (especially in leadership)
Large CDBG Grant (over 50,000)
Difficulty with Timeliness
Audit Findings
Complexity of Project (CNOGs)
Time since last onsite monitoring visit
Number of CDBG grants
Comments from the Public/Clients/News
Non-responsive to City Requests for Information
Failure to submit Quarterly Reports
Onsite Monitoring Visit:
◦ Notification Call or Letter
◦ Entrance Conference
◦ Exit Conference
◦ Follow-up Letter
Subrecipients usually have 30 days to respond to a
monitoring letter (if findings or concerns are
Common Monitoring Issues:
◦ Services are not Documented
◦ Goals are not being met
◦ Eligibility of Clients is not Documented (income &
household size)
◦ Program files are not in order
◦ Insufficient Backup for purchases (especially bids & quotes)
Letter will corrective actions for findings identified.
Monitoring –
◦ Most Checklists are available online:
ndbook.cfm#3 (UNDER CDBG)
◦ Common checklists include:
 National Objective Lists
 Procurement
 Financial Management
CDBG funds cannot be used to support
proselytize persons.
CDBG assistance may not be used for
inherently religious activities.
However, CDBG funds may be used to
rehabilitate buildings owned by primarily
religious entities if the entity agrees to
provide all eligible activities under this
program in a manner that is free from
religious influences and to be used for a
wholly secular purpose.
CDBG funds may not finance facilities or
equipment for political purposes or engage in
other partisan political activities.
If all parties and organizations have access to
the facility on an equal basis and are
assessed equal rent or use charges, then
political activities may occur on an incidental
Under the Hatch Act, any person employed by
a Community Development program may not
undertake certain political activities nor be a
candidate for elected office unless
candidacies are nonpartisan.
Subrecipient may not use appropriated
Federal funds for lobbying the Executive or
Legislative Branches of the Federal
Government in connection with a specific
contract, grant, or loan.
Subrecipients shall maintain current
insurance for the full term of the CDBG
◦ Must be Primary Coverage
◦ Subcontractors must also be insured
Subrecipients shall maintain current
insurance for the full term of the CDBG
◦ Includes:
 Workman’s Compensation
 Automobile Insurance (minimum amount of $500,000
combined single limit per occurrence for bodily injury
and property damage)
 Comprehensive or Commercial General Liability
Insurance (Coverage in the minimum amount of
◦ Minimum Standards may be amended on a case by
case basis. Talk to your GPC.
All required insurance shall be endorsed to
"The City Of Providence, its employees, officers,
agents and volunteers are hereby added as
additional insureds, but only as respects work done
by, for, or on behalf of the named insured under
Agreement with the City Of Providence."
Workman’s Comp and Employee Liability
Insurance must include the following
"Thirty (30) days prior written notice shall be given
to the City Of Providence in the event of
cancellation, reduction in coverage, or non-renewal
of this policy for whatever reason."
Proof of Coverage
 A subrecipient shall provide its insurance broker(s) with a full copy
of these insurance provisions and provide the City of Providence
on or before the effective date of their CDBG Agreement with
Certificate of Insurance for all required coverage.
Copies of all the required Endorsements listed above shall be
attached to the Certificate(s) of Insurance or other evidence of
insurance acceptable to the City Of Providence, which shall be
provided by Subrecipient’s insurance company as evidence of the
stipulated coverage.
This Proof of Coverage shall then be mailed to the City Of
Providence at the following address:
City Of Providence
Division of Community Development
444 Westminister, Suite 3A
Providence, RI 02903
• CDBG Subrecipients are prohibited from
discriminating on the basis of:
◦ Familial status
◦ Ethnicity
◦ Gender
National origin
◦ Gender Identity
Disability Status
◦ Language(s) Spoken
(Including prior
◦ Literacy
Alcohol & Illegal
◦ Sexual Orientation
Substance Addictions)
◦ Veteran Status
• Exceptions may granted in cases of program design
(i.e. no families in a homeless shelter for single
women. Discuss with your GPC.
Discrimination is prohibited in delivery of
services, program administration, and any
enforcement mechanisms.
Subrecipients shall take all reasonable steps
to minimize the displacement of persons as a
result of CDBG activities.
Some of the responsibilities of Subrecipients
under URA include:
◦ Providing the owner or tenant with just
compensation and reimbursing expenses
associated with the relocation.
◦ Providing relocation advisory services.
◦ Providing a minimum 90 days written notice to
Subrecipients must ensure meaningful access to their
programs and activities by persons who do not speak
English as their primary language and who have limited
ability to speak, read, write, or understand English.
If 25% or more of a CDBG Activity’s service clientele has
limited English proficiency and speaks a non-English
language, the CDBG Activity must provide key documents
translated in that population’s language.
If 50% or more of a CDBG Activity’s service clientele has
limited English proficiency and speaks a non-English
language, the CDBG Activity must make every attempt to
provide assistance to a person in their designated
language, either through translation services or by
employing staff who speak the language.
If CDBG funds are provided for counseling,
mental health services, medical services,
and/or case management, these services
MUST be provided in the client’s native
language, regardless of the size of the
population the provider serves.
If Subrecipients have questions or need
technical assistance they are encouraged to
contact their GPC.
Provisions of the Drug-Free Workplace Act of 1988 require that
◦ Publish and give a policy statement to all covered employees
informing them that the unlawful manufacture, distribution,
dispensation, possession or use of a controlled substance is
prohibited in the covered workplace.
◦ Establish a drug-free awareness program to make employees aware
a) the dangers of drug abuse in the workplace;
b) the policy of maintaining a drug-free workplace;
c) any available drug counseling, rehabilitation, and employee
assistance programs; and
d) the penalties that may be imposed upon employees for drug
abuse violations.
Provisions of the Drug-Free Workplace Act of 1988 require that
◦ Notify employees that as a condition of receiving CDBG funds, the
employee must a) abide by the terms of the policy statement; and b)
notify the employer, within five calendar days, if he or she is
convicted of a criminal drug violation in the workplace.
◦ Notify the City within 10 days after receiving notice that a covered
employee has been convicted of a criminal drug violation in the
City of Providence
Angel Taveras, Mayor
 The city of Providence Ordinance #193,
passed on May 9th 1990, requires a
minimum of 10% participation of minorityowned enterprises (MBEs) and 10% of
(WBEs), in all city-funded and directed
public construction program projects and
municipal purchases of goods and services.
City of Providence Policy
 To support and enhance the fullest possible
participation of firms owned and controlled by
Minority and Women Business Enterprises, it is
in the best interest of the City of Providence to
promote the equitable utilization of MWBEs in
city contracts. For example prime contractors
will utilize MWBEs to enable the city’s
purchasing department to meet or exceed the
goal set forth in the ordinance.
General Vision of Minority & Women
Businesses Enterprises
 The MWBEs stimulate the economic growth in the
City of Providence, by the creating of more jobs within
the urban community.
 The City of Providence is home to far greater
percentage of Minority & Women owned businesses
than the rest of the State of Rhode Island.
 However, Minorities own relatively few firms relative
to their percent of labor force. (Table 1).
Vision Details of Minority &
Women Owned Businesses
 For example, Hispanics make up 36% of
Providence resident labor force and own 22% of the
City of Providence businesses classified by ownership.
 Blacks make up 15% of resident labor force and own
11% of classified businesses.
 Half (50%) of the Providence resident labor force is
female, while only 32% of classifiable businesses in the
City of Providence are owned by women.
Businesses Owned by Minority &
Women in the City of Providence
Factors that Contribute to the Lack
of Participation
 The believe of lack of transparency in the
 Misperception of the inside deal.
 Lack of knowledge of the bidding process.
 State Certification.
 Lack of knowledge to put the bid together
 Bonding issue to operate
 Financial Security to sustain the city payment policy
 Lack knowledge in budgeting their own job
 Computer skills to appropriately navigate the system.
Minority & Women Owned Businesses
Certification Process
 The State of Rhode Island office of Minority Business
Enterprise holds the certification.
 This process is important because it verifies that
minority and women owned a majority of firms that
meet the US. Small Business Administration definition
for a MBE or WBE.
 Give the opportunity to MWBE to participate in the
RFP as a prime contractor or as a subcontractor.
 A small business concern which is at least fifty-one
percent (51%) owned and controlled by one or more
socially and economically disadvantage individuals or
in the case of a publicly owned business, at least fiftyone (51%)of the stock of which is owned by one or
more socially and economically disadvantaged
individuals; and whose management and daily
business operations are controlled by one or more such
How to apply for the State of Rhode
Island Certification?
 Firms seeking certification as MWBE or DBE must complete and
submit the following certification documents.
 Please note that the State requires that you provide five (5)
separate and completed sets of the application form and all
required supporting documentation.
 Out of state firms must first seek certification from their home
state Unified Certification Program (UPC) prior to seeking
certification in the State of Rhode Island.
 Please note the average processing time for a complete
application is approximately eight(8) to ten (ten) weeks.
How to Register as a Vendor
 Complete the State of Rhode Island Minority and Disadvantaged Business Enterprise
(DBE Uniform Certification Application), “Amendment to DBE Uniform Certification
Application”. The application can be downloaded at
 Complete Personal Financial Addendum to MBE/WBE/DBE Certification Affidavit
(Statement of Personal Net Worth). Available at
 Complete DbE Affidavit of Certification (Complete DBE Affidavit of Certification).
 W9 Form (W9 Form).
Forward the completed forms to.
Minority Business Enterprise Compliance Office
RI Department of Administration
One Capitol Hill – 2nd Floor
Providence, RI 02908
(401)574-8670 phone
(401)574-8387 fax
Register with the City of Providence
 Once you have been certified as an MBE/WBE/DBE by the State
of Rhode Island, you must separately register with the City of
Providence as an MBE/WBE Vendor.
 Go to, on the right side of the screen
select the department of public property, scroll down under
purchasing, select Vendor Information Center that will take you
to Vendor Center and then hit online vendor registration.
Mr. Ernesto Figueroa
MBE/WBE Compliance
25 Dorrance Street
Providence, Rhode Island 02903
(401)421-7740. Ext. 663
[email protected]
Subrecipients must perform their own
analysis of cost before executing contracts
Subrecipients must certify in writing that
costs are reasonable and indicate the basis
for that determination
Contractor bids are not sufficient by
Subrecipients must document with
pictures and text the scope of work that
is needed, then carry out a cost analysis
The City will inspect all projects to
determine appropriate scope and
reasonable costs
Lead hazard risk assessments may also
be required
On Solid Ground
must, and the City may, inspect:
at prescribed intervals
whenever a change order
complaint by owner/tenant/neighbor
prior to covering over (e.g., wiring and plumbing
before drywall)
◦ at all draws
◦ unannounced times
The City will inspect at ALL draws.
On Solid Ground
Work performed
List trades on site
Take photos
Materials delivered
Delays or problems
Non-conforming work
Who is present for
Job site discussions
that involve
corrective measures
Any code inspection
scheduled deliveries
On Solid Ground
What do you do when:
◦ The inspection finds incomplete or deficient work?
◦ There are issues the project is not designed to
Work with your GPC.
Deficient work could result in stoppage of
work and payments, until project corrected
and re-inspected.
On Solid Ground
Subrecipients must:
◦ Ensure contractors and vendors perform in
accordance with contracts or purchase orders
◦ Maintain written employees codes of conduct and
procedures for procurement
◦ Provide for open competition
◦ Document all procurement actions
◦ Adopt written procedures for managing
procurement and resolving disputes
Who makes the procurement selection
For any subrecipient, the Federal and City
requirements apply
For a developer or property owner, City rules
On Solid Ground
For all major construction work, Subrecipients
must follow the formal Bid Process with
Sealed bids.
Bid process includes:
Prepare cost estimate
Publish invitation for bids in local paper
Sealed bids, public bid opening
Explain in writing bidder selection
Assure reasonableness through comparison to
original cost analysis
On Solid Ground
For any procurements for minor construction
◦ Obtain and record in writing at least three price
◦ Select lowest price among similar products
◦ Compare quotes to cost analysis
On Solid Ground
To Ensure timely reimbursement these items must be
Agency Responsibilities
•Pre-Construction Meeting with DCD Staff
•Have three apples to apples bids
•Have one bid from a certified WBE Contractor
•Contact staff when the job has started
•Notice of Award to Contractor
•Notice to Proceed
•Letter of satisfaction
To Ensure timely reimbursement these items must be
Contractor Must have if applicable
•Insurance Binder
•Contractor’s License
•Obtain Permit
•Fill out and submit completed & Certified Payroll HUD 257
•Monthly Utilization Form
•Employee’s must be interviewed for prevailing wage
Standards guarantee fair wages and
compensation for workers
Helps provide a level playing field for bidders
Local grantee must ensure and document
Transgressions endanger future funding
Required by CDBG program and other federal
• Davis-Bacon Act The Davis Bacon and Related Acts
(DBRA) requires all contractors and subcontractors
performing work with federal dollars for construction
contracts or federally assisted contracts in excess of
• To pay their laborers and mechanics not less than the
prevailing wage rates and fringe benefits for
corresponding classes of laborers and mechanics
employed on similar projects in the area.
What are the requirements of the Davis-Bacon Act
• Prevailing wage is the combination of the basic hourly rate and any
fringe benefits listed in a Davis-Bacon wage determination.
• The contractor’s obligation to pay at least the prevailing wage
•Payment can be made by cash wages or by a combination of cash
wages and employer-provided bona fide fringe benefits.
• Payment must be based on all hours worked on the site of the
• Apprentices or trainees may be employed at less than the rates
listed. Some exceptions to be taken into consideration.
What are the requirements of the Davis-Bacon Act
•Contractors and subcontractors are required to pay covered
workers weekly.
• Contractors must submit weekly certified payroll records to the
contracting agency.
• Contractors must post the applicable Davis-Bacon wage determination
with the poster on the job site.
Enacted in 1934 (40 U.S.C. 276c)
Prohibits “kickbacks”
Requires contractors to submit certified payrolls
with a signed “statement of compliance” each
All laborers and mechanics employed by
contractors or subcontractors
Requires payment of at least prevailing wages
Requires weekly payment of wages
Usually applied through “Related Acts”
The Department of Labor (DOL) has published
rules and instructions concerning Davis-Bacon
and other labor laws in the Code of Federal
Regulations (CFR). They can be found in Title 29
CFR Parts 1, 3, 5, 6 and 7
Review weekly payrolls and compliance
Conduct employee interviews
See that underpaid workers receive restitution
Maintain contract management system and
compliance files
Building - sheltered enclosures that house
persons, machinery, equipment, etc. Also
apartment buildings over 4 stories
Residential - single family houses, townhouses,
and apartment buildings up to four stories
Highway - roads, highways, sidewalks, parking
areas, and other paving work not incidental to
other construction
Heavy - projects that can’t be classified as
Building, Residential or Highway
Competitive bidding:
◦ Modifications published less than 10 days before
bid opening are not applicable if there is not
sufficient time to notify bidders
◦ Lock-in at bid opening provided contract is
awarded within 90 days
◦ Must update wage determination if contract award
is more than 90 days
◦ UGLG must verify that wage rates are current
All laborers and mechanics must:
◦ Be paid not less often than once a week
◦ Receive at least 1½ times regular rate of pay for all
hours worked over 40 per week
Each employer must:
◦ Submit weekly certified payrolls reflecting all hours
Laborer / Mechanic: anyone performing
construction work on the project
Supervisors are covered if they spend  20%
their time performing manual work
Project Superintendents if they do work in
listed trades, they must be paid the
appropriate wage listed on the Wage
Only apprentices & trainees registered in an
approved program may be paid less than the
applicable wage rate
“Approved program” means a program
registered with the DOL or a DOL- recognized
State Apprenticeship Agency
Making Davis Bacon Work
A Contractor’s Guide to Davis-Bacon
Federal Wage Determinations

CDBG & HOPWA Manager’s Workshop