HomeMy WebLinkAboutItem 06.i
October 16, 2017 Item No.________
AGREEMENT WITH DARTS FOR THE LOOP SENIOR BUS SERVICE
Proposed Action
Staff recommends adoption of the following motion: Authorize the City Administrator to sign a
CDBG Subrecipient Agreement with DARTS to provide the Loop Senior Bus Service through
12/31/18.
Overview
Representatives of the City of Lakeville, several of the Senior Housing projects in town, the Dakota
County CDA, Dakota County Communities for a Lifetime Program and DARTS have been
meeting for several months to discuss the possibility of implementing a Loop Circulator Bus
service for Seniors. There are currently limited affordable options for transportation services for
seniors in Lakeville. This type of service has been implemented by DARTS and the Cities of South
St. Paul, West St. Paul, and Hastings.
The estimated cost of providing service one day a week is approximately $25,000 for the first year.
The service would follow a designated route with designated stops. The goal would be to have a
variety of stops including grocery and other retail stores, pharmacies, restaurants and senior living
facilities. The cost to riders would be $3 per day and riders could ride all day. No riders would be
turned away for inability to pay. The proposed Lakeville Loop bus route would run on Thursdays.
The City currently has $16,434 in available Community Development Block Grant (CDBG) funds
that have been designated for Senior Transportation Services. A requirement for the use of CDBG
funds would be that users of the service would have to be at least 62 years of age or meet certain
income guidelines. Since these CDBG funds were approved for this activity prior to 2015, the funds
need to be expended by June 30, 2018. The City and DARTS have received donations totaling
$11,500 from Fountains of Hosanna, Highview Hills, Lakeville Lions, and Friends of the Heritage
Library. Staff recommends approval of this agreement with DARTS.
Primary Issues to Consider
• Has it been determined that there is a need for this type of service in Lakeville?
Surveys and comments received by numerous agencies in Dakota County and
Lakeville indicates that there is a need for this type of transportation service.,
Supporting Information
• CDBG Subrecipient Agreement with DARTS
Financial Impact: $_16,4340_____ Budgeted: Y/N__Yes_Source:__CDBG Funds____________
Related Documents: (CIP, ERP, etc.)
Envision Lakeville Community Values: Good Value for Public Services
Report completed by: David L. Olson, Community & Economic Development Director
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SUBRECIPIENT AGREEMENT BETWEEN
THE CITY OF LAKEVILLE
AND
DARTS
FOR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDED PROGRAMS
THIS AGREEMENT entered into this 16th day of October, 2017 by and between the City of
Lakeville (herein called the “Grantee”) and DARTS (herein called the “Subrecipient”), which
pertains to a time period that begins and ends as identified in Section I of this Agreement
based on the Fiscal Year 2017 Funding Approval/Agreement approved by the U.S.
Department of Housing and Urban Development (“HUD”), which identifies July 1 as the date
use of funds may begin; and
WHEREAS, the Grantee receives funds from the United States Government under Title I of
the Housing and Community Development Act of 1974, as amended (HCD Act), Public Law
93-383, through Dakota County as an Urban Entitlement County under the Community
Development Block Grant (CDBG) Program; and
WHEREAS, the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing
such funds.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the Grantee and Subrecipient agree as follows:
I. TIME OF PERFORMANCE. Services of the Subrecipient shall start on the ninth day
of November 2017 and end on the last day of December 2018. This Agreement and
the provisions herein remains in effect until it is replaced by a subsequent Subrecipient
Agreement.
II. SCOPE OF SERVICES. The Subrecipient agrees to utilize funds available under this
Agreement to supplement rather than supplant funds otherwise available.
A. Activities. The Subrecipient will be responsible for the administration of
Activities identified in Exhibit A, in a manner satisfactory to the Grantee and
consistent with any required standards. Exhibit A may be amended each Fiscal
Year, if the Activities receive additional funding in subsequent fiscal years, in
accordance to the Activities approved for and undertaken by the Subrecipient,
including ongoing Activities from previous fiscal years.
i. Prohibited Activities. The Subrecipient is prohibited from using funds
provided herein or personnel employed in the administration of the program
for: political activities; lobbying; political patronage; and nepotism activities.
ii. Religious Activities. The Subrecipient agrees that funds provided under this
Agreement will not be utilized for inherently religious activities prohibited by
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24 CFR 570.200(j)(2), such as worship, religious instruction, or
proselytization.
Faith-based organizations are eligible, on the same basis as any other
organization to participate in CDBG programs and activities in accordance
with 24 CFR 5.109(b) and 24 CRF 570.200(j)(1) provided that the
organizations do not engage in any inherently religious activities as part of
the programs or services supported by CDBG funds.
B. National Objectives. The Subrecipient will provide documentation to certify that
the Activities carried out with funds provided under this Agreement will meet
one or more of the CDBG program’s national objectives, including: (1) benefit
low- and moderate income persons; (2) aid in the prevention or elimination of
slums and blight; and (3) meet community development needs having a
particular urgency. As required in 24 CFR Part 570.200(a)(2) and as defined in
24 CFR Part 570.208 (Exhibit E).
C. Use of Funds. The Activities identified in Exhibit A can begin to incur costs no
sooner than July 1 of each year.
III. FEDERAL COMPLIANCE. The Subrecipient agrees to comply with the requirements
of Title 24 of the Code of Federal Regulations, Part 570, concerning CDBG including
Subpart of these regulations, except that (1) the Subrecipient does not assume the
Grantee’s environmental responsibilities described at § 570.604; and (2) the
Subrecipient does not assume the Grantee's responsibility for initiating the review
process under the provisions of 24 CFR Part 52.The Subrecipient also agrees to
comply with all other applicable Federal regulations and policies enumerated below as
they apply to the performance of this Agreement.
A. Citizen Participation. Comply with all HUD citizen participation requirements
under the Dakota County HOME Consortium Citizen Participation Plan (CPP)
and conformance with 24 CFR 91.105. The CPP can be found on the Dakota
County CDA website at www.dakotacda.state.mn.us
B. Environmental Conditions. Ensure program compliance with the following
federal regulations.
i. Air and Water.
a. Clean Air Act, 42 U.S.C, 7401, et seq.;
b. Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et
seq., as amended, 1318 relating to inspection, monitoring, entry, reports,
and information, as well as other requirements specified in said Section
114 and Section 308, and all regulations and guidelines issued
thereunder;
c. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR
Part 50, as amended.
ii. Flood Disaster Protection. In accordance with the requirements of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall
assure that for activities located in an area identified by the Federal
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Emergency Management Agency (FEMA) as having special flo od hazards,
flood insurance under the National Flood Insurance Program is obtained and
maintained as a condition of financial assistance for acquisition or
construction purposes (including rehabilitation).
iii. Lead-Based Paint. The Subrecipient agrees that any construction or
rehabilitation of residential structures with assistance provided under this
Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR
570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all
CDBG-assisted housing and require that all owners, prospective owners, and
tenants of properties constructed prior to 1978 be properly notified that such
properties may include lead-based paint. Such notification shall point out the
hazards of lead-based paint and explain the symptoms, treatment and
precautions that should be taken when dealing with lead -based paint
poisoning and the advisability and availability of blood lead level screening
for children under seven. The notice should also point out that if lead -based
paint is found on the property, abatement measures may be undertaken. The
regulations further require that, depending on the amount of Federal funds
applied to a property, paint testing, risk assessment, treatment and/or
abatement may be conducted.
iv. Historic Preservation. The Subrecipient agrees to comply with the
Historic Preservation requirements set forth in the National Historic
Preservation Act of 1966, as amended (16 U.S.C. 470) and the
procedures set forth in 36 CFR Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties, insofar as
they apply to the performance of this agreement. In general, this requires
concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are 50 years old or
older, or that are included on a Federal, state, or local historic property
list.
C. Environmental Review. The Grantee shall insure that all Activities comply with
environmental review requirements, unless otherwise stated herein. This
would include the Grantee’s completion of a study and assessment of each
Activity in conformance with the National Environmental Policy Act of 1967.
The Subrecipient shall furnish the Grantee a copy of any updated
environmental report.
D. Acquisition and Relocation. The Subrecipient agrees to comply with all
aspects of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended (URA) The Subrecipient shall provide
relocation assistance to displaced persons as defined by 24 CFR
570.606(b)(2) that are displaced as a direct result of acquisition,
rehabilitation, demolition or conversion for a CDBG-assisted project. The
Subrecipient also agrees to comply with applicable Grantee ordinances,
resolutions and policies concerning the displacement of persons from their
residences. .
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E. Labor Standards. The Subrecipient agrees to comply with the requirements
of the Secretary of Labor in accordance with the Davis-Bacon Act as
amended, the provisions of Contract Work Hours and Safety Standards Act
(40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws
and regulations pertaining to labor standards insofar as those acts apply to
the performance of this Agreement. The Subrecipient agrees to comply with
the Copeland Anti-Kick Back Act (18 U.S.C. 874 et seq.) and its
implementing regulations of the U.S. Department of Labor at 29 CFR Par t 5.
The Subrecipient agrees that, except with respect to the rehabilitation or
construction of residential property containing less than eight (8) units, all
contractors engaged under contracts in excess of $2,000.00 for construction,
renovation or repair work financed in whole or in part with assistance
provided under this contract, shall comply with Federal requirements of the
regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7.
The Subrecipient is required to insert in all such c ontracts subject to such
regulations, provisions meeting the requirements of this paragraph. The
Grantee will be the contact for all contracts subject to such regulations and
oversee the implementation of the hour and wage requirements of this part.
The Grantee will maintain the documentation that demonstrates compliance.
F. Affirmatively Furthering Fair Housing. In accordance with the Fair Housing Act
(42 U.S.C. 3601-3620), the subrecipient will administer all programs and
activities related to housing and urban development in a manner to affirmatively
further the policies of the Fair Housing Act.
G. Equal Opportunity Compliance. The Subrecipient shall maintain compliance
with the provisions of Section 3 of the HUD Act of 1968, as amended; Women
and Minority Owned Businesses requirements; Federal Equal Employment
Opportunity Act, Executive Orders and Civil Rights Act of 1964 as specified in
24 CFR 135.20.
i. “Section 3” Clause. The Subrecipient agrees to ensure that opportunities for
training and employment arising in connection with a housing rehabilitation
(including reduction and abatement of lead-based paint hazards), housing
construction, or other public construction project are given to low- and very
low-income persons residing within the metropolitan area in which the
CDBG-funded project is located. Where feasible, priority should be given to
low- and very low-income persons within the service area of the project or
the neighborhood in which the project is located, and to low- and very low-
income participants in other HUD programs.
Award contracts for work undertaken in connection with a housing
rehabilitation (including reduction and abatement of lead-based paint
hazards), housing construction, or other public construction project to
business concerns that provide economic opportunities for low- and very
low-income persons residing within the metropolitan area in which the
CDBG-funded project is located. Where feasible, priority should be given to
business concerns that provide economic opportunities to low- and very
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low-income residents within the service area or the neighborhood in which
the project is located, and to low- and very low-income participants in other
HUD programs.
The Subrecipient further agrees to comply with these “Section 3”
requirements and to include the following language in all subcontracts
executed under this Agreement:
“The work to be performed under this Agreement is a project assisted under
a program providing direct Federal financial assistance from HUD and is
subject to the requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended (12 U.S.C. 1701). Section 3
requires that to the greatest extent feasible opportunities for training and
employment be given to low- and very low-income residents of the project
area, and that contracts for work in connection with the project be awarded
to business concerns that provide economic opportunities for low- and very
low-income persons residing in the metropolitan area in which the project is
located.”
ii. Women and Minority Owned businesses (W/MBE). The Subrecipient will
use its best efforts to afford small businesses, minority business
enterprises, and women’s business enterprises the maximum practicable
opportunity to participate in the performance of this contract. As used in this
contract, the terms “small business” means a business that meets the
criteria set forth in section 3(a) of the Small Business Act, as amended (15
U.S.C. 632), and “minority and women’s business enterprise” means a
business at least fifty-one (51) percent owned and controlled by minority
group members or women. For the purpose of this definition, “minority
group members” are African-Americans, Spanish-speaking, Spanish
surnamed or Spanish-heritage Americans, Asian-Americans, and American
Indians. The Subrecipient may rely on written representations by
businesses regarding their status as minority and female business
enterprises in lieu of an independent investigation.
iii. Equal Employment Opportunity and Affirmative Action (EEO/AA)
Statement. The Subrecipient will, in all solicitations or advertisements for
employees placed by or on behalf of the Subrecipient, state that it is an
Equal Opportunity or Affirmative Action employer.
iv. All other Federal Acts or Regulations and requirements of HUD, including
but not limited to Executive Order 11246 prohibiting discrimination in
employment contracts, and directing government contracts to establish and
maintain affirmative action.
H. Conflict of Interest. The Subrecipient agrees to abide by the provisions of 24
CFR 84.42 and 570.611, which include (but are not limited to) the following:
a. The Subrecipient shall maintain a written code or standards of conduct
that shall govern the performance of its officers, employees or agents
engaged in the award and administration of contracts supported by
Federal funds;
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b. No employee, officer or agent of the Subrecipient shall participate in
the selection, or in the award, or administration of, a contract
supported by Federal funds if a conflict of interest, real or apparent,
would be involved;
c. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, or who are in
a position to participate in a decision-making process or gain inside
information with regard to such activities, may obtain a financial
interest in any contract, or have a financial interest in any contract,
subcontract, or agreement with respect to the CDBG-assisted activity,
or with respect to the proceeds from the CDBG-assisted activity, either
for themselves or those with whom they have business or immediate
family ties, during their tenure or for a period of one (1) year thereafter.
For purposes of this paragraph, a “covered person” includes any
person who is an employee, agent, consultant, officer, or elected or
appointed official of the Grantee, the Subrecipient, or any designated
public agency.
I. Compliance with Common Rule and Uniform Administrative Requirements.
The Subrecipient shall comply with all applicable requirements at 24 CFR
570.502 and 2 CFR 200.
IV. ADMINISTRATIVE REQUIREMENTS
A. Records to be Maintained. The Subrecipient shall maintain all records required
by the Federal regulations specified in 24 CFR 570.506, that are pertinent to
the activities to be funded under this Agreement. Such records shall include but
not be limited to:
i. Records demonstrating that each activity undertaken meets one of the
National Objectives of the CDBG program;
ii. Records required to determine the eligibility of activities;
iii. Records of all program claims and disbursements. The Subrecipient shall
prepare a Request for Reimbursement Form (Exhibit D) listing all claims
certified and paid by the Subrecipient for Activities and submit this Form to
the Grantee
iv. Ensure compliance with 3-day rule requirements once funds are received
by the Subrecipient from the Grantee.
v. Provide the Grantee with information necessary to submit reports as
outlined in 24 CFR 570.507.
vi. Submit to the Grantee quarterly progress reports of any outstanding
Activities. The status report shall be submitted to the Grantee by or before
the 30th of October, January, April, and July.
B. Record Retention. The Subrecipient shall retain all financial records, supporting
documents, statistical records, and all other records pertinent to Agreement a
period of three (3) years from the date of submission of the final expenditure
report or three (3) years after the grant is closed, whichever is longer. Such
records shall be made available for audit or inspection at any time upon request
of the Grantee or its authorized representative.
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Notwithstanding the above, if there is litigation, claims, audits, negotiations or
other actions that involve any of the records cited and that have started before
the expiration of the three-year period, then such records must be retained until
completion of the actions and resolution of all issues.
i. Client Data. The Subrecipient shall maintain client data demonstrating client
eligibility for services provided. Such data shall include, but not be limited to,
client name, address, income level or other basis for determining eligibility,
and description of service provided.
ii. Disclosure. The Subrecipient understands that client information collected
under this contract is private and the use or disclosure of such information,
when not directly connected with the administration of the Grantee’s or
Subrecipient’s responsibilities with respect to services provided under this
Agreement, is prohibited. Unless written consent is obtained from such
person receiving service and, in the case of a minor, that of a responsible
parent/guardian.
C. Program Income. The Subrecipient shall report all program income as defined
in 24 CFR 570.500(a) generated by activities carried out with CDBG funds. The
Subrecipient shall return all program income immediately to the Grantee except
for revolving accounts approved by the Grantee. Program income will be
disbursed according to the Program Income Policy attached as Exhibit E.
D. Reversion of Assets. The Subrecipient shall transfer to the Grantee any CDBG
funds on hand and any accounts receivable attributable to the use of CDBG funds
under this Agreement at the time of expiration, cancellation, or termination. Any
real property under the Subrecipient's control that was acquired or improved in
whole or in part with CDBG funds in excess of $25,000 shall be:
i. Used to meet one of the national objectives in 24 CFR Part 570.208 (Exhibit B)
until five (5) years after the expiration of this Subrecipient agreement; or
ii. If the Subrecipient fails to use CDBG-assisted real property in a manner that
meets a CDBG National Objective for the prescribed period of time, the
Subrecipient shall pay the Grantee an amount equal to the current fair market
value of the property less any portion of the value attributable to expenditures
of non-CDBG funds for acquisition of, or improvement to, the property. Such
payment shall constitute program income to the Grantee. The Subrecipient
may retain real property acquired or improved under this Agreement after the
expiration of the five-year period.
iii. In all cases in which equipment acquired, in whole or in part, with funds under
this Agreement is sold, the proceeds shall be program income (prorated to
reflect the extent to that funds received under this Agreement were used to
acquire the equipment). Equipment not needed by the Subrecipient for
activities under this Agreement shall be (a) transferred to the Grantee for the
CDBG program or (b) retained after compensating the Grantee [an amount
equal to the current fair market value of the equipment less the percentage of
non-CDBG funds used to acquire the equipment].
E. Audit. All Subrecipient records with respect to any matters covered by this
Agreement shall be made available to the Grantee, grantor agency, and the
Comptroller General of the United States or any of their authorized
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representatives, at any time during normal business hours, as often as deemed
necessary, to audit, examine, and make excerpts or transcripts of all relevant
data.
i. The Subrecipient shall make available an audit or, upon prior approval by the
Grantee, a copy of their financial statements for the fiscal years the grant is in
effect. Audits must be performed by a Certified Public Accountant in
accordance with generally accepted auditing principles and the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, 2 CFR 200.
V. ADMINISTRATION COSTS. In consideration of the prompt and efficient carrying out
of the requirements of this Agreement and 24 CFR Part 570, Subpart J, the
Subrecipient may request that the Grantee reimburse the Subrecipient based on
general administration budgets identified in Section VI. Such administration costs
shall come solely from CDBG sources. Accurate records of administrative costs shall
be kept by the Subrecipient, and billing shall be made at such times as are convenient
to implement the Grantee’s requisition for funds from HUD and no less frequently than
quarterly. For the purposes of this Agreement, general administration costs are
defined as follows:
A. Salary costs actually incurred by the Subrecipient for time expended by its
employees on all phases of the activity/project.
i. Accrual costs such as flex leave/vacation or a severance pool are
disallowed.
B. Mileage, supplies and publication costs.
C. Proportionate share of allowable overhead expenses figured on time expended
basis.
D. Costs incurred through attendance at applicable development conferences
within the term of this Agreement, including registration fees and travel
expenses. Conference attendance shall be for the purpose of gaining
additional information on CDBG regulations and/or program activity
implementation.
VI. BUDGET. This Agreement replaces all previous Subrecipient Agreements and is
applicable to prior fiscal year(s) Activities which are not yet completed and to new
Activities programmed for CDBG Grant Fiscal Year 2017 as outlined in Exhibit A.
VII. OBLIGATIONS AND RESPONSIBILITIES. The Subrecipient agrees to assume and
carry out the Grantee’s obligations and responsibilities under:
A. The Cooperation Agreements entered into between Dakota County and the
Subrecipient concerning the Dakota County CDBG Program; and
B. The Supplemental Agreements to the aforementioned Cooperation
Agreements entered into between Dakota County and the Subrecipient.
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C. A Subrecipient’s failure to comply with any provision of this Agreement may
lead to corrective actions by the Grantee. The Grantee shall provide the
Subrecipient with written notice of the Subrecipient’s failure to comply with
certain provisions. The Subrecipient will have fifteen (15) days upon receipt of
the notice to respond in writing as to the corrective action that will be taken.
Failure to respond to the notice and/or to implement the proposed corrective
action(s) to the Grantee’s sole and full satisfaction will cause the Grantee to
take remedial action, including, but not limited to the following:
i. Reimbursement requests will not be processed by the Grantee;
ii. CDBG funds will be recaptured from the Subrecipient that have already been
expended or obligated; and/or
iii. The Grantee will terminate this Agreement.
D. The Grantee has the right to require the Subrecipient to repay CDBG funds if any
of the following conditions occur:
i. HUD requires payback for any reason;
ii. The Grantee has not been informed of a service or program change by the
Subrecipient and has expended funds for such purposes;
iii. The Grantee has decided that a cost was disallowed or unauthorized after the
Subrecipient obligated such cost; or
iv. The Subrecipient receives funds, rebates or interest on CDBG reimbursed
expenses, and it has not forwarded these funds to the Grantee.
VIII. PERFORMANCE MONITORING. The Grantee will monitor the progress and
performance of the Subrecipient by timely expenditure of allocations and by
conformance with CDBG program regulations. Substandard performance as
determined by the Grantee will constitute noncompliance with this Agreement. If
action to correct such substandard performance is not taken by the Subrecipient
within a reasonable period of time after being notified by th e Grantee, contract
suspension or termination procedures will be initiated.
A. Timeliness. HUD requires that sixty (60) days prior to the end of the
Grantee’s program year, the amount of non-disbursed CDBG funds be no
more than 1.5 times the entitlement grant for its current program year. The
Subrecipient will be held to the same timeliness test and is expected to have
no more than 1.5 times the allocation as of May 2 nd each year.
B. Grant-Based Accounting. As of the 2015 Fiscal Year, HUD has implemented
grant-based accounting for the CDBG program. The Subrecipient must
expend grant allocations within four (4) years. The expenditure deadline can
be found on Exhibit A.
C. Reallocation & Recapture. Reallocation of funds, if necessary to meet the
1.5 spenddown ratio requirement, will be done according to the CDBG
Contingency Plan attached in Exhibit F.
The Grantee has the right to recapture unexpended or unobligated funds that
are older than four (4) years prior to the current Fiscal Year. Recaptured
CDBG funds will be added to an approved county-wide CDBG Activity or a
competitive pool.
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D. Quarterly Reporting. The Subrecipient shall provide quarterly reporting to the
Grantee by the 30th day of October, January, April, and July. Reporting shall
include all outstanding Activities as listed on Exhibit A.
E. Onsite Monitoring. The Grantee may perform onsite monitoring of the
Subrecipient to assure compliance. Results of monitoring efforts shall be
summarized in written reports and document follow-up actions to be taken to
correct areas of noncompliance.
IX. GENERAL CONDITIONS. The following shall apply to the Subrecipient and this
Agreement:
A. Independent Contractor. For the purpose of this Agreement, the Subrecipient
shall be deemed an independent contractor, and not an employee of the
Grantee. Any and all employees of the Subrecipient or other persons, while
engaged in the performance of any work or services required by the
Subrecipient under this Agreement, shall not be considered employees of the
Grantee; and any and all claims that may or might arise on behalf of said
employees or other persons as a consequence of any act or omission on the
part of said employee or the Subrecipient shall in no way be the obligation or
responsibility of the Grantee.
B. Hold Harmless. It is further agreed that the Subrecipient shall hold harmless,
defend and indemnify the Grantee from any and all claims, demands, actions,
judgements or causes of action arising out of any act or omission on the part of
the Subrecipient, its agents, servants, or employees in performance of, or with
relation to, any of the work or services performed or furnished by the
Subrecipient under the terms of the Agreement. It is further agreed that the
Subrecipient shall notify the Grantee of any actual or potential claims against
the Grantee that may arise as a consequence of any of the work or services
performed or furnished by the Subrecipient under the terms of this Agreement.
C. Transfer. The Subrecipient shall not assign or transfer any interest in this
Agreement, whether by assignment or subcontract, without the prior written
consent of the Grantee.
D. Amendments. Any alteration, variation, modification, or waiver of a provision of
this Agreement shall be valid only after it has been reduced to writing and duly
signed by both parties, with the exception of Administrative Amendments
defined as any revision to the original annual budget (Exhibit A). Any request to
amend the annual budget, create or cancel an activity, or change the national
objective will require written approval by the Subrecipient and may be subject to
the Citizen Participation Plan. The Grantee retains the right to make
Administrative Amendments without the approval of the Subrecipient for
substandard performance of timely expenditure.
E. Waiver. The waiver of any of the rights and/or remedies arising under the terms of
this Agreement on any one occasion by either party hereto shall not constitute a
waiver of any rights and/or remedies in respect to any subsequent breach or
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default of the terms of this Agreement. The rights and remedies provided or
referred to under the terms of the Agreement are cumulative and not mutually
exclusive.
F. Liability. Notwithstanding any other provision of this Agreement to the contrary,
the Subrecipient shall not be relieved of liability to the Grantee for damages
sustained by the Grantee by virtue of any breach of this Agreement by the
Subrecipient, and the Grantee may withhold any payments to the Subrecipient for
the purpose of set-off until such time as the exact amount of damages due the
Grantee from the Subrecipient is determined.
G. Entire Agreement. This Agreement, as well as Exhibits A through F, which are
attached hereto and incorporated herein by reference, shall constitute the entire
agreement between the parties and shall supersede all prior oral or written
negotiations.
H. HUD Approval. It is expressly understood between the parties that this Agreement
is contingent upon the approval of HUD and its authorization of grant monies to
the Grantee for the purpose of this Agreement.
I. Violation of Law. Should any of the above provisions be subsequently determined
by a Court of competent jurisdiction to be in violation of any Federal or State Law
or to be otherwise invalid, both parties agree that only those provisions so
adjudged shall be invalid and that the remainder of this Agreement shall remain in
full force and effect.
J. Discrimination. The Subrecipient agrees to comply with all Federal, State and
local laws and ordinances as they pertain to unlawful discrimination on account of
race, color, creed, religion, national origin, sex, marital status, status with regard to
public assistance, disability, or age.
K. Applicable Laws. The Subrecipient further agrees to comply with all Federal,
state, and local laws or ordinances, and all applicable rules, regulations, and
standards established by any agency of such governmental units, which are
now or hereafter promulgated insofar as they relate to the Subrecipient
performance of the provisions of this Agreement.
L. State Law. This Agreement shall be interpreted and construed according to the
laws of the State of Minnesota.
M. Suspension and Termination. In accordance with 24 CFR 85.43, the Grantee may
suspend or terminate this Agreement if the Subrecipient materially fails to comply
with any of the provisions hereof, and the award may be terminated for
convenience in accordance with 24 CFR 85.44. Such termination shall occur
thirty (30) days after receipt by the Subrecipient of written notice from the Grantee
specifying the grounds therefore, unless, prior to such date, the Subrecipient has
cured the alleged nonperformance of the provisions of this agreement.
Lakeville Subrecipient Agreement
Page 12 of 36
X. CERTIFICATION FOR CONTRACT, GRANTS, LOANS AND COOPERATIVE
AGREEMENTS. The Subrecipient certifies, to the best of its knowledge and belief,
that:
A. No Federal appropriated funds have been paid or will be paid, by or on behalf
of the Subrecipient to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, and officer or
employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement.
B. If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress, in connection with this
Federal contract, grant, loan, or cooperative agreement, the Subrecipient shall
complete and submit Standard Form - LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions.
C. The Subrecipient shall require that the language of this certification be included
in the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and cooperative agreements and
that all subrecipients shall certify and disclose accordingly.
D. Lobbying Certification. This certification is a material representation of fact upon
which reliance was placed when this agreement was made or entered into.
Submission of this certification is a prerequisite for making or entering into this
agreement imposed by section 1332, title 31, U.S. Code. Any person who fails
to file the required certification shall be subject to a civil penalty of not less than
$10,000 and not more than $100,000 for each such failure.
Page 13 of 36
NOTICE. Written notice to be provided under this Agreement shall be provided as follows:
For the Grantee: Justin Miller, City Administrator
City of Lakeville
20195 Holyoke Ave
Lakeville, MN 55044
For the Subrecipient: Ann Bailey, President
DARTS
1645 Marthaler Lane
West St. Paul, MN 55118
IN WITNESS WHEREOF, the Grantee and the Subrecipient have executed this
Subrecipient Agreement on the date indicated below.
DARTS City of Lakeville
The Subrecipient The Grantee
By _________________________________ By ___________________ ___________
Ann Bailey Justin Miller
Its President_______________________ Its City Administrator
Date of Signature _____________________ Date of Signature __________________
Page 14 of 36
EXHIBITS
A. City of Lakeville and DARTS Agreement
B. 24 CFR Part 570.208 (National Objectives)
C. 24 CFR Part 570.600-614 (Subpart K)
D. Request for Reimbursement Form
E. Program Income and Reuse Policy
F. Contingency Plan/Timeliness of Expenditures
Lakeville Subrecipient Agreement Exhibit A
Page 15 of 36
EXHIBIT A TO SUBRECIPIENT AGREEMENT
City of Lakeville and DARTS
CDBG funds will be committed to the following Activities after November 1, 2017. Exhibit A
will be amended as needed through the term of this Agreement.
CURRENT YEAR ALLOCATION – 2017
All funds must be expended by December 31, 2018
➢ Activity : Lakeville LOOP
• Description: The Lakeville LOOP is a fixed-route bus circulator that will run at least
one weekday per week, 5-hours per day, and serve six senior facilities located in
Lakeville, the Lakeville Heritage Center, and the Dakota County Heritage Library (see
attached LOOP route). The LOOP provides lift assistance and highly trained bus
drivers for transporting seniors (62 and older) and people with disabilities. Weekly
LOOP service is expected to begin the second week of November 2017 and run for at
least 12 months.
DARTS is STS certified and adheres to standards set by the Federal Motor Carrier
Safety Administration. The most up-to-date inspection results are available upon
request.
City of Lakeville deliverables. The City will provide a communication contact,
potential sponsor connections, free advertising and communication about LOOP
service via the City website and social media platforms.
DARTS deliverables. DARTS will provide bus, qualified drivers and all necessary
documentation of bus insurance, driver licenses and training certification. DARTS will
also provide quarterly reporting on ridership (see data collection). DARTS will regularly
(not less than twice per year) convene the Lakeville LOOP Advisory Committee to
discuss measures of success, adjustments to the route, schedule, fares,
sponsorships, etc.
• Oversight/Lakeville LOOP Advisory Committee. The Lakeville LOOP Advisory
Committee will advise DARTS on key components of LOOP operations, including the
final LOOP route and schedule, LOOP fares, and marketing. DARTS reserves the
right to cancel service on days in which weather (or other emergencies) makes it
unsafe to operate the LOOP. In those instances, DARTS will contact the City of
Lakeville, members of the LOOP Advisory Committee and six senior facilities via
email.
The LOOP Advisory Committee will define measure of success for the LOOP to
include average number of unique rides per day, growth in ridership, achieving long-
Lakeville Subrecipient Agreement Exhibit A
Page 16 of 36
term sponsorship funding, and rider satisfaction based on an annual onboard rider
survey.
• Data collection for federal CDBG reporting: DARTS will certify that each Lakeville
LOOP rider is either 62 years of age or older, a person with disabilities, or meets low
to moderate income standards per federal CDBG requirements by using a LOOP
Rider Application (see attached). DARTS will provide original copies of all rider
applications on a quarterly basis, which contain data on the number of seniors (62 and
older), people with disabilities, and low to moderate income individuals using the
Lakeville LOOP service.
• Payment: The City will contribute $16,434 in Community Development Block Grant
funds to the LOOP. In recognition of sponsoring the Lakeville LOOP, DARTS will
include the City’s logo on the bus banner (on both sides of the bus), on LOOP
schedules, and promotional materials.
• Payment Schedule: The City of Lakeville will pay DARTS in four quarterly payments,
with the first payment occurring after November 1, 2017, and future payments
occurring on February 1, 2018, May 1, 2018, and August 1, 2018, subject to city
review and approval. DARTS will invoice the city for these quarterly payments.
• LOOP Budget: DARTS’ Annual Operating Budget for the LOOP is $25,000. The City
of Lakeville will work in partnership with DARTS to secure the remaining sponsorship
funding. If an excess of this amount is secured, the Lakeville LOOP Advisory
Committee will determine whether to use this surplus to provide additional LOOP
service, or to reserve it for operating costs in future years.
A rider fare of $3.00 per day, all-you-can-ride will be charged. Fare revenue will be
used for LOOP marketing and travel training expenses beyond the operating budget,
incurred by DARTS.
• Insurance: DARTS will maintain federal and state levels of insurance for all
drivers/buses used in the Lakeville LOOP service, per Federal Motor Carrier Safety
Administration and City of Lakeville standards.
• Bus Driver Certification: All LOOP Drivers will have, on record at DARTS, proof of
an up-to-date medical card, Commercial Driver’s License (Class B, with a passenger
endorsement), as well as up-to-date STS certification including regular training for
Defensive Driving, First Aid, Passenger I and II, and Maltreatment Awareness.
Lakeville Subrecipient Agreement Exhibit B
Page 17 of 36
EXHIBIT B TO SUBRECIPIENT AGREEMENT
§570.208 Criteria for national objectives.
The following criteria shall be used to determine whether a CDBG-assisted activity complies
with one or more of the national objectives as required under §570.200(a)(2):
(a) Activities benefiting low- and moderate-income persons. Activities meeting the criteria in
paragraph (a) (1), (2), (3), or (4) of this section as applicable, will be considered to benefit low
and moderate income persons unless there is substantial evidence to the contrary. In assessing
any such evidence, the full range of direct effects of the assisted activity will be considered. (The
recipient shall appropriately ensure that activities that meet these criteria do not benefit
moderate income persons to the exclusion of low income persons.)
(1) Area benefit activities. (i) An activity, the benefits of which are available to all the residents in
a particular area, where at least 51 percent of the residents are low and moderate income
persons. Such an area need not be coterminous with census tracts or other officially recognized
boundaries but must be the entire area served by the activity. An activity that serves an area
that is not primarily residential in character shall not qualify under this criterion.
(ii) For metropolitan cities and urban counties, an activity that would otherwise qualify under
§570.208(a)(1)(i), except that the area served contains less than 51 percent low- and moderate-
income residents, will also be considered to meet the objective of benefiting low- and moderate-
income persons where the proportion of such persons in the area is within the highest quartile of
all areas in the recipient's jurisdiction in terms of the degree of concentration of such persons.
This exception is inapplicable to non-entitlement CDBG grants in Hawaii. In applying this
exception, HUD will determine the lowest proportion a recipient may use to qualify an area for
this purpose, as follows:
(A) All census block groups in the recipient's jurisdiction shall be rank ordered from the block
group of highest proportion of low and moderate income persons to the block group with the
lowest. For urban counties, the rank ordering shall cover the entire area constituting the urban
county and shall not be done separately for each participating unit of general local government.
(B) In any case where the total number of a recipient's block groups does not divide evenly by
four, the block group which would be fractionally divided between the highest and second
quartiles shall be considered to be part of the highest quartile.
(C) The proportion of low and moderate income persons in the last census block group in the
highest quartile shall be identified. Any service area located within the recipient's jurisdiction and
having a proportion of low and moderate income persons at or above this level shall be
considered to be within the highest quartile.
(D) If block group data are not available for the entire jurisdiction, other data acceptable to the
Secretary may be used in the above calculations.
(iii) An activity to develop, establish, and operate for up to two years after the establishment of, a
uniform emergency telephone number system serving an area having less than the percentage
Lakeville Subrecipient Agreement Exhibit B
Page 18 of 36
of low- and moderate-income residents required under paragraph (a)(1)(i) of this section or (as
applicable) paragraph (a)(1)(ii) of this section, provided the recipient obtains prior HUD approval.
To obtain such approval, the recipient must:
(A) Demonstrate that the system will contribute significantly to the safety of the residents of the
area. The request for approval must include a list of the emergency services that will participate
in the emergency telephone number system;
(B) Submit information that serves as a basis for HUD to determine whether at least 51 percent
of the use of the system will be by low- and moderate-income persons. As available, the
recipient must provide information that identifies the total number of calls actually received over
the preceding 12-month period for each of the emergency services to be covered by the
emergency telephone number system and relates those calls to the geographic segment
(expressed as nearly as possible in terms of census tracts, block numbering areas, block
groups, or combinations thereof that are contained within the segment) of the service area from
which the calls were generated. In analyzing this data to meet the requirements of this section,
HUD will assume that the distribution of income among the callers generally reflects the income
characteristics of the general population residing in the same geographic area where the callers
reside. If HUD can conclude that the users have primarily consisted of low- and moderate-
income persons, no further submission is needed by the recipient. If a recipient plans to make
other submissions for this purpose, it may request that HUD review its planned methodology
before expending the effort to acquire the information it expects to use to make its case;
(C) Demonstrate that other Federal funds received by the recipient are insufficient or
unavailable for a uniform emergency telephone number system. For this purpose, the recipient
must submit a statement explaining whether the lack of funds is due to the insufficiency of the
amount of the available funds, restrictions on the use of such funds, or the prior commitment of
funds by the recipient for other purposes; and
(D) Demonstrate that the percentage of the total costs of the system paid for by CDBG funds
does not exceed the percentage of low- and moderate-income persons in the service area of
the system. For this purpose, the recipient must include a description of the boundaries of the
service area of the emergency telephone number system, the census divisions that fall within
the boundaries of the service area (census tracts or block numbering areas), the total number of
persons and the total number of low- and moderate-income persons within each census
division, the percentage of low- and moderate-income persons within the service area, and the
total cost of the system.
(iv) An activity for which the assistance to a public improvement that provides benefits to all the
residents of an area is limited to paying special assessments (as defined in §570.200(c)) levied
against residential properties owned and occupied by persons of low and moderate income.
(v) For purposes of determining qualification under this criterion, activities of the same type that
serve different areas will be considered separately on the basis of their individual service area.
(vi) In determining whether there is a sufficiently large percentage of low- and moderate-income
persons residing in the area served by an activity to qualify under paragraph (a)(1) (i), (ii), or (vii)
of this section, the most recently available decennial census information must be used to the
fullest extent feasible, together with the Section 8 income limits that would have applied at the
Lakeville Subrecipient Agreement Exhibit B
Page 19 of 36
time the income information was collected by the Census Bureau. Recipients that believe that
the census data does not reflect current relative income levels in an area, or where census
boundaries do not coincide sufficiently well with the service area of an activity, may conduct (or
have conducted) a current survey of the residents of the area to determine the percent of such
persons that are low and moderate income. HUD will accept information obtained through such
surveys, to be used in lieu of the decennial census data, where it determines that the survey
was conducted in such a manner that the results meet standards of statistical reliability that are
comparable to that of the decennial census data for areas of similar size. Where there is
substantial evidence that provides a clear basis to believe that the use of the decennial census
data would substantially overstate the proportion of persons residing there that are low and
moderate income, HUD may require that the recipient rebut such evidence in order to
demonstrate compliance with section 105(c)(2) of the Act.
(vii) Activities meeting the requirements of paragraph (d)(5)(i) of this section may be considered
to qualify under this paragraph, provided that the area covered by the strategy is either a
Federally-designated Empowerment Zone or Enterprise Community or primarily residential and
contains a percentage of low- and moderate-income residents that is no less than the
percentage computed by HUD pursuant to paragraph (a)(1)(ii) of this section or 70 percent,
whichever is less, but in no event less than 51 percent. Activities meeting the requirements of
paragraph (d)(6)(i) of this section may also be considered to qualify under paragraph (a)(1) of
this section.
(2) Limited clientele activities. (i) An activity which benefits a limited clientele, at least 51 percent
of whom are low- or moderate-income persons. (The following kinds of activities may not qualify
under paragraph (a)(2) of this section: activities, the benefits of which are available to all the
residents of an area; activities involving the acquisition, construction or rehabilitation of property
for housing; or activities where the benefit to low- and moderate-income persons to be
considered is the creation or retention of jobs, except as provided in paragraph (a)(2)(iv) of this
section.) To qualify under paragraph (a)(2) of this section, the activity must meet one of the
following tests:
(A) Benefit a clientele who are generally presumed to be principally low and moderate income
persons. Activities that exclusively serve a group of persons in any one or a combination of the
following categories may be presumed to benefit persons, 51 percent of whom are low- and
moderate-income: abused children, battered spouses, elderly persons, adults meeting the
Bureau of the Census' Current Population Reports definition of “severely disabled,” homeless
persons, illiterate adults, persons living with AIDS, and migrant farm workers; or
(B) Require information on family size and income so that it is evident that at least 51 percent of
the clientele are persons whose family income does not exceed the low and moderate income
limit; or
(C) Have income eligibility requirements which limit the activity exclusively to low and moderate
income persons; or
(D) Be of such nature and be in such location that it may be concluded that the activity's
clientele will primarily be low and moderate income persons.
Lakeville Subrecipient Agreement Exhibit B
Page 20 of 36
(ii) An activity that serves to remove material or architectural barriers to the mobility or
accessibility of elderly persons or of adults meeting the Bureau of the Census' Current
Population Reports definition of “severely disabled” will be presumed to qualify under this
criterion if it is restricted, to the extent practicable, to the removal of such barriers by assisting:
(A) The reconstruction of a public facility or improvement, or portion thereof, that does not
qualify under paragraph (a)(1) of this section;
(B) The rehabilitation of a privately owned nonresidential building or improvement that does not
qualify under paragraph (a)(1) or (4) of this section; or
(C) The rehabilitation of the common areas of a residential structure that contains more than
one dwelling unit and that does not qualify under paragraph (a)(3) of this section.
(iii) A microenterprise assistance activity carried out in accordance with the provisions of
§570.201(o) with respect to those owners of microenterprises and persons developing
microenterprises assisted under the activity during each program year who are low- and
moderate-income persons. For purposes of this paragraph, persons determined to be low and
moderate income may be presumed to continue to qualify as such for up to a three-year period.
(iv) An activity designed to provide job training and placement and/or other employment support
services, including, but not limited to, peer support programs, counseling, child care,
transportation, and other similar services, in which the percentage of low- and moderate-income
persons assisted is less than 51 percent may qualify under this paragraph in the following
limited circumstance:
(A) In such cases where such training or provision of supportive services assists business(es),
the only use of CDBG assistance for the project is to provide the job training and/or supportive
services; and
(B) The proportion of the total cost of the project borne by CDBG funds is no greater than the
proportion of the total number of persons assisted who are low or moderate income.
(3) Housing activities. An eligible activity carried out for the purpose of providing or improving
permanent residential structures which, upon completion, will be occupied by low- and
moderate-income households. This would include, but not necessarily be limited to, the
acquisition or rehabilitation of property by the recipient, a subrecipient, a developer, an individual
homebuyer, or an individual homeowner; conversion of nonresidential structures; and new
housing construction. If the structure contains two dwelling units, at least one must be so
occupied, and if the structure contains more than two dwelling units, at least 51 percent of the
units must be so occupied. Where two or more rental buildings being assisted are or will be
located on the same or contiguous properties, and the buildings will be under common
ownership and management, the grouped buildings may be considered for this purpose as a
single structure. Where housing activities being assisted meet the requirements of paragraph
§570.208 (d)(5)(ii) or (d)(6)(ii) of this section, all such housing may also be considered for this
purpose as a single structure. For rental housing, occupancy by low and moderate income
households must be at affordable rents to qualify under this criterion. The recipient shall adopt
and make public its standards for determining “affordable rents” for this purpose. The following
shall also qualify under this criterion:
Lakeville Subrecipient Agreement Exhibit B
Page 21 of 36
(i) When less than 51 percent of the units in a structure will be occupied by low and moderate
income households, CDBG assistance may be provided in the following limited circumstances:
(A) The assistance is for an eligible activity to reduce the development cost of the new
construction of a multifamily, non-elderly rental housing project;
(B) Not less than 20 percent of the units will be occupied by low and moderate income
households at affordable rents; and
(C) The proportion of the total cost of developing the project to be borne by CDBG funds is no
greater than the proportion of units in the project that will be occupied by low and moderate
income households.
(ii) When CDBG funds are used to assist rehabilitation eligible under §570.202(b)(9) or (10) in
direct support of the recipient's Rental Rehabilitation program authorized under 24 CFR part
511, such funds shall be considered to benefit low and moderate income persons where not
less than 51 percent of the units assisted, or to be assisted, by the recipient's Rental
Rehabilitation program overall are for low and moderate income persons.
(iii) When CDBG funds are used for housing services eligible under §570.201(k), such funds
shall be considered to benefit low- and moderate-income persons if the housing units for which
the services are provided are HOME-assisted and the requirements at 24 CFR 92.252 or
92.254 are met.
(4) Job creation or retention activities. An activity designed to create or retain permanent jobs
where at least 51 percent of the jobs, computed on a full time equivalent basis, involve the
employment of low- and moderate-income persons. To qualify under this paragraph, the activity
must meet the following criteria:
(i) For an activity that creates jobs, the recipient must document that at least 51 percent of the
jobs will be held by, or will be available to, low- and moderate-income persons.
(ii) For an activity that retains jobs, the recipient must document that the jobs would actually be
lost without the CDBG assistance and that either or both of the following conditions apply with
respect to at least 51 percent of the jobs at the time the CDBG assistance is provided:
(A) The job is known to be held by a low- or moderate-income person; or
(B) The job can reasonably be expected to turn over within the following two years and that
steps will be taken to ensure that it will be filled by, or made available to, a low- or moderate-
income person upon turnover.
(iii) Jobs that are not held or filled by a low- or moderate-income person may be considered to
be available to low- and moderate-income persons for these purposes only if:
(A) Special skills that can only be acquired with substantial training or work experience or
education beyond high school are not a prerequisite to fill such jobs, or the business agrees to
hire unqualified persons and provide training; and
Lakeville Subrecipient Agreement Exhibit B
Page 22 of 36
(B) The recipient and the assisted business take actions to ensure that low- and moderate-
income persons receive first consideration for filling such jobs.
(iv) For purposes of determining whether a job is held by or made available to a low- or
moderate-income person, the person may be presumed to be a low- or moderate-income
person if:
(A) He/she resides within a census tract (or block numbering area) that either:
(1) Meets the requirements of paragraph (a)(4)(v) of this section; or
(2) Has at least 70 percent of its residents who are low- and moderate-income persons; or
(B) The assisted business is located within a census tract (or block numbering area) that meets
the requirements of paragraph (a)(4)(v) of this section and the job under consideration is to be
located within that census tract.
(v) A census tract (or block numbering area) qualifies for the presumptions permitted under
paragraphs (a)(4)(iv)(A)(1) and (B) of this section if it is either part of a Federally-designated
Empowerment Zone or Enterprise Community or meets the following criteria:
(A) It has a poverty rate of at least 20 percent as determined by the most recently available
decennial census information;
(B) It does not include any portion of a central business district, as this term is used in the most
recent Census of Retail Trade, unless the tract has a poverty rate of at least 30 percent as
determined by the most recently available decennial census information; and
(C) It evidences pervasive poverty and general distress by meeting at least one of the following
standards:
(1) All block groups in the census tract have poverty rates of at least 20 percent;
(2) The specific activity being undertaken is located in a block group that has a poverty rate of at
least 20 percent; or
(3) Upon the written request of the recipient, HUD determines that the census tract exhibits
other objectively determinable signs of general distress such as high incidence of crime,
narcotics use, homelessness, abandoned housing, and deteriorated infrastructure or substantial
population decline.
(vi) As a general rule, each assisted business shall be considered to be a separate activity for
purposes of determining whether the activity qualifies under this paragraph, except:
(A) In certain cases such as where CDBG funds are used to acquire, develop or improve a real
property (e.g., a business incubator or an industrial park) the requirement may be met by
measuring jobs in the aggregate for all the businesses which locate on the property, provided
such businesses are not otherwise assisted by CDBG funds.
Lakeville Subrecipient Agreement Exhibit B
Page 23 of 36
(B) Where CDBG funds are used to pay for the staff and overhead costs of an entity making
loans to businesses exclusively from non-CDBG funds, this requirement may be met by
aggregating the jobs created by all of the businesses receiving loans during each program year.
(C) Where CDBG funds are used by a recipient or subrecipient to provide technical assistance
to businesses, this requirement may be met by aggregating the jobs created or retained by all of
the businesses receiving technical assistance during each program year.
(D) Where CDBG funds are used for activities meeting the criteria listed at §570.209(b)(2)(v),
this requirement may be met by aggregating the jobs created or retained by all businesses for
which CDBG assistance is obligated for such activities during the program year, except as
provided at paragraph (d)(7) of this section.
(E) Where CDBG funds are used by a Community Development Financial Institution to carry out
activities for the purpose of creating or retaining jobs, this requirement may be met by
aggregating the jobs created or retained by all businesses for which CDBG assistance is
obligated for such activities during the program year, except as provided at paragraph (d)(7) of
this section.
(F) Where CDBG funds are used for public facilities or improvements which will result in the
creation or retention of jobs by more than one business, this requirement may be met by
aggregating the jobs created or retained by all such businesses as a result of the public facility
or improvement.
(1) Where the public facility or improvement is undertaken principally for the benefit of one or
more particular businesses, but where other businesses might also benefit from the assisted
activity, the requirement may be met by aggregating only the jobs created or retained by those
businesses for which the facility/improvement is principally undertaken, provided that the cost (in
CDBG funds) for the facility/improvement is less than $10,000 per permanent full-time
equivalent job to be created or retained by those businesses.
(2) In any case where the cost per job to be created or retained (as determined under paragraph
(a)(4)(vi)(F)(1) of this section) is $10,000 or more, the requirement must be met by aggregating
the jobs created or retained as a result of the public facility or improvement by all businesses in
the service area of the facility/improvement. This aggregation must include businesses which,
as a result of the public facility/improvement, locate or expand in the service area of the
facility/improvement between the date the recipient identifies the activity in its action plan under
part 91 of this title and the date one year after the physical completion of the
facility/improvement. In addition, the assisted activity must comply with the public benefit
standards at §570.209(b).
(b) Activities which aid in the prevention or elimination of slums or blight. Activities meeting one
or more of the following criteria, in the absence of substantial evidence to the contrary, will be
considered to aid in the prevention or elimination of slums or blight:
(1) Activities to address slums or blight on an area basis. An activity will be considered to
address prevention or elimination of slums or blight in an area if:
Lakeville Subrecipient Agreement Exhibit B
Page 24 of 36
(i) The area, delineated by the recipient, meets a definition of a slum, blighted, deteriorated or
deteriorating area under State or local law;
(ii) The area also meets the conditions in either paragraph (A) or (B):
(A) At least 25 percent of properties throughout the area experience one or more of the following
conditions:
(1) Physical deterioration of buildings or improvements;
(2) Abandonment of properties;
(3) Chronic high occupancy turnover rates or chronic high vacancy rates in commercial or
industrial buildings;
(4) Significant declines in property values or abnormally low property values relative to other
areas in the community; or
(5) Known or suspected environmental contamination.
(B) The public improvements throughout the area are in a general state of deterioration.
(iii) Documentation is to be maintained by the recipient on the boundaries of the area and the
conditions and standards used that qualified the area at the time of its designation. The recipient
shall establish definitions of the conditions listed at §570.208(b)(1)(ii)(A), and maintain records
to substantiate how the area met the slums or blighted criteria. The designation of an area as
slum or blighted under this section is required to be redetermined every 10 years for continued
qualification. Documentation must be retained pursuant to the recordkeeping requirements
contained at §570.506 (b)(8)(ii).
(iv) The assisted activity addresses one or more of the conditions which contributed to the
deterioration of the area. Rehabilitation of residential buildings carried out in an area meeting the
above requirements will be considered to address the area's deterioration only where each such
building rehabilitated is considered substandard under local definition before rehabilitation, and
all deficiencies making a building substandard have been eliminated if less critical work on the
building is undertaken. At a minimum, the local definition for this purpose must be such that
buildings that it would render substandard would also fail to meet the housing quality standards
for the Section 8 Housing Assistance Payments Program-Existing Housing (24 CFR 882.109).
(2) Activities to address slums or blight on a spot basis. The following activities may be
undertaken on a spot basis to eliminate specific conditions of blight, physical decay, or
environmental contamination that are not located in a slum or blighted area: acquisition;
clearance; relocation; historic preservation; remediation of environmentally contaminated
properties; or rehabilitation of buildings or improvements. However, rehabilitation must be limited
to eliminating those conditions that are detrimental to public health and safety. If acquisition or
relocation is undertaken, it must be a precursor to another eligible activity (funded with CDBG or
other resources) that directly eliminates the specific conditions of blight or physical decay, or
environmental contamination.
Lakeville Subrecipient Agreement Exhibit B
Page 25 of 36
(3) Activities to address slums or blight in an urban renewal area. An activity will be considered
to address prevention or elimination of slums or blight in an urban renewal area if the activity is:
(i) Located within an urban renewal project area or Neighborhood Development Program (NDP)
action area; i.e., an area in which funded activities were authorized under an urban renewal
Loan and Grant Agreement or an annual NDP Funding Agreement, pursuant to title I of the
Housing Act of 1949; and
(ii) Necessary to complete the urban renewal plan, as then in effect, including initial land
redevelopment permitted by the plan.
Note: Despite the restrictions in (b) (1) and (2) of this section, any rehabilitation activity which
benefits low and moderate income persons pursuant to paragraph (a)(3) of this section can be
undertaken without regard to the area in which it is located or the extent or nature of
rehabilitation assisted.
(c) Activities designed to meet community development needs having a particular urgency. In
the absence of substantial evidence to the contrary, an activity will be considered to address this
objective if the recipient certifies that the activity is designed to alleviate existing conditions
which pose a serious and immediate threat to the health or welfare of the community which are
of recent origin or which recently became urgent, that the recipient is unable to finance the
activity on its own, and that other sources of funding are not available. A condition will generally
be considered to be of recent origin if it developed or became critical within 18 months
preceding the certification by the recipient.
(d) Additional criteria. (1) Where the assisted activity is acquisition of real property, a preliminary
determination of whether the activity addresses a national objective may be based on the
planned use of the property after acquisition. A final determination shall be based on the actual
use of the property, excluding any short-term, temporary use. Where the acquisition is for the
purpose of clearance which will eliminate specific conditions of blight or physical decay, the
clearance activity shall be considered the actual use of the property. However, any subsequent
use or disposition of the cleared property shall be treated as a “change of use” under §570.505.
(2) Where the assisted activity is relocation assistance that the recipient is required to provide,
such relocation assistance shall be considered to address the same national objective as is
addressed by the displacing activity. Where the relocation assistance is voluntary on the part of
the grantee the recipient may qualify the assistance either on the basis of the national objective
addressed by the displacing activity or on the basis that the recipients of the relocation
assistance are low and moderate income persons.
(3) In any case where the activity undertaken for the purpose of creating or retaining jobs is a
public improvement and the area served is primarily residential, the activity must meet the
requirements of paragraph (a)(1) of this section as well as those of paragraph (a)(4) of this
section in order to qualify as benefiting low and moderate income persons.
(4) CDBG funds expended for planning and administrative costs under §570.205 and §570.206
will be considered to address the national objectives.
Lakeville Subrecipient Agreement Exhibit B
Page 26 of 36
(5) Where the grantee has elected to prepare an area revitalization strategy pursuant to the
authority of §91.215(e) of this title and HUD has approved the strategy, the grantee may also
elect the following options:
(i) Activities undertaken pursuant to the strategy for the purpose of creating or retaining jobs
may, at the option of the grantee, be considered to meet the requirements of this paragraph
under the criteria at paragraph (a)(1)(vii) of this section in lieu of the criteria at paragraph (a)(4)
of this section; and
(ii) All housing activities in the area for which, pursuant to the strategy, CDBG assistance is
obligated during the program year may be considered to be a single structure for purposes of
applying the criteria at paragraph (a)(3) of this section.
(6) Where CDBG-assisted activities are carried out by a Community Development Financial
Institution whose charter limits its investment area to a primarily residential area consisting of at
least 51 percent low- and moderate-income persons, the grantee may also elect the following
options:
(i) Activities carried out by the Community Development Financial Institution for the purpose of
creating or retaining jobs may, at the option of the grantee, be considered to meet the
requirements of this paragraph under the criteria at paragraph (a)(1)(vii) of this section in lieu of
the criteria at paragraph (a)(4) of this section; and
(ii) All housing activities for which the Community Development Financial Institution obligates
CDBG assistance during the program year may be considered to be a single structure for
purposes of applying the criteria at paragraph (a)(3) of this section.
(7) Where an activity meeting the criteria at §570.209(b)(2)(v) may also meet the requirements
of either paragraph (d)(5)(i) or (d)(6)(i) of this section, the grantee may elect to qualify the activity
under either the area benefit criteria at paragraph (a)(1)(vii) of this section or the job aggregation
criteria at paragraph (a)(4)(vi)(D) of this section, but not both. Where an activity may meet the
job aggregation criteria at both paragraphs (a)(4)(vi)(D) and (E) of this section, the grantee may
elect to qualify the activity under either criterion, but not both.
Lakeville Subrecipient Agreement Exhibit C
Page 27 of 36
EXHIBIT C TO SUBRECIPIENT AGREEMENT
Subpart K—Other Program Requirements
§570.600 General.
(a) This subpart K enumerates laws that the Secretary will treat as applicable to grants
made under section 106 of the Act, other than grants to states made pursuant to section
106(d) of the Act, for purposes of the Secretary's determinations under section 104(e)(1) of
the Act, including statutes expressly made applicable by the Act and certain other statutes
and Executive Orders for which the Secretary has enforcement responsibility. This subpart
K applies to grants made under the Insular Areas Program in §570.405 and §570.440 with
the exception of §570.612. The absence of mention herein of any other statute for which
the Secretary does not have direct enforcement responsibility is not intended to be taken
as an indication that, in the Secretary's opinion, such statute or Executive Order is not
applicable to activities assisted under the Act. For laws that the Secretary will treat as
applicable to grants made to states under section 106(d) of the Act for purposes of the
determination required to be made by the Secretary pursuant to section 104(e)(2) of the
Act, see §570.487.
(b) This subpart also sets forth certain additional program requirements which the
Secretary has determined to be applicable to grants provided under t he Act as a matter of
administrative discretion.
(c) In addition to grants made pursuant to section 106(b) and 106(d)(2)(B) of the Act
(subparts D and F, respectively), the requirements of this subpart K are applicable to
grants made pursuant to sections 107 and 119 of the Act (subparts E and G, respectively),
and to loans guaranteed pursuant to subpart M.
[53 FR 34456, Sept. 6, 1988, as amended at 61 FR 11477, Mar. 20, 1996; 72 FR 12536,
Mar. 15, 2007]
§570.601 Public Law 88-352 and Public Law 90-284;affirmatively furthering fair
housing; Executive Order 11063.
(a) The following requirements apply according to sections 104(b) and 107 of the Act:
(1) Public Law 88-352, which is title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.), and implementing regulations in 24 CFR part 1.
(2) Public Law 90-284, which is the Fair Housing Act (42 U.S.C. 3601-3620). In
accordance with the Fair Housing Act, the Secretary requires that grantees administer all
programs and activities related to housing and urban development in a manner to
affirmatively further the policies of the Fair Housing Act. Furthermore, in accordance with
section 104(b)(2) of the Act, for each community receiving a grant under subpart D of this
part, the certification that the grantee will affirmatively further fair housing shall specifically
require the grantee to take meaningful actions to further the goals identified in the
Lakeville Subrecipient Agreement Exhibit C
Page 28 of 36
grantee's AFH conducted in accordance with the requirements of 24 CFR 5.150 through
5.180 and take no action that is materially inconsistent with its obligation to affirmatively
further fair housing.
(b) Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-1963
Comp., p. 652; 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing), and
implementing regulations in 24 CFR part 107, also apply.
[61 FR 11477, Mar. 20, 1996, as amended at 80 FR 42368, July 16, 2015]
§570.602 Section 109 of the Act.
Section 109 of the Act requires that no person in the United States shall on the grounds of
race, color, national origin, religion, or sex be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity receiving
Federal financial assistance made available pursuant to the Ac t. Section 109 also directs
that the prohibitions against discrimination on the basis of age under the Age
Discrimination Act and the prohibitions against discrimination on the basis of disability
under Section 504 shall apply to programs or activities rec eiving Federal financial
assistance under Title I programs. The policies and procedures necessary to ensure
enforcement of section 109 are codified in 24 CFR part 6.
[64 FR 3802, Jan. 25, 1999]
§570.603 Labor standards.
(a) Section 110(a) of the Act contains labor standards that apply to nonvolunteer labor
financed in whole or in part with assistance received under the Act. In accordance with
section 110(a) of the Act, the Contract Work Hours and Safety Standards Act (40 U.S.C.
327 et seq.) also applies. However, these requirements apply to the rehabilitation of
residential property only if such property contains not less than 8 units.
(b) The regulations in 24 CFR part 70 apply to the use of volunteers.
[61 FR 11477, Mar. 20, 1996]
§570.604 Environmental standards.
For purposes of section 104(g) of the Act, the regulations in 24 CFR part 58 specify the
other provisions of law which further the purposes of the National Environmental Policy Act
of 1969, and the procedures by which grantees must fulfill their environmental
responsibilities. In certain cases, grantees assume these environmental review,
decisionmaking, and action responsibilities by execution of grant agreements with the
Secretary.
[61 FR 11477, Mar. 20, 1996]
Lakeville Subrecipient Agreement Exhibit C
Page 29 of 36
§570.605 National Flood Insurance Program.
Notwithstanding the date of HUD approval of the recipient's application (or, in the case of
grants made under subpart D of this part or HUD-administered small cities recipients in
Hawaii, the date of submission of the grantee's consolidated plan, in accord ance with 24
CFR part 91), section 202(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106)
and the regulations in 44 CFR parts 59 through 79 apply to funds provided under this part
570.
[61 FR 11477, Mar. 20, 1996]
§570.606 Displacement, relocation, acquisition, and replacement of housing.
(a) General policy for minimizing displacement. Consistent with the other goals and
objectives of this part, grantees (or States or state recipients, as applicable) shall assure
that they have taken all reasonable steps to minimize the displacement of persons
(families, individuals, businesses, nonprofit organizations, and farms) as a result of
activities assisted under this part.
(b) Relocation assistance for displaced persons at URA levels. (1) A displaced person
shall be provided with relocation assistance at the levels described in, and in accordance
with the requirements of 49 CFR part 24, which contains the government -wide regulations
implementing the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA) (42 U.S.C. 4601-4655).
(2) Displaced person. (i) For purposes of paragraph (b) of this section, the term “displaced
person” means any person (family, individual, business, nonprofit organization, or farm)
that moves from real property, or moves his or her personal property from real property,
permanently and involuntarily, as a direct result of rehabilitation, demolition, or acquisition
for an activity assisted under this part. A permanent, involuntary move for an assisted
activity includes a permanent move from real property that is made:
(A) After notice by the grantee (or the state recipient, if applicable) to move permanently
from the property, if the move occurs after the initial official submission to HUD (or the
State, as applicable) for grant, loan, or loan guarantee funds under this part that are later
provided or granted.
(B) After notice by the property owner to move permanently from the property, if the move
occurs after the date of the submission of a request for financial assistance by the property
owner (or person in control of the site) that is later approved for the requested activity.
(C) Before the date described in paragraph (b)(2)(i)(A) or (B) of this section, if either HUD
or the grantee (or State, as applicable) determines that the displacement directly resulted
from acquisition, rehabilitation, or demolition for the requested activity.
Lakeville Subrecipient Agreement Exhibit C
Page 30 of 36
(D) After the “initiation of negotiations” if the person is the tenant-occupant of a dwelling
unit and any one of the following three situations occurs:
(1) The tenant has not been provided with a reasonable opportunity to lease and occupy a
suitable decent, safe, and sanitary dwelling in the same building/complex upon the
completion of the project, including a monthly rent that does not exceed the greater of the
tenant's monthly rent and estimated average utility costs before the initiation of
negotiations or 30 percent of the household's average monthly gross income; or
(2) The tenant is required to relocate temporarily for the activity but the tenant is not
offered payment for all reasonable out-of-pocket expenses incurred in connection with the
temporary relocation, including the cost of moving to and from the temporary location and
any increased housing costs, or other conditions of the temporary relocation are not
reasonable; and the tenant does not return to the building/complex; or
(3) The tenant is required to move to another unit in the building/complex, but is not offered
reimbursement for all reasonable out-of-pocket expenses incurred in connection with the
move.
(ii) Notwithstanding the provisions of paragraph (b)(2)(i) of this section, the term “displaced
person-” does not include:
(A) A person who is evicted for cause based upon serious or repeated violations of
material terms of the lease or occupancy agreement. To exclude a person on this basis,
the grantee (or State or state recipient, as applicable) must determine that the evict ion was
not undertaken for the purpose of evading the obligation to provide relocation assistance
under this section;
(B) A person who moves into the property after the date of the notice described in
paragraph (b)(2)(i)(A) or (B) of this section, but who received a written notice of the
expected displacement before occupancy.
(C) A person who is not displaced as described in 49 CFR 24.2(g)(2).
(D) A person who the grantee (or State, as applicable) determines is not displaced as a
direct result of the acquisition, rehabilitation, or demolition for an assisted activity. To
exclude a person on this basis, HUD must concur in that determination.
(iii) A grantee (or State or state recipient, as applicable) may, at any time, request HUD to
determine whether a person is a displaced person under this section.
(3) Initiation of negotiations. For purposes of determining the type of replacement housing
assistance to be provided under paragraph (b) of this section, if the displacement is the
direct result of privately undertaken rehabilitation, demolition, or acquisition of real
property, the term “initiation of negotiations” means the execution of the grant or loan
agreement between the grantee (or State or state recipient, as applicable) and the person
owning or controlling the real property.
Lakeville Subrecipient Agreement Exhibit C
Page 31 of 36
(c) Residential antidisplacement and relocation assistance plan. The grantee shall comply
with the requirements of 24 CFR part 42, subpart B.
(d) Optional relocation assistance. Under section 105(a)(11) of the Act, the grantee may
provide (or the State may permit the state recipient to provide, as applicable) relocation
payments and other relocation assistance to persons displaced by activities that are not
subject to paragraph (b) or (c) of this section. The grantee may also provide (or the State
may also permit the state recipient to provide, as applicable) relocation assistance to
persons receiving assistance under paragraphs (b) or (c) of this section at levels in excess
of those required by these paragraphs. Unless such assistance is provided under State or
local law, the grantee (or state recipient, as applicable) shall provide such assistance only
upon the basis of a written determination that the assistance is appropriate (see, e.g., 24
CFR 570.201(i), as applicable). The grantee (or state recipient, as applicable) must adopt
a written policy available to the public that describes the relocation assistance that the
grantee (or state recipient, as applicable) has elected to provide and that provides for
equal relocation assistance within each class of displaced persons.
(e) Acquisition of real property. The acquisition of real property for an assisted activity is
subject to 49 CFR part 24, subpart B.
(f) Appeals. If a person disagrees with the determination of the grantee (or the state
recipient, as applicable) concerning the person's eligibility for, or the amount of, a
relocation payment under this section, the person may file a written appeal of that
determination with the grantee (or state recipient, as applicable). The appeal procedures to
be followed are described in 49 CFR 24.10. In addition, a low- or moderate-income
household that has been displaced from a dwelling may file a written request for review of
the grantee's decision to the HUD Field Office. For purposes of the State CDBG program,
a low- or moderate-income household may file a written request for review of the state
recipient's decision with the State.
(g) Responsibility of grantee or State. (1) The grantee (or State, if applicable) is
responsible for ensuring compliance with the requirements of this section, notwithstanding
any third party's contractual obligation to the grantee to comply with the provisions of this
section. For purposes of the State CDBG program, the State shall require state r ecipients
to certify that they will comply with the requirements of this section.
(2) The cost of assistance required under this section may be paid from local public funds,
funds provided under this part, or funds available from other sources.
(3) The grantee (or State and state recipient, as applicable) must maintain records in
sufficient detail to demonstrate compliance with the provisions of this section.
(Approved by the Office of Management and Budget under OMB control number 2506 -0102)
[61 FR 11477, Mar. 20, 1996, as amended at 61 FR 51760, Oct. 3, 1996]
Lakeville Subrecipient Agreement Exhibit D
Page 32 of 36
EXHIBIT D TO SUBRECIPIENT AGREEMENT
Dakota County CDBG Request for Reimbursement Form
From: City/Township of Date:
Please complete the appropriate sections. The Dakota County CDA will fill in the shaded areas. Please use separate
request forms for each activity or service period.
Reimbursement for the following activities is being requested from the CDBG Program:
Name of Project/Activity
Program
(Fiscal)
Yr.
Amount
Requested
Dates of Service
(start/end) CDA Account Number
Do you have program income (i.e., revolving account) to draw first for this activity? Yes No
Do you have other funding sources that are being combined with the CDBG funds? Yes No
If yes, please indicate the source(s) and amount(s):
Documentation to support Request for Reimbursement: You must attach all appropriate documentation to
support this request (i.e. staff hours and rate of pay, invoices for work completed, copies of plans, etc.)
Timesheets
(# of hours, rate of pay, etc.)
Invoices / Proof of Payment
(copies of checks, receipts, etc. )
Completed product
(i.e. plan, study, survey)
The following chart is for DIRECT BENENFIT ACTIVITIES (housing or public service activities). Please report
the demographic information of those served during the dates of service listed above. If you are reporting a
HOUSING activity, please report in number of HOUSING UNITS. If you are reporting a PUBLIC SERVICE
activity, please report in number of PEOPLE.
DO NOT COMBINE DATA FROM MORE THAN ONE ACTIVITY OR SERVICE DATES
DEMOGRAPHICS Ethnicity Income Level
Race Hispanic Non-
Hispanic
Very Low
(0-30%)
Low
(31-50%)
Moderate
(51-80%)
Above L/M
(81% +)
White
Black/African American
Black/African American & White
Asian
Asian & White
American Indian or Alaskan Native
American Indian/Alaskan & White
American Indian/Alaskan & Black
Native Hawaiian/Other Pacific Islander
Other
TOTALS (Ethnicity = Income Level)
Number of Female-headed Households = Percent as Low/Mod Income =
Number of clients new to program= Number of clients with improved access =
Prepared by: Approved by:
Program Administrator City or Township Finance Officer
Lakeville Subrecipient Agreement Exhibit E
Page 33 of 36
EXHIBIT E TO SUBRECIPIENT AGREEMENT
PROGRAM INCOME REUSE POLICY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Dakota County, Minnesota
A. Purpose.
This policy establishes procedures for the administration and utilization of program income received
as a result of activities funded under the federal Community Development Block Grant (CDBG)
Program. This policy addresses the requirements of 24 CFR 570.489(e)(3). The Dakota County
Community Development Agency is hereinafter referred to as the "Subgrantee", and each cooperating
jurisdiction is hereinafter referred to as a "Subrecipient".
B. Definition.
Program income is the gross income received by the Subgrantee that was generated from the use of
CDBG funds. For activities generating program income that were only partially funded with CDBG
funds, such income is prorated to reflect the actual percentage of CDBG funds used. Examples of
program income include:
• Payments of principal and interest on loans made using CDBG funds;
• Net proceeds from the disposition by sale or long-term lease of real property purchased or
improved with CDBG funds;
• And interest earned on funds held in a revolving fund account.
C. Activities.
Program income in Dakota County will only be used for eligible CDBG activities that meet a national
objective as specified in 24 CFR 570.482 and 570.483.
D. Distribution.
Program income in Dakota County will be classified and distributed within one of two general types of
accounts:
• Revolving Fund (RF) Account
• Non-revolving Income (NI) Account
The RF Accounts are typically established for ongoing program activity, such as housing rehab or
economic development. The NI Accounts are established from non-revolving program income, such
as funds from land disposition or repayments from land acquisition that doesn't result in a
low/moderate income activity.
E. Revoking Fund Account.
Dakota County CDA will deposit program income from either housing rehab, economic development
or downpayment assistance that is administered by the Subgrantee into corresponding Revolving
Fund (RF) Accounts as follows:
1. Program income generated from CDBG funds allocated to a Subrecipient will be deposited
into a separate RF Account for that same individual Subrecipient; or
2. Program income generated from CDBG funds allocated to a countywide activity will be
deposited into a separate corresponding "Countywide" RF Account.
3. Check and/or reimbursement requests related to an activity assigned to a RF Account will be
drawn first from that account prior to an entitlement account.
Lakeville Subrecipient Agreement Exhibit E
Page 34 of 36
Subrecipients also have the ability to establish Revolving Fund Accounts for local CDBG activities
upon written approval of the Subgrantee. These accounts will require formal reporting during each
fiscal year as required by the Subgrantee.
F. Non-revolving Income Account.
Dakota County will deposit all program income that is not assigned to a Revolving Fund Account to a
Non-revolving Income (NI) Account as follows:
1. Program income generated from CDBG funds allocated to a Subrecipient will be returned
immediately to the Subgrantee, which will be deposited into one corresponding Subrecipient
NI Account (i.e., Burnsville NI Account). Check and/or reimbursement requests from a
Subrecipient that cannot be paid from a RF Account will first be drawn from a NF Account, if
existing, prior to drawing funds from an entitlement account.
2. Program income generated from CDBG funds allocated to a Subgrantee countywide activity
will be deposited into one Subgrantee NI Account (i.e., CDA NI Account). Check and/or
reimbursement requests related to a county-wide activity that cannot be paid from a RF
Account will first be drawn from a NI Account, if existing, prior to drawing funds from a county-
wide entitlement account.
3. The Subrecipient or Subgrantee retains the option of amending an existing CDBG activity (or
activities) to increase its budget equal to the amount of program income within its NI Account,
or it can amend the county's Annual Action Plan to include a new CDBG-eligible activity.
4. If no draws are made from a Subrecipient’s NI Account within twelve (12) months of
establishing that account, it may be transferred to a Subgrantee NI Account for distribution to
eligible countywide activities.
G. Account Dissolution.
Dissolving either Revolving Fund or Non-revolving Income Accounts shall be completed as follows:
1. A Subrecipient's RF Account may be dissolved if that account will receive no further income
based on evidence from the Subrecipient or Subgrantee. The Subrecipient must submit a
written request to the Subgrantee prior to final dissolution action. CDBG funds remaining in a
Subrecipient's RF Account to be dissolved must be transferred to a new or existing NI Account
of that same Subrecipient.
2. A Subgrantee's RF Account may be dissolved if that account will receive no further income
based on evidence from the Subgrantee. CDBG funds remaining in the Subgrantee's RF
Account to be dissolved must be transferred to a new or existing NI Account of the
Subgrantee.
3. In some cases, a Subrecipient or Subgrantee may want to transfer fund balances from a RF
Account that is still receiving income. If no further expenditures are planned for that activity, a
partial transfer may be permitted. Subrecipients must submit a written request to the
Subgrantee, including the requested amount of transfer, which will go from its RF Account to
its existing or newly created NI Account.
4. A Subrecipient's NI Account may be dissolved based on Section F.4. of this Policy.
Adopted by the Dakota County CDA Board on April 13, 2004.
Lakeville Subrecipient Agreement Exhibit F
Page 35 of 36
EXHIBIT F TO SUBRECIPIENT AGREEMENT
CDBG CONTINGENCY PLAN
TIMELINESS OF EXPENDITURES
Dakota County, Minnesota
The following plan was developed in order to spend Community Development Block Grant
(CDBG) funds in a timely manner. HUD reviews the performance of Dakota County as an
entitlement urban county each year. Sixty (60) days prior to the end of a grantee’s program
year, the amount of non-disbursed CDBG funds cannot be more than 1.5 times the
entitlement grant for its current program year. The 60-day time for Dakota County is May 2.
A contingency plan is beneficial in order to assess whether this county can make efforts to
spend CDBG funds if early indications show expenditure problems within any of the larger
cities’ pool or the countywide pool of activities.
The following steps should be taken in the order shown during a program year for Dakota
County, which is July 1 through June 30:
1. Six-Month Review. By November 1, CDA staff will do the following:
• Identify each Subrecipient’s balance of unspent CDBG funds.
o A notice should be sent to each Subrecipient that shows an individual listing of
unfinished activities and corresponding fund balances.
• Meet individually with each Subrecipient, as deemed necessary, to discuss timely
expenditure issues.
• Provide a status report to all Subrecipients on the countywide and individual city
revolving accounts for housing rehab (including a forecast of program income for the
next six months).
2. Four-Month Review. By January 1, CDA staff will do the following:
• Make a preliminary determination whether a Subrecipient will meet its own timeliness
ratio of 1.5 by May 1.
• Make a determination on how much rehab funding will remain unspent by May 1.
These conclusions will be shared with the Subrecipient as a basis for possible
reallocation of funds.
• Initiate amendments to the annual Action Plan for Dakota County in order to reallocate
CDBG funding to activities that can spend those funds by May 1.
o The plan amendment will be based on the following:
(a) Written approval from the Subrecipient that will transfer CDBG funds from its
allocation to another city or countywide activity; and
(b) Written verification, including an activity timeline, from the recipient of any
reallocated funding that the additional CDBG funds can be spent and
reimbursement submitted by April 15.
Lakeville Subrecipient Agreement Exhibit F
Page 36 of 36
Transfer of CDBG Funds
Should a jurisdiction not be able to meet the timeliness requirement, the transferring of CDBG
funds from one activity to another will be accomplished according to the following p rocedures:
• Transfer funds from one activity to another within a jurisdiction (city or township);
• Transfer funds from a countywide activity to another countywide activity; or
• Transfer funds from one jurisdiction to another jurisdiction, including to or fro m the
countywide pool.
The combined impact of the transfer options must attain an expenditure rate at or below 1.5
by May 2 for Dakota County. If this can be achieved by implementing one or both of the first
two options, then the final option will not be needed. However, if all three options need to be
implemented, then some jurisdictions will lose the one-time specified amount, not to be
replaced and some will gain one-time funds in order to avoid HUD penalties imposed on the
county.
It is possible that a jurisdiction will have more than 1.5 times its current CDBG allocation
unspent by January 1, and yet, it will not agree to transfer funds to another activity. Under
that circumstance, the CDA reserves the right to take steps necessary to transfer fu nds in
excess of the 1.5 ratio.
5. Two-Month Review. By March 1, the CDA will determine whether any further
amendments are necessary to transfer CDBG funds. This may be necessary to
accommodate a new activity that was recently identified for immediate expenditure (assuming
CDBG eligibility).
6. One-Month Review. By April 1, the CDA will do a final check to ensure all cities are
working towards completion of all activity expenditures that are pending within the May 1
timeframe. Reimbursement requests should be submitted to the CDA no later than April 15.