Section 4.10 Grantee Contractual Requirements

Grant Administration: Section 4.10 Grantee Contractual Requirements

In accordance with RSA 162-L:16, I, CDFA and the grantee shall enter into contractual relationships which shall contain provisions that:

● Govern the use of CDBG funds and project activities which shall state that:

1. The grantee shall comply with all applicable federal, state and municipal laws, regulations, rules, codes, orders, ordinances or standards issued pursuant to those laws as well as with any lawful direction(s) of a public officer(s);

2. The grantee shall require each sub recipient, contractor and/or subcontractor to comply with the requirements in (1);

3. In the performance of the project activities, the grantee shall be an independent contractor and shall not be considered by CDFA as an agent or employee of the CDFA;

4. Neither the grantee, its agents or employees, shall be entitled to any benefits, workers compensation or any profit or gain arising from the project;

5. The grantee shall provide the personnel needed either to directly perform the project activities or to supervise its:
a. Sub recipient(s);
b. Contractor(s); and
c. Subcontractor(s);

6. The grantee shall warrant that such personnel used to perform each activity shall be:
a. Professionally competent;
b. Qualified;
c. Properly licensed; and
d. Not employed by the subrecipient, contractor, or subcontractor

7. The grantee shall not employ nor shall it permit any sub recipient, contractor or subcontractor to employ, any elected state officials or state employees with project funds;

8. The grantee shall include such provisions in the contracts it negotiates with its sub recipient(s) and contractor(s) which are relevant in order to protect the interest of the State of New Hampshire, and/or required by federal or state law, rules or regulations;

9. The grantee shall submit a copy of its contract form to be approved by CDFA for consistency with all laws, rules and regulations, before executing any contract(s);

10. The grantee shall give CDFA at least 5 working days’ notice of any preconstruction conference so that CDFA can attend and participate;

11. The grantee shall not assign or transfer any interest in the project;

12. No data produced in whole or in part with CDBG funds shall be subject to copyright in the United States or in any other country;

13. The grantee shall defend, indemnify and hold the state, its officers and employees harmless for any losses suffered or for any claims asserted against the state arising from the acts or omissions of the grantee, its officers, employees or subcontractors;

14. If the grantee seeks to change an activity(ies) representing 10 percent or less of the grant’s original value, the grantee shall submit a written request for a contract revision to the CDFA;

15. The executive director shall consider the request and shall approve if the benefited cost is eligible under the federal act, federal regulations, state law or state administrative rules or deny the request in writing if it is not eligible;

16. If the grantee seeks to change an activity(s) by more than 10 percent of the grant’s original value, the chief executive officer of the grantee municipality or county shall submit a written request for a contract amendment to the CDFA;

17. The executive director shall consider the request and shall, in writing, deny the request if the transfer is not eligible under the federal act, federal regulations, state law or state administrative rules or if eligible shall submit a proposed contract amendment to the governor and executive council for their approval;

18. If the grantee seeks a contract amendment under (16) that involves more than 25 percent of the grant’s original value, the grantee shall hold a public hearing, to solicit public comment on the proposed amendment, in accordance with RSA 162-L:14;

19. CDFA shall provide a planned payment schedule for:
a. Project costs;
b. Progress and financial reports;
c. Completion, closeout and audit reports; and
d. Any other provisions which the department of justice shall require;

20. Cash advances by CDFA to a grantee shall be approved only:
a. To the extent necessary to satisfy the grantee’s immediate cash requirements for the project; and
b. If their timing and amount shall coincide as closely as possible with the grantee’s actual disbursements; and

21. Cash advances by the grantee to a subrecipient or contractor shall conform to the same standards in (20);
a. Require the grantees and their subrecipients to also adhere to the following requirements:
● The “Lead Paint Poisoning Prevention and Control Act” set forth in RSA 130-A and rules in He-P 1600; and
● That prior to the effective date of the grant agreement, a recipient may obligate and spend local funds for:
a) Environmental assessment;
b) Planning and capacity building;
c) Engineering and design costs associated with an activity;
d) The provision of information and other resources to residents; and
e) For relocation and/or acquisition activities;

● That after the effective date of the grant agreement, the recipient shall be reimbursed with funds to cover those costs specified in (2), provided such locally funded activities were in compliance with the federal act;

● That CDBG grant funds shall not be obligated prior to the effective date of the grant period or after its completion date without the prior written approval of CDFA in order to ensure compliance with the federal act;

● That grantees shall only use CDBG funds for projects costs deemed allowable in accordance with 2 CFR 200 Subpart E-Cost Principles;

● That non-profit subrecipients shall only use CDBG funds for project costs deemed allowable in accordance with 2 CFR 200, “Cost Principles for Nonprofit Organizations;”

● That grantees shall maintain a financial management system which complies with 2 CFR 200 Subpart D and 24 CFR 570.;

● That grantees shall comply with the procurement requirements set forth in 2 CFR 200.318 through 2 CFR 200.323;

● That grantees shall comply with the conflict of interest provisions set forth in 2 CFR 200.112 for the procurement of the following:
a) Supplies;
b) Equipment;
c) Construction; and
d) Services.

● That grantees shall comply with the conflict of interest provisions set forth in 24 CFR 570.489(h) in all other cases not specified in (9), such as, but not limited to:
a) The acquisition and disposition of real property; and
b) The provision of CDBG assistance to persons, households or businesses; and

22. That grantees shall, if applicable, develop a program design for the rehabilitation of housing including, but not limited to, the following:
a. Plans for grant administration;
b. Verification of household income levels;
c. Structural inspections;
d. Funding mechanisms for eligible households;
e. Payment schedules; and
f. Program outreach and marketing; and

23. Govern the use of CDBG funds upon completion of the project by requiring the grantee, its subrecipient and CDFA to enter into a project closeout agreement pursuant to RSA 162-L:16 which requires that:
1. The CDBG grant be closed out;
2. Proceeds from the sale of personal property comply with 2 CFR 200 for equipment and supplies;
3. Proceeds from the sale of real property comply with 24 CFR 570.489(j) and 2 CFR 200;
4. Outstanding obligations as of the completion date:
a. Be paid or otherwise resolved within 90 days;
b. Be related to goods or services provided during the grant period;
c. Be for reasonable costs associated with grant closeout, such as audits and final reports; and
d. Be eligible to be incurred for up to 90 days after the completion date;
5. Disallowed and unspent CDBG funds be awarded to other municipalities or counties as part of the normal competition process, or to those applicants who applied in the same grant year;
6. Proceeds from program income comply with 24 CFR 570.489(e);
7. low and moderate income persons and households; and
8. Any other conditions that exists in the contractual relationship that are applicable after completion of the project, be described in the closeout agreement.