Appropriations Update
The House and Senate have been in recess since late July but will return next week to attempt to pass – you guessed it – a Continuing Resolution (CR) to keep federal agencies operating beyond September 30, the last day of the federal fiscal year.
Both chambers have made good progress in moving their 12 spending bills forward – including the FY24 Transportation-HUD (THUD) measure. The House Appropriations Committee marked up and passed its THUD bill on July 18 with the Senate Appropriations Committee passing their THUD measure on July 20. This is the first time in five years the Senate Appropriations Committee managed to pass all 12 spending bills before the August recess. There are some discrepancies between the House and Senate versions, however, which must be worked out before final approval.
House FY24 THUD Measure Highlights
- Fully funds the CDBG program at $3.3 billion.
- Sharply reduces funding for the HOME program to $500 million ($1 billion decrease).
- Maintains funding for all rental assistance programs. Fully renews all Section 8 vouchers and project-based contracts.
- Fully funds Homeless Assistance Grants (CoC and ESG).
Senate FY24 THUD Measure Highlights
- Fully funds the CDBG program at $3.3 billion.
- Fully funds the HOME program at $1.5 billion.
- Maintains funding for all rental assistance programs. Provides funding for 4,000 new housing vouchers for youth aging out of foster care and for homeless veterans.
- Increases funding for Homeless Assistance Grants to $3.9 billion ($275 million increase above FY23 – ESG remains level funded).
- Provides $100 million for the YIMBY program (CDBG PRO Housing Program) ($15 million increase above FY23). The competitive grant program provides funds to communities to address zoning and land use laws that inhibit affordable housing development.
Congressional leaders, House Speaker Kevin McCarthy (R-CA) and Senate Majority Leader Chuck Schumer (D-NY), agree that a CR must be passed by September 30 to allow for more time to finish the spending bills. The CR will likely extend into December. On August 10, the Administration submitted a supplemental funding request to Congressional leaders seeking additional funding for disaster relief, the Ukrainian war effort, and border needs. Congress will likely attach this supplemental funding request to the CR.
Treasury Issues Interim Final Rule on Use of Recovery Funds for Community Development
Earlier this month, the U.S. Treasury issued an interim final rule that allows state and local governments to use their coronavirus fiscal recovery funds to respond to natural disasters and support community development projects. The American Rescue Plan provided $350 billion in Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to state, local, tribal, and territorial governments to address and recover from COVID-19. The FY23 Consolidated Appropriations Act passed by Congress last December directed the Treasury allow the use of the funds for natural disasters, community development, and infrastructure. All CDBG program activities would be eligible. There are some restrictions, however, SLFRF recipients can only use the greater of 30% or $10 million of their SLFRF dollars for CDBG activities. Recipients must obligate the funds by December 31, 2024, and expend the funds by September 30, 2026. The Treasury is seeking public feedback on the interim final rule implementing these new flexibilities. Please review the rule and submit your comments to vwatson@ncdaonline.org and bgehret@ncdaonline.org by October 6.
Department of Labor Releases Davis-Bacon Final Rule
The Department of Labor published a final rule in the Federal Register yesterday updating the Davis-Bacon and Related Acts (DBRA) wage regulations. The rule is expected to be published in the Federal Register very soon. The rule will take effect on October 30, 2023.
The Davis-Bacon Act requires the payment of minimum prevailing wages on federal construction contracts over $2,000. The Copeland Act (Related Acts) requires contractors working on federal Davis-Bacon projects to submit weekly certified payrolls. The Department of Labor is tasked with determining the wage rates, recordkeeping and enforcement policies of the DBRA. The Department released a chart which provides the final rule changes. The Department of Labor will hold webinars on September 13 and September 14 on the final rule changes.
HUD Releases CDBG Cost Allocation Notice
On August 24, HUD released a CPD notice that provides guidance on the allocation of staff costs between program administration costs and activity costs for the CDBG program.
NCDA Surveys – We Need Your Input!
Member service is very important to NCDA. We have developed two very short surveys to help us with in planning of future webinars and improve the Online Forum. First, we want to hear from you regarding topics for future NCDA webinars. Please go here to complete a quick 3-minute survey to help us design our upcoming webinar schedule. Second, we need to hear from you on how we can improve the Online Forum to increase member use. Please go here to complete a very short survey.
BABA Webinar Recording and Slides Available
On August 29, NCDA and the Council of State Community Development Agencies hosted a joint webinar on the Build America, Buy America requirements. HUD Office of Community Planning and Development (CPD) staff provided an overview of BABA and the preference requirements for CPD programs. Please view the presentation slides and webinar recording for more information.
Webinar Highlights:
- BABA requires that all iron, steel, manufactured materials, and construction materials purchased for federally funded infrastructure projects be made in America.
- The Office of the Chief Financial Officer is leading the BABA efforts for HUD.
- HUD is finalizing department-wide guidance and a project-specific waiver process.
- Currently BABA only applies to CDBG formula grants obligated on or after November 15, 2022, and only for iron and steel purchased for infrastructure projects.
- For projects with a total cost of $250,000 or less the BABA requirements are waived.
- All FY23 CDBG grant agreements contain BABA language that grantees can use to incorporate into subrecipient agreements (see slide 24).
- BABA will apply to the HOME program beginning on August 23, 2024.
- BABA will apply to other HUD programs (including the Homeless Assistance Grants) in a phased implementation schedule beginning February 22, 2024. Please see the slides for more information.
- BABA does not apply to disaster or emergency funding uses.
- Please email your BABA questions to cpdbaba@hud.gov
CDBG is Turning 50!
Our signature program is turning 50 next year. Born out of the tumult of the 1970’s, the CDBG program was created through the Housing and Community Development Act signed into law on August 22, 1974. NCDA and COSCDA have been meeting with CDBG Coalition member organizations throughout August to start planning events. NCDA wants to ensure members weigh in on the celebration so please send your ideas for CDBG 50th anniversary events to vwatson@ncdaonline.org.
Call for Session Ideas for the NCDA 2024 Winter Conference
The NCDA 2024 Winter Legislative and Policy Conference will take place January 31-February 2, 2024, in Washington, DC. We want you to add your voice and expertise to the conference! What new ideas, best practices, or insights would you like to share with your community development peers? To make the agenda more relevant and appealing to community development professionals, we’re inviting you to submit a proposal for a session topic. Tap your interests, expertise, and network to propose a session that’s meaningful to you. Provide a title and concise description of the session and submit it to mesbjerg@ncdaonline.org. The conference participants will include a mix of CDBG, HOME, and HUD homelessness assistance grantees.
Upcoming NCDA Training
Subrecipient Management Basics – Live
September 5-28, 2023
Tuesday/Thursday; 2:00-4:30 pm EDT
Register here
IDIS Basics – Live Online
October 3-26, 2023
Tuesday/Thursday; 2:00-4:30 pm EDT
Register here
HOME Advanced + Underwriting
October 2-4, 2023
Saint Paul, MN
Register here
CDBG Advanced + Underwriting
October 11-13, 2023
Dubuque, IA
Register here
CDBG Advanced + Underwriting
October 18-20, 2023
Walla Walla, WA
Register here
HOME Basics – Live Online
November 7 – December 7, 2023
Tuesday/Thursday; 2:00-4:30 pm EST
No sessions the week of Thanksgiving
Register here
Save the Date!
NCDA 2024 Winter Conference
January 31-February 2
Washington, DC
Registration will open in October!
