Community Development Block Grant CDBG Subrecipient Training 2021

Community Development Block Grant (CDBG) Subrecipient Training 2021 February 10 th @ 10: 00 -11: 30 AM Construction & Davis Bacon Act

Training Purpose • Provide CDBG Sub-recipients with information to ensure compliance with CDBG agreement and applicable rules and regulations. • Provide info to define expectations and procedures for receiving reimbursement.

Training Overview • Documents to submit to the City • Labor Standards for CDBG/HOME • Davis Bacon Wage Rate • SAM system • Request For Payment • Beneficiary data

Documents to Submit to the City Construction Project: • Bid package prepared by a qualified professional • Bid Notices/RFP/RFQ including Davis Bacon language. Bid opening & award. • Contract(s) for construction, including Davis Bacon language and wage determinations

Requesting CDBG Funds • City generally pays on a reimbursement basis. • Sub-recipients submit a completed “Request for Payment” form. Back-up documentation include: o Contractor invoices for materials o Contractor weekly labor payrolls subject to Davis Bacon wage rates and fringe benefits o Proof of contractor payment (copy of cancelled checks or credit card or bank statement) • Payment from City should be received within 2 -3 weeks of a completed and accurate submission.

Subrecipient Responsibilities • • Determine “prevailing wages” Include Davis Bacon language and wage determinations in Bid/RFP documents and contracts (Davis Bacon applies to contractors and all subcontractors) • Bring a Project Manager on board • Prepare a bid package, undergo a bidding process, bid award • Project Manager should review Certified Payrolls • Perform oversight function and conduct contractor employee interviews

City of Bethlehem Responsibilities • Complete the activity’s environmental review • Retains the authority to investigate, monitor, and enforce DBA requirements • Conducts compliance audits with the Subrecipient and contractors • Investigates potential violations or complaints • Reviews certified payrolls submitted o Withhold CDBG payments from Subrecipients not in compliance with Davis Bacon o Issue payment

The Davis-Bacon Act (DBA) • Requires the payment of prevailing wage rates to all laborers and mechanics on Federal government construction projects in excess of $2, 000. • Construction includes alteration and/or repair, including, painting and decorating of public buildings or works.

DBA Applicability for CDBG Key Points of Applicability for CDBG Program: • Construction contracts over $2, 000 • Construction work financed in whole or in part…(If CDBG funds are used to finance only a portion of the construction work, labor standards are applicable to the entire construction work) • All laborers and mechanics employed by contractors or subcontractors • Soft costs generally do not trigger Davis-Bacon • CDBG: Residential property having 8 or more CDBG funded units.

DBA Applicability for HOME: Residential property having 12 or more HOME-assisted units. If there are 12 or more HOME assisted units, Davis Bacon wage rates are applicable to the entire project including nonconstruction activities such as architect and engineering fees.

What is SAM? • The System for Award Management (SAM) (https: //www. sam. gov) serves as a central registration point for government contractors. • Any company that would like to do business with the federal government, or needs to report subcontract information, must register on the System for Award Management (SAM).

How to Register on SAM There is no fee to register on SAM. To begin the SAM registration process, a company must go to https: //www. sam. gov, create a user account, and click “Register/Updated Entity”. The following information will be required for your registration: • Employer Identification Number (EIN) • DUNS Number - A DUNS number is a nine-digit identification number for each physical location of your business. DUNS is provided free at https: //fedgov. dnb. com/webform. • North American Industry Classification System (NAICS) Code(s). You can search for the appropriate NAICS code by keyword on the Census website here: https: //www. census. gov/eos/www/naics/.

Wage Rate Determinations • • Access beta. sam. gov and select “Wage Determinations” Select the state, county, and choose construction type. Click on the Search Results link Choose the appropriate wage classifications and rates for the work to be performed. (HINT: Use CTRL+F to search for work type – electrician, plumber, etc. )

Construction Types There are four basic types of construction… Residential: Buildings that contain residential units that are 4 stories or below. Building: Buildings that contain residential units over 4 stories or are commercial use. Highway: Construction on surfaces that control the flow of vehicular or pedestrian traffic. Heavy: Construction of things that do not fit in the previous 3 categories.

WAGE DECISION “LOCK-IN” Competitively Bid Contracts • Lock-in on bid opening date provided contract is awarded within 90 days. • Must update wage decision if contract is awarded more than 90 days after bid opening. • Modifications published less than 10 days before bid opening are not applicable if there is insufficient time to notify bidders.

Certified Payrolls • • • Required by DOL – recommend WH-347 Contractors must pay employees weekly Payrolls must be numbered and dated correctly Contractors must send original certified payroll to the grant subrecipient Project manager should review the certified payrolls If work is not completed, the contractor should still submit a certified payroll with no work noted for that week • Subrecipient shall submit original certified payrolls to the City along with Request For Payment form when submitting a request for funds.

Payroll Submission Contacts Submit your weekly payrolls to BOTH: 1. Jennifer Swett, Compliance Officer jswett@Bethlehem-pa. gov 2. Tina Roseberry, Housing & Community Development Administrator croseberry@Bethlehem-pa. gov, 610 -997 -5731

Completing Payroll Ask yourself… • Has the contractor paid the correct rate for that work classification? • Has the contractor paid appropriate fringe benefits or provided details on how fringe benefits are used? • Has the contractor’s Certifying Officer signed each weekly payroll? **There is a backside to the payroll form! It must be filled out.

Typical DBA Problems 1. An incorrect wage determination is being used. 2. Misclassification of laborers and mechanics. 3. Failure to pay full prevailing wage, including fringe benefits, for all hours worked (including overtime hours). 4. Inadequate recordkeeping, such as not counting all hours worked or not recording hours worked by an individual in two or more classifications during a day. 5. Failure to submit certified payrolls weekly. 6. Failure to post the Davis-Bacon poster and applicable wage determination.

Employee Interviews Information provided is confidential o Are employees paid weekly? o What wage rate are they being paid and for what work classification? o Are the required DBA signs displayed, where? Interview statements should contain: o o Place and date of interview Name and address of employer/employee Employment status and work classification Alleged violations Employee Interviews to be Conducted by Sub-Recipients Utilize Current HUD Form 11

The Davis-Bacon poster, and a copy of the applicable Davis. Bacon wage decision, must be displayed at the job site of every project subject to Davis-Bacon wage requirements. DBA Poster – ENGLISH DBA Poster - ESPANOL

Beneficiary Data Documenting direct beneficiary data is critical to the City for demonstrating compliance with CDBG National Objectives. • If not received, HUD puts a hold on City funds to reimburse all other HUD funded expenses. • Demonstrates that CDBG expenditures are benefitting low to moderate income households.

Beneficiary Data Needed • HOME projects require an income certification form. Beneficiaries should complete Self Certification Form. (Household income information) • An Accomplishment Form shall be submitted as part of the final Request For Payment. • What happens if the City does not receive accomplishment data? HUD stops the flow of funds to all CDBG and HOME funded activities until data is entered.

City of Bethlehem Low to Moderate Income Limits for F. Y. 2020 FAMILY SIZE EXTREMELY LOW INCOME (0% TO 30% OF MEDIAN) VERY LOW INCOME (30% TO 50% OF MEDIAN) LOW INCOME (50% TO 80% OF MEDIAN) OVER INCOME (Over 80% OF MEDIAN) 1 Person $16, 450 or less $16, 451 to $27, 400 $27, 401 to $43, 800 Above $43, 800 2 Person $18, 800 or less $18, 801 to $31, 300 $31, 301 to $50, 050 Above $50, 050 3 Person $21, 720 or less $21, 721 to $35, 200 $35, 201 to $56, 300 Above $56, 300 4 Person $26, 200 or less $26, 200 to $39, 100 $39, 101 to $62, 550 Above $62, 550 5 Person $30, 680 or less $30, 680 to $42, 250 $42, 251 to $67, 600 Above $67, 600 6 Person $35, 160 or less $35, 161 to $45, 500 $45, 501 to $72, 600 Above $72, 600 7 Person $39, 640 or less $39, 640 to $48, 500 $48, 501 to $77, 600 Above $77, 600 8 Person $44, 120 or less $43, 120 to $51, 650 $51, 651 to $82, 600 Above $82, 600

Program Contacts Tina Roseberry, Housing & Community Development Administrator croseberry@Bethlehem-pa. gov, 610 -997 -5731 Shawn Fuller, Grant Management Assistance sfuller@Bethlehem-pa. gov, 610 -419 -1447