Deed restriction, for purposes of 45 CFR 75.318, means a limit written on a deed to restrict control, occupancy, or property use. Acquisition Cost, per 45 CFR 75.2, means the cost of the asset including the cost to ready the asset for its intended use. The most common type of interest rate swaps are called vanilla swaps. To apply for the grant, please visit: https://www.cdss.ca.gov/inforesources/child-care-and-development/infrastructure-grant-program/minor-renovation-and-repa. Only ACF programs that have real property authority are allowed, with prior approval, to use Federal funds for this and/or related purpose. means in real estate the right of one party to use/access real property that's owned by another for a limited and specific purpose. Any non-federal match associated with facilities activities becomes part of the federal share of the facility. For all other ACF award recipients and subrecipients there is no change to the standard definition. Please review the program link for full description. Less-Than-Arms-Length Leases is when one party of an agreement is able to control or substantially influence the actions of the other. Properties within the City of Sanford are not eligible for CDBG funding, but Supplies, per 45 CFR 75.2, means all tangible personal property other than those described in Equipment. Anything that doesnt meet the Topic 842 finance lease qualifier and GASB 87 financed purchase qualifiers is considered an operating lease. LIIF provides grant and loan capital for facilities development and improvement. Easementmeans in real estate the right of one party to use/access real property that's owned by another for a limited and specific purpose. ACF considers this type of rate high-risk and must be avoided. The "Minor Renovations and Repairs" portion of this grant is for minor renovations, repairs, modernization, or retrofitting of existing child care facilities to increase or recover capacity due to a declared disaster, mitigate future disasters, address needs related to health and safety, licensing, or the COVID-19 pandemic, and for other existin. Variable interest rates, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, change over the course of the term of the loan. The period of useful service or life established in each case must take into account: Technological developments in particular area. For state and local governments, GASB issued GASB Statement No. One For Center-Based Providers - 10:00 AM to 11:30 AM and one For Family Child Care Providers - 6:30 PM to 8:00 PM. ACF advises that the provision be deleted, or the increase be waived if ACF intervenes to cure the default in the property in which there is a federal interest. any program-specific guidance such as the OCC Tribal Construction and Renovation Procedures Program Instruction (e.g., While the simplified acquisition threshold intent may allow non-Federal entities to use a reduced purchasing process to expedite the purchase of certain items, it does not mean that they should disregard the. At closeout (if applicable) of a Federal award, recipients(and on behalf of subrecipient) must account for any real and personal property acquired with Federal funds. Major Renovation Threshold, for purposes of 45 CFR 75.318,means (unless otherwise stated in Federal statute, program regulations, and terms of an award) the amount used to distinguish between minor and major Alteration & Renovation for the entire project period. While this page incorporates some of the new lease standards, for more information, all covered recipients are encouraged to refer to the. The simplified acquisition threshold is set by the Federal Acquisition Regulation at 48 CFR subpart 2.1 and in accordance with 41 U.S.C. The federal interest includes any portion of the cost of purchase, construction, or renovation contributed by or for the entity, or a related donor organization, to satisfy a matching requirement. As for real property in which there is a federal interest, it may not be conveyed, transferred, assigned, mortgaged, leased, or otherwise be encumbered or subordinated by a recipient unless a deviation is approved by the ACF Chief Grants Management Officer. Please note that property insurance costs, such as general liability insurance, which are typically the responsibility of the lessee/tenant, are allowable, but should not be included in the lease arrangement since they would be in the name of the lessee/tenant, and can be charged as a separate expense on the award. Bellflower, CA 90706 Fax: (310) 323-0789 . Applicants may be non-profits, for-profit businesses, or Tribes. Only ACF programs that have real property authority are allowed, with prior approval, to use Federal funds for this and/or related purposes. The study, which collected and analyzed data on 113 home repair programs in the 100 largest US cities during the fall of 2021 and winter of 2022, found these key takeaways. Intangible Property, per 45 CFR 75.2, means property having no physical existence, such as trademarks, copyrights, patents and patent applications and property, such as loans, notes and other debt instruments, lease agreements, stock and other instruments of property ownership (whether the property is tangible or intangible). Unless otherwise stated in Federal statute, program regulations, and terms and conditions, federal funds may be used to acquire and maintain tangible personal property. For more information, please see Tangible Personal Property Guidance and Property Glossary. However, generally an operating lease is a contract allowing a renter to use the asset temporarily and does not convey ownership rights of the asset. Opportunity Title: Infrastructure Grant: Minor Renovations and Repairs, The purpose of the Infrastructure Grant Program (IGP) is to preserve, enhance, and expand access to child care and development and preschool opportunities for children up to five years of age by providing grants to renovate, repair, modernize, retrofit, or build new licensed child care centers and family child care homes (collectively referred to as child care facilities). The information contained within these pages are not intended to replace federal regulations. What Deviation means a change that adds, deletes, or modifies a requirement, whether the result is more restrictive or less restrictive, from HHS policy that is not based on statute or 45 CFR Part 75. (The previous FAS No. HHS characterizes A&R projects as minor or major, depending on the type of activity proposed, the cost of the project, and whether it meets or exceeds the major renovation threshold (if applicable). Subordination, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, is when one party takes a subordinate position (second or third) when a real property is encumbered. Such agreements are typically labeled as leases, but may also be called use agreements, occupancy agreements, memoranda of use, or other similar terms. ), procurement process, funding source (non-Federal and Federal amounts and percentages), and so on. A NFI is a means to help secure the right of the ACF to recover the current fair market value of its percentage of participation in the cost of the real property when it is no longer used for program purposesor upon the disposition of the property. (Note: There is no change from the previous criteria. Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Infrastructure Grant Program (IGP) Minor Renovations and Repairs FAQs WHO/WHAT/WHY Who Can Apply Licensed Family Child Care serving children 0-5 years Housing help Home repair and energy assistance Home repair and energy efficiency assistance Learn about government programs that may help with repairing or making improvements to your home. The California Department of Social Services (CDSS) Child Care and Development Division, https://cdss.ca.gov/Portals/9/CCDD/RFA-IGP.pdf, Amplify your voice: Advocacy Skills for small business success, Accessing capital & funding options for young entrepreneurs, Womens Health and Well-being: Strategies for the modern workplace. Subordination Agreement, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, is a written agreement among ACF, the recipient, and the Lender in which ACF agrees to subordinate its interest in the real property (not the personal property) to the Lender; and the Lender grants ACF certain rights, such as an opportunity to cure in the event the Recipient defaults. Interest swaps usually involve exchanging a fixed interest rate for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates or to obtain a marginally lower interest rate than would be possible without the swap. ACF may consider subordinations, but only as a last resort. Under Topic 842, the criteria for determining a finance lease as opposed to an operating lease changed slightly. [45 CFR 1303.44(a)(7)] 11 . For OHS recipientsand subrecipients, according to 45 CFR 1303.44(c) Non-federal match. These principles apply whether or not a particular item of costs is properly treated as direct or indirect (Facilities & Administration) cost. ACF will not consider debt instruments with a cross-collateralization. While recipients may consider historic buildings or land, generally speaking it is not in their or ACFs best interest. The absence of a particular item of cost is not intended to imply that it is either allowable or unallowable; rather, a determination as to allowability in each case should be based on the treatment provided for similar or related items of cost, and be in accordance with the applicable Federal statutes, regulations, or the terms and conditions of the Federal award. See content under New Lease Standards and Finance Lease. When a program (such as the ORR-UC program). Depreciation method used to charge the cost of an asset (or group of assets) to accounting periods must reflect the pattern of consumption of the asset during its useful life. We are compiling relevant tips and resources and information on new funding opportunities and policy developments that we are sharing on our website and through online presentations. See. Any portion of the cost of the building paid or donated by the Federal government, irrespective of where title was originally vested or where it is presently located. Generally, per. Please note: ACF has no direct legal relationship with third-party landlords and are not party to lease arrangements. Rental for ACF recipients are unlikely; however, per 45 CFR 75.2, rental of real property would be considered program income and must comply with the program income requirements at 45 CFR 75.307. Parcel, for purposes of 45 CFR 75.318and 75.465,is considered a quantity of land identified for taxation purposes. For more information see Award Term for Micro-Purchase and Simplified Acquisition Thresholds Exception and 48 CFR Part 2.1. the creation of a building, structure, or facility, including the installation of equipment, site preparation, landscaping, associated roads, parking, environmental mitigation and utilities. See glossary term Alteration and Renovation (A&R). FAQs The information contained within these pages are not intended to replace federal regulations. | Privacy Policy. See Major Renovation and Minor Renovation glossary . Charges for depreciation must be supported by adequate property records, and physical inventories must be taken at least once every two years to ensure that the assets exist and are usable, used, and needed. For more information about Federal Interest in leased real property, see content on the, Recipients who own land, building, and/or space claimed and/or contributed towards the award, should refer to the. These costs are allowable to the extent not paid through rental or other arrangements. The Office of Grants Management (OGM) must be consulted and confirm the percentage of participation (federal interest) before any payment is remitted on a property per the requirements under real property (45 CFR 75.318 and/or program-specific regulations) and tangible personal property (45 CFR 75.320, 45 CFR 75.321, 45 CFR 75.322, and/or program-specific regulations). ACF considers this type of rate high-risk and must be avoided. See under 45 CFR 75.2 for Capital Assets, Computing Devices, General Purpose Equipment, Information Technology Systems,and Supplies. The description is by subdivision name, lot and block in a platted subdivision, by certified survey map and lot number, or in unplatted lands, and it is identified according to the township, section, range associated with the Public Land Survey System or Private Claims or Government Lots. See 45 CFR 75.308, 45 CFR 75.318, 45 CFR 75.320, 45 CFR 75.407, 45 CFR 75.439and Real PropertyGuidance. to $15,000 in FREE home repairs to address health, safety, accessibility, and code issues in and around the home. If the borrower defaults, the pledged collateral can be seized and/or sold according to the terms in the agreement. https://cdss.ca.gov/Portals/9/CCDD/RFA-IGP.pdf State: California Depreciation is the method for allocating the cost of fixed assets to periods benefiting from asset use. The repairs are emergency . Under a lease agreement it is an arrangement with an unrelated third party and follows the general requirements under. ACF has the right to obtain, reproduce, publish, or otherwise use the data produced under a Federal award; and authorize others to receive, reproduce, publish, or otherwise use such data for Federal purposes. Applicable grant regulations at 45 CFR Part 75 do not define the term lease. However, a lease is generally described as a contract establishing the terms under which one party (tenant; lessee) agrees to rent property owned by another party (landlord; lessor), which is owned by that party or a third party. For more information on tangible personal property (i.e., equipment and supplies), please visit Tangible Personal Property Guidance. These loans typically cost the borrower more in the long-term. Any asset acquired solely for the performance of a non-federal award. Under an award that has real property authority, when there is no evidence that the recipientrequested and/or received approval from the authorized approver (i.e., ACF Chief Grants Management Officer) to use federal funds to encumber (e.g., finance, loan, and/or related cost) with or without a subordination the property. Recording a notice of federal interest (NFI) in the appropriate official records for the jurisdiction in which the real property is located. This section contains commonly used ACF property terms: however, it may not be all inclusive. This document is an encumbrance, which requires prior approval and a deviation. See Tangible Personal Property Guidance. Costs incurred for ordinary and normal rearrangement and alterations of facilities are generally allowable as an indirect cost, . Convey, for purposes of 45 CFR 75.318, means to transfer the right of ownership of a property from one party to another by a deed or similar instrument under a notarized seal. Major A&R projects are subject to the requirements of this chapter as indicated. ), permanent fences, utility conduits, and similar improvements. Federal Share, defined by 45 CFR 75.2, means the portion of total project costs that are paid by federal funds. Operate as a California licensed child care center or licensed family child care home for at least one year prior to August 1, 2021. Any format may be used to document real propertiesproposed, claimed, and/or contributed to the award. See also 45 CFR 75.306. Recipients enter into to a wide variety of lease and occupancy agreements, operating leases, short-term leases, finance leases, arms-length, and less-than-arms-length agreements. Under a lease agreement it is an arrangement with an unrelated third party and follows the general requirements under 45 CFR 75.465(a). Only a few ACF grant programs have real property authorityto allow, with prior written approval, Federal financial assistance awards to be used to acquire, construct, and/or make major renovations on real property. This term includes artifacts, records, and remains that are related to and located within such properties. Whereas, under GASB 87, applicable to state and local governments, begins with the premise that all leases are considered finance leases. [Please note that current fair market value is based on an appraisal (no more than three (3) years old) conducted by an independent certified appraiser.] Bundled loan, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, occurs when a Recipient seeks to consolidate several separate loans into a single loan secured by multiple properties (with different parcel numbers). Terms vary from short, intermediate, and long-term financing. Arms-length means an unrelated third party. means, under NEPA, a category of actions that the agency has determined, in its agency NEPA procedures, normally do not have a significant effect on the human environment. Short-term leases (twelve months or less) are a type of finance lease, similar for financial and accounting purpose to an operating lease. English Espaol The Minor Home Repair Grant is to help fix dangerous conditions, such as leaking gas pipes, faulty electric, decaying roofs, and collapsing floors. Examples include mortgages (or other finance arrangement), leases (including financed purchase), as well as liens, easements, encroachments, licenses, and deed restriction on the real property. This program is designed to assist low-moderate-income residents of the City of Livonia. An arms-length lease is an agreement with an unrelated party and follows the requirements of 45 CFR 75.465(a): Rental costs are allowable to the extent that the rates are reasonable in light of such factors as: rental costs of comparable property, if any; market conditions in the area; alternatives available; and the type, life expectancy, condition, and value of the property leased. Mortgage, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, is considered a debt instrument that the borrower is obligated to pay back with a predetermined set of payments. Informational Webinar tomorrow, February 15. All programs may charge rental costs if those costs meet the criteria under per. ACF will not consider balloon mortgages. These pages consist of information, guidance, and materials related to real property and tangible personal property (i.e., equipment and supplies), andintangible property (i.e., copyright, patents or securities). An arms-length lease is an agreement with an unrelated party and follows the requirements of, A less-than-arm's-length arrangement is outlinedunder, less-than-arms-length arrangements are bound by the same restrictions as those on sale and lease back arrangements(, ) which states rental costs are allowable only up to the amount that would have been allowed had the recipient owned the property. Encroachmentrefers to a situation in real estate where, for example, a fixture such as a wall or fence intrudes, invades, or otherwise encroaches beyond a neighboring property line. This type of work also may be referred to as improvements, conversion, rearrangements, reconversion, rehabilitation, remodeling, restoration, or modernization. Recipients must ensure that rental costs are reasonable and comparable to other like type properties. 7/19 Eligibility Requirements* Available for City of Inglewood homeowners For an example, please review Real PropertyListing and Related Cost Documentation. Auditees must first determine whether an occupancy arrangement is a lease and then decide, based on applicable criteria, whether the lease is operating or finance in nature. It excludes: construction; large-scale permanent improvements (major renovation); routine maintenance and repair; and, costs categorized as equipment costs per the recipients accounting system. A few examples include, but are not limited to: Maintenance. When property is donated, per 45 CFR 75.434(b), the value of the property donated may not be charged to the Federal award either as a direct or indirect (F&A) cost. This is a high-risk provision for ACF and the recipient to which it is advised that it be stricken or waived from the debt instrument. However, recipientsmay request a review of costs (i.e., prior approval) in advance of incurring costs. Any cost exceeding the major renovation threshold may result in a disallowance, unless the program has real property authority. Amortization, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, is the process of paying off the amount (principal and interest) with regular payments made over time per the loan terms. The Residential Lending Services unit administers loan and grant programs for low and moderate income residents for the repair and rehabilitation of owner-occupied housing, vacant and blighted residential properties, and the development of surplus and vacated land. Facility means real property (e.g., building, structure) or modular unit for use by a recipientof an ACF program. ACF will not consider bundled loans. Related terms include parcel number, legal description, and lot. In accordance with 45 CFR 75.436, depreciation is computed applying the following rules. Operating leases were previously not represented on the organizations balance sheet, whereas the assets and liabilities associated with capital leases were included. Any non-federal match associated with facilities activities becomes part of the federal share of the facility. See also glossary term Federal Interest. Essentially, this means that a non-Federal entity must continue to request prior written approval to purchase, construct, and/or make major renovations even if costs are under the simplified acquisition threshold. See glossary term Maintenance and Repair Costs. Fill in the information below as . Federal Interest, per 45 CFR 75.2, means, for purposes of 45 CFR 75.343 or when used in connection with the acquisition or improvement of real property, equipment, or supplies under a Federal award, the dollar amount that is the product of the: (1) Federal share of total project costs; and (2) Current fair market value of the property, improvements, or both, to the extent the costs of acquiring or improving the property were included as project costs. (The previous FAS No. Any cost exceeding the major renovation threshold, unless the grant program has real property authority, Under arms length arrangements, any ownership type expenses such as depreciation, taxes, insurance, and maintenance and repair costs that are, per, Under less-than-arms-length arrangements, per, For a recipientowned property, any costs above the depreciated value. For more information on real property, please visit Real Property Guidance. Costs incurred for improvements which add to the permanent value of the buildings and equipment or appreciably prolong their intended life must be treated as capital expenditures (see. For more information on requirements related to publications, please refer to the Stevens Amendment. Interest after default, for purposes of 45 CFR 75.318 or when used in connection with an encumbrance request, is a provision in a loan where the interest rate can be increased unilaterally and significantly upon a default. In addition to determining whether a lease is an operating or finance lease, or, for state and local governments, short-term leases, recipients must also consider how their relationship to the lessor impacts the nature of their lease arrangements and allowable costs resulting from those agreements. 45 CFR Part 75 does not define an operating lease. Transitional Living Program - CFDA 93.550, Native Hawaiian and Non-Profit American Indian Organization Child Care Grant (YN), Community Services Block Grant Discretionary Awards (i.e., Community Economic Development only) (EE) CFDA 93.570, Community Services Block Grant (COSR) CFDA 93.569, Social Services Block Grant (SOSR) and the Social Services Block Grant/Consolidated Block Grant (SOSC) CFDA 93.667, Social Services Emergency Disaster Relief (e.g., SSBG/DIS) CFDA 93.667; 93.095 and 93.096, Early Head Start Child Care Partnerships (HP), Early Head Start Indian Child Care Partnerships (HI), Early Head Start Migrant Child Care Partnerships (HM), Head Start Natural Disaster Recovery (ND). Rental arrangements should be reviewed periodically to determine if circumstances have changed and other options are available.. A single parcel may contain multiple buildings with separate street and/or mailing addresses. For more information see45 CFR 75.308, 45 CFR 75.407, 45 CFR 1305.2, 45 CFR 98.2, Applicable ACF Grant Programs with Real Property Authorityand Real Property Guidance. Allocation for depreciation must also be made in accordance with appendices III through IX to Part 75. These are some example repairs that may be necessary to make a home safe. means any prehistoric or historic district, site, building, structure, or object included in, or eligible for inclusion in, the National Register of Historic Places maintained by the Secretary of the Interior. For more information see 45 CFR 75.459. Swaps are derivative contracts (most common are futures, options, forwards, and swaps that derive their value/price from underlying assets) and over-the-counter trades. Services include, but are not limited to, cleaning and maintenance of facilities or equipment. Real Property, as defined by 45 CFR 75.2,45 CFR 1305.2, and 45 CFR 98.2, means land, including land improvements, structures and appurtenances [affixed equipment] thereto, but excludes moveable machinery and equipment. Real property acquisition (HHS GPS II-35), construction (HHS GPS II-32 and II-35), and major alteration and renovation (HHS GPS II-30) are unallowable in the absence of specific statutory authority and prior approval. It is a means of compensating the lender for potential interest income not realized. Maintaining written policies and procedures for the full property life cycle (acquisition, improvements, maintenance, through disposal). Non-Federal entities adopt small purchase procedures in order to expedite the purchase of items costing less than the simplified acquisition threshold. These repairs include: Minor plumbing ; Minor carpentry and electrical work ; However: Identical to a capital lease in former FAS No. Only a few ACF grant programs allow with prior written approval to use grant funds for these purposes. This saves the Borrower the effort of going somewhere else in search of a loan. Interest rates differ between each lender and depending on the overall credit risk of the entity applying for the loan. These types of mortgages may not be approved. As for real property in which there is a federal interest, it may not be conveyed, transferred, assigned, mortgaged, leased, or otherwise be encumbered or subordinated by a recipient unless a deviation is approved by the ACF Chief Grants Management Officer. What you need to know about this program: Roof, plumbing, electrical, heating and/or minor structural repairs Must be 62 years old or disabled Must reside in the house one year prior to applying Must meet 50% income limit Must have a clear title to the property Property taxes must be current Income Limits as Established by HUD Annually While the distinction between operating leases and other types of leases are maintained in Topic 842, the terminology changed. To mitigate risk, these must be reviewed on a case-by-case basis. See 45 CFR 75.2 for real property and equipment definitions, 45 CFR 98.2, 45 CFR 1305.2, HHS Grants Policy Statement at II-42,any program-specific guidance such as the OCC Tribal Construction and Renovation Procedures Program Instruction (e.g., CCDF-ACF-PI-2020-02),and the non-Federal entities accounting procedures.
Received Bvl But No Ppr 2023, Articles M