A private nonprofit organization is receiving CDBG funds to construct a homeless shelter. They have private funds which they intend to use to hire a design team, including a construction manager. CDBG funding will finance the construction work, all of which will be procured using the standards at Part 84. What if any are the procurement requirements covering the private funds for the design team and construction manager?
Date Published: May 2015
This question addresses whether procurement applies to just CDBG costs or all of the costs in the project. Regardless of the portion of CDBG funds for the construction of a homeless shelter, if the funded entity is a CDBG nonprofit subrecipient, procurement rules in 24 CFR Part 84 apply to all of the costs associated with the project. In addition, any county-specific procurement requirements that are specified within your written agreement also apply.