Common use of Eligible Activities and Costs Clause in Contracts

Eligible Activities and Costs. ‌ The primary activity of this program is payment of a Permanent Housing rent subsidy to a landlord on behalf of an eligible household. A comprehensive guide of eligible activities and costs to support the primary activity is found below. Administration ‌ Allowable administrative costs benefit the organization as a whole and cannot be attributed specifically to a particular program Up to 15 percent of total contracted budget may be used for administration. Administrative costs may include the same types of expenses that are listed in program operations (such as IT staff and office supplies), in the case that these costs are benefiting the agency as a whole and are not attributed to a particular program, they are considered administrative. Administrative costs may include, but are not limited to, the following: ✓ Executive director salary and benefits. ✓ General organization insurance. ✓ Organization wide audits. ✓ Board expenses. ✓ Organization-wide membership fees and dues. ✓ General agency facilities costs (including those associated with executive positions) such as rent, depreciation expenses, and operations and maintenance. All amounts billed to administration must be supported by actual costs, or portions of actual costs. These costs must be charged to grant cost centers by one of the following three methods: ✓ Billed directly such as IT services that are billed by the hour. ✓ Shared costs that are allocated directly by means of a cost allocation plan. ✓ Costs related to executive personnel such that a direct relationship between the cost and the benefit cannot be established must be charged indirectly by use of an indirect cost rate which has been appropriately negotiated with an approved cognizant agency or by use of the 10 percent de minimus rate. Operations ‌ Operations expenses are directly attributable to a particular program and include: ✓ Salaries and benefits for staff costs directly attributable to the program, including but not limited to program staff, information technology (IT) staff, human resources (HR) staff, bookkeeping staff, and accounting staff. ✓ Office space, utilities, supplies, equipment (up to $1,500 per grant period unless approved in advance by Commerce), telephone, internet, and training/conferences/travel and per diem. ✓ Data collection and entry. ✓ Housing search and placement. ✓ Eligibility determination and recertification activities. Housing Costs ‌ Eligible housing costs must be paid directly to a third party on behalf of the household. Rent payments may not be made directly to the eligible household. Please note, Commerce expects that, when other short-term subsidies are available for emergency housing, securing housing costs, and move-in costs, that these subsidies are used before CBRA funds. Emergency Housing ‌ Funds may be used to provide emergency housing for no more than 90 days when no suitable* shelter bed is available and program staff support the grantee with permanent housing search. ** Emergency Housing Includes: ✓ Hotel/Motel Stays ✓ Transitional Housing that does not require the participant to maintain a lease for a specific period of time. ✓ Recovery residences ✓ Other, as approved by Commerce. * A suitable shelter bed is one that meets the emergency housing needs of the participant, is rooted in participant choice, and does not cause undue hardship to the participant. **Please note, short-term rental agreements and walk-through inspections are encouraged for hotel/motel stays if owners wish to access landlord reimbursement programs like the Landlord Mitigation Program. Securing Housing ‌ ✓ Costs for securing permanent housing including: application fees, background check fees, credit check fees, and other related costs for securing permanent housing. ✓ Rental arrears and associated late fees for up to three months. Rental arrears may be paid if the payment enables the household to obtain or maintain permanent housing. ✓ Past evictions and associated fees that prevent the participant from obtaining housing may be paid in an amount up to $3000. ✓ Up to three months of utility arrears and associated fees may be paid on behalf of the tenant if this enables the household to obtain or maintain permanent housing. Move-In Costs ‌ ✓ Security deposits for households moving into new units. ✓ Utility deposits for a household moving into a new unit. ✓ Incentives paid to landlords ✓ First and Last Months’ Rent Rent and Associated Costs ‌ ✓ Monthly rent. Rent may only be paid one month at a time, although rental arrears, pro-rated rent, and last month’s rent may be included with the first month’s payment. ✓ Master-lease: security deposit and monthly rent is allowable when an organization master-leases a unit, and then sub-leases it to CBRA-eligible households. Tenants must have a sublease with the master lease holder. ✓ Utilities which are included in rent. ✓ Renter’s insurance ✓ Costs of parking spaces when connected to a unit. Other Housing Costs ‌ ✓ Utility payments for households also receiving rental assistance. ✓ Other costs as approved by Commerce. Special Circumstances ‌ ✓ Funds may be used to pay for storage of personal belongings if there are no other suitable storage options available while a permanent housing search is conducted. ✓ Temporary absence: if a household must be temporarily away from the unit, but is expected to return (such as temporary incarceration, hospitalization, or residential treatment), grantees may pay for the household’s rent for up to 60 days and charge the grant for eligible costs. Any temporary absence must be documented in the client file. Extensions to the 60 day limit must be approved by Commerce. Ineligible Expenses ‌ 🗷 Cable television deposits or services. 🗷 Mortgage assistance and utility assistance for homeowners. 🗷 Security and janitorial (salaries and benefits associated with providing security, janitorial services). 🗷 Essential facility equipment and supplies (e.g. common-use toiletries, food served in shelters, bedding, mats, cots, towels, microwave, etc.) 🗷 Expendable transportation costs directly related to the transportation of eligible households (bus tokens and fuel for a shelter van). 🗷 On-site and off-site management costs related to the building. 🗷 Facility-specific insurance and accounting. 🗷 Replacement or operating reserves. 🗷 Debt service. 🗷 Construction or rehabilitation of facilities. 🗷 Mortgage payment for a facility.

Eligible Activities and Costs. ‌ The primary activity of this program is payment of a Permanent Housing rent subsidy to a landlord on behalf of an eligible household. A comprehensive guide of eligible activities and costs to support the primary activity is found below. Administration ‌ Allowable administrative costs benefit the organization as a whole and cannot be attributed specifically to a particular program Up to 15 percent of total contracted budget may be used for administration. Administrative costs may include the same types of expenses that are listed in program operations (such as IT staff and office supplies), in the case that these costs are benefiting the agency as a whole and are not attributed to a particular program, they are considered administrative. Administrative costs may include, but are not limited to, the following: ✓ Executive director salary and benefits. ✓ General organization insurance. ✓ Organization wide audits. ✓ Board expenses. ✓ Organization-wide membership fees and dues. ✓ General agency facilities costs (including those associated with executive positions) such as rent, depreciation expenses, and operations and maintenance. All amounts billed to administration must be supported by actual costs, or portions of actual costs. These costs must be charged to grant cost centers by one of the following three methods: ✓ Billed directly such as IT services that are billed by the hour. ✓ Shared costs that are allocated directly by means of a cost allocation plan. ✓ Costs related to executive personnel such that a direct relationship between the cost and the benefit cannot be established must be charged indirectly by use of an indirect cost rate which has been appropriately negotiated with an approved cognizant agency or by use of the 10 percent de minimus rate. Operations ‌ Operations expenses are directly attributable to a particular program and include: ✓ Salaries and benefits for staff costs directly attributable to the program, including but not limited to program staff, information technology (IT) staff, human resources (HR) staff, bookkeeping staff, and accounting staff. ✓ Office space, utilities, supplies, equipment (up to $1,500 per grant period unless approved in advance by Commerce), telephone, internet, and training/conferences/travel and per diem. ✓ Data collection and entry. ✓ Housing search and placement. ✓ Eligibility determination and recertification activities. Housing Costs ‌ Eligible housing costs must be paid directly to a third party on behalf of the household. Rent payments may not be made directly to the eligible household. Please note, Commerce expects that, when other short-term subsidies are available for emergency housing, securing housing costs, and move-in costs, that these subsidies are used before CBRA funds. Emergency Housing ‌ Housing‌ Funds may be used to provide emergency housing for no more than 90 days when no suitable* shelter bed is available and program staff support the grantee with permanent housing search. ** Emergency Housing Includes: ✓ Hotel/Motel Stays ✓ Transitional Housing that does not require the participant to maintain a lease for a specific period of time. ✓ Recovery residences ✓ Other, as approved by Commerce. * A suitable shelter bed is one that meets the emergency housing needs of the participant, is rooted in participant choice, and does not cause undue hardship to the participant. **Please note, short-term rental agreements and walk-through inspections are encouraged for hotel/motel stays if owners wish to access landlord reimbursement programs like the Landlord Mitigation Program. Securing Housing ‌ Housing‌ ✓ Costs for securing permanent housing including: application fees, background check fees, credit check fees, and other related costs for securing permanent housing. ✓ Rental arrears and associated late fees for up to three months. Rental arrears may be paid if the payment enables the household to obtain or maintain permanent housing. ✓ Past evictions and associated fees that prevent the participant from obtaining housing may be paid in an amount up to $3000. ✓ Up to three months of utility arrears and associated fees may be paid on behalf of the tenant if this enables the household to obtain or maintain permanent housing. Move-In Costs ‌ Costs‌ ✓ Security deposits for households moving into new units. ✓ Utility deposits for a household moving into a new unit. ✓ Incentives paid to landlords ✓ First and Last Months’ Rent Rent and Associated Costs ‌ Costs‌ ✓ Monthly rent. Rent may only be paid one month at a time, although rental arrears, pro-rated rent, and last month’s rent may be included with the first month’s payment. ✓ Master-lease: security deposit and monthly rent is allowable when an organization master-leases a unit, and then sub-leases it to CBRA-eligible households. Tenants must have a sublease with the master lease holder. ✓ Utilities which are included in rent. ✓ Renter’s insurance ✓ Costs of parking spaces when connected to a unit. Other Housing Costs ‌ ✓ Utility payments for households also receiving rental assistance. ✓ Other costs as approved by Commerce. Special Circumstances ‌ ✓ Funds may be used to pay for storage of personal belongings if there are no other suitable storage options available while a permanent housing search is conducted. ✓ Temporary absence: if a household must be temporarily away from the unit, but is expected to return (such as temporary incarceration, hospitalization, or residential treatment), grantees may pay for the household’s rent for up to 60 days and charge the grant for eligible costs. Any temporary absence must be documented in the client file. Extensions to the 60 day limit must be approved by Commerce. ✓ Internet included as a utility cost: Commerce will consider including internet as a utility cost if all other resources have been exhausted and it is determined that lack of internet coverage will be detrimental to the client securing or maintaining housing. All resources must be documented and presented to Commerce upon the request for an exception. ✓ Moving costs: Commerce will consider allowing moving costs under special circumstances as long as all other resources have been exhausted and those resources are documented and provided to Commerce upon the request for an exception. Ineligible Expenses ‌ 🗷 Cable television deposits or services. 🗷 Mortgage assistance and utility assistance for homeowners. 🗷 Security and janitorial (salaries and benefits associated with providing security, janitorial services). 🗷 Essential facility equipment and supplies (e.g. common-use toiletries, food served in shelters, bedding, mats, cots, towels, microwave, etc.) 🗷 Expendable transportation costs directly related to the transportation of eligible households (bus tokens and fuel for a shelter van). 🗷 On-site and off-site management costs related to the building. 🗷 Facility-specific insurance and accounting. 🗷 Replacement or operating reserves. 🗷 Debt service. 🗷 Construction or rehabilitation of facilities. 🗷 Mortgage payment for a facility.