During active recovery, localities must hire contractors to perform construction, administration, and other tasks. However, Community Development Block Grant – Disaster Recovery (CDBG-DR) recipients must follow very specific, complicated federal procurement rules, as well as state and local government laws and regulations.
A subrecipient is an entity that receives federal disaster response funds directly from the Grantee that is awarded funds from the U.S. Department of Housing and Urban Development (HUD) and manages the funds for disaster-affected communities. By utilizing a subrecipient agreement, the burden of compliance is imposed upon the subrecipient, reducing the level of risk for the grantee.
A subrecipient agreement can assist your community with adhering to regulations and verifying compliance through accurate reporting and record keeping. As a nonprofit, IBTS is able to act as a subrecipient to carry out the management of federal funds granted to disaster-affected communities. With no legal ability or desire to profit personally, all attention is focused on helping communities rebuild, using grant monies effectively, and determining additional funding sources. A subrecipient can be selected rather than procured. This drastically speeds up the time where recovery can begin.
Our Work in Action
We served as a subrecipient to Cleveland County, Oklahoma, after it had sustained significant damages from the various tornados, wildfires, flooding, straight-line winds, and winter storms that occurred from 2011 to 2013. Through program oversight, we helped the county successfully meet all federal regulatory requirements and see the completion of fully funded projects as planned. Additionally, we helped manage the county’s budget more efficiently and realized a surplus of $305,000 in CDBG-DR funds that could be of use in the county’s remaining projects.
We are also serving as a subrecipient to the State of North Carolina. In NC, our team of CDBG subject matter experts provide high-level capacity building and technical assistance in the oversight of their CDBG-DR programs.