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• ~ u~• UNITED' STA~ GOVERNMtNT <.?, 66> Memorandum CDA DIRECTORS RmIONAL ADMINISTRATORS TO DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DATE: December 30, 1968 In reply refer to: Attention: ARA for Model Cities ADMINISTRATIVE MEMO NO. 13 FR.OM Walter G. Farr Model Cities Administr at~on SUBJEC'l': Letters to Proceed f r,r Admi n1 strative Costs Incurred a:rter Submission -of Com:pr ensive City DeJJ10us~ration Program It is essential that the p~riod between the submission by the CDA of its comprehensive demonstratic/n prQg1'am &ii the date of execution of the grant agreement for the execution phase be used effectively in gearing up for the administration of the program. This memorandum sets forth the procedure for the issuance of Letters t o Proceed, which are designed to provide the CDA with a statement from HUD that :f'unds expended in conformance with an approved budget a.re eligible for r eimbursement from the administration grant peyable under the grant agreement. This grant will pay for a maximum of 80 percent of the eligible costs of program administration. 1. The CDA's Request a . The chief executive of the City may request a Letter to Proceed. as soon as (a ) the City ' s comprehensive demonstration program has been submitted t o the Department of Hous ing and Urban Development and (b) the local gover ning body has authorized that submission. This request may appropriately be filed with th~ comprehensive <lemonstration program. b . The CDA's l etteT of request (See Attachment A) should be filed with the fol lowi ng back-up documents: (i) (ii ) Budget Schedule (Use Att a.chment _ 1 to CDA Letter No. 6, HUD 7039* ) J ustif ications (Use Attachments 3a and 3b to CDA Letter No . 6, HUD 7042 811d 70~3** ) ( iii)

Work Programs -- The work programs may be brief and need not present detailed time schedules nor provi de work descriptions for individual staff members . The work program may include such items as : In the headi ng of column B, strike out the phrase "Year a.nd insert in lieu t hereot: "90 days".

--- of Program" , Ins er t i n l i ne 2 of each form the following: "Program administration prior to execut ion of grant agr eement". �,.. 2 (1) Prepare ame~nts or additions to the comprehensive progr am subsequent to discussion -11th Federal officials. (2) Prepa r e fund applications for categorical grant-in-aid progr ams . (3) Develop administrative procedures for execution period. (4) Survey possible locations for neighborhood facility. c. It is expected t hat grant agreements will be executed for most cities within 90 dey-s from the dat.e the local governing body authorizes submission · of the program.. However., times will vary and no CDA will know exactly the . length or time in which ad,plinist~ative costs will pe incurred prior to execution of the gra.nt 96reenient. · All budgets . supporting Letters to Proceed should be for a 90 de.y period. 2. . HUD Action mm Model Cities Regional staff will provide cities with any assistance needed. in requesting Lett ers to Proceed. Requests will be reviewed prompt~ and when approved, Letters to Proceed will be issued by the Regional Administrators, in the form indicated in Attachment B. The Letter is effective as of the date of issue. It should be noted that the issuance of the Letter to Proceed does not represent a Federal commitment of funds. Accordingly, if the city's program is not approved, there is no basis on ·which reimbursement can be obtained by the CDA. 3. Allowable Costs a. Continuing Items. Most expense items which will be necessary for this period in which the administration of the program commences are continuing items : ·salaries for staff of CDA, delegate agencies and neighborhood groups, travel, rent, etc. Many of these items have been eligible planning costs du.ring the planning period. It is, · of course, assumed that eligible planning costs will be ~aid for under the planning budget · until p,lanning :funds (both the Federal planning grant and the non-Federal contribution) are exhausted. b. New Items. In addition,' CDA's ms;y, du.ring this period, add certain central sta.:ff which will be essential to the operation, and preparation foroperation, of the comprehensive program. These ma,y include fiscal, lega.l and central administrative personnel who will be needed regardless of the exact pattern of First Year Action components. However, the Letter to Proceed should not cover costs in connection with new capital projects and activities. The Letter to Proceed ma,y cover costs of reproducing the federa.lly-required number �. ... . 4 3 of copies of the c omprehensive program. 4. Non-Allowable Costs While the followi ng list does not purport to. be exhaustive, you should be alerted to the fac t that the following costs should not be covered by the Letter to Proceed: a. b. c. d. 5. Costs· PS¥able under the planning budget for which planning funds are available . Costs incurred in connection with new projects and activities. New third party contracts or significant amendments to existing contracts. Costs not allowable under CDA Letter No. 8~ Relationship to First Year Action Budget In preparing its fi rst year action budget in accordance with CDA Letter No. me.y prepare an administrative budget for a period up to 15 months-the presumed 90 d~y period under the Letter to Proceed plus the 12-month period commencing with the execution of the grant agreement. In the alternative, the CDA me.y submit a 12 month administrative budget at the time the comprehensive program is submitted , and then amend this before the execution of the .grant amendment so as to add the period for which reimbursement is sought for expenditures under the Let ter to Proceed. 6, CDA's ~;;t?jj /4.Msr,/kJ~ -f-Y-' Director Attachments ~ �ATTACHMENT A Request for Letter to Proceed Dear (Regional Adminj.;trator J The City of _ _ ___________ requests a Letter to Proceed for a 90 day period so that costs incurred in prep~ing for the administration of our comprehensi,,e city demonstration program may be eligible for reimbursement f'rom the gra.r,t f or a.dministrative costs under section 105(b) of the statute. A budget and work program for costs estimated to be incurred during this period to susta ~n such activities is attached. This attachment includes a statement of t he 20 percent non-Federal share of these costs. I understand that reimbursement cannot take place unless and until the Secretary of t he Department of Housing and Urban Development has approved (-city name) ' &i program and a Grant Agre·ement is executed between (city name) and HUD. Sincerely yours, (Local chief executive) Attachment �..-. ... ATTACHMENT B Letter to Proceed, for Execution Phase Na.me of Chief Executive Title City Address Dear

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Your comprehensive demonstration program submission has been received. Although the Department ha s not yet acted upon your program, it has no objection to your commencing prepar~t ion for the execution phase. Costs incurred on and after the· date of this letter which are in accordance with the attached budget and work program. will be eligible for reimbursement if a grant agreement is executed and i f the terms and conditions of the agreement and CDA Letter No. 8 (copies of both attached,) are satisfied.* Sincerely yours, Regional Administrator Attachment

Modify this sentence appropriately if CDA Letter No. 8 has already been

sent to the CDA or if a draf't has been or is being sent•, �