Supporting Statement 8-21

Supporting Statement for Paperwork Reduction Act Submissions

1. Justification

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

Title I of the Housing and Community Development Act of 1974 (P.L. 93-383) authorizes Indian Community Development Block Grants (ICDBG) and requires that grants be awarded on a competitive basis. The purpose of the ICDBG program is to develop viable Indian and Alaska Native communities by creating decent housing, suitable living environments, and economic opportunities primarily for low- and moderate-income persons. Consistent with this objective, not less than 70 percent of the expenditures are to benefit low- and moderate-income persons. Eligible applicants include Federally-recognized tribes, which includes Alaska Native communities, and tribally authorized tribal organizations. Eligible categories of funding include housing rehabilitation, land acquisition to support new housing, homeownership assistance, public facilities and improvements, economic development, and microenterprise programs. For a complete description of eligible activities, please refer to 24 CFR § 1003, subpart C.

The ICDBG program regulations are at 24 CFR part 1003. The ICDBG program requires eligible applicants to submit information to enable HUD to select the best projects for funding during annual competitions. Additionally, the information submitted is essential for HUD in monitoring grants to ensure that grantees are complying with applicable statutes and regulations and implementing activities as approved.

ICDBG applicants must submit a complete application package which includes an Application for Federal Assistance (SF-424), Applicant/Recipient Disclosure/Update Report (HUD-2880), Implementation Schedule (HUD-4125), and Cost Summary (HUD-4123). If the applicant has a waiver of the electronic submission requirement and is submitting a paper application, an Acknowledgement of Application Receipt (HUD-2993) must also be submitted. If the applicant is a tribal organization, a resolution from the tribe stating that the tribal organization is submitting an application on behalf of the tribe must also be included in the application package.

ICDBG recipients are required to submit a quarterly Federal Financial Report (SF-425) that describes the use of grant funds drawn from the recipient’s line of credit. The reports are used to monitor cash transfers to the recipients and obtain expenditure data from the recipients (2 CFR § 200.328).

The government-wide administrative requirements for grants and cooperative agreements to state, local, and federally recognized Indian tribal governments codified by HUD at 24 CFR part 200 require that grantees and sub-grantees take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. Consistent with these regulations, 24 CFR § 1003.506(b) requires that ICDBG grantees report on these activities on an annual basis, with Contract and Subcontract Activity reports being due to HUD on October 10^th of each year (HUD-2516).

The regulations at 24 CFR § 1003.506(a) instruct recipients to submit to HUD an Annual Status and Evaluation Report (ASER) that describes the progress made in completing approved activities with a listing of work to be completed; a breakdown of funds expended; and when the project is completed, a program evaluation expressing the effectiveness of the project in meeting community development needs. The ASER is due by November 15^th of each year and at grant closeout.

Copies of the Housing and Community Development Act of 1974, as amended, the FY 2019-2020 Notice of Funding Availability (NOFA) and the ICDBG regulations are attached to this submission.

2. Indicate how, by whom and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

ICDBG applicants are required to submit information to demonstrate compliance with eligibility and other program requirements. HUD uses collected information to determine whether applications meet minimum screening eligibility requirements and application submission requirements. Applicants provide general information about the proposed project to enable HUD to evaluate the applicant’s response to the criteria for rating the application and for grantee selection.

The information collected allows HUD to audit program performance accurately. The quality of reported data is critical for maintaining HUD’s databases for program evaluation, Congressional reporting, and monitoring a recipient’s performance compliance.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.

HUD has implemented Public Law 106-107 to streamline grants, and as of fiscal year 2005, has required all grant applications to be submitted electronically through the Grants.gov system. All ICDBG applications are submitted through the Grants.gov website, unless HUD grants a waiver of this requirement.

HUD encourages appropriate cost effective methods with regard to the information collection requirements, but does not prescribe particular technological collection techniques. Tribes are given maximum feasible deference in designing information collection systems that allow the enhanced administration and monitoring of ICDBG funds and program compliance with applicable statutes and regulations.

There are currently no information collection technologies uniformly available which would further reduce the reporting burden on all affected entities. The information collection requirements have been reduced to the minimum necessary to meet the requirements as indicated by the attached statute, regulations, and NOFA.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purpose described in Item 2 above.

There is no duplication of information collected. There are no other sources of information that are being submitted to HUD that duplicate the information required from ICDBG grantees. The periodic reporting and closeout package information is not a duplication of project information and there are no other sources of information.

5. If the collection of information impacts small businesses or other small entities (Item 5 of OMB form 83-I), describe any methods used to minimize burden.

The collection of information does not impact small businesses or other small entities. Some tribal governments may meet the definition of a “small entity”, however; this information collection will not have a significant impact on these entities. HUD has minimized the burden on all applicants and recipients by allowing them to determine the complexity of the program contained in the application and grant.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

The information is collected at the time of the grant application and during the grant period is required to identify the applicant, describe the project, and determine compliance with requirements. If no records are collected, it will not be possible for HUD to assess program performance and compliance. According to 24 CFR § 1003.505 of HUD’s implementing regulations, each ICDBG grant recipient must establish and maintain records that are adequate to allow the Secretary to determine whether or not the program is being carried out according to the applicable laws. ICDBG awards are subject to requirements of section 104(f) of the HCD Act, which authorizes GAO audits of grants and provides that “The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such recipients pertaining to such financial transactions and necessary to facilitate the audit.

7. Explain any special circumstances that would cause an information to be collected in a manner:

• requiring respondents to report information to the agency more than quarterly;

The special circumstance occurs when an ICDBG recipient must submit Federal Financial Report within 90-days of project completion, meaning that there are instances when a recipient could submit four quarterly reports and one close-out report in a program year.

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

Not Applicable

• requiring respondents to submit more than an original and two copies of any document;

Not Applicable

• requiring respondents to retain records other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

Not Applicable

• in connection with a statistical survey, that is not designed to produce valid and reliable results than can be generalized to the universe of the study;

Not Applicable

• requiring the use of statistical data classification that has not been reviewed and approved by OMB;

Not Applicable

• that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

Not Applicable

• requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information’s confidentiality to the extent permitted by law.

Not Applicable

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency’s notice, required by 5 CFR § 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

• Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping disclosure, or reporting format (if any) and the data elements to recorded, disclosed, or reported.

• Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years – even if the collection of information activity is the same as in prior periods. There may be circumstances that preclude consultation in a specific situation. These circumstances should be explained.

HUD published a Notice of Proposed Information Collection for Public Comments in the Federal Register, Volume 86; No. 56; Page 15954, on March 25, 2021. The public was given until May 24, 2021 to submit comments on the proposed collection. HUD received no comments on this proposed collection.

8. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

There are no provisions to provide any payments or gifts to respondents, other than remuneration of contractors or grantees.

8. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation or agency policy.

There is no assurance of confidentiality. This information is available under the Freedom of Information Act. In addition, the information collected under this request does not include information on individuals.

8. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

There are no questions of a sensitive nature included in the information to be collected.

8. Provide estimates of the hour burden of the collection of information. The statement should:

• indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally estimates should not include burden hours for customary and usual business practices;

• if this request covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in Item 13 of OMB Form 83-I; and

• provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead this cost should be included in Item 13.

There are approximately 574 Native entities throughout the country, which includes tribes, pueblos, Alaska native regional corporations, and Alaska Native villages. The Native entities may designate a tribal organization to submit an application and administer an ICDBG award on its behalf.

Based upon prior competition experience for the ICDBG program, HUD anticipates receiving 240 applications annually. The average application preparation time is 30 hours per application for a total of 7,200 burden hours. HUD estimates that it will make approximately 75 awards annually. Post grant award, the reports that the estimated 75 grant recipients must submit and the time it takes to complete the reports are summarized below. The estimated levels of effort are based on discussions with ONAP staff and their interactions with ICDBG recipient staff who prepare SF-425s.

• Federal Financial Reports (SF-425) are submitted quarterly and at grant close out. The Federal Financial Report has a preparation time of 30 minutes,

• Contract and Subcontract Activity Report (HUD-2516) reports are submitted by October 10 each year and preparation of this report takes approximately one hour.

• Annual Status and Evaluation Report is a narrative report that is submitted by November 15 of each year and at the time of project completion. It is assumed that an average project takes four years to complete. The preparation of the report takes approximately four hours.

Estimated Number of Respondents, Responses, and Burden Hours Per Annum

Type of Submission/Information Collection	Number of Respondents	Frequency of Submissions	Total Responses	Estimate Average Time (Hours)	Estimate Annual Burden (Hours)	Hourly Cost	Total Annual Cost
Grant Application (Includes SF-424, HUD-2880, HUD-2993, HUD-4123, HUD-4125)	240	1	240	30	7,200	$19.23	$138,456
Federal Financial Report (SF-425)	75	4	300	0.5	150	$19.23	$2,885
Contract and Subcontract Activity Report (HUD-2516)	75	1	75	1	75	$19.23	$1,442
Annual Status and Evaluation Report (ASER)	75	1.25	94	4	375	$19.23	$7,211
Totals	240		709		7,800		$149,994

Estimates of Annualized Cost to Respondents

Type of Submission	Total Annual Burden Hours	Hourly Rate*	Total Annual Cost
Grant Application (Includes SF-424, HUD-2880, HUD-2993, HUD-4123, HUD-4125)	7,200	$19.23	$138,456
Federal Financial Report (SF-425)	150	$19.23	$2,885
Minority Business Enterprise Report (HUD-2516)	75	$19.23	$1,442
Annual Status and Evaluation Report (ASER)	375	$19.23	$7,211
TOTAL	7,800		$149,994

*The hourly cost is based on a mid-level staff position in a mid-sized tribal government and represents an average annual salary of $40,000.

8. Provide an estimate of the total annual cost burden to respondents or record keepers resulting from the collection of information (do not include the cost of any hour burden shown in Items 12 and 14).

• The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life); and (b) a total operation and maintenance purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information. Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s) and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities;

• If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10) utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

• Generally, estimates should not include purchases of equipment or services, or portions thereof made: (1) prior to October1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.

There are no additional costs other than what is reported above.

8. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expresses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, ad 14 in a single table.

The estimated levels of effort are based on recent discussions with ONAP staff and their interactions with tribes. The estimated hours rate of $25/hour represents the mean in the FY 2020 GS-11, Step 1 schedule for an Area ONAP and the $46/hour represents the mean in the FY 2020 GS-13 Step 1 schedule for HQ ONAP.

Estimated Annualized Cost to the Federal Government
Type of Submission	Number of Respondents	Frequency of Submissions	Total Responses	Estimate Average Time Receiving, Reviewing, and Awarding (Hours)	Estimate Annual Burden (Hours)	Hourly Rate*		Total Annual Cost
Grant Application (Includes SF-424, HUD-2880, HUD-2993, HUD-4123, HUD-4125)	240	1	240	72	17,280	$ 35		$ 604,800
Federal Financial Report (SF-425)	75	4	300	5	1,500	$ 35		$ 52,500
Contract and Subcontract Activity Report (HUD-2516)	75	1	75	1	75	$ 35		$ 2,625
Annual Status and Evaluation Report (ASER)	75	1.25	94	4	375	$ 35		$ 13,125
TOTAL	240	varies	709		19,230			$ 673,050

8. Explain the reasons for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I.

Not applicable.

8. For collections of information whose results are planned to be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

The information collected is not for statistical use nor does its collection use statistical methods, however, the information is provided to Congress, upon request.

8. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

The OMB number and expiration date of the information collection will be displayed on the forms.

8. Explain each exception to the certification statement identified in item 19.

There are no exceptions to the certification identified in Item 19 of the OMB 83-I.

Signature of Senior Officer or Designee: X Colette Pollard, Departmental Paperwork Reduction Act Officer, Office of the Chief Information Officer

Date:

OMB-83-I 10/95