ACF-OCC-CCDF-PI-2025-X (Disaster Supplemental Funds for Child Care – 2023 and 2024 major disasters and emergencies)

ACF
Administration for
Children and
Families

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

1. Log No: ACF-OCC-CCDF-PI2025-DRAFT

2. Issuance Date: DRAFT

3. Originating Office: Office of Child Care
4. Key Words: Child Care and Development Fund (CCDF); disaster
recovery, supplemental funds, 2023 and 2024 disasters

PROGRAM INSTRUCTION
To: Eligible state, territory, and Tribal Lead Agencies administering child care programs under
the Child Care and Development Fund (CCDF) program, as amended, in areas affected by major
disasters and emergencies declared in 2023 and 2024.
Subject: Disaster Supplemental Funds for Child Care – 2023 and 2024 major disasters and
emergencies.
References: The Child Care and Development Block Grant (CCDBG) Act (42 U.S.C. 9857 et
seq); 45 CFR Parts 98 and 99; American Relief Act, 2025
https://www.congress.gov/118/bills/hr10545/BILLS-118hr10545enr.pdf (P.L. 118-158).
Purpose: 1) To provide information to eligible state, territory, and Tribal Lead Agencies
regarding the availability and distribution of disaster supplemental funds, and 2) to provide
guidance on allowable activities, how to apply, notice of federal interest, obligating and
expending funds, reporting requirements, grantee monitoring and other requirements.
Background: The American Relief Act, 2025 provides $250 million in supplemental CCDF
funding for necessary expenses directly related to the consequences of major disasters and
emergencies declared pursuant to the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) occurring in 2023 and 2024 1. The Administration for
Children and Families (ACF) determined that these funds will be used for child care recovery
grants to state, territory, and Tribal Lead Agencies administering the CCDF program in areas
affected by those disasters and emergencies.
Distribution of Funds
The American Relief Act, 2025 requires ACF to distribute the child care disaster supplemental
funding to eligible states, territories, and Tribes based on assessed need, notwithstanding the
allotment formula set forth in the CCDBG Act. Award amounts will be determined based on
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FEMA disaster declarations

DRAFT—For public comment

assessed need as demonstrated in the applications submitted to the Office of Child Care (OCC) at
ACF, subject to the availability of funding. See How to Apply for Funds and Review Process and
Funding Decisions for additional information.
Allowable Activities
These supplemental funds must be used for necessary child care recovery expenses directly
related to the consequences of major disasters and emergencies declared in 2023 and 2024,
including activities authorized under section 319(a) of the Public Health Service Act (42 U.S.C.
247d(a)). 2 While funds cannot be used for the sole purpose of preparing for future disasters,
recovery projects may have a collateral benefit of better preparedness for future disasters. These
funds may be used for alteration, renovation, construction, equipment, and other capital
improvement costs needed for child care recovery, including for child care facilities, and for
other allowable expenditures related to child care, as necessary to meet the needs of areas
affected by major disasters or emergencies declared in 2023 and 2024. Section 658F(b) of the
CCDBG Act (42 U.S.C. 9858d(b)) – which ordinarily prohibits states and territories from
expending regular CCDF funding for the purchase or improvement of land, or for the purchase,
construction, or permanent improvement (other than minor remodeling) of any building or
facility – does not apply to these disaster supplemental funds. ACF encourages state, territory,
and Tribal Lead Agencies to consider this an opportunity to address issues of child care supply in
affected areas through renovation and construction of new child care facilities, or purchasing of
land or existing facilities. Further, the supplemental appropriations law specifically allows these
funds to be used for reimbursement of expenses incurred prior to the date of enactment of the
law. Lead Agencies may request reimbursement for expenses incurred related to the impact of
the disaster or emergency that were not covered by other federal funds or insurance.
Lead Agencies should consider the recovery needs of all impacted child care providers,
regardless of participation in the child care subsidy program. This could include family child
care providers, center-based child care providers, license-exempt providers, and non-profit and
for-profit organizations. Organizations providing child care in Head Start settings may be
eligible as well.
ACF anticipates that Lead Agencies’ funding requests will fall into one or more of the following
categories:
Construction, Major Renovation or Alteration
This category includes construction, major renovation, or alteration of facilities, which could
include child care facilities or administrative buildings, or outdoor play spaces, including other
capital improvement and planning expenses (e.g., assessments, architectural or engineering
services, requests for bids). Lead Agencies should make a thorough assessment of their
temporary and long-term facility needs, including outdoor play areas.
(1)

(2)

Materials, Supplies, Furnishings, Vehicles, and Equipment

Section 319(a) of the Public Health Service Act authorizes "such action as may be appropriate to respond to the
public health emergency, including making grants, providing awards for expenses, and entering into contracts and
conducting and supporting investigations into the cause, treatment, or prevention of a disease or disorder as
described in paragraphs (1) and (2)."

2

DRAFT—For public comment

This category includes all costs necessary to purchase or replace lost or damaged operating
supplies, materials, furnishings, or equipment, such as curriculum resources or generators.
Reviews of losses should include indoor and outdoor play areas, kitchens, program and
administrative offices, and any other service areas. Costs may support supplies, materials,
equipment, and furnishings needed to support the delivery of temporary services or facility
activities until program services can be fully restored.
Other Child Care Supply Building
This category could include other activities to increase the supply of child care in impacted areas.
For example, Lead Agencies may consider providing start-up grants to incentivize new child care
providers, providing technical assistance on child care business practices, supporting family
child care networks, supporting unlicensed providers to become licensed, providing bonuses for
providers in underserved areas, doing outreach to providers who may have closed, or expanding
the use of grants and contracts for child care services.
(3)

Mental Health Consultation or Services
This category could include the costs of providing training and materials to child care providers
on trauma-informed practices or contracting with qualified practitioners to expand existing
mental health supports for children, families, and/or child care staff. This includes supporting
culturally appropriate and traditional healing practices in Tribal communities.
(4)

Quality Improvement Activities
This category could include providing materials and technical assistance to restore licensing
compliance, offering trainings, certifications, and other professional development opportunities
for staff, as well as other materials or services that improve the quality of services to children and
families in child care programs.
(5)

Direct Services for Eligible Children
This category could include reimbursement for costs to extend eligibility or to cover copayments
for impacted families.
(6)

Allowable activities are not limited to the activities listed above, as it is not possible to identify
in advance all the circumstances in which these disaster assistance funds may be needed.
Therefore, Lead Agencies may expend disaster supplemental funds for any other allowable
CCDF activity that addresses the needs of impacted communities and that are directly related to
the consequences of the major disaster or emergency for which the Lead Agency is requesting
these funds. Disaster recovery needs identified may not fully reflect how services were delivered
prior to the disasters but should be responsive to the current community needs.
These funds are not available for costs reimbursed by FEMA, or under a contract for insurance,
or by self-insurance. Additionally, the law indicates that the following requirements do not
apply: 1) minimum quality expenditure and infant and toddler quality expenditure requirements
at 658G of the CCDBG Act (42 U.S.C. 9858e), 2) the administrative cost cap at 658E(c)(3)(C)
(42 U.S.C. 9858c(c)(3)(C)), and 3) the direct services expenditure requirement 658(c)(3)(E) (42
U.S.C. 9858c(c)(3)(E)).

DRAFT—For public comment

How to Apply for Funds
To be considered for these funds, eligible state, territory, and Tribal Lead Agencies must submit
a cover letter signed by the Lead Agency official, and an application that includes the
information below.
(1) Name of the state/territory/Tribe, and name of CCDF Lead Agency.
(2) The relevant major disaster(s) or emergency declaration(s) under section 401 or 501 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170
and 5191) that impacted the state, territory, or Tribe, for which the applicant is requesting
these funds.
(3) A detailed description of the affected area, including impacted counties, number and type
of child care facilities damaged or closed, and approximate number of children or child
care slots impacted.
(4) A detailed description of the impact on children, families, staff, and child care services,
including impact on the availability of child care services that meet families’ needs,
impacts on children, family, and staff mental health as applicable, child care supply, and
child care quality.
(5) A description of each proposed activity by the categories listed below. Included in the
description should be an estimate of the amount of funds needed for each activity, and a
projected timeline for execution and completion of each activity, including the major
activities within each phase. Eligible applicants should engage in a comprehensive
assessment of programmatic and community needs that consider the immediate, interim,
and long-term impacts and associated costs resulting from these disasters.
a) Construction, major renovation, and alteration (See Attachment A: Additional
Requirements to Request Funds for Construction or Major Renovation)_
b) Materials, supplies, furnishings, vehicles, and equipment
c) Other child care supply building
d) Mental health consultation or services
e) Quality improvement activities
f) Direct services for eligible children
g) Other
(6) Information on previous expenses incurred related to the impact of the disaster or
emergency on the CCDF program that were not covered by other federal funds or
insurance, for which reimbursement is requested (if applicable).
(7) Total amount of funds requested for each disaster or emergency.
NOTE: A Lead Agency may request funding to address the impacts of more than one covered
disaster or emergency using a single application, as long as all required information is provided
for each disaster.
DRAFT—For public comment

This information must be submitted to [email protected] by August 1, 2025.
Review Process and Funding Decisions
ACF will conduct a thorough review of all applications received by the above due date. In
determining final award amounts, priority will be given to applications that demonstrate the
highest need and highest level of impact on child care providers and availability of child care
services that meet families’ needs as described by the eligible Lead Agency. ACF will review
data provided in the applications on the area(s) affected by the disaster or emergency, impacts on
child care providers, including the extent of the damages to facilities and numbers of providers
closed, the number of child care slots impacted, and impacts on the availability of services. ACF
will also consider how closely the applicant connects the proposed projects to be implemented
with the funds to the impacts of the disaster/emergency.
Obligating and Expending Funds
Lead Agencies must follow the applicable obligation and liquidation periods when expending
and accounting for the supplemental funds. Funds will be awarded by September 30, 2025. Lead
Agencies will have three years to obligate the funds, until September 30, 2028, and one
additional year to liquidate the funds, until September 30, 2029.
Reallotment of Supplemental Disaster Funds
State and Tribal Lead Agencies must notify ACF by April 1, 2028, if they will be unable to
obligate any part of their disaster supplemental funding allotment so that unobligated funds may
be reallotted to other eligible Lead Agencies. In accordance with 45 CFR 98.64, in most cases,
unobligated state funds identified by the April 1 deadline will be reallotted to other states in the
manner of their original allotments, and any unobligated Tribal funds will be reallotted to other
Tribes. Any funds not liquidated within the four-year period, by September 2029, will revert
back to the Federal government.
Reporting Requirements
States and territories must submit quarterly expenditure reports on the ACF-696 Financial
Reporting Form for CCDF State & Territory Lead Agencies, and Tribes, with the exception of
those that have consolidated their CCDF program into an approved Public Law 102-477 Plan,
must submit annual expenditure reports on the ACF-696T Financial Reporting Form for CCDF
Tribal Lead Agencies, until the supplemental funds are fully expended or expire. Lead Agencies
are required to provide programmatic updates on the use of funds; guidance on this requirement
will be provided later. Additionally, depending on the type of activities the Lead Agency
undertakes with these funds, a CCDF Plan amendment may be required, particularly if the
activity results in a significant change to the Lead Agency’s child care program or services.
Additional requirements related to real property reporting requirements for construction/major
renovation projects are explained in Attachment A.
Monitoring
ACF will monitor the Lead Agencies’ compliance with applicable statutory and regulatory
requirements for these funds by reviewing CCDF Plans and expenditure reports. Additionally,
ACF may issue additional monitoring protocols and may use on-site monitoring reviews to
ensure compliance.
DRAFT—For public comment

Questions
Please direct questions to [email protected] and the Child Care Regional
Program Manager (RPM) in the appropriate ACF Regional Office.
Resources
 American Relief Act, 2025
 2024 CCDF Final Rule
 Child Care and Development Block Grant Act (2014)

Attachments:

Ruth J. Friedman
Director
Office of Child Care

A – Additional Requirements to Request Funds for Construction or Major Renovation
B – Compliance with the National Environmental Policy Act
C – Compliance with the National Historic Preservation Act
D – Sample Notice of Federal Interest

DRAFT—For public comment

Attachment A
Additional Requirements to Request Funds for Construction or Major Renovation
I.

Background

The American Relief Act, 2025 (P.L. 118-158) allows eligible Lead Agencies to use the
supplemental funds for alteration, renovation, construction, equipment, and other capital
improvement costs, including for child care facilities. Section 658F(b) of the CCDBG Act (42
U.S.C. 9858d(b)) – which prohibits states and territories from expending regular CCDF funding
for the purchase or improvement of land, or for the purchase, construction, or permanent
improvement (other than minor remodeling) of any building or facility – does not apply to these
supplemental funds. ACF encourages Lead Agencies, including states and territories, to consider
this an opportunity to address child care supply through renovation, construction of new child
care facilities, or purchase of existing facilities in the areas impacted by a major disaster or
emergency occurring in 2023 and 2024. ACF further encourages Lead Agencies to focus on
infrastructure improvements and upgrades that promote climate-resilient facilities to increase
resilience to disasters and reduce or eliminate the long-term risk of loss of life, injury, damage to
and loss of property. Lead Agencies are encouraged to make a thorough assessment of their
temporary and long-term facility needs, including outdoor play areas.
Eligible Lead Agencies must demonstrate that the property requests are directly related to the
consequences of the major disaster or emergency for which the Lead Agency is requesting
funding. Funds cannot be expended for construction or major renovation costs until ACF
approval is granted.
II.

Applicability

The procedures and requirements described in Attachments A, B and C apply to state, territory,
and Tribal CCDF Lead Agencies that intend to use all or part of their disaster supplemental funds
allocation for construction or major renovation, or the purchasing of land or existing facilities.
Lead Agencies will describe their plans for minor renovations or alterations according to the
procedures described in the How to Apply for Funds section above.
Construction means the building of a facility that does not currently exist (45 CFR §
98.2). Examples of construction include but are not limited to, the creation of a building,
structure, or facility, including the installation of equipment, site preparation,
landscaping, associated roads, parking, environmental mitigation, and utilities, which
provides space not previously available. It includes freestanding structures, additional
wings or floors, enclosed courtyards or entryways, and any other means to provide usable
space that did not previously exist (excluding temporary facilities).
Major renovation is any renovation with a cost equal to or exceeding $350,000 in federal
CCDF funds for child care centers and $50,000 in federal CCDF funds for family child
care homes, with annual adjustments for inflation posted on the OCC website.
Renovations that exceed these thresholds but do not make significant changes to the
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structure, function, or purpose of the child care facility while improving the health, safety
and/or quality of child care services are considered minor renovation.
Minor renovation includes all renovation or alteration other than major renovation or
construction, as defined above. Examples of minor renovation include but are not
limited to, upgrading playgrounds, renovating bathrooms, installing railing, ramps, or
automatic doors to make the facility more accessible without any structural change
impact. Eligible Lead Agencies do not need to request or receive approval to spend
CCDF funds on minor renovation.
The term renovation as used in this Attachment A refers to major renovation.
As a part of its application, a Lead Agency may request to use disaster supplemental funds for
the cost of amortizing the principal and paying interest on loans for construction or major
renovation. Recipients must request and obtain approval before incurring these costs. This
requires Chief Grants Management Officer (CGMO) approval, which may delay the project.
Recipients that proceed without the proper approval do so at their own risk. ACF is not bound to
unauthorized decisions, unallowable costs, and/or risky terms. For more information, see
Sections V, VII, X, as well as Real Property Guidance.
For purposes of these procedures, the terms mortgage, loan, and deed of trust refer to any
agreement or instrument used to finance or secure financing for the construction or major
renovation of facilities with disaster supplemental funds.
Lead Agencies may request to use disaster supplemental funds to pay for the costs of the
construction or major renovation of a modular unit, including the costs of buying and installing
the unit, if the unit is fixed to the land (for example, placed on a foundation and permanently
connected to utility lines). These are classified as real property (please note: a modular unit that
is moveable, not fixed permanently to the land, is classified as equipment and not subject to the
Real Property requirements). If a Lead Agency is requesting funds for modular units classified as
real property, it must also provide a cost comparison of the life of the modular unit compared to
the construction of a more permanent structure, such as a brick-and-mortar building.
A Modular unit is a portable structure made at another location and moved to a site for
use by a Lead Agency to carry out a CCDF program (45 CFR § 98.2). It may be
classified as equipment or real property. Categorization of the property depends on the
determination of whether the unit is intended to be used as equipment or to be fixed to the
land in such a way that it becomes a permanent structure. Modular units intended to be
“fixed” rather than “moveable” must be classified as real property.
If a Lead Agency is requesting funding for more than one facility, it must seek ACF approval for
each project (even if the projects use identical plans and specifications). However, a Lead
Agency may use a single application to seek approval for more than one project, as long as all
required information is provided for each project.

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III.

Pre-Application Activities

Before applying to use disaster supplemental funds for construction or major renovation, a Lead
Agency shall conduct a community needs assessment to determine the need for construction or
major renovation. ACF has not prescribed a specific format or content for the community needs
assessment; however, the assessment should be designed to determine if there is a need to
construct or renovate a child care facility and, if so, how the facility can be developed in a
manner that best meets community needs. This process might involve:
•
•
•
•
•
•

assessing the condition and adequacy of existing facilities
examining the current need for child care in the community (including population
demographics, type of child care meets the needs of the community)
projecting whether the need for child care is likely to continue or change in the future
determining the best location and evaluating the site for the proposed facility(ies)
determining the size of the facility(ies) based on community needs and available
resources
estimating start-up and operating costs for the facility and evaluating whether
adequate resources exist to meet these costs

Lead Agencies should consult with their OCC Regional Office early in the process to discuss any
proposed plans prior to submitting a written application.
IV.

Application Requirements

Lead Agencies using disaster supplemental funds for construction or major renovation projects
must submit the below information:
(1)

A description and map of the site(s) on which the facility(ies) is (are) proposed to be
constructed or where major renovations are proposed, and an explanation of the
appropriateness of the location in relation to the Lead Agency's service area and the
community needs assessment.

(2)

Certification from an architect or engineer that the plans and designs for the building(s) are
sound, as required by the Lead Agency’s policies.

(3)

A description of the facility as it will be after construction or major renovation is complete,
including:
a) information on the size and type of structure.
b) the number and description of rooms.
c) the lot on which the building is located (including the space available for a
playground and for parking).
d) the number of children the facility will serve and their age group.
For major renovation requests, describe and identify the current condition of the facility, as
well as the proposed renovations.
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(4)

A description of the aspects of the building(s) and physical premises that will ensure
children’s health and safety (e.g., appropriate diaper changing and hand washing areas;
sufficient heating, cooling, and ventilation; secure storage space for any hazardous
materials; smoke detectors or other fire warning devices; adequate exits in case of
emergency; etc.)

(5)

A description of the elements of the facility(ies) that will help create a developmentally
appropriate learning space (e.g., child-sized plumbing fixtures, low windows for children to
look out, sufficient play space, age-appropriate play structures, art, etc.). The Lead Agency
is encouraged to hire an architect or other expert who has experience in designing spaces
for infants, toddlers, and children.
NOTE: A Tribal Lead Agency may describe the culturally significant elements, if any,
in the facility’s design or major renovation (e.g., use of certain building materials,
landscaping, play space).

(6)

A proposed time schedule for each major activity of the construction or major renovation
and occupancy of the facility(ies). This schedule may be estimated and listed by month.

(7)

The intended uses of the facility(ies) proposed to be constructed, or on which major
renovations are proposed, and information about the percentage of floor space that will be
used to provide direct services to children. If the facility is to be used for other purposes in
addition to the operation of the child care program, the Lead Agency must state what
portion of the facility is to be used for such other purposes. If the facility is to be used for
purposes in addition to the operation of the CCDF program, costs must be allocated in
accordance with applicable cost principles (45 CFR Part 75 Subpart E). The costs must be
allocated to programs benefitting from the facility based on usage.

(8)

Documentation of all other sources and uses of non-CCDF funds for the construction or
major renovation, including any restrictions or conditions imposed by other funding
sources. The documentation must include a cost allocation plan for any other facility that is
shared with the other programs.

(9)

The terms of any proposed or existing loan(s) related to the construction or major
renovation of the facility and the repayment plans (detailing balloon payments or other
unconventional terms, if any).
NOTE: Any loan or mortgage agreement, including a deed of trust, or any other instrument
used to finance the construction or major renovation secured by the property (or security
agreement in the case of a modular unit which is proposed to be purchased under a chattel
mortgage) shall require the lender, in the case of default by the Lead Agency, to notify
ACF before foreclosing on the property.
The agreement must provide that ACF has the right to cure the default, and that the lender
shall accept the payment of money or performance of any other obligation by ACF, or its
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designee, for the Lead Agency, as if such payment of money or performance had been
made by the Lead Agency.
The agreement shall also provide that the lender will not foreclose on the property until at
least 60 calendar days after ACF is notified of the default. This 60-day period will allow
time for the responsible ACF official to designate a replacement Lead Agency, which shall
assume all the obligations of the Lead Agency under the loan (see Section VIII for more
information).
(10) An estimate of the total cost of the proposed construction or major renovation. The estimate

must provide a breakdown by facility and major cost category, such as: demolition and
removal; site work; general construction/major renovation; plumbing; heating, ventilation,
and air conditioning; electrical; equipment; architectural and engineering fees. Provide a
copy of written documentation, such as a written estimate prepared by a licensed architect
or engineer, to support the cost estimate.
a) Estimated one-time costs, including:
1. Planning costs
2. labor, materials, and services necessary for the functioning of the
facility
3. down payment
4. professional fees
5. moving expenses
6. cost of site preparation
7. initial equipment for the facility (equipment means items that are
tangible, nonexpendable personal property having a useful life of
more than five years)
b) An estimate of ongoing costs such as staffing costs, supplies, insurance
premiums, maintenance costs, property taxes, and any other operating
costs for the facility or the child care program. When planning for
construction or major renovation, the Lead Agency should carefully
consider whether it would have sufficient funds to cover ongoing costs
necessary to operate the facility after the construction or major renovation
is completed and the impact on the Lead Agency’s ability to meet its
child care services obligations.

FOR MODULAR UNITS ONLY: Provide a cost comparison of the life of the modular
unit compared to the construction of a more permanent structure, such as a brick-andmortar building.
(11) FOR TRIBAL LEAD AGENCIES ONLY: A statement of the amount of construction or

major renovation costs that will be paid with other CCDF funds listed separately by the
Federal fiscal year in which the CCDF funds become available. It is important to ensure
funds are available for use in the Payment Management System (PMS).
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NOTE: The application procedures described in this Program Instruction apply only to
disaster supplemental funds. A Tribal Lead Agency using regular CCDF funds for
construction or major renovation must use the normal process. The Tribal Lead Agency
should consult the OCC Regional Office for additional guidance. See Procedures for
Requests from Tribal Lead Agencies to use CCDF Funds for Construction or Major
Renovation of Child Care Facilities.
(12) A statement of who owns the land on which the facility is/will be located. A Lead Agency

may use these disaster supplemental funds to purchase land on which to construct a child
care facility. If the Lead Agency proposes to construct or renovate a facility located on land
that it does not own, the Lead Agency must describe and provide a copy of the easement,
right of way or land lease it will obtain or has obtained to allow it undisturbed use and
possession of the facility for the purpose of operating a CCDF program.
NOTE: The land lease or other similar interest in the underlying land must be long enough
for the CCDF program to receive the full value of the grant-funded improvements. The
term of the lease or other arrangement should in most cases be for a period of years that is
at least equal to the estimated useful life of the facility. The lease must contain certain
information related to the Federal interest (see Section VIII).

(13) FOR MAJOR RENOVATION REQUESTS ONLY: The Lead Agency must include a

statement indicating whether the Lead Agency owns the facility to be renovated. If the
Lead Agency does not own the facility, the application must include information about the
owner, a copy of written permission from the owner allowing the proposed major
renovation, and a copy of the lease for the facility.

NOTE: If the Lead Agency does not own the facility to be renovated, the Lead Agency
must demonstrate that it has secured a lease that will assure the Lead Agency has access to
the facility for a reasonable period, taking into consideration the amount of CCDF funds
used to renovate the facility. In most cases, a minimum of five years (from the date the
major renovation is completed) is required, unless justified. The lease must contain certain
information related to the Federal interest (see Section VIII).
a) Written assurance that the Lead Agency will provide and maintain
competent and adequate oversight and inspection during all phases of the
project at the work site to ensure that the completed work conforms to the
approved plans and specifications.
b) A description of specific steps the Lead Agency will undertake to ensure
adequate oversight and inspection, including the qualifications of personnel
who will be performing oversight and inspection tasks.
(14) FOR LEAD AGENCIES PASSING FUNDS TO SUBRECIPIENTS: Lead Agencies

awarding funds to sub-recipients to undertake construction or major renovation projects
should provide the following in their applications:

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a) A detailed description of the Lead Agency’s policies and processes for
soliciting and reviewing applications and awarding funds.
b) A description of the entities to whom the Lead Agency is awarding the
funds for construction or major renovation.
c) A detailed description of the Lead Agency’s policies and processes for
monitoring sub-recipients throughout the planning and building process,
including meeting the requirements for pass-through entities set forth at 45
CFR 75.352. This should include the monitoring of expenditures and project
completion.
(15) Written assurances that the facility will be constructed or renovated to comply with:

a) All applicable licensing and code requirements to ensure the health and
safety of the children and child care staff;
b) The access requirements of the Americans with Disabilities Act (42 U.S.C.
§ 12101 et seq.), if applicable;
c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C.
§794);
d) The Flood Disaster Protection Act of 1973 (42 U.S.C. § 4002 et seq.), if
applicable; and,
e) The Earthquake Hazards Reduction Act of 1977 (42 U.S.C. § 7701 et seq.),
if applicable.
(16) An assessment of the impact of the proposed construction or renovation on the human

environment, addressing any significant change in land use (including substantial increases
in traffic in the surrounding area due to the provision of transportation services), pursuant
to the National Environmental Policy Act of 1969 (42 U.S.C. §4332(2)(C)) and its
implementing regulations (40 CFR 1500-1508). See Attachment B for guidance regarding
the National Environmental Policy Act (NEPA).

(17) A report showing the results of tests for environmental hazards present in the facility,

ground water, and soil (or justification why such testing is not necessary). The report (or
justification) is required regardless of whether the Lead Agency is required to submit a
complete environmental assessment in accordance with NEPA.

(18) FOR MODULAR UNIT REQUESTS ONLY: A statement describing procedures for

purchasing the modular unit. This must include a copy of the unit's specifications. See
Section XI regarding additional requirements for modular units.

V.

Fiscal Procedures

Use of Construction/Major Renovation Funds for Other CCDF Activities. If funds approved
for construction or major renovation are no longer needed for construction or major renovation,
the Lead Agency must submit a written request to OCC. The written request must: 1) specify the
amount of funds that will be used for CCDF activities other than construction or major
renovation, 2) provide an explanation as to why the full construction amount will not be spent, 3)
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include documentation of the status of the construction plans and 4) be signed by the CCDF Lead
Agency official. The Lead Agency must receive approval from ACF before funds may be used
for other allowable CCDF activities related to the impacts of.
Real Property Reporting
SF-429-B Request to Acquire, Improve, or Furnish: The recipient (and on behalf of
subrecipients) proposing to use CCDF funds for alteration, renovation, construction, or other
capital improvement costs must submit the Real Property Status Report SF-429 Cover Page and
SF-429-B (Request to Acquire, Improve, or Furnish) along with the additional information
required by this PI whenever a recipient is seeking ACF approval to use CCDF funds to engage
in real property expenditures on child care facilities as defined in 45 CFR § 98.2 and this PI.
Information included in SF-429-B can be cross-referenced in the GrantSolutions Online Data
Collection (OLDC) system. Instructions on how to access and submit are available at:
https://www.acf.hhs.gov/occ/resource/ccdf-acf-pi-2017-06 and
https://www.acf.hhs.gov/occ/policy-guidance/ccdf-acf-pi-2017-06 attachment
SF-429-C Disposition or Encumbrance Request: The recipient (and on behalf of subrecipients)
must submit at closeout and whenever a recipient is seeking ACF approval to sell, transfer, or
encumber (mortgage) property subject to a federal interest, including the refinancing of existing
indebtedness and subordination of a federal interest to the rights of a lender under 45 CFR §
98.84. SF-429-C implements the requirements for grantees making requests for disposition of
real property under 45 CFR § 98.84 (d).
SF-429-A General Reporting: The recipient (and on behalf of subrecipients) must submit a Real
Property Status Report, SF-429-A General Reporting annually until the federal interest expires
in 10 years of the issued award or when formal disposition is completed before the expiration
date. A separate Attachment A is required for every parcel of real property subject to a federal
interest. This report is due on the same date as the State/Territory Lead Agency’s ACF-696 or
the Tribal Lead Agency’s ACF-696T CCDF Financial Report.
VI.

Application Process

Lead Agencies requesting disaster supplemental funds for construction or major renovation must
meet all application requirements described in Attachments A, B and C to use the funds for
construction or major renovation projects. While the Lead Agency should submit the full
construction application as soon as possible, OCC acknowledges that meeting all the
requirements may take a significant amount of time. At minimum, the Lead Agency must submit
the information requested in the How to Apply for Funds section by the August 1, 2025
deadline. OCC will work with the Lead Agency to ensure any unmet requirements are fulfilled in
a timely manner to enable the Lead Agency to meet the obligation and liquidation deadlines for
these funds, and OCC and OGM to conduct a thorough review.
OCC will notify the Lead Agency in writing regarding whether a request is approved. The
notification will include a specific amount of disaster supplemental funds that can be used for
14

construction or major renovation, based on the Lead Agency's cost estimate in its application and
ACF’s determination of need within the available supplemental funding for all eligible
applicants. The Lead Agency may not spend more than the approved amount of disaster
supplemental funds on construction or major renovation unless it submits and receives approval
for an amended application. However, the Lead Agency may use non-CCDF funds or leverage
other monies for construction or major renovation.
To make any material changes in the scope, nature, or projected costs of a project once the
original application is approved, the Lead Agency must request and receive approval for an
amended application that describes the changes. ACF must approve the amended application
before the Lead Agency can implement the changes. In addition, the authorization to use
funds for construction or major renovation is subject to special conditions and post-award
requirements described in ACF’s approval notice and in the sections below.
VII.

Protection of Federal Interest

(1)

The Federal government has an interest in property that is constructed, renovated, or
otherwise acquired with Federal funds. This interest takes the form of restrictions on the
use and disposition of the property in accordance with 45 CFR 75.318. Use of the facility
constructed or renovated with disaster supplemental funds during its useful life for other
than the purpose for which the facility was funded, without the prior express written
approval of the responsible ACF official, is prohibited. Facilities constructed or renovated
with CCDF funds may not be mortgaged, used as collateral, sold, or otherwise transferred
to another party, without the prior written permission of the responsible ACF official. The
Federal interest also is manifested in the requirement that ACF receive a share of the
proceeds from any sale of the property, as determined by the Federal share provisions of 45
CFR 75.318. ACF may, at its sole discretion, subordinate its interest in such property to
that of a lender that finances the construction or major renovation of the property.

(2)

The Federal interest expires in 10 years from the date the award was issued unless formal
disposition occurs between this timeframe. Please note: To dispose of property before the
10-year expiration, you must compensate ACF for its share before the federal interest is
released on the property. For more information, see Section VIII and the Real Property
Notice of Federal Interest (NFI) guidance, https://www.acf.hhs.gov/grants/managegrant/property/real-property.

(3)

Federal interest provisions will not apply to the renovation or rebuilding of privatelyowned family child care homes. Lead agencies should develop parameters on the use of
funds for the renovation or rebuilding of privately-owned family child care homes. For
example, lead agencies can limit funds for renovation or rebuilding of privately-owned
family child care homes to licensed providers or providers that meet Quality Rating and
Improvement System (QRIS) benchmarks or other systems of quality. Lead agencies could
require providers to demonstrate a history of providing child care services, including
participation in the CCDF subsidy program. In addition, Lead Agencies may require
providers to sign written agreements indicating that they will use renovated or rebuilt
privately-owned family homes for child care purposes for a specified period of time.
15

(4)

At the commencement of construction or major renovation of a facility with CCDF funds,
the recipient shall record a Notice of Federal Interest in the appropriate official records for
the jurisdiction in which the facility will be located (unless the facility will be located on
Tribal lands held in trust by the U.S. Government). See Attachment D for a sample Notice.
A Notice is not required for a facility on Tribal lands held in trust by the U.S. Government;
however, there is still a Federal interest in any facility constructed or renovated with CCDF
funds. The Notice must be recorded in the official records and submitted to the OCC
Regional Office within ten working days of the commencement of the construction or
major renovation. The Notice must include the following information (except for major
renovations on leased facilities or construction on land not owned by a Lead Agency):
a) The date of the award of CCDF funds for the construction or major renovation of
b)
c)
d)
e)
f)

(5)

the property to be used as a child care facility, and the address and legal
description of the property;
That the use of CCDF funds incorporated conditions which restrict the use of the
property and provide for a Federal interest in the property;
That the property may not be used for any purpose inconsistent with that
authorized by the CCDBG Act and applicable regulations;
That the property may not be mortgaged, used as collateral, sold or otherwise
transferred to another party, without the prior written permission of the
responsible ACF official;
That these grant conditions and requirements cannot be altered or nullified
through a transfer of ownership; and
The name (including signature) and title of the person who completed the Notice
for the Lead Agency, and the date of the Notice.

In the case of a leased facility undergoing major renovations, the Notice of Federal Interest
shall be a copy of the executed lease and all amendments. In the case of a facility to be
constructed on land not owned by the Lead Agency, the Notice of Federal Interest shall be
the land lease or other document protecting the Federal interest. In the event that filing of a
lease is prohibited by law, the Lead Agency shall file an affidavit signed by the
representatives of the Lead Agency and the lessor stating that the lease includes terms
which protect the right of the Lead Agency to occupy the facility for the term of the lease.
The lease or affidavit (as substitute for the lease) serving as a Notice of Federal Interest
shall include the following information:
a) The address and legal description of the property;
b) A statement indicating that the grant incorporated conditions which include

restrictions on the use of property and provide for a Federal interest in the
property for the term of the lease or other arrangement; and
c) A statement indicating that the property may not be used for any purpose during
the lease or other arrangement that is inconsistent with that authorized by the
CCDBG Act and applicable regulations.

16

Title to a facility constructed or renovated with CCDF disaster supplemental funds vests
with the grantee upon acquisition, subject to the provisions of this Program Instruction
(except for facilities on Tribal lands where the title is held in trust by the U.S. government).
The Federal government assumes no liability for projects constructed or renovated with
CCDF funds.
VIII. Disposition of Property
CCDF regulations at 45 CFR 98.84 provide that the use of real property purchased or
constructed with CCDF funds during its useful life for purposes other than that which the real
property was funded, without the prior written approval of ACF, is prohibited. Upon
expiration of the useful life of real property purchased or constructed with CCDF funds,
please refer to the ACF Real Property Disposition guidance,
https://www.acf.hhs.gov/grants/manage-grant/property/real-property. At the Office of Child
Care discretion, only two of the three disposition options are available of such property by the
Lead Agency:
(1)
(2)

The Lead Agency could retain title to the property and use their own funds to compensate
the Federal government for its share of the fair market value of the real property in
accordance with 45 CFR 75.318(c)(1);
The Lead Agency could sell, transfer, or otherwise dispose of the property and use the
proceeds to compensate the Federal government for its share of the fair market value of the
real property in accordance with 45 CFR 75.318(c)(2);

Before taking any of these actions or using the subject real property for an activity outside the
scope of the approved child care activity, the Lead Agency must first submit a written request
and receive written approval from ACF. The written request should include the following
information:
(1)
(2)
(3)
(4)

A description of why the real property is not being used to provide child care services;
A description of what the Lead Agency intends to do with the real property;
A statement identifying any additional funds (other than CCDF) used to purchase or
construct this real property; and
As part of the disposition, the Lead Agency is required to complete and submit the SF-429
Cover page, SF-429 Attachment C Disposition Request, and supporting documentation in
the GrantSolutions OLDC system, https://www.grantsolutions.gov, for review and
approval. If you have any technical issues with OLDC or any of the forms in OLDC, please
contact the GrantSolutions Help Desk at 202-401-5282, 866-577-0771, or
[email protected].
NOTE: With respect to determining the Federal share of the fair market value of real
property that is being disposed in accordance with 45 CFR 75.318(c), Federal
regulations at 45 CFR 75.2 define “Federal share” to mean, “the portion of the total
project costs that are paid by Federal funds.”
When Federal funds have been used only to contribute to equity in a property, the
17

calculation of the federal share is determined by dividing the total amount of Federal
funds contributed to the construction and/or major renovation of the property divided by
the total cost of acquiring and improving the property [i.e., the Federal contribution plus
any non-Federal contribution (such as Lead Agency’s contribution)]. This percentage is
then multiplied by the current fair market value of the property to determine the Federal
share, which must be returned to the Federal government in either of the first two options
set forth by 45 CFR 75.318 (c).
When Federal funds have been used to pay interest on a loan used to construct and/or
renovate real property, the calculation is the same as above, except that Federal funds used
to pay principal and interest on the loan shall also be included in the numerator and all
principal and interest payments plus the remaining principal balance on the loan shall also
be included in the denominator. Thus, the Federal share would be calculated by dividing
the total Federal contribution to the construction and/or major renovation costs of the
property, including contributions to the equity in the property (e.g., down payments) as
well as any principal and interest payments on a loan, divided by the total acquisition,
construction, and/or major renovation cost of the property, including contributions to the
equity in the property, all principal and interest payments, and any remaining principal
balance on the loan. This percentage would then be multiplied by the current fair market
value of the property to determine the Federal share, which must be returned to the Federal
government in either of the first two options set forth by 45 CFR 75.318(c).
The Lead Agency may submit the request to the OCC addresses listed in Section VII. The
Tribal Lead Agency is encouraged to involve its OCC Regional Office early in the process
and must discuss with its Regional Office any proposed disposition prior to submitting a
written request.
IX.

Rights and Responsibilities in the Event of a Mortgage or Loan Default

The Lead Agency (and on behalf of subrecipients) must request and receive the CGMO
approval before moving forward on a mortgage, loan, or other financing arrangement. Per
HHS policy, financial arrangements with or without subordination are considered exceptions
and require a comprehensive review process, which may delay the Tribes efforts with the
facility.
Any assignment of the facility and mortgage/loan repayment responsibilities by ACF to any
party, other than ACF, will be made to an agency financially capable of assuming the
mortgage/loan, and will be subject to prior approval of the mortgagee/lender or creditor.
The Lead Agency (and on behalf of subrecipients) is required to complete and submit the SF-429
Cover page, SF-429 Attachment C Encumbrance Request, and supporting documentation in the
GrantSolutions OLDC system, https://www.grantsolutions.gov, for review and approval by ACF.
If you have any technical issues with OLDC or any of the forms in OLDC, please contact the
GrantSolutions Help Desk at 202-401-5282, 866-577-0771, or [email protected].
The Lead Agency must immediately notify the OCC Regional Office both by telephone and in
18

writing of a default of any description on the part of the grantee under a real property or
chattel loan, deed of trust, or mortgage obtained in connection with a facility constructed or
renovated with CCDF funds.
In the event ACF (or its designee) chooses not to cure a default, the procedures for
calculating the Federal share of the property, as determined by 45 CFR 75.318, shall apply.
X.

Insurance and Maintenance

The Lead Agency shall obtain insurance coverage for each facility constructed or renovated
with disaster supplemental funds. The coverage must begin at the commencement of the
expenditure of costs in fulfillment of construction or major renovation work. A facility
constructed or renovated with disaster supplemental funds must be supported by:
(1)

A title insurance policy that insures the fee interest in the facility for an amount not less
than the full appraised value, and which contains an endorsement identifying ACF as a loss
payee to be reimbursed if the title fails (except title insurance is not required for a facility
on Tribal lands held in trust by the U.S. government); and

(2)

A physical destruction insurance policy, including flood insurance where appropriate,
which insures the full replacement cost of the facility from risk of partial and total physical
destruction. The insurance policy is to be maintained for the period the facility is used by
the grantee.

The Lead Agency shall submit copies of such insurance policies to the OCC Regional Office
within five working days of completion of the construction or major renovation of the facility.
Lead Agencies passing funds to subrecipients should request and maintain these reports. If the
Lead Agency has not received the policies in time to submit copies within this period, it shall
submit evidence that it has obtained the appropriate insurance policies within five working days
of the completion of the construction or major renovation, and it shall submit copies of the
policies within five working days of their receipt. The insurance policies must contain a
requirement for the insurance company to notify the OCC Regional Office of any changes in the
policy or coverage. In the event of a payout under an insurance policy, the Lead Agency may be
instructed to remit the Federal share of the proceeds to ACF.
In lieu of the requirements above, state or territorial Lead Agencies that own the facility
constructed or renovated with disaster supplemental funds may demonstrate to ACF that the
insurance coverage for such property is equivalent to the insurance coverage it maintains for
other property owned by the state or territory.
The Lead Agency must ensure that facilities constructed or renovated with disaster supplemental
funds are maintained in a manner consistent with the purposes for which the funds were provided
and in compliance with property standards and building codes for the useful life of the property.

19

XI.

Other Administrative Provisions

Allowable Costs. Consistent with the cost principles referred to in 45 CFR Part 75 Subpart E
Cost Principles, reasonable fees and costs associated with and necessary to the construction
or major renovation of a facility are allowable costs for CCDF funds, but require prior,
written approval from ACF.
Audits. Any audit of a Lead Agency which has constructed or renovated a facility with CCDF
funds shall include an audit of any mortgage or encumbrance on the facility. Reasonable and
necessary fees for this audit and appraisal are allowable costs for CCDF funds.
Davis-Bacon Act. The U.S. Department of Labor has found no basis for application of the
Davis- Bacon prevailing wage rates to construction and major renovation projects funded by
CCDF. The CCDBG Act does not impose Davis-Bacon requirements. However, Davis-Bacon
requirements may still apply if a project is partly funded by another program that is subject to
the Davis-Bacon Act. In such circumstances, a Lead Agency should contact the other program
with any questions regarding the applicability of Davis-Bacon. States and territories should
follow their own laws and policies regarding Davis-Bacon or other prevailing wage
requirements.
Final Contract. The Lead Agency must submit to the OCC Regional Office, within ten
working days of its execution, a copy of the final contract to construct or renovate the facility.
The total price of any contract must be fixed, and the contract must include a provision stating
that the price may not be increased after the contract is entered into except for reasons that are
beyond the builder's control and unforeseeable at the time into which the contract was entered.
Subrecipients should submit these reports to the Lead Agency to maintain.
Final Inspection Report. Upon completion of the construction or major renovation, the Lead
Agency must submit a final inspection report that demonstrates the structural soundness and
safety of the facility (if the facility is a modular unit; see Section XII). The report must be
submitted to the OCC Regional Office within 30 calendar days of the substantial completion
of the construction or major renovation. Subrecipients should submit these reports to the Lead
Agency to maintain.
Income. Income from the sale of equipment or real property constructed in whole or in part
with CCDF funds is subject to the provisions of 45 CFR 75.307 (d).
Legal Documents. The Lead Agency must submit to the OCC Regional Office, within ten
working days of their execution, certified copies of the deed, loan instrument, mortgage, and
any other legal documents related to the construction or major renovation of the facility or to
the discharge of any debt secured by the facility. Subrecipients should submit these reports to
the Lead Agency to maintain.
Procurement Procedures. All facility construction and major renovation transactions must
comply with the procurement procedures in 45 CFR 75.326-335, and must be conducted in a
manner to provide, to the maximum extent practicable, open, and free competition. States and
20

territories are not subject to these provisions and should follow their own procurement
procedures.
Records. The Lead Agency must retain all records pertinent to the construction or major
renovation of a facility for a period equal to the period of the grantee's use of the facility plus
three years, or for three years after the Lead Agency makes final payment and all pending
matters (including any ongoing audits, claims, or litigation) are completed or closed, whichever
is later.
Statement by Licensed Engineer or Architect. If the total cost of the project exceeds
$100,000, the Lead Agency must submit (after receiving ACF approval and prior to the start of
actual construction or major renovation) a statement by a licensed engineer or architect
indicating that: (1) the overall estimated cost of the proposed construction/major renovation
and the cost of its individual elements are within the range for similar projects in the same
community, and (2) the facility will be structurally sound if constructed or renovated in
accordance with the proposed design. The statement may be made by any engineer or
architect, in the public or private sector, who is qualified to judge the structural soundness of
the facility.
XII.

Additional Requirements for Modular Units

The procedures in this section of the Program Instruction apply to construction or major
renovation of modular units classified as real property. In addition, the following requirements
apply:
(1)

An application for the installation of a modular unit must include a statement describing the
procedures that will be used by the Lead Agency to purchase the modular unit. This
statement must include a copy of the specifications for the unit that is proposed to be
purchased and an assurance that the Lead Agency will comply with procurement
procedures in 45 CFR 75.326 through 75.335, including the assurance that all transactions
will be conducted in a manner to provide, to the maximum extent practical, open, and free
competition. States and the territories are not subject to these procurement provisions and
should follow their own procurement procedures.

(2)

The Lead Agency must have the modular unit inspected to judge the soundness and safety
of the unit and its installation. The unit must be inspected by a licensed engineer or
architect unless the use of another inspector is justified by the Lead Agency and approved
by ACF. The Lead Agency must submit to the OCC Regional Office the engineer's or
architect's inspection report within 30 calendar days of the modular unit’s installation.
Subrecipients should submit these reports to the Lead Agency to maintain.

(3)

All reasonable costs necessary for the installation of a modular unit, the installation of
which has been approved by ACF, are payable with disaster supplemental funds. Such
costs include, but are not limited to, payments for public utility hook-ups, site surveys and
soil investigations.

21

(4)

A modular unit that has been approved for construction or major renovation in one location
may not be moved to another location without the prior written permission of the OCC
Director.

(5)

Modular units that are constructed or renovated with disaster supplemental funds or which
are affixed to land that is not owned by the grantee, must have posted in a conspicuous
place the following notice:
"On (date of approval), the Administration for Children and Families (ACF) approved a
request for (Name of Lead Agency) to use funding from its Child Care and Development
Fund (CCDF) award(s) for the acquisition of this modular unit. The use of Federal funds
incorporated conditions which included restrictions on the use and disposition of this
property and provided for a continuing Federal interest in the property. Specifically, the
property may not be used for any purpose other than the purpose for which the facility
was funded, without the prior express written approval of the responsible ACF official or
sold or transferred to another party without the prior written permission of the responsible
ACF official. "

22

Attachment B
Compliance with the National Environmental Policy Act
An application to use disaster supplemental funds for construction/major renovation must
include an environmental assessment in accordance with the National Environmental Policy
Act (NEPA). The purpose of the required environmental review is to determine whether the
proposed construction or major renovation will or will not significantly affect the quality of
the human environment. Please note that no action related to real property meets the
“categorical exclusion” criteria outlined under NEPA (43 CFR 46.210); therefore, the NEPA
requirements, including the environmental assessments and reports apply.
Contents. In response to item 12(a) of the construction/major renovation application
requirements, the assessment must:
1. Describe the potential environmental impacts of the proposed construction or major

renovation project. This description should indicate whether the proposed
construction/major renovation would significantly affect the quality of the human
environment. (See additional guidance below under Criteria).

2. Indicate whether the proposed construction/major renovation site is near any of the

following: historic or cultural resources, park lands, prime farmlands, habitats of
endangered species, wetlands, wild and scenic rivers, streams and other bodies of water,
coastal zones, floodplains, marine sanctuaries, or sole source aquifers. Generally, for
projects with these unique characteristics, the Administration for Children and Families
will need to consult with appropriate Federal or State agencies in order to approve the
proposed construction/major renovation.

3. Describe measures, including suitable pollution prevention techniques, which would be

taken to avoid or mitigate potential environmental impacts associated with the proposed
construction/major renovation project. Such measures might include soil erosion,
sedimentation controls, and the use of recycled products. In addition, to reduce
greenhouse gas emissions, utilizing carbon pollution free electricity in conjunction with
building electrification strategies, zero-emission vehicles, utilizing energy and water
conservation measures, acquiring construction materials with lower embodied carbon,
incorporating carbon sequestration, incorporating sustainable land management
techniques.

4. Describe in detail the environmental impact of reasonable alternatives to the proposed

construction/major renovation project (including delaying the project, or choosing not to
construct/renovate), particularly those that will enhance the quality of the environment
and avoid some or all the adverse environmental effects of the proposed action.

5. Compare the environmental benefits and risks of the proposed construction/ major

renovation project and the reasonable alternatives (identified in item 4 above), identifying
the preferred action based on environmental factors.
23

6. List those persons preparing the assessment and their areas of expertise, and persons and

agencies consulted. It is strongly recommended that the grantee utilize a qualified
environmental expert who can provide environmental planning and documentation
services. Preparation of the assessment should involve consulting with interested agencies
and persons. In addition, the Lead Agency should provide public notice of: (1) any public
hearings or meetings that occur as part of the preparation of this assessment; and (2) the
availability of the environmental assessment and related documents for review by the
public. Public notice might include publication in local newspapers or newsletters, use of
other local media, or direct mailing to owners and occupants of nearby or affected
property.

7. List complete citations for all referenced documents and include copies of referenced

articles that are not generally available.

Criteria. The assessment should determine whether the proposed construction or major
renovation will or will not “significantly affect the quality of the human environment” by
means of the following steps:
Identify those things that will happen as a result of the proposed construction or major
renovation project. A project normally produces a number of consequences (e.g., will involve
construction activity; will result in the provision of child care services).
Identify the hazard risks from climate change as a result of the proposed construction. Climate
change poses a current and increasing threat to human health and the environment by
prompting disruption of operations and displacement as a result of fire, hurricanes, flood,
disease, and famine. Analyze the potential risks to climate change through utilizing Federal
government climate change risk screening tools and reports.
Identify the greenhouse gas emissions as a result of the proposed construction and renovation.
A project emits direct and indirect greenhouse gas emissions (GHG), which should be
quantified using available from Council on Environmental Quality (CEQ) GHG quantification
tools.
Identify the “human environments” that the proposed construction/ major renovation will affect.
The human environments include terrestrial, aquatic, subterranean and aerial environments, such
as islands, cities, rivers, or parts thereof.
Identify the kinds of changes that the proposed construction/major renovation will cause on
these “human environments.” A change occurs when a proposed construction/major
renovation project causes the human environment to be different in the future than it would
have been absent the proposed project. For example: an increase in a human population; the
introduction of a new chemical compound to natural environments; or an increase of traffic
through residential neighborhoods. Effects in both the near term (e.g., during the construction
or major renovation process) and reasonably foreseeable future (e.g., after the construction or
major renovation has been completed) must be considered. Identify the magnitude of any
24

change (e.g., whether the change will affect one neighborhood, the entire tribal service area).
Identify whether these changes are significant. Determining whether or not a proposed
construction/major renovation project will cause significant changes involves a case-by-case
determination. This determination should consider:
•

•

•
•
•

•
•
•
•

•
•

•
•

Whether the project included strategies for public involvement in environment decisions.
Including: encouraging public participation among the community that may suffer a
disproportionately high and adverse human health or environmental effect from a
proposed action to develop and comment on possible alternatives as early in the NEPA
process; addressing any barriers (linguistics, institutional, cultural, economic, historical, or
other potential barriers) with participation.
The degree to which data was used in identifying potential health and environmental
impacts on the community. Including gathering data such as demographics (from Bureau
of Census), health and living patterns, as well as environmental justice information (from
CEQ Climate and Economic Justice Screening Tool, Environmental Protection Agency
(EPA) EJSCREEN, and Centers for Disease Control (CDC) and Prevention National
Environmental Public Health Tracking Network Data Explorer).
Impacts that may be both beneficial and adverse. A significant effect may exist even if on
balance the effect will be beneficial.
The degree to which the proposed project affects public health and safety.
Unique characteristics of the geographic area such as proximity to historic or cultural
resources, park lands, prime farmlands, wetlands, wild and scenic rivers, streams and
other bodies of water, coastal zones, floodplains, marine sanctuaries, sole source
aquifers, ecologically critical areas, or Tribal Sacred Sites.
The degree to which the effects on the quality of the human environment are likely to
be highly controversial.
The degree to which the possible effects on the human environment are highly
uncertain or involve unique or unknown risks.
The degree to which the project may establish a precedent for future actions with
significant effects or represents a decision in principle about a future consideration.
Whether the project is related to other actions with individually insignificant but
cumulatively significant impacts. Significance exists if it is reasonable to anticipate a
cumulatively significant impact on the environment. Significance cannot be avoided by
terming a project temporary or by breaking it down into small component parts.
The degree to which the project may adversely affect districts, sites, highways, structures,
or objects listed in or eligible for listing in the National Register of Historic Places or may
cause loss or destruction of significant scientific, cultural, or historical resources.
The degree to which the project may adversely affect an endangered or threatened
species or its habitat that has been determined to be critical under the Endangered
Species Act of 1973. The establishment of a species in or removal of a species from an
environment is significant.
Whether the project threatens a violation of law or requirements imposed for the
protection of the environment.
Whether the project changes the characterization of an environment (e.g., from terrestrial
to aquatic); such a change is considered significant.
25

Consider alternatives to the proposed construction/major renovation. The assessment should
identify:
• Any reasonable, appropriate alternatives to the proposed construction/major
renovation project and discuss the environmental impacts of these alternatives.
Alternatives include choosing not to construct/renovate; other reasonable courses of
action (e.g., delaying the project, choosing another location); and mitigation
measures to avoid or reduce potential environmental impacts.
• The degree to which the action may adversely affect rights of Tribal Nations that
have been reserved through treaties, statues, and Executive Orders.
• The degree to which the action may have disproportionate and adverse effects on
communities with environmental justice concerns.
The above guidance is based on NEPA regulations issued by the Council on Environmental
Quality (40 CFR Parts 1500-1508), and the Department of Health and Human Services’
Revised General Administrative Manual, Part 30 – Environmental Protection (published in
the Federal Register on October 17, 2003). Please note that 30-40-40 Floodplain
Management procedures have been revised and will be published soon on the Federal
Register.

26

Attachment C
Compliance with the National Historic Preservation Act
Question 14i of Attachment B of the SF-429 Real Property Status Report asks whether the
property has any historic significance in order to comply with the National Historic
Preservation Act.
Section 106 of the National Historic Preservation Act of 1966 (16 U.S.C. §470f), as amended,
requires all Federal agencies to take into account the effects of their actions on historic
properties, and provide the Advisory Council for Historic Preservation (ACHP) with a
reasonable opportunity to comment on those actions. Historic properties include properties
listed on or eligible for listing in the National Register of Historic Places (the Register).
Properties that meet the criteria for listing in the Register, which is administered and
maintained by the National Park Service, are normally over 50 years of age (although there are
exceptions for extremely significant recent properties), and include districts, sites, buildings,
structures, and objects that are significant in American history, architecture, archeology,
engineering, and culture. More detailed criteria are found in National Park Service regulations
(36 CFR Part 60).
If either the Lead Agency or ACF concludes that the property (affected by the
construction/major renovation project) may be eligible for listing in the Register, ACF will
submit a letter to the Department of the Interior requesting a decision concerning eligibility.
If a proposed construction/major renovation project could potentially affect a property which is
on or determined eligible for the Register, the Lead Agency must submit to ACF written
materials regarding the impact of the proposed construction/major renovation on the property.
ACF will then consult with the Tribal or State Historic Preservation Officer, the public, other
parties, and the Advisory Council for Historic Preservation, as appropriate, to assess adverse
effects on the historic property, and to avoid, minimize, or mitigate the adverse effects. For
more detailed information regarding this process, see regulations at 36 CFR Part 800.
The above guidance is based on information provided by the Advisory Council on Historic
Preservation on their website: http://www.achp.gov.

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Attachment D
Sample Notice of Federal Interest
At the commencement of construction or major renovation with CCDF funds of a facility, the
Lead Agency shall record a Notice of Federal Interest in the appropriate official records for the
jurisdiction in which the facility will be located. The Notice must be recorded in the official
records and submitted to the OCC Regional Office within ten working days of the
commencement of the construction or renovation.
Below is a sample Notice:

[DATE]
Notice of Federal Interest

This is to serve as notice to all potential sellers, purchasers, transferrers and recipients of a
transfer of the real property described below as to the Federal government’s financial interest
in the subject real property, which have arisen as a result of the receipt and use of the
Administration for Children and Families’ grant funds by the [NAME OF CHILD CARE AND
DEVELOPMENT FUND (CCDF) LEAD AGENCY] in connection with the [CONSTRUCTION
OR MAJOR RENOVATION] of said property. The [NAME OF CCDF LEAD AGENCY]
received these grant funds on [DATE OF THE AWARD OF SEPARATE CCDF GRANT
AWARD FOR CONSTRUCTION/MAJOR RENOVATION]. The notice is applicable to the
property at [ADDRESS] and identified as Parcel [APPROPRIATE NUMBER(S)] in the books
and records of [APPROPRIATE NAME OF UNIT OF GOVERNMENT’S RECORDING
AGENCY]. Said real property is also described as: [DESCRIPTION PROVIDED IN
SURVEY]. This property may not be mortgaged, used as collateral, sold or otherwise
transferred to another party, without prior written permission from the responsible official of
the Administration for Children and Families. The property may not be used for any purpose
inconsistent with that authorized by the Child Care and Development Block Grant Act ,42
U.S.C §9857 et seq., and regulations at 45 CFR Parts 98 and 99. These grant conditions and
requirements cannot be altered or nullified through a transfer of ownership. Further
information as to the Federal government’s interests referred to above can be obtained from
the Administration for Children and Families (ACF), [ADDRESS OF OCC REGIONAL
OFFICE].
The Federal government's financial interest in the subject real property expires on [DATE OF
THE AWARD OF SEPARATE CCDF GRANT AWARD FOR CONSTRUCTION/MAJOR
RENOVATION + 10 YEARS].
[SIGNATURE]
[NAME]
[TITLE]
[Note: this signature should be notarized and have a sufficient notary public affirmation].
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