Infrastructure Projects: Case Studies and Strategies for Funding. 1 NYC Office of Management and Budget
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1 Infrastructure Projects: Case Studies and Strategies for Funding 1 NYC Office of Management and Budget
2 Best Practices Proactively inventory and geocode public infrastructure assets and centrally retain maintenance records for those assets Understand capabilities of existing financial management systems, and consider pre-disaster enhancements necessary to accommodate the management of disaster-related data Implement controls and efficiencies within your jurisdiction s procurement process that ensures full compliance with local, state, and federal procurement rules PRIOR to letting of contracts Develop and incorporate administrative requirements for disaster response and recovery into everyday business practices Create or identify entity charged with managing your jurisdiction s disaster recovery financial management 2
3 NYC Experience NYC Experience $1.06 billion of CDBG-DR allocated for IOCS, match, breakage Estimated FEMA-PA Sandy universe: about $9.8 billion = ~$980 million cost share Breakage = HUD eligible costs outside FEMA-PA eligibility Local match + breakage unmet need exceeds funding allocated CDBG-DR $$ crucial for three reasons: Flexibility of the CDBG-DR program Helps pay for significant FEMA local match needs, although compliance is challenging CDBG-DR funds may pay for costs not covered by FEMA-PA (breakage) 3
4 Infrastructure and Other City Services (IOCS) IOCS incorporates program activities in the areas of: Rehabilitation/Reconstruction of Public Facilities Restore public facilities such as hospitals, fire, police, sanitation, and other critical infrastructure damaged in the impacted areas are restored Repair and upgrade existing City water, storm water, and sewer systems in impacted communities Restore parks and recreational facilities within impacted communities Emergency Demolition Identify and clear buildings that were a serious and immediate threat to the health, welfare, and safety of the community Debris Removal/Clearance Remove and dispose of all storm-related debris that impacted public health, safety, and posed a threat to life and property Code Enforcement Building inspectors assess the structural integrity of residential and commercial buildings throughout the city in the wake of the hurricane Public Services Address other activities where City agencies either provided new or additional services to the general public Interim Assistance Assist residential homeowners through the Rapid Repairs Program. Assist with emergency repairs to their properties to the extent necessary to alleviate the emergency conditions caused by the storm 4
5 Case Study: Rockaway Beach Boardwalk Project Description: Sandy destroyed 70% of the 5.5 mile wood and concrete boardwalk Boardwalk being rebuilt to stronger, more resilient standards Phase 1 & 2 (1 mile) of new construction already complete; 3.5 miles of boardwalk now open Phases 3-5 still to complete $480 million estimated for repair and mitigation costs 90% funded by FEMA 428 capped grant pilot program, 10% by CDBG-DR for local match Cost estimates established by subgrantee (City) and approved by NYS/FEMA 5
6 Case Study: Rockaway Beach Boardwalk Goal: Draw down CDBG-DR funds as quickly as possible by identifying local match, compliance, and project timelines Approach: Use Coordinated Match Utilize FEMA 428 capped grant pilot program to know local match before construction complete (capped grant x 10%) Grants based on fixed estimates established by subgrantee Allows consolidation of multiple grants into one single grant No penalty from FEMA for alternate projects Align environmental reviews with construction timeline Conducted HUD environmental review ahead of PW approval Adopt FEMA s environmental reviews when possible Ensured compliance with both FEMA-PA and CDBG-DR requirements Ensured contracts include necessary CDBG-DR requirements language 6
7 Case Study: Health and Hospitals Corporation Project Description: Four critical hospitals in the New York City Health and Hospitals Corporation (HHC) portfolio suffered extreme damage during Hurricane Sandy $1.7 billion estimated for repair and mitigation costs 90% funded by FEMA 428 capped grant pilot program, 10% by CDBG-DR for local match Goal: Draw down CDBG-DR funds as quickly as possible by consolidating projects Approach: Consolidate all work into a single Letter of Understanding under FEMA 428 capped grant pilot program Use Coordinated Match Identify early action items totaling local match value to facilitate timely drawdowns 7
8 Case Study: Rebuild by Design Project Description: Phase 1 of a 10 mile coastal resiliency project CDBG-DR funding $335 million for 2 miles of flood protection in and around East River Park, (e.g. berms, deployable walls, pedestrian bridges etc.) Goal: Expedite progress of very large project Approach: Engage stakeholders from outset (e.g. SRIRC) Spend planning funds early Technical assistance workshops with internal partner agencies, SRIRC, monitoring agencies, and large vendors (e.g. environmental review workshops) Community outreach 8
9 Key Takeaways Stay cognizant of CDBG-DR and FEMA regulations at every step of program implementation Utilize FEMA 428 capped grant pilot program to extent possible Coordinated Match Conduct HUD environmental reviews ahead of or in parallel to FEMA approval when needed Routinize DR compliance activities before disaster strikes 9
10 FEMA Public Assistance vs. CDBG-DR FEMA PA Program CDBG Infrastructure and Other City Services FEMA-PA is a program designed and administered directly by FEMA IOCS is a program defined by City of New York s CDBG-DR Action Plan and administered by NYC s Office of Management and Budget Pays for Emergency Measures and Permanent Restoration as defined by (44 CFR 206) Pays for costs eligible under CDBG Regulations (24 CFR 570) FEMA will reimburse up to 90% of FEMA eligible costs FEMA CDBG Costs can include 10% non-federal cost share and additional eligible CDBG costs Remaining 10% shall be paid for by non- Federal funds Federal Register Notice (78 FR 14329) provides waiver to allow CDBG-DR funds to act as non-federal share for FEMA PA Program match requirements Categories C-G costs must be approved by FEMA before reimbursement Costs are drawn directly from HUD and reviewed during HUD Monitoring visits and Audits 10
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