Section 670.10  Purpose

 

The purpose of the Human Services Capital Investment Grant Program is to make capital improvement grants to human services providers serving low-income and marginalized populations [20 ILCS 605/605-1030(a)].  The Human Services Capital Investment Grant Program is established through a collaboration between DCEO and DHS.  The Agencies will cooperate on program establishment and administration.  DCEO shall be responsible for issuing and administering capital improvement grants to human services providers, either directly or indirectly through one or more intermediaries, subject to appropriation.  DCEO will consult with DHS on the issuance of rules and the priorities for capital improvement grants to human services providers, based on available data.

 

Section 670.20  Definitions

 

"Agencies" means DCEO and DHS, collectively.

 

"Bondable Capital Improvements" means a specific class of capital improvement projects eligible to be funded by the Build Illinois Bond Fund and which meet the requirements of the Build Illinois Bond Act [30 ILCS 425].

 

"Build Illinois" means the Build Illinois Bond Fund [30 ILCS 105/5.160].

 

"Capital improvement" means a project with a purpose to physically expand or physically improve upon a facility owned or leased by a human services provider.

 

"Community-based provider" means a not-for-profit corporation (which may include a faith-based organization), that is representative of a community or a significant segment of a community and provides services directly to low-income or marginalized populations.

 

"DCEO" means the Department of Commerce and Economic Opportunity.

 

"DHS" means the Department of Human Services.

 

"DUNS Number" means a unique nine-digit identification number provided by Dun & Bradstreet for each physical location of an organization.

 

"GATA" means the Grant Accountability and Transparency Act [30 ILCS 708].

 

"GATA Rule" means the administrative rules of the Governor’s Office of Management and Budget found at 44 Ill. Adm. Code 7000.

 

"Grantee" means any human services provider applicant for a grant award under this program whose proposal is funded by DCEO either directly or through a subaward issued by an intermediary.

 

"Human Services Provider" means a not-for-profit corporation in good standing to operate in the State of Illinois that provides services directly to low-income or marginalized populations in one of the core program divisions of DHS − mental health, rehabilitation services, substance use prevention and recovery, family and community services, developmental disabilities, early childhood and any additional core program areas DHS creates.  A "human services provider" is not required to be a current or former recipient of grant funds from DHS. A "human services provider" includes, but is not limited to, domestic violence shelters; rape crisis centers; comprehensive youth centers; Teen Responsibility, Education, Achievement, Caring and Hope (Teen REACH) providers; supportive housing providers; developmental disability community providers; behavioral health providers; and other community-based providers [20 ILCS 605/605-1030(a)].

 

"Intermediary" means an organization in good standing to operate in the State of Illinois, secured through an agreement with DCEO, to provide assistance for administration of the program which may include issuing subawards to eligible human services providers.

 

"Low-income" means an individual who:

 

receives, or in the past 6 months has received, or is a member of a family that is receiving or in the past 6 months has received, assistance through:

 

the supplemental nutrition assistance program established under:

 

the Food and Nutrition Act of 2008 (7 U.S.C. 2011),

 

the program of block grants to States for temporary assistance for needy families program under Title IV of the Social Security Act (42 U.S.C. 601),

 

the supplemental security income program established under Title XVI of the Social Security Act (42 U.S.C. 1381), or

 

State or local income-based public assistance;

 

is in a family with total family income that does not exceed the higher of:

 

the poverty line; or

 

70 percent of the lower living standard income level;

 

is a homeless individual (as defined in 34 U.S.C. 12473(6)), or a homeless child or youth (as defined in 42 U.S.C. 11434a(2));

 

receives or is eligible to receive a free or reduced price lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751);

 

is a foster child on behalf of whom State or local government payments are made; or

 

is an individual with a disability whose own income meets the requirements of this definition; however, the individual is permitted to be a member of a family whose income does not meet these requirements.

 

"Lower living standard income level" means that income level (adjusted for regional, metropolitan, urban, and rural differences and family size) determined annually by the U.S. Secretary of Labor.

 

"Marginalized" means individuals, groups and communities that have experienced disparities or disadvantages in obtaining assistance or services.

 

"Not-for-profit corporation" means an organization that is registered as a not-for-profit corporation and is in good standing with the Illinois Secretary of State.

 

"Poverty line" means the level of income (as defined by the Office of Management and Budget, and revised annually in accordance with 42 U.S.C. 9902(2)) applicable to a family of the size involved.

 

"Program" means the Human Services Capital Investment Grant Program.

 

"Public assistance" means federal, State, or local government cash payments for which eligibility is determined by a needs or income test.

 

"Rebuild Illinois" means the Rebuild Illinois Projects Fund.

 

"State" means the State of Illinois.

 

"Subaward" means a grant award provided by an intermediary to a human services provider for the purpose of carrying out a capital improvement project.

 

"Uniform Guidance" means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR 200.

 

Section 670.30  Use of Intermediaries

 

DCEO may enter into agreements or contracts with one or more intermediaries to assist in administering the program, including, but not limited to, issuing subawards to human services providers through a grant award from DCEO.  DCEO may also enter into an inter-governmental agreement with DHS or other State agencies to provide funds to DCEO to secure an intermediary.  The nature of the services provided shall determine whether the arrangement with an intermediary is a grant, procurement or other relationship. 

 

Section 670.40  Funding Sources

 

a)         The Build Illinois Bond Fund and the Rebuild Illinois Projects Fund are the sources of funding for the grants awarded to human services providers for capital improvement projects [20 ILCS 605/605-1030(a)], unless State and federal laws permit another funding source.

 

b)         Funding for grants or contracts issued to intermediaries to assist with administration of the program may be provided by any source of funding as permitted by State and federal law.

 

Section 670.50  Eligible Capital Improvement Project Activities

 

a)         DCEO shall make grant awards through a competitive application process to eligible human services providers as described in this Part, contingent on available funds. The grant awards shall be made to support capital improvements to facilities located in Illinois and utilized by human services providers to deliver services to low-income or marginalized populations.  The specific types of capital improvement project activities permitted will be dependent on the funding source.

 

1)         Grant awards funded by Build Illinois must be used by the grantees for bondable capital improvements.  A bondable capital improvement is a project for which:

 

A)        The activities improve upon or expand a facility owned or leased by a human services provider and generally include, but are not limited to, one or more of the following purposes:

 

i)          architectural planning and engineering design;

 

ii)         demolition (in preparation for additional work);

 

iii)        site preparation and improvement;

 

iv)        utility work;

 

v)         new construction of buildings and structures;

 

vi)        reconstruction or improvement of existing buildings or structures;

 

vii)       original furnishings and durable equipment;

 

viii)      replacement of currently utilized assets by a better asset; or

 

ix)        expansion of existing buildings or facilities; and

 

B)        The useful life of the project is greater than or equal to the average life of the bond issuance from which the project is financed.  Most of the State's bonds are issued as 25-year level principal issues with an average life of approximately 13 years.

 

2)         Grant awards funded by Rebuild Illinois must be used by the grantees for capital improvements.  A capital improvement funded by Rebuild Illinois is a project for which:

 

A)        The activities physically expand or improve upon a facility owned or leased by a human services provider and generally include, but are not limited to, one or more of the following purposes:

 

i)          building maintenance projects;

 

ii)         addressing building life-safety code deficiencies;

 

iii)        architectural planning and engineering design;

 

iv)        demolition (in preparation for additional work);

 

v)         site preparation and improvement;

 

vi)        utility work;

 

vii)       new construction of buildings and structures;

 

viii)      reconstruction or improvement of existing buildings or structures;

 

ix)        original furnishings and durable equipment;

 

x)         replacement of currently utilized assets by a better asset; or

 

xi)        expansion of existing buildings or facilities.

 

3)         Activities for both Build Illinois and Rebuild Illinois do not include:

 

A)        capital improvements made to a personal residence even if it is used by the human services provider to perform services; or

 

B)        using grant funds to acquire land or a building or to conduct site selection.

 

b)         DCEO may issue grant awards to human services providers either directly (see Subpart B) or through subawards issued by an intermediary (see Subpart C).

 

c)         DHS shall establish standards for determining the priorities concerning the necessity for capital facilities for the provision of human services based on data available to DHS [20 ILCS 605/605-1030(c)].

 

1)         DHS will consult with DCEO and engage with human services providers across the State to determine the priorities and capital improvement needs of the providers.

 

2)         DCEO will utilize the data gathered by DHS, and based on the funding available, will set capital improvement project priorities for each round of funding for the program.

 

d)         A cash match of grant funds issued by DCEO under this Part will not be required of grantees.

 

Section 670.60  Eligible and Ineligible Grant Expenditures for Human Services Providers

 

Grant expenditures for capital improvement projects must comply with GATA, the Uniform Guidance and any applicable funding source, be reasonable and necessary, and support the allowable grant project activities set forth in Section 670.50. Specific eligible grant costs will be set forth in the applicable NOFO, dependent on the funding source and the project priorities (Section 670.50(c)).

 

a)         Grants funded by Build Illinois

 

1)         Expenditures for grants funded through Build Illinois must support bondable capital improvement projects (Section 670.50(a)(1)) for facilities owned or leased by human services providers.  Eligible bondable capital improvement project expenditures include the following characteristics:

 

A)        The expenditures are not recurring.  In this context, recurring expenses are defined as those costs which are incurred at frequent or regular periodic intervals within the initial term of financing, and which would cause an accumulation of costs for the same expenditure purpose before the expenses initially incurred for such purpose are completely amortized;

 

B)        The project is a physical improvement to the human services provider's facility and is of a durable nature not consumed in use;

 

C)        The project reflects an extended useful life or longevity to the human services provider's facility, which in effect confers long-term (non-transitory) benefits to the citizens of the State of Illinois;

 

D)        The project purposes are not subject to inherent risk of failure, rapid technological obsolescence, or primarily intended to fulfill temporary requirements or needs;

 

E)        The project appreciably increases, improves, or enhances the equitable interests of the of the human services provider's facility, which in turn benefits the State of Illinois, or its legally constituted subdivisions, in the property, land, building or asset to be developed, constructed or improved; and

 

F)         The expenditures are considered as internal components of a project, which if considered separately may not reflect the extended useful life, but will be bondable provided that such components are initially required and appreciably contribute to effective functioning, or are otherwise incapable of separation from a more complex unit which in itself is bondable.

 

2)         Eligible budget cost categories for grants funded by Build Illinois will include the following:

 

A)        Design/Engineering (limited to 10-15% of total grant budget);

 

B)        Wiring/Electrical;

 

C)        Equipment/Materials/Labor;

 

D)        Paving/Concrete/Masonry;

 

E)        Construction Management/Oversight (limited to 10-15% of total grant budget);

 

F)         Mechanical System;

 

G)        Excavation/Site Preparation/Demolition;

 

H)        Plumbing;

 

I)         Other Construction Expenses; and

 

J)         Contingency (limited to maximum 10% of total grant budget).

 

3)         Any expenditures by human services providers funded through Build Illinois that are not within the eligible characteristics and cost categories set forth in this Section will be considered ineligible including, but not limited to, the following:

 

A)        Operational and administrative expenses;

 

B)        Lease payments for rental of equipment or facilities;

 

C)        Costs of staff or resident labor and material;

 

D)        Expenditures to acquire or construct temporary facilities;

 

E)        Purchase of automobiles, trucks, farm equipment, boats or rolling stock;

 

F)         Livestock or laboratory animals;

 

G)        Unpredictable or unusual legal expenses;

 

H)        Costs for archaeological digs, research or exploration;

 

I)         Costs related to the acquisition of land or a building or to conduct site selection; and

 

J)         Work that contains repairs, maintenance or remodeling of a limited nature or scope, which is not done as part of a larger bondable improvement project.

 

b)         Grants funded by Rebuild Illinois

 

1)         Expenditures for grants funded through Rebuild Illinois must support capital improvement projects (Section 670.50(a)(2)) for facilities owned or leased by human services providers. Eligible budget cost categories for grants funded by Rebuild Illinois will include the following:

 

A)        Design/Engineering (limited to 10-15% of total grant budget);

 

B)        Wiring/Electrical;

 

C)        Equipment/Materials/Labor;

 

D)        Paving/Concrete/Masonry;

 

E)        Construction Management/Oversight (limited to 10-15% of total grant budget);

 

F)         Mechanical System;

 

G)        Excavation/Site Preparation/Demolition;

 

H)        Plumbing;

 

I)         Other Construction Expenses; and

 

J)         Contingency (limited to maximum 10% of total grant budget).

 

2)         Any expenditures by human services providers funded through Rebuild Illinois that are not within the eligible characteristics and cost categories set forth in this Section will be considered ineligible including the following:

 

A)        Administrative and operational expenditures including, but not limited to, utilities, personnel, insurance, indirect costs and debt obligations; and

 

B)        Costs related to the acquisition of land or a building or to conduct site selection.

 

c)         For all funding sources, no portion of a human services capital investment grant awarded under this Part may be used by a grantee to pay for any ongoing operational costs or outstanding debt [20 ILCS 605/605-1030(d)].

 

Section 670.100  Grantee Eligibility Requirements

 

a)         A human services provider is eligible to receive a grant award directly from DCEO if the provider:

 

1)         offers services within Illinois in a manner that supports and fulfills the mission of DHS;

 

2)         has delivered services for a minimum of two years directly to low-income or marginalized populations in Illinois in one of the core program areas of DHS − mental health, rehabilitation services, substance use prevention and recovery, family and community services, developmental disabilities, early childhood and any additional core program areas DHS creates;

 

3)         has an active GATA registration and is qualified on the GATA Grantee Portal (https://grants.illinois.gov/portal/) at the time the application is submitted; and

 

4)         is considered a regarded entity by the Internal Revenue Service for federal income tax purposes.

 

b)         A human services provider is ineligible to receive a grant award directly from DCEO if the provider:

 

1)         does not meet the eligibility criteria set forth in this Section;

 

2)         is delinquent on payment of any State of Illinois tax obligation and the provider does not have an approved installment payment plan in place with the Department of Revenue;

 

3)         is on the Illinois Stop Payment List, the State's debarred or suspended contractor lists, or is in default of any contractual obligation to DHS or DCEO;

 

4)         is engaged in an enterprise that is unlawful or renders the provider ineligible under applicable State or federal law;

 

5)         is on the federal System for Award Management excluded parties list (https://sam.gov/content/exclusions); or

 

6)         is considered a disregarded entity by the Internal Revenue Service for federal income tax purposes.

 

c)         Human services providers that are faith-based organizations, to be eligible, must use grant funds to make capital improvements to parts of their facility (whether the facility is owned or leased) that are used exclusively to provide human services.  Grant funds may not be used for projects that provide a benefit to space used for the purpose of religious worship (e.g., chapel or sanctuary, etc.).  Grant funds also may not be used to improve a facility for the benefit of members, clergy or attendees participating in religious activities (such as a parking lot or an elevator).

 

Section 670.110  Administrative Requirements

 

Grant opportunities and awards will be administered in a manner that complies with all State and federal requirements applicable to each funding opportunity including, but not limited to, GATA, the Uniform Guidance and all applicable State or federal laws or guidance.  Grant applicants and grantees shall review all application materials and grant award documents which will include the specific applicable requirements for the grant opportunity.  DCEO reserves the right to suspend or terminate a grant agreement, recoup grant funds received under this Part or withhold any future year funding for non-compliance with the provisions in the grant agreement or non-compliance with applicable State and federal laws including those listed in Section 670.110(e).

 

a)         Application Process for Direct Grant Awards to Human Services Providers

 

1)         DCEO will post one or more Notices of Funding Opportunity (NOFO) on the GATA Grantee Portal seeking applications from human services providers, contingent upon available funds.  The NOFO will describe in detail the types of projects for which funding is available (see Section 670.50).  Applicants shall submit their application materials by the deadlines set forth in the NOFO, which will be at least 30 days after posting the NOFO.

 

2)         The applicants will be required to submit an application package, which will include the following:

 

A)        uniform grant application;

 

B)        uniform budget template;

 

C)        conflict of interest disclosure form;

 

D)        mandatory disclosures form;

 

E)        project narrative;

 

F)         documentation demonstrating that applicant is in good standing to operate in the State of Illinois, including but not limited to, proof of current registration with all government entities the applicant is required to register with in order to operate;

 

G)        articles of incorporation and bylaws;

 

H)        an organizational chart for staff of the applicant;

 

I)         resumes of key program staff (both those that will be managing the grant award and those that provide human services within the DHS core programs or areas for the applicant);

 

J)         a copy of the lease agreement if the applicant is renting the facility which is the subject of the capital improvement project, and written permission from the landlord to conduct the grant-funded activities;

 

K)        W-9 and Internal Revenue Service letter to verify the W-9;

 

L)        documentation demonstrating the types of services the applicant provides that are within the core DHS programs or areas and demonstrating that applicant is qualified to provide these services; and

 

M)       any additional documentation to demonstrate or support the information submitted by the applicant for the proposed project.

 

3)         Applicants shall provide the following information about the proposed project in the narrative:

 

A)        a description of the purpose of the grant project;

 

B)        a detailed budget and supporting justification of the costs requested;

 

C)        the location of the project, including a description of the facility

proposed to be improved with grant funds;

 

D)        the ownership and lease information, as applicable, for the facility where the proposed project would occur;

 

E)        a description of the human services provider applicant, including but not limited to:

 

i)          the history of the provider and the provider's mission and goals;

 

ii)         the number of current staff and a list of current board members, if applicable;

 

iii)        the populations and geographic areas served by the provider;

 

iv)        the existing linkages or partnerships with other community resources or organizations;

 

v)         how the populations served by the applicant meet the definitions of low-income or marginalized, including the approximate percentages of individuals served within each category; and

 

vi)        the core DHS programs or areas for which the applicant provides services, including a description of the programs and services provided by the applicant and the length of time the applicant has provided the services;

 

F)         a description of the participants served by the human services provider's programs including:

 

i)          a description of any eligibility criteria for participation in the programs (e.g., income level, age, employment status);

 

ii)         a description of how participants are identified or recruited,

or who refers participants to the organization for services;

 

iii)        if services cannot be provided to all that apply, a description of the manner in which participants are selected (e.g., standardized testing; first-come, first-served); and

 

iv)        a description of the costs to participants for these programs and services, and whether a sliding scale (e.g., cost for services is reduced or waived, based on income or ability to pay) is enacted;

 

G)        the public purpose and public benefit of the project;

 

H)        the financial need of the human services provider for the grant funds;

 

I)         a description of additional funding sources the provider is receiving or requesting for the project, if any;

 

J)         an estimated timeline for completion of the project;

 

K)        a statement regarding whether the applicant will have the ability to deliver services at its facility if the proposed project is not completed;

 

L)        a description of whether the applicant has received prior grant awards from DCEO or DHS and the applicant's grant performance under these awards, if applicable;

 

M)       an explanation of how the applicant will be able to administer and complete the project within the allowable grant period; and

 

N)        any additional information required to demonstrate or support the  information submitted by the applicant for the proposed project.

 

b)         Grant Award Selection

Grants will be awarded by DCEO to grantees following a merit review by DCEO and DHS pursuant to GATA requirements (44 Ill. Adm. Code 7000.350).  In evaluating applications, DCEO and DHS will consider the criteria listed below:

 

1)         Whether the applicant meets the eligibility criteria (see Section 670.100);

 

2)         The financial needs of the applicant;

 

3)         Whether the project is an eligible capital improvement project activity (see Section 670.50);

 

4)         Whether the proposed project expenditures are eligible (see Section 670.60) and will comply with the Uniform Guidance and all other applicable federal and State laws;

 

5)         Whether the proposed project is among the priorities identified by DCEO (see Section 670.50(c));

 

6)         The ability of the applicant to deliver services at its facility if the proposed project is not completed;

 

7)         The applicant's prior grant performance under grants awarded by DCEO or DHS, if applicable; and

 

8)         The ability of the applicant to administer and complete the project within the allowable grant period.

 

For projects and applicants that meet all the eligibility requirements (see Sections 670.50, 670.60 and 670.100), grant awards will be prioritized for applicants with the most financial need for the grant funds and therefore, this criterion will be weighted most heavily during the merit review process (see Section 670.110(b)(2)).

 

c)         Grant Disbursements

Disbursement of grant funds from DCEO will be made in accordance with a schedule included in the grant agreement. DCEO will disburse funds based on the grantee making satisfactory progress to implement grant activities.

 

d)         Grant Performance, Administration, Monitoring and Reporting Requirements

Grantees shall comply with all GATA and DCEO requirements set forth in the grant agreement for grant performance, administration, audits, monitoring and reporting. 

 

1)         Grant performance goals and performance and expenditure reporting will be based on the specific grant project activities of each grant award and will follow GATA requirements (44 Ill. Adm. Code 7000.410), which include periodic financial and performance reports at least quarterly and financial and performance close-out reports after the end of the grant term (see 44 Ill. Adm. Code 7000.440). The deadlines for all required reports will be set forth in the grant agreement.

 

2)         Grant audits shall be based on the standards set forth in the GATA requirements (44 Ill. Adm. Code 7000.90).

 

3)         Grantees must monitor their grant activities to assure compliance with applicable State and federal requirements and to assure their performance expectations are being achieved.  DCEO will monitor the activities of grantees to assure compliance with all requirements and performance expectations of the award.  Grantees shall timely submit all financial and performance reports, and shall supply, upon DCEO's request, documents and information relevant to the award.  DCEO may monitor activities through site visits.

 

e)         Compliance with Applicable Laws

Grantees shall comply with all applicable State and federal laws, including, but not limited to, the Prevailing Wage Act [820 ILCS 130], the Illinois Works Jobs Program Act [30 ILCS 559/20], the Business Enterprise Program for Minorities, Females, and Persons with Disabilities Act [30 ILCS 575], the Employment of Illinois Workers on Public Works Act [30 ILCS 570], the Environmental Protection Act [415 ILCS 5], the Illinois Endangered Species Protection Act [520 ILCS 10], the Illinois Natural Areas Preservation Act [525 ILCS 30], the Interagency Wetland Policy Act of 1989 [20 ILCS 830], and the Illinois State Agency Historic Resources Preservation Act [20 ILCS 3420]. DCEO may suspend or terminate a grant agreement, recoup grant funds received under this Part or withhold any future year funding for non-compliance with this subsection (e).

 

f)         Records Retention

Grantees shall maintain, for the period of time set forth in the GATA rules (44 Ill. Adm. Code 7000.430(a) and (b)) adequate books, all financial records and supporting documents, statistical records, and all other records pertinent to the program. If any litigation, claim or audit is started before the expiration of the retention period, the records must be retained until all litigation, claims or audit exceptions involving the records have been resolved and final action taken. The applicable retention period will be dependent on the type of capital improvement project for the grant award as set forth in the GATA rules. Grantees shall be responsible for ensuring that contractors and subrecipients comply with the retention requirements.

 

Section 670.200  Selection of Intermediaries to Issue Subawards

 

a)         If DCEO determines, based on the needs of DCEO, to utilize intermediaries to issue subawards to human services providers, DCEO will issue a grant award to one or more intermediaries which will receive grant funds from DCEO to issue and administer the subawards with oversight from DCEO.  Intermediaries are ineligible to receive grant subawards for capital improvement projects while the intermediary is actively serving as an intermediary through a grant issued by DCEO under this Part.

 

b)         Grant opportunities and awards to intermediaries will be administered in a manner that complies with all State and federal requirements applicable to each funding opportunity, including, but not limited to GATA, the Uniform Guidance and all applicable State or federal laws or guidance.  Intermediary applicants and recipients shall review all application materials and grant award documents which will include the specific applicable requirements for the grant opportunity.  DCEO reserves the right to suspend or terminate a grant agreement, recoup grant funds received under this Part, or withhold any future year funding for non-compliance by the intermediaries with the provisions in the grant agreement.

 

Section 670.210  Eligibility of Human Services Providers for Subawards

 

a)         A human services provider is eligible to receive a grant subaward through an intermediary if the provider:

 

1)         offers services within Illinois in a manner that supports and fulfills the mission of DHS;

 

2)         has delivered services for a minimum of two years directly to low-income or marginalized populations in Illinois in one of the core program areas of DHS − mental health, rehabilitation services, substance use prevention and recovery, family and community services, developmental disabilities, early childhood and any additional core program areas DHS creates; and

 

3)         has a valid DUNS number or unique entity identifier (see 2 CFR 25.300) prior to receiving the subaward, if applicable.

 

b)         A human services provider is ineligible to receive a grant subaward from an intermediary if the provider is:

 

1)         unable to meet the eligibility criteria set forth in this Section;

 

2)         an intermediary for the program at the time of application or award;

 

3)         delinquent on payment of any State of Illinois tax obligation and the provider does not have an approved installment payment plan in place with the Department of Revenue;

 

4)         on the Illinois Stop Payment List, the State's debarred or suspended contractor lists, or is in default of any contractual obligation to DHS or DCEO;

 

5)         engaged in an enterprise that is unlawful or renders the provider ineligible under applicable State or federal law; or

 

6)         on the federal System for Award Management excluded parties list (https://sam.gov/content/exclusions).

 

c)         Human services providers that are faith-based organizations, to be eligible for a grant subaward, must use grant funds to make capital improvements to parts of their facility (whether the facility is owned or leased) that are used exclusively to provide human services.  Grant funds may not be used for projects that provide a benefit to space used for the purpose of religious worship (e.g., chapel or sanctuary, etc.).  Grant funds also may not be used to improve a facility for the benefit of members, clergy or attendees participating in religious activities (such as a parking lot or an elevator).

 

Section 670.220  Intermediary Activities

 

a)         Intermediaries will be required to issue and administer subawards to human services providers with oversight from DCEO, and engage in the following activities:

 

1)         evaluating and selecting project subaward applications, through a competitive process, from eligible human services providers (Section 670.210) for eligible capital improvement projects (Section 670.50) as permitted by the applicable funding source;

 

2)         issuing subaward agreements and disbursing grant funds to selected human services provider grantees;      

 

3)         collecting and evaluating required documentation from grantees to ensure project work is for appropriate uses and complies with applicable laws and requirements;

 

4)         reviewing expenditures of grantees to ensure they are eligible (Section 670.60);

 

5)         conducting monitoring reviews of grantees;

 

6)         complying with the requirements for pass-through entities set forth in 2 CFR 200.332, as applicable;

 

7)         engaging in technical assistance with human services providers; and

 

8)         reporting to DCEO on the activities and expenditures for both the intermediary's activities and the subaward projects.

 

b)         Subawards issued by intermediaries must meet the eligible capital improvement project activities requirements in Section 670.50 and the eligible grant expenditures in Section 670.60.  To receive a subaward from an intermediary, human services providers must apply through a competitive process (similar to the process and requirements described in Section 670.110) approved by DCEO and meet the eligibility requirements of Section 670.210.

 

Section 670.230  Eligible and Ineligible Grant Expenditures for Intermediaries

 

Grant expenditures for intermediaries must comply with GATA, the Uniform Guidance and any applicable funding source, be reasonable and necessary, and support the allowable grant project activities for intermediaries set forth in Section 670.220.

 

a)         Eligible expenditures for intermediaries to administer the subawards to human services providers include the following:

 

1)         Personnel wages;

 

2)         Personnel fringe benefits;

 

3)         Travel within Illinois;

 

4)         Contractual/Subaward (if necessary and reasonable to carry out the terms of the award);

 

5)         Consultant (if necessary and reasonable to carry out the terms of the award);

 

6)         Supplies;

 

7)         Telecommunications;

 

8)         Occupancy (Rent & Utilities);

 

9)         Direct administrative costs;

 

10)        Indirect costs; and

 

11)        Other miscellaneous costs, which are necessary, reasonable and allocable to the grant award.

 

b)         Intermediaries shall not use grant funds for the acquisition of land or a building, site selection or capital improvements.  Ineligible expenditures for intermediaries include the eligible expenditures for human services provider grantees set forth in Section 670.60(a) and (b).

 

Section 670.240  Intermediary Grant Award Eligibility Requirements

 

An organization is eligible to receive a grant award as an intermediary to provide subawards to human services providers if the organization:

 

a)         is in good standing to operate in the State of Illinois;

 

b)         has demonstrated experience administering grants for construction or other capital projects in Illinois;

 

c)         has the capacity to administer a large volume of subawards;

 

d)         has an active GATA registration and is qualified on the GATA Grantee Portal (https://grants.illinois.gov/portal/) at the time the application is submitted; and

 

e)         is considered a regarded entity by the Internal Revenue Service for federal income tax purposes.

 

Section 670.250  Administrative Requirements

 

a)         Application Process for Grant Awards to Intermediaries

 

1)         DCEO will post one or more Notices of Funding Opportunity (NOFO) on the GATA Grantee Portal seeking applications from eligible organizations, contingent upon available funds.  The NOFO will describe in detail the types of projects for which funding is available (see Sections 670.50 and 670.220).  Applicants shall submit their application materials by the deadlines set forth by DCEO in the NOFO which will be at least 30 days after posting the NOFO.

 

2)         The applicants will be required to submit an application package, which will include the following:

 

A)        uniform grant application;

 

B)        uniform budget template;

 

C)        conflict of interest disclosure form;

 

D)        mandatory disclosures form;

 

E)        project narrative;

 

F)         documentation demonstrating that applicant is in good standing to operate in the State of Illinois, including but not limited to, proof of current registration with all government entities the applicant is required to register with in order to operate;

 

G)        resumes of key program staff;

 

H)        W-9 and Internal Revenue Service letter to verify the W-9;

 

I)         agreements with contractors or subrecipients demonstrating the intent to provide services if the applicant receives the award, if the intermediary applicant will be sharing responsibilities for some of the grant project with one or more organizations; and

 

J)         any additional documentation to demonstrate or support the information submitted by the applicant for the proposed project.

 

3)         Applicants shall provide the following information about the proposed project in the narrative:

 

A)        A description of the structure of the applicant organization, including:

 

i)          identification of the organization's leadership team and a description of their responsibilities;

 

ii)         a summary of the organization's core skills and competencies;

 

iii)        identification of relevant experience and skill sets of staff who will be assigned responsibility over the program; and

 

iv)        other factors that make the applicant organization well-suited for overseeing a grant program for capital improvement projects;

 

B)        A description of the applicant's experience working with human services providers and low-income or marginalized populations;

 

C)        A description of the applicant's administrative capacity to manage a grant program, including:

 

i)          the organization's experience overseeing grant programs pertaining to economic development or capital improvement projects; and

 

ii)         a demonstration that the applicant has a good understanding of the Human Services Capital Investment Grant Program requirements and will commit resources necessary to successfully complete responsibilities;

 

D)        A narrative explaining how the organization would be capable of administering a program statewide or within certain regions of the State, if required by the NOFO;

 

E)        A detailed budget and supporting justification of the expenditures requested;

 

F)         A description of the applicant's ability and plan to offer technical assistance to human services provider grantees and applicants in a manner that does not create a conflict of interest, including both webinars and individual assistance;

 

G)        A description of the applicant's plan for the subaward application process, evaluating and selecting applications from human services providers, disbursing grant funds and timelines for the subaward application and selection processes;

 

H)        A description of the applicant's understanding of the laws and rules applicable to State capital improvement projects or bondable capital improvements; and

 

I)         A description of how the applicant will manage and oversee a large number of subawards to human services providers.

 

b)         Grant Award Selection

Grants will be awarded by DCEO to one or more intermediaries following a merit review by DCEO and DHS pursuant to GATA requirements (44 Ill. Adm. Code 7000.350).  In evaluating applications, the Agencies will consider the following criteria:

 

1)         Demonstrated grant administration experience, including the ability to issue large numbers of grants for eligible capital improvement projects or bondable capital improvements, as applicable, and disburse funds in a timely manner while following all program requirements;

 

2)         The ability to establish a grant application and award process that is clear and simple for applicants to apply, while following all program requirements;

 

3)         The ability to effectively and timely evaluate proposed subaward projects that are eligible, and an efficient process for sending recommendations to DCEO for final subaward selection;

 

4)         Demonstrated understanding of or experience working with human services providers or low-income or marginalized populations;

 

5)         The ability of the organization to administer a program statewide or within certain regions of the State, if required by the NOFO;

 

6)         A sufficiently detailed budget that includes only eligible expenditures and demonstrates efficient use of funds that aligns properly with the program goals;

 

7)         Demonstrated knowledge of State and federal requirements for capital improvement grants or bondable capital improvements, as applicable;

 

8)         The ability to perform all intermediary responsibilities within the timeframes set forth in the NOFO; and

 

9)         The ability to provide effective oversight and technical assistance in a manner that does not create a conflict of interest, including webinars and individual assistance to human services provider applicants and grantees to promote a successful program.

 

c)         Grant Disbursements

Disbursement of grant funds from DCEO to selected intermediaries will be made in accordance with a schedule included in the grant agreement. DCEO will disburse funds based on the intermediary making satisfactory progress to implement grant activities.

 

d)         Grant Performance, Administration, Monitoring and Reporting Requirements

Intermediaries shall comply with all GATA and DCEO requirements set forth in the grant agreement for grant performance, administration, audits, monitoring and reporting.

 

1)         Grant performance goals and performance and expenditure reporting will be based on the specific grant project activities of each grant award and will follow GATA requirements (44 Ill. Adm. Code 7000.410), which include periodic financial and performance reports at least quarterly and final financial and performance close-out reports after the end of the grant term (see 44 Ill Adm. Code 7000.440).  Intermediaries will be required to gather and report to DCEO detailed information on the subawards issued to human services providers with their quarterly and close-out reports.  The deadlines for all required reports will be set forth in the grant agreement. 

 

2)         Grant audits shall be based on the standards set forth in the GATA requirements (44 Ill. Adm. Code 7000.90).

 

3)         Intermediaries must monitor their grant activities and the human services provider grantees to assure compliance with applicable State and federal requirements and to assure their performance expectations and those of the human services providers are being achieved.  DCEO will monitor the activities of the intermediaries to assure compliance with all requirements and performance expectations of the award.  Intermediaries shall timely submit all financial and performance reports, and shall supply, upon DCEO's request, documents and information relevant to the award.  DCEO may monitor activities through site visits.

 

e)         Compliance with Applicable Laws

Intermediaries shall comply with, and shall be responsible for compliance by the grantees, with all applicable State and federal laws, including, but not limited to, the Prevailing Wage Act [820 ILCS 130], the Illinois Works Jobs Program Act [30 ILCS 559/20], the Business Enterprise Program for Minorities, Females, and Persons with Disabilities Act [30 ILCS 575], the Employment of Illinois Workers on Public Works Act [30 ILCS 570], and the Environmental Protection Act [415 ILCS 5], the Illinois Endangered Species Protection Act [520 ILCS 10], the Illinois Natural Areas Preservation Act [525 ILCS 30], the Interagency Wetland Policy Act of 1989 [20 ILCS 830], and the Illinois State Agency Historic Resources Preservation Act [20 ILCS 3420]. DCEO may suspend or terminate a grant agreement, recoup grant funds received under this Part or withhold any future year funding for non-compliance with this subsection (e).

 

f)         Records Retention

Intermediaries shall maintain, for the period of years set forth in the GATA rules (44 Ill. Adm. Code 7000.430(a) and (b)), adequate books, all financial records and supporting documents, statistical records, and all other records pertinent to the program.  If any litigation, claim or audit is started before the expiration of the retention period, the records must be retained until all litigation, claims or audit exceptions involving the records have been resolved and final action taken.  Intermediaries shall be responsible for ensuring that contractors, subrecipients and human services provider grantees comply with the retention requirements and shall retain all supporting documentation received from the grantees for the appropriate period.  The applicable retention period for human services provider grantees will be dependent on the type of capital improvement project for the grant award as set forth in the GATA rules.