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of CDtsG FUNDING and NEPARESTRICTIONS <br />Costs incuned prior to the CDBG award lettel cannot be reimbursed by CDBG. Eligible costs <br />will be reimbursed by Commerce after a grant contract has been formally execnted and the <br />CDBG-specific ptacedures under NEPA and SEPA are completed. Executing the grant <br />contract and completing the environmental review can occur concurrently. <br />Unless the activily is exempt or categorically excluded and not subject to 24 CFR 58.5 under <br />NEPA, the local government grantee, subreoipients, contractors and all other padicipants may <br />not coninrit CDBG lupn.a-DB-9 fi,uids if the activity would have an adverse environmental <br />impacl or limit the choice of reasonable alternatives. This restriction applies to activities as of <br />the date the CDBG program ISSCI_vS,iLbC.Srrnt rlrglk;irtiul. Portions of pLeliminary design <br />work needed for completion of the environrnental review are allowable, <br />T'itle 1 of the Housing and Community Development Act of 1974 as amended and the <br />environmental teview procedures found in 24 CFR 58.22 apply to any activities as part of a <br />CDBG project, The environmcntal review activities cornpleted for other federal or state <br />funding can coutribute towards but rot entirely meet the CDBG-spocific procedure ,tor NEPA <br />and SEPA. fjecliotr (r ol'thc (ll)l](i-lVlggg$:nrerrt ilrtrrelboqk plovides further detail and the <br />necessary CDBG forms, <br />Project Phase Restrictions on Activities <br />Before CDBG <br />contract is <br />executed and <br />environmcntal <br />review is <br />complete <br />With the award letter; the grantee can begin to incur costs up to l0% of <br />award for the following activities which don't require an envirorunental <br />review IF the grant application requested CDBG funding of these costs: <br />Administration: Executing the CDBG contract, Establishing <br />administrative, financiai, reporting, and record keeping systems, including <br />staffing, travel and training. <br />Environmental Review: <br />Review of environmental laws and authorities, including 24 CFR 58,5 and <br />Section I06 of the National Historic Preselvation Act of I 996, such as: <br />o Consultation letters to affected tribes <br />. Cultural resource suffey <br />o Floodplainlwetland determination <br />Preliminary engineering feasibility studies for the environmental assessment, <br />such as surveying and geotechnical or geophysical analysis (excluding <br />ground-disturbing activity of over one cubic aq. ft.). <br />Subcontracting: Subrecipient agreements or professional service contracts <br />for any of the above activities,