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TIMINGof CDBG FUNDING and NEPA RESTRICTIONS <br />Costs incurredprior to the CDBG award letter cannot be reimbursed by CDBG.Eligible costswillbereimbursedbyCommerceafteragrantcontracthasbeenformallyexecutedandtheCDBG-specific procedures under NEPA and SEPA are completed.Executing the grantcontractandcompletingtheenvironmentalreviewcanoccurconcurrently. <br />Unless the activity is exempt or categorically excluded and not subject to 24 CFR 58,5 underNEPA,the local governmentgrantee,subrecipients,contractors and all other participants may <br />not conunit CDBG.goon-CDBG fluids if the activity would have an adverse environmentalimpactorlimitthechoiceofreasonablealternatives.This restriction applies to activities as of <br />the date the CDBG program reçáv.gskp_gmit;1pillielion.Portions of preliminary designworkneededforcompletionoftheenvironmentalreviewareallowable. <br />Title 1 of the Housing and Corununity DevelopmentAct of 1974 as amended and theenvironmentalreviewproceduresfoundin24CFR58.22 apply to any activities as part ofaCDBGproject.The environmental review activities completed for other federal or statefundingcancontributetowardsbutnotentirelymeettheCDBG-specific procedure for NEPA <br />and SEPA.Section 6 of didliKI Management i landl×1ok providesfurther detail and thenecessaryCDBGforms. <br />Project Phase Restrictions on Eligible ActivitiesBeforeCDBGWiththeawardletter,the grantee can begin to incur costs up to 10%ofcontractisawardforthefollowingactivitieswhichdon't require an environmentalexecutedandreviewIFthegrantapplicationrequestedCDBGfimdingofthesecosts:environmental <br />review is Administration:Executing the CDBG contract.Establishingcompleteadministrative,fmancial,reporting,and record keeping systems,includingstaffing,travel and training. <br />Environmental Review: <br />Review of envirorunentallaws and authorities,including 24 CFR 58.5 and <br />Section 106 of the National Historic Preservation Act of 1996,such as: <br />•Consultation letters to affected tribes <br />•Cultural resource suivey <br />•Floodplain/wetlanddetermination <br />Prelminary engineering feasibility studies for the environmental assessment <br />such as surveying and geotechnical or geophysical analysis (excludingground-disturbingactivity of over one cubic sq.IL). <br />Subcontracting:Subrecipient agreements or professional service contractsforanyoftheaboveactivities. <br />Contract Page 035