CPD Notice (CPD-23-06) on Allocating Costs Overview Webinar
Summary

On August 24, 2023, HUD’s Office of Community Planning and Development (CPD) issued a Notice providing updated guidance for allocating costs titled, Notice CPD-23-06 Allocating Costs between Program Administration Costs, Activity Delivery Costs, and Planning Costs for Community Development Block Grant Disaster Recovery (CDBG-DR) Grantees, CDBG Mitigation (CDBG-MIT) Grantees, and CDBG National Disaster Resilience (CDBG-NDR) Grantees (Notice). This Notice replaces the previously issued Notice CPD-13-07 for grantees administering CDBG-DR, CDBG-MIT, and CDBG-NDR funds only.

The Office of Disaster Recovery’s (ODR) Policy Division hosted a webinar on September 28, 2023, from 2:00-3:30 PM EDT. During this session, HUD provided a comprehensive overview of the Notice to enhance grantees’ understanding and implementation of the guidance. In addition, the Policy Division answered specific questions related to the Notice.

 

Summary of the CPD Notice
 
This Notice provides updated guidance, applicable to states and local government grantees receiving CDBG-DR, CDBG-MIT, and CDBG-NDR funds. It provides guidance on the allocation of costs between three cost categories: (1) Program Administration Costs; (2) Activity Delivery Costs; and (3) Planning Costs and explains how these cost categories intersect with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Requirements) located in 2 CFR part 200. The Uniform Requirements address cost allowability, cost reasonableness, allocable costs, applicable credits, and the composition of costs as either direct or indirect. As of August 24, 2023, (the publication date of this notice), Notice CPD-13-07 no longer applies to CDBG-DR, CDBG-MIT, or CDBG-NDR grants.
 
Please note that Notice CPD-13-07 has been republished as Notice CPD-23-07 to remove all the references to CDBG-DR funds to provide streamlined implementation for grantees. This distinction also allows for Notice CPD-23-06 to only be applicable to CDBG-DR, CDBG-MIT, and CDBG-NDR funds to avoid confusion for other CPD programs.
 
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Content current as of December 12, 2024.