SSBG IM 01-2006 Supplemental Emergency Funds for Construction

The Office of Community Services had received several queries from States on the use of SSBG Supplemental Emergency Funding to meet a variety of pressing needs. One such question is: May States use SSBG Supplemental Emergency Funding for repair, renovation or construction of health care facilities built by private entities?

The Department of Defense Appropriations Act, 2006 (Public Law 109-148), also known as the Emergency Supplemental Appropriations Act, provided $550 million in SSBG funding for FY 2006, in addition to the regularly-funded block grant program, to address the social and health services needs of individuals, and for the repair, renovation and construction of health facilities affected by the 2005 Gulf Coast Hurricanes.

The statute authorizing the SSBG Supplemental Funding states:

 "Provided, that in addition to other uses permitted by title XX of the Social Security Act, funds appropriated under this heading may be used for health services (including mental health services) and for repair, renovation and construction of health facilities (including mental health facilities)."

The authority as outlined in the Act allows for the use of SSBG Supplemental Emergency Funding to public, non-profit and private entities for the repair, renovation or construction of health care facilities as a reasonable interpretation of the law. There is no conflict with general administrative rules, Office of Management and Budget circulars or current grants administrative policies, as long as the use of these funds is consistent with the laws and procedures applicable to the State, both with regard to the States’ own provisions for obligations and expenditures under State policies, and in accordance with applicable Federal regulations (see block grant regulatory language at 45 CFR 96.30(a)).

This directive includes the application of State standards relating to the protection and disposition of real estate purchased with grant funds. Accordingly, as indicated in Part 3.04.104 of the HHS Awarding Agency Grants Administration Manual, any award involving construction is required to include language that ensures that the Federal interests in property, during and after the period of award, are adequately protected and includes the requirement for a Notice of Federal Interest (NFI). States shall use a version of the NFI form to fulfill this requirement. A sample version of the NFI Form is attached and as such, States shall reproduce this form with text as written and appropriate inserts when projects receiving SSBG Supplemental Emergency Funding utilize this funding for construction projects.

There is no other regulatory or policy language cited for application.

In summary, there are two qualifications for States to utilize when they intend to use SSBG Supplemental Emergency Funding authority for private, as well as public and non-profit entities, to repair, renovate or construct health care facilities:

1. States will apply their own administrative standards when they issue sub-awards under the Emergency Supplemental Appropriations Act of 2005 (Public Law 109-148) for construction. This means State standards relating to the protection and disposition of real estate purchased or constructed with grant funds are applicable to funds awarded.

2. States must establish, as a condition of funding to all entities receiving SSBG funds under the Emergency Supplemental Appropriations Act of 2005 for construction, the requirement that a Notice of Federal Interest (NFI) is filed as a condition of the award. In this way, the NFI officially recognizes the Federal government's continuing financial interest in the property. 
Please address inquiries to

Marsha Werner
Social Services Block Grant Program Manager
Office of Community Services
U.S. Department of Health and Human Services
370 L’Enfant Promenade, SW
Washington, DC 20447
Telephone: (202) 401-5281
Fax: (202) 401-5718
Email: mwerner@acf.hhs.gov

___________________________
Josephine B. Robinson
Director
Office of Community Services