Bipartisan Infrastructure Bill Passes • LIHEAP and WAP Guidance •
DAB Decision Upholds Cost Disallowance • No Surprises Act •
Strategies for Preventing Fraud, Theft, and Embezzlement

Bipartisan Infrastructure Bill Passes: What CAAs Need to Know

On November 6, 2021, Congress passed the Infrastructure Investment and Jobs Act (the Act), a $1.2 trillion bill with significant implications for programs administered by Community Action Agencies (CAAs). The Act includes:

An additional $500 million for the Low Income Heat and Energy Assistance Program (LIHEAP), with $100 million available each year for fiscal years 2022-2026;
$3.5 billion in additional funding for the Weatherization Assistance Program (WAP), which will remain available until expended. Work funded in whole or in part by this supplemental WAP funding and performed on multifamily buildings with 5 or more units will be subject to the prevailing wage requirements of the Davis-Bacon Act (DBA). CAAs, contractors, and subcontractors working on these multifamily projects will need to document the payment of prevailing wages and submit certified payrolls each week. CAPLAW will be issuing additional resources on DBA compliance issues related to the Act’s new WAP funding as necessary.
A section on water infrastructure that will fund (1) a needs study for low-income water assistance programs and, (2) based on the results of the needs study, pilot programs around the country to provide water assistance to low-income families. For more information, see this summary from the National Energy Assistance Directors’ Association.
Historic investments in deploying and encouraging the adoption of broadband technology across the country. These investments include $14.2 billion for the new Affordable Connectivity Program meant to provide discounted broadband service and connected devices to low-income households, as well as $2.75 billion for the Digital Equity Grant Program to improve broadband access in underserved communities via state-developed “digital equity plans”.

For more information and background on new funding opportunities, see this article from law firm Bradley Arant Boult Cummings LLP.

On the Radar: LIHEAP and WAP Guidance

As the winter months set in, CAAs operating energy assistance programs should keep in mind the recently-issued Dear Colleague Letter from the Office of Community Services (OCS) (CSBG DCL-2022-08), which provides resources to help CAAs better coordinate services between the Low Income Home Energy Assistance Program (LIHEAP) and Emergency Rental Assistance (ERA) program. The DCL discusses the guidance from LIHEAP Information Memorandum 2022-01 on leveraging LIHEAP and ERA benefits to comprehensively meet the needs of eligible households. OCS is offering a series of office hours in January 2022 to support LIHEAP and ERA grant recipients as they begin to adopt the coordination guidance and continue to implement best practices. Each office hour session will be limited to 15 individuals on a first come, first served basis to maximize assistance. To see a list of office hour time slots and register for a session, please see CSBG DCL-2002-09.

Separately, the Department of Energy (DOE) recently announced that it would expand income eligibility for the Weatherization Assistance Program (WAP) to categorically include Department of Housing and Urban Development means-tested programs. This means that households with incomes at or below 80% of area median income and living in public housing, including Section 8 apartments, are categorically eligible for WAP services. For additional information see the DOE Program Notice (Weatherization Program Notice 22-5).

DAB Decision Upholds Cost Disallowance, Highlights Responsibility to Maintain Oversight over Contracts

On June 7, 2021, the Department of Health and Human Services’ Departmental Appeals Board (DAB) upheld an Administration for Children and Families (ACF) decision disallowing $195,763 in costs that Kanawha Institute for Social Research, Inc. (KISRA) charged to its federal Community Economic Development (CED) grant, which is awarded under the Community Services Block Grant (CSBG) Act for economic development projects benefitting low-income individuals and families. 42 U.S.C. § 9921(a)(2)(A). The disallowed costs were for equipment that KISRA purchased for its CED program, but never received from the vendor. This cost disallowance illustrates that it is the federal grantee’s responsibility to maintain oversight over its vendor contracts, and the grantee must ensure that the criteria for cost allowability under the Uniform Guidance, 45 C.F.R. Part 75, are met before allocating such costs to federal funds.

New Rules Under the No Surprises Act Take Effect in January

Starting January 1, 2022, interim final regulations issued under the No Surprises Act and aimed at protecting individuals from large unexpected medical bills will go into effect. The new rules were issued earlier this year by the U.S. Departments of the Treasury, Labor, and Health and Human Services, along with the federal Office of Personnel Management, and will affect health plans, health insurers, and health care providers under certain circumstances and situations.

Strategies for Preventing Fraud, Theft, and Embezzlement

Venable LLP recently published a two-part series on fraud, theft, and embezzlement in nonprofit organizations, issued in light of the New York Attorney General’s ongoing, high-profile litigation against the National Rifle Association for misuse of charitable funds. Considering a 2020 report finding that 74% of nonprofit fraud stemmed from the actions of individuals in management and officer positions, CAAs must be aware of the key risk factors that open the door to fraud at nonprofit organizations. According to the report, the top reasons for fraud all relate to internal controls—the lack of such controls, failure to review existing controls, and management overriding internal controls.