LOC News
U.S. Treasury Releases New ARPA FAQs and Affordable Housing Guidance
On July 27, the U.S. Treasury released a revised FAQ Document to answer some common questions from American Rescue Plan Act (ARPA) recipients about the Final Rule that became effective April 1. This is the first update since April and includes revisions to FAQ numbers 2.14, 3.1, and 4.9 and the addition of new FAQ numbers 6.17 to 6.20 and 13.13 to 13.17.
What is New in the Revised FAQ Document?
Revised FAQ 2.14 provides additional guidance to cities wishing to utilize their ARPA funds for affordable housing projects. Treasury also collaborated with the U.S. Department of Housing and Urban Development (HUD) on a new Affordable Housing How-To Guide that compliments the revised FAQ.
Revised FAQ 3.1 clarifies that cities will now be able to update their revenue loss election (whether to take the $10 million standard allowance) in future Project and Expenditure Report filings. This election will significantly ease reporting for cities that received less than $10 million in ARPA funds.
Revised FAQ 4.9 provides additional information on using ARPA funds to provide loans, including loans for affordable housing and loans reported under the revenue loss category.
New FAQ 6.17 deals with replacement or placement of utility poles as an eligible use.
New FAQs 6.18 and 6.19 clarify that infrastructure projects funded solely with ARPA funds are not subject to Build America Buy America (BABA) provisions in the Infrastructure Investment and Jobs Act (IIJA), but that BABA provisions may apply if ARPA funds are supplemented with other federal funds subject to BABA.
New FAQ 6.20 similarly clarifies applicability of the National Historic Preservation Act (NHPA) to projects funded with ARPA funds.
New FAQs 13.13 to 13.17 provide additional guidance around reporting requirements, including when subrecipient reporting will be required, applicability of the Uniform Guidance, and asset use and disposition requirements for assets purchased with ARPA funds. FAQ 13.14 specifically states that subrecipient reporting will not be required under the revenue loss eligible use category, which had been an open question and a concern for some smaller cities.
The LOC reminds cities that they need to make sure their SAM.gov entity registration is still active as a condition of receiving ARPA funds. Additional information on renewing registrations is here. We know some cities are having issues renewing their registrations due to recent changes in the process and a backlog of help requests. Having an active SAM registration is a U.S. Treasury requirement for receiving ARPA funds, so please keep working on it. If you are having trouble documenting your date of incorporation you may try sending a copy of your city’s entry in the Secretary of State’s Oregon Blue Book.
Contact
Mark Gharst for general ARPA questions at mgharst@orcities.org or 503-991-2192
Ariel Nelson for affordable housing questions at anelson@orcities.org or 541-646-4180
Last Updated 7/29/22