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APPENDIX G BOULDER COUNTY COLLABORATIVE RECAPTURE PLAN Overview The Boulder County Collaborative ("BCC") is responsible for making a good faith effort to only fund eligible applicants and projects with the Community Development Block Group -Disaster Recovery ("CDBG-DR") funds from the Department of Housing and Urban Development ("HUD"). The City of Longmont ("City") is the Lead Agency for the BCC and is also responsible to monitor recipients of the CDBG-DR funds for compliance with the terms of their award. In the execution of these responsibilities, the City may on occasion seek to recapture funds awarded to residents or sub -grantees ("recipients") who did not spend the funds according to the rules of the Program, or who were awarded funds erroneously. HUD does not distinguish between persons who received funds due to an error on the part of staff or an error on the part of the applicant, however HUD does have different recapture ("collection") processes for residents who deliberately withheld or falsified information in the application process, as this is fraud. HUD has no set guidelines or regulations for recapture of funds from individuals. This plan and timeframe was designed to be consistent with OMB Circular A-87 (2 CFR Part 225), OMB Circular A-85, 31 U.S.0 37 901 and 902, 24 CFR 17 Subpart C, 31 CFR, Forgivable Promissory Note, Homeowner/Contractor Agreement, closing documents and/or Grant Agreements signed by recipients of the program, and is designed to provide guidance on recapturing funds erroneously given out or erroneously spent through the HUD CDBG-Disaster Recovery Program ("Program") from the 2013 flood in Boulder County. The first part of this plan deals with recapture procedures for ,funds awarded erroneously or for Program non-compliance. The second part of this plan deals with the recapture of funds obtained fraudulently. In the third part of the plan, BCC puts forth the method by which it will redistribute the recaptured funds within the local community. Background The City of Longmont, as the Lead Agency for the BCC, conducts an internal review of Program files. The review is to determine that in the awarding and disbursing of Program funds, the files are documented according to program policies. Documentation must be in the files and the review is to determine whether safeguards exist to ensure that recipients use funds for their intended purposes. The Statute of Limitations for initiating recapture proceedings is six (6) years following signature on the application forms [24 CFR 28.35(a)]. 23 L \FRIEDLAN\My Documents L\CDBG\2016 CDBG-DR IGA I.owsville_F1NAL.docx 3/15/2016