|
Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4389
<br /> using funds for increased repair or commenters argued that Treasury Treasury Response:Capital
<br /> maintenance needs to respond to should limit use of funds on capital expenditures,in certain cases, can be
<br /> significantly greater use of public expenditures not related to addressing a appropriate responses to the public
<br /> facilities during the pandemic (e.g., direct pandemic harm, such as general health and economic impacts of the
<br /> increased use of parks resulting in economic development or workforce pandemic,in addition to programs and
<br /> damage or increased need for development,and some expressed services. Like other eligible uses of
<br /> maintenance). Some commenters support for generally limiting capital SURF funds in this category,capital
<br /> expressed support for the ability to use expenditures to those that address the expenditures should be a related and
<br /> funds for these purposes. Treasury is needs of low-income communities and reasonably proportional response to a
<br /> maintaining these enumerated eligible communities of color. public health or negative economic
<br /> uses in the final rule and clarifying that Many commenters requested that impact of the pandemic. The final rule
<br /> capital expenditures such as technology capital expenditures related to direct clarifies and expands how SURF funds
<br /> infrastructure to adapt government COVID-19 public health response be may be used for certain capital
<br /> operations to the pandemic (e.g.,video- included as enumerated eligible uses. expenditures,including criteria and
<br /> conferencing software,improvements to The requested types of expenditures documentation requirements specified
<br /> case management systems or data include improvements and construction in this section,as applicable.
<br /> sharing resources),reduce government of hospitals and health clinics
<br /> backlogs, or meet increased (including behavioral health clinics),as Treasury provides presumptions and
<br /> maintenance needs are eligible. well as other health-related guidelines for capital expenditures that
<br /> infrastructure improvements,such as are enumerated earlier in sections
<br /> b. Capital Expenditures improvements to medical equipment or Public Health,Negative Economic
<br /> The interim final rule expressly public health information technology. Impacts, and General Provisions: Other
<br /> permitted use of funds for a limited These commenters stated that under the Public Health and Negative
<br /> number of capital expenditures that investments in health and public health Economic Impact eligible use category
<br /> mostly pertained to COVID-19 systems are vital to ensuring critical ("enumerated projects"),along with
<br /> prevention and mitigation. These infrastructure necessary to respond to capital expenditures beyond those
<br /> included capital investments in public continued impacts of COVID-19 or to enumerated by Treasury. In addition to
<br /> facilities to meet pandemic operational address disparities in health, due to lack satisfying the two-part framework in
<br /> needs,such as physical plant of access to health care,that contributed Standards:Designating a Public Health
<br /> improvements to public hospitals and to disproportionate impacts of COVID— Impact and Standards:Designating a
<br /> health clinics; adaptations to public 19 on some communities. Further, some Negative Economic Impact for
<br /> buildings to implement COVID-19 commenters requested that construction identifying and designing a response to
<br /> mitigation tactics;ventilation or improvements of emergency a pandemic harm,Treasury will require
<br /> improvements in congregate settings, management and public safety facilities projects with total expected capital
<br /> health care settings, or other key be deemed eligible,citing that some of expenditure costs of$1 million or
<br /> locations;assistance to small businesses these sites serve as remote vaccination greater to undergo additional analysis to
<br /> and nonprofits and aid to impacted sites or are otherwise crucial to the justify their capital expenditure.
<br /> industries to implement COVID-19 pandemic public health response. Increased reporting requirements will be
<br /> prevention or mitigation tactics, such as Commenters also requested use of required for projects that are larger in
<br /> physical plant changes to enable social funds for capital expenditures that size, as well as projects that are not
<br /> distancing. For disproportionately support community needs apart from enumerated as eligible by Treasury,
<br /> impacted populations and communities, health care, such as new construction or with certain exceptions for Tribal
<br /> the interim final rule also expressly improvements to schools, affordable governments discussed below. Smaller
<br /> permitted development of affordable housing(beyond presumed projects with total expected capital
<br /> housing to increase the supply of disproportionately impacted expenditures below$1 million will not
<br /> affordable and high-quality living units. communities),childcare facilities, and be required to undergo additional
<br /> Public Comment:Many commenters community centers; some suggested that analysis to justify their capital
<br /> supported the interim final rule's all types of projects permissible under expenditure,as such projects will be
<br /> allowance of capital expenditures in the Community Development Block presumed to be reasonably proportional,
<br /> facilities to meet pandemic operational Grant Program should be eligible both provided that they are responding to a
<br /> needs but requested that the final rule for policy and administrability reasons, harm caused or exacerbated by the
<br /> explicitly allow for a broader range of Further,some commenters also asked public health emergency.These
<br /> capital expenditures. Commenters for clarification as to whether parks and standards and documentation
<br /> expressed an interest in investing in recreational facilities are eligible if built requirements are designed to minimize
<br /> equipment,real property,and facilities in certain disproportionately impacted administrative burden while also
<br /> that they argued will yield lasting areas,as well as public transportation ensuring that projects are reasonably
<br /> benefits beyond the SURF period of infrastructure. proportional and supporting Treasury's
<br /> performance. Some commenters stated Finally, some commenters also
<br /> that the approach in the interim final requested use of funds for capital risk-based approach to overall program
<br /> rule limited the vast majority of capital expenditures in government management and monitoring.
<br /> expenditures to governments that administration buildings, such as public This section provides (1) an overview
<br /> experienced revenue loss under courthouses,as well as technology of general standards governing capital
<br /> Sections 602(c)(1)(C) and 603(c)(1)(C) infrastructure that would allow for expenditures; (2)presumptions on
<br /> and that this approach may prevent remote delivery of public benefits. capital expenditures,which help guide
<br /> some governments from fully meeting Others also asked about whether funds recipients in determining whether the
<br /> the needs of their residents. A few could be used to renovate vacant expenditure meets the standards and the
<br /> business district buildings or associated documentation requirements;
<br /> resolution,and other expenses to expedite case commercial spaces to spur economic and (3) additional standards and
<br /> resolution are eligible uses." recovery. requirements that may apply.
<br />
|