Arkansas Administrative Code › Agency 012 - Department of Arkansas Heritage › Division 02 - Historic Preservation Commission › Rule 012.02.99-001 - Requirements and Procedures for Historic Preservation and Restoration Grants

Current through Register Vol. 49, No. 6, June, 2024
GENERAL
				INFORMATION
Grants awarded by the Arkansas Historic Preservation Program
				(AHPP) are funded by the General Revenues of the State of Arkansas and Special
				Revenues under the Real Estate Transfer Tax passed as Acts 729 and 818 of 1987,
				or by the National Park Service, United States Department of the Interior. The
				policies and procedures of the Arkansas Historic Preservation Program, as well
				as regulations governing the expenditure of all state and federal funds, must
				be followed by all grant recipients. The regulations set forth in this manual
				must be strictly adhered to by both the Arkansas Historic Preservation Program
				and by all grant recipients.
Please note: In most cases grant funds are
				considered taxable income and must be reported to the IRS.
PURPOSE
The Arkansas Historic Preservation Program (AHPP) recognizes
				the lack of financial assistance as one of the largest obstacles to the
				preservation of historic resources in Arkansas. The purpose of the Historic
				Preservation and Restoration Grant program is to encourage and promote
				preservation of Arkansas's historic resources by providing financial assistance
				for restoration of historic properties in Arkansas that meet certain
				eligibility requirements.
ELIGIBLE
				PROPERTIES
Two categories of properties for Historic Preservation
				Restoration Grants:
Category 1
Properties that are listed
				on the State Register if the proposed project will change the listing status to
				National Register.
Category 2
Properties that meet all
				three of the following criteria:
(a)
			 are listed on the National Register of Historic Places,
(b) are owned by a public entity or 5013c not
			 for profit organization and
(c)
			 must have a use that benefits the general public. Preference will be given to
			 projects that are not eligible for other AHPP grant programs, such as County
			 Courthouse Restoration Grants, Model Business Grants, Preservation Education
			 Grants, Main Street Arkansas Downtown Revitalization Grants, or Certified Local
			 Government Grants.
DESCRIPTION OF GRANT
				PROGRAMS
Two Historic Preservation Restoration Grant (HPRG) options are
				available.
OPTION 1
: Grants are
				available to the owners of properties listed on the State Register 1 (Category
				properties) that fund projects that would make the property eligible for the
				National Register of Historic Places.
OPTION 2
: Grants are
				available to the owners of Category 2 properties to fund approved restoration
				projects.
I.
GRANT
			 REQUIREMENTS
Cash Match
A 50% cash match is required for all Historic Preservation
				Restoration Grants
State and Federal Regulations
All grant recipients must agree to abide by and comply with
				applicable regulations and policies of the AHPP, including Fair Labor
				Standards, Title VI of the Civil Rights Act of 1964 [
				42 USC
				2000(d) ] and Section 504 of
				the Rehabilitation Act of 1973 [
				29 USC Section
				794 ], Title DC of the Education Amendment of
				1973, the Americans with Disabilities Act of 1991, as well as all other
				applicable state and federal laws, regulations, and executive orders. These
				laws prohibit discrimination on the basis of race, religion, national origin,
				age, or handicap.
Authorized Uses of Historic Preservation and Restoration
				Grants
Grants can not be used for acquisition costs of a property or
				to reimburse expenses for work done outside the grant period specified in the
				grant contract. Additionally, acquisition costs can not be used to satisfy cash
				match requirements. Grants funds may be used for, but are not limited to the
				following types of projects:
OPTION 1
grants
- Removal of artificial exterior siding and replacement with or
				repair of original exterior siding.
- Removal of non historic windows and replacement with original
				or replications of original windows.
- Removal of historically incorrect or inappropriate
				additions/modifications to the original structure, ie: porches, room additions,
				ornamentation, inappropriate roofing materials and replacements of same with
				historically correct materials etc.
- Replacement/reconstruction of missing historical features ie:
				columns, porches exterior ornamentation, chimneys, exterior architectural
				details etc.
OPTION 2
grants
- Repair or replacement of failed roofs with historically
				correct materials and appropriate design.
- Repair of failed foundations.
- Repair of failed structural components, ie: joist, rafters,
				floors, load-bearing walls, trusses columns, beams etc.
- Projects to bring property into compliance with the
				ADA.
- Repair or replacement of failed masonry.
- Replacement or repair of failed windows with historically
				correct windows.
- Repair or replacement of failed mechanical, plumbing, and/or
				electrical systems if the existing system(s) jeopardized the historic
				property.
- Removal of asbestos or lead paint.
- Repair and/or installation of seismic reinforcement.
- Repair, evaluation and/or protection of archeological
				resources.
NOTE: In general, for OPTION 2 grant applications, the greater
				the threat a particular problem poses to a structure's integrity and survival,
				the higher the priority it will receive during the grant application evaluation
				process. Additionally, it should be stressed that these grants are not intended
				for general maintenance projects.
Contract
Each grantee must sign a contract with the AHPP and comply with
				all of its terms. The contract is included in the grant award packet.
Conservation Easement
Recipients of grants of $5,000 or greater must convey a Deed of
				Conservation Easement for the affected property before receipt of any grant
				funds. An easement is a voluntary transfer of some of the rights inherent in
				property ownership. The historic preservation easement is a right or
				limitation, set forth in a legal instrument or deed, which allows the donor to
				retain ownership and possession of a historic landmark while granting a
				government agency or qualified non-profit organization the authority to protect
				the historic, cultural, architectural, or archeological characteristics of the
				property.
The agreement may be called a "preservation," "conservation,"
				"scenic," "interior," "open space," "exterior," or "facade" easement. The name
				has less to do with the way the agreement works than with the kind of resource
				it protects.
In each instance, the "easement," as it is legally termed, must
				contain binding and enforceable covenants that run with the land and structure.
				These covenants obligate the owner to refrain from actions that are
				incompatible with the preservation of and/or the historic integrity of the
				property. The Deed of Conservation Easement document must be executed in
				accordance with the AHPP's conservation easement program procedures.
Required Workshop
Grantees must attend a grant administration workshop in Little
				Rock at a time and location specified by the AHPP. Attendance is MANDATORY for
				the grant recipient or project manager.
FAILURE TO ATTEND THE GRANT
				ADMINISTRATION
WORKSHOP WILL RESULT IN CANCELLATION OF THE GRANT
				AWARD.
Construction Guidelines
All grant-supported projects must be in accordance with The
				Secretary of the Interior's Standards for Rehabilitation and Guidelines for
				Rehabilitating Historic Buildings. A copy of these standards is included in the
				award packet.
Before any grant-assisted work is done, the AHPP must
				review the plans and specifications of the project to insure compliance with
				these standards.
Maintenance Plan
A property owner receiving a grant of $ 10,000 or more from the
				AHPP is required to prepare a plan for the continued maintenance of the
				property. This plan will include schedules for building inspection and routine
				maintenance, personnel responsibilities, and proposed means of financing
				maintenance. It is recommended that before preparing the maintenance plan the
				grantee consult
"Cyclical Maintenance for Historic Buildings." A copy of this
				booklet is available from the AHPP.
II
GRANT
			 PROCEDURES
Grant Awards
Grants will be awarded annually. Eligible proposals are
				evaluated by a Grants Review Committee, consisting of the director of the AHPP,
				the chairman of the AHPP State Review Board, and a designated constituent at
				large.
Selection Criteria
The Grants Review Committee uses the following primary criteria
				to evaluate proposals:
* Threats to property or possibility of imminent loss
* Historic significance of property
* Impact of project on community preservation.
Other considerations, such as geographic distribution and
				conformance to community planning issues, may also affect decisions by the
				Grants Review Committee. In addition, the committee uses the following general
				criteria:
1. Evidence that the
			 objectives of the project can be achieved within the framework set forth by the
			 applicant
2. Qualifications and
			 experience of the applicant and others participating in the project
3. Interest of the applicant in undertaking
			 the project and acquired benefits to the applicant and to the AHPP
4. Appropriateness of the budget and
			 evidenced support for matching funds
5. Timeliness and the need and significance
			 of the project
6. Completeness of
			 application
(Incomplete applications will not be considered)
Project Time Limits
Unless otherwise authorized all projects
must be
completed within the time period specified in the grant contract. A
				grantee who is unable to meet a project deadline is required to submit a
				written request for an extension of time at least 14 days prior to the
				deadline. This request will be reviewed by the AHPP and the grantee will be
				notified as soon as possible of the action taken. A request for an extension
				does not guarantee it will be granted.
If the grantee does not meet an
				established deadline and/or does not request and receive an extension, the
				grant will be terminated on the contract end date and funds will be
				reallocated.
A grantee who encounters serious financial problems after
				accepting a grant, or who is for some other reason unable to proceed with the
				project, should immediately inform the AHPP. The funds will then be reassigned
				or returned to the AHPP according to the procedures specified in this
				manual.
Project Review/Approval
Project plans and specifications must be forwarded to and
				reviewed by the AHPP staff before work starts. If clarification or additional
				information is required, the grantee will be contacted.
When preparation for the project is complete, the grantee will
				notify the AHPP. The AHPP will then conduct a final review of all project plans
				and required documents. When all is in order, the AHPP will provide written
				authorization for work to begin.
Work may not begin until grantee
				receives this project initiation letter.
AHPP staff members may inspect the project before, during, and
				after the completion of the work. Once work has begun, the site visits may be
				made without notification to the grantee. An AHPP photographer may photograph
				the project.
The grantee and/or the project architect are encouraged to
				contact the AHPP with questions at any time before or during work on the
				project.
No changes in the project can be made after the project has been
				approved by the AHPP unless such changes are submitted in writing to and
				approved by the AHPP beforehand.
If changes are not approved, it is
				possible that the final work may not be approved and that full funding for the
				project could be denied In the event of unforeseen problems, the AHPP staff
				will work to find a solution satisfactory to both the grantee and the
				AHPP.
Allowable Expenses
A list of some of the most frequently used allowable costs
				follows. To be considered allowable, all costs must appear in the approved
				work-cost breakdown.
* Historical, architectural, or archeological research
				necessary to implement and carry out project work
* Architectural, engineering, or contractor fees necessary to
				implement and carry out project work
* Expendable supplies and materials
* Rental or lease of project equipment
* Exterior restoration
* Structural repairs.
Non-allowable
Expenses
The following costs are not reimbursed by Historic Preservation
				and Restoration Grants:
* Any item not listed in the approved work-cost
				breakdown
* Deficits
* Contingency funds
* Contributions or donations to other organizations or
				individuals
* Capital expenditures defined as tangible property costing
				$100 or more and having a life span of two or more years
* Entertainment expenses, including refreshments, flowers,
				reception costs, etc.
* Interest and other financial costs
*; Lobbying expenses
* New construction (some exceptions apply)
* Interpretive expenses (some exceptions apply)
* New pavement of parking lots, roads or walkways (some
				exceptions apply)
* Furnishings, draperies or carpeting
* Work done prior to grant award and after approved grant end
				date
* Installation of artificial siding, incompatible replacement
				windows, or the use of incompatible materials of any type
* Property acquisition costs
Selection of an Architect
Recipients of grants greater than $10,000 are required to use
				the services of an architect licensed by the State of Arkansas. The architect
				will prepare plans, specifications, a work-cost breakdown, and other required
				contract documents, for submission to the AHPP, and will supervise the project
				This requirement may be waived by the AHPP under certain circumstances.
Procedures for selection of an architect are contained in Act
				616 of 1989 of the State of Arkansas and should be reviewed. The major
				provisions of the selection process are stated here:
1. Competitive bidding for procurement of
			 architectural services is prohibited.
2. Contracts for architectural services shall
			 be negotiated on the basis of demonstrated competence and
			 qualifications.
3. Select at least
			 three (3) qualified firms based on such criteria as:
a. specialized experience and technical
			 competence;
b. ability to work
			 within required time limitations;
c. past record; and d. proximity to and
			 familiarity with the project.
4. Negotiate a satisfactory contract with the
			 most qualified firm. (See Section 5 of Act 616 for more details on the
			 negotiating process.)
The architect selected by the grantee must arrange to meet with
				the Arkansas Historic Preservation Program staff to discuss the project in
				detail.
Selection of a Contractor
Procedures for selecting a contractor and requirements for
				contractors are contained in Act 159 of 1949 as amended and should be reviewed.
				The major provisions of Act 159 are:
Contractor License
				Requirement
1. On projects of $ 10,000 or more,
			 contractors must be licensed by the Arkansas Contractors Licensing Board.
			 Contractors shall indicate their current license number on their bid
			 forms.
2. On projects of less than
			 $10,000, licensed contractors are not required, although the AHPP highly
			 recommends licensed contractors for all projects.
3. On projects of $50,000 or more, the
			 general contractor must list any roofing, plumbing, electrical and HVAC
			 subcontractors and these subcontractors must be licensed by the Arkansas
			 Contractors Licensing Board.
Contractor Insurance and Bonding
				Requirements
1. All contractors must carry construction
			 liability and workers compensation insurance regardless of the cost of the
			 project.
2. On projects of $10,000
			 to $19,999, contractors must furnish a 5% bid bond.
3. On projects of $20,000 or more,
			 contractors must furnish a 5% bid bond and a 100% performance bond.
4. Bonds shall be written in favor of the
			 grantee. After approval by the architect, the contractor shall file the bond
			 with the Circuit Clerk and Recorder of the county where the work is to be
			 performed. Contractor shall obtain from the Circuit Clerk certificates as
			 evidence that the bond has been approved and filed with the Clerk and said
			 certificates shall be filed with the architect. The premium for the required
			 bond shall be filed by the contractor. The bond must be obtained by the
			 contractor before the contract between the owner and the contractor can be put
			 into effect.
5. Insurance and
			 bonding agents must be licensed and authorized to do business in Arkansas.
Bid Procedures
Most grantees funded by this grant program must use competitive
				bidding to purchase goods, services, materials, and labor. Competitive sealed
				bidding is required for the purchase of any construction-related goods and
				services of $10,000.01 or more. All procurement of construction-related
				products and services between $1,000.01 - $10,000.01 shall be done by
				soliciting competitive quote bids by telephone or in writing from at least
				three qualified vendors.
Project Specifications
Project specifications shall contain the following
				statement:
"The Contractor is cautioned that this project involves
				largely RESTORATION WORK and maintaining the building in its present form is of
				utmost importance. The contractor shall use construction procedures calculated
				to protect the building. Any damage shall be repaired or replaced to present
				condition or better at no cost to the owner. This project involves state funds
				and carries the resultant obligations and restrictions."
Invitation to Bid
For projects costing more than $10,000.01, the grantee must
				seek bids by placing an advertisement once each week for at least two
				consecutive weeks in a publication that has general circulation in the county
				where the work is to be performed. Bid date must be at least one week following
				last advertisement. The grantee may also use additional advertising
				sources.
If a bid bond is required, the amount may be stated as a
				percentage. If the contract does not require a performance bond, the bid bond
				will be held until final acceptance and completion of the contract by payment
				in full. A statement of the taxing unit's reservation of the right to reject
				any or all bids and to waive any formalities; and such other pertinent facts or
				information which to It may appear necessary or desirable. The notice shall
				include a general description of the goods or services to be procured; shall
				state where bid documents may be obtained; shall state the date, time, and
				place of bid opening; and shall inform bidders that state funds are being used,
				and that relevant regulations, restrictions and applicable laws apply.
If, having advertised for bids, no bids are received by the
				date of the bid closing, the grantee must advertise for the goods and/or
				services to be procured a second time, with a second bid closing date
				established in accordance with these regulations.
Bids shall be opened at the time and place designated in the
				public notices and the invitation for bid. When practical, the names of the
				bidders and the amounts of their bids may be read aloud. Except where it may be
				deemed impractical, due to the nature or complexity of any invitation for bids,
				an abstract of bids that contains the amount of each bid and the name of the
				bidder shall be prepared for each invitation for bids. An abstract of bids
				shall be retained in the bid file and shall be available for public
				inspection.
Competitive Negotiation
Competitive negotiation may be used if conditions are not
				appropriate for the use of formal advertising. In competitive negotiation,
				proposals are requested from a number of sources and the Request for Proposals
				is publicized, negotiations are normally conducted with more than one of the
				sources submitting offers, and either a fixed-price or cost-reimbursable type
				contract is awarded, as appropriate. If competitive negotiation is used for a
				procurement under a grant, the following requirements shall apply:
1. Proposals shall be solicited
			 from an adequate number of qualified sources to permit reasonable competition
			 consistent with the nature and requirement of the procurement. The Request for
			 Proposals shall be advertised a minimum of five days statewide, and reasonable
			 requests by other sources to compete shall be honored to the maximum extent
			 practical.
2. The Request for
			 Proposals shall identify all significant evaluation factors. This
			 identification must include the price or cost, where required, and the relative
			 importance attached to price or cost.
3. The grantee shall provide mechanisms for
			 technical evaluation of the proposals received, determinations of responsible
			 offers for the purpose of written or oral discussions, and selection for
			 contract award.
4. Award may be
			 made to the responsible offeror whose proposal will be most advantageous to the
			 procuring party, price and other factors considered. Unsuccessful offers should
			 be notified promptly.
5. Grantees
			 may utilize competitive negotiation procedures for procurement of
			 architectural, engineering, archeological, and other professional services,
			 whereby competitor's qualifications are evaluated and the most qualified
			 competitor is selected, subject to negotiation of fair and reasonable
			 compensation.
Noncompetitive Negotiation
Noncompetitive negotiation may be used when the award of a
				contract is not feasible under competitive bidding (formal advertising) or
				competitive negotiation procedures. Noncompetitive negotiation is procurement
				by soliciting a proposal from only one source, or after soliciting a number of
				courses, it becomes apparent the competition is not adequate. Circumstances
				under which a contract may be awarded by noncompetitive negotiation are limited
				to the following:
1. The
			 item is available only from a single source.
2. Public exigency or emergency when the
			 urgency for the requirement will not permit a delay incident to competitive
			 solicitation.
3. After solicitation
			 of a number of sources, competition is determined inadequate.
Single source contracts must be approved by the AHPP.
Bid Documentation
The following bid documentation is required and a copy must be
				provided to the AHPP:
1.
			 Dated copies of all required advertisements
2. Dated copies of all sealed bids
			 received
3. Names and addresses of
			 all vendors contacted for quote bids
4. Quotes from all bids
5. Documentation of negotiations for
			 negotiated contracts
6.
			 Justification for why the lowest bid was not accepted, if such was the case.
Bid Acceptance and Award
An award may be made to the lowest aggregate bidder for all
				items, group of items, or an individual item basis, whichever is deemed to be
				in the best interest of the project.
The right to reject any and all bids and to waive
				technicalities and minor irregularities in bids should be allowed.
After a reasonable evaluation period, the contract shall be
				awarded to the responsive and responsible bidder who submitted the lowest bid
				that meets the requirements and criteria set forth in the Invitation for Bids.
				If after evaluation of the bids, including consideration of any clarifying or
				explanatory information submitted by the bidders, it is determined that no
				satisfactory bid has been received, all bids may be rejected. If all bids are
				rejected, the grantee must re-advertise for the goods and/or services to be
				provided in accordance with these regulations.
Grant Payments
Since grants are based on anticipated federal funds or
				state revenues and not on existing funds, grant amounts could be reduced at any
				time during the grant period.
The schedule of grant payments will depend upon the nature of
				the project Grant payments will be made directly to the grantee.
No payment will be made to the grantee unless payment
				requests are accompanied by progress or final reports as applicable. The
				grantee should use the following procedure:
1. No payment shall be made under this grant
			 agreement until recipient has made a cash match expenditure at least equal to
			 the payment requested.
2. One of
			 the following payment options can be used:
a.
			 Partial reimbursement payments upon completion of portions of the project (no
			 more than four requests during grant period)
b. One full payment upon completion of the
			 total project
3.
			 Requests for partial reimbursement payments must include:
a. Progress report
b. AHPP invoice form
c. Vendor invoice (s)
4. Final payment will be processed upon
			 approval of completed work. Request for final payment must include:
a. Final project report
b. AHPP invoice form
c. Vendor invoice (s)
d. Photographs of completed project
NOTE: A blank AHPP invoice form, progress report form, and
				final project report form are included in the grant award packet. Please make
				copies as needed.
Financial Records
Grantee is subject to make all finance records available for
				audit
Reporting
Grantees are required to submit reports during the grant period
				according to the grant agreement.
Progress reports are required at least quarterly and must
				accompany any partial payment request.
A final project report is required no later than 30 days after
				completion of the project This report must include certification/documentation
				of cash match, in-kind contributions, and total project costs. Full or final
				payment requests must be accompanied by the final project report
Reassignment of Funds
The director of the AHPP, the chairman of the Arkansas Historic
				Preservation Program State Review Board, and a designated constituent at large
				will meet to determine the reassignment of any unused grant funds previously
				awarded. The funds may be awarded to another qualified applicant with a current
				grant proposal on file, or returned to the AHPP depending on such factors as
				the amount involved, the needs at the time the funds become available, and when
				in the grant cycle the funds become available. All available information will
				be considered to ensure an equitable reassignment of funds.
III.
EXECUTIVE ORDER 98-04
All work performed with AHPP grant funds must comply with the
				terms of EO-98-04. A copy of the executive order is
				attached.