Lands and Investments, Office of

Loan and Investment Board

Chapter 40: Health and Human Services Capital Construction ARPA Grants

Effective Date: 12/08/2022 to Current

Rule Type: Current Rules & Regulations

Reference Number: 060.0003.40.12082022

Chapter 40

Health and Human Services Capital Construction ARPA Grants

Section 1. Authority. This Chapter is adopted pursuant to 2022 Wyo. Sess. Laws Ch. 50, §§ 2, FN 16; 3(d).

Section 2. Definitions. In addition to the definitions in Chapter 1, as used in this Chapter:

1. (a) “ARPA” means the federal American Rescue Plan Act, Pub. L. 117–2.
2. (b) “Business days” means Monday through Friday, except for federal or state holidays.
3. (c) “Community Mental Health Center Regional Crisis Stabilization Facility” means a human services provider that currently provides community-based, short-term residential treatment units for immediate care to individuals experiencing a mental health or substance use disorder crisis.
4. (d) “COVID-19” means as defined in W.S. § 1-1-141(a)(ii).
5. (e) “Entity Funds” means funding provided directly by an applicant and includes an applicant’s operating, reserve, or investment funds, loans, and direct donations received by the applicant. “Entity Funds” does not include federal or state grant funding.
6. (f) “Final Rule” means the Treasury’s regulations governing the Coronavirus State and Local Fiscal Recovery Funds, 87 Fed. Reg. 4338–4454 (Jan. 27, 2022) (codified at 31 C.F.R. pt. 35).
7. (g) “Fund” means the eighty-five million dollars ($85,000,000.00) appropriated to the Board for “HHS Capital Construction” by 2022 Wyo. Sess. Laws Ch. 50, § 2 from the State and Local Fiscal Recovery Fund. The Fund is divided into two categories:
8. (i) “Broad-Eligibility Funds” means the sixty-three million dollars ($63,000,000.00) from the Fund available for any qualifying project; and
9. (ii) “Narrow-Eligibility Funds” means the twenty-two million dollars ($22,000,000.00) from the Fund available only to certain applicants specified in § 4(d) of this Chapter.
10. (h) “Incurred.” A cost has been “incurred” when the recipient has incurred an obligation with respect to such cost.
11. (i) “Qualifying Health and Human Services Infrastructure and Capital Construction Investment” or “Qualifying Project” means an eligible rural telehealth pilot project or a capital construction project that:
12. (i) Improves:
    1. (A) A health care facility as defined W.S. § 35-2-901; or
    2. (B) A facility operated by a Qualifying Human Services Provider;
13. (ii) Is eligible for funding with State and Local Fiscal Recovery Funds under 42 U.S.C. § 802(c)(1)(A) and the Final Rule as a proportional response to the public health emergency to address an identified harm caused or exacerbated by COVID-19; and
14. (iii) Provides a public benefit that substantially outweighs any private benefit.
15. (j) “Qualifying Human Services Provider” means an entity providing human services programs as defined in W.S. § 35-1-613 licensed by, regulated by, or receiving funding from the Wyoming Department of Health or the Wyoming Department of Family Services.

(k) “Rural Health Clinic” means a clinic that is located in a rural area designated as a shortage area, is not a rehabilitation agency or a facility primarily for the care and treatment of mental diseases, and meets all other requirements of 42 C.F.R. §§ 405 and 491.

Section 3. General Policy. The Board shall award grants from the fund under the provisions of this Chapter in accordance with ARPA and 2022 Wyo. Sess. Laws Ch. 50 and in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of the Fund.

Section 4. Award of Funds.

1. (a) The Board may award grants from the Fund.
2. (b) Grants awarded from this Chapter may only be used to cover costs:
3. (i) Incurred during the period beginning on March 3, 2021, and ending on December 31, 2024;
4. (ii) Incurred as a part of a Qualifying Project; and
5. (iii) Meet all applicable requirements contained in ARPA and the Final Rule.
6. (c) Funding limitations.
7. (i) The maximum grant amount for a single project shall be ten million dollars (\$10,000,000.00).
8. (ii) All grant funding is conditioned on a match of funds in a one-to-one (1:1) ratio from any other source of funding, unless this condition is modified by the Board pursuant to Section 9 of this Chapter.
9. (d) Funding allocations.
10. (i) Awards from the Fund shall be allocated in accordance with this paragraph.
    1. (A) Broad-Eligibility Funds shall be available for grants to any applicant eligible under § 5 of this Chapter.
    2. (B) From the Narrow-Eligibility Funds, seven million dollars (\$7,000,000.00) shall be available for grants to Community Mental Health Center Regional Stabilization Facilities and women's substance use disorder facilities for any qualifying project.
    3. (C) From the Narrow-Eligibility Funds, thirteen million dollars (\$13,000,000.00) shall be available for grants to Rural Health Clinics for any qualifying project.
    4. (D) From the Narrow-Eligibility Funds, two million dollars (\$2,000,000.00) shall be available for grants for eligible rural telehealth pilot projects.
11. (ii) Unless otherwise specified in the Board's award, the Office shall draw amounts for any awarded grant first from any Narrow-Eligibility Funds for which the project is eligible. If the project is not eligible for Narrow-Eligibility Funds or no Narrow-Eligibility Funds applicable to the project remain, the Office shall then draw from Broad-Eligibility Funds.

Section 5. Eligible Applicants.

1. (a) To be an eligible entity for a grant under this Chapter:
2. (i) The applicant must be legally formed and approved prior to submitting an application; and
3. (ii) The applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit, Wyoming Department of Revenue, Wyoming Department of Family Services, and Wyoming Department of Health prior to its application being considered by the Board.

(b) To be eligible for Narrow-Eligibility Funds, the qualifying project must also meet the purposes of the applicable narrow funds, as set forth in § 4(d) of this Chapter.

Section 6. ARPA Eligibility Justification. All projects under this Chapter must be eligible for funding under ARPA and the Final Rule. Eligible projects must be a direct and proportional response to COVID-19 or its negative economic impacts.

(a) Each application shall contain a justification explaining how the project is eligible under ARPA for funding.

(i) Applications for capital projects shall include the capital project justification described in Subsection (b) of this Section.

(ii) Application for rural telehealth projects shall include the rural telehealth project justification described in Subsection (c) of this Section.

(b) Justification for Capital Projects. For each proposed capital project, the application shall contain a written justification, which shall include:

(i) A detailed description of the identifiable harm caused or exacerbated by COVID-19 that the project is intended to address. This description shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the specified harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the specified harm, such as the number of individuals or entities affected, and establishing a link between the harm and COVID-19.

(ii) An independent assessment demonstrating why a capital project is appropriate to address the specified harm, which shall include:

(A) An explanation of why the applicant’s existing capital equipment, property, or facilities are inadequate to addressing the specified harm;

(B) A description of how the proposed project will address the identified harm;

(C) An explanation of why policy changes or additional funding to pertinent programs or services would be insufficient without the corresponding capital projects; and

(D) A description of why other possible non-capital interventions would be inefficient, costly, or otherwise not reasonably designed to remedy the specified harm without additional capital expenditure.

(iii) An objective comparison of the proposed capital project against alternative capital expenditures and demonstrate why their proposed capital project is superior to alternative capital expenditures that could be made. Applicants shall assess the proposed capital project against at least two alternative types or sizes of capital expenditures that are potentially effective and reasonably feasible. Where relevant, applicants shall compare the proposed project against the alternative of improving existing capital assets already owned or leasing other capital assets. Applicants shall use quantitative data when available. For each identified alternative, applicants shall provide:

(A) A comparison of the effectiveness of the capital projects in addressing the specified harm. This comparison shall consider the effectiveness of the capital projects in addressing the specified harm over the useful life of the capital asset and shall consider metrics such as the number of impacted or disproportionately impacted individuals or entities served, when such individuals or entities are estimated to be served, the relative time horizons of the project, and consideration of any uncertainties or risks involved with the capital project; and

(B) A comparison of the expected total cost of the capital projects. This comparison shall consider the expected total cost of the capital project required to construct, purchase, install, or improve the capital assets intended to address the specified harm. Applicants shall include pre-development costs in their analysis and shall provide an estimate of ongoing operational costs.

(c) Justification for rural telehealth projects. For rural telehealth projects, the applicant shall provide:

(i) A description of the harm necessitating the project, which shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the harm, such as the number of individuals or entities affected.

(ii) A description of the telehealth project, which shall include:

(A) A detailed description of the project specifications, including the details of any infrastructure to be improved or constructed, and the type and quantity of any equipment, software, or other goods or services that will be purchased with grant funds;

(B) A detailed description of how the project addresses the specified harm or need; and

(C) An explanation of how the project is a proportional response to the specified harm, including a comparison of the proposed project to other possible ways of addressing the specified harm.

Section 7. Application Procedure

(a) Applications. Separate applications shall be prepared for each individual project. Applicants shall submit applications in a manner prescribed by the Office. All applications shall be properly executed by the officers of the applicant.

(b) Timing. The Board may establish one (1) or more open application periods by providing notice to the public on the Office’s website. The Board may modify an open application period at any time before the end of the application period. After the close of each application period, the Board shall designate a regular or special meeting to consider applications received during the application period and post notice of that meeting on the Office’s website. Applications received by the Office after the close of the application period will not be considered at the designated Board meeting, but may be resubmitted during any later application period designated by the Board.

(c) Required Information. The following information shall be provided by all applicants:

(i) A complete application on a form provided by the Office;

(ii) A standard resolution authorizing the filing of the application on a form provided by the Office;

(iii) A certification statement attesting that the funds being requested will be used in accordance with all requirements and conditions of the ARPA, 2022 Wyo. Sess. Laws Ch. 50, and this Chapter. If it is determined that the funds were not used as intended, the recipient shall refund disbursed funds to the Office within fifteen (15) Business Day following notification;

(iv) The amount of any CARES grants awarded by the State and any ARPA State and Local Fiscal Recovery Funds the applicant has received and a brief summary of how the funds were spent, or plan to be spent;

(v) A detailed project budget delineating all costs of the proposed project and the method by which the project costs were estimated;

(vi) Expected draw down of funds broken into at least six (6) month intervals;

(vii) For capital projects, a licensed architect's or engineer's statement that the project is feasible and can reasonably be completed by December 31, 2026;

(viii) Copies of funding commitments from all project funding sources, including the applicant, demonstrating sufficient match funding;

(ix) Copies of audited financial statements for the past three (3) years;

(x) Copies of approved budgets for fiscal years ending in 2021, 2022 and 2023, if available;

(xi) If the applicant is a special district, a copy of the resolution that shows formation of the special district and certification from the applicable Board of County Commissioners that the special district currently exists;

(xii) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement approved by the Attorney General;

(d) The ARPA Eligibility Justification required by Section 6 of this Chapter;

(e) Additional Information Required: If the funding request is for the purchase of a building or land, a market analysis must be completed and submitted with the application to determine the fair-market value. Office staff shall review and approve the methodology used for valuation and the overall market value prior to grant funds being disbursed for reimbursement of related costs.

(f) Preliminary Review. The Office shall notify the applicant, in writing, if the application lacks any of the items required in sub-Sections (c) and (d) of this section. The applicant shall have five (5) Business Day to submit the required information.

(g) False or Misleading Statements.

(i) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(ii) Any requests made for reimbursement that are determined to be false or misleading and/or ultimately ineligible after the funds have been disbursed shall be paid back to the Office within fifteen (15) Business Days following notification.

(h) Incomplete Applications. Applications that are missing one (1) or more of the information items requested and/or fail to meet established deadlines, shall not be presented to the Board for consideration.

(i) Summary Rejection. The Office shall summarily reject all applications that are clearly ineligible under this Chapter or ARPA.

Section 8. Ineligible Project Expenses.

(a) Ineligible Project Costs. The following is a non-exclusive list of project costs ineligible for reimbursement from the Funds:

(i) Revenue replacement;

(ii) Debt service and replenishment of rainy day funds;

1. (iii) Satisfaction of settlements and judgments;
2. (iv) Any use that disregards or violates federal conflict of interest requirements, or other federal, state, and local laws and regulations;
3. (v) Damages covered by insurance;
4. (vi) Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency;
5. (vii) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to ARPA or repayment of federal loans;
6. (viii) Costs incurred prior to March 3, 2021;
7. (ix) Any expense that is ineligible under ARPA or the Final Rule;
8. (x) Reimbursement to donors for donated items or services;
9. (xi) Workforce bonuses other than hazard pay or overtime;
10. (xii) Severance pay;
11. (xiii) Legal settlements;
12. (xiv) Prepayment on contracts;
13. (xv) Costs for tap fees, sewer and water fees, and plant investment fees;
14. (xvi) All non-cash costs;
15. (xvii) Costs for preparation or presentation of applications;
16. (xviii) Costs for transportation, meals and lodging and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;
17. (xix) Costs related to issuance of bonds;
18. (xx) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;
19. (xxi) Costs to establish and form special districts or joint powers boards;
20. (xxii) Costs for a contingency or extra work allowance in excess of ten percent (10%) of estimated construction costs;
21. (xxiii) Costs of elections;
22. (xxiv) Costs associated with the applicant's equipment;
23. (xxv) Legal costs unless pre-approved by OSLI;
24. (xxvi) Markups by engineers/architects of sub-consultant and other outside charges; and
25. (xxvii) Retirement of debt.

Section 9. Match Requirements

(a) Applicants shall provide fifty percent (50%) match funding for the total project cost, unless modified by the Board pursuant to subsection (b) this Section. Match funding may come from any source that may legally serve as a match for the Board’s funds.

(i) Applicants must have all match funding committed and verified by the

Office before the Office may disburse any grant funds.

(ii) The Board may conditionally award grants to applicants that do not have all match funding committed by the date of the grant award. Applicants shall raise the required match funding prior to receiving any disbursements. If applicants fail to raise the required match funding in accordance with the schedule provided in this Paragraph, the grant shall be considered forfeited and all grant funding shall revert to the Office.

(A) No later than six (6) months from the date of award, the grantee shall have thirty-three percent (33%) of the required match funding committed to the project;

(B) No later than one (1) year from the date of award, the grantee shall have sixty-six percent (66%) of the required match funding committed to the project;

(C) No later than December 31, 2023, the grantee shall have the full amount of the required grant funding committed to the project.

(b) The Board may modify the match requirement upon a determination of need in accordance with this subsection.

(i) If the applicant is a taxing authority:

(A) The Board shall not reduce the match requirement for a county unless the county imposes at least eleven (11) or ninety-one and sixty-seven one-hundredths percent (91.67%) of the available mills authorized by Art. XV § 5 of the Wyoming Constitution, or unless the county is imposing the optional sales tax authorized under W.S. 39-15-204(a)(i) or (iii);

(B) The Board shall not reduce the match requirement for a municipality unless the municipality imposes at least seven (7) or eighty-seven and five-tenths percent (87.5%) of the available mills authorized by Art. XV § 6 of the Wyoming Constitution; and

(C) The Board shall not reduce the match requirement for a special district which imposes less than eighty percent (80%) of any authorized mill levy.

(ii) If the Board determines that an applicant has an increased need for financial assistance, the Board may reduce the match requirement by 5% for each of the below criteria the applicant meets:

(A) The applicant is a county, city, or town whose population is below the state median for its entity type, as determined by the last federal census;

(B) The applicant is a special district or nongovernmental organization whose primary service area includes less than 1,300 people, as determined by the last federal census;

(C) The Average Median Household Income of the geographic area served by the applicant is below the State AMHI, using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the county AMHI will be used as the default;

(D) The applicant's primary service area has a proportion of the population living below the federal poverty level greater than the state median, as determined by the last federal census;

(E) The applicant's unemployment rate or the unemployment rate of the applicant's primary service area is equal to or greater than the state median, as determined by the last census;

(F) The applicant has not received any federal relief funding of any kind;

(G) The applicant has not received any federal relief funding that could have legally been used for capital construction.

(c) Applicants may provide in-kind contributions to the project as all or part of the required match.

(i) Any proposed in-kind match must be reasonable and easily valued at fair market value.

(ii) An applicant submitting an in-kind match shall provide an appraisal or other reasonable demonstration of the fair market value of the match.

(iii) The Board shall determine the value of the proposed in-kind match.

(iv) If the Board determines that an applicant’s proposed in-kind match is not sufficient to meet the required match, the Board may conditionally grant the application in accordance with § 9(a)(ii) of this Chapter.

Section 10. Evaluation of Applications.

(a) Criteria. The Board shall evaluate applications utilizing the following criteria:

(i) Whether the project is an appropriate use of the Fund and in compliance with all applicable state and federal laws, rules, and regulations;

(ii) The applicant’s financial ability to assist in funding the project and to support the project in the future to ensure the continued operation and investment into the project for the foreseeable future;

(iii) The source, amount and status of match funding;

(iv) The applicant’s historical investments into capital assets;

(v) The current available healthcare facilities in the relevant community;

(vi) The impact of COVID-19 on the populations served by the applicant;

(vii) The amount of grant funding received by the applicant related to the COVID-19 pandemic and how those funds were spent; and

(viii) The applicant’s timeline to expend all grant funds.

(b) To assist the Board in prioritizing among eligible projects, the Office shall compute a score for each project in accordance with this subsection. The Office shall calculate a score for each project based on:

(i) The applicant’s financial ability to assist in funding the project and to support the project in the future to ensure the continued operation and investment into the project for the foreseeable future;

(A) Applicants demonstrating stable financial viability for at least ten (10) years shall receive three (3) points under this Paragraph;

(B) Applicants demonstrating stable financial viability for at least five (5) years shall receive two (2) points under this Paragraph;

(C) Applicants demonstrating stable financial viability for at least three (3) years shall receive one (1) point under this Paragraph;

(D) Applicants demonstrating financial viability for less than three (3) years or failing to demonstrate stable financial viability at this time shall receive zero (0) points under this Paragraph.

(ii) The amount of match funding;

(A) Applicants providing a full fifty percent (50%) match shall receive two (2) points under this Paragraph;

(B) Applicants requesting a reduction in the required match shall receive zero (0) points under this Paragraph;

(iii) The source of match funding;

(A) Applicants funding the full amount of the required match from Entity Funds shall receive (3) points under this Paragraph

(B) Applicants funding less than one hundred percent (100%) but more than 50% of the required match amount from Entity Funds shall receive (2) points under this Paragraph;

(C) Applicants funding between twenty-five percent (25%) and fifty percent (50%) of the required match amount from Entity Funds shall receive one (1) point under this Paragraph;

(D) Applicants funding less than twenty-five percent (25%) of the required match amount from Entity Funds shall receive zero (0) points under this Paragraph;

(iv) The status of match funding;

(A) Applicants with the full required match amount committed at the time of scoring shall receive two (2) points under this Paragraph;

(B) Applicants that have not yet fully funded the required match shall receive zero (0) points under this Paragraph;

(v) The applicant's historical investments into capital assets;

(A) Applicants investing in capital assets in the last three (3) years shall receive three (3) points under this Paragraph;

(B) Applicants investing in capital assets in the last ten (10) years shall receive two (2) points under this Paragraph;

(C) Applicants investing in capital assets in the last twenty (20) years shall receive one (1) point under this Paragraph;

(D) Applicants that have not made capital investments in the last twenty (20) years shall receive zero (0) points under this Paragraph;

(vi) The availability of similar facilities in the relevant community;

(A) Applicants in communities with no reasonably similar facilities within fifty (50) miles shall receive three (3) points under this Paragraph;

(B) Applicants in communities with no reasonably similar facilities within thirty-five (35) miles shall receive two (2) points under this Paragraph;

(C) Applicants in communities with no reasonably similar facilities within fifteen (15) miles shall receive one (1) point under this Paragraph;

(D) Applicants in communities with reasonably similar facilities shall receive zero (0) points under this Paragraph;

(vii) Whether the applicant provides primary care services, integrated care practices, and/or services on the mental health continuum

(A) Applicants serving primary care needs for both physical and mental health through an integrated care model shall receive three (3) points under this Paragraph;

(B) Applicants with more than fifty percent (50%) of their practice providing primary care services for physical health or services on the mental health continuum shall receive two (2) points under this Paragraph;

(C) Applicants with less than fifty percent (50%) but more than twenty-five percent (25%) of their practice providing primary care services for physical health or services on the mental health continuum shall receive one (1) point under this Paragraph;

(D) Applicants with twenty-five percent (25%) or less of their practice providing primary care services for physical health or services on the mental health continuum shall receive zero (0) points under this Paragraph.

(viii) The relative need of the community;

(A) Applicants serving communities located in qualifying census tracts shall receive two (2) points under this Paragraph;

(B) Applicants that do not serve communities located in qualifying census tracts shall receive zero (0) points under this Paragraph.

(ix) The availability of other relief funding;

(A) Applicants that did not receive any CARES funding or direct ARPA funding shall receive three (3) points under this Paragraph;

(B) Applicants receiving other relief funding shall receive zero (0) points under this Paragraph.

Section 11. Board Consideration. The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant, if any. The Board may limit comment time at the discretion of the Chair.

Section 12. Fund Disbursement and Administration.

(a) Fund Disbursement. Funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing. From the time the project commences to the completion of the project, requests shall be submitted for reimbursement no more frequently than once a month and not less than quarterly.

(b) Fund Reversion. Any grant funds that have not been obligated by October 1, 2024 shall be deemed rejected by the recipient and shall revert to the Office. All requests for reimbursement for eligible expenses must be received by the Office no later than October 1, 2026. Any unused portions of the grants awarded pursuant to this Chapter shall revert to the US Department of the Treasury on December 31, 2026 whether or not the project is completed and all eligible expenses have been requested for reimbursement.

Section 13. Reporting Requirements.

(a) Applicants shall comply with all federal and state reporting requirements.

Section 14. Audits and Inspections.

(a) The Board may, at its expense, conduct an audit of the records of the applicant.

(b) The applicant shall allow the Federal and/or state government to conduct an audit of the records related to the expenditure of moneys from the Fund.

(c) The applicant shall comply with any applicable requirements of the Single Audit Act or other federal reporting and audit requirements. If seven hundred fifty thousand dollars ($750,000.00) or more is disbursed in any given year, an audit must be completed in accordance with 31 C.F.R. Part 200, Subpart F.