OSFAP RFI_Final 01032021.docx

State of Oregon Department of Environmental Quality

Onsite Septic Financial Aid Program Request for Information

Request for Information No. S-34000-00001528

This is a Request for Information, issued by the State of Oregon, Department of Environmental Quality to solicit information, including a non-binding price estimate, from interested agencies, tribes, and other qualified institutions to develop, operate, and administer a loan, grant, or other financial aid program for the repair, replacement, and evaluation of old or failing onsite septic systems for low/moderate income residents or small businesses in Oregon. Financial aid may include grants, loans, or other types of financial assistance to homeowners and small businesses. The RFI submittal deadline is Feb. 15, 2022.

This RFI may or may not result in a Request for Proposal (RFP) or Invitation to Bid (ITB). Responses provided to this RFI will be used only for general information purposes and will not be considered binding on any party. Respondents can respond to any part of the RFI; respondents do not have to respond to all questions. Responses provided to this RFI will not impact any RFP or ITB selection process. Under no circumstances will the DEQ be responsible for any costs and expenses incurred in submitting a response to this RFI.

Background

Primary Objectives and Timeline

The 2021 Oregon Legislature allocated $15 million in federal American Rescue Plan Act (ARPA) funds to the Oregon Department of Environmental Quality to address problems related to failing and outdated septic systems around the state. ARPA funds are intended to address public health and economic hardships that have been caused or worsened by the pandemic. The onsite septic financial aid can be used for the repair, replacement, upgrade and evaluation of residential, business or other onsite septic systems. Connecting individual failing onsite systems to locally available sewerage systems would also be allowable uses of these funds. These funds cannot be used for the design and construction of new area wide sewerage systems or to extend boundaries of existing sewer districts.

DEQ will distribute these funds as pass-through grants for financial aid projects to eligible organizations that will use the funding to administer individual grants, loans or other financial aid to property owners. We are awaiting further guidance from the Oregon Department of Administrative Services but expect that eligible financial aid project recipients include agencies, local government, tribes, and community development financial institutions. Evaluation of the outcomes from this financial aid is an important component of this funding opportunity, and administrative costs directly related to program implementation, data collection and review will also be allowable.

This RFI process will help identify potentially eligible projects and assist with statewide outreach to local communities. DEQ anticipates issuing Requests for Proposals for financial aid projects in spring 2022 with the first Financial Aid Projects funded in the third quarter of 2022. DEQ anticipates that financial aid project recipients will have until September 2026 to expend their grant funds. DEQ may elect to enter into agreements for up to three years. DEQ reserves the right to issue short term grants of one-year with the potential to renew funding. Continued funding will be dependent on good stewardship of the funds and demonstrated need.

Technical Details and Requirements

1. Grantees will be responsible for developing and administering their proposed financial aid projects including financial management and quarterly grant reporting, outreach, applicant screening, disbursing funds to service providers for eligible and approved septic work and collecting data for evaluation.

2. Grantees are encouraged to form partnerships with other organizations based on their expertise and can submit proposals where the duties are divided. For example, one entity who will receive the grant may be responsible for grant management and they may have consultants or subawardees responsible for the outreach and applicant screening. The grant will be issued to the entity responsible for grant management and financial reporting.

3. The target audience for these funds is Oregonians who are low- to moderate-income, based on available county census or demographic data who need financial assistance to complete the septic evaluations, repairs, upgrades, and replacements. Grants and loans are also eligible for small businesses, or affordable housing projects where the ultimate beneficiary is low/moderate income communities.

4. Financial aid project recipients who elect to use loans as all or part of their financial aid to property owners will assume all risk (including full loan repayment and penalties) in case of any loan defaults or property owners’ inability to repay the loans.

5. All septic work must be conducted by licensed installers and other professionals, except where DEQ rules specifically authorize property owners to perform work on their own properties. If a property owner does their own work, all other DEQ rules apply, and the property owner can receive reimbursement for design, equipment, and supply expenses but not labor. DEQ maintains a list of licensed installers and maintenance providers.

6. Payments for septic repairs, replacements, evaluations and other services will be made directly to the third-party professionals, not to the property owners. Allowable costs also include any required permits, design and engineering plans. As such this program cannot reimburse homeowners for expenses already incurred prior to their participation in the financial aid project.

Request For Information Questions

Please respond to the following questions to the extent that you can. We are looking for brief and high-level responses so we can understand your financial aid project. You will be able to provide more detailed information at the Request for Proposals stage.

1. What type of financial aid activities are you considering for your financial aid project? (Check all that apply)

Residential grants

Flood recovery and rebuilding effort

Essential or small business grants

Residential loans

Affordable housing, e.g., manufactured or RV parks

Small business loans

Fire recovery rebuilding efforts

Other (Please specify):

2. Please provide a one-paragraph description of your proposed financial aid project.

3. What problem would these grant funds help address? What population would be served? Can you quantify the approximate number of property owners or residents that may be served by your project?

4. How do your existing programs and organizational structure make you well qualified to administer this financial aid project? What resources do you have, and what additional resources (personnel, other overhead expenses, etc.) would you need, to implement your project?

5. Would your organization partner with other agencies or nongovernmental organizations? What types of partnerships are you considering?

6. How would you identify and target low/moderate income recipients (typically up to 120% of median county income) and how would you conduct outreach to these sectors of the community?

7. If you are proposing funding projects that benefit property owners with incomes above 120% of median income, how would you balance that with needs of lower income property owners to make best use of public funds.

8. We anticipate that grants from DEQ will range from $500,000 - $2,000,000, with the potential for renewed funding for successful programs if funds remain.

8.1 Approximately how much money would your organization require from the State of Oregon to successfully support your financial aid project?

8.2 Please estimate the dollar amount for the following categories: Personnel costs for staff directly working on the financial aid project, grants awarded to property owners and businesses and/or loans issued, paid consultants or subawards (for project partners), general administrative/overhead costs (dollar amount or percentage), and other (please describe).

9. Some applicants may plan to issue loans instead of, or in addition to, grants. If your organization plans to issue affordable loans, please describe your loan program including:

9.1 Description of your organization’s existing loan program(s) for property owners (residential and business).

9.2 Explain whether and how you would make loans available and attractive to low-income borrowers.

9.3 Would you consider zero interest loans and/or capital forgiveness for some or all borrowers?

10. [Optional] You may provide brief additional information your organization believes DEQ should know as part of the RFI process. You can also email any additional attachments with this form when you submit it.

Please include the following details with your response.

Name of organization:

Organizational Structure, e.g., Public Agency, sovereign tribal government, CDFI, local government

Headquarters/main office address:

Optional - Additional or branch office addresses in Oregon:

Contact Name and Title:

Email Address:

Phone Number:

Please submit your response by 5 p.m. (Pacific Time) on Feb. 15, 2022 by email to: bidsdeq@deq.oregon.gov with “Septic Funding RFI” in the subject line.

Questions can be sent to onsiteseptic.info@deq.oregon.gov.

Thank you, Deb Mailander Onsite Programs Manager Oregon Department of Environmental Quality ARPA Request For Information 1 of 8 image1.png