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LFRF NEU Distribution FAQs

Frequently asked questions about the Local Fiscal Recovery Fund.

Who is eligible to receive an LFRF distribution from the State?

Distribution is limited to New Hampshire non-metropolitan cities and towns (so-called Non-Entitlement Units or NEUs). This includes all New Hampshire municipalities except for Dover, Manchester, Nashua, Portsmouth, and Rochester – these five cities receive separate Local Fiscal Recovery Fund allocations. U.S. Treasury has published the list of local governments eligible to receive a distribution.

Are village districts eligible to receive an LFRF distribution from the State?

No. The only localities eligible for a distribution were listed by the U.S. Treasury [see list here].  For New Hampshire, the list is limited to the 229 municipalities that did not received a distribution directly from the federal government. This includes all New Hampshire municipalities except for Dover, Manchester, Nashua, Portsmouth, and Rochester – these five cities receive separate Local Fiscal Recovery Fund. This does not include village districts. See also Frequently Asked Questions on Distribution of Funds to Non-entitlement Units of Local Government, FAQ #7.9 and Coronavirus State and Local Fiscal Recovery Funds Frequently Asked Questions, FAQ #1.3.

How are awards calculated?

The State received $122,208,773 in the aggregate to be distributed to the eligible NEUs. Each NEU’s share of the funding was calculated by the federal government as the amount that bears the same proportion to the amount of aggregate payment as the population of the NEU bears to the population of all NEUs in the State. The payment may not exceed 75% of the most recent budget for the NEU as of January 27, 2020. The “most recent budget” is the “most recent annual total operating budget including its general fund and other funds.” Each NEU’s allocated share of total funding and the amount that is payable in the first tranche may be accessed here.

Will the NEU have to report on its use of the funds?

Yes, the NEU will need to report to the U.S. Treasury. With respect to funds received under the Local Fiscal Recovery Fund Distribution Program, NEUs are considered prime recipients of Treasury and pursuant to award terms and conditions will be required to comply with any reporting obligations established by Treasury as they relate to LFRF funds.

Is an NEU required to accept Local Fiscal Recovery Funds?

No. An NEU may decline the funding and transfer its share to the State. To do this, an NEU must apply through the GOFERR portal. By declining and transferring LFRF funds to the State, the U.S. Treasury will consider the award to the municipality cancelled and modify the amount of State Fiscal Recovery Funds (SFRF) awarded to the State to include the amount declined. The State will be able to use the declined funds for any purpose allowable for SFRF funds and will not have an obligation to use them for the benefit of the declining municipality. Having declined and transferred LFRF funds to the State, the municipality will not have any legal obligation to U.S. Treasury with respect to accounting for the uses of the funds and the reporting on such uses.

What happens if an NEU does nothing?

An NEU that fails to file an application by August 18, 2021, to either request funds or decline funds and transfer to the State, will be deemed “nonresponsive.” The amount of unclaimed funds for all nonresponsive NEUs will be gathered by the State after August 18th and re-distributed by GOFERR pro rata among the NEU’s that requested the funding. See Overview of Guidance (Webinar Deck for State Governments), Slides 16 and 17.

What if an NEU has questions about the application process?

Questions about the application process may be directed to GOFERR through the GOFERR portal for inquiries. When submitting your inquiry, please choose “City/Town Funding” from the “I am reaching out about” drop down menu.

What if an NEU has questions about how to use the funds?

Information about how to use the funds can be found in U.S. Treasury FAQs. U.S. Treasury limits the State’s ability to advise NEUs on the use of funds, but to provide as much assistance as allowable, the State is working with Guidehouse, an organization that will be able to assist NEUs. FAQs specifically prepared for NEUs by Guidehouse will be available on the GOFERR website. Questions about more specific uses may be directed to Guidehouse through the GOFERR portal for inquiries. When submitting your inquiry, please choose “City/Town Funding” from the “I am reaching out about” drop down menu. Additionally, information targeted to NEUs may found on the NH Municipal Association’s American Rescue Plan Act of 2021 Information Page.