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County attorneys flag federal clawback risk on ARPA awards; commissioners approve several grants with conditions
Summary
Utah County approved ARPA grants to medical and social service providers, including Family Haven, while the county attorney’s office warned that evolving U.S. Treasury rules create federal clawback risk and recommended additional protections (bonding or lockbox) for recipients without county‑located real property.
The commission considered several American Rescue Plan Act (ARPA) grant awards for medical and social‑service projects. County attorneys briefed the board on the federal compliance risk: evolving U.S. Treasury guidance can trigger clawbacks, and the county needs enforceable remedies if the federal government later finds non‑compliance.
Ben Stander (County Attorney’s Office) emphasized the attorneys’ preference for protections that the county could enforce in a worst‑case clawback scenario—ideally a lien on real property, a restrictive deed, or a bond. For awardees that lease property or lack county‑based real property, those protections are harder to secure. Stander recommended continuing at least one item (Rocky Mountain University Foundation) or negotiating a bonding/lockbox arrangement; he said the attorney’s office had asked Rocky Mountain to provide lockbox language but had not yet received it.
The board discussed options and liabilities, including a suggested escrow/lockbox arrangement as a middle ground. Despite attorney cautions, the commission voted to authorize the agreement on agenda item 9 (Rocky Mountain University Foundation) after discussing alternatives. Commissioners also corrected a typographical error and approved the Family Haven award as a $2,000,000 grant after staff noted the packet misstated the amount as $1,500,000 in multiple places.
Paul Jones (County Attorney’s Office) and Rob Moore (County Attorney’s Office) added legal context and described negotiation leverage; commissioners asked staff to return with proposed lockbox language if Rocky Mountain supplies it and to document potential fiscal exposures. The attorney’s office said it will continue to seek terms that reduce county exposure to potential federal clawbacks.
