MODULE 4 FHIP NOFA – FACTOR 3

What will be covered in Module 3: Factor 3 - Maximum Points and Distribution for each sub-factor Factor 3 – Sub-factor: Support of Policy Priorities Factor 3 – Sub-factor: Statement of Work and Information Requirements Factor 3 – Sub-factor: The Budget Form and Supporting Budget Factor 3 – Budget Tips ** ** **This presentation is not a substitute for the information in the HUD General Section and FHIP NOFAs.**

FACTOR 3 SOUNDNESS OF APPROACH - 28 Points 3

FACTOR 3 SUB-FACTORS a.Support of Policy Priorities (4 points)  Affirmatively Furthering Fair Housing (2 points)  Capacity Building and Knowledge Sharing (2 points) b. Proposed Statement of Work (SOW) and Information Requirements (14 points) c. Budget and Cost Estimates (10 points) 4

3.a. Support of Policy Priorities Applicants are required to address the following policy priorities to receive policy priority points:  Affirmatively Furthering Fair Housing (AFFH)  Capacity Building and Knowledge Sharing Details on both can be found on pages 34 through 36 of the FY2013 FHIP NOFA. 5

3.b. Proposed Statement of Work (SOW) and Information Requirements Describe in detail all proposed project activities, major tasks/steps, and deliverables to complete the proposed activities. Identify anticipated measurable outcomes these activities will have on the targeted population. Identify key team members/staff and partners, as identified in Factor 1 who will be responsible and accountable for completing each major task. Details can be found on pages 34 through 39 of the FY2013 FHIP NOFA. 6

7 SOW Tips Think of your SOW as a roadmap that clearly describes, in chronological order, each activity and task necessary to carry out your proposed project. You must provide in your SOW the projected number of clients to be served with HUD FHIP funds. This information should be carried forward to your e-Logic Model as well.

SOW Tips (cont’d) SOW should include: Details of all proposed project activities and tasks to complete the proposed project Expected measurable outcomes the activities will have on the targeted population Identity of who will perform the activities and major tasks (e.g., key team members and staff, a subcontractor, or partner) as identified in Factor 1 The organization’s proposal for testing if the applicant proposes a Testing Program 8

SOW Tip (cont’d) There are some criteria that are specific to the area in which you are applying for funding. –Multi-Year Applicants – must identify the continuation of existing activities or expansion of systemic investigation based on prior FY2012 PEI FHIP funded activities or other fair housing enforcement activities. You are also required to submit a SOW and a separate budget for each actual year of the organization’s activities. 9

3.c. Budget and Cost Estimates (10 pts) 3.c. Budget and Cost Estimates (10 pts) The Budget Form and Budget Information are used to categorize and detail budget items and information about your proposed project. This information shows the estimated costs required to support your grant program efforts. Your budget must relate to the tasks in the SOW, including identifying key team members/staff and partners, as identified in Factor 1 who will be responsible and accountable for completing major task, and to HUD’s Program Outcome Logic Model (Logic Model). You must cross reference your response to Rating Factors 1, 2, 3b – SOW, Factor 4, and Factor 5 – The Logic Model. 10

Project Budget Your budget has 2 parts 1.A budget worksheet (HUD Form 424-CBW) 2.A budget narrative Tasks in SOW must relate to your budget cost. You must include all total planned budget expenditures from all sources. You must include the value of in-kind and monetary contributions. Evaluators will deduct points if you have leveraged funds listed in Factor 4 that are not included in your Budget. 11

Project Budget (cont’d) You must prepare a budget for each year of support requested. Include budgets for all major contractors and other partners. 12

Unallowable Costs Applicants should be familiar with the complete list of unallowable costs contained in the applicable cost principles. The following categories of unallowable costs are highlighted here because of their sensitivity:  Entertainment  Expenses of employees who are not on project travel status  Meals and coffee breaks  Alcoholic beverages 13

Budget Narrative You will also be required to complete a budget narrative. This will be an opportunity for you to further explain and justify your budget. An effective narrative will: The length of the budget narrative does not count towards the page limit for the narrative factors. You must explain each cost category listed and justify the direct cost for the proposed project activities. Include travel costs for contractors or consultants that are consistent with federal regulations and show that these costs do not exceed local rates and fees. Failure to submit a written budget narrative will result in 0 points be given for this subfactor. 14

Budget Narrative (cont’d) Your budget must also discuss the following: Include a description of your organization’s financial management system, including your Board’s role in financial management/oversight and your organization’s capabilities handling financial resources and disseminating payments in a way that meets federal standards. The organization’s capabilities in handling financial resources and dissemination payments to third parties. 15

16 SF 424 CBW SF 424 CBW All applicants remember to: Use SF 424 CBW Form (Budget Worksheet) It includes direct labor, fringe benefits, travel, equipment, supplies/materials, subcontractors/consultants, other direct and indirect, and in-kind contributions. Forms located on

17 Budget Tips Failure to submit a written budget narrative will result in 0 points instead of a possible 2 points for this sub-factor. In your narrative discuss how your program is cost effective for achieving anticipated results. Training Funds  You must budget $10,000 per year for HUD sponsored or approved training.  For the PEI Multi-Year component, you must budget $10,000 annually for a 36-month duration subject to availability of appropriations.  Sponsoring organizations must budget $10,000 annually for ENOC sponsored organizations to participate in the same.  Minor errors can result in a score reduction or ineligibility. Review your budget to make sure it is correct.

18 Budget Tips (cont’d) Budget Tips (cont’d) PEI and FHOI Limitations for Education & Outreach - No more than 20% of your proposed budget can be allocated to education and outreach related activities. If you exceed this limit, points will be deducted from this sub-factor. Applicants to the PEI Multi-year Funding Component must submit a three-year budget that outlines your proposed activities and how funds are to be spent based upon appropriations.

19 Budget Tips (cont’d) Budget Tips (cont’d) All applicants must remember to: 1) Complete HUD 424 Form 2) Do not exceed award cap 3) Round to nearest dollar 4) Refer back to Rating Factors 1, 2, 3b and SOW 5) Include training and travel costs on HUD 424. All travel costs must relate to project activities. 6) Ensure budget form reflects the order of SOW and project activities 7) Include written budget narrative for each budget item. Failure to include will result in ) points given for this sub-factor. 8) Attach separate budgets for subcontractors and consultants, if necessary.