How To Complete A Successful Capacity Build Grant Application For the CB 2018 Round Capacity Building Staff (TAMI) How many of you have a staff person at your affiliate? How many of you need more staff at your affiliate? This is a grant that can help you pay for and sustain a new high impact position at your affiliate. That’s right! Operating money…

Workshop Objectives Gain a better understanding of the Capacity Build Grant program as well as HFHI and federal requirements. Discover what additional materials and planning will be required to complete the Capacity Build application. Gain a better understanding of how to develop and transcribe work plan goals and detailed action plans. Learn the next steps for applying. (TAMI) Review bullets

Grant Overview The purpose of the Capacity Build Grant is to help affiliates increase their organizational capacity so they can build more houses, raise more money and partner with more families. (TAMI) This grant is all about helping affiliates grow… The grant comes from a small piece of the HUD pie called Section 4 Capacity Build. This funding can only be awarded to HFHI – LISC & Enterprise at this time So this is federal funding awarded to HFHI who then awards it to affiliates.

Eligible Expenditures Salary of a new full time position 3 year diminishing grant – maximum request $100,000 Maximum salary reimbursement $50,000; $35,000; $15,000 Funds the following first time positions: Executive Director Faith Relations Manager Volunteer Coordinator Family Services Director Restore Manager Restore Director – only when multiple stores are open NR Coordinator (NOT the construction person) Community Outreach Manager (NOT direct fund-raiser) Qualified Loan Originator Other as approved by CB Program Head (operations) Training award $5000 (MARK) The positions we can fund is long and open to some discussion if your affiliate wants to do something slightlu unique or different. 2 positions that we absolutely cannot fund – Direct Construction & Fundraising An Executive Director may have fundraising as part of their duties but fundraising cannot be their primary role. A Community Outreach position may include the creation of new partnerships but direct solicitation must be done by someone else. From the construction perspective the position we fund cannot pick up a hammer on our dime – they cannot supervise the overall construction process.

Unfortunately, we CANNOT fund: Direct Construction Positions Direct Fund-Raising Positions

The Money Again: First year, up to $50,000 Second year, up to $35,000 Third year, up to $15,000 Salary ONLY, NOT BENEFITS Plus $5000 training money that can be used by affiliate in ANY way by ANYone

Grant Requirements Increase of 15% in unit construction 5 to 1 match in funding 10 to 1 leverage Good standing including QLO, safety Job description, work plan and a fund development plan (MARK) You must meet some requirements to apply Be in good standing - To achieve good standing, an affiliate will: Sign and submit a properly executed U.S. Affiliation Agreement. Conduct its work in accordance with the USAA and its schedules. Be current in its U.S. Stewardship & Organizational Sustainability Initiative (US-SOSI) fee payments. Submit the Quality Assurance Checklist during the most recent period. Submit the Affiliate Statistical and House Production Reports during the most recent period. Submit an annual tithe contribution. Serve at least one family per year through one of the following housing interventions: (i) new home (ii) rehabilitated home (iii) repaired home (through A Brush with Kindness or similar repair program) (iv) recycle (v) weatherized home A minimum of one family served over a three-year period must be through a rehab or new home construction. Comply with HFHI logo and branding standards set forth in the Brand Builder’s Handbook. Comply with terms and agreements related to HFHI grant or funding programs in which the affiliate participates.  15% increase can include rehabs that cost at least 15% of your normal construction cost and repairs that cost at least $5000 Match can include any and all funds including mortgage payments and restore sales. The only thing you cannot count is additional federal funding. You only match what you receive. The leverage is done as a group leverage which Habitat will typically manage and only a few affiliates will be asked to assist with documentation on.

Federal Requirements Fair Housing Act Title VI of the Civil Rights Act of 1964 (Non-discrimination) Age Discrimination Act 1975 Rehabilitation Act of 1973 (Non-discrimination against handicapped individuals) Equal Employment Opportunity Act Drug Free Workplace Act of 1988 Lobbying Restrictions (MARK) You must adhere to all federal requirements to receive federal funds – really should be doing all of these anyway.

Non Compliance Penalties Affiliates not meeting building goals or the 5-to-1 fund matching requirement will be ineligible for HUD funds (which includes SHOP funds) for the next two years. Affiliates meeting less than 50% of their goals at the end of each fiscal year will not be allowed to continue in the program. Affiliates meeting more than 50% but not all of their goals at the end of each year will need to provide written justification for unmet goals to be sent to HUD. Affiliates not submitting progress reports (both quarterly and annually) or submitting reports after the due date will lose their award. (TAMI) While these are compliance points you will have lots of support from CB Staff to ensure that you do not get to these. Discussions take place before any affiliate is removed. Sometimes there are extenuating circumstances that effect an affiliate’s ability to meet a goal and we try to take that into account

Application Affiliate Information Income Summary/Plan Minimum Requirements Financial Accountability including Audit House (Unit) Production Income Summary/Plan Detailed Work Plans (TAMI) We ask for all your basic affiliate information – who what and where We also ask for each affiliate to answer some questions about what internal resources and support you have, how you operate and a few basic assessment questions You are required to be in good standing and answer some basic questions related to good standing requirements. Your Selection Criteria must have been approved by the ASC in the last 12 months You must transfer title within 6 months of completion Audit, financial reports are required – Income Sheet & Balance Report Past 3 years of building and then building goals for the 3 years of the grant. Income Summary will require revenue totals for multiple areas Finally you will be asked to complete a work plan and detailed action plans Let’s look more closely at these components of the application

Construction Progress Chart and Plans Must Show at Least 15% increase in unit production New houses and rehabs costing over 15% of new house price, for a Habitat family, with payback count as units Critical repairs that cost more than $5000 AND have a payback also count Recycles of old Habitat houses do NOT (MARK) You will be expected to complete a building schedule that supports the completion of at least 15% more units over the 3 years of the grant. What counts towards the 15%?

More about Critical Repairs They must be CRITICAL- health, safety, access, code violations, major systems Must have a value of over $5000 Must be a Habitat approved family Must have a repayment system

Recycles… Putting another family in a previously build Habitat house DO NOT COUNT

Must Be Enough to Pay for Houses and Affiliate Operations Income Plan Summary Plan Details Must Be Enough to Pay for Houses and Affiliate Operations Must Explain Large Increase/Decrease in any given area Give more information then you think necessary (TAMI) Income must be tracked in multiple categories; Individuals, Businesses, Churches, Foundations/Grants, Government, Mortgage Payments, Work Teams, Annual Trademark Events (special events), HFHI, ReStore, SSO, GIK, FHLB & Other sources Review bullets

Work Plan These are the annual goals for your affiliate, laid out by topic for the three years of the grant Make sure you have realistic goals that will lead to the necessary growth Don’t cut and paste from year to year (MARK) Leadership/Management – Board & Staff Operations Resource Development Family Services Land Acquisition Construction Handout planning form

We will ask for work plans for: Board Staff Operations Family Support Construction Land Volunteers Resource Development

Detail Action Plan Take your work plan and flesh it out for each operational area; you will have 12 quarters to fill in Each goal should be supported by multiple action steps More detail is better Don’t cut and past from quarter to quarter 8 Topics, 4 quarters, 3 years= 96 Boxes (TAMI) The details will support the goals you have set. Read bullets If one of my goals in Leadership/Management Board Goals is to Increase board membership then action steps might be Q1 Assess board skill and talents needed Develop recruitment plan Create recruitment materials Q2 Identify prospects Make asks Q3 Hold orientation for new members Q4 Have new members complete New Leader Series on HFHI Learning Site

The grant year usually is: April 1- March 31 So year one, April 1, 2019 to March 31, 2020 Year two, April 1, 2020 to March 31, 2021 Year three, April 1, 2021 to March 31, 2022 The farther away, the harder to predict!

Example: Let’s Say a BIG Family Services Goal for Year 1 is: Improve budget classes and other educational offerings for approved home buying families

Example: Then Quarterly Goals Might Be: 1: Search My.Habitat for information on what other affiliates are doing 2. Talk to 5 other similar sized affiliates about their offerings 3. Recommendation to senior staff for review 4. Board approves, implementation starts

Reporting All Together 22 Reports!! Can You Handle That? Quarterly Progress Report Financial Status Report/ Match Report and leverage report - 6 mo. Annual Report Final Report All Together 22 Reports!! Can You Handle That? (MARK) Reporting is important as we must report to HUD If you are late you are jeopardizing the entire program for 100s affiliates

Where Do Applicants Go Wrong? Failure to fill out the whole application- we get 3 times the applications we can fund. If yours isn’t filled in, we don’t look at it! Simple as that. House increases are too modest or too ambitious. Do NOT overreach! Bigger numbers do NOT mean a better chance at funding. Not enough revenue to support the building goals (MARK)

You only need a 15% Increase Don’t put HUGE numbers you can’t reach Better to go over a modest estimate than fall short If you are starting a new program (repairs, aging in place, etc.) be conservative Raters are NOT impressed with increases that don’t seem possible

Funding Section Issues There isn’t enough income to fund the projected houses Numbers don’t add up No explanation for large increases or decreases Funding seems like too big a reach (MARK)

Work Plan Issues Not complete, not enough detail Plans don’t proceed logically Cut and paste, copying from cell to cell Goals seem too ambitious or not ambitious enough (TAMI)

Special NR Issues NR Coordinator can’t do direct building Small repair, A Brush with Kindness, weatherization will not count as units and will not help you meet building goals You must be in NR, have an NR plan and target neighborhood to request an NR Coordinator (TAMI)

You have to have a GREAT application, because…. We could fund about 35 positions in 2017 BUT had 120+ affiliates ask for applications Many good applications will not be funded If you had a CB grant before, how you did with that grant will matter. A LOT.. (TAMI)

If you want to apply: Write to CB@habitat.org to get on the list to be notified when applications are available. The application is available now and is due on November 30th Check out the Capacity Building Grant page on My.Habitat. That’s where you will apply. Watch the US Office News and My.Habitat for announcements of dates. Applications should open in October! Start on your work plans! (MARK)

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The CB Grant Team Is: Director: Anna Beningo ODCs: Tami Page Mark Lassman-Eul Administrator Melissa Rogers-Jackson Grant Managers: Susanne Calloway Susan Cook Sherry Eiler Pam Hudson (MARK)

If you are interested in applying… Email cb@habitat.org and include the following; Contact information including the email address that you log in to My.Habitat with Position you think you will be applying for (TAMI)