Draft ACTION PLAN Community Development Grant Program Disaster Recovery (CDBG-DR) Agency of Commerce and Community Development Department of Economic, Housing and Community Development June 5, June 7, and June 12, 2012

Community Development Block Grant – Disaster Recovery (CDBG-DR) PUBLIC HEARING AGENDA Overview CDBG-DR Regulations - Highlights Proposed Timeline Presentation of Draft Action Plan Clarifying Questions & Answers Public Input

Community Development Block Grant – Disaster Recovery (CDBG-DR) Overview Federal Register Notice – Official Notice –Funding from the U.S. Department of Housing & Urban Development (HUD) –Released, April 16, 2012 –Effective, April 23, 2012 Presidentially-declared disasters –DR-1995, April 23-May 9, 2011 Flooding –DR-4001, May 26-27, 2011 Flooding –DR-4022, August 27-September 2, 2011 Tropical Storm Irene

Community Development Block Grant – Disaster Recovery (CDBG-DR) $21,660,211 CDBG-Disaster Recovery funding Assist communities with disaster recovery –Restoration of infrastructure –Housing –Economic Development

Community Development Block Grant – Disaster Recovery (CDBG-DR) Allocation based on unmet needs –Federal Register pg , Appendix A. Allocation Methodology Based on unmet needs –Infrastructure –Severe damage to businesses and housing Data of assistance provided as of December 2011 –Insurance – FEMA assistance –SBA disaster loans

Community Development Block Grant – Disaster Recovery (CDBG-DR) Statutory requirement –Funds must be targeted “Most impacted or distressed areas” Only counties with $10M or more in severe unmet housing and business needs were used to determine allocation Limited funding to states and counties –Highest level of severe unmet needs

Community Development Block Grant – Disaster Recovery (CDBG-DR) HUD’s methods for estimating unmet needs –Businesses –Infrastructure –Housing Data sources –FEMA Individual Assistance, housing unit damage –SBA, housing repair and replacement –SBA, business real estate repair, replacement, and content loss –FEMA, Public Assistance, permanent work, federal and state cost share (75%-25%)

Community Development Block Grant – Disaster Recovery (CDBG-DR) Severe Unmet Housing Needs –# of owner-occupied units FEMA-eligible for repair or replacement –Units with $15K to $28K (major-high) damage estimates –Units with >$28K (Severe) damage estimates –# of rental units assessed for personal property loss Located near major-high or severe owner-occupied dwellings –Tenants with income <$20K Capture loss of affordable rental housing Unmet needs estimate –FEMA grant amount and SBA loans subtracted from total estimated damage

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Infrastructure Needs –Data from FEMA Public Assistance damage estimates State’s match requirement, generally 25% –Focus on permanent long-term recovery measures Unmet Economic Revitalization Needs –Sum of real property and real content loss of small businesses, not receiving an SBA disaster loan –Adjusted upward by percentage of applications denied, insufficient income or poor credit Most likely in need of CDBG-DR funding –Real estate and content loss >$65K for estimated damage

Community Development Block Grant – Disaster Recovery (CDBG-DR) 80% of allocation must be targeted to areas of greatest need –Washington and Windsor counties State and Congressional Delegation are in discussion with HUD for greater flexibility –Expand into Windham county Currently must work with 80% targeting mandate

Community Development Block Grant – Disaster Recovery (CDBG-DR) State must develop an Action Plan to access funding –Submit to HUD within 90 days of Notice, July 23, 2012 –HUD issues approval within 45 days, September 6, 2012 Citizen Participation –Solicit public input for development of Action Plan –30-day comment period, May 29-June 29, 2012 –Public Hearings June 5 - Brattleboro June 7 – White River Junction June 12 - Montpelier

Community Development Block Grant – Disaster Recovery (CDBG-DR) 50% of allocation, $10,288,605 must be identified projects at initial submission of Action Plan to HUD Remaining 50%, must be identified projects –No later than January 22, 2013 First draw down of funds –Must be by October 22, 2012

Community Development Block Grant – Disaster Recovery (CDBG-DR) Action Plan considered a living document –Will be amended as new information and data is identified –Will be amended once additional specific projects are awarded Substantial Amendments –Change in Program benefit or eligibility –Allocation or re-allocation of $1 million –Deletion or addition of an activity

Community Development Block Grant – Disaster Recovery (CDBG-DR) CDBG-DR Regulations - Highlights 50% of funds must benefit low and moderate income –$10, 288, 685 – benefit 80% and below area median income (AMI) 50% of funds may assist activities under Urgent Need or prevention/elimination of slums and blight CD

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Buyouts of flood damaged properties in flood plain; Rehabilitation of homes and buildings damaged by the disaster; Relocating residents, local government facilities and businesses to safer areas;

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Repair and reconstruction of municipal infrastructure – roads, culverts, buildings; Homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees;

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Business financial assistance –Create or retain jobs –Interest rate buy downs –Rent subsidies –Lost rental revenue –Tourism and marketing efforts

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses-continued New housing production to replace lost units Public services, counseling Matching funds –Economic Development Authority grants (EDA) –Hazard Mitigation Grant Program (HMGP) Debris removal not covered by FEMA or other available resources;

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses-continued Debris removal not covered by FEMA, or other resources Disaster recovery planning; Grant administration and program delivery costs.

Community Development Block Grant – Disaster Recovery (CDBG-DR) Duplication of Benefit –Subrogation Agreement Must repay Federal Disaster Assistance –If other funds are received at a later date –Discovery of available funds at a later date Document, Document, Document!

Community Development Block Grant – Disaster Recovery (CDBG-DR) Buy out Requirements –Permanent Deed Restrictions Flood Insurance Requirements –Property located in 100 year flood plain or Special Flood Hazard Area (SFHA) – must maintain flood insurance –No additional future assistance to the property –Duty to Notify in event of transfer of property

Community Development Block Grant – Disaster Recovery (CDBG-DR) DRAFT Action Plan – Development Unmet Needs and Impact Assessment –Analysis of Data - Recovery efforts to date Housing Business community Agricultural community Tourism and Marketing Infrastructure - roads, culverts, buildings

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview Housing –$24.9M as of end of 2011 $8.9M renovation needs $1M damaged or destroyed mobile homes $5.8M buy outs $884K homebuyer assistance

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview Infrastructure - –$6.5M FEMA Public Assistance Match

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview Economic –$22.2M as of end of 2011 $5.4M Farm damage, 20K acres Over 300 businesses lost or damaged –Reconstruction needs –Marketing needs – buy local –Insurance negotiations

Community Development Block Grant – Disaster Recovery (CDBG-DR) Method of Distribution Total Allocation$21,660,211 –State Administration (5 yrs)$ 1,083,011 Grant Total$20,577,200 –Competitive Grants$ 8,750,000 –State Direct Grants$ 9,661,179 –Contingency (10%)$ 2,166,021

Community Development Block Grant – Disaster Recovery (CDBG-DR) Competitive Grants Economic Recovery $3,000,000 Businesses, Farms, Nonprofits Housing $1,750,000 Replacement Housing, Mobile Home Park Replacement, Mitigation Municipal Infrastructure $3,000,000 Projects not eligible for FEMA Public Assistance Planning $1,000,000 Project Feasibility and Development

Community Development Block Grant – Disaster Recovery (CDBG-DR) State Direct Grants Buy outs – Local Match and non-eligible $5,112,530 Hazard Mitigation Grant Program (HMGP) Housing Recovery Program $3,398,649 Rehabilitation, down payment assistance, Financial counseling Mobile Home Financing Program $ 500,000 Economic Recovery Tourism Recovery Marketing $ 250,000 Downtown Assistance $ 400,000

Community Development Block Grant – Disaster Recovery (CDBG-DR) Application Process Eligible Applicants –Municipalities –Non-profit Organizations –For-profit Organizations –Developers –State Agencies

Community Development Block Grant – Disaster Recovery (CDBG-DR) Applications submitted online –Intelligrants Management system Threshold Review –10% Match (cash, cash-in-kind, grant or loans) –Implementation grant, maximum request $1M –Planning grant, maximum request $100K

Community Development Block Grant – Disaster Recovery (CDBG-DR) Threshold Review – cont’d –Address Presidentially declared disaster –Eligible Activity per Federal Regisiter –Meets a National Objective 50% of allocation - Low/Moderate Income (LMI) 50% of allocation – Urgent Need

Community Development Block Grant – Disaster Recovery (CDBG-DR) Competitiveness Review –Need –Impact –Feasibility Consultation with other State agencies

Community Development Block Grant – Disaster Recovery (CDBG-DR) Scoring Review, page of Draft Action Plan –Need 50 pts –Impact25 pts –Feasibility25 pts

Community Development Block Grant – Disaster Recovery (CDBG-DR) CD Specialist summarizes for CD Board CD Board deliberates –Makes recommendation to Agency Secretary Secretary makes final award decision

Community Development Block Grant – Disaster Recovery (CDBG-DR) State will be accepting CDBG-DR applications –Early September, after HUD’s approval of Action Plan Applications will be submitted online –Intelligrants Management System Expectation of review and funding decision –Within 30 days

Hazard Mitigation Grant Program (HMGP) – Buy outs

Community Development Block Grant – Disaster Recovery (CDBG-DR) Compliance Overview Environmental Review –Caution – Historic Preservation/Archaeological issues –8 Step Flood Plain process Procurement –Competitive process, open and fair –Cannot be Debarred, Excluded Parties List

Community Development Block Grant – Disaster Recovery (CDBG-DR) Labor Standards –Davis Bacon wage rates Not applicable to owner-occupied, single family Not applicable to <8 units of multi-family Affirmatively Furthering Fair Housing Civil Rights and Fair Housing Act

Community Development Block Grant – Disaster Recovery (CDBG-DR) Public Hearing Commences Adjourn

Community Development Block Grant – Disaster Recovery (CDBG-DR) Staff Contact Information Jennifer Hollar, Deputy Josh Hanford, CD Director Ann Karlene Kroll, Grants Management Director