Vermont’s CDBG Disaster Recovery Program

Community Development Block Grant Disaster Recovery Program (CDBG-DR) Agency of Commerce and Community Development Department of Economic, Housing and Community Development August 20, 2012

Community Development Block Grant – Disaster Recovery (CDBG-DR) Agenda Overview – CDBG-DR Action Plan Overview Method of Distribution CDBG-DR Regulations - Highlights CDBG-DR Application – Intelligrants

Community Development Block Grant – Disaster Recovery (CDBG-DR) Agenda Review Process Threshold Criteria Scoring Criteria Clarifying Questions & Answers

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 Allocation based on unmet needs Federal Register pg. 22597, Appendix A. Allocation Methodology Assist communities with disaster recovery Restoration of infrastructure Housing Economic Development

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) 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) 80% of allocation must be targeted to areas of greatest need Washington and Windsor counties, and up to $4.5M in Windham counties Vermont was granted a waiver as of July 19, 2012 to include Windham in the 80% targeting

Community Development Block Grant – Disaster Recovery (CDBG-DR) Action Plan submitted to HUD as of July 20, 2012 HUD to issue approval within 45 days, September 6, 2012

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 (Competitive funds) 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) Method of Distribution Total Allocation $21,660,211 State Administration (5 yrs) $ 1,083,011 Grant Total $20,577,200 Competitive Grants $ 8,000,000 State Direct Grants $ 10,411,179 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 $2,250,000 Projects not eligible for FEMA Public Assistance Planning $1,000,000 Project Feasibility and Development

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 Repair of structure Repair or replace equipment Create or retain jobs Interest rate buy downs on private loans Rent subsidies Lost rental revenue

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses-continued New housing production to replace lost units Supported by a marketing study 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) State Direct Grants Buy outs – Local Match and non-eligible $5,862,530 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 Technical Assistance $ 400,000

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) 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, any property assisted Property located in 100 year flood plain or Special Flood Hazard Area (SFHA) – must maintain flood insurance No additional future assistance to the property Deed Restriction, Duty to Notify in event of transfer of property

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 Does not apply to private businesses 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 Equal Opportunity hiring

Community Development Block Grant – Disaster Recovery (CDBG-DR) QUARTERLY REPORTING!!!!!!!! Due to Agency by 15th of the month following quarter end date Quarter ends – September 30---Report due October 15 There will be no exceptions, we have to enter data and submit to HUD.

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 - Demonstration

Community Development Block Grant – Disaster Recovery (CDBG-DR) 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 DR#1995; DR#4001; DR#4022 Eligible Activity per Federal Register Meets a National Objective 50% of allocation - Low/Moderate Income (LMI) 50% of allocation – Urgent Need

Community Development Block Grant – Disaster Recovery (CDBG-DR) Threshold Review – cont’d Evidence of site control Flood damage affidavit Consent to release information

Community Development Block Grant – Disaster Recovery (CDBG-DR) Threshold Review – cont’d Municipal Applications ONLY Must notice and hold Public Hearing Housing Applications Market Study Economic Development Applications DUNS Number Business Analysis info, required on application form Public Service Applications ONLY New or increased service documentation

Community Development Block Grant – Disaster Recovery (CDBG-DR) Scoring Review Criteria Implementation and Planning Grants Need 50 pts Impact 25 pts Feasibility 25 pts May be consultation with other State agencies as to need and appropriateness

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

Community Development Block Grant – Disaster Recovery (CDBG-DR) Upcoming Trainings – Application Workshops Municipalities, Developers, Non-Profits, Businesses September 11, 2012 – Brandon Town Hall – 1-4pm September 12, 2012 – Williamsville Hall – 1-4pm September 20, 2012 - Waterbury St. Leo’s – 1-4pm

Community Development Block Grant – Disaster Recovery (CDBG-DR) Staff Contact Information Jennifer Hollar, Deputy Jennifer.Hollar@state.vt.us Josh Hanford, CD Director Josh.Hanford@state.vt.us Ann Karlene Kroll, Grants Management Director AnnKarlene.Kroll@state.vt.us http://accd.vermont.gov/strong_communities/opportunities/funding/cdbgdr