CDBG Overview

History of CDBG  Created in 1974-as part of the Housing & Community Development Act  Consolidation of seven different community development programs Model CitiesOpen Space Urban RenewalWater & Sewer Parks & RecreationNeighborhood Loans Public Facilities Loans

Methods of CDBG Funding  Two Forms of CDBG funding: Entitlement-Must have population of 50,000 Small Cities-Funds awarded to the State and then sub-awarded to local governments

National Objectives  At least one must be met: Benefit to Low-to-Moderate (LMI) Income persons ○ Persons must be 80% or below Area Median Income ○ Presumed benefit Prevention/Elimination of Slum & Blight ○ Specific Process for documentation Urgent Community Need ○ Must be tied to Presidential Declared Disaster

Benefit to LMI Persons  Area Benefit  Limited Clientele Presumed Benefit Require Income Verification Income Limits  Housing  LMI Jobs

Current Income Guidelines Family SizeMax. Income Limit 1$32,150 2$36,750 3$41,350 4$45,900 5$49,600 6$53,250 7$56,950 8 or more$60,600 Effective 5/12/11 based on 80% of Area Median Income

Presumed Benefit  HUD determined that the following classifications have a presumed benefit: Abused ChildrenPersons with AIDS Battered SpousesMigrant Farm Workers Severely Disabled AdultsHomeless Persons Illiterate AdultsElderly (62 and up)

REQUIRED ALL PROJECTS MUST DEMONSTRATE MEETING ONE OF THE NATIONAL OBJECTIVES

Applicant Eligibility  Non-Profit  For-Profit  Governmental Entity

Eligible Activities  Acquisition of Property Specific Guidelines to follow  Public Facilities and Improvements Examples include: streets, sidewalks, water, sewer, drainage, community center and parks  Public Service Subject to 15% cap  Removal of Architectural Barriers

Eligible Activities cont.  Housing Rehabilitation  Homeownership Assistance  Economic Development  Planning/Administration

Ineligible Activities  Buildings used for General Government  Political Activities  Replacement of General Fund Dollars  Purchase of Equipment and Personal Property  Operating and Maintenance Costs  Income Payments

Performance Measures Outcome #1 Availability/ Accessibility Outcome #2 Affordability Outcome #3 Sustainability Objective #1 Suitable Living Environment Accessibility for the purpose of creating Suitable Living Environments Affordability for the purpose of creating Suitable Living Environments Sustainability for the purpose of creating Suitable Living Environments Objective #2 Decent Housing Accessibility for the purpose of providing Decent Housing Affordability for the purpose of providing Decent Housing Sustainabilty for the purpose of providing Decent Housing Objective #3 Economic Opportunity Accessibility for the purpose of providing Economic Opportunities Affordability for the purpose of providing Economic Opportunities Sustainability for the purpose of providing Economic Opportunities

Environmental Review  All projects must undergo Environmental Review  Four Categories Exempt Categorically Excluded Not Subject to 58.5 Categorically Excluded Subject to 58.5 Environmental Assessment  Must be Completed before Project Begins

Other Regulatory Issues  Davis Bacon Wages  Lead Based Paint  Open Procurement Methods  Relocation

Lead Based Paint  Properties built after January 1978 are exempt  Affects: Acquisition Rehabilitation

Lead Based Paint (cont.)  Strategies for Purchase Purchase properties built after 1978 Have owner test and correct older properties for lead as contingency  Strategies for Rehab of pre-1978 Complete work write-up for rehab Hire Risk Assessor to Test If lead present- Risk Assessor assist with removal of lead Complete Rehab

Funding Process  City completes and approves a 5-year Consolidated Plan Plan lays out Priorities and goals  City solicits, reviews, & awards agency applications Competitive Process Staff Technical Review & Citizen Review  City Prepares Annual Action Plan Details what activities will take place  City approves Sub-Recipient Agreements  Agency begins activity  After activity is completed City will monitor Agency program files

Agreement  Legally Binding Agreement between City and Awarded Agency  Agreement Outline: What Activity will take place? How much it will cost? How long it will take? Who is responsible?  HUD Regulations

Timeline  Initial Public Hearing- January 2013  Applications Available- January 2013  Applications Due- February 2013  Committee Review- March 2013  Public Hearing- April 2013  Approval of Annual Action Plan- May 2013  Agreements Approved- July 2013

Available Funds  The City of Bowling Greens expects to receive approximately for FY 14: $496,000 This amount is subject to change.

Application Review  Please read the entire application carefully  Be sure all Certifications are signed & all attachments are included  Submit Original and 6 Copies One copy of Attachments  Each Agency must have a DUNS Number  Minimum Request is $10,000  Applications must be received on-time

Common Application Problems  Board Resolution does not state specific project  Incorrect Program Budget Percentage  Used Previously funded application and did not update information  Typos, missing pages  Lack of detail in Timeline  Description of Organization instead of Project/Program

Staff Review  Staff will conduct a technical assessment before the Citizen Review  Review will focus on: Eligibility Application Completeness Timeliness & Technical Issues

Citizen Review Committee  Open Public Meeting with Scheduled Review Times for each Eligible Application  Total of 100 pts. available  Citizen Review will focus on the following: Effectiveness-20 pts.- New Service-15 pts. Efficiency-20 pts.(New Recipients Only) Leveraging-25 pts.- Past Performance-15 pts. Capacity-20 pts.(Previous Recipients Only)

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