2011 CDBG Applicants’ Workshop Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Review of Binder and CD Binder includes ▪Welcome/Agenda ▪Staff Contacts ▪CDBG Manual/Forms/Appendices ▪Revitalization Area Strategy (RAS) Manual CD Includes ▪CDBG Manual, Forms; RAS Manual; EIP & RDF Manuals ▪CDBG Rehab Manual

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Conference Overview- Part I Boot Camp and Basic Application Development Intro to CDBG Program—Includes Set-Asides Documentation Guide - Forms 1-13 Compliance/Historic Preservation Concurrent Sessions – Application Development ▪CDBG Public Facilities ▪Housing and Multi-Activity ▪Economic Development

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Conference Overview- Part II Competitiveness and New/Advanced Topics Concurrent Sessions – Examples of Successful Applications (Guest Speakers) ▪Public Facilities ▪Housing and Multi-Activity ▪Redevelopment Opportunities Advanced Topics ▪Rating and Selection ▪Readiness Bonus Points ▪Section 3/FHEO One-on-One Technical Assistance/Resource Tables

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Conference Overview-Last Day New Frontiers Revitalization Area Strategies/Opportunity Zones Review of Recent Changes to Application Development Process Timeliness Criteria News from DC Questions and Answers

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Our Mission in the Next 30 Minutes Discuss the fundamentals of CDBG as preparation for review of DCA forms 1 – 13 and Compliance Overview Why is this important? ▪In order to submit a competitive application ▪Adequately plan your CDBG project ▪Successfully carryout your CDBG project

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Introduction to CDBG Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program (See CDBG History in 2011 Applicants’ Manual)

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Introduction to CDBG The primary objective of the HCDA is ▪development of viable communities through the improvement of living conditions and the expansion of economic opportunities ▪principally for persons of low- and moderate- income. Further, HCDA identifies three National Objectives ▪LMI Benefit ▪Removal of Slum and Blight ▪Immediate Threat and Danger

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Eligible Applicants Non-entitlement Local Governments Generally ▪Cities with a population of less than 50,000 ▪Counties with a population of less than 200,000 ▪There are lots of exceptions!! ▪Review 2011 Manual for List of Ineligible Local Governments ▪Final List for 2011 Not Determined

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Typical CDBG Activities Water lines, sewer lines, lift stations, wells, pumps, drainage pipe, drainage structures, road paving, drainage inlets, buildings, equipment loans, elevated water storage tanks, homeowner and homebuyer activities, loans to businesses for fixed assets, etc. Also see 2011 Applicants’ Manual

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 LMI National Objective Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by HUD. Unrelated individuals will be considered as one- person families for this purpose. ▪That is, those families at 80 percent of less of Area Median Income (AMI)

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 LMI National Objective For CDBG, the law requires that overall benefit to L/M persons be at least 70% ▪Low/Mod Area Benefit (LMA) ▪Low/Mod Clientele (LMC) ▪Low/Mod Jobs (LMJ) (51% for jobs) For CDBG, the law requires that overall benefit to L/M persons be at least 100% ▪Low/Mod Housing (LMH)

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 CDBG L/M Area Benefit (LMA) For projects that will benefit a geographic area— target area or city-wide area— ▪each activity (e.g., water improvements) must benefit at least 70% LMI persons ▪and each geographic area chosen must contain a population of at least 70% LMI persons.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 LMA (cont.) The boundaries proposed (and therefore the area where income surveys must be done) must include the entire area of benefit from the proposed project

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Area of Non-benefit LMA (cont.) Area Boundary Water Improvement Area of Benefit & TA Population of at least 70% LMI

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Water Improvement Area of Benefit – 50% LMI LMA (cont.) Target Area Boundary TA Population of at least 70% LMI

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 CDBG L/M Clientele Benefit (LMC) CDBG provides a “place” for LMI persons to receive a benefit ▪e.g., health center, senior center, etc. 70% of recipients of benefit must be LMI income persons; or HUD must presume 100% of the recipients of the service are LMI persons ▪abused children ▪battered spouses ▪elderly persons ▪severely disabled ▪homeless ▪Illiterate adults

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 CDBG L/M Housing Benefit (LMH) 100% Benefit to L/M Households

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 CDBG LMI Jobs Benefit For Economic Development Projects ▪51% of jobs must be held or made available to LMI persons

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Other National Objectives Removal of Slum and Blight ▪DCA’s Redevelopment Fund Program generally addresses this National Objective Immediate Threat and Danger ▪DCA’s IT&D Program generally addresses this National Objective

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Basic Limitations Activities and projects are eligible for funding only to the extent: Local governments are applicants They are eligible according to law and regulation They primarily benefit low- and moderate- income persons or remove slum and blight.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 CDBG Ineligible Activities Acquisition of furnishings Acquisition of movable equipment, machinery Land write ‑ downs Operating and maintenance expenses Buildings for the conduct of general local government Direct grant assistance to a for-profit business Cost of furnishings and personal property Generally, construction of new housing

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Resources CDBG 2011 Applicants’ Manual pment/programs/stateadmin/ pment/programs/stateadmin/ 24 CFR (State CDBG Regulations) at Guide to National Objectives and Eligible Activities for State CDBG Programs (see 3 rd bullet above)

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Method of Distribution HCDA – 5304(a)(1) In the case of States receiving grants pursuant to section 5306(d) of this title, the statement of projected use of funds shall consist of the method by which the states will distribute funds to units of general local government.

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Method of Distribution Award From HUD—FY 2010 Example Total Award -- $43,644,802 Available for Annual Competition $32,235,457+ Employment Incentive Program $8,000,000 The Redevelopment Fund $1,500,000 Immediate Threat & Danger Program $500,000

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Maximum Grant Amounts Single-Activity$500,000 Multi-Activity$800,000

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Method of Distribution – Rating & Selection Demographic Need - absolute number in poverty40 Demographic Need - percent of poverty person40 Demographic Need - per capita income40 Program Feasibility110 Program Strategy110 Project Impact110 Leverage of Additional Resources25 Bonus for Readiness to Proceed5 Bonus points for RAS20 Maximum Total Points500

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Demographics Measure of need based on most recent census data Applicants do not submit any information For submitted applications, counties are compared with counties and cities with cities See CDBG 2011 Applicants’ Manual for details

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Basic Rating and Selection Approaches Panels score Feasibility, Strategy, Impact, assign Leverage amounts, and score Readiness Bonus Points Like applications are compared against like applications ▪Four review panels – Water & Sewer, Buildings/Street and Drainage, Housing, ED RAS Applications are scored by a separate panel

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Basic Rating and Selection Approaches Each application is read by two panel members and presented to the panel Scores are assigned and teams are checked for consistency Top rated applications receive a site visit and have their PERs/PARs reviewed by an independent engineer

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Leverage Resources committed to and directly related to the project over and above the required cash match Evaluated on a per capita basis ▪Total dollars approved by panels for Leverage is divided by jurisdiction population Like applications compared to like applications

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Cash Match 5% of amounts from $300,001 to $500,000 in CDBG funds 10% of amounts from $500,001 to $800,000 in CDBG funds

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Some Things to Think About Feasibility ▪Can the project be accomplished on time and within budget? ▪Are the funding sources available now? ▪Is the project ready to go? ▪Is the project “blueprint” specific enough that another knowledgeable person could carry it out?

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Some Things to Think About Strategy ▪What are the community development needs and have they been clearly defined? ▪What are the possible alternatives for addressing those needs, i.e., have you done any brainstorming? ▪Have you systematically evaluated the alternatives using cost as one criteria? ▪Is the alternative chosen eligible for funding? ▪Have you considered local funding? ▪Are you a Qualified Local Government?

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Some Things to Think About Impact ▪How much of the identified need will be eliminated? ▪How many people are benefiting? ▪Is the cost per person reasonable? ▪What is the extent of benefit to LMI income persons? ▪Is quality of life improved?

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Sources of Ideas for Project Development Local Comprehensive Plan Citizen Complaints Previous Engineering Studies Professional Standards City Staff/RDC Staff/Consultant Staff Other

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Let’s Recap CD is $ invested to improve the quality of life Proposed activities must be grouped together in a meaningful way Many sources for ideas for projects Address all strategy, impact and feasibility issues Projects must address the needs of L/M persons or households Lots of eligible activities/some activities are ineligible Submit completed applications on time

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Deadlines CDBG Annual Competition April 1, 2011 RAS Applications, Annual Reports, Renewals April 1, 2011

Page CDBG Applicants’ WorkshopDecember 6-8, 2010 Be sure and read the CDBG 2011 Applicants’ Manual Be sure and request technical assistance!