2013 CDBG Applicants’ Workshop Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program
Page CDBG Applicants’ Workshop Community Finance Division Review of Binder and CD Binder includes DCA Web Site will include December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Conference Overview Boot Camp and Basic Application Development Concurrent Sessions – Application Development December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Conference Overview Concurrent Sessions – Examples of Successful Applications (Guest Speakers) Presentations by Funding Partners (GEFA, USDA, and ED) One-on-One Technical Assistance/Resource Tables December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Conference Overview Revisions to Strategy Criterion Water & Sewer Rates Dashboards Local Ordinances/Code Enforcement Project Showcase Wrap Up December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Our Mission Discuss the fundamentals of CDBG as preparation for review of DCA forms 1 – 13 and Compliance Overview Why is this important? December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Introduction to CDBG Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Introduction to CDBG The primary objective of the HCDA is Further, HCDA identifies three National Objectives ▪LMI Benefit ▪Removal of Slum and Blight ▪Immediate Threat and Danger December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division LMI National Objective Low- and moderate-income person means… ▪Those families at 80 percent or less of Area Median Income (AMI) December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division LMI National Objective Overall benefit to LMI persons must 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) December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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. December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division LMA (cont.) December 12-14, 2012 Area of Non-benefit Area Boundary Water Improvement Area of Benefit & TA Population of at least 70% LMI Target Area Area of Benefit
Page CDBG Applicants’ Workshop Community Finance Division LMA (cont.) December 12-14, 2012 Water Improvement Area of Benefit – 50% LMI Target Area Boundary TA Population of at least 70% LMI Target Area Area of Benefit
Page CDBG Applicants’ Workshop Community Finance Division 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 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division CDBG L/M Clientele Benefit (LMC) HUD must presume 100% of the recipients of the service are LMI persons ▪abused children ▪battered spouses ▪elderly persons ▪severely disabled ▪homeless ▪Illiterate adults December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division CDBG L/M Housing Benefit (LMH) 100% Benefit to L/M Households December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division CDBG LMI Jobs Benefit For Economic Development Projects ▪51% of jobs must be held or made available to LMI persons December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Summary of National Objectives LMI ▪LMA ▪LMC ▪LMH ▪LMJ Slum and Blight Immediate Threat & Danger December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Eligible Applicants Non-entitlement Local Governments Generally ▪Cities < 50,000 ▪Counties < 200,000 ▪There are exceptions! ▪See the Manual & DCA December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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 2013 Applicants’ Manual December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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. December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Resources CDBG 2013 Applicants’ Manual ogram_offices/comm_planning/communityd evelopment/toolsandproductshttp://portal.hud.gov/hudportal/HUD?src=/pr ogram_offices/comm_planning/communityd evelopment/toolsandproducts 24 CFR (State CDBG Regulations) at bin/ECFR?page=browse bin/ECFR?page=browse Guide to National Objectives and Eligible Activities for State CDBG Programs (see 3 rd bullet above) December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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. December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Method of Distribution Award From HUD—FY 2012 Example Total Award -- $34,533,844 Available for Annual Competition $23,397,829+ Employment Incentive Program $8,000,000 The Redevelopment Fund $1,500,000 Immediate Threat & Danger Program $500,000 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Maximum Grant Amounts Single-Activity$500,000 Multi-Activity$800,000 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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? December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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? December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Some Things to Think About Strategy ▪Addressed possible alternatives for meeting needs? ▪Considered ongoing maintenance/prevention? ▪Have you considered local funding? ▪Are you a Qualified Local Government? December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Revised Strategy Criteria for 2013 Applications will be compared on their support for comprehensive neighborhood revitalization or target population needs Competitive applications will plan to address most or all target area or target population community and economic development needs using CDBG and locally driven approaches Documentation and results measures are important December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Other Changes for 2013 Demographic scoring method New environmental review requirements ▪Phase One for buildings ▪Native American consultation (DCA-9b) Timeliness requirements have not changed! December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Sources of Ideas for Project Development Local Comprehensive Plan Citizen Complaints Previous Engineering Studies Professional Standards City Staff/RC Staff/Consultant Staff Other December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division 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 Discuss project with DCA Staff December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division Deadlines CDBG Annual Competition April 1, 2013 RAS Applications, Annual Reports, Renewals April 1, 2013 December 12-14, 2012
Page CDBG Applicants’ Workshop Community Finance Division December 12-14, 2012