1. Vermont’s CDBG Disaster Recovery Program

2. 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

3. 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

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

5. 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

6. Community Development Block Grant – Disaster Recovery (CDBG-DR)
$21,660,211 CDBG-Disaster Recovery funding
Allocation based on unmet needs
Federal Register pg , Appendix A.
Allocation Methodology
Assist communities with disaster recovery
Restoration of infrastructure
Housing
Economic Development

7. 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%)

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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;

16. 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;

17. 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

18. 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;

19. 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.

20. 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 $ ,000
Downtown Technical Assistance $ ,000

21. 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

22. 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!

23. 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

24. 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

25. 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

26. 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.

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

28. Community Development Block Grant – Disaster Recovery (CDBG-DR)
Applications submitted online
Intelligrants Management system - Demonstration

29. 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

30. 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

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

32. 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

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

34. 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

35. 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

36. 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, Waterbury St. Leo’s – 1-4pm

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