1. 2014 COMMUNITY DEVELOPMENT BLOCK GRANT ACS DATA AND INCOME SURVEY GUIDANCE November 29, 2015

2. Presentation will provide information on: HUD Transition Policy CDP Notice 14-10 dated June 10, 2014 American Community Survey (ACS) data Income Survey Methodology – HUD CPD Notice 05-06 dated July 26, 2005 and HUD CPD Notice 14-013 dated September 23, 2014 SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY INTRODUCTION 2

3. All questions must be submitted into the Q&A box on the screen. Due to the topic, all questions will be reviewed after the webinar and answered. The Q&A will be provided to all grantees no later than October 31, 2014. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY ASK A QUESTION 3

4. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY TRANSITION POLICY HUD issued CPD-Notice 14-10 which put an effective date on the use of the Low/Moderate Income Summary Data (LMISD) Must be used “to the fullest extent feasible” unless the grantee believes that the data are not current or do not provide enough information regarding income levels in the entire service area 4

5. LMISD data is derived from the American Community Survey (ACS) data Effective date for the LMISD – July 1, 2014 Affects area benefit activities SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY TRANSITION POLICY 5

6. Four Part Test 1.An award before the effective date – July 1, 2014 2.A specific activity has been identified and approved 3.A specific amount was approved … provided that the total amount awarded for that activity, prior to July 1, 2014, is not exceeded 4.A clearly defined service area 6

7. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY TRANSITION POLICY cont’d. Limited Exceptions and Clarifications 1.Pre-Award Costs – Must have DCED’s written approval – See Appendix A of the grant contract 2. Cost Overruns – Unexpected increases in costs – bids coming in over or under are expected as part of the process DCED is developing policy on future pre-award project cost and multi year funded projects. Keep in mind the 3 year activity expenditure deadline… 7

8. On July 2 nd, DCED sent out a CD&H alert, regarding the release of the ACS data. ACS data replaces the Census data. Any income survey completed prior to 2010 is no longer valid. DCED will review surveys conducted after January 1, 2010 to ensure compliance with survey methodology. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY AMERICAN COMMUNITIES SURVEY DATA 8

9. American Communities Survey 2006-2010 ACS uses a smaller sample size than previous Census surveys but combines 5 years worth of results - ACS = (1 in 10 households over the 5 year period; future will be 1 in 8) - Census = (1 in 6 households once every 10 years) DCED has provided the results by municipality as well as by census tracts and block groups Identify the ACS data that is shared by multiple municipalities at the CT / BG level… ex: - Cannot use if the defined service area is not multi-municipal SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY 9 AMERICAN COMMUNITIES SURVEY DATA

10. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY EXAMPLE – Butler County 10 420199101002Block Group 2, Census Tract 9101, Butler County, PennsylvaniaPABruin boroughButler County420199101002235375730142026.41% 420199101002Block Group 2, Census Tract 9101, Butler County, PennsylvaniaPAFairview townshipButler County420199101002235375730142026.41% 420199101002Block Group 2, Census Tract 9101, Butler County, PennsylvaniaPAParker townshipButler County420199101002235375730142026.41% 420199101002Block Group 2, Census Tract 9101, Butler County, PennsylvaniaPAPetrolia boroughButler County420199101002235375730142026.41% Petrolia borough, Butler County, PennsylvaniaPA42 01959672 55 105 120 17061.76%

11. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY 11 Petrolia Borough Fairview Township Fairview Borough Karns City Borough Census Tract 9101

12. What are split block groups – Previously HUD was able to associate a portion of a BG with one grantee and another portion of the BG to another grantee – the split block group layer is not available – the same data is reported for several municipalities SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY SPLIT BLOCK GROUPS – no longer available 12

13. Income surveys are a vital part of the CDBG program. Surveys support a critical element of the program – National Objective justification for LMA benefit Sometimes referred to as fundability 24 CFR 570.208(a)(1)(vi) [ Entitlement Regs. ] and 24 CFR 570.483(b)(1)(i) [ State Regs. ] SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY INCOME SURVEYS 13

14. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY INCOME SURVEY METHODOLOGY Define service area Identify number of families in the universe How you identify is critical – understand the definition of family for undertaking surveys for an area wide benefit – account for households that do not have landlines- – account for rental properties – account for limited English proficiency families – multiple families in one unit (rental housing stock) – Temporary / seasonal homes- ( CPD Notice 05-06 pages 11-12) Incidental benefit from the proposed project /activity 14

15. It is important to understand who is being targeted for income surveys. The next few slides will provide information on family vs. households, and how to calculate the response rate for the income survey, to ensure it is statistically reliable. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY INCOME SURVEY METHODOLOGY 15

16. When conducting an income survey, which group is being measured? a)Families b)Households c)Both d)Neither SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY FAMILY versus HOUSEHOLD INCOME 16

17. When conducting an income survey, which group is being measured? a)Families SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY FAMILY versus HOUSEHOLD INCOME 17

18. Definitions Family—All persons living in the same household who are related by birth, marriage, or adoption. Household—All persons who occupy a housing unit. There may be multiple families in a household (unit) SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY FAMILY versus HOUSEHOLD INCOME 18

19. Why do grantees need to do this? To ensure the area being surveyed is well-represented and the results are statistically reliable. The next few slides will walk you through how to calculate the needed response rate. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY CALCULATING RESPONSE RATE 19

20. If a service area has 100 families or less, than a 100% response rate is needed to make the survey statistically reliable. This method is also known as a “census” survey. See pages 10-11 of the CDP Notice 05-06 51% of the total universe must be LMI not 51% of the responses received SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY 20 SERVICE AREA—100 FAMILIES OR LESS

21. For those surveys that are randomly selected, please follow these instructions: 1.Log onto Sample Size CalculatorSample Size Calculator 2.Select 95% as the Confidence Level 3.Input 5 as the Confidence Interval 4.Input the # of families in the service 5.Select “Calculate” The number provided is the sample size for the survey. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY CALCULATING RESPONSE RATE 21

22. After determining the sample size, you need to determine the # of surveys to be distributed (Over sample to account for non-responses and vacancies) Sample Size ÷.80 = # of Income Surveys Distributed CALCULATING RESPONSE RATE 22

23. Step by Step for Service Area with 400 Families: 1.Log onto Sample Size CalculatorSample Size Calculator 2.Sample size is 196 3.196 ÷.80 = 245 4.245 income surveys will be distributed; Required responses needed is 196 income surveys returned (Validate each response) CALCULATING RESPONSE RATE 23

24. How many responses (out of the 100 persons) need to be LMI? a) 41 b)50 c)51 d)75 SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY CALCULATING LMI Benefit 24

25. c)51 persons If you achieve less than 100% response, the results must be 51% LMI of the overall population, not just 51% of the responses. Refer to example on pages 10 and 11 of the CDP Notice 05-06 SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY CALCULATING LMI Benefit 25

26. Question: What happens if the difference between the income survey and the ACS data is greater than 5%? Answer: The grantee is required to provide documentation of known demographic changes that may have impacted the ACS results prior to undertaking the survey and receive DCED’s approval before moving forward. EXAMPLE: Job losses, natural disasters or other demographics to support possible significant changes in data. After 2010… SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY ACS DATA SUPPPORTS LMI of LESS THAN 46% 26

27. Grantees are responsible to follow the HUD survey methodology. Any methodology that deviates from the HUD methodology must be approved by DCED prior to conducting surveys. Grantees must provide the following documentation when submitting an income survey to DCED. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY GRANTEE RESPONSIBILITIES 27

28. Policies must include: Training procedures Calculation methods How do you account for non-respondents? How are seasonal residences measured? Interviewing procedures Need to ensure interviewers do not bias the results Interviewers – Selection of who conducts the survey is critical to avoid any bias into the survey results. Interviewers should be neutral and have no vested interest in the project. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY CONDUCTING A SURVEY 28

29. All grantees must submit the following documentation with an income survey: Income Survey Coversheet K-2 Form Survey Results Distribution Worksheet SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY Income Survey Documentation 29

30. 1.Can ACS data be combined with an income survey? For example, if a county is conducting a survey and one municipality is 51% by ACS but the remaining 7 communities are not, can the ACS data be combined with the survey of the remaining communities? If so, what are the parameters? 2. Transition policy allows for a community to use BG data for a smaller portion of the population in the BG if the population is representative of the entire BG population. Is that a correct read on the transition policy? See pages 5-6 of the transition policy. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY UNANSWERED QUESTIONS 30

31. 3.Bid was awarded by a unit of local government for a costs higher than the approved amount by DCED but it occurred prior to the effective date of the transition policy, is it OK to add additional funds to this project now although the ACS LMISD does not qualify the area. 4.College Students SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY UNANSWERED QUESTIONS 31

32. Please visit the Federal Resource Library for additional informationFederal Resource Library Thank you for your participation. SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY ADDITIONAL RESOURCES 32