1. 2016 Applicants’ Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program Steed Robinson & Glenn Misner  December 2, 2015

2. Conference Overview  Part I – CDBG Boot Camp and Basic Application Development  Part II – Competitiveness and Advanced Topics

3. Conference Overview  Workshop Syllabus  Agenda – Presentation on MOD/Discussion Gaining a Competitive Advantage (QLG – Adriane Wood) RAS – Examples Session at 1:15 FHEO Update – Antonette Sewell TA session – Adriane Wood and Meg Richardson E-updates UNC Environmental Finance Center & Funding Partners Maps Davis Bacon Audit  CDFD Group Contacts  Survey

4. Our Mission  Discuss the fundamentals of CDBG as preparation for review of DCA forms 1 – 13 and Compliance Overview  Briefly discuss what’s new

5. Introduction to CDBG Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program

6. Introduction to CDBG  The primary objective of the HCDA is  development of viable communities by the provision of decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low- and moderate- income.

7. Eligible Applicants  Non-entitlement General Purpose Local Governments  Generally  Cities < 50,000  Counties < 200,000  There are exceptions!  See the Manual & DCA

8. Introduction to CDBG For any activity(ies) carried out by a grantee to considered eligible, two conditions must be met:  The activity (ies) must meet a National Objective &  The activity (ies) must be listed in law as eligible

9. Introduction to CDBG HCDA identifies three National Objectives  Low- to Moderate-Income (LMI) Benefit 70% requirement  Removal of Slum and Blight  Immediate Threat and Danger

10. LMI National Objective  Low- and moderate-income person means…  Those families at 80 percent or less of Area Median Income (AMI)

11. 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 housing, the law requires that overall benefit to LMI persons be at least 100%  Low/Mod Housing (LMH)

12. CDBG LMI 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.

13. LMA (cont.) Area of Non-benefit Area Boundary Water Improvement Area of Benefit & TA Population of at least 70% LMI Target Area Area of Benefit

14. LMA (cont.) Water Improvement Area of Benefit – 50% LMI Target Area Boundary TA Population of at least 70% LMI Target Area Area of Benefit

15. CDBG LMI 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

16. CDBG LMI 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

17. CDBG LMI Housing Benefit (LMH)  100% Benefit to LMI Households

18. CDBG LMI Jobs Benefit  For Economic Development Projects  51% of jobs must be held or made available to LMI persons

19. 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

20. Summary of National Objectives  LMI  LMA  LMC  LMH  LMJ  Slum and Blight  Immediate Threat & Danger

21. 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, clearance and demolition, loans to businesses for fixed assets, etc.  Also see 2016 Applicants’ Manual

22. 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 meet another National Objective.

23. 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

24. Resources  CDBG 2016 Applicants’ Manual  www.hud.gov www.hud.gov  http://portal.hud.gov/hudportal/HUD?src=/program_offices/ comm_planning/communitydevelopment/toolsandproducts http://portal.hud.gov/hudportal/HUD?src=/program_offices/ comm_planning/communitydevelopment/toolsandproducts  24 CFR 570.480 (State CDBG Regulations) at http://www.ecfr.gov/cgi-bin/ECFR?page=browse http://www.ecfr.gov/cgi-bin/ECFR?page=browse  https://www.hudexchange.info/ https://www.hudexchange.info/  Guide to National Objectives and Eligible Activities for State CDBG Programs https://www.hudexchange.info/resource/2179/guide- national-objectives-eligible-activities-state-cdbg-programs/ https://www.hudexchange.info/resource/2179/guide- national-objectives-eligible-activities-state-cdbg-programs/

25. 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.

26. Method of Distribution Award From HUD—FY 2015 Example  Total Award -- $ 36,517,619  Available for Annual Competition $25,322,090+  Employment Incentive Program $8,000,000  The Redevelopment Fund $1,500,000  Immediate Threat & Danger Program $500,000

27. Maximum Grant Amounts  Single-Activity$500,000  Multi-Activity$800,000

28. 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  Single Activity Neighborhood Revitalization applications are exempt from the match requirement

29. 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

30. 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?  Are applicable laws described, including Fair Housing laws?

31. Some Things to Think About  Strategy  Addressed possible alternatives for meeting needs?  Considered ongoing maintenance/prevention?  Have you considered local funding? What are your water and sewer rates?  Are you a Qualified Local Government?

32. 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?

33. Revised Strategy Criteria for 2016  Enhanced/Advanced Strategy has been replaced  Applicants should demonstrate how the proposed activities are a planned component of the applicant’s overall strategy to improve the target area/community  The proposed activities should be a component of the applicant’s plan for conservation, stabilization, and/or revitalization

34. Revised Strategy Criteria for 2016  In addition to demonstrating the need for the proposed activities, the applicant’s Strategy should include, for example, such information as:  Excerpts from the appropriate local planning document (e.g., Urban Redevelopment Plan, current comprehensive plan, etc.)  While required for multi-activity and neighborhood revitalization applications, all applicants should indicate the condition of the target area/community’s housing stock (number and percentage of standard, substandard and dilapidated housing units)

35. Revised Strategy Criteria for 2016  Strategies to obtain the required funding for long- term, needed improvements  Policy or ordinance changes needed to implement/maintain the proposed activities or project, and  For Multi-activity projects, note that applicants are expected to address 100% of the target area’s community development needs with CDBG and other funding sources or other resources.

36. Revised Strategy Criteria for 2016  What has been removed  “Most or all” language (except for Multi-Activity applications)  Measures and timeframes language  What stays the same  Convincing DCA that the investment we make is worthwhile for the long term

37. Changes/Reminders for 2016  Maps  Must use DCA’s online tool/concentration maps  If no concentrations, provide “scattered” map  Give us “how” and “why” target area was chosen, keeping concentration maps in mind  Revised “every other year” policy  PlanFirst  Georgia Initiative for Community Housing (GICH)

38. Changes/Reminders for 2016  Appendix R  Section 3 Policy  Language Access Plan  Solicitation Package USE SECTION 3 SOLICITATION PACKAGE FOR PROFFESSIONAL PROCUREMENT DURING APPLICATON PHASE  Updated Compliance Section of Manual  FHEO Section 3 Affirmatively Furthering Fair Housing Limited English Proficiency (when applicable) 504 – especially for Buildings and Public Hearing Locations (See DCA Building Checklist)

39. Changes/Reminders for 2016  Buildings/Limited Clientele Projects  Provide ownership, lease terms, program income, reversion clauses  Other Items  Provide source information on maps  Use new sample Public Hearing Notice  Discuss Davis Bacon  Timeliness requirements have not changed!

40. Changes/Reminders for 2016  Two new forms  Civil Rights Compliance Certification  System for Award Management (SAM) Certification Proof is better  Local Government (applicant) must include DUNS number, address of TA, and, on DCA 1

41. Sources of Ideas for Project Development  Local Comprehensive Plan  Citizen Complaints  Previous Engineering Studies  Professional Standards  City Staff/RC Staff/Consultant Staff  Other

42. 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 LMI persons or households  Lots of eligible activities/some activities are ineligible  Submit completed applications on time  Discuss project with DCA Staff

43. Deadlines CDBG Annual Competition April 1, 2016 RAS Applications, Annual Reports, Renewals April 1, 2016 (submit prior to April 1 if possible)

44. December 11-13, 2013