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

2011 CDBG Applicants’ Workshop

Workshop Overview&

Introduction to Georgia’s Community Development Block

Grant (CDBG) Program

Page 22011 CDBG Applicants’ Workshop December 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


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


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


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


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


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)


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


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


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


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)


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)


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.


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


Area of Non-benefit

LMA (cont.)

Area Boundary Water Improvement Area of Benefit

&TA Population of at least 70% LMI


Water ImprovementArea of Benefit – 50% LMI

LMA (cont.)

Target Area Boundary

TA Population of at least 70% LMI


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


CDBG L/M Housing Benefit (LMH)

• 100% Benefit to L/M Households


CDBG LMI Jobs Benefit

• For Economic Development Projects▪ 51% of jobs must be held or made available to

LMI persons


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


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.


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


Resources

• CDBG 2011 Applicants’ Manual

• www.hud.gov

• www.hud.gov/offices/cpd/communitydevelopment/programs/stateadmin/

• 24 CFR 570.480 (State CDBG Regulations) at http://ecfr.gpoaccess.gov/

• Guide to National Objectives and Eligible Activities for State CDBG Programs (see 3rd bullet above)


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.


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


Maximum Grant Amounts

• Single-Activity $500,000

• Multi-Activity $800,000


Method of Distribution – Rating & Selection

Demographic Need - absolute number in poverty 40

Demographic Need - percent of poverty person 40

Demographic Need - per capita income 40

Program Feasibility 110

Program Strategy 110

Project Impact 110

Leverage of Additional Resources 25

Bonus for Readiness to Proceed 5

Bonus points for RAS 20

Maximum Total Points 500


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


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


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


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


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


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?



• 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?



• 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?


Sources of Ideas for Project Development

• Local Comprehensive Plan

• Citizen Complaints

• Previous Engineering Studies

• Professional Standards

• City Staff/RDC Staff/Consultant Staff

• Other


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


Deadlines

CDBG Annual Competition

April 1, 2011

RAS Applications, Annual Reports, Renewals

April 1, 2011


Be sure and read the CDBG 2011 Applicants’ Manual

Be sure and request technical assistance!

Documents

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