Draft ACTION PLAN Community Development Grant Program Disaster Recovery (CDBG-DR)

Draft ACTION PLANDraft ACTION PLAN

Community Development Grant Program Community Development Grant Program Disaster Recovery (CDBG-DR)Disaster Recovery (CDBG-DR)

Agency of Commerce and Community Development

Department of Economic, Housing and Community Development

June 5, June 7, and June 12, 2012

Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)

PUBLIC HEARING AGENDA• Overview

• CDBG-DR Regulations - Highlights

• Proposed Timeline

• Presentation of Draft Action Plan

• Clarifying Questions & Answers

• Public Input


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


$21,660,211 CDBG-Disaster Recovery funding

Assist communities with disaster recovery– Restoration of infrastructure– Housing– Economic Development


Allocation based on unmet needs– Federal Register pg. 22597, Appendix A.

• Allocation Methodology

Based on unmet needs– Infrastructure– Severe damage to businesses and housing

Data of assistance provided as of December 2011– Insurance– FEMA assistance– SBA disaster loans


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


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%)


Severe Unmet Housing Needs– # of owner-occupied units FEMA-eligible for repair or

replacement– Units with $15K to $28K (major-high) damage estimates– Units with >$28K (Severe) damage estimates

– # of rental units assessed for personal property loss• Located near major-high or severe owner-occupied dwellings

– Tenants with income <$20K• Capture loss of affordable rental housing

Unmet needs estimate– FEMA grant amount and SBA loans subtracted from total

estimated damage


Unmet Infrastructure Needs– Data from FEMA Public Assistance damage estimates

• State’s match requirement, generally 25%– Focus on permanent long-term recovery measures

Unmet Economic Revitalization Needs– Sum of real property and real content loss of small businesses,

not receiving an SBA disaster loan– Adjusted upward by percentage of applications denied,

insufficient income or poor credit• Most likely in need of CDBG-DR funding

– Real estate and content loss >$65K for estimated damage


80% of allocation must be targeted to areas of greatest need

– Washington and Windsor counties

State and Congressional Delegation are in discussion with HUD for greater flexibility

– Expand into Windham county

Currently must work with 80% targeting mandate


State must develop an Action Plan to access funding– Submit to HUD within 90 days of Notice, July 23, 2012

– HUD issues approval within 45 days, September 6, 2012

Citizen Participation– Solicit public input for development of Action Plan

– 30-day comment period, May 29-June 29, 2012

– Public Hearings• June 5 - Brattleboro

• June 7 – White River Junction

• June 12 - Montpelier


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


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

Substantial Amendments– Change in Program benefit or eligibility

– Allocation or re-allocation of $1 million

– Deletion or addition of an activity


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


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;


Eligible Uses

Repair and reconstruction of municipal infrastructure – roads, culverts, buildings;

Homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees;


Eligible Uses

Business financial assistance– Create or retain jobs

– Interest rate buy downs

– Rent subsidies

– Lost rental revenue

– Tourism and marketing efforts


Eligible Uses-continued New housing production to replace lost units

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;


Eligible Uses-continued Debris removal not covered by FEMA, or other

resources

Disaster recovery planning;

Grant administration and program delivery costs.


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!


Buy out Requirements– Permanent Deed Restrictions

Flood Insurance Requirements– Property located in 100 year flood plain or Special Flood

Hazard Area (SFHA) – must maintain flood insurance

– No additional future assistance to the property

– Duty to Notify in event of transfer of property


DRAFT Action Plan – Development Unmet Needs and Impact Assessment– Analysis of Data - Recovery efforts to date

• Housing • Business community• Agricultural community• Tourism and Marketing• Infrastructure - roads, culverts, buildings


Unmet Needs - Overview Housing– $24.9M as of end of 2011• $8.9M renovation needs

• $1M damaged or destroyed mobile homes

• $5.8M buy outs

• $884K homebuyer assistance


Unmet Needs - Overview

Infrastructure -– $6.5M FEMA Public Assistance Match


Unmet Needs - Overview Economic– $22.2M as of end of 2011• $5.4M Farm damage, 20K acres

• Over 300 businesses lost or damaged– Reconstruction needs

– Marketing needs – buy local

– Insurance negotiations


Method of Distribution

Total Allocation $21,660,211– State Administration (5 yrs) $ 1,083,011

Grant Total $20,577,200– Competitive Grants $ 8,750,000– State Direct Grants $ 9,661,179– Contingency (10%) $ 2,166,021


Competitive Grants Economic Recovery $3,000,000

• Businesses, Farms, Nonprofits

Housing $1,750,000• Replacement Housing, Mobile Home

• Park Replacement, Mitigation

Municipal Infrastructure $3,000,000• Projects not eligible for FEMA

• Public Assistance

Planning $1,000,000• Project Feasibility and Development


State Direct Grants Buy outs – Local Match and non-eligible $5,112,530

• 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 $ 250,000• Downtown Assistance $ 400,000


Application Process

Eligible Applicants– Municipalities

– Non-profit Organizations

– For-profit Organizations

– Developers

– State Agencies


Applications submitted online– Intelligrants Management system

Threshold Review– 10% Match (cash, cash-in-kind, grant or loans)– Implementation grant, maximum request $1M– Planning grant, maximum request $100K


Threshold Review – cont’d– Address Presidentially declared disaster– Eligible Activity per Federal Regisiter– Meets a National Objective

• 50% of allocation - Low/Moderate Income (LMI)• 50% of allocation – Urgent Need


Competitiveness Review– Need– Impact– Feasibility

Consultation with other State agencies


Scoring Review, page 23-24 of Draft Action Plan

– Need 50 pts

– Impact 25 pts

– Feasibility 25 pts


CD Specialist summarizes for CD Board

CD Board deliberates– Makes recommendation to Agency Secretary

Secretary makes final award decision


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

Hazard Mitigation Grant Program (HMGP) – Buy outs


Compliance Overview

Environmental Review– Caution – Historic Preservation/Archaeological

issues

– 8 Step Flood Plain process

Procurement– Competitive process, open and fair

– Cannot be Debarred, Excluded Parties List


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


Public Hearing Commences

Adjourn

E-mail [email protected]

http://accd.vermont.gov/strong_communities/opportunities/funding/cdbgdr


Staff Contact Information

Jennifer Hollar, Deputy

[email protected]

Josh Hanford, CD Director

[email protected]

Ann Karlene Kroll, Grants Management [email protected]

Documents

Draft ACTION PLAN Community Development Grant Program Disaster Recovery (CDBG-DR)