HOPE VI Main Street

ContactLawrence Gnessin

Office of Public Housing Investments, WashingtonLawrence_Gnessin@hud.gov

Presented byShawn M. Sweet

Cleveland HUD Office of Public HousingShawn_Sweet@hud.gov

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Main Street Authorization

Part of SEC. 24. (of the U.S. Housing Act) HOPE VI Program Reauthorization and

Small Community Main Street Rejuvenation and Housing Act of 2003

Revised Continuing Appropriations Resolution, 2007

authorizes the construction, rehabilitation, reconfiguration of non-housing space to make affordable housing

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Purpose

To provide assistance to smaller communities for the purpose of facilitating the development of affordable housing for low-income families that is undertaken in connection with an existing main street rejuvenation or redevelopment project in such communities.

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Authority and Use of Grant Amounts

Grant amounts shall be used by smaller communities only to provide assistance to carry out eligible affordable housing activities in connection with an eligible affordable housing project.

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Application Eligibility and Process

Must be an official unit of local government Subdivision of a state, territory (Section 102 of

the Housing and Community Development Act of 1974).

With a population of 50,000 or fewer (Smaller community); and

Have 100 or fewer physical public housing units in its jurisdiction that are administered by a public housing agency for HUD.

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Application Eligibility and Process (cont’d)

Applications are funded each year via the Notice of Funding Availability (“NOFA”) process

Applications are submitted electronically. Visit HUD’s Grants page, which has links to documents that explain how to register and submit an application through Grants.gov, at http://www.hud.gov/grants/

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Eligible Project

HUD determines whether the project is an existing, eligible main street project using the Main Street Project criteria; is carried out within the jurisdiction of

smaller community receiving the grant; involves the development of affordable

housing that is located in the commercial area that is the subject of the project.

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Main Street Project Criteria

has as its purpose the revitalization or redevelopment of a historic or traditional commercial area;

involves investment or other participation by both the government of, and private entities in, that smaller community; and

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Main Street Project Criteria (cont’d)

complies with historic preservation guidelines set out in Section 106 of the National Historic Preservation Act and other preservation requirements as stated in the NOFA to preserve significant historic or traditional architectural and design features in the structures or area involved in the project.

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Maximum Grant Amount

$1,000,000

May Request Less

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Eligible Activities

New construction, reconfiguration, or rehabilitation of affordable rental and homeownership housing located within the Main Street area;

architectural and engineering work; tax credit syndication;

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Eligible Activities (cont’d)

providing moving expenses for residents displaced as a result of the revitalization of the project (per the Uniform Relocation and Real Properties Relocation Act of 1970 (URA);

management improvements necessary for proper development and management of the Main Street project;

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Eligible Activities (cont’d)

leveraging other resources from any source except other HOPE VI grants, for use in the Main Street rejuvenation effort, including cash and in-kind services such as private loans, infrastructure or construction work, equity from the sale of tax credits, etc.;

necessary supportive services, except that not more than 15 percent of the amount of any grant may be used for activities under this paragraph.

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Contribution (Match) Requirement

Grantee must supplement the aggregate amount of assistance provided under the Grant with an amount of funds from sources other than HOPE VI funds equal to (not less than) 5 percent of the requested grant amount; and

such match funds must be used ONLY for carrying out eligible affordable housing activities that relate to the Main Street affordable housing project.

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Match Requirement and Main Street Area

Leverage In calculating the amount of

supplemental funds provided by a grantee, the grantee may include amounts from other Federal sources, any State or local government sources;

any private contributions, the value of any donated material or building, the value of any lease on a building, the value of the time and services contributed by volunteers, and

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Match Requirement and Main Street Area

Leverage the value of any other in-kind

services provided.

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Cost Limits

There are cost limits on eligible activities to provide for effective revitalization programs

Cost limits apply to eligible affordable housing activities assisted with HOPE VI Main Street Grants

Refer to Notice of Funding Availability (“NOFA”), Funding Restrictions

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Reporting

HUD requires each local government that receives a grant to submit periodic reports and a final audit regarding the use of all amounts provided under the grant.

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Definitions (cont’d)

Affordable housing. The term `affordable housing' means rental or homeownership dwelling units that: are made available for INITIAL

occupancy to low-income families, with a subset of units made available to very- and extremely-low income families; and

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Definitions (cont’d)

While affordability use restrictions apply, residents are subject to the same rules regarding occupant contribution toward rent or purchase and terms of rental or purchase as are provided to occupants of public housing units in a HOPE VI (revitalization) development.

HOPE VI allows various rent setting formulas. Units developed, rehabilitated or reconfigured

through this NOFA are NOT and statutorily MUST NOT BE public housing units.

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Definitions (cont’d)

Smaller community means a unit of general local government (as such term is defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) that has a population of 50,000 or fewer; and Has 100 or less physical public housing

units within its jurisdiction.

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Definitions (cont’d)

Local government means any city, county/parish, town, township, parish, village, or other general purpose political subdivision of a state; Guam, Northern Mariana Islands, Virgin Islands, American Samoa, District of Columbia, and Trust Territory of the Pacific Islands, or a general purpose political subdivision thereof; or a combination of such political subdivisions that is recognized by the Secretary.

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Summary

The local government is the official applicant. So, any other organization or property owner has to team with the local govt.;

If the local govt. has 100 or more physical public housing units in its jurisdiction, it is not eligible to apply;

If the local govt. has a population of more than 50,000, it is not eligible to apply;

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Summary

Of the amount appropriated for the HOPE VI program, for any fiscal year, the Secretary shall provide up to 5 percent for use only for HOPE VI Main Street grants

To ensure that these thresholds are met, HUD measures/counts the amount of leverage that has/is/will come into the Main Street area. Examples of this can be seen in the 2007 NOFA.

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Summary

The maximum grant amount is limited to $1Million;

Grant funds must be used to create affordable housing through development, rehabilitation or reconfiguration; and

The new units must be affordable only for the first occupant. After that occupant moves out, there are no more HUD use restrictions on that unit.

Local government grantees have the option of extending the affordability period.

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Summary

The grant can only be given to a city that has an existing Main Street Rejuvenation effort going on, and

There must be both public and private sector support for the Main Street rejuvenation effort.

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Resources

Go to HUD’s Grants page, which has links to documents that explain how to register and submit an application through Grants.gov, at http://www.hud.gov/grants/

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Resources

Visit the HOPE VI Main Street page at: http://www.hud.gov/offices/pih/programs/ph/hope6/grants/mainstreet/index.cfm That web page will lead you to the

NOFA and other information about the HOPE VI Main Street requirements.