Workshop Overview

1
Workshop OverviewIntroduction to Georgias
Community Development Block Grant (CDBG) Program
2
Review of Binder and CD

• Binder includes
• Welcome/Agenda
• Staff Contacts
• CDBG Manual/Appendices
• Revitalization Area Strategy (RAS) Manual
• CD Includes
• CDBG Manual, Forms RAS Manual EIP RDF Manuals
• CDBG Rehab Manual

3
Conference Overview- Part I

• Boot Camp and Basic Application Development
• Intro to CDBG Program
• Documentation Guide - Forms 1-13
• Compliance/Historic Preservation
• Concurrent Sessions Application Development
• CDBG Public Facilities
• Housing and Multi-Activity
• Economic Development
• URPs/RAS

4
Conference Overview- Part II

• Competitiveness and New/Advanced Topics
• Concurrent Sessions Examples of Successful
  Applications
• Water and Sewer
• Buildings/Street and Drainage
• Housing and Multi-Activity
• Economic Development
• New/Advanced Topics
• Rating and Selection
• Survey Methods
• Section 3
• One-on-One Technical Assistance

5
Conference Overview-Last Day

• New Frontiers
• Summary of Changes for 2010
• News from Washington DC
• Next Stages for CHIP
• Listening Session

6
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

7
Introduction to CDBG

• Title 1 of the Housing and Community Development
  Act of 1974, as amended, created the CDBG
  program
• (See CDBG History in 2010 Applicants Manual)

8
Introduction to CDBG

• The primary objective of the HCDA is the
  development of viable communities through the
  improvement of living conditions and the
  expansion of economic opportunities in cities and
  counties, 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

9
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, etc.
• Also see 2010 Applicants Manual

10
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)

11
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)

12
CDBG L/M Area Benefit (LMA)

• For projects that will benefit a geographic
  areatarget area or city-wide or county-wide
  areaeach activity (e.g., water improvements)
  must benefit at least 70 L/M persons and each
  geographic area chosen must contain a population
  of at least 70 L/M persons.

13
LMA (cont.)

• As a practical matter, draw your area boundaries
  correctly and these issues will usually take care
  of themselves.
• The boundaries proposed (and therefore the area
  where income surveys must be done) must include
  the entire area of benefit.

14
LMA (cont.)
Area of Non-benefit
Area Boundary Water Improvement Area of
Benefit TA Population of at least 70 L/M
15
CDBG L/M Clientele Benefit (LMC)

• CDBG provides a place for L/M persons to
  receive a benefit
• e.g., health center, senior center, etc.
• 70 of recipients of benefit must be L/M income
  persons or
• HUD must assume 100 of the recipients of the
  service are L/M persons

16
CDBG L/M Housing Benefit (LMH)

• 100 Benefit to L/M Households

17
CDBG L/M Jobs Benefit

• For Economic Development Projects
• 51 of jobs must be held or made available to L/M
  persons

18
Other National Objectives

• Removal of Slum and Blight
• DCAs Redevelopment Fund Program generally
  addresses this National Objective
• Immediate Threat and Danger
• DCAs ITD Program generally addresses this
  National Objective
• National Objectives May Be Combined in the Annual
  Competition
• Consult with DCA

19
Basic Limitations

• Activities and projects are eligible for funding
  only to the extent
• Local governments are applicants (sub-recipients
  may implement)
• They are eligible according to law and regulation
• They primarily benefit low- and moderate-income
  persons or remove slum and blight.

20
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

21
Resources

• CDBG 2010 Applicants Manual
• www.hud.gov
• www.hud.gov/offices/cpd/communitydevelopment/progr
  ams/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)

22
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.

23
Method of Distribution

• Award From HUDFY 2009 Example
• Total Award -- 39,944,139
• Available for Annual Competition 28,643,597
• Employment Incentive Program 8,000,000
• The Redevelopment Fund 1,500,000
• Immediate Threat Danger Program 500,000

24
Maximum Grant Amounts

• Single-Activity 500,000
• Multi-Activity 800,000

25
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

26
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 2010 Applicants Manual for details

27
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

28
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

29
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

30
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

31
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?

32
Some Things to Think About

• 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?

33
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 L/M income
  persons?
• Is quality of life improved?

34
Sources of Ideas for Project Development

• Local Comprehensive Plan
• Citizen Complaints
• Previous Engineering Studies
• Professional Standards
• City Staff/RDC Staff/Consultant Staff
• Other

35
Lets Recap

• Projects must address the needs of L/M persons or
  households
• Lots of eligible activities/some activities are
  ineligible
• Submit completed applications on time

• 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

36
Deadlines

• CDBG Annual Competition
• April 1, 2010
• RAS Applications, Annual Reports, Renewals
• April 1, 2010

37

• Be sure and read the CDBG 2010 Applicants Manual
• Be sure and request technical assistance!