Community Development Block Grant CDBG 201 Training Program Day 3

1. Community Development Block Grant CDBG 201 Training Program Day 3 Building Better Communities One Project at a Time

2. Day Three Agenda 8:30 Registration 9:00 Environmental Review Continued 9:20 Exercise #1 – Prepare an Environmental Review Packet 10:00 Break 10:15 Permits 10:30 Site Control 11:15 Exercise #2 – Site Control 12:00 Lunch 1:00 Step 4: Conduct 1st Public Hearing 1:10 Step 5: Submit Construction Grant Proposal to OCRA 1:15 Exercise #3 – Review Proposal / Grant Application Instructions 1:45 Step 6: Conduct OCRA Site Visit 2:00 Step 7: Finalize FEEPS Activities 2:05 Step 8: Conduct 2nd Public Hearing 2:10 Step 9: Complete/Submit Construction Grant 2:15 Break 2:30 Exercise #4 – Complete CDBG Construction Grant Application 3:15 Review of CDBG 201 4:00 Class Dismissal

3. Environmental Review Continued

4. Environmental Review Overview • 3 Basic Steps Must Be Followed to Complete the Review • Project Aggregation • Determine Level of Review • Documentation

5. Determine the Level of Review Required • Each level of the Environmental Review is defined by HUD under 24 CFR Part 58. • Four (4) Main Environmental Classifications • Exempt Activities • Categorically Excluded NOT Subject TO Activities (CENST) • Categorically Excluded SUBJECT TO Activities (CEST) • Environmental Assessment Activities (EA)

6. Determine the Level of Review Required In addition to the four (4) main classifications, another environmental classification is the Environmental Impact Statement (EIS). The EIS comprehensive review is for those projects that are larger in scope and will have a significant environmental impact.

7. Determine the Level of Review Required Identify ALL Project Elements Determine Level of Review

8. Determine the Level of Review Required Exempt Activities Categorically Excluded NOT Subject TO Activities (CENST) Categorically Excluded SUBJECT TO Activities (CEST) Environmental Assessment Activities (EA)

9. Determine the Level of Review Required Known Wetland In Wooded Area

10. Determine the Level of Review Required Undisturbed Land

11. Environmental Review Packet Grant Writer / Administrator Involvement • The following items need to be included in the environmental review packet: • Grantee Name • Proposed Project Financing • Detailed Project Description (Narrative) • Aerial Photograph of Project Area • USGS Map • Wetland Map • Soils Map • Floodplain Map • Historical Site Map • Photographs of Project Area Surroundings

12. Environmental Agency Contacts Grant Writer / Administrator Involvement • The following environmental agencies need to be contacted: • DNR Historic Preservation • DNR Outdoor Recreation • US Fish & Wildlife • IDEM • USDA Soil Conservation • US Geological Survey • State Board of Health • US EPA (exceptions) • Local Planning • Local Health Department • Tribal Consultation

13. Exercise #1 Prepare An Environmental Review Packet

14. Permits

15. Step 3: Initiate FEEPS Activities - Permits • What Construction Permits Will We Need for This Project? • What Are the Agency Contacts? • What Is the Timeframe for Obtaining Permits? • Can Engineer Certify that All Permits Can Be Obtained Within 6 - 8 Months of Grant Award? • ASK THE ENGINEER

16. Site Control

17. Site Control All activities affiliated with acquiring the property/easement you need for your project are set forth by the Federal Uniform Relocation and Real Property Act (URA) of 1970, as amended. The URA applies to all federally assisted activities that involve the acquisition of real property, easements, or the displacement of persons, including displacement caused by rehabilitation and demolition activities. If CDBG assistance is used in any part of a project, the URA governs the acquisition of real property and any resulting displacement, even if local funds were used to pay the acquisition costs.

18. Site Control Overview • The Objectives of the URA are: • To ensure that owners of real propertyto be acquired for Community Development Block Grant (CDBG)-assisted projects are treated fairly and consistently • To encourage and expedite acquisition by agreements with property owners • To minimize litigation • To ensure that persons displaced from their homes or places of business as a result of CDBG-assisted activities are treated consistently and equitably and do not suffer disproportionate injury as the result of a project designed for the benefit of the public as a whole

19. Site Control Overview • Four (4) Main Site Control Situations • Real Property Acquisition/Easement Compensation • Willing Buyer/Seller Transaction • Property Donation • Relocation* • *If your project involves relocation, you will need to work directly with OCRA’s grant management personnel throughout the entire process.

20. Step 3: Initiate FEEPS Activities – Site Control • Do we need to acquire any property? • Is it already for sale? • Who is the owner? • Are they willing to sell? • Can we get it under option prior to the grant submittal date?

21. Step 3: Initiate FEEPS Activities – Site Control Attorney, Engineer, & Grant Administrator Involvement Step 1:Determine What Properties Will Need to Be Acquired Step 2:Determine Ownership of the Properties to Be Acquired Step 3:Establish A File for Each Property or Easement to Be Acquired Step 4:Notify Property Owner of Grantee’s Interest in Acquiring the Property/Easement Step 5: Determine the Value of the Needed Property via Market Estimateor Appraisal Step 6: Establish and Offer Just Compensation Step 7: Complete the Acquisition Project via a Purchase Option or Easement Agreement

22. Step 3: Initiate FEEPS Activities – Site Control Site to Be Acquired Don’t Assume All Water Lines to Be Replaced Are Located in Existing Right-of-Ways

23. Real Property Acquisition / Easement Compensation This method is utilized when the implementation of the project will result in the need to acquire a parcel of property and /or a utility easement. Step 1:Determine What Properties Will Need to Be Acquired Step 2:Determine Ownership of the Properties to Be Acquired Step 3:Establish A File for Each Property or Easement to Be Acquired Step 4:Notify Property Owner of Grantee’s Interest in Acquiring the Property/Easement Step 5: Determine the Value of the Needed Property via Market Estimateor Appraisal Step 6: Establish and Offer Just Compensation Step 7: Complete the Acquisition Project via a Purchase Option or Easement Agreement

24. Real Property Acquisition / Easement Compensation Step 1: Determine What Properties Will Need to Be Acquired The Grantee, with its Engineer and Attorney, should review every proposed activity to determine property acquisition needs andidentify the particular properties to be obtained. Activities such as street widening, water and sewer improvements, or sidewalk construction do not have an obvious property acquisition requirement, but there is often a need to acquire easements or rights-of-way.

25. Real Property Acquisition / Easement Compensation Step 2: Determine Ownership of the Properties to be Acquired • Can be accomplished through a 50 year title search • If the owner has acquired the property through a means other than a warranty deed, then the Grantee must either: • Obtain an attorney title opinion letter, or • Purchase title insurance through a title surety company • Permanent easement ownership may be determined by a search of records and accompanying attorney opinion letter stating the owner of record • In the case of public improvement activities, be sure to verify that the property to be improved is in the public domain. • Sometimes rights-of-way are privately owned. NEVER ASSUME YOU KNOW!!! YOU WILL NEED THE ENGINEER’S AND ATTORNEY’S HELP TO DETERMINE OWNERSHIP!!!

26. Real Property Acquisition / Easement Compensation Step 3: Establish A File for Each Property or Easement to Be Acquired ACQUISITION FILE CHECKLIST – Acquisition Form 1 Grantee: Property Owner: Title Search Completed: Questionnaire Completed: Brochure Delivered (Certified Mail Return Receipt): Invitation to Appraisal (if applicable) (Certified Mail Return Receipts): Appraised Value/Market Value:   Appraiser’s Name & License #:   Review Appraisal Completed: Review Appraiser’s Name & License #: Signed Easement Agreement: Easement Recorded:   Option Amount & Date:   Waiver Signed (if applicable):   Proof of payment (if applicable):   Comments:

27. Real Property Acquisition / Easement Compensation Step 4: Notify Property Owner of Grantee’s Interest in Acquiring the Property/Easement As soon as feasible, the Grantee shall notify the owner in writing of the Grantee’s interest in acquiring the real property or easement and the basic protections provided to the owner by law. • The Packet Should Include: • Initial Letter of Interest: Utilize Acquisition Form 3 as Example • Exhibit of Parcel / Easement to Be Acquired: Have Engineer Prepare For You • Copy of URA Brochure Notifying Owner of their Rights: Acquisition Form 4 This will need to be sent Certified Mail with Return Receipt or Hand Delivered* *Utilize - Form 4a if Hand Delivery

28. Real Property Acquisition / Easement Compensation Step 5: Determine the Value of the Needed Property via Market Estimate or Appraisal • If the estimate of property value is below $10,000: • A Market Estimate needs to be obtained • Must be in writing • Provided by a licensed real estate broker or appraiser • If the estimate of property value is above $10,000: • The Grantee must have an Appraisal and a Review Appraisal • Completed by individuals properly licensed by the Indiana Professional Licensing Agency Property Owner Must be Invited to Attend the Appraisal and Review Appraisal in Writing with Certified Mail Receipt and / or Hand Delivered Invitation

29. Real Property Acquisition / Easement Compensation Step 6: Establish and Offer Just Compensation • The Review Appraisal evaluates the adequacy and soundness of the appraiser’s supporting data and opinion of fair market value • The Reviewersets forth in writing a recommendation as to the fair market value of the property • For properties over $10,000 in value, the Review Appraisal is the basis of the offer • The Grantee’s Attorney makes an offer to the property owner in writing. • The packet presented to the property owner should include: • Letter of Offer – Utilize Letter of Purchase Offer Form 6 • Exhibit Clearly Specifying What is To Be Acquired • Copy of the Appraisal and Review Appraisal

30. Real Property Acquisition / Easement Compensation Step 7: Complete the Acquisition Project via a Purchase Option or Easement Agreement • The owner shall be given a reasonable opportunity to: • Consider the offer and present relevant material to determine the value of the property • Suggest modifications to the proposed terms and conditions of the purchase • The time given can vary significantly depending on the circumstances. • Once the property owner has accepted the written offer, a purchase option or easement agreement must be signed. • NO PURCHASE AGREEMENTS MAY BE SIGNED.

31. Willing Buyer/Seller Transaction This method is utilized when the implementation of the project will result in the need to acquire a parcel or property that is currently already for sale by owner. Step 1:Determine Ownership of the Properties to Be Acquired Step 2:Establish A File for Each Property or Easement to Be Acquired Step 3:Determine the Valueof the Needed Property via Appraisal Step 4: Issue Letter of Offer Step 5:Complete the Acquisition Project via Purchase Option

32. Willing Buyer/Seller Transaction Step 1: Determine Ownership of the Properties to Be Acquired • Can be accomplished through a 50 year title search • If the owner has acquired the property through a means other than a warranty deed, then the Grantee must either: • Obtain an attorney title opinion letter, or • Purchase title insurance through a title surety company

33. Willing Buyer/Seller Transaction Step 2: Establish A File for Each Property or Easement to Be Acquired ACQUISITION FILE CHECKLIST – Acquisition Form 1 Grantee: Property Owner: Title Search Completed: Questionnaire Completed: Brochure Delivered (Certified Mail Return Receipt): Invitation to Appraisal (if applicable) (Certified Mail Return Receipts): Appraised Value/Market Value:   Appraiser’s Name & License #:   Review Appraisal Completed: Review Appraiser’s Name & License #: Signed Easement Agreement: Easement Recorded:   Option Amount & Date:   Waiver Signed (if applicable):   Proof of payment (if applicable):   Comments:

34. Willing Buyer/Seller Transaction Step 3: Determine the Value of the Needed Property via Appraisal • The Grantee will need to verify that the property owner’s asking price is fair and reasonablevia the completion of an Appraisal • It is not necessary to inform the property owner about the appraisal • But you may need to coordinate with them to obtain permission to access the property • No review appraisal is required

35. Willing Buyer/Seller Transaction Step 4: Issue Letter of Offer • The Grantee’s Attorney must in writing: • Inform the owner of their interest in the property • State that it will not use its power of eminent domainto acquire the property if negotiations fail • Inform the owner of the value of the property based upon the Appraisal • This offer must be made by certified mailusing Acquisition Form 10, and should include a copy of the Appraisal. • The offer to purchase may also be hand-deliveredand the Grantee must obtain a signed receipt from the property owner.

36. Willing Buyer/Seller Transaction Step 5: Complete the Acquisition Project via Purchase Option If the owner finds the offer to be acceptable, a purchase option must be signed. NO PURCHASE AGREEMENTS MAY BE SIGNED.

37. Property Donation • Sometimes, Grantees find out that the Property Owner is Willing to Donateall or a portion of the parcel: • After sending the initial letter of interest under the Real Property Acquisition/Easement Compensation method, the Property Owner is Willing to Donate the parcel in its entirety: • An appraisal / review appraisal is not needed • Property owner must sign the Full Donation of Property with No Appraisal Form(Acquisition Form 9) • After the letter of offer with Appraisal / Review Appraisal is delivered, the property owner is willing to donate: • The entire parcel • Full Donation of Property After Appraisal(Acquisition Form 7) • A portion of the parcel • Partial Donation of Property After Appraisal(Acquisition Form 8)

38. Relocation In the event the Grantee is acquiring a property that will require individuals to be temporarily or permanently relocated, the Grantee must follow additional rules and regulationsstated in the URA. If relocation procedures are required, the Grantee should contact the OCRA Acquisition Specialist for step by step relocation instructions.

39. Exercise #2 Review of Site Control Acquisition Documentation

40. Lunch

41. Step 4 Conduct 1st Public Hearing Construction Grant Application Process

42. Step 4: Conduct 1st Public Hearing • Prior to the submittal of the Planning Grant Application to OCRA, the grant applicant (community) must conduct a public hearing. • Public hearing notices must be published at least 10 full days prior to the meeting date (so make sure the hearing occurs on the 11th day or after). • The notice needs to be posted in public facilities such as the Town Hall, Post Office, Grocery, etc. • Check OCRA’s website to determine if your public hearing notice needs to be published in Spanish as well as English • Four Factor Analysis / Language Access Plan

43. Step 4: Public Hearing / Citizen Participation Meeting Date Culver Citizen is a Weekly Paper It Publishes On Tuesday To Be Published the Paper Needs Articles the Friday Prior to Publishing

44. Step 4: Conduct 1st Public Hearing PUBLIC NOTICE FOR FIRST PUBLIC HEARING On or about (date), (Applicant) intends to apply to the Indiana Office of Community and Rural Affairs for a grant from the State Community Development Block Grant (CDBG) Wastewater/Drinking Water Program. This program is funded by Title I of the federal Housing and Community Development Act of 1974, as amended. These funds are to be used for a community development project that will include the following activities: (summary of proposed project). The total amount of CDBG funds to be requested is $_________. The amount of CDBG funds proposed to be used for activities that will benefit low- and moderate-income persons is $(amount of CDBG funds requested x percentage of low- to moderate-income residents). The Applicant also proposes to expend an estimated $____________ in non-CDBG funds on the project. These non-CDBG funds will be derived from the following sources: (source and amount).

45. Step 4: Conduct 1st Public Hearing (Applicant) will hold a public hearing on (date), at (time), in (place) to provide interested parties an opportunity to express their views on the proposed federally funded CDBG project. Persons with disabilities or non-English speaking persons who wish to attend the public hearing and need assistance should contact (name, address, and phone #) not later than (date). Every effort will be made to make reasonable accommodations for these persons. Information related to this project will be available for review prior to the public hearing as of (date) at the office the (Applicant) located at (address) between the hours of (office hours). Interested citizens are invited to provide comments regarding these issues either at the public hearing or by prior written statement. Written comments should be submitted to (name and address) no later than (date) in order to ensure placement of such comments in the official record of the public hearing proceedings. A plan to minimize displacement and provide assistance to those displaced has been prepared by (Applicant) and is also available to the public. This project will result in (no displacement of any persons or businesses – or – displacement of the following persons and businesses [name and address]). For additional information concerning the proposed project, please contact (person – telephone – office hours and days) or write to (person – address).

46. Step 4: Conduct 1st Public Hearing • Items Needed from Public Hearing • Proof of Publication • Minutes • Sign-In Sheet • Third Party Authorization

47. Step 5 Submit CDBG Proposal Electronically to OCRA Construction Grant Application Process Proposal Must be Received At The OCRA Office By 4:00 PM On The Specified Due Date And In The Manner That OCRA Has Outlined

48. Exercise #3 Review Proposal / Application Instructions Note: OCRA updates the instructions & applications continually; it is imperative that you review & understand the most current policies per each grant cycle.

49. Step 6 Conduct OCRA Site Visit Construction Grant Application Process

50. Step 6: Conduct OCRA Site Visit Once your proposal is received, your OCRA Community Liaison will schedule a site visit with your community to discuss the overall scope of the project and explain the grant and scoring process to all applicable parties.