Welcome To The MSHDA CATeam VSCI Training

1. Welcome To The MSHDA CATeam VSCI Training

2. MSHDA Community Assistance Team Vibrant Small Cities Initiative Six Million Dollars in Community Development Block Grant (CDBG) Federal Funding from the U.S. Department of Housing and Urban Development is being administered by the Michigan State Housing Development Authority for VSCI Projects.

3. MSHDA CATeamVSCI Recipients • Adrian • Big Rapids • Boyne City* • Cheboygan* • Houghton • Owosso • Rogers City*

4. Today’s Timeline Discussion RFG Discussion: ▪ Local Public Participation ▪ Narrative ▪ Authorizing Resolution Award Process Environmental Review Process     Compliance Requirements ▪ Civil Rights ▪ Davis-Bacon ▪ Uniform Relocation Act ▪ Grant Administration/Monitoring   Visit/Reporting/Project Close-Out Media/Website Questions and Answers

5. MSHDA CATeamVSCI Timeline

6. MSHDA CATeamVSCI Timeline Friday, March 14, 2008 by 5:00 p.m. RFG proposals must be submitted to our office. Environmental Reviews are started/underway. Prior to March 17, 2008 with documentation in our office by 8:30 a.m. all matching funds must be placed in an escrow account. April 2008 - Grant Agreements for specific projects will be prepared and executed by all parties. May 2008 - Construction can begin if grant agreements are executed by all parties and the environmental review is complete/written authorization is received from our office.

7. RFG DISCUSSION The RFG consists of narrative descriptions, forms, and supporting documents necessary for a complete review and evaluation of the proposed projects based on the previously submitted NOI and application information to provide additional information to validate the set-aside of CDBG grant funds for VSCI priority projects that will implemented and completed by December 31, 2009.

8. All RFG’s must include the following: Attachment 1 – signed by a local authorized official Table of Contents (with page numbers) Section 1 - Community Development Plan; Section 2 – Project Description; Section 3 – RFG Proposal – National Objective; Section 4 – Project Budget; Section 5 – Administrative Plan; Section 6 - Authorizing Resolution; Section 7 - Certification & Statement of Assurances; Section 8 – Pro-Rated Resale Agreement; Section 9 – Uniform Relocation Act; and Section 10 – Work Plan.

9. Three Original, Signed, Full Color Documents as well as one Electronic Copy of each completed RFG must be received by 5 p.m. on Friday, March 14, 2008. Michigan State Housing Development Authority Community Assistance Team 735 East Michigan Avenue Lansing, Michigan 48909 (517) 241-1737

10. Award Process: Submit a Notice of Interest Receive Application Authorization Submit an Application Receive MSHDA Approval to prepare RFGs Grant Set-Aside Agreement Prepared and Signed Project Funding Awarded Environmental Review Process Completed Projects Implemented Payments Processed Compliance Requirements Met VSCI Projects Closed Out VSCI Grant Closed Out

11. Attachments • Attachment 1 • Attachment 2 • Attachment 3 • Attachment 4 • Attachment 5 • Attachment 6 • Attachment 7 • Attachment 8 • Attachment 9 • Attachment 10 • Attachment 11 • Attachment 12

12. VSCI Administration(Non-Rental Rehab Only) Maximum of 2% of the grant award. $1 million grants = maximum of $20,000 $667,000 grants = maximum of $13,340 Will be split between RFG awards and communities will receive funds upon completion of each RFG activity. Example: RFGs 1, 2, 3 approved for $80,000 remainder of grant funds, $20,000, used for admin Split 3 ways = $6,667 in admin. in each activity – line item in budget. Community completes activity 3 first and receives $6,667 upon completion/formal closeout of that activity. Admin costs will have to be documented by person, activity, date, and amount of time as outlined on the attached form.

13. Questions

14. Provide a statement on the city’s letterhead designating the Financial Officer by Name/Title. • Provide a statement on letterhead stating that, “On behalf of the (City), I (Name/Title) certify that two signatures are required on all outgoing checks associated with the VSCI grant award and that all persons handling the financial activities associated with the CDBG account are bonded and insured. • Identify the account holder’s name(s), account location, account balance, and the specific account numbers designated for each RFG project: • ________________________________________________________________________________________________________________________________________________________________________ VSCI Financial/Escrow Requirements

15. In addition, provide a letter on letterhead from the account location certifying that the account information provided accurately reflects what is identified above and that the account is currently in good standing. 4. Provide the tracking method identifying grant award amounts for each RFG project and their respective account number(s). The tracking process must also provide running account balances for each RFG project separating local, private, CDBG, and other funding based on the date costs were incurred. 5. Provide a statement of letterhead stating that the city understands that the required match commitment must remain in escrow until disbursed for project activities therefore, any modifications to account numbers and or balances must be preapproved by MSHDA. CDBG funds will be released on the percentage basis outlined in the grant agreement.

16. Questions

17. Environmental Review Procedures • All projects (procedures are more legal than environmental). • Covers the entire project (public and private activities). • Completed before incurring any project costs (grant, public, and private). • Process takes about 60 days. • SHPO sign off required (3 types). • Publish combined notice and respond to citizen comments. • Begin the project after written MSHDA CATeam Authorization.

18. Process Environmental Assessment Checklist (Exhibit E-5)

19. Environmental Review Process OVERVIEW Gather Relevant Environmental Information • Write SHPO Letter • Consult with DEQ if needed • Complete Checklists • Publish Notice • Observe Public Comment Periods • Obtain Permission to Incur Costs

20. Step One • Designate a Certifying Officer • Complete the one page Environmental Review Record. (Exhibit E-1) • Complete and send the attached two page State Historic Preservation Office (SHPO) funding notice to Diane Tuinstra at the SHPO Office (Exhibit E-2) USGS Quad Map • Fax information to MSHDA

21. Step Two • DEQ Permit Questionnaire (Exhibit E-3) • Floodplain/Wetland – 8 Step Process A letter should be created indicating whether or not the project is located in a floodplain or wetland or will impact a floodplain or wetland.

22. Step Three Statutory Checklist (Exhibit E-4) • Once a SHPO response has been received and the MDEQ documentation has been completed, the Statutory Checklist should be filled out. • Must reference and provide compliance documentation for all responses.

23. Step Four Environmental Assessment Checklist (Exhibit E-5) • Must be completed in its entirety. • Identification of the source and/or attaching supporting documentation for each response is required. • The narrative portion of the assessment should also be completed. • As an FYI: responses of not applicable or none are not acceptable responses. For Example: to address the alternatives considered question, the community should address the cause and effect if the project does not move forward … not state that there is no alternative.

24. Step Five • Prepare and Publish the Combined Notice • After completion of steps 1-4 • Determined No significant impact on the environment • local newspaper/one day • distribute to appropriate agencies via certified mail • fifteen day local comment period. If you receive a comment please contact our office for additional instructions.

25. ***SAMPLE NOTICE*** COMBINED NOTICE NOTICE TO PUBLIC OF NO SIGNIFICANT IMPACT ON THE ENVIRONMENT AND NOTICE TO PUBLIC OF REQUEST FOR RELEASE OF FUNDS Date Published_________________ (Name of Applicant) (Street, City, Zip Code) (Telephone Number) TO ALL INTERESTED AGENCIES, GROUPS AND PERSONS: On or about (Date #1 - See Notes on Page 34) the above named (City, County, Township, or Village) will request the state of Michigan to release Federal funds under Title I of the Housing and Community Development Act of 1974 (P.L. 93-383) for the following project: (Project Title or Name) (Purpose or Nature of the Project) (Location – City, County, State – of Project) (Estimated Cost of Project)

26. Finding of No Significant Impact It has been determined that such request for release of funds will not constitute an action significantly affecting the quality of the human environment and accordingly the above-named (County, City, Village, or Township) has decided not to prepare an Environmental Impact Statement (EIS) under the National Environmental Policy Act of 1969 (P.L. 91-190). The reasons for such decision not to prepare an EIS are as follows: 1.) (Set forth reasons for decision) An Environmental Review Record respecting the proposed project has been made by the above-named (City, County, Township, or Village) which documents the environmental review of the project and more fully sets forth the reasons why an EIS is not required. This Environmental Review Record is on file at the above address and is available for public examination and copying upon request at Room between the hours of and ___. (If Applicable) No further environmental review of such project is proposed to be conducted prior to the request for release of federal funds. Public Comments on Finding All interested agencies, groups, and persons disagreeing with this decision are invited to submit written comments for consideration by the (City, County, Township, or Village) to the (Office of the Undersigned or Other Specified Place) on or before Date #2. All such comments so received will be considered and the (City, County, Township, or Village) will not request the release of federal funds or take any administrative action on the proposed project prior to the date specified in the preceding sentence. Release of Funds (Name of Applicant) will undertake the project described above with Community Development Block Grant funds from the State of Michigan under Title I of the Housing and Community Development Act of 1974. (Name of Applicant) is certifying to the State of Michigan that (Name of Applicant) and Certifying Officer of Applicant) in her/his official capacity as (office) consent to accept the jurisdiction of the federal courts if an action is brought to enforce responsibilities in relation to environmental reviews, decision-making, and action; and that these responsibilities have been satisfied. The legal effect of the certification is that upon its approval (Name of Applicant) may use the Block Grant funds and the state will have satisfied its responsibilities under the National Environmental Policy Act of 1969. Objections to State Release of Funds The State of Michigan will accept an objection to its approval only if it is on one of the following basis: (a) that the certification was not in fact executed by the certifying officer or other officer of applicant approved by the State of Michigan; or (b) that applicant's environmental review record for the project indicated omission of a required decision finding or step applicable to the project in the environmental review process. Objections must be prepared and submitted to the State of Michigan, Michigan State Housing Development Authority, Community Assistance Team, 735 East Michigan Avenue, Post Office Box 30044, Lansing, Michigan 48909. Objections to the release of funds on basis other than those stated above will not be considered by the state. No objection received after Date #3 will be considered by the state. (Signature of Certifying Officer) (Name) (Title) (Address)

27. Dissemination of FONSI and NOI/RROF Notices The Notice of Intent to Request Release of Funds (NOI/RROF) or combined notice of Finding of No Significant Impact and Notice of Intent to Request Release of Funds (FONSI/RROF) must be sent to the following agencies: *In addition to the required dissemination to the local media and the offices identified above, 24 CFR Part 58-43 requires dissemination to: a. Individuals and groups known to be interested in the project activities; and b. Appropriate local, state, and federal agencies that reasonably may be expected to have an interest in the project.

28. Explanation of Dates in Combined Notice of Finding of No Significant Impact And Notice of Intent to Request Release of Funds Date #1 The date in the first paragraph is the earliest date the community can request release of funds from the state. (Please note that the request for release of funds is not a payment request, but is an environmental release of the project by the state). The day after the local comment period ends (this date should be the day after Date #2). Date #2 is the fifteenth (15th) day from publication, so Date #1 should be at least the sixteenth (16th) day from publication. If the sixteenth (16th) day is a Saturday, Sunday, or holiday, go to the next business day. For example, if the notice is published on March 15, Date #1 is March 31. Date #2 The ending date of the minimum time period for the public to make comments to the local community. (Fifteen (15) calendar days from the date of publication) The local comment period starts the day after publication. This is day one (1). Count fifteen (15) days. Day fifteen (15) must be a business day. If day fifteen (15) is a Saturday, Sunday, or holiday, go to the next business day. Date #2 is the fifteenth (15th) day from publication. For example, if the notice is published on March 15, Date #2 is March 30.

29. Calendar Overview Local Comment Begins Publish Date State Begins Local Ends State Ends

30. Step Six Once the fifteen day comment period is complete, the community needs to mail/fax the following documentation to MSHDA to begin the fifteen day state comment period. • Certifying Officer Designation Letter 2. State Historic Preservation Office Submission & Response Letters 3. MDEQ Questionnaire and Backup Documentation 4. A letter certifying floodplain/wetland process not required. 5. Environmental Review Record 6. Statutory Checklist and Supporting Docs 7. Environmental Assessment (Checklist Narrative) and Supporting Docs 8. Copy of Published Notice/Affidavit of Publication • (either actual newspaper page including top of page or an affidavit) • Documentation that notice was disseminated to required agencies (certified mail receipts) • Letter certifying that no comments were received during the local comment period. • Request for Release of Funds and Certification Form • Documentation of date first CDBG cost incurred • Documentation of date other public and private costs incurred and total expended to date

31. Environmental Review Process OVERVIEW Gather Relevant Environmental Information • Write SHPO Letter • Consult with DEQ if needed • Complete Checklists • Publish Notice • Observe Public Comment Periods • Obtain Permission to Incur Costs

32. Questions

33. Prorated Resale/Program IncomeProvision

34. Property Ownership • For the façade portion of the Grant's Term, the Grantee/Benefiting Property Owners hereby agree to fully repay the Grantor the full grant amount, in the event that the Grantee/Benefiting Property Owners fail to obtain the Grantor's written approval prior to the following actions by the Grantee: (a)  Grantee/Benefiting Property Owners either sell, or otherwise transfer the Real Property's ownership responsibilities to some other entity. (b)  Grantee/Benefiting Property Owners lease or assign their interest in any portion of the Real Property. (c)  Grantee/Benefiting Property Owners permit liens or claims of any type to be placed on the Real Property • For the façade portion of the Grant, the Grantee/Benefiting Property Owners must demonstrate ownership of the property for five years from the date of the grant agreements beginning term of work. If the Grantee/Benefiting Property Owners decides to transfer ownership within five years from the closing date, the Grantee/Benefiting Property Owners must notify the State thirty days prior to the transfer. The State will identify during that thirty day notification period the appropriate repayment amount and repayment terms and also provide a written release to authorize the transfer. If a transfer takes place without written authorization, full repayment of the entire grant award will be required within 30 days made payable to the State of Michigan.

35. Grant Provisions To abide by the repayment/reuse/resale provisions that requires if the property is sold within five years from the completion of project activities, or the property closing date, a prorated portion of the proceeds must be returned to the State of Michigan. The prorated formula will be based on Year 1 - 100% payback; Year 2 - 80% payback; Year 3 - 60% payback; Year 4 - 40% payback; Year 5 - 20% payback the following: • Year 1 (closing date 2008 – closing anniversary date 2009) - 100% payback; • Year 2 (closing anniversary date 2009 – closing anniversary date 2010) - 80% payback; • Year 3 (closing anniversary date 2008 – closing anniversary date 2009) - 60% payback; • Year 4 (closing anniversary date 2010 – closing anniversary date 2011) - 40% payback; and • Year 5 (closing anniversary date 2011 – closing anniversary date 2012) - 20% payback. The repayment percentages/proceeds identified above are calculated based on the actual CDBG funds awarded to a specific property address, the amount of funds drawn down, as well as the project meeting a national objective. If the project does not meet a national objective, i.e. job creation, then 100% of the CDBG grant funds received will have to be returned to the State of Michigan within six months of the ending term of work. In addition, it is a straight percentage owed based on the year in which a closing takes place, proration of the percentage of grant funds being repaid based on partial days owned is not allowed.

36. Program Income • Any program income received by the Grantee, over $25,000 a calendar year, related to the properties identified as a part of this project, must be reported to the MSHDA Community Assistance Team within 30 days of receipt and all MSHDA CATeam/U.S. Department of Housing and Urban Development program income restrictions apply.

37. MSHDA CATeam Program Income Policy Any program income received by the Grantee, related to the properties identified as a part of a CDBG project, must be reported to the MSHDA Community Assistance Team within 30 days of receipt. Program income on hand must be committed/released prior to requesting additional CDBG grant payments on all open MSHDA CATeam projects. Any gross lease/rental program income received that totals less than $25,000 in a calendar year (January 1st – December 31st) will be reviewed by the MSHDA CATeam. The community has the option to request to utilize the program income to do additional project related activities. The MSHDA CATeam will review the request and determine whether to give written authorization or request that the program income be returned to our office. Any gross lease/rental program income generated on the “property” purchased with CDBG funds over the amount of $25,000 in a calendar year (January 1st – December 31st) must be returned to our office within 60 days of the end of the calendar year it was received in.

38. Program Income Examples 1 Building 1,000 square feet rental space 12 months/$24,000 in rent = $2,000 rent per month/1,000 square feet = $2 per square foot 2 Buildings 800 square feet rental space in each 12 months/$24,000 in rent = $2,000 rent per month/1,600 square feet = $1.25 per square foot

39. Questions

40. Payment ProcessGrant payments are made based on request by the local government. • Complete Payment Request Form • Attach invoices • Send request & backup doc’s to MSHDA • MSHDA reimburses your community Typically Reimbursement Only • First payment request triggers establishment of a monitoring visit

42. Payment Processing • Façade – We expect to pay up to 50% of the costs (or the percentage outlined in grant agreement)… payments will be approved based on the match percentage paid up to that point Example: Façade Invoice comes to our office for $20,000 – if the match requirement has not been met, we would pay up to the designated percentage (maximum 50%) of the invoice as outlined in the grant agreement = $10,000

43. CDBG Monitoring Visit What Are We LookingFor?

44. Monitoring Review Structure • All infrastructure and façade grantees will have an on-site monitoring review following the first substantial payment request. • Signature Building – will take place after property is acquired and tenants have been identified. • Land Assembly – will take place after the closing and close to the expiration of the six month inactivity period. • Planning – will take place once a final plan has been provided.

45. Monitoring Visit • Examine Project Files • Tour of Project Site • Follow-Up Letter indicating compliance status • Closeout Process

46. How Do I Set Up My Project Files and prepare for a Monitoring Visit?

48. MONITORING GUIDE CATEGORIES • Environmental Review Procedures Approved projects have a grant agreement and have received written authorization to incur costs. • Financial Management

49. Financial Management Grant dollars management Accounting records showing receipts and expenditures Copies of invoices, outgoing checks and copies of checks received from State Treasury **If EFT: Copy of Bank Statement/E-mail from State Treasury. Verification of procurement process including: advertisement for bids, bid tabs, RFP/RFQ, bid award documentation, contract documents. Annual and final single audits. CFDA #:14.228

50. Financial Management • Were project costs incurred after the environmental release date? CDBG Local Private Engineering – Early Release Letter