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CDBG Applicant’s Workshop Neighborhood Revitalization Session

CDBG Applicant’s Workshop Neighborhood Revitalization Session. CDBG Neighborhood Revitalization. Types of Grants Single Activity : Housing Activities Only Multi-Activity : Housing PLUS Infrastructure Activities. 2. CDBG Neighborhood Revitalization. Assessing Needs

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CDBG Applicant’s Workshop Neighborhood Revitalization Session

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  1. CDBG Applicant’s WorkshopNeighborhood Revitalization Session

  2. CDBG Neighborhood Revitalization • Types of Grants • Single Activity: • Housing Activities Only • Multi-Activity: • Housing PLUS Infrastructure Activities 2 December 12-14, 2012

  3. CDBG Neighborhood Revitalization • Assessing Needs • What are the needs community wide? • Are there concentrations of substandard housing? • Determine the project area (“TARGET AREA”) December 12-14, 2012

  4. CDBG Neighborhood Revitalization Housing Activities December 12-14, 2012

  5. Single ActivityNeighborhood Revitalization • Only Addresses Housing Activities • May Include Several Activities • Rehabilitation • Reconstruction • Acquisition • Relocation • Demolition/Clearance December 12-14, 2012

  6. Single ActivityNeighborhood Revitalization • Who May Receive Assistance: • Individual or Family Home-Owners (Owner Occupants). • Absentee Owners (Landlords). • Owner Occupants must meet Low-Moderate Income definitions. • Must possess clear Deed to property. • Property must be within Applicant Jurisdiction. December 12-14, 2012

  7. Single ActivityNeighborhood Revitalization • Limit of $500,000. • May be City/County Wide, Target Area, or Targeted to a Specific Group • Elderly • Handicapped • Working Families with Children December 12-14, 2012

  8. Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000. • Rehabilitation – To repair and/or bring to Code existing substandard housing unit. • Reconstruction– Where Infeasible to Rehab, Demolish and construct new unit on same site – Owner Occupied ONLY. • “New” Construction - Construction of new unit on different site. December 12-14, 2012

  9. Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000. New Construction is NOTeligible unless as “last resort” OR Approved Community Based Development Organization is used. December 12-14, 2012

  10. Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000. • Acquisition - of Real Property • Disposition – Costs Incidental to Disposing of Property Acquired with CDBG Funds • Code Enforcement December 12-14, 2012

  11. Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000. • Clearance – Of Dilapidated Structures, out-buildings, and Other Items • Interim Assistance • Relocation – Temporary or Permanent • Removal of Architectural Barriers December 12-14, 2012

  12. Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000. • Home Ownership Assistance • Down Payment • Closing costs NOTE: DCA policy mandates use of fixed rate mortgages on all CDBG funded projects December 12-14, 2012

  13. Eligible ActivitiesRevitalization Area Strategy (RAS) Maximum $800,000. • Officially adopt a local Redevelopment Plan in accordance with the Urban Redevelopment Act O.C.G.A. 36-61 • Eligible area of Census Block Group(s) of 20% or greater poverty level. • Develop strong local partnerships focusing local resources within the Revitalization Area. • Submit application for designation to DCA. • Must be designated by DCA through application December 12-14, 2012

  14. CDBG Neighborhood RevitalizationApplication Review Process • Application Read and Reviewed by the Housing Panel • Rank and Score based on: • Feasibility of Project • Strategy Proposed • Impact of Project December 12-14, 2012

  15. Feasibility Considerations • Property Standards • Outside Services and Resources committed • Lead Based Paint (LBP) • Funding Sources and Commitments • Operation Oversight • Maps and Overview • Selling Your Project • Costs December 12-14, 2012

  16. Feasibility ConsiderationsMinimum Property Standards • Realistic Minimum Property Standards – you determine what standards you want in your community. • Property Standards vs. Construction Standards. • Code Violations and Incipient Violations. • First priority should be given to Health, Safety, and ADA compliance. December 12-14, 2012

  17. Feasibility ConsiderationsOutside Services and Resources • Identify service required and what service will be rendered. • Establish estimated cost. • Procure a FIRM commitment letter specifying on-going services on a cost-per-hour or per project basis. December 12-14, 2012

  18. Feasibility ConsiderationsLead Based Paint (LBP) • LBP evaluation is required on any structure built before 1978. • Evaluation services must be performed by an inspector/risk assessor licensed and certified by the State of Georgia. • Be prepared to seek services outside your local area. Consider travel and other expenses when preparing your estimate. December 12-14, 2012

  19. Feasibility Considerations Lead Based Paint (LBP) • Lead hazard control can be costly, budget 25% of estimated rehab cost. • Lead hazard control work must be performed by qualified workers – See the EPA Renovation and Remodeling Final Rule (EPA RRP Rule. • Demonstrate understanding of regulation requirements. December 12-14, 2012

  20. Feasibility Considerations Funding, Partnerships, Other Resources. • Obtain FIRM commitment letters from all parties. • Ensure that the commitment letters are issued and signed by authorized individuals. • Pledges of support without commitment letters will not be considered. • Indicate how each will be applied, at what point will these funds be released. • Home -Owner Participation contributions if required. • General Property Improvements (GPI) are not funded by CDBG. • Secure firm, convincing documentation of participation from investor-owners. December 12-14, 2012

  21. Feasibility Considerations Schedules and Time tables • Who will provide Project oversight? • Develop and show a schedule of start and completion dates. Indicate milestones and inspection points. December 12-14, 2012

  22. Feasibility Considerations Contracting and Construction • Can be a very problematic area. • Qualifying contractors: establish guidelines and criteria. • “Work Write-Up” and “Scope of Work”. • Bidding process and bid acceptance protocol. • Contract negotiations. • Change Orders protocol. • Draw Request and approval process. December 12-14, 2012

  23. Feasibility Considerations Maps and Photos • DCA Form 12 instructions spells out what is required on map. • Map should be in common scale. • Show details in subject area(s): existing structures, street names, schools, landmarks, etc. • Photographs must indicate Unit number or vista. • Indicate status of structure (e.g. occupied, vacant, absentee owner/rental, non-targeted structure). • Indicate rehab, reconstruction, or clearance. • INCLUDE FINANCIAL PLAN FORM (EXHIBIT H) December 12-14, 2012

  24. Feasibility Considerations Maps and Photos (cont.) • Photographs. • Show all 4 elevations if possible. • Interior photos should clearly represent condition of structure and problems described in narrative. Annotate photo. • Photographs of the owner, his or her family, children, in-laws, family pets, neighbors, automobiles, etc. are not required. December 12-14, 2012

  25. Street Names Unit Numbers December 12-14, 2012

  26. Unit # 10 - Left Front View December 12-14, 2012

  27. Unit #10 Interior Roof Leak Damage – Living Room December 12-14, 2012

  28. Feasibility Considerations Selling it to DCA • Exactly WHAT will this project achieve. • Exactly WHY do you need this project. • Exactly WHO will the project impact. • Exactly HOW you will accomplish the project. • Exactly WHERE the target area(s) are located. • DATA, we love data! BE SPECIFIC! December 12-14, 2012

  29. Feasibility Considerations • Financing Technique(s) AGAIN - BE SPECIFIC • Deferred Payment Loans • Leveraged Loans/Interest Buy Downs • Who are your partners • Include participation formula • Know your community! Be realistic with participation formula December 12-14, 2012

  30. Feasibility Considerations • Confirmation of proposed resources and partners • Compliance with Applicable Laws • Investor Owner Eligibility • Financing: 50%, DPL at full term. • Rent Regulatory Agreement • Timetable for proposed accomplishments December 12-14, 2012

  31. Feasibility Considerations Unit by unit analysis of proposed activity • Include per unit cost estimate. • Include description of proposed work needed with pictures illustrating problems (exterior and interior). Annotate photos. • Complete “Financial Plan” Form (Appendix H) • Include address on Financial Plan December 12-14, 2012

  32. Revised Strategy Criteria for 2013 • Applications will be compared on their support for comprehensive neighborhood revitalization or target population needs. • Competitive applications willplan to address most or all target area or target population community and economic development needs using CDBG and locally driven approaches. • Documentation and results measures are important. December 12-14, 2012

  33. Strategy Considerations Describe Severity of problems • Demonstrate needs in Narrative AND with Pictures Alternatives to Strategy • Discuss other possible strategies and why the proposed strategy is best for problems described. “Do nothing” is only an uncreative solution. December 12-14, 2012

  34. Strategy Considerations • Discuss plan to prevent re-occurrence of problems addressed in grant proposal. • Adoption of policies or ordinances. • Code enforcement • More stringent codes • Ongoing maintenance December 12-14, 2012

  35. Strategy Considerations Marketing of Program • Who has expressed interest in Program? • How will Interested be generated? • Are residents supportive of the program? • Document Commitment from Owner Occupants and Investor Owners! December 12-14, 2012

  36. Impact Considerations Impact Of Project • Document severity of need. • Describe the effect the proposed project will have on the identified needs as well as the community as a whole. • Indicate Number of persons who will benefit. • Overall CDBG Cost per person. December 12-14, 2012

  37. Successful StrategiesFinancial Participation Owner Participation as Fixed Amount as Determined by Annual Income: Example: “Participants below 30% AMI will be required to pay $500 towards of the cost of their rehab” Example: “Participants between 30% and 50% AMI will be required to pay $1000 towards of the cost of their rehab” December 12-14, 2012

  38. Successful Strategies • Mandatory Homebuyer Counseling • Credit Counseling • Employment training • Holistic approach to neighborhood revitalization • Address issues and concerns along with housing/infrastructure problems December 12-14, 2012

  39. Compliance with Regulations Acquisition • Easements for Public Facility Improvements • Dilapidated Units • Uniform Relocation Act (URA) December 12-14, 2012

  40. Compliance with Regulations Relocation – Permanent • Uniform Relocation Act (42 months) • Owner OR Tenant • 104(d) “Barney Frank” (60 Months) • Tenant Only (Rent to Rent) • One for One Replacement December 12-14, 2012

  41. Compliance with Regulations • Identify Available Resources • Comparable Units • Provide Basis for Relocation • Current vs. available rents rates December 12-14, 2012

  42. Compliance with Regulations “New Construction” Eligibility • Last Resort • No Available Resources Exist • Application must provide credible evidence. • Cheaper to build (including parcel) than purchase. • Not-for-profit or for-profit developer • Approved Community-Based Development Organization. December 12-14, 2012

  43. For Target Area(s), Make sure you . . . Provide a Unit by Unit Analysis • Keyed to Map • Picture(s) of Units (Exterior and Interior) • List of Deficiencies for Targeted Units December 12-14, 2012

  44. For Target Areas, Make sure you . . . Provide Cost Estimates: • Keep in Mind that Actual work may be 1 or 2 years away….Budget Appropriately. • Provide reasonable estimates for each unit based on complete walk through. • Budget for Lead Hazard Control. (Program will pay all LBP Costs) December 12-14, 2012

  45. For Target Areas, Make sure you . . . Provide Target Area Data: • Total Number of Units. • Total Number of Substandard units. • Total Number of Dilapidated units. • Total Number of Owner Occupied. • Total Number of Renter Occupied. • Total Number of Vacant. December 12-14, 2012

  46. For City or County Wide Programs, Make sure you . . . • Describe how units were chosen in a fair and equitable manner. • Provide description of overall housing conditions jurisdiction wide - IMPORTANT • Overall assessment of need for Housing improvements and justification for the chosen units. • Scores for Applications lacking overall assessment are reduced. December 12-14, 2012

  47. Other Important things to Do • Provide Financial Plan!!! • In Narrative and on Form provided in Appendix H of Applicant Manual OR Exhibit H in Guidelines for Residential Rehabilitation Programs • Explain formula for Owner Participation Amounts. December 12-14, 2012

  48. Be sure to use this Revision December 12-14, 2012

  49. Things NOT TO DO • Work in Previous CDBG Target Areas or Units. • Propose 100% Grants or 100% DPL’s. • Propose Assistance to Landlords that exceeds 50% of Rehab Cost (Not including Lead Hazard Control). • Include Elected Officials or their family members without full disclosure in the application (Conflict of Interest). December 12-14, 2012

  50. Things NOT TO DO • Exceed $5,000 TOTAL COST to Rehab a Manufactured Housing Unit (MHU) without VERY strong justification. (Advance approval from DCA Required.) • Prepare grant request based on Maximum funds available rather than needs identified. December 12-14, 2012

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