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Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program

Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program. Review of Binder and CD. Binder includes DCA Web Site will include. Conference Overview. Boot Camp and Basic Application Development Concurrent Sessions – Application Development.

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Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program

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  1. Workshop Overview&Introduction to Georgia’s Community Development Block Grant (CDBG) Program

  2. Review of Binder and CD • Binder includes • DCA Web Site will include December 12-14, 2012

  3. Conference Overview • Boot Camp and Basic Application Development • Concurrent Sessions – Application Development December 12-14, 2012

  4. Conference Overview • Concurrent Sessions – Examples of Successful Applications (Guest Speakers) • Presentations by Funding Partners (GEFA, USDA, and ED) • One-on-One Technical Assistance/Resource Tables December 12-14, 2012

  5. Conference Overview • Revisions to Strategy Criterion • Water & Sewer Rates Dashboards • Local Ordinances/Code Enforcement • Project Showcase • Wrap Up December 12-14, 2012

  6. Our Mission • Discuss the fundamentals of CDBG as preparation for review of DCA forms 1 – 13 and Compliance Overview • Why is this important? December 12-14, 2012

  7. Introduction to CDBG Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program December 12-14, 2012

  8. Introduction to CDBG • The primary objective of the HCDA is • Further, HCDA identifies three National Objectives • LMI Benefit • Removal of Slum and Blight • Immediate Threat and Danger December 12-14, 2012

  9. LMI National Objective • Low- and moderate-income person means… • Those families at 80 percent or less of Area Median Income (AMI) December 12-14, 2012

  10. LMI National Objective • Overall benefit to LMI persons must 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) December 12-14, 2012

  11. CDBG L/M Area Benefit (LMA) • For projects that will benefit a geographic area—target area or city-wide area— • each activity (e.g., water improvements) must benefit at least 70% LMI persons • and each geographic area chosen must contain a population of at least 70% LMI persons. December 12-14, 2012

  12. LMA (cont.) Target Area Area of Non-benefit Area of Benefit Area Boundary Water Improvement Area of Benefit & TA Population of at least 70% LMI December 12-14, 2012

  13. LMA (cont.) Target Area Water Improvement Area of Benefit – 50% LMI Area of Benefit Target Area Boundary TA Population of at least 70% LMI December 12-14, 2012

  14. CDBG L/M Clientele Benefit (LMC) • CDBG provides a “place” for LMI persons to receive a benefit • e.g., health center, senior center, etc. • 70% of recipients of benefit must be LMI income persons; or December 12-14, 2012

  15. CDBG L/M Clientele Benefit (LMC) • HUD must presume 100% of the recipients of the service are LMI persons • abused children • battered spouses • elderly persons • severely disabled • homeless • Illiterate adults December 12-14, 2012

  16. CDBG L/M Housing Benefit (LMH) • 100% Benefit to L/M Households December 12-14, 2012

  17. CDBG LMI Jobs Benefit • For Economic Development Projects • 51% of jobs must be held or made available to LMI persons December 12-14, 2012

  18. Other National Objectives • Removal of Slum and Blight • DCA’s Redevelopment Fund Program generally addresses this National Objective • Immediate Threat and Danger • DCA’s IT&D Program generally addresses this National Objective December 12-14, 2012

  19. Summary of National Objectives • LMI • LMA • LMC • LMH • LMJ • Slum and Blight • Immediate Threat & Danger December 12-14, 2012

  20. Eligible Applicants • Non-entitlement Local Governments • Generally • Cities < 50,000 • Counties < 200,000 • There are exceptions! • See the Manual & DCA December 12-14, 2012

  21. 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, loans to businesses for fixed assets, etc. • Also see 2013 Applicants’ Manual December 12-14, 2012

  22. Basic Limitations Activities and projects are eligible for funding only to the extent: • Local governments are applicants • They are eligible according to law and regulation • They primarily benefit low- and moderate-income persons or remove slum and blight. December 12-14, 2012

  23. 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 December 12-14, 2012

  24. Resources • CDBG 2013 Applicants’ Manual • www.hud.gov • http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/toolsandproducts • 24 CFR 570.480 (State CDBG Regulations) at http://www.ecfr.gov/cgi-bin/ECFR?page=browse • Guide to National Objectives and Eligible Activities for State CDBG Programs (see 3rd bullet above) December 12-14, 2012

  25. 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. December 12-14, 2012

  26. Method of Distribution Award From HUD—FY 2012 Example • Total Award -- $34,533,844 • Available for Annual Competition $23,397,829+ • Employment Incentive Program $8,000,000 • The Redevelopment Fund $1,500,000 • Immediate Threat & Danger Program $500,000 December 12-14, 2012

  27. Maximum Grant Amounts • Single-Activity $500,000 • Multi-Activity $800,000 December 12-14, 2012

  28. 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 December 12-14, 2012

  29. 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 December 12-14, 2012

  30. 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? December 12-14, 2012

  31. 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 LMI income persons? • Is quality of life improved? December 12-14, 2012

  32. Some Things to Think About • Strategy • Addressed possible alternatives for meeting needs? • Considered ongoing maintenance/prevention? • Have you considered local funding? • Are you a Qualified Local Government? December 12-14, 2012

  33. Revised Strategy Criteria for 2013 • Applications will be compared on their support for comprehensive neighborhood revitalization or target population needs • Competitive applications will plan 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

  34. Other Changes for 2013 • Demographic scoring method • New environmental review requirements • Phase One for buildings • Native American consultation (DCA-9b) • Timeliness requirements have not changed! December 12-14, 2012

  35. Sources of Ideas for Project Development • Local Comprehensive Plan • Citizen Complaints • Previous Engineering Studies • Professional Standards • City Staff/RC Staff/Consultant Staff • Other December 12-14, 2012

  36. Let’s Recap • 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 • Projects must address the needs of L/M persons or households • Lots of eligible activities/some activities are ineligible • Submit completed applications on time • Discuss project with DCA Staff December 12-14, 2012

  37. Deadlines CDBG Annual Competition April 1, 2013 RAS Applications, Annual Reports, Renewals April 1, 2013 December 12-14, 2012

  38. December 12-14, 2012

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