Community Development Block Grant

1. Community Development Block Grant Application Workshop January 16, 2013

2. CDBG - Agenda at a Glance • Introductions • Recap of PY’12 Application • Reporting • Monitoring • Fair Housing • PY’13 Application • Guest: Alexander Rosania, OIG

3. CDBG • Common Problems • Budgets • Make sure cover sheet summary agrees with individual activity budgets • Source/Use of Funds: If multiple funding sources, specify which part of project is to be paid for with CDBG • Supporting Documentation is Crucial. Sufficient detail so it is clear that all likely costs have been considered. • Construction Cost estimates should include language indicating that Davis Bacon wages have been taken into account (if applicable)

4. CDBG • Common Problems (cont.) • Be Well Organized – Make life easier for the review committee! • Organize in order by priority • Tabs for each activity, labeled if possible (even post-its are ok) • Be sure all referenced attachments are actually attached! • Use the correct form – Res. Rehab form should only be used for programs. Other residential rehab. Should use “projects” form • DON’T OMIT ABSTRACTS!

5. CDBG • Common Problems (cont.) • National Objective • Area Benefit and Limited Clientele are mutually exclusive! Don’t select both. • If activity serves an entire area which qualifies as LMI, it’s Area Benefit (example: neighborhood parks, sidewalks) • If activity serves a limited number of people or target population, it’s limited clientele (example: boys/girls club, food pantry, senior center)

6. CDBG • Common Problems • National Objective (cont.) • If using census-delineated areas, use HUD’s LMI Summary Data Tables. Do not use Census, ACS, etc. • For limited clientele, organizations must collect data for persons benefitting (person is member of LMI family) and provide this in the application. Actual, not assumed. • If subgrantee completes this portion of an application, PLEASE EDIT IT to address any issues discussed above.

7. CDBG • Common Problems • Project Readiness – Most if not all other funding sources should be in place • Hearings • Timing (publication must occur 7 days before hearing – not including day of publication or day of hearing) • 2 hearings conducted • Schedule hearings early, taking into account local planning, council and other approvals needed.

8. CDBG Common Problems Environmental Review Violations Acquisition activities: conditional language must be included in P/S Maintenance of Effort CDBG cannot supplant state or local government funding

9. CDBG • Reporting • Current Requirements • New Forms • CDBG@doa.ri.gov • Future • HUD - Flagged Activities • Increased Reliance on Reporting/Timeliness • Sharepoint

10. CDBG • Monitoring • Each grant monitored prior to “close-out”. • Risk-based approach may be utilized when needed to determine which communities should be prioritized for monitoring. • Technical assistance may be requested prior to or in conjunction with monitoring effort

11. CDBG • Monitoring – future • New Guidelines • Greater reliance on checklists • “Regular” CDBG monitoring in some communities will be combined with CDBG-DR monitoring to increase efficiency. • Draft Handbook will be disseminated.

12. CDBG • Fair Housing • For each grant year, a community must engage in at least one activity to affirmatively further fair housing. • For each grant, the first QPR should include a statement indicating what will be done in that grant year to meet the requirement. • Handout: examples of fair housing activities at the local level. • FUTURE – Application may include as threshold requirement and/or factor into scoring.

13. CDBG – PY’13 Application • PY’2013 Allocation: $4,584,872 • Final amount to be determined based on HUD allocation plus any recaptured funds • Significant reduction in recent years • Deadline, 3:00 p.m – Friday, April 19th • In hands of OHCD staff by the deadline • (not postmarked) • 1 original and 1 electronic (required)

14. CDBG – PY’13 Application • Application Caps • $200,000, $300,000 & $400,000 • Potential impact on “Administration” • Cap reductions consistent with State program reductions. • Actions taken to minimize impact of reductions (recapture) • Activities above cap • Housing Development & Economic Development (Jobs) • NOT – Rehabilitation Programs (residential/commercial)

15. CDBG – PY’13 Application • New! $300,000 Residential Rehabilitation Supplemental Fund – Pilot in PY’13 • Additional funds available for successful residential rehabilitation programs • Procedure: Grant awards increased on a case-by-case basis based upon cost estimates for projects ready-to-go. • 20% admin added to cover local costs

16. CDBG – PY’13 Application • Drawdown Threshold • 50% of Program Year 2011 (PY’11) • 75% of PY’10 & PY’09 • 90% of PY’08 • 100% of PY’07 and earlier • PY’07 and prior year funds will be deobligated for redistribution in current cycle. Communities can reapply. • Exemptions on a limited basis by formal written request.

17. CDBG – PY’13 Application • CDBG National Objectives • Benefitting persons of LMI Income • Elimination of slums/blight • Urgent need • In order to be fundable, an activity MUST meet a National Objective. • Documentation must be maintained • Failure to meet National Objective will result in de-obligation or recapture of funds

18. CDBG – PY ’13 Application • Primary Objective for the Small Cities Program: Benefit to low- and moderate- incomepersons • Area Benefit • Limited Clientele • Housing • Jobs • Preventing or eliminating blight (area or spot basis) • Urgent Need. (not generally applicable to “regular” CDBG, applies to immediate threat to public health or welfare.)

20. CDBG – PY ’13 Application • Low/Moderate Income – Area Benefit • Survey • HUD Low/Moderate Income Summary Data Tables (LMISD) (Census tracts and block groups) • Changes anticipated but timing uncertain • Information only down to Census Tract level • Application forms match HUD • Technical Assistance funds available for surveys

21. CDBG – PY ’13 Application • Environmental Review • Choice Limiting Actions • Obligating funds (CDBG/otherwise) prior to completion of environmental review process may require we eliminate activity from consideration. • CDBG cannot reimburse a cost already incurred prior to application. • If CDBG is to be used for acquisition, P/Sale agreement must condition sale upon successful completion of environmental review and RROF.

22. CDBG- PY ‘13 Application • Preagreement • Be sure to indicate on Cover Sheets if preagreement is requested • Preagreement may be requested at any time during the year, not just during the application period • Request must clearly prove that immediate approval of funding is necessary • Approvals may be conditioned upon receiving other funding for a project

23. CDBG • Questions & Answers • Limitation on conversations once RFP issued. • Q&As forwarded via email to June House and responses posted. • All forms available starting 1/21 at: http://www.hrc.ri.gov/CDBGForms.php

24. CDBG Future Training Initiatives Workshop(s) Webinars On-site Technical Assistance Meetings Website (Anticipated February, 2013) Contacts June House – 222-2079 Charles Kimes – 222-6489 Laura Sullivan – 222-5817 Michael Tondra – 222-7901 (Dawn Vittorioso)