workshop overview & introduction to georgia’s community development block grant (cdbg)...

2010 DCA CDBG Applicants’ Workshop2010 DCA CDBG Applicants’ Workshop

Workshop Overview&

Introduction to Georgia’s Community Development Block

Grant (CDBG) Program

2010 CDBG Applicants’ Workshop Intro. to CDBG Boot Camp2010 CDBG Applicants’ Workshop Page 2 Intro. to CDBG Boot Camp

Review of Binder and CD

• Binder includes▪ Welcome/Agenda▪ Staff Contacts▪ CDBG Manual/Appendices▪ Revitalization Area Strategy (RAS) Manual

• CD Includes▪ CDBG Manual, Forms; RAS Manual; EIP &

RDF Manuals▪ CDBG Rehab Manual


Conference Overview- Part I

Boot Camp and Basic Application Development

• Intro to CDBG Program

• Documentation Guide - Forms 1-13

• Compliance/Historic Preservation

• Concurrent Sessions – Application Development▪ CDBG Public Facilities▪ Housing and Multi-Activity▪ Economic Development▪ URPs/RAS


Conference Overview- Part II

Competitiveness and New/Advanced Topics

• Concurrent Sessions – Examples of Successful Applications▪ Water and Sewer▪ Buildings/Street and Drainage▪ Housing and Multi-Activity▪ Economic Development

• New/Advanced Topics▪ Rating and Selection▪ Survey Methods▪ Section 3

• One-on-One Technical Assistance


Conference Overview-Last Day

New Frontiers

• Summary of Changes for 2010

• News from Washington DC

• Next Stages for CHIP

• Listening Session


Our Mission in the Next 30 Minutes

• Discuss the fundamentals of CDBG as preparation for review of DCA forms 1 – 13 and Compliance Overview

• Why is this important?▪ In order to submit a competitive application▪ Adequately plan your CDBG project▪ Successfully carryout your CDBG project


Introduction to CDBG

Title 1 of the Housing and Community Development Act of 1974, as amended,

created the CDBG program

(See CDBG History in 2010 Applicants’ Manual)


Introduction to CDBG

• The primary objective of the HCDA is the development of viable communities through the improvement of living conditions and the expansion of economic opportunities in cities and counties, principally for persons of low- and moderate-income.

• Further, HCDA identifies three National Objectives▪ LMI Benefit▪ Removal of Slum and Blight▪ Immediate Threat and Danger


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, etc.

• Also see 2010 Applicants’ Manual


LMI National Objective

• Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by HUD. Unrelated individuals will be considered as one-person families for this purpose.▪ That is, those families at 80 percent of less of

Area Median Income (AMI)


LMI National Objective

• For CDBG, the law requires that overall benefit to L/M persons 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)


CDBG L/M Area Benefit (LMA)

For projects that will benefit a geographic area—target area or city-wide or county-wide area—each activity (e.g., water improvements) must benefit at least 70% L/M persons and each geographic area chosen must contain a population of at least 70% L/M persons.


LMA (cont.)

• As a practical matter, draw your area boundaries correctly and these issues will usually take care of themselves.▪ The boundaries proposed (and therefore the

area where income surveys must be done) must include the entire area of benefit.


Area of Non-benefit

LMA (cont.)

Area Boundary Water Improvement Area of Benefit

&TA Population of at least 70% L/M


CDBG L/M Clientele Benefit (LMC)

• CDBG provides a “place” for L/M persons to receive a benefit▪ e.g., health center, senior center, etc.

• 70% of recipients of benefit must be L/M income persons; or

• HUD must assume 100% of the recipients of the service are L/M persons


CDBG L/M Housing Benefit (LMH)

• 100% Benefit to L/M Households


CDBG L/M Jobs Benefit

• For Economic Development Projects▪ 51% of jobs must be held or made available to

L/M persons


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• National Objectives May Be

Combined in the Annual Competition▪ Consult with DCA


Basic Limitations

Activities and projects are eligible for funding only to the extent:

• Local governments are applicants (sub-recipients may implement)

• They are eligible according to law and regulation

• They primarily benefit low- and moderate-income persons or remove slum and blight.


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


Resources

• CDBG 2010 Applicants’ Manual

• www.hud.gov

• www.hud.gov/offices/cpd/communitydevelopment/programs/stateadmin/

• 24 CFR 570.480 (State CDBG Regulations) at http://ecfr.gpoaccess.gov/

• Guide to National Objectives and Eligible Activities for State CDBG Programs (see 3rd bullet above)


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.


Method of Distribution

Award From HUD—FY 2009 Example

• Total Award -- $39,944,139

• Available for Annual Competition $28,643,597

• Employment Incentive Program $8,000,000

• The Redevelopment Fund $1,500,000

• Immediate Threat & Danger Program $500,000


Maximum Grant Amounts

• Single-Activity $500,000

• Multi-Activity $800,000


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


Demographics

• Measure of need based on most recent census data

• Applicants do not submit any information

• For submitted applications, counties are compared with counties and cities with cities

• See CDBG 2010 Applicants’ Manual for details


Basic Rating and Selection Approaches

• Panels score Feasibility, Strategy, Impact, assign Leverage amounts, and score Readiness Bonus Points

• Like applications are compared against like applications▪ Four review panels – Water & Sewer,

Buildings/Street and Drainage, Housing, ED

• RAS Applications are scored by a separate panel


Basic Rating and Selection Approaches

• Each application is read by two panel members and presented to the panel

• Scores are assigned and teams are checked for consistency

• Top rated applications receive a site visit and have their PERs/PARs reviewed by an independent engineer


Leverage

• Resources committed to and directly related to the project over and above the required cash match

• Evaluated on a per capita basis▪ Total dollars approved by panels for Leverage

is divided by jurisdiction population

• Like applications compared to like applications


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


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?



• Strategy▪ What are the community development needs

and have they been clearly defined?▪ What are the possible alternatives for

addressing those needs, i.e., have you done any brainstorming?

▪ Have you systematically evaluated the alternatives using cost as one criteria?

▪ Is the alternative chosen eligible for funding?▪ Have you considered local funding?



• 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 L/M income

persons?▪ Is quality of life improved?


Sources of Ideas for Project Development

• Local Comprehensive Plan

• Citizen Complaints

• Previous Engineering Studies

• Professional Standards

• City Staff/RDC Staff/Consultant Staff

• Other


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


Deadlines

CDBG Annual Competition

April 1, 2010

RAS Applications, Annual Reports, Renewals

April 1, 2010


Be sure and read the CDBG 2010 Applicants’ Manual

Be sure and request technical assistance!

workshop overview & introduction to georgia’s community development block grant (cdbg)...

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