2013 CDBG Applicants’ Workshop Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program

2013 CDBG Applicants’ Workshop

Workshop Overview&

Introduction to Georgia’s Community Development Block

Grant (CDBG) Program

Page 22013 CDBG Applicants’ Workshop

Community Finance Division

Review of Binder and CD

• Binder includes

• DCA Web Site will include

December 12-14, 2012



Conference Overview

• Boot Camp and Basic Application Development

• Concurrent Sessions – Application Development




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




Conference Overview

• Revisions to Strategy Criterion

• Water & Sewer Rates Dashboards

• Local Ordinances/Code Enforcement

• Project Showcase

• Wrap Up




Our Mission

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

• Why is this important?




Introduction to CDBG

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

created the CDBG program




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




LMI National Objective

• Low- and moderate-income person means…▪ Those families at 80 percent or less of

Area Median Income (AMI)




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)




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.




LMA (cont.)


Area of Non-benefit

Area Boundary Water Improvement Area of Benefit

&TA Population of at least 70% LMI

Target Area

Area of Benefit



LMA (cont.)


Water ImprovementArea of Benefit – 50% LMI

Target Area Boundary

TA Population of at least 70% LMI

Target Area

Area of Benefit



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




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




CDBG L/M Housing Benefit (LMH)

• 100% Benefit to L/M Households




CDBG LMI Jobs Benefit

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

LMI 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




Summary of National Objectives

• LMI▪ LMA▪ LMC▪ LMH▪ LMJ

• Slum and Blight

• Immediate Threat & Danger




Eligible Applicants

• Non-entitlement Local Governments• Generally

▪ Cities < 50,000

▪ Counties < 200,000

▪ There are exceptions!

▪ See the Manual & DCA




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




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.




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 2013 Applicants’ Manual• www.hud.gov• http://portal.hud.gov/hudportal/HUD?src=/pr

ogram_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)


http://www.hud.gov/

http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/toolsandproducts



http://www.ecfr.gov/cgi-bin/ECFR?page=browse

http://www.ecfr.gov/cgi-bin/ECFR?page=browse



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 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




Maximum Grant Amounts

• Single-Activity $500,000

• Multi-Activity $800,000




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



Community Finance DivisionMethod of Distribution – Rating & Selection

Demographic Need - absolute number in poverty40

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




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?





• 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?





• Strategy▪ Addressed possible alternatives for meeting

needs?

▪ Considered ongoing maintenance/prevention?

▪ Have you considered local funding?

▪ Are you a Qualified Local Government?




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




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!




Sources of Ideas for Project Development

• Local Comprehensive Plan• Citizen Complaints• Previous Engineering Studies• Professional Standards• City Staff/RC 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

• Discuss project with DCA Staff




Deadlines

CDBG Annual Competition

April 1, 2013

RAS Applications, Annual Reports, Renewals

April 1, 2013





Documents

2013 CDBG Applicants’ Workshop Workshop Overview & Introduction to Georgia’s Community Development Block Grant (CDBG) Program