Community Development Block Grant (CDBG)

ProgramDan NarberIowa Economic Development Authority

Community Development Block Grant Program

» Receive Approximately $22 Million Annually» U.S. Department of Housing and Urban Development» Anticipated Program Budget Cuts

» CDBG funding declined $7.5 million or 26% decrease since 2010

2010 Allocation = $28,51 Million2011 Allocation = $23,87 Million2012 Allocation = $21.05 Million

De-Obligated CDBG Funds

» Tornado & Wind Damage Assistance Program– $4.4 Million to Monona, Cherokee, Benton, Ida, Taylor, and Tama Counties

» Technical Assistance– Stormwater workshops, planning/public participation workshops, studies

» Sustainable Community Demonstration Projects– District geo-thermal in West Union, urban stormwater management in Belle Plaine

» Downtown Revitalization– Façade Master Plan, Neighborhood Facilities Projects– 20 Active projects - $9.8 Million– Applications due in January

CDBG Economic Development Programs» Economic Development Set-Aside (EDSA)

– For-profit loan assistance tied directly to job creation– Maximum $10,000 per job, maximum award $1 million– 51% of jobs must be LMI– No match requirement, but an evaluation criteria– Jobs must meet or exceed 90% regional wage

» Public Facilities Set-Aside (PFSA)– Assistance to cities/counties for infrastructure that will lead to job creation– Maximum $10,000 per job, maximum award $500,000– 51% of jobs must be LMI– 50% local match required– Jobs must meet or exceed 90% regional wage

» Career Link – job training program

Sustainable Community Demonstration and Downtown Revitalization Purposes

» Assist communities in demonstrating innovative, cutting edge solutions to making Iowa’s communities more environmentally, economically, and culturally viable

» Innovative, out-of-the-box, comprehensive, and replicable approaches to sustainability

Sustainable Community Demonstration and Downtown Revitalization

» Sustainable Community Demonstration Projects– Funds are made available through IDED’s Contingency Fund

• 5% of CDBG’s annual allocation• usually funds Opportunities and Threats activities

» Downtown Revitalization Projects– Funds are made available through the deobligation of federal funds through

IDED’s competitive program– Needs to be part of a comprehensive downtown revitalization plan

2012 Program Year Funding

» Water/Sewer• 60 Applications for $18.9 Million• 25 Awards for $15.1 Million• Leveraged $10.8 Million in Local Funds

» Community Facilities an Services• 19 Applications for $7.1 Million• 5 Awards for $2.4 Million• Leveraged $2.7 Million in Local Funds

2011 Program Year Funding

» Water/Sewer• 64 Applications for $19.6 Million• 45 Awards for $15.1 Million• Leveraged $31.5 Million in Local Funds

» Community Facilities an Services• 14 Applications for $5.6 Million• 8 Awards for $2.8 Million• Leveraged $2.6 Million in Local Funds

2010 Program Year Funding

» Water and Sewer Fund– 79 Applications for $26.1 Million– 34 Awards for $11.8 Million– Leveraged $52 Million in Local Funds

» Community Facilities and Services Fund– 12 Applications for $5.2 Million– 4 Awards for $2.1 Million– Leveraged $4.4 Million in Local Funds

National Objective

» All Projects Must Meet National Objective» Primarily Benefit Persons of Low and Moderate Income (LMI)

– 51% of Those Benefitting Must be LMI– Based on 80% of Median Family Income by Household Size

State of Iowa CDBG Program

» Competitive Program– Water/Sewer Fund– Community Facilities and Services Fund

» Housing Fund» Job Creation, Retention, and Enhancement Fund» Contingency Fund

CDBG FundEligible Applicants

» Cities Under 50,000» All Counties» Eligible Applicants Can Apply on Behalf of a Non-Profit

Grant Ceilings

» 0-999 $300,000*» 1,000-2,499 $500,000» 2,500-14,999 $600,000» 15,000-49,999 $800,000

*Maximum $1000 Per Person

CDBG FundEligible Costs

» Architectural and Engineering Fees» Acquisition» Construction» Expansion» Renovation» Administration

Water and Sewer Fund Application Review Criteria

» Need for the Project» Timely Start and Completion» Local Funds Leveraged» Cost Per Beneficiary» Best Long Term Option» Affordability

Readiness Requirements

» Procurement of Engineer Prior to Submittal of Application» Submittal of Application to Other Funding Agencies by CDBG Due

Date» Submittal of Approvable PER to DNR by CDBG Due Date For All

Projects» Submittal of Approvable PER to USDA» Submittal of Approvable PER With CDBG Application

Community Facilities & Services FundApplication Review Criteria

» Need for the Project» Timely Start and Completion» Local Funds Leveraged» Cost Per Beneficiary» Capacity to Operate Facility» Amount of Local Funds Committed or Secured» Percentage of Low and Moderate Income Persons Being Served» Will Meet National Objective After Completion

Readiness Requirements

» Submittal of Application to Other Funding Agencies by CDBG Due Date

» Documentation of Prior Planning» Documentation of Signed Agreements or Commitments for all

Entities

Federal Requirements

» CDBG recipients must comply with:– Procurement Requirements of 24 CFR Part 85.36– NEPA Act of 1969 and Environmental Review Requirements

of 24 CFR Part 58• Upfront Review of Environmental Assessments

– Labor Standards Compliance: Davis-Bacon and Related Acts– Acquisition Regulations for Project Site and Easements– Civil Rights and Fair Housing Requirements

Coordination with other Agencies

» Jointly funded projects– USDA Rural Development– Iowa Department of Natural Resources– Coordination Meetings to Discuss Projects– Valuable Resources for Information and Technical Details

Funding Cycle

» August - Application Workshop» Nov./Jan. - Applications Due» March - Awards» April - Recipient Workshop

CDBG Process Changes

» Online Application Process» IowaGrants.gov» Will Use for Complete Process

– Application to Project Close-out– Drawing Funds– Amendments– Reporting

Current Funding Cycle

» 2013 Program Year– Water/Sewer Fund

• 67 Applications Received• Requesting $22.6 Million

– Community Facilities and Services Fund• 9 Applications Received• Requesting $4.6 Million

CDBG Program Contacts

Dan Narber, Project Manager

515.725.3072dan.narber@iowa.gov