2014 CDBG Applicants' Workshop
2014 Applicants’ Workshop Overview
&Introduction to Georgia’s
Community Development Block Grant (CDBG) Program
Page 22014 CDBG Applicants' Workshop
Community Finance Division
Review of Binder and CD
• Binder includes
• DCA Web Site will include
December 11-13, 2013
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Community Finance Division
Conference Overview
• Boot Camp and Basic Application Development▪ Gaining competitive advantage
• Concurrent Sessions – Application Development
December 11-13, 2013
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Community Finance Division
Conference Overview
• Concurrent Sessions – Examples of Successful Applications (Guest Speakers)
• Project Showcase – Madison, GA (Guest Speaker)
• One-on-One Technical Assistance/Resource Tables
December 11-13, 2013
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Community Finance Division
Conference Overview
• Guest Speaker – Asset Management
• FHEO Presentations
• Guest Speaker – State 504 Coordinator
• Wrap Up
December 11-13, 2013
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Community Finance Division
Our Mission
• Discuss the fundamentals of CDBG as preparation for review of DCA forms 1 – 13 and Compliance Overview
• Briefly discuss what’s new
December 11-13, 2013
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Community Finance Division
Introduction to CDBG
Title 1 of the Housing and Community Development Act of 1974, as amended,
created the CDBG program
December 11-13, 2013
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Community Finance Division
Introduction to CDBG
• The primary objective of the HCDA is ▪ development of viable communities by the
provision of decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low- and moderate- income.
December 11-13, 2013
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Community Finance Division
Introduction to CDBG
Further, HCDA identifies three National Objectives
▪ LMI Benefit▪ Removal of Slum and Blight▪ Immediate Threat and Danger
December 11-13, 2013
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Community Finance Division
LMI National Objective
• Low- and moderate-income person means…▪ Those families at 80 percent or less of
Area Median Income (AMI)
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
LMA (cont.)
December 11-13, 2013
Area of Non-benefit
Area Boundary Water Improvement Area of Benefit
&TA Population of at least 70% LMI
Target Area
Area of Benefit
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Community Finance Division
LMA (cont.)
December 11-13, 2013
Water ImprovementArea of Benefit – 50% LMI
Target Area Boundary
TA Population of at least 70% LMI
Target Area
Area of Benefit
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Community Finance Division
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 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
CDBG L/M Housing Benefit (LMH)
• 100% Benefit to L/M Households
December 11-13, 2013
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Community Finance Division
CDBG LMI Jobs Benefit
• For Economic Development Projects▪ 51% of jobs must be held or made available to
LMI persons
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
Summary of National Objectives
• LMI▪ LMA▪ LMC▪ LMH▪ LMJ
• Slum and Blight
• Immediate Threat & Danger
December 11-13, 2013
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Community Finance Division
Eligible Applicants
• Non-entitlement Local Governments• Generally
▪ Cities < 50,000
▪ Counties < 200,000
▪ There are exceptions!
▪ See the Manual & DCA
December 11-13, 2013
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Community Finance Division
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 2014 Applicants’ Manual
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
Resources
• CDBG 2014 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)
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
Method of Distribution
Award From HUD—FY 2013 Example
• Total Award -- $37,110,886• Available for Annual Competition $25,897,559+• Employment Incentive Program $8,000,000• The Redevelopment Fund $1,500,000• Immediate Threat & Danger Program $500,000
December 11-13, 2013
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Community Finance Division
Maximum Grant Amounts
• Single-Activity $500,000
• Multi-Activity $800,000
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
Page 302014 CDBG Applicants' Workshop
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
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
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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 11-13, 2013
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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 11-13, 2013
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Community Finance Division
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, results measures and timeframes are important
December 11-13, 2013
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Community Finance Division
Changes for 2014
• Appendix R▪ Revised Section 3 Policy▪ Language Access Plan
• Updated Compliance Section of Manual▪ FHEO
• Section 3• Affirmatively Furthering Fair Housing• Limited English Proficiency (when applicable)• 504 – especially for Buildings
December 11-13, 2013
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Community Finance Division
Changes for 2014
• Buildings/Limited Clientele Projects
• Other Items▪ Provide source information on maps▪ Use new sample Public Hearing Notice
• Timeliness requirements have not changed!
December 11-13, 2013
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Community Finance Division
Sources of Ideas for Project Development
• Local Comprehensive Plan• Citizen Complaints• Previous Engineering Studies• Professional Standards• City Staff/RC Staff/Consultant Staff • Other
December 11-13, 2013
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Community Finance Division
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 11-13, 2013
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Community Finance Division
Deadlines
CDBG Annual Competition
April 1, 2014
RAS Applications, Annual Reports, Renewals
April 1, 2014
December 11-13, 2013
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Community Finance Division
December 11-13, 2013