FY 2019 CDBG RFQ Workshop: Are You CDBG-Ready? Valencia - - PowerPoint PPT Presentation

FY 2019 CDBG RFQ Workshop: Are You CDBG-Ready?

Valencia Park/Malcolm X Branch Library September 27, 2017 Economic Development

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Welcome!!

• Statement of Purpose
• Introductions
• Topics to Be Covered:
• Aligning with City’s goals and objectives
• Prescreening for Capacity
• Upcoming CDBG Funding Opportunities
• Tips and Tricks
• ED Grants Demo

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City of San Diego Strategic Plan

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City of San Diego Strategic Plan

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City of San Diego Organization

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Economic Development Department

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Economic Development Department Mission

To cultivate economic and community development

• pportunities that serve

businesses, neighborhoods, and residents

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Take a Moment

How does your

• rganization’s mission

align with the City’s goals?

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What exactly is “CDBG”?

Acronym

• Community Development Block Grant

Primary Objectives

• Improve living environment
• Expand economic opportunities
• Provide decent housing

Low/moderate-income residents and areas

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Where does the money come from?

• Federal entitlement program

established by Housing & Community Development Act of 1974

• Administered by U.S. Department of

Housing and Urban Development (HUD)

• Regulations found in 24 CFR Part 570

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CDBG Flexibility by Design

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Sequence

RFQ RFP CPAB Council

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Schedule of Opportunities

Oct‒Nov

• CDBG RFQ released and responses due to City via ED Grants
• Organizations determined “qualified” or “not qualified”
• “Qualified” organizations invited to participate in CDBG RFP process

Nov‒Apr

• CDBG RFP released and responses due to City via ED Grants
• Consolidated Plan Advisory Board (CPAB) reviews project proposals
• City Council approves CDBG allocations and Annual Action Plan

Apr‒Jun

• Awarded CDBG projects begin scope development and budget review for

agreement execution

• Agreements distributed for execution via ED Grants

Jul‒Sep

• CDBG project implementation begins
• CDBG reporting requirements begin, and reports submitted via ED Grants

(technical assistance provided to CDBG subrecipients)

NOTE: City Fiscal Year from July 1 through June 30

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RFQ (Prescreening)

When responding to the CDBG Request for Qualifications (RFQ), your organization will need to provide information, such as:

• Organization Info: EIN, DUNS, address, board of

directors, and contacts

• Mission Statement
• Organizational Experience and Major

Accomplishments (serving LMI clients or communities)

• Annual Operating Budget and Revenue/Income
• Cash Balance from Audited Financial Statements

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RFQ (Prescreening)

Organizations that want to partner with the City are required to demonstrate their charity registration (nonprofits only) and various status:

• California Department of Justice Charity Registration

http://rct.doj.ca.gov Status Needed: Current (Nonprofits Only)

• California Department of Industrial Relations

http://www.dir.ca.gov/dlse/debar.html Status Needed: Organization Not Listed as Debarred

• California Secretary of State

https://businesssearch.sos.ca.gov/ Status Needed: Active

• System for Awards Management (SAM)

http://www.sam.gov Status Needed: Active and No Results for Debarment/Suspension

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RFQ (Prescreening)

DUNS Number: Dun & Bradstreet (D&B) provides a DUNS number, a unique 9-digit identification number, for each physical location of your organization. DUNS number assignment is FREE for all organizations required to register with the U.S. federal government for contracts or grants. Applicants must have a DUNS number registered in www.sam.gov with an ACTIVE registration status.

• Apply here:

http://fedgov.dnb.com/webform/index.jsp

• Learn more here:

http://fedgov.dnb.com/webform/displayFAQPage.do or https://www.sam.gov/sam/SAM_Guide/SAM_User_Guid e.htm

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RFQ (Prescreening)

Audit Certificate of Compliance 2 CFR Part 200 Subpart F (supersedes OMB Circular A-133)

• Single or Program-Specific Audit (if applicable)

 Organization expended $750,000 or more in federal funds  Most recently completed fiscal year with end date of 06/30/2016

• r later

 Submitted to and accepted by Federal Audit Clearinghouse (FAC)

• Audited Financial Statements

 Fiscal year with end date of 06/30/2016 or later  Unqualified/unmodified opinion  Cash balance from Balance Sheet will be used to calculate ‘Maximum Funding Request Threshold’

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Three-Month Cash Reserve Recommendation

• CDBG works on a reimbursement basis
• Your organization’s cash reserve should be sufficient to cover three (3)

months of operations to be a successful CDBG subrecipient

Month 1 Organization spends funds. Month 2 Organization prepares reports to submit reimbursement request to the City, including supporting documentation. Month 3 City completes review of reimbursement request and processes reimbursement payment to

• rganization.

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RFQ (Prescreening) Maximum Funding Request Threshold

• Determined by Cash Balance from Audited

Financial Statements (multiplied by 4)

• Amount confirmed in RFQ determination

notice (“qualified” or “not qualified”)

• Amount limited by overall budget for each

RFP project category

• Amount applies to all of organization’s RFP

responses combined

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RFQ (Prescreening)

Internal Controls

• No single person should have sole authority over all steps of

financial or budget transaction

• Clearly outline roles and responsibilities
• If funded, organization will be required to submit its written internal

control procedures and, if necessary, update them to conform with federal standards Procurement Methods

• Ensure fair and open competitive process
• Ensure fair market pricing and comply with all governing regulations
• Purchases made with federally awarded funds must be made with
• ne of the five (5) procurement methods outlined by HUD

regulations (2 CFR Part 200)

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RFQ (Prescreening)

Certifications

• Lobbying
• Debarment, suspension, proposed debarment, ineligibility, and
• ther responsibility matters
• Drug-free workplace
• Civil Rights Act and ADA compliance
• Conflict of interest and procurement policy compliance

Additional Documents

• Organization federal/state tax determination letters (nonprofits)
• Organization charts
• www.sam.gov registration and status screenshot (DUNS number)
• Federal Audit Clearinghouse (FAC) acceptance of single or program-

specific audit (if applicable) screenshot

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RFQ (Prescreening): Choose Your Track

Standard Track

• Established organizations of any type
• Audited financial statements required
• Can apply under any or all RFP categories
• Can request funding amount up to ‘Maximum Funding Request

Threshold’ or RFP category budgets (whichever is less)

Capacity Building Track

• Small/emerging nonprofit organizations only
• 2016 tax return required in lieu of audited financial statements
• Total FY 2016 revenue/income cannot exceed $500,000
• Letters of reference required
• Total $50,000 allocation to obtain audited financial statements and

implement public services project

• Must attend 6-month USD nonprofit capacity building program

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Beware!!

Your organization must choose which appropriate track/NOFA to follow ahead of time. Switching tracks will not be permitted once the RFQ application has been submitted.

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Common RFQ Disqualifiers

 Incorrect Audit Certificate of Compliance response  Correct single or program-specific audit, when required, was not submitted or does not meet all requirements  Audited financial statements not submitted (if applicable) or do not meet all requirements  Weaknesses in internal controls and/or procurement method  State of California and/or federal debarment  Wrong attachments in ED Grants or wrong RFQ track/NOFA selected NOTE: ED Grants Will Check for Following:

• Organization’s ‘Maximum Funding Request Threshold’ is at least

$50,000 as required by Council Policy 700-02

• DUNS number is registered/active in www.sam.gov (screenshot)

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A Word on Timeliness…

• Entitlement jurisdictions are required to use

their CDBG funds in a timely manner

• HUD timeliness standard = no more than 1.5

times the entitlement amount

• Unspent subrecipient funds can place the

entire CDBG program into noncompliance

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Date of Test Grant Amount Ratio < 1.5

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City Strategy

• Select organizations with capacity
• Contractual timeliness requirements
• Sanctioning untimely subrecipients

What Can You Do (If Awarded)?

• Identify cause of any backlog
• Identify actions to take and expected results
• Develop a milestone schedule and

expenditure projection

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Take a Moment

Is your proposed project CDBG-eligible?

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Sequence

RFQ RFP CPAB Council

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CDBG National Objectives

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Consolidated Plan

• Informs HUD and

community how City plans to invest its CDBG funds over course of five years

• Identifies six goals

toward which CDBG funds may be invested

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Consolidated Plan Goals

1

• Enhance the City’s economic stability and prosperity by

increasing opportunities for job readiness and investing in economic development programs.

2

• Strengthen neighborhoods by investing in the City’s critical

infrastructure needs.

3

• Improve housing opportunities by creating and preserving

affordable rental and homeowner housing in close proximity to transit, employment, and community services.

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Consolidated Plan Goals

4

• Assist individuals and families to stabilize in permanent housing after

experiencing a housing crisis or homelessness by providing client-appropriate housing and supportive service solutions.

5

• Invest in community services and nonprofit facilities that maximize impact by

providing new or increased access to programs that serve highly vulnerable populations such as youth, seniors, and food-insecure households.

6

• Meet the needs of persons with HIV/AIDS and their families through the

provision of housing, health, and support services.

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Consolidated Plan Budget Priorities

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RFP Funding Categories

• Public Services
• Community/Economic Development
• Microenterprise Assistance
• Construction (Brick & Mortar)
• Nonprofit Facility Improvements
• Housing Rehabilitation
• Sustainability Rehabilitation/Improvements
• NEW! Small/Emerging Organization

Capacity Building/Public Services

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Public Services

Eligible Activities

• Employment training
• Senior services*
• Health Services
• Homeless services
• Disability services*
• Domestic violence services
• Tenant/landlord counseling
• Substance abuse services
• Mental health services
• Housing counseling
• Food banks/meal distribution

Minimum Allocation

• $50,000

Outcome Measures Low/moderate‐income clientele

*Presumed LMI possible

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Community/Economic Development

Eligible Activities

• Microenterprise assistance
• Direct homeownership financial assistance
• Closing cost assistance
• Down payment assistance

Minimum Allocation

• $50,000

Outcome Measures Low/moderate‐income clientele (microenterprise) Low/moderate‐income households (direct homeownership)

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Nonprofit Facilities/Housing Rehabilitation

Eligible Activities

• New construction or

rehabilitation of public facilities

• ADA improvements
• Health/safety hazards

Examples: Senior and youth centers; homeless, neighborhood, and health facilities

• Single‐unit residential rehab
• Owner‐occupied
• Non‐sustainability scope
• Multi‐unit residential rehab
• Rental housing
• Non‐sustainability scope

Minimum Allocation

• $100,000

Outcome Measures Low/moderate‐income clientele Low/moderate‐income households Low/moderate‐income area (if primarily residential and benefitting all residents)

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Sustainability Rehabilitation

Eligible Activities

• Residential rehab
• Owner‐occupied/rental

Examples:  Solar installation  Effective insulation systems  High‐performance windows and doors  Water leak repairs

• New construction or

rehabilitation of public facilities  Tight construction and ducts  Efficient heating and cooling  Energy Star–certified lighting  Water‐saving faucets, shower heads, toilets Minimum Allocation

• $100,000

Outcome Measures Low/moderate‐income clientele Low/moderate‐income households Low/moderate‐income area (if primarily residential and benefitting all residents)

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Public Services: Small/Emerging Organizations

Estimated Budget $500,000 Eligible Activities

• Employment training
• Senior services*
• Health Services
• Homeless services
• Disability services*
• Domestic violence services
• Tenant/landlord counseling
• Substance abuse services
• Mental health services
• Housing counseling
• Food banks/meal distribution

Preset Allocation $50,000 for each organization selected (10 awards maximum) to cover audited financial statements and public services project implementation; mandatory attendance at nonprofit boot camp Outcome Measures Low/moderate‐income clientele

*Presumed LMI possible

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Next Steps Date Step

10/02/2017 RFQ released via ED Grants 10/04–20/2017 Technical assistance appointments available 11/03/2017 RFQ responses due in ED Grants 11/17/2017 Organizations notified of “qualified” or “not qualified” status 11/27/2017 RFP released via ED Grants to “qualified” organizations only 01/16/2018 RFP responses due in ED Grants 01/29–03/08/2018 CPAB review and scoring of applications 04/2018 Council approval of FY 2019 allocations 07/01/2018 Start of FY 2019 project implementation

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Tips and Tricks

• Register your organization in ED Grants early and become familiar

with how it works

• Choose one person to be the lead contact at your organization
• Read all instructions and resources before calling City staff with

questions

• But if you have questions, call or email; staff is here to help!
• Take advantage of opportunities to get help, such as TA sessions,
• ffice hours, etc.
• Start the process early and allow enough time to review the quality

and correctness of the required documents before submission

• Have someone proofread and review your organization’s

application

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Resources

• FY 2018 Operating Manual
• Playing by the Rules Handbook by HUD
• CPD Income Eligibility Calculator
• 2 CFR Part 200.302 (Financial Management)

2 CFR Part 200.303 (Internal Controls)

• HUD Financial Management Curriculum
• ED Grants “Resources” Tab

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CDD Technical Assistance Appointments

• Visit www.sandiego.gov/cdbg to view available slots
• Call (619) 236-6700 to schedule your appointment; only
• ne 30-minute appointment per organization allowed
• Provide the following when scheduling your

appointment:  Contact name, telephone, and email  Names and titles of attendees  General topics to be covered

• Quick questions should instead be emailed to

CDBG@sandiego.gov

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Q&A

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ED Grants Demo

• How to Register an Organization
• How to Submit an RFQ Response

http://edgrants.force.com