Oregon Community Development Block Grant Program Becky Baxter and - - PowerPoint PPT Presentation

Becky Baxter and Fumi Schaadt Program Policy Coordinator Infrastructure Division

Oregon Community Development Block Grant Program

OPENING

• Quick welcome - Chris Cummings
• CDBG AAD Charter
• Conflict of Interest
• Meeting Protocol

FORMATION OF THE CDBG ANNUAL ACTION DEVELOPMENT SUB-COMMITTEE

• Objective of Sub-Committee
• CDBG AAD Sub-Committee Members
• Terms of Sub-Committee
• Frequency of meetings

CDBG AAD SUB-COMMITTEE OBJECTIVE

• Objectives

–Assess proposed changes to the MOD. –Regular meetings first part of 2017. –Bring proposed CDBG MOD revisions to Board for approval.

• Terms

–Considered on an annual basis –CDBG AAD Sub-committee member term (2 yrs)

MEMBERS

• Kristin Retherford – Member of the Board acting as liaison between

the Board and the Sub-Committee.

• Jason Green – Executive Director of OAWU.
• Pegge McGuire – current housing manager for Community Services

Consortium (CSC) and past Executive Director of Fair Housing Council of Oregon.

• Wendy Johnson – League of Oregon Cities
• Mike McArthur and Doris Penwell – Association of Oregon

Counties

• Jeremy McVeety –Program Policy Coordinator for Safe Drinking Water

Revolving Loan Fund Program and representing OBDD public finance

• Becky Baxter and Fumi Schaadt – Program Policy

Coordinator for Community Development Block Grant

TIMELINE

• Short term Goal – Amendment to 2017 Method
• f Distribution (MOD)

Completion tasks by end of March (total of 3 meetings)  Presenting to IFA board in April for approval

• Long-term Goal – Annual development of 2018

MOD

Completion of tasks by July (total of 3 meetings) Presenting to IFA board in August for approval

OBJECTIVE OF MEETING

• Introduction to CDBG Program and

the implementation tools

– Consolidated Plan – Method of Distribution – Identifying targets to accomplish for the Short-Term goal

HUD VERSUS STATE RESPONSIBILITIES

• HUD -

– Monitor States to ensure compliance

• State -

– Design the program – Establish funding requirements and Method for Distribution – Selecting recipients (grantees) through competitive process – Financial management, recordkeeping, reporting, monitoring and closeout procedures – Ensuring compliance by grantees

CDBG Implementation Tools

• 2016 – 2020 Five Year Consolidated Plan (ConPlan)

–Intensive public participation process (15 – 20 meetings conducted by OHCS and IFD) –Generally identifies states needs and, based on survey information and market analysis, how the program is anticipated to meet those needs. –Next plan will be submitted to HUD 45 days before next five year period, or by November 15, 2019.

• 2016-2020 Analysis of Impediments to Fair Housing

(AI).

CDBG Implementation Tools

• Annual Action Plan (Method of Distribution (MOD)

– Specific annual update to the ConPlan requiring 30-day public participation process and public hearing. – Describes, in detail (1) Funding categories, (2)Application selection criteria, (3) Targeted funds for each category, and (4) Grant amounts – Incorporated into OAR 123-080-0030(3), by reference – Must be submitted to HUD 45 days before program year commences or by November 15

• Annual CAPER

– Must be submitted to HUD 90 days after program year completion or by March 31.

COMPONENTS OF METHOD OF DISTRIBUTION

• Funding Priorities
• Applicant Eligibility based on the nature of project

types within the funding priorities

• National Objective applicable to the funding

priorities and all projects

• Federal Requirements
• States Policies of implementation
• Application Procedures
• Project eligibility based on funding types

ELIGIBLE APPLICANTS

• Non-entitlement (non-metropolitan) cities and

counties

–Cities less than 50,000 population –Counties less than 200,000 in population

INELIGIBLE APPLICANTS

• Entitlements (Metropolitan) –

–Cities of Albany, Ashland, Beaverton, Bend, Corvallis, Eugene, Grants Pass, Gresham, Hillsboro, Medford, Portland, Redmond, Salem and Springfield –Counties of Washington, Multnomah and Clackamas –Tribes receive their own CDBG allocations from HUD and are not eligible for funding under the State CDBG program.

MAP OF ENTITLEMENT AND NON-ENTITLEMENT

AREAS

Primary Objective of Program The development of viable (livable) communities expanding economic

• pportunities, providing decent housing and a

suitable living environment principally for persons of low and moderate income. Low and Moderate Income (LMI) Area wide, Limited Clientele, Jobs and Housing Elimination of Slum and Blight (S/B) Defined Area Spot Basis Urgent Need (UN) Must be declared disaster, Presidentially or by Governor

NATIONAL OBJECTIVES

ELIGIBILITY FOR CDBG FUNDS

• Two Key Considerations:
• Is the applicant eligible?
• Is the project eligible?
• Answer to both questions must be

YES!

16

ELIGIBLE APPLICANT AND PROJECT

Eligible Applicant Eligible Project Non-Entitlement City or County Meet a national objective No more than three open grants Must meet all MOD requirements for each project type Any open grant must meet the “age and expenditure requirements” (Explained in detail on the next slide) No unresolved performance issues.

AGE AND EXPENDITURE REQUIREMENTS

• Any open grant must meet the following age

and expenditure requirements:

ONE YEAR GRANTS (microenterprise assistance) Requirement Multi – Year Grants (All other grants) Requirement For 2017 if an open grant is: 1 year old (2016 award) Microenterprise Grants – 70% of the funds must be drawn down 2 years old (2015 award) 60% of the funds must be drawn down 2 years old or more (2015 award) Microenterprise Grants – The jurisdiction is ineligible to apply for any new grant unless this project is administratively closed 3 years old (2014 award) 100% of the funds must be drawn down 4 years old or more (2013 award or earlier) The jurisdiction is ineligible to apply for any new grant unless this project is administratively closed.

CURRENT CDBG PROGRAM PRIORITIES

2016 Target % Annual Allocation from HUD 12,055,779 N/A State Administration 2% (The required match for these funds comes from the Special Public Works Fund (SPWF). $241,116 2% State Administration $100,000 - no match funds $100,000 N/A State Technical Assistance Set-Aside 1% $120,558 1% Annual Allocation Available for Projects $11,594,106 Program Income (Note 1) $320 Recaptured Funds $6,386 ESTIMATED TOTAL AVAILABLE FOR PROJECTS $11,600,812 Microenterprise Assistance $232,016 2% Public Works $5,916,414 51% Community/Public Facilities $3,248,227 28% Regional Housing Rehabilitation $2,204,154 19%

CURRENT CDBG PROGRAM PRIORITIES – QUICK GLANCE

–Public Works

• Public water and wastewater system improvements
• Maximum award = $2,500,000
• National Objective is based on the area to be served

being LMI

–Public/Community Facilities

• Projects include Head Starts, Food Banks, Homeless

Shelters, Shelters for Victims of Domestic Violence and Senior Centers

• Maximum award = $1,500,000
• National Objective depends on the type of project

CURRENT CDBG PROGRAM PRIORITIES – QUICK GLANCE

– Housing Rehabilitation Projects

• Grants or loans for single-family, owner occupied housing

rehabilitation

• Maximum award = $400,000 (this is the total award; actual

rehabilitation to homeowner is usually no greater than $25,000.

• National Objective is based on each homeowner being LMI

– Microenterprise Assistance

• Recruitment, screening and providing classroom training to

microenterprise owners and persons developing microenterprises.

• Maximum award = $100,000
• National Objective is based on family size/income. (51% or more of

the persons assisted must be LMI).

FEDERAL REQUIREMENTS

• Tightly intertwining in many aspects of

program implementations such as, but not limited to the following:

– Application eligibility – Project and activities eligibility – Federal Cross-cutting – Citizen participations – Funding obligations – Funding Expenditures

STATE POLICIES AND IMPLEMENTATION

• State is provided allowance in setting means of

enhancements to the program implementation:

– To ensure Federal requirements are achieved and monitored –To ensure the project funded by the program is run successfully

APPLICATION TIMELINE

–Quarterly Competitive Rounds

• First Round – January 1 – March 31; awards

announced by May 31

• Second Round – April 1 – June 30; awards announced

by August 31

• Third Round – July 1 – September 30; awards

announced by November 30

• Fourth Round – October 1 – December 31; awards

announced February 28 of the following year.

–Change in Application Round

APPLICATION PROCESS

– Project Notification and Intake Form (PNIF) – Invited to submit application & applicant provided forms – Submit Application by quarterly deadline – Threshold Review and Rating and Ranking (Scoring) process

• This process involves several staff persons which allows for

a fair and equitable review and scoring process.

– Review of award recommendations by AOC/LOC and Senior Management (Senior Management Review Committee). – Notice of Decision (60 days after application deadline)

SHORT TERM OBJECTIVES

• Chapter 1

– Program priorities – change in allocation percentages

• Chapter 5 –

– Increase activity delivery costs – Definition of “Readiness to Proceed”

• Chapter 7 –

– Adjusting application round to quarterly vs. annually – Fine tuning state policies and processes including rating and ranking criteria and personnel

LONG TERM OBJECTIVES

• Funding priorities allocation proportion for

2018;

• Project type specific adjustments to align to

OBDD strategic planning and the outcome of HUD’s Technical Assistance;

• Domino effect of the adjustments to the

implementation process; and,

• Revamping of the scoring system.

PROPOSED CHANGES – SHORT TERM

Chapter 1:

• Change in target allocation percentages
• Increase Microenterprise Assistance from 2% to

4%

• Decrease Community/Public Facilities from 28%

to 22%

• Increase Housing Rehabilitation from 19% to 23%
• Public Works remains the same at 51%

PROPOSED CHANGES – SHORT TERM TARGET ALLOCATIONS

2016 Target % 2017 Target % Annual Allocation from HUD 12,055,779 N/A $12,055,779 N/A State Administration 2% (The required match for these funds comes from the Special Public Works Fund (SPWF). $241,116 2% $241,116 2% State Administration $100,000 - no match funds $100,000 N/A $100,000 N/A State Technical Assistance Set-Aside 1% $120,558 1% $120,558 1% Annual Allocation Available for Projects $11,594,106 $11,5941,106 Program Income (Note 1) $320 $0 Recaptured Funds $6,386 $100,000 ESTIMATED TOTAL AVAILABLE FOR PROJECTS $11,600,812 11,694,106 Microenterprise Assistance $232,016 2% $467,764 4% Public Works $5,916,414 51% $5,963,994 51% Community/Public Facilities $3,248,227 28% $2,572,703 22% Regional Housing Rehabilitation $2,204,154 19% $2,689,644 23%

PROPOSED CHANGES – SHORT TERM DELIVERY COSTS / READINESS TO PROCEED

Chapter 5:

–Activity Delivery Costs, specifically Grant (Project) Administration/ Environmental Review/ Labor Standard Compliance/ Program Management Services (Page 5-2) –Readiness to Proceed definition

PROPOSED CHANGES – SHORT TERM ACTIVITY DELIVERY COSTS

ACTIVITY ALLOWANCE Grant Administration for Public Works and Community Facility projects only 10% up to a maximum of $35,000 Grant Administration for Housing Rehabilitation projects only 10% up to a maximum of $25,000 Federal Labor Standards Compliance Up to a maximum of $20,000 per project Environmental Review Up to a maximum of $20,000 per project Legal Fees There is no maximum limit Audit Costs Refer to Page 5-1 for details Limited English Proficiency Translation Services Up to a maximum of $3,000 per project Cultural Resource Monitoring There is no maximum limit Funding Application Preparation (Public Works Water and Sewer only) Up to a maximum of $7,500 per project Property Appraisal Fees There is no maximum limit Construction Contingency Capped at 10% of the estimated construction cost Architectural 12 percent of project construction and construction contingency costs combined Engineering 20 percent of project construction and construction contingency costs combined Program Management (Only applies to housing rehabilitation projects) Up to 20% of the requested grant, plus $20,000. This includes the $25,000 allowance for grant administration. Under rare circumstances, for projects involving biological assessments, archeological surveys or other required environmental studies, the department may allow the recipient to use a portion of the grant administration allowance to complete these activities. The costs must be required and reasonable, approved by OBDD-IFA and are limited by the amount of funds available in the recipient’s grant award.

PROPOSED CHANGES – SHORT TERM READINESS TO PROCEED

–Readiness to Proceed definition

• Funds available to complete project
• “External” funds
• “Internal” funds
• Project will commence within four (4) months

following date of contract execution.

• Further define and refine definition
• Sanctions

PROPOSED CHANGES – SHORT TERM APPLICATION PROCEDURES AND SCORING CRITERIA

Chapter 7:

–Application Timeline –Project Need and Solution –Readiness to Proceed –Rating and Ranking criteria

PROPOSED CHANGES – SHORT TERM APPLICATION PROCEDURES AND SCORING CRITERIA

Application Timeline

–Move from quarterly to yearly application cycle

• Timing – July, August or September
• “Optional” round if funds available (funds

returned/recaptured from previously awarded projects, etc.)

• Application process must remain as a competitive

process.

PROPOSED CHANGES – SHORT TERM APPLICATION PROCEDURES AND SCORING CRITERIA

Need for Project:

–Break out “Project Need and Solution” and “Financial Need” into two categories. –Increase Project Need and Solution to 100 points; keep Financial Need at 20 points. –Tangible and Quantifiable information in application.

PROPOSED CHANGES – SHORT TERM APPLICATION PROCEDURES AND SCORING CRITERIA

Readiness to Proceed:

–Reflect changes made in Chapter 5 under “Readiness to Proceed” definition. –Project will commence within 4 months of grant contract execution

• Clearly defined
• Consequences clearly laid out

PROPOSED CHANGES – SHORT TERM APPLICATION PROCEDURES AND SCORING CRITERIA

Readiness to Proceed:

Readiness to Proceed Maximum Possible Points External funds needed to complete the project are available and committed. Applicant has clearly documented that the project will commence within four (4) months from grant contract execution. 30 points Internal funds (Safe Drinking Water Revolving Loan Fund, Water/Wastewater, etc.), other than CDBG, needed to complete the project are available and committed at the time of CDBG application submission. Applicants or IFA personnel must provide a copy of the Staff Recommendation at application submission showing other Business Oregon funding have gone through, at a minimum, the underwriting process and been approved for funding. 25 points Necessary funds are not committed but applicant has received an exception from OBDD. Applicant has clearly documented that the project will commence within four (4) months from grant contract execution. 15 points Applicant is requesting CDBG funds only. 5 points