2020 Grant Application Workshop COMMUNITY DEVELOPMENT BLOCK GRANT
2020 Grant Application Workshop COMMUNITY DEVELOPMENT BLOCK GRANT HOME INVESTMENT PARTNERSHIP PROGRAM
What is the Community Development Program? �The U. S. Department of Housing & Urban Development awards grant money to cities and counties for a number of programs, including: �Community Development Block Grant (CDBG) �HOME Investment Partnership Program (HOME)
What is the Purpose of the Program? �To assist in: Providing decent affordable housing Providing a suitable living environment Enhancing economic opportunities �Primarily for low to moderate income residents Extremely Low Income = 30% of Median Family Income Low Income = 50% of Median Family Income Moderate Income = 80% of Median Family Income �Median Family Income in Amarillo = $66, 900* *Update Expected in April 2020
Who are Low to Moderate Income? � 1 Person Household � 2 Person Household � 3 Person Household � 4 Person Household � 5 Person Household � 6 Person Household � 7 Person Household � 8+ Person Household Less than $38, 150 >$43, 600 >$49, 050 >$54, 500 >$58, 900 >$63, 250 >$67, 600 >$71, 950 *Update Expected in April 2021
How Much Does Amarillo Receive? �*FY 2020 Estimated Available Funding: � CDBG = $1, 695, 572 15% Cap on Public Services = $254, 335. 80 20% Cap on Administration = $339, 114. 40 � HOME = $721, 116 10% Cap on Administration = $72, 116. 60 15% Designated for CHDO’s = $108, 167. 40 *Based on expected FY 2020 Allocations
How can the CDBG Funds be Spent? �Improving infrastructure, parks & community buildings in eligible neighborhoods �Providing public services for low to moderate income residents �Improving housing through rehabilitation or new construction �Providing code enforcement in eligible neighborhoods
2020 Priority Needs based on new 2020 -2024 Consolidated Plan. FUNDS SHOULD BE USED TO PREVENT, PREPARE FOR, OR RESPOND TO THE CORONAVIRUS PANDEMIC IN OUR COMMUNITY. THE HOMELESS POPULATION • TENANT BASED RENTAL ASSISTANCE
National Objectives �CDBG Projects Must Meet One of the National Objectives: Benefit to low-moderate income persons Eliminate slum and blight Meet an urgent need (i. e. natural disaster)
Benefit to Low-Moderate Income Persons �Low-Mod Income Area Benefit (i. e. a neighborhood) �Low-Mod Income Limited Clientele (i. e. specific households) �Low-Mod Income Housing �Low-Mod Income Jobs
Low-Moderate Income Area Benefit �The activity must be available to benefit ALL residents of an area which is primarily residential. �At least 51% of residents must be low-mod income persons. Typical area benefit activities include: • • • Street Improvements Park Improvements Water and Sewer Lines Neighborhood Facilities Façade improvements in neighborhood commercial districts
Community Development Target Area
Low-Moderate Income Area Benefit �MUST DOCUMENT � Boundaries of the service area and the basis for determining those boundaries. � The percentage of low-mod income persons in the service area and the data used for determining that percentage.
Low-Moderate Income Limited Clientele �An activity which provides benefits to a specific group of persons rather than everyone in an area generally. � May benefit particular persons without regard to the area in which they reside, or � May be an activity which provides benefit on an area basis but only to a specific group of persons. At least 51% of the beneficiaries of the activity must be lowmoderate income persons.
Low-Moderate Income Limited Clientele �To qualify under this category, a limited clientele activity must meet one of the following tests:
Low-Moderate Income Limited Clientele � 1. Exclusively benefit a clientele who are generally presumed by HUD to be principally low-mod income persons, including the following groups: Homeless persons Elderly persons Battered spouses Abused children Adults meeting the Bureau of Census definition of severely disabled persons* Illiterate adults Persons living with HIV/AIDS Migrant Farm workers *CFR § 570. 208 (a)(2)(i)(A)
Low-Moderate Income Limited Clientele � 2. Document family size and income of ALL persons served so it is evident that at least 51% of the clientele are persons whose family income does not exceed the low-moderate income limit.
Low-Moderate Income Limited Clientele � 3. Be of such a nature and in such location that it may reasonably be concluded that the activity’s clientele will primarily be lowmoderate income persons. � 4. An activity that removes material or architectural barriers to the mobility or accessibility of elderly persons or severely disabled adults.
Low-Moderate Income Limited Clientele �REQUIRED DOCUMENTATION Documentation that the activity is designed to be used exclusively by a segment of the population presumed to be low-mod income as defined by HUD, or Documentation describing how nature/location of activity will be used predominantly by low-mod income persons, or Data showing size and annual income of the family of each person receiving the benefit, or Data showing that barriers to mobility or accessibility have been removed.
Low-Moderate Income Limited Clientele �Some examples of qualifying activities include: � Renovation of a senior center � Public services for the homeless � Assistance to low-mod income persons developing a microenterprise � Homebound meal delivery for the elderly � After school/summer recreation programs for low-mod income youth � Renovation of job training facilities for severely disabled adults
Low-Moderate Income Housing �Acquisition, construction, or improvement of permanent residential structures that are occupied by low-mod income persons. � Housing may be either owner or renter occupied and may be single or multi-unit structures. � Must comply with Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 (CFR § 92. 353)
Low-Moderate Income Jobs �An activity that creates or retains permanent jobs at least 51% of which are either held by low-mod income persons or considered available to low-mod income persons. �Examples of Eligible Activities: Construction of a business incubator designed to offer space and assistance to new small businesses to help them survive or expand, Loans to help finance the expansion of a plant or factory, Financial assistance to a business which has publically announced its intention to close, and to help it update its machinery and equipment instead, Improvement of public infrastructure as needed by a company to comply with environmental laws to avoid closure.
CDBG Subrecipients �Funding is given on a reimbursement basis. �Activities awarded CDBG funds must submit monthly invoices to the Community Development Department with documentation of the activity’s expenditures before reimbursement. �Activities must set performance objectives and report progress against benchmarks.
CDBG Subrecipients �Structural Improvement Projects: � The structure must be maintained in good condition and for the same purpose/function for a period of 10 or 20 years following completion of construction � Subrecipient must maintain and provide documentation of a reserve fund for the cost of the project to be amortized annually over the anticipated useful life of the project. � Vacating the structure or altering its function before the expiration of 10 or 20 years will result in recapture of the project costs.
How Can HOME Funds Be Spent? �Usually in partnership with non-profits for: � Tenant Based Rental Assistance � Constructing, buying or rehabilitating housing for rental or homeownership to low-moderate income residents. � Providing financial assistance to first-time homebuyers who are low-moderate income. � 15% of HOME funds are designated to Community Housing Development Organizations (CHDO’s)
Conditions of HOME Activities �Projects must remain at an affordable level for low- moderate income residents for 5 to 20 years depending on level of investment. �Requires 25% match to the grant funds. �No more than 10% of total grant can be spent on administration
How to Apply � CDBG & HOME– Download application from Community Development website at: http: //comdev. amarillo. gov/programs/2020 -2021 -funding -applications-and-resources � Complete all parts of the application with required attachments. � Return 1 hard copy to the Community Development Office, Simms Municipal Building, 808 S. Buchanan Attention: Vanessa Robinson DUE 4: 00 PM October 5 th, 2020
TIMELINE � October 5 th– Applications Due � – CDAC Public Hearings on Project Requests � – CDAC Approves Funding Recommendations � – City Council Public Hearing and Approval of Projects � – Annual Action Plan Submitted to HUD � – Begin FY 2020 program year Awards
RESOURCES � Basically CDBG Manual https: //www. hudexchange. info/resource/19/basically-cdbgtraining-guidebook-and-slides/ � CDBG Guide to National Objectives and Eligible Activities https: //www. hudexchange. info/resource/89/community-developmentblock-grant-program-cdbg-guide-to-national-objectives-and-eligibleactivities-for-entitlement-communities/ � CDBG and HOME: Working Together to Create Affordable Housing https: //www. hudexchange. info/resource/267/home-and-cdbg-workingtogether-to-create-affordable-housing-training-manual/ � City of Amarillo – Community Development http: //comdev. amarillo. gov/home-comdev
- Slides: 28