Illinois Department of Commerce Economic Opportunity www illinois

Illinois Department of Commerce & Economic Opportunity www. illinois. gov/dceo Community Development Block Grants 2019 Application

GATA, Application and Grant Process 2

Grant Accountability & Transparency Act (GATA) The purpose of GATA is to provide for the development of a coordinated, non-redundant process for the provision of effective and efficient oversight of the selection and monitoring of grant recipients, ensuring quality programs, limiting fraud, waste and abuse, and defining the purpose, scope, applicability and responsibilities in the life cycle of a grant. 3

GATA Process GATA WEB PORTAL www. grants. illinois. gov • What Grants are Available? • Catalog of State Financial Assistance (CSFA) • Notice of Funding Opportunity (NOFO) • First Step in Getting a Grant: • Pre Qualification Portal • Who Has Received a Grant? • Listing of all Executed Grants • Who Can’t Get a Grant? • STATE Debarred/Suspended List • Comptroller’s Offset Management Information Control System 4

GATA Process PRE QUALIFICATION PORTAL • Complete registration and pre-qualification on the Portal • One per State Fiscal Year • July 1 st – June 30 th • Need: • Dun & Bradstreet Verification • SAM Cage Code Number • Must be completed prior to application submission. 5

Annual Pre-Qualification Process: Steps 1 & 2 Go to the GATA Portal 1. Enter your username and password and click “sign in” 2. Fill in the DUNS number for the entity for which you are associated with and click “yes. ” 6

Annual Pre-Qualification Process – Step 3 • • • Edit registration and change the “Organization Type” to appropriate classification. Enter the entities if necessary based on the IL Secretary of State Certificate of Good Standing. Click “Save. ” 7

Annual Pre-Qualification Process – Step 4 • Go back to Main Menu and scroll down to check pre-qualification status. • Use the “help button for anything that does not have a “Good” status to remediate. 8

GATA Process FISCAL & ADMINISTRATIVE RISK ASSESSMENT • Completed once, annually for the Entity, Includes: • Accounting System • Budget Controls • Cost Principles • Audit • Organizational Governance • Property Standards • Procurement Standards • Subrecipient Monitoring – not applicable for CDBG • Fraud, Waste and Abuse • Submitted to cognizant agency for review. 9

Annual Pre-Qualification Process – Step 5 • Scroll down to Fiscal and Administrative Internal Control Questionnaire (ICQ) and ensure you have an accepted FY 19 ICQ. • If there is not a date in the “Date Accepted” box, then the ICQ was not accepted. Reach out to Cognizant Agency. 10

Annual Pre-Qualification Process – Step 6 • Click “Create an FY 2020 ICQ” to generate the FY 20 ICQ. • Be sure to click “Submit” 11

Need Help? • Grantees should refer to FAQs at: https: //www. illinois. gov/sites/GATA/Grantee/Pages/Grant ee. Portal. FAQ. aspx • Resource Library can be found at: https: //www 2. illinois. gov/sites/GATA/Pages/Resource. Libr ary. aspx • E-mail: CEO. GATA@Illinois. gov 12

Indirect Costs • Once pre-qualification and ICQ approved, an email invitation will be sent to log into the State of Illinois Indirect Cost Rate Proposal System, better known as CARS. • Elect the type of indirect rate using on all Illinois grants. • All grantees are required to log into the system and make a rate selection and submit it for approval. • Even if you elect not to claim any indirect costs and not have a rate, you still need to document that in CARS and submit it for approval. • No Documentation = No Payments 13

Indirect Rates The types of indirect rates that are available to use are: • 1. Federally negotiated indirect cost rate • 2. State negotiated indirect cost rate • 3. 10% De Minimis rate applies to the Modified Total Direct Costs (MTDC) • 4. Elect not to charge indirect and select no rate 14

GATA Process UNIFORM APPLICATION FOR STATE GRANT ASSISTANCE • On Agency/Program Website PROGRAM APPLICATION • On Agency/Program Website • Section 1 – Federal and State Objectives • Section 2 – CDBG Program Information & Policies • Section 3 – Program Specific Requirements GATA BUDGET – DO NOT INCLUDE WITH APPLICATION • On Agency/Program Website 15

GATA Process MERIT BASED REVIEW • Completed by Committee • Appeals Process • Written within 14 days 16

Notice of State Award Finalist (NOSAF) • Complete the outstanding grant award requirements as stated on the Notice of State Award Finalist • Outstanding GATA requirements • Programmatic Risk Assessment (will be e-mailed) • Return Conflict of Interest and Mandatory Disclosures • Environmentals • Special Conditions • Complete GATA Budget • 90 Days from receipt to complete 17

GATA Process PROGRAMMATIC RISK ASSESSMENT • Evaluates past performance in the CDBG program for both the Community and the Administrator • Complete the Programmatic Risk Assessment for each Grant • Survey link will be e-mailed to you along with NOSAF. 18

GATA Process NOTICE OF STATE AWARD (NOSA) • Similar to Grant Award Letter • Provides all the terms and conditions based on the Internal Control Questionnaire (ICQ) and the Programmatic Risk Survey. • Review the NOSA to ensure understanding of grant terms • Accept NOSA on GATA system. • Grant will not be awarded without NOSA acceptance. 19

GATA Process Uniform Grant Agreement • Part 1 – Uniform across the State • Part 2 – Uniform across the Agency • Part 3 – Program Specific • Sign and submit the Agreement to the Agency • Hurray, you made it!!! 20

The Guidebook Section 1 21

National Objectives • Benefiting low-to-moderate income (LMI) persons • Aiding in the prevention of slums and blight • Meeting other community development needs that pose a serious and immediate threat to the health and welfare of the community 22

Eligibility Thresholds - LMI • US CENSUS DATA calculated by HUD may be used to determine LMI for an entire community, a specific township or an entire county – Also available by Census tract but project area and benefit must mirror tract • https: //tinyurl. com/y 2 pn 2 c 2 v 23

HUD LMI Mapping Application – David Wortman 24

HUD LMI Mapping Application Block Group 25

HUD LMI Mapping Application: Census Block LMI Block has LMI of 76. 47% 26

HUD LMI Mapping Application: Census Block LMI Block has LMI of 45. 71% 27

HUD LMI Mapping Application: Census Block LMI LOWMOD 320 LOWMODUNIV 700 320 ÷ 700 = 45. 71% 28

HUD LMI Mapping Application: Census Block LMI West Block 45. 71% East Block 76. 47% 29

HUD LMI Mapping Application: LMI Calculation LOWMOD west 320 LOWMOD east 1170 LOWMOD Total 1490 LOWMODUNIV west 700 LOWMODUNIV east 1530 LOWMODUNIV Total 2230 1490 ÷ 2230 = 66. 82% 30

HUD LMI Mapping Application Place = city, village or town 31

HUD LMI Mapping Application: Entire Community LMI Community-wide LMI 63. 05% 32

Funding Availability Amounts will change once HUD determines 2019 Allocations Programs Public Infrastructure (PI) Housing Rehabilitation (HR) Economic Development (ED) Disaster Response (DR) Budget $15, 000 $6, 500, 000 $4, 000 $2, 000 Grant Ceiling $500, 000 $1, 000 $500, 000 33

Funding Availability • Minimum grant award of $250, 000 • Applications for less than the minimum grant will not be accepted. 34

Method of Distribution Application Limitation: • Units of local government may apply for one grant per competitive program per year. • Applicants that received a grant in the previous year must demonstrate reasonable progress by the time the application is reviewed, or it will not be considered. 35

Eligible Applicants Only units of general local government may apply for funding. • Entitlement communities/counties that receive a direct appropriation of CDBG funds from HUD are not eligible to apply. (Section 1 C) 36

Application Materials • All original Application Forms and Materials as shown in the Guidebook must be utilized. • Applications will be designated DO NOT FUND for: • Using self-created forms • Adding to or removing any language in forms • Forged, copied, taped, pasted or any alterations to signatures or dates • All Letters, Notices, Resolutions, Agreements or other communication provided by the ULG must be of the exact verbiage contained in the Guidebook and be on government letterhead. 37

The Application Section 2 38

A. Requirements and Disclaimers 1. Costs previously incurred or for application preparation are not reimbursable. 39

A. Requirements and Disclaimers 7. …not fund applications that address problems which obviously are a result of deferred maintenance. 40

A. Requirements and Disclaimers 9. Additional non-CDBG resources must be firmly committed. 41

A. Requirements and Disclaimers 10. Grant Agreements are for 24 months • No more than one 12 month extension 42

A. Requirements and Disclaimers 12. Modifications • Must be presented to the Department • Must be within the original and environmentally-cleared project area. • Modifications that will decrease the benefit to LMI persons will not be considered. • Modifications to decrease or increase the scope of work due to greater than or less than estimated costs will not be considered. 43

A. Requirements and Disclaimers 13. Local Governments that have a CDBG Revolving Loan Fund Closeout Credit must have approved and obligated project(s) totaling the amount of the credit prior to application for a grant funded through the annual allocation. Closeout Credit can be used as matching funds for a grant awarded through the annual allocation; credit must be used before drawing grant funds. 44

A. Requirements and Disclaimers 15. Local governments cannot assess any fees against property occupied by eligible LMI persons. 45

A. Requirements and Disclaimers 16. No environmental review activities can take place until the applicant has received the Notice of State Award Finalist. • DO NOT contact State Agencies prior to NOSAF • DO NOT contact HUD Program and Environmental staff 46

A. Requirements and Disclaimers 19. CDBG grant funds may not be used for any activity in an area delineated as a special flood hazard area in FEMA's most current flood advisory maps unless it also ensures that the action is designed or modified to minimize harm to or within the floodplain • Approved by the Department ahead of time 47

B. State and Federal Compliance • 2 CFR 200 • Grant Accountability & Transparency Act (GATA) 48

C. Citizen Participation • Public Hearings must be facilitated by the applicant’s governing body authorized official • Certified by the clerk • Hearing must cover all details of the proposed project 49

D. Applicant/Grantee Recipient Disclosure • Section 102 of the Housing and Urban Development Reform Act of 1989 contains provisions for accountability and integrity. • Applicants will be required to complete a disclosure form. 50

E. Activity Delivery Costs are direct costs incurred for implementing and carrying out a specific, eligible Community Development Block Grant activity. 51

E. Activity Delivery Public Infrastructure Activity Delivery Locally funded in place of Leverage Housing Rehabilitation Activity Delivery (formerly Administration) up to 8% of the Rehabilitation Line Economic Development Activity Delivery 7% not to exceed $30, 000 Housing Rehabilitation Administration (Formerly Inspection) up to 9% of the Rehabilitation Line 52

E. Activity Delivery Economic Hardship: • The most recent audit indicates the community has less than 20% of the grant-funded construction costs in the cash and utility fund balances. • Waiver may be requested by submitting the most recent audit and a letter of request signed by the Chief Elected Official. • Request must be received by October 1, 2018 • If granted, Activity Delivery cannot exceed 7% of the grantfunded post-bid construction costs, and • Grant cannot exceed the total of post-bid construction costs and Activity Delivery, or $500, 000 whichever is less 53

Activity Delivery – What’s Allowed? • • • Necessary Reasonable Allocable Authorized/Not Prohibited Documented • NOT Allowed: Pre-program costs, such as application preparation and local income survey costs, are not eligible for CDBG funding. 54

Activity Delivery – Contracts • Must be procured unless: • Regional Planning Commission • Council of Officials • Community Action Agency • Procurement policy must be documented • Section IX, Attachments for Illinois CDBG Procurement Policy 55

Use an experienced Writer/Administrator All application writers and grant administrators must have administered an Illinois CDBG grant within the last two years or attend the 2019 grant administration workshop (as well as the 2019 Application Workshop). 56

Use an Environmental Specialist All Grantees must use an experienced Environmental specialist, who has completed at least one Illinois CDBG Environmental Review since January 1, 2016 OR has successfully completed DCEO Environmental Training on July 18, 2018 57

www. illinois. gov/dceo Questions? Thank You! Wendy Bell Assistant Deputy Director of Community Development 500 East Monroe Springfield, IL 62701 Phone # 217 -558 -2838 Email: wendy. bell@illinois. gov