2009 dca cdbg/chip applicants’ workshop introduction to cdbg/chip boot camp

2009 DCA CDBG/CHIP Applicants’ Workshop

Introduction to CDBG/CHIP Boot Camp

2009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp

CDBG/CHIP Conference Overview

• Boot Camp▪ Intro to CDBG/CHIP Programs▪ Forms 1-13

• Compliance• Resource Tables• Concurrent Sessions

▪ CDBG/CHIP/CDBG ED (Advanced & Basic)• One-On-One TA• Last Day’s Topics


Review of Binder and CD

• Binder includes:▪ Welcome/Agenda▪ Staff Contacts▪ Presentations▪ Handouts

• CD Includes▪ CDBG/CHIP Manuals, Appendices,

Presentations


Our Mission in the Next 15 Minutes

• Discuss the fundamentals of CDBG and CHIP as preparation for review of DCA forms 1 – 13

• Why is this important?▪ In order to submit a competitive application


Community Development Block Grant (CDBG)

• Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program


Community Development Block Grant (CDBG)

• The primary objective of the HCDA is the development of viable communities through the improvement of living conditions and the expansion of economic opportunities in cities and counties, principally for persons of low- and moderate-income.


Community HOME Investment Program (CHIP)

• HOME is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. Program regulations are at 24 CFR Part 92

• CHIP is one of the ways that Georgia uses HOME dollars to expand affordable housing


Community HOME Investment Program (CHIP)

• HOME is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households


Definition of LMI

• Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by HUD. Unrelated individuals will be considered as one-person families for this purpose.▪ That is, those families at 80 percent of less of

Area Median Income (AMI)


CDBG & CHIP Target LMI People

• For CDBG, the law requires that overall benefit to L/M persons be at least 70%▪ LMA, LMC, LMH, LMJ

• For CHIP, the law requires 100% benefit to L/M persons


Typical CDBG Activities

• Water lines, sewer lines, lift stations, wells, pumps, drainage pipe, drainage structures, road paving, drainage inlets, buildings, equipment loans, elevated tanks, homeowner and homebuyer activities, etc.


CHIP Eligible Activities

• Homeowner Rehabilitation

• Homeowner Reconstruction

• Homebuyer Activities▪ Acquisition▪ Acquisition/rehabilitation▪ New Construction

• Rental Housing


Basic Limitations

Activities and projects are eligible for funding only to the extent:

• Local governments are applicants (sub-recipients may implement)

• They are eligible according to law and regulation

• They primarily benefit low- and moderate-income persons or remove slum and blight.


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

For further information see the Applicants’ Manual


Sources of Ideas for Project Development

• Local Comprehensive Plan

• Citizen Complaints

• Previous Engineering Studies

• Professional Standards

• City Staff/RDC Staff/Consultant Staff

• Other


Some Things to Think About

• Strategy▪ What are the community development needs

and have they been clearly defined?▪ What are the possible alternatives for

addressing those needs, i.e., have you done any brainstorming?

▪ Have you systematically evaluated the alternatives using cost as one criteria?

▪ Is the alternative chosen eligible for funding?▪ Have you considered local funding?



• 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 L/M income

persons?▪ Is quality of life improved?



• 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?


CDBG L/M Area Benefit (LMA)

For projects that will benefit a geographic area—target area or city-wide or county-wide area—each activity (e.g., water improvements) must benefit at least 70% L/M persons and each geographic area chosen must contain a population of at least 70% L/M persons.


LMA (cont.)

• As a practical matter, draw your area boundaries correctly and these issues will usually take care of themselves.▪ The boundaries proposed (and therefore the area

where income surveys must be done) must include the entire area of benefit.


Area of Non-benefit

LMA (cont.)

Area Boundary Water Improvement Area of Benefit

&TA Population of at least 70% L/M


CDBG L/M Clientele Benefit (LMC)

• CDBG provides a “place” for L/M persons to receive a benefit▪ e.g., health center, senior center, etc.

• 70% of recipients of benefit must be L/M income persons; or

• HUD must assume 100% of the recipients of the service are L/M persons


CDBG L/M Housing Benefit (LMH)

• 100% Benefit to L/M Households


CDBG L/M Jobs Benefit

• For Economic Development Projects▪ 51% of jobs must be held or made available to

L/M persons


CHIP L/M Benefit

• 100% Benefit to L/M Households


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


Be sure and request technical assistance!

2009 dca cdbg/chip applicants’ workshop introduction to cdbg/chip boot camp

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