california department of housing and community development thomas brandeberry cdbg section chief

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California Department of Housing and Community DevelopmentThomas BrandeberryCDBG Section Chief

2012CDBG PROGRAM NOFA

APPLICATION WORKSHOP

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TODAY’S WORKSHOP

Regulation Changes What’s New? Who Can Apply - Threshold NOFA Basics Eligible Activities Federal Overlays NOFA Application (Summary) Table Discussions

Proposed Regulation changes documents can be found here: http://www.hcd.ca.gov/fa/cdbg/about.html

Comment period ends:

February 6, 2012

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REGULATION CHANGES

http://www.hcd.ca.gov/fa/cdbg/about.html

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REGULATION CHANGES

PURPOSE To Allow the CDBG Section and

Jurisdictions to Consolidate Workload: Super-NOFA.

To Repeal Multi-Year Funding. Increase the State’s Expenditure Rate. To Clean Up Regulations That Need

Immediate Change.

REGULATION CHANGES

Organize Sections and Subjects Change Terms Define Eligible Activities Define National Objectives Realign Scoring including Point

Categories and Maximum Points

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REGULATION CHANGES

ELIGIBILITY 50% Rule. Housing Element and A-133 Audit

Submission Compliance as of Application Due Date.

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REGULATION CHANGES

ECONOMIC DEVELOPMENT Micro-Enterprise Removed from Job

Creation Requirement. Removes Maximum Grant (Award)

Amounts (NOFA will have the Maximums).

Removes Language Related to Dates for Funding.

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REGULATION CHANGES

ECONOMIC DEVELOPMENT (cont’d) Removes the $50,000 per Job

Language to Comply with State Statute.

Clarifies ED OTC is “First-Come, First-Served” Awarding Process.

Removes ED PTA Maximum Award Amounts.

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REGULATION CHANGES

COMMUNITY DEVELOPMENT Removes Language Related to the

Blender Scoring. Removes Language Related to Dates

for Funding. Removes Language for Multi-Year

Funding.

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REGULATION CHANGES

NEW SCORING MECHANISM Activity Based Scoring

4 Over-Arching Categories: Need – up to 400 points Readiness – up to 300 points Capacity – up to 200 points State Objectives – up to 100 points

(beginning w/2013 NOFA, NOT in 2012 NOFA)

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Planning Activity (PTA) Match will no longer be a calculation

based on sales use and tax data. Match will now be announced in the

NOFA each year. This year it will be 5% (cash) for all

jurisdictions.

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REGULATION CHANGES

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WHAT’S NEW IN 2012 NOFA

One annual NOFA, announcing all CDBG activities in one document.

ED OTC will have a separate application process, funding process and contract.

Application and funding cycle once per year for all allocations/activities.

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ONE AWARD/ONE CONTRACT FOR ALL ACTIVITIES

One award/one contract for all awarded activities, whether CD, ED EF, PTA, Native American or Colonia.

Only ED OTC will have a separate contract in any given fiscal year.

All contract reporting will be consolidated.

NEW TERM OF CONTRACT Contract EXPIRES no later than 60

months from award date. EXPENDITURE deadline no more than

36 months from award date.

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TERMINOLOGY “General” Allocation Activities – NOW

“Community Development” or “CD”. “Targeted Income Group” or “TIG” -

Reverting to HUD terms “Low- and Moderate-Income,” “low-income,” or “Low-Mod”.

LMI refers to a Low-Mod Individual, and LMA refers to Low-Mod Area.

TERMINOLOGY (cont’d) Single Family Residential - 1 to 4 residential

units on a single property. (Housing Rehabilitation (HR) and Homeownership Assistance (HA) Programs).

Multi-Family Residential– 5 residential units or more on a single property or within a single development complex. (Multi-Family Housing (MFH) Rehabilitation and MFH Acquisition/Rehabilitation Projects).

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TERMINOLOGY (cont’d) HR and HA are considered Programs. MFH Acquisition and/or Rehabilitation are

considered Projects. Application requirements and scoring

criteria are significantly different. Example: Programs require Program Guidelines to be submitted as part

of the application. Projects do not.


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STATE CDBG EXPENDITURE RATE For 2012 and 2013 NOFAs, the

Department will make available 150% of its HUD allocation.


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NEW THRESHOLD FACTORS Holdouts:

No holdouts (moved to scoring criteria).

Single Audit Report Submittal Required Prior to Application as of the date of application submittal.

Housing Element and Other Threshold Requirements as of the date of application submittal.


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“50% RULE” FOR APPLICATION ELIGIBILITY

Beginning FY 2013-14 NOFA: One or more open CDBG contracts executed in 2012 or later. Expenditure deadline established in the contract(s) has not

yet passed. Not Expiration date.

Ineligible for additional CDBG funds unless expended at least 50% of all funds awarded 2012 and later.

Except ED OTC.

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NEW ACTIVITY AND ALLOCATION FUNDING LIMITS

Application maximum for the 2011-12 funding year is $2,000,000.

Maximum of 3 eligible activities. ED OTC Program - Application maximum is

$3,000,000 for one year. ED OTC, Native American and Colonia activities are

NOT counted as one of the maximum 3 eligible activities.


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NEW ACTIVITY LIMITS (cont’d) Colonia and Native American (NA)

2012 maximums: Colonia Allocation - Must Meet Colonia

Definition NA Allocation - Must Meet Native American

Definition Activities are in addition to the 3 activities

from other Allocations.

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NEW ACTIVITY LIMITS (cont’d) Of the three (3), one may be either:

A PTA activity (up to two studies); or, A Set-Aside (not scored) activity with

a maximum funding limit of $100,000 for any other eligible activity

(EF, Public Improvements, Public Facilities, or Public Services).

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NEW ACTIVITY LIMITS (cont’d) May apply for the PTA activity as a stand-alone or as one of

the three maximum activities in an application. Two PTA application pools created: (1) PTA only (stand-

alone); & (2) Both PTA and another rated activity(s). Both from the amount set aside for PTA, based on demand. Tie breaker process, as described in NOFA, if the demand is

greater that the amount available. No assurances can be made that an application including

PTA activities will be funded, regardless if it is the sole activity or part of a multi-activity application.

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NEW ACTIVITY LIMITS (cont’d) Set-Aside (not scored) - Funded only if

one or more scored activities are funded.

Some activities may allow implementation of more than one Program or Project. See NOFA.

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INDIVIDUAL ACTIVITY ALLOCATIONS Each activity allocated a specific amount of

funding. Actual activity allocation amounts will be based

on the application demand, expressed as a dollar amount, requested in each activity application.

Funding will continue in rank order until that activity allocation has been exhausted.

Under-subscribed Activity - Remaining funds will be redistributed to remaining activities.


FUNDING MAXIMUMS (cont’d)

Over-the-Counter: Annual Limit for one or more projects:

Up to $3,000,000 Two year award for single project:

Up to $6,000,000

NOTE: ED OTC activities require a separate application process and have different opening and closing dates

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FUNDING MAXIMUMS (cont’d)

Enterprise Fund: Business Assistance Program: Up to $300,000

Microenterprise Assistance Program: Up to $300,000

Combo Program of Micro and Business Assistance: Up to $500,000

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FUNDING MAXIMUMS BY ACTIVITY Housing ($1 million maximum total):

$600,000 Homeownership Assistance (Acquisition) or Housing Rehabilitation.

$1 million – Combo of Single Family Residential Homeownership Assistance and Housing Rehabilitation.

$1 million – Multi-Family Rental Rehabilitation With or Without Acquisition (1 Project)

$600,000 – Land Acquisition for Multi-Family Affordable Housing (1 Project)

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FUNDING MAXIMUMS (cont’d) Public Improvements: $1,500,000 (one project)

Public Facilities: $1,500,000 (one project)

Public Services: $500,000 No more than 3 services per application.


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FUNDING MAXIMUMS (cont’d) Planning and Technical Assistance:

$100,000 Maximum Maximum of 2 studies May include either two CD studies,

two ED studies, or one of each


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NEW METHOD FOR SCORING APPLICATIONS

Revised scoring criteria and process for all activities. Scored using the new individual activity scoring system. Rate and rank each activity against applications for the

same activity. No blending of scores for multiple activities. Awarded or denied funding based on scores for each

activity.

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NEW METHOD FOR SCORING (cont’d) Points categories: Need, Readiness,

Jurisdictional Capacity/Past Performance, and State Objective.

Each category applied to all activities: Type and weighting of the criteria within

each category may differ by activity. Maximum of 1,000 points per Activity

This year 900--No State Objective Points This Year!



NEW METHOD FOR SCORING (cont’d)

Scoring for Service Areas (Target Area) Activities with 100% income restricted or

Limited Clientele beneficiaries will be scored using jurisdiction-wide data only.

Programs or Projects that use a Service Area to meet Low Mod National Objective will be scored based on that same area.

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ELIGIBLE APPLICANTS & AREAS

NON-ENTITLEMENT JURISDICTIONS ARE:

Cities with populations under 50,000. Counties with populations under 200,000. Not currently a party to an Urban County

Agreement. Not eligible to participate in the HUD

administered CDBG Entitlement Program. See Appendix A.

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NATIVE AMERICAN ALLOCATION APPLICANTS ARE:

Non-entitlement jurisdictions that apply to assist non-federally recognized Native American communities.

For housing and housing-related activities only.

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COLONIA ALLOCATION APPLICANTS ARE:

Eligible jurisdictions which contain Colonia communities, as defined by the National Affordable Housing Act

of 1990.

THRESHOLD REQUIREMENTS

The applicant shall submit a complete application on the forms provided; and,

Application must be submitted by due date (April 6, 2012, by 5:00 PM).

Application must be able to be evaluated on the scoring criteria found in the NOFA.

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Applicant must be in compliance with the submittal requirements of OMB A-133, Single Audit Report.

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Applicants must be in compliance with federal CDBG Public Participation regulations.

Applicants must have complied with CDBG Housing Element requirements.

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NOFA BASICS

Applications Due: April 6, 2012,

5:00 PM

Awards by July 2012

Contracts Issued Within 60 Days of Awards

Approximately $48 Million will be Available (150% of HUD Allocation)

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NOFA BASICS

ED OTC Not Included In This Workshop Opening Date: January 9, 2012 Closing Date: April 30, 2013

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NOFA BASICS

ALLOCATIONS 30% Economic Development 5% Colonia 1.25% Native American No More than 15% Public

Services

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NOFA BASICS

ALLOCATIONS Planning Grant Awards Limited to

$2 Million Total. Community Development Activity

Allocation Will be Based on Demand.

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Three National Objectives

Documentation of National Objective

NATIONAL OBJECTIVES

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THREE NATIONAL OBJECTIVES Benefit to Low-Income

Persons/Households Benefit of Eliminating Slum / Blighted

Condtions Benefit of Meeting an Urgent Need

NATIONAL OBJECTIVES

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LOW-INCOME NATIONAL OBJECTIVE Direct Benefit to Low-Income

Persons/Households Area Benefit or Restricted Use to Low-

Income Persons/Households Limited Clientele Public Benefit Jobs for Low-Income Persons

on ED projects

NATIONAL OBJECTIVES

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REFER TO:

“FUNDING LIMITS AND

ELIGIBLE ACTIVITIES TABLE”

ELIGIBLE ACTIVITIES

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ELIGIBLE ACTIVITIES

ECONOMIC DEVELOPMENT (ED) ACTIVITIES

Over-The-Counter (OTC) Activity

Separate application for Individual Projects Maximum Award Limit(s):

Up to $3,000,000 for projects in single funding yearUp to $6,000,000 for a project with two year award

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ELIGIBLE ACTIVITIES

ED ACTIVITIES (cont’d)

Enterprise Fund (EF) Activity Business Assistance (BA) Program or

Microenterprise (ME) Program

Maximum Award Limit(s): Up to $300,000 for either BA or ME program

Up to $500,000 for Combo BA and ME program

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ELIGIBLE ACTIVITIES


Business Assistance (BA) Program Overview

Business loan program participants must create jobs Applicant must have capacity for BA loan underwriting Applicant must document market demand for BA loan

program BA loans restricted to eligible costs

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ELIGIBLE ACTIVITIES


Microenterprise (ME) Program Overview

Must be eligible ME Program Participants: Income Eligible, Maximum of 5 Employees (Includes Owner)

Micro financial assistance requires Part 5 Income Determination Eligible ME can get technical assistance services, financial

assistance (loan or grant) and support services Applicant must have capacity for: providing technical assistance,

financial underwriting Applicant to document market demand for ME program

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HOUSING ACTIVITIES Real Property Acquisition (housing-related) Multi-Family Housing Acquisition, or Acquisition &

Rehabilitation Project Multi-Family Housing Rehabilitation Project Single-Family Housing Rehabilitation Program Homeownership Assistance Program Housing COMBO Program

ELIGIBLE ACTIVITIES

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HOMEOWNERSHIP ASSISTANCE

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HOUSING REHABILITATION ACTIVITIES

Maximum Award Limit(s):

Up to $600,000 for either HA or HR Activity

Up to $1,000,000 for Combo (HA + HR) Activities

ELIGIBLE ACTIVITIES

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MULTI-FAMILY HOUSING

REHABILITATION PROJECT

ACTIVITYMaximum Award Limit:

Up to $1,000,000Limited to One Project

With our without Acquisition

ELIGIBLE ACTIVITIES

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REAL PROPERTY ACQUISITION

ACTIVITYMaximum Award Limit(s):

Up to $600,000 for Vacant Land Acquisition

for Multi-Family Development

Up to $1,000,000 for Multi-Family Housing (MFH)

Acquisition or MFH Acquisition & Rehabilitation Project Limited to one project per application Multi-Family Housing (MFH) Projects Only

ELIGIBLE ACTIVITIES

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PUBLIC IMPROVEMENTS (PI) ACTIVITIES

Maximum Award Limit: Up to $1,500,000

Limited to One ProjectExample #1:

Water/Sewer System Expansion Example #2:

Infrastructure In-Support-Of Housing New Construction(PIHNC)

ELIGIBLE ACTIVITIES

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PUBLIC FACILITIES (PF) ACTIVITYMaximum Award Limit:

Up to $1,500,000Limited to One Project

Includes Acquisition, New Construction or RehabilitationMust support an eligible CDBG Public Services Activity

Example: Homeless Shelter, Food Bank or Fire Station

ELIGIBLE ACTIVITIES

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PUBLIC SERVICES (PS) ACTIVITYMaximum Award Limit(s):

Up to $500,000Limited to no more than three Public Services activities per application

ELIGIBLE ACTIVITIES

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PUBLIC SERVICES (PS) ACTIVITYLimited to no more than three Public Service activities per application

Example #1: Employment Training $250,000 Food Bank $150,000 Homeless Shelter $100,000

TOTAL: $500,000

Example #2 (with set-aside): Employment Training $250,000 Food Bank $250,000 Set-aside P/S Activity $100,000

TOTAL: $600,000

ELIGIBLE ACTIVITIES

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PLANNING & TECHNICAL ASSISTANCE

(PTA) ACTIVITYMaximum Award Limit(s):

Up to $100,000Maximum of two studies per grant

May be either CD or EDCash match required

ELIGIBLE ACTIVITIES

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SET-ASIDE (UN-SCORED) ACTIVITYAvailable for all other traditionally scored CDBG eligible activities

Maximum Award Limit: Up to $100,000

NOTE: Applicants may apply for maximum funding of an un-scored set-aside for the same activity they have already applied for – for maximum funding:

Example:Public Facility (PF) Activity $1,500,000 Max. Single Un-scored Public Facility (PF) set-aside Activity $ 100,000 Max. Single

TOTAL MAXIMUM COMBINED AWARD ALLOWED $1,600,000 Max. Combined

ELIGIBLE ACTIVITIES

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ELIGIBLE COLONIAS ACTIVITYEligible activities may include only those which address

potable water supplies, sewage systems, and decent, safe and sanitary housing.

Maximum Activity Limit(s):Same as Community Development Program

ELIGIBLE ACTIVITIES

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ELIGIBLE NATIVE AMERICAN ACTIVITY

Eligible activities include those involving housing or housing-related activities only

Maximum Activity Limit(s): Same as Community Development Program

ELIGIBLE ACTIVITIES

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NEPA Environmental Review Relocation / Displacement Review Labor Standards / Prevailing Wage

Compliance Review Federal Procurement Standards

FEDERAL OVERLAYS

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NEPA COMPLIANCE

TIMING & DETERMINING NEPA REVIEW LEVEL All CDBG Activities must have NEPA clearance (even

General Admin). Grantee to review NEPA timing for EACH activity

proposed. Grantee to aggregate scope of work for each activity

proposed. Grantee to determine level of review required for

each activity proposed based on scope of work. Grantee to assign proper person for NEPA review.

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RELOCATION COMPLIANCE

TIMING & DISPLACEMENT DETERMINATION All CDBG activities are subject to relocation laws. Review relocation impacts for each activity proposed

prior to application submittal. Review initial actions for activities with relocation

(pre-application General Information Notice (GIN)). Plan and budget for relocation actions as part of

activity implementation. Hire professional consultants for relocation actions.

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LABOR STANDARDS COMPLIANCE

DETERMINING COMPLIANCE & PLAN

FOR MONITORING Applies to CDBG funded construction activities. Review activity for compliance prior to application

submittal. Plan for proper wage monitoring in activity design

and execution. Hire professional wage compliance consultant. Work with CDBG staff to ensure compliance.

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PROCUREMENT COMPLIANCE

USE OF PROPER PROCUREMENT /

SUBRECIPIENT Most grantees hire consultants to implement

CDBG activities.

Three ways to secure CDBG admin services.

Choosing a method of securing consultant.

Timing for securing a consultant.

Typical problems with securing consultants.

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NOFA APPLICATION

ACTIVITY APPLICATIONS

Activity Specific Training Will be Completed through the Webinars.

One Webinar per Activity. Participate in the Webinars for

proposed activities in application! Webinars will be posted on web

NOFA APPLICATION

SUMMARY APPLICATION

Must Be Completed by

All Applicants

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california department of housing and community development thomas brandeberry cdbg section chief

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