1

CITIZEN PARTICIPATION CITIZEN PARTICIPATION PLANPLAN

Sets forth the policies and Sets forth the policies and procedures to be used for procedures to be used for

citizen participationcitizen participation

1

MUST PROVIDE AND MUST PROVIDE AND ENCOURAGEENCOURAGE

CITIZEN PARTICIPATIONCITIZEN PARTICIPATION

During the development of the During the development of the consolidated planconsolidated plan

Regarding substantial Regarding substantial amendmentsamendments

To review performance reportsTo review performance reports

1

CON PLAN DEVELOPMENTCON PLAN DEVELOPMENT

Describe how & when Describe how & when citizens will be informed citizens will be informed of: of:

1

CON PLAN DEVELOPMENTCON PLAN DEVELOPMENT

1.1. Amount of assistance Amount of assistance expected to be receivedexpected to be received

2.2. Range of activitiesRange of activities

3.3. Plans to minimize Plans to minimize displacement (even if no displacement (even if no displacement is expected)displacement is expected)

1

CON PLAN DEVELOPMENTCON PLAN DEVELOPMENT

How citizens will be given How citizens will be given opportunity to examine opportunity to examine proposed Con Plan -proposed Con Plan -

including where copies may be including where copies may be examined and obtainedexamined and obtained

1

CON PLAN DEVELOPMENTCON PLAN DEVELOPMENT

At least one public hearing during At least one public hearing during the development processthe development process

Description of how notice of that Description of how notice of that hearing will be providedhearing will be provided

1

CON PLAN DEVELOPMENTCON PLAN DEVELOPMENT

Public comment periodPublic comment period

Not less than 30 days, prior to Not less than 30 days, prior to adopting the final consolidated adopting the final consolidated planplan

1

CON PLAN DEVELOPMENTCON PLAN DEVELOPMENT

Comments:Comments:

Written or orally at public Written or orally at public hearing will be consideredhearing will be considered

Summary of comments Summary of comments attached to final con planattached to final con plan

1

AMENDMENTSAMENDMENTS

Specify criteria to be used to Specify criteria to be used to determine what constitutes a determine what constitutes a substantial amendment substantial amendment

How citizens will be given How citizens will be given opportunity to comment with opportunity to comment with comment period and summarycomment period and summary

1

PERFORMANCE REPORTSPERFORMANCE REPORTS

Reasonable notice for review and Reasonable notice for review and commentcomment

Comment period prior to Comment period prior to submission is not less than 15 submission is not less than 15 daysdays

1

PUBLIC HEARINGSPUBLIC HEARINGS

Citizen participation plan must:Citizen participation plan must:

State how / when notice is State how / when notice is givengiven

Describe how needs of non-Describe how needs of non-English speaking will be metEnglish speaking will be met

1

PUBLIC HEARINGSPUBLIC HEARINGS

Citizen participation plan must:Citizen participation plan must:

Provide hearings at convenient Provide hearings at convenient times and locations, with times and locations, with accommodations for persons with accommodations for persons with disabilities AND describe how this disabilities AND describe how this will be donewill be done

1

MEETINGS AND RECORD MEETINGS AND RECORD AVAILABILITY / ACCESSAVAILABILITY / ACCESS

Citizen participation plan must Citizen participation plan must provide reasonable and timely provide reasonable and timely access to local meetingsaccess to local meetings

Consolidated Plans, substantial Consolidated Plans, substantial amendments, and performance amendments, and performance reports must be available to reports must be available to publicpublic

1

TECHNICAL TECHNICAL ASSISTANCEASSISTANCE

Citizen participation plan mustCitizen participation plan must

describe how technicaldescribe how technical

assistance will be provided to assistance will be provided to

appropriate groups that appropriate groups that

request assistance to develop request assistance to develop

proposalsproposals

1

COMPLAINTSCOMPLAINTS

Written description of Written description of how complaints regarding:how complaints regarding:

Consolidated plansConsolidated plans Substantial amendmentsSubstantial amendments Performance reportsPerformance reports

1

CONSULTATIONCONSULTATION

Public Public

AgenciesAgencies Govt. Depts.Govt. Depts. Health Dept.Health Dept. Public Housing Public Housing Community Community

ActionAction

PrivatePrivate

AgenciesAgencies Advocates ofAdvocates of

special needsspecial needs Senior citizenSenior citizen

organizationsorganizations Faith-BasedFaith-Based

US Department of US Department of Housing & Urban Housing & Urban Development –Development –

Office of Community Office of Community Planning & Planning & DevelopmentDevelopment

24 CFR 9124 CFR 91

A planning document which builds A planning document which builds on a participatory process at the on a participatory process at the lowest levels…lowest levels…

an application for federal funds an application for federal funds under HUD’s formula grant under HUD’s formula grant programs…programs…

a strategy to be followed in a strategy to be followed in carrying out HUD carrying out HUD programs…programs…

and an action plan that provides a basis for assessing performance

Consolidated Plan & Strategy

Identify community

conditions and needs

Identify existing $ $ $ resources $ $ $

Identify g a p s between resources and needs

Identify

local priorities for CPD Funding

P R O C E S S

Consultation with service Consultation with service organizationsorganizations

Consultation with government Consultation with government agenciesagencies

Participation of residents of lower Participation of residents of lower income neighborhoodsincome neighborhoods

C O N T E N T

CPS DEVELOPMENT AND REVIEWCPS DEVELOPMENT AND REVIEW

Local community consultation and citizen participation process

Public Hearing:Identification of

Needs and Priorities

Minimum 30-Day Public Comment Period on

Proposed CPS

Review and Action on Comments received

on Proposed CPS

Submission of Final CPS and Public Comments to

HUD 45 days before Start of Program Year

CONSULTATION WITH CONSULTATION WITH SERVICE ORGANIZATIONSSERVICE ORGANIZATIONS

24 CFR 91.001(a)24 CFR 91.001(a) Public and private organizations that provide Public and private organizations that provide

assisted housing, health services, and social assisted housing, health services, and social services for: services for:

• children• elderly persons• persons with disabilities• persons with HIV/AIDS and their families• homeless persons

HOUSING AND HOMELESS HOUSING AND HOMELESS NEEDS ASSESSMENTNEEDS ASSESSMENT

Analysis of housing needs by Analysis of housing needs by household typehousehold type : : Housing cost burdenHousing cost burden OvercrowdingOvercrowding Substandard housingSubstandard housing

Analysis of housing needs of Analysis of housing needs of renters by income renters by income categoriescategories

Determination if 10% Determination if 10% higher rate of any housing higher rate of any housing needs experienced by racial or ethnic groupneeds experienced by racial or ethnic group compared to entire populationcompared to entire population

Analysis of the Analysis of the nature and extent of nature and extent of homelessnesshomelessness

Analysis of Analysis of facility needsfacility needs of homeless: of homeless: Emergency SheltersEmergency Shelters Transitional SheltersTransitional Shelters Permanent Supportive HousingPermanent Supportive Housing Permanent HousingPermanent Housing

Analysis of Analysis of supportive service needssupportive service needs of homeless of homeless

Estimated homeless Estimated homeless subpopulationssubpopulations

HOUSING AND HOMELESS NEEDS ASSESSMENT

HOUSING MARKET ANALYSISHOUSING MARKET ANALYSIS•Supply, demand, condition and cost of housing stock with detail on housing available for persons with disabilities, persons with HIV/AIDS, lower income areas and areas of minority concentration

•Number and condition of public and assisted housing, targeting of units, and whether assisted units are expected to be lost

•Inventory of facilities and services for the homeless and persons in need of supportive housing

•Barriers to affordable housing

s t r a t e g i c p l a ns t r a t e g i c p l a n

RENTER AND OWNER HOUSING NEEDS

Homeless Facilities and Services

PUBLIC FACILITIES

public servicesINFRASTRUCTURE

Economic DevelopmentPLANNING AND OTHER NEEDS

S T R A T E G I C D A T A

CENSUS, HMDA, REALTOR’S ASSOC.

Homeless Providers

PARKS & REC. DEP.

public service agenciesPUBLIC WORKS / ENGINEERING

Chamber of Commerce / ED Dept.PLANNING DEPT. / NBHD GROUPS

Grantees must identify general priority Grantees must identify general priority levels and projected funding levels for levels and projected funding levels for each of the eligible activities:each of the eligible activities:

•High - Activity will be fundedHigh - Activity will be funded

•Medium - Funded if monies availableMedium - Funded if monies available

•Low - No funding, but letter of supportLow - No funding, but letter of support

•No Need - No funding or letterNo Need - No funding or letter

priority levelspriority levels

rrequiredequired e elementslements ofof

the the s strategictrategic p planlan GEOGRAPHIC DISTRIBUTION ACROSS GEOGRAPHIC DISTRIBUTION ACROSS

PRIORITY NEEDSPRIORITY NEEDS BASIS FOR ASSIGNING PRIORITY BASIS FOR ASSIGNING PRIORITY

LEVELSLEVELS OBSTACLES TO MEETING OBSTACLES TO MEETING

UNDERSERVED NEEDSUNDERSERVED NEEDS USE OF EXPECTED FUNDSUSE OF EXPECTED FUNDS MEASURES FOR PROPOSED MEASURES FOR PROPOSED

ACCOMPLISHMENTSACCOMPLISHMENTS

oother ther cconsolidated onsolidated pplan lan rrequirementsequirements

oother ther cconsolidated onsolidated pplan lan rrequirementsequirements

Reduction Plan for Lead-Based Paint HazardsReduction Plan for Lead-Based Paint Hazards

Poverty Reduction and Affordable Housing Poverty Reduction and Affordable Housing StrategiesStrategies

Organizational Capacity and Coordination Organizational Capacity and Coordination Assessment for Delivery of Community Assessment for Delivery of Community Development ActivitiesDevelopment Activities

Public - Private PartnershipsPublic - Private Partnerships

Public Housing Resident Management and Public Housing Resident Management and Homeownership InitiativesHomeownership Initiatives

neighborhood revitalization neighborhood revitalization strategystrategy

Residents, business owners, non-profits and community Residents, business owners, non-profits and community groups from a qualified, lower income residential area may groups from a qualified, lower income residential area may seek HUD approval for a NRS after assessing economic needs seek HUD approval for a NRS after assessing economic needs and developing a revitalization and economic empowerment and developing a revitalization and economic empowerment strategy for their area. Benefits of an NRS can include:strategy for their area. Benefits of an NRS can include:

Job Creation/Retention Qualified as Area Benefit ActivityJob Creation/Retention Qualified as Area Benefit Activity

Aggregation of Assistance to Housing in AreaAggregation of Assistance to Housing in Area

Exemption of ED Public Benefit Standards for AreaExemption of ED Public Benefit Standards for Area

Exemption of Public Services in Area from 15% CapExemption of Public Services in Area from 15% Cap

ACTION PLAN ELEMENTSACTION PLAN ELEMENTSSTANDARD FORM 424;

BUDGET AND RESOURCES:

• Federal resources.

• Other non-Federal public sources

• Other private resources

• Program Income

• Float Funds

ACTIVITIES TO BE UNDERTAKEN.

GEOGRAPHIC DISTRIBUTION

HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES.

ACTIONS TO ADDRESS OBSTACLES TO:

•meeting underserved needs,

•foster and maintain affordable housing,

•remove barriers to affordable housing,

•evaluate and reduce lead-based paint hazards,

•reduce the number of poverty level families,

•develop institutional structure, and

•enhance coordination between public and private providers

Notice 03-09: Performance Measures

GOALS: Proposed solutions to problems identified

Preserve existing housing stock

INPUTS: Resources dedicated or consumed by the program/project

Money, Staff, Contractors, Equipment

ACTIVITIES: What the program does with the inputs to fulfill its mission

Screen applicants, prepare specifications, underwrite loans, progress inspections

OUTPUTS: The direct products of projects/activities

# of homeowners assisted, # of homes rehabilitated

OUTCOMES: Benefits that result from the program

Increased percent of housing units in standard condition

CONSOLIDATED PLAN WEBSITECONSOLIDATED PLAN WEBSITEwww.hud.gov/offices/cpd/about/conplan/www.hud.gov/offices/cpd/about/conplan/

indexindex..

• Links to Census and CHAS dataLinks to Census and CHAS data• Links to local housing costs and Links to local housing costs and

mapsmaps• Link to other local con plansLink to other local con plans• Download Guidelines and Download Guidelines and

certificationscertifications• Link to the CPII siteLink to the CPII site

37

FAIR HOUSING PLANNING FAIR HOUSING PLANNING IN YOUR COMMUNITYIN YOUR COMMUNITY

Presenter: Pamela D.WalshPresenter: Pamela D.Walsh

Director, Program Standards Director, Program Standards DivisionDivision

Office of Fair Housing and Office of Fair Housing and Equal OpportunityEqual Opportunity

1

Fair Housing PlanningFair Housing Planning in Your Community in Your Community

““Ensure Equal Opportunity and Ensure Equal Opportunity and Access to Housing” means:Access to Housing” means:-- Reducing Housing Discrimination-- Reducing Housing Discrimination

-- Promote public awareness of fair -- Promote public awareness of fair housing lawshousing laws

-- Improving the accessibility of -- Improving the accessibility of housing to persons with housing to persons with disabilitiesdisabilities

1

Fair Housing Planning Fair Housing Planning in Your Communityin Your Community

Fair Housing Planning - A Fair Housing Planning - A Comprehensive Strategy to ”Ensure Comprehensive Strategy to ”Ensure Equal Opportunity and Access to Equal Opportunity and Access to Housing”Housing”

FH Planning contributes to “Ensure FH Planning contributes to “Ensure Equal Opportunity and Access to Equal Opportunity and Access to Housing”Housing”

1

Fair Housing Planning Fair Housing Planning in Your Communityin Your Community

Fair Housing Planning is part of the Fair Housing Planning is part of the Consolidated PlanConsolidated Plan

Section 808 (e) (5) of the FH Act…Section 808 (e) (5) of the FH Act…““The Secretary shall administer the The Secretary shall administer the programs and activities relating to programs and activities relating to housing and urban development in housing and urban development in a manner to affirmatively further a manner to affirmatively further the policies of the Act.”the policies of the Act.”

1

FAIR HOUSING PLANNING GUIDEFAIR HOUSING PLANNING GUIDE

More information is available in the More information is available in the Fair Housing Planning Guide, Fair Housing Planning Guide, Volume I, that is available Volume I, that is available through the following website:through the following website:

http://www.hud.gov/fhe/http://www.hud.gov/fhe/fhplan.htmlfhplan.html

1

FAIR HOUSING PLANNING IN FAIR HOUSING PLANNING IN

YOUR COMMUNITYYOUR COMMUNITY

Objectives of Affirmatively Furthering Fair Objectives of Affirmatively Furthering Fair HousingHousing – Eliminate housing discriminationEliminate housing discrimination– Promote fair housing choicePromote fair housing choice– Provide opportunity for racially and Provide opportunity for racially and

ethnically inclusive occupancy patternsethnically inclusive occupancy patterns– Promote accessibility for persons with Promote accessibility for persons with

disabilitiesdisabilities

1

Fair Housing Planning in Fair Housing Planning in Your CommunityYour Community

What is Fair Housing Choice?What is Fair Housing Choice?

The ability of persons regardless of The ability of persons regardless of race, color, religion, sex, disability, race, color, religion, sex, disability, familial status or national origin to familial status or national origin to have available to them the same have available to them the same housing choices.housing choices.

1

Fair Housing Planning in Your Fair Housing Planning in Your

Community - AFFH CertificationCommunity - AFFH Certification

Conducting an Analysis of Conducting an Analysis of Impediments to Fair Housing ChoiceImpediments to Fair Housing Choice

Taking Actions to Address the Taking Actions to Address the Impediments Identified in the AIImpediments Identified in the AI

Maintaining Records; Sources:Maintaining Records; Sources:24 CFR 91.225(a) [Localities]; 24 CFR 91.225(a) [Localities]; 91.325(a)[States];91.325(a)[States];91.425[Consortia].91.425[Consortia].

1

Fair Housing Planning in Your Fair Housing Planning in Your Community - What is an AI?Community - What is an AI?

Comprehensive Review of:Comprehensive Review of:– Laws, Regulations and Laws, Regulations and

Administrative Procedures Administrative Procedures Affecting the:Affecting the:

LocationLocation AvailabilityAvailability Accessibility of HousingAccessibility of Housing

– Assessment of Conditions Assessment of Conditions Affecting Fair Housing ChoiceAffecting Fair Housing Choice

1

What Do We Mean By What Do We Mean By Impediments to Fair Housing Impediments to Fair Housing

Choice?Choice?

Any actions, omissions or decisions Any actions, omissions or decisions taken because of race, color, religion, taken because of race, color, religion, sex, national origin, disability or familial sex, national origin, disability or familial status that status that restrict restrict housing choice or housing choice or the availability of housing choice.the availability of housing choice.

(Source: Fair Housing Planning Guide, (Source: Fair Housing Planning Guide, Volume 1, Page 2-17)Volume 1, Page 2-17)

1

Fair Housing Planning - Fair Housing Planning - Examples of ImpedimentsExamples of Impediments

Racial segregations/steeringRacial segregations/steering Lack of Affordable Housing/FinancingLack of Affordable Housing/Financing Lack of support for facilities serving Lack of support for facilities serving

persons with disabilitiespersons with disabilities Lack of local fair housing enforcement, Lack of local fair housing enforcement,

focus, or supportfocus, or support Lack of financial support for fair housing Lack of financial support for fair housing

enforcement and education and outreach enforcement and education and outreach activitiesactivities

1

Fair Housing Planning - Fair Housing Planning - Examples of ImpedimentsExamples of Impediments

Zoning barriers to affordable Zoning barriers to affordable housinghousing

Intolerance toward minorities Intolerance toward minorities

moving into non-minority moving into non-minority neighborhoods. [NIMBYISM; Hate neighborhoods. [NIMBYISM; Hate and Violence Crimes]and Violence Crimes]

1

Examples of Actions to Address Examples of Actions to Address ImpedimentsImpediments

Provide Cultural Sensitive training -- Ensure Provide Cultural Sensitive training -- Ensure Safety of Families Moving to Non-traditional Safety of Families Moving to Non-traditional NeighborhoodsNeighborhoods

Enact/Enforce Substantially Equivalent LawsEnact/Enforce Substantially Equivalent Laws Provide Financial Support for Fair Housing Provide Financial Support for Fair Housing

EnforcementEnforcement Equalize Conditions Between Minority/Non-Equalize Conditions Between Minority/Non-

minority Areas through HUD fundsminority Areas through HUD funds

1

Fair Housing PlanningFair Housing PlanningExamples of ActionsExamples of Actions

Promote homeownership through Promote homeownership through Housing CounselingHousing Counseling

Remove barriers to affordable Remove barriers to affordable housinghousing

Conduct and promote fair housing Conduct and promote fair housing testingtesting

Conduct and promote fair housing Conduct and promote fair housing education and outreacheducation and outreach

1

FAIR HOUSING PLANNINGFAIR HOUSING PLANNINGEXAMPLES OF ACTIONS, CONT.EXAMPLES OF ACTIONS, CONT.

Translate crucial information into Translate crucial information into different languages to better serve the different languages to better serve the limited English proficient population limited English proficient population

Create a FH coordinator within your Create a FH coordinator within your organizationorganization

1

FAIR HOUSING PLANNINGFAIR HOUSING PLANNINGEXAMPLES OF ACTIONS, CONT.EXAMPLES OF ACTIONS, CONT.

Partner with local Fair Housing Partner with local Fair Housing Initiatives Program (FHIP) Initiatives Program (FHIP) organizations and Fair Housing organizations and Fair Housing Assistance Program (FHAP) Assistance Program (FHAP) organizationsorganizations

1

Fair Housing Planning - Fair Housing Planning - Maintaining RecordsMaintaining Records

Supporting documentation should Supporting documentation should include:include:– The AIThe AI– Actions undertaken to address any Actions undertaken to address any

identified impedimentsidentified impediments– Records such as transcripts of public Records such as transcripts of public

hearings and citizen commentshearings and citizen comments– Progress reports on implementationProgress reports on implementation

1

FAIR HOUSING PLANNING - FAIR HOUSING PLANNING - HUD’S ROLEHUD’S ROLE

Technical AssistanceTechnical Assistance Review of AI at many points in Review of AI at many points in

Consolidated Plan Life Cycle Consolidated Plan Life Cycle – Annual Plan or Five-Year Consolidated Annual Plan or Five-Year Consolidated

PlanPlan– Comprehensive Annual Performance Comprehensive Annual Performance

and Evaluation Reportand Evaluation Report– Consultation with Local/State OfficialsConsultation with Local/State Officials– Monitoring VisitMonitoring Visit

1

Fair Housing Planning – Fair Housing Planning – Recipients EvaluationRecipients Evaluation

The AIThe AIThe milestones and timetablesThe milestones and timetablesThe fair housing actionsThe fair housing actions

(Source: Fair Housing Planning Guide, Part 1, (Source: Fair Housing Planning Guide, Part 1, Page 2-24)Page 2-24)

1

Fair Housing Planning - Fair Housing Planning - HUD EvaluationHUD Evaluation

SUBSTANTIALLY INCOMPLETESUBSTANTIALLY INCOMPLETE– Impediments plainly inconsistent Impediments plainly inconsistent

w/generally available facts and dataw/generally available facts and data– Incomplete where facts/data indicate Incomplete where facts/data indicate

the presence of an impediment not the presence of an impediment not identified in the AIidentified in the AI

(Source: Fair Housing Planning Guide, (Source: Fair Housing Planning Guide,

Part 1, Page 2-24)Part 1, Page 2-24)

1

Fair Housing Planning - Fair Housing Planning - HUD Evaluation (Cont.)HUD Evaluation (Cont.)

ACTIONS PLAINLY INAPPROPRIATEACTIONS PLAINLY INAPPROPRIATE-- Examples: -- Examples: – Fair housing poster contest Fair housing poster contest

addresses lending discriminationaddresses lending discrimination– Citizen participation notices in Citizen participation notices in

English only whenEnglish only when 25% of the 25% of the population is limited English proficientpopulation is limited English proficient

(Source: Fair Housing Planning Guide, (Source: Fair Housing Planning Guide, Part 1, Page 2-24)Part 1, Page 2-24)

1

Fair Housing Planning - Fair Housing Planning - HUD Evaluation (Cont.)HUD Evaluation (Cont.)

Provide notice and opportunity for commentProvide notice and opportunity for comment Working with the jurisdiction on actions to:Working with the jurisdiction on actions to:

– make the AI completemake the AI complete– overcome the effects of the identified overcome the effects of the identified

impedimentsimpediments Include a timetable for accomplishing Include a timetable for accomplishing

the actionsthe actions

1

FAIR HOUSING PLANNING FAIR HOUSING PLANNING CONCLUSIONCONCLUSION

Training and Technical Training and Technical AssistanceAssistance

Target date for new AIsTarget date for new AIs

1

CDBG DESIGN CDBG DESIGN CATEGORIESCATEGORIES

CDBG CharacteristicsCDBG Characteristics

Local ConsiderationsLocal Considerations

CDBG Management CDBG Management IssuesIssues

1

Community Community Development Block Development Block

Grant (CDBG) ProgramGrant (CDBG) Program

Eligible ActivitiesEligible Activities

1

““6 Steps” 6 Steps”

Determining Whether Determining Whether CDBG Can Assist an CDBG Can Assist an

ActivityActivity

1

Step OneStep One

Is the activity included within Is the activity included within the list of eligible activities in the list of eligible activities in the CDBG regulations?the CDBG regulations?

Reference: Reference: §570. §570. 201 – 570.206 201 – 570.206

1

Step TwoStep Two

Is the activity included in one Is the activity included in one of the categories of explicitly of the categories of explicitly ineligible activities?ineligible activities?

Reference: §570.207Reference: §570.207

1

Step ThreeStep Three

Does the activity meet the Does the activity meet the criteria of at least one of the criteria of at least one of the national objectives of the national objectives of the CDBG program?CDBG program?

Reference: §570.208Reference: §570.208

1

Step FourStep Four Ensure that the grantee remains in compliance Ensure that the grantee remains in compliance

with its certification that at least with its certification that at least 70%70% of its CDBG of its CDBG expenditures over a 1, 2, or 3 year period will be expenditures over a 1, 2, or 3 year period will be for activities benefiting low/mod-income persons.for activities benefiting low/mod-income persons.

Reference: §570.200 (a) (3)Reference: §570.200 (a) (3)

1

Step FiveStep Five

Do the proposed costs for the Do the proposed costs for the activity appear necessary and activity appear necessary and reasonable and would those costs reasonable and would those costs conform to requirements of conform to requirements of applicable OMB Circulars?applicable OMB Circulars?

Reference: §570.502 and Parts 84 & Reference: §570.502 and Parts 84 & 8585

1

Step SixStep Six

Have the environmental review Have the environmental review and clearance procedures been and clearance procedures been completed for the project of completed for the project of which the activity is a part?which the activity is a part?

Reference: 24 CFR Part 58Reference: 24 CFR Part 58

1

ACQUISITION – 570.201(a)ACQUISITION – 570.201(a)

Includes air rights, water rights, Includes air rights, water rights, rights of way, and easements.rights of way, and easements.

Purchase, long-term lease (at least 15 Purchase, long-term lease (at least 15 years), or donation.years), or donation.

Carried out by the grantee or a public Carried out by the grantee or a public or private nonprofit organization.or private nonprofit organization.

1

CLEARANCE – 570.201(d)CLEARANCE – 570.201(d)

Clearance, demolition, and removal of Clearance, demolition, and removal of buildings and improvements.buildings and improvements.

Physical removal and treatment of Physical removal and treatment of contaminants.contaminants.

Includes the movement of structures to Includes the movement of structures to other sites.other sites.

1

REHABILITATION – 570.202REHABILITATION – 570.202

Types of buildings that may be Types of buildings that may be assisted:assisted:. residential buildings. residential buildings. public or privately owned . public or privately owned commercial or industrial buildings commercial or industrial buildings with limitations with limitations . non-profit owned, nonresidential . non-profit owned, nonresidential buildings not public facilitiesbuildings not public facilities. manufactured housing that is part . manufactured housing that is part of permanent housing stock.of permanent housing stock.

1

REHABILITATION – 570.202REHABILITATION – 570.202 Code EnforcementCode Enforcement

• Pay Salaries of Enforcement Pay Salaries of Enforcement PersonnelPersonnel

• Legal enforcement proceedingsLegal enforcement proceedings• In Deteriorated AreaIn Deteriorated Area• Must arrest the declineMust arrest the decline

1

DISPOSITION – 570.201(b)DISPOSITION – 570.201(b)

Real property acquired with CDBG may Real property acquired with CDBG may be disposed of by sale, lease, donation, be disposed of by sale, lease, donation, or otherwise.or otherwise.

Reasonable costs of temporarily Reasonable costs of temporarily managing the property are allowed.managing the property are allowed.

Proceeds are program income.Proceeds are program income.

1

PUBLIC FACILITIES & IMPROVEMENTS PUBLIC FACILITIES & IMPROVEMENTS – 570.201(c)– 570.201(c)

• Acquisition, construction, Acquisition, construction, reconstruction, rehabilitation, or reconstruction, rehabilitation, or installation. Examples:installation. Examples:• Day Care CentersDay Care Centers• LibrariesLibraries• Street ImprovementsStreet Improvements• Improvement of parks and Improvement of parks and

playgroundsplaygrounds

1

PUBLIC SERVICES – PUBLIC SERVICES – 570.201(e)570.201(e)

Wide range of services, including Wide range of services, including but not limited to:but not limited to:– Employment– Crime prevention– Child care– Health– Education

1

PUBLIC SERVICES – cont.PUBLIC SERVICES – cont.

To qualify, an activity must be either a To qualify, an activity must be either a new service or a quantifiable increase in new service or a quantifiable increase in the level of an existing service.the level of an existing service.

Funds expended cannot exceed 15% of Funds expended cannot exceed 15% of the grant plus 15% of last year’s the grant plus 15% of last year’s program income.program income.

1

HOMEOWNERSHIP ASSISTANCE –HOMEOWNERSHIP ASSISTANCE –570.201(n)570.201(n)

Pay 50% of the downpaymentPay 50% of the downpayment All reasonable closing costsAll reasonable closing costs Pay the mortgage insurance premiumPay the mortgage insurance premium subsidizing interest rates and subsidizing interest rates and

mortgage principalmortgage principal Finance the cost of acquiring property Finance the cost of acquiring property

already occupied by the householdalready occupied by the household Limited to low and moderate income Limited to low and moderate income

households.households.

1

ASSISTANCE TO MICROENTERPRISES ASSISTANCE TO MICROENTERPRISES – 570.201(o)– 570.201(o)

A business with five or fewer employees, A business with five or fewer employees, including the owner.including the owner.

Facilitate the establishment, stabilization, and Facilitate the establishment, stabilization, and expansion of microenterprises.expansion of microenterprises.

Technical assistance, advice and business Technical assistance, advice and business support services.support services.

General support services such as child care General support services such as child care and transportation.and transportation.

1

Special Economic Special Economic Development ActivitiesDevelopment Activities

Commercial or industrial buildings or Commercial or industrial buildings or improvements carried out by the improvements carried out by the grantee or nonprofit subrecipient.grantee or nonprofit subrecipient.

1

Special Economic Special Economic Development ActivitiesDevelopment Activities

Con’t.Con’t. Assistance to a for-profit business to Assistance to a for-profit business to

carry out an economic development carry out an economic development project.project.

Related economic development Related economic development services.services.Reference: §570.203Reference: §570.203

1

Public Benefit Public Benefit StandardsStandards

Apply to activities individually and in Apply to activities individually and in the aggregate. the aggregate.

Measured either based on jobs Measured either based on jobs created/retained, or providing goods created/retained, or providing goods and services to low-mod residents of and services to low-mod residents of an area. an area.

1

New ConstructionNew Construction

Not generally eligible; allowed Not generally eligible; allowed only in certain circumstances.only in certain circumstances.– Reference: §570.207(b)(3)Reference: §570.207(b)(3)

1

New ConstructionNew Construction

Most common - “Special Activities Most common - “Special Activities by Community-Based Development by Community-Based Development Organizations (CBDOs).”Organizations (CBDOs).”– Reference: §570.204Reference: §570.204

Also allow various “support” Also allow various “support” activities.activities.

1

Planning Activities Planning Activities - - §570.205§570.205

Eligible planning, urban Eligible planning, urban environmental design and policy-environmental design and policy-planning-management-capacity planning-management-capacity building activities.building activities.

1

Program Administrative Program Administrative Costs - Costs - §570.206§570.206

Program Administrative Costs –Program Administrative Costs –eligible costs include general eligible costs include general management, oversight and management, oversight and coordination; public information; coordination; public information; fair housing costs; administrative fair housing costs; administrative expenses to facilitate housing.expenses to facilitate housing.

1

Eligibility SummaryEligibility Summary

Wide range of eligible activities, Wide range of eligible activities, but there are limits. (570.201 –but there are limits. (570.201 –570.206)570.206)

General Rule -- If it’s not part of a General Rule -- If it’s not part of a listed category, it’s not eligible.listed category, it’s not eligible.

Some activities are explicitly Some activities are explicitly ineligible. (570.207) ineligible. (570.207)

87

National Objectives National Objectives SegmentSegment

NATIONAL OBJECTIVESNATIONAL OBJECTIVES Where are the National Where are the National

Objective regs. found? Objective regs. found?

24 CFR §570.20824 CFR §570.208

1

Important Web SitesImportant Web Sites

Code of Federal Regulations – Code of Federal Regulations – CDBG Program @ 24 CFR 570 CDBG Program @ 24 CFR 570

CDBG Regulations CDBG Regulations –www.hud.gov/offices/cpd/–www.hud.gov/offices/cpd/communitydevelopment/communitydevelopment/rulesandregs/index.cfmrulesandregs/index.cfm

1

Important Web SitesImportant Web Sites

Guide to National Objectives and Guide to National Objectives and Eligible Activities for Entitlement Eligible Activities for Entitlement CommunitiesCommunities – –

www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/communitydevelopment/communitydevelopment/library/deskguid.cfmlibrary/deskguid.cfm

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What are the three What are the three National Objectives?National Objectives?

– Principally benefit low/mod income persons

– Prevent or eliminate slums and blight

– Meet an urgent community development need having a particular urgency…

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Urgent NeedUrgent Need

……existing conditions pose a serious existing conditions pose a serious and immediate threat to the health or and immediate threat to the health or welfare of the community where other welfare of the community where other financial resources are not available to financial resources are not available to meet such need.meet such need.

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Urgent NeedUrgent Need

Existing conditions are recent or Existing conditions are recent or recently became urgent (within the last recently became urgent (within the last 18 months)18 months)

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INCOME LIMITSINCOME LIMITS

CDBG Moderate IncomeCDBG Moderate Income - Section 8 low - Section 8 low income limits = at or below 80% of income limits = at or below 80% of median income. median income.

CDBG Low IncomeCDBG Low Income - Section 8 very low - Section 8 very low income limits = at or below 50% of income limits = at or below 50% of median income.median income.

CDBG Extremely Low IncomeCDBG Extremely Low Income - Section 8 - Section 8 extremely low income limits = at or extremely low income limits = at or below 30% of median income.below 30% of median income.

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FAMILYFAMILY

All persons living together All persons living together who are related by birth, who are related by birth, marriage or adoption.marriage or adoption.

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HOUSEHOLDHOUSEHOLD

All persons living together in a housing All persons living together in a housing unit. This could be a single family, one unit. This could be a single family, one person living alone, two or more person living alone, two or more families living together, or any other families living together, or any other group of related or unrelated persons group of related or unrelated persons who share living arrangements.who share living arrangements.

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AREA BENEFIT – 570.208(a)(1)AREA BENEFIT – 570.208(a)(1)

To qualify, the grantee must determine To qualify, the grantee must determine that the activity is:that the activity is:

1.1. Available to all residents of the Available to all residents of the service area, where at least 51% service area, where at least 51% are Low/Modare Low/Mod

2.2. Located in a primarily residential Located in a primarily residential area, andarea, and

3.3. Located in a defined service areaLocated in a defined service area

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AREA BENEFIT (cont.)AREA BENEFIT (cont.)

DETERMINING SERVICE AREADETERMINING SERVICE AREA

– Nature of the activity– Location of the activity– Accessibility– Availability of comparable activities

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AREA BENEFIT (cont.)AREA BENEFIT (cont.)

EXCEPTION CRITERIAEXCEPTION CRITERIA Grantee qualifies when fewer than one Grantee qualifies when fewer than one

quarter of the block groups in its quarter of the block groups in its jurisdiction contains 51% or more low jurisdiction contains 51% or more low and moderate income persons.and moderate income persons.

Referred to as the Upper Quartile Referred to as the Upper Quartile exception criteria.exception criteria.

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LIMITED CLIENTELE – 570.208(a)LIMITED CLIENTELE – 570.208(a)(2)(2)

Limited clientele activities must meet Limited clientele activities must meet one of four tests:one of four tests:

1.1. Benefits a clientele who are Benefits a clientele who are generally presumed to be generally presumed to be principally low and moderate principally low and moderate incomeincome

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LIMITED CLIENTELE – 570.208(a)(2)LIMITED CLIENTELE – 570.208(a)(2)

– abused childrenabused children– elderly personselderly persons– battered spousesbattered spouses– homeless personshomeless persons– illiterate adultsilliterate adults– adults meeting the Census adults meeting the Census

definition of severely disableddefinition of severely disabled– persons with AIDS persons with AIDS – migrant farm workersmigrant farm workers

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LIMITED CLIENTELE – cont.LIMITED CLIENTELE – cont.

2. 51% of participants are low and 2. 51% of participants are low and moderate income persons.moderate income persons.

3.3. Participation limited to low and Participation limited to low and moderate income persons.moderate income persons.

4.4. Nature and location indicate Nature and location indicate activities will primarily benefit activities will primarily benefit low and moderate income low and moderate income persons.persons.

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LIMITED CLIENTELE – cont.LIMITED CLIENTELE – cont.

5. Owners and persons 5. Owners and persons developing microenterprises developing microenterprises who are low and moderate who are low and moderate income can qualify under this income can qualify under this category for up to 3 years. category for up to 3 years.

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HOUSINGHOUSING – 570.208(a)(3) – 570.208(a)(3)

To meet the low and To meet the low and moderate income housing moderate income housing national objective, the national objective, the following apply:following apply:

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– One-unit structure – occupied by One-unit structure – occupied by low/mod income householdlow/mod income household

– Two-unit structure - 1 unit must Two-unit structure - 1 unit must be occupied by a low/mod income be occupied by a low/mod income householdhousehold

– Three-plus-unit structure - 51% of Three-plus-unit structure - 51% of units must be occupied by units must be occupied by low/mod income householdslow/mod income households

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HOUSING (cont.)HOUSING (cont.)

Rents in CDBG assisted housing Rents in CDBG assisted housing units must be affordable to low units must be affordable to low and moderate income and moderate income households. If not, the assisted households. If not, the assisted units do not meet the low and units do not meet the low and moderate income housing moderate income housing national objective criteria.national objective criteria.

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JOBS – 570.208(a)(4)JOBS – 570.208(a)(4)

In order to meet the low and In order to meet the low and moderate income National moderate income National Objective under JOBS, Objective under JOBS, activities must: activities must:

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JOBS – 570.208(a)(4)JOBS – 570.208(a)(4)

1.1. Create Create oror retain permanent jobs, retain permanent jobs,

ANDAND

2.2. 51% of the jobs created/ 51% of the jobs created/retained must be made available to retained must be made available to oror held by low- and moderate- income held by low- and moderate- income personspersons– Jobs counted on full time equivalent Jobs counted on full time equivalent

(FTE) basis (using 40 hour week).(FTE) basis (using 40 hour week).

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Slums and BlightSlums and Blight

Slum or Blighted AreasSlum or Blighted AreasSpot BlightSpot BlightUrban Renewal CompletionUrban Renewal Completion

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Slum/Blight Area - Slum/Blight Area - §570.208(b)(1)§570.208(b)(1)

Area must be designated by Area must be designated by the grantee as a slum/blighted the grantee as a slum/blighted area andarea and– Meet a definition of slum, blight,

deteriorated or deteriorating under State or local law, and

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Slum/Blight Area - Slum/Blight Area - §570.208(b)(1)§570.208(b)(1)

– Have a substantial number of buildings or public improvements in a state of deterioration.

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Slum/Blight Area - Slum/Blight Area - §570.208(b)(1)§570.208(b)(1)

Maintain documentation on area Maintain documentation on area boundaries and conditions which boundaries and conditions which qualified the area at the time it was qualified the area at the time it was designated.designated.

Assisted activity must address one or Assisted activity must address one or more of the conditions which more of the conditions which contributed to the areas’ contributed to the areas’ deterioration.deterioration.

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Slum/Blight Area - Slum/Blight Area - §570.208(b)(1)§570.208(b)(1)

Residential rehab considered Residential rehab considered to meet this criterion if: to meet this criterion if: – Each building is considered substandard under local

definition; and– Deficiencies making building substandard are

corrected before less critical work is done.

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Spot BlightSpot Blight - - §570.208(b)(2)§570.208(b)(2)Activities located outside a Activities located outside a

designated slum/blight area.designated slum/blight area.Only certain activities can Only certain activities can

qualify.qualify.

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Spot BlightSpot Blight - - §570.208(b)(2)§570.208(b)(2)

Building rehab is limited to Building rehab is limited to extent necessary to eliminate extent necessary to eliminate specific conditions detrimental specific conditions detrimental to public health and safety.to public health and safety.

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Slum Blight/Urban Slum Blight/Urban Renewal - Renewal - §570.208(b)(3)§570.208(b)(3)

Activities must be in a Federal Urban Activities must be in a Federal Urban Renewal (UR) or Neighborhood Renewal (UR) or Neighborhood Development Program action areaDevelopment Program action area

Activities must be necessary to Activities must be necessary to complete an Urban Renewal Plancomplete an Urban Renewal Plan

Not commonly usedNot commonly used

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SUBRECIPIENT DEFINEDSUBRECIPIENT DEFINED

Reg. cite §570.500(c)Reg. cite §570.500(c) Public or private nonprofit Public or private nonprofit

organization/ agency receiving organization/ agency receiving CDBG funds from grantee for CDBG funds from grantee for eligible activitieseligible activities

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SUBRECIPIENT SUBRECIPIENT DEFINED Cont.DEFINED Cont.

– A for-profit agency assisting A for-profit agency assisting microenterprises may be a microenterprises may be a subrecipientsubrecipient

– Institutions of higher Institutions of higher learning may be learning may be subrecipientssubrecipients

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SUBRECIPIENT DEFINED SUBRECIPIENT DEFINED Cont.Cont.

– CBDOs not automatically CBDOs not automatically subrecipientssubrecipients

– Contractors not Contractors not subrecipientssubrecipients

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SUBRECIPIENT SUBRECIPIENT AGREEMENTS Cont.AGREEMENTS Cont.

What are the required What are the required elements of the elements of the subrecipient agreement?subrecipient agreement?

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SUBRECIPIENT SUBRECIPIENT AGREEMENTS Cont.AGREEMENTS Cont.

– Statement of work -work to be Statement of work -work to be performed, scheduled, & a budget performed, scheduled, & a budget in sufficient detail to monitorin sufficient detail to monitor

– Records to be maintained and Records to be maintained and reports to be submittedreports to be submitted

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SUBRECIPIENT SUBRECIPIENT AGREEMENTS Cont.AGREEMENTS Cont.

– Program income - what’s to Program income - what’s to be remitted back to be remitted back to recipient AND what may be recipient AND what may be revolvedrevolved

– Uniform administrative & Uniform administrative & other federal requirements other federal requirements per §570.502 + §570 per §570.502 + §570 Subpart KSubpart K

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SUBRECIPIENT SUBRECIPIENT AGREEMENTS Cont.AGREEMENTS Cont.

– Suspension/termination & Suspension/termination & reversion of assetsreversion of assets

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CBDOs v. SUBRECIPIENTSCBDOs v. SUBRECIPIENTS

A CBDO is not automatically a A CBDO is not automatically a subrecipient; a grantee must subrecipient; a grantee must decide how to treat the decide how to treat the organizationorganization

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CBDOs v. SUBRECIPIENTS CBDOs v. SUBRECIPIENTS Cont.Cont.

Implications:Implications:

– Program incomeProgram income– Written agreement Written agreement

requirementsrequirements– Uniform administrative Uniform administrative

requirements, incl. reversion of requirements, incl. reversion of assetsassets

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TWO TOPICSTWO TOPICS

Availability of ResourcesAvailability of Resources

Importance of Reporting Importance of Reporting AccomplishmentsAccomplishments

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THE 10 MOST THE 10 MOST IMPORTANT THINGS IMPORTANT THINGS YOU NEED TO KNOW YOU NEED TO KNOW

ABOUTABOUT

IDISIDIS

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10. A plethora of 10. A plethora of resources are resources are available to assist available to assist you in performing you in performing functions in IDIS.functions in IDIS.

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9. Join the IDIS User 9. Join the IDIS User Group by Group by e-mailing:e-mailing:

amoffitt@HDsoftware.netamoffitt@HDsoftware.net

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8. Use the IDIS Matrix 8. Use the IDIS Matrix Code Definitions at:Code Definitions at:

www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/pdf/refmanual/systems/idis/pdf/refmanual/ref_man_b.pdfref_man_b.pdf

ANDAND

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The Matrix The Matrix Code/National Code/National Objective Code Objective Code Table at:Table at:

www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/resources/systems/idis/resources/cdbg_xref.cfmcdbg_xref.cfm

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7. Read Guidance for 7. Read Guidance for Reporting IDIS Reporting IDIS Accomplishments at:Accomplishments at:

www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/communitydevelopment/cleanup/communitydevelopment/cleanup/guidance/index.cfmguidance/index.cfm

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TELLS HOW TO:TELLS HOW TO:

Report information on IDIS Report information on IDIS screensscreens

When and how often to When and how often to Report accomplishmentsReport accomplishments

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TELLS HOW TO:TELLS HOW TO:

Avoid double counting Avoid double counting activitiesactivities

Select accomplishment Select accomplishment codescodes

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Accomplishment Accomplishment Types: Types:

01 People01 People04 Households04 Households08 Businesses08 Businesses

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AccomplishmentAccomplishment Types: Types:

09 Organizations09 Organizations

10 Housing Units10 Housing Units

11 Public Facilities11 Public Facilities

13 Jobs13 Jobs

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6. 6. UseUse the IDIS the IDIS Reference Manual at:Reference Manual at:

www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/resources/systems/idis/resources/reference_manual.cfmreference_manual.cfm

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5. Contact your 5. Contact your CPD Field Office CPD Field Office representative.representative.

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4.4. Contact the Contact the IDIS Technical IDIS Technical Assistance Unit Assistance Unit (TAU) at:(TAU) at:

1-800-273-25731-800-273-2573

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3. HUD is 3. HUD is requiredrequired to collect accurate to collect accurate and timely and timely accomplishment accomplishment informationinformation..

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Government Performance Government Performance and Results Act of 1993 and Results Act of 1993 (GPRA)(GPRA)

Office of Management and Office of Management and Budget directives Budget directives

Program legislation and Program legislation and regulationsregulations

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2. Most annual 2. Most annual reporting reporting requirements are met requirements are met by the data you enter by the data you enter into IDIS.into IDIS.

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Activity Summary Report Activity Summary Report (PR03), and(PR03), and

Financial Summary Report Financial Summary Report (PR26) explained at:(PR26) explained at: www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/pdf/systems/idis/pdf/explnfinsum.pdfexplnfinsum.pdf

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1. Information on the 1. Information on the results and benefits of results and benefits of CDBG-assisted activities CDBG-assisted activities validate the success of validate the success of your program in your program in fulfilling its mission to… fulfilling its mission to…

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assist low- and assist low- and moderate-income moderate-income persons.persons.

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Grantee Expenditures:Grantee Expenditures:

www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/communitydevelopment/communitydevelopment/budget/budget/disbursementreports/disbursementreports/index.cfm index.cfm

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www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/communitydevelopment/communitydevelopment/library/accomplishments/library/accomplishments/index.cfmindex.cfm

Grantee Grantee Accomplishments:Accomplishments:

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CDBG grantees CDBG grantees continue to improve continue to improve the quality of data in the quality of data in IDIS through our Data IDIS through our Data Cleanup Initiative at:Cleanup Initiative at:

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www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/communitydevelopment/communitydevelopment/cleanup/index.cfmcleanup/index.cfm

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CDBG & IDISCDBG & IDIS

THE ENDTHE END

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WHICH HARDWARE/ WHICH HARDWARE/ SOFTWARESOFTWARE

‘‘www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/start/index/systems/idis/start/index/

cfmcfm

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‘‘www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/start/access/systems/idis/start/access/

firewall_ports.cfmfirewall_ports.cfm

COMMUNICATING COMMUNICATING WITH IDISWITH IDIS

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USER IDsUSER IDs

Two User IDs requiredTwo User IDs required

‘‘www.hud.gov/offices/cpd/www.hud.gov/offices/cpd/systems/idis/start/index/systems/idis/start/index/

cfmcfm

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IDIS ASSISTANCEIDIS ASSISTANCE

IDIS Technical Assistance UnitIDIS Technical Assistance Unit(800)273-2573(800)273-25738 AM – 5 PM Eastern Time8 AM – 5 PM Eastern Time

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RECORD KEEPINGRECORD KEEPING

WHY record keeping is importantWHY record keeping is importantWHAT kinds of records need to be WHAT kinds of records need to be

maintainedmaintainedHOW can you best handle record HOW can you best handle record

keeping responsibilitieskeeping responsibilities

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HUD AND COMPLIANCEHUD AND COMPLIANCE

HUD must ensure grantees use HUD must ensure grantees use CDBG funds in compliance with CDBG funds in compliance with program rulesprogram rules

HUD determines whether grantees HUD determines whether grantees use CDBG funds in furtherance of use CDBG funds in furtherance of their Consolidated Plan priority their Consolidated Plan priority goals and objectivesgoals and objectives

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FIRST STEP TO FIRST STEP TO COMPLIANCECOMPLIANCE

First step to compliance is First step to compliance is KNOWLEDGEKNOWLEDGE

Compliance tests are “open Compliance tests are “open book tests”book tests”

Seek compliance direction in Seek compliance direction in specificspecific regulations regulations

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WHY YOU NEED RECORDS WHY YOU NEED RECORDS

FirstFirst, to facilitate HUD monitoring, to facilitate HUD monitoring

570.900(b)(3) – A recipient’s 570.900(b)(3) – A recipient’s failure to maintain records in the failure to maintain records in the prescribed manner may result in aprescribed manner may result in a finding that the recipient has failed finding that the recipient has failed to meet the applicable to meet the applicable requirement to which the record requirement to which the record pertains.pertains.

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WHY YOU NEED RECORDSWHY YOU NEED RECORDS

SecondSecond, to keep local officials , to keep local officials informedinformed

Local officials want to know what Local officials want to know what the community is getting out of the community is getting out of the CDBG Programthe CDBG Program

Outputs and OutcomesOutputs and Outcomes

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WHY YOU NEED RECORDSWHY YOU NEED RECORDS

ThirdThird, to report to local citizens & , to report to local citizens & stakeholders stakeholders andand HUD in the CAPER HUD in the CAPER

Records are essential to show Records are essential to show progressprogress in meeting Consolidated Plan goals & in meeting Consolidated Plan goals & objectives objectives andand in implementing your in implementing your CDBG ProgramCDBG Program

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WHAT KINDS OF WHAT KINDS OF RECORDS?RECORDS?

TEN Broad Categories of RecordsTEN Broad Categories of Records

1. Records showing progress in 1. Records showing progress in meeting Consolidated Plan meeting Consolidated Plan priority goals and objectivespriority goals and objectives

2. Financial records2. Financial records

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WHAT KINDS OF RECORDSWHAT KINDS OF RECORDS

3. Records of CDBG accomplishments (outputs) – how many jobs, 3. Records of CDBG accomplishments (outputs) – how many jobs, etc.etc.

4. Records on CDBG beneficiaries (incomes data on persons 4. Records on CDBG beneficiaries (incomes data on persons and households)and households)

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WHAT KINDS OF RECORDSWHAT KINDS OF RECORDS

5. Additional records for 5. Additional records for Eligibility,National Objectives, and Eligibility,National Objectives, and Overall BenefitOverall Benefit

6. Records of compliance with 6. Records of compliance with Environmental Review Environmental Review Requirements (24 CFR Part 58)Requirements (24 CFR Part 58)

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WHAT KINDS OF RECORDSWHAT KINDS OF RECORDS

7. Records pertinent to flexibilities 7. Records pertinent to flexibilities in regulations – neighborhood in regulations – neighborhood revitalization strategy areasrevitalization strategy areas

8. Records of compliance with 8. Records of compliance with Other Federal Requirements Other Federal Requirements (like equal opportunity rules)(like equal opportunity rules)

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WHAT KINDS OF RECORDSWHAT KINDS OF RECORDS

9. Records of compliance with9. Records of compliance with general responsibilities (like general responsibilities (like citizen participation rules)citizen participation rules)

10. Records on OUTCOMES – 10. Records on OUTCOMES – benefit to community as a benefit to community as a wholewhole

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HOW TO DO THE JOBHOW TO DO THE JOB

The The firstfirst step to compliance is step to compliance is knowledgeknowledge

WhatWhat specific records do specific records do grantees need to maintain?grantees need to maintain?

WhereWhere do grantees look? do grantees look?

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WHERE DO GRANTEES WHERE DO GRANTEES LOOK?LOOK?

CDBG regulations – section CDBG regulations – section 570.506 (“Records to be 570.506 (“Records to be maintained”)maintained”)

Elsewhere in CDBG and Elsewhere in CDBG and Consolidated Plan regulations Consolidated Plan regulations (requirement = records)(requirement = records)

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WHERE DO GRANTEES WHERE DO GRANTEES LOOK?LOOK?

Your Consolidated Plan – what are your Your Consolidated Plan – what are your goals and objectives?goals and objectives?

Your Certifications – what did you Your Certifications – what did you commit to do? (for example, commit to do? (for example, affirmatively further fair housing)affirmatively further fair housing)

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WHERE DO GRANTEES WHERE DO GRANTEES LOOK?LOOK?

Reporting requirements (91.520 and Reporting requirements (91.520 and other direction)other direction)

IDIS screensIDIS screens

HUD Field Office – CPD RepHUD Field Office – CPD Rep

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AFTER KNOWLEDGE, AFTER KNOWLEDGE, WHAT?WHAT?

Second step to compliance – Second step to compliance – TRAININGTRAINING

Third step to compliance – Third step to compliance – SYSTEMS & PROCEDURESSYSTEMS & PROCEDURES

Remember - you are not alone!Remember - you are not alone!

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FINANCIAL FINANCIAL MANAGEMENT MANAGEMENT OF THE CDBG OF THE CDBG

PROGRAMPROGRAM

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GOVERNMENT GOVERNMENT WIDE WIDE

REQUIREMENTSREQUIREMENTSFinancial management of the CDBG Financial management of the CDBG

program is based on government wide program is based on government wide requirements:requirements:

Uniform administrative requirements Uniform administrative requirements (aka the “Common Rules”) (aka the “Common Rules”)

OMB CircularsOMB Circulars

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APPLICATION OF APPLICATION OF REQUIREMENTS TO REQUIREMENTS TO

ENTITLEMENT ENTITLEMENT PROGRAMPROGRAM

Government wide requirements are Government wide requirements are applied to CDBG entitlement applied to CDBG entitlement recipients/subrecipients at 24 CFR recipients/subrecipients at 24 CFR §570.502 (but with lots of §570.502 (but with lots of exceptions)exceptions)

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CATEGORIES OF CATEGORIES OF RECIPIENTS/ RECIPIENTS/

SUBRECIPIENTSSUBRECIPIENTSRequirements vary according to Requirements vary according to

nature of recipient/subrecipient:nature of recipient/subrecipient:

Governmental entities Governmental entities Educational institutions Educational institutions Other private, non-profit Other private, non-profit

entitiesentities

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Uniform Administrative Uniform Administrative Requirements Requirements

Implemented in HUD title of CFR:Implemented in HUD title of CFR:

States, Local Governments, and Indian Tribes States, Local Governments, and Indian Tribes (24 CFR Part 85)(24 CFR Part 85)

Institutions of Higher Education, Hospitals, Institutions of Higher Education, Hospitals, and Other Non-profit Organizations (24 CFR and Other Non-profit Organizations (24 CFR Part 84)Part 84)

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OMB CircularsOMB Circulars

Cost principlesCost principlesA-87 (Recipients/subrecipients that are A-87 (Recipients/subrecipients that are

governmental entities)governmental entities)A-21 (subrecipients that are educational A-21 (subrecipients that are educational

institutions)institutions)A-122 (non-governmental subrecipients) A-122 (non-governmental subrecipients)

AuditsAuditsA-133 (Audits of States, Local Governments, A-133 (Audits of States, Local Governments,

and Non-Profit Organizations)and Non-Profit Organizations)

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Uniform Uniform Administrative Administrative RequirementsRequirements

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Standards for Financial Standards for Financial Management SystemManagement System

Standards for recipients/subrecipients Standards for recipients/subrecipients that are governmental entities are that are governmental entities are specified at 24 CFR §85.20specified at 24 CFR §85.20

Comparable standards for Comparable standards for recipients/subrecipients that are recipients/subrecipients that are private, non-profit organizations are private, non-profit organizations are specified at 24 CFR §84.21)specified at 24 CFR §84.21)

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(1)(1)Financial reporting – Financial reporting –

Accurate, current, and complete Accurate, current, and complete disclosure of the assisted disclosure of the assisted activitiesactivities

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(2) Accounting Records(2) Accounting Records

Must adequately identify the Must adequately identify the source and application of fundssource and application of funds

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(3) Internal (3) Internal ControlControl

Effective control and Effective control and accountability must be accountability must be maintained for all grant and maintained for all grant and sub-grant cash, real and sub-grant cash, real and personal property, and other personal property, and other assets.assets.

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(4) Budget Control(4) Budget Control

Intended to maintain integrity of Intended to maintain integrity of budget processbudget process

Actual expenditures must be Actual expenditures must be compared with budgeted amountscompared with budgeted amounts

Financial information must be related Financial information must be related to performance or productivity data to performance or productivity data (when required by grant agreements) (when required by grant agreements)

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(5) Allowable Costs(5) Allowable Costs

Three sets of cost principles:Three sets of cost principles:

OMB Circular A-87 for recipients and OMB Circular A-87 for recipients and subrecipients that are governmental subrecipients that are governmental entities entities

OMB Circular A-21 for subrecipients that OMB Circular A-21 for subrecipients that are educational institutionsare educational institutions

OMB Circular A-122 for non-OMB Circular A-122 for non-governmental subrecipientsgovernmental subrecipients

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(6) Source Documentation(6) Source Documentation

Accounting records must be Accounting records must be supported by source documents; supported by source documents; examples are:examples are:

– Canceled checksCanceled checks– Paid billsPaid bills– PayrollsPayrolls– Time and attendance recordsTime and attendance records– ContractsContracts

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(7) Cash Management(7) Cash Management

Procedures to minimize the time Procedures to minimize the time elapsed between withdrawal of elapsed between withdrawal of grant funds from the Federal grant funds from the Federal Treasury and disbursement of Treasury and disbursement of those funds in payment of activity those funds in payment of activity related costsrelated costs

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PAYMENTPAYMENT

Payment requirements for Payment requirements for governmental entities are specified governmental entities are specified at 24 CFR §85.21at 24 CFR §85.21

Payment requirements for Payment requirements for subrecipients that are not subrecipients that are not governmental entities are specified governmental entities are specified at 24 CFR §84.22at 24 CFR §84.22

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PAYMENT (cont.)PAYMENT (cont.)

CDBG recipients are paid on an advance CDBG recipients are paid on an advance basis via IDISbasis via IDIS

Depositories – Depositories – notnot required to be required to be Federally insured (although a good idea)Federally insured (although a good idea)

Separate bank accounts Separate bank accounts notnot required required Bank accounts for subrecipients Bank accounts for subrecipients

required to be interest bearing (with required to be interest bearing (with certain exceptions)certain exceptions)

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PROCUREMENTPROCUREMENT

Procurement requirements for Procurement requirements for governments are at 24 CFR 85.36governments are at 24 CFR 85.36

Procurement requirements for non-Procurement requirements for non-profits are at 24 CFR 84.40 – 84.48profits are at 24 CFR 84.40 – 84.48

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PROCUREMENT (cont.)PROCUREMENT (cont.)

Procurement methods for governmental Procurement methods for governmental entities:entities:

Small Purchases (simplified acquisition Small Purchases (simplified acquisition procedures)procedures)

Sealed Bids (formal advertising, use of Sealed Bids (formal advertising, use of IFB’s)IFB’s)

Competitive Proposals (use of RFP’s)Competitive Proposals (use of RFP’s) Non-competitive ProposalsNon-competitive Proposals

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PROCUREMENT (cont.)PROCUREMENT (cont.)

Procurement methods for non-Procurement methods for non-governmental entities less governmental entities less prescriptiveprescriptive

““Section 3” requirements should Section 3” requirements should be taken into account in be taken into account in procurement processprocurement process

Cost plus percentage-of-cost Cost plus percentage-of-cost pricing not allowedpricing not allowed

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Other Uniform Other Uniform Administrative Administrative RequirementsRequirements

Notable administrative Notable administrative requirements are:requirements are:

Section 85.32/84.34 Section 85.32/84.34 EquipmentEquipment

Section 85.33/84.35 SuppliesSection 85.33/84.35 Supplies

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PROGRAM PROGRAM INCOMEINCOME

What is CDBG Program What is CDBG Program Income?Income?

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PROGRAM INCOMEPROGRAM INCOMEWhat is CDBG Program Income?What is CDBG Program Income?

Gross income received by a grantee or Gross income received by a grantee or subgrantee that is directly generated, in whole subgrantee that is directly generated, in whole or in part, by use of CDBG funds; examples are:or in part, by use of CDBG funds; examples are:– Proceeds from sale or lease of property purchased/improved Proceeds from sale or lease of property purchased/improved

with CDBGwith CDBG– Proceeds from lease of equipment purchased with CDBGProceeds from lease of equipment purchased with CDBG– Gross income from use/rental of real or personal property Gross income from use/rental of real or personal property

acquired, constructed, improved (less costs incidental to acquired, constructed, improved (less costs incidental to generation of income)generation of income)

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PROGRAM INCOME cont.PROGRAM INCOME cont.

What is program income (cont.)What is program income (cont.)

– Payments of principal & interest on CDBG Payments of principal & interest on CDBG loansloans

– Proceeds from the sale of loans or obligations Proceeds from the sale of loans or obligations secured by loans made with CDBGsecured by loans made with CDBG

– Interest earned on program income pending Interest earned on program income pending its dispositionits disposition

– Funds collected through special assessments Funds collected through special assessments on properties not owned/occupied by LMI on properties not owned/occupied by LMI personspersons

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PROGRAM INCOME cont.PROGRAM INCOME cont.When When isn’tisn’t it program income? it program income?

– Income in a single year not exceeding $25,000Income in a single year not exceeding $25,000– Income generated by some Section 108 activitiesIncome generated by some Section 108 activities– Proceeds of subrecipient fundraisingProceeds of subrecipient fundraising– Funds collected through special assessmentFunds collected through special assessment– Subrecipients’ proceeds from disposition of property Subrecipients’ proceeds from disposition of property

five years or more after grant close-out.five years or more after grant close-out.cont.cont.

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PROGRAM INCOME cont.PROGRAM INCOME cont.When When isn’tisn’t it program income? (cont.) it program income? (cont.)

– Interest earned on grant advances - that must be Interest earned on grant advances - that must be remitted to the U.S. Treasury, including:remitted to the U.S. Treasury, including:

– interest earned from initial investment of a grant interest earned from initial investment of a grant advanceadvance

– interest earned on activities later determined to be interest earned on activities later determined to be ineligible or not meet a national objectiveineligible or not meet a national objective

– interest earned on funds reimbursed to the interest earned on funds reimbursed to the program account before it has been used for an program account before it has been used for an eligible activity.eligible activity.

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PROGRAM INCOME PROGRAM INCOME cont.cont.

In a CDBG revolving loan program, when does In a CDBG revolving loan program, when does a subrecipient have to return program income a subrecipient have to return program income to the grantee and when may it request to the grantee and when may it request additional CDBG funds from the grantee?additional CDBG funds from the grantee?

1.1. Whenever the subrecipient agreement stipulates it Whenever the subrecipient agreement stipulates it or at the end of the on-going relationship with the or at the end of the on-going relationship with the recipient.recipient.

2.2. Any program income on hand in a revolving fund Any program income on hand in a revolving fund must be substantially disbursed before additional must be substantially disbursed before additional cash withdrawals can be made for the same cash withdrawals can be made for the same activity.activity.

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RETURN OF RETURN OF PROGRAM PROGRAM INCOMEINCOME

Reg. cite §570.504(b)(2)(iii)Reg. cite §570.504(b)(2)(iii) Under what circumstances and when must a Under what circumstances and when must a

grantee return program income to its CDBG grantee return program income to its CDBG line of credit?line of credit?– Excess must be returned to grantee’s line of creditExcess must be returned to grantee’s line of credit– Any program income amounts not in revolving funds Any program income amounts not in revolving funds

in excess of 1/12 of the most recent grant must be in excess of 1/12 of the most recent grant must be remitted to HUD.remitted to HUD.

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HOW TO CALCULATE HOW TO CALCULATE EXCESS INCOMEEXCESS INCOME

(1) Determine aggregate amount of (1) Determine aggregate amount of program income held by grantee and program income held by grantee and subrecipientssubrecipients

(2) Subtract immediate cash needs, (2) Subtract immediate cash needs, revolving fund loan balances, lump sum revolving fund loan balances, lump sum drawdown balances, and cash used as drawdown balances, and cash used as security for Section 108security for Section 108

(3) Anything in excess of 1/12 of recent (3) Anything in excess of 1/12 of recent entitlement must be remittedentitlement must be remitted

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SAMPLE CALCULATION

Program income at end of PY: $450,000Immediate cash needs $ 20,000Revolving loan fund balance $180,000Lump sum draw down -0-Cash held for 108 -0-Annual CDBG entitlement: $1,920,000

Amount to be remitted ?

Balance retained:

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SAMPLE CALCULATIONProgram income: $450,000Less: Immediate cash needs ($ 20,000) Revolving loan fund balance ($180,000) Lump sum draw down ($0) Cash held for 108 _____($0)Balance: $ 250,000

Annual CDBG entitlement: $1,920,0001/12 annual entitlement $ 160,000Amount to be remitted ($250,000-$160,000) $ 90,000Amount retained: $160,000 + $200,000 = $ 360,000

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OMB Circular A-133 Audit OMB Circular A-133 Audit RequirementsRequirements

Recipients/subrecipients Recipients/subrecipients expending $500,000 or more expending $500,000 or more in a Program Year must have in a Program Year must have a single or program specific a single or program specific auditaudit

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HOW THE CDBG HOW THE CDBG FORMULA WORKSFORMULA WORKS

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HOW THE CDBG FORMULA HOW THE CDBG FORMULA WORKSWORKS

CDBG funds are allocated in accordance with CDBG funds are allocated in accordance with Section 106(a)(3) of the Housing and Section 106(a)(3) of the Housing and Community Development Act of 1974, as Community Development Act of 1974, as amended, which provides that grants will be amended, which provides that grants will be based on a formula approach.based on a formula approach.

The formula(s) are “share” formula(s), The formula(s) are “share” formula(s), meaning a grantee’s allocation will decrease meaning a grantee’s allocation will decrease or increase to the extent that its share of all or increase to the extent that its share of all metropolitan areas changes. metropolitan areas changes.

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HOW THE CDBG FORMULA HOW THE CDBG FORMULA WORKSWORKS

Q:Q: How many formulas does How many formulas does CDBG use to calculate the CDBG use to calculate the grant amount for each CDBG grant amount for each CDBG entitlement recipient?entitlement recipient?

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ANSWERANSWER

2 2

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FORMULA AFORMULA A

Formula A is based on shares Formula A is based on shares of population (weighted at of population (weighted at 25%), poverty (weighted at 25%), poverty (weighted at 50%), and overcrowded 50%), and overcrowded housing (weighted at 25%). housing (weighted at 25%).

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FORMULA BFORMULA B

Formula B is based on shares Formula B is based on shares of poverty (weighted at 30%), of poverty (weighted at 30%), age of housing (weighted at age of housing (weighted at 50%), and growth lag* 50%), and growth lag* (weighted at 20%).(weighted at 20%).