Post on 20-Jan-2016
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2009 DCA CDBG/CHIP Applicants’ Workshop
Introduction to CDBG/CHIP Boot Camp
Page 22009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG/CHIP Conference Overview
• Boot Camp▪ Intro to CDBG/CHIP Programs▪ Forms 1-13
• Compliance• Resource Tables• Concurrent Sessions
▪ CDBG/CHIP/CDBG ED (Advanced & Basic)• One-On-One TA• Last Day’s Topics
Page 32009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Review of Binder and CD
• Binder includes:▪ Welcome/Agenda▪ Staff Contacts▪ Presentations▪ Handouts
• CD Includes▪ CDBG/CHIP Manuals, Appendices,
Presentations
Page 42009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Our Mission in the Next 15 Minutes
• Discuss the fundamentals of CDBG and CHIP as preparation for review of DCA forms 1 – 13
• Why is this important?▪ In order to submit a competitive application
Page 52009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Community Development Block Grant (CDBG)
• Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program
Page 62009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Community Development Block Grant (CDBG)
• The primary objective of the HCDA is the development of viable communities through the improvement of living conditions and the expansion of economic opportunities in cities and counties, principally for persons of low- and moderate-income.
Page 72009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Community HOME Investment Program (CHIP)
• HOME is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. Program regulations are at 24 CFR Part 92
• CHIP is one of the ways that Georgia uses HOME dollars to expand affordable housing
Page 82009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Community HOME Investment Program (CHIP)
• HOME is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households
Page 92009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Definition of LMI
• Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by HUD. Unrelated individuals will be considered as one-person families for this purpose.▪ That is, those families at 80 percent of less of
Area Median Income (AMI)
Page 102009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG & CHIP Target LMI People
• For CDBG, the law requires that overall benefit to L/M persons be at least 70%▪ LMA, LMC, LMH, LMJ
• For CHIP, the law requires 100% benefit to L/M persons
Page 112009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Typical CDBG Activities
• Water lines, sewer lines, lift stations, wells, pumps, drainage pipe, drainage structures, road paving, drainage inlets, buildings, equipment loans, elevated tanks, homeowner and homebuyer activities, etc.
Page 122009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CHIP Eligible Activities
• Homeowner Rehabilitation
• Homeowner Reconstruction
• Homebuyer Activities▪ Acquisition▪ Acquisition/rehabilitation▪ New Construction
• Rental Housing
Page 132009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Basic Limitations
Activities and projects are eligible for funding only to the extent:
• Local governments are applicants (sub-recipients may implement)
• They are eligible according to law and regulation
• They primarily benefit low- and moderate-income persons or remove slum and blight.
Page 142009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG Ineligible Activities
• Acquisition of furnishings• Acquisition of movable
equipment, machinery• Land write‑downs• Operating and
maintenance expenses• Buildings for the conduct
of general local government
• Direct grant assistance to a for-profit business
• Cost of furnishings and personal property
• Generally, construction of new housing
For further information see the Applicants’ Manual
Page 152009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Sources of Ideas for Project Development
• Local Comprehensive Plan
• Citizen Complaints
• Previous Engineering Studies
• Professional Standards
• City Staff/RDC Staff/Consultant Staff
• Other
Page 162009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Some Things to Think About
• Strategy▪ What are the community development needs
and have they been clearly defined?▪ What are the possible alternatives for
addressing those needs, i.e., have you done any brainstorming?
▪ Have you systematically evaluated the alternatives using cost as one criteria?
▪ Is the alternative chosen eligible for funding?▪ Have you considered local funding?
Page 172009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Some Things to Think About
• Impact▪ How much of the identified need will be
eliminated?▪ How many people are benefiting?▪ Is the cost per person reasonable?▪ What is the extent of benefit to L/M income
persons?▪ Is quality of life improved?
Page 182009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Some Things to Think About
• Feasibility▪ Can the project be accomplished on time and
within budget?▪ Are the funding sources available now?▪ Is the project ready to go?▪ Is the project “blueprint” specific enough that
another knowledgeable person could carry it out?
Page 192009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG L/M Area Benefit (LMA)
For projects that will benefit a geographic area—target area or city-wide or county-wide area—each activity (e.g., water improvements) must benefit at least 70% L/M persons and each geographic area chosen must contain a population of at least 70% L/M persons.
Page 202009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
LMA (cont.)
• As a practical matter, draw your area boundaries correctly and these issues will usually take care of themselves.▪ The boundaries proposed (and therefore the area
where income surveys must be done) must include the entire area of benefit.
Page 212009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Area of Non-benefit
LMA (cont.)
Area Boundary Water Improvement Area of Benefit
&TA Population of at least 70% L/M
Page 222009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG L/M Clientele Benefit (LMC)
• CDBG provides a “place” for L/M persons to receive a benefit▪ e.g., health center, senior center, etc.
• 70% of recipients of benefit must be L/M income persons; or
• HUD must assume 100% of the recipients of the service are L/M persons
Page 232009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG L/M Housing Benefit (LMH)
• 100% Benefit to L/M Households
Page 242009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CDBG L/M Jobs Benefit
• For Economic Development Projects▪ 51% of jobs must be held or made available to
L/M persons
Page 252009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
CHIP L/M Benefit
• 100% Benefit to L/M Households
Page 262009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Let’s Recap
• CD is $ invested to improve the quality of life
• Proposed activities must be grouped together in a meaningful way
• Many sources for ideas for projects
• Address all strategy, impact and feasibility issues
• Projects must address the needs of L/M persons or households
• Lots of eligible activities/some activities are ineligible
• Submit completed applications on time
Page 272009 CDBG/CHIP Applicants’ Workshop Intro. to CDBG/CHIP Boot Camp
Be sure and request technical assistance!