2010 DCA CDBG Applicants’ Workshop CDBG Application: Census Tract Data.
CDBG Applicant’s Workshop Neighborhood Revitalization Session
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Transcript of CDBG Applicant’s Workshop Neighborhood Revitalization Session
2013 CDBG Applicants’ Workshop
CDBG Applicant’s WorkshopNeighborhood Revitalization Session
Page 22013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
CDBG Neighborhood Revitalization
• Types of Grants▪ Single Activity:
•Housing Activities Only▪ Multi-Activity:
•Housing PLUS Infrastructure Activities
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Page 32013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
CDBG Neighborhood Revitalization
• Assessing NeedsWhat are the needs community wide?Are there concentrations of
substandard housing?Determine the project area (“TARGET
AREA”)
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Community Finance Division
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CDBG Neighborhood Revitalization
Housing Activities
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Single ActivityNeighborhood Revitalization
Only Addresses Housing Activities May Include Several Activities
RehabilitationReconstructionAcquisitionRelocationDemolition/Clearance
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Community Finance Division
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Single ActivityNeighborhood Revitalization
• Who May Receive Assistance:▪ Individual or Family Home-Owners (Owner
Occupants).▪ Absentee Owners (Landlords).▪ Owner Occupants must meet Low-Moderate
Income definitions.▪ Must possess clear Deed to property.▪ Property must be within Applicant Jurisdiction.
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Single ActivityNeighborhood Revitalization
Limit of $500,000. May be City/County Wide, Target Area,
or Targeted to a Specific GroupElderlyHandicappedWorking Families with Children
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Community Finance Division
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Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000.
• Rehabilitation – To repair and/or bring to Code existing substandard housing unit.
• Reconstruction – Where Infeasible to Rehab, Demolish and construct new unit on same site – Owner Occupied ONLY.
• “New” Construction - Construction of new unit on different site.
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Eligible Activities
Single Activity Neighborhood RevitalizationMaximum $500,000.
New Construction is NOT eligible unless as “last resort”
OR Approved Community Based Development
Organization is used.
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Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000.
• Acquisition - of Real Property• Disposition – Costs Incidental to Disposing
of Property Acquired with CDBG Funds• Code Enforcement
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Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000.
• Clearance – Of Dilapidated Structures, out-buildings, and Other Items
• Interim Assistance • Relocation – Temporary or Permanent• Removal of Architectural Barriers
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Eligible ActivitiesSingle Activity Neighborhood RevitalizationMaximum $500,000.
• Home Ownership Assistance▪ Down Payment▪ Closing costs
NOTE: DCA policy mandates use of fixed rate mortgages on all CDBG funded projects
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Eligible ActivitiesRevitalization Area Strategy (RAS) Maximum $800,000.
• Officially adopt a local Redevelopment Plan in accordance with the Urban Redevelopment Act O.C.G.A. 36-61
• Eligible area of Census Block Group(s) of 20% or greater poverty level.
• Develop strong local partnerships focusing local resources within the Revitalization Area.
• Submit application for designation to DCA.• Must be designated by DCA through application
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Community Finance Division
December 12-14, 2012
CDBG Neighborhood RevitalizationApplication Review Process
Application Read and Reviewed by the Housing Panel
Rank and Score based on:Feasibility of ProjectStrategy ProposedImpact of Project
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Community Finance Division
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Feasibility Considerations
• Property Standards• Outside Services and Resources committed• Lead Based Paint (LBP)• Funding Sources and Commitments• Operation Oversight• Maps and Overview• Selling Your Project• Costs
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Community Finance Division
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Feasibility Considerations Minimum Property Standards
• Realistic Minimum Property Standards – you determine what standards you want in your community.
• Property Standards vs. Construction Standards.• Code Violations and Incipient Violations.• First priority should be given to Health, Safety,
and ADA compliance.
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Community Finance Division
December 12-14, 2012
Feasibility Considerations Outside Services and Resources
• Identify service required and what service will be rendered.
• Establish estimated cost.• Procure a FIRM commitment letter specifying
on-going services on a cost-per-hour or per project basis.
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Community Finance Division
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Feasibility Considerations Lead Based Paint (LBP)
▪ LBP evaluation is required on any structure built
before 1978.▪ Evaluation services must be performed by an
inspector/risk assessor licensed and certified by the State of Georgia.
▪ Be prepared to seek services outside your local area. Consider travel and other expenses when preparing your estimate.
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Feasibility Considerations Lead Based Paint (LBP)
• Lead hazard control can be costly, budget 25% of estimated rehab cost.
• Lead hazard control work must be performed by qualified workers – See the EPA Renovation and Remodeling Final Rule (EPA RRP Rule.
• Demonstrate understanding of regulation requirements.
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Feasibility Considerations Funding, Partnerships, Other Resources.
• Obtain FIRM commitment letters from all parties.• Ensure that the commitment letters are issued and
signed by authorized individuals.• Pledges of support without commitment letters will
not be considered.• Indicate how each will be applied, at what point will
these funds be released.• Home -Owner Participation contributions if
required.• General Property Improvements (GPI) are not
funded by CDBG. • Secure firm, convincing documentation of
participation from investor-owners.
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Feasibility Considerations Schedules and Time tables
• Who will provide Project oversight?• Develop and show a schedule of start
and completion dates. Indicate milestones and inspection points.
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Feasibility Considerations Contracting and Construction
• Can be a very problematic area.• Qualifying contractors: establish guidelines and
criteria.• “Work Write-Up” and “Scope of Work”.• Bidding process and bid acceptance protocol.• Contract negotiations.• Change Orders protocol.• Draw Request and approval process.
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Feasibility Considerations Maps and Photos
• DCA Form 12 instructions spells out what is required on map.▪ Map should be in common scale.▪ Show details in subject area(s): existing structures,
street names, schools, landmarks, etc.▪ Photographs must indicate Unit number or vista.▪ Indicate status of structure (e.g. occupied, vacant,
absentee owner/rental, non-targeted structure).▪ Indicate rehab, reconstruction, or clearance.▪ INCLUDE FINANCIAL PLAN FORM (EXHIBIT H)
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Community Finance Division
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Feasibility Considerations Maps and Photos (cont.)
• Photographs.▪ Show all 4 elevations if possible.▪ Interior photos should clearly represent
condition of structure and problems described in narrative. Annotate photo.
• Photographs of the owner, his or her family, children, in-laws, family pets, neighbors, automobiles, etc. are not required.
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Unit Numbers
Street Names
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Unit # 10 - Left Front View
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Unit #10 Interior Roof Leak Damage – Living Room
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Feasibility Considerations Selling it to DCA
• Exactly WHAT will this project achieve.• Exactly WHY do you need this project.• Exactly WHO will the project impact.• Exactly HOW you will accomplish the project.• Exactly WHERE the target area(s) are located.• DATA, we love data!
BE SPECIFIC!
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Community Finance Division
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Feasibility Considerations
• Financing Technique(s) AGAIN - BE SPECIFIC
Deferred Payment Loans Leveraged Loans/Interest Buy Downs Who are your partners
• Include participation formula ▪ Know your community! Be realistic with
participation formula
Page 302013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
Feasibility Considerations
• Confirmation of proposed resources and partners
• Compliance with Applicable Laws• Investor Owner Eligibility
Financing: 50%, DPL at full term.Rent Regulatory Agreement
• Timetable for proposed accomplishments
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Feasibility Considerations
Unit by unit analysis of proposed activity▪ Include per unit cost estimate.▪ Include description of proposed work needed
with pictures illustrating problems (exterior and interior). Annotate photos.
▪ Complete “Financial Plan” Form (Appendix H)▪ Include address on Financial Plan
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Revised Strategy Criteria for 2013
• Applications will be compared on their support for comprehensive neighborhood revitalization or target population needs.
• Competitive applications will plan to address most or all target area or target population community and economic development needs using CDBG and locally driven approaches.
• Documentation and results measures are important.
December 12-14, 2012
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Strategy Considerations
Describe Severity of problems• Demonstrate needs in Narrative AND
with Pictures
Alternatives to Strategy• Discuss other possible strategies and
why the proposed strategy is best for problems described. “Do nothing” is only an uncreative solution.
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Strategy Considerations
• Discuss plan to prevent re-occurrence of problems addressed in grant proposal.
• Adoption of policies or ordinances.• Code enforcement• More stringent codes• Ongoing maintenance
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Strategy Considerations
Marketing of Program▪ Who has expressed interest in Program?▪ How will Interested be generated?▪ Are residents supportive of the program?▪ Document Commitment from Owner
Occupants and Investor Owners!
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Impact Considerations
Impact Of Project▪ Document severity of need.▪ Describe the effect the proposed project
will have on the identified needs as well as the community as a whole.
▪ Indicate Number of persons who will benefit.
▪ Overall CDBG Cost per person.
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Successful StrategiesFinancial Participation
Owner Participation as Fixed Amount as Determined by Annual Income:
Example:
“Participants below 30% AMI will be required to pay $500 towards of the cost of their rehab”
Example:
“Participants between 30% and 50% AMI will be required to pay $1000 towards of the cost of their rehab”
Page 382013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
Successful Strategies
• Mandatory Homebuyer Counseling• Credit Counseling• Employment training• Holistic approach to neighborhood
revitalization▪ Address issues and concerns along with
housing/infrastructure problems
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Community Finance Division
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Compliance with Regulations
Acquisition▪ Easements for Public Facility Improvements▪ Dilapidated Units▪ Uniform Relocation Act (URA)
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Community Finance Division
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Compliance with Regulations
Relocation – Permanent▪ Uniform Relocation Act (42 months)
Owner OR Tenant▪ 104(d) “Barney Frank” (60 Months)
Tenant Only (Rent to Rent)One for One Replacement
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Compliance with Regulations
• Identify Available Resources▪ Comparable Units
• Provide Basis for Relocation▪ Current vs. available rents rates
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Community Finance Division
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Compliance with Regulations
“New Construction” Eligibility• Last Resort
▪ No Available Resources Exist • Application must provide credible evidence.• Cheaper to build (including parcel) than
purchase.• Not-for-profit or for-profit developer
▪ Approved Community-Based Development Organization.
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Community Finance Division
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For Target Area(s), Make sure you . . .
Provide a Unit by Unit Analysis▪ Keyed to Map▪ Picture(s) of Units (Exterior and Interior)▪ List of Deficiencies for Targeted Units
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Community Finance Division
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For Target Areas, Make sure you . . .
Provide Cost Estimates:• Keep in Mind that Actual work may be 1
or 2 years away….Budget Appropriately.• Provide reasonable estimates for each
unit based on complete walk through.• Budget for Lead Hazard Control.
(Program will pay all LBP Costs)
Page 452013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
For Target Areas, Make sure you . . .
Provide Target Area Data:• Total Number of Units.• Total Number of Substandard units.• Total Number of Dilapidated units.• Total Number of Owner Occupied.• Total Number of Renter Occupied.• Total Number of Vacant.
Page 462013 CDBG Applicants’ Workshop
Community Finance Division
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For City or County Wide Programs, Make sure you . . .
▪ Describe how units were chosen in a fair and equitable manner.
▪ Provide description of overall housing conditions jurisdiction wide - IMPORTANT• Overall assessment of need for Housing
improvements and justification for the chosen units.
• Scores for Applications lacking overall assessment are reduced.
Page 472013 CDBG Applicants’ Workshop
Community Finance Division
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Other Important things to Do• Provide Financial Plan!!!
▪ In Narrative and on Form provided in
Appendix H of Applicant Manual
OR
Exhibit H in Guidelines for Residential Rehabilitation Programs
• Explain formula for Owner Participation Amounts.
Be sure to use this Revision
Page 492013 CDBG Applicants’ Workshop
Community Finance Division
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Things NOT TO DO
• Work in Previous CDBG Target Areas or Units.• Propose 100% Grants or 100% DPL’s.• Propose Assistance to Landlords that exceeds
50% of Rehab Cost (Not including Lead Hazard Control).
• Include Elected Officials or their family members without full disclosure in the application (Conflict of Interest).
Page 502013 CDBG Applicants’ Workshop
Community Finance Division
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Things NOT TO DO
• Exceed $5,000 TOTAL COST to Rehab a Manufactured Housing Unit (MHU) without VERY strong justification. (Advance approval from DCA Required.)
• Prepare grant request based on Maximum funds available rather than needs identified.
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Community Finance Division
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Problems with Previous Applications
• Proposed Unit Deficiencies not adequately described.
• Per Unit cost estimates not included or unrealistically low.
• Flat Participation amounts for all Participants regardless of income or level of rehab.
• Failure to present clear financial plan and Owner Participation formula.
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Community Finance Division
December 12-14, 2012
Problems with Previous Applications
• Rental Properties proposed without convincing commitment to participate by Landlord.
• Lack of consistency throughout application.▪ Numbers do not add up or differ from one
section to another.▪ Numbers on DCA 8 does not reconcile with
numbers projected in DCA 5.• Failure to describe who will play key roles in
program administration.• Failure to address Lead Hazard Control.
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Community Finance Division
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Problems with Previous Applications
• Failure to adequately describe need for project (Including alternatives to strategy).
• Failure to budget for all needed activities:▪ Temporary relocation.▪ Easements/Acquisition.▪ Lead Hazard Control.
• Failure to Disclose Conflict of Interest.
Page 542013 CDBG Applicants’ Workshop
Community Finance Division
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Don’t Forget:
If rehab of vacant units is proposed, provide plausible explanation.
Provide clear understandable Owner participation formula.
Page 552013 CDBG Applicants’ Workshop
Community Finance Division
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Don’t Forget:
• Include House by House Analysis:• Units keyed to map• Provide annotated pictures (exterior &
Interior)• Realistic Cost Estimate by Unit• List of Deficiencies• Feasibility Test Forms (for Reconstruction)
Page 562013 CDBG Applicants’ Workshop
Community Finance Division
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REMEMBER:
• If Rental Rehab is Proposed, Include Convincing Commitment Documentation from Owners.
• Include Map Identifying all Units, Condition and Proposed Activity.
Page 572013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
Statutory References
Uniform Act: 49 CFR, Part 24
Section 104(d) “Barney Frank”:
24 CFR, Part 42
Lead-Based Paint: 24 CFR, Part 35
Last Resort: 49 CFR, Part 24.404
e-CFR Website
http://ecfr.gpoaccess.gov/
Page 582013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
LASTLY. . .
DISCUSS PROPOSED PROJECT
WITH DCA STAFF
Tom Spinks
404-679-3128
Glenn Misner
404-679-3138
Page 592013 CDBG Applicants’ Workshop
Community Finance Division
December 12-14, 2012
GOODLUCK!