Transcript Document

CDBG Applicant’s Workshop
Housing Session
2011 CDBG Applicants’ Workshop
CDBG Housing
• Types of Grants
▪ Single Activity:
• Housing Activities Only
▪ Multi-Activity:
• Housing PLUS Infrastructure Activities
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
CDBG Housing
• Assessing Needs
 What are the needs community wide?
 Are there concentrations of substandard housing?
 Determine the project area (TARGET AREA)
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Single Activity
 Only Addresses Housing Activities
 May Include Several Activities
 Rehabilitation
 Reconstruction
 Acquisition
 Relocation
 Demolition
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Single Activity
 Limit of $500,000.
 May be City/County Wide, Target
Area, Targeted to a Specific Group
 Elderly
 Handicapped
 Working Families with Children
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Eligible Activities
CDBG Single Activity Housing
Maximum $500,000.
• Rehabilitation – Of substandard housing
• Reconstruction – Where Unfeasible to Rehab
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Eligible Activities
CDBG Single Activity Housing
Maximum $500,000.
• Acquisition - of Real Property
• Disposition – Costs Incidental to Disposing of Property
Acquired with CDBG Funds
• Code Enforcement
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Eligible Activities
CDBG Single Activity Housing
Maximum $500,000.
• Clearance – Of Dilapidated Structures, out-buildings,
and Other Items
• Interim Assistance
• Relocation – Temporary or Permanent
• Removal of Architectural Barriers
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Eligible Activities
CDBG Single Activity Housing
Maximum $500,000.
• Home Ownership Assistance
▪ Down Payment
▪ Closing costs
NOTE: DCA policy mandates use of fixed
rate mortgages on all CDBG funded
projects
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Eligible Activities
CDBG Single Activity Housing
Maximum $500,000.
NOTE: New Construction is NOT eligible
unless as “last resort”
OR
approved Community Based
Development Organization is used.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Eligible Activities
Revitalization Area Strategy
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
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
CDBG Housing
Application Review Process
 Application Read and Reviewed by the Housing
Panel
 Rank and Score based on:
Feasibility of Project
Strategy Proposed
Impact of Project
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Feasibility Considerations
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Property Standards
Outside Services and Resources
Lead Based Paint
Funding Sources and Commitments
Operation Oversight
Maps and Overview
Selling Your Project
Costs
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Minimum Property Standards
• Realistic Minimum Property Standards – you
determine what standards you want in your
community.
• Property Standards and Construction Standards.
• Code Violations and Incipient Violations.
• First priority should be given to Health, Safety,
and ADA compliance.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Outside Services and Resources
• Identify service required and what service will be
rendered.
• Establish estimated cost.
• Procure a FIRM commitment letter specifying ongoing services on a cost-per-hour or per project
basis.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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.
• Lead hazard control work rules are changing – See the
EPA Renovation and Remodeling Final Rule (EPA RRP
Rule)
• Stay Tuned for EPD Presentation!!
• Lead hazard control can be costly, budget 25% of
estimated rehab cost.
• Be prepared to seek services outside your local area.
Consider travel and other expenses when preparing
your estimate.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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.
• Owner contributions if required.
• General Property Improvements (GPI) are not funded by
CDBG.
• Secure firm, convincing documentation of participation
from investor-owners.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Schedules and Time tables
• Who will provide oversight?
• Develop and show a schedule of start and
completion dates. Indicate milestones and
inspection points.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Contracting and Construction
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Very problematic area.
Qualifying contractors: guidelines and criteria.
“Pre-Bids” and “Scope of Work”.
Bidding process and bid acceptance protocol.
Contract negotiations.
Change Orders protocol.
Draw Request and approval process.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Maps and Photos
• DCA Form 12 spells out what is required on map.
▪ Prefer map to be in common scale.
▪ Show details: existing structures, street names, subject area(s),
schools, etc.
▪ Must include key to photographs.
▪ Indicate status of structure (e.g. occupied, vacant, absentee
owner/rental, non-targeted structure.
▪ Indicate rehab or reconstruction.
▪ INCLUDE FINANCIAL PLAN FORM (EXHIBIT H)
2011 CDBG Applicants’ Workshop
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2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Maps and Photos (cont.)
• Photographs.
▪ Show all 4 elevations if possible.
▪ Interior photos should clearly represent
condition of structure and problems
described in narrative.
• Photographs of the owner, his or her family,
children, in-laws, family pets, automobiles, etc.
are not required.
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Unit # 10 Roof Leak
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Unit #10 Roof Leak Damage
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Selling it to DCA
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Exactly WHAT this project will 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!
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Feasibility Considerations
(Lead Based Paint)
• Lead-Based Paint
Regulation Applies to all Housing Built
Prior to 1978
Demonstrate understanding of regulation
requirements
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Feasibility Considerations
• Financing Technique(s) 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
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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)
▪ Complete “Financial Plan” Form (Appendix H)
• Descriptive map of all units targeted
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Strategy Considerations
• Describe Severity of problems
• Demonstrate needs in narrative
AND with Pictures
• Alternatives to Strategy
• Discuss other possible strategies
and why the strategy proposed is
best for problems described
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Strategy Considerations
• Discuss plan to prevent re-occurrence of
problems addressed in grant proposal
• Adoption of policies or ordinances
• Code enforcement
• Ongoing maintenance
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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!
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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
▪ How many persons will benefit
▪ Overall CDBG Cost per person
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
Owner Financial Participation
Percent of Rehab Cost:
• Required participation is fixed amount
according to their income level:
“Participants below 30% AMI will be required to pay $500
towards of the cost of their rehab”
“Participants between 30% and 50% AMI will be required
to pay $1000 towards of the cost of their rehab”
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
Financial Participation
• Percent of Income:
• Required participation is fixed
percentage of Annual Income
“Participants will be required to pay 8% of their annual
income”
 Annual Income = $9,000
Required Participation = $720
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
Financial Participation - Percent of Income
Percent of Income (cont.):
“Participants will be required to pay 8% of their
annual income multiplied by the term of the DPL”
 Annual Income = $9,000
 8% of Annual Income = $720
 X 5 (length in years of DPL)=$3,600
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
Financial Participation - Percent of Income
Add a sliding scale of income to percent of
income…
Required participation is a fixed percentage of
income based on income level:
“Participants whose income is below 30% of AMI are
required to pay 3% of their annual income…”
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
Financial Participation - Percent of Income
…for higher income level:
“…Participants whose income is between 30%
and 50% of AMI are required to pay 6% of
their annual income…”
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
Financial Participation - Percent of Income
…for highest income level:
“…Participants whose income is between 50% and
80% of AMI are required to pay 9% of their
income…”
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Successful Strategies
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Mandatory Homebuyer Counseling
Credit Counseling
Employment training
Holistic approach to neighborhood
revitalization
• Address people problems along with
housing/infrastructure problems
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Compliance with Regulations
• Acquisition
▪ Easements for Public Facility Improvements
▪ Dilapidated Units
▪ Uniform Relocation Act (URA)
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Compliance with Regulations
• Identify Available Resources
▪ Comparable Units
• Provide Basis for Relocation
▪ Current v. available rents
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Compliance with Regulations
Reconstruction
▪ Replacement of Dilapidated Unit on SAME
parcel when existing unit is not feasible for
rehabilitation
▪ Owner Occupied ONLY
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Compliance with Regulations
New Construction Eligibility
• Last Resort
▪ No Available Resources Exist
▪ Cost exceeds allowable limits
• Application must provide credible evidence
• Cheaper to build (including parcel) than purchase
• Not-for-profit or for-profit developer
▪ Approved Community-Based Development
Organization
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Do’s
• Provide a Unit by Unit Analysis
▪ Keyed to Map
▪ Picture(s) of Units (Exterior and Interior)
▪ List of Deficiencies for Targeted Units
▪ Provide Cost Estimates
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Do’s
Cost Estimates:
 Provide estimates based on complete
walk through
 Keep in Mind that Actual work may be 1
or 2 years away….Budget Appropriately
 Budget for Lead Hazard Control
Program will pay all LBP Costs
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Do’s
• For Target Area’s:
▪ Provide Target Area Data:
Total Number of Units
Total Number of Substandard
Total Number of Dilapidated
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Do’s
• For Target Area’s:
▪ Provide Target Area Data:
Total Number of Owner Occupied
Total Number of Renter Occupied
Total Number of Vacant
Describe use where possible
(rental, heir property, dilapidated,
etc)
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Do’s
• For City/County Wide Programs
▪ Describe how units were chosen in a fair
and equitable manner
▪ Provide description of overall housing
conditions jurisdiction wide
• Overall assessment of need for Housing
improvements and justification for the
chosen units
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Do’s
• Provide Financial Plan!!!
▪ In narrative and form provided in
Appendix H of Applicant Manual
(Exhibit H in Guidelines for Residential
Rehabilitation Programs)
• Explain formula for participation
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Exhibit H
Housing
Unit #
Name
of
Owner
Name of Occupant
(if rental property)
(indicate vacant if unoccupied)
Type of Unit
(SB/Mod. or
MHU)
Income
Activity
(Rehab/Reco)
CDBG
Cost *
Other
Funds+
Total
Cost
Lead Hazard
Control (25% of Total
Type of
Assistance
Cost)
(Pre 1978 Rehab only)
1
Al
Jones
SB
5000
Rehab
18000
800
18800
4700
2
Jim
Jones
SB
22000
Reco
32000
20000
52000
DPL
3
Mike
Smith
MHU
7500
Rehab
4500
500
5000
DPL
4
Pete
Peters
SB
19000
Rehab
25000
4000
29000
7250
DPL
DPL
* If application is joint CDBG and CHIP the funds should not be mixed in a single unit. Proposed CHIP dollars should be identified as CHIP.
+ If client participation is based on cost of rehab, use cost of rehab only (without lead) to determine required participation amount.
NOTE: Lead hazard control should be budgeted only for rehabilitation units constructed PRIOR to 1978 at 25% of total rehab cost.
REV 6/04
Don’ts
• 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)
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Don’ts
• Exceed $5,000. TOTAL COST to Rehab a
Manufactured Housing Unit without VERY
strong justification
• Prepare grant request based on Maximum
funds available rather than needs identified
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Problems with Previous Applications
• Too Many 100% grants/DPL’s
• Proposed Unit Deficiencies not
adequately described
• Per Unit cost Estimates not Included
• Flat Participation Amounts for All
Participants regardless of income or
level of rehab
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Problems with Previous Applications
• High Percentage of Rental Properties proposed
without convincing commitment to participate
• Lack of consistency throughout application
▪ Numbers do not add up or differ from one section
to another
▪ DCA 8 does not reconcile with numbers
projected in DCA 5
• Failure to present clear financial plan and
participation formula
• Failure to describe who will play key roles in
program administration
• Failure to address Lead Hazard Control
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
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
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Don’t Forget:
• Units keyed to map
• If rehab of vacant units is proposed,
provide plausible explanation
• Provide Basis for Cost
• Provide clear understandable
participation formula
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Don’t Forget:
• Include House by House Analysis
• Units keyed to map
• Provide pictures (Exterior & Interior)
• Cost Estimate by Unit
• List of Deficiencies
• Feasibility Test Forms (for Reconstruction)
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Don’t Forget:
• If Rental Rehab is Proposed, Include
Convincing Commitment Documentation
from Owners
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Include Map Identifying all Units, Condition
and Proposed Activity
2011 CDBG Applicants’ Workshop
Page 60
December 6-8, 2010
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/
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
Hints
DISCUSS PROPOSED PROJECT
WITH DCA STAFF
Tom Spinks
404-679-3128
[email protected]
Glenn Misner
404-679-3138
[email protected]
2011 CDBG Applicants’ Workshop
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December 6-8, 2010
GOOD
LUCK
2011 CDBG Applicants’ Workshop
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December 6-8, 2010