Transcript Pamela Glekas

FY2016 States & Small Cities
CDBG Update for COSCDA
March 15, 2016
Pamela Glekas Spring, Director
States & Small Cities Division
Office of Block Grant Assistance
State CDBG Update
Recap on Key topics covered earlier in the conference included:
In-depth discussions on:
Grant-Based Accounting (GBA) Overview & a discussion
of HUD’s Administrative Requirements
The Interim Rule on CDBG Accounting Changes" which included:
•> The two tier admin cap;
•> including locally retained program income accounts in the
annual action plan and
OMB Super Circular [aka 2 CFR]
We also addressed” "New Functionality in IDIS" which included:
 the new local account (LA) fund and using it for UGLG repayments
to the State, &
 Updates to the State PER...
State CDBG Overview– Key Topics
 National Disaster Resilience
Competition Winners
 CDBG-DR Overview Update
 Summary of FY2016 Program Budget
 NSP Closeout & Program Income Update
 Future CDBG Policy Development &
Regulatory Revisions
 Recent Policy Issuances
 New CDBG TA Products
National Disaster Resilience Competition
Competition announced by the President June 14, 2014
Winners announced by HUD Secretary Julian Castro Jan. 21, 2016
• Qualifying disaster in 2011, 2012, or 2013
• 13 Grantees were awarded out of a potential pool of
applicants made up of – states, local governments, District of
Columbia, and Puerto Rico
• Applicants had to tie their proposal to qualifying
disaster
• Competition focused on resilience and recovery
needs of a community
And the Winners Are …
Winners announced on January 21, 2016 of a $1 billion National Disaster
Resilience Competition (NDRC).
 HUD Secretary Castro traveled to Norfolk, Virginia joined by Gov. Terry
McAuliffe announcing the NRDC winners .
 The NDRC winners are made up of 8 States & 5 Cities/Counties:
States
California
Connecticut
Iowa
$70,359,459
$54,277,359
$96,887,177
Louisiana
$92,629,249
New Jersey
New York
Tennessee
Virginia
$15,000,000
$35,800,000
$44,502,374
$120,549,000
Cities/Counties
New York City
New Orleans
Minot, ND
Shelby County,
TN
Springfield, MA
$176,000,000
$141,260,569
$74,340,770
$60,445,163
$17,056,880
Breakdown of CDBG Disaster Funds
for NDRC Awardees
NDRC Grantee Awardees
National Disaster Resilience Competition
(continued)
• HUD will provide funding for resilient housing &
infrastructure projects to states & communities
impacted by major disasters between 2011 & 2013
• Total of $1 billion available - $181 million
reserved to Sandy-region
• Geographic diversity was considered in selection
of winners
• Minimum grant size $1M – Maximum $500M
• Review of Phase 2 applications began in late
November 2015 & wrapped up in late December
• For more info, go to HUDexchange.info or email
[email protected]
CDBG-Disaster Recovery Program
Overview
CDBG-DR Eligible Activities
CDBG-DR program funds are for necessary
expenses related to:
CDBG
Disaster relief,
 Long-term recovery,
 Restoration of infrastructure, housing & economic
revitalization in the most impacted and
distressed areas.
More info: https://www.hudexchange.info/cdbg-dr/
CDBG-DR Funding Process
Congress
Approves
Appropriation
HUD
Grantee
 Prepares action plan
 Calculates &
announces allocations
 Publishes a notice in
the federal register
 Awards funds
 Administers programs or
activities and/or works
with another entity to
distribute funds
CDBG-DR Overview
Grantee Oversight
 Guidance issued on two-year expenditure
 Deadline extensions for Hurricane Sandy/
2011-12 & 2013 Disasters
 New/Revised CDBG-DR Monitoring Exhibits in CPD
Monitoring Handbook (Nov/Dec. 2015 timeframe)
Disaster Training Efforts
 CDBG-DR Regional Trainings – conducted July & August 2015
 Nat’l Disaster Resilience Competition (NDRC) –Phase I &
II 2015 & Topical Resilience Webinars
 Disaster Recovery Grant Reporting System (DRGR) User
Manual published for grantee users (released in the last 60 days,
available on HUD Exchange)
 Upcoming Consultation Calls & Webinars
for NDRC Winners
A Look & Stats on CDBG-DR Grantees
CDBG-DR Grantees across Appropriations
 29 States
 23 Local Governments
CDBG-DR Financial Summary
 Total Appropriated ~ $46.5 billion (includes $1
million in NDRC) [FY2005-2013]
 Total Appropriated to States ~ $39.7 billion
(includes $530 million in NDRC)
 Total Amount Drawn ~ $31.5 billion
 Amount Drawn (States) ~ $30.8 billion
CDBG-R Resources
 CDBG-DR Resource Page (HUD Exchange)
https://www.hudexchange.info/programs/cdbg-dr/
 Active disaster grants & grantee contact
information
 CDBG-DR Laws, Regulations, and Federal
Register Notices
 Relevant supplemental appropriations law(s)
 CDBG-DR training materials
 NDRC General Info & Winners
 Disaster Recovery Grant Reporting System
FY 2015 CDBG Program Budget
 President’s CDBG Request - $2.8 billion
 Budget request for FY2017= $2.8 billion
 For FY2016 Formula CDBG, Final Budget figure - $3 billion
for States & Entitlement areas, same as FY15
 $900 million for States
 HUD is using 2009-2013 ACS data + 7/1/14 Census
population estimates for formula
 An additional + $300 million supplemental funds for disaster
recovery for major disasters was declared in 2016—funds will
go to Texas & S. Carolina
 Specifically:
 $142,336 will go to Texas (split amongst Houston, San Marcus &
the State of Texas)
 $156,664 will go to South Carolina (split amongst Lexington &
Richland counties, Columbia and the State of S.Carolina)
Update on NSP
Gearing up for NSP
Closeout—
It’s in Progress!
Neighborhood Stabilization Program (NSP)
Closeout Update
•
•
•
•
•
•
•
•
•
Funding Overview
Program Income Update
Closeout Process & Progress Status to date
TA availability to NSP grantees
Readiness checks
Closeout Criteria
Website materials
Fast Facts for NSP CloseoutGuide issued
NSP Funding
634 NSP Grants; 389 Grantees
NSP
# of
Grants
Awarde
d
Grant
Amount
Total
Drawn
Program
Income
Drawn
Total
Expended
NSP1
308
$3,894,559,693
$3,723,037,267
$825,974,492
$4,566,414,609
NSP2
56
$1,929,543,319
$1,929,675,433
$408,820,525
$2,341,568,108
NSP3
270
$
$
915,915,170
$160,489,392
$1,086,208,218
Total
634
$6,795,509,893
$6,568,627,871
$1,395,284,411
$7,994,190,936
971,406,881
U.S. Department of Housing and Urban Development • Community Planning and Development
17
NSP Program Income
As of February 2016, NSP funds assisted in generating
$1.3 billion in program income.
Prog. Income WAIVER  February 2015 HUD
published a waiver allowing 42 of 56 NSP2 grantees to
draw down funds from their Line of Credit (LOC) BEFORE
drawing funds from PI. NSP2 PI Waiver @
https://www.hudexchange.info/resources/documents/N
SP2-Program-Income-Waiver.pdf
 Majority of grantees w/PI reinvesting NSP funds back
into their NSP programs;
 Many grantees confronting issues as a result of high
housing markets.
18
NSP Program Income
(continued)
 Grantees w/small amounts of PI (between $10,000
to $60,000) find it challenging to spend their PI on
hand given high costs of acquiring & rehabilitating
housing in high cost markets, e.g. California.
 Grantees with enough PI on hand to purchase
housing units have very limited inventory of
foreclosed properties available to chose from,
often facing competition from investors.
Snapshot of NSP Closeout



8 Step Process
Status
Technical Assistance
 Readiness Review Checks – RRCs


Closeout Criteria & Review
Life After Closeout
U.S. Department of Housing and Urban Development • Community Planning and Development
20
NSP Closeout – An 8 Step Process
1. Grantee and
HUD Jointly
determine
Grantee Ready
6. Grantee has
90 days to
submit final QPR
7. HUD Reviews
QPR & prepares
Closeout
Agreement
2. HUD sends
Closeout
Package to
Grantee
3. Grantee
completes
package &
submits to HUD
5. HUD
executes
Closeout
Certification
4. HUD reviews
package
8. Grantee and HUD
Execute Closeout
Agreement
U.S. Department of Housing and Urban Development • Community Planning and Development
21
NSP Closeout Status
21 closed NSP grants
56 NSP-2 grants expired in September 2015,
but still need to be closed out.
54 NSP grants ready to close.*
179 NSP grants not ready to close, many
undergoing Disaster Recovery Grant Reporting
(DRGR) TA to reconcile erroneous data.*
40 NSP grants require extensive help meeting
statutory requirements.
* As reported via Readiness Review Checks.
U.S. Department of Housing and Urban Development • Community Planning and Development
22
Technical Assistance
for NSP Closeout
7 CPD TA providers available to offer assistance to NSP grantees to
assist in closing out their NSP grant. Approximately $4,389,473.46 is
still available for TA.
TA can be requested: https://www.hudexchange.info/







NSP TA Providers
Training And Development Associates – TDA
Local Initiatives Support Corp - Lisc
Cloudburst Consulting Group
Econometrica
Enterprise Community Partners
Minnesota Housing Partnership - MHP
W. Frank Newton, Inc.
U.S. Department of Housing and Urban Development • Community Planning and Development
23
Readiness Review Checks (RRCs)
CPD has contracted w/TA Providers to conduct
Readiness Review Checks (RRC) for NSP grantees.
RRCs include, but are not limited to,
 Review of a grantee’s Disaster Recovery Grant Reporting
system (DRGR),
 Quarterly Progress Reports (QPR);
 Associated receipts, vouchers & bills; and
 Reconciliation of any outstanding or erroneous reports or
data submissions.
RRCs for grantees can only begin once a grantee
has $50K or less in their line of credit.
U.S. Department of Housing and Urban Development • Community Planning and Development
24
NSP Closeout Criteria
4 Requirements necessary to complete NSP closeout!
1. All activities funded with even a penny of Line
of Credit Funds are completed and have met
a National Objective.
2. Grantee has met the LH 25% requirement.
3. All costs have been incurred.
4. Other regulatory requirements are met.
25
U.S. Department of Housing and Urban Development • Community Planning and Development
Review: Closeout Fast Facts
NSP Closeout Guide released on April 22,
2014 - provides detailed guidance on
closeout process @
https://www.hudexchange.info/nsp/nspcloseout-guidance/
Criteria for closeout is NOT the same as
criteria for meeting expenditure deadlines
No deadline established for closeout.
You can continue to use remaining
program income after closeout.
26
U.S. Department of Housing and Urban Development • Community Planning and Development
NSP Closeout & RRCs
 21 NSP grants completed closeout.
 Of 634 grants, 273 have received
Readiness Review Checks (RRCs).
 RRCs can be requested by HUD
personnel, either FO, HQ staff or
grantee.
U.S. Department of Housing and Urban Development • Community Planning and Development
27
Y2016 Administration Budget
Currently -overall State Administrative Cap
 Ref: Section 106(d) of the Act and § 570.489
 Currently set at 3% for State Admin, Planning, &TA
 State determines how this is spent
 Fungability with Admin/Planning & TA (this means a grantee can spread
the 3% admin to areas where the highest need to use is
 17% for UGLG administration
• State may use Maximum Feasible Deference (MFD) on level of
admin provided & decide whether or not a match is required
 Based on expenditures not obligations
 HUD is reviewing possible reform on the State grantee
admin cap & possibly removing the matching requirement
28
The Latest CDBG Policy
Development
 CDBG Grant-Based Accounting (GBA) Interim Rule for grants published
on November 12 & a technical correction on November 18, 2015
•Affirmatively Furthering Fair Housing (AFFH) Rule. The final rule was
published on July 16, 2015. The AFFH Tool/Template & supplemental
TA materials was issued in late December 12/21/15.
 December 7, 2015 –CDBG Conforming Changes for Part 200 Final Rule
published; this rule conforms our regs to Part 200
 2 CFR Part 200 consolidates HUD Part 84 & 85 regulations, OMB Circulars A-87, A133, etc.
Fee Based Section 108 Final Rule published November 3, 2015
• Section 3 Proposed rule published March 27 2015—no word yet on
timetable for final rule
Addressing Program Challenges
Program challenges: HUD developed legislative proposals
designed to strengthen CDBG’s structure & management while
retaining its fundamental focus on benefitting low- & moderate-income
persons.
Legislative package of reforms -developed by the Administration & will
be submitted to Congress. Recommended changes can be grouped in
several categories including:
1.
2.
3.
4.
Grantee eligibility,
Aligning program cycles,
Improving grantee accountability, and
Addressing issues in the State CDBG program, including increasing
the set aside for colonias in states along US-Mexico border from 10
percent to 15 percent of the State allocation.
Proposed Legislative Reform Package
CPD developed a comprehensive CDBG reform proposal to
address concerns of its grant recipients.
These proposals will:
 Allow grantees, including states, to form regional
combinations to achieve savings in administering their CDBG
grants & pool resources for strategic investment decisions.
 Reduce the growing number of small grantees to support
local CDBG programs that are adequately staffed and
support meaningful community investments. These changes
include removing the “grandfathering” of CDBG grantees and
setting a minimum grant threshold.
Proposed Legislative Reform Package
(continued)
Allowing for a more equitable treatment of states
and entitlement communities and counties by:
1. allowing states to also receive reallocated
funds for disasters from the sanctions fund;
2. giving the Department the authority to
sanction a state in a similar fashion to other
CDBG grantees; and
3. increasing states’ administrative cap and
removing the matching requirement.
Authorize an increase in the colonias set aside from
10 percent to 15 percent of State CDBG allocations
in the states of Texas, New Mexico, Arizona and
California .
Recent Policy Guidance
Issuances
January
2016
HUD
issued set
of FAQs
for the
new
Broadband
Initiative,
“Connect
Home”
Jan. 2016 CPD
Notice on
submission of
FY16 Action
Plans (hang up
has been preaward cost
language for 3
other programs +
HTF, as a result of 2
CFR 200.458)
January 2016
Feb. 2016
Jan. 22 Webinar
Friday, on
HOME
Consortia,
CDBG
grantees/urban
counties, and
ConPlan & AFFH
submission
timetables
Mid Jan. 2016
CPD Notice
on Transition
Guidance in
Implementing
Part 200 rules
went into
clearance
Webinar 2/8 on
Section 108
program – will
include
discussion of
fee-based rule
changes, plus
other TA
products
including
underwriting
March
2016
Guidance
memo on
incorporating
AFFH into
citizen
participation,
ConPlan
Next round of
TA videos
and/or
products
What to be on the
Lookout for in 2016
 AFFH: Tool for States: We expect the tool to be available for States by later this
year. The AFH Assessment Tool, which includes instructions & data provided by HUD, consists of a
series of questions designed to help program participants identify:
 fair housing issues pertaining to patterns of integration & segregation;
 racially & ethnically concentrated areas of poverty;
 disparities in access to opportunity; and
 disproportionate housing needs, along with contributing factors for those issues.
The Assessment Tool is intended to help communities understand & identify local
barriers to fair housing choice.
FY 2017 Administration Budget –released in mid-February 2016
OIG audits – OIG will be conducting 6 major audits of CDBG/Disaster/NSP.
Most notably & first, looking at acquisition & disposition of property with
CDBG $$ going back to1995.
CPD Notice on mandatory underwriting for economic development to for-profit
businesses still in the works
NDRC Use of ACS/CENSUS Data: 3 Things that ACS is used for that affect CDBG (and other
formula programs):
1.
2.
3.
Annual Formula Allocations- affects CDBG, HOME, ESG allocations
Section 8 Income Limits- affects CDBG & HOME beneficiaries
Low/Moderate Income Summary Data (LMISD) – affects national objectives
for CDBG
What’s New with
the CDBG Program

20 new TA Learning Products in 2016!
Existing website & content
https://www.hudexchange.info/community-development/cdbg-ta-products/
4 high quality, professionally produced videos
1.
2.
3.
4.
The Role of the CDBG Program in Creating a Viable Community
The Role of the CDBG Program in Creating Decent Housing
The Role of the CDBG Program in Creating a Suitable Living Environment
How Communities can use the CDBG Program to Create Economic
Opportunities
 1 interactive, multi-media scrapbook
 Project profiles website
 Our Re-branded webpage “Explore CDBG”-“Featured Project” rotates,
Twitter feed, etc.
the CDBG
Program
 7 new products using various modalities- short + substantive
1.
2.
3.
4.
5.
6.
7.
CDBG 101 (video)
CDBG Formula and Appropriation Process (white board video)
Urban County Qualification Process (video)
Smart Management of PI- two paths (white board video)
Grant Lifecycle- Part I- Planning (Prezi)
Grant Lifecycle- Part II- Implementation (Prezi)
Using CDBG for Disaster Response and Recovery (video)
 Updated Project Profiles website- online submission of projects
 Features & benefits

Coming Soon – New Web portal on the HUD Exchange to submit project profiles.
HUD encourages grantees to showcase how your community has been helped by
CDBG by either emailing

THANK YOU – for sharing your inspirational stories that remind people what a
great program CDBG is.
New TA Products
Videos, White Board videos & Prezi formats
New TA Products
Videos, White Board videos & Prezi formats
New TA Products
Videos, White Board videos & Prezi formats
Visit us at:
https://www.hudexchange.info/community-development/cdbgta-products
/
Wrap-Up
Pamela Glekas
Spring
Director
State and Small Cities Division