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CDBG Applicant’s Workshop Housing Session. CDBG Housing. Types of Grants Single Activity : Housing Activities Only Multi-Activity : Housing PLUS Infrastructure Activities. CDBG Housing. Assessing Needs What are the needs community wide? Are there concentrations of substandard housing?

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cdbg housing
CDBG Housing
  • Types of Grants
    • Single Activity:
      • Housing Activities Only
    • Multi-Activity:
      • Housing PLUS Infrastructure Activities

CDBG APP Housing Presentation

cdbg housing3
CDBG Housing
  • Assessing Needs
    • What are the needs community wide?
    • Are there concentrations of substandard housing?
    • Determine the project area (TARGET AREA)

CDBG APP Housing Presentation

single activity
Single Activity
  • Only Addresses Housing Activities
  • May Include Several Activities
    • Rehabilitation
    • Reconstruction
    • Acquisition
    • Relocation
    • Demolition

CDBG APP Housing Presentation

single activity5
Single Activity
  • Limit of $500,000.
  • May be City/County Wide, Target Area, Targeted to a Specific Group
    • Elderly
    • Handicapped
    • Working Families with Children

CDBG APP Housing Presentation

eligible activities cdbg single activity housing maximum 500 000
Eligible Activities CDBG Single Activity HousingMaximum $500,000.
  • Rehabilitation – Of substandard housing
  • Reconstruction – Where Unfeasible to Rehab

CDBG APP Housing Presentation

eligible activities cdbg single activity housing maximum 500 0007
Eligible Activities CDBG Single Activity HousingMaximum $500,000.
  • Acquisition - of Real Property
  • Disposition – Costs Incidental to Disposing of Property Acquired with CDBG Funds
  • Code Enforcement

CDBG APP Housing Presentation

eligible activities cdbg single activity housing maximum 500 0008
Eligible Activities CDBG Single Activity HousingMaximum $500,000.
  • Clearance – Of Dilapidated Structures, out-buildings, and Other Items
  • Interim Assistance
  • Relocation – Temporary or Permanent
  • Removal of Architectural Barriers

CDBG APP Housing Presentation

eligible activities cdbg single activity housing maximum 500 0009
Eligible Activities CDBG Single Activity HousingMaximum $500,000.
  • Home Ownership Assistance
    • Down Payment
    • Closing costs

NOTE: DCA policy mandates use of fixed rate mortgages on all CDBG funded projects

CDBG APP Housing Presentation

eligible activities cdbg single activity housing maximum 500 00010
Eligible Activities CDBG Single Activity HousingMaximum $500,000.

NOTE: New Construction is NOTeligible unless as “last resort”

OR

approved Community Based Development Organization is used.

CDBG APP Housing Presentation

eligible activities revitalization area strategy maximum 800 000
Eligible ActivitiesRevitalization 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

CDBG APP Housing Presentation

cdbg housing application review process
CDBG HousingApplication Review Process
  • Application Read and Reviewed by the Housing Panel
  • Rank and Score based on:
    • Feasibility of Project
    • Strategy Proposed
    • Impact of Project

CDBG APP Housing Presentation

feasibility considerations
Feasibility Considerations
  • Property Standards
  • Outside Services and Resources
  • Lead Based Paint
  • Funding Sources and Commitments
  • Operation Oversight
  • Maps and Overview
  • Selling Your Project
  • Costs

CDBG APP Housing Presentation

minimum property standards
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.

CDBG APP Housing Presentation

outside services and resources
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.

CDBG APP Housing Presentation

lead based paint lbp
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.

CDBG APP Housing Presentation

funding partnerships other resources
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.

CDBG APP Housing Presentation

schedules and time tables
Schedules and Time tables
  • Who will provide oversight?
  • Develop and show a schedule of start and completion dates. Indicate milestones and inspection points.

CDBG APP Housing Presentation

contracting and construction
Contracting and Construction
  • 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.

CDBG APP Housing Presentation

maps and photos
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)

CDBG APP Housing Presentation

maps and photos cont
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.

CDBG APP Housing Presentation

slide23

Unit # 10 Roof Leak

CDBG APP Housing Presentation

slide24

Unit #10 Roof Leak Damage

CDBG APP Housing Presentation

selling it to dca
Selling it to DCA
  • 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!

CDBG APP Housing Presentation

feasibility considerations lead based paint
Feasibility Considerations(Lead Based Paint)
  • Lead-Based Paint
    • Regulation Applies to all Housing Built Prior to 1978
    • Demonstrate understanding of regulation requirements

CDBG APP Housing Presentation

feasibility considerations27
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

CDBG APP Housing Presentation

feasibility considerations28
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

CDBG APP Housing Presentation

feasibility considerations29
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

CDBG APP Housing Presentation

strategy considerations
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

CDBG APP Housing Presentation

strategy considerations31
Strategy Considerations
  • Discuss plan to prevent re-occurrence of problems addressed in grant proposal
  • Adoption of policies or ordinances
      • Code enforcement
      • Ongoing maintenance

CDBG APP Housing Presentation

strategy considerations32
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!

CDBG APP Housing Presentation

impact considerations
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

CDBG APP Housing Presentation

successful strategies
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”

CDBG APP Housing Presentation

successful strategies financial participation
Successful StrategiesFinancial 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

CDBG APP Housing Presentation

successful strategies financial participation percent of income
Successful StrategiesFinancial 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

CDBG APP Housing Presentation

successful strategies financial participation percent of income37
Successful StrategiesFinancial 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…”

CDBG APP Housing Presentation

successful strategies financial participation percent of income38
Successful StrategiesFinancial 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…”

CDBG APP Housing Presentation

successful strategies financial participation percent of income39
Successful StrategiesFinancial 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…”

CDBG APP Housing Presentation

successful strategies40
Successful Strategies
  • Mandatory Homebuyer Counseling
  • Credit Counseling
  • Employment training
  • Holistic approach to neighborhood revitalization
      • Address people problems along with housing/infrastructure problems

CDBG APP Housing Presentation

compliance with regulations
Compliance with Regulations
  • Acquisition
    • Easements for Public Facility Improvements
    • Dilapidated Units
    • Uniform Relocation Act (URA)

CDBG APP Housing Presentation

compliance with regulations42
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

CDBG APP Housing Presentation

compliance with regulations43
Compliance with Regulations
  • Identify Available Resources
    • Comparable Units
  • Provide Basis for Relocation
    • Current v. available rents

CDBG APP Housing Presentation

compliance with regulations44
Compliance with Regulations

Reconstruction

  • Replacement of Dilapidated Unit on SAME parcel when existing unit is not feasible for rehabilitation
  • Owner Occupied ONLY

CDBG APP Housing Presentation

compliance with regulations45
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

CDBG APP Housing Presentation

slide46
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

CDBG APP Housing Presentation

slide47
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

CDBG APP Housing Presentation

slide48
Do’s
  • For Target Area’s:
    • Provide Target Area Data:
      • Total Number of Units
      • Total Number of Substandard
      • Total Number of Dilapidated

CDBG APP Housing Presentation

slide49
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)

CDBG APP Housing Presentation

slide50
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

CDBG APP Housing Presentation

slide51
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

CDBG APP Housing Presentation

slide52

Exhibit H

* 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
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)

CDBG APP Housing Presentation

don ts54
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

CDBG APP Housing Presentation

problems with previous applications
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

CDBG APP Housing Presentation

problems with previous applications56
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

CDBG APP Housing Presentation

problems with previous applications57
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

CDBG APP Housing Presentation

don t forget
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

CDBG APP Housing Presentation

don t forget59
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)

CDBG APP Housing Presentation

don t forget60
Don’t Forget:
  • If Rental Rehab is Proposed, Include Convincing Commitment Documentation from Owners
  • Include Map Identifying all Units, Condition and Proposed Activity

CDBG APP Housing Presentation

statutory references
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/

CDBG APP Housing Presentation

hints
Hints

DISCUSS PROPOSED PROJECT

WITH DCA STAFF

Tom Spinks

404-679-3128

[email protected]

Glenn Misner

404-679-3138

[email protected]

CDBG APP Housing Presentation

slide63
GOOD

LUCK

CDBG APP Housing Presentation

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