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2009 CDBG Applications Kick-Off Workshop

2009 CDBG Applications Kick-Off Workshop. About the Presentation.

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2009 CDBG Applications Kick-Off Workshop

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  1. 2009 CDBG Applications Kick-Off Workshop

  2. About the Presentation This PowerPoint presentation is an abbreviated version of the Community Development Block Grant workshop presentations for the 2009 funding cycle. The purpose is to provide an overview of each CDBG program guidelines and the application processes. Vanessa A. Blanchard, Chief Program Development and Grants Management Section

  3. 2009 CDBG Program Goals • Increase drawdown • Improve overall CDBG product • Continue to provide superior customer service

  4. Local Government Roles and Responsibilities24 CFR Part 570.501 • Management and Oversight • Elected officials are legally, financially, contractually and programmatically responsible for CDBG project • Local Government is responsible to the State and the Federal government even if they have a contract administrator or a sub-recipient relationship

  5. Roles and Responsibilities, continued • Financial Management • Proper accounting of funds (avoid disallowed costs) • Accurate identification of project costs and cash balances • Proper internal controls • Project Files-24 CFR Part 570.506 and .508 • Establish a system for CDBG files to ensure that they are complete, accurate and open for public review and inspection where applicable • Maintain files for period of time after closeout as required by applicable laws and regulations

  6. Roles and Responsibilities, continued • Statement of Assurances and Certifications • Read and understand these documents and what you have to do to implement • Examples include Affirmatively Further Fair Housing, Drug free, etc. • Grant Agreement (24 CFR Part 570.501 and .502) • Contractually binding • Document cannot be changed without State approval • Local Government promise of what it intends to deliver

  7. CDBG National Objectivessection 105 (a) HCDA of 1974 as amended • Benefit low-and moderate-income persons • Aid in the preventive or elimination of slums of blight • Urgent Need

  8. WHAT’S LMI? Households at 80% or less of the median family income for the county or Metropolitan Statistical Area (MSA) in which the residence is located.

  9. 2009 Infrastructure Program

  10. PURPOSE To improve the quality of life in a: • Residential area (Target Project Area) or • Local Government’s Jurisdiction (Area-Wide Jurisdictional Project)

  11. ACTIVITIES • Installation of New Public Water or Sewer Lines • Replacement of Public Water or Sewer Lines • Replacement of Appurtenances • Improvements to Water or Sewer Treatment Plants with Special Problems (e.g., moratoriums or special orders of consent) • Priority given to drought related activities.

  12. Overview • Ready Project • Threshold • Grant Limitations • Two pools of funds • Matching funds • Performance Measures

  13. Two Pools of Funds for Infrastructure:Water and/or Sewer in Residential Areas(NC: minimum 70% LMA benefit for project area) 21st Century/Tier 1 Communities • Available funds: $2,080,704 • Maximum Grant Amount- $750,000 • Selection criteria • Regional solution • Severity of water needs • No match required unless 1) the lines are over 8” 2) vacant land over ¼ mile or project costs more than $750,000 or 3)serving or connecting over income persons. Regular Pool • Available Funds: $2,080,704 • Maximum Grant Amount- $750,000 • Selection criteria • Regional solution • Severity of water needs • 5% match

  14. PERFORMANCE MEASURES The Infrastructure Program will use the following measures for all infrastructure activities except administration which has no performance measures. • Outcome: Creating Suitable Living Environments • Outcomes: • (a) For new public lines where none previously existed or new system: Accessibility • (b) For replacing existing lines or jurisdictional problem: Sustainability

  15. THE APPLICATION PROCESS3 STEPS • Submit a letter of interest signed by the chief elected official. (No phone calls) a. Attachment preliminary evidence of a first public hearing b. From an Official Source, submit documentation of need (see application) c. Attach a completed Preliminary Information Form Note: Submit the above information at the same time as a packet.

  16. THE APPLICATION PROCESS(continued) • Meet with Program Development Staff. a. Who attends? Local Government Staff Engineer and Preparer b. Why? To show readiness

  17. READINESS A Ready Project Means That: • The Preliminary Engineering Report (PER) is complete • One Public Hearing has been held • Surveys of Beneficiaries have been done

  18. ELIGIBLE OR INELIGIBLE? DCA will send the local government either a • Letter of Eligibility • If so, applications forms will go to preparer • Funds will be earmarked up to 60 calendar days • Letter of Ineligibility

  19. THE APPLICATION PROCESS(continued) • Submit Application to DCA. Mail to: Ms. Gloria Nance-Sims, Director Division of Community Assistance 4313 Mail Service Center Raleigh, North Carolina 27699-4313 Deliver to: Division of Community Assistance The Methodist Building 1307 Glenwood Avenue, Suite 250 Raleigh, North Carolina

  20. REVIEW CRITERIA • Severity of Needs • Benefit • Feasibility of the Project • Basic Required Criteria • Level of Readiness • Overall Priorities • Commitment of Other Funds for the Project .

  21. CONTACTS Iris Payne Senior Development Specialist, Program Development E-mail: ipayne@nccommerce.com Website: www.nccommerce.com/cdbg (919) 733-2850

  22. 2009 Infrastructure Hook-up Program

  23. PURPOSE To Enable Eligible Local Governments with Existing Public Water and/or Sewer Line(s) to Connect or “Hook-up” Low and Moderate-Income (LMI) Households (HH) to non-CDBG funded line(s).

  24. CONNECTION OPTIONS • Connect to LMI Owner-Occupied Unit • Connect to LMI Tenant-Occupied Unit • LMI Tenant and LMI Landlord • Connect Manufactured Homes • LMI Tenant Owns the Home • LMI Lot Owner for Rental Lots

  25. BASIC CRITERIA • Line is completelyinstalledintheground & in use by HH along the line prior to submission of the application. • Installation of the line did not use CDBG $ • LMI HH only can be connected to the lines using CDBG $. Others can pay w/ own $. • Residence must have working IP. • ID eligible HH in the application.

  26. ELIGIBLE ACTIVITIES • Tap or Assessment Fee to Connect Line • Service Connection for the Private Property • Use of Grinder Pumps or Vacuum Pits to Transport wastewater to Existing Sewer Lines • Removal of Septic Tanks or Cap Wells per Health Department • Repair of LMI HH leaking water pipes • Administration costs of no more than 15%

  27. WHAT’S THE ACTIVITY NAMED ON THE BUDGET LINE? • The connection of residences to public water or sewer lines is considered a REHABILITATION. • Planning and implementation activities are considered ADMINISTRATION.

  28. Amount of Available Funds & Grant Awards • Amount Available: $1 Million • Grant Award Max: $75,000 • Grant Award Min: None

  29. APPLICATION PROCESS2 STEPS 2009 Cycle: 7/6/09 to 12/1/09 or funds are gone. • Step 1: Chief Elected Official or Local Government Staff Person Call Iris Payne at (919) 733-2850 to see if funds are available and to be placed on a Prospective Applicant List. • Step 2: Submit 2 complete copies (1 original and 1 copy) of the application w/in 3 months of request.

  30. Small Business & Entrepreneurial Assistance (SBEA) Grant

  31. SBEA Grant • State-wide demonstration/pilot program • Begun in 2007 • Expect participants to share success stories, document project stages, training, events and successes

  32. SBEA Purpose To provide funding to local governments to develop a coordinated effort to stimulate growth (create and retain jobs for LMI persons) within the existing small business/entrepreneurial sector in NC’s communities and to aid these communities in the development of an entrepreneurial environment.

  33. SBEA Objectives • Create jobs within the community • Create and nurture an entrepreneurial environment within the community

  34. First: Creation of New Jobs • Permanent, full-time jobs = at least 1600 hours per year. • 70% of jobs must be filled by LMI persons • Preference given to projects paying higher wages. • Employers are encouraged to offer health insurance for all full-time positions at the establishment and pay at least 50% of employee premiums.

  35. Second: Creation of Entrepreneurial Environment Project must include measures to create or nurture an environment that will sustain entrepreneurial development in the community after project funding has ended.

  36. Target Businesses • Existing businesses two years old or older; • With 100 or fewer employees; • Ready to expand but need funding to act as catalyst to do so.

  37. Award Amount Program Funding for 2008 - $1 Million • Individual grants of $150,000 - $250,000 • Expect to make 4-6 awards • Project timeframe 30 months • Must create at least 1 job per $25,000

  38. Award Amount • Must create at least 1 job per $25,000 • For example: • Individual grant of $250,000 • $250,000 / $25,000 per job = 10 new jobs • 70% of jobs must go to LMI persons • 7 of 10 jobs must go to LMI persons

  39. Job Creation Eligible Activities • Infrastructure improvements (e.g., water, sewer, roads); • Purchase of land; • Construction of a building or other improvements; • Renovation of an existing building to accommodate the business; • Construction of tenant improvements/finishes; • Leasing space in or purchasing an existing building; • Purchasing capital equipment; and • Providing job training that can be linked to specific jobs at a specific firm.

  40. Ineligible Activities for Job Creation • Revolving loan funds; • Incubator projects for start-up businesses; • Job training that can’t be linked to a specific job at a specific firm.

  41. HUD Ineligible Activities • Jobs transferred from other facilities; • Assist companies that are in bankruptcy; • General promotion of a community as a whole; • Assistance to professional sports teams including automobile racing teams; • Assistance to privately-owned recreational facilities that serve a predominantly higher-income clientele;

  42. HUD Ineligible Activities • Acquisition of land where no specific proposed use has been identified; • Assistance to a business that is the subject of unresolved findings of noncompliance relating to previous CDBG assistance; • Projects that do not create/retain jobs for low and moderate income persons.

  43. Entrepreneurial Environment Develop a coordinated effort to equip project team members and community and business leaders to take deliberate steps to create an environment in which small businesses/ entrepreneurs can flourish.

  44. Entrepreneurial Environment Eligible Activities • Planning for an entrepreneurial environment; • Training of the project team and community leaders to learn about methods and tools for creating an entrepreneurial environment; • Coordinating meetings to identify needs of entrepreneurs; • Sponsoring events to market local entrepreneurs/businesses.

  45. Entrepreneurial Environment Ineligible Activities • Outsourcing the development of a general strategic plan or feasibility study for the community; • Payment of salary for anyone other than the grant administrator.

  46. Evaluation Criteria • Appropriateness and feasibility of business activities • Appropriateness of plan for creating an entrepreneurial environment • Local commitment and community partnerships • Timely and effective public participation • Grant Administration capacity and past performance.

  47. Contacts Valerie D. Moore, SBEA Program Manager E-mail address: vmoore@nccommerce.com Phone: (919) 733-2850, Ext. 234 Website: www.nccommerce.com

  48. CDBG Capacity Building Program

  49. Overview • Local unit of government • Eligible non-profit • Future CDBG project • Benefit LMI persons • $75,000 total over 24 month period

  50. Capacity Building Activities • Hiring of staff • Training, including travel • Project administration • Project planning

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