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Welcome To The MSHDA CATeam CDBG Training. MSHDA Community Assistance Team Downtown Development Initiatives. Community Development Block Grant (CDBG) Federal Funding from the U.S. Department of Housing and Urban Development being administered by the

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Welcome to the mshda cateam cdbg training

Welcome To The

MSHDA CATeam

CDBG Training


Welcome to the mshda cateam cdbg training

MSHDA

Community Assistance Team

Downtown Development Initiatives

Community Development Block Grant (CDBG)

Federal Funding from the

U.S. Department of Housing and Urban Development

being administered by the

Michigan State Housing Development Authority


Mshda cateam cdbg program overview

MSHDA CATeamCDBG Program Overview


Welcome to the mshda cateam cdbg training

Today’s Audience IntroductionsProject Types:

  • Infrastructure Grants (continuous basis)

  • Planning Grants (continuous basis)

  • Façade Grants (competitive basis)

  • Signature Building Grants (continuous basis)


Grant award process

Grant Award Process:

Submit a Notice of Intent

Receive Application Authorization

Submit an Application

Receive MSHDA Approval

Environmental Review Process

Grant Prepared and Signed

Grant Awarded and Implemented

Payments Processed

Compliance Requirements Met

Project Closeout


Today s

Today’s

MSHDA CATeam Introductions/Overview     

Application Discussion

Environmental Review Process    

Grant Agreement Overview

Compliance Requirements          Civil Rights; Davis-Bacon;

Uniform Relocation Act;          and Grant Administration/Monitoring Visit/Reporting            

Media/Website

Project Close-Out

Questions and Answers


Environmental review procedures

Environmental Review Procedures

  • All projects (procedures are more legal than environmental).

  • Covers the entire project (public and private activities).

  • Completed before incurring any project costs (grant, public, and private).

  • Process takes about 60 days.

  • SHPO sign off required (3 types).

  • Publish combined notice and respond to citizen comments.

  • Begin the project after written State Authorization.


Process

Process

Environmental

Assessment

Checklist

(Exhibit E-5)


Step one

Step One

  • Designate a Certifying Officer

  • Complete the one page Environmental Review Record. (Exhibit E-1)

  • Complete and send the attached two page State Historic Preservation Office (SHPO) funding notice to Diane Tuinstra at the SHPO Office (Exhibit E-2) USGS Quad Map

  • Fax information to MSHDA


Step two

Step Two

  • DEQ Permit Questionnaire (Exhibit E-3)

  • Floodplain/Wetland – 8 Step Process

    A letter should be created indicating whether or not the project is located in a floodplain or wetland or will impact a floodplain or wetland.


Step three

Step Three

Statutory Checklist (Exhibit E-4)

  • Once a SHPO response has been received and the MDEQ documentation has been completed, the Statutory Checklist should be filled out.

  • Must reference and provide compliance documentation for all responses.


Step four

Step Four

Environmental Assessment Checklist (Exhibit E-5)

  • Must be completed in its entirety.

  • Identification of the source and/or attaching supporting documentation for each response is required.

  • The narrative portion of the assessment should also be completed.

  • As an FYI: responses of not applicable or none are not acceptable responses.

    For Example: to address the alternatives considered question, the community should address the cause and effect if the project does not move forward … not state that there is no alternative.


Step five

Step Five

  • Prepare and Publish the Combined Notice

  • After completion of steps 1-4

  • Determined No significant impact on the environment

  • local newspaper/one day

  • distribute to appropriate agencies via certified mail

  • fifteen day local comment period. If you receive a comment please contact our office for additional instructions.


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***SAMPLE NOTICE***

COMBINED NOTICE

NOTICE TO PUBLIC OF NO SIGNIFICANT IMPACT ON THE ENVIRONMENT AND NOTICE TO PUBLIC OF REQUEST FOR RELEASE OF FUNDS

Date Published_________________

(Name of Applicant)

(Street, City, Zip Code)

(Telephone Number)

TO ALL INTERESTED AGENCIES, GROUPS AND PERSONS:

On or about (Date #1 - See Notes on Page 34) the above named (City, County, Township, or Village) will request the state of Michigan to release Federal funds under Title I of the Housing and Community Development Act of 1974 (P.L. 93-383) for the following project:

(Project Title or Name)

(Purpose or Nature of the Project)

(Location – City, County, State – of Project)

(Estimated Cost of Project)


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Finding of No Significant Impact

It has been determined that such request for release of funds will not constitute an action significantly affecting the quality of the human environment and accordingly the above-named (County, City, Village, or Township) has decided not to prepare an Environmental Impact Statement (EIS) under the National Environmental Policy Act of 1969 (P.L. 91-190).

The reasons for such decision not to prepare an EIS are as follows:

1.) (Set forth reasons for decision)

An Environmental Review Record respecting the proposed project has been made by the above-named

(City, County, Township, or Village) which documents the environmental review of the project and more

fully sets forth the reasons why an EIS is not required. This Environmental Review Record is on file at

the above address and is available for public examination and copying upon request at Room

between the hours of and___. (If Applicable) No further environmental review of such project is

proposed to be conducted prior to the request for release of federal funds.

Public Comments on Finding

All interested agencies, groups, and persons disagreeing with this decision are invited to submit written

comments for consideration by the (City, County, Township, or Village) to the (Office of the Undersigned

or Other Specified Place) on or before Date #2. All such comments so received

will be considered and the (City, County, Township, or Village) will not request the release of federal funds

or take any administrative action on the proposed project prior to the date specified in the preceding sentence.

Release of Funds

(Name of Applicant) will undertake the project described above with Community Development Block Grant

funds from the State of Michigan under Title I of the Housing and Community Development Act of 1974.

(Name of Applicant) is certifying to the State of Michigan that (Name of Applicant) and Certifying Officer of Applicant) in her/his official capacity as (office) consent to accept the jurisdiction of the federal courts if an action is brought to enforce responsibilities in relation to environmental reviews, decision-making, and action; and that these responsibilities have been satisfied. The legal effect of the certification is that upon its approval (Name of Applicant) may use the Block Grant funds and the state will have satisfied its responsibilities under the National Environmental Policy Act of 1969.

Objections to State Release of Funds

The State of Michigan will accept an objection to its approval only if it is on one of the following basis: (a) that the

certification was not in fact executed by the certifying officer or other officer of applicant approved by the State of Michigan; or (b) that applicant's environmental review record for the project indicated omission of a required decision finding or step applicable to the project in the environmental review process. Objections must be prepared and submitted to the State of Michigan, Michigan State Housing Development Authority, Community Assistance Team, 735 East Michigan Avenue, Post Office Box 30044, Lansing, Michigan 48909.

Objections to the release of funds on basis other than those stated above will not be considered by the state.

No objection received after Date #3 will be considered by the state. (Signature of Certifying Officer)

(Name)

(Title)

(Address)


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Dissemination of FONSI and NOI/RROF Notices

The Notice of Intent to Request Release of Funds (NOI/RROF) or combined notice of

Finding of No Significant Impact and Notice of Intent to Request Release of Funds (FONSI/RROF) must be sent to the following agencies:

*In addition to the required dissemination to the local media and the offices identified above, 24 CFR Part 58-43 requires dissemination to:

a. Individuals and groups known to be interested in the project activities; and

b. Appropriate local, state, and federal agencies that reasonably may be expected to have an interest in the project.


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Explanation of Dates in Combined Notice of Finding of No Significant Impact

And Notice of Intent to Request Release of Funds

Date #1

The date in the first paragraph is the earliest date the community can request release of funds from the state. (Please note that the request for release of funds is not a payment request, but is an environmental release of the project by the state).

The day after the local comment period ends (this date should be the day after Date #2).

Date #2 is the fifteenth (15th) day from publication, so Date #1 should be at least the sixteenth (16th) day from publication. If the sixteenth (16th) day is a Saturday, Sunday, or holiday, go to the next business day.

For example, if the notice is published on March 15, Date #1 is March 31.

Date #2

The ending date of the minimum time period for the public to make comments to the local community. (Fifteen (15) calendar days from the date of publication)

The local comment period starts the day after publication. This is day one (1). Count fifteen (15) days. Day fifteen (15) must be a business day. If day fifteen (15) is a Saturday, Sunday, or holiday, go to the next business day.

Date #2 is the fifteenth (15th) day from publication.

For example, if the notice is published on March 15, Date #2 is March 30.


Calendar overview

Calendar Overview

Local

Comment

Begins

Publish

Date

State

Begins

Local

Ends

State

Ends


Step six

Step Six

Once the fifteen day comment period is complete, the community needs to mail/fax the following documentation to MSHDA to begin the fifteen day state comment period.

  • Certifying Officer Designation Letter

    2.State Historic Preservation Office Submission & Response Letters

    3.MDEQ Questionnaire and Backup Documentation

    4.A letter certifying floodplain/wetland process not required.

    5.Environmental Review Record

    6.Statutory Checklist and Supporting Docs

    7. Environmental Assessment (Checklist Narrative) and Supporting Docs

    8.Copy of Published Notice/Affidavit of Publication

  • (either actual newspaper page including top of page or an affidavit)

  • Documentation that notice was disseminated to required agencies (certified mail receipts)

  • Letter certifying that no comments were received during the local comment period.

  • Request for Release of Funds and Certification Form

  • Documentation of date first CDBG cost incurred

  • Documentation of date other public and private costs incurred and total expended to date


Environmental review process

Environmental Review Process

OVERVIEW

Gather Relevant Environmental Information

  • Write SHPO Letter

  • Consult with DEQ if needed

  • Complete Checklists

  • Publish Notice

  • Observe Public Comment Periods

  • Obtain Permission to Incur Costs


Questions

Questions


Grant agreement

Grant Agreement

  • Contract between MSHDA and the Governmental Unit as well as the property owners/developers.


Grant agreement overview

Grant Agreement Overview

  • Section 1: Grant Offer

  • Section 2: Special Terms & Conditions

    A. Total authorized budget

    1. Sources of funds

    2. Application of funds

    B.Scope of Work


Grant agreement overview1

Grant Agreement Overview

  • Section 3: General Terms & Conditions

  • Section 4: Acknowledgment

    Attachments

    A. Project Budget

    B. Project Description (from application)

    C. Income Certification Form (if applicable)


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MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

MSHDA GRANT NUMBER 2007XX-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF XXXX


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER XXXXXX-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the COMMUNITY (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $XXXX, but not more than XXXX (XX) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be XXXXX (XX) months from XXXXXXXXXX through XXXXXXXXX, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of XXXXXXXXXXXX by MSHDA Executive Director:

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2008.

WITNESSED BY: Signature of Authorized Official


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

  • II.  SPECIAL TERMS AND CONDITIONS

  • For Michigan CDBG Grant Under Title I of the Housing and Community Development Act

  • of 1974, as amended.

  • CFDA #: 14.228

  • EFFECTIVE DATE:XXXXXXXXXXMSHDA GRANT NUMBER: XXXXXX-CAT

  • TITLE:Downtown Façade Improvement Initiative – Round Two

  • GRANTEE/ADDRESS:

  • GRANT ADMINISTRATOR/ADDRESS:Mr. Joseph Borgstrom, Grant Administrator

  • Community Assistance Team, 735 East Michigan Avenue, Lansing, Michigan 48909

  • Phone: 517-241-2512

  • A. TOTAL AUTHORIZED BUDGET

  • 1.Sources of funds for the project under this grant agreement consist of:

  • State Cash Contributions$200,000

  • Local Cash Contributions$126,500 

  • Private Cash Contributions$100,000

  • TOTAL $426,500

  • Application of funds to the project supported under this grant agreement consists of:

  • PLEASE REFER TO ATTACHMENT A FOR THE AUTHORIZED BUDGET FOR THIS PROJECT.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

  • B. SCOPE OF WORK

  • The Scope of Work of the Grantee under this grant shall be to undertake and complete the following activities, as further detailed in the City of XXXXX's grant application dated August 18, 2006, (as amended), subject to the limitations set forth in this grant agreement and applicable federal and state laws, rules, and regulations:

  • 1.Prior to the commitment of any project funds, incurring any project costs, and state disbursement of grant funds, the Grantee shall submit to the Grant Administrator a copy of the complete Environmental Review Record (including the Environmental Assessment), and secure written approval by the Grant Administrator of the Request for Release of Funds and Certification. The Request for Release of Funds and Certification represents local completion of the environmental review procedures and requirements as set forth in 24 CFR Part 58, "Environmental Review Procedures for Title I Community Development Block Grant Program," issued by the U.S. Department of Housing and Urban Development. Project costs include costs to be paid by grant funds or other local, public or private funds.

  • 2.If the project involves construction activities using grant funds, the Grantee shall provide for approval by the Grant Administrator a copy of all bidding documents or other evidence of compliance with federal labor standards for all construction activities financed in whole or in part with CDBG funds. Such approval must be secured prior to state disbursement of grant funds for relevant construction activities.

  • If the project involves acquisition of private real estate, permanent easements or right-of-ways, or the relocation of persons, families or farms, the Grantee shall provide for approval by the Grant Administrator documentation of compliance with the Uniform Relocation and Real Property Acquisition Policies Act of 1970. Such approval must be secured prior to state disbursement of grant funds for acquisition or relocation.

  • 4.If grant funds are to be used to engage consultants or engineers, the Grantee shall comply with the procurement process as required by 24 CRF Part 85.36. For contracts greater than $100,000, the Grantee must use competitive negotiation through a request for proposal (RFP) or request for qualifications (RFQ) process. Prior to state disbursement of grant funds, the Grantee must provide a copy of the RFP/RFQ; a list of respondents to the RFP/RFQ; the Grantee’s evaluation and recommendation for the award of contract; and the proposed contract. For contract costs less than $100,000, small purchase procedures may be used. Prior to state disbursement of grant funds, the Grantee must provide documentation that price or rate quotations were obtained from an adequate number of qualified sources.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

  • 5.The Grantee shall expend up to $XXX of grant funds to assist the community by providing funding for façade improvements to XXXX downtown commercial/mixed-use buildings. The project activities are further described in Attachment B.

  • 6.The grant is being awarded based on this project’s area-wide benefit to the entire city. According to the 2006 U.S. Department of Housing and Urban Development census information, the City of XXXXX consists of 54.0% low and moderate income households.

  • The Grantor may, in its sole discretion, after discussions with representatives of the Grantee, modify or reduce the total amount of Grant assistance offered under this Agreement or terminate this Agreement and demand full repayment of disbursed Grant proceeds if the Grantee violates, fails, or refuses to comply with any term, condition, or provision of this Agreement.

  • The Grantee shall provide Program Progress Reports beginning April 1, 2007, and every six (6) months thereafter. The Grantee is required to provide job creation information including, but not limited to, the documentation identified on the Income Certification Form (which is subject to revisions), yearly SEV values, and other data identified in the progress reports. The Grantee is also required to provide all federal/state performance measurement documentation as requested.

  • The Grantee shall provide a Final Program Progress Report 60 days after completion of the term of work performance.

  • 10.The Grantee shall provide documentation that at least one public hearing was held after grant award and prior to formal grant closeout. Such documentation shall be provided prior to formal grant closeout.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

  • 11. During each of the Grantee's fiscal years in which a disbursement of CDBG funds is made under this agreement, the Grantee shall file an Audit Report. This Audit Report must be prepared by an independent auditor, and be in compliance with the requirements of OMB Circular A-133, or as required by the Grant Administrator. This audit report shall be filed with the Grant Administrator within 30 days after completion of the audit, but not later than nine months after the close of the Grantee's fiscal year.

  • 12. The Grant's Term, the Grantee/Benefiting Property Owners hereby agree to fully repay the Grantor the full grant amount, in the event that the Grantee/Benefiting Property Owners fail to obtain the Grantor's written approval prior to the following actions by the Grantee:

  • (a)  Grantee/Benefiting Property Owners either sell, or otherwise transfer the Real Property's ownership responsibilities to some other entity.

  • (b) Grantee/Benefiting Property Owners lease or assign their interest in any portion of the Real Property.

  • (c) Grantee/Benefiting Property Owners permit liens or claims of any type to be placed on the Real Property.

  • The Grantee/Benefiting Property Owners must demonstrate ownership of the property for five years from the date of the grant agreements beginning term of work. If the Grantee/Benefiting Property Owners decides to transfer ownership within five years from the closing date, the Grantee/Benefiting Property Owners must notify the State thirty days prior to the transfer. The State will identify during that thirty day notification period the appropriate repayment amount and repayment terms and also provide a written release to authorize the transfer. If a transfer takes place without written authorization, full repayment of the entire grant award will be required within 30 days made payable to the State of Michigan.

  • 14. Any program income received by the Grantee, related to the properties identified as a part of this project, must be reported to the MSHDA Community Assistance Team within 30 days of receipt and all MSHDA CATeam/U.S. Department of Housing and Urban Development program income restrictions apply.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

IV. ACKNOWLEDGMENT AND CERTIFICATION OF BENEFICIARY

Property Owner – Property Address (hereinafter known as the Property Owners) acknowledge receipt of a copy of the MSHDA Grant Agreement XXXXX-CAT, together with all attachments. It is understood that the CDBG financed portion of the project will directly benefit the Property Owners by providing funding for façade improvements to their commercial/mixed-use properties located downtown.

It is understood and acknowledged by all parties, including the Property Owners, that the investment and creation of jobs was an essential factor in persuading the Michigan State Housing Development Authority (MSHDA) Community Assistance Team that this project is economically viable, and further, in absence of this commitment by the Property Owners, this grant would not have been awarded.

Therefore, recognizing that it will derive a real and substantial benefit from this grant, the Company agrees to abide by the terms of the Grant Agreement. The Property Owners agree that this project is expected to result in:

Private investment of at least $XXXX for additional façade/property improvement activities;

To provide all federal/state performance measurement documentation as requested; and

To abide by the repayment/reuse/resale provisions that requires if the property is sold within five years from the completion of project activities that property closing date, a prorated portion of the proceeds must be returned to the State of Michigan. The prorated formula will be based on Year 1 - 100% payback; Year 2 - 80% payback; Year 3 - 60% payback; Year 4 - 40% payback; Year 5 - 20% payback the following:

Year 1 (closing date 2006 – closing anniversary date 2007) - 100% payback;

Year 2 (closing anniversary date 2007 – closing anniversary date 2008) - 80% payback;

Year 3 (closing anniversary date 2008 – closing anniversary date 2009) - 60% payback;

Year 4 (closing anniversary date 2009 – closing anniversary date 2010) - 40% payback;

and Year 5 (closing anniversary date 2010 – closing anniversary date 2011) - 20% payback.

The repayment percentages/proceeds identified above are calculated based on the actual CDBG funds awarded to a specific property address, the amount of funds drawn down, as well as the project meeting a national objective. If the project does not meet a national objective, i.e. job creation, then 100% of the CDBG grant funds received will have to be returned to the State of Michigan within six months of the ending term of work. In addition, it is a straight percentage owed based on the year in which a closing takes place, proration of the percentage of grant funds being repaid based on partial days owned is not allowed.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

In addition, any change in the use of the building will require written approval from our office 14 days prior to the change occurring. If an unauthorized change of use occurs without MSHDA CATeam consultation or non-compliance of CDBG requirements is determined, then restitution of the entire grant amount will may be required.

After Year 5 (after the closing date anniversary in year 2011), the restricted resale and reuse provision will be dissolved and all MSHDA CATeam ties to the project are terminated. The repayment percentages/proceeds identified above are calculated based on the actual CDBG façade improvement funds awarded and drawn down as well as the project meeting a national objective of job creation. If the job creation does not occur, then 100% of the CDBG grant money received would have to be returned within six months of the ending term of work.

The Developer further acknowledges that should the matching investment and job creation goals for this project not be met, the Michigan State Housing Development Authority’s Community Assistance Team may require the repayment of the CDBG funds up to the full grant amount.

Dated this day of 2006.

Witnessed By:

Private match commitment is $XXXXXXXProperty Owner Name – Property Address


Prorated resale program income provision

Prorated Resale/Program IncomeProvision


Property ownership

Property Ownership

  • For the façade portion of the Grant's Term, the Grantee/Benefiting Property Owners hereby agree to fully repay the Grantor the full grant amount, in the event that the Grantee/Benefiting Property Owners fail to obtain the Grantor's written approval prior to the following actions by the Grantee:

    (a)  Grantee/Benefiting Property Owners either sell, or otherwise transfer the Real Property's ownership responsibilities to some other entity.

    (b) Grantee/Benefiting Property Owners lease or assign their interest in any portion of the Real Property.

    (c) Grantee/Benefiting Property Owners permit liens or claims of any type to be placed on the Real Property

  • For the façade portion of the Grant, the Grantee/Benefiting Property Owners must demonstrate ownership of the property for five years from the date of the grant agreements beginning term of work. If the Grantee/Benefiting Property Owners decides to transfer ownership within five years from the closing date, the Grantee/Benefiting Property Owners must notify the State thirty days prior to the transfer. The State will identify during that thirty day notification period the appropriate repayment amount and repayment terms and also provide a written release to authorize the transfer. If a transfer takes place without written authorization, full repayment of the entire grant award will be required within 30 days made payable to the State of Michigan.


Grant provisions

Grant Provisions

  • To abide by the repayment/reuse/resale provisions that requires if the property is sold within five years from the completion of project activities, or the property closing date, a prorated portion of the proceeds must be returned to the State of Michigan. The prorated formula will be based on Year 1 - 100% payback; Year 2 - 80% payback; Year 3 - 60% payback; Year 4 - 40% payback; Year 5 - 20% payback the following:

  • Year 1 (closing date 2006 – closing anniversary date 2007) - 100% payback;

  • Year 2 (closing anniversary date 2007 – closing anniversary date 2008) - 80% payback; Year 3 (closing anniversary date 2008 – closing anniversary date 2009) - 60% payback;

  • Year 4 (closing anniversary date 2009 – closing anniversary date 2010) - 40% payback; and

  • Year 5 (closing anniversary date 2010 – closing anniversary date 2011) - 20% payback.

    The repayment percentages/proceeds identified above are calculated based on the actual CDBG funds awarded to a specific property address, the amount of funds drawn down, as well as the project meeting a national objective.

    If the project does not meet a national objective, i.e. job creation, then 100% of the CDBG grant funds received will have to be returned to the State of Michigan within six months of the ending term of work. In addition, it is a straight percentage owed based on the year in which a closing takes place, proration of the percentage of grant funds being repaid based on partial days owned is not allowed.


Program income

Program Income

  • Any program income received by the Grantee, over $25,000 a calendar year, related to the properties identified as a part of this project, must be reported to the MSHDA Community Assistance Team within 30 days of receipt and all MSHDA CATeam/U.S. Department of Housing and Urban Development program income restrictions apply.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

JOB CREATION PROJECTS:

The grant is expected to create ten permanent jobs. The jobs to be created will pay an hourly rate of at least $7.75. At least 51 percent of the ten permanently created jobs shall be made available to, or held by, low and moderate-income persons. If the project results in more jobs than expected, then the 51 percent requirement shall apply to the higher jobs number.

The Grantee and the Developer/Tenants are expected to use their best efforts to achieve the jobs commitment. If the project does not result in the number of permanent jobs identified above, the State retains the right to require the Grantee and the Developer/Tenants to repay the full amount of the grant funds. If the project does not meet the 51 percent requirement and the project cannot be qualified under any other national objective (imminent public health threat or prevention of slum or blight), then the project does not qualify under a national objective and all grant funds must be repaid. In all cases when the number of permanent jobs is not achieved, the Grantee and/or the Developer/Tenants shall be required to provide an explanation and documentation satisfactory to the Grant Administrator.

In order to demonstrate that jobs are held by low and moderate-income persons, the Grantee agrees that it shall use, and cause the Developer and Tenants to use, copies of the Income Certification Form, which is attached as Attachment C. The Grantee, Developer, and Tenants shall continue to document actual job creation and collect the Income Certification Forms until the project is formally closed out by the Michigan State Housing Development Authority. Low and moderate-income figures (Section 8 Income Limits) are updated each year by the U.S. Department of Housing and Urban Development. The Income Certification Form may be updated by the Grantee to include the latest low and moderate-income figures.


Welcome to the mshda cateam cdbg training

MSHDA GRANT NUMBER 200610-CAT

STATE OF MICHIGAN

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

DOWNTOWN FAÇADE PROJECT

GRANT AGREEMENT

BETWEEN THE

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA)

COMMUNITY ASSISTANCE TEAM (CATeam)

AND THE

CITY OF HOUGHTON

(October 2006)

TABLE OF CONTENTS

I.  Grant Offer

II.  Special Terms and Conditions

  A.  Total authorized budget

  1.  Sources of funds

  2.  Application of funds

  B.  Scope of Work

III. General Terms and Conditions

IV.  Acknowledgment

Attachment A: Project Budget

Attachment B: Project Description

I.  GRANT OFFER FOR MSHDA CDBG GRANT NUMBER 200610-CAT

The Executive Director of the Michigan State Housing Development Authority (hereinafter, the "Grantor"), acting pursuant to the Act, hereby offers to the City of Houghton (hereinafter, the "Grantee"), grant assistance subject to the Grant Agreement.

The maximum amount of grant assistance hereby offered is $200,000, but not more than forty-seven (47) percent of the total actual costs of the façade improvements being financed with CDBG funds, local funds, and private matching funds as outlined in the project description (Attachment B).  If the actual cost is less than shown in the Total Authorized Budget (See Section II. SPECIAL TERMS AND CONDITIONS A. 1) the amount of the grant shall be reduced on a proportional basis.  The Grantee shall be responsible for any cost overruns.

The term of work performance shall be fifteen (15) months from October 1, 2006 through

December 31, 2007, plus additional time to meet reporting and other procedural requirements.   Grant funds will only be made available for the Grantee's eligible expenses, which occur during the term of work performance in accordance with the Grant Agreement. The grant is dependent upon the Michigan State Housing Development Authority’s Community Assistance Team’s continued receipt of Community Development Block Grant funds and the availability of adequate funds.

This Grant Offer does not commit the Grantor to approve requests for additional funds during or beyond this grant.

This agreement is being formally executed as of October 1, 2006 by Michael R. DeVos:

Michael R. DeVos, Executive Director

Michigan State Housing Development Authority

The Grantee hereby certifies that there has been no known adverse material change in the business, properties, financial, or other conditions (including but not limited to current taxes and no non-mortgage liens on properties) of the businesses receiving façade improvements since the date of the grant application, unless expressly acknowledged in writing to the Michigan State Housing Development Authority’s Community Assistance Team.

The foregoing Grant Offer is hereby accepted and it is agreed that the funds made available will be used only as set forth herein and in the attached Special and General Terms and Conditions.

Dated this day of , 2006.

WITNESSED BY:

Signature of Authorized Official

Attachment C

MSHDA Community Assistance Team, Michigan Community Development Block Grant Program

Income Certification Form

The City of XXXXX is participating in a federal grant program. If the seven properties receiving façade improvements create jobs during the project’s term of work, as a requirement for the grant, we must document income levels of the new employees.

Your response will only be used for statistical purposes related to the grant and will not be kept on record in your employee file.

Grantee:City of XXXXX

Grant Number:2006XX-CAT

County:Houghton

Project: Downtown Façade Project – Round One

Developers Name:City of XXXXXX

Please check the box on the appropriate line according to your household size and annual family household income (including yourself). Your annual household income must be at or below the amount on the line you check on this date. Do not include income you expect to receive from your new employment. If your annual family household income is above the income categories identified below, check the box “Exceeds above mentioned income limits”.

Please check one of the following Annual Family Household Income Limits boxes below:

1 Person2 Person3 Person4 Person5 Person6 Person7 Person8 Person

VERY LOW: □ $10,750 $12,300 $13,800 $15,350 $16,600 $17,800 $19,050 $20,250

LOW: □ $17,900 $20,500 $23,050 $25,600 $27,650 $29,700 $31,750 $33,800

MODERATE: □ $28,650 $32,750 $36,850 $40,950 $44,250 $47,500 $50,800 $54,050

□ Exceeds above mentioned income limits

Signature: _____________________________Date: ____________________

Printed Name: _____________________________


Questions1

Questions


Payment process

Payment Process

  • Complete Payment Request Form

  • Attach invoices

  • Send request & backup doc’s to MSHDA

  • MSHDA reimburses your community

    Typically Reimbursement Only

  • First payment request triggers establishment of a monitoring visit


Payment processing

Payment Processing

  • Façade – We expect to pay up to 50% of the costs (or the percentage outlined in grant agreement)… payments will be approved based on the match percentage paid up to that point

    Example:

    Façade Invoice comes to our office for $20,000 – if the match requirement has not been met, we would pay up to the designated percentage (maximum 50%) of the invoice as outlined in the grant agreement = $10,000


Welcome to the mshda cateam cdbg training

Monitoring Review Structure

  • Downtown Infrastructure and Façade grantees will have an on-site monitoring review following the first substantial payment request.

  • Signature Building – will take place after property is acquired and tenants have been identified.


What is required after the grant agreement is executed

What Is Required After the Grant Agreementis Executed?


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What Are We LookingFor?


Cdbg paperwork

CDBG Paperwork


Cdbg monitoring visit

CDBG Monitoring Visit

  • Federal program which has some specific criteria that each project must meet.


Monitoring process

Monitoring Process

  • Once CDBG funds are requested and received a monitoring visit is triggered.

  • Monitoring Guide Checklist

  • Project File Setup Recommendation


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Monitoring Review Structure

  • All infrastructure and façade grantees will have an on-site monitoring review following the first substantial payment request.

  • Signature Building – will take place after property is acquired and tenants have been identified.

  • Land Assembly – will take place after the closing and close to the expiration of the six month inactivity period.

  • Planning – will take place once a final plan has been provided.


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Monitoring Visit

  • Examine Project Files

  • Tour of Project Site

  • Follow-Up Letter indicating compliance status

  • Closeout Process


Another decision point how do i set up my project files and prepare for a monitoring visit

Another Decision Point . . . How Do I Set Up My Project Files and prepare for a Monitoring Visit?


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MONITORING GUIDE COMPLIANCE CATEGORIES

  • Environmental Review Procedures

  • Financial Management

  • Labor Standards (If Applicable)

  • Civil Rights/Equal Opportunity

  • Uniform Relocation Act (If Applicable)

  • National Objective


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MONITORING GUIDE CATEGORIES

  • Environmental Review Procedures

  • Financial Management


Financial management

Financial Management

  • Procurement Process

  • Grant dollars management

  • Reporting requirements

  • Single Audits

  • Accounting records showing receipts and expenditures

  • Copies of invoices, State checks, and outgoing checks.


On site monitoring review checklist

On-Site Monitoring Review Checklist

Financial Management

  • Records showing receipts and expenditures (accounting records, checks, receipts, etc.)

    i.e. Spreadsheet

  • Invoices, Copies of Outgoing Checks

  • Copies of Check(s) received from State Treasury

    **If EFT: Copy of Bank Statement/E-mail

    from State Treasury

  • Verification of procurement including:

    advertisement for bids, bid tabulations, RFP/RFQ,

    bid award documentation, bid and contract documents


Federal and grant management

Federal and Grant Management

  • Approved projects have a grant agreement and have received written authorization to incur costs.

  • Grant payments are made based on request by the local government.

  • Six month progress reports.

  • On-site monitoring and technical assistance reviews.

  • Annual and final single audits. CFDA #:14.228


Financial management1

Financial Management

  • Were project costs incurred after the environmental release date?

    CDBG

    Local

    Private

    Engineering – Early Release Letter


Financial management2

Financial Management

  • Were generally accepted accounting principles followed? i.e. money trail

  • Records which adequately identify the source and application of funds for grant supported activities were maintained.

  • Records include comparison of actual outlays with budgeted amounts for each grant.

  • Internal accounting controls maintained are adequate to safeguard CDBG funds. (2 signatures on checks)

  • Transactions are supported by original source documents.

  • Time between receipt of grant payment and disbursement of funds was as close as administratively feasible.


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  • Financial and related records are maintained for a minimum of three years.

  • Was interest earned on grant funds?

  • Documentation of local match requirement provided.

  • Employees handling CDBG grant cash are bonded or insured.

  • All grant expenditures were necessary, reasonable, and allowable in accordance with OMB Circular A-87.


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  • Procurement standards and the use of consultants and contractors under Michigan CDBG funded activities were in accordance with 24 CFR Part 85.

  • Bonding and insurance requirements relating to bid guarantees, performance bonds, and payment bonds for Michigan CDBG funded contracts (and sub-contracts) were in accordance with 24 CFR Part 85.

  • Grantee is aware of the need for and the requirements of a single audit.


Mshda cateam program income policy

MSHDA CATeam Program Income Policy

Any program income received by the Grantee, related to the properties identified as a part of a CDBG project, must be reported to the MSHDA Community Assistance Team within 30 days of receipt. Program income on hand must be committed/released prior to requesting additional CDBG grant payments on all open MSHDA CATeam projects.

Any gross lease/rental program income received that totals less than $25,000 in a calendar year (January 1st – December 31st) will be reviewed by the MSHDA CATeam. The community has the option to request to utilize the program income to do additional project related activities. The MSHDA CATeam will review the request and determine whether to give written authorization or request that the program income be returned to our office.

Any gross lease/rental program income generated on the “property” purchased with CDBG funds over the amount of $25,000 in a calendar year (January 1st – December 31st) must be returned to our office within 60 days of the end of the calendar year it was received in.


Program income examples

Program Income Examples

1 Building

1,000 square feet rental space

12 months/$24,000 in rent = $2,000 rent per month/1,000 square feet = $2 per square foot

2 Buildings

800 square feet rental space in each

12 months/$24,000 in rent = $2,000 rent per month/1,600 square feet = $1.25 per square foot


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MONITORING GUIDE CATEGORIES

  • Environmental Review Procedures

    Financial Management

  • Labor Standards (If Applicable)


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The Davis-Bacon Act as amended, requires that each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract. Under the provisions of the Act, contractors or their subcontractors are to pay workers employed directly upon the site of the work no less than the locally prevailing wages and fringe benefits paid on projects of a similar character. The Davis-Bacon Act directs the Secretary of Labor to determine such local prevailing wage rates.


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Federal Labor Standards

  • Covers construction contracts over $2,000.

  • Requires payment of federal prevailing wages.

  • MSHDA provides CDBG recipients with federal prevailing wage decisions and documents to include in bidding specifications and contracts.

  • Locals review weekly payroll reports and conduct employee interviews.

  • Contract & Subcontract Activity Form (HUD-2516)


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  • Designated a labor standards officer.

  • Wage rates requested and included in bid specs.

  • Verified no wage determination update necessary within 10 days of bid opening.

  • Included labor standards provisions in bid specs and contracts.

  • Verified contractor and subcontractor eligibility.

  • Provided two weeks payroll and has collected and verified on-site all weekly payrolls.

  • Conducted and provided worker interviews and documented any on-site worker complaints.


Cdbg bid advertisement

CDBG Bid Advertisement

Must contain the following language:

This is a Federally Funded project. The Contractor and Subcontractors on this project must comply with HUD contract provisions 24CFR part 85.36(i), the Davis-Bacon Act, Nondiscrimination, Equal Employment Opportunity, Affirmative Action, Section 3 requirements, Anti-Kickback Act, Federal Occupational Safety and Health Act and Department of Labor Standards and Regulations as set forth in the Contract Bid Documents.


Bid documents and contracts

Bid Documents and Contracts

Must contain the most current Federal Davis-Bacon

Wage Determination (IN ITS ENTIRETY).

http://www.gpo.gov/davisbacon/mi.html

They must also contain three federal

documents (IN THEIR ENTIRETY).

  • FEDERAL LABOR STANDARDS PROVISIONS

  • EQUAL OPPORTUNITY CLAUSE (EXECUTIVE ORDER 11246)

  • SECTION 3 CLAUSE


Selection process

Selection Process

  • Must advertise.

  • Must have a minimum of two bidders.

  • Must select the low bidder.

  • Must verify via http://www.epls.gov/epls/search.do that the contractor is not on the debarred list and send in confirmation to MSHDA or contact MSHDA to check it on your behalf.


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* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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Frequently Asked Questions

What wage rates must be paid to supervisory employees (foremen,

superintendents, etc.) employed on a covered project?

The wage rates for bona fide Supervisory employees are not

regulated under the Davis-Bacon and related Acts because their duties are

primarily administrative or executive in nature rather than those of laborers or mechanics. However, such employees who devote more than 20 percent of their time during a work week to mechanic or laborer duties are

laborers and mechanics for the time so spent, and must be paid at least the

appropriate wage rates specified in the wage determination. Employees who are bona fide executive, administrative, or professional employees as defined under the Fair Labor Standards Act at 29 CFR Part 541 are not covered by the Davis-Bacon Act

* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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* If approved plan is checked by a non-union contractor, obtain documentation for the plan.


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MONITORING GUIDE CATEGORIES

  • Environmental Review Procedures

    Financial Management

    Labor Standards (If Applicable)

  • Civil Rights/Equal Opportunity


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Civil Rights, Equal Opportunity,

and Fair Housing

  • Local governments receiving CDBG funds must comply with federal and state civil rights, equal opportunity, and fair housing requirements (Title VI

    of the Civil Rights Act of 1964).


Civil rights

Civil Rights

  • Copy of Community Profile

  • Civil Rights Policy, Affirmative Action

    Plan, Fair Housing Policy and/or Equal

    Opportunity Employer Plan (Poster)

  • Status of any ongoing/unresolved civil rights complaints received by the community


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MONITORING GUIDE CATEGORIES

  • Environmental Review Procedures

    Financial Management

    Labor Standards (If Applicable)

    Civil Rights/Equal Opportunity

  • Uniform Relocation Act (If Applicable)


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Property Acquisition

and Relocation

  • Acquisition of real property – Uniform Relocation Act (URA).

    - Notification of property owner.

    -Real estate appraisal prepared and reviewed.

    -Property owner must be offered the fair market value.

    -Property owner has option of accepting or declining offer.


Property acquisition and relocation

Property Acquisitionand Relocation

URA covers the relocation of persons, businesses, farms, and nonprofit organizations.

  • Written notice to persons to be displaced (90 days).

  • Displaced persons – relocation payments, moving expenses, and assistance.


Uniform relocation act

Uniform Relocation Act

  • Property Acquisition

    Voluntary Sale Letter

    Letter informing them of their rights

    Option/Purchase Agreement

    Closing Statements must have grant agreement attached as an exhibit.

    Copy of Recorded Deed (executed grant agreement must be part of the recording)

    Copies of checks (front and back)

    Community must provide verification of clear title.


Uniform act property acquisition

Uniform Act(property acquisition)

  • Letter Notifying Property Owners of Rights under Uniform Act

  • Appraisal and Review Appraisal

  • Reimbursement/Donation

  • Relocation Assistance (if applicable)

  • Closing Statement

  • Documentation of Compensation Paid

  • Recorded Deed


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MONITORING GUIDE CATEGORIES

  • Environmental Review Procedures

    Financial Management

    Labor Standards (If Applicable)

    Civil Rights/Equal Opportunity

    Uniform Relocation Act (If Applicable)

  • National Objective


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National Policy Objectives

  • Direct benefit to low and moderate income people.

  • Area-wide Benefit – Qualified up front

  • Job Creation


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    Project Reporting

    There will be a progress report mailed out

    March/September 2008 that will be due April/October 2008.

    They are due every six months April 1st and October 1st.

    This progress report will be required to be returned by the due date in order to process future payment requests and remain in grant compliance.


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    Some of the new reporting requirements will require a revised Attachment C Form

    for all projects that are being qualified based on job creation as well as additional

    Information for all projects will be added to the progress report to meet the new

    IDIS performance measurement data requirements that must be entered into

    IDIS as final completion data.

    This information includes, but is not limited to:

    Income Levels of new employees by extremely low, low, moderate, and non

    low/mod categories.

    Project beneficiary data broken down into 11 categories by race/ethnicity.

    Does the employer offer health care for this job? Yes or No

    Was the employee/applicant unemployed before taking this job? Yes or No

    Number of actual jobs created broken down into full-time, part-time (specify

    Number of hours worked per week), seasonal – defined as primary jobs that

    are held for at least seven months out of the year and based on 40 hours

    per week. If it the employee’s only job then we can use 30+ hours per week to

    Equate to a FTE.


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    Type of job classification.

    Projected minimum hourly rate of pay versus actual minimum hourly rate of pay.

    Breakdown of employee benefits sponsored by employer.

    Total number of businesses assisted.

    Number of new businesses assisted.

    Number of existing businesses assisted

    Number expanding

    Number relocating


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    Number of businesses with commercial façade or business building rehab.

    Number of businesses that provide goods/services to meet needs of a service area/neighborhood/community.

    DUNS number for each business assisted.

    Acres of brownfields redeveloped


    Project closeout

    Project Closeout

    Project Complete

    • All $ Disbursed

    • Project Activities and Job Creation Met

    • Final Information Closeout Request Letter

      • Final Match $ Amts

      • Final Progress Report

      • Final Job Creation Doc’s

      • Final Public Hearing

      • Final Audit


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    MSHDA CATeam

    Downtown Initiatives

    PILOT PROGRAMS:

    HOPING TO MAKE CASE FOR FUTURE FUNDING ROUNDS;

    MEDIA ATTENTION … VERY IMPORTANT COMPONENT

    any media articles, check presentations, press releases,

    groundbreakings, ribbon cuttings -- forward to our office for the

    project file

    Before (SHPO Pictures); During; After Pictures Required

    Any status updates/milestones within the project, send an e-mail to Tonya Young at [email protected]


    When in doubt

    When in Doubt?

    Contact your CATeam Representative or Tonya Young to resolve a question or conflict.


    Technical assistance

    Technical Assistance

    • If you have any issues that arise please contact our office ASAP.

      CATeam Main Line 517.241.1737

      or

      Tonya Young 517.335.4337


    Questions2

    Questions


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