Welcome!

1. Welcome! • Please sign in when the sheet comes around • Pick up a packet • Help yourself to coffee, water and snacks • Find a seat • Please silence cell phones

2. CDBG Administrative Requirements Technical Assistance Workshop for Municipalities Presented by: St. Louis County Office of Community Development

3. Before we begin… • Sign in if you haven’t already • Pick up a packet • Restrooms and drinking fountains • Please silence cell phones • You will be able to ask questions at the end of each section

4. CDBG STAFF Kathryn Mayrose Community Development Manager Alex DurdelloCommunity Development Specialist Emily KamaraCommunity Development Specialist Mitch MarkuCommunity Development Specialist Nikki ThompsonCommunity Development Specialist Christine DoroughOffice Services Specialist

5. Agenda • CDBG Overview • Getting Started • Engaging Your Residents • CDBG Application and Agreements • Successfully Managing Your CDBG Funds • What’s New in the CDBG Program • Affirmatively Furthering Fair Housing

6. Cdbg overview Kathryn Mayrose Community Development Manager

7. What is cdbg? • Community Development Block Grant Program • Funding to help local communities stay vibrant and sustainable • Federally administered by HUD • Funds must be spent on projects that meet a HUD National Objective: • Benefit low and moderate (LM) income people as defined by HUD income limits • Eliminate slums and blight • Address urgent needs that threaten health and safety (RARE—requires special approval from HUD)

8. Eligible CDBG activities • Street and Sidewalk Improvements • Park and Recreational Improvements • Home Improvement Program (HIP) • Demolition • Public Services • ADA Improvements • And many more!

9. Ineligible activities • Buildings for conduct of government • Example: City hall improvements • Exceptions: Police/fire stations, community centers, ADA • General government expenses • Example: Regular trash pickup • Political activities • Example: Campaigns, voter registration drives • Activities that support religious worship or proselytizing

10. restricted activities • Repairs or maintenance of public infrastructure • New housing construction • Purchase of equipment • Operating and maintenance expenses

11. How it works • There are several different CDBG programs, but the one we participate in is called the CDBG entitlement program • HUD allocates funds to St. Louis County every year • The Office of Community Development (OCD) administers funds on behalf of St. Louis County • OCD sub-grants to municipalities, nonprofits and other County departments

12. Where the money goes

13. Muni participation • Any municipality in St. Louis County can participate • Threshold to participate: • Pass ordinance/resolution authorizing execution of Cooperation Agreement • Execute Cooperation Agreement (auto-renewing) • Enact fair housing ordinance with mechanism for enforcement • If you do the above, your muni is entitled to receive a CDBG allocation each year.

14. However… …there are administrative requirements that have to be followed!

15. Muni obligations • There are other requirements, depending on what activities you choose • At a minimum, municipalities must annually: • Hold a public hearing • Submit an application • Execute a Supplemental Cooperation Agreement • Affirmatively further fair housing • Spend your funds!

16. OCD Obligations • Approve municipal applications • Complete environmental reviews • Submit annual Action Plan to HUD (this is why we need your applications so early!) • Provide technical assistance and ensure activities meet applicable requirements • Report progress on all activities to HUD each year (this report is called the CAPER) • Monitor all activities for regulatory compliance • Make sure we meet annual HUD spending deadline

17. the spending deadline • Each year on Nov. 1, HUD checks our balance of unspent funds • Must have less than 150% of our allocation on hand • For example, if the allocation is $5 million, we have to be under $7.5 million by Nov. 1 (5,000,000 x 1.5 = 7,500,000) • Failure to meet this deadline could result in sanctions, including reduction of future funding • As community partners, we rely on you to spend your CDBG funds in a timely manner!

18. What can your muni do? • Every activity is NOT eligible everywhere • LM areas have the most options • At least 51% of residents are LM per census data • Green areas on the map we provide with your application • Also available on the County’s website • If your municipality has no LM areas, here are some things you can do: • Home Improvement Program • ADA • Public Services • Demolition

19. Other limitations • Public service cap – 15% of County allocation • Planning and admin cap – 20% of County allocation • At least 70% of County allocation must be spent on activities that meet the LM National Objective (i.e. not demolition)

20. Getting started Emily Kamara Community Development Specialist

21. A common misconception “Changing CDBG activities is no big deal…”

22. To change or not to change • Activity changes may trigger additional compliance: • Notify residents of new public hearing • Hold new public hearing • Submit new application (change of activity form) • Complete a new ERR • Amend Supplemental Agreement • Amend Annual Action Plan submitted to HUD • Activity changes may also result in the following: • Delayed activities (which can then become weather delays) • Potential for not meeting HUD spending deadline • Wasted time, effort and money

23. Planning for success (1/2) • Develop protocols for regularly assessing your community’s needs • Rate the condition of infrastructure • Complete an ADA study • Survey residents, businesses, community organizations • Gather or update housing data • Single-family and multi-family dwellings • Vacant, owner-occupied and rentals • Deferred maintenance or code violations

24. Planning for success (2/2) • Speak with officials from other municipalities about their needs and resources to explore potential collaboration • Start the site control process as soon as you know the sites • Consider developing a new strategic planor updating an existing one • Think about other potential fund sources to ensure CDBG is the most appropriate

25. public hearing prep • Contact your CD specialist to verify: • How many people are on the waiting list for the Home Improvement Program • Amount of available CDBG funds, including remaining balances from previous years • Think about your timeline and make sure it lines up with when CDBG funds will be available

26. More public hearing prep • Create a preliminary activity budget—get estimates if needed • This ensures your CDBG allocation will cover expected costs, combined with other funds if needed • Also ensures your proposed project will use up your entire balance of CDBG funds • Develop a plan in advance to propose at hearing

27. Are planning costs eligible? • Planning and admin are the only CDBG activities that are not required to meet a National Objective • Limited to 20% of our annual allocation • Due to this cap, we are not able to fund planning activities for municipalities

28. Engaging your residents Nikki Thompson Community Development Specialist

29. Notifying the public • Notify at least 10 calendar days in advance • Use the exact language from the template included in the application packet • Notify all residents but focus outreach on low to moderate residents • Consider location, time, and ADA accessibility • Can be held during a regular board hearing • Use one or more of the approved methods for notification

30. Notifying the public (cont.) • Approved distribution methods (choose at least 1): • Post in 3 public locations throughout the jurisdiction • Publish the full notice in a flyer, newsletter, or local paper that is sent to every household in the community • Publish the full notice in a newspaper of general circulation (St. Louis Post-Dispatch) • Additional outreach is strongly encouraged! • Social media and website • Email or text notification to residents • Post flyers or signage in additional public spaces

31. Notifying the public (cont.) • Delivered the notice door to door • Documentation submitted

32. Notifying the public (cont.)

33. Notifying the public (cont.) WHEN IT COMES TO PUBLIC ENGAGEMENT, MOREISMORE! Don’t be like Joanna Be like Brian

34. Holding the public hearing • Have all attendees sign in • Have CDBG handout available • Solicit input from citizens • Here are some ways to gain input from citizens: • Openly solicit suggestions • Propose a plan and ask for feedback (but also note other suggestions) • Propose multiple options and ask residents to weigh in

35. Allocating your CDBG funds • Submit any citizen comments with your application and provide an explanation why comments were not considered, if applicable • When it’s time to actually make the decision, follow municipal processes and state law • IMPORTANT: If your activity is a conflict of interest to an elected official, you must hold a board vote, and the conflicted party must abstain from voting. This must be reflected in the minutes.

36. Allocating your CDBG funds • Sometimes change is good • Your job is important to the community • When you are successful so are we!

37. cdbg application and agreements Alex Durdello Community Development Specialist

38. Basic application steps • Complete the application and have chief elected official sign • Mark activity location(s) on the map that is provided (if applicable) • Submit application and all attachments by May 15, 2019 • Public hearing sign-in sheet • Proof of posting or publication • Signed or approved minutes • Citizen comments, if applicable • Activity map, if applicable • Make the application publicly available for at least 30 days after submission

39. Common application issues • Chief elected official did not sign • No proof of publication or posting • Incomplete project scope and/or locations • No sign-in sheet or incorrect sign-in sheet • Draft minutes or unapproved minutes • Fair housing information incomplete • Using applications, templates and forms from past years

40. application approval • Application is approved by CD specialist • What do we look for? • Is the activity eligible? • Does it meet a national objective? • Are the activity scope and location provided? • Is the application signed by a chief elected official? • Is the municipality affirmatively furthering fair housing? • Were citizen participation guidelines followed? • Are all attachments present and correct?

41. remember… If we don’t have your COMPLETE application on time, you may not get your funds!

42. Conflict of interest • Special approval from HUD is required • Examples of activity selection conflicts: Asphalt overlay on a street where an elected official lives; a relative of an elected official participating in the Home Improvement Program

43. Conflict of interest process • Discuss activity and disclose conflict of interest during the public hearing • Have board vote on activity – conflicted party must abstain • Make sure final minutes reflect vote and abstention • Complete the application, making sure to indicate that the activity is a conflict of interest • Submit application and attachments • Contact CD specialist for further instructions

44. Types of CDBG Agreements Cooperation Agreement Supplemental Agreement Executed every year prior to funds being allocated No ordinance required 2 copies: 1 Muni, 1 OCD Executed by Mayor/Chairperson and OCD Governs specific activities to be undertaken • Auto-renews every 3 years • Requires ordinance • 4 copies: 1 Muni, 1 OCD, 1 County, 1 HUD • Executed by Mayor/Chairperson and County Executive • Governs general program participation

45. Agreement do’s and don’ts DO: DON’T: Print double-sided Change or add wording Fill in the date on page 1 (we will do that) Leave any municipal signature lines blank • Send copies with wet ink signatures • Have your attorney sign • Have clerk or other staff person attest • Affix seal to both copies • Return agreements promptly

46. Successfully Managing CDBG Funds Mitch Marku Community Development Specialist

47. defining success • Residents are engaged and their needs are met • Activities are selected for optimum impact • Activity changes and budget transfers are minimized • Less time, effort and expense from having to re-do public hearings or procurement • Funds are spent by Nov. 1, never recaptured • Applicable regulations are met • Less stress!

48. Best practices • Submit applications, agreements and forms promptly • Read your CDBG agreements and contracts carefully • Designate one contact person for CDBG activities Staying in regular contact with your CD specialist =

49. More Best practices • Plan ahead to avoid changing activities later • Be strategic about splitting your allocation • Smaller projects = smaller impact • More projects = more compliance and documentation • If you have competing priorities, can you alternate from year to year? Can you consider other ways to meet needs? • Keep track of fund balances to avoid recapture • Attend our annual training sessions

50. What’s new in the cdbg program Kathryn Mayrose Community Development Manager