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about the presentation
About the Presentation

This PowerPoint presentation is an abbreviated version of the Community Development Block Grant workshop presentations for the 2009 funding cycle. The purpose is to provide an overview of each CDBG program guidelines and the application processes.

Vanessa A. Blanchard, Chief

Program Development and Grants Management Section

2009 cdbg program goals
2009 CDBG Program Goals
  • Increase drawdown
  • Improve overall CDBG product
  • Continue to provide superior customer service
local government roles and responsibilities 24 cfr part 570 501
Local Government Roles and Responsibilities24 CFR Part 570.501
  • Management and Oversight
    • Elected officials are legally, financially, contractually and programmatically responsible for CDBG project
    • Local Government is responsible to the State and the Federal government even if they have a contract administrator or a sub-recipient relationship
roles and responsibilities continued
Roles and Responsibilities, continued
  • Financial Management
    • Proper accounting of funds (avoid disallowed costs)
    • Accurate identification of project costs and cash balances
    • Proper internal controls
  • Project Files-24 CFR Part 570.506 and .508
    • Establish a system for CDBG files to ensure that they are complete, accurate and open for public review and inspection where applicable
    • Maintain files for period of time after closeout as required by applicable laws and regulations
roles and responsibilities continued1
Roles and Responsibilities, continued
  • Statement of Assurances and Certifications
    • Read and understand these documents and what you have to do to implement
    • Examples include Affirmatively Further Fair Housing, Drug free, etc.
  • Grant Agreement (24 CFR Part 570.501 and .502)
    • Contractually binding
    • Document cannot be changed without State approval
    • Local Government promise of what it intends to deliver
cdbg national objectives section 105 a hcda of 1974 as amended
CDBG National Objectivessection 105 (a) HCDA of 1974 as amended
  • Benefit low-and moderate-income persons
  • Aid in the preventive or elimination of slums of blight
  • Urgent Need
what s lmi

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


To improve the quality of life in a:

  • Residential area (Target Project Area) or
  • Local Government’s Jurisdiction (Area-Wide Jurisdictional Project)
  • Installation of New Public Water or Sewer Lines
  • Replacement of Public Water or Sewer Lines
  • Replacement of Appurtenances
  • Improvements to Water or Sewer Treatment Plants with Special Problems (e.g., moratoriums or special orders of consent)
  • Priority given to drought related activities.
  • Ready Project
  • Threshold
  • Grant Limitations
  • Two pools of funds
  • Matching funds
  • Performance Measures
Two Pools of Funds for Infrastructure:Water and/or Sewer in Residential Areas(NC: minimum 70% LMA benefit for project area)

21st Century/Tier 1 Communities

  • Available funds:


  • Maximum Grant Amount-


  • Selection criteria
    • Regional solution
    • Severity of water needs
  • No match required unless

1) the lines are over 8”

2) vacant land over ¼ mile or project costs more than $750,000 or

3)serving or connecting over income persons.

Regular Pool

  • Available Funds: $2,080,704
  • Maximum Grant Amount- $750,000
  • Selection criteria
    • Regional solution
    • Severity of water needs
  • 5% match
p erformance measures

The Infrastructure Program will use the following measures for all infrastructure activities except administration which has no performance measures.

  • Outcome: Creating Suitable Living Environments
  • Outcomes:
  • (a) For new public lines where none previously existed or new system: Accessibility
  • (b) For replacing existing lines or jurisdictional problem: Sustainability
the application process 3 steps
  • Submit a letter of interest signed by the chief elected official. (No phone calls)

a. Attachment preliminary evidence of a first public


b. From an Official Source, submit documentation of need (see application)

c. Attach a completed Preliminary Information Form

Note: Submit the above information at the same time as a packet.

the application process continued
  • Meet with Program Development Staff.

a. Who attends?

Local Government Staff

Engineer and


b. Why?

To show readiness


A Ready Project Means That:

  • The Preliminary Engineering Report (PER) is complete
  • One Public Hearing has been held
  • Surveys of Beneficiaries have been done
eligible or ineligible

DCA will send the local government either a

  • Letter of Eligibility
    • If so, applications forms will go to preparer
    • Funds will be earmarked up to 60 calendar days
  • Letter of Ineligibility
the application process continued1
  • Submit Application to DCA.

Mail to:

Ms. Gloria Nance-Sims, Director

Division of Community Assistance

4313 Mail Service Center

Raleigh, North Carolina 27699-4313

Deliver to:

Division of Community Assistance

The Methodist Building

1307 Glenwood Avenue, Suite 250

Raleigh, North Carolina

review criteria
  • Severity of Needs
  • Benefit
  • Feasibility of the Project
  • Basic Required Criteria
  • Level of Readiness
  • Overall Priorities
  • Commitment of Other Funds for the Project



Iris Payne

Senior Development Specialist, Program Development

E-mail: ipayne@nccommerce.com

Website: www.nccommerce.com/cdbg

(919) 733-2850


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

connection options
  • Connect to LMI Owner-Occupied Unit
  • Connect to LMI Tenant-Occupied Unit
    • LMI Tenant and LMI Landlord
  • Connect Manufactured Homes
    • LMI Tenant Owns the Home
    • LMI Lot Owner for Rental Lots
basic criteria
  • Line is completelyinstalledintheground & in use by HH along the line prior to submission of the application.
  • Installation of the line did not use CDBG $
  • LMI HH only can be connected to the lines using CDBG $. Others can pay w/ own $.
  • Residence must have working IP.
  • ID eligible HH in the application.
eligible activities
  • Tap or Assessment Fee to Connect Line
  • Service Connection for the Private Property
  • Use of Grinder Pumps or Vacuum Pits to Transport wastewater to Existing Sewer Lines
  • Removal of Septic Tanks or Cap Wells per Health Department
  • Repair of LMI HH leaking water pipes
  • Administration costs of no more than 15%
what s the activity named on the budget line
  • The connection of residences to public water or sewer lines is considered a REHABILITATION.
  • Planning and implementation activities are considered ADMINISTRATION.
amount of available funds grant awards
Amount of Available Funds & Grant Awards
  • Amount Available: $1 Million
  • Grant Award Max: $75,000
  • Grant Award Min: None
application process 2 steps

2009 Cycle: 7/6/09 to 12/1/09 or funds are gone.

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

& Entrepreneurial Assistance (SBEA) Grant

sbea grant
SBEA Grant
  • State-wide demonstration/pilot program
  • Begun in 2007
  • Expect participants to share success stories,

document project stages, training, events and successes

sbea purpose
SBEA Purpose

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

sbea objectives
SBEA Objectives
  • Create jobs within the community
  • Create and nurture an entrepreneurial environment within the community
first creation of new jobs
First: Creation of New Jobs
  • Permanent, full-time jobs = at least 1600 hours per year.
    • 70% of jobs must be filled by LMI persons
  • Preference given to projects paying higher wages.
  • Employers are encouraged to offer health insurance for all full-time positions at the establishment and pay at least 50% of employee premiums.
second creation of entrepreneurial environment
Second: Creation of Entrepreneurial Environment

Project must include measures to create or nurture an environment that will sustain entrepreneurial development in the community after project funding has ended.

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

Program Funding for 2008 - $1 Million

  • Individual grants of $150,000 - $250,000
  • Expect to make 4-6 awards
  • Project timeframe 30 months
  • Must create at least 1 job per $25,000
award amount1
Award Amount
  • Must create at least 1 job per $25,000
    • For example:
      • Individual grant of $250,000
      • $250,000 / $25,000 per job = 10 new jobs
        • 70% of jobs must go to LMI persons
        • 7 of 10 jobs must go to LMI persons
job creation eligible activities
Job Creation Eligible Activities
  • Infrastructure improvements (e.g., water, sewer, roads);
  • Purchase of land;
  • Construction of a building or other improvements;
  • Renovation of an existing building to accommodate the business;
  • Construction of tenant improvements/finishes;
  • Leasing space in or purchasing an existing building;
  • Purchasing capital equipment; and
  • Providing job training that can be linked to specific jobs at a specific firm.
ineligible activities for job creation
Ineligible Activities for Job Creation
  • Revolving loan funds;
  • Incubator projects for start-up businesses;
  • Job training that can’t be linked to a specific job at a specific firm.
hud ineligible activities
HUD Ineligible Activities
  • Jobs transferred from other facilities;
  • Assist companies that are in bankruptcy;
  • General promotion of a community as a whole;
  • Assistance to professional sports teams including automobile racing teams;
  • Assistance to privately-owned recreational facilities that serve a predominantly higher-income clientele;
hud ineligible activities1
HUD Ineligible Activities
  • Acquisition of land where no specific proposed use has been identified;
  • Assistance to a business that is the subject of unresolved findings of noncompliance relating to previous CDBG assistance;
  • Projects that do not create/retain jobs for low and moderate income persons.
entrepreneurial environment
Entrepreneurial Environment

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

entrepreneurial environment eligible activities
Entrepreneurial Environment Eligible Activities
  • Planning for an entrepreneurial environment;
  • Training of the project team and community leaders to learn about methods and tools for creating an entrepreneurial environment;
  • Coordinating meetings to identify needs of entrepreneurs;
  • Sponsoring events to market local entrepreneurs/businesses.
entrepreneurial environment ineligible activities
Entrepreneurial Environment Ineligible Activities
  • Outsourcing the development of a general strategic plan or feasibility study for the community;
  • Payment of salary for anyone other than the grant administrator.
evaluation criteria
Evaluation Criteria
  • Appropriateness and feasibility of business activities
  • Appropriateness of plan for creating an entrepreneurial environment
  • Local commitment and community partnerships
  • Timely and effective public participation
  • Grant Administration capacity and past performance.

Valerie D. Moore, SBEA Program Manager

E-mail address: vmoore@nccommerce.com

Phone: (919) 733-2850, Ext. 234

Website: www.nccommerce.com

  • Local unit of government
  • Eligible non-profit
  • Future CDBG project
  • Benefit LMI persons
  • $75,000 total over 24 month period
capacity building activities
Capacity Building Activities
  • Hiring of staff
  • Training, including travel
  • Project administration
  • Project planning
application process
Application Process
  • Telephone Capacity Building Manager
  • Meet with Capacity Building Manager
  • Submit Application to DCA

Valerie D. Moore, Capacity Building Program Manager

E-mail address: vmoore@nccommerce.com

Phone: (919) 733-2850, Ext. 234

Website: www.nccommerce.com

hd program overview

HD Program Overview

The objective of the Housing Development (HD) category in North Carolina’s Small Cities Community Development Block Grant (CDBG) program is to support projects that create additional units of affordable housing for low and moderate income (LMI) people. The Division of Community Assistance (DCA) in the N.C. Department of Commerce administers the Small Cities CDBG Program.

housing development hd
Housing Development (HD)
  • CDBG funds are awarded in the form of a grant. The maximum amount available per applicant is $250,000 with a $18,000 per unit maximum for owner occupied Units and $6,000 for rental units. Approximately $2 million is allocated for Housing Development. This amount is divided into 2 pots of money, one for homeownership and regular rental housing and the other for tax credits.
regular housing development
Regular Housing Development

Single Family

Home Ownership

Multi-Family Rental

hd tax credit program

HD Tax Credit Program

This application for multi-rental units has been specifically prepared to be used only in conjunction with the Tax Credit and/or Rental Production Program (RPP) application to the North Carolina Housing Finance Agency.

grant award
Grant Award
  • Timed with NCHFA’s schedule
  • NCHFA notified of who we are willing to fund.
  • Local government will not be notified until after NCHFA’s announcement of awards.
  • Developer will be notified by the local government
who is the applicant
Who is the applicant?
  • In the CDBG Program, only a local government can be the applicant.
    • A developer must partner with the local government applicant to have access to CDBG funds.
important information on hd projects
Important Information on HD Projects
  • A local government can have only one HD project under consideration in a program year.
  • If funded, the project must be completed within 36 months and the grant closed out.
application process1
Application Process
  • Letter of Interest from the local government
  • At least 1 meeting with DCA required.
    • Local government must be present.
    • Have at least preliminary drawings/plans for the housing to show us.
    • Know what you want CDBG funds to pay for.
    • Have some preliminary drawings/plans for proposed CDBG-funded infrastructure.
  • Site visit before application submitted
putting the application together
Putting the Application Together
  • Use person experienced in Small Cities CDBG Program
  • Call or set up extra meetings for technical assistance when you have questions.
    • If you don’t know, ask!!
eligible activities1
Eligible Activities
  • Installation of public infrastructure
      • On-site
      • Off-site: must be 51% benefit in census tract
  • Removal of hazardous waste
  • Rent to own (letter of interest due June 30th )-New for 2009
  • Acquisition of vacant land
      • In partnership with eligible Community-based Development Organization (CBDO)

Community Based Development Organization

  • Non-Profit: 501(c)(3)
  • 51% governing body must be LMI
  • Separate from local government
  • Active & substantive development partner
eligible recipients
Eligible Recipients
  • All municipalities except 23 entitlement cities
  • All counties except 2 urban counties
          • Holly Springs in Wake County
          • Linden in Cumberland County
eligible developers
Eligible Developers
  • Non-Profit Developers
  • For-Profit Developers
    • Developer limited to 10% profit
    • If loan is made to the developer, the local government must have a plan for reuse of CDBG funds
  • All Developers
    • If funded, the local government is required to execute a Legally Binding Commitment (LBC)
legally binding commitment lbc
Legally Binding Commitment (LBC)

At a minimum, LBC should include:

  • Reference to the release of CDBG conditions
  • Roles and responsibilities of each party
  • Use of funds (both grant and loan)
  • Project requirements for HD grants
  • Insurance and bonding
  • Enforcement of the agreement
  • CDBG program requirements (State and Federal)
purpose of urgent needs grant
Purpose of Urgent Needs Grant
  • The purpose of this urgent needs application is to assist a local government in solving critical problems affecting the local public water supply system that meet the CDBG definition of urgent needs. Urgent needs is one of three national objectives set by federal statute.
  • The North Carolina Department of Environmental and Natural Resources (NCDENR) has identified the local government’s public water supply as a Tier I Level of Vulnerability.
  • The local government has declared an emergency mandatory or mandatory level of conservation.
  • The local government proposes a permanent solution to the critical water supply problem.
  • There is an economic development impact to the community, especially the industries and /or businesses providing jobs to local residents.
  • The local government’s Urgent Needs application can meet HUD’s 4-Part Test.
how to qualify
How to Qualify
  • Urgent needs applicants must qualify as meeting the urgent needs national objective in order to apply under this category. DCA uses a 4-part test based on CDBG criteria set by the U.S. Department of Housing and Urban Development (HUD) to qualify applicants as eligible for funding.
four part test
Four Part Test

The existing condition must meet the following tests: 

  • 1. The need has arisen during the preceding 18-month period and represents an imminent threat to public health or safety.
  • 2. The activity is designed to alleviate existing conditions, which pose a serious and immediate threat to the health or welfare of the community, which are of recent origin or which recently became urgent.
  • 3. The applicant does not have sufficient local resources.
  • 4. Other financial resources are not available to alleviate the urgent need.

2009 Community Revitalization Program

N.C. Department of Commerce

Division of Community Assistance

Program Development

guidelines introduction

The primary purpose of the North Carolina Small Cities CDBG Program is provide grants to local governments to develop viable communities by providing decent housing, a suitable livingenvironment, and expanding economicopportunities, principally for persons of low and moderate income

introduction continued
Introduction continued….
  • 4 Allocation Areas
    • Map (In the application)
  • Threshold Requirements
  • The threshold schedule is as follows:
  • 2008 & 2007-Community Revitalization grant recipients are not eligible to apply.
  • 2006- Eligible to apply provided the grantee is closed pending final audit
  • 2005 and previous –Must be officially closed.
introduction continued1
Introduction continued

Award Amounts

  • Basic Activities$850,000

Includes Housing (acquisition, disposition, clearance, relocation and rehabilitation), water and sewer, drainage and streets.

  • Basic Plus Innovative Activities$851,000- $1million

Housing, water/sewer, streets and drainage Plus

Non-basic CR activities (housing, community centers, parks and other activities.

introduction continued2
Introduction continued…
  • One Year Cycle
    • Applications due September 30, 2009
  • When planning your project, keep these 3 situations in mind, either not eligible or cannot count other needs:
    • Project with no housing needs;
    • Project with housing and on-site problems but no public water/sewer available is only a housing project;
    • Vacant dilapidated structure scheduled for clearance cannot claim other needs, only a housing need.
performance measures for community revitalization
Performance Measures for Community Revitalization
  • C-1 Objective: Creating Suitable Living Environments
  • C-1 Outcome: Sustainability
  • L-1 Objective: Decent Housing
  • L-1 Outcome: Sustainability
important change
Important Change
  • Must submit an original and one copy of the application
  • All documents must be signed by the chief elected official.
  • No stamp signature will be accepted.
important information for applicants
Important Information for Applicants
  • 30 months for grant completion
  • Reimbursement for Improper Expenditures
  • Deliberate Misrepresentation of Information
  • Substantial Rehabilitation
    • limits increased: $40,000 per unit or $38 sq.ft.
  • Historic Properties
  • Use of Licensed General Contractor for Rehabilitation
  • Lead Based Paint Requirements
  • Accessibility
  • Energy Star
other selection requirements
Other Selection Requirements
  • Basic Plus Innovative Grant
    • No Sub-area for Basic Plus Innovative
    • Basic: Housing in both sub-areas
  • Site Visits
  • ATP and Special Income Limits available June 2009
  • Summary Table for Income and Need Survey must be included with surveys.
application process3
Application Process
    • IDIS & other data forms (Public Information, Budget, Benefit)

packaged as “Data Attachment” (See Table of Contents)

  • Certifications Regarding Debarment, Suspension and Other Responsibility Matters
  • Project Description
    • PER requirements
    • Forms for Innovative activities
    • Neighborhood Plan
application process continued
Application Process continued…
  • Local Commitment
    • 10% contingency for innovative activities
  • National Objective-Benefit to LMI
    • Persons removed from benefit form
  • Basic Local Option
    • Housing & housing related only activities
technical assistance
Technical Assistance

Iris C. Payne

E-mail address: ipayne@nccommerce.com

Phone: (919) 733-2853, Ext. 225

Website: www.nccommerce.com/cdbg

program requirements for applicants and grantees
Program Requirements for Applicants and Grantees
  • Grant conformance with the application and category once awarded
  • Citizen Participation
  • Costs associated with CDBG application
  • Financial Design-Attachment
  • Compliance Contact-Brande Roberts
        • Equal Opportunity
        • Fair Housing
        • Local Economic Benefit-Section 3
        • Environmental Review
        • Section 504 Plan
        • Labor Standards
rehabilitation 2009
Rehabilitation 2009

What kind of inspections have you been doing for your rehab units?

rehabilitation in 2009
Rehabilitation in 2009
  • What’s New?
    • Inspection of unit on new form and work write up submitted with application.

Remember this is State law!

Will generate a better rehabilitation outcome through a better work write-up!

Up front time in the inspection process helps identify worst case houses!

lead based paint
Lead Based Paint
  • HUD Requirement.
  • Increases cost of rehabilitation.
  • Health Concern
  • Potential law suits for failure to act.

L.Lead-Based Paint Requirements

  • Lead-Based Paint Regulations are found at 24 CFR Part 35.
  • All CDBG grantees awarded funds to rehabilitate any houses
  • constructed prior to 1978 are required to follow the regulations.
  • Lead-based paint required activities depend on the lower per unit cost
  • of either (1) the amount of rehabilitation “hard costs” per unit or
  • (2) the amount of federal assistance per unit when there are other
  • federal funds in the unit. “Hard costs” do not include such costs
  • as administrative costs, relocation costs, environmental reviews,
  • acquisition of the property, or the costs of lead hazard evaluation and reduction.
  • DCA Requirements
  • All units must have a risk assessment and paint inspection by a certified risk assessor;
  • All units must be cleared by a certified inspector or risk assessor who must be a third party entity;
  • Local governments must use contractors trained in Safe Work Practices;
  • Local governments that undertake temporary relocation must develop adopt
  • and follow an Optional Temporary Relocation Policy.
  • It is our policy when lead based paint is identified in a unit being rehabilitated,
  • the lead based paint be abated whenever possible.
  • Cost for abatement may be charged to the rehabilitation unit.
  • Contact Jim Liles for assistance with any questions on lead-based paint requirements.
  • E-mail address:
  • jliles@nccommerce.com
  • Telephone: 919/733-2850
  • Fax: 919/733-5262
program development and grants management team
Program Development and Grants Management Team

Vanessa A. Blanchard, Section Chief

Iris C. Payne, Senior Development Specialist

Ella Limehouse, Program Assistant

Joyce Smith, Senior Grant Representative

Dennis Branch, Senior Grant Representative

Stephanie Morris, Senior Grant Representative

Johnnie Quick, Grant Representative

Valerie D. Moore, Grant Representative

Terrietta Watkins, Program Assistant

Natasha Kirby, Program Assistant