Presentation on theme: "CITIZEN PARTICIPATION PLAN"— Presentation transcript:
1CITIZEN PARTICIPATION PLAN Sets forth the policies and procedures to be used for citizen participation
2MUST PROVIDE AND ENCOURAGE CITIZEN PARTICIPATION During the development of the consolidated planRegarding substantial amendmentsTo review performance reports
3CON PLAN DEVELOPMENTDescribe how & when citizens will be informed of:
4CON PLAN DEVELOPMENT Amount of assistance expected to be received Range of activitiesPlans to minimize displacement (even if no displacement is expected)
5CON PLAN DEVELOPMENTHow citizens will be given opportunity to examine proposed Con Plan -including where copies may be examined and obtained
6CON PLAN DEVELOPMENTAt least one public hearing during the development processDescription of how notice of that hearing will be provided
7CON PLAN DEVELOPMENT Public comment period Not less than 30 days, prior to adopting the final consolidated plan
8CON PLAN DEVELOPMENT Comments: Written or orally at public hearing will be consideredSummary of comments attached to final con plan
9AMENDMENTSSpecify criteria to be used to determine what constitutes a substantial amendmentHow citizens will be given opportunity to comment with comment period and summary
10PERFORMANCE REPORTS Reasonable notice for review and comment Comment period prior to submission is not less than 15 days
11PUBLIC HEARINGS Citizen participation plan must: State how / when notice is givenDescribe how needs of non-English speaking will be met
12PUBLIC HEARINGS Citizen participation plan must: Provide hearings at convenient times and locations, with accommodations for persons with disabilities AND describe how this will be done
13MEETINGS AND RECORD AVAILABILITY / ACCESS Citizen participation plan must provide reasonable and timely access to local meetingsConsolidated Plans, substantial amendments, and performance reports must be available to public
14TECHNICAL ASSISTANCE Citizen participation plan must describe how technicalassistance will be provided toappropriate groups thatrequest assistance to developproposals
15COMPLAINTS Written description of how complaints regarding: Consolidated plansSubstantial amendmentsPerformance reports
16CONSULTATION Private Public Agencies Agencies Advocates of Govt. Depts.Health Dept.Public HousingCommunity ActionPrivateAgenciesAdvocates ofspecial needsSenior citizenorganizationsFaith-Based
1724 CFR 91 US Department of Housing & Urban Development – Office of CommunityPlanning &Development24 CFR 91 - The consolidated Plan guidelines have evolved, primarily from statutory requirements regarding the Compreehnsive Housing Affordaibility Strategy.Give the variety of HUD entitlement funding programs and particularly the flexibility of CDBG, the Consolidated Plan guidelines attempt to incorporate a community’s housing and non-housing needs into one comprehensive document. Since the last five year plan, HUD is also hoping that each community will incorporate more information on non-CPD resources into the document.While the One Year Action Plan serves as the annual application for funding, the Consolidated Plan serves as the overall application document as well as a resource to identify what particular needs of each community will be addressed by the funds.At this point, I would like to stress that although the regulations specify required elements of the plan, its actual structure and presentation are also up to the local community. If at all possible, the Plan should be easily understandable to anyone from the community, linking information on community needs to existing resources and proposed programs. Although there might be repetition across the different requirements listed, that does NOT mean there has to be the same repetition in the document itself.
18Consolidated Plan & Strategy A planning document which builds on a participatory process at the lowest levels…an application for federal funds under HUD’s formula grant programs…a strategy to be followed in carrying out HUD programs…and an action plan that provides a basis for assessing performance
19Identify g a p s between resources and needs Identify communityconditions and needsIdentify existing$ $ $ resources $ $ $Identify g a p s between resources and needsAlthough there are many specific requirements for the content of the plan, the entire document can characterized as having four elements:1) a community-wide profile and needs assessment2) a directory of existing resources and activities to address these needs3) explanation of the gaps left after these resources have been applied4) a prioritization of these needs - a local determination of which of the different eligible activities are most vital to the viability of the community as a whole and to lower income neighborhoods in particular.Identifylocal prioritiesfor CPD Funding
20P R O C E S S C O N T E N T Consultation with service organizations Consultation with government agenciesParticipation of residents of lower income neighborhoodsC O N T E N TAs I mentioned earlier, the Consolidated Plan regulations have specific requirements for both the process and content.Again, in terms of consultation and citizen participation, HUD makes no minimum requirements of activities, but will assess whether activities have represent reasonable efforts to meet the objectives of each requirement.Given the large number of requirements, it is easy to see these as additional bureaucratic red tape. However, these requirements are included to increase the quality of the plan and help ensure the relevance of the plan to the community.Content - this presentation will focus primarily on the first three sections.
21CPS DEVELOPMENT AND REVIEW Local community consultation and citizen participation processPublic Hearing:Identification of Needs and PrioritiesMinimum 30-Day Public Comment Period on Proposed CPSAlthough HUD allows each community to design a Citizen Participation Process which whill work best in its community, there are some basic overall requirements for developing a Consolidated Plan.At minimum, each plan should be the product of consultation with local governments, service providers and residents of lower income neighborhoods.The proposed plan must be made available to the public and each grantee should provide reasonable opportunities for the public to comment on the plan, holding a public hearing for that purpose.Review and Action on Comments received on Proposed CPSSubmission of Final CPS and Public Comments to HUD 45 days before Start of Program Year
22CONSULTATION WITH SERVICE ORGANIZATIONS 24 CFR (a)Public and private organizations that provide assisted housing, health services, and social services for:childrenelderly personspersons with disabilitiespersons with HIV/AIDS and their familieshomeless personsThere are many different types of eligible activities, but in addition to consultation to local government, consultation process focuses on providers of housing, health and social services.In many instances, however, social services providers can also provide information on the need for facilities designed to meet the needs of the same populations.
23HOUSING AND HOMELESS NEEDS ASSESSMENT Analysis of housing needs by household type :Housing cost burdenOvercrowdingSubstandard housingAnalysis of housing needs of renters by income categoriesDetermination if 10% higher rate of any housing needs experienced by racial or ethnic group compared to entire populationOf course, these are the CHAS requirements.Again, easy to see this as an excercise in the generation of numbers for the sake of numbers. But like distribution of community development needs across activity type and geographic area in the Consolidated Plan overall, this section is designed to identify what populations and subpopulations have the greatest need so the grantee can design programs to meet the most pressing needs affecting the community.Instead of just focusing on these needs overall, however, the 2020 software allows the grantee to examine the distribution of the different housing needs by geographic area.
24HOUSING AND HOMELESS NEEDS ASSESSMENT Analysis of the nature and extent of homelessnessAnalysis of facility needs of homeless:Emergency SheltersTransitional SheltersPermanent Supportive HousingPermanent HousingAnalysis of supportive service needs of homelessEstimated homeless subpopulationsA gap analysis is specifically required in the homeless section, but also serves as a useful model for all the different community development needs.
25HOUSING MARKET ANALYSIS Supply, demand, condition and cost of housing stock with detail on housing available for persons with disabilities, persons with HIV/AIDS, lower income areas and areas of minority concentrationNumber and condition of public and assisted housing, targeting of units, and whether assisted units are expected to be lostInventory of facilities and services for the homeless and persons in need of supportive housingBarriers to affordable housing
26s t r a t e g i c p l a n public services INFRASTRUCTURE RENTER AND OWNER HOUSING NEEDSHomeless Facilities and ServicesPUBLIC FACILITIESpublic servicesINFRASTRUCTUREEconomic DevelopmentPLANNING AND OTHER NEEDS
27S T R A T E G I C D A T A public service agencies CENSUS, HMDA, REALTOR’S ASSOC.Homeless ProvidersPARKS & REC. DEP.public service agenciesPUBLIC WORKS / ENGINEERINGChamber of Commerce / ED Dept.PLANNING DEPT. / NBHD GROUPS
28priority levelsGrantees must identify general priority levels and projected funding levels for each of the eligible activities:High - Activity will be fundedMedium - Funded if monies availableLow - No funding, but letter of supportNo Need - No funding or letter
29required elements of the strategic plan GEOGRAPHIC DISTRIBUTION ACROSS PRIORITY NEEDSBASIS FOR ASSIGNING PRIORITY LEVELSOBSTACLES TO MEETING UNDERSERVED NEEDSUSE OF EXPECTED FUNDSMEASURES FOR PROPOSED ACCOMPLISHMENTS
30other consolidated plan requirements Reduction Plan for Lead-Based Paint HazardsPoverty Reduction and Affordable Housing StrategiesOrganizational Capacity and Coordination Assessment for Delivery of Community Development ActivitiesPublic - Private PartnershipsPublic Housing Resident Management and Homeownership Initiatives
31neighborhood revitalization strategy Residents, business owners, non-profits and community groups from a qualified, lower income residential area may seek HUD approval for a NRS after assessing economic needs and developing a revitalization and economic empowerment strategy for their area. Benefits of an NRS can include:Job Creation/Retention Qualified as Area Benefit ActivityAggregation of Assistance to Housing in AreaExemption of ED Public Benefit Standards for AreaExemption of Public Services in Area from 15% Cap
32ACTION PLAN ELEMENTS ACTIONS TO ADDRESS OBSTACLES TO: meeting underserved needs,foster and maintain affordable housing,remove barriers to affordable housing,evaluate and reduce lead-based paint hazards,reduce the number of poverty level families,develop institutional structure, andenhance coordination between public and private providersSTANDARD FORM 424;BUDGET AND RESOURCES:Federal resources.Other non-Federal public sourcesOther private resourcesProgram IncomeFloat FundsACTIVITIES TO BE UNDERTAKEN.GEOGRAPHIC DISTRIBUTIONHOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES.
35Notice 03-09: Performance Measures GOALS: Proposed solutions to problems identifiedPreserve existing housing stockINPUTS: Resources dedicated or consumed by the program/projectMoney, Staff, Contractors, EquipmentACTIVITIES: What the program does with the inputs to fulfill its missionScreen applicants, prepare specifications, underwrite loans, progress inspectionsOUTCOMES: Benefits that result from the programIncreased percent of housing units in standard conditionOUTPUTS: The direct products of projects/activities# of homeowners assisted, # of homes rehabilitated
36CONSOLIDATED PLAN WEBSITE www. hud CONSOLIDATED PLAN WEBSITE index.Links to Census and CHAS dataLinks to local housing costs and mapsLink to other local con plansDownload Guidelines and certificationsLink to the CPII site
37FAIR HOUSING PLANNING IN YOUR COMMUNITY Presenter: Pamela D.WalshDirector, Program Standards DivisionOffice of Fair Housing and Equal OpportunityMy presentation is entitled “Fair Housing Planning in Your Community.
38Fair Housing Planning in Your Community “Ensure Equal Opportunity and Access to Housing” means:-- Reducing Housing Discrimination-- Promote public awareness of fair housing laws-- Improving the accessibility of housing to persons with disabilitiesThis morning I plan to discuss Housing Planning, what it is and how it has been a crucial part of HUD’s goal to “Ensure Equal Opportunity and Access to Housing.” I’ll show how Fair Housing Planning is a comprehensive strategy for reducing housing discrimination. I’ll follow with a discussion on the objectives of Fair Housing Planning, what it takes to conduct and implement a complete Analysis of Impediments to Fair Housing Choice, and comply with the Certification to Affirmatively Further Fair Housing or AFFH.
39Fair Housing Planning in Your Community Fair Housing Planning - A Comprehensive Strategy to ”Ensure Equal Opportunity and Access to Housing”FH Planning contributes to “Ensure Equal Opportunity and Access to Housing”One of HUD’s strategic goals is to Ensure Equal Opportunity and Access to Housing. What do we mean to “Ensure Equal Opportunity and Access to Housing?” What does HUD hope to accomplish through this Goal and how is it accomplished? First and foremost, Ensure Equal Opportunity and Access to Housing means enforcement of the Fir Housing Act and other civil rights laws, conducting education and outreach on the FH Act, and working with housing partners to create housing opportunities for minority families and persons with disabilities.
40Fair Housing Planning in Your Community Fair Housing Planning is part of the Consolidated PlanSection 808 (e) (5) of the FH Act…“The Secretary shall administer the programs and activities relating to housing and urban development in a manner to affirmatively further the policies of the Act.”Fair Housing Planning is one of many methods that HUD uses to ensure equal opportunity and access to housing through HUD’s programs. It is a method of administering Section 808(e)(5) of the Fair Housing Act. It was initiated in 1995 as part of CPD’s Consolidated Planning process as a way of integrating fair housing into it.
41FAIR HOUSING PLANNING GUIDE More information is available in the Fair Housing Planning Guide, Volume I, that is available through the following website:Section 808(e)(5) of the Fair Housing Act requires the Secretary to administer HUD’s program and activities relating to housing and urban development in a manner affirmatively to further the policies of the Act. Under this provision HUD has issued a number of civil rights related program requirements, of which fair housing planning is one.You may get more information about Fair Housing Planning and means to affirmatively further fair housing in the Fair Housing Planning Guide available through the HUD’s website at
42FAIR HOUSING PLANNING IN YOUR COMMUNITY Objectives of Affirmatively Furthering Fair HousingEliminate housing discriminationPromote fair housing choiceProvide opportunity for racially and ethnically inclusive occupancy patternsPromote accessibility for persons with disabilitiesNow that you know the statutory basis of the requirement to affirmatively further fair housing through HUD programs, what does the Department want to achieve through it? First it wants to eliminate housing discrimination. Secondly, it wants to promote fair housing choice, i.e., the right of all persons regardless of race, color, religion, sex, national origin, familial status and disability to have the same housing choices and opportunities. Third, HUD wants to provide opportunities for minority families and persons with disabilities to live where they choose.
43Fair Housing Planning in Your Community What is Fair Housing Choice?The ability of persons regardless of race, color, religion, sex, disability, familial status or national origin to have available to them the same housing choices.What does the term “fair housing choice” mean? The Fair Housing Planning Guide, which is the source document on Fair Housing Planning, defines Fair Housing Choice as follows:The ability of persons regardless of race, color, religion, sex, disability, familial status or national origin to have available to them the same housing choices.
44Fair Housing Planning in Your Community - AFFH Certification Conducting an Analysis of Impediments to Fair Housing ChoiceTaking Actions to Address the Impediments Identified in the AIMaintaining Records; Sources: 24 CFR (a) [Localities]; (a)[States]; [Consortia].What do we mean by AFFH and what are the requirement to AFFH. The Consolidated Plan Regulations (24 CFR 91) contains a certification that requires all recipients to affirmatively further fair housing. This certification has been implemented since 1995 and under the certification all recipients must conduct an analysis of impediments to fair housing choice (AI), take actions to address the impediments identified in the AI and maintain records pertaining to the AI and its implementation.
45Fair Housing Planning in Your Community - What is an AI? Comprehensive Review of:Laws, Regulations and Administrative Procedures Affecting the:LocationAvailabilityAccessibility of HousingAssessment of Conditions Affecting Fair Housing ChoiceWhat is an Analysis of Impediments to Fair Housing Choice? The AI is a comprehensive review of laws, regulations and administrative procedures affecting the location, availability and accessibility of housing, as well as an assessment of conditions affecting fair housing choice for all persons.
46What Do We Mean By Impediments to Fair Housing Choice? Any actions, omissions or decisions taken because of race, color, religion, sex, national origin, disability or familial status that restrict housing choice or the availability of housing choice.(Source: Fair Housing Planning Guide, Volume 1, Page 2-17)-Of all the words in the title the word “Impediments” is the key word. The regulation requires you to identify impediments or barriers to fair housing choice. The Fair Housing Planning Guide defines an impediment as (Any Actions, omissions or decisions taken because of race, color, religion, sex, national origin, disability or familial status that RESTRICTS housing choice or the availability of housing choice.) Examples of impediments to fair housing choice include:
47Fair Housing Planning - Examples of Impediments Racial segregations/steeringLack of Affordable Housing/FinancingLack of support for facilities serving persons with disabilitiesLack of local fair housing enforcement, focus, or supportLack of financial support for fair housing enforcement and education and outreach activities
48Fair Housing Planning - Examples of Impediments Zoning barriers to affordable housingIntolerance toward minorities moving into non-minority neighborhoods. [NIMBYISM; Hate and Violence Crimes]
49Examples of Actions to Address Impediments Provide Cultural Sensitive training -- Ensure Safety of Families Moving to Non-traditional NeighborhoodsEnact/Enforce Substantially Equivalent LawsProvide Financial Support for Fair Housing EnforcementEqualize Conditions Between Minority/Non-minority Areas through HUD fundsThe second leg of the certification requires grantees to take actions to address the impediments identified in the analysis . Although the regulation does not explicitly require that the actions relate substantively to the impediments, HUD has during its technical assistance stressed the importance of having the affirmative steps relate directly to the impediments. For example, if a jurisdiction found that the lack of a substantially equivalent fair housing ordinance was an impediment, the appropriate action would be to enact such an ordinance. Some actions include:
50Fair Housing Planning Examples of Actions Promote homeownership through Housing CounselingRemove barriers to affordable housingConduct and promote fair housing testingConduct and promote fair housing education and outreach
51FAIR HOUSING PLANNING EXAMPLES OF ACTIONS, CONT. Translate crucial information into different languages to better serve the limited English proficient populationCreate a FH coordinator within your organization
52FAIR HOUSING PLANNING EXAMPLES OF ACTIONS, CONT. Partner with local Fair Housing Initiatives Program (FHIP) organizations and Fair Housing Assistance Program (FHAP) organizations
53Fair Housing Planning - Maintaining Records Supporting documentation should include:The AIActions undertaken to address any identified impedimentsRecords such as transcripts of public hearings and citizen commentsProgress reports on implementationThe third leg of the certification is the maintenance of records for public and HUD inspection. Examples include:
54FAIR HOUSING PLANNING - HUD’S ROLE Technical AssistanceReview of AI at many points in Consolidated Plan Life CycleAnnual Plan or Five-Year Consolidated PlanComprehensive Annual Performance and Evaluation ReportConsultation with Local/State OfficialsMonitoring VisitWhat is HUD’s role in FH Planning. HUD has since 1995 conducted intensive and extensive technical assistance to industry groups and recipients. HUD may review the AI at many points in the Consolidated Plan life cycle. For example:Annual Plan or Five-Year Consolidated PlanComprehensive Annual Performance and Evaluation ReportConsultation with Local/State OfficialsMonitoring Visit
55Fair Housing Planning – Recipients Evaluation The AIThe milestones and timetablesThe fair housing actions(Source: Fair Housing Planning Guide, Part 1, Page 2-24)FH Planning should be evaluated as a whole. HUD expects recipients to carry out effective FH actions over a long period of time. Therefore, recipients should be carefully evaluate the results of:The AIThe milestones and timetablesThe fair housing actionsWith this information, recipients will be in best possible position to evaluate their FH performance.
56Fair Housing Planning - HUD Evaluation SUBSTANTIALLY INCOMPLETEImpediments plainly inconsistent w/generally available facts and dataIncomplete where facts/data indicate the presence of an impediment not identified in the AI(Source: Fair Housing Planning Guide,Part 1, Page 2-24)The year-end review is most crucial, since HUD can request submission of the full AI and other documentation. What is an incomplete AI? The Fair Housing Planning Guide states two reasons for concluding that an AI was substantially incomplete (impediments plainly inconsistent with generally available facts and data; incomplete where facts/data indicate the presence of an impediment not identified in the AI).
57Fair Housing Planning - HUD Evaluation (Cont.) ACTIONS PLAINLY INAPPROPRIATE-- Examples:Fair housing poster contest addresses lending discriminationCitizen participation notices in English only when 25% of the population is limited English proficient(Source: Fair Housing Planning Guide,Part 1, Page 2-24)Inappropriate actions include:
58Fair Housing Planning - HUD Evaluation (Cont.) Provide notice and opportunity for commentWorking with the jurisdiction on actions to:make the AI completeovercome the effects of the identified impedimentsInclude a timetable for accomplishing the actionsHUD is required to provide notice and opportunity to comment on any findings connected with the AI. HUD also works with the jurisdiction on actions to make the AI complete or overcome the effects of impediments to fair housing choice, taking into the consideration the fact that, in many cases, the existence of the impediments to fair housing choice may in certain instances be beyond the control of the recipient.
59FAIR HOUSING PLANNING CONCLUSION Training and Technical AssistanceTarget date for new AIsToday’s presentation is a quick snapshot of FH Planning. FHEO has 44 local field offices. Please contact the one serving your jurisdiction and request additional training or technical assistance. Our FH partners, the FHIPs and FHAPs are also resources that you may use.As new recipients, you may not have completed an AI in FY However, you should note on your Consolidated Plan when the AI will be conducted and completed. For the FY 2005 funding cycle, HUD expects that you have completed an AI when you sign your certification to AFFH.
61Community Development Block Grant (CDBG) Program Eligible Activities
62“6 Steps” Determining Whether CDBG Can Assist an Activity
63Step OneIs the activity included within the list of eligible activities in the CDBG regulations?Reference: § –
64Step TwoIs the activity included in one of the categories of explicitly ineligible activities?Reference: §
65Step ThreeDoes the activity meet the criteria of at least one of the national objectives of the CDBG program?Reference: §
66Step FourEnsure that the grantee remains in compliance with its certification that at least 70% of its CDBG expenditures over a 1, 2, or 3 year period will be for activities benefiting low/mod-income persons.Reference: § (a) (3)
67Step FiveDo the proposed costs for the activity appear necessary and reasonable and would those costs conform to requirements of applicable OMB Circulars?Reference: § and Parts 84 & 85
68Step SixHave the environmental review and clearance procedures been completed for the project of which the activity is a part?Reference: 24 CFR Part 58
69ACQUISITION – (a)Includes air rights, water rights, rights of way, and easements.Purchase, long-term lease (at least 15 years), or donation.Carried out by the grantee or a public or private nonprofit organization.
70CLEARANCE – (d)Clearance, demolition, and removal of buildings and improvements.Physical removal and treatment of contaminants.Includes the movement of structures to other sites.
71REHABILITATION – 570.202 Types of buildings that may be assisted: . residential buildings. public or privately owned commercial or industrial buildings with limitations. non-profit owned, nonresidential buildings not public facilities. manufactured housing that is part of permanent housing stock.
72REHABILITATION – 570.202 Code Enforcement Pay Salaries of Enforcement PersonnelLegal enforcement proceedingsIn Deteriorated AreaMust arrest the decline
73DISPOSITION – (b)Real property acquired with CDBG may be disposed of by sale, lease, donation, or otherwise.Reasonable costs of temporarily managing the property are allowed.Proceeds are program income.
74PUBLIC FACILITIES & IMPROVEMENTS – 570.201(c) Acquisition, construction, reconstruction, rehabilitation, or installation. Examples:Day Care CentersLibrariesStreet ImprovementsImprovement of parks and playgrounds
75PUBLIC SERVICES – (e)Wide range of services, including but not limited to:EmploymentCrime preventionChild careHealthEducation
76PUBLIC SERVICES – cont.To qualify, an activity must be either a new service or a quantifiable increase in the level of an existing service.Funds expended cannot exceed 15% of the grant plus 15% of last year’s program income.
77HOMEOWNERSHIP ASSISTANCE –570.201(n) Pay 50% of the downpaymentAll reasonable closing costsPay the mortgage insurance premiumsubsidizing interest rates and mortgage principalFinance the cost of acquiring property already occupied by the householdLimited to low and moderate income households.
78ASSISTANCE TO MICROENTERPRISES – 570.201(o) A business with five or fewer employees, including the owner.Facilitate the establishment, stabilization, and expansion of microenterprises.Technical assistance, advice and business support services.General support services such as child care and transportation.
79Special Economic Development Activities Commercial or industrial buildings or improvements carried out by the grantee or nonprofit subrecipient.
80Special Economic Development Activities Con’t. Assistance to a for-profit business to carry out an economic development project.Related economic development services. Reference: §
81Public Benefit Standards Apply to activities individually and in the aggregate.Measured either based on jobs created/retained, or providing goods and services to low-mod residents of an area.
82New ConstructionNot generally eligible; allowed only in certain circumstances.Reference: § (b)(3)
83New ConstructionMost common - “Special Activities by Community-Based Development Organizations (CBDOs).”Reference: §Also allow various “support” activities.
84Planning Activities - §570.205 Eligible planning, urban environmental design and policy-planning-management-capacity building activities.
85Program Administrative Costs - §570.206 Program Administrative Costs –eligible costs include general management, oversight and coordination; public information; fair housing costs; administrative expenses to facilitate housing.
86Eligibility SummaryWide range of eligible activities, but there are limits. ( – )General Rule -- If it’s not part of a listed category, it’s not eligible.Some activities are explicitly ineligible. ( )
88NATIONAL OBJECTIVES 24 CFR §570.208 Where are the National Objective regs. found?24 CFR §111211
89Important Web SitesCode of Federal Regulations – CDBG 24 CFR 570CDBG Regulations –www.hud.gov/offices/cpd/ communitydevelopment/ rulesandregs/index.cfm
90Important Web SitesGuide to National Objectives and Eligible Activities for Entitlement Communities – communitydevelopment/ library/deskguid.cfm
91What are the three National Objectives? Principally benefit low/mod income personsPrevent or eliminate slums and blightMeet an urgent community development need having a particular urgency…
92Urgent Need…existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such need.
93Urgent NeedExisting conditions are recent or recently became urgent (within the last 18 months)
94INCOME LIMITSCDBG Moderate Income - Section 8 low income limits = at or below 80% of median income.CDBG Low Income - Section 8 very low income limits = at or below 50% of median income.CDBG Extremely Low Income - Section 8 extremely low income limits = at or below 30% of median income.
95FAMILYAll persons living together who are related by birth, marriage or adoption.
96HOUSEHOLDAll persons living together in a housing unit. This could be a single family, one person living alone, two or more families living together, or any other group of related or unrelated persons who share living arrangements.
97Located in a primarily residential area, and AREA BENEFIT – (a)(1)To qualify, the grantee must determine that the activity is:Available to all residents of the service area, where at least 51% are Low/ModLocated in a primarily residential area, andLocated in a defined service area
98DETERMINING SERVICE AREA AREA BENEFIT (cont.)DETERMINING SERVICE AREANature of the activityLocation of the activityAccessibilityAvailability of comparable activities
99AREA BENEFIT (cont.) EXCEPTION CRITERIA Grantee qualifies when fewer than one quarter of the block groups in its jurisdiction contains 51% or more low and moderate income persons.Referred to as the Upper Quartile exception criteria.
100LIMITED CLIENTELE – 570.208(a)(2) Limited clientele activities must meet one of four tests:1. Benefits a clientele who are generally presumed to be principally low and moderate income
101LIMITED CLIENTELE – 570.208(a)(2) abused childrenelderly personsbattered spouseshomeless personsilliterate adultsadults meeting the Census definition of severely disabledpersons with AIDSmigrant farm workers
102LIMITED CLIENTELE – cont. 2. 51% of participants are low and moderate income persons.3. Participation limited to low and moderate income persons.Nature and location indicate activities will primarily benefit low and moderate income persons.
103LIMITED CLIENTELE – cont. 5. Owners and persons developing microenterprises who are low and moderate income can qualify under this category for up to 3 years.
104HOUSING – (a)(3)To meet the low and moderate income housing national objective, the following apply:
105One-unit structure – occupied by low/mod income household Two-unit structure - 1 unit must be occupied by a low/mod income householdThree-plus-unit structure - 51% of units must be occupied by low/mod income households
106HOUSING (cont.)Rents in CDBG assisted housing units must be affordable to low and moderate income households. If not, the assisted units do not meet the low and moderate income housing national objective criteria.
107JOBS – (a)(4)In order to meet the low and moderate income National Objective under JOBS, activities must:
108JOBS – 570.208(a)(4) AND 1. Create or retain permanent jobs, 2. 51% of the jobs created/ retained must be made available to or held by low- and moderate- income personsJobs counted on full time equivalent (FTE) basis (using 40 hour week).
109Slums and Blight Slum or Blighted Areas Spot Blight Urban Renewal Completion
110Slum/Blight Area - §570.208(b)(1) Area must be designated by the grantee as a slum/blighted area andMeet a definition of slum, blight, deteriorated or deteriorating under State or local law, and
111Slum/Blight Area - §570.208(b)(1) Have a substantial number of buildings or public improvements in a state of deterioration.
112Slum/Blight Area - §570.208(b)(1) Maintain documentation on area boundaries and conditions which qualified the area at the time it was designated.Assisted activity must address one or more of the conditions which contributed to the areas’ deterioration.
113Slum/Blight Area - §570.208(b)(1) Residential rehab considered to meet this criterion if:Each building is considered substandard under local definition; andDeficiencies making building substandard are corrected before less critical work is done.
114Spot Blight - § (b)(2)Activities located outside a designated slum/blight area.Only certain activities can qualify.
115Spot Blight - § (b)(2)Building rehab is limited to extent necessary to eliminate specific conditions detrimental to public health and safety.
116Slum Blight/Urban Renewal - §570.208(b)(3) Activities must be in a Federal Urban Renewal (UR) or Neighborhood Development Program action areaActivities must be necessary to complete an Urban Renewal PlanNot commonly used
117SUBRECIPIENT DEFINED Reg. cite §570.500(c) Public or private nonprofit organization/ agency receiving CDBG funds from grantee for eligible activitiesPages in Book:Describe what a sub is and is not59
118SUBRECIPIENT DEFINED Cont. A for-profit agency assisting microenterprises may be a subrecipientInstitutions of higher learning may be subrecipientsPages in Book:Describe what a sub is and is not59
119SUBRECIPIENT DEFINED Cont. CBDOs not automatically subrecipientsContractors not subrecipientsPages in Book:Describe what a sub is and is not59
120SUBRECIPIENT AGREEMENTS Cont. What are the required elements of the subrecipient agreement?Pages in Book:Briefly go over content of agreement61
121SUBRECIPIENT AGREEMENTS Cont. Statement of work -work to be performed, scheduled, & a budget in sufficient detail to monitorRecords to be maintained and reports to be submittedPages in Book:Briefly go over content of agreement61
122SUBRECIPIENT AGREEMENTS Cont. Program income - what’s to be remitted back to recipient AND what may be revolvedUniform administrative & other federal requirements per § §570 Subpart KPages in Book:Briefly go over content of agreement61
123SUBRECIPIENT AGREEMENTS Cont. Suspension/termination & reversion of assetsPages in Book:Briefly go over content of agreement61
124CBDOs v. SUBRECIPIENTSA CBDO is not automatically a subrecipient; a grantee must decide how to treat the organizationPages in Book:Explain that:grantee has an option to make or not make the CBDO a subBenefit of not being a sub is release from those70
125CBDOs v. SUBRECIPIENTS Cont. Implications:Program incomeWritten agreement requirementsUniform administrative requirements, incl. reversion of assetsPages in Book:Explain that:grantee has an option to make or not make the CBDO a subBenefit of not being a sub is release from those70
153COMMUNICATING WITH IDIS ‘www.hud.gov/offices/cpd/ systems/idis/start/access/ firewall_ports.cfm
154‘www.hud.gov/offices/cpd/ systems/idis/start/index/ cfm USER IDsTwo User IDs required‘www.hud.gov/offices/cpd/ systems/idis/start/index/ cfm
155IDIS ASSISTANCE IDIS Technical Assistance Unit (800)273-2573 8 AM – 5 PM Eastern Time
156RECORD KEEPING WHY record keeping is important WHAT kinds of records need to be maintainedHOW can you best handle record keeping responsibilities
157HUD AND COMPLIANCEHUD must ensure grantees use CDBG funds in compliance with program rulesHUD determines whether grantees use CDBG funds in furtherance of their Consolidated Plan priority goals and objectives
158FIRST STEP TO COMPLIANCE First step to compliance is KNOWLEDGECompliance tests are “open book tests”Seek compliance direction in specific regulations
159WHY YOU NEED RECORDS First, to facilitate HUD monitoring (b)(3) – A recipient’s failure to maintain records in the prescribed manner may result in a finding that the recipient has failed to meet the applicable requirement to which the record pertains.
160WHY YOU NEED RECORDS Second, to keep local officials informed Local officials want to know what the community is getting out of the CDBG ProgramOutputs and Outcomes
161WHY YOU NEED RECORDSThird, to report to local citizens & stakeholders and HUD in the CAPERRecords are essential to show progress in meeting Consolidated Plan goals & objectives and in implementing your CDBG Program
162WHAT KINDS OF RECORDS? TEN Broad Categories of Records 1. Records showing progress in meeting Consolidated Plan priority goals and objectives2. Financial records
163WHAT KINDS OF RECORDS3. Records of CDBG accomplishments (outputs) – how many jobs, etc.4. Records on CDBG beneficiaries (incomes data on persons and households)
164WHAT KINDS OF RECORDS5. Additional records for Eligibility,National Objectives, and Overall Benefit6. Records of compliance with Environmental Review Requirements (24 CFR Part 58)
165WHAT KINDS OF RECORDS7. Records pertinent to flexibilities in regulations – neighborhood revitalization strategy areas8. Records of compliance with Other Federal Requirements (like equal opportunity rules)
166WHAT KINDS OF RECORDS9. Records of compliance with general responsibilities (like citizen participation rules)10. Records on OUTCOMES – benefit to community as a whole
167HOW TO DO THE JOB The first step to compliance is knowledge What specific records do grantees need to maintain?Where do grantees look?
168WHERE DO GRANTEES LOOK?CDBG regulations – section (“Records to be maintained”)Elsewhere in CDBG and Consolidated Plan regulations (requirement = records)
169WHERE DO GRANTEES LOOK?Your Consolidated Plan – what are your goals and objectives?Your Certifications – what did you commit to do? (for example, affirmatively further fair housing)
170WHERE DO GRANTEES LOOK?Reporting requirements ( and other direction)IDIS screensHUD Field Office – CPD Rep
171AFTER KNOWLEDGE, WHAT? Second step to compliance – TRAINING Third step to compliance – SYSTEMS & PROCEDURESRemember - you are not alone!
173GOVERNMENT WIDE REQUIREMENTS Financial management of the CDBG program is based on government wide requirements:Uniform administrative requirements (aka the “Common Rules”)OMB Circulars
174APPLICATION OF REQUIREMENTS TO ENTITLEMENT PROGRAM Government wide requirements are applied to CDBG entitlement recipients/subrecipients at 24 CFR § (but with lots of exceptions)
175CATEGORIES OF RECIPIENTS/ SUBRECIPIENTS Requirements vary according to nature of recipient/subrecipient:Governmental entitiesEducational institutionsOther private, non-profit entities
176Uniform Administrative Requirements Implemented in HUD title of CFR:States, Local Governments, and Indian Tribes (24 CFR Part 85)Institutions of Higher Education, Hospitals, and Other Non-profit Organizations (24 CFR Part 84)
177OMB Circulars Cost principles Audits A-87 (Recipients/subrecipients that are governmental entities)A-21 (subrecipients that are educational institutions)A-122 (non-governmental subrecipients)AuditsA-133 (Audits of States, Local Governments, and Non-Profit Organizations)
179Standards for Financial Management System Standards for recipients/subrecipients that are governmental entities are specified at 24 CFR §85.20Comparable standards for recipients/subrecipients that are private, non-profit organizations are specified at 24 CFR §84.21)
180Financial reporting –Accurate, current, and complete disclosure of the assisted activities
181(2) Accounting RecordsMust adequately identify the source and application of funds
182(3) Internal ControlEffective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets.
183(4) Budget Control Intended to maintain integrity of budget process Actual expenditures must be compared with budgeted amountsFinancial information must be related to performance or productivity data (when required by grant agreements)
184(5) Allowable Costs Three sets of cost principles: OMB Circular A-87 for recipients and subrecipients that are governmental entitiesOMB Circular A-21 for subrecipients that are educational institutionsOMB Circular A-122 for non-governmental subrecipients
185(6) Source Documentation Accounting records must be supported by source documents; examples are:Canceled checksPaid billsPayrollsTime and attendance recordsContracts
186(7) Cash ManagementProcedures to minimize the time elapsed between withdrawal of grant funds from the Federal Treasury and disbursement of those funds in payment of activity related costs
187PAYMENTPayment requirements for governmental entities are specified at 24 CFR §85.21Payment requirements for subrecipients that are not governmental entities are specified at 24 CFR §84.22
188PAYMENT (cont.) CDBG recipients are paid on an advance basis via IDIS Depositories – not required to be Federally insured (although a good idea)Separate bank accounts not requiredBank accounts for subrecipients required to be interest bearing (with certain exceptions)
189PROCUREMENTProcurement requirements for governments are at 24 CFR 85.36Procurement requirements for non-profits are at 24 CFR – 84.48
190PROCUREMENT (cont.) Procurement methods for governmental entities: Small Purchases (simplified acquisition procedures)Sealed Bids (formal advertising, use of IFB’s)Competitive Proposals (use of RFP’s)Non-competitive Proposals
191PROCUREMENT (cont.)Procurement methods for non-governmental entities less prescriptive“Section 3” requirements should be taken into account in procurement processCost plus percentage-of-cost pricing not allowed
193PROGRAM INCOME What is CDBG Program Income? Pages in Book: Discuss the examples of program incomeNote that program income is still subject to the CDBG requirements (it is not washed)42
194What is CDBG Program Income? Gross income received by a grantee or subgrantee that is directly generated, in whole or in part, by use of CDBG funds; examples are:Proceeds from sale or lease of property purchased/improved with CDBGProceeds from lease of equipment purchased with CDBGGross income from use/rental of real or personal property acquired, constructed, improved (less costs incidental to generation of income)Pages in Book:Discuss the examples of program incomeNote that program income is still subject to the CDBG requirements (it is not washed)42
195What is program income (cont.) Payments of principal & interest on CDBG loansProceeds from the sale of loans or obligations secured by loans made with CDBGInterest earned on program income pending its dispositionFunds collected through special assessments on properties not owned/occupied by LMI persons
196When isn’t it program income? PROGRAM INCOME cont.When isn’t it program income?Income in a single year not exceeding $25,000Income generated by some Section 108 activitiesProceeds of subrecipient fundraisingFunds collected through special assessmentSubrecipients’ proceeds from disposition of property five years or more after grant close-out.cont.Pages in Book:Just go over what does not count43
197When isn’t it program income? (cont.) Interest earned on grant advances - that must be remitted to the U.S. Treasury, including:interest earned from initial investment of a grant advanceinterest earned on activities later determined to be ineligible or not meet a national objectiveinterest earned on funds reimbursed to the program account before it has been used for an eligible activity.Pages in Book:Just go over what does not count43
198PROGRAM INCOME cont.In a CDBG revolving loan program, when does a subrecipient have to return program income to the grantee and when may it request additional CDBG funds from the grantee?1. Whenever the subrecipient agreement stipulates it or at the end of the on-going relationship with the recipient.2. Any program income on hand in a revolving fund must be substantially disbursed before additional cash withdrawals can be made for the same activity.Pages in Book:Just go over what does not count43
199RETURN OF PROGRAM INCOME Reg. cite § (b)(2)(iii)Under what circumstances and when must a grantee return program income to its CDBG line of credit?Excess must be returned to grantee’s line of creditAny program income amounts not in revolving funds in excess of 1/12 of the most recent grant must be remitted to HUD.Pages in Book:Note that this is not as bad as it seemsMoney is not lost it just goes to their line of creditThey simply lose the interest on that money -- Federal govt gets it insteadIf they are following rules about use of program income it will not be a problem in most years for most grantees44
200HOW TO CALCULATE EXCESS INCOME (1) Determine aggregate amount of program income held by grantee and subrecipients(2) Subtract immediate cash needs, revolving fund loan balances, lump sum drawdown balances, and cash used as security for Section 108(3) Anything in excess of 1/12 of recent entitlement must be remittedPages in Book:Walk through key components of the calculation noting that you will also do a sample calc to follow45
201SAMPLE CALCULATION Program income at end of PY: $450,000 Immediate cash needs $ 20,000Revolving loan fund balance $180,000Lump sum draw downCash held forAnnual CDBG entitlement: $1,920,000Amount to be remitted ?Balance retained:Pages in Book;Go through the calcIf time permits, do another calc where the grantee does not have a revolving loan fund.In that instance, $230,000 would be remainingSince this exceeds $160,000, they would need to remit $70,000 to line of credit ($230,000 - $160,000)46
202SAMPLE CALCULATION Program income: $450,000 Less: Immediate cash needs ($ 20,000)Revolving loan fund balance ($180,000)Lump sum draw down ($0)Cash held for _____($0)Balance: $ 250,000Annual CDBG entitlement: $1,920,0001/12 annual entitlement $ 160,000Amount to be remitted ($250,000-$160,000) $ ,000Amount retained: $160,000 + $200,000 = $ 360,000Pages in Book;Go through the calcIf time permits, do another calc where the grantee does not have a revolving loan fund.In that instance, $230,000 would be remainingSince this exceeds $160,000, they would need to remit $70,000 to line of credit ($230,000 - $160,000)46
203OMB Circular A-133 Audit Requirements Recipients/subrecipients expending $500,000 or more in a Program Year must have a single or program specific audit
205HOW THE CDBG FORMULA WORKS CDBG funds are allocated in accordance with Section 106(a)(3) of the Housing and Community Development Act of 1974, as amended, which provides that grants will be based on a formula approach.The formula(s) are “share” formula(s), meaning a grantee’s allocation will decrease or increase to the extent that its share of all metropolitan areas changes.
206HOW THE CDBG FORMULA WORKS Q: How many formulas does CDBG use to calculate the grant amount for each CDBG entitlement recipient?