Community Development Block Grant Application Submittal Hearing Prepared by JoAnn Melgar June 2009

Introduction - CDBG Established by the federal Housing and Community Development Act of 1974 State Department of Housing and Community Development (HCD) assigned CDBG responsibility in Incorporated cities under 50,000 in population and counties with an unincorporated area population of under 200,000 are eligible to participate

Primary Program Objective The development of viable communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for persons of low and moderate income.

National Objectives Benefit low and moderate income persons (HCD uses the term Targeted Income Group or TIG) Prevent or eliminate slums or blight Meet other community development needs that pose a serious and immediate threat to the health and welfare of the community

Range of Eligible Activities/Programs Housing rehabilitation New housing construction in certain specific cases Housing acquisition Public works Community facilities New public services Economic development

Targeted Income Group (TIG) At least 51% of persons and households benefited must have annual incomes of less than 80% of the area median income. 2 methods to establish TIG: a) HUD’s low/mod income data OR b) income survey

2009 Income Limits for Napa County Household Size 80% Limit 1$44,800 2 $51,200 3$57,600 4$64,000 5$69,100 6$74,250 7$79,350 8$84,500

100% Presumed TIG Benefit Abused children Battered spouses Seniors*** Severely disabled Homeless persons Illiterate adults Persons living with AIDS Migrant farm workers *** 51% TIG presumed

How It Works HUD distributes funds to HCD HCD issues NOFA Local groups submit proposals to County County submits applications to HCD After BOS approval

3 Grant Program Allocations Economic Planning General General Allocation Economic Development Planning and Technical Assistance

2009 Funds Available General Allocation – Up to $15 million total - $800,000 per jurisdiction $400,000 per eligible program Housing combo program up to $600,000 One or two projects up to $800,000 total Program and project up to $800,000 within above limits Two programs up to $800,000 within above limits

General Allocation Housing, community, and economic development projects serving lower-income households in small, typically rural communities Competitively awarded based on point system Requires commitment of additional (non- federal and State) funding

Economic Development California Community Economic Enterprise Fund Grants may be used for: Business Assistance Loans Microenterprise Technical Assistance and Loans

Economic Development Over the Counter (OTC) Grants may be used for: Making loans to employers for an identified CDBG-eligible activity, which will result in the creation or retention of permanent jobs Construction of infrastructure improvements, which are necessary to accommodate the creation, expansion or retention of a business that will create or retain jobs

Planning & Technical Assistance Grants Grants may be used for: Local planning and feasibility studies related to any CDBG-eligible activity May be used for either project-specific activities or non-project specific activities Grant funds must be used for non- implementation/pre-development costs Required cash match is 5%

Citizen Involvement in CDBG Process Public Hearings: Before Getting a CDBG Grant During the term of a CDBG contract At the end of the CDBG contract term Written Comments: The County welcomes your input on the types of projects that should be pursued Public Information File: Available for your review during normal business hours

Next Steps TIG Requirement Prepare your proposal BOS Selects Application(s) To Submit to HCD HCD Awards Money County administers funding and monitors project Enter into Sub-recipient Agreement

Technical Assistance It is the responsibility of grantees (the County) to: provide up front and ongoing training and technical assistance to subrecipients provide sufficient technical detail necessary for subrecipients to understand and implement program

Important Points The project/study must be started and completed within the term of the grant contract – 24 or 36 months Matching funds/Leverage – obligation of subrecipient Preparing application – consultant will prepare Must obtain special conditions and environmental clearance before starting project or program Administration/Implementation of CDBG-funded activities - obligation of subrecipient For housing rehabilitation, first-time homebuyer assistance, and housing new construction activities, the applicant must obtain 100 percent TIG benefit

Contact Information For more information regarding CDBG programs please contact: JoAnn Melgar Napa County Community & Intergovernmental Affairs Division