CDBG-CHIP Beginning to Write Your Application

Mission and Vision Statement Vision—every Georgia community offers a quality of life where people and businesses can grow and prosper Mission—partnering with communities to help create a climate of success for Georgia’s families and businesses

Our Mission in the Next 15 Minutes Vision—Prepare a competitive CDBG/CHIP Application Mission-- Talk about the fundamentals of application preparation and about DCA expectations

Typical Activities ▪Water lines, sewer lines, lift stations, wells, pumps, drainage pipe, drainage structures, road paving, ROW, ditching, drainage inlets, deferred payment loans, buildings, equipment loans, elevated tanks, etc.

Sources of Ideas for Project Development Local Comprehensive Plan Citizen Complaints Previous Engineering Studies Professional Standards City Staff/RDC Staff/Consultant Staff Other

Some Things to Think About Strategy ▪What are the community development needs and have they been clearly defined? ▪What are the possible alternatives for addressing those needs, i.e., have you done any brainstorming? ▪Have you systematically evaluated the alternatives using cost as one criteria? ▪Is the alternative chosen eligible for funding?

Some Things to Think About Impact ▪How much of the identified need will be eliminated? ▪How many people are benefiting? ▪Is the cost per person reasonable? ▪What is the extent of benefit to L/M income persons? ▪Is quality of life improved?

Some Things to Think About Feasibility ▪Can the project be accomplished on time and within budget? ▪Are the funding sources available now? ▪Is the project ready to go? ▪Is the project “blueprint” specific enough that another knowledgeable person could carry it out?

To be funded… You will have to discuss and document all of the items on the last three slides and more…

Basic Limitations Activities and projects are eligible for funding only to the extent: Local governments are applicants (sub- recipients may implement) They are eligible according to law and regulation They primarily benefit low- and moderate-income persons or remove slum and blight.

This leave a lot of flexibility… We at DCA encourage you to use it.

Let’s Look at L/M Benefit For CDBG, the law requires that overall benefit to L/M persons be at least 70%. For CHIP, the law requires 100% benefit to L/M persons.

CDBG L/M Area Benefit For projects that will benefit a geographic area— target area or city-wide or county-wide area— each activity (e.g., water improvements) must benefit at least 70% L/M persons and each geographic area chosen must contain a population of at least 70% L/M persons.

CDBG L/M Area Benefit As a practical matter, draw your area boundaries correctly and these issues will usually take care of themselves. ▪The boundaries proposed (and therefore the area where income surveys must be done) must include the entire area of benefit.

Area of Non-benefit CDBG L/M Area Benefit Area Boundary Water Improvement Area of Benefit & TA Population of at least 70% L/M

CDBG L/M Clientele Benefit CDBG provides a “place” for L/M persons to receive a benefit ▪e.g., health center, senior center, etc. 70% of recipients of benefit must be L/M income persons; or HUD must assume 100% of the recipients of the service are L/M persons

CDBG L/M Housing Benefit 100% Benefit to L/M Households

CDBG L/M Jobs Benefit For Economic Development Projects ▪51% of jobs must be held or made available to L/M persons

CHIP L/M Benefit 100% Benefit to L/M Households

CDBG Ineligible Activities Acquisition of furnishings Acquisition of movable equipment, machinery Land write ‑ downs Operating and maintenance expenses Buildings for the conduct of general local government Direct grant assistance to a for-profit business Cost of furnishings and personal property Generally, construction of new housing For further information see the Applicants’ Manual

CHIP Eligible Activities Homeowner Rehabilitation Homeowner Reconstruction Homebuyer Activities ▪Acquisition ▪Acquisition/rehabilitation ▪New Construction Rental Housing

Let’s Recap CD is $ invested to improve the quality of life Proposed activities must be grouped together in a meaningful way Many sources for ideas for projects Address all strategy, impact and feasibility issues Projects must address the needs of L/M persons or households Lots of eligible activities/some activities are ineligible Submit completed applications on time

Submit Your Application By the Deadline April 1, 2008 Approximately $30 MM Available for CDBG Approximately $3 to 4 MM Available for CHIP Approximately $1.2 MM available for CHIP Set- Aside