2009 DCA CDBG/CHIP Applicants’ Workshop Introduction to CDBG/CHIP Boot Camp

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CDBG/CHIP Conference Overview Boot Camp ▪Intro to CDBG/CHIP Programs ▪Forms 1-13 Compliance Resource Tables Concurrent Sessions ▪CDBG/CHIP/CDBG ED (Advanced & Basic) One-On-One TA Last Day’s Topics

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Review of Binder and CD Binder includes: ▪Welcome/Agenda ▪Staff Contacts ▪Presentations ▪Handouts CD Includes ▪CDBG/CHIP Manuals, Appendices, Presentations

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Our Mission in the Next 15 Minutes Discuss the fundamentals of CDBG and CHIP as preparation for review of DCA forms 1 – 13 Why is this important? ▪In order to submit a competitive application

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Community Development Block Grant (CDBG) Title 1 of the Housing and Community Development Act of 1974, as amended, created the CDBG program

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Community Development Block Grant (CDBG) The primary objective of the HCDA is the development of viable communities through the improvement of living conditions and the expansion of economic opportunities in cities and counties, principally for persons of low- and moderate-income.

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Community HOME Investment Program (CHIP) HOME is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. Program regulations are at 24 CFR Part 92Title II of the Cranston-Gonzalez National Affordable Housing Act24 CFR Part 92 CHIP is one of the ways that Georgia uses HOME dollars to expand affordable housing

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Community HOME Investment Program (CHIP) HOME is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Definition of LMI Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by HUD. Unrelated individuals will be considered as one- person families for this purpose. ▪That is, those families at 80 percent of less of Area Median Income (AMI)

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CDBG & CHIP Target LMI People For CDBG, the law requires that overall benefit to L/M persons be at least 70% ▪LMA, LMC, LMH, LMJ For CHIP, the law requires 100% benefit to L/M persons

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Typical CDBG Activities Water lines, sewer lines, lift stations, wells, pumps, drainage pipe, drainage structures, road paving, drainage inlets, buildings, equipment loans, elevated tanks, homeowner and homebuyer activities, etc.

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CHIP Eligible Activities Homeowner Rehabilitation Homeowner Reconstruction Homebuyer Activities ▪Acquisition ▪Acquisition/rehabilitation ▪New Construction Rental Housing

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp 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.

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp 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

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Sources of Ideas for Project Development Local Comprehensive Plan Citizen Complaints Previous Engineering Studies Professional Standards City Staff/RDC Staff/Consultant Staff Other

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp 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? ▪Have you considered local funding?

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp 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?

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp 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?

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CDBG L/M Area Benefit (LMA) 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.

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp LMA (cont.) 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.

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Area of Non-benefit LMA (cont.) Area Boundary Water Improvement Area of Benefit & TA Population of at least 70% L/M

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CDBG L/M Clientele Benefit (LMC) 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

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CDBG L/M Housing Benefit (LMH) 100% Benefit to L/M Households

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CDBG L/M Jobs Benefit For Economic Development Projects ▪51% of jobs must be held or made available to L/M persons

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp CHIP L/M Benefit 100% Benefit to L/M Households

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp 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

Page CDBG/CHIP Applicants’ WorkshopIntro. to CDBG/CHIP Boot Camp Be sure and request technical assistance!