Andy Papen Community Development Block Grant Program

National Disaster Resilience Competition - NDRC Approximately $1 billion from Public Law –U.S. Department of Housing and Urban Development (HUD) –Supplemental Community Development Block Grant Disaster Recovery funding –Upon approval by HUD, State will award grant to St. Louis County Service providers will apply to St. Louis County

CDBG/NDRC funds Federal funds (HUD) passed through the state (DED) HUD will obligate funds to the State –Each obligation has 2 year expenditure requirement (waiver requested on this) –May be more than one obligation

CDBG National Objectives All projects must meet one of three mandated national objectives: –Low and moderate income benefit (LMI) Area benefit (at least 51% LMI) Housing (100% LMI) Job creation (at least 51% LMI) Limited clientele (at least 51% LMI) –Slum/blight removal –Urgent threat to health and safety

LMI benefit Low and moderate income (LMI) –Family income at or below 80% of the county median household income –Threshold are by family size (1-8 persons)

2015 LMI Thresholds – St. Louis County 1 person family – $39,400 2 person family – $45,000 3 person family – $50,650 4 person family – $56,250 5 person family – $60,750 6 person family – $65,250 7 person family – $69,750 8 person family – $74,250

LMI Area Benefit Used when project serves an area that is at least 51% LMI –Can be determined using HUD LMI data Census tract/block group Contiguous tracts/block groups –Could also be proven via income survey of area

LMI Housing Benefit 100% LMI benefit Housing rehab program –Can only address houses owned or rented by LMI persons/families Homebuyer assistance –Can only assist LMI persons/families

LMI Jobs Benefit Business assistance resulting in job creation Minimum 51% of persons hired must be LMI Use income PRIOR to being hired by CDBG assisted company

LMI – Limited Clientele LMI based on “actual users” of project/program Example – certain training programs not tied to job creation –Minimum 51% of the persons receiving the training must be LMI

Eligible Activities Missouri NDRC application: –Economic Revitalization Business lending Business support Training Center of Innovation facility –Housing Housing rehabilitation Homebuyer assistance

Eligible Activities & Amounts NDRC application budget has budgeted amounts for each eligible activity We based those budgeted amounts on an average cost. You are not restricted by our average cost in your proposals –Cannot exceed HUD maximums

Application Process State NDRC Team (State, County, and local partners) will take applications at specified time. Team will evaluate all applications and approve awards. Awards to NFP providers will come from the County.

Environmental Review (ER) –Acquisition and Construction/rehabilitation work, regardless of funding source, cannot commence prior to completion of CDBG environmental review. –ER completed by local government grantee (St. Louis County) –Planning and (likely) training activities are exempt. Basic CDBG Requirements

Basic CDBG Requirements (continued) Procurement/contracting –All contracted services must be procured (bid) in a manner that meets minimum CDBG requirements. –All procured services require a contract Must include all CDBG provisions

Basic CDBG Requirements (continued) Prevailing wage (Davis Bacon and state prevailing wage) –Applies for all public construction work funded by CDBG –Also will apply to private businesses using CDBG loan funds for construction. –Applies to contracts for housing rehab for 8 or more units.

Basic CDBG Requirements (continued) Acquisition –Regardless of funding source (CDBG, other public funds, private funds), if CDBG is involved in project, Uniform Relocation Act provisions apply.

Basic CDBG Requirements (continued) Financial Management –St. Louis County is the State’s “grantee” Funds flow from HUD to State to County to NFP. NFP must keep documentation on: –All costs, including staff costs –Contracts –Contractor pay requests

Final Thoughts… Nonprofits submitting applications: –You do not have to be a CDBG expert to submit! –However, consulting with someone with CDBG experience will make your application stronger……