NCDA Region IV Conference CPD Policy Update

CDBG Funding in FY 13 $ 3.07 billion under Continuing Resolution = 4.48% increase from FY 2012 after sequestration + rescission Significant shifts in individual grant amounts as a result of moving from ACS data to ACS date for formula factors Interactive tool -allocations: (use Chrome browser) $16 billion supplemental disaster funding (CDBG-DR) for disasters in $6 billion awarded for Hurricane Sandy recovery, 2011 disasters, 2013 floods & tornados

FY 14 – Administration Budget CDBG: $ bil (- $300 mil from FY13); proposes minimum grant threshold & elimination of “grandfathered” communities starting in FY ‘19 HOME: $950 mil (- $50 mil) incl. ≤ $10 mil for SHOP Homeless Assistance programs: $2.3 bil (+ $400 mil) HOPWA: $332 mil (level funding) $200 mil for Neighborhood Stabilization Initiative $75 mil for Integrated Planning & Implementation Strategies

FY 14 – Outlook Temporary funding through January means HUD cannot calculate allocations until year-long funding is known House & Senate bills differed greatly (House $1.6 bil vs. Senate $3.2 bil) but neither fully passed 30 potential new Entitlement grantees for FY14 could also significantly affect allocation amounts

CDBG Issues – IDIS Training 25 Trainings planned from November thru June Two-day CDBG IDIS training - provides information on new Section 108 functionality, entering data into IDIS, using IDIS reports to effectively manage and administer CDBG, avoiding common mistakes. For more information/registration, go to: 5

CDBG Issues – IG Audit Formally issued October 31, 2011 “HUD did not adequately use its System (IDIS) to provide oversight of activities under the Block Grant program.” Unaware of how grantees used $67 million to fund more than 1,300 cancelled activities with draws Lacked oversight of almost $3 billion funding more than 20,000 long-standing open activities 6

CDBG Issues – IG Audit 11/27/12 IDIS changes flag activities with no drawdowns or accomplishment reporting for extended time periods; require grantee justification for cancelling activities with draws or revising draws to another activity Only 222 activities ($42 million) remain unresolved; those grantees will shortly receive a letter advising them to reimburse their program for amounts expended on those noncompliant activities Several hundred other activities require grantee to fix something in IDIS 7

CDBG Issues – Moving CDBG Forward TA and Program Outreach listening sessions to solicit feedback from grantees about CDBG - 9 topic areas Seeking input on ways to improve CDBG program, make it easier to administer and to improve grantee performance and accountability 9 in-person sessions + 10 interactive webinars held se/articles/ moving-cdbg-forward-technical- assistance-and-prog se/articles/ moving-cdbg-forward-technical- assistance-and-prog Provide input at: 39-moving-cdbg-forward moving-cdbg-forward- 8

CDBG Policy Guidance Issued Reporting Energy Star Units (CPD Notice ) Activity Delivery Costs vs. General Admin costs (CPD Notice ) Corrective Action for Violation of the Public Services and Planning and Administration Caps (5/16/13 memo) – over-obligations must be reimbursed Exchanging CDBG Funds by UGLGs in Urban Counties (5/13/13 memo)

CDBG Policy Under Development Closeout Instructions for NSP, CDBG-R, CDBG-DR, State CDBG grants. (Have you closed out your CDBG-R yet?) Notice regarding FY 14 Action Plan submissions: wait for final allocation amounts Technical Corrections rule – fix typos, outdated citations & cross-references, etc. Notice on CDBG for Code Enforcement AFFH Proposed Rule Published 7/19/13, comment period ended 9/17/13. HUD is compiling & analyzing comments.

Issuance of new LMISD LMISD = Low/moderate Income Summary Data Now derived from American Community Survey (ACS) We WILL get data at the Block Group level after all (except for split block groups) Pro’s & Con’s of generating New LMISD every year (it’s not necessarily a good thing) Reprogramming IDIS to accommodate multiple years’ data sets – won’t release new data until IDIS is ready Implementation timetable still under discussion