1. Harris County Community and Economic Development Department Community Development Block Grant (CDBG) – Public Services Workshop February 22, 2006

2. Agenda  Overview of HCCEDD  Overview of CDBG – Public Services  National Objectives  Eligible Activities  Recordkeeping & Monitoring  Questions & Wrap-up

3. Resources Available HUD Entitlement Funds, PY2006 Harris County will receive $15,004,622 for Program Year 2006.

4. Service Area

5. Unincorporated Harris County and its 15 cooperative cities. Unincorporated Harris County and its 15 cooperative cities. BellaireSeabrook Deer Park Shoreacres Galena Park South Houston Humble Tomball Jacinto City Waller Katy Webster LaPorte West University Place Morgan’s Point Houston, Baytown and Pasadena receive their own community development funds and are not included in the Harris County service area.

6. How it Works

7. The Consolidated Plan The Consolidated Plan  Five-year plan that addresses:  Housing;  Social services;  Infrastructure; and  Community revitalization needs.  Specifies types of projects to be funded  Application for federal funds under HUD’s formula grant programs:  CDBG;  HOME / ADDI; and  ESG.  Basis for assessing performance

8. The Consolidated Plan aids decision makers in creating strategies to address the following:  Employment and employability;  Affordable housing;  Adequate streets;  Water, sewage and drainage systems;  Quality education and Workforce Development;  Parks and green space;  Community facilities;  Quality health care;  Crime awareness and public safety; and  Safe, peaceful and productive neighborhoods for low- and moderate-income communities.

9. Request for Proposals (RFP)  Solicitation and acceptance of proposals  According to federal and state procurement laws and standards  Applicants must:  Be a non-profit organization or governmental agency or entity;  Expend funds within a 12-month period;  Have sufficient working capital;  Meet one Consolidated Plan Objective;  Meet one National Objective;  Benefit eligible residents in CEDD’s HUD Service Area.  Used to address objectives identified in Harris County’s Consolidated Plan

10. Annual Action Plan (AAP)  Detailed description of the allocations of Harris County HUD entitlement dollars (CDBG, HOME, and ESG).  Discusses how resources generated by tax dollars will be utilized for the upcoming program year.

11. Agencies Receive Allocations  Contracts are developed between Harris County and agencies.  Funds are dispersed on a reimbursement basis.  Grants Management staff monitors all projects.

12. Consolidated Annual Performance & Evaluation Report (CAPER)  Describes progress.  Reports on and reviews county’s use of Entitlement funds.  Benchmark for projects to be funded.  Allows for self- assessment.

13. Community Development Block Grant Public Services

14. CDBG Overview Local governments participate in either of these two programs.  Entitlement Program  Cities >50,000 in population  Urban counties >200,000  States and Small Cities Program  Cities <50,000  States <50,000

15. CDBG Overview Participating local governments receive annual allocations of CDBG funds. Amounts are determined by the higher of two formulas: Participating local governments receive annual allocations of CDBG funds. Amounts are determined by the higher of two formulas:  Data based on overcrowded housing, population, and poverty; OR  Data based on age of housing, population growth lag, and poverty. The regulations implementing the CDBG Program are found at 24 CFR Part 570.

16. CDBG Overview The Primary Objective of the CDBG Program is: The development of viable urban communities through the provision of the following, principally for low- and moderate-income (LMI) persons: decent housing, a suitable living environment, and economic opportunity.

17. CDBG Overview Median Family Income (MFI) in the Harris County area is $61,000 for a family of four. * Source: U.S. Department of Housing and Urban Development, January 23, 2006.

18. Service Delivery Entities that can carry out a CDBG-funded public service include:  The Grantee (CEDD)  Other governmental entities (ex: A municipality or a County Department)  Private or public non-profit organizations

19. National Objectives Each eligible activity must meet one of three national objectives:  Aid in the prevention of slum and blight  Urgent Need  Benefit to low and moderate income persons

20. National Objectives Aid in the Prevention of Slums and Blight Activities must either:  Eliminate slum and blight on an area basis;  Eliminate slum and blight on a spot basis; or  Be in an urban renewal area.

21. National Objectives Aid in the Prevention of Slums and Blight Activities may qualify if:  The area meets the definition of slum, blighted, deteriorated, or deteriorating area under state or local law;  Substantial number of buildings or public improvements are in a state of deterioration;  Documentation is maintained regarding boundaries and condition which qualified the area; and  Activities address one or more of the conditions which contributed to the deterioration.

22. National Objectives Urgent Need Alleviates emergency conditions.  Existing conditions pose a serious and immediate threat to health or welfare;  Existing conditions occurred within past 18 months;  Recipient is unable to finance the activity on its own; and  Other sources of funding are not available.

23. National Objectives Benefit to Low- and Moderate-Income Persons  Area Benefit  Limited Clientele  Housing Activities  Job creation/retention

24. National Objectives Benefit to Low- and Moderate-Income Persons Area Benefit  Activity must Benefit all residents in an area where at least 51% of the residents are LMI  The service area must be clearly delineated by the grantee and must be primarily residential Examples:  Water and Sewer Projects;  Libraries;  Neighborhood and Community Centers;  Parks, Streets and Sidewalks. * *Primarily CDBG General projects *Primarily CDBG General projects

25. National Objectives Benefit to Low- and Moderate-Income Persons Area Benefit - Records to Maintain  Boundaries of the service area;  Documentation that the area is primarily residential (e.g., zoning map, land use map); and  Income characteristics of households in the service area (e.g., census data)

26. National Objectives Benefit to Low- and Moderate-Income Persons Limited Clientele The organization must:  Be of a nature and location that it can be concluded that primary clients are LMI; or  Require documentation on family size and income to show that at least 51% of the clientele are LMI; and  Have income-eligibility requirements.

27. National Objectives Benefit to Low- and Moderate-Income Persons Limited Clientele (Cont.)  Serve a group primarily presumed to be LMI  Abused children  Battered spouses  Elderly persons  Severely disabled persons  Homeless persons  Illiterate adults  Persons living with AIDS  Migrant farm workers Examples of Limited Clientele Projects include: Facilities for Senior Services; Homelessness Services; and Domestic Violence Programs. Examples of Limited Clientele Projects include: Facilities for Senior Services; Homelessness Services; and Domestic Violence Programs.

28. National Objectives Benefit to Low- and Moderate-Income Persons Housing Activities Housing Activities Provide or improve permanent residential structures to be occupied by LMI persons. Note: At least 51% must be LMI occupied, if the structure contains more than one unit.

29. National Objectives Benefit to Low- and Moderate-Income Persons Job creation or retention Job creation or retention Creation or retention of permanent jobs, at least 51% to be made available to or held by LMI persons.

30. Eligible Activities The following activity types are eligible under the CDBG program:  Housing  Public Facilities and Improvements  Public Services  Economic Development  Other

31. Eligible Public Service Activities  Child care  Health care  Job training  Recreation programs  Education programs  Public safety services  Fair housing activities  Services for homeless persons  Drug abuse counseling and treatment  Energy conservation  Youth development  Services for Seniors

32. Level of Service CDBG Public Service activities must: CDBG Public Service activities must:  Provide a new service; or  Demonstrate a quantifiable increase in the level of service provided by the organization in the 12 months. Activities that do not fall into one of the above categories will be considered ineligible.

33. Ineligible Public Service Activities  Income payments  Political activities  Religious activities  Activities where beneficiaries (persons) are not residents of the Harris County service area

34. Public Services Cap Community Development Block Grant (CDBG) Total allocation for PY2006: $10,985,813

35. Public Services Cap  Public Service Funds are capped at 15% of the annual CDBG Allocation.  Certain project activities may be funded through another funding stream or another CDBG category.

36. Public Service Cap  Example: Removing graffiti from public buildings is a public service. However, assisting private properties with the graffiti removal may be better categorized as a property rehabilitation activity under General CDBG funding activities, which is not subject to the 15% cap.  Example: Services for homeless individuals is an eligible public service activity. However, Emergency Shelter Grant (ESG) funds have similar regulatory guidelines for short-term assistance to the homeless.

37. Recordkeeping & Monitoring Overview  General recordkeeping requirements  Access to records  Retention of records  Monitoring  Reporting requirements

38. General Recordkeeping Requirements Records should be accurate, complete, and orderly. Records should be maintained in order to:  Document all CDBG funded activities (24 CFR Part 570.208 particularly 570.506 (b) (1)-(11)); and  Demonstrate compliance with all applicable program and other requirements (24 CFR Part 570).

39. General Recordkeeping Requirements Establish and maintain Establish and maintain  Administrative records  Financial Records, and  Project/case files.

40. Access to Records Records are used to create audits, examinations, excerpts and transcripts. The following have access to records of CDBG funded organizations: Records are used to create audits, examinations, excerpts and transcripts. The following have access to records of CDBG funded organizations:  CEDD representatives;  HUD representatives;  Comptroller General’s Office of the United States;  Other authorized governmental agencies;  Citizens (24 CFR 570.508).

41. Retention of Records  Retain records for periods of time after annual project activities have been completed.  Retain records for five years from the date of submission of the CAPER in which activity is reported for the last time. For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, and OMB Circular A-110, Attachment C) For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, and OMB Circular A-110, Attachment C)

42. Monitoring The primary mission of monitoring is to ensure that organizations are:  In compliance with all regulations governing their administrative, financial, and programmatic operations; and  Achieving their performance objectives within the schedule and budget, as outlined in the Agreement.

43. Monitoring Five steps in a monitoring visit  Notification letter  Entrance conference  Documentation, data acquisition and analysis  Exit conference  Monitoring letter

44. Reporting Requirements  Reporting requirements are specified by the Grantee (CEDD) in the Subrecipient Agreement (24 CFR 570.503(b)(2).  Programmatic and Four (4) Financial Reimbursement Request Reports are due monthly.  Quarterly and Annual reports may also apply.

45. Questions And Answers

46. Questions? Contact: Shanna LeBrum Senior Program Analyst (713) 578-2000, ext. (2051) shanna_lebrum@hctx.net Or visit our website at: www.cedd.hctx.net