CDBG Stimulus Competition. Community Affairs

Transcription

1 CDBG Stimulus Competition The Georgia Department of The Georgia Department of Community Affairs

2 Background on Supplemental CDBG Stimulus Funds Supplemental Appropriation through the American Recovery and Reinvestment Act of 2009 (ARRA); ARRA Uses Existing FFY 08 CDBG Delivery Systems Entitlement Programs $11,108,569 Non-Entitlement State Program (DCA) $10,866,994 Adapt Existing Systems Through a Substantial Amendment of Approved (by HUD) FFY 08 Plans

3 Background on Supplemental CDBG Stimulus Funds ARRA Objective of Jobs and Economic Growth Through CDBG Conformance with CDBG Statute, Regulations and Guidance supplemented by specific federal ARRA requirements Funds are Available Until 9/30/2010 Priority to projects that can award contracts within 120 days HUD guidance expected on expediting use of funds and certain waivers Buy American Provisions

4 Update and Changes to DCA Guidance All Materials Located on DCA Web Site Stand Alone CDBG Stimulus Competition Due Date of June 1, 2009 (COB or Postmarked) Reevaluation following publication of HUD Notice All State CDBG Communities are Eligible Possible Exceptions for Slow Performers, Unresolved Findings and Sanctions, RLFs with liquidity New CDBG Stimulus Applicants Manual

5 Special ARRA / CDBG Competitiveness Provisions Most Competitive Projects will have Maximized job creation and retention Utilization of full-time equivalent calculation Completed acquisition of any needed real estate Obtained required permitting is complete Completed & approved architectural & engineering Assurance regarding Buy American provisions Completed NEPA review requirements No site assessment liability issues (Phase I & II) Assessed within the rating and selection criteria

6 Special ARRA / CDBG Competitiveness Provisions Note that local governments are encouraged to consider regional approaches to job creation and economic growth. Regional approaches will obtain consideration of combined demographics which will be more competitive than stand-alone applications.

7 Application of CDBG National Objectives (1) Benefiting low- and moderate- (L/M) income persons (2) Addressing slums or blight; or (3) Meeting a particularly urgent community development need For CDBG Stimulus only, the State will lower the L/M threshold to 51% Therefore ALL national objectives will be accepted but be required to meet the L/M 51% threshold For job creation projects where permanent employees are taken from certain state training programs, an assumption of L/M benefit exists

8 Eligible State CDBG Applicants All local governments which were non-entitlement governments for FFY 2008 and eligible for the State CDBG Program are eligible for the CDBG Stimulus competition Receipt of a 2008 or 2009 annual CDBG grant does not preclude a local government from applying for CDBG Stimulus funding Public and private Sub-recipients are not directly eligible for State CDBG; rather, they must work through a sponsoring local government(s)

9 Eligible State CDBG Activities ARRA directs that grantees use Stimulus funds to maximize job creation, economic benefit and for activities that can be initiated within 120 days. Such projects may involve any eligible CDBG activity; however, to the extent that the minimum benefit threshold to LMI persons is met, the Department recommends that the following activities be considered

10 Eligible State CDBG Activities Direct Assistance to Private Businesses The provision of assistance to private, for-profit entities (including small businesses and micro-enterprises), when the assistance is appropriate to: create or retain jobs for low- and moderate-income persons; prevent or eliminate slums and blight; meet urgent needs; create or retains businesses owned by community residents; and assist businesses that provide goods or services needed by, and affordable to, low- and moderate-income residents

11 Eligible State CDBG Activities Direct Assistance to Private Businesses The provision of assistance to private, for-profit entities (including small businesses and microenterprises), could also be structured through an regional application that uses a intermediary regional organization: the intermediary regional non-profit entity could establish an agreement with the applicant local governments to become a CDBG sub-recipient to re-loan the assistance to eligible forprofit businesses, microenterprises or non-profits that themselves make loans to micro-enterprises RDC s, regional development authorities, nonprofits and similar entities with proven track records may qualify call DCA to discuss

12 Eligible State CDBG Activities Public Works and Public Facilities The acquisition, construction, reconstruction, or installation of public works, facilities (except for buildings for the general conduct of government), and site or other improvements. public works. Publicly-owned water, sewer, gas, drainage, rail, fiber, etc that will be extended to an industrial or commercial business, corporation or small businesses to promote job creation Creative use of a public lease (i.e. development authority) can qualify facilities as public publicly-owned facilities job training or workforce development centers, health centers, business incubators Again, creative use of public leases combined with collaborative partnerships with colleges, hospitals, research institutes, etc.

13 Ineligible State CDBG Activities Pursuant to ARRA, certain activities are specifically excluded from eligibility, including: casinos or other gambling facilities; aquariums; zoos; golf courses; swimming pools and similar recreation projects. Note that these activities have NEVER been eligible for Georgia s State CDBG Program Also, it is unclear from the ARRA legislation whether state or local administration is an eligible activity. DCA will provide information on administrative cost eligibility as soon as HUD provides guidance.

14 State CDBG Grant Amounts Maximum of $500,000 per award Note CDBG cost per job or beneficiary is a major competitive factor Receipt of a 2008 or 2009 annual CDBG grant does not preclude a local government from applying for CDBG Stimulus funding Sub-recipients are not directly eligible for State CDBG; rather, they must work through a sponsoring local government(s) Multi-government regional applications are encouraged for small business development projects

15 Competitive Rating and Review Criteria Review Factor Unemployment/Demographic Need Program Feasibility Program Impact Program Strategy Bonus for Project Readiness Total Available Points Max Points Available 60 points 150 points 150 points 100 points 40 points 500 points

16 Final Competitive Rank and Selection Final Ranking and Grant Selection: The points received by each applicant on the rating factors will be totaled and the total scores ranked accordingly. Grant awards will be based on this final ranking to the extent funds are available. In case of ties, the applicant with the highest unemployment score will be given priority. Transparent, merit based system. Detailed explanations of scores will be available to all Applicants

17 Accountability and Oversight If funded, your project will be extensively monitored and audited by both state and federal agencies and resources Local governments must make it a priority to know and understand the details of the CDBG and ARRA compliance requirements within the Applicants Manual If improperly designed and implemented, the Department will disallow costs, apply sanctions and require the repayment of misspent funds

18 Contact Information cdbgstimulus.asp Steed Robinson, Joanie Perry, Glenn Misner, Brian Williamson,