Horry County Community Development 1515 Fourth Avenue Conway, SC 29526

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1 Community Development Block Grant Program Year Application Instruction Booklet Horry County Community Development 1515 Fourth Avenue Conway, SC 29526

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3 CDBG GRANT PURPOSES The Community Development Block Grant program was established by Congress in 1974 with passage of the Housing and Community Development Act and is administered by the United States Department of Housing and Urban Development (HUD). This program provides funds to municipalities and other units of local government around the country to develop viable urban communities. This is accomplished by providing affordable, decent housing, a suitable living environment, and by expanding economic opportunities principally for low and moderate income persons. Although units of local government develop their own programs and funding priorities, all activities must be consistent with one or more of the following HUD national objectives: Principally benefits low and moderate income persons Prevents or eliminates slum or blight Addresses an urgent need or problem in the community (e.g., natural disaster) As an Entitlement Urban County under the CDBG program, Horry County receives an annual funding allocation from the federal government to fund activities to address these national objectives. As a funding recipient, Horry County is required to submit an Annual Action Plan that describes how the Urban County will utilize federal funds to address the national objectives in a manner that will produce the greatest measurable impact on the Urban County communities. The lead agency responsible for submission of this Plan to HUD is Horry County Community Development. Through an intergovernmental agreement, Horry County allocates funding directly to the City of Myrtle Beach and the City of Conway. Requests for funding will also be administered by those jurisdictions. Process You are invited to submit an application to the Horry County Community Development, located at 1515 Fourth Avenue, Conway, SC Applications are due no later than March 10, 2017 at 5 PM to be eligible for funding consideration. Applications can be downloaded at Agencies that cannot download documents from webpages may obtain a copy of the application via by contacting Horry County anticipates receiving approximately $2,000,000 from the CDBG program year. Of the total grant award, approximately $775,000 will be provided to the City of Myrtle Beach and City of Conway. In addition, up to $200,000 will be made available for public service projects. The remaining allocation will be utilized for infrastructure improvements, administrative expenses, housing rehabilitation, and other activities to be identified in the Action Plan. Two public workshops will be held to discuss the Community Development Block Grant application on: February 20, :00 AM 11:30 AM February 28, :00 PM 3:30 PM 3

4 Public workshops will be held at the Horry County Community Development office located at 1515 Fourth Avenue in Conway. During this presentation, important information about the types of eligible projects will be reviewed along with rules and regulations that govern the program. All new applicants are strongly encouraged to participate in order to discuss their potential projects. This meeting will ensure project eligibility and provide technical assistance about the application and the CDBG program before an agency invests the time and resources necessary to complete an application. Horry County encourages interested parties to RSVP to Instructions to Applicants There is no limit on the number of applications that an agency may submit, but each project should be submitted as its own application. Matching funds are not required, but projects are strongly encouraged to have other sources of funding and leveraging capabilities. Applications selected for funding may receive less than the requested amount depending on the availability of funding. By applying, funding is not guaranteed to any agency or project. Horry County CDBG funds have been targeted to meet the following goals: 1. Expand safe, sanitary, and affordable housing opportunities for low income individuals. 2. Prevent and reduce homelessness. 3. Expand infrastructure to serve low to moderate income areas. Long term outcomes linked to these goals are: Availability/Accessibility This outcome relates to programs that make services, housing, infrastructure, public services, or shelter accessible or available to low and moderate income persons, including those with special needs and/or disabilities. Affordability This outcome relates to programs that provide affordability to low or moderate income persons and can include affordable housing. Sustainability This outcome relates to programs that improve communities and promote viability, such as removing slums and blight, or other services that sustain communities. Definitions Income Grantees may select any of three definitions of income: (1) annual income as defined under Section 8 (24 CFR Part 5); (2) annual income as reported under the Census long form; or (3) adjusted gross income as defined by the IRS Form Low and Moderate Income Family or household with an annual income less than the Section 8 Low Income Limit, generally 80% of the area median income, as established by HUD. 4

5 Extremely Low Income Family or household with an annual income equal to or less than 30% of the area median income, as established by HUD Very Low Income Family or household with an annual income equal to or less than 50% of the area median income, as established by HUD. Family As defined in 24 CFR 5.403, includes, but is not limited to, the following, regardless of actual or perceived sexual orientation, gender identity, or marital status: (1) a single person, or (2) a group of persons residing together. Household All persons occupying a housing unit. Micro Business A business that has five or fewer employees, one or more of whom owns the business. Federal regulations require that activities funded with CDBG must meet one of HUD s three national objectives: Please note: All information used to verify the program s national objective criteria must be documented, verifiable and maintained. 1. Benefit low and moderate income (LMI) persons/households (at or below 80% of median family income for the County, as defined by HUD; 70% of the County s annual expenditures must be for LMI activities) a. Limited Clientele Benefit (LMC) activity benefits LMI individuals (at least 51% of beneficiaries must be LMI) i. Certain categories of limited clientele are presumed to be LMI beneficiaries under CDBG regulations. (LMC/PB) Reference (a)(2)(i)(A) 1. Elderly 2. Severely disabled adults 3. Abused children 4. Battered spouses 5. Illiterate adults 6. Persons with AIDS 7. Migrant farm workers b. Housing Benefit (LMH) activity carried out for the purpose of providing or improving permanent residential structures which, upon completion, will be occupied by low and moderate income households i. 100% of single family units must be occupied by households at or below 80% of median family income; ii. 51% of multi family units must be occupied by households at or below 80% of median family income. Reference (a)(3) 5

6 c. Job Creation/Retention Benefit (LMJ) activity creates or retains jobs of which at least 51% must be taken by or made available to LMI persons. Reference (a)(4) d. Low and Moderate Income Area Benefit (LMA) activity will be available to or benefit all residents in an area that is primarily residential and is located in a census tract where 42.8% or more of the population is low moderate income. (Not applicable to housing activities) Reference (a)(1) 2. Prevent or Eliminate Slum or Blight (SBA or SBS) a. Area basis (eligible areas are determined by local ordinance) Reference (b)(1) b. Spot basis (specific properties are determined by local ordinance) Reference (b)(2) 3. Meet a Community Urgent Need (typically natural disasters) Reference (c) Targeted Approach Community Redevelopment In order to utilize CDBG and other HUD funding in a manner through which change can be measured, the County has adopted a targeted, neighborhood based effort. In 2014, the County adopted its first neighborhood redevelopment plan (Racepath), opening the pathway to the targeted redevelopment approach. Moving forward, the County will implement the items laid out in those plans and reexamine areas that need additional review and predevelopment effort. A large portion of annual CDBG entitlement funds will be directed into the redevelopment of these targeted neighborhoods. Targeted neighborhoods that have redevelopment plans in place include Racepath in the Myrtle Beach area and Bennett Loop in the Loris area. Activity Overview CDBG funds may be used to support a variety of activities. The section below indicates eligible and ineligible activities by category. Applicants are encouraged to review HUD s website, HUD Exchange for additional information related to each program activity. 1. Housing Activities Overview There are a number of housing activities that are eligible for funding including: Acquisition of real property; Relocation and demolition; Housing rehabilitation; Activities relating to energy conservation and renewable energy resources; Homebuyer programs; and 6

7 Acquire, rehabilitate or construct rental housing 2. Public Service Activity Overview (MUST be a NEW service or INCREASED LEVEL of an existing service) The CDBG regulations allow the use of grant funds for a wide range of public service activities including, but not limited to: Employment services (e.g., job training); Crime prevention and public safety; Child care; Health services; Substance abuse services (e.g., counseling and treatment); Fair housing counseling; Education programs; Energy conservation; Services for senior citizens; Services for homeless persons; Welfare services (excluding income payments); Down payment assistance; and Recreational services. CDBG funds may be used to pay for labor, supplies, and material as well as to operate and/or maintain the portion of a facility in which the public service is located. This includes the lease of a facility, equipment, and other property needed for the public service. To utilize CDBG funds for a public service, the service must be either: A new service; or A quantifiable increase in the level of an existing service which has been provided by the grantee or another entity on its behalf through State or local government funds in the 12 months preceding. 3. Public Facility Overview The CDBG program allows grantees to use funds to undertake a variety of public facility and improvement activities. This includes all facilities and improvements that are publicly owned, or that are owned by a nonprofit and open to the general public. Eligible types of facility improvements include: Infrastructure improvements (construction or installation) including, but not limited to streets, curbs, and water and sewer lines; 7

8 Neighborhood facilities including, but not limited to public schools, libraries, recreational facilities, parks and playgrounds; and Facilities for persons with special needs such as facilities for the homeless or domestic violence shelters, nursing homes, or group homes for the disabled. 4. General Ineligible Activities Acquisition, construction, or reconstruction of buildings for the general conduct of government Political activities Certain income payments Construction of new housing (with some exceptions) Funding Duration, Reporting Requirements, and General Regulatory Compliance The 2017/2018 Program Year will run from July 1, 2017 to June 30, All projects must comply with federal regulations applicable to individual projects. These regulations include, but are not limited to: Federal procurement standards Copeland Act (Anti kickback) Fair Housing and Equal Opportunity regulations Federal fiscal/audit standards Conflict of interest standards Environmental Review All projects will require an environmental review which will be approved by Horry County, as the certifying agency. The review must be completed prior to project start date. Horry County 2016 Low to Moderate Income Guidelines 8

9 Scoring Criteria: Project Narrative Need Targeted Audience Organizational Capacity Budget Total 30 points 20 points 15 points 15 points 20 Points 100 Points Helpful Links Below are some links that may be useful when completing your application. Horry County Community Development Consolidated Plan pdf U.S. Department of Housing and Urban Development CDBG page: CDBG Guide to National Objectives 9

10 Racepath Neighborhood Revitalization Plan ood%20plan.pdf Bennett Loop Revitalization Plan an.pdf Federal Community Development Laws and Regulations development/cdbg laws and regulations/ Glossary of HUD Terms OMB Circulars 10

11 Map of Census designated LMI areas within Horry County, SC (2010 Census) 11

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