2018-2019 Consolidated Grant Process Funding Preparation Information and Steps City of McKinney Pre-Application Meeting March 22, 2018 City Council Chambers
City of McKinney Unique by Nature. McKinney is the County Seat for Collin County Population: 168,358 (McKinney Planning Dept., Dec. 2017) Unemployment rate 3.1 % (Texas Workforce Commission, Nov. 2017) Collin County 3.0% Texas: 3.8% Money Magazine ranked McKinney the #1 Best Place to Live in America in 2014. (employment, schools, crime and safety) McKinney is the #1 U.S. City for First-Time Buyers McKinney is the #2 Best Real Estate Market in the U.S. McKinney #2 Best City to Start a Family
CDBG - Introduction Each Year, the City of McKinney Receives Funding from the U.S. Department of Housing and Urban Development (HUD) in the form of the Community Development Block Grant (CDBG). Entitlement Community based on Formula A :pop. increase, poverty, overcrowding Formula B: growth lag, poverty, pre-1940 housing Funding can be used for activities including Public Services, Housing, Economic Development, and Grant Administration & Planning (GAP) 15% Cap for Public Services, 20% Cap for GAP
McKinney, Texas CDBG 2002 Allocation: $447,000 Staff: 3 Programs: 1 Sub-Recipients: 10 Total Population: 54,369 U.S. Census Pop. Poverty: 8.5% CDBG 2017-18 Allocation: $ 667,906 Staff: 3 Programs: 5 Sub-Recipients: 7 Total Population: 168,358 City of McKinney, Population Estimate (January 1, 2017) Pop. Poverty: 8.1% U.S. Census, Quickfacts, 2010-2014,ACS
2018-2019 Funding Allocation The estimated allocation used for this process will be $ 667,906 (FY Allocation pending) Only 15% of the funds can be used for public services. (CAP) Only 20% of the funds can be used for grant planning & administration. (CAP). 65% will be used for programs (city and applicants), which may include housing rehabilitation, housing services, public facilities, improvements, economic development and acquisition. In addition, available reallocated funds from the previous grant year help to fund eligible acquisition or economic development activities. City funded programs and eligible funded activities make up the document known as the Annual Action Plan.
CDBG - National Objectives Projects Must Meet at Least One of Three National Objectives, Defined by HUD: Benefit Low/Moderate Income Persons Address Slum or Blighted Areas Address an Urgent Need
CDBG - Eligibility The Program may Fund Varied Projects Must Benefit McKinney Residents. Activities include but not limited to: Child Care, Preservation and support of Affordable Housing, Counseling Services, Handicapped Services, Legal Services, Crime Awareness, Health Services, Training, Homelessness and Prevention, Senior Services, Mental Health Services and More.
CDBG - Applicants Agency/Organization must be a Public, Government, Private, or Non-profit organization. In Good Standing with the State of Texas, and Must Have an Active Board of Directors in Compliance with IRS Section 501 3 Certification. Must have been Programatically Operating for a Minimum of Three (3) years Prior to Application Deadline. Property Taxes and all Other Debts to McKinney Must be Paid Up-to-Date.
CDBG Eligibility - Projects Projects must be eligible as defined by HUD. Activities May Include: Acquisition, Public Services, Housing Services, Interim Assistance and Clearance Activities, Public Facilities and Improvement. Remember.Although an agency received funding in current or past year(s), No agency is guaranteed ongoing funding. Funds are limited. Demand always far exceeds availability. Resource: www.hud.gov/offices/cpd/communitydevelopment/programs/entitlement
CDBG - Community and Economic Development Commercial Rehabilitation - Façade Improvement Microenterprise - Technical Assistance Acquisition Disposition
CED: Façade Improvement To support the local economy and character of the area McKinney - Area benefit for greatest concentration for low to moderate income (persons) Existing businesses; non-residential property owners and business lessees Restore, or improve storefronts (street-facing) ADA compliance, signs, awnings, windows, masonry, doors, lighting, and sidewalks Range of projects: up to $50,000 Example(s): Sunrise Daycare, 2015: lighting, ADA compliance, parking spaces. Provided safety to the area, and added value to the neighborhood. Ettiene Market, 2017: paint, sign, awning. Provided increased access for area residents, historic preservation, increased sales for local business owner
Sunrise Daycare, McKinney Before
Sunrise Daycare, McKinney After
Ettiene Market, McKinney Before: August 2017 After: November 2017
CED: Microenterprise Assistance for prospective, or current business owners (residing, or operating business in McKinney) Definition: commercial enterprise that has five (5) or fewer employees, one or more of whom owns the enterprise. The business owner or person developing a microenterprise business receiving assistance must meet the low-moderate income definition Educational and support assistance: Technical assistance, staff/job training - business planning, accounting/recordkeeping, market research Support childcare, transportation Example(s): Expose Your Palate, 2017: Partnership with Collin College, small business curriculum tuition assistance, benefitting McKinney-based entrepreneur; network of community resources
CED: Microenterprise
CED: Acquisition Purchase, lease, donation of real property (i.e. land, building) for any public purpose Example(s): Habitat for Humanity, vacant lot acquisition to provide affordable housing WinCo (employee owned grocery store), land acquisition existing building, provided service to the community, and job opportunities for the local residents Agency/organization i.e. purchase a building to provide a public service there is funding available for land or a building they wish to acquire
WinCo Foods, McKinney, TX
Habitat for Humanity
CDBG Federal Guidelines 1. Project costs must be reasonable, not excessive 2. All proposed sources of financing necessary to carry out the project must be committed. 3. To the extent practicable, CDBG funds are not to be substituted for other funds. 4. Financial feasibility of the project. 5. Avoidance of providing an unreasonable return on investment to the owner of the project. 6. To the extent practicable, CDBG funds should be disbursed on a pro rata basis with other project funding sources.
What Should We Ask For? Applicants should apply only for funding dollars necessary to carry out the project. Requests should be sufficient on their own standing or in combination with over leveraged funding sources to complete the proposed activities within the program year (Oct. 1-Sept 30). Tip: You must ask for a MINIMUM of $ 5,000 in your request. Do NOT ask for an unreasonable amount of the Total Funding Pool
CDBG - Income Eligibility Limits (IEL) A minimum of 70% of CDBG funds overall must support activities that benefit lower income persons. Activities that meet those requirements can include: Limited Clientele: Activities which serve Least 51% of persons/clients served are low/mod income. Area Benefit: in which all residents served in an area are at least 51% low/mod income. Housing Activities: Owner occupancy can be listed as 51% low/mod income.
Collin County, TX 30% Extremely Low 50% Very Low 80% Low/Moderate Income Limits (FY 2017) 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person $15,400 $17,600 $20,420 $24,600 $28,780 $32,960 $37,140 $41,320 $25,700 $29,400 $33,050 $36,700 $39,650 $42,600 $45,550 $48,450 $41,100 $47,000 $52,850 $58,700 $63,400 $68,100 $72,800 $77,500 8 Person Unless your program has documentation that would support reporting a client under another category, use the following categories to report on clients served in particular Presumed Benefit Categories : Abused Children 30% of Area Median Income (AMI); Battered Spouses 50% of AMI; Severely disabled adults 50% of AMI; Homeless 30% of AMI; Illiterate Adults 50% of AMI; Persons with AIDS 50% of AMI; Migrant farm workers 50% of AMI; Elderly (62 years of age or older) Center-based senior services 80% of AMI; Other senior services 50% of AMI.
Performance Measurements Required of all Federal Programs Helps the City Tell the Story About CDBG Accomplishments to Stakeholders Captures Data about Program Outcomes Expanding Access to Affordable Housing Creating Suitable Living Environments Provide Economic Opportunities
ACTIVITY REPORTS Timeliness is Key! -due EVERY month Reimbursement Requests -timesheets -invoices Program Income Definitions -must sign/submit declaration page
Important Items Transparency, Accountability With the Emphasis of Being Timely City/HUD/OMB/ Expecting Quick Results, While Evaluating Agency Capacity Shared Services and Consolidation When Possible (No Full Duplication of Services) More Audit Information, i.e. DUNS Numbers are Required. Must register with SAMS.gov
Conflict of Interest Read the Application Instructions in full detail. Agency Must agree to Abide by Provisions of 24 CFR 570.611 with Respect to Conflict of Interest, including Financial Interests, Direct or Indirect. Give Full Disclosure of Staff, Board Members, etc. according to Questionnaire. Be Certain to Review the Determination Guidelines. Have the Authorized Official of Your Agency to Sign the Form.
Under the Consolidated Plan, priorities includes determination of funding relative to local, CDBG and State funding (HOME). CDBG Priorities will be reviewed and considered first, but not limited only to the following needs: High Priorities: Housing Rehabilitation Assistance; Homelessness and Homeless Prevention Services; Senior Services; Neglected/Abused Children, Health Services; Tenant-Based Rental Assistance, Homebuyer Assistance (including education). Medium Priorities: CDBG - Priority Needs 91.215(a)(2) Counseling; Youth Services, Small Business Assistance; Infrastructure; Training
Financial Recordkeeping Must keep concise and accurate records in compliance with 24 CFR 85 and OMB Circulars (2 CFR 200). Records include: Accounting journals and ledgers, Chart of Accounts Drawdown Requests Financial Reports, Audit files Correspondence, Inventory Source documents that costs were eligible and paid (i.e. invoices, purchase orders, cancelled checks) Payroll Records
Public Services Time and Activity Records - Timesheets (must be after the fact determination of actual activity. - Digital or Actual: Signed by individual employee, certified by supervisor. - Prepared at least monthly (applicable to funded agencies and city as the grantee.
Apply HUD Regulations
Monitoring Funded organizations will be required to submit reimbursement requests and reporting documentation for eligibility, performance review of individuals or households served and other HUD criteria, including Race/Ethnicity. This information adheres to monthly desk monitoring review. The City will conduct annual on-site monitoring after the program year as ended. Records must be kept for five years after the end of the program year. Activities are also subject to HUD regional monitoring.
Community Support Grant (CSG) Since 2006, the City of McKinney makes funds available to non-profit community support organizations that provide activities, programs, and services to residents of McKinney. Organizations, which can be reasonably categorized under the heading of providing a public service that promotes the health, safety and welfare of McKinney residents, are eligible for funding.
Community Support Grant The Community Support Grant (CSG) allows the flexibility to apply for funding under the following priority of needs based on service impacts to the community, duplication of services from other agencies, organization capacity, risk assessments, other sources of agency funding and presentation critique. Must Benefit McKinney Residents.
Community Support Grant Organizations receiving CDBG grant funds for the 2017-18 grant year absolutely will not be funded for the same program in the same program year with CSG funds. - Completely separate programs by the same organization may be eligible Monitoring: Monthly reports are required in the program year - Awardees must attend grant training and adhere to manual guidelines. - On-Site Monitoring at end of program year. Financial audits are required - If applying under another organization, that organization s financial audit is required. - Audit waivers may be approved if audit places undue hardship, or audit cost exceeds 5% of total amount requested. No guarantee of funding or consideration. Contact Housing and Community Development Department. Must submit prior to application.
Comparisons CSG McKinney GF Min. $3,000 1 year operation Required Monitoring & Reports No Income Guidelines Community Needs/Gaps Funding In Advance CDBG HUD Min. $5,000 3 years operation Req d Monitoring & Reports Req d Low-Mod Income Specific National Objectives Reimbursement
CSG Eligible Activites Basic needs: food and clothing, housing and shelter: non-financial assistance Health and medical treatment, including mental health Housing: financial assistance Transportation: the sole service being provided
CSG Ineligible Activities The duplication of services or programs offered by the City of McKinney and/or other non-profit agencies. Social functions, parties, receptions, fund-raising benefits, refreshments or beverages. Licensing fees of any kind. Underwriting, investments, bonds, or any financial obligation. Interest and/or depreciation on loans, fines, penalties, or costs of litigation. DUPLICATE CDBG FUNDED PROGRAMS. Not funding Recreation and athletics /sports, arts OR Disaster Aid (Funding is eligible under other city grants). Grants in amounts less than $3,000.
CSG Activity Reports Helps the City Tell the Story About Accomplishments Monthly Reports throughout program year File Documentation of how funds were used (not limited to attendance logs, invoices, statements, program materials, signed timesheets) Outcomes Expanding New Programs Providing Gap Services Report Due Dates: generally due on the 8 th day of the month, reporting on the previous month
CSG Activity Reports Reports require three things: Letter on organization letterhead describing activities and/or how CSG funds were spent City of McKinney reporting forms filled appropriately DOCUMENTATION - Receipts, timesheets, client intake information, etc. Per the grant agreement: The Agency agrees that all funds provided for under this Agreement shall be utilized to serve residents of McKinney. Agency agrees to maintain client files that support McKinney resident status Records describing location, eligibility, amount of CSG funds budgeted and expended for the activity. (i.e. gas receipts, mileage report, event/activity detail, proof of McKinney residency)
Application Timeline It is a Competitive Process. Review by Staff to ensure the proposals meet the City s Consolidated Plan priorities. Various other factors may include Program and Agency Capacity, Duplication of Services, Fund Limitations, and if the Proposal will have a significant impact on eligible beneficiaries. The Community Grants Advisory Commission makes funding recommendations to City Council for approval, prior to final submission to HUD.
Application Timeline Recommendations are key in the City s Annual Action Plan Document to HUD. The proposed Action Plan will be open to public comment for 30 days before submission to City Council in in the months of June-July as required by HUD statute. The City will submit the plan to HUD for approval in August. Awarded agencies will be notified, and will be REQUIRED to attend a Sub-Recipient Pre-Award Training in September
FY 2018-2019 TIMELINE (Highlights)
Preparation Reminders Make certain the agency submits application April 18, 2018, by 4:00 pm: https://www.zoomgrants.com/ If you have questions, ask during technical assistance period, before deadline day.
Goes Without Saying. Final Tips Don t Miss The Deadline! Due by April 18, 2018 at 4:00 PM. Must be submitted by 4:00 PM. Technical Assistance is Available until April 13, 2018 prior to Grant Deadline.
The Wrap - Up Questions? Good Luck and Thank You. Shirletta Best, Community Services Administrator Phone: 972-547-7577 Email: sbest@mckinneytexas.org Camille Smith, Community Services Coordinator Phone: 972-547-7517 Email: csmith2@mckinneytexas.org