Welcome and Introductions Iris Payne Programs and Compliance Section Chief
Mission Statement: To improve the economic well-being and quality of life for all North Carolinians.
Maximum Feasible Deference States have maximum feasible deference (MFD) per 24 CFR 570.480 (c)
2013Changes/Application Requirements Citizen participation, and floodplain certification sent with application Environmental Review is required with the application. That includes everything up to the publishing or posting (for all 4 categories) Application guidelines govern the application process and requirements
Local Government Roles and Responsibilities 24 CFR Part 570.501 Management and Oversight Elected officials are legally, financially, contractually and programmatically responsible for CDBG project Local Government is responsible to the State and the Federal government even if they have a contract administrator or a sub-recipient relationship
Roles and Responsibilities Continued Financial Management Proper accounting of funds (avoid disallowed costs) Accurate identification of project costs and cash balances Proper internal controls Project Files-24 CFR Part 570.506 and.508 Establish a system for CDBG files to ensure that they are complete, accurate and open for public review and inspection where applicable Maintain files for period of time after closeout as required by applicable laws and regulations
Roles and Responsibilities Continued Statement of Assurances and Certifications Read and understand these documents and what you have to do to implement Examples include Affirmatively Further Fair Housing, Drug free, etc. Grant Agreement (24 CFR Part 570.501 and.502) Contractually binding Document cannot be changed without State approval Local Government promise of what it intends to deliver
2013 Infrastructure Program
PURPOSE To improve the quality of life in a: Residential area (Target Project Area) or Local Government s Jurisdiction (Area-Wide Jurisdictional Project)
ACTIVITIES Installation of New Public Water or Sewer Lines Replacement of Public Water or Sewer Lines Replacement of Appurtenances Improvements to Water or Sewer Treatment Plants with Special Problems (e.g., moratoriums or special orders of consent)
One Pool of Funds for Infrastructure: Water and/or Sewer in Residential Areas (NC: minimum 70% LMI benefit for project area ; 51% minimum for Area - Wide) Priority given to projects that are under moratoriums or special orders of consent Funding made available based on regional distribution Tier 1 counties do not have to comply with 5% match requirement Maximum grant amount is $850,000 Minimum need requirement is 76% (Severe 51%, Moderate 25% with a total of 76%)
THE APPLICATION PROCESS 3 STEPS 1. Submit a letter of interest signed by the chief elected official. (No phone calls) a. Attachment preliminary evidence of a first public hearing b. From an Official Source, submit documentation of need (see application) c. Attach a completed Preliminary Information Form d. Must include the Preliminary Engineering Report Note: Submit the above information at the same time as a packet.
THE APPLICATION PROCESS (continued) 2. Meet with Program Development Staff. a. Who attends? Local Government Staff Engineer and Preparer b. Why? To show readiness
THE APPLICATION PROCESS (continued) 3. Receive letter of eligibility and send in application.
READINESS A Ready Project Means That: The Preliminary Engineering Report (PER) is complete and included with packet One Public Hearing has been held Surveys of Beneficiaries have been done using the Community Assistance form
ELIGIBLE OR INELIGIBLE? CI will send the local government either a Letter of Eligibility If so, applications forms will go to preparer Funds will be earmarked up to 60 calendar days Letter of Ineligibility
THE APPLICATION PROCESS (continued) 3. Submit Application to CI. Mail to: Ms. Richard Self, Director Community Investment and Assistance 4313 Mail Service Center Raleigh, North Carolina 27699-4313 Deliver to: Community Investment & Assistance 100 East Six Forks, 2 nd Floor Raleigh, North Carolina 27609
Application Window Preliminary application window opens in the next week or two.
REVIEW CRITERIA Severity of Needs Benefit Feasibility of the Project Basic Required Criteria Level of Readiness Overall Priorities Commitment of Other Funds for the Project
CONTACTS Iris C. Payne Programs and Compliance Section Chief E-mail: ipayne@nccommerce.com 919-571-4900 ext 249 Fax: 919-571-4951
QUESTIONS?
2013 Scattered Site Housing Program
Part I. Scattered Site Housing Overview
Overview Scattered Site Housing (SSH) grants enable local governments to address the most critical housing needs of very low income families These are families with incomes at or below 50% of area median income Allows each county, the lead agent, to receive funding every three years on a noncompetitive basis This program is consistent with the goals of the North Carolina Consolidated Plan
Eligible Recipients In 2013, eligible recipients include up to 32 counties and their interested non-entitlement municipalities along with the Town of Holly Springs and the Town of Linden: Alleghany, Alamance, Beaufort, Buncombe, Burke, Cabarrus, Chatham, Cherokee, Chowan, Clay, Cleveland, Davie, Guilford, Hertford, Hyde, Jones, Macon, Martin, Mitchell, Nash, New Hanover, Orange, Pasquotank, Richmond, Robeson, Rockingham, Sampson, Stokes, Swain, Vance, Washington, and Wilkes.
Distribution of Funds The Scattered Site Housing program requires that all activities benefit persons with very low incomes at or below 50% of area median income The County is the lead entity and is required to work with all interested non-entitlement municipalities within the county
Distribution of Funds continued CI requires the lead entity and interested non-entitlement municipalities to complete a public process in designing the SSH Program At a minimum, each participating local government is to adopt the SSH Program to be implemented in the county A formal action by the governing body needs to be taken for those local governments not participating
Eligible Program Activity Rehabilitation: The purpose of rehabilitation is to take an existing unit and bring it up to the required standards set by HUD and CI. To qualify as rehabilitation, parts of the existing house must be used in the process. Relocation: Relocation is the result of a person (s) being displaced from their present lot and relocated to a different lot. Local governments should adopt and submit their Optional Coverage Relocation Plan that explains how the local government plans to handle the relocation activity.
Grant Cycle Still every three years
Award Amount Scattered Site Housing grants are approximately $225,000 including CDBG funded administration up to 10% of the total CDBG costs with $3,500 for planning included in the total administration amount. As long as procurement procedures consistent with 24 CFR 85.36 are followed, applicants receiving approval for this SSH Project may charge application preparation to the current SSH program
Local Option for Emergency Repairs Applicants can use up to 10% ($22,500) of SSH Grant for an emergency repair local option project. The local option project must meet the following criteria: Homes must be occupied by home owners with incomes at or below 50% of area median income Houses must be structures that can be rehabilitated
Local Option for Emergency Repairs Continued No more than $5,000 CDBG funds per house can be spent on repairs There must be a written policy and a process for selecting the homeowners which must be attached to the application Water and Sewer Hook-ups can be added as an activity.
Technical Assistance Technical assistance is available between workshop date and submission date Contact Iris C. Payne at (919) 571-4900 ext. 249 or e-mail at ipayne@nccommerce.com
Dates and Submission Information To be determined SSH Applications may be mailed through the US Post Office or hand delivered or sent by FedEx or UPS directly to our office address at 100 E. Six Forks Rd., Raleigh, NC 27609 Richard Self, Director North Carolina Community Investment and Assistance 4313 Mail Service Center Raleigh, NC 27699-4313
Small Business & Entrepreneurial Assistance Grant Program 2013 Funding Cycle
SBEA Purpose To provide funding: to local governments to jumpstart growth of existing businesses, thus creating new jobs or retaining existing jobs, and to develop a plan for creating an entrepreneurial environment in the community.
SBEA Objectives 1. Create jobs within the community 2. Create and nurture an entrepreneurial environment within the community
First: Creation of New Jobs Permanent, full-time jobs = at least 1,600 hours per year. 70% of jobs must be filled by LMI persons Preference given to projects paying higher wages. Employers are encouraged to offer health insurance for all full-time positions at the establishment and pay at least 50% of employee premiums.
Second: Creation of Entrepreneurial Environment Project must include measures to create or nurture an environment that will sustain entrepreneurial development in the community after project funding has ended.
Target Businesses 1. Existing businesses two years old or older; 2. With 100 or fewer employees; 3. Ready to expand but need funding to act as catalyst to do so.
Award Amount Program Funding for 2013- $2.5 Million Individual grants of $150,000 - $250,000
Award Amount Must create at least 1 job per $25,000 For example: Individual grant of $250,000 $250,000 / $25,000 per job = 10 new jobs 70% of jobs must go to LMI persons (7 of 10 jobs must go to LMI persons)
Eligible Applicants All counties, except for Mecklenburg, Wake and Cumberland Town of Holly Springs (Wake County) and Town of Linden (Cumberland County) are eligible to apply All municipalities, except for the 23 entitlement communities which receive CDBG program funds directly from HUD
Eligible Activities Infrastructure improvements (e.g., water, sewer, roads); Purchase of land; Construction of a building or other improvements; Renovation of an existing building to accommodate the business; Construction of tenant improvements/finishes; Leasing space in or purchasing an existing building; Purchasing capital equipment; and Providing job training that can be linked to specific jobs at a specific firm.
Ineligible Activities for Job Creation Revolving loan funds; Microenterprise grant or loans; Incubator projects for start-up businesses; Debt restructuring; Job training that can t be linked to a specific job at a specific firm; and Ineligible activities at 24 CFR 570.207 and.209
HUD Ineligible Activities Jobs transferred from one labor market area to another; General promotion of a community as a whole; Assistance to professional sports teams including automobile racing teams; Assistance to privately-owned recreational facilities that serve a predominantly higher-income clientele;
HUD Ineligible Activities Acquisition of land where no specific proposed use has been identified; Assistance to a business that is the subject of unresolved findings of noncompliance relating to previous CDBG assistance; Projects that do not create/retain jobs for low and moderate income persons.
Entrepreneurial Environment Develop a coordinated effort to equip project team members and community and business leaders to take deliberate steps to create an environment in which small businesses/entrepreneurs can flourish.
Entrepreneurial Environment Eligible Activities (general examples) Planning for an entrepreneurial environment; Training of the project team and community leaders to learn about methods and tools for creating an entrepreneurial environment; Coordinating meetings to identify needs of entrepreneurs; Sponsoring events to market local entrepreneurs/ businesses.
Entrepreneurial Environment Eligible Activities (specific examples) Host a series of entrepreneurial training workshops for enterprises that combine for-profit and non-profit models ( fourth sector ). Upgrade website that provides financial and TA resources for local small businesses and entrepreneurs. Assist the local community college in the creation of a single-semester entrepreneurship certification option for persons interested in starting a new business.
Entrepreneurial Environment Ineligible Activities Outsourcing the development of a general strategic plan or feasibility study for the community; Payment of salary for anyone other than the grant administrator.
Contact Stacy Smith, SBEA Program Manager E-mail address: sjsmith@nccommerce.com Phone: (919) 571-4900 x229 Website: http://tinyurl.com/ncsbea-grant (NC Department of Commerce SBEA webpage)
NC Catalyst a Community Development Block Grant Program
NC Catalyst Overview The primary purpose of the State of North Carolina s NC Catalyst Program is: To provide grants to local governments to develop viable communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low-and- moderate-income.
NC Catalyst Overview NC Catalyst is designed to offer a nonentitlement municipality or county an opportunity to tailor a project to meet the community development needs specific and most critical to their locality primarily for their low and moderate-income residents.
NC Catalyst Overview Incorporates several previous CDBG programs and activities: Housing Development, Individual Development Accounts, and Community Revitalization.
NC Catalyst Overview NC Catalyst is competitive and will support the six livability principles that guides the Partnership for Sustainable Communities in a federal interagency partnership between the: Environmental Protection Agency (EPA), U.S. Department of Housing and Urban Development (HUD), and Department of Transportation (DOT).
Six Livability Principles Provide more transportation choices. Promote equitable, affordable housing. Enhance economic competitiveness. Support existing communities. Coordinate and leverage investment.. Value communities and neighborhoods.
NC Catalyst Program Categories NC Catalyst Projects may consists of one or more of the following program categories: Housing Activities Community Revitalization Special Project Public Facilities Public Services per Section 105(a)(8) of the Housing & Community Development Act (HCDA)
Housing Activities The following apply to all housing activities: No specific project boundaries are required Combination of scattered and contiguous No limit to number of houses (feasibility of cost and time 30 months to complete) Housing projects 100% LMI
HD Single Family Homeownership Maximum grant amount is $250,000/$18,000 per unit. Eligible uses of CDBG funds include: installation of public infrastructure (e.g., water, sewer, streets, sidewalks and drainage), removal of hazardous material, and vacant land acquisition by an eligible nonprofit.
HD Multifamily Rental Housing Maximum grant amount is $250,000 or $6,000 per unit Eligible activities include: installation of public infrastructure (e.g., water, sewer, streets, sidewalks and drainage), removal of hazardous material, vacant land acquisition by an eligible Community Based Development Organization (CBDO), and can be in conjunction with NCHFA Tax Credit program.
Special Project Public Facilities Public Facilities: Public facilities are buildings that are publicly owned or that are traditionally provided by the government, or owned by a nonprofit, and operated so as to be open to the general public. Buildings used to conduct general government are not eligible
Community Revitalization This category includes activities that revitalize an area, through improvements, preservation or development in a residential area. Includes activities allowed under housing and also allows infrastructure improvements that support existing housing in the designated area. All housing activities must be 100% LMI.
Types of Special Project Public Facilities Shelters for victims of domestic violence Homeless Shelters Transitional Housing Senior Centers Neighborhood Recreational Centers Neighborhood Parks Greenways
Public Services per Section 105(a)(8) of the HCDA CDBG funds may be used to provide public services provided the following criteria is met: the service is new or a quantifiable increase in the level of service above that which is being provided 12 months prior to grant submission. (Note: Document current service level in the application.)
Public Services-Examples Public services include but are not limited to: Energy conservation counseling & testing Emergency assistance payments to keep tenants or homeowners from losing housing Homebuyer down-payment assistance using Individual Development Accounts
Threshold Requirements (Grant Limitations) Previous CDBG grants were administered in compliance with applicable regulations, and all monitoring and audit findings on closed or open grants were resolved; and Progress toward completing previous Economic Development and Micro-Enterprise grants meet performance requirements set by the Commerce Finance Center; and Grants opened beyond the grant period. 30 Months 15 Months 36 Months (Housing Development grants)
Grant Limitations Continued Request no more than $1,250,000 in applications at any given time in any of the CDBG categories and demonstration programs except Urgent Needs, Scattered Site Housing, and Capacity Building grants.
NC Catalyst Allocation The NC Catalyst Program has approximately $5,000,000 Maximum grant amount is $500,000 (limitations depending upon activity type) No minimum grant amount
Evaluation: Threshold Review & Rating All applications that pass through the threshold review (which is designed to look at whether the submission completes basic eligibility criteria), will be evaluated against five competitive areas: Need, Feasibility, Capacity of the Applicant, Financial Completeness, and Project Purpose. The maximum evaluation score is 500, which is broken out as follows for each of the competitive areas: Need 150 points Feasibility 150 points Applicant Capacity 75 points Finances 75 points Project Purpose 50 points
Evaluation: Performance Measures CI must be able to document project performance at the end of the 30-year grant period. Describe the proposed activity with desired outcome using Specific, Measurable, Action oriented, Realistic, and Time-bound terms. Provide Accomplishments & Beneficiaries form for each activity. Make sure all outcomes are consistent throughout the application.
Evaluation: Activity Does the activity address an established need? Is the proposed activity eligible (24 CFR 570.201) under the CDBG Program? Does the proposed project by activity meet one of three national objectives: LMI Benefit Prevents or eliminates slum and blight or Address an urgent need ( for NC Catalyst can only meet LMI benefit or Slum and Blight?
Evaluation of National Objective NC Catalyst Projects may contain multiple activities and therefore have more than one applicable national objective. National Objectives will apply based on activities. LMI is the predominant national objective. Special Projects Limited Clientele
Evaluation: Activity Has applicant provided sufficient explanation concerning their ability to document benefit for LMI? Project area Surveys Area wide Benefit Total population in Census Tract(s) / block group(s) Total LMI in Census Tract(s) /block group(s) Limited Clientele: Identify procedure currently in place to make that determination to verify 51% served are LMI
Questions
NC Catalyst Program Manager All program inquiries should be directed to the Program Manager: Iris C. Payne NSP Coordinator and Section Chief of Program Development and Compliance ipayne@nccommerce.com (919) 571-4900, extension 249