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California Department of Housing and Community Development Thomas Brandeberry CDBG Section Chief

2012 CDBG PROGRAM NOFA APPLICATION WORKSHOP. California Department of Housing and Community Development Thomas Brandeberry CDBG Section Chief. TODAY’S WORKSHOP. Regulation Changes  What’s New?  Who Can Apply - Threshold  NOFA Basics  Eligible Activities  Federal Overlays

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California Department of Housing and Community Development Thomas Brandeberry CDBG Section Chief

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  1. 2012 CDBG PROGRAM NOFA APPLICATION WORKSHOP California Department of Housing and Community Development Thomas Brandeberry CDBG Section Chief

  2. TODAY’S WORKSHOP • Regulation Changes •  What’s New? •  Who Can Apply - Threshold •  NOFA Basics •  Eligible Activities •  Federal Overlays •  NOFA Application (Summary) •  Table Discussions

  3. REGULATION CHANGES • Proposed Regulation changes documents can be found here: http://www.hcd.ca.gov/fa/cdbg/about.html • Comment period ends: February 6, 2012

  4. REGULATION CHANGES PURPOSE • To Allow the CDBG Section and Jurisdictions to Consolidate Workload: Super-NOFA. • To Repeal Multi-Year Funding. • Increase the State’s Expenditure Rate. • To Clean Up Regulations That Need Immediate Change.

  5. REGULATION CHANGES Organize Sections and Subjects Change Terms Define Eligible Activities Define National Objectives Realign Scoring including Point Categories and Maximum Points

  6. REGULATION CHANGES ELIGIBILITY 50% Rule. Housing Element and A-133 Audit Submission Compliance as of Application Due Date.

  7. REGULATION CHANGES ECONOMIC DEVELOPMENT Micro-Enterprise Removed from Job Creation Requirement. Removes Maximum Grant (Award) Amounts (NOFA will have the Maximums). Removes Language Related to Dates for Funding.

  8. REGULATION CHANGES ECONOMIC DEVELOPMENT(cont’d) Removes the $50,000 per Job Language to Comply with State Statute. Clarifies ED OTC is “First-Come, First-Served” Awarding Process. Removes ED PTA Maximum Award Amounts.

  9. REGULATION CHANGES COMMUNITY DEVELOPMENT Removes Language Related to the Blender Scoring. Removes Language Related to Dates for Funding. Removes Language for Multi-Year Funding.

  10. REGULATION CHANGES NEW SCORING MECHANISM • Activity Based Scoring • 4 Over-Arching Categories: • Need – up to 400 points • Readiness – up to 300 points • Capacity – up to 200 points • State Objectives – up to 100 points (beginning w/2013 NOFA, NOT in 2012 NOFA)

  11. REGULATION CHANGES Planning Activity (PTA) Match will no longer be a calculation based on sales use and tax data. Match will now be announced in the NOFA each year. This year it will be 5% (cash) for all jurisdictions.

  12. WHAT’S NEW IN 2012 NOFA • One annual NOFA, announcing all CDBG activities in one document. • ED OTC will have a separate application process, funding process and contract. • Application and funding cycle once per year for all allocations/activities.

  13. WHAT’S NEW IN 2012 NOFA ONE AWARD/ONE CONTRACT FOR ALL ACTIVITIES • One award/one contract for all awarded activities, whether CD, ED EF, PTA, Native American or Colonia. • Only ED OTC will have a separate contract in any given fiscal year. • All contract reporting will be consolidated.

  14. WHAT’S NEW IN 2012 NOFA NEW TERM OF CONTRACT • Contract EXPIRES no later than 60 months from award date. • EXPENDITURE deadline no more than 36 months from award date.

  15. WHAT’S NEW IN 2012 NOFA TERMINOLOGY • “General” Allocation Activities – NOW “Community Development” or “CD”. • “Targeted Income Group” or “TIG” - Reverting to HUD terms “Low- and Moderate-Income,” “low-income,” or “Low-Mod”. • LMI refers to a Low-Mod Individual, and LMA refers to Low-Mod Area.

  16. WHAT’S NEW IN 2012 NOFA TERMINOLOGY(cont’d) • Single Family Residential - 1 to 4 residential units on a single property. (Housing Rehabilitation (HR) and Homeownership Assistance (HA) Programs). • Multi-Family Residential– 5 residential units or more on a single property or within a single development complex.(Multi-Family Housing (MFH) Rehabilitation and MFH Acquisition/Rehabilitation Projects).

  17. WHAT’S NEW IN 2012 NOFA TERMINOLOGY(cont’d) • HR and HA are considered Programs. • MFH Acquisition and/or Rehabilitation are considered Projects. • Application requirements and scoring criteria are significantly different. Example: • Programs require Program Guidelines to be submitted as part of the application. • Projects do not.

  18. WHAT’S NEW IN 2012 NOFA STATE CDBG EXPENDITURE RATE • For 2012 and 2013 NOFAs, the Department will make available 150% of its HUD allocation.

  19. WHAT’S NEW IN 2012 NOFA NEW THRESHOLD FACTORS • Holdouts: • No holdouts (moved to scoring criteria). • Single Audit Report Submittal Required Prior to Application as of the date of application submittal. • Housing Element and Other Threshold Requirements as of the date of application submittal.

  20. WHAT’S NEW IN 2012 NOFA “50% RULE” FOR APPLICATION ELIGIBILITY • Beginning FY 2013-14 NOFA: • One or more open CDBG contracts executed in 2012 or later. • Expenditure deadline established in the contract(s) has not yet passed. Not Expiration date. • Ineligible for additional CDBG funds unless expended at least 50% of all funds awarded 2012 and later. • Except ED OTC.

  21. WHAT’S NEW IN 2012 NOFA NEW ACTIVITY AND ALLOCATION FUNDING LIMITS • Application maximum for the 2011-12 funding year is $2,000,000. • Maximum of 3 eligible activities. • ED OTC Program - Application maximum is $3,000,000 for one year. • ED OTC, Native American and Colonia activities are NOT counted as one of the maximum 3 eligible activities.

  22. WHAT’S NEW IN 2012 NOFA NEW ACTIVITY LIMITS(cont’d) • Colonia and Native American (NA) 2012 maximums: • Colonia Allocation - Must Meet Colonia Definition • NA Allocation - Must Meet Native American Definition • Activities are in addition to the 3 activities from other Allocations.

  23. WHAT’S NEW IN 2012 NOFA NEW ACTIVITY LIMITS(cont’d) • Of the three (3), one may be either: • A PTA activity (up to two studies); or, • A Set-Aside (not scored) activity with a maximum funding limit of $100,000 for any other eligible activity (EF, Public Improvements, Public Facilities, or Public Services).

  24. WHAT’S NEW IN 2012 NOFA NEW ACTIVITY LIMITS(cont’d) • May apply for the PTA activity as a stand-alone or as one of the three maximum activities in an application. • Two PTA application pools created: (1) PTA only (stand-alone); & (2) Both PTA and another rated activity(s). • Both from the amount set aside for PTA, based on demand. • Tie breaker process, as described in NOFA, if the demand is greater that the amount available. • No assurances can be made that an application including PTA activities will be funded, regardless if it is the sole activity or part of a multi-activity application.

  25. WHAT’S NEW IN 2012 NOFA NEW ACTIVITY LIMITS (cont’d) • Set-Aside (not scored) - Funded only if one or more scored activities are funded. • Some activities may allow implementation of more than one Program or Project. See NOFA.

  26. WHAT’S NEW IN 2012 NOFA INDIVIDUAL ACTIVITY ALLOCATIONS • Each activity allocated a specific amount of funding. • Actual activity allocation amounts will be based on the application demand, expressed as a dollar amount, requested in each activity application. • Funding will continue in rank order until that activity allocation has been exhausted. • Under-subscribed Activity - Remaining funds will be redistributed to remaining activities.

  27. WHAT’S NEW IN 2012 NOFA FUNDING MAXIMUMS (cont’d) • Over-the-Counter: • Annual Limit for one or more projects: • Up to $3,000,000 • Two year award for single project: • Up to $6,000,000 NOTE: ED OTC activities require a separate application process and have different opening and closing dates

  28. WHAT’S NEW IN 2012 NOFA FUNDING MAXIMUMS (cont’d) • Enterprise Fund: • Business Assistance Program:Up to $300,000 • Microenterprise Assistance Program:Up to $300,000 • Combo Program of Micro and Business Assistance: Up to $500,000

  29. WHAT’S NEW IN 2012 NOFA FUNDING MAXIMUMS BY ACTIVITY • Housing ($1 million maximum total): • $600,000 Homeownership Assistance (Acquisition) or Housing Rehabilitation. • $1 million – Combo of Single Family Residential Homeownership Assistance and Housing Rehabilitation. • $1 million – Multi-Family Rental Rehabilitation With or Without Acquisition (1 Project) • $600,000 – Land Acquisition for Multi-Family Affordable Housing (1 Project)

  30. WHAT’S NEW IN 2012 NOFA FUNDING MAXIMUMS (cont’d) • Public Improvements: $1,500,000 (one project) • Public Facilities: $1,500,000 (one project) • Public Services:$500,000 • No more than 3 services per application.

  31. WHAT’S NEW IN 2012 NOFA FUNDING MAXIMUMS (cont’d) • Planning and Technical Assistance: • $100,000 Maximum • Maximum of 2 studies • May include either two CD studies, two ED studies, or one of each

  32. WHAT’S NEW IN 2012 NOFA NEW METHOD FOR SCORING APPLICATIONS • Revised scoring criteria and process for all activities. • Scored using the new individual activity scoring system. • Rate and rank each activity against applications for the same activity. • No blending of scores for multiple activities. • Awarded or denied funding based on scores for each activity.

  33. WHAT’S NEW IN 2012 NOFA NEW METHOD FOR SCORING(cont’d) • Points categories: Need, Readiness, Jurisdictional Capacity/Past Performance, and State Objective. • Each category applied to all activities: • Type and weighting of the criteria within each category may differ by activity. • Maximum of 1,000 points per Activity • This year 900--No State Objective Points This Year!

  34. WHAT’S NEW IN 2012 NOFA NEW METHOD FOR SCORING(cont’d) Scoring for Service Areas (Target Area) Activities with 100% income restricted or Limited Clientele beneficiaries will be scored using jurisdiction-wide data only. Programs or Projects that use a Service Area to meet Low Mod National Objective will be scored based on that same area.

  35. ELIGIBLE APPLICANTS & AREAS NON-ENTITLEMENT JURISDICTIONS ARE: • Cities with populations under 50,000. • Counties with populations under 200,000. • Not currently a party to an Urban County Agreement. • Not eligible to participate in the HUD administered CDBG Entitlement Program. • See Appendix A.

  36. ELIGIBLE APPLICANTS & AREAS NATIVE AMERICAN ALLOCATION APPLICANTS ARE: • Non-entitlement jurisdictions that apply to assist non-federally recognized Native American communities. • For housing and housing-related activities only.

  37. ELIGIBLE APPLICANTS & AREAS COLONIA ALLOCATION APPLICANTS ARE: • Eligible jurisdictions which contain Colonia communities, as defined by the National Affordable Housing Act of 1990.

  38. THRESHOLD REQUIREMENTS • The applicant shall submit a complete application on the forms provided; and, • Application must be submitted by due date (April 6, 2012, by 5:00 PM). • Application must be able to be evaluated on the scoring criteria found in the NOFA.

  39. THRESHOLD REQUIREMENTS • Applicant must be in compliance with the submittal requirements of OMB A-133, Single Audit Report.

  40. THRESHOLD REQUIREMENTS • Applicants must be in compliance with federal CDBG Public Participation regulations. • Applicants must have complied with CDBG Housing Element requirements.

  41. NOFA BASICS Applications Due: April 6, 2012, 5:00 PM Awards by July 2012 Contracts Issued Within 60 Days of Awards Approximately $48 Million will be Available (150% of HUD Allocation)

  42. NOFA BASICS ED OTC Not Included In This Workshop Opening Date: January 9, 2012 Closing Date: April 30, 2013

  43. NOFA BASICS ALLOCATIONS 30% Economic Development 5% Colonia 1.25% Native American No More than 15% Public Services

  44. NOFA BASICS ALLOCATIONS Planning Grant Awards Limited to $2 Million Total. Community Development Activity Allocation Will be Based on Demand.

  45. NATIONAL OBJECTIVES • Three National Objectives • Documentation of National Objective

  46. NATIONAL OBJECTIVES • THREE NATIONAL OBJECTIVES • Benefit to Low-Income Persons/Households • Benefit of Eliminating Slum / Blighted Condtions • Benefit of Meeting an Urgent Need

  47. NATIONAL OBJECTIVES • LOW-INCOME NATIONAL OBJECTIVE • Direct Benefit to Low-Income Persons/Households • Area Benefit or Restricted Use to Low-Income Persons/Households • Limited Clientele • Public Benefit Jobs for Low-Income Persons on ED projects

  48. ELIGIBLE ACTIVITIES REFER TO: “FUNDING LIMITS AND ELIGIBLE ACTIVITIES TABLE”

  49. ELIGIBLE ACTIVITIES ECONOMIC DEVELOPMENT (ED) ACTIVITIES • Over-The-Counter (OTC) Activity Separate application for Individual Projects Maximum Award Limit(s): Up to $3,000,000 for projects in single funding year Up to $6,000,000 for a project with two year award

  50. ELIGIBLE ACTIVITIES ED ACTIVITIES(cont’d) • Enterprise Fund (EF) Activity Business Assistance (BA) Program or Microenterprise (ME) Program Maximum Award Limit(s): Up to $300,000 for either BA or ME program Up to $500,000 for Combo BA and ME program

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