Download
cdbg applicant s workshop housing session n.
Skip this Video
Loading SlideShow in 5 Seconds..
CDBG Applicant’s Workshop Housing Session PowerPoint Presentation
Download Presentation
CDBG Applicant’s Workshop Housing Session

CDBG Applicant’s Workshop Housing Session

248 Vues Download Presentation
Télécharger la présentation

CDBG Applicant’s Workshop Housing Session

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. CDBG Applicant’s WorkshopHousing Session

  2. CDBG Housing • Types of Grants • Single Activity: • Housing Activities Only • Multi-Activity: • Housing PLUS Infrastructure Activities CDBG APP Housing Presentation

  3. CDBG Housing • Assessing Needs • What are the needs community wide? • Are there concentrations of substandard housing? • Determine the project area (TARGET AREA) CDBG APP Housing Presentation

  4. Single Activity • Only Addresses Housing Activities • May Include Several Activities • Rehabilitation • Reconstruction • Acquisition • Relocation • Demolition CDBG APP Housing Presentation

  5. Single Activity • Limit of $500,000. • May be City/County Wide, Target Area, Targeted to a Specific Group • Elderly • Handicapped • Working Families with Children CDBG APP Housing Presentation

  6. Eligible Activities CDBG Single Activity HousingMaximum $500,000. • Rehabilitation – Of substandard housing • Reconstruction – Where Unfeasible to Rehab CDBG APP Housing Presentation

  7. Eligible Activities CDBG Single Activity HousingMaximum $500,000. • Acquisition - of Real Property • Disposition – Costs Incidental to Disposing of Property Acquired with CDBG Funds • Code Enforcement CDBG APP Housing Presentation

  8. Eligible Activities CDBG Single Activity HousingMaximum $500,000. • Clearance – Of Dilapidated Structures, out-buildings, and Other Items • Interim Assistance • Relocation – Temporary or Permanent • Removal of Architectural Barriers CDBG APP Housing Presentation

  9. Eligible Activities CDBG Single Activity HousingMaximum $500,000. • Home Ownership Assistance • Down Payment • Closing costs NOTE: DCA policy mandates use of fixed rate mortgages on all CDBG funded projects CDBG APP Housing Presentation

  10. Eligible Activities CDBG Single Activity HousingMaximum $500,000. NOTE: New Construction is NOTeligible unless as “last resort” OR approved Community Based Development Organization is used. CDBG APP Housing Presentation

  11. Eligible ActivitiesRevitalization Area Strategy Maximum $800,000. • Officially adopt a local Redevelopment Plan in accordance with the Urban Redevelopment Act O.C.G.A. 36-61 • Eligible area of Census Block Group(s) of 20% or greater poverty level. • Develop strong local partnerships focusing local resources within the Revitalization Area. • Submit application for designation to DCA. • Must be designated by DCA through application CDBG APP Housing Presentation

  12. CDBG HousingApplication Review Process • Application Read and Reviewed by the Housing Panel • Rank and Score based on: • Feasibility of Project • Strategy Proposed • Impact of Project CDBG APP Housing Presentation

  13. Feasibility Considerations • Property Standards • Outside Services and Resources • Lead Based Paint • Funding Sources and Commitments • Operation Oversight • Maps and Overview • Selling Your Project • Costs CDBG APP Housing Presentation

  14. Minimum Property Standards • Realistic Minimum Property Standards – you determine what standards you want in your community. • Property Standards and Construction Standards. • Code Violations and Incipient Violations. • First priority should be given to Health, Safety, and ADA compliance. CDBG APP Housing Presentation

  15. Outside Services and Resources • Identify service required and what service will be rendered. • Establish estimated cost. • Procure a FIRM commitment letter specifying on-going services on a cost-per-hour or per project basis. CDBG APP Housing Presentation

  16. Lead Based Paint (LBP) • LBP evaluation is required on any structure built before 1978. • Evaluation services must be performed by an inspector/risk assessor licensed and certified by the state. • Lead hazard control work rules are changing – See the EPA Renovation and Remodeling Final Rule (EPA RRP Rule) • Stay Tuned for EPD Presentation!! • Lead hazard control can be costly, budget 25% of estimated rehab cost. • Be prepared to seek services outside your local area. Consider travel and other expenses when preparing your estimate. CDBG APP Housing Presentation

  17. Funding, Partnerships, Other Resources. • Obtain FIRM commitment letters from all parties. • Ensure that the commitment letters are issued and signed by authorized individuals. • Pledges of support without commitment letters will not be considered. • Indicate how each will be applied, at what point will these funds be released. • Owner contributions if required. • General Property Improvements (GPI) are not funded by CDBG. • Secure firm, convincing documentation of participation from investor-owners. CDBG APP Housing Presentation

  18. Schedules and Time tables • Who will provide oversight? • Develop and show a schedule of start and completion dates. Indicate milestones and inspection points. CDBG APP Housing Presentation

  19. Contracting and Construction • Very problematic area. • Qualifying contractors: guidelines and criteria. • “Pre-Bids” and “Scope of Work”. • Bidding process and bid acceptance protocol. • Contract negotiations. • Change Orders protocol. • Draw Request and approval process. CDBG APP Housing Presentation

  20. Maps and Photos • DCA Form 12 spells out what is required on map. • Prefer map to be in common scale. • Show details: existing structures, street names, subject area(s), schools, etc. • Must include key to photographs. • Indicate status of structure (e.g. occupied, vacant, absentee owner/rental, non-targeted structure. • Indicate rehab or reconstruction. • INCLUDE FINANCIAL PLAN FORM (EXHIBIT H) CDBG APP Housing Presentation

  21. CDBG APP Housing Presentation

  22. Maps and Photos (cont.) • Photographs. • Show all 4 elevations if possible. • Interior photos should clearly represent condition of structure and problems described in narrative. • Photographs of the owner, his or her family, children, in-laws, family pets, automobiles, etc. are not required. CDBG APP Housing Presentation

  23. Unit # 10 Roof Leak CDBG APP Housing Presentation

  24. Unit #10 Roof Leak Damage CDBG APP Housing Presentation

  25. Selling it to DCA • Exactly WHAT this project will achieve. • Exactly WHY do you need this project. • Exactly WHO will the project impact. • Exactly HOW you will accomplish the project. • Exactly WHERE the target area(s) are located. • DATA, we love data! • BE SPECIFIC! CDBG APP Housing Presentation

  26. Feasibility Considerations(Lead Based Paint) • Lead-Based Paint • Regulation Applies to all Housing Built Prior to 1978 • Demonstrate understanding of regulation requirements CDBG APP Housing Presentation

  27. Feasibility Considerations • Financing Technique(s) BE SPECIFIC • Deferred Payment Loans • Leveraged Loans/Interest Buy Downs • Who are your partners • Include participation formula • Know your community! Be realistic with participation formula CDBG APP Housing Presentation

  28. Feasibility Considerations • Confirmation of proposed resources and partners • Compliance with Applicable Laws • Investor Owner Eligibility • Financing: 50%, DPL at full term. • Rent Regulatory Agreement • Timetable for proposed accomplishments CDBG APP Housing Presentation

  29. Feasibility Considerations • Unit by unit analysis of proposed activity • Include per unit cost estimate • Include description of proposed work needed with pictures illustrating problems (exterior and interior) • Complete “Financial Plan” Form (Appendix H) • Descriptive map of all units targeted CDBG APP Housing Presentation

  30. Strategy Considerations • Describe Severity of problems • Demonstrate needs in narrative AND with Pictures • Alternatives to Strategy • Discuss other possible strategies and why the strategy proposed is best for problems described CDBG APP Housing Presentation

  31. Strategy Considerations • Discuss plan to prevent re-occurrence of problems addressed in grant proposal • Adoption of policies or ordinances • Code enforcement • Ongoing maintenance CDBG APP Housing Presentation

  32. Strategy Considerations • Marketing of Program • Who has expressed interest in Program? • How will Interested be generated? • Are residents supportive of the program? • Document Commitment from Owner Occupants and Investor Owners! CDBG APP Housing Presentation

  33. Impact Considerations • Impact Of Project • Document severity of need • Describe the effect the proposed project will have on the identified needs as well as the community as a whole • How many persons will benefit • Overall CDBG Cost per person CDBG APP Housing Presentation

  34. Successful Strategies Owner Financial Participation Percent of Rehab Cost: • Required participation is fixed amount according to their income level: “Participants below 30% AMI will be required to pay $500 towards of the cost of their rehab” “Participants between 30% and 50% AMI will be required to pay $1000 towards of the cost of their rehab” CDBG APP Housing Presentation

  35. Successful StrategiesFinancial Participation • Percent of Income: • Required participation is fixed percentage of Annual Income “Participants will be required to pay 8% of their annual income” • Annual Income = $9,000 • Required Participation = $720 CDBG APP Housing Presentation

  36. Successful StrategiesFinancial Participation - Percent of Income Percent of Income (cont.): “Participants will be required to pay 8% of their annual income multiplied by the term of the DPL” • Annual Income = $9,000 • 8% of Annual Income = $720 • X 5 (length in years of DPL)=$3,600 CDBG APP Housing Presentation

  37. Successful StrategiesFinancial Participation - Percent of Income Add a sliding scale of income to percent of income… Required participation is a fixed percentage of income based on income level: “Participants whose income is below 30% of AMI are required to pay 3% of their annual income…” CDBG APP Housing Presentation

  38. Successful StrategiesFinancial Participation - Percent of Income …for higher income level: “…Participants whose income is between 30% and 50% of AMI are required to pay 6% of their annual income…” CDBG APP Housing Presentation

  39. Successful StrategiesFinancial Participation - Percent of Income …for highest income level: “…Participants whose income is between 50% and 80% of AMI are required to pay 9% of their income…” CDBG APP Housing Presentation

  40. Successful Strategies • Mandatory Homebuyer Counseling • Credit Counseling • Employment training • Holistic approach to neighborhood revitalization • Address people problems along with housing/infrastructure problems CDBG APP Housing Presentation

  41. Compliance with Regulations • Acquisition • Easements for Public Facility Improvements • Dilapidated Units • Uniform Relocation Act (URA) CDBG APP Housing Presentation

  42. Compliance with Regulations • Relocation – Permanent • Uniform Relocation Act (42 months) • Owner OR Tenant • 104(d) “Barney Frank” (60 Months) • Tenant Only (Rent to Rent) • One for One Replacement CDBG APP Housing Presentation

  43. Compliance with Regulations • Identify Available Resources • Comparable Units • Provide Basis for Relocation • Current v. available rents CDBG APP Housing Presentation

  44. Compliance with Regulations Reconstruction • Replacement of Dilapidated Unit on SAME parcel when existing unit is not feasible for rehabilitation • Owner Occupied ONLY CDBG APP Housing Presentation

  45. Compliance with Regulations New Construction Eligibility • Last Resort • No Available Resources Exist • Cost exceeds allowable limits • Application must provide credible evidence • Cheaper to build (including parcel) than purchase • Not-for-profit or for-profit developer • Approved Community-Based Development Organization CDBG APP Housing Presentation

  46. Do’s • Provide a Unit by Unit Analysis • Keyed to Map • Picture(s) of Units (Exterior and Interior) • List of Deficiencies for Targeted Units • Provide Cost Estimates CDBG APP Housing Presentation

  47. Do’s Cost Estimates: • Provide estimates based on complete walk through • Keep in Mind that Actual work may be 1 or 2 years away….Budget Appropriately • Budget for Lead Hazard Control • Program will pay all LBP Costs CDBG APP Housing Presentation

  48. Do’s • For Target Area’s: • Provide Target Area Data: • Total Number of Units • Total Number of Substandard • Total Number of Dilapidated CDBG APP Housing Presentation

  49. Do’s • For Target Area’s: • Provide Target Area Data: • Total Number of Owner Occupied • Total Number of Renter Occupied • Total Number of Vacant • Describe use where possible (rental, heir property, dilapidated, etc) CDBG APP Housing Presentation

  50. Do’s • For City/County Wide Programs • Describe how units were chosen in a fair and equitable manner • Provide description of overall housing conditions jurisdiction wide • Overall assessment of need for Housing improvements and justification for the chosen units CDBG APP Housing Presentation