CDBG Stimulus Competition

1. CDBG Stimulus Competition The Georgia Department of Community Affairs

2. Background on Supplemental CDBG Stimulus Funds • Supplemental Appropriation through the ‘‘American Recovery and Reinvestment Act of 2009’’ (ARRA); • ARRA Uses Existing FFY 08 CDBG Delivery Systems • Entitlement Programs • $11,108,569 • Non-Entitlement State Program (DCA) • $10,866,994 • Adapt Existing Systems Through a Substantial Amendment of Approved (by HUD) FFY 08 Plans

3. Background on Supplemental CDBG Stimulus Funds • ARRA Objective of Jobs and Economic Growth Through CDBG • Conformance with CDBG Statute, Regulations and Guidance supplemented by specific federal ARRA requirements • Funds are “Available Until” 9/30/2010 • Priority to projects that can award contracts within 120 days • HUD guidance expected on “expediting” use of funds and certain waivers • “Buy American” Provisions

4. Specific Federal ARRA Guidance • White House (OMB) Guidance Re ARRA • Transparent merit-based decision-making • Long-term public benefits should support • demonstrated ability to deliver results • maximum efficiency in creating or retaining jobs • cost per job must be considered • Investments in technological advances to improve quality of life and economic efficiency • Targeting Assistance Consistent With Other Policy Goals • Collaboration Between Agencies (SBA, Commerce, Labor, Education (Colleges and Universities), etc)

5. Update and Changes to DCA Guidance • All Materials Located on DCA Web Site • www.dca.ga.gov/communities/CDBG/programs/cdbgstimulus.asp • Stand Alone CDBG Stimulus Competition • Due Date of June 1, 2009 (COB or Postmarked) • Reevaluation following publication of HUD Notice • All State CDBG Communities are Eligible • Possible Exceptions for Slow Performers, Unresolved Findings and Sanctions, RLFs with liquidity • New CDBG Stimulus Applicants’ Manual

6. Special ARRA / CDBG Competitiveness Provisions • Most Competitive Projects will have • Maximized job creation and retention • Utilization of full-time equivalent calculation • Completed acquisition of any needed real estate • Obtained required permitting is complete • Completed & approved architectural & engineering • Assurance regarding “Buy American” provisions • Completed NEPA review requirements • No site assessment liability issues (Phase I & II) • Assessed within the rating and selection criteria

7. Special ARRA / CDBG Competitiveness Provisions • Note that local governments are encouraged to consider regional approaches to job creation and economic growth. Regional approaches will obtain consideration of combined demographics which will be more competitive than “stand-alone” applications.

8. Application of CDBG National Objectives • (1) Benefiting low- and moderate- (L/M) income persons • (2) Addressing slums or blight; or • (3) Meeting a particularly urgent community development need • For CDBG Stimulus only, the State will lower the L/M threshold to 51% • Therefore ALL national objectives will be accepted but be required to meet the L/M 51% threshold • For job creation projects where permanent employees are taken from certain state training programs, an assumption of L/M benefit exists

9. Eligible State CDBG Applicants • All local governments which were “non-entitlement” governments for FFY 2008 and eligible for the State CDBG Program are eligible for the CDBG Stimulus competition • Receipt of a 2008 or 2009 annual CDBG grant does not preclude a local government from applying for CDBG Stimulus funding • Public and private “Sub-recipients” are not directly eligible for State CDBG; rather, they must work through a sponsoring local government(s)

10. Eligible State CDBG Activities • ARRA directs that grantees use Stimulus funds to maximize job creation, economic benefit and for activities that can be initiated within 120 days. Such projects may involve any eligible CDBG activity; however, to the extent that the minimum benefit threshold to LMI persons is met, the Department recommends that the following activities be considered …

11. Eligible State CDBG Activities Direct Assistance to Private Businesses • The provision of assistance to private, for-profit entities (including small businesses and micro-enterprises), when the assistance is appropriate to: • create or retain jobs for low- and moderate-income persons; • prevent or eliminate slums and blight; • meet urgent needs; • create or retains businesses owned by community residents; and • assist businesses that provide goods or services needed by, and affordable to, low- and moderate-income residents

12. Eligible State CDBG Activities Direct Assistance to Private Businesses • Recipient – City Government • Sub-Recipient – Small Business • CDBG Loan - $210,000 • Project – Rehabilitation • Private Investment - $310,000 • Seven (7) Permanent Jobs Made “Available To” LMI • Private/Public Investment eliminated blight, created small business owned by community resident that provides needed services to a LMI community

13. Eligible State CDBG Activities Direct Assistance to Private Businesses • The provision of assistance to private, for-profit entities (including small businesses and micro-enterprises), could also be structured through an regional application that uses a intermediary regional organization: • the intermediary regional non-profit entity could establish an agreement with the applicant local governments to become a CDBG “sub-recipient” to re-loan the assistance to eligible for-profit businesses, microenterprises or non-profits that themselves make loans to micro-enterprises • RDC’s, regional development authorities, nonprofits and similar entities with proven track records may qualify – call DCA to discuss…

14. Eligible State CDBG Activities Public Works and Public Facilities • The acquisition, construction, reconstruction, or installation of public works, facilities (except for buildings for the general conduct of government), and site or other improvements. • “public works” …. Publicly-owned water, sewer, gas, drainage, rail, fiber, etc that will be extended to an industrial or commercial business, corporation or small businesses to promote job creation • Creative use of a public lease (i.e. development authority) can qualify facilities as “public” • “publicly-owned facilities” … job training or workforce development centers, health centers, business incubators • Again, creative use of public leases combined with collaborative partnerships with colleges, hospitals, research institutes, etc.

15. Eligible State CDBG Activities Public Works and Public Facilities • The acquisition, construction, reconstruction, or installation of public works, facilities (except for buildings for the general conduct of government), and site or other improvements. • This activity can also be used to assist traditional CDBG neighborhood revitalization projects (competitive?)

16. Ineligible State CDBG Activities • Pursuant to ARRA, certain activities are specifically excluded from eligibility, including: casinos or other gambling facilities; aquariums; zoos; golf courses; swimming pools and similar recreation projects. • Note that these activities have NEVER been eligible for Georgia’s State CDBG Program • Also, it is unclear from the ARRA legislation whether state or local administration is an eligible activity. DCA will provide information on administrative cost eligibility as soon as HUD provides guidance.

17. State CDBG Grant Amounts • Maximum of $500,000 per award • Note CDBG cost per job or beneficiary is a major competitive factor • Receipt of a 2008 or 2009 annual CDBG grant does not preclude a local government from applying for CDBG Stimulus funding • “Sub-recipients” are not directly eligible for State CDBG; rather, they must work through a sponsoring local government(s)

18. State CDBG Other Application Notes • Applications may be submitted individually by one unit of general purpose local government, or jointly, by two (2) or more units of general purpose local government. Joint submissions must contain a copy of the Cooperating Agreement entered into by the cooperating units of government. The agreement should designate the unit of local government that will serve as the lead applicant. • Multi-government regional applications are encouraged for small business development projects

19. Applicant Citizens Participation • Applicants must follow the Department’s approved Citizen Participation Plan available on the DCA website at www.dca.ga.gov/communities/CDBG/ • Applicants for and recipients of CDBG Stimulus funds must certify that they will follow this plan and provide for and encourage participation in the planning, implementation and assessment of their CDBG program • See Applicants’ Manual

20. Review Factor Max Points Available Unemployment/Demographic Need 60 points Program Feasibility 150 points Program Impact 150 points Program Strategy 100 points Bonus for Project Readiness 40 points Total Available Points 500 points Competitive Rating and Review Criteria

21. Final Competitive Rank and Selection • Final Ranking and Grant Selection: • The points received by each applicant on the rating factors will be totaled and the total scores ranked accordingly. Grant awards will be based on this final ranking to the extent funds are available. In case of ties, the applicant with the highest unemployment score will be given priority. • Transparent, merit based system. Detailed explanations of scores will be available to all Applicants

22. Unemployment & Demographic Score 60 Points Available • Number of People Unemployed (20 points) • Percent of People Unemployed (20 points) • Per Capita Income (20 points)

23. Unemployment & Demographic Score 60 Points Available • Note that for unemployment criteria each eligible local government will be compared in terms of the number and rate of people unemployed. Individual scores will be obtained by dividing each government’s number of persons or rate by the greatest number of persons or rate unemployed and multiplying it by 20 • Note that for non-entitlement cities, unemployment numbers and rates will be estimated by applying the latest Georgia DOL unemployment data for a particular county and prorating based on the jurisdiction’s population.

24. Unemployment & Demographic Score 60 Points Available • All eligible local governments will be compared in terms of their per capita income. • Individual scores will be obtained by dividing each government’s per capita income into the lowest per capita income of any eligible local government and multiplying by 20. • Data sources for per capita income include the most recent data from Claritas, Inc. for each jurisdiction.

25. Feasibility Score 150 Points Available • The following factors will be considered wherever applicable: • Ability of the applicant to have the project bid and contract awarded within 120 days; • Reasonable project timetables; • Completion of all necessary engineering, architectural, and/or site plans and designs; • Completion and documentation of all necessary property acquisition; • Completion of all required local, state, and federal permits (environmental, historic preservation, NEPA, etc. as applicable) • Absence of, or complete resolution of, environmental remediation needs;

26. Feasibility Score 150 Points Available • Documentation and reasonableness of costs; • Where applicable, documentation that preliminary engineering, architectural or site plans have been prepared and support the proposed project; • Documentation of funding commitments from other project funding sources; • Demonstration of compliance with applicable local, state, and federal laws; • Administrative capacity of the applicant to administer funds and demonstration of adequate CDBG implementation history; • Determination by DCA that partnering organizations, businesses and/or sub-recipients are reputable, able to perform and credit worthy; and • Documentation that all applicable financing is ready to invest.

27. Feasibility Score 150 Points Available

28. Impact Score 150 Points Available • Number of temporary construction jobs/beneficiaries created and/or retained (FTE); • Number of permanent jobs/beneficiaries created and/or retained (FTE); • CDBG Stimulus cost per job/beneficiary; • Project's impact on local unemployment rates; and • Project’s impact on the benefiting populations’ quality of life or opportunity for economic advancement.

29. Impact Score 150 Points Available • Calculation of Full Time Equivalent (FTE) positions for construction and permanent jobs • To calculate FTE’s one will determine the start and end date of the temporary job, calculate the total hours worked of all temporary workers, and divide by 40 to arrive at the FTE number • Note that created permanent jobs must meet the Low-and Moderate-Income national objective • DCA Certification & Release Form for each job • Both construction and permanent jobs will need to be reporting

30. Impact Score 150 Points Available

31. Strategy Score 100 Points Available • Project’s relationship to overall objectives of the general CDBG and ARRA to use funds in a manner that maximizes job creation and economic benefit, especially with respect to permanent job creation for low and moderate income person; • Demonstration of local government’s need for Stimulus funds due to financial or economic constraints resulting from the current state of the economy; • Demonstration of local government’s or sub-recipient’s capacity to operate and maintain facility/infrastructure proposed to be funded with Stimulus funds; and • Demonstration of capacity of proposed sub-recipients for administration, accountability and meeting investment commitments. • Regionalism is encouraged as one method to enhance capacity

32. Strategy Score 100 Points Available

33. Bonus Points for Readiness 40 Points Available • Completion of all required designs—15 points; • Acquisition of all applicable local, state, and federal permits—10 points; • Completion of bid documents—10 points; • Completion of NEPA environmental review— 5 points;

34. Accountability and Oversight • If funded, your project will be extensively monitored and audited by both state and federal agencies and resources • Local governments must make it a priority to know and understand the details of the CDBG and ARRA compliance requirements within the Applicants Manual • If improperly designed and implemented, the Department will disallow costs, apply sanctions and require the repayment of misspent funds

35. Reporting Requirements • If funded, your project will be subject to the quarterly outcome and financial reporting requirements for State CDBG • In addition, DCA will modify to include provisions for FTEs and temporary (construction) jobs • Davis-Bacon and Labor Standards reporting requirements will apply and recipients will be responsible for obtaining and monitoring required payroll information • Other reporting requirements may also be required by HUD and OMB as the program develops

36. Contact Information • www.dca.ga.gov/communities/CDBG/programs/cdbgstimulus.asp • cdbg.stimulus.questions@dca.ga.gov • Steed Robinson, 404-679-3168 • Joanie Perry, 404-679-3173 • Glenn Misner, 404-679-3138 • Brian Williamson, 404-679-1587