Public Hearing Community Development Block Grant Disaster Recovery (CDBG-DR)2

1. Public HearingCommunity Development Block Grant Disaster Recovery (CDBG-DR)2 Agency of Commerce and Community Development Department of Economic, Housing and Community Development White River Junction, VT June 27, 2013

2. Community Development Block Grant – Disaster Recovery (CDBG-DR)2 PUBLIC HEARING AGENDA Overview CDBG-DR – Requirements Proposed Timeline Draft Action Plan Clarifying Questions & Answers Public Input

3. Community Development Block Grant – Disaster Recovery (CDBG-DR) Overview • Federal Register Notice – Official Notice • Funding from the U.S. Department of Housing & Urban Development (HUD) • Released, May 29, 2013 • Effective, June 3, 2013 • Follows & includes rules in other Sandy Federal Register notices release 4/19/13 & 3/5/2013 • Presidentially-declared disasters • DR-1995, April 23-May 9, 2011 Flooding • DR-4001, May 26-27, 2011 Flooding • DR-4022, August 27-September 2, 2011 Tropical Storm Irene • *DR-4043, May 20, 2011 Flooding* • *DR-4066, June 29, 2012 Tornado & Flooding*

4. Community Development Block Grant – Disaster Recovery (CDBG-DR) What Does this mean for VT? $17,932,000 CDBG-Disaster Recovery funding Assist communities with disaster relief, long-term recovery and restoration of: Infrastructure Housing Economic Development

5. Community Development Block Grant – Disaster Recovery (CDBG-DR) Allocation based on HUD’s best available data of unmet needs for all affected areas from Presidentially- declared disasters that occurred in 2011 and/or 2012. Allocation Methodology- Federal Register- Appendix A. pg. 32266 Ensure funds address unmet needs within the “most impacted and distressed” counties and municipalities In VT at least 80% ($14,345,600) must be expended in Washington, Windsor and Windham Counties

6. Community Development Block Grant – Disaster Recovery (CDBG-DR) Requirements Funds must be targeted “Most impacted or distressed areas” In VT at least 80% ($14,345,600) must be expended in Washington, Windsor and Windham Counties At least 50% of funds must directly benefit low and moderate income person At least $8,966,000 80% and below area median income (AMI) Up to 50% of funds may assist activities under Urgent Need or prevention/elimination of slums and blight

7. Community Development Block Grant – Disaster Recovery (CDBG-DR) • 2 Year Expenditure Requirement • Duplication of Benefit -Assistance provided deducted from estimated damage • Insurance • FEMA assistance • SBA disaster loans -Subrogation Agreement • Must repay Federal Disaster Assistance • If other funds are received at a later date • Discovery of available funds at a later date

8. Community Development Block Grant – Disaster Recovery (CDBG-DR) Flood Insurance Requirements Property located in 100 year flood plain or Special Flood Hazard Area (SFHA) – must maintain flood insurance If not maintained, no additional future assistance to the property Duty to Notify in event of transfer of property Environmental Review Caution – Historic Preservation/Archaeological issues 8 Step Flood Plain process Procurement Competitive process, open and fair Cannot be Debarred, Excluded Parties List

9. Community Development Block Grant – Disaster Recovery (CDBG-DR) Labor Standards Davis Bacon wage rates Not applicable to owner-occupied, single family Not applicable to <8 units of multi-family Affirmatively Furthering Fair Housing Civil Rights and Fair Housing Act

10. Community Development Block Grant – Disaster Recovery (CDBG-DR) Timeline • State must submit Certification to HUD by July 3rd • State must develop and release Draft Action Plan to public by August 23rd • State will have a minimum 7 day Public Comment Period on Draft Plan and Submit Final Action Plan to HUD by Sept 3rd • HUD issues approval within 45 days • Must draw funds within 60 days

11. Community Development Block Grant – Disaster Recovery (CDBG-DR) • Action Plan must be amended within 90 days of approval to include projection of expenditures & outcomes • Action Plan considered a living document • Will be amended as projects are awarded • Substantial Amendments • Change in Program benefit or eligibility • Allocation or re-allocation of $1 million • Deletion or addition of an activity

12. Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Buyouts of flood damaged properties in flood plain; Rehabilitation of homes and buildings damaged by the disaster; Relocating residents, local government facilities and businesses to safer areas;

13. Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Repair and reconstruction of municipal infrastructure – roads, culverts, buildings; Homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees;

14. Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses • Business financial assistance • Create or retain jobs • Interest rate buy downs • Rent subsidies • Lost rental revenue • Downtown Revitalization

15. Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses • New housing production to replace lost units • Public services, counseling • Matching funds • Economic Development Authority grants (EDA) • Hazard Mitigation Grant Program (HMGP) • Debris removal not covered by FEMA or other available resources;

16. Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Debris removal not covered by FEMA, or other resources Disaster recovery planning; Grant administration and program delivery costs.

17. Community Development Block Grant – Disaster Recovery (CDBG-DR) CDBG-DR 1 Funding up-date • Total Allocation $21,660,211 • State Administration (5 yrs) $ 1,083,011 • Grant Total $20,577,200 • Competitive Grants $ 8,750,000 • State Direct Grants $ 9,661,179 • Contingency (10%) $ 2,166,021

18. Community Development Block Grant – Disaster Recovery (CDBG-DR) CDBG-DR 1 Funding up-date Competitive Grants Awarded $6,072,182 State Direct Grants Awarded $9,661,179 Total Awarded as of 6/1/13 $15,733,361 • Competitive Remaining $2,677,818 • Contingency (10%) $2,166,021 • Total Remaining $4,843,839

19. Community Development Block Grant – Disaster Recovery (CDBG-DR) DRAFT Action Plan – Development • Assessment of remaining Unmet Needs • Analysis of Data - Recovery efforts to date • CDBG-DR 1 Grants/projects with additional needs- (buy-outs, business assistance, public housing & mobile-home park relocation) • Housing • Business community (including Agriculture & Downtowns) • Infrastructure - roads, culverts, bridges, buildings • Planning

20. Community Development Block Grant – Disaster Recovery (CDBG-DR) DRAFT Action Plan – Development Letters of Interest (LOI’s) Consultation with partners & agencies Public Input Balanced with HUD requirements (targeting, expenditure timelines, LMI)

21. Community Development Block Grant – Disaster Recovery (CDBG-DR2) Public Hearing Commences Adjourn E-Mail Comments - ACCD.CDBGDisasterRecovery@state.vt.us http://accd.vermont.gov/strong_communities/opportunities/funding/cdbgdr

22. Community Development Block Grant – Disaster Recovery (CDBG-DR) Staff Contact Information Josh Hanford, CD Director Josh.Hanford@state.vt.us Ann Karlene Kroll, Grants Management Director AnnKarlene.Kroll@state.vt.us George Sales, Grants Management Specialist George.Sales@state.vt.us Nathan Cleveland, Community Development Specialist Nathan.Cleveland@state.vt.us