Community Development Block Grant CDBG 201 Training Program Day 1

1. Community Development Block Grant CDBG 201 Training Program Day 1 Building Better Communities One Project at a Time

2. Day One Agenda 8:30 Registration 9:00 Welcome, Introductions & Overview 9:15 Review of CDBG 101 9:30 Community Visit 10:00Grant Writer Decision Making Time 10:15 Break 10:30 Income Survey 11:15 Exercise #1 – Complete An Income Survey 12:00 Lunch 1:00 Planning Grant Application Review 1:20 Step 1: Communicate with CL 1:30 Step 2: Procurement 2:15 Break 2:30 Exercise #2 – Competitive Negotiation Procurement Process 3:00 Step 3: Negotiate and Prepare Draft Contract for Services 3:15 Step 4: Citizen Participation 3:30 Step 5: Completion of Planning Grant Application 3:35 Review Planning Grant Application Form 4:00 Class Dismissal

3. Introductions Shannon McLeod Priority Project Resources, Inc. 531 Sycamore Trace Greensburg, IN 47240 Phone: (812) 663-7385 Mobile: (317) 695-4434 Email: Shannon@pprgrant.com Certified: Since 1992

4. CDBG 201 Training Overview Provide a basic overview of the federal regulatory requirements affiliated with the development of CDBG project from conception to the application stage (Project Development). This course will focus on both Planningand Construction Grant CDBG applications.

5. A Review of CDBG 101 Program Overview

6. “What We Learned in 101” • Stands For: Community Development Block Grant (CDBG) • Type of Funds: Federal Funds • Come From: US Housing & Urban Development (HUD) • Given To: State Governments & Entitlement Communities • Indiana Office of Community & Rural Affairs (OCRA) • Entitlements = Areas with Population of 50,000 or More • Used For: Community-Related Projects that Better the Quality of Life and Help Stabilize or Improve the Community’s Overall Economic Condition

7. “What We Learned in 101” Applicants: Non-Entitlement Cities Incorporated Towns Non-Entitlement Counties Sub-Recipients: Not for Profits or Sub Units of Municipality that CANNOT Apply on Their Own Behalf

8. “What We Learned in 101” Grant Fundability Fundability = Eligible Activity + National Objective

9. Eligible Activities What types of projects will OCRA fund as per Section 105(a) of the HCDA (Housing Community Development Act)?

10. Ineligible Activities What types of projects will OCRA NOT fund as per Section 105(a) of the HCDA (Housing Community Development Act)?

11. Combination of Eligible & Ineligible Activities Your project may include eligible and ineligible activities, but basic program requirements must be followed. Environmental Review Procedures Establishment of the CDBG only area is clear CDBG request is limited to only the costs of the eligible activity Costs must be separated and accounted for Fees for use of the facilities must be affordable for LMI persons

12. “What We Learned in 101” Three (3) National Objectives per 24 CFR 570.489 Benefit to Low and Moderate Income Persons (70% of CDBG funds) Prevention or Elimination of Slum and Blighted Conditions Urgent Need Administrators Need to Know

13. “What We Learned in 101” Benefit to Low & Moderate Income Persons Elimination or Prevention of a Slum / Blight Urgent Need Area Basis Area Wide Spot Basis Limited Clientele Housing Job Creation / Retention Know the 3 National Objectives and their Sub-Categories

14. Benefit to Low and Moderate Income Persons Four (4) Attainment Methods Area Benefit Benefit to Limited Clientele Housing (IHCDA) Job Creation / Retention (Program Has Been Suspended In Indiana)

15. Area Benefit • The area must be at least 51% LMI per the Census Data or Income Survey • Project activities must benefit ALL residents in the project area • Project area must be primarily residential • Example projects include: water treatment plant, community center, etc.

16. Benefit to Limited Clientele • Specific group of individuals to be served – not area wide • Document that at least 51% or more of the clientele families are LMI • Income Eligibility Requirements Limit activity to LMI persons (day care, public services, etc.) • Location and nature of activity primarily serves LMI persons (community / youth center for public housing complex) • Example projects include: senior centers, daycare centers, etc.

17. Eight Presumed Limited Clientele Abused Children Battered Spouses Elderly (62 and older) Severely Disabled Adults Homeless Persons Illiterate Adults Persons Living with AIDS Migrant Farm Workers

18. Prevention or Elimination of Slums or Blight Area/Spot must be officially delineated by the local government and must meet a definition of slum, blighted, deteriorated or deteriorating area under state or local law.

19. Prevention or Elimination of Slums or Blight Two (2) Attainment Methods • Area Basis: clearly eliminating objectively determinable signs of slums or blight in a defined area. 2. Spot Basis: strictly limited to eliminating specific instances of blight outside such an area and is a single property.

20. Area Basis At least 25% of properties in area experience two (2) or more of the following conditions: • Physical deterioration of building or improvements • Abandonment of properties • Chronic high turnover or vacancy rates in commercial or industrial buildings • Significant declines in property values or abnormally low property values • Known or suspected environmental contamination • Area public improvements are deteriorated

21. Area Basis Required Documentation for Area Basis Slum/Blighted: • Define the boundaries of the delineated area • Identify all building and public improvement conditions demonstrating blight • Describe activity addressing the condition that led to blight in area • Review and re-determine every 10 years that area is qualified Example Activities designed to address slum blight on an Area Basis include: • Renovation and reuse of abandoned historic buildings • Commercial revitalization through façade improvements

22. “What We Learned in 101” OCRA CDBG Program Planning Grants Figure Out What Needs to Be Done Construction Grants Implement the Improvements to Solve the Problem

23. OCRA CDBG Program

24. Project Development Let’s Get This Project Started!

25. WELCOME TO AKRON AKRON Population 1,059

26. Town Council President Jim Rachel Sam Water Utility Staff Clerk Treasurer Travis Melissa Louie

27. AKRON NEEDS HELP !!!! CITIZENS ARE MAD !!! IDEM POSSIBLE ENFORCEMENT SEWER BACK-UP IN HOMES NO MONEY TO FIX IT !!! GUYS ARE WORKING OVERTIME SYSTEM IS OLD / UNDERSIZED

28. Grant Writer Meeting

29. LISTEN LEARN INVESTIGATE

30. Grant Writer Decision Process

31. Eligible Activities Is This Project Considered Eligible? ___________________________

32. National Objective Benefit to Low & Moderate Income Persons Elimination or Prevention of a Slum / Blight Urgent Need Area Basis Area Wide Spot Basis Limited Clientele Housing What National Objective Should It Meet? _________________________________________ Job Creation / Retention

33. Planning Grant Available Funding • Environmental Assessment Studies will be limited to $15,000. • Infrastructure Studies are limited as follows: • $35,000 for a study on a single utility, • $45,000 for a study on two utilities, and • $50,000 for a master utility study (water, wastewater, and storm water). • Dam or Levee System Evaluations will be limited to $50,000. • Comprehensive plans are limited to $40,000. • Downtown revitalization plans are limited as follows: • Populations over 2,000 are limited to $40,000, and • Populations under 2,000 are limited to $30,000 • Economic development plans are limited to $40,000. • Public facilities plans (including libraries, community centers, parks, etc.) will be limited to $20,000. • Historic preservation plans will be limited to $20,000. • All Projects Will Require a Minimum of a 10% Local Match What’s the Level of Grant Funding & Local Match? __________________

34. Are There Any Obstacles? • In order to apply for a CDBG grant via OCRA, the Grantee must make sure they have an Eligible Activity that meets a National Objective. • In addition, the following criteria must be met: • Resolve any unresolved monitoring/audit findings; • Submit any overdue grant reports or close-out documents; • Must not have… • For cities and towns: two (2) open CDBG Grants at the time of application; • For counties: three (3) open CDBG Grants at the time of application; • An open CDBG Grant that has not received Release of Funds; • If a community has an open CDBG Grant, the community must have an executed construction contract and be under construction, or a consultant under contract for planning grants before the community may apply for an additional CDBG Grant. What’s the Community’s Situation? ___________________________

35. 15 Minute Break After the day’s class, the teacher asks the student the formula for water. Teacher: Faith, what is the chemical formula for water? Faith: H I J K L M N O. Teacher: (frowning) What are you talking about? Faith: Yesterday, you said it’s H to O.

36. Income Survey

37. Prior To Income Survey • Prior to conducting an income survey, applicants must receive approval from OCRA • Obtain Current LMI Data from HUD mapping application found in CPD-19-02: Low- and Moderate- Income Summary Data Updates:

38. Prior To Income Survey • Along with current LMI data, submit the service area of your project (defined later), and a justification letter from the CEO on applicant letterhead; • The justification letter should have specific economic or demographic reasons that latest HUD estimate data is inaccurate.

39. Purpose Of Income Survey • Determine if the Project Activity can meet the Low to Moderate Income CDBG National Objective • Obtain demographic information from survey area residents.

40. Goal of Income Survey At least 51% of the residents benefiting fromthe CDBGprogram must live in households earning 80% or less than the area's MedianFamily Income as determined by HUD. The Median Family Income Thresholds Change Every Year (Check OCRA’s Website for Most Current Numbers Prior to Starting Any Income Survey!!!)

41. Accuracy of Income Survey HUD will generally accept the state and local determination of the service area unless the nature of the activity or its location raises serious doubt about the area claimed by the state and its grant recipients.

42. Boundaries of Income Survey Keys to meet LMI area national objective: • Service area decided based on the activity beneficiaries • Critical that the service area be the entire areaserved by the activity (see 24 CFR 570.483(b)(1)(i)) • Need not be coterminouswith census tracts or other officially recognized boundaries

43. Boundaries of Income Survey Service Area Boundary Examples Include: • Storm drainage project serves residents in part of community; • Fire station project serves community and rural unincorporated area of 2 or more counties; or • Rural water district serves community and portion of the rural area.

44. Defining the UNIVERSAL Population • Need an accurate method to identify all households in survey area • City indexes and telephone books and 911 maps are helpful • Not everyone has a telephone • Tax rolls can mislead • www.reversephonedirectory.com • Utility customer listings UNIVERSAL POPULATION

45. Income Survey Methods Two Methods of Surveys 1. Census (100% Survey of Service Area) 2. Sampling (Random Sample of Service Area)

46. Census Method Census method for survey of population for small communities and rural areas okay if: • Local unit of government illustrates how calculated • LMI persons calculated from entire population local unit of government • Service area population not calculated based on the respondents to the survey. • In the event some do not wish to respond, those households must be counted as ABOVE the specified income limit

47. Census Method 100% Participation 51% of the population surveyed must be LMI residents; which means 51% of the UNIVERSAL LISTrespondents within the ENTIRE community must be LMI. In the event some do not wish to respond, those households must be counted as ABOVE the specified income limit.

48. Random Sampling Method Sampling of the Universal Population Means 51% of the MASTER LIST respondents of the Community Sampling must be LMI. Universal List = Every Household in Population Master List = Random Sampling of Households to Be Surveyed.

49. Random Sampling Method Selecting the Sample from the Universal Listing • Need to define survey population (service area) • Determine upfront how many households need to be interviewed. • You can’t add to the sample later down the road in hopes of achieving the 51%. • Use Random Sample Calculatorto determine how many household need to be interviewed (Master Listing). • The sample size calculator can be found at: https://www.surveymonkey.com/mp/sample-size-calculator/ • The OCRA Houses and Population Sample Size Tool will help you determine the population size and number of households to survey: https://www.in.gov/ocra/2617.htm

50. Random Sampling Method