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Community Planning and Development Programs

Community Planning and Development Programs

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Community Planning and Development Programs

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  1. Community Planning and Development Programs Getting Involved Through the Consolidated Planning Process

  2. Module 3 Overview • HUD’s Community Planning and Development (CPD) Formula Programs. • CDBG • HOME • HOPWA • ESG • Briefing of CPD’s Competitive Programs. • The Consolidated Plan Process and Getting Involved. • CBDOs and CHDOs.

  3. HUD’s Federal Formula Programs • Grantee: • The State or Locality that receives and distributes funding. • Formulas: • Determines which States and Localities will receive the funding and how much of it. • Money: • Allocated each year to the grantees, for each program. • Match Funds: • HOME, HOPWA and ESG require a Match.

  4. HUD Formula Programs • Community Development Block Grant, CDBG • FY 2008 Total of $3,865,800,000 • HOME Investment Partnerships Program, HOME • FY 2008 Total of $1,704,000,000 • Emergency Shelter Grant, ESG • FY 2008 Total of $160,000,000 • Housing Opportunities for Persons with AIDS, HOPWA • FY 2008 Total $300,100,000

  5. What is the Community Development Block Grant? (CDBG) The CDBG program is a flexible program that provides communities with resources to address a wide range of community development needs. It was begun through the Housing and Community Development Act of 1974. It is one of the longest continuously run programs at HUD.

  6. Primary Objectives of CDBG The development of viable communities, principally for low and moderate income persons, through: • Decent Housing • Suitable Living Environment • Expanded Economic Opportunity

  7. CDBG National Objectives Each Activity MUST meet at least one: • Benefit low- and moderate-income persons, • Prevent or eliminate slums or blight, • Urgent Need

  8. Persons Served by CDBG • Low and Moderate Income Households and persons whose incomes do not exceed 80 percent of the median income of the area involved, as determined by HUD with adjustments for household or family size. Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70 percent of CDBG funds MUST be used for activities that benefit low- and moderate-income persons.

  9. Some Eligible CDBG Activities • Acquisition of Real Property • Construction of Public Facilities and Improvements • Such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes • Rehab of Residential and Non-Residential Structures • Public Services, within certain limits • Activities related to Energy Conservation and Renewable Energy Resources • Relocation and Demolition • Housing Services, Some Homeownership Activities • Economic Development • Community Based Development Organization (CBDO) Activities (More discussion in later module) • Planning and Administration

  10. Some Ineligible Activities • Buildings for the general conduct of government and general government expenses • Political activities • New housing construction by local units of governments • Income payments • Purchase of equipment • Operating and maintenance expenses

  11. Distribution of CDBG Funds • Entitlement Program • Principal cities of Metropolitan Statistical Areas (MSA’s) • Cities with populations of 50,000 or more • Qualified urban counties with populations of 200,000 or more (not including a qualifying city). • State and Small Cities Program • States that administer the program to non-entitled cities/counties; and Hawaii

  12. How Can CDBG Funding Get to You? • You would probably be the Subrecipient, unless you are a CBDO. • A public or private nonprofit agency, authority, or organization, or a for-profit entity authorized under §570.201(o), receiving CDBG funds from the recipient or another subrecipient to undertake activities eligible under subpart C. Your local government makes the decision about which organizations to fund.

  13. HOME Investment Partnership Program (HOME) Designed exclusively to create affordable housing for low-income households. Became law in 1990.

  14. Participating Jurisdictions(PJs) • State and Local Governments, or Consortia. • Receive annual formula allocations HOME funds. • Responsible for the eligible use of funds. • A PJ may designate a “Subrecipient” (public agency or nonprofit) to administer all or a portion of its program on its behalf. You would receive funding from the PJ or the Subrecipient.

  15. Overall Key Actors in the HOME Program • State Governments • State Recipients • Local Governments • Consortia • Subrecipients • Community Housing Development Organizations (CHDO’s) • Developers, owners, and sponsors • Private lenders • Contractors

  16. Four HOME Program Types • Homeowner (Owner-Occupied) Rehabilitation • Homebuyer Assistance • Rental Development • New construction or rehabilitation • Tenant-Based Rental Assistance (TBRA)

  17. Eligible HOME Activities • Acquisition (standard properties) • Rehabilitation • New Construction • Tenant-based rental assistance

  18. Some Eligible HOME Expenditures • Hard costs (construction) • Land Acquisition • Demolition • Project Related Soft Costs • Inspections • Financing fees, etc. • Relocation Costs

  19. Some Prohibited Activities in HOME • Non-housing facilities (shelters, nursing homes, treatment facilities, other public facilities) • Emergency Repairs • Project-based rental assistance • Paying delinquent taxes on behalf of the owner • Operation, construction or modernization of Public Housing • Match for other federal programs

  20. Overview of Basic HOME Rules • All HOME funds must be used for families with incomes below 80 percent of the Area Median Income. • Deeper targeting for rental housing • HOME-funded projects are subject to affordability periods. • New construction and rehab must meet local codes and property standards and federal accessibility requirements.

  21. Other Notable HOME Features • Matching requirement • PJs must match 25 cents of every HOME dollar. • Performance standards • Funds must be committed within 2 years • Funds must be expended within 5 years • Technical Assistance funds • Awarded to intermediaries to build the capacity of qualified Community Housing Development Organizations (CHDOs).

  22. Forms of HOME Assistance • Direct Assistance • Grants • Direct Loans (interest or non-interest bearing) • Deferred Loans • Loan Guarantees • For rental, owner-occupied rehab or homebuyer programs.

  23. Limits on How Funds Can Be Spent • Administration: Up to 10% of allocation • CHDO Operating Expenses: Up to 5% • CHDO Set-Aside for development project activities: AT LEAST 15% • Remaining HOME funding is used for Project Activities.

  24. Housing Opportunities for Persons With AIDS (HOPWA) • Has both a Formula and a Competitive Program. • Eligible States and localities determined using a statutory formula that relies on AIDS statistics. • Used for housing assistance and appropriate supportive services.

  25. HOPWA • Some Examples of Eligible Uses: • Acquisition, rehabilitation and new construction of housing units • Costs for facility operations • Rental assistance • Short-term payments to prevent homelessness • Supportive Services • Mental health services • Chemical dependency treatment • Nutritional services • Case management • Assistance with daily living

  26. Emergency Shelter Grant (ESG) Purpose: To provide homeless persons with basic shelter and essential supportive services. •

  27. Emergency Shelter Grant (ESG) History: Originally established by the Homeless Housing Act of 1986 Incorporated into subtitle B of title IV of the McKinney-Vento Homeless Assistance Act in 1987.

  28. Emergency Shelter Grant (ESG) Grantees: • State governments, metropolitan cities, urban counties, and U.S. territories • Grantees make the funds available to eligible recipients, which can be local government agencies or private nonprofit organizations. Matching Requirement: • Local ESG grant funds must be matched dollar for dollar with locally-generated amounts. • States do not have to match the first $100,000 of ESG assistance that they receive.

  29. Five Categories of ESG Eligible Activities • Rehab or conversion of buildings into homeless shelters   • Operating expenses and maintenance of the shelter • Essential supportive services  • Short-term homeless prevention activities • Administration of the grant  

  30. HUD’s Definition of Homelessness • Based on primary nighttime residence • Includes individuals and families • Must be living in one of the following: • Places not meant for human habitation; • Emergency shelter; or • Transitional housing for homeless persons who originally came from streets or emergency shelter

  31. HUD’s Definition of Homelessness • Does not include: • Persons living in substandard housing • Persons living in overcrowded housing situations • Persons that are wards of the state • Persons being discharged from institutions where housing placement is condition of release • Persons living with family/friends

  32. Chronic Homelessness HUD is focused on ending chronic homelessness • Definition of a chronically homeless person: “Either: • An unaccompanied homeless individual with a disabling condition who has been continuously homeless for a year or more, OR • An unaccompanied individual with a disabling condition who has had at least four episodes of homelessness in the past three years.”

  33. Competitive Programs In the Office Community Planning and Development (CPD) • The Continuum of Care • Homeless Competitive Grants • Other CPD Competitive Grants Certificate of Consistency with the Consolidated Plan

  34. The Continuum of Care (CoC) HUD’s Homeless Assistance Plan HUD believes the best approach for alleviating homelessness is through a community-based process that provides a comprehensive response to the diverse needs of homeless persons.

  35. Continuum of Care Basics “A collaborative funding approach that helps communities plan for and provide a full range of emergency, transitional, and permanent housing and service resources to address the various needs of homeless persons.”FY 2007 SuperNOFA • Locally organized • Includes designated lead agency and contact person • Geographically based

  36. Housing and service providers Nonprofit organizations Public housing authorities Advocacy groups Community and faith-based organizations State and local government agencies Housing developers and other private businesses Private agencies, like health care organizations Law enforcement and corrections School systems Private funding providers Homeless or formerly homeless persons Overview of Continuum of Care A CoC system is developed through an inclusive, community-wide or region-wide process involving:

  37. Continuum of Care Veterans Services Government Mental Illness CoC Planning/Coordinating Organizations Businesses Banks Housing Developers HIV / AIDS Foundations Service Providers Educators Homeless Persons Neighborhood Groups

  38. Five Basic Components of Continuum of Care • Outreach and assessment to identify the needs and conditions of homeless persons. • Immediate (emergency) shelter with appropriate supportive services. • Transitional housing with appropriate supportive services. • Permanent housing or permanent supportive housing. • Prevention strategies.

  39. Continuum of Care (CoC) Competitive Homeless Assistance Programs • Supportive Housing Program (SHP) • Shelter Plus Care (S+C) • Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) Program for Homeless Individuals

  40. Supportive Housing Program (SHP) • Provides housing, including housing units and group quarters. • Combine supportive services and housing to help homeless persons to live as independently as possible. • Three overall goals: • Achieve residential stability • Increase skill levels and/or incomes • Obtain greater self-determination

  41. Shelter Plus Care (S+C) • Provides housing and supportive services on a long-term basis for homeless persons with disabilities, and their families. • Rental assistance for hard-to-serve homeless persons with disabilities. • Works in connection with supportive services funded from sources outside the program.

  42. Single Room Occupancy Program • Provides rental assistance for homeless persons in connection with the moderate rehabilitation of SRO dwellings. • SRO housing contains units for occupancy by one person

  43. Resources • Homeless Resource Exchange (HRE): • • HUD’s web site: • •

  44. Other CPD Competitive Programs • HOPWA Competitive Program • Self-Help Homeownership Opportunity Program (SHOP) • Rural Housing and Economic Development (RHED) • Brownfields Economic Development Initiative (BEDI) • Linked to the Section 108 Loan Guarantee program. • Technical Assistance • HOME • CHDO TA • McKinney-Vento Homeless Assistance Programs HOPWA

  45. When Considering Federal Funding, Ask Yourself… • What are the priorities of your community? • Does your program/project meet those priorities? • Are you already doing the types of projects serving the target population sought by the funding program? • Does your organization have the capacity and experience to use and manage the funding? • Is your organization financially prepared to manage federal funding and can you meet the required match?

  46. The Consolidated Plan Why Should You Care? Money!!! Primarily Benefits Low-income Persons and Families! Opportunity for Empowerment! Get on Your Community’s Radar!

  47. Why the Consolidated Plan Process is Important It is THE process for how your organization can be regularly and actively involved in your City, County or State's planning and funding process.

  48. Benefits to Getting Involved • Community Involvement • Influence • Funding • Accountability • Potential Access to CPD’s Formula Programs

  49. Roots of the Con Plan Comprehensive Housing Affordability Strategy (CHAS) • Created in 1990, Title 1 National Affordable Housing Act; aka Cranston-Gonzalez Act • Aim to develop Annual Housing Goals

  50. The Consolidated Plan A collaborative process whereby a community establishes a vision for housing, community and economic development actions Purposes • “Application” for Formula Funding for States and Localities • Planning Document • Performance Reporting