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Change at Ohio Department of Development

Ohio’s Strategy for Change: Maximizing Opportunities with Limited Funding Resources Mike Hiler, Deputy Chief Office of Community Development. Change at Ohio Department of Development. Office of Community Development Organizational Structure.

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Change at Ohio Department of Development

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  1. Ohio’s Strategy for Change: Maximizing Opportunities with Limited Funding ResourcesMike Hiler, Deputy ChiefOffice of Community Development

  2. Change at Ohio Department of Development

  3. Office of Community Development Organizational Structure The Office of Community Development (OCD) provides financial and technical assistance to local governments and nonprofit organizations for project activities that benefit low and moderate-income citizens and enhance the competitive assets of the state. OCD is divided into three core administration categories: Affordable Housing - $ 9.5 million CDBG $15.8 million HOME $ 1.0 million OHTF Community and Economic Development* - $28.3 million CDBG Homelessness and Supportive Housing* – $ 5.1 million ESG $ 1.2 million HOPWA $20.0 million OHTF *Does not include Discretionary, New Horizons, Admin or TTA

  4. CDBG Funding 2002-2012

  5. Addressing the Reduction in CDBG Funds • In FY 2011 the total HUD CDBG allocation to OCD was reduced by nearly 17% from FY 2010 that corresponded to a reduction in funds for certain programs. • The FY 2012 HUD CDBG allocation reduced by an additional 7% • In order to address the reduction in funds OCD has proposed completely changing many of the core programs. • OCD divided the office into three separate funding categories: • Affordable Housing • Community and Economic Development • Homelessness and Supportive Housing

  6. Core CDBG Programs • Rural Single-Family Housing • Neighborhood Revitalization • Residential Water and Sanitary Sewer • Economic Development • Loans • Public Infrastructure Grants

  7. ODOD Strategic Plan Overview

  8. The Foundation of the Mission The programs that OCD administers: • attract, expand and retain business and industry to create and retain long-term jobs in the private sector; • improve and expand public works and facilities in order to prevent the deterioration of property and neighborhoods; • conserve and expand the affordable housing stock in order to provide a decent home and a suitable living environment; • implement strategies to end homelessness in Ohio; and • provide short-term emergency and other housing stability assistance for low-income Ohioans.

  9. 2012 Goals – Office of Community Development • The #1 focus of OCD is job creation. • Strengthen and prepare local communities for job growth through many of OCD’s core CDBG programs.

  10. FY 2012 Consolidated Planning Process • The Con Plan serves as the State’s application for HUD funding. • August 2011 – Citizen Participation Process began • September 2011 – Public Hearing on Needs Issues held • October 3–4, 2011 – Program Advisory Committee meetings held • February 2012 – Con Plan Advisory Committee reviewed draft • March 1-30, 2012 – 30-day Public Comment period • March 22, 2012 – Public Hearing scheduled • May 2012 – Final Con Plan to be submitted to HUD

  11. Overview of CDBG Programs

  12. LMI Concentration and Non-Entitlement Areas

  13. Community Housing Improvement Program (CHIP) • The goal of the CHIP is to provide funding for a flexible, community-wide approach to the improvement and provision of affordable housing for LMI single-family households. • Eligible jurisdictions include cities and counties that include: • non-entitlement/non-participating jurisdictions (CDBG and HOME funds) • non-entitlement jurisdictions that are part of a PJ (CDBG Funds) • Applications are accepted annually on a competitive basis. • Grant period is two years. • Primary housing activities include: private owner rehab; rental rehab; homeownership; acquisition/rehab/resale; home repair; new housing construction; homelessness prevention, and rental assistance. • The grant ceiling per each eligible applicant is $500,000. • At least 80% of the CDBG funds and 100% of the HOME funds must be expended on activities directly benefitting low-or moderate income persons.

  14. Community Development Program • The goal of the CDP is to provide communities with a flexible community development resource that can be used to address locally identified needs that are eligible CDBG activities and qualify under the national objective of Low- and Moderate-Income (LMI) Benefit or Elimination of Slum and Blight. • The program is divided into two components: the Formula Allocation Grants and the Neighborhood Revitalization Grants (NRG). • Funding allocations for the Formula Allocation Grants are based on the number of LMI persons residing in the non-entitlement community. • Eligible Formula projects include activities identified in Title I of the Housing and Community Act of 1974. • NRG funds are awarded on a competitive basis – targeted 60% AMI and below. • Eligible activities in the NRG include public facilities improvements such as construction, reconstruction, rehabilitation of infrastructure in targeted areas of distress

  15. Economic Development Loan and Public Infrastructure Grant Program Overview • The current CDBG Economic Development Program and Residential Water and Sewer Program are proposed to be combined to increase the flexibility of CDBG funding to meet programmatic needs. • Overall funding is proposed to decrease from $12,000,000 to $10,800,000 but increased flexibility will enable greater alignment with Department priorities. • Residential Public Infrastructure Program (RPIP): • The primary goal of the RPIP is the creation of a safe and sanitary living environment for Ohio citizens, through the provision of safe and reliable drinking water and proper disposal of sanitary waste. • Economic Development Public Infrastructure Grant Program (EDPIGP) and Economic Development Loan Program (EDLP). • The principal goal of the EDPIP and the EDLP is to create and retain permanent, private-sector job opportunities for LMI Ohioans.

  16. Economic Development Loan and Infrastructure Grant Residential Public Infrastructure Program (RPIP) • The primary goal of the RPIP is the creation of a safe and sanitary living environment for Ohio citizens, through the provision of safe and reliable drinking water and proper disposal of sanitary waste. • The program is targeted at distressed communities with an LMI population of at least 51%. Activity expenditures must qualify under LMI Area or LMI Direct Benefit. • Application must meet minimum program thresholds and eligibility criteria including LMI area and direct benefit, leverage, regionalization, sustainability, and mitigation of documented health and safety issues. • Applications are accepted on an annual open-cycle basis and grants are awarded for two years.

  17. Our Partners • Small Communities Environmental Infrastructure Group (SCEIG) • Appalachian Environmental Infrastructure Strategy Work Group

  18. Small Communities Environmental Infrastructure Group (SCEIG) • An association of approximately 30 federal and state agencies, local governments and groups, service organizations, and educational institutions designed to help small communities in meeting their environmental infrastructure needs • SCEIG Member Organizations • Ohio Department of Development – member of Finance Committee • Ohio Water Authority • Ohio EPA • Ohio Public Works Commission • USDA Rural Development • Great Lakes Rural Community Assistance Program

  19. Appalachian Environmental Infrastructure Strategy Work Group • Assists communities in Appalachia with funding water and wastewater infrastructure needs, by fostering and encouraging partnerships among state and local officials through peer support, information and coordination. • Same entities that make up SCEIG, including: • Appalachian Regional Commission Local Development Districts • Ohio Department of Health

  20. CDBG Funding Challenges • Suspension or Transfer of Programs • Comprehensive Downtown Revitalization Program • Habitat for Humanity Supplemental Funding • Proposed funding for Downtown Targets of Opportunity (formerly Tier III) Program • FY 2012 Formula Allocation Program • Economic Development Program • Program Income

  21. Additional Goals for FY 2012 • Improve the data Collection and Evaluation of the program performance metrics in order to more efficiently deploy program resources in alignment with state and federal priorities. • Continue development and begin the initial deployment of the online grant management system to enable more efficient grant and program management, compliance, and reporting by internal and external stakeholders. • Create Work Groups consisting of stakeholders from around Ohio to help craft programmatic recommendations to help sustain financial viability for the CDBG program into FY 2013 and beyond.

  22. Questions?

  23. Contact Mike Hiler, Deputy Chief Office of Community Development Ohio Department of Development Michael.Hiler@development.ohio.gov (614) 466-2285 www.development.ohio.gov.Community/ohcp

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