Berks County Community Development Office CDO Office ......CDO Office Handbook A Public Information...

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office I. PURPOSE OF HANDBOOK This document introduces a new consolidated process that replaces all current requirements for planning and submission of 3 basic programs provided to Berks County through the U.S. Department of Housing and Urban Development (HUD). The three formula programs are: Community Development Block Grant (CDBG) Program; Home Investment Partnerships (HOME) Program; and Emergency Shelter Grants (ESG) Program. The new document resulting from the consolidated process is called the Consolidated Plan. The Plan is submitted annually to HUD and serves as a planning document of the County as well as the application for funding under the CDBG, ESG, and HOME Programs. It also addresses how the County will allocate its local Affordable Housing Program funded by an increase in the fees for recording deeds and mortgages. The consolidated process is a collaborative process whereby the County establishes a unified vision for community development actions. Consolidating the submission requirements offers the County a better chance to shape the various programs into effective, coordinated neighborhood and community development strategies. It also creates the opportunity for strategic planning and citizen participation to take place in a comprehensive context, and to reduce duplication of effort at the County level. II. SCHEDULE Available printed in the CD Office Newsletter; CD News, and posted to our section of the County website as a Public Notice. The schedule typically details the following dates and/or deadlines; letters to municipalities & non-profits applications advertisement advertisement for “needs” hearing “needs” hearing at BCTV studios all funding request due letters to adjacent municipalities review of requests publish advertisement for hearing and publish proposed Plan “proposed Plan” hearing at BCTV studios finalize Plan and summarize citizen comments board approval submission of Plan to HUD HUD review starts begin Program Year III. THE CDBG PROGRAM The CDBG Program provides eligible metropolitan cities and urban counties (called “entitlement communities”) with annual direct grants that they can use to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low- and moderate-income persons. Since 1974 the CDBG

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office Program has been the backbone of improvement efforts in many communities, providing a flexible source of annual grant funds for local governments nationwide—funds that they, with the participation of local citizens, can devote to the activities that best serve their own particular development priorities, provided that these projects either (1) benefit low- and moderate-income families; (2) prevent or eliminate slums or blight; or (3) meet other urgent community development needs. The CDBG Entitlement Communities program ensures that almost 1000 of the largest and most distressed localities are able to share in this Federal assistance. As the Nation's eighth largest Federal grant program, the impact of CDBG-funded projects can be seen in the housing stock, the business environment, the streets and the public facilities of these entitlement communities. Although the rehabilitation of affordable housing has traditionally been the largest single use of CDBG Program funds, the program is also an increasingly important catalyst for economic development activities that expand job and business opportunities for lower income families and neighborhoods. IV. THE CDBG PROGRAM ALLOCATION POLICY General Information Since 1975, the County of Berks has received an annual entitlement grant from the Federal Community Development Block Grant Program. For the FFY2000 Program Year, the grant was $3,127,000.00. Based on this past level of funding and considering current funding proposals in Congress for the CDBG Program, the County anticipates that its annual grant for the Program for the next three years will average $3,125,000.00 per year. It is the stated policy of the County of Berks that each participating municipality, excluding the City of Reading, will receive a basic grant during the three year cycle. This grant will enable the municipality to implement a project or projects that will meet local needs as well as basic eligibility and fundability requirements of the CDBG Program. The County intends to continue funding programs and activities which are County-wide in scope, meet an identified community development need, improve the housing stock of the County, revitalize the County’s communities, and implement the County's Comprehensive Plan. Finally, the County will allocate sufficient funds to insure the proper planning and administration of its CDBG Program. Based on these guidelines, the County of Berks will utilize funding of the FFY2000-2002 cycle generally as follows:

Community Projects (74 municipalities) 35%

County-Sponsored Activities & Initiatives 50%

Planning and Administration 15%

Any activity funded by the County's CDBG Program shall be consistent with the goals and objectives of the County's Comprehensive Plan.

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office Community Projects Title I of the Housing and Community Development Act of 1974 states: “the primary objective of this title is the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.” In implementing this policy, the County of Berks will recognize this purpose by awarding 3 year grants to participating municipalities. The standard allocation for a municipality shall be based on the 1996 estimate of municipal population from the U.S. Census. From 40 persons to 2,032 persons, the standard allocation is $30,000.00. From 2,033 persons to 3,565 persons, the standard allocation is $40,000.00. From 3,566 persons to 25,0000 persons, the standard allocation is $50,000.00. Based upon the above formula, standard allocations are as follows (click here): City of Reading The City of Reading is an entitlement community for the CDBG Program and as such, receives funding directly from HUD. In the past, the County has provided CDBG Program funds to organizations for projects located within the City. The regulations for the CDBG Program do not prevent an entitlement community from expending funds for a project which is located within another entitlement community; however, the project must benefit residents outside as well as those in the City. The County has established a policy for such projects. The County shall evaluate and may provide funding for projects located within the City of Reading provided the following: A. The project shall reasonably benefit residents of the County living outside of as well as those

living within the City of Reading. B. The project shall receive funding from the City of Reading equal to or more than the amount

of funding provided by the County. Such funding may be for physical improvements, social services, planning, administration, etc.

C. As stated in this allocation policy, the project must be consistent with the goals and

objectives of the County's Comprehensive Plan and must further the purposes of the Housing and Community Development Act and the County’s community development objectives.

County-Sponsored Activities & Initiatives As previously stated, the County will allocate approximately 50% of the CDBG Program funding during the 3 year cycle to projects that are implemented by the departments of County government or for projects that support a major goal of the County’s Comprehensive as follows: A. Infrastructure Improvements

1. Water and sewer service ranks foremost among the Community Facilities Plan provisions that interact with the Land Use Plan of the County's Comprehensive Plan. While sewer and water systems greatly influence growth, they also represent the single largest capital investment for most municipalities. In addition, the connection costs for public water and sewer can create a financial burden on low and moderate income property owners. Therefore, the County will allocate an additional $150,000.00 during the 3 year funding

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office

cycle to any municipality which utilizes its CDBG Program allocation for the acquisition, construction, reconstruction, rehabilitation or installation of public water and sanitary sewer systems which are consistent with the land use portion of the County Comprehensive Plan.

2. The County encourages the consolidation of existing, small, privately-owned water

companies, or the purchase of these companies by municipalities or authorities. Therefore, the County will allocate an additional $100,000.00 during the 3 year funding cycle to any municipality which utilizes its CDBG Program allocation for the acquisition of private water companies.

B. Multi-Municipal/Regional Projects - The County encourages and desires to foster multi-

municipal activities and activities that have a regional impact. Therefore, the County will allocate up to an additional $200,000.00 during the 3 year funding cycle for any project that involves the cooperation of two or more municipalities, coordination of two or more municipalities, or has a positive impact on two or more municipalities. Examples include: the rehabilitation of a road which runs through two municipalities; the construction or rehabilitation of a wastewater treatment plant that serves two or more municipalities; the construction of or improve to a park which serves the residents of two or more municipalities; or the construction or rehabilitation of a sanitary sewerage collection system.

C. Municipal Consolidation - As part of its overall intergovernmental cooperation policy, the

County encourages municipal consolidation. Municipal government is becoming more and more complex. While all county municipalities are doing an adequate job of serving their residents, in certain situations, the consolidation of two or more would sometimes provide better services for all citizens. To encourage the consolidation of municipalities where it is feasible, the County will allocate up to $25,000.00 towards the cost of studies necessary for the consolidation. Studies include but are not limited to: financial impact analysis, service impact analysis; infrastructure surveys; resource studies, etc. Upon a consolidation the allocation for the remaining municipality shall be those funds remaining from the municipal allocations of the current 3 year cycle and the combination of municipal allocations during the next 3 year cycle.

D. Economic Development Activities - The County will allocate an additional $100,000.00

during the 3 year cycle to any municipality which undertakes an economic development activity which creates or retains at least 51% of the resulting jobs for low and moderate income persons.

E. County Departments - Should the Board of County Commissioners decide to provide CDBG

Program funding for such a project, an interdepartmental agreement shall be executed which outlines the departments involved, general information concerning the project, a schedule, a budget, and the duties of each department.

F. Comprehensive Plan Consistency - The County will allocate an additional $25,000.00 during

any 3 year funding cycle to a municipality which whose new or current comprehensive plan is generally consistent with the County Comprehensive Plan.

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office Planning Activities The following shall constitute the policy of the Berks County Board of Commissioners. It shall be applied to all requests for planning funds from the CDBG Program. The goal of this policy is to encourage the implementation of the principles of the County Comprehensive Plan when using County CDBG Program funds for planning activities. The objectives of the policy are as follows: A. To identify and encourage regional cooperative planning efforts. B. To encourage the development of plans in municipalities that are most in need of planning. C. To create greater dialogue during the local comprehensive planning process between local

municipalities and the County. D. To improve the quality of local comprehensive plans and make the local comprehensive

planning process more meaningful to local government. E. To operate within the constraints of the 20% limitation of the CDBG Program for planning

and administration with first priority for planning funds to go to County planning activities. The County shall use the following priorities when allocating CDBG Program funds for planning: A. All planning and administration needs of the County will first be met before any local

planning activities are considered. B. Priority for funds that remain will be given to funding local comprehensive plans. In

accordance with the Municipalities Planning Code, these plans will be generally consistent with the County Comprehensive Plan.

C. Priority for the funding of local comprehensive plans will be given to municipalities that

engage in joint municipal planning efforts. The County desires to increase its involvement in local planning efforts through the following: A. The County Planning staff will have a greater role in the ongoing development of CDBG

Program funded local comprehensive plans and other local planning studies. Periodic meetings and dialogue between the municipality and the Planning staff during plan preparation will be strongly encouraged.

B. The County Planning staff will administer the procurement process for all professional

planning services provided by the CDBG Program. The Planning staff and the municipality will work together to develop the initial work program and request for proposals. The selection of the consultant will be a joint decision of the municipality and the County.

C. The County Planning staff will jointly monitor and administer all professional service

planning contracts in partnership with the local governments that are involved.

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office To foster multi-municipal planning efforts, the County has established the following new initiatives: A. The County directs that a Local Planning Partnership Fund be established to be used by the

County to encourage local planning activities of exceptional value and importance. This fund will be used to promote joint municipal planning, intergovernmental and regional cooperation, innovative land development techniques, agricultural preservation planning, and other principles described in the County Comprehensive Plan. The amount in the fund shall be established by subtracting all County planning and administration requirements from the 20% limitation of the CDBG Program. The remainder shall be available for the Local Planning Partnership Fund.

B. The County directs the Planning staff to conduct an analysis of local plans and to target

municipalities that might present good opportunities for the use of the Local Planning Partnership Fund. The Planning staff, in their analysis, shall consider age and quality of local plans, areas experiencing strong development pressure, and opportunities for regional joint planning efforts.

To allow for local planning other than multi-municipal efforts, the County will use CDBG Program funds as follows: A. In the event that funds are available after meeting the requirements of the Local Planning

Partnership Fund, individual municipal comprehensive plans can be funded. In these cases, the municipality must be unable to participate in a joint plan.

B. Municipalities that are unwilling to consider joint municipal plans will not be considered. C. Funds will be granted on a 50/50 matching basis provided the municipality is willing to allow

the involvement of County Planning staff as previously described under County Involvement. D. To minimize demand on the 20% limitation, first priority will be given to municipalities that

can make an exchange of local funds for CDBG Program funds. (e.g. A comprehensive plan is estimated to cost $20,000. The CDBG Program share would be $10,000. If the municipality can use $10,000 on a local infrastructure project and pay for the entire plan with its own local funds, this arrangement is preferred. Under this mechanism, the $10,000 of CDBG Program funds is provided to the municipality but does not count against the planning and administration limitation.)

Economic Development The County recognizes that, in accordance with the requirements of 24 CFR part 570.501, it is responsible for ensuring that CDBG Program funds are used in accordance with all program requirements. The County realizes that the use of designated public agencies, subrecipients, or contractors does not relieve it of this responsibility. Therefore, in carrying out special economic development activities, the County will insure compliance with all program regulations and guidelines whether the activity is implemented by a public agency, a subrecipient, or acontractor. The County recognizes the need to distinguish between the terms “economic development” and “special economic development” as used in the CDBG Program. The former term can be

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office interpreted very broadly to include all endeavors aimed at sustaining or increasing the level of business activity. As such, most CDBG activities could be viewed as “economic development”. In contrast, the term “special economic development” is used in the CDBG Program to identify the types of activities noted in this Policy and identified at 24 CFR Part 570.203 (a) and (b). Special economic development activities are a permitted use in the CDBG Program as noted at 24 CFR Part 570.203. These activities may be carried out by the County, a public or private non-profit entity, or by a private for profit business. In this regard, the County has distinguished between the three types of recipient, i.e. the County itself, a public or private non-profit agency, and a private for profit business. A. County-Sponsored Projects

In accordance with applicable regulations, the County may utilize CDBG Program funds in support of a special economic development activity implemented by a County agency involving the acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, and other real property equipment and improvements (24 CFR 570.203(a)). The County will evaluate proposals from any County department or office for funding of an activity noted above to determine the appropriateness of such activity, to insure its eligibility, and to determine that it meets a national objective. Special economic development activities will be considered for funding only after financial obligations to community participants and other activities such as housing rehabilitation and administration are funded as outlined in this policy. In situations involving County sponsored special economic development projects, the funds provided are not expected to be recaptured and the primary consideration for funding will be related to the potential for job creation or the removal of a blighting influence that impedes economic development.

B. Public or Private Non-profit Subrecipients The policy for funding public or private non-profit subrecipients for special economic development activities parallels that for County sponsored projects. However, the County may fund a special economic activity requested by a private or public non-profit when specifically endorsed by a participating jurisdiction and said jurisdiction agrees to the utilization of its guaranteed allocation for such activity. Such funding will depend on the County's evaluation of the activity to insure that all program requirements are satisfied including the eligibility and fundability of such activity. In addition, the County will execute a subrecipient agreement directly with the private or public non-profit entity. This subrecipient agreement will outline the specific justification for providing assistance to the non-profit entity for the special economic development activity. In the case of loan assistance provided for the acquisition and/or the rehabilitation of real estate, a permanent lien will be attached to the property and repayment of the loan will be required at the time of transfer of said real estate to another entity or other terms as agreed upon.


If the justification for the special economic development activity is the creation of jobs for low-moderate income persons, the following conditions will apply and will be included in the agreement: 1. At least one permanent full time equivalent job is created or retained for each $10,000 of

the CDBG assistance provided; 2. at least 51% of all full time equivalent jobs are available to or retained by low/moderate

income persons; 3. the non-profit entity must meet the low-mod job creation requirement within three years

of the award of assistance; 4. a lien will be placed on the property requiring loan repayment if the non- profit entity

does not meet the low-moderate income job creation provision within the three year performance period. Otherwise, the loan will be repaid at the time of transfer of the property to a third party or other terms as mutually agreed upon;

5. the County may request the non-profit to pay interest on the loan based on a percentage

of income received by the non-profit through use or rental of the property in excess of the maintenance and operation costs of the property. Such percentage will be negotiated on a case by case basis based on initial pro-forma information provided by the borrower and an annual review of the borrower's profit/loss statement.

C. Municipal Projects

A municipality participating in the County CDBG Program may decide to utilize its guaranteed funding during any three year cycle for a “special economic development” activity. In those cases when a participating jurisdiction intends to utilize its guaranteed funding for a municipal sponsored project, the County will evaluate the project to ensure that all eligibility and fundability requirements are satisfied. In this situation, the funds will be allocated by the County to the municipality with no repayment to the County required, unless the project is later determined to be unfundable by the CDBG Program. In those instances when the municipality agrees to allow a public or private nonprofit entity or a private for-profit business to utilize its guaranteed funding during any three year cycle, then the policies as enumerated under 2) above will apply as appropriate.

D. Projects implemented by specially created Authorities There may be occasions when a specially created authority (i.e. Redevelopment Authority, Airport Authority, etc.) will seek funding directly from the County to carry out a special economic development activity on its own. Such projects will be considered for funding by the County only after all other financial obligations for community participants and other activities as outlined in this policy are satisfied. The project will be evaluated by the County to insure compliance with all program requirement including the eligibility and fundability of the project.


If the justification for the special economic development activity is the creation of jobs for low-moderate income persons, then the conditions outlined under 2) above will apply.

E. Private for Profit Business (Reserved) V. CDBG PROGRAM ELIGIBLE ACTIVITIES CDBG Program funds may be used for the following activities: A. The acquisition of real property (including air rights, water rights, and other interests therein)

which is:

1. blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed from the standpoint of sound community development and growth;

2. appropriate for rehabilitation or conservation activities;

3. appropriate for the preservation or restoration of historic sites, the beautification of urban

land, the conservation of open spaces, natural resources, and scenic areas, the provision of recreational opportunities, or the guidance of urban development;

4. to be used for the provision of public works, facilities and improvements eligible for

assistance under this title; or

5. to be used or other public purposes. B. The acquisition, construction, reconstruction, or installation (including design features and

improvements with respect to such construction, reconstruction, or installation that promote energy efficiency) of public works, facilities (except for buildings for the general conduct of government), and site or other improvements;

C. Code enforcement in deteriorated or deteriorating areas in which such enforcement, together

with public improvements and services to be provided, may be expected to arrest the decline of the area;

D. Clearance, demolition, removal and rehabilitation including rehabilitation which promotes

energy efficiency of buildings and improvements including interim assistance, and financing public or private acquisition for rehabilitation, rehabilitation of privately owned properties, and including the renovation of closed school buildings;

E. Special projects directed to the removal of material and architectural barriers which restrict

the mobility and accessibility of elderly and handicapped persons; F. Payments to housing owners for losses of rental income incurred in holding for temporary

periods housing units to be utilized for the relocation of individuals and families displaced by activities under this title;

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office G. Disposition (through sale, lease, donation, or otherwise) of any real property acquired

pursuant to this title or its retention for public purposes; H. Provision of public services, including but not limited to those concerned with employment,

crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs, if such services have not been provided by the unit of general local government (through funds raised by such nit, or received by such unit from the State in which it is located) during any part of the twelve-month period immediately preceding the date of submission of the statement with respect to which funds are to be made available under this title, and which are to be used for such services, unless the Secretary finds that the discontinuation of such services was the result of events not within the control of the unit of general local government, except that not more than 15 percent of the amount of any assistance to a unit of general local government under this title may be used for activities under this paragraph unless such unit of general local government used more than 15 percent of the assistance received under this title for fiscal year 1982 or fiscal year 1983 for such activities (excluding any assistance received pursuant to Public Law 98-8), in which case such unit of general local government may use not more than the percentages or amount of such assistance use for such activities for such fiscal year, whichever method of calculation yields the higher amount;

I. Payment of the non-Federal share required in connection with a Federal grant-in-aid program

undertaken as part of the activities assisted under this title; J. Payment of the cost of completing a project funded under Title 1 of the Housing Act of 1949; K. Relocation payments and assistance for displaced individuals, families, businesses,

organizations, and farm operations, when determined by the grantee to be appropriate; L. Activities necessary to:

1. to develop a comprehensive community development plan; and

2. to develop a policy-planning-management capacity so that the recipient of assistance under this title may more rationally and effectively: (i) determine its needs, (ii) set long term goals and short term objectives, (iii) devise programs and activities to meet these goals and objectives, (iv) evaluate the progress of such programs in accomplishing these goals and objectives, (v) carry out management, coordination, and monitoring of activities necessary for effective planning implementation.

3. Payment of reasonable administrative costs and carrying charges related to the planning and execution of community development and housing activities, including the provision of information and resources to residents of areas in which community development and housing activities are to be concentrated with respect to the planning and execution of such activities and including the carrying out of activities as described in Section 701(e) of the Housing Act of1954 on the date prior to the date of enactment of the Housing and Community Development Amendments of 1981;

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office M. Activities which are carried out by public or private nonprofit entities, including:

1. acquisition of real property;

2. acquisition, construction, reconstruction, rehabilitation, or installation of (i) public facilities (except for buildings for the general conduct of government), site improvements and utilities, and (ii) commercial or industrial buildings or structures and other commercial or industrial buildings or structures and other commercial or industrial real property improvements;

3. planning. N. Assistance to neighborhood based nonprofit organizations, local development corporations or

entities organized under Section 301(d) of the Small Business Investment Act of 1958 to carry out a neighborhood revitalization or community economic development project in furtherance of the objectives of section 101(c), and assistance to neighborhood-based nonprofit organizations, or other private or public nonprofit organizations, for the purpose of assisting, as part of neighborhood revitalization or other community development, the development of shared housing opportunities (other than by construction of new facilities) in which elderly families (as defined in Section 3(b)(3) of the United States Housing Act of 1937) benefit as a result of living in a dwelling in which the facilities are shared with others in a manner that effectively and efficiently meets the housing needs of the residents and thereby reduces their cost of housing;

O. Activities necessary to the development of energy use strategies related to a recipient's

development goals, to assure that those goals are achieved with maximum energy efficiency, including items such as:

1. an analysis of the manner in, and the extent to, which energy conservation objectives will

be integrated into local government operations, purchasing and service delivery, capital improvements budgeting, waste management, district heating and cooling, land use planning and zoning, and traffic control, parking, and public transportation functions; and

2. a statement of the actions the recipient will take to foster energy conservation and the use

of renewable energy resources in the private sector, including the enactment and enforcement of local codes and ordinances to encourage or mandate energy resources, financial and other assistance to be provided (principally for the benefit of low-and moderate-income persons) to make energy conserving improvements to residential structures, and any other proposed energy conservation activities;

P. Provision of assistance to private, for profit entities, when the assistance is necessary or

appropriate to carry out an economic development project; Q. The rehabilitation or development of housing assisted under Section 17 of the United States

Housing Act of 1937; and

R. Provision of assistance to facilitate substantial reconstruction of housing owned and occupied by low income persons: A. where the need for the reconstruction was not determinable until


after rehabilitation under this section had already commenced, or B. where the reconstruction is part of a neighborhood rehabilitation effort and the County determines the housing is not suitable for rehabilitation and demonstrates to the satisfaction of the Secretary that the cost of substantial reconstruction is significantly less than the cost of new construction and less than the fair market value of the property after substantial reconstruction.

S. Provision of direct assistance to facilitate and expand home ownership among persons of low

income (except that such assistance shall not be considered a public service for purposes of paragraph H. by using such assistance to:

1. Subsidize interest rates and mortgage principal amounts for low income homebuyers;

2. Finance the acquisition by low income homebuyers of housing that is occupied by the

homeowners; 3. Acquire guarantees for mortgage financing obtained by low- and moderate- income

homebuyers from private lenders (except that amounts received under this title may not be used under this subparagraph to directly guarantee such mortgage financing and grantees under this title may not directly provide such guarantees);

4. Provide up to 50 percent of any down payment required from low income homebuyer;

or 5. Pay reasonable closing costs (normally associated with the purchase of a home)

Incurred by a low income homebuyers. In any case in which an assisted activity described in paragraph M. or P. is identified as principally benefitting persons of low income, such activity shall: 1. be carried out in a neighborhood consisting predominantly of persons of low income and provide services for such persons; or 2. involve facilities designed for use predominantly by persons of low income; or 3. involve employment of persons, a majority of whom are persons of low income. In any case in which an assisted activity is designed to serve an area generally and is clearly designed to meet identified needs of persons of low income in such area, such activity shall be considered to principally benefit persons of low income if: A. not less than 51 percent of the residents of such area are persons of low income; or B. in any metropolitan city or urban county, the area served by such activity is within the highest

quartile of all areas within the jurisdiction of such city or county in terms of the degree of concentration of persons of low income.

The requirements of the preceding paragraph do not prevent the use of assistance for the development, establishment, and operation for not to exceed 2 years after its establishment of a uniform emergency telephone number system if the Secretary determines that: A. such system will contribute substantially to the safety of the residents of the area served by

such system;

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office B. not less than 51 percent of the use of the system will be by persons of low income; and

C. other Federal funds received by the grantee are not available for the development,

establishment, and operation of such system due to the insufficiency of the amount of such funds, the restrictions on the use of such funds, or the prior commitment of such funds for other purposes by the grantee.

The percentage of the cost of the development, establishment, and operation of such a system that may be paid from assistance under this title and that is considered to benefit low income persons is the percentage of the population to be served that is made up of persons of low income. Any assisted activity under this title that involves the acquisition or rehabilitation of property to provide housing shall be considered to benefit persons of low and moderate income only to the extent such housing will, upon completion, be occupied by such persons. VI. CDBG PROGRAM INELIGIBLE ACTIVITIES The general rule is that any activity that is not authorized under the provisions of 570.206 is ineligible to be assisted with CDBG Program funds. This section identifies specific activities that are ineligible and provides guidance in determining the eligibility of other activities frequently associated with housing and community development. The following activities may not be assisted with CDBG Program funds: A. Buildings or portions thereof, used for the general conduct of government as defined at

§570.3(d) cannot be assisted with CDBG funds. This does not exclude, however, the removal of architectural barriers under §570.201(k) involving any such building. Also, where acquisition of real property includes an existing improvement which is to be used in the provision of a building for the general conduct of government, the portion of the acquisition cost attributable to the land is eligible, provided such acquisition meets a national objective described in §570.208.

B. General government expenses. Except as otherwise specifically authorized in this subpart or

under OMB Circular A-87, expenses required to carry out the regular responsibilities of the unit of general local government are not eligible for assistance under this part.

C. Political activities. CDBG Program funds shall not be used to finance the use of facilities or

equipment for political purposes or to engage in other partisan political activities, such as candidate forums, voter transportation, or voter registration. However, a facility originally assisted with CDBG Program funds may be used on an incidental basis to hold political meetings, candidate forums, or voter registration campaigns, provided that all parties and organizations have access to the facility on an equal basis, and are assessed equal rent or use charges, if any.

The following activities may not be assisted with CDBG Program funds unless authorized under provisions of §570.203 or as otherwise specifically noted herein, or when carried out by a subrecipient under the provisions of §570.204.

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office A. Purchase of equipment. The purchase of equipment with CDBG Program funds is generally

ineligible. B. Construction equipment. The purchase of construction equipment is ineligible, but

compensation for the use of such equipment through leasing, depreciation, or use allowances pursuant to OMB Circulars A-21, A-87 or A-122 as applicable for an otherwise eligible activity is an eligible use of CDBG Program funds. However, the purchase of construction equipment for use as part of a solid waste disposal facility is eligible under §570.201(c).

C. Fire protection equipment. Fire protection equipment is considered for this purpose to be an

integral part of a public facility and thus, purchase of such equipment would be eligible under §570.201(c).

D. Furnishings and personal property. The purchase of equipment, fixtures, motor vehicles,

furnishings, or other personal property not an integral structural fixture is generally ineligible. CDBG Program funds may be used, however, to purchase or to pay depreciation or use allowances (in accordance with OMB Circulars A-21, A-87 or A-122, as applicable) for such items when necessary for use by a recipient or its subrecipients in the administration of activities assisted with CDBG Program funds, or when eligible as firefighting equipment, or when such items constitute all or part of a public service pursuant to §570.201(e).

E. Operating and maintenance expenses. The general rule is that any expense associated with

repairing, operating or maintaining public facilities, improvements and services is ineligible. Specific exceptions to this general rule are operating and maintenance expenses associated with public service activities, interim assistance, and office space for program staff employed in carrying out the CDBG Program. For example, the use of CDBG Program funds to pay the allocable costs of operating and maintaining a facility used in providing a public service would be eligible under §570.201(e), even if no other costs of providing such a service are assisted with such funds. Examples of ineligible operating and maintenance expenses are:

1. Maintenance and repair of streets, parks, playgrounds, water and sewer facilities,

neighborhood facilities, senior centers, centers for the handicapped, parking and similar public facilities. Examples of maintenance and repair activities for which CDBG Program funds may not be used include the filling of pot holes in streets, repairing of cracks in sidewalks, the mowing of recreational areas, and the replacement of expended street light bulbs; and

2. Payment of salaries for staff, utility costs and similar expenses necessary for the operation

of public works and facilities. F. New housing construction. For the purpose of this paragraph, activities in support of the

development of low income housing including clearance, site assemblage, provision of site improvements and provision of public improvements and certain housing preconstruction costs set forth in §570.206(g), are not considered as activities to subsidize or assist new residential construction. CDBG Program funds may not be used for the construction of new permanent residential structures or for any program to subsidize or assist such new construction, except: 1. as provided under the last resort housing provisions set forth in 24 CFR Part 42; 2. as authorized under §570.201(m); or 3. When carried out by a subrecipient


pursuant to §570.204(a); G. Income payments. The general rule is that CDBG Program funds shall not be used for income

payments for housing or any other purpose. Examples of ineligible income payments include: payments for income maintenance, housing allowances, down payments, and mortgage subsidies.

VII. CDBG PROGRAM NATIONAL OBJECTIVES In order to be eligible for funding, every CDBG Program-funded activity must qualify as meeting one of the three national objectives of the Program. This requires that each activity, except program administration and planning, meet specific tests for either:

Benefitting low and moderate (L/M) income persons; Aiding in the prevention or elimination of slums or blight; or Meeting other community development needs having a particular urgency because

existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs.

Activities considered to benefit low and moderate income persons are divided into four categories: (1) area benefit activities; (2) limited clientele activities; (3) housing activities; and (4) job creation or retention activities. Activities considered under the national objective of slums/blight are divided into three categories: (1) an area basis; (2) a spot basis; or (3) urban renewal completion. Various records and documentation must be maintained for either category. To comply with the national objective of meeting community development needs having a particular urgency, an activity must be designed to alleviate existing conditions which the County certifies: (1) pose a serious and immediate threat to the health or welfare of the community; (2) are of recent origin or recently became urgent; (3) the County is unable to finance on its own; and (4) other resources of funds are not available. A condition will generally be considered to be of recent origin if it developed or became critical within 18 months preceding the County's certification. Application Procedures An original and one copy of the request form must be submitted to the Berks County Community Development Office, County Services Center - 14th Floor, 633 Court Street, Reading, PA 19601 by July 31, 2000. All required additional information must be included with the application. VIII. THE HOME PROGRAM General Information The HOME Program affirms the Federal government's commitment to provide decent, safe and affordable housing to all Americans, and to alleviate the problems of excessive rent burdens, homelessness and deteriorating housing stock in the nation. Since 1992, the County of Berks has

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office received HOME Program funds as a participating jurisdiction. For the FFY2000 Program Year, the grant was $526,000.00. The County anticipates receiving approximately the same amount each year for FFY2000-2002. Purpose of HOME Program The HOME Program affirms the Federal government's commitment to provide decent, safe and affordable housing to all Americans, and to alleviate the problems of excessive rent burdens, homelessness and deteriorating housing stock in the nation. As recommended by the National Housing Task Force in 1988, the HOME Program provides funding and general guidelines to State and local governments and empowers them to design and tailor affordable housing strategies to address local needs and housing conditions. The HOME Program strives to meet both the short-term goal of increasing the supply and availability of affordable housing, and the long-term goal of building partnerships between State and local governments and private and nonprofit organizations and strengthening their capacity to meet the housing needs of low and very low income residents. Eligible Activities HOME Program funds may be used for a variety of activities to develop and support affordable housing. Eligible activities include: tenant-based rental assistance, assistance to first-time homebuyers and existing homeowners, property acquisition, new construction, reconstruction, moderate or substantial rehabilitation, site improvements, demolition, relocation expenses and other reasonable and necessary expenses related to development of non-luxury housing. A. Administrative Costs. Participating jurisdictions may use up to ten percent of its HOME

allocation for planning and administrative costs of the HOME Program. Up to 5 percent of the annual allocation may be used for community housing development organization (CHDO) operating expenses.

B. Tenant-Based Assistance. HOME Program funds may be used for tenant-based assistance in

any participating jurisdiction. The following conditions apply for such use of funds: (i) The participating jurisdiction certifies that such assistance is an essential element of its annual housing strategy and specifies the local market conditions leading to this determination; and (ii) The tenant-based rental assistance is provided in accordance with written tenant selection policies and criteria that are consistent with the purposes of providing housing to very low- and low-income families and are reasonably related to the Federal preference rules.

The tenant-based assistance program may be operated by the participating jurisdiction or it may be contracted out to another capable entity (such as a public housing authority). The following requirements govern tenant-based rental assistance: (i) Rental assistance contracts may not exceed 24 months, although they may be renewed; (ii) Rents must be reasonable, as compared with comparable unassisted units; (iii) Lease requirements must be equitable to the tenant; (iv) A participating jurisdiction may not pay more than the difference between a rent standard for the unit size (established by the participating jurisdiction) and 30 percent of the family's monthly adjusted income. This rent standard may not be less than 80 percent of the Section 8 Existing Housing fair market rent for the unit size, nor more than HUD approved community-wide exception rent; (v) The participating jurisdiction must require a minimum contribution toward rent for each tenant; and (vi) Units must meet Section 8 Housing Quality


Standards. C. Rehabilitation. The HOME Program permits the use of funds for rehabilitation, since

rehabilitation can be a cost effective development strategy. HOME funds may be used for the rehabilitation of both rental and homeowner- occupied housing. A participating jurisdiction shall give preference to rehabilitation of substandard housing unless it determines that: (i) Rehabilitation is not the most cost-effective way to meet housing needs to expand the supply of affordable housing in that neighborhoods; and (ii) The participating jurisdiction's housing needs, within the neighborhoods, cannot be met through rehabilitation of available stock.

D. New Construction. The HOME Program permits the use of funds for new construction of

housing units. HOME Program funds may not be used to pay for public housing modernization, tenant subsidies for certain special mandated purposes under Section 8, matching funds for other Federal programs, Annual Contributions Contracts (ACCs), activities under the Low-Income Housing Preservation Acts of 1987 and 1990, and operating subsidies for rental housing. Additionally, the funds cannot be used to create a reserve account for replacements, a project reserve account for unanticipated increases in operating costs, or operating subsidies. Various Activity Requirements HOME Program funds invested in rental housing must meet the following income targeting requirements for the program as a whole: A. at least 90 percent of such funds must be invested in units that are occupied by families whose

incomes do not exceed 60 percent of the median family income for the area; and B. the remaining funds (up to 10 percent) must be invested in units occupied by families below

80 percent of median income. Each rental project must meet the following affordability tests: A. have rents at or below the lesser of either the existing Section 8 Fair Market Rent, or 30

percent of the adjusted income of a family whose income equals 65 percent of the median income for the area;

B. remain affordable for the following terms based on the average HOME Program subsidy per

unit:

rehabilitation of up to $15,000: 5 years rehabilitation from $15,000 - $40,000 10 years rehabilitation from $40,000 + 15 years new construction (any amount) 20 years

C. for projects of 3 or more units, have at least 20 percent of its units occupied by very low

income families paying no more than 30 percent of monthly adjusted gross income for rent, or bearing rents not greater than 30 percent of the gross income of a family whose income equals 50 percent of the median income for the area.

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office All of the HOME Program funds used for home ownership assistance must benefit first-time homebuyers (including displaced homemakers and single parents who may have once owned a home with a spouse), or existing low income homeowners whose family incomes are at or below 80% of the area median income. In addition: A. the assisted housing must be the owner's principal residence; B. the purchase price of the property, or the appraised value of a property already owned, after

rehabilitation must not exceed 95 percent of median area purchase price; and

C. resale of the property by a first-time homebuyer is subject to restrictions that are established by the participating jurisdiction or recapture of the HOME subsidy; either option must be determined by the Secretary to be appropriate.

To ensure that units developed with HOME Program funds are non-luxury, affordable units, HUD has established a maximum per unit HOME Program subsidy on a market-by-market basis, adjusted for unit size, which will be updated and adjusted for inflation annually. All HOME-assisted units must meet local codes and standards, and, at a minimum, Section 8 Housing Quality Standards. All jurisdictions shall make contributions to housing that qualifies as affordable housing under the Act. The required contribution or “match” is $0.25 for every $1.00 of HOME Program funds. The HOME Program funds are utilized: Matching funds must be used for HOME-assisted projects, and requirements will be calculated on a project-by-project basis and applied on a program-wide basis. A participating jurisdiction is required to match, by the end of each fiscal year, all HOME funds expended during that year, but is not required to match funds used to cover administrative expenses or fill the gap to meet the threshold unless the State transfers its funds to a local jurisdiction. A participating jurisdiction incurs a “match liability” each time it draws funds from its HOME Investment Trust Fund. The match payment must be expended by the end of each fiscal year, September 30. As a general rule of thumb, investments which are contributions from the State/local government or private sources will be eligible to qualify as a matching contribution. Eligible sources of match include cash; the value of foregone interest, taxes, fees or charges; appraised value of land or real property; investments in on- or off-site improvements, bond financing donated construction materials and voluntary labor. Ineligible match sources include other Federal funds and CDBG Program funds. Building Partnerships with Nonprofit Organizations Each participating jurisdiction receiving HOME Program funds is required to reserve at least 15 percent of the funds for housing to be developed, sponsored or owned by CHDOs. A CHDO is a private, nonprofit organization which: A. has among its purposes, the provision of decent housing that is affordable to low- income and


moderate-income persons; B. has demonstrated its capacity for carrying out activities assisted with HOME funds;

C. has a history of serving the community within which the housing to be assisted with HOME

funds is to be located;

D. is organized under State or local laws;

E. has standards of financial accountability; and

F. has a tax exemption under section 501(c) of the Internal Revenue Code. To maintain accountability to low income community residents, at least one-third of a CHDO's governing board must be low income residents or elected representatives of such residents. CHDOs must maintain a formal process for low income residents and program beneficiaries to advise the organization on relevant decisions. A CHDO cannot be a public body, nor be controlled by, or under the direction of, individuals or entities seeking to derive profit or gain from the organization. A CHDO may be sponsored or created by a for-profit entity if: A. the primary purpose of the for-profit entity is not the development or management of

housing; and B. the CHDO is free to contract for goods and services from vendors of its own choosing. If a CHDO is sponsored by a public agency or for-profit entity the sponsoring entity may not appoint more than one-third of the membership of the organization's governing body. For publicly sponsored CHDO's, board members appointed by the unit of government may not appoint remaining board members Up to 15 percent of a participating jurisdiction's CHDO set-aside may be used for project-specific technical assistance, site control and seed money loans. Any portion of the 15 percent of a participating jurisdiction's allocation which is not reserved for CHDOs within the 24-month period after they have been made available, will be deducted from that jurisdiction's HOME Program allocation and reallocated to other jurisdictions for use by CHDOs. To date, the County has recognized Berks Community Action Program, Inc. and Berks Housing Opportunities, Inc. as its designated CHDOs. Allocation of Funds The County will allocate sufficient funds to insure the proper planning and administration of its HOME Program. Based on these guidelines, the County of Berks will utilize funding of the FFY2000-2002 cycle generally as follows:

Non-profit Rental Housing Projects 20% Property Rehabilitation Program 40%


The Next Step Program 15% CHDO Activities 15% Planning and Administration 10%

Prior to the approval of any County HOME Program funds for the development of new subsidized housing with 20 or more units, the County shall require the following: 1. A detailed market study or other documentation demonstrating the demand for the number of

units proposed for the targeted area. At a minimum, the study must be completed by a competent market professional with demonstrable experience in Pennsylvania affordable housing markets, provide a description of the proposed site, provide demographic analysis of the number of households in the market area which are income eligible and can afford to pay the proposed rent, provide geographic definition and analysis of the market area, provide a description of rent levels and vacancy and turnover rates of comparable properties, provide an analysis of expected market absorption on the proposed project including a description of the effect on the market area, identify other subsidized properties potentially affected by the proposed project, and provide a needs assessment addressing the specific features of the proposed project which enhance its marketability or the specific projected rental housing needs within the community which will be addressed by the proposed project.

2. A detailed supportive services plan demonstrating the availability and accessibility of those

services needed by the intended residents.

3. Availability of a rent subsidy, to insure that tenants will pay no more than 30% of income for shelter costs will be needed for some of these proposed projects. This rent subsidy may be from Section 8 Project Based Certificate Program, or a fund established through reinvestment of all or part of the developer’s fees.

4. A clear rationale for the selection of the proposed site and a demonstration of local support

for the proposed project.

5. Indication of other funding sources to be committed to the project. Application Procedures An original and one copy of the funding request from local non-profit organizations must be submitted to the Berks County Community Development Office, County Services Center - 14th Floor, 633 Court Street, Reading, PA 19601 by July 31, 2000. Demonstration of the ability to supply matching funds must be included in the application. Any activity funded by the County's HOME Program shall be consistent with the goals and objectives of the County's Comprehensive Plan and Consolidated Plan. IX. THE ESG PROGRAM General Information The ESG Program awards grants for the rehabilitation or conversion of buildings into homeless shelters. It also funds certain related social services, operating expenses, homeless prevention

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office activities, and administrative costs. The Program supplements State, local, and private efforts to improve the quality and number of emergency homeless shelters. By funding emergency shelter and related social services, the ESG Program provides a foundation for homeless people to begin moving to independent living. The County of Berks has administered a program to support the repair and operations of emergency shelters for the homeless since 1986. Priority will be given to applications which support the repairs and operations of shelters for parents with children - shelters which work towards the goal of reestablishing the family in suitable permanent housing. Shelters which provide comprehensive, thoroughly administered services which can document success in transitioning clients to permanent housing will be given priority. Eligible Activities Emergency Shelter Grants Program funds may be used for one or more of the following activities: A. Renovation, major rehabilitation, or conversion of buildings for use as emergency shelters for

the homeless. B. Provision of essential services, including (but not limited to) services concerned with

employment, health, substance abuse, education, or food. Grants may be used to provide an essential service primarily if: the service is a new service or a quantifiable increase in the level of a service above that which the unit of general local government provided during the 12 calendar months immediately before it received the grant. Services must not exceed 30% of the total funds requested.

C. Operations are defined as payment of maintenance, other costs including rentC. Operations

are defined as payment of maintenance, other costs including rentC. Operations are defined as payment of maintenance, other costs including rent (but excluding staff), insurance, utilities, and furnishings.

D. The development and implementation of homeless prevention activities.

E. The County may use up to 5% of its grant for general administration purposes. Ineligible Activities ESG Program funds may NOT be used: (1) to acquire an emergency shelter for the homeless; (2) to pay rent for commercial, transient accommodations, such as hotels or motels; (3) to pay for rehabilitation services, such as preparation of work specifications, loan processing, or inspections; (4) to repair religious facilities. Federal Program Requirements A number of Federal requirements exist. These include requirements that each organization (1) supplement the assistance provided under the Program with an equal amount of funds from other sources; (2) ensure that any building for which assistance is provided will continue to be used as

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office a homeless shelter for specified periods from 3 to 10 years; (3) ensure that assisted rehabilitation is sufficient to make the structure safe and sanitary; (4) assist homeless individuals in obtaining appropriate supportive services and other available assistance; (5) meet other generally applicable requirements, such as nondiscrimination and equal opportunity; and (7) provide a certification that the shelter will be operated free of drugs. A. Matching Funds: In calculating the amount of the match, there may be included the value of

any donated material or buildings; the value of any lease on a building, any salary paid to staff of the grantee or subcontractor nonprofit recipient in carrying out the emergency shelter program; and time and services contributed by volunteers to carry out the emergency shelter program, determined at the rate of $5 per hour. The organization will determine the value of any donated material or building, or any lease, using any method reasonably calculated to establish a fair market value.

B. Nondiscrimination, Other Matters of Assurance and Compliance:

Two of the nondiscrimination requirements with which emergency shelter grantees must comply are: 1) Title VIII of the Civil Rights Act of 1968, and 2) Executive Order 11063 which prohibit discrimination in housing on the basis of race, color, religion, sex, or national origin. Prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 and the prohibitions against discrimination involving handicapped individuals must be assured, under Section 504 of the Rehabilitation Act of 1973 and the American's with Disabilities Act.

The organization must make efforts to encourage the use of minority and women's business enterprises in connection with activities funded under the ESG Program. The County's guide on procurement should be consulted and followed with this program, as with other federal/state pass through grant programs.

Organizations must make known that use of the facilities and service is available to all on a nondiscriminatory basis. Where the procedures that an organization intends to use to make known the availability of such facilities and services are unlikely to reach persons with handicaps or persons of any particular race, color, religion, sex, age or national origin within their service area who may qualify for them, the organization must establish additional procedures that will ensure that these persons are made aware of the facilities and services. Organizations must also adopt and implement procedures designed to make available to interested persons information concerning the existence and location of services and facilities that are accessible to persons with a handicap.

C. Constitutional Limitations on the Use of Program Funds by Primarily Religious

Organizations: A private non-profit organization deemed pervasively sectarian is not prohibited from carrying out eligible activities so long as such activities are carried out in a manner free from religious influences pursuant to conditions prescribed in the assistance agreement.

D. Displacement: Organizations must avoid involuntarily displacing lower income persons. If

such displacement is unavoidable, action will be taken to mitigate any adverse effects on these persons. Projects causing displacement will not be funded.


E. Applicability of OMB Circulars: Financial requirements of OMB CIRCULAR NOS. A-87

and 24 CFR part 85, as they relate to the acceptance and use of emergency shelter grant amounts by States and units of general local government, and Nos. A-110 and A-122 as they relate to the acceptance and use of emergency shelter grant amounts by private non-profit organizations are in effect.

F. Accessibility Standards: For major rehabilitation or conversion, 24 CFR Part 576.3 standards

apply. Buildings proposed for major rehabilitation or conversion must be made accessible to the disabled. Applicants are advised to discuss questions about designs for handicapped persons with the Berks County Center for Independent Living and Labor and Industry Department staff who work with these matters.

G. Lead-Based Paint: Compliance with the requirements of the Lead-Based Paint Poisoning

Prevention Act must be assured.

H. Conflicts of Interest: In addition to conflict of interest requirements in 24 CFR part 85 and OMB Circular A-110, no person who is an employee, agent, consultant, officer, or elected or appointed official of the grantee, State recipient, or nonprofit recipient (or of any designated public agency) that receives emergency shelter grant amounts and who exercises or has exercised any functions or responsibilities with respect to assisted activities or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for him or herself or those with whom he or she has family or business ties, during his or her tenure or for one year thereafter.

I. Use of Debarred, Suspended or Ineligible Contractors: Engagement of services, awarding of

contracts, or funding of any contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status is not allowed.

J. Flood Insurance: No site proposed for grant assistance may be located in an area that has

been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, unless the community in which the area is situated is participating in the National Flood Insurance Program.

K. Audit: The financial management system used by a private nonprofit organization is subject

to the audit requirements of OMB Circular A-133. Reporting Requirements Reports will be required on at least a semi-annual basis which describe progress on eligible ESG Program activities and describe clients served. Fiscal Responsibilities All funds must be spent within 24 months of the contract start date. Organizations must have an

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office accounting system to maintain records and receipts supporting expenditures. Expenditures reports shall be submitted in accordance with the schedule negotiated for payouts of the grant amount. Organizations shall ensure that books, records, documents, and other evidence pertaining to cost and expenses of the grant are maintained in such detail as will reflect all costs of materials, equipment, supplies, services, acquisition, building costs and all other costs and expenses for which reimbursement is claimed or payment is made under the grant. All expenditures shall be reported on an accrual basis. All records pertaining to this grant including financial audit, budget, plans/drafts, supporting documents, statistical records, etc, shall be retained for a period of at least four (4) years following submission of the final expenditure report. In the event that any claim, audit, litigation or State/Federal investigation is started before the expiration of the aforementioned record retention period, the records shall be retained by organizations until all claims or findings regarding the records are resolved. The Federal government and the County shall have access to any records relevant to the project, including books, documents, photographs, correspondence, and records to make audit, examinations, transcripts, excerpts. If the County determines that such records possess long term or historic value, they shall be transferred, as requested, to the County. Allocation of Funds The County's ESG Program guidelines follow the federal program requirements which are published in the Federal Register/Volume 54, No. 214 Tuesday, November 7, 1989 on pages 46799 through 46810. For FFY2000, the U. S. Department of Housing and Urban Development provided Berks County with $111,000.00 for repair and conversion of buildings used as shelters for those homeless and to support shelter operations and new essential staff services. The County also received $177,728.00 in ESG Program funds from the State's ESG Program. The total amount of the grants for the past three year cycle was $319,000.00. Based on this past level of funding and considering current funding proposals in Congress for the ESG Program, the County anticipates that its annual grant for the Program for the next three years will average $100,000.00. The County will allocate ESG Program funds based upon its overall housing strategy. Based on the principles of the County's overall housing strategy, the proposed elements of the homeless strategy are: 1. Priority should be given to the operation and maintenance of existing homeless shelters and

transitional housing facilities. In turn, these agencies should be cooperating with each other to assure that services are not being duplicated. These agencies should also be taking a lead in the measurement of the success of these programs by providing uniform and reliable data on the clients they serve.

2. The need for additional transitional housing facilities should be ascertained. If justified, sites

for the facilities should be identified. Resources to either reuse existing buildings or construct a new facility should be committed. There may be potential for City/County joint cooperation


in this effort, using Beacon House as a model. The County will allocate sufficient funds to insure the proper planning and administration of its ESG Program. Based on these guidelines, the County of Berks will utilize funding of the FFY2000-2002 cycle generally as follows:

Operations and Maintenance 65% Essential Services 30% Planning and Administration 5%

Application Procedures An original and one copy of funding requests from local non-profit organizations must be submitted to the Berks County Community Development Office, County Services Center - 14th Floor, 633 Court Street, Reading, PA 19601 by July 31, 2000. Demonstration of the coordination of essential services through local organizations is encouraged. Any activity funded by the County's ESG Program shall be consistent with the goals and objectives of the County's Comprehensive Plan and Consolidated Plan. Applications must include: A. Purpose: Prospective organizations should explain the purpose of the ESG Program funds

including information and any data which is applicable. B. Goals and Objectives: Organizations should include an outline of the intended goals of the

ESG Program project, with an assessment of the impact of the project on local homeless needs. The number of units or beds, an estimate of total development cost, source of ongoing operation funds, a management plan, and overview of the intended participation of the existing social services support network must be provided in this section of the application.

C. Project Description: Proposals should provide a detailed description of the proposed project

including the following information:

1. Complete narrative description of the chosen facility (size, physical condition, number of existing units, former use, photographs showing exterior and interior conditions).

2. Complete description of repairs, renovations and/or conversions to be undertaken, if

applicable.

3. Specifications, drawings and/or write-up of work or improvements proposed to be undertaken, if applicable.

4. Construction Cost Estimates, if applicable.

5. Construction schedule, if applicable.


6. Management plan for the project including procedures for intake, schedules and fee arrangements (if any), letters of support from existing social service agencies such as local mental health/mental retardation and drug and alcohol programs, and proposed rules and regulations for project residents (House Rules).

7. Evidence of cooperation with social service providers, particularly those offering services for the homeless.

D. Fiscal Information: Total Project budget proposed through the contract period must be

submitted indicate amount and source of 50% local matching funds. Indicate other sources of funding to be utilized by the Project. The total agency budget for this time must be provided.

X. AFFORDABLE HOUSING PROGRAM Background The 1992, the General Assembly passed the Optional County Affordable Housing Funds Act (Act 1992-137). The intent of the General Assembly is to provide an alternative method for county governments to raise revenues at the local level to enable county residents to purchase or rent quality residential housing. The Act allows county governments to increase the fees charged by the recorder of deeds for recording deeds and mortgages under the act of June 12, 1919 (P.L. 476, No. 240) referred to as the Second Class County Recorder of Deeds Fee Law, and the act of April 8, 1982 (P.L. 310, No.87), referred to as the Recorder of Deeds Fee Law. The additional fees levied by the county shall not exceed 100% of the amounts charged on the effective date of Act 137. Berks County enacted Ordinance 1-94 on March 24, 1994 and the ordinance became effective as of May 9, 1994. The Ordinance increases the fee charged for recording documents as follows: A. Deeds from eleven dollars and fifty cents ($11.50) each to twenty-three dollars ($23.00) each. B. Mortgages from eleven dollars and fifty cents ($11.50) each to twenty-three dollars ($23.00)

each.

C. Each page or part over four contained in deeds and mortgages from two dollars ($2.00) to four dollars ($4.00).

D. Each additional name over four contained in deeds and mortgages from fifty cents ($.50) to

one dollar ($1.00). Disposition of Proceeds Additional revenue, about $430,000.00 per year, raised by the increase in fees is deposited in the County General Fund and allocated as follows: A. 85% of the additional revenue is set aside in a separate account to be used to fund affordable

housing efforts in the County.

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office B. 15% of the additional revenue is used by the County for administrative costs associated with

the affordable housing efforts. Affordable Housing Efforts Affordable housing efforts may include, but are not limited to: A. Providing local matching funds to secure National Affordable Housing Act of 1990 HOME

Program funds for the County of Berks and the City of Reading. B. Assisting or supporting housing efforts by the Pennsylvania Housing Finance Agency and by

commercial banks and thrift institutions.

C. Supporting soft second mortgage programs. XI. CITIZEN PARTICIPATION PLAN Berks County, through the Community Development Office, utilizes the programs of various Federal and State agencies including the U.S. Department of Housing and Urban Development, the Pennsylvania Department of Community Affairs, etc. to implement housing and community development related activities. The C.D. Office recognizes the obligation to provide adequate information to citizens regarding those programs through which it may seek funding. Therefore, the C. D. Office will insure that adequate information is provided to local citizens to evaluate various proposals. The County will also provide the proper forum to obtain citizen views on housing and community development related issues. The County receives annual grants from the U.S. Department of Housing and Urban Development resulting from its classification as an “entitlement” community. The County is also eligible to apply for supplemental funds under the Section 108 Loan Guarantee Program. The County may exercise its option to apply for Section 108 Loan Guarantee funding and in so doing will follow the procedures outlined in this Citizen Participation Plan. The C.D. Office recognizes that persons affected by public action should have a voice in policy formulation. Although the various housing and community development related activities are designed to have a long term beneficial effect on the community, these activities may also have an adverse impact on some individuals. Therefore, it is important that citizens know what is being planned and be given an opportunity to present their views. The County recognizes the need to consult and coordinate with appropriate public and private agencies, such as the State and other local jurisdictions, local public housing agencies participating in an approved Comprehensive Grant Program, and among its own departments, to assure that its programs and plans are comprehensive and address any statutory purposes. It will also confer with social service agencies regarding the housing needs of children, elderly persons, persons with disabilities, homeless persons, and other categories of residents. The County will consult with State and local health and child welfare agencies, and examine existing data on

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office hazards and poisonings, including health department data on the addresses of housing units in which children have been identified as lead poisoned. In order to comply with the spirit of program requirements relative to citizen participation, the C.D. Office has developed this Citizen Participation Plan. Generally, the plan is designed to insure the involvement of affected persons and other concerned citizens, the openness and freedom of access to information, the adequate and timely presentation of pertinent data, the submission of views and proposals, and the continuity of citizen participation through each stage of resulting activities. Access to Records The C.D. Office shall provide for full public access to citizens, public agencies, and other interested parties, including those most affected, to information pertaining to any program under which funding is sought or concerning the use of funds from any program used for housing and community development activities and administered by the C.D. Office. Affirmative efforts will be made to make adequate information available to citizens, especially to those of low, very low, and poverty income and to those residing slum and blighted areas and in areas where funds from federal or state programs are proposed to be used. At the time the C.D. Office initiates the process to seek specific funding, the following program information shall be provided: A. The total amount of funds expected to be available to the County for housing and community

development activities under the program(s) being assessed. B. The range of activities that may be undertaken with these funds;

C. The estimated amount of funds proposed to be used for activities that will benefit low, very

low, and poverty income persons;

D. The possibility of residential and/or commercial displacement resulting from program implementation and the plans for minimizing such displacement, and;

E. The types and levels of assistance to be made available to persons displaced by contemplated

activities. Upon completion of an application for funding by the C. D. Office and submission of the application to the appropriate agency, the County shall publish a notice in a newspaper of general circulation if program regulations so require. The notice shall appear in a paper such as the Reading Eagle/Times and indicate that necessary documentation has been submitted and is available to interested parties upon request. The C.D. Office shall make copies of the appropriate documentation available in the Community Development Office, County Services Center, 14th Floor, 633 Court Street, Reading, PA. Consolidated Plan The Consolidated Plan provides the framework for a planning process used by States and localities to identify housing, homeless, community and economic development needs and resources and to tailor a strategic plan for meeting those needs. For citizens, the Consolidated Plan

Berks County Community Development Office CDO Office Handbook A Public Information Handbook Prepared by Berks County Community Development Office provides a way to help define their government’s priorities for addressing housing, homeless, community and economic development needs. For grantees, it simplifies the steps needed to receive funds under four HUD block grant programs: the Community Development Block Grant (CDBG), the Emergency Shelter Grant (ESG), HOME Investment Partnerships Program (HOME), and Housing Opportunities for Persons with AIDS (HOPWA). It also provides a way to measure if the activities they funded with these programs actually meet the needs and objectives identified by the community. The Consolidated Plan serves the following functions: (1) A planning document for communities, which builds on a participatory process at the lowest levels; (2) An application for federal funds under HUD's formula grant programs; and (3) A strategy to be followed in administering HUD programs. Upon completion of the proposed Plan, the County shall publish the proposed Plan or summary of the Plan in sufficient time to permit citizens to comment on the Plan prior to its approval and adoption by the Board of County Commissioners. The notice will appear in a non-legal section of a paper of general circulation such as the Reading Eagle/Times at least fifteen (15) calendar days prior to the adoption of the Plan and will indicate the locations at which the Plan will be made available for public review. Upon approval of the Plan, the County shall publish a notice in a newspaper of general circulation if program regulations so require. The notice shall appear in a paper such as the Reading Eagle/Times and indicate that necessary documentation has been submitted and is available to interested parties upon request. Technical Assistance Technical assistance in the form of C. D. Office staff, staff of other County agencies or third party contractors to the County or its agencies will provide technical assistance to citizen participants, low, very low, and poverty income groups or persons to enable them to understand the requirements associated with various programs such as Davis-Bacon Fair Labor Standards, environmental policies, equal opportunity requirements, relocation provisions, etc. Technical assistance will also be provided to group representative of persons of low, very low, and poverty income that request assistance in developing proposals. Such assistance will be made available upon request by interested citizens or organizations to the County's C. D. Director. In addition, the C.D. Office, through the public hearings will review such program requirements and will have available for interested parties handout material dealing with technical program requirements so as to assure understanding. Furthermore, the C.D. Office will provide interpretation services to any non-speaking person who may require such assistance in understanding a particular program being planned or administered by the C.D. Office. Public Hearings The C.D. Office will conduct a public hearing or hearings on specific application proposals in accordance with Federal or State req

Berks County Community Development Office CDO Office ......CDO Office Handbook A Public Information...

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