Draft ACTION PLANDraft ACTION PLAN
Community Development Grant Program Community Development Grant Program Disaster Recovery (CDBG-DR)Disaster Recovery (CDBG-DR)
Agency of Commerce and Community Development
Department of Economic, Housing and Community Development
June 5, June 7, and June 12, 2012
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
PUBLIC HEARING AGENDA• Overview
• CDBG-DR Regulations - Highlights
• Proposed Timeline
• Presentation of Draft Action Plan
• Clarifying Questions & Answers
• Public Input
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Overview Federal Register Notice – Official Notice
– Funding from the U.S. Department of Housing & Urban Development (HUD)
– Released, April 16, 2012– Effective, April 23, 2012
Presidentially-declared disasters– DR-1995, April 23-May 9, 2011 Flooding– DR-4001, May 26-27, 2011 Flooding– DR-4022, August 27-September 2, 2011 Tropical Storm Irene
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
$21,660,211 CDBG-Disaster Recovery funding
Assist communities with disaster recovery– Restoration of infrastructure– Housing– Economic Development
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Allocation based on unmet needs– Federal Register pg. 22597, Appendix A.
• Allocation Methodology
Based on unmet needs– Infrastructure– Severe damage to businesses and housing
Data of assistance provided as of December 2011– Insurance– FEMA assistance– SBA disaster loans
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Statutory requirement– Funds must be targeted
• “Most impacted or distressed areas”
Only counties with $10M or more in severe unmet housing and business needs were used to determine allocation
Limited funding to states and counties– Highest level of severe unmet needs
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
HUD’s methods for estimating unmet needs– Businesses– Infrastructure– Housing
Data sources– FEMA Individual Assistance, housing unit damage– SBA , housing repair and replacement– SBA, business real estate repair, replacement, and
content loss– FEMA , Public Assistance, permanent work, federal and
state cost share (75%-25%)
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Severe Unmet Housing Needs– # of owner-occupied units FEMA-eligible for repair or
replacement– Units with $15K to $28K (major-high) damage estimates– Units with >$28K (Severe) damage estimates
– # of rental units assessed for personal property loss• Located near major-high or severe owner-occupied dwellings
– Tenants with income <$20K• Capture loss of affordable rental housing
Unmet needs estimate– FEMA grant amount and SBA loans subtracted from total
estimated damage
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Unmet Infrastructure Needs– Data from FEMA Public Assistance damage estimates
• State’s match requirement, generally 25%– Focus on permanent long-term recovery measures
Unmet Economic Revitalization Needs– Sum of real property and real content loss of small businesses,
not receiving an SBA disaster loan– Adjusted upward by percentage of applications denied,
insufficient income or poor credit• Most likely in need of CDBG-DR funding
– Real estate and content loss >$65K for estimated damage
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
80% of allocation must be targeted to areas of greatest need
– Washington and Windsor counties
State and Congressional Delegation are in discussion with HUD for greater flexibility
– Expand into Windham county
Currently must work with 80% targeting mandate
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
State must develop an Action Plan to access funding– Submit to HUD within 90 days of Notice, July 23, 2012
– HUD issues approval within 45 days, September 6, 2012
Citizen Participation– Solicit public input for development of Action Plan
– 30-day comment period, May 29-June 29, 2012
– Public Hearings• June 5 - Brattleboro
• June 7 – White River Junction
• June 12 - Montpelier
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
50% of allocation, $10,288,605 must be identified projects at initial submission of Action Plan to HUD
Remaining 50% , must be identified projects– No later than January 22, 2013
First draw down of funds– Must be by October 22, 2012
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Action Plan considered a living document– Will be amended as new information and data is identified
– Will be amended once additional specific projects are awarded
Substantial Amendments– Change in Program benefit or eligibility
– Allocation or re-allocation of $1 million
– Deletion or addition of an activity
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
CDBG-DR Regulations - Highlights
50% of funds must benefit low and moderate income– $10, 288, 685 – benefit 80% and below area median income (AMI)
50% of funds may assist activities under Urgent Need or prevention/elimination of slums and blight
CD
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Eligible Uses Buyouts of flood damaged properties in flood
plain;
Rehabilitation of homes and buildings damaged by the disaster;
Relocating residents, local government facilities and businesses to safer areas;
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Eligible Uses
Repair and reconstruction of municipal infrastructure – roads, culverts, buildings;
Homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees;
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Eligible Uses
Business financial assistance– Create or retain jobs
– Interest rate buy downs
– Rent subsidies
– Lost rental revenue
– Tourism and marketing efforts
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Eligible Uses-continued New housing production to replace lost units
Public services, counseling
Matching funds– Economic Development Authority grants (EDA)– Hazard Mitigation Grant Program (HMGP)
Debris removal not covered by FEMA or other available resources;
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Eligible Uses-continued Debris removal not covered by FEMA, or other
resources
Disaster recovery planning;
Grant administration and program delivery costs.
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Duplication of Benefit– Subrogation Agreement• Must repay Federal Disaster Assistance
– If other funds are received at a later date
– Discovery of available funds at a later date
Document , Document, Document!
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Buy out Requirements– Permanent Deed Restrictions
Flood Insurance Requirements– Property located in 100 year flood plain or Special Flood
Hazard Area (SFHA) – must maintain flood insurance
– No additional future assistance to the property
– Duty to Notify in event of transfer of property
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
DRAFT Action Plan – Development Unmet Needs and Impact Assessment– Analysis of Data - Recovery efforts to date
• Housing • Business community• Agricultural community• Tourism and Marketing• Infrastructure - roads, culverts, buildings
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Unmet Needs - Overview Housing– $24.9M as of end of 2011• $8.9M renovation needs
• $1M damaged or destroyed mobile homes
• $5.8M buy outs
• $884K homebuyer assistance
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Unmet Needs - Overview
Infrastructure -– $6.5M FEMA Public Assistance Match
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Unmet Needs - Overview Economic– $22.2M as of end of 2011• $5.4M Farm damage, 20K acres
• Over 300 businesses lost or damaged– Reconstruction needs
– Marketing needs – buy local
– Insurance negotiations
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Method of Distribution
Total Allocation $21,660,211– State Administration (5 yrs) $ 1,083,011
Grant Total $20,577,200– Competitive Grants $ 8,750,000– State Direct Grants $ 9,661,179– Contingency (10%) $ 2,166,021
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Competitive Grants Economic Recovery $3,000,000
• Businesses, Farms, Nonprofits
Housing $1,750,000• Replacement Housing, Mobile Home
• Park Replacement, Mitigation
Municipal Infrastructure $3,000,000• Projects not eligible for FEMA
• Public Assistance
Planning $1,000,000• Project Feasibility and Development
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
State Direct Grants Buy outs – Local Match and non-eligible $5,112,530
• Hazard Mitigation Grant Program (HMGP)
Housing Recovery Program $3,398,649• Rehabilitation, down payment assistance,
Financial counseling
Mobile Home Financing Program $ 500,000 Economic Recovery
• Tourism Recovery Marketing $ 250,000• Downtown Assistance $ 400,000
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Application Process
Eligible Applicants– Municipalities
– Non-profit Organizations
– For-profit Organizations
– Developers
– State Agencies
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Applications submitted online– Intelligrants Management system
Threshold Review– 10% Match (cash, cash-in-kind, grant or loans)– Implementation grant, maximum request $1M– Planning grant, maximum request $100K
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Threshold Review – cont’d– Address Presidentially declared disaster– Eligible Activity per Federal Regisiter– Meets a National Objective
• 50% of allocation - Low/Moderate Income (LMI)• 50% of allocation – Urgent Need
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Competitiveness Review– Need– Impact– Feasibility
Consultation with other State agencies
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Scoring Review, page 23-24 of Draft Action Plan
– Need 50 pts
– Impact 25 pts
– Feasibility 25 pts
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
CD Specialist summarizes for CD Board
CD Board deliberates– Makes recommendation to Agency Secretary
Secretary makes final award decision
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
State will be accepting CDBG-DR applications– Early September, after HUD’s approval of Action Plan
Applications will be submitted online– Intelligrants Management System
Expectation of review and funding decision– Within 30 days
Hazard Mitigation Grant Program (HMGP) – Buy outs
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Compliance Overview
Environmental Review– Caution – Historic Preservation/Archaeological
issues
– 8 Step Flood Plain process
Procurement– Competitive process, open and fair
– Cannot be Debarred, Excluded Parties List
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Labor Standards– Davis Bacon wage rates
• Not applicable to owner-occupied, single family
• Not applicable to <8 units of multi-family
Affirmatively Furthering Fair Housing
Civil Rights and Fair Housing Act
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Public Hearing Commences
Adjourn
E-mail [email protected]
http://accd.vermont.gov/strong_communities/opportunities/funding/cdbgdr
Community Development Block Grant Community Development Block Grant – Disaster Recovery (CDBG-DR)– Disaster Recovery (CDBG-DR)
Staff Contact Information
Jennifer Hollar, Deputy
Josh Hanford, CD Director
Ann Karlene Kroll, Grants Management [email protected]
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