CDBG Stimulus Competition The Georgia Department of Community Affairs.

CDBG Stimulus Competition

The Georgia Department of Community Affairs

Background on Supplemental CDBG Stimulus Funds Supplemental Appropriation through the ‘‘American Recovery

and Reinvestment Act of 2009’’ (ARRA);

ARRA Uses Existing FFY 08 CDBG Delivery Systems Entitlement Programs

$11,108,569 Non-Entitlement State Program (DCA)

$10,866,994

Adapt Existing Systems Through a Substantial Amendment of Approved (by HUD) FFY 08 Plans

Background on Supplemental CDBG Stimulus Funds ARRA Objective of Jobs and Economic Growth Through CDBG

Conformance with CDBG Statute, Regulations and Guidance supplemented by specific federal ARRA requirements

Funds are “Available Until” 9/30/2010

Priority to projects that can award contracts within 120 days

HUD guidance expected on “expediting” use of funds and certain waivers

“Buy American” Provisions

Specific Federal ARRA Guidance

White House (OMB) Guidance Re ARRA Transparent merit-based decision-making Long-term public benefits should support

demonstrated ability to deliver results maximum efficiency in creating or retaining jobs

cost per job must be considered Investments in technological advances to improve quality of

life and economic efficiency Targeting Assistance Consistent With Other Policy Goals

Collaboration Between Agencies (SBA, Commerce, Labor, Education (Colleges and Universities), etc)

Update and Changes to DCA Guidance All Materials Located on DCA Web Site

www.dca.ga.gov/communities/CDBG/programs/cdbgstimulus.asp

Stand Alone CDBG Stimulus Competition Due Date of June 1, 2009 (COB or Postmarked)

Reevaluation following publication of HUD Notice

All State CDBG Communities are Eligible Possible Exceptions for Slow Performers, Unresolved

Findings and Sanctions, RLFs with liquidity

New CDBG Stimulus Applicants’ Manual

Special ARRA / CDBG Competitiveness Provisions

Most Competitive Projects will have Maximized job creation and retention

Utilization of full-time equivalent calculation Completed acquisition of any needed real estate Obtained required permitting is complete Completed & approved architectural & engineering

Assurance regarding “Buy American” provisions Completed NEPA review requirements No site assessment liability issues (Phase I & II)

Assessed within the rating and selection criteria

Special ARRA / CDBG Competitiveness Provisions

Note that local governments are encouraged to consider regional approaches to job creation and economic growth. Regional approaches will obtain consideration of combined demographics which will be more competitive than “stand-alone” applications.

Application of CDBG National Objectives (1) Benefiting low- and moderate- (L/M) income persons (2) Addressing slums or blight; or (3) Meeting a particularly urgent community development

need

For CDBG Stimulus only, the State will lower the L/M threshold to 51% Therefore ALL national objectives will be accepted but be

required to meet the L/M 51% threshold For job creation projects where permanent employees

are taken from certain state training programs, an assumption of L/M benefit exists

Eligible State CDBG Applicants

All local governments which were “non-entitlement” governments for FFY 2008 and eligible for the State CDBG Program are eligible for the CDBG Stimulus competition

Receipt of a 2008 or 2009 annual CDBG grant does not preclude a local government from applying for CDBG Stimulus funding

Public and private “Sub-recipients” are not directly eligible for State CDBG; rather, they must work through a sponsoring local government(s)

Eligible State CDBG Activities

ARRA directs that grantees use Stimulus funds to maximize job creation, economic benefit and for activities that can be initiated within 120 days. Such projects may involve any eligible CDBG activity; however, to the extent that the minimum benefit threshold to LMI persons is met, the Department recommends that the following activities be considered …

The provision of assistance to private, for-profit entities (including small businesses and micro-enterprises), when the assistance is appropriate to: create or retain jobs for low- and moderate-income persons; prevent or eliminate slums and blight; meet urgent needs; create or retains businesses owned by community residents;

and assist businesses that provide goods or services needed by,

and affordable to, low- and moderate-income residents

Eligible State CDBG Activities Direct Assistance to Private Businesses


Recipient – City GovernmentSub-Recipient – Small Business

CDBG Loan - $210,000Project – RehabilitationPrivate Investment - $310,000Seven (7) Permanent Jobs Made “Available To” LMI

Private/Public Investment eliminated blight, created small business owned by community resident that provides needed services to a LMI community

The provision of assistance to private, for-profit entities (including small businesses and micro-enterprises), could also be structured through an regional application that uses a intermediary regional organization: the intermediary regional non-profit entity could establish an

agreement with the applicant local governments to become a CDBG “sub-recipient” to re-loan the assistance to eligible for-profit businesses, microenterprises or non-profits that themselves make loans to micro-enterprises RDC’s, regional development authorities, nonprofits and

similar entities with proven track records may qualify – call DCA to discuss…


Eligible State CDBG Activities Public Works and Public Facilities

The acquisition, construction, reconstruction, or installation of public works, facilities (except for buildings for the general conduct of government), and site or other improvements.

“public works” …. Publicly-owned water, sewer, gas, drainage, rail, fiber, etc that will be extended to an industrial or commercial business, corporation or small businesses to promote job creation

Creative use of a public lease (i.e. development authority) can qualify facilities as “public”

“publicly-owned facilities” … job training or workforce development centers, health centers, business incubators

Again, creative use of public leases combined with collaborative partnerships with colleges, hospitals, research institutes, etc.

Eligible State CDBG Activities Public Works and Public Facilities

The acquisition, construction, reconstruction, or installation of public works, facilities (except for buildings for the general conduct of government), and site or other improvements.

This activity can also be used to assist traditional CDBG neighborhood revitalization projects (competitive?)

Ineligible State CDBG Activities

Pursuant to ARRA, certain activities are specifically excluded from eligibility, including: casinos or other gambling facilities; aquariums; zoos; golf courses; swimming pools and similar recreation projects.

Note that these activities have NEVER been eligible for Georgia’s State CDBG Program

Also, it is unclear from the ARRA legislation whether state or local administration is an eligible activity. DCA will provide information on administrative cost eligibility as soon as HUD provides guidance.

State CDBG Grant Amounts

Maximum of $500,000 per award Note CDBG cost per job or beneficiary is a major

competitive factor

Receipt of a 2008 or 2009 annual CDBG grant does not preclude a local government from applying for CDBG Stimulus funding

“Sub-recipients” are not directly eligible for State CDBG; rather, they must work through a sponsoring local government(s)

State CDBG Other Application Notes Applications may be submitted individually by one unit

of general purpose local government, or jointly, by two (2) or more units of general purpose local government. Joint submissions must contain a copy of the Cooperating Agreement entered into by the cooperating units of government. The agreement should designate the unit of local government that will serve as the lead applicant. Multi-government regional applications are encouraged for

small business development projects

Applicant Citizens Participation

Applicants must follow the Department’s approved Citizen Participation Plan available on the DCA website at www.dca.ga.gov/communities/CDBG/

Applicants for and recipients of CDBG Stimulus funds must certify that they will follow this plan and provide for and encourage participation in the planning, implementation and assessment of their CDBG program

See Applicants’ Manual

Competitive Rating and Review Criteria

Review Factor Max Points Available

Unemployment/Demographic Need 60 pointsProgram Feasibility 150 pointsProgram Impact 150 pointsProgram Strategy 100 pointsBonus for Project Readiness 40 points

Total Available Points 500 points

Final Competitive Rank and Selection

Final Ranking and Grant Selection: The points received by each applicant on the rating

factors will be totaled and the total scores ranked accordingly. Grant awards will be based on this final ranking to the extent funds are available. In case of ties, the applicant with the highest unemployment score will be given priority.

Transparent, merit based system. Detailed explanations of scores will be available to all Applicants

Unemployment & Demographic Score 60 Points Available

Number of People Unemployed (20 points)

Percent of People Unemployed (20 points)

Per Capita Income (20 points)


Note that for unemployment criteria each eligible local government will be compared in terms of the number and rate of people unemployed. Individual scores will be obtained by dividing each government’s number of persons or rate by the greatest number of persons or rate unemployed and multiplying it by 20 Note that for non-entitlement cities, unemployment

numbers and rates will be estimated by applying the latest Georgia DOL unemployment data for a particular county and prorating based on the jurisdiction’s population.


All eligible local governments will be compared in terms of their per capita income. Individual scores will be obtained by dividing each

government’s per capita income into the lowest per capita income of any eligible local government and multiplying by 20.

Data sources for per capita income include the most recent data from Claritas, Inc. for each jurisdiction.

Feasibility Score 150 Points Available

The following factors will be considered wherever applicable: Ability of the applicant to have the project bid and contract

awarded within 120 days; Reasonable project timetables; Completion of all necessary engineering, architectural, and/or

site plans and designs; Completion and documentation of all necessary property

acquisition; Completion of all required local, state, and federal permits

(environmental, historic preservation, NEPA, etc. as applicable) Absence of, or complete resolution of, environmental remediation

needs;


Documentation and reasonableness of costs; Where applicable, documentation that preliminary engineering,

architectural or site plans have been prepared and support the proposed project;

Documentation of funding commitments from other project funding sources;

Demonstration of compliance with applicable local, state, and federal laws;

Administrative capacity of the applicant to administer funds and demonstration of adequate CDBG implementation history;

Determination by DCA that partnering organizations, businesses and/or sub-recipients are reputable, able to perform and credit worthy; and

Documentation that all applicable financing is ready to invest.


Level 1: (Poor) 0.0

Level 2: (Below Average) 37.5

Level 3: (Average) 75.0

Level 4: (Good) 112.5

Level 5: (Excellent) 150.0

Impact Score 150 Points Available

Number of temporary construction jobs/beneficiaries created and/or retained (FTE);

Number of permanent jobs/beneficiaries created and/or retained (FTE);

CDBG Stimulus cost per job/beneficiary;

Project's impact on local unemployment rates; and

Project’s impact on the benefiting populations’ quality of life or opportunity for economic advancement.


Calculation of Full Time Equivalent (FTE) positions for construction and permanent jobs

To calculate FTE’s one will determine the start and end date of the temporary job, calculate the total hours worked of all temporary workers, and divide by 40 to arrive at the FTE number

Note that created permanent jobs must meet the Low-and Moderate-Income national objective

DCA Certification & Release Form for each job

Both construction and permanent jobs will need to be reporting


Level 1: (Poor) 0.0





Strategy Score 100 Points Available

Project’s relationship to overall objectives of the general CDBG and ARRA to use funds in a manner that maximizes job creation and economic benefit, especially with respect to permanent job creation for low and moderate income person;

Demonstration of local government’s need for Stimulus funds due to financial or economic constraints resulting from the current state of the economy;

Demonstration of local government’s or sub-recipient’s capacity to operate and maintain facility/infrastructure proposed to be funded with Stimulus funds; and

Demonstration of capacity of proposed sub-recipients for administration, accountability and meeting investment commitments. Regionalism is encouraged as one method to enhance capacity

Strategy Score 100 Points Available

Level 1: (Poor) 0.0





Bonus Points for Readiness 40 Points Available

Completion of all required designs—15 points;

Acquisition of all applicable local, state, and federal permits—10 points;

Completion of bid documents—10 points;

Completion of NEPA environmental review— 5 points;

Accountability and Oversight

If funded, your project will be extensively monitored and audited by both state and federal agencies and resources

Local governments must make it a priority to know and understand the details of the CDBG and ARRA compliance requirements within the Applicants Manual

If improperly designed and implemented, the Department will disallow costs, apply sanctions and require the repayment of misspent funds

Reporting Requirements

If funded, your project will be subject to the quarterly outcome and financial reporting requirements for State CDBG In addition, DCA will modify to include provisions for FTEs

and temporary (construction) jobs Davis-Bacon and Labor Standards reporting

requirements will apply and recipients will be responsible for obtaining and monitoring required payroll information

Other reporting requirements may also be required by HUD and OMB as the program develops

Contact Information

www.dca.ga.gov/communities/CDBG/programs/cdbgstimulus.asp

[email protected] Steed Robinson, 404-679-3168 Joanie Perry, 404-679-3173 Glenn Misner, 404-679-3138 Brian Williamson, 404-679-1587

CDBG Stimulus Competition The Georgia Department of Community Affairs.

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