cdbg stimulus competition the georgia department of community affairs
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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
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 Direct Assistance to Private Businesses
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)
Unemployment & Demographic Score 60 Points Available
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.
Unemployment & Demographic Score 60 Points Available
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;
Feasibility Score 150 Points Available
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.
Feasibility Score 150 Points Available
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.
Impact Score 150 Points Available
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
Impact Score 150 Points Available
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
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
Level 2: (Below Average) 25.0
Level 3: (Average) 50.0
Level 4: (Good) 75.0
Level 5: (Excellent) 100.0
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