iowa’s community development block grant (cdbg) program ... · impact project will have on...

Iowa’s Community Development Block Grant

(CDBG) Program:Transforming Communities

Nichole Hansen, Community Investments Team Leader

Today’s discussion» Community Development Block Grant (CDBG) overview

» Iowa’s CDBG programs

» Applying for CDBG funds & application review

» Successful projects

» Other Community Development programs

» Questions

Community Development Block Grant (CDBG) program


» Funded through the U.S. Department of Housing and Urban Development (HUD)

» Goal to “develop viable communities by providing decent housing and suitable living and expanding economic opportunities, principally for persons of low- and moderate-income.”

» Eligible applicants are non-entitlement communities (under 50,000 in population) & counties

» State of Iowa received $21.5 million in 2017


» States award grants to units of local government (cities & counties) for a variety of community development activities.

» Each state has the ability to create programs and decide how funds are to be spent, but…..

» Every activity funded with CDBG funds must meet one of the national objectives: – Low- and Moderate-Income Benefit (70% of total funding)– Slum and Blight Elimination– Urgent Need

2017 Allocation Chart

CDBG Water and Sewer Fund» 2017 program set-aside was just over $7 million (33% of CDBG funds)

» Funds community infrastructure projects

» Eligible Activities include:

– Water and wastewater treatment facilities• Expansion, rehabilitation, new construction

– Water and wastewater collection systems• Rehabilitation, new construction

– Water storage– Wells– Storm water/sanitary sewer separation

CDBG Water and Sewer Fund» Maximum award amounts are determined by community size and

range from $300,000 to $800,000

» Communities under 1,000 may receive up to $1,000 per person

» Projects must be ready to proceed at time of application in order to be funded:

– Facility plan/ engineering plan approved by the Dept. of Natural Resources

– Local match committed & documented in writing

– Primarily serve low to moderate income individuals

CDBG Community Facilities Fund» 2017 program set-aside was just over $1.5 million (7% of CDBG

funds)

» Funds variety of facilities such as daycares, health clinics, senior centers, shelters, etc.

» Program not for-profit facilities- operated by non-profits

» Cannot fund facilities for the “general conduct of government” (i.e. City Hall)

CDBG Community Facilities Fund» Maximum award amounts are determined by community size and

range from $300,000 to $800,000

» Communities under 1,000 may receive up to $1,000 per person

» Projects must be ready to proceed at time of application in order to be funded:

– Entity must have site control (own property or have an option)

– Primarily serve low to moderate income individuals

CDBG Housing Rehabilitation Fund» 2017 program set-aside was just over $4.7 million (22% of CDBG

funds)

» Provides funds for rehabilitation of owner occupied single family homes with a focus on health and safety repairs

» Homeowners must be low to moderate income (based on household income)

CDBG Housing Rehabilitation Fund

» Up to $24,999 per home available through CDBG (plus funds for lead paint hazard reduction activities)

» Communities apply to IEDA for funding & programs are administered locally. Homeowners work directly with the community.

» Projects must be ready to proceed at time of application– Must have plan describe how program will be administered– Projects with homeowners identified and income qualified are more competitive

CDBG Downtown Revitalization Fund

» 2017 program set-aside was just over $3.2 million (15% of CDBG funds)

» Funds downtown building façade improvements. Typically includes 10-15 buildings

» Includes high level of coordination between the city, property owners, and IEDA

» Projects must:– Show how project will eliminate slum and blight– Work with an architect to develop plans for building improvements– Meet federal historic preservation standards (if building/ area is historic)

CDBG Downtown Revitalization Fund

» Maximum award of $500,000. Projects with less than 8 building included will likely be awarded less.

» Projects will require additional funds from the building owner, city, and/ or other sources

» Projects must be ready to proceed at time of application– Identified buildings to be included in the project– Architect procured with cost estimates prepared– Local match identified/ committed

Applying for CDBG funds» All applications for CDBG programs are submitted online through

www.iowagrants.gov

http://www.iowagrants.gov/

Applying for CDBG funds» Click on “Grant Opportunities” and search by program type

Applying for CDBG funds» You can click on specific programs for instructions and program

information

Applying for CDBG funds» To actually start/ prepare an application, you must have an

iowagrants.gov account

» The website will give you instructions on how to register for an account (It’s easy!)

» Most cities have their regional planning commissions/ COGs or consultant prepare the CDBG application(s) on their behalf. (These entities are very familiar with Iowagrants.gov)

CDBG Application due dates» Water and Sewer CDBG applications are submitted and reviewed

quarterly.

» Applications for other CDBG programs covered today are submitted and reviewed annually.

CDBG Application due dates

CDBG Water & Sewer application deadlines

January 1 Awards announced in March

April 1 Awards announced in June

July 1 Awards announced in September

October 1 Awards announced in December

CDBG Application due dates

2018 CDBG application deadlines (Annual programs)

Community Facilities

April 20, 2018 Awards announced in July

Downtown Revitalization

April 27, 2018 Awards announced in July

Housing Rehabilitation

May 4, 2018 Awards announced in July

CDBG Review Criteria» Iowa’s CDBG programs are competitive programs; We received more

applications annually than we are able to fund.

» Applications are reviewed and scored by a team of reviewers, based on established criteria for each program.

» Review criteria is discussed and covered at IEDA’s CDBG application workshop, held annually

Water and Sewer Review Criteria» Need for the Project

– Health or safety concerns (DNR violation) or is project just an amenity

» Timely Start and Completion– Realistic construction start date and overall timetable to complete project

» Local Funds Leveraged– % of project leveraged with other funds

» Cost Per Beneficiary – Amount of CDBG funding requested for each beneficiary

Water and Sewer Review Criteria » Project Impact

– Best long term option, A/E and/or DNR recommendations

» Readiness to proceed– Preliminary / final design complete, matching funds secured, construction permits

» Capacity to operate/ maintain– Does applicant have adequate resources to maintain infrastructure?

» Benefit to low and moderate individuals– % of beneficiaries that are low to moderate income

Community Facilities Review Criteria» Timely Start and Completion

– Realistic construction start date and overall timetable to complete project

» Local Funds Leveraged– % of project leveraged with other funds

» Cost Per Beneficiary – Amount of CDBG funding requested for each beneficiary

» Project Impact

Community Facilities Review Criteria» Readiness to proceed

– Plans underway/complete, matching funds secured

» Project Impact

» Benefit to low and moderate individuals– % of beneficiaries that are low to moderate income

» Meets/ exceeds Iowa Green Streets criteria

» Capacity to operate/ maintain– Does applicant have adequate resources to maintain facility & continue operations?

Housing Rehabilitation Review Criteria» Need for project

» % of low to moderate income persons in project area

» % of properties in the project are eligible for rehab

» Project impact– What % of homes in project area will benefit?

» Degree that project is part of a community comprehensive housing strategy

Housing Rehabilitation Review Criteria» Degree that project is part of a community comprehensive

housing strategy

» Community involvement in other housing/ community improvement activities

» Readiness to proceed– Marketing efforts, pre-applications from homeowners

Downtown Revitalization Review Criteria» Local Funds Leveraged

– % of project leveraged with other funds

» Impact project will have on elimination of slum and blight

» Timely completion– Scope can realistically completed within 3 years of award

» Degree of community involvement with proposed project– Community outreach, public input

Downtown Revitalization Review Criteria

» Meets or exceeds Iowa Green Streets standards

» Readiness to proceed

» % of properties in target area that will be impacted

Application Tips» Start planning early! Look at application deadlines and plan

accordingly– Review application instructions & understand what must be in place prior to the application

» Be clear and concise in the application and be sure to answer questions completely.

» Feel free to contact IEDA with questions on your potential project or the application. We are happy to talk through those with you!

» Most cities/counties utilize their regional planning commission/ COG or consultant for application preparation.

Federal Requirements» Certain federal requirements apply to CDBG funded projects, including:

– Environmental assessment/ review– Federal labor standards/ prevailing wages (Davis Bacon)– Section 106 of the National Historic Preservation Act – And others- But that’s a whole other presentation!

» IEDA provides funding within our CDBG awards for communities to hire a grant administrator to manage CDBG program compliance (COGs or consultants)

Successful CDBG Projects » City of Coggon (pop 658)

» Received a $300,000 CDBG Water and Sewer award in 2015

» New wastewater treatment facility

» Total project cost of $3.5 million

» Matching funds from USDA Rural Development

Successful CDBG Projects

Successful CDBG Projects » City of Orange City (pop 5,582)

» Received a $470,000 CDBG Community Facilities award in 2015

» 10,000 square foot addition to the Orange City Area Daycare, along with remodeling

» Project increased capacity from 200 to 300 children

» Total project cost of $1 million

» Matching funds from cities, college and school district

Successful CDBG Projects

Successful CDBG Projects » City of Fenton (pop 279)

» Received a $235,000 CDBG Housing Rehabilitation award in 2016

» Allowed for rehabilitation of 6 homes occupied by low and moderate income individuals

» Matching funds from city of Fenton

Successful CDBG Projects Before rehabilitation

Successful CDBG Projects After rehabilitation

Successful CDBG Projects » City of Montezuma (pop 1,462)

» Received a $488,259 CDBG Downtown Revitalization award in 2013

» Allowed for rehabilitation of 18 downtown building facades

» Total project cost of just over $1 million

» Matching funds from city of Montezuma & building owners

State of Iowa Consolidated Plan What is a Consolidated Plan?

» Per HUD, the Consolidated Plan “is designed to help states and local jurisdictions to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions.”

» For states, plan is a 5-year plan that describes the state’s community development needs/ priorities and establishes goals, based on a needs analysis (community development & housing)

» Iowa’s next plan is due in November of 2019

State of Iowa Consolidated Plan » Major policy and program changes, if any, are typically generated

from the Consolidated Plan & planning process

» Could include revisions to the CDBG method of distribution

» We welcome your input on our next plan!

» Plenty of opportunities for input during the planning process– Last planning process included an online survey, 2 public hearings, and

focus group meetings

State of Iowa Consolidated Plan » 2020-2014 Iowa Consolidated Plan Timeframe:

– February 2018: Issued RFP for consultant to assist with plan

– May 2018: Receive approval from IEDA board to contract with selected consultant

– July 2018- March 2019: Data collection & public input

– March 2019- September 2019: Plan development

– October 2019: Draft of Consolidated Plan open for public comment

– November 2019: Consolidated Plan due to HUD

– January 1, 2020: Consolidated Plan becomes effective

Nuisance Property & Abandoned Building Remediation program


» State loan program created in 2015

» Provides loan funds to cities to address nuisance properties & abandoned buildings

» Properties must be a public nuisance through abandonment, chronic building code violations or dilapidation that is hazardous to public health and safety

» Can be residential or commercial properties


» Loans only- program does not allow for grants

» Loan terms vary from project to project

» Interest rates from 0% to 3% interest. Terms may range from 1 to 5 years

» Contact Ed Basch at IEDA with questions

[email protected]

»

mailto:[email protected]

Historic Preservation & Cultural & Entertainments Tax Credits


» Program provides tax incentives to developers for the redevelopment & rehabilitation of historic properties in Iowa

» May be used for residential development, but also for commercial and other uses

» State investment tax credit of 25% of “qualified rehabilitation expenditures” as defined by IRS code. Credits are transferrable & refundable.

» IEDA administers project in partnership with the State Historic Preservation Office


» Rehabilitation work must meet federal Secretary of Interior’s Standards for Rehabilitation

» Contact Dan Hansen at IEDA with questions:

[email protected]


Questions? Thank you for your interest in the CDBG program!

Nichole Hansen 515.348.6215

[email protected]


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