Draft ACTION PLAN Community Development Grant Program Disaster Recovery (CDBG-DR)

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Draft ACTION PLANCommunity Development Grant
Program 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• PUBLIC HEARING AGENDA
• Overview
• CDBG-DR Regulations - Highlights
• Proposed Timeline
• Presentation of Draft Action Plan
• Clarifying Questions Answers
• Public Input

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Community Development Block Grant 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• 21,660,211 CDBG-Disaster Recovery funding
• Assist communities with disaster recovery
• Restoration of infrastructure
• Housing
• Economic Development

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• HUDs 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)

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Community Development Block Grant 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 gt28K (Severe) damage estimates
• of rental units assessed for personal property
  loss
• Located near major-high or severe owner-occupied
  dwellings
• Tenants with income lt20K
• Capture loss of affordable rental housing
• Unmet needs estimate
• FEMA grant amount and SBA loans subtracted from
  total estimated damage

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Unmet Infrastructure Needs
• Data from FEMA Public Assistance damage estimates
• States 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 gt65K for estimated
  damage

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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.

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Community Development Block Grant 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!

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Unmet Needs - Overview
• Infrastructure -
• 6.5M FEMA Public Assistance Match

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Application Process
• Eligible Applicants
• Municipalities
• Non-profit Organizations
• For-profit Organizations
• Developers
• State Agencies

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Community Development Block Grant 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Threshold Review contd
• 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Competitiveness Review
• Need
• Impact
• Feasibility
• Consultation with other State agencies

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Scoring Review, page 23-24 of Draft Action Plan
• Need 50 pts
• Impact 25 pts
• Feasibility 25 pts

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• CD Specialist summarizes for CD Board
• CD Board deliberates
• Makes recommendation to Agency Secretary
• Secretary makes final award decision

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• State will be accepting CDBG-DR applications
• Early September, after HUDs approval of Action
  Plan
• Applications will be submitted online
• Intelligrants Management System
• Expectation of review and funding decision
• Within 30 days

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• Hazard Mitigation Grant Program (HMGP) Buy outs

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Community Development Block Grant 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

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Labor Standards
• Davis Bacon wage rates
• Not applicable to owner-occupied, single family
• Not applicable to lt8 units of multi-family
• Affirmatively Furthering Fair Housing
• Civil Rights and Fair Housing Act

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Public Hearing Commences
• Adjourn
• E-mail ACCD.CDBGDisasterRecovery_at_state.vt.us
• http//accd.vermont.gov/strong_communities/opportu
  nities/funding/cdbgdr

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Community Development Block Grant Disaster
Recovery (CDBG-DR)

• Staff Contact Information
• Jennifer Hollar, Deputy
• Jennifer.Hollar_at_state.vt.us
• Josh Hanford, CD Director
• Josh.Hanford_at_state.vt.us
• Ann Karlene Kroll, Grants Management Director
• AnnKarlene.Kroll_at_state.vt.us