Harris County Community and Economic Development Department

1
Harris CountyCommunity and Economic Development
Department

• Community Development Block Grant
• (CDBG) General Workshop

2
Agenda

• Overview of HCCEDD
• Overview of CDBG General
• National Objectives
• Eligible and Ineligible Activities
• Recordkeeping Monitoring
• Questions Wrap-up

3
Service Area
4
Service Area

• The Service Area included unincorporated
  Harris County and its 15 cooperative cities.
• Bellaire Seabrook
• Deer Park Shoreacres
• Galena Park South Houston
• Humble Tomball
• Jacinto City Waller
• Katy Webster
• LaPorte West University Place
• Morgans Point
• Houston, Baytown and Pasadena receive their own
• entitlement funds and are not included
• in the Harris County service area.
• In addition to Target Areas, there are now
  Disadvantage Zones located in the Harris County
  Service Area. (Target Areas with 60 or greater
  of low-moderate income individuals)

5
How it Works
6
The Consolidated Plan

• Five-year plan that addresses
• Housing
• Social services
• Infrastructure and
• Community revitalization needs.
• Specifies types of projects to be funded
• Application for federal funds under HUDs formula
  grant programs
• CDBG
• HOME / ADDI and
• ESG.
• Basis for assessing performance

7
The Consolidated Plan aids decision makers in
creating strategies to address the following.

• Employment and employability
• Affordable housing
• Adequate streets
• Water, sewage and drainage systems
• Quality education and Workforce Development
• Parks and green space
• Community facilities
• Quality health care
• Crime awareness and public safety and
• Safe, peaceful and productive neighborhoods for
  low- and moderate-income communities

8
Request for Proposals (RFP)

• Solicitation and acceptance of proposals
• According to federal and state procurement laws
  and standards
• Applicants must
• Be a non-profit organization or governmental
  agency or entity
• Expend funds within a 12-month period
• Have sufficient working capital
• Meet one Consolidated Plan Objective
• Meet one National Objective
• Benefit eligible residents in HCCEDDs HUD
  Service Area.
• Used to address objectives identified in Harris
  Countys Consolidated Plan

9
Annual Action Plan (AAP)

• Detailed description of the allocations of Harris
  County HUD entitlement dollars (CDBG, HOME, and
  ESG).
• Discusses how resources generated by tax dollars
  will be utilized for the upcoming program year.

10
Agencies Receive Allocations

• Contracts are developed between Harris County and
  agencies.
• Funds are dispersed on a reimbursement basis.
• Grants Management staff monitors all projects.

11
Consolidated Annual Performance Evaluation
Report (CAPER)

• Describes progress.
• Reports on and reviews countys use of
  Entitlement funds.
• Benchmark for projects to be funded.
• Allows for self-assessment.

12
Community Development Block Grant

• General

13
CDBG Overview

• Local governments participate in one of these
  two programs.
• Entitlement Program
• Cities 50,000 in population
• Urban counties 200,000
• States and Small Cities Program
• Cities
• States

14
CDBG Overview

• The amount of CDBG funds that local
  governments receive annually are determined by
  the higher of two formulas
• Data based on overcrowded housing, population,
  and poverty or
• Data based on age of housing, population growth
  lag, and poverty.
• The regulations implementing the CDBG Program
  are found at 24 CFR Part 570.

15
CDBG Overview

• The Primary Objective of CDBG Program is
• The development of viable urban communities
  through the provision of the following,
  principally for low- and moderate-income (LMI)
  persons
• decent housing,
• a suitable living environment,
• and economic opportunity.

16
CDBG Overview

• Median Family Income (MFI) in the Harris County
  area is 61,000 for a family of four.

17
National Objectives

• Each eligible activity must meet one of
• three national objectives
• Aid in the prevention of slum and blight
• Urgent Need
• Benefit to low- and moderate-income
• persons

18
National Objectives Aid in the Prevention of
Slums and Blight

• Prevention or elimination of slums and blighted
  conditions must either
• Eliminate slum and blight on an area basis
• Eliminate slum and blight on a spot basis or
• Be in an urban renewal area.

19
National ObjectivesAid in the Prevention of
Slums and Blight

• Activities may qualify under Slum/ Blight
  National Objective (Area Basis) if
• The area meets the definition of slum, blighted,
  deteriorated, or deteriorating area under state
  or local law
• Substantial number of buildings or public
  improvements are in a state of deterioration
• Documentation is maintained regarding boundaries
  and conditions which qualified the area and
• Activities address one or more of the conditions
  which contributed to the deterioration.

20
National ObjectivesUrgent Need

• Alleviates emergency conditions.
• Existing conditions pose a serious and immediate
  threat to health or welfare
• Existing conditions occurred within past 18
  months
• Recipient is unable to finance the activity on
  its own and
• Other sources of funding are not available.

21
National Objectives Benefit to Low- and
Moderate-Income Persons

• Area Benefit
• Limited Clientele
• Housing Activities
• Job creation/retention

22
National Objectives Benefit to Low- and
Moderate-Income Persons

• Area Benefit Activities must
• Benefit all residents in an area where at least
  51 of the residents are LMI. (Examples
  Water/Sewer Libraries Neighborhood/Community
  Centers Parks, Streets and Sidewalks).
• Be of a nature and location that it can be
  concluded that primary clients are LMI or
• Benefit a clientele presumed to be LMI or
• Require documentation on family size and income
  to show that at least 51 of the clientele are
  LMI and
• Have income eligibility requirements continued

23
National Objectives Benefit to Low- and
Moderate-Income Persons

• Limited Clientele
• Eligible Activities must
• Be of a nature and location that it can be
  concluded that primary clients are LMI or
• Benefit a clientele presumed to be LMI or
• Require documentation on family size and income
  to show that at least 51 of the clientele are
  LMI and
• Have income eligibility requirements continued

24
National Objectives Benefit to Low- and
Moderate-Income Persons

• Limited Clientele Continued
• Serve a group primarily presumed to be LMI
• Abused children
• Battered spouses
• Elderly persons
• Severely disabled persons
• Homeless persons
• Illiterate adults
• Persons living with AIDS
• Migrant farm workers.

25
National Objectives Benefit to Low- and
Moderate-Income Persons

• Housing Activities
• Provide or improve permanent residential
  structures to be occupied by LMI persons.
• Note At least 51 must be LMI occupied, if the
  structure contains more than one unit.

26
National Objectives Benefit to Low- and
Moderate-Income Persons

• Job creation or retention
• Creation or retention of permanent jobs, at
  least 51 to be made available to or held by LMI
  persons.

27
Eligible Activities

• The following activity types are eligible under
  the CDBG program
• Housing
• Public Facilities and Improvements
• Public Services
• Economic Development
• Other

28
Housing

• Housing activities can be divided into the
  following categories
• Owner-occupied housing
• Renter-occupied housing

29
Owner-Occupied Housing

• Eligible owner-occupied housing activities
  include
• Homeowner rehabilitation
• Direct homeownership assistance.

30
Owner-Occupied Housing

• Homeowner Rehabilitation
• Eligible activities include
• Weatherization
• Energy efficiency
• Handicapped accessibility improvements
• Emergency repairs
• Lead-based paint testing and abatement.

31
Owner-Occupied Housing

• Homeowner Rehabilitation (continued)
• Labor and materials are eligible costs, as well
  as
• Replacement of principal fixtures and components
  of existing structures
• Energy efficiency improvements
• Water and sewer connections and
• Installation of security devices, including smoke
  detectors.

32
Owner-Occupied Housing

• Direct Homeownership Assistance
• for low-income households
• Provide up to 50 of the required downpayment
• Pay reasonable closing costs
• Provide principal write-down assistance
• Subsidize interest rates

33
Owner-Occupied Housing

• Special Housing Activities
• Only Community-Based Housing Organizations
  (CBDOs)
• Construct housing, using CDBG funds and
• Sell the homes to only LMI homebuyers in
  conjunction with a neighborhood revitalization or
  community economic development project.

34
Owner-Occupied Housing

• Ineligible CDBG Owner-Occupied Housing
  Activities
• Subsidizing or assisting the new construction of
  housing, unless carried out by a CBDO or
• Purchasing construction equipment.
• (Leasing is allowable if the activity is
  eligible.)

35
Renter-Occupied Housing

• Eligible renter-occupied housing activities
• Acquisition of property for an eligible rental
  housing project
• Rental housing rehabilitation and
  acquisition/rehab projects and
• New construction of rental housing by a CBDO is
  eligible, if the construction activity is part of
  neighborhood revitalization, community economic
  development project.

36
Renter-Occupied Housing

• Ineligible renter-occupied housing activities
• Construction of new rental housing (except when
  carried out by a CBDO)
• Assistance to rental properties in which less
  than 51 of the units will be occupied by LMI
  households
• Subsistence-type payments (income payments) for
  rent and utilities (except in emergency
  situations for up to three months).

37
Public Facilities Improvements

• Eligible public facilities and improvements
  include
• Infrastructure improvements (e.g., street
  improvements, water and sewer lines).
• Neighborhood facilities (e.g., recreational
  facilities, parks, playgrounds).
• Facilities for persons with special needs (e.g.,
  facilities for the homeless or battered spouses,
  nursing homes or group homes for the disabled).
• If the facility is owned by a nonprofit, it
  must be open to the public during normal working
  hours.

38
Public Facilities Improvements

• Ineligible public facilities and improvements
  activities
• Maintenance and repair of public facilities and
  improvements (e.g., filling potholes, repairing
  cracks in sidewalks, mowing grass at public
  recreation areas, replacing street light bulbs)
• Operating costs associated with public facilities
  or improvements unless part of a CDBG-assisted
  public service activity
• Construction, maintenance or historic
  preservation of buildings used for the general
  conduct of government.

39

• Remember
• Projects must benefit
• Harris County Service Area Residents.

40
Recordkeeping Monitoring

• Overview
• General recordkeeping requirements
• Access to records
• Retention of records
• Monitoring
• Reporting requirements

41
General Recordkeeping Requirements

• Records should be
• Accurate, complete, orderly and
• Maintained in order to
• Document all CDBG funded activities and
• Demonstrate compliance with all applicable
  program and other requirements.
• According to U.S. Department of Housing and
  Urban Development Department (HUD) 24 CFR Part
  570 and Part 570.208.

42
General Recordkeeping Requirements

• CDBG funded organizations must establish and
  maintain
• Administrative records
• Financial Records, and
• Project/case files.

43
Access to Records

• Records are used to create audits,
  examinations, excerpts and transcripts. The
  following have access to records of CDBG funded
  organizations
• HCCEDD representatives
• HUD representatives
• Comptroller Generals Office of the United
  States
• Other authorized governmental agencies
• Citizens (24 CFR 570.508).

44
Retention of Records

• Retain records for periods of time after annual
  project activities have been completed to avoid
  findings.
• Retain records for five years from the date of
  submission of the CAPER in which activity is
  reported for the last time.
• For all organizations (per 24 CFR
  570.502(b)(3), 24 CFR 85.42, and OMB Circular
  A-110, Attachment C)

45
Monitoring

• The primary mission of monitoring is to ensure
  that organizations are
• In compliance with all regulations governing
  their administrative, financial, and programmatic
  operations and
• Achieving their performance objectives within the
  schedule and budget, as outlined in the Agreement.

46
Monitoring

• Five steps in a monitoring visit
• Notification letter
• Entrance conference
• Documentation, data acquisition and analysis
• Exit conference
• Monitoring letter

47
Reporting Requirements

• Reporting requirements are specified by the
  Grantee (HCCEDD) in the Subrecipient Agreement.
• Programmatic and Financial Reimbursement Request
  Reports are due monthly.
• Quarterly and Annual reports may also apply.
• 24 CFR 570.503(b)(2)

48
Questions and Answers