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HomeMy WebLinkAboutHOME Program infoMONTANA DEPARTMENT OF COMMERCE HOME Program 836 Front Street PO Box 200545 Helena, MT 59620-0545 TO: Persons Interested In the Montana HOME Program FROM: Montana HOME Program SUBJECT: Request for Feedback on Potential Program Changes Phone: (306) 444-0092 FAX: (406) 444-9774 TDD: (406) 444-2978 HIE "' 0 [? =E4 D CITY OF LAUREL DATE: December 13,2000 During recent Consolidated Plan public input meetings, MDOC proposed a number of potential program changes. This letter shares the potential changes with you and requests your comments and feedback. The HOME Program serves a very diverse customer base with affordable housing as the common denominator. Decisions regarding the following potential changes will be made in concert with the goals set for the HOME Program in the Montana Consolidated Plan. We will not make changes solely based on one particular group's needs or desires, unless our customers as a whole will derive some benefit. We are interested in hearing your reason and logic behind supporting or not supporting potential changes to the HOME Program. Please review the items described below and provide any feedback by January 15, 2001. Increase the maximum project amount to $500,000. Currently the maximum amount that can be requested for a project is $400,000 with an additional maximum of $32,000 for program administration. This amount has not been increased for several years even though the cost of projects has. Due to the $500,000 maximum, administration would increase to $40,000. Applicants would still be required to request only the level of funding necessary to carry out their proposed programs. 2. Include a Scope and Scale of each project in the existing ranking criteria. Based on past performance of grantees, it may be necessary to compare the relative size of projects to community need, resources available to complete the process, type of activity to be performed, and the amount of funds requested for a project. Grantees must be able to demonstrate they can complete the proposed activities within the contract period of 24 months. Example: A very small community proposes rehabilitation of forty units. There is only one building contractor employing two people in that town to do the work. The applicant has only specified the one contractor working on the program. Can this one contractor complete all the additional work within the required 24-month period? "Working Together to Make It Work" Persons Interested in the HOME Program December, 2000 Page two 3. Include Capacity as a ranking section under Program Management. Capacity would cover not only the ability of the Grantee to perform the activity but also the capacity of any other entity involved in project management. Since HOME funds must be expended within 24 months of the tentative grant award, adequate management resources are essential. We are trying to assure there are adequate management resources necessary for successful completion of projects. Example: A CHDO applies for a project it will manage; however, at the same time the CHDO has four other projects outstanding and also promised management services to the county and local city for additional projects during the upcoming year. The CHDO has to __ -show it ha ithe staff and manaaement_abilitv to ierform all of the projects concurrently. 4. Include a fourth eligibility requirement for past grantees to receive additional HOME funds. All grant projects that are over two years old must be completed and have a conditional closeout submitted prior to applying for additional funds. Example: FFY2001 competition (October 2001). FFY 2000 and FFY1999 projects are OK. FFY 1998 projects must be completed and have a conditional closeout to be eligible for additional funds. 5. Add Tribally Designated Housing Entities to the definition of Public Housing Authorities. MDOC added Public Housing Authorities (PHA) as eligible applicants in 1998. Indian Housing Agencies (IHA) were not specifically delineated as a PHA. The IHA's are now called Tribally Designated Housing Entities (TDHE) and MDOC is considering adding them to the definition of a PHA. 6. Include Indian Tribes as eligible HOME applicants. We are looking at allowing Indian Tribes to apply as units of local government if they can meet the definition of state recipient. Other legal questions and issues may also have to be looked at and addressed. A change regarding HOME administrative funds be coming, possibly affecting October, 2001 applications. Legislation (1-1130057) is being introduced in the upcoming state legislature to remove $1.6 million from the MDOC federal Section 8 low income housing operating reserve to fund the State Housing Trust Fund. In addition to funding the MDOC HUD Section 8 low income housing programs, this MDOC reserve annually funds approximately $150,000 of MDOC HOME Program administration and State Consolidated Plan costs. Maximum federal administrative funds allowed in the HOME Program are 10%. If this legislation is enacted, MDOC will have to use a larger share of federal HOME administration funds for MDOC HOME administration. As a result, local project administration will have to be reduced from the current 8% to somewhere in the neighborhood of 4-5%, to allow adequate administration of the HOME Program. We thank you for your participation in the HOME Program, and look forward to receiving your comments on these potential changes.