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HomeMy WebLinkAboutCDBG informationDATE: TO: FROM: SUBJECT: M NTANA Department of Corn ,erce COMMUNITY DEVELOPMENT DIVI$1~ P.O. 8ox 200523 * Helena, Montana 59620-0 CITY O. F L, UI EL February 24, 2003 Local Government Officials and Others Interested in the Montana Community Development Block Grant (CDBG) Program Gus Byrom, CDBG Program Manager for Housing and Public Facilities Karyl Tobel, CDBG Program Manager for Economic Development 1. Postcard to Update'Community Development (Housing and Public Facilities) Mailing List 2. Planning Grants for the 201)3 CDBG Program 3. Final Action on Administrative Rules Process - Application Deadlines, Allocation of Funds, and Program Changes for the Year 2003 and 2004-Montana CDBG Prograro ~ ~= 2004 Application Guidelines for Housing and Public Facilities Projects Dates and Locations for 2004 Public Facilities and Housing Application Workshops 1. Enclosed Postcard to Update Community Development Mailing Li_~* In an effort to reduce costs for future mailings, a postcard is enclosed with this memo requesting that you indicate if you want to remain on the mailing list for future information regarding the CDBG Public Facilities and Housing Program, and the Treasure State Endowment Program (TSEP). If you want to stay on our mailing lists for the CDBG and TSEP Programs, please update the information on the mailing label and return the card, or e-mail Joanne Gilbert at ~, or call (406) 841-2791. Persons who do not respond will be dropped from our mailing lists. 2. Planning Grants for the 2003 CDBG Housing & Public Facilities Program The Montana CDBG Program for Housing and Public Facilities is inviting applications for grants to assist local governments in preparing plans, studies, analyses, or research in specific areas related to community development. The grants can be used for a variety of planning activities, including the initial planning necessary to develop a CDBG project, or to prepare or update a local growth policy, a housing plan, capital improvement plan, or similar planning efforts needed to help a community address critical needs. Application Deadline and Available Funds The application deadline for 2003 Planning Grants will be Friday, April 25, 2003. The CDBG program has allocated $200,000 for the Planning Grants with a maximum ceiling of $20,000 per grant for 2003. The grant guidelines and application form are available on the Montana Department of Commerce (MDOC) website at http:l/www.commerce.state.mt, us/CDDICDD index.html or by e-mailing Joanne Gilbert at i(~ilbert~,state.mt, us, or by telephone (408) 841-2791. e Final Action on Administrative Rules Process - Application Deadlines, Allocation of Funds, and Program Changes for the Year 2003 and 2004 Montana CDBG Program For several years, the U.S. Department of Housing and Urban Development (HUD) has been placing increasing pressure on all of the states that administer the State CDBG Program to expedite the expenditure of their CDBG funds. In response to pressure from Congress and HUD to expedite the expenditure of CDBG funds, the Montana CDBG Program compressed the application grant cycle for 2002 and 2003. In essence, the Department is conducting grant competitions for FFY 2002, 2003, and 2004 funding allocations over a 16-month period. This acceleration of the grant competitions is a one-time only event. The objective of this is to establish a long-term annual grant application cycle for future years that will rank both housing and public facility applications in the calendar year prior to the actual receipt of the FFY CDBG allocation that would fund those projects. This will allow MDOC to award grants to communities immediately upon notification of that year's CDBG allocation. Grants will be awarded in order of the ranking scores assigned during the previous calendar year's grant competition, based on the amount of funds allocated to the housing and public facilities project categories. For FY 2004, CDBG will issue separate sets of Application Guidelines for Housing and Public Facilities projects. Both sets of guidelines will be available in March. Public Facilities · applications for FFY 2004 funds will be due on Friday, May 23, 2003, with Housing applications due on October 17, 2003. In response to pressure from Congress and HUD to expedite the expenditure of CDBG funds, last year the Montana CDBG Program accepted applications for both FFY 2002 2 and FFY 2003 Housing applications during the fall of 2002 and moved up the normal deadline for FFY 2003 Public Facilities applications from spring 2003 to January, 2003. Last December, the Montana Department of Commerce announced proposed changes to the 2003 CDBG application guidelines - Economic Development category, a proposed amendment to the 2003 application guidelines for the Housing and Public Facilities categories, and proposed changes to the application guidelines for the year 2004 CDBG program for the Housing and Public Facilities categories. A summary of the proposed changes to the CDBG Program Application Guidelines for Economic Development, Housing, and Public Facility projects was distributed last December to local govemments, development organizations, districts, and others. Public Hearin,q on CDBG Guidelines -January 15, 2003 Three persons presented oral testimony in support of the proposed application guideline changes. Written comments were submitted by the City of Hamilton and the City of Kalispell, also supporting the proposed guideline changes. The comment period closed January 23, 2003. The following is a summary of the Department's final action on the guidelines: Consistent with current policy, MDOC will not accept public facility applications for FFY 2004 CDBG funds for projects which would also require Treasure State Endowment Progrsn~(TSEP) funds to be requested from the-2005 Legislature. Public facility projects which propose to use both CDBG and TSEP funding (subject to 2005 legislative approval) must apply for FFY 2005 CDBG funds in the spring of 2004. No major change in the overall distribution of CDBG funds used in past years would be proposed for 2003 and 2004: · One-third of the total amount available for new grants would be set aside to allow economic development funds to be available to applicants on a continuous basis. The 2003 Application Guidelines for Economic Development Projects is currently available. Please contact Anne Henderson at (408) 841-2734 or e-mail ahenderson(i~state.mt.us to request a copy. Applications will be presented to the MDOC Loan Review Committee on a first-come, first-served basis as they are determined to be complete. It is important to seek the advice of the MDOC Regional Development Officer in your area or CDBG staff at the MDOC Business Resources Division when preparing CDBG applications for funding. Please keep in mind that the loan review committee meetings or possible award notifications will not occur until MDOC receives the actual federal funding notice. It is recognized that communities will be applying for FFY 2003 and FFY 2004 funds without knowing precisely how much CDBG funding is available for each grant category. As always, the award of FFY 2003 and 2004 funds is contingent on Montana receiving its CDBG grant funds from Congress and HUD. 3 The application deadlines for the 2003-2004 grant competitions will be as presented in Fi.qure 1. The proposed deadlines for 2004 show how the program will operate with public facilities and housing competitions taking place in the spring and fall in the calendar year before Montana's CDBG allocation is announced by HUD. II, Proposed Allocation and Distribution of Funds In federal fiscal year (FFY) 2002, the Montana CDBG program received $8,070,000. Montana's total allocation of CDBG funds for FFY 2003 is estimated to be $7,858,000 subject to notification by HUD of final award amounts. Montana's total allocation of CDBG funds for FFY 2004 should be announced early in 2004 and are expected to be about the same level of funding. CDBG funds will be allocated for the 2003 program in the following manner: Distribution of FFY 2003 CDBG Funds The following table summarizes the proposed distribution of CDBG funds for the 2003 program, based on the latest available estimate from HUD, which projects a decrease of 2.5% from 2002 levels based on new 2000 National Census data. Total FFY 2003 State CDBG Allocation - estimate Less CDBG funds for State program administration (as provided by federal law) Amount Available for Award to Local Governments Less 1/3 Allocation for Economic Development Projects Total Available for Housing And Public Facility Projects Less Planning and Technical Assistance Grants - Housing and Public Pacilities Sub-Total Allocation for Housing Projects (31%) Allocation for Public Facilities Projects (69%) $7,858,000 $ 335,740 $7,522,260 $2,507,420 $5,o14,84o $ 225,000 $4,789,840 $~,484,a50' $3,304,990* The actual distribution of 2003 CDBG funds will be announced as soon as MDOC receives confirmation of its FFY 2003 allocation from HUD. Similarly, the proposed distribution of CDBG funds for the 2004 program will be based upon the 2003 estimated funding levels as presented above. 4 I2003 CDBG Schedule I ~004 CDBG Schedule Economic Development Grants - Open I Economtc Development Grants - Open Cycle ICycle HUD announces Montana's FFY 2004 CDBG Allocation April, 2004 Announcement of FFY 2004 Public Facilities And Housing Grant Awards April, 2004 PlanninR Grant Competition for FFY 2002 Grants Applications Due April 25, 2003 Announcement May, 2003 Planning Grant Competition for FFY 2004 Grants Applications Due Announcement April, 2004 May, 2004 Ranking Housin,q Grant Competition for FFY 2004 Grants Applications Due October 17, 2003 Announcement of Ranking Results December, 2003 Housing Grant Competition for FFY 2005 Grants Applications Due Announcement of Ranking Results HUD announces Montana's FFY 2005 Allocation Announcement of FFY 2005 Public Facilities And Housing Grant Awards October, 2004 December, 2004 April, 2005 April, 2005 5 III. Proposal for FFY 2003 CDBG Economic Development Guidelines, an Amendment to Housing and Public Facilities for FFY 2003. and Proposed FFY 2004 Guidelines for Housing and Public Facilities to Assist the Montana Rural Development Partnerships 1. Planning and Technical Assistance Grants to Local Governments. For 2002 and 2003 (followin.q a combined fiscal year process to accelerate pm.qram spendin.q) within the Housin.q and Public Facilities cate.qories, the CDBG pro.qram ori.qinally proposed $200,000 for each year for plannin.q and technical assistance Rrants to local .qovernments. For 2003, within the Public Facilities and Housing categories, the CDBG program proposed to assist Montana Rural Development Partnerships with a $25,000 set aside. The purpose of the set aside would have been to provide funding to Montana Rural Development Partnerships to assist rural Montana communities and related development organizations with preparation of local needs assessments and similar strategic planning efforts. The CDBG funds would be matched with funds from the U.S. Economic Development Administration (EDA). The proposed financial assistance was summarized, as follows: Housing and Public Facilities Categories - FY 2003 Amendment and FY 2004 Programs $200,000 Planning Grants to Local Governments $ 25,000 Montana Rural Development Partnerships $225,000 - Total Planning and Technical Assistance Grants/ Housing and Public Facilities At present, the Montana Rural Development Partnership function providing technical assistance to communities may be transferred to the Montana Economic Developers Association. It would still be the intent of the Montana CDBG Program to support this effort and to contribute $25,000 in Housing and Public Facility technical assistance funds to support this effort. Economic Development Planning, Capacity Buildin.q~ and Technical Assistance Grants In FFY 2002, the CDBG Economic Development program set aside $205,000 for planning grants, as follows: -$55,000 for Montana Business Development Centers -$50,000 for Small Business Innovation Research -$100,000 remaining for cities, towns and counties 6 For 2003, the CDBG Economic Development program proposes the following: The Department has set-aside approximately $225,000 for economic development planning, capacity building, and technical assistance grants. This represents an increase in this category from last year. The Department will use the set-aside for activities similar to those funded in recent years but will establish specific application policies by May 2003. The policies will specify funding priorities, applicafion procedures, and amounts available at that time for each subcategory. Establishing policies in May will provide flexibility to address specific needs- identified at the time federal funding becomes available for the CDBG program. Funds not utilized for this category may be used for the regular economic development CDBG program. A Change in Re-Applicafion Requirements - Housin.q and Public Facilit!e* Catefloriss for 200___~4 Historically, within the Housing and Public Facilities categories, eligibility for reapplication has been based upon the percentage of completion based on the fiscal year of grant award for the category being applied for. For 2003, a previous recipient of a CDBG award under either the Housing or Public Facilities category would not be eligible to reapply until the following conditions have been met for any current grant within the cate.qory bein.q applied for, as follows: For the FFY 2003 CDBG grant competition for Public Facilities, the following spend - down requirement applied~ ........ FY 2002 grantees - CDBG non-administrative funds 90% drawn or activities completed by the date of application. FY 2001 grantees - CDBG non-administrstive funds 100% expended, project completion report submitted, and audit scheduled by the date of application. FY 2000 grantees - Project closed out (conditional or final) by the date of application and all earlier years FFY 2004 Spend Down Requirement For 2004, the Department is adjusting the re-application requirements by lowering the percentage of activity funds drawn down before a local government can submit another application back to the levels previously required in 1999 and earlier years. The CDBG program increased the pementage completion requirement in 2000 and subsequent years for the Housing and Public Facilities categories in response to pressures from Congress and HUD to provide incentives for local governments to expedite the completion of their current projects. 7 However, experience has shown that the higher Percentage completion requirements were overly restrictive and had the effect of prohibiting local governments from being able to address other serious public health and safety problems within their jurisdictions, as well as limiting their ability to take advantage of other existing funding programs. For the 2004 CDBG grant competition for Housing and Public Facilities, the following spend down requirements will be implemented: FY 2003 grantees - CDBG non-administrative funds 75% drawn or activities completed by the date of application. FY 2002 grantees - CDBG non-administrative funds 90% drawn or activities completed by the date of application. FY 2001 grantees - FY 2000 grantees and all earlier years - CDBG non-administrative funds 100% expended and project completion report submitted. Project closed out (conditional or final) by the date of application and audit scheduled by the date of application. The requirement to have an audit scheduled by the date of application is also moved from FY 2001 grantees to FY 2000 grantees and earlier. 3. Change for 2004 Housin,q Application Guidelines During the review of the Housing applications for the 2002/2003 competition, it became apparent to ranking staff that there was very limited benefit in having a separate ranking category for Need for Financial AssiStance (100 points). During the course of the ranking review, it was determined that the "need for financial assistance" was in almost all cases directly related to the overall "need" for the project, addressed in ranking criterion 2. Therefore, for the October, 2003 competition (for FFY 2004 funds), the CDBG Program will return to the basic Housing category ranking criteria utilized in 2001 with point weightings as follows: HOUSING CATEGORY RANKING CRITERIA- OCTOBER, 2003 COMPETITION Housing applications will be evaluated aCcording to the following criteria and may be assigned up to a maximum of 800 points: 1. Community Planning and Needs Assessment 150 Points 2. Need 150 Points 3. Project Strategy and Community Efforts 200 Points 4. Benefit to Low and Moderate Income 150 Points 8 5. Implementation and Management 150 Points TOTAL: 800 Points Issues related to ~need for financial assistance" will be addressed as part of ranking criterion 2, "Need". Dates and Locations for 2004 Public Facilities and Housing Application Workshops Public Facilities & CDBG Housinq In cooperation with the Water, Wastewater, and Solid Waste. Action Coordinating Team (W2ASACT), the CDBG program will be co-hosting three workshops this Spring to familiarize local governments with federal and state Iow interest loan and grant programs that are.available to assist local governments and water and sewer districts in financing water, sewer, and solid waste improvement projects, as well as other eligible CDBG activities (senior centers, Head Start centers, etc.) The workshop in Glendive will concentrate solely on CDBG grants for Public Facilities and Housing. The dates and locations are as follows: Tues. - March 4 - W2ASACT - Ruby's on Reserve Street - Missoula Wed. - March 5 - CDBG - 8:30 to 3:00 -- THurs. ~ Ma~h 6-- W2ASACT-- West cba~t CblonialHotel; HeTdn;i ........ Fri. - March 7 - CDBG - 8:30 to 3:00 Tues. - March 11 - W2ASACT - Sheraton - Billings Wed. - March 12 - CDBG -8:30 to 3:00 Thurs. - March 13 - CDBG Housing and Public Facility Projects only, 1:30 - 5:00 - Jordan Inn- Glendive Local government officials and all those interested in learning how to apply for funds to finance local infrastructure improvements are encouraged to attend one of these sessions. The second day of each workshop will focus solely on CDBG application requirements for public facility and' housing projects. The first day will include overviews of CDBG and all other public facilities and infrastructure funding programs in Montana. 9 N.o..t!ce - Consol dated Plan Input Session -Tuesday, March t1, 20'03- Sheraton - Bdhngs :noon The 'MOntana:Department of COmmerce ~is developing the yeady Actiol~ Plan' for affordable housing, public facilities, .and community economic developmentas part of an annual COnsolidated Plan to be submitted to the U.S. Department of HouSing and Urban Development (HUD). The Annual Action Plan is used to identify needs and allocate resources to Montana .communities and residents for the plan year,from April 1, 2004 through Mamh 31, 2005. This planning effort also serves as the annual application to 'HUD for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and the Emergency Shelter Grant (ESG) programs. 'These grant programs brought approximately $13 million to Montana communities last year. As part of the citizen participation'process, public input meetings will be .held around the state. The first meeting, held in conjunction with the "Planning and Building It Right" workshop for nfrastructure planning, financing and management (discusSed above), is scheduled for: Tuesday, March 11, 2003 12:00-t:00 PM Sheraton Billings Hotel 27'N. 27thst. LUNCH WILL BE SERVED! The Action Plan for affordable hous ng, public infrastructure, and community economic development is developed with information from local governments, public agencies, pdvate non-profit organizations, and interested citizens throughout the State. We encourage your active participation in deve op ng the Annua Act on P an Can't attend? Written comments may be submitted to Leslie Edgcomb, Consolidated Plan Coordinator, Montana Department of Commerce, Housing DiVision, P.O. Box 200545, Helena. MT 59620-0545. Your written comments are welcome thrcugh June 30, 2003. You can also e-mail your comments to led.qcomb~.state.mt.us; To view a copy of the current Action Plan, visit the Consolidated Plan website at: http://comme roe.state.mt, us/Housin.qlHous ConsPlanappls.html We make every effort to ensure our meetings are held at facilities that are fully accessible for persons with disabilities. If you need special accommodations relating to a disability, please contact the Montana Department of Commerce Jn advance of the meeting at 406-841-2820 or TDD 406-841-2702; or dial 7-1-1 or 800-253-4091 for Montana Relay Service. L: CDBG~AppGuidelines\FFY 2003~2003 Planning Grants~2003 Planning Grants Cover Memo - KT Edits 10