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

Draft ACTION PLAN Community 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. Community Development Block Grant – Disaster Recovery (CDBG-DR).

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

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  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. Community Development Block Grant – Disaster Recovery (CDBG-DR) HUD’s 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%)

  8. 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 >$28K (Severe) damage estimates # of rental units assessed for personal property loss Located near major-high or severe owner-occupied dwellings Tenants with income <$20K Capture loss of affordable rental housing Unmet needs estimate FEMA grant amount and SBA loans subtracted from total estimated damage

  9. Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Infrastructure Needs Data from FEMA Public Assistance damage estimates State’s 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 >$65K for estimated damage

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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;

  16. 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;

  17. 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

  18. 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;

  19. 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.

  20. 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!

  21. 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

  22. 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

  23. 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

  24. Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview • Infrastructure - • $6.5M FEMA Public Assistance Match

  25. 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

  26. 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

  27. 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

  28. 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

  29. Community Development Block Grant – Disaster Recovery (CDBG-DR) Application Process • Eligible Applicants • Municipalities • Non-profit Organizations • For-profit Organizations • Developers • State Agencies

  30. 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

  31. Community Development Block Grant – Disaster Recovery (CDBG-DR) Threshold Review – cont’d 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

  32. Community Development Block Grant – Disaster Recovery (CDBG-DR) Competitiveness Review Need Impact Feasibility Consultation with other State agencies

  33. 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

  34. 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

  35. Community Development Block Grant – Disaster Recovery (CDBG-DR) • State will be accepting CDBG-DR applications • Early September, after HUD’s approval of Action Plan • Applications will be submitted online • Intelligrants Management System • Expectation of review and funding decision • Within 30 days

  36. Hazard Mitigation Grant Program (HMGP) – Buy outs

  37. 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

  38. Community Development Block Grant – Disaster Recovery (CDBG-DR) Labor Standards Davis Bacon wage rates Not applicable to owner-occupied, single family Not applicable to <8 units of multi-family Affirmatively Furthering Fair Housing Civil Rights and Fair Housing Act

  39. Community Development Block Grant – Disaster Recovery (CDBG-DR) Public Hearing Commences Adjourn E-mail ACCD.CDBGDisasterRecovery@state.vt.us http://accd.vermont.gov/strong_communities/opportunities/funding/cdbgdr

  40. Community Development Block Grant – Disaster Recovery (CDBG-DR) Staff Contact Information Jennifer Hollar, Deputy Jennifer.Hollar@state.vt.us Josh Hanford, CD Director Josh.Hanford@state.vt.us Ann Karlene Kroll, Grants Management Director AnnKarlene.Kroll@state.vt.us

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