Harris County Community and Economic Development Department Community Development Block Grant (CDBG) – Public Services Workshop February 22, 2006

Harris CountyHarris CountyCommunity and Economic Community and Economic Development DepartmentDevelopment Department

Community Development Block GrantCommunity Development Block Grant

(CDBG) – Public Services Workshop(CDBG) – Public Services Workshop

February 22, 2006February 22, 2006

AgendaAgenda

Overview of HCCEDDOverview of HCCEDD Overview of CDBG – Public Overview of CDBG – Public

ServicesServices National ObjectivesNational Objectives Eligible ActivitiesEligible Activities Recordkeeping & MonitoringRecordkeeping & Monitoring Questions & Wrap-upQuestions & Wrap-up

Resources AvailableResources AvailableHUD Entitlement Funds, PY2006HUD Entitlement Funds, PY2006

Harris County will receive $15,004,622 for Program Year 2006.

CDBG $10,985,813

73%

ESG $466,583

3%

HOME/ADDI $3,552,226

24%

Service AreaService Area

Service AreaService Area

Unincorporated Harris County and its 15 cooperative cities.Unincorporated Harris County and its 15 cooperative cities.

BellaireBellaire SeabrookSeabrookDeer Park Deer Park ShoreacresShoreacresGalena Park Galena Park South HoustonSouth HoustonHumble Humble TomballTomballJacinto City Jacinto City WallerWallerKaty Katy WebsterWebsterLaPorte LaPorte West University PlaceWest University PlaceMorgan’s PointMorgan’s Point

Houston, Baytown and Pasadena receive their ownHouston, Baytown and Pasadena receive their owncommunity development funds and are not includedcommunity development funds and are not included

in the Harris County service area.in the Harris County service area.

How it WorksHow it WorksProvides long term goals to improve quality of life for low-income people

Annual update to the Consolidated Plan allocating funds for the program year

Competitive process through which CDBG, ESG and HOME funds are allocated

Describes progress made towards goals set forth in the Consolidated Plan

Implementation and Monitoring

The Consolidated PlanThe Consolidated Plan

Five-year plan that Five-year plan that addresses:addresses: Housing;Housing; Social services;Social services; Infrastructure; andInfrastructure; and Community revitalization needs.Community revitalization needs.

Specifies types of projects to be Specifies types of projects to be fundedfunded

Application for federal funds under Application for federal funds under HUD’s formula grant programs:HUD’s formula grant programs:

CDBG;CDBG; HOME / ADDI; andHOME / ADDI; and ESG.ESG.

Basis for assessing performanceBasis for assessing performance

The Consolidated Plan aids decision The Consolidated Plan aids decision makers in creating strategies to address makers in creating strategies to address

the following:the following:

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

moderate-income communities.moderate-income communities.

Request for Proposals (RFP)Request for Proposals (RFP)

Solicitation and acceptance of proposals Solicitation and acceptance of proposals According to federal and state According to federal and state

procurement laws and standardsprocurement laws and standards Applicants must:Applicants must:

Be a non-profit organization or Be a non-profit organization or governmental agency or entity;governmental agency or entity;

Expend funds within a 12-month Expend funds within a 12-month period;period;

Have sufficient working capital;Have sufficient working capital; Meet one Consolidated Plan Meet one Consolidated Plan

Objective;Objective; Meet one National Objective;Meet one National Objective; Benefit eligible residents in CEDD’s Benefit eligible residents in CEDD’s

HUD Service Area.HUD Service Area. Used to address objectives identified in Used to address objectives identified in

Harris County’s Consolidated PlanHarris County’s Consolidated Plan

Annual Action Plan (AAP) Annual Action Plan (AAP)

Detailed description of the Detailed description of the allocations of Harris County allocations of Harris County HUD entitlement dollars HUD entitlement dollars (CDBG, HOME, and ESG).(CDBG, HOME, and ESG).

Discusses how resources Discusses how resources generated by tax dollars will generated by tax dollars will be utilized for the upcoming be utilized for the upcoming program year.program year.

Agencies Receive AllocationsAgencies Receive Allocations

Contracts are developed Contracts are developed between Harris County between Harris County and agencies.and agencies.

Funds are dispersed on a Funds are dispersed on a reimbursement basis.reimbursement basis.

Grants Management staff Grants Management staff monitors all projects.monitors all projects.

Consolidated Annual Performance & Consolidated Annual Performance & Evaluation Report (CAPER)Evaluation Report (CAPER)

Describes progress.Describes progress.

Reports on and reviews Reports on and reviews county’s use of county’s use of Entitlement funds.Entitlement funds.

Benchmark for projects Benchmark for projects to be funded.to be funded.

Allows for self-Allows for self-assessment.assessment.

Community Development Community Development Block GrantBlock Grant

Public ServicesPublic Services

CDBG OverviewCDBG Overview

Local governments participate in either of Local governments participate in either of these these two programs.two programs.

Entitlement ProgramEntitlement Program Cities >50,000 in populationCities >50,000 in population Urban counties >200,000 Urban counties >200,000

States and Small Cities ProgramStates and Small Cities Program Cities <50,000Cities <50,000 States <50,000States <50,000


Participating local governments receive annual Participating local governments receive annual allocations of CDBG funds. Amounts are allocations of CDBG funds. Amounts are determined by the higher of two formulas:determined by the higher of two formulas:

Data based on overcrowded housing, population, Data based on overcrowded housing, population, and poverty; ORand poverty; OR

Data based on age of housing, population growth Data based on age of housing, population growth lag, and poverty. lag, and poverty.

The regulations implementing the CDBG Program are found at The regulations implementing the CDBG Program are found at 24 CFR Part 570.24 CFR Part 570.


The Primary Objective of the CDBG Program is:The Primary Objective of the CDBG Program is:

The development of viable urban communities The development of viable urban communities through the provision of the following, principally through the provision of the following, principally

for low- and moderate-income (LMI) persons:for low- and moderate-income (LMI) persons:

decent housing,decent housing,

a suitable living environment,a suitable living environment,

and economic opportunity.and economic opportunity.


Median Family Income (MFI) in the Harris County area is Median Family Income (MFI) in the Harris County area is $61,000 for a family of four.$61,000 for a family of four.* * Source: U.S. Department of Housing and Urban Development, January 23, 2006.Source: U.S. Department of Housing and Urban Development, January 23, 2006.

Income Levels* % of MFI Amount

30% of Median 0-30% $18,300

Very-Low Income 31% - 50% $30,500

Low/Moderate Income 51-80% $48,800

Service DeliveryService Delivery

Entities that can carry out a CDBG-funded Entities that can carry out a CDBG-funded public service include:public service include:

The Grantee (CEDD)The Grantee (CEDD)

Other governmental entitiesOther governmental entities

(ex: A municipality or a County (ex: A municipality or a County Department)Department)

Private or public non-profit organizationsPrivate or public non-profit organizations

National Objectives National Objectives

Each eligible activity must meet one of Each eligible activity must meet one of three national objectives:three national objectives:

Aid in the prevention of slum and blightAid in the prevention of slum and blight Urgent NeedUrgent Need Benefit to low and moderate income Benefit to low and moderate income

persons persons

National ObjectivesNational Objectives Aid in the Prevention of Slums and BlightAid in the Prevention of Slums and Blight

Activities must either:Activities must either:

Eliminate slum and blight on an Eliminate slum and blight on an areaarea basis; basis; Eliminate slum and blight on a Eliminate slum and blight on a spotspot basis; basis;

oror Be in an urban renewal area.Be in an urban renewal area.

National ObjectivesNational ObjectivesAid in theAid in the Prevention of Slums and BlightPrevention of Slums and Blight

Activities may qualify if:Activities may qualify if:

The area meets the definition of slum, blighted, The area meets the definition of slum, blighted, deteriorated, or deteriorating area under state or local deteriorated, or deteriorating area under state or local law; law;

Substantial number of buildings or public Substantial number of buildings or public improvements are in a state of deterioration;improvements are in a state of deterioration;

Documentation is maintained regarding boundaries Documentation is maintained regarding boundaries and condition which qualified the area; andand condition which qualified the area; and

Activities address one or more of the conditions which Activities address one or more of the conditions which contributed to the deterioration.contributed to the deterioration.

National ObjectivesNational ObjectivesUrgent NeedUrgent Need

Alleviates Alleviates emergencyemergency conditions. conditions.

Existing conditions pose a Existing conditions pose a seriousserious and and immediateimmediate threat to health or welfare; threat to health or welfare;

Existing conditions occurred within past 18 Existing conditions occurred within past 18 months; months;

Recipient is unable to finance the activity on Recipient is unable to finance the activity on its own; andits own; and

Other sources of funding are not available.Other sources of funding are not available.

National ObjectivesNational Objectives Benefit to Low- and Moderate-Income PersonsBenefit to Low- and Moderate-Income Persons

Area BenefitArea Benefit Limited ClienteleLimited Clientele Housing ActivitiesHousing Activities Job creation/retentionJob creation/retention


Area BenefitArea Benefit Activity must Benefit all residents in an area where Activity must Benefit all residents in an area where

at least 51% of the residents are LMIat least 51% of the residents are LMI

The service area must be clearly delineated by the The service area must be clearly delineated by the grantee and must be primarily residentialgrantee and must be primarily residential

Examples: Examples: Water and Sewer Projects;Water and Sewer Projects; Libraries;Libraries; Neighborhood and Community Centers;Neighborhood and Community Centers; Parks, Streets and Sidewalks. *Parks, Streets and Sidewalks. *

*Primarily CDBG General projects*Primarily CDBG General projects


Area Benefit - Records to MaintainArea Benefit - Records to Maintain

Boundaries of the service area;Boundaries of the service area;Documentation that the area is primarily Documentation that the area is primarily

residential (e.g., zoning map, land use residential (e.g., zoning map, land use map); andmap); and

Income characteristics of households in Income characteristics of households in the service area (e.g., census data)the service area (e.g., census data)


Limited ClienteleLimited ClienteleThe organization must:The organization must:

Be of a nature and location that it can Be of a nature and location that it can be concluded that primary clients are be concluded that primary clients are LMI; orLMI; or

Require documentation on family size Require documentation on family size and income to show that at least 51% and income to show that at least 51% of the clientele are LMI; andof the clientele are LMI; and

Have income-eligibility requirements.Have income-eligibility requirements.


Limited Clientele (Cont.)Limited Clientele (Cont.)

Serve a group primarily presumed to be LMIServe a group primarily presumed to be LMI

Abused childrenAbused children Battered spousesBattered spouses Elderly personsElderly persons Severely disabled personsSeverely disabled persons Homeless personsHomeless persons Illiterate adultsIlliterate adults Persons living with AIDSPersons living with AIDS Migrant farm workersMigrant farm workers

Examples of Limited Clientele Projects include: Facilities for Examples of Limited Clientele Projects include: Facilities for Senior Services; Homelessness Services; and Domestic Senior Services; Homelessness Services; and Domestic Violence Programs.Violence Programs.


Housing ActivitiesHousing Activities

Provide or improve permanent residential Provide or improve permanent residential structures to be occupied by LMI persons.structures to be occupied by LMI persons.

Note: At least 51% must be LMI occupied, if Note: At least 51% must be LMI occupied, if the structure contains more than one unit.the structure contains more than one unit.


Job creation or retentionJob creation or retention

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

Eligible ActivitiesEligible Activities

The following activity types are eligible under the The following activity types are eligible under the CDBG program:CDBG program:

HousingHousing Public Facilities and ImprovementsPublic Facilities and Improvements Public ServicesPublic Services Economic DevelopmentEconomic Development OtherOther

Eligible Public Service ActivitiesEligible Public Service Activities

Child careChild care

Health careHealth care

Job trainingJob training

Recreation programsRecreation programs

Education programsEducation programs

Public safety servicesPublic safety services

Fair housing activitiesFair housing activities

Services for homeless Services for homeless

personspersons

Drug abuse Drug abuse

counseling and counseling and

treatmenttreatment

Energy conservationEnergy conservation

Youth developmentYouth development

Services for SeniorsServices for Seniors

Level of ServiceLevel of Service

CDBG Public Service activities must:CDBG Public Service activities must:

Provide a new service; orProvide a new service; or

Demonstrate a quantifiable increase in the Demonstrate a quantifiable increase in the level of service provided by the level of service provided by the organization in the 12 months.organization in the 12 months.

Activities that do not fall into one of the Activities that do not fall into one of the above categories will be considered above categories will be considered

ineligible.ineligible.

Ineligible Public Service ActivitiesIneligible Public Service Activities

Income paymentsIncome payments

Political activitiesPolitical activities

Religious activitiesReligious activities

Activities where beneficiaries (persons) are Activities where beneficiaries (persons) are

not residents of the Harris County service not residents of the Harris County service

area area

Public Services CapPublic Services CapCommunity Development Block Grant (CDBG)Community Development Block Grant (CDBG)

Total allocation for PY2006: $10,985,813

Remaining Entitlement $7,140,778

65%

Administration $2,197,163

20%Public Services

$1,647,872 15%

Public Services CapPublic Services Cap

Public Service Funds are capped at Public Service Funds are capped at 15% of the annual CDBG Allocation.15% of the annual CDBG Allocation.

Certain project activities may be Certain project activities may be funded through another funding funded through another funding stream stream oror another CDBG category. another CDBG category.

Public Service CapPublic Service Cap

Example: Removing graffiti from public buildings Example: Removing graffiti from public buildings is a public service. However, assisting private is a public service. However, assisting private properties with the graffiti removal may be better properties with the graffiti removal may be better categorized as a property rehabilitation activity categorized as a property rehabilitation activity under General CDBG funding activities, which is under General CDBG funding activities, which is not subject to the 15% cap.not subject to the 15% cap.

Example: Services for homeless individuals is an Example: Services for homeless individuals is an eligible public service activity. However, eligible public service activity. However, Emergency Shelter Grant (ESG) funds have Emergency Shelter Grant (ESG) funds have similar regulatory guidelines for short-term similar regulatory guidelines for short-term assistance to the homeless.assistance to the homeless.

Recordkeeping & MonitoringRecordkeeping & Monitoring

OverviewOverview

General recordkeeping requirementsGeneral recordkeeping requirements Access to recordsAccess to records Retention of recordsRetention of records MonitoringMonitoring Reporting requirements Reporting requirements

General Recordkeeping RequirementsGeneral Recordkeeping Requirements

Records should be accurate, complete, Records should be accurate, complete, and orderly.and orderly.

Records should be maintained in order Records should be maintained in order to:to:

Document all CDBG funded activities Document all CDBG funded activities (24 (24 CFR Part 570.208 particularly 570.506 (b) CFR Part 570.208 particularly 570.506 (b) (1)-(11));(1)-(11)); and and

Demonstrate compliance with all Demonstrate compliance with all applicable program and other applicable program and other requirements requirements (24 CFR Part 570).(24 CFR Part 570).

General Recordkeeping RequirementsGeneral Recordkeeping Requirements

Establish and maintainEstablish and maintain

Administrative recordsAdministrative records

Financial Records, andFinancial Records, and

Project/case files.Project/case files.

Access to RecordsAccess to Records

Records are used to create audits, examinations, Records are used to create audits, examinations, excerpts and transcripts. The following have access to excerpts and transcripts. The following have access to records of CDBG funded organizations:records of CDBG funded organizations:

CEDD representatives;CEDD representatives; HUD representatives;HUD representatives; Comptroller General’s Office of the United Comptroller General’s Office of the United

States;States; Other authorized governmental agencies;Other authorized governmental agencies; Citizens (24 CFR 570.508).Citizens (24 CFR 570.508).

Retention of RecordsRetention of Records

Retain records for periods of time after Retain records for periods of time after annual project activities have been annual project activities have been completed.completed.

Retain records for five years from the date of Retain records for five years from the date of submission of the CAPER in which activity is submission of the CAPER in which activity is reported for the last time. reported for the last time.

For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, For all organizations (per 24 CFR 570.502(b)(3), 24 CFR 85.42, and OMB Circular A-110, Attachment C)and OMB Circular A-110, Attachment C)

MonitoringMonitoring

The primary mission of monitoring is to ensure that The primary mission of monitoring is to ensure that organizations are:organizations are:

In compliance with all regulations governing In compliance with all regulations governing their administrative, financial, and their administrative, financial, and programmatic operations; and programmatic operations; and

Achieving their performance objectives within Achieving their performance objectives within the schedule and budget, as outlined in the the schedule and budget, as outlined in the Agreement.Agreement.

MonitoringMonitoring

Five steps in a monitoring visitFive steps in a monitoring visit

Notification letterNotification letter

Entrance conferenceEntrance conference

Documentation, data acquisition and Documentation, data acquisition and analysisanalysis

Exit conferenceExit conference

Monitoring letterMonitoring letter

Reporting RequirementsReporting Requirements

Reporting requirements are specified by the Reporting requirements are specified by the Grantee (CEDD) in the Subrecipient Grantee (CEDD) in the Subrecipient Agreement (24 CFR 570.503(b)(2). Agreement (24 CFR 570.503(b)(2).

Programmatic and Four (4) Financial Programmatic and Four (4) Financial Reimbursement Request Reports are due Reimbursement Request Reports are due monthly.monthly.

Quarterly and Annual reports may also apply. Quarterly and Annual reports may also apply.

Questions Questions And And

AnswersAnswers

Questions?Questions?

Contact:Contact:Shanna LeBrumShanna LeBrum

Senior Program AnalystSenior Program Analyst(713) 578-2000, ext. (2051)(713) 578-2000, ext. (2051)[email protected][email protected]

Or visit our website at: Or visit our website at: www.cedd.hctx.netwww.cedd.hctx.net

Documents

Harris County Community and Economic Development Department Community Development Block Grant (CDBG) – Public Services Workshop February 22, 2006