Public Facilities Application Basics

2013 CDBG Applicants’ Workshop

Public Facilities Application Basics

Page 22013 CDBG Applicants’ Workshop

Community Finance Division


Public Facilities Projects

Meeting the needs of low and moderate income people in the community, using bricks & mortar, concrete & paving and piping and plumbing.




ELIGIBLE ACTIVITIES • Water & Sewer• Streets & Drainage• Health Care Facilities• Senior Centers




ELIGIBLE ACTIVITIES

• Battered Women’s Shelters• Mental/Physical Health Departments• Head Start Program Facilities• Boys & Girls Clubs• Acquisition for Public Facilities




PROHIBITED!!

• “...the renovation or construction of new space where the primary purpose is the provision of general purpose local government”




COMMUNITY NEED

• The Community must decide what are the most severe needs for their particular community!

• City Council or County Commission will decide which project to pursue.




Identify Key Players

Once a project has been identified, pull together the key players – quickly!•Grant writer•Administrator (may also be your Grant Writer)•Architect / Engineer




FIRST, DECIDE… How will Administration & Architect/Engineer fees be paid?

• Local Funds?• CDBG Funds?




Procurement - CDBG Funds• Must use formal procurement procedure

outlined in manual (Does not apply to RDC’s for administration.)

• Limits: 12% for Engineer; 10% for Architect (percent of CDBG construction, not grant amount). Break out CDBG amount from local funds on DCA-8.

• Admin. Limit: 6% of grant amount for public facilities, 7% for multi-activity or housing.




PROCUREMENT REQUIREMENTSCDBG Funds

• Common rule• Maximum Competition• Advertise in local paper. Allow 30 days

response time• RFP: Send to 7 known providers for

Administration; 10 for Architect/Engineers




PROCUREMENT REQUIREMENTSCDBG Funds

• Written method of selection (score sheet based on criteria listed in RFP)

• Use Pre-selection to avoid headaches• Use Conditional Contract - if grant

awarded, contract extended




Procurement - Local Funds

• Use local procurement policy.• Engineer/Architect fees may be used as

cash match or leverage.• Administration fees can be used as cash

match, may also be used as leverage.




Sample Budget – CDBG Funds

• Acquisition: $5,000• Administration (6%): $30,000• Engineering / Architect (12% / 10%):

$42,000• Construction: $423,000• Total: $500,000 CDBG




Determine The Budget

• Figure out what the project is going to cost.

• Line items:▪ Administration fee▪ Architect/Engineering fee▪ Construction estimate▪ Acquisition




Budget - Revenue

• Sources of income:▪ CDBG Grant - $500,000▪ Local Matching funds - $10,000▪ Local Leverage funds - ?▪ Other Funding Agencies (USDA,

etc…)




Cash Match• Must be Cash!• Calculate at 5% of Grant Amount above $300,000, 10%

above $500,000.• A $500,000 Grant will have a $10,000 Cash Match

requirement. An $800,000 will have a $40,000 Cash Match.




Leverage = Bonus Points!

• Additional funds, land and NEW materials above the required Cash Match are counted.

• Operating budgets & salaries, already owned furnishings & equipment DO NOT count.

• Leverage will be monitored – must be realistic and achievable.




Construction Costs

• Your Architect or Engineer will give you the construction cost estimates.

• The Preliminary Architectural/ Engineering Report is vital to the success of your application. More on this later.




Determine Size of Project

• Will your budget cover the cost of the project?

• Do you need to scale back, or can you increase the scope of the project (# of streets, size of building, etc…)

• Finalize your project.




Determine the Beneficiaries

• For Infrastructure – survey as Area Benefit.

• Conduct door-to-door survey to count the number of people benefiting, and their low-mod status.

• Surveys must be 90%, or a statistically valid random sample.





• For a Building – survey using Limited Clientele benefit.

• Seniors at a Senior Center are categorically low-mod.

• Nursing home residents are NOT categorically low-mod.

• Who is going to use the building? Survey the user groups.





• If your low-mod percentage of residents is not at least 70%, STOP! Going any further is a waste of time!

• Can you reconfigure the project area to get above the 70% threshold?




Tell the Story – Sell the Story

• DCA-4 Description of Need.• Describe the problem and how it affects

the PEOPLE.





State how the identified need impacts L/M persons

• If a community has cracked sewer lines, and the treatment plant is over capacity due to infiltration, how does this affect the residents? CDBG grants are to solve people problems, not municipal problems.





Quantify your needto the greatest extent possible

“There are 46 households in the target area who are not served by City sewer and whose septic tanks are malfunctioning because of poor soil conditions and small lot sizes”





“According to the local Health Department the coliform counts in these wells has measured X which is a definite indication of contamination.”





“...the average income of these households is X and the high cost of drilling a deep well precludes these people from correcting the problem themselves. In addition, the lot sizes are so small that even if there were funds available to replace the septic tanks, that they would not work anyway.”





ALWAYS DOCUMENT YOUR NEED • Letters from residents• Letter from the Fire Chief• Letter from the Health Dept.• Know the difference between letters of

documentation and letters of support




Tell the Story – Sell the Story• Photos – quality photos are your best

seller!• Identify location of photos (address, map)• News Reports• Mental Health Directors• AAA Directors• Building Inspectors• Reports and/or Consent orders from EPD





• Keep the focus on people





• Make sure that your project proposal addresses the need identified!





• If the main problem is low water pressure, but resident letters also complain about quality, does the solution cover both problems?





• Avoid political pitfalls!• If the project overlaps

jurisdictions, all sides must agree in writing to the application.




Your Action Plan

• DCA-5 Description of Activities• Project Overview• A detailed description of each activity• Evidence of conformance with

Comprehensive Plan & Service Delivery Strategy

• Copy of Service Delivery Strategy map




Action Plan – Be sure to cover:

• ACQUISITION• PERMITS• TAP-ONS AND TAP-ON FEES• UTILITY RELOCATION• MAINTENANCE AND/OR OPERATION• CAPACITY• SITE• IMPLEMENTATION SCHEDULE• SECTION 3




Action Plan – Be sure to cover:

• Need for household plumbing• Abandonment of well and/or septic

tanks• Design configuration must make sense• Drainage projects - downstream

discharge area has sufficient capacity




Action Plan• Identify design standards and justify

their usage. 25 YEARS IS THE NORM. YOU MUST THOROUGHLY JUSTIFY ANYTHING ELSE!

• Try to avoid low density population target areas.

• Problems created by developers will not be viewed as a high severity of need.




Action Plan – Project Impact

• The impact the project will have on the problem.

• Most importantly, the impact the project will have on the lives of the residents.




Financial Statements

• Document your sources for cash match and leverage with signed, original commitment letters.

• For a new program, document sources of operational funding (staff salaries, equipment, etc.) LIKE A BUSINESS PLAN




PRELIMINARY ENGINEERING REPORT

• Amount of detail depends on complexity• Professional cost estimates required• Design Standard (25 or 50 year storm)• Unusual site conditions / higher costs




• Engineer/Architect signature and stamp required.

• Does Eng. Report agree with rest of application?

• Viable alternatives - “No alternative” is not a good answer. Go into more detail.

PRELIMINARY ENGINEERING REPORT




MAPS

• Scale, north arrow, legend• Proposed and existing activity location• Concentrations of minorities (numbers and

percentages)• Concentrations of substandard housing• Concentrations of low-mod persons




MAPS• All houses in project area - all

applications, not just Housing Applications

• Location of photos• Existing infrastructure (water lines,

sewer)• All street names - correct and legible




Maps

• Be sure to include a copy of your Service Delivery Strategy map, if possible.




REVIEW COMMENTS YOU WANT TO HEAR

• “Severity of need appears high.”• “Application is well documented.”• “Photos document the need as

described.”• “Floor plan appears to be very suitable

to the program being offered.”




REVIEW COMMENTS TO AVOID• “Severity of need appears low”• “Lack of documentation”• “L/M benefit stated as 36%”• “Photos don’t document the need

stated”• “Floor plan is not compatible with the

program being offered”





• “L/M residents are the primary beneficiaries of the project.”

• “Drainage outfall is addressed.”• “Required permits are addressed.”• “Program funding sources all

identified and committed.”




• “L/M residents do not appear to benefit”• “Site visit did not support severity of

need as stated in the application”• “Drainage out fall not addressed” or

“Required permits not addressed”• “Budget amounts vary from DCA-1 to

DCA-7 to DCA-8”

REVIEW COMMENTS TO AVOID





• “Pressure test used to document low water pressure.”

• “Alternatives addressed, and best alternative selected for project.”

• “Design standard for drainage identified.”

• “All acquisition issues addressed.”





• “No admin included in the budget and no explanation”

• “Program funding sources not verified”• “All funding sources not provided and

documented”• “Existing water, sewer or street maps not

included”





• “Architectural fees too high”• “No pressure test info provided to

document claim of low pressure”• “No alternatives addressed”





• “Did not address maintenance”• “No architectural report included,

cost estimates not professionally prepared”

• “Ineligible program proposed”





• “Cannot determine cost per sq. ft.• “Existing building location not identified

on map”• “Acquisition not addressed”• “DOT permits not addressed on state

highway for sidewalks, curb & gutter”





• “Survey methodology questionable, not a random sample”

• “10-inch water line to serve 165 appears to be larger than necessary--no justification provided.”





• “Abandonment or limiting use of wells not addressed (narrative &/or budget)”

• “Application narrative refers to need for a new pump station but no $$ in budget”





• “Community center has no planned activities, appears to be more of a gathering place”

• “Drainage study did not specify a design standard”




COMMON MISTAKES FROM LAST YEAR

• DCA-6 Issues:• Identify the number of households

interviewed, not just the number of people.

• Include a spreadsheet summary and copies of a few survey forms.





• DCA-6 Issues:• We do not need to see a copy of every

survey form.• Identify any vacant units or businesses

on the spreadsheet summary and maps.





• Be very clear in identifying leverage as either cash or in-kind.

• All leverage must be identified as either cash or in-kind.




COMMON MISTAKES FROM LAST YEAR• Make sure match letter commitment

matches DCA-8 and project budget shown in cost estimate.

• Please place match letter right behind DCA-8.




COMMON MISTAKES FROM LAST YEAR• Buildings - If acquiring, a Purchase

Agreement is needed.• Buildings - For a new service or group, we

need a complete business plan. Identify the funding sources for the staff & activities. If staffed by volunteers, include their commitment letters. List hours of operation.




COMMON MISTAKES FROM LAST YEAR• If narrative claims water damage to

homes from flooding, include photos documenting the damage. Identify location of photos on map.

• If application claims sewage in yards or backing up in homes, document with photos.




COMMON MISTAKES FROM LAST YEAR• If application includes any letters written

in Spanish, please include a translation as well.

• We do not need to see procurement documentation for architect/engineers/administrators.


Community Finance DivisionRevised Strategy Criteria for 2013• Applications will be compared on their support

for comprehensive neighborhood revitalization or target population needs

• Competitive applications will plan to address most or all target area or target population community and economic development needs using CDBG and locally driven approaches

• Documentation and results measures are important

December 12-14, 2012




Documents

Public Facilities Application Basics