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**** **** Community Development Block Grant (CDBG) Program Fiscal Year 2012 Funding Announcement Page Sign-up to receive information on funding opportunities by email. **** **** Request for Proposals: The City and County of Honolulu, through its Department of Budget and Fiscal Services (City), is requesting proposals from qualified private nonprofit agencies and governmental agencies of the City and County of Honolulu for federal funding from the City's CDBG and HOME Programs for Fiscal Year 2012. The City anticipates that it will receive approximately $6 million in CDBG funds and $2 million in HOME funds to award to Agencies in Fiscal Year 2012. The City does not guarantee these amounts and does not guarantee that any funds will be available at all. The City is seeking projects that will enable it to achieve the goals and objectives published in its Final Consolidated Plan for Fiscal Years 2011-2016. **** **** Schedule: The schedule to submit applications for fiscal year 2012 CDBG and HOME funding is as follows: September 1, 2010......................................The Request For Proposals (RFP), including funding applications and a list of qualification materials is published at the Division of Purchasing, Department of Budget and Fiscal Services, City and County of Honolulu. September 21, 2010.......................................City to hold information/orientation meeting and consultation meeting. 4:00 p.m., October 4, 2010................Deadline for all agencies to submit CDBG/HOME funding application forms to the Division of Purchasing, as evidenced by a date and time stamp from the Division of Purchasing, located at Honolulu Hale, 530 South King Street, Room 115, Honolulu, Hawaii. Informational meeting: An information/orientation session about this RFP, application forms, and the CDBG and HOME programs will be held at 9:00 a.m., Tuesday, September 21, 2010, at the Mission Memorial Auditorium, located immediately Diamond Head of Honolulu Hale, 550 South King Street, Honolulu, Hawaii. All agencies must submit their CDBG/HOME funding applications to the Division of Purchasing by 4:00 p.m., Monday, October 4, 2010, as evidenced by a date and time stamp from the Division of Purchasing. The Division of Purchasing is located at Honolulu Hale, 530 South King Street, Room 115, Honolulu, Hawaii. (www.honolulu.gov/pur) Additional information about the CDBG and HOME programs is available on the website of the City Department of Budget and Fiscal Services by accessing http://www.honolulu.gov/budget/cdbg.htm. Questions may be directed to Jan Yokota at 768-3932. INTRODUCTION Title I of the Housing and Community Development Act of 1974 (Public Law 93-383) created a new community development block grant funding program which became effective January 1, 1975. This new arrangement replaced eight former categorical grant and loan programs under which grantees competed nationally for funds in specific project categories, including urban renewal; neighborhood development program grants; open space, urban beautification, and historic preservation grants; public facilities loans; water and sewer and neighborhood facilities grants; and Model Cities supplemental grants. Under the Community Development Block Grant (CDBG) program, instead of applying for individual grants and loans, a grantee is able to develop a flexible, locally designed comprehensive community development strategy in order to address the program's primary objective: "...development of viable urban communities, by providing decent housing and suitable living environment and expanding economic opportunities principally for persons of low and moderate income" (Sec. 570.2). The funding allocation of the CDBG program is based on a statutory formula which assures each entitlement grantee an annual sum of money to carry out its community development program. An entitlement grantee is a metropolitan city (the central city of a metropolitan area or a city with a population of 50,000 or greater) or an urban county. Under the law, 70 percent of the annual distribution of funds is reserved for entitlement communities. In order to receive its allocation of funds, a community must submit to the Department of Housing and Urban Development (HUD) a Consolidated Plan. Within certain federal limitations (and state limitations under certain state-administered non-entitlement programs), localities have complete decision-making power over how and where the block grant is to be spent. There is no federal project-by-project approval process as in the past. Since 1974, Title I has undergone some significant revisions. The Housing and Community Development Act of 1977 (Public Law 95-128) introduced a dual funding allocation formula, which was designed to benefit the older cities of the Northeast and The Cranston-Gonzalez National Affordable Housing Act of 1990 required grantees to increase the use of their funds for activities benefiting low- and moderate-income persons over a three-year period to 70 percent. BACKGROUND Each year, CDBG entitlement grantees submit to HUD a Consolidated Plan in order to receive program funds. The plan consists of: a) a housing and homeless needs assessment; b) a housing market analysis; c) a strategic plan; and d) an action plan for the geographic area encompassing the The Plan also requires the City to develop a community development plan that identifies community development and housing needs with specific short- and long-term objectives that provide decent housing and expand economic opportunities primarily for persons of low- and moderate-income. Grantees must furnish their citizens with information concerning the amount of CDBG funds that will be available in the coming program year (including anticipated program income); hold at least one public hearing on the proposed statement of objectives; and publish community-wide, the contents of the proposed statement of objectives. Community comments must be considered in the preparation of the final Consolidated Plan that is submitted to HUD. Citizens must also be given an estimate of the amount of CDBG funds benefitting low- and moderate-income residents, an estimate of displacement that may be caused by CDBG-assisted activities, and how much will be spent on relocation. Citizens and units of local government must also be given access to program information. Grantees must submit a series of certifications that their program complies with applicable federal laws relating to civil rights, fair housing, safety, labor, environmental protection, and historic preservation. Specific laws included in the certifications are: * Section 103 of the Housing and Community Development Act of 1974 as amended. * Title VI of the Civil Rights Act of 1964 (Nondiscrimination). * Title VIII of the Civil Rights Act of 1968 (Fair Housing); Fair Housing Amendments Act of 1988. * Executive Order 11063 (Equal Opportunity in Housing; HUD implementation is contained in 24 CFR 107). * Section 109 of the Housing and Community Development Act of 1974. * National Environmental Policy Act of 1969 as amended. * Section 202(a) of the Flood Disaster Protection Act of 1973. * Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. * Executive Order 11246 (Equal Employment * Section 3 of the Housing and Urban Development Act of 1968. * Sections 302 and 401(b) of the Lead-Based Paint and Poisoning Prevention Act. * Office of Management and Budget Circulars A-87, A-102, A-110, and A-122. * Section 504 of the Rehabilitation Act of 1973 as amended. HUD can delay, condition, or sanction grant awards on the basis of incomplete or inadequate certifications. Each entitlement grant recipient is required to submit an annual Grantee Performance Report (GPR) to the appropriate HUD area office. The GPR is due 90 days after the anniversary date of the start of the last funded entitlement program year. The purpose of the GPR is to review the program's progress, financial status, and level of citizen participation during the past program year. The GPR consists of the following elements: * Summaries of expenditures, activities, and overall program benefit to low- and moderate-income people. * Summaries of disbursements of lump-sum drawdown and revolving loan funds. * Characteristics of residents directly benefitting from CDBG expenditures, such as household type, income, and race. * Descriptions of activities to promote fair housing and to accommodate the displacement of low- and moderate-income people. The grantee must provide the number of displaced lower-income persons relocated into the same census tract. The only two federal requirements in establishing a state system are: 1) states must inform the federal agency what programs and activities are to be included in the state process (in the case of the CDBG program, HUD is the applicable federal agency); and 2) the states must provide assurances that local officials had been consulted whenever changes are made in the list of selected programs and activities. States are to select and design their own review and comment process and the delegate area-wide, regional, and local entities. It is expected, although not required, that states will designate a single point of contact to collect local comments and to serve as liaison with The federal agency responses to local comments are limited to acceptance, reaching a mutually agreeable solution, or explanation of non-accommodation. States which do not designate a single point of contact are not assured of an "accommodation of explain" response from the federal agency. A state point of contact does not have to transmit to the federal agency comments on proposed action not within the state process. In those instances, local commenters may submit their comments directly to the federal agency. FEDERAL All projects and activities must either 1) principally benefit low- and moderate-income persons, 2) aid in the prevention or elimination of slums and blight, or 3) meet other urgent community needs. The 1990 program amendments require grantees to spend, at a minimum, 70 percent of their funds on activities benefiting low- and moderate-income persons over a period of three years. Programs failing this standard will be further reviewed to determine if they promote the CDBG program's primary objective of developing viable urban communities principally for low-income persons. A project is presumed by HUD to benefit low- and moderate-income persons if it assists at least 51 percent of such persons and meets the following standards: * The project has income eligibility requirements that limit the benefits to lower-income persons. * The majority of the beneficiaries of the proposed project are lower-income (i.e., the area served by a project is predominantly lower-income). * Improvements to a business area, a specific firm, or serve an area that is primarily low- and moderate-income. * A facility is designed for use by elderly or handicapped people. * The majority of jobs created by an economic development activity are available, or will be available, to low- and moderate-income persons. * A project must be carried out prior to, or as an integral part of, a project which principally benefits lower income persons. * A project serving an area with less than a majority of lower-income persons, will qualify if the community has so few areas where lower-income people are the majority, that it would be inappropriate to limit the grant to projects in such areas. Programs found to have provided less than 70 percent of their funds for low- and moderate-income benefit activities will be more closely reviewed by HUD to see how the program's activities, taken as a whole, meet the CDBG program's primary objective. For example, a grantee can spend most of its funds on flood relief one year, provided 70 percent of its funds are being spent on low- and moderate-income activities over a two- or three-year period. Otherwise, the grantee would be considered out of compliance with the primary objective of the Act. An activity will be considered to address prevention or elimination of slums or blight in an area if the area meets the definition of a slum or blighted area and there are a substantial number of deteriorated buildings throughout the area. Spot basis rehabilitation in a non-slum and blighted area and urban renewal completion will also be considered to aid in the prevention or elimination of slums and blight. And lastly, an activity will be considered to address activities designed to meet community development needs having a particular urgency if the City certifies that an activity is designed to alleviated an existing condition (of recent origin) which poses a serious threat to the community and that other sources of funding are not available. PROJECT ELIGIBILITY In general, grant assistance may be used for the following activities: * Acquisition of real property. * Disposition of real property. * Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements. * Clearance, demolition and removal of buildings and improvements. * Provision of public services provided it is a new service or a quantifiable increase in a service now being provided and does not exceed 15 percent of the City's total entitlement. * Interim assistance to immediately arrest deterioration and alleviate emergency conditions. * Payment of non-federal share in connection with other federal programs undertaken as part of the development program. * Urban renewal completion. * Relocation payments. * Loss of rental income incurred in holding housing units for displacees. * Assist privately owned utilities. * Rehabilitation of privately owned buildings and low-income public housing. * Economic Development INELIGIBLE ACTIVITIES Religious activities.
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INTRODUCTION
The HOME Program was created under Title II (the HOME Investment Partnerships Act) of the National Affordable Housing Act of 1990. The general purposes of the HOME Program include: 1) To expand the supply of decent and affordable housing, particularly rental housing, for low and very low income Americans. 2) To strengthen the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing. 3) To provide both financial and technical assistance to participating jurisdictions, including the development of model programs for affordable low-income housing. 4) To extend and strengthen partnerships among all levels of government and the private sector, including for-profit and nonprofit organizations, in the production and operation of affordable housing. The City and The Consolidated Plan for Fiscal Years 2006-2010 was prepared by the City and documents | ||
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APPLICANT ELIGIBILITY
A more detailed description of a CHDO eligible entity is found in the attached HOME Project Proposal Form. However, for introductory purposes, applicants must meet the following criteria in order to be considered a CHDO and be eligible for CHDO assistance: 1) Be organized under State or local laws. 2) Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual. 3) Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization. 4) Has a tax exemption ruling from the Internal Revenue Service under Section 501 (c) of the Internal Revenue Code of 1986. 5) Does not include a public body (including the City and 6) Has standards of financial accountability that conform to Attachment F of OMB Circular No. A-110 (Rev.) "Standards for Financial Management Systems." 7) Has among its purposes the provision of decent housing that is affordable to low and moderate-income persons, as evidenced by its charter, articles of incorporation, resolutions or by-laws. 8) Maintains accountability to low-income community residents. 9) Has a demonstrated capacity for carrying out activities assisted with HOME funds. 10) Has a history of serving the community within which housing to be assisted with HOME funds is to be located. | |
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ELIGIBLE ACTIVITIES AND COSTS
HOME funds may be used by a CHDO to develop and support affordable rental housing and homeownership through the acquisition, new construction, reconstruction, or rehabilitation (moderate or substantial) of non-luxury housing with amenities, including real property acquisition, site improvement, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations; and to provide tenant-based rental assistance. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide affordable housing, and for which funds for construction have been committed. Housing that has received an initial certificate of occupancy or equivalent document within a one-year period before a CHDO commits HOME funds to the project is new construction. Conversion of an existing structure to affordable housing is rehabilitation, unless the conversion entails adding one or more units beyond the existing walls, in which case, the project is new construction HOME funds may be used to pay the following eligible costs: 1) Development hard costs defined as the actual cost of constructing or rehabilitating housing. 2) Acquisition costs defined as the costs of acquiring improved or unimproved real property. 3) Related soft costs defined as other reasonable and necessary costs incurred and associated with the financing, or development (or both) of new construction, rehabilitation or acquisition of housing assisted with HOME funds. 4) Relocation costs defined as costs of relocation payments and other relocation assistance for permanently and temporarily relocated individuals, families, businesses, nonprofit organizations, and farm operations where assistance is required or determined to be appropriate. 5) Costs related to tenant-based rental assistance defined as rental assistance payments made to provide tenant-based rental assistance for a family. | ||
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PROHIBITED ACTIVITIES
HOME funds may not be used to: 1) Provide a project reserve account for replacements, a project reserve account for unanticipated increases in operating costs, or operating subsidies. 2) Provide tenant-based rental assistance for the special purpose of the existing Section 8 Program or preventing displacement for projects assisted with rental rehabilitation grants. 3) Provide non-federal matching contributions required under any other Federal Program. 4) Provide assistance authorized under Part 965 (PHA-Owned or Leased Projects - Maintenance and Operation). 5) Carry out activities authorized under Part 968 (Public Housing Modernization). 6) Provide assistance to eligible low income housing under Part 248 (Prepayment of Low Income Housing Mortgages). 7) Provide assistance (other than tenant-based rental assistance or assistance to a first-time homebuyer to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the City. However, additional HOME funds may be committed to a project up to one year after project completion, but the amount of HOME funds in the project may not exceed the maximum per unit subsidy amount. 8) Pay impact fees. | ||
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OTHER HOME PROJECT REQUIREMENTS
A. Income Targeting - HOME Program as a Whole HOME funds invested in rental housing must meet the following income targeting requirements for the program as a whole: 1) at least 90% of such funds must be invested in units that are occupied by; and families whose annual incomes do not exceed 60% of the median family income. 2) the remaining funds (up to 10%) must be invested in units occupied by low income families. Very low income families means low income families whose annual incomes do not exceed 50% of the median family income for the area (in this case, Honolulu), as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50% of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. A lower income household, means a household whose annual income does not exceed 80% of the median family income for the area (in this case, Honolulu), as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80% of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. B. Income Targeting - Individually Assisted Rental Products Each rental project must: 1) Have at least 20% of its units occupied by very low income families and bearing rents not greater than the "Low HOME Rent Limit"). 2) 70% of the units occupied only by households whose incomes do not exceed 60% of median income and bear rents not greater than the High HOME Rent Limit. 3) 3)Not refuse for leasing because of the status of the prospective tenant as a holder of a Rental Certificate/Rental Voucher or a similar HOME tenant-based assistance document. 4) Remain affordable for the following terms based on the average HOME subsidy per unit:
All of the HOME funds used for homeownership assistance must benefit first-time home-buyers (including displaced homemakers and single parents who may have once owned a home with a spouse), or existing low-income homeowners whose family incomes are at or below 80% of the area median income. In addition: * The assisted housing must be the owner's principal residence; * The purchase price of the property, or the appraised value of a property already owned, after rehabilitation must be less than 95% of median area purchase price; and * Resale of the property by a first-time homebuyer must be restricted to low income homebuyers at a price that will yield a fair return to the seller and be affordable to the new owner. C. Maximum Per Unit Subsidies To ensure that units developed with HOME funds are non-luxury, affordable units, HUD has established a maximum per unit HOME subsidy on a market-by-market basis, adjusted for unit size, which will be updated and adjusted for inflation annually. D. Property Standards All HOME assisted units must meet local codes and standards, and, at a minimum, Section 8 Housing Quality Standards.
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| Last Reviewed: Wednesday, September 01, 2010 |
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