COUNTY OF KAUAI
HOUSING AGENCY
4193 HARDY
STREET
LIHUE , HI 96766
Phone : (808) 241-6444
COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) -
FACT SHEET
Funding
for Fiscal Year (FY) 2002 has already been awarded to selected projects. The next
funding cycle is expected to begin in October 2002 when applications for
funding will be available for projects to begin on or about August 2002. Below is the Fact Sheet for Fiscal Year (FY)
2002, which has good general information.
The Fact Sheet for FY 2003, which will probably have some changes, will
be available in October 2003.
OFFICES OF COMMUNITY
ASSISTANCE
KAUAI COUNTY HOUSING AGENCY
COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM
FISCAL YEAR 2002
FACT
SHEET
Introduction
The
Kauai County Housing Agency (KCHA) is accepting applications for funding by the
Community Development Block Grant (CDBG) program. The U.S. Department of Housing and Urban
Development (HUD) are making the grants available through the County’s CDBG
Program. One (1) original of each
application, including attachments, must be submitted no later than 4:00 p.m.
on Friday, January 4, 2002.
Applications can be obtained from and submitted to:
Offices of Community Assistance
Kauai
County Housing Agency
Development
Division
Call Jo Shimamoto,
CDBG Coordinator, at (808) 241-6809 between the hours of
CDBG PROGRAM
The
CDBG program provides
Funding The
program is funded by the U.S. Department of Housing and Urban Development
(HUD). The County will probably receive
an allocation of about $921,000 for FY 2002.
The County will utilize $184,200 for administration costs. $736,800 will be available for projects.
Eligible Subrecipients · Government Agencies
· Private For-profit agency
· Neighborhood-based non-profit agencies
· Small business investments
Primary CDBG Objectives The
primary CDBG objective is the development of viable urban communities, which
can be achieved by:
· Providing decent housing,
· Providing a suitable living environment,
and
· Expanding economic opportunities
National Objectives In
order to be considered projects must meet one of the three national objectives
of the program. Activities that do not
meet one of the following three national objectives cannot be undertaken with
CDBG funds:
1. Directly benefit low
and moderate income persons. (24 CFR
570.208 (a))
For
a project to meet the first national objective of benefiting low and moderate
income persons, it must either have income eligibility requirements that limit
the benefits of that project to low and moderate income persons, require
information on family size and income so that it is evident that at least 51%
of the beneficiaries are persons whose family income does not exceed the low
and moderate income limit, or the project must be located in a neighborhood or
serve an area that is predominantly inhabited by residents who are persons of
low and moderate income.
Tables
showing eligible and ineligible low and moderate income areas are attached.
Under
the regulations for the CDBG program, facilities that serve the elderly or
adults with disabilities are usually considered to benefit low and moderate
income persons.
Data
on household size and income of each person in the household is required to
verify that the percentage of low and moderate income beneficiaries is at least
51%. The income of every individual,
including children, in the household must be included in determining the total
household income. All income information must be verified via third party documentation. In addition to the description of income
inclusions below, refer to 24 CFR 5.609 for income inclusions and
exclusions.
INCOME
INCLUSIONS
(1)
The
full amount, before any payroll deductions, of wages and salaries, overtime
pay, commissions, fees, tips and bonuses,
and other compensation for personal services;
(2) The
net income from the operation of a business or profession. Expenditures for
business
expansion or amortization of capital indebtedness shall not be used as
deductions in determining net income. An
allowance for depreciation of assets used in a business or profession may be
deducted, based on straight-line depreciation, as provided in Internal Revenue
Service regulations. Any withdrawal of
cash or assets from the operation of a business or profession will be included
in income, except to the extent the withdrawal is reimbursement of cash or
assets invested in the operation by the family;
(3)
Interest, dividends, and other net income
of any kind from real or personal property.
Expenditures
for amortization of capital indebtedness shall not be used as deductions in
determining net income. An allowance for
depreciation is permitted only as authorized in paragraph (b)(2) of 24 CFR
§5.609. Any withdrawal of cash or assets
from an investment will be included in income, except to the extent the
withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in
excess of $5,000, annual income shall include the greater of the actual income
derived from all net family assets or a percentage of the value of such assets
based on the current passbook savings rate, as determined by HUD;
(4) The
full amount of periodic amounts received from Social Security, annuities,
insurance
policies, retirement funds, pensions, disability or death benefits, and other
similar types of periodic receipts, including a lump-sum amount or prospective
monthly amounts for the delayed start of a periodic amount (except as provided
in paragraph (c)(14) of 24 CFR §5.609);
(5)
Payments in lieu of earnings, such as
unemployment and disability compensation,
worker’s
compensation and severance pay (except as provided in paragraph (c)(3) of 24
CFR §5.609);
(6) Welfare
assistance. If the welfare assistance
payment includes an amount
specifically
designated for shelter and utilities that is subject to adjustment by the
welfare assistance agency in accordance with the actual cost of shelter and
utilities, the amount of welfare assistance income to be included as income
shall consist of:
(i)
The amount of the allowance or grant
exclusive of the amount specifically designated for shelter or utilities; plus
(ii)
The maximum amount that the welfare
assistance agency could in fact allow the family for shelter and
utilities. If the family’s welfare
assistance is ratably reduced form the standard of need by applying a percentage,
the amount calculated under paragraph (b)(6)(ii) of 24 CFR §5.609 shall be the
amount resulting from one application of the percentage;
(7)
Periodic and determinable allowances, such
as alimony and child support
payments,
and regular contributions or gifts received from organizations or from persons
not residing in the dwelling;
(8)
All regular pay, special pay and
allowances of a member of the Armed Forces
(except
as provided in paragraph (c)(7) of 24 CFR §5.609).
The
following income limits have been established by HUD for
HUD
INCOME LIMITS Effective
|
Family
Size |
80% of
Median |
|
1 |
$36,200 |
|
2 |
$41,350 |
|
3 |
$46,500 |
|
4 |
$51,700 |
|
5 |
$55,800 |
|
6 |
$59,950 |
|
7 |
$64,100 |
|
8 |
$68,200 |
2. Aid in the prevention or elimination of
slums or blight. (24 CFR 570.208 (b))
For
a project to meet the second objective of prevention or elimination of slums or
blight, it must be designed to address the conditions causing the slum and
blight.
3.
Meet community development needs having a
particular urgency (referred to as urgent need). (24 CFR 570.208 (c) )
The
use of this third objective category is extremely rare. It is designed only for activities that
alleviate emergency conditions. Urgent
need activities must meet the following qualifying criteria:
a. The
existing conditions must pose a serious and immediate threat to the health or welfare of the
community;
b. The existing conditions are of recent
origin or recently became urgent (generally,
within the past 18 months);
c. The recipient is unable to finance the
activity on its own; and
d. Other sources of funding are not
available.
Eligible Activities The following list includes the types of activities
that can be funded as part of the CDBG Program; provided that, the activity
falls into one of the three eligible categories described above.
This list is not all-inclusive.
Refer to the regulations on eligible and ineligible activities (24 CFR
Subpart C).
I.
Public Facilities and Improvements: Acquisition, construction, reconstruction,
rehabilitation or installation of the following:
A.
Water System Improvements – Acquisition of
private systems, installation of new systems, extensions to unserved
areas and improvements to existing systems.
B.
Sewer System Improvements – Extensions to unsewered areas, replacement of existing lines, connections
of private properties, and improvements to sewer treatment plants.
C.
Street & Drainage Improvements –
Drainage basins & lines, streets, curbs, gutters, sidewalks, lights,
bridges, and canal undergrounding.
D.
Fire Protection Improvements – Fire
stations, hydrants, and fire protection equipment.
E.
Neighborhood Facilities – single or
multi-purpose facilities to provide health, social, recreational, or similar
services as well as branch libraries and facilities for specific groups, such
as senior citizens and the handicapped.
F.
Parks & Recreation Facilities – site
acquisition, development and improvements to new and existing parks,
playgrounds and other recreational facilities.
G.
Solid Waste Facilities & Equipment.
H.
Conversion of schools for eligible
purposes
II.
Economic Development: Improvements to business districts, business
expansion, job creation and retention, industrial development and
predevelopment planning can occur thorough off-or on-site public works
improvements, and low-interest business loans for rehabilitation, improvement
or new construction.
III.
Public Services: Such as health services, child care, and
crime prevention.
IV.
Housing:
Rehabilitation of residential and non-residential structures, Section 8
substantial rehabilitation, new construction subsidies for off-site
improvements, landbanking, code enforcement, and
predevelopment planning.
V.
Removal of Architectural Barriers: Removal of architectural barriers that
restrict the mobility and accessibility of elderly or handicapped persons such
as curb cuts, park improvements, and improvements to public buildings to meet
VI.
Historic Preservation.
VII. Energy
Conservation Measures and Renewable Energy Resources.
Ineligible Activities Certain
types of projects are ineligible for assistance from the CDBG program. The following types of activities are
generally ineligible:
I. Construction of or improvements to
general government buildings: Civic
buildings such as city halls, courthouses, and police stations.
II.
Operating – Maintenance Expenses: Routine operation, maintenance, and repair
activities for public facilities and services.
III. Assistance to churches or church-affiliated
organizations are not eligible unless a clear separation of purpose, mission,
and organizational relationship can be established between the church and the
project.
IV.
Any costs already incurred by an
organization prior to receiving a signed agreement from the County.
V.
Purchase of Equipment (Except for fire and
solid waste): Furnishings and personal
property.
VI.
New Housing Construction.
Priorities for
1. Public Facilities. Public facilities and
improvements may include the acquisition, construction, and rehabilitation of
certain publicly and privately owned facilities that principally benefit low
and moderate income persons. CDBG funds
may be used by the County or other public or private nonprofit entity for
public improvements or facilities, provided such improvements or facilities
meet the national objectives of the CDBG program. Such facilities include but
are not limited to, fire protection facilities and equipment; shelters for the
homeless; convalescent homes; hospitals; nursing homes; battered spouse
shelters; halfway houses for run-away children; group homes for developmentally
disabled citizens and temporary housing for disaster victims. Preference shall be given to public
facilities projects which are directed to increasing the level of compliance to
the requirements of the American With Disabilities Act.
2. Public Services. CDBG funds may be expended to provide public
services (including labor, supplies and materials) directed toward improving
the community’s public service and facilities, including those concerned with
employment, homeless supportive services and prevention, crime prevention,
child care, health, drug abuse, education, welfare or recreational needs, and
are directed toward coordinating public and private development programs. To be awarded CDBG funds, a public service
must either be a new service or, for an existing service, there must be a
quantifiable increase in the level of a service. (Limited to 15% of current grant year
funding.)
3. Housing. CDBG funds may be given for programs and projects that
increase or support the increase in the housing inventory for lower income
families and individuals. These Programs
and projects shall support the General Plan policies, especially as they relate
to housing, support current housing needs assessment studies, and support the
area development plans. The projects may
include: rehabilitation, land acquisition, infrastructure improvements,
architectural service, demolition and clearance activities, and other eligible
activities in support of new housing construction and/or provide direct
homeownership assistance to low and moderate income households.
4. Economic Development. Economic development projects
and activities are those directed toward (a) the alleviation of physical and
economic distress, (b) expanding economic opportunities for low and moderate
income persons, and handicapped persons, and (c) which are necessary and
appropriate to implement the County’s strategy for economic development. Economic development programs shall support
businesses located in lower income areas and which employ lower income residents
of the area; or provide support service facilities which allow lower income
persons to prepare for, obtain, and retain gainful employment. Economic development project awards must be
short-term loans of up to five years and with a three percent (3%) interest
rate, no grants awarded.
Selection
Process/Scoring Criteria Kauai County Housing Agency will review,
evaluate and score each application. The
total maximum score possible is 1,000 points.
The minimum score of 600 points will be the threshold a proposal must
pass to be considered for funding. Scoring is based on the following
categories:
· Proposal concept - (200 points)
Results
to be achieved; project feasibility/identified needs; minority impact; female
head-of-household impact; income group targeting.
· Project readiness - (350 points)
Project
schedule; infrastructure; land use; site control; displacement; environmental
concerns; project team/coordinator; project plans; community and/or government
support.
· Financing - (350 points)
Project
budget; financial commitment/other resources; grant vs. loans/loan terms;
public benefit; need for continued support.
· Experience and qualifications. -
(50 points)
Experience
and past performance; qualifications of the applicant organization and staff;
past performance of the organization.
· Completeness & documentation
(50 points)
Completeness
of application and supporting documents.
KCHA
estimates that 14 working days will be required to evaluate the
applications. During the evaluation period,
applicants may be requested to make oral presentations or submit additional
information as required. KCHA expects to
recommend projects to the Mayor for funding on or about
A
One-Year Action Plan (AP), which includes housing and community development
needs, priorities and proposed projects will be submitted to the County Council
for comment and submitted to HUD for approval. The selected 2002 CDBG projects
will be part of the 2002 Action Plan for
Contractual
Requirements Under County and
Federal laws and regulations, certain requirements must be met in order to
negotiate an agreement and disburse funds.
These requirements include the following:
1. Except for economic development projects
and certain types of housing projects, applicants must demonstrate that they
are a private, non-profit or governmental agency. If non-profit, they must be incorporated
under state law and have/or have applied for 501(c)(3) status.
2. After an application is approved for funding,
an agreement will be prepared and sent by the County to the person identified
by the applicant as the authorized official for signature. The agreement will specify the amount of the
award, the period for which the project is approved, duration dates, and
administrative provisions. Special
conditions attached to the award will be specified in the agreement.
Before
entering into a contract with the County, a State of
Certain
reports, such as expenditures, progress toward goals, and service beneficiaries
reports will be required. Forms for
these reports will be provided.
Appropriate project/organization staff
will be required to attend an informational meeting regarding these
requirements.
3.
Adequate insurance covering workman's
compensation, bodily injury, property damage, or automobile liability,
depending on the nature of the project, will be required. General liability and property insurance of
not less than $300,000 coverage is required.
4. As part of any grant agreement, compliance
with the above requirements must be followed.
In the event of non-compliance with any of the above requirements, the
agreement may be terminated or suspended in whole or in part.
Other Program
Requirements
1. Fair Housing and Equal Opportunity: Discrimination on the basis of race,
color, national origin, religion, or sex is prohibited.
2. Handicapped accessibility: Generally, federally-assisted buildings and facilities must be accessible. The Disability and Communication Access Board
to ensure compliance with the Americans with Disabilities Act must review
construction plans. A packet of relevant
forms and a fact sheet is available for your reference.
3. Employment and contracting: Subrecipients shall
not discriminate in employment and must make efforts to provide training and
employment opportunities to low-income residents.
4.
Environmental review: Must comply with Environmental Review Procedures
in accordance with 24 CFR Part 58, as amended.
5. Flood plains: CDBG funds will not be provided in areas
designated by the Federal Emergency Management Agency (FEMA) to be 100 year
flood plains.
6. Lead-based paint: CDBG rehabilitation and construction
activities must comply with 24 CFR 570.608. as amended, and 24 CFR Part 35, as
amended, and Section 401(b) of the Lead-Based Paint Poisoning Prevention Act. All pre-1978 housing structures must be tested
for lead-based paint, unless a surface is assumed to contain lead-based
paint.
7. Labor Standards: Construction activities may be required to
comply with the Davis-Bacon Act, the Contract Work Hours and Safety Standards
Act, and the Copeland Act (Anti-Kickback Act).
8. Debarred, suspended, and ineligible
contractors and subrecipients: CDBG funds cannot be provided to
debarred, suspended or ineligible contractors, subcontractors or subrecipients.
9. Conflict-of-interest: Subrecipients
must comply with procurement requirements found at 24 CFR 85.36, as amended
(state and local governments), and 85.42, as amended (non-profits), and with
any other applicable conflict-of-interest provisions.
10. Acquisition and relocation: Acquisition, rehabilitation, and/or
demolition activities
may be covered by the Uniform
Relocation Act and/or Section 104(d) of the Housing
and Community Development Act.
11. Use of real property assisted with CDBG
funds: Subrecipients
must comply with
use and property management standards as
set forth in 24 CFR 84.30 – 84.37 and 24 CFR 570.505, as amended, and the
County’s policy relating to real property standards and the use of real
property.
Other points to
consider when applying for CDBG funds
1.
Public Information Hearings
There
will be at least two public information hearings held by the County.
2.
Pre-application pointers
· If salaries are included in the budget,
you may need to estimate for fringe benefits.
Personnel costs may not exceed 20% of CDBG award.
· Bidding procedures must be followed for
purchases of goods and services.
· Environmental Assessments (EA) may be
necessary for certain projects. If one is required for your project, it is
recommended that the party responsible for completion of the EA be identified
early.
· If an Environmental Impact Statement
(EIS) is necessary, the project will
be disapproved because the EIS
process takes about 2 years.
3.
Federal projects require more money.
Because
of the CDBG rules and federal requirements, the project may need more funds
than anticipated.
4.
Construction projects
· The general or prime contractor will be
responsible for all subcontractors. Funds will be paid to the prime contractor,
not the subrecipient.
· Employees must be paid no less than the
current federal wages.
· All labor standard requirements will
apply.
· Approval by the Disability and
Communication Access Board must be received by KCHA before any construction
funds can be released.
· A Project sign acknowledging HUD’s contribution
must be installed prominently at the Project site. Specifications for the sign are available for
your reference.