Draft ACTION PLAN Community Development Grant Program Disaster

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) PUBLIC HEARING AGENDA • Overview • CDBG-DR Regulations - Highlights • Proposed Timeline • Presentation of Draft Action Plan • Clarifying Questions & Answers • Public Input

Community Development Block Grant – Disaster Recovery (CDBG-DR) Overview l Federal Register Notice – Official Notice – Funding from the U. S. Department of Housing & Urban Development (HUD) – Released, April 16, 2012 – Effective, April 23, 2012 l 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

Community Development Block Grant – Disaster Recovery (CDBG-DR) l $21, 660, 211 CDBG-Disaster Recovery funding l Assist communities with disaster recovery – Restoration of infrastructure – Housing – Economic Development

Community Development Block Grant – Disaster Recovery (CDBG-DR) l Allocation based on unmet needs – Federal Register pg. 22597, Appendix A. • Allocation Methodology l Based on unmet needs – Infrastructure – Severe damage to businesses and housing l Data of assistance provided as of December 2011 – Insurance – FEMA assistance – SBA disaster loans

Community Development Block Grant – Disaster Recovery (CDBG-DR) l Statutory requirement – Funds must be targeted • “Most impacted or distressed areas” l Only counties with $10 M or more in severe unmet housing and business needs were used to determine allocation l Limited funding to states and counties – Highest level of severe unmet needs

Community Development Block Grant – Disaster Recovery (CDBG-DR) l HUD’s methods for estimating unmet needs – Businesses – Infrastructure – Housing l 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%)

Community Development Block Grant – Disaster Recovery (CDBG-DR) l Severe Unmet Housing Needs – # of owner-occupied units FEMA-eligible for repair or replacement – Units with $15 K to $28 K (major-high) damage estimates – Units with >$28 K (Severe) damage estimates – # of rental units assessed for personal property loss • Located near major-high or severe owner-occupied dwellings – Tenants with income <$20 K • Capture loss of affordable rental housing l Unmet needs estimate – FEMA grant amount and SBA loans subtracted from total estimated damage

Community Development Block Grant – Disaster Recovery (CDBG-DR) l Unmet Infrastructure Needs – Data from FEMA Public Assistance damage estimates • State’s match requirement, generally 25% – Focus on permanent long-term recovery measures l 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 >$65 K for estimated damage

Community Development Block Grant – Disaster Recovery (CDBG-DR) l 80% of allocation must be targeted to areas of greatest need – Washington and Windsor counties l State and Congressional Delegation are in discussion with HUD for greater flexibility – l Expand into Windham county Currently must work with 80% targeting mandate

Community Development Block Grant – Disaster Recovery (CDBG-DR) State must develop an Action Plan to access funding l – – Submit to HUD within 90 days of Notice, July 23, 2012 HUD issues approval within 45 days, September 6, 2012 Citizen Participation l – – – 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

Community Development Block Grant – Disaster Recovery (CDBG-DR) l 50% of allocation, $10, 288, 605 must be identified projects at initial submission of Action Plan to HUD l Remaining 50% , must be identified projects – No later than January 22, 2013 First draw down of funds l – Must be by October 22, 2012

Community Development Block Grant – Disaster Recovery (CDBG-DR) Action Plan considered a living document l – – Will be amended as new information and data is identified Will be amended once additional specific projects are awarded Substantial Amendments l – – – Change in Program benefit or eligibility Allocation or re-allocation of $1 million Deletion or addition of an activity

Community Development Block Grant – Disaster Recovery (CDBG-DR) CDBG-DR Regulations - Highlights 50% of funds must benefit low and moderate income l – l $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

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses l Buyouts of flood damaged properties in flood plain; l Rehabilitation of homes and buildings damaged by the disaster; l Relocating residents, local government facilities and businesses to safer areas;

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses l Repair and reconstruction of municipal infrastructure – roads, culverts, buildings; l Homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees;

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses Business financial assistance l – – – Create or retain jobs Interest rate buy downs Rent subsidies Lost rental revenue Tourism and marketing efforts

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses-continued l New housing production to replace lost units l Public services, counseling l Matching funds – – Economic Development Authority grants (EDA) Hazard Mitigation Grant Program (HMGP)

Community Development Block Grant – Disaster Recovery (CDBG-DR) Eligible Uses-continued l Debris removal not covered by FEMA, or other resources l Disaster recovery planning; l Grant administration and program delivery costs.

Community Development Block Grant – Disaster Recovery (CDBG-DR) Duplication of Benefit l – Subrogation Agreement • Must repay Federal Disaster Assistance – – l If other funds are received at a later date Discovery of available funds at a later date Document , Document!

Community Development Block Grant – Disaster Recovery (CDBG-DR) Buy out Requirements l – Permanent Deed Restrictions Flood Insurance Requirements l – – – 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

Community Development Block Grant – Disaster Recovery (CDBG-DR) DRAFT Action Plan – Development Unmet Needs and Impact Assessment l – • • • Analysis of Data - Recovery efforts to date Housing Business community Agricultural community Tourism and Marketing Infrastructure - roads, culverts, buildings

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview Housing l – $24. 9 M as of end of 2011 • • $8. 9 M renovation needs $1 M damaged or destroyed mobile homes $5. 8 M buy outs $884 K homebuyer assistance

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview Infrastructure - l – $6. 5 M FEMA Public Assistance Match

Community Development Block Grant – Disaster Recovery (CDBG-DR) Unmet Needs - Overview Economic l – $22. 2 M as of end of 2011 • • $5. 4 M Farm damage, 20 K acres Over 300 businesses lost or damaged – – – Reconstruction needs Marketing needs – buy local Insurance negotiations

Community Development Block Grant – Disaster Recovery (CDBG-DR) Method of Distribution Total Allocation l – State Administration (5 yrs) $ 1, 083, 011 Grant Total l – – – $21, 660, 211 Competitive Grants State Direct Grants Contingency (10%) $20, 577, 200 $ 8, 750, 000 $ 9, 661, 179 $ 2, 166, 021

Community Development Block Grant – Disaster Recovery (CDBG-DR) Competitive Grants l Economic Recovery • l l $3, 000 Projects not eligible for FEMA Public Assistance Planning • $1, 750, 000 Replacement Housing, Mobile Home Park Replacement, Mitigation Municipal Infrastructure • • l Businesses, Farms, Nonprofits Housing • • $3, 000 Project Feasibility and Development $1, 000

Community Development Block Grant – Disaster Recovery (CDBG-DR) State Direct Grants l Buy outs – Local Match and non-eligible $5, 112, 530 • l Housing Recovery Program • l l Hazard Mitigation Grant Program (HMGP) $3, 398, 649 Rehabilitation, down payment assistance, Financial counseling Mobile Home Financing Program $ 500, 000 Economic Recovery • Tourism Recovery Marketing • Downtown Assistance $ $ 250, 000 400, 000

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

Community Development Block Grant – Disaster Recovery (CDBG-DR) l Applications submitted online – Intelligrants Management system l Threshold Review – 10% Match (cash, cash-in-kind, grant or loans) – Implementation grant, maximum request $1 M – Planning grant, maximum request $100 K

Community Development Block Grant – Disaster Recovery (CDBG-DR) l 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

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

Community Development Block Grant – Disaster Recovery (CDBG-DR) l Scoring Review, page 23 -24 of Draft Action Plan – Need – Impact – Feasibility 50 pts 25 pts

Community Development Block Grant – Disaster Recovery (CDBG-DR) l CD Specialist summarizes for CD Board l CD Board deliberates – Makes recommendation to Agency Secretary l Secretary makes final award decision

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

Hazard Mitigation Grant Program (HMGP) – Buy outs

Community Development Block Grant – Disaster Recovery (CDBG-DR) Compliance Overview l Environmental Review – Caution – Historic Preservation/Archaeological issues – 8 Step Flood Plain process l Procurement – Competitive process, open and fair – Cannot be Debarred, Excluded Parties List

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

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

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 Ann. Karlene. Kroll@state. vt. us