COLLINS CAPITAL GROUP

HOUSING

P.O. Box 668611

Charlotte, North Carolina 28266
704.605.0127
collinscapitalgroup.blogspot.com /
Community Planning and
Development Programs
Getting Involved Through the
Consolidated Planning
Process
 Module 3 Overview
 HUD’s Community Planning and Development
(CPD) Formula Programs.
– CDBG
– HOME
– HOPWA
– ESG
 Briefing of CPD’s Competitive Programs.
 The Consolidated Plan Process and Getting
Involved.
 CBDOs and CHDOs.
 HUD’s Federal Formula Programs
 Grantee:
– The State or Locality that receives and distributes
funding.

 Formulas:
– Determines which States and Localities will receive the
funding and how much of it.

 Money:
– Allocated each year to the grantees, for each program.

 Match Funds:
– HOME, HOPWA and ESG require a Match.
 HUD Formula Programs
 Community Development Block Grant, CDBG
– FY 2008 Total of $3,865,800,000

 HOME Investment Partnerships Program, HOME

– FY 2008 Total of $1,704,000,000

 Emergency Shelter Grant, ESG

– FY 2008 Total of $160,000,000

 Housing Opportunities for Persons with AIDS, HOPWA

– FY 2008 Total $300,100,000

http://www.hud.gov/offices/cpd/
What is the Community Development
Block Grant? (CDBG)
The CDBG program is a flexible program that
provides communities with resources to address a
wide range of community development needs.

It was begun through the Housing and Community

Development Act of 1974.

It is one of the longest continuously run programs at

HUD.

http://www.hud.gov/offices/cpd/communitydevelopment/programs/
 Primary Objectives of CDBG
The development of viable communities,
principally for low and moderate income
persons, through:

• Decent Housing

• Suitable Living Environment

• Expanded Economic Opportunity

 CDBG National Objectives
Each Activity MUST meet at least one:

2. Benefit low- and moderate-income persons,

4. Prevent or eliminate slums or blight,

6. Urgent Need
 Persons Served by CDBG
 Low and Moderate Income
Households and persons whose incomes do not
exceed 80 percent of the median income of the
area involved, as determined by HUD with
adjustments for household or family size.

Over a 1, 2, or 3-year period, as selected by the

grantee, not less than 70 percent of CDBG funds
MUST be used for activities that benefit low- and
moderate-income persons.
 Some Eligible CDBG Activities
 Acquisition of Real Property
 Construction of Public Facilities and Improvements
– Such as water and sewer facilities, streets, neighborhood
centers, and the conversion of school buildings for eligible
purposes
 Rehab of Residential and Non-Residential Structures
 Public Services, within certain limits
 Activities related to Energy Conservation and Renewable
Energy Resources
 Relocation and Demolition
 Housing Services, Some Homeownership Activities
 Economic Development
 Community Based Development Organization (CBDO)
Activities (More discussion in later module)
 Planning and Administration
 Some Ineligible Activities
 Buildings for the general conduct of government
and general government expenses
 Political activities
 New housing construction by local units of
governments
 Income payments
 Purchase of equipment
 Operating and maintenance expenses
Distribution of CDBG Funds
 Entitlement Program
– Principal cities of Metropolitan Statistical Areas
(MSA’s)
– Cities with populations of 50,000 or more
– Qualified urban counties with populations of 200,000
or more (not including a qualifying city).

 State and Small Cities Program

– States that administer the program to non-entitled
cities/counties; and Hawaii
How Can CDBG Funding Get to You?
 You would probably be the Subrecipient,
unless you are a CBDO.
– A public or private nonprofit agency, authority, or
organization, or a for-profit entity authorized under
§570.201(o), receiving CDBG funds from the recipient
or another subrecipient to undertake activities eligible
under subpart C.

Your local government makes the decision

about which organizations to fund.
 HOME Investment
Partnership Program (HOME)

Designed exclusively to create affordable

housing for low-income households.

Became law in 1990.

http://www.hud.gov/homeprogram/
 Participating Jurisdictions
(PJs)
 State and Local Governments, or Consortia.
 Receive annual formula allocations HOME funds.
 Responsible for the eligible use of funds.
 A PJ may designate a “Subrecipient” (public
agency or nonprofit) to administer all or a portion
of its program on its behalf.

You would receive funding from the PJ or the

Subrecipient.
 Overall Key Actors in the HOME
Program
 State Governments
 State Recipients
 Local Governments
 Consortia
 Subrecipients
 Community Housing Development Organizations
(CHDO’s)
 Developers, owners, and sponsors
 Private lenders
 Contractors
 Four HOME Program Types
 Homeowner (Owner-Occupied) Rehabilitation

 Homebuyer Assistance

 Rental Development
– New construction or rehabilitation

 Tenant-Based Rental Assistance (TBRA)

 Eligible HOME Activities
 Acquisition (standard properties)

 Rehabilitation

 New Construction

 Tenant-based rental assistance

Some Eligible HOME Expenditures
 Hard costs (construction)
 Land Acquisition
 Demolition
 Project Related Soft Costs
– Inspections
– Financing fees, etc.
 Relocation Costs
 Some Prohibited Activities in
HOME
 Non-housing facilities (shelters, nursing homes,
treatment facilities, other public facilities)
 Emergency Repairs
 Project-based rental assistance
 Paying delinquent taxes on behalf of the owner
 Operation, construction or modernization of
Public Housing
 Match for other federal programs
 Overview of Basic HOME Rules
 All HOME funds must be used for families with
incomes below 80 percent of the Area Median
Income.
– Deeper targeting for rental housing

 HOME-funded projects are subject to affordability

periods.

 New construction and rehab must meet local codes

and property standards and federal accessibility
requirements.
 Other Notable HOME Features
 Matching requirement
– PJs must match 25 cents of every HOME dollar.

 Performance standards
– Funds must be committed within 2 years
– Funds must be expended within 5 years

 Technical Assistance funds

– Awarded to intermediaries to build the capacity of
qualified Community Housing Development
Organizations (CHDOs).
 Forms of HOME Assistance
 Direct Assistance
– Grants
– Direct Loans (interest or non-interest bearing)
– Deferred Loans

 Loan Guarantees
– For rental, owner-occupied rehab or homebuyer
programs.
Limits on How Funds Can Be Spent
 Administration: Up to 10% of allocation

 CHDO Operating Expenses: Up to 5%

 CHDO Set-Aside for development

project activities: AT LEAST 15%

 Remaining HOME funding is used for

Project Activities.
 Housing Opportunities for
Persons With AIDS (HOPWA)
 Has both a Formula and a Competitive Program.

 Eligible States and localities determined using a

statutory formula that relies on AIDS statistics.

 Used for housing assistance and appropriate supportive

services.

http://www.hud.gov/offices/cpd/aidshousing/programs/
 HOPWA
 Some Examples of Eligible Uses:
– Acquisition, rehabilitation and new construction of
housing units
– Costs for facility operations
– Rental assistance
– Short-term payments to prevent homelessness
– Supportive Services
• Mental health services
• Chemical dependency treatment
• Nutritional services
• Case management
• Assistance with daily living
Emergency Shelter Grant (ESG)
Purpose:

To provide homeless persons with basic

shelter and essential supportive services.

 http://www.hud.gov/offices/cpd/homeless/programs/esg
Emergency Shelter Grant (ESG)
History:

Originally established by the Homeless Housing

Act of 1986

Incorporated into subtitle B of title IV of the

McKinney-Vento Homeless Assistance Act in
1987.
 Emergency Shelter Grant (ESG)
Grantees:
– State governments, metropolitan cities, urban counties,
and U.S. territories
– Grantees make the funds available to eligible recipients,
which can be local government agencies or private
nonprofit organizations.

Matching Requirement:
– Local ESG grant funds must be matched dollar for dollar
with locally-generated amounts.
– States do not have to match the first $100,000 of ESG
assistance that they receive.
 Five Categories of ESG Eligible
Activities
 Rehab or conversion of buildings into
homeless shelters
 Operating expenses and maintenance of the
shelter
 Essential supportive services
 Short-term homeless prevention activities
 Administration of the grant
HUD’s Definition of Homelessness
 Based on primary nighttime residence
 Includes individuals and families
 Must be living in one of the following:
– Places not meant for human habitation;
– Emergency shelter; or
– Transitional housing for homeless persons who
originally came from streets or emergency
shelter
HUD’s Definition of Homelessness
 Does not include:
– Persons living in substandard housing
– Persons living in overcrowded housing
situations
– Persons that are wards of the state
– Persons being discharged from institutions
where housing placement is condition of release
– Persons living with family/friends
 Chronic Homelessness
HUD is focused on ending chronic homelessness

 Definition of a chronically homeless person:

“Either:
1. An unaccompanied homeless individual with a disabling
condition who has been continuously homeless for a year
or more, OR
2. An unaccompanied individual with a disabling condition
who has had at least four episodes of homelessness in the
past three years.”
 Competitive Programs
In the Office Community Planning and
Development (CPD)
– The Continuum of Care
• Homeless Competitive Grants
– Other CPD Competitive Grants

Certificate of Consistency with the

Consolidated Plan
The Continuum of Care (CoC)
HUD’s Homeless Assistance Plan

HUD believes the best approach for

alleviating homelessness is through a
community-based process that provides a
comprehensive response to the diverse needs
of homeless persons.

http://www.hud.gov/offices/cpd/homeless/programs/index.cfm
 Continuum of Care Basics
“A collaborative funding approach that helps
communities plan for and provide a full range of
emergency, transitional, and permanent housing
and service resources to address the various needs
of homeless persons.” FY 2007 SuperNOFA

 Locally organized
 Includes designated lead agency and contact
person
 Geographically based
Overview of Continuum of Care
A CoC system is developed through an inclusive, community-
wide or region-wide process involving:
– Housing and service – Housing developers and
providers other private businesses
– Nonprofit organizations – Private agencies, like
– Public housing health care organizations
authorities – Law enforcement and
– Advocacy groups corrections
– Community and faith- – School systems
based organizations – Private funding providers
– State and local – Homeless or formerly
government agencies homeless persons
 Continuum of Care
Veterans Services
Government Mental Illness

Businesses Banks
CoC
Planning/Coordinating Housing
HIV / AIDS Organizations Developers

Foundations
Service Providers
Educators
Neighborhood Homeless Persons
Groups
 Five Basic Components of
Continuum of Care
1. Outreach and assessment to identify the needs and
conditions of homeless persons.

3. Immediate (emergency) shelter with appropriate

supportive services.

4. Transitional housing with appropriate supportive

services.

6. Permanent housing or permanent supportive housing.

– Prevention strategies.
 Continuum of Care (CoC)
Competitive Homeless Assistance
Programs
 Supportive Housing Program (SHP)

 Shelter Plus Care (S+C)

 Section 8 Moderate Rehabilitation Single

Room Occupancy (SRO) Program for
Homeless Individuals
Supportive Housing Program (SHP)
 Provides housing, including housing units and
group quarters.

 Combine supportive services and housing to help

homeless persons to live as independently as
possible.

 Three overall goals:

– Achieve residential stability
– Increase skill levels and/or incomes
– Obtain greater self-determination
 Shelter Plus Care (S+C)
 Provides housing and supportive services on a
long-term basis for homeless persons with
disabilities, and their families.

 Rental assistance for hard-to-serve homeless

persons with disabilities.

 Works in connection with supportive services

funded from sources outside the program.
 Single Room Occupancy Program
 Provides rental assistance for homeless
persons in connection with the moderate
rehabilitation of SRO dwellings.

 SRO housing contains units for occupancy

by one person
 Resources
 Homeless Resource Exchange (HRE):
– http://www.HUDHRE.info

 HUD’s web site:

– http://www.hud.gov/offices/cpd/homeless/index.cfm
– http://www.hud.gov/homeless/
 Other CPD Competitive Programs
 HOPWA Competitive Program
 Self-Help Homeownership Opportunity Program
(SHOP)
 Rural Housing and Economic Development (RHED)
 Brownfields Economic Development Initiative (BEDI)
– Linked to the Section 108 Loan Guarantee program.
 Technical Assistance
– HOME
– CHDO TA
– McKinney-Vento Homeless Assistance Programs HOPWA
When Considering Federal Funding,
Ask Yourself…
 What are the priorities of your community?
 Does your program/project meet those priorities?
 Are you already doing the types of projects
serving the target population sought by the
funding program?
 Does your organization have the capacity and
experience to use and manage the funding?
 Is your organization financially prepared to
manage federal funding and can you meet the
required match?
 The Consolidated Plan
Why Should You Care?

Money!!!

Primarily Benefits Low-income Persons and

Families!

Opportunity for Empowerment!

Get on Your Community’s Radar!

 Why the Consolidated Plan Process
is Important

It is THE process for how your organization

can be regularly and actively involved in
your City, County or State's planning and
funding process.
 Benefits to Getting Involved

 Community Involvement
 Influence
 Funding
 Accountability
 Potential Access to CPD’s Formula
Programs
 Roots of the Con Plan
Comprehensive Housing Affordability
Strategy (CHAS)

– Created in 1990, Title 1 National

Affordable Housing Act; aka Cranston-
Gonzalez Act

– Aim to develop Annual Housing Goals

 The Consolidated Plan
A collaborative process whereby a community
establishes a vision for housing, community and
economic development actions

Purposes
– “Application” for Formula Funding for States
and Localities
– Planning Document
– Performance Reporting
 The Consolidated Plan
 Stakeholders

– HUD
– State and Local Governments
– Community Groups
– Non-Profits
– Private Sector
– Financial Institutions
 The Consolidated Plan
Basics:

 The Three or Five-Year Plan Strategic Plan

 The Annual Action Plan
 The Annual Performance Report
 3 – 5 Year Strategic Plan
 Setting Priority Needs

– Specific Objectives/Performance Measures

– Non-housing Community Development Plan
– Neighborhood Revitalization Strategy Areas
– Continuum of Care Homeless Strategy
– Anti-Poverty Strategy
 Annual Action Plan
 Resources and annual objectives

– Programs, projects, or activities

– Annual numeric goals
– Other relevant actions
– Certifications
 Five Stages of the Consolidated
Plan Process
1. Identifying Needs
2. The “Proposed” Consolidated Plan
3. The “Final” Consolidated Plan
4. Annual Performance Report
5. Substantial Amendments
 Identifying Needs
 The Community Profile
1. Housing, homeless, community
development and special needs assessment
2. Housing market analysis
3. Inventory of public and assisted housing
4. Inventory of homeless facilities/services
5. Barriers to affordable housing
 Proposing the Con Plan
 Setting Priorities
– Activities designed to respond to the
identified needs
– Geographic areas where needs exist
– Indicate how funds identified will be
used to meet needs
– Performance Indicators
 Proposing the Con Plan
 Identifying All Resources That Will Be
Available
– CDBG, HOME, ESG, HOPWA, Public and
Assisted Housing
– State and Local Funds
– Private Funds
 Citizen Participation Plan
 Grantees must provide and encourage
citizen participation.

 Required to have a Plan, but no rules on

when to update it.

 The Development of the plan requires

consultation with public and private sectors.
 The Citizen Participation Plan
 Community Stakeholders

 Access to Information

 Public Hearings
– At least 2 each year, 1 for States
– Accommodations

 Review and Comment

 Technical Assistance for Citizen
Participation

The Citizen Participation Plan must describe

how technical assistance will be provided
to appropriate groups that request
assistance to develop proposals.
 Characteristics of Effective
Citizen Participation
1. Collaboration between community and
faith-based organizations
2. Collaboration between those
Organizations and Local Government
3. Open Discussion of Community Issues
and Needs
4. Short-term and Long-term Planning
5. Marketing and Outreach
 The “Final” Con Plan
 Considers all the comments made during
the citizen participation process

 Must be publicly available.

 HUD approval is necessary

– Due 45 days before the start of the program
year
– HUD has 45 days to approve or disapprove
 The “Final” Con Plan
 Possible Reasons for Disapproval:
– Developed without the required citizen
participation process
– Failing to meet all the required elements of the
regulations
– Inaccurate certifications
– Inconsistency with the purposes of the National
Affordable Housing Act
 Annual Performance Report
 CAPER: Consolidated Annual Performance and
Evaluation Report
 Provides a detailed description of the activities
funded with CPD money during the program year.
– How much money budgeted
– How much money spent
– Location of activities
– What was accomplished
– Who benefited
 Substantial Amendments
 Specify criteria to be used to determine
what constitutes a substantial amendment.

 Describe how citizens will be given

opportunity to comment with length of
comment period and summary of
comments.
 “Consistent” With the
Consolidated Plan
 Law requires that any use of Community
Planning and Development money for
housing activities be “consistent” with the
jurisdiction’s Consolidated Plan.

 What is meant by “Consistent”?

– Need
– Long-range Strategy
– Location
 Roles of Non-Profits in the
Consolidated Plan Process
 Engage in Strategic Planning Process
 Ensure that Low-Income Persons are
Beneficiaries of Program Funds
 Have the needs of communities you serve
be recognized.
 Stay informed of the process, speak up at
public hearings, and provide comments!
 How Do You Get Involved?
 Figure Out if Your Government Must
Prepare a Consolidated Plan

 Annual Process:
– Updated each year with the Annual Action
Plan, and Performance Report
– Go to the Public Hearings and be prepared to
comment
 How Do You Get Involved?
 To whom Do I Speak With?
– Government officials, Housing or Planning department,
HUD Local or Regional Field Office

 What Papers or Information Should I Ask For?

– “Citizen Participation Plan”
– “Long-term Strategic Plan”
– “Annual Action Plan”
– “Consolidated Annual Performance Report” (CAPER)
 Where Can You Start?
 Let your state or locality know you are
interested
 Let them know you want to be involved
 Let them know you want to be kept
informed
 Ask to be placed on their mailing list
 Know you have a right to be involved
 Be persistent
 Information Sources

 HUD Consolidated Plan website:

– http://www.hud.gov/offices/cpd/about/conplan/

 Your Local HUD Office

Housing Development Organizations:

Special Considerations
 CBDO
– Community Based Development Organization
– CDBG

 CHDO
– Community Housing Development Organization
– HOME
 Community Based Development
Organizations (CBDO)
 CDBG Program
 A CBDO must undertake one of these three
activities:

1. Neighborhood revitalization
2. Community economic development
3. Energy conservation
 Benefit to Being a CBDO
 Access to conducting a wider variety of
neighborhood revitalization activities > more
flexibility.
 Status allows spending of CDBG funds on certain
types of projects that are not ordinarily eligible for
funding
– e.g. new housing construction

However:
Distribution and use of funding for
CBDO’s is determined by the grantee.
 CBDO Requirements
 The Organization Must:
 Be organized under state/local law for specific
community development activities
 Operate in a specific geographic area within a
grantee’s jurisdiction
 Have a primary focus the improvement of
economic/physical/social aspect of service area,
particularly for low/mod persons
 Have a governing board of at least 51%
low/mod representatives.
 CBDO GOVERNING BOARD

 To meet the 51% low/mod representation:

 Residents of service area
 Owners/officers of entities located in service area OR
 Representatives of low/mod groups in service area
 Less than 1/3 of board may be:
 Elected or appointed public officials, or
 Employees of the grantee
 Governing body must be nominated by general
membership.
 Other CBDO Requirements
 If CBDO is a for-profit entity, profits to
shareholders/members must be incidental to
operations

 Organizations that could easily qualify:

 Single-neighborhood –based CHDOs
automatically meet CBDO requirements.
 Other CHDO’s must qualify separately.
 Certain SBA organizations
Community Housing Development Organization
CHDO
 HOME Program funds

 The Bottom Line:

 The project must involve development activity
 The CHDO must own, develop or sponsor the
project
 CHDO has effective project control.
 Use of HOME Funds
 Eligible uses of CHDO set-aside funds:

 Develop affordable housing for renters or homebuyers through

rehabilitation or new construction

 Ineligible uses of set-aside funds:

 Provision of tenant-based rental assistance

 Rehabilitation for owner-occupants
 Provision of downpayment/closing costs to homebuyers unless
CHDO developed unit
 Any project where CHDO role does not meet own, develop or
sponsor definition
 Extra Benefits as a CHDO
 At least 15% of HOME allocation set-aside for
CHDOs
 Up to 10% of the CHDO set-aside may be provided for
site control or predevelopment loans

 Optional: Up to 5% of HOME allocation for

CHDO operating expenses (salaries, rent, admin,
etc.)

 Technical Assistance
 CHDO Qualifying Criteria
 CHDOs must meet requirements pertaining
to their:

 Legal status
 Organizational structure
 Capacity and experience
 Legal Status to Be a CHDO
 To be eligible, an organization must:

 Be organized under state and local law

 Have as its purpose to provide decent and
affordable housing to low-income persons
 Provide no individual benefit
 Have a clearly defined service area
 Have IRS tax exempt status
 Organizational Structure
 CHDO board must have:
 At least 1/3 of board must represent the low-income
community
 No more than 1/3 of board may represent the public
sector (elected/appointed officials, and employees)
 Low-income representatives are:
 Residents of low-income neighborhoods
 Low-income persons
 Elected representatives of low-income neighborhood
organizations
 Capacity and Experience
 Organization must:

 Have at least ONE YEAR of experience serving

the community
 Demonstrate staff capacity to carry out planned
activities (can be contract with consultant who
has experience and will train CHDO staff to
carry out future projects independently)
 Have financial accountability standards

http://www.hud.gov/offices/cpd/affordablehousing/programs/home/to
pical/chdo.cfm