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Home My WebLink About069 03 <L ~ ED c.. -;ç I J - 1-3 -o-? ~y-- ~ STATE OF WASHINGTON County of Jefferson In the Matter of Authorizing Application for a Community Development Block Grant (CDBG) General Purpose Grant Certifications of Compliance } } } } 69-03 RESOLUTION NO. . WHEREAS, Jefferson County is applying to the Washington State Department of Community, Trade and Economic Development for funding assistance; WHEREAS, it is necessary that certain conditions be met as part of the application requirements; WHEREAS, David Goldsmith, County Administrator is authorized to submit this application to the State of Washington on behalf of Jefferson County; NOW, THEREFORE, be it resolved that Jefferson County authorizes submission ofthis application to the Washington State Department of Community, Trade and Economic Development to request $250,000 to the Olympic Microloan Fund (OMF), and certifies that, if funded, it: Will comply with applicable provisions of Title I of the Housing and Community Development Act of 1974, as amended, and other applicable state and federal laws; Has provided opportunities for citizen participation comparable to the Washington State's requirements (those described in Section 104(a)(2)(3) ofthe Housing and Community Development Act of 1974, as amended); has complied with all public hearing requirements and provided citizens, especially low- and moderate-income persons, with reasonable advance notice of and the opportunity to present their views during the assessment of community development and housing needs, during the review of available funding and eligible activities, and on the proposed activities; Has provided technical assistance to citizens and groups representative of low- and moderate-income persons that request assistance in developing proposals; Will provide opportunities for citizens to review and comment on proposed changes in the funded project and program performance; Will not use assessments against properties owned and occupied by low- and moderate- income persons or charge user fees to recover the capital costs ofCDBG-funded public improvements from low- and moderate-income owner-occupants; Resolution No.69-03 re: CDBG Olympic Microloan Fund Page: 2 Will establish a plan to minimize displacement as a result of activities assisted with CDBG funds; and assist persons actually displaced as a result of such activities, as provided in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended; Will conduct and administer its program in conformance with Title VI of the Civil Rights Act of 1964 and the Fair Housing Act, and will affirmatively further fair housing (Title VIII of the Civil Rights Act of 1968); and has adopted (or will adopt) and enforce a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and has adopted (or will adopt) and implement a policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location that is the subject of such nonviolent civil rights demonstration within its jurisdiction, in accordance with Section 104(1) of the Title I of the Housing and Community Development Act or 1974, as amended; and Will provide, upon request, and prior to any obligation of funds being made, a complete and accurate CDBG Federal Funds Disclosure Report detailing the required applicant/grantee information and, as appropriate, other government assistance provided or applied for, interested parties and expected sources, and uses of funds. Jefferson County designates David Goldsmith, County Administrator as the authorized Chief Administrative Official and the authorized representative to act in all official matters in connection with this application and Jefferson County's participation in the State of Washington CDBG Program. fh Dated this /3 day of November, 2003. ,.."..<0>' _ø/ '" f" " .,( , /,,'.1.... ~_..,. ~ 1~:·...5 of · · 1~:1 0 '\ ,.: "f.' ""4J f. " " SE~.~~ }.:J~\.);j \, .i"~· -;:,.", -:. '_.- "",' ~. - ... ATTE§l;....~·" "j r¡... ,-'.,/' ~r1{¡¡¡#~;·~ Julie Matthes v U Deputy Clerk of the Board JEFFERSON COUNTY BOARD OF COMMISSIONERS tA~ ~ Dan Titterness, Chairm ~tingfOrd '~~í Ju i Mackey, Member ¡ Please publish one (1) time: Wednesday, October 29,2003 Bill: Jefferson County Commissioners P.O. Box 1220 Port Townsend, WA 98368 NOTICE IS HEREBY GIVEN that a public hearing will be held by the Jefferson County Board of Commissioners on Thursday, November 13, 2003 at 10:30 a.m. at the Pope Marine Building. The purpose of the public hearing is to review community development and housing needs, inform citizens of the availability of funds and eligible uses of the state Community Development Block Grant (CDBG), and receive comments on proposed activities, particularly from low- and moderate-income persons and persons residing in the Jefferson County area. Up to $1,000,000 may be available to Jefferson County on a statewide competitive basis to fund public facility, housing, economic development, or community facility projects that principally benefit low- and moderate-income persons. The draft application for the Olympic Microloan Fund proposal will be available for review at the Jefferson County Commissioners Office and written comments may also be submitted to the Jefferson County Commissioners Office, 1820 Jefferson Street/P.O. Box 1220, Port Townsend, WA 98368. The Pope Marine Building is handicap accessible. Arrangements to reasonably accommodate special needs, including handicap accessible or interpreter, will be made upon receiving twenty-four (24) hour advance notices. Contact: Jefferson County Commissioners Office at (360) 385-9100. Dan T emess, Chair 10 /;;1.7/0 ~ Jefferson County Board of Commissioners CDSG 2004 General Purpose Grant Application NEED STATEMENT (25 Points) 1. What is the problem? Define the area affected. The Olympic Microloan Fund serves Wahkiakum, Pacific, Grays Harbor, Mason, Jefferson, Clallam, Island and San Juan Counties, and Thurston County outside of Olympia.The nine counties participating in the Olympic Microloan Fund program have worked valiantly to diversify and rebuild their economies in the wake of the rapid decline of the timber and fishing industries that once flourished and enriched the region. Where there was once an abundance of family wage jobs in logging and fishing, in many areas they have given way to lower paying seasonal jobs in the tourist industry. At the same time, in much of this territory, particularly Jefferson, Island, San Juan And Clallam Counties, property values have shot up as retirees from Seattle or yuppies buying second homes snap up real estate. The result is an increasingly stratified society with the rich newcomers at the top and the longtime residents at the bottom, unable to afford property or raise a family without each adult working multiple jobs. The joke is "How can you tell someone is from Port Townsend? (or Friday Harbor or Whidbey Island). The answer? "Because they have two jobs and a small business on the side." San Juan County now has the greatest disparity between rich and poor of any county in the country! Additional funding for the highly successful Olympic Microloan Fund (OM F) will enable the program to continue to bring much needed economic diversity to these distressed counties. The program fosters the creation or survival of a broad spectrum of businesses ranging from small manufacturing (Bay City Sausage in Grays Harbor County & Crown Bookcase in Clallam County) to services (La Bella Day Spa in Jefferson County & Peninsula Laundry in Pacific County) Equally important, however, the program helps bring a sense of pride and self-worth back into these communities by enabling low-income entrepreneurs to create jobs for themselves and their neighbors. We have preserved or created 11 jobs with the 2000 grant and expect to create or preserve ?? jobs in the nextperformanœ period aftbemiødo8nfund".1U1M. 2. Who is affected? Tell us the number of people affected, how they are affected, and how often they are affected. 1. How are low- and moderate-income people affected? 2. What is the extent of the need? 3. What hardships are people experiencing? 4. Are there regulatory orders to address this need? Complete the Contact List, page 68. Include the name, phone number, and e-mail address of the appropriate contact from any agency that has issued a compliance order related to your project. What are the consequences if these orders are not addressed? 5. Is this project a priority for the community and how was that decided? Tho OWf_.yod rauch eomtD1mity support since .~_"I_" boøøwtnbav....8tíN ~ supportivearticlolia,Þal""''-'.'''.'1':b'ê local s.u.... ~ Catten have beoa..-to ...~~'.. local bankers have also been very enthusiastic. A.IdIouP die publiç~""''' the pro¡ram have not generally been wen attended.. thosewåo 1Jaw...... ....... ~ by tile OMF propun .wtsto date. In GrayaHarDor Couaty, .....a.. cowmrwnity tax-payer activist eom.mended theprogœn at ita c)osiIIg............ we1l-rua. efticiCD&,aad Jûghly coøt effective. 6. Explain what will happen if nothing is done. PUBUC HEARING HANDOUT For More Information Dwight Edwards CDBG Project Manager 360.725.3011 Dwighte@cted.wa.gov Bill Prentice CDBG Project Manager 360.725.3015 ,~_iIIp@cted.wa.gov ...n Rieblj CDBG Program Manager 360.725.3017 Danr@cted.wa.gov Sharon Robinson CDBG Project Manager 360.725.3010 Sharonr@cted.wa.gov Janice Roderick CDBG Project Manager 360.725.3013 Janicer@cted.wa.gov Kaaren Roe CDBG Project Manager 360.725.3018 Kaarenr@cted.wa.gov Community Deve'lopment Block Grant Local Government Division Introduction The Washington State Community Development Block Grant (CDBG) Program provides funds on a competitive basis for local housing, public and community facilities, economic development, and planning projects that principally benefit low- and moderate-income households. Eligible applicants are incorporated Washington State communities with populations less than 50,000 and counties with populationsiess than 200,000 that do not participate as members of the U.S. Housing and Urban Development's (HUD) Urban County Entitlement Consortiums. ' Approximately $18 million in federal funding has been historically distributed on an annual basis through the following proposed grant funds: Funds Available · General Purpose Grant $8,000,000 Contact: Bill Prentice Annual grant cycle during which eligible applicants may request up to $1,000,000 per application for local housing, public facilities, community facilities, or economic development/microenterprise projects principally benefiting low- and moderate-income persons. The application due date for the 2004 grant cycle is November 20, 2003, with awards announced rate February 2004. · Community Investment Fund Grant $4,500,000 Contact: Janice Roderick CDBG Community Investment Fund Program provides eligible communities the opportunity to access technical and financial assistance throughout the year for priority community and economic development projects. Technical assistance is provided through the Washington Community Economic Revitalization Team (V'JA-CERT) scoping process and on-site visits to the community. Potential awards are coordinated with the Department of Community, Trade and Economic Development's Resource Team to address priority projects identified through the W A-CERT or Rural Enterprise Community Initiatives. 38 PUBLIC HEARING HANDOUT t> Plannina-OnlvGrant $"500,000 Contact: Janice Roderick Planning-Only Grants are provided to eligible communities on a funds available basis for a wide range of planning activities that address public health and safety issues; respond to state and federal mandates; improve essential services to low- and moderate-income individuals; or, complete a Q@Cessary step within a broader community development strategy. Grants of up to $M,OOO are available. Consortium of eligible applicants may request up to $4ê,000. These maximums may be increased in 2004. 'S'D · Imminent Threat Grant $ 400,000 Contact: Bill Prentice Funds to address unique emergencies posing a serious and immediate threat to public health and safety on a fund availability basis. Funds are also available for supplemental grants to existing contracts. --~-.~..... · Housina Enhancement Grant $1,185,000 Contact: Dwight Edwards Companion funds to support priority applications submitted to the Washington State Housing Trust Fund. · Housina Rehabilitati.on Grant $1,000,000 Contact:' Dwight Edwards Funds to support local housing rehabilitation activities. Up to $500,000 can be awarded annually. · Public Services Grant $1,775,000 Contact: Kaaren Roe Grants made available through counties to 15 community action agencies serving non- entitlement areas for activities serving low- and moderate-income people. Funding provided by formula and administration coordinated with the state Community Services Block Grant Program. · Administrative One Percent Set-aside ,for Teehnical Assistance One percent of the state's annual allocation of CDBG funding is used to provide technical assistance to CDBG eligible jurisdictions. · Business Loan Portfolio Contact: Dan Riebli Four types of block grant lending instruments are currently used in Washington to assist business: - CDBG Float-Funded Activity Program - Loans from the Rural Washington Loan Fund -Hue Section 1 08 Guarantee Loans - Regional Microenterprise Development Grants Eligibility Guidelines · Eligible applicants are cities and towns with less than 50,000 in population or counties with Jess than 200,000 in population that are non-entitlement jurisdictions or are not participants in a HUD Urban County Entitlement Consortium. · Projects must principally benefit low- and moderate-income persons. Low- and moderate-income is defined as 80 percent of county median income. ( · Applicants may submit one request for each annual funding cycle. 39 PUBLIC HEARING HANDOUT Federal Citizen Participation Requirements for Local Government Applicants to the State CCBG Program Federal ReQulations 24 CFR 570.486 (a) (a) Citizen participation requirements of a unit of general local government. Each unit of general local government shall meet the following requirements as required by the state at Sec. 91.115( e) of this title. (1) Provide for and encourage citizen participation, particularly by low and moderate income persons who reside in slum or blighted areas and areas in which CDSG funds are proposed to be used; (2) Ensure that citizens will be given reasonable and timely access to local meetings, information, and records relating to the unit of local government's proposed and actual use of CDBG funds; (3) Furnish citizens information, including but not limited to: . (i) The amount of CDBG funds expected to be made available for the current fiscal year , (including the grant and anticipated program income); (ii) The range of activities that may be undertaken with the CDBG funds; (iii) The estimated amount of the CDBG funds proposed to be used for activities that will meet the national objective of benefit to low and moderate income persons; and (iv) The proposed CDBG activities likely to result in displacement and the unit of general local government's anti-displacement and relocation plans required under Sec. 570.488. (4) Provide technical assistance to groups representative of persons of low and moderate income that request assistance in developing proposals in accordance with the procedures developed by the state. Such assistance need not include providing funds to such groups; (5) Provide for a minimum of two public hearings, each at a different stage of the program, for the purpose of obtaining citizens' views and responding to proposals and questions. Together the hearings must cover community development and housing needs, development of proposed activities and a review of program performance. The public hearings to cover community development and housing needs must be held before submission of an application to the state. There must be reasonable notice of the hearings and they must be held at times and locations convenient to potential or actual beneficiaries, with accommodations for the handicapped. Public hearings shall be conducted in a manner to meet the needs of non-English speaking residents where a significant number of non-English speaking residents can reasonably be expected to participate; (6) Provide citizens with reasonable advance notice of, and opportunity to commeníon, proposed' activities in an application to the state and, f~r grants already made, activities which,are proposed to be added, deleted or substantially changed from the unit of general local government's application to the state. Substantially changed means changes made in terms of purpose, scope, location or beneficiaries as defined by criteria established by the state. (7) Provide citizens the address, phone number, and times for submitting complaints and grievances, and provide timely written answers to written complaints and grievances, within 15 working days where practicable. 40 SECTION I: PART A. CCSG GENERAL PROGRAM INFORMATION -_.- What is the CCSG Program? ./ The State of Washington Community Development Block Grant (CDBG) Program is a flexible, competitive source of federal funding for a broad range of community development activities. A fact sheet listing all CDBG funds is provided on page 38. ./ All projects must principally benefit low- and moderate-income (lMI) persons. (See Appendix B, 2003 Income Limits.) , ./ General Purpose Grant funding is available for five categories of projects: housing, public facilities, community facilities, economic development, and comprehensive. ./ All local projects must meet at least one of three national objectives of the program (Title 1, Housing and Community Development Act of 1974, as amended) which are,to: · principally benefit persons of low- and moderate-income; · prevent or eliminate slums or blight; or · meet urgent community development needs which pose a serious and immediate threat to public health or safety. ./ Applicants may request up to $1,000,000* in grant funds during a single, annual General Purpose Grant competition to address eligible community development needs. * Housing Rehabilitation projects ,are limited to $500,000 per grant. How much money is available for Fiscal Year 2004? ./ The State of Washington CDSG Program expects to allocate approximately $8 million of its FY 2004 federal funding for General Purpose Grants, to be distributed on a competitive basis to highly rated projects. When will the money be available If my project Is selected? ./ The CDSG Program will announce the 2004 General Purpose Grant awards by late February 2004. Funds'will be made available as soon as contracting and the environmental release of funds process is complete. Inmost cases contracts are fully executed within 90 days from award announcements. -~_. 1 Who can apply for CDBG? ./ Eligible applicants for CDBG funds are cities and towns with less than 50,000 people or counties with populations less than 200,000 provided that the cities, towns, and counties do not participate in HUD Urban county Consortiums. (See Section I, Part B for a list of eligible and ineligible jurisdictions.) ./ Indian tribes and special' purpose organizations, such as public housing authorities, port districts, water and sewer districts, comrnunity action agencies and economic development councils are not eligible to apply directly to the CDBGProgram for funding. These projects maybe eligible under CDBG if: · A ,project will serve both an eligible local government's citizens and tribal members. If the boundaries of a project's service area involves both the local go"ernmentand a tribal jurisdiction, the local government may apply for state CDBG funding on behalf of and in coordination with the Indian tribe. · An eligible local government chooses to involve a special purpose organization in the operation of a project funded under the CDBG program. What type of projects can be funded? ./ The following list identifies the most common. types of eligi,ble activities. · Housing · Most new housing construction projects are not CDBG eligible. Contact CDBG program' staff when considering new housing projects. · Public Facilities · Community Facilities · Economic Development · Comprehensive · Other Eligible Activities · Public Services · Local Match · Administration · Property Acquisition · Relocation · Barrier Removal Part C of this section (on page 11) contains a short synopsis on, each of the types of eligible activities as well as a complete list of eligible and ineligible activities excerpted from Title I of the Housing and Community Development Act of 1974, as amended. All projects must plan to, provide the intended benefits for a minimum of 10 years. Verification of project eligibility with CDBGprogram staff is strongly advised before beginning an application. 2 What types of projects cannot be funded with CDSG funds? _w~_ ® New Housina Construction - CDBG funds generally may not be used to construct new housing units. In certain circumstances, with HUD's approval, CDBG funds may be used for the substantial reconstruction of housing owned and occupied by low- and moderate-income persons. Activities in support of new housing construction may also be eligible under certain conditions. Communities considering applications for these, activities should consult with CDBG Program staff before proceeding. ® Reaular Government Operations - CDBG funds may not be used to fund the ongoing responsibilities of general local government. ® Maintenance and Operation - Maintenance and operation expenses of public or community facilities are not eligible, with the exception of an eligible public service activity, ' ® Eauipment - The purchase of motor vehicles, equipment, or furnishings not permanently attached to a building is ineligible except when necessary as part of an eligible public service or for fire protection. Park equipment such as bleachers or picnic tables purchased with CDBG,funds must be perman~ntly affixed. ® Government Buildinas - Government buildings such as courthouses, city halls, county administrative buildings, and other buildings used prèdominantly for the general conduct of government are not eligible for CDBG assistance except for the removal of architectural barriers that deny access to the disabled. ® Income Pavments - CDBG funds may not be used for income payments such as payment for income maintenance, housing allowances, down payments, or mortgage subsidies. ' ® Political Activities - CDBG funds may not be used to finance the use of facilities or equipment for political purposes or to. engage in other partisan political activities. What special requirements and funding limitations apply to the application process? .¡' Before an application can be reviewed and rated, it will be screened to determine whether or not it conforms to the following requirements and funding limitations. Actions necessary to comply with these special requirements'are detailed in the application instructions. 3 · Resolution with Certifications, of Compliance The ~pplicant'slocallegislative body must pass a resolution authorizing the chi~f administrative official to submit the CDSa appiication to the Department of Community, Trade and Economic Development (CTED) and certifying compliance with state and federal laws and specific program requirements. A sample 'resolution. can be found on page 26. The resolution must be signed by the authorized chief administrative official, and a signed copy must be included with the application. · Citizen Participation Reauirements Title I of the Housing and Community Development Act of 1974, as amended, requires each applicanUo identify its community development and housing needs, including the needs of low- and moderate-income persons, through a documented citizen participation process. To meet the minimum requirements of this act, the jurisdiction must publish a public hearing notice and. conduct a public hearing as described on page 31. · Principal Benefit to Low- and Moderate-Income Persons A CDSG General Purpose Grant proposal must principally benefitlow-and moderate-income households. "Principal benefit" is defined as at least 51 percent benefit to low- and moderate-income households. An application which fails to adequately demonstrate the manner in which the proposed activities will provide such benefit win not advance to the rating and selection stage. See the Low- and Moderate-Income Requirements for options and guidance for calculating this percent of benefit on page 42. · Maximum Averaae CDBG Investment Per Household Benefited Reauirement Each application for CDBG General Purpose Grant funding must be structured so the CDBG investment per household benefited does not exceed the following limits: Maximum AverageCDBG Investment Per Household $10,000 $10,000 $10,000 $25,000* Above amounts applied as applicable *Up to $35,000 per unit for projects that include lead-based paint rnitigation activities. Project Category Community Faciliti~s Public Facilities' Economic Development Housing C,omprehensive 4 -"-- · Local Financial Match No local financial match is required; however, local contribution, both financial and in-kind, is highly favored during rating and selection. · Maximum Number of Applications Eligible jurisdictions may submit only one' application for the 2004 General Purpose Grant cycle. It is possible for an eligible jurisdiction to apply for COSG General Purpose Grant, and other COSG Program funds within the same program year. · Flood Plain Insurance The applicant must provide evidence of enrollment in the National Flood Plain Insurance Program if the project will affect, a flood plain. What happens to my application when it arrives at CTED? ./ The selection process for COSG General Purpose Grant proposals consists of three stages: threshold review, rating and selection and announcing the recipients. ' Threshold Review (Stage 1) Threshold review is conducted by COSG Program staff to determine if each application meets eligibility and minimum application requirements. This stage typically takes about two weeks. When conducting the threshold review, Program staff may contact the applicant to resolve threshold issues. 'Althouah no new information will be reauested or accepted. we advise applicants to desianate someone who is knowledaeable about the proiect to be, available durina the review period. No points are awarded during this stage; however, applications failing to meet minimum threshold requirements will not advance to the rating, and selection stage. All threshold requirements are listed' in the Application Checklist, page 22. Ratina and Selection (Stage2) The rating and selection process is an evaluation of each application, using criteria described in Section IV: Instructions for Application Narrative. Applications are evaluated by project category and assigned points in five separate groups which correspond to the five primary project categories: housing, economic development, community facilities, public facilities, and comprehensive. If the state receives an application containing unrelated activities in one or more project categories, the activities will be rated separately 5 in appropriate project categories and the total score for the application will be the sum of the proportionally weighted points awarded to each project category. Typically, applications for unrelated activities do not score well. CTED reserves the right to contact informed third parties including local, state, and federal agencies and to make site visits to assist in the evaluation process. An applicant must receive at least 65 points in order to receive funding consideration. Applications receiving scores above the minimum 65 points will be funded in rank order until available funds are obligated. Applications' will be evaluated and assigned points based on the following: Need Statement 25 Points Capacity Statement 25 Points Readiness Statement , 25 Points Results Statement 25 points 100 points Recipients Announced (Stage 3) When the rating process is complete, applicant jurisdictions will be listed in rank order according to assigned scores. Funding recommendations will be made to CTED management for ranked projects with requests totaling the amount of funds available for 2004 General Purpose Grants. After receiving management approval, legislators will be notified and all applicants will receive verbal and written notice of the rating process results. Federal disclosure reports will be requested from applicants prior to funds being obligated. It is expected that 2004 CDBG General Purpose Grant recipients will be announced in late February 2004. Funds will be available as soon as contracting and the environmental review requirements éuecomplete. How does the actual contracting process work once grants are announced? ./ Following notification of project selection, a grant contract is negotiated and prepared for each funded jurisdiction. During the contract negotiation period, any questions regarding proposed activities, additional resources, administration costs, and other aspects of the project identified during the rating process will be discussed and resolved. Community surveys will be reviewed during this period to verify the number and percentage of low- and moderate-income beneficiaries. ./ Grants consisting of less than the amountoriginally requested may be awarded at CTED's discretion ,based on discussions betweenCDBG Program staff and the jurisdiction. The preliminary notice of project selection does not imply 6 approval of all activities or all costs proposed in the selected application. The grant contract, once negotiated, is the legal document which governs the administration of the grant and includes: · The amount of CDBG funds provided; · A detailed budget for implementation of project activities and the scope of work to be completed; · The schedule for implementation of project activities; · The general and special terms and conditions associated with the grant; and · The application, as approved. Delays in completing the execution of a final contract of ninety days or more from the date of the award letter, due to the project's readiness to proceed, may lead to the rescission of this award and'an invitation to apply during the next CDBG General Purpose Grant application cycle. No CDBG funds can be released until the grant contract has been fully executed, the environmental review has been completed, and CDBG has issued a Release of Funds letter. 7 · , I USE THIS FORM AS A MODEL ONL Y(SEE.JNSTRUCTIONSr .1 SECTIQNUI: PARTB /''---'" SAMPLE CDBGGENERALPURPOS!:/GAANT AESOLutJON WITH' CERTIFICATION$'OF ·COMPLtANCE WHEREAS, (name 'Of city" town, ,'or county) 'is applying tothéstðtèDepartmøht<Of Community, Trade and Economic Development 'for funding assistance; WHEREAS, it is necessary that certain' conditions be."metas part of the ,application requirEjments; ,~ WHEREAS, (harneOfchiefaâmi~istråtivøoffi~i~lartdti11~)iš.. authori~~d to submit this application to the State of Washington on behalf of (name of city, town;'orcounty); NOW,.., THEREFORE,béitresolVéd'that,the, (n~rrt~?fcity,town, 'orcoonty)' authorIzes submission8fthis ,appUcªti9ntothe,state D~partrTlentof~9mr11~nity, Trade and Economic Development to,reqoest ,.,~(amount of funding requested) to {project description), and certifies that,iffurídéd;it: Will comply with applicable provisions' of Title I of,· the ", Housing and "Community Development Act of 1974, as amended, and other applicable state and federal laws; Has provided opportunities for citizen participation comparable 'to the state's requirements (those described in Section 1 04(a)(2)(3) of the Housing: and CommUnity Development Act of 1974, as ªmended); has complied with all public. hearing requirements and provided citizens, especially low- and moderate-income persons, with reasonable advance notice of and the opportunity to present their views during the assessment of community development and housing needs, during the ,review of available funding and eligible activities, and on the proposed activities; Has provided technical assistance to citizens and' groups represerttativeof low- and moderate-income persons that request assistance in,developing proposals;' Will provide opportunities for citizens to review and comment on proposed changes in the funded project and program performance; Will not use assessments against properties owned and occupied by low- and moderate-income persons or charge user fees to recoverthe capital costs of CDBG- funded public' improvements from low-and moderate-income owner-occupants; Will establish a plan to minimize displacement as a'. result, of activities assišted with CDSG funds; and assist persons actually displaced as a result of such activities; as provided in the Uniform Relocation Assistance and, Real Property Acquisition Policies Act of 1970, as amended; ~ 26 A ( I USE THIS FORM AS A MODEL ONL Y(SEEINSTRUCTIONS) '"., Will conduct and administer its program incanformance with Title VI of the Civil Rights Act of 1964 and the Fair Housing Act, and will affirmatively further fair housing (Title VIII of the Civil Rights Act of 1968); and haSádopted (or will adopt) and enforce a policy '~ prohibiting. the use of exçE:):;siy~ fcucebylaw, enfQrcørJ)entagencies within its jurisdictian against , anyil'l~i,..."id~~l~<iE:);1ga~~~ienq;1violel'lf}èivJI{ights<demo9~t(ations; and has adopted (or will adopt), and' implement a policy of' enforCing applicable state and local laws against physically barring entrance to or exit from a facility or location that is the suþj~çt'Qf$LJChp()q¥iolentcivitJi9.ht:;d.E:)mon$tra,tion within it:; jurisdiction, in. ac§ordance with Section 104(lLC)fJhØT'itløJ, ,of the tlpusing~n~.,ÇQmmunity ,Deyelopment f'ctor 1974, as amended; and Will provide, uponr~quest, and prior foànyobllgat¡Öhôffundsbeing maqø,açornplete and accurateCDBG Federal Funds Disclosure Report detailing the required applicant,'~rante~,infC)rmqtiqn,a,l)q, "~s~ppropriqte",,, Q!her ..goyernrpent. ". a,sslstance providec:torªpplie,dfor,in.terestedP~iftie$andexpeçteq ,.~Qurces, ,a,nduses of funds. (NamE:)C)f city,t()~n,orç()Unty)dE:)Sign9--tes(na,lJ1e of City., rJ)a,nqger ,cQuntya,dministrator, m~YQr)as.,thE:)auth()rizE:)d<ÇhiE:)f. Adrt)ipic:;tratjye,..Offi§iarandtf1e~LJthod;z:ed .repre~entative to act in aU off,içi.ª"II11~tter:;ip çQnnectjonwith this~ppJ,tca,tiQn apq (na,me pf city,t,owllor county)'s participàtionin 'the State ,of Washington ÇPBG Progrqrn. . Signature, Date Nam Title ,~ Attested Date '--:../ 27 SECTION I: PART C. OVERVIEW OF ELIGIBLE AND INELIGIBLE ACTIVITIES 1. Overview A synopsis for each of the general types of CDBG eligible activities is provided below: · Housing - CDBG funds may be used to rehabilitate publicly, or privately-owned single- or multi-family housing units, commercial buildings, and other non-residential structures. Substantial housing rehabilitation, lead-based paint mitigation, minor home repairs, energy conservation improvements and removal of architectural barriers are eligible activities, as is the cost of connecting residential structures to available water and 'sewer lines. Rehabilitation assistance may be provided in the form of grants, loans, loan guarantees, or interest supplements. · Projects to provide permanent low-cost housing opportunities for low- and moderate- income families such as shared housing, housing cooperatives, mobile home parks, manufactured housing, and self-help housing programs may also be assisted with CDBG. Activities in support of new housing construction, such as land acquisition and oft-site improvements, are eligible. New construction of the housing itself and on-site improvements are generally ineligible. With HUD approval, CDSG funds may be used to fund new housing construction when such activities are undertaken by eligible (1) neighborhood-based nonprofit organizations, (2) small business investment companies or (3) local development .corporations. (Prospective applicants are advised to, contact CCBG Program-staff when considering new housing construction.) , G Economic Development -CDBG funds may be used for acquisition, construction, or reconstruction of commercial or industrial buildings; cooperative or employee stock ownership programs; special training and accessibility modifications designed to increase employment opportunities for disabled persons; downtown revitalization; and assistance to private for-profit entities ,such as grants, loans, loan guarantees, interest supplements, or technical' assistance for implementing projects. Economic development activities may be implemented by private for-profit entities when the project will create or retain permanent jobs primarily for low- and moderate-income people or when the business provides services primarily to residents of an area with a majority of low- and moderate- income persons, provided the need for public funds is clearlv balanced bv the extent of public benefit received. ' . The economic development category also includes grants for revolving loan funds. Applications for revolving loan fund grants must demonstrate a need for loan capital assistance, and/or loan packaging assistance, beyond what is currently provided by existing programs, such as the Rural Washington LOÆ:m Fund and the Community Development Finance Program. CTED encourages applications that clearly demonstrate a public benefit. Fòr General Purpose Grants, public benefit is defined as the creation or retention of at least one full-time equivalent (FTE) permanent job per $1 0,000 of CDBG General Purpose Grant funds used. Unless a specific business (or businesses) is identified in the application as a confirmed, eligible participant, the overall need for this type of assistance must have been documented as meeting the public benefit criteria. 11 · Communitv Facilities - CDBG funds may be used for acquisition, design, construction, or rehabilitation of community facilities to serve low- and moderate-income youth, elderly, or other low- and moderate-income groups with special needs. Community facility project$ must plan to provide the intended benefit for at least 10 years. · CDSG funds may also be used to réhabilitatepublicly-owned, historic properties which are sites or buildings listed, or eligible to be listed, in the Natiònal Register of Historic Places or in state or local inventories. Privately-owned historic properties may also be rehabilitated. · Eligible parks and recreation projects include acquisition, design, site preparation, drainage, construction, and rehabilitation of parks and recreation facilities. Acquisition of land for open space is also eligible. · Public Facilities - CDBG funds maybe used to design, construct, or reconstruct water and sewer systems, flood and drainage facilities, solid waste disposal facilities, streets, and, sidewalks. Public'facilities projects must serve existing low- and moderate-income neighborhoods arid communities. Low- and moderate-income property owners cannot be assessed or charged a fee to recover the capital costs of any CDBG-funded public facility. . · This category also includes acquisition, design, construction, or rehabilitation of fire protection facilities, and purchase of fire protection equipment. · Comprehensive - A comprehensive project includes activities listed in at least two of the other categories. For example, neighborhood revitalization by improving streets, sewer, water, and housing, is considered comprehensive. These activities must be related and coordinated' to achieve more results than would be possible when addressed individually. · Other Eliaible Activities-The following activities are eligible, ,and depending on the context, may qualify as elements of any of the above project categories: · Public Services - CD6G funds may be used to support or provide social and health services ,such as emergency services, nutrition, transportation, counseling, employment, crime prevention, education, child care. energy conservation, and health/dental care programs. $150,000 has been made available for public service activities which support the larger project. However, CDBG generally cannot fund public service projects which have beenfunded, with ,local or state funds within the previous calendar year. · Local Match -CDBG' funds may be used for the non-federal share required by other federal or state grant programs used to supportCDBG-eligible activities. · Relocation-CDB.Gfundsmay be used for relocation payments and assistance to permanently or temporarily displaced' individuals, families, or businesses. All CDSG proposals that may cause displacement must include relocation, assistance' in the project plan and budget. 12 _._.~-~' 2. Complete List Of Eligible And Ineligible Activities Title 1 of the Housing and Community Development Act of 1974, as amended through 1992 is the congressionally adopted statute from which most of the CDBG Program regulations are developed. Section 105(a) identifyil')g eligible activities is reproduced, in its entirety, below: ELIGIBLE ACTIVITIES Sec. 105 (a) Activities assisted under this title may include only: (1) the acquisition of real property (including air rights, water rights, and other interests therein) which is (A) blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed from the standpoint of sound community development and growth; (8) appropriate for rehabilitation or conservation activities; (C) appropriate for the preservation or restoration of historical sites, the beautification of urban land, the conservation of open spaces, natural resources, and scenic areas, the provision of recreational opportunities, or the guidance of urban development; (D) to be used for the provision of public works, facilities, and improvements,eligible for assistance under this title; or (E) to be used for other public purposes; (2) the acquisition, construction; reconstruction, or installation (including design features and improvements with respect to such construction, reconstruction, or installation that promote energy ,efficiency) of public works, facilities (except for buildings for the general conduct of government), and site or other improvements; (3) code enforcement in deteriorated or deteriorating areas in which such enforcement, together with 'public or private improvements or services, to be provided, may be expected to arrest the decline of the area; (4) clearance, demolition, removal, and rehabilitation (including rehabilitation which promotes energy efficiency) of buildings and improvements (including interim assistance, and financing public or private acquisition for rehabilitation, and rehabilitation of privately owned properties and including the renovation of closed school buildings); (5) special projects directed to the removal of material 'and architectural barriers which restrict the mobility and accessibility of elderly and'handicapped persons; (6) payments to housing owners for losses of rental income incurred in holding for temporary periods housing units to be utilized for the relocation of individuals and families displaced by activities under this title; (7) disposition (through sale, lease, donation or otherwise) of any real property acquired pursuant to this title or its retention for public purposes; (8) provisions of public services, including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs, if such services have not been provided by the unit of general local government (through funds raised by the said unit, or received by such unit from the state in which it is located) during any part of the twelve-month period immediately preceding the, date of submission of the statement with respect to which funds are to be made available under this title, and which are to be used for such services, unless· 13 the Secretary finds that the discontinuation of such services was the result of events not within the control of the unit of general local government, except that not more than'15 percent of the amount of any assistance to a unit of general local government under this title may be used for activities under this paragraph unless such unit of general ,local government used more than 15 percent of the' assistance received under this title for fiscal year 1982 or fiscal year 1983 for such activities (excluding any assistance received pursuant to Public Law 98-8), in which case such unit of general local government may use not more than the percentage or amount of such assistance used for such activities for such fiscal year, whichever method of calculation yields the higher amount; (9) payment of the non':'federal share required in connection with a federal grant-in-aid program, undertaken as part of activities' assisted, under this title; (10) payment of the cost of completing a project funded under Title I of the Housing Act of 1949; (11) relocation payments and assistance for displaced individuals, families, businesses, organizations, and farm operations, when determined by the grantee to be appropriate; (12) activities necessary (A) to develop a comprehensive community development plan, and (B) to develop a policy-planning-management capacity so that the recipient of assistance under this title may more rationally and effectively (I) determine its needs, (ii) set long-term goals and short-term objectives, (iii) devise programs and activities'to meet these' goals and objectives, (iv) evaluate the progress of such programs in accomplishing these goals and objectives, and (v) carry out management, coordination, and monitoring of activities necessary for effective planning implementation; (13) paymentof reasonable administrative costs related to establishing and administering federally approved enterprise zones and payment of reasonable administrative costs and carrying charges related to the planning and execution of community development and housing activities, including the provision of information and resources to residents of areas in which community development and housing activities are to be concentrated with respect to the planning and execution of such activities, and including' the carrying out of activities as described in section 701 (e) of the HQusing Act of 1954 on the date prior to the date of enactment of the Housing and Community Development Amendments of 1981; (14) provision of assistance including loans (bothinterirn and long term) and grants for activities which are carried out by public or private nonprofit entities, including (A) acquisition of real property; (B) acquisition, construction, reconstruction, rehabilitation, or installation of (I) public facilities (exceptfor buildings for the general conduct of government), site improvements, and utilities, and (ii) commercial or industrial buildings or structures and other commercial or industrial real property improvements; and (iii) planning; (15) assistance to neighborhood-based nonprofit organizations, local development corporation, nonprofit organizations serving the development needs of the communities or non-entitlement areas, or entities organized under section 301 (d) of the Small Business Investment Act of 1958 to carry out a neighborhood revitalization or community economic development or energy conservation project in furtherance of the objectives of Section 101 (c), and assistance to neighborhood-based nonprofit organizations, for the purpose of assisting, as part of neighborhood revitalization or other community development, the development of shared housing opportunities (other than by construction of new facilities) in which elderly families (as defined in Section 3(b)(3) of the United States Housing Act of 14 1937) benefit as a result of living ina dwelling in which the facilities are shared with others in a manner that effectively and efficiently meets the housing needs of the residents and thereby reduces their cost of housing; (16) activities necessary to the development of energy use strategies related to recipient's development goals, to assure that those goals are achieved with maximum energy efficiency, including items such as: (A) an analysis of the manner in, and the extent to which energy conservation objectives will be integrated into local government operation, purchasing and service deliver, capital improvements budgeting, waste management, district heating and cooling, land use planning and zoning, and traffic control, parking, and public transportation functions; and (8) a statement of the action the recipient will take to foster energy conservation and the use of renewable energy resources in private sector, including the enactment and enforcement of local codes and ordinances to encourage or mandate energy conservation or use of renewable energy resources, financial and other assistance to be provided (principally for the benefit of low- and moderate-income persons) to make energy conserving improvements to residential'structures, and any other proposed energy conservation activities. (17) provisions of assistance to private, for-profit entities, when the assistance is necessary or appropriate to carry out an economic development project; . (18) the rehabilitation or development of housing assisted under Section 17 of the United States Housing Act of 1937; and (19) provision of assistance to facilitate substantial reconstruction of housing owned and -~ occupied by low-income persons (A) where the need for reconstruction was not determinable until after rehabilitation under this section had already commenced, or (8) where the reconstruction is part of a neighborhood rehabilitation effort and the grantee (I) determines the housing is not suitable for rehabilitation, and (ii) demonstrates to the satisfaction of the Secretary that the cost of substantial reconstruction is significantly less than the cost of new construction and less than the fair market value of the property after substantial reconstruction; and (20) provision of technical assistance to public or nonprofit entities to increase the capacity of such entities to carry out eligible neighborhood revitalization or economic development activities, which assistance shall not be considered a planning cost as defined paragraph (12) or administrative cost as defined in paragraph (13); (21) housing services, such as housing counseling, energy auditing, preparation of work specification, loan processing, inspections, tenant selection, management of tenant-based rental assistance, and other services related to assisting owners, tenants, contractors, and other entities, participating or seeking to participate in housing activities authorized under this section, or under Title II of the Cranston-Gonzalez National Affordable Housing Act, except that activities under this paragraph shall be subject to any limitation on administrative expenses imposed by any law; (22) provision of assistance by recipients under this title to institutions of higher education having a demonstrated capacity to carry out eligible activities under this subsection for carrying out such activities; 15 (23) provision of assistance to public and private organizations, agencies, and other entities (including nonprofit and for-profit entities) to enable ,such entities to facilitate economic development by: ' (A) providing credit (including providing direct loans and loan guarantees, establishing peer lending programs) for the establishment, stabilization, and expansion of microenterprises; (8) providing technical assistance, advice, and business support services (including assistance, advice, and support relating to developing. business plans, securing funding, conducting marketing, and otherwise engaging in microenterprise activities) to owners of microenterprises and persons developing microenterprises; and (C) providing general support (such as peer support programs and counseling) to owners of microenterprises and persons developing microenterprises; (24) activities necessary to make essential repairs and to pay operating expenses necessary to maintain the habitability of housing units acquired through tax foreclosure proceedings in orderto prevent abandonment and deterioration of such housing in primarily low-income neighborhoods; and (25) provision of direct assistance to facilitate and expand home'ownership among persons of low-income (except that such assistance shall not be considered a public service for purpose of paragraph (8) by using such assistance ,to: (A) subsidize interest rates and mortgage principal amounts for low-income home buyers; (8) finance the acquisition by low-income home buyers of housing that is occupied by the home buyers; (C) acquire guarantees for mortgage financing obtained by low-income home buyers from private lenders (except that amounts received under this title may not be used under this subparagraph to directly guarantee such mortgage financing and grantees under this title may not directly provide such guarantees); (D) provide up to 50 percent of any down payment required from low-income home buyer; or (E) pay reasonable closing costs (normallyassocia.ted with the purchase of a home) incurred by low-income home buyer. (b) Upon the request of the recipient of assistance under this title, the Secretary may agree to perform administrative services on a reimbursable basis on behalf of such recipient in connection with loans or grants for the rehabilitation of properties as authorized under subsection (a)(4). (c)(1) In any case in which an assisted activity described in paragraph (14) or (17) of subsection (a) is identified a.s principally benefiting persons of low-income, such activity shall: (A) be carried out in a neighborhood consisting predominately of person of low-income and provide services for such person; or (8) involve facilities designed for use predominately by person of low-income; or (C) involve employment of persons, a majority of whom are persons of low-income. 16 -~- (2)(A) In any case in which an assisted activity described in subsection (a) is designed to serve an area generally and is clearly designed to meet identified needs of persons of low- income in such area, such activity shall be considered to principally benefit persons of low income if (I) not less than 51 percent of the residents of such area are persons of low- income; (ii) in any metropolitan city or urban county, the area served by such activity is within the highest quartile of all areas within the jurisdiction of such city or county in terms of the degree of concentration of persons of low-income; or (iii) the assistance for such activity is limited to paying assessments (including any charge made as a condition of obtaining access) levied against properties owned and occupied by persons of low-income to recover the capital cost for a public improvement. (B) The requirements of subparagraph (A) do not prevent the use of assistance under this title for the development, establishment, and operation for not to exceed 2 years after its establishment of a uniform emergency telephone number system if the Secretary determines that: (i) such system will contribute substantially to the safety of the residents of the area served by such system; (ii) not less than 51 percent of the use of the system will be by persons of low-income; and (iii) other federal funds received by the grantee are not available for the development, establishment, and operation of such system due to the insufficiency of the amount of such funds, the restrictions on the use of such funds, or the prior commitment of such funds for other purposes by the grantee. The percentage of the cost of the development, establishment, and operation of such a system that may be paid from assistance under this title and that is considered to benefit low-income persons is the percentage of the. population to be served that is made up of persons of low-income. (3) Any assisted activity under this title that involves the acquisition or'rehabilitation of property to provide housing shall be considered to benefit persons of low-income only to the extent such housing will, upon completion, be occupied by such persons. INELIGIBLE ACTIVITIES Although ineliaible activities are not specifically identified in Tit!e I, the Code of Federal regulations (CFR's), developed from the statute, provide guidance. According to 24 CFR 570.207, the general rule is that any activity that is not authorized under the provisions of 570.201 - 570.206 of this Subpart is ineligible to be carried out with CDBG funds. This section identifies three specific activities that are ineligible and provides guidance thought to be necessary in determining the eligibility of several other activities frequently associated with housing and community development. (A) the following activities may not be carried out using CDBG funds: (1) Buildings or portions thereof used predominantly for the general conduct of government cannot be assisted with CDBG funds. Such buildings include, but are not limited to: city halls and other headquarters of government where governing body of the recipient meets regularly, courthouses, and other state or local government office buildings. This does not exclude, however, the removal of architectural barriers under Subpart 570.201 (k) and historic preservation under 570.202(d) involving any such building. Also, where acquisition of real property includes an existing improvement which is to be utilized in the provision of a building or facility for the general conduct of government, the portion otthe acquisition cost 17 attributable to the'land is eligible provided such acquisition meets a national objective, (570.208). (2) Generalgoverriment expenses; Except as otherwise specifically authorized in this Subpart or under OMBCircular A-87, expenses required to carry out the regular responsibilities of the unit of general local governmen! are not eligible for assistance under this, Part. (3)Political activities. CDBG funds shall not be used to finance the use of facilities or equipment for political purposes or to engage in other partisan political activities, such as candidate forums, voter transportation, or voter registration. However, a facility originally financed in whole or in part withCDBG funds may be used on an incidental basis to hold political meetings, candidate for....ms, or voter registration campaigns, provided that all parties and organizations have access to the facility on an equal basis, and are assessed equal rent or use charges, if any. (B) The following activities may not be carried out withCDBG funds unless authorized under provisions of 570.203 or as otherwise specifically noted herein, or when carried out by a subrecipient under the provisions of 570.204. (1) Purchase of equipment. The purchase of equipment with CDBG funds is generally ineligible. (i) Construction equipment. The purchase of construction equipment is.ineligible, but compensation for the use of such equipment through leasing, depreciation, or use allowances pursuant to OMB Circulars,A-87 orA..122'as applicable for an otherwise eligible activity is an ,eligible use of CDBGfunds. However, the purchase of construction equipment for use as part of a solid waste disposal facility is eligible . under Subpart 570.20 1 (c). (ii) Fire protection equipment. Fire pr()tection equipment is considered for this purpose to be an integral part of a public facility and thus, purchase of such equipment would be eligible under 570.201 (c). (iii) Furnishings and personal property. The purchase of equipment, fixtures, motor vehicles, furnishings, or other property which is not an integral structural fixture is generally ineligible. COBGfùnds may be used, however, to purchase, or to pay depreciation or use allowances (in accordance withOMB Circulars A-87 or A-122, as applicable), for such items when necessary for use by a recipient or its subrecipientsin the administration of activities assisted with CDBG funds, or when eligible as fire fighting equipment, or as a, public service pursuant to Subpart 570.201 (e). (2) Operating and maintenance expenses. The general rule is that any expense associated with repairing, operating or maintaining public facilities and services is ineligible. Specific exceptions to this general rule are operating and maintenance expenses associated with public service activities, interim assistance and office space for program staff employed in carrying out the COBG program. For example, where a public service is being assisted with COBG funds, the cost of operating and maintaining that portion of the facility in which the service is located is eligible as part of the public service. Examples of ineligible operating and maintenance expenses are: 18 --~/ (i) Maintenance and repair of streets, parks, playgrounds, water and sewer facilities, neighborhood facilities, senior centers, centers for the handicapped, parking and similar public facirities. Examples of maintenance and repair activities for which CDSG funds may not be used include the filling of pot holes in streets, repairing cracks in sidewalks, the mowing of recreational areas, and the replacement of expended street light bulbs. (ii) Payment of salaries for staff, utility costs and similar expenses necessary for the operation of public works and facilities. (3) New housing construction. Assistance may not be used for the construction of new permanent residential structures or for any program to subsidize or finance such new construction, except: (i) As provided under the last resort housing provisions set forth in 49 CFR Part 24; or (ii) As authorized under 570.201 (m); or (iii) When carried out by a subrecipient pursuant to 570.204(a). (4) Income payments. The general rule is that assistance shall not be used for income payments for housing or any other purpose. Examples of ineligible income payments include payments for income maintenance, housing allowances, down payments and mortgage subsidies. 19