Loading...
HomeMy WebLinkAbout3171 RESOLUTION NO. 3M A RESOLUTION of the City Council of the City of Bremerton, Washington, adopting the 2013 CDBG/HOME Policy Plan WHEREAS, the City of Bremerton is an entitlement community which receives a Community Development Block Grant (CDBG) each year from the Department of Housing and Urban Development, and also receives funding from HUD's Home Investment Partnerships (HOME) fund via an inter -local agreement with Krtsap County, and WHEREAS, the City of Bremerton is required to establish a Policy Plan for the City's management of its HUD entitlement, including eligibility, application, and review and implementation processes and requirements for grant funded protects, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting a new policy deactivating the CDBG Section 108 Loan Guarantee Program, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting a new policy establishing loareas the form of assistance for certain awards over $200,000, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting a new policy tightening commitment and timely expenditure of funds requirements, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting new policy targeting 10% of CDBG Capital funds to Economic Development projects, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting new policy regarding Definition of Income, to concur with HUD changes, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting new policy tightening HOME Project Completion deadlines, to concur with HUD changes, and WHEREAS, the Department of Community Development CDBG/HOME staff recommends adopting new policy regarding transfer of unsold homebuyer units to rental, to concur with HUD changes, and 1 2013 CDBG/HOME Policy Plan WHEREAS, the Department of Community Development CDBG/HOME staff advertised in the Krtsap SUN and posted on the City's websrte on Monday, April 13, 2012 a 30- day written public comment period commencing April 13, 2012, ending May 14, 2012 and open for public comment in a public hearing on Wednesday, May 16, 2012; and WHEREAS, no comments were received during the advertised public comment period, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS - SECTION 1. The recitals and findings of fact set forth in this resolution are hereby incorporated as if fully set forth herein SECTION 2. The 2013 CDBG/HOME Policy Plan attached hereto as Exhibit A is hereby adopted SECTION 3. SeverabdiN If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect SECTION 4. ffective Date This Resolution shall take effect and be in force immediately upon its passage PASSED by the City Council of the City of Bremerton, Washington this I t — day of , 2012 4 M MCDONALD, Council President APPROVED AS TO FORM ATTEST ROb OVICH, City Attorne %ANNO City Clerk R \Legal\Legal\Resolutions \Community Development\2013 CDBG HOME Policy Plan doc 2 2013 CDBGIIIOME Policy Plan l EXH I BIT A 2013 City of Bremerton and Kitsap County Community Development Block Grant � D 00 .io COMMUNITY DEVELOPMENT BLOCK GRANT On The Right Road 2013 CDBG /HOME POLICY PLAN E - CDBG /HOME POLICY PLAN Con- Community Development Block Grant Program ....... ..............................1 CDBGFunding ..................................................... ..............................1 HOMEFunding ..................................................... ..............................3 Allocation Process ................................................ ..............................4 Policies & Regulations for Use of Funds ............................ ..............................6 Citizen Participation Plan ......................................... .............................13 Consolidated Plan ................................................. .............................13 Appendix A — Citizen Participation Plan Appendix B — Requirements for Section 108 Loan Guarantee Appendix C — Consolidated Plan Objectives & Strategies Appendix D — CDBG National Objectives & Eligibility Requirements Appendix E — HOME Eligibility Requirements & Program Rules Appendix F — Anti - Displacement & Relocation Assistance Plan Appendix G — Glossary CDBG /HOME Policy Plan 12013 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHAT IS THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM? The Community Development Block Grant Program is a source of funds used in the local community to provide decent housing, suitable living environments and economic opportunities primarily for low and moderate income households The City of Bremerton is designated as an Entitlement Community by the Department of Housing and Urban Development (HUD) and receives federal funds in the form of Community Development Block Grant (CDBG) Kitsap County, with the cities of Port Orchard, Poulsbo and Bainbridge Island, is also designated as an Entitlement Community and receives a separate allocation of CDBG funds Kitsap County and the City of Bremerton together form a consortium and receive an allocation of HOME Investment Partnership Program (HOME) funds Through an interlocal agreement between the County and the City, 43% of the annual allocation of HOME funds is designated for the City and the remaining designated for the County CDBG and HOME funds are allocated annually through a competitive grant process Projects funded are included in the annual Action Plan submitted to HUD Projects funded must address needs identified in the Consolidated Plan, which is updated every five years CDBG FUNDS WHAT ARE CDBG FUNDS? The Community Development Block Grant (CDBG) program is a flexible program that provides communities with funding to address a wide range of unique community development needs The program is authorized by Title I of the Community Development Act of 1974 Funds are used to assist in the development of decent housing, create suitable living environments, and expand economic opportunities primarily for persons of low and moderate income All projects funded with CDBG must meet one of the three national objectives 1 Principally benefit low and very low income households, 2 Reduce or prevent slum and blight, or, 3 Meet an urgent need (emergency or natural disaster) WHO IS AN ELIGIBLE APPLICANT /RECIPIENT? Eligible applicant/recipients include • City or County governments • Public and private nonprofit organizations (501(c)3) • Section 301(d) small business investment companies • Local development corporations • Private for - profit organizations may implement certain economic development and microenterprise activities • Faith based organizations • Additionally, applicants must • Demonstrate an active governing body or board of directors with skills and experience to provide leadership and direction to the agency I CDBG /HOME Policy Plan 1 2013 • Demonstrate the legal, financial, and programmatic ability to administer the proposed program /project, and, • Meet the County /City requirements for contracting agencies such as insurance requirements, audit and financial requirements WHAT ARE ELIGIBLE ACTIVITIES? Eligible activities are defined in the CDBG program regulations at 24 CFR 570 201 and 570 207 A list of some of the activities follows • Acquisition of real property by purchase, lease or donation • Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements • Code enforcement in deteriorated or deteriorating areas • Clearance, demolition and removal and rehabilitation of buildings and improvements • Removal of material and architectural barriers • Public services (including labor, supplies and materials) including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs • Planning activities • Assistance to Community Based Development Organizations (CBDO) to carry out projects • Assistance to carry out economic development projects • Housing services such as housing counseling and energy auditing • Assistance to facilitate and expand homeownership opportunities for low and very low income people • Lead based paint hazard evaluation and reduction The following activities are generally not eligible for CDBG funding • New residential housing construction, except in special circumstances • Regular government operations • Buildings such as city halls, police stations, or other buildings primarily for the general conduct of government (except for the removal of architectural barriers) • Income payments such as payments to individuals or families for food, clothing, or rent, except in certain circumstances • Political activities • Vehicles and Equipment Note The above lists are not comprehensive For a complete list of eligible or Ineligible activities refer to CDBG regulations in 24 CFR 570 201 and 570 207 Appendix D provides additional information designed to assist you in defining the eligibility and national objective that your activity meets and the type of information you will need to provide in your application 2 CDBG /HOME Policy Plan 1 201 3 WHAT IS THE SECTION 108 LOAN GUARANTEE? The Section 108 Loan Guarantee Programs for the City of Bremerton and Kitsap County have been deactivated due to budget and funding cuts Section 108 is a loan guarantee provision of the CDBG program Section 108 provides communities with a means of leveraging their CDBG funds to obtain additional financing resources for economic development, public facilities, large -scale physical development projects and housing rehabilitation Local governments borrowing funds guaranteed by Section 108 must pledge their current and future CDBG allocation to cover the loan amount as security for the loan The decision to award a Section 108 loan to a particular project is made by HUD Section 108 Loan Guarantee funds may be used for activities described in 24 CFR 570 703 provided such activities meet the general requirements of the CDBG program as described at 24 CFR 570 200 Eligible activities are defined in the CDBG program regulations at 24 CFR 570 201 and 570 207 Eligible activities include, but are not limited to • Acquisition and rehabilitation of real property, • Specific relocation assistance, • Clearance, demolition and removal activities, • Site preparation, • Specific economic development activities, • Acquisition, construction, reconstruction, rehabilitation, or installation of public facilities, and • Specific construction of housing by non - profit organizations 17— HOME FUNDS WHAT ARE HOME FUNDS? The HOME Program was created by the National Affordable Housing Act of 1990 (NAHA) The Housing and Community Development Act of 1992 and the Multifamily Property Disposition Act of 1994 made important changes to the Program The intent of the HOME Program is to • Expand the supply of decent, safe, sanitary, and affordable housing, • Strengthen the abilities of state and local governments to provide housing, • Expand the capacity of nonprofit community based housing development organizations, and, • Leverage private sector participation in financing affordable housing Beneficiaries of HOME funds — homebuyers, homeowners or tenants — must have incomes below 80% of the area median income The HOME program also requires a match of 25% or greater in other non - federal funds for projects For more information on specific requirements of the HOME program see Appendix E WHAT ARE ELIGIBLE ACTIVITIES? The Eligible activities are defined in the HOME program regulations at 24 CFR 92 205 A list of some of the activities follows 3 CDBG /HOME Policy Plan 1 2013 • Rehabilitation of residential property where property is fully repaired • New construction of residential property • Acquisition of residential property • Rental assistance payments to tenants • Relocation associated with an eligible HOME project • A small part (up to 5 %) of the annual HOME allocation may be used to help pay the operating expenses of designated Community Housing Development Organizations (CHDOs) within the guidelines established by HUD The following activities are generally not eligible for HOME funding • Project reserve accounts, except for the initial 18 months of a HOME assisted new construction project • Emergency home repair programs • Public housing units • Commercial properties • Shelters, unless they meet Section 8 Housing Quality Standards and otherwise can be considered rental housing • Project based tenant assistance Note The above lists are not comprehensive For a complete list of eligible or Ineligible activities refer to HOME regulations in 24 CFR 92 205 ALLOCATION PROCESS HOW ARE FUNDS ALLOCATED? The City of Bremerton and Kitsap County, in conjunction with the Affordable Housing Grant Program and Homeless Housing Grant Program, conduct a competitive funding application process A single application is made available in May of each year and a public process is used to determine funding allocations This process is detailed in the Citizen Participation Plan (Appendix A) The public is encouraged to participate in the process and its end product the submission of an annual Action Plan to the Department of Housing and Urban Development in November of each year HOW MUCH MONEY IS AVAILABLE? The amount of CDBG and HOME funds available for the annual application cycle is determined by the amount appropriated in the federal budget and HUD's formula allocation for that year The City and County estimate funds available based on prior year's allocations and includes the estimates in the Application Packet for the year Applicants should request a minimum of $10,000 per application Grant awards will typically not be awarded for less than $10,000 except at the discretion of the Grant Review Committee The amount of funds available for Section 108 Loans is five times the current CDBG allocation, less any outstanding loans The amount is included in the Application Packet separately for the County and City Please note, at this time the City of Bremerton and Kitsap County Section 108 Loan Guarantee Programs are inactive due to funding cuts 4 CDBG /HOME Policy Plan 1 2013 FORMS OF ASSISTANCE Funds are provided either In the form of a grant or as a loan Awards of $200,000 or more of CDBG and /or HOME (cumulative and Including awards from multiple years) for a single project site will trigger a loan for the following types of activities • Acquisition of land and /or buildings • Rehabilitation • New construction • Direct homeowner assistance Loan term will be for a maximum of 40 years All loans will be Interest bearing at 3% annual Interest rate and will not be forgivable Other loan terms will be evaluated on a project by project basis during the subsidy layering review and included In the written agreement and loan documents WHAT IS THE DISTRIBUTION OF CDBG AND HOME FUNDS? CDBG and HOME program regulations allow certain set - asides to further specific program goals The following Is the distribution for Kitsap County and the City of Bremerton CDBG • Public Service Projects -15% max • Planning & Administration – 20% max • Capital Projects (Including 10% for Economic Development) — 65% HOME • Administration -10% max • Community Housing Development Organization (CHDO) Set -Aside –15% min • Capital Projects– 75% City of Bremerton HOME funded homeownership projects are capped at $30, 000 per unit HOW CAN MY ORGANIZATION APPLY? The annual application cycle begins in April with the publication of the Notice of Funding Availability and Policy Plan and commencement of a 30 day public comment period At the end of the comment period, upon approval of the Policy Plan by the Kltsap Regional Coordinating Council (KRCC) and Bremerton City Council, the application Is made available In May Interested organizations can find the application and all associated Information on the County web site at http / /www kitsapgov com /hr /block grant program /block grant program htm or on the City web site at http / /www cI bremerton wa us /display php ?id =864 The schedule for the annual application cycle, Including the due date for applications, is available on the web site Interested organizations may also contact Block Grant staff to request to be placed on the City /County interested parties list to receive automatic notices about these programs WHEN WILL FUNDS BE AVAILABLE? Funds for the programs' January 1 – December 31 program year are generally not available until spring or early summer of the program year Timing is dependent on federal budget approval —which Is often delayed —and how quickly HUD Is then able to allocate funds to local jurisdictions The County and City will not execute contracts with subrecipients until we have a contract from HUD Once subrecipient contracts are executed CDBG and HOME funds can only be disbursed on a reimbursement basis 5 CDBG /HOME Policy Plan 1 2013 POLICIES & REGULATIONS FOR USE OF FUNDS CDBG and HOME funds are Federal funds Use of Federal funds may affect the way your agency does business If you are applying for Federal funds for the first time, you are strongly encouraged to familiarize yourself with the requirements A Guidebook for recipients of CDBG and HOME funds can be found on the Kitsap County Block Grant Program web site at http / /www kitsapgov com /hr /block grant program /block grant program htm You may also contact the County or City Block Grant Staff for additional assistance A. GENERAL REQUIREMENTS 1. Consistency with applicable City, County, and/or State Codes and Policies To be considered for funding, projects must be consistent with adopted codes and other applicable policies, plans and standards 2. Contract Retainage for Federal Compliance City /County will withhold up to 15% of the award amount included in the written subrecipient agreement until all federal compliance requirements are met All construction contracts between a subrecipient (ie your agency) and contractor shall have 10% of payment retained until fulfillment of federal compliance is documented 3. Definition of Income Most CDBG and HOME funded projects will use some type of income eligibility to determine who is eligible for services or housing The CDBG and HOME program regulations defines annual income in one of three ways However due to the elimination of the use of the Census Long Form, this definition of income will not longer be used There are two definitions that may be used ➢ Annual income as defined in 24 CFR 5 609, referred to as "Part 5 annual income ", and ➢ Adjusted gross income as defined for reporting purposes under the IRS Form 1040 long form (not IRS Forms 1040A or 1040EZ) For more information on determining income see the Technical Guide for Determining Income and Allowances for the HOME program This guide and can be downloaded from http //archives hud gov/ offices/ cpd /affordablehousing /modelguides /1780 Pdf 4. Project/Activity Delivery Costs Costs directly related to carrying out a funded activity may be charged as project costs (HOME funding) or activity delivery costs (CDBG funding) to subrecipient grant awards For example, if staff underwrites loans that are to be made with CDBG or HOME funds, the portion of their salaries spent on this function can be treated as costs of carrying out the activity and charged to the grant These costs may also include such things as the cost of conducting a NEPA compliant environmental review or Davis Bacon Certified Payroll review and enforcement These costs will not be included in your written agreement (contract), staff will allocate additional funds for project/activity delivery costs and include them in the Action Plan 6 CDBG /HOME Policy Plan 1 2013 5. Commitment and Timely Expenditure of Funds In order to meet regulatory requirements the City and County have established the following policies for CDBG and HOME funded projects a COMMITMENT ➢ Organizations awarded CDBG or HOME funds must enter into a written agreement with the County /City during the award year (i a Funds awarded for 2012 must have an agreement executed by Dec 31, 2012) ➢ A Conditional Commitment of funds may be made for Capital projects that do not have all project funds committed Commitment will be made via formal written agreement within one year of conditional commitment only when all funding is in place b TIMELY EXPENDITURE OF FUNDS ➢ CDBG Public Service funding must be fully spent by December 31 st of the award year ➢ Projects using HOME funds to acquire vacant land must be under construction within 12 months of the commitment date ➢ Organizations must begin drawing funds within one year of the contract execution date (date the contract was signed by County /City Mayor) and at least annually thereafter c DEOBLIGATION OF FUNDS ➢ Organizations unable to meet these requirements will lose their funding, funds will be allocated to another eligible project 6. On -going Restrictions for CDBG & HOME Funded Capital Projects HUD requires that facilities acquired, constructed or improved with CDBG and /or HOME funds be "publicly owned" and that the public interest be protected The interest will be secured, when appropriate, through a lien on the property recorded as a deed of trust, explaining the sale and change of use provisions that accompany CDBG /HOME assisted real property The specific terms and conditions of the public interest security agreements will vary depending on the type of project assisted B. HOME FUNDING - SPECIFIC REQUIREMENTS 1. HOME Project Completion Recipients of HOME funds will have 4 years from the commitment date (contract date) to complete projects Project completion means that all construction work and title transfer (if applicable) is completed and the final draw of HOME funds has been disbursed For projects that are not completed within 4 years, termination of the project and repayment of HOME funds is required 2. Affordability Period restrictions for HOME funded projects To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent and occupancy requirements over the length of an affordability period The length of the affordability period depends on the amount of the HOME funds in the 7 CDB / HOME Policy Plan 1 2013 property and nature of the activity funded Affordability periods range from 5 to 20 years and follow the guidelines in the chart below Minimum Activity Dollar Threshold " Affordability Period Homebuyer assistance for Less than $15,000 /unit 5 Years acquisition, rehabilitation and $15,000 - $40,000 /unit 10 Years new construction of homes Greater than $40,000 /unit 15 Years Rehabilitation or Acquisition of Less than $15,000 /unit 5 Years existing rental housing $15,000 - $40,000 /unit 10 Years Greater than $40,000 /unit 15 Years Refinance of a rental housing Any $ amount 15 Years Rehabilitation project New Construction (including Any $ amount 20 Years land acquisition) or Acquisition of new rental housing ** Dollar threshold is per unit for single family housing 3. HOME Resale /Recapture Provisions For HOME, the Participating Jurisdiction (County or City) will designate in the subrecipient contract whether Resale or Recapture (24 CFR 92 294(a)(5)) will be used for maintaining affordability for each HOME assisted property Additionally, deed restrictions must be recorded on the property to ensure the affordability See Appendix E for more details 4. HOME Assisted Rental Housing The HOME Program requires that all households who occupy HOME units be low income Property owners and operators must develop policies and procedures which address ➢ Admission & Tenant Selection (including an Affirmative Marketing Plan) ➢ Lease Provisions & Occupancy At initial occupancy and during the period of affordability Block Grant staff will monitor the project for compliance with HOME requirements The monitoring will include inspections of HOME assisted units and the property overall, review of policies and procedures, project financial information and tenant files 5. Transfer of Homebuyer unit to a Rental unit: HOME funded Homeownership units not sold to an eligible buyer within 6 months of the date of the final inspection and /or issuance of the occupancy permit, must be rented in accordance with 24 CFR Part 92 252 6. CHDO Certification Kitsap County/ City of Bremerton Block Grant Programs are required to certify that an organization qualifies as a Community Housing Development Organization (CHDO) each time it commits CHDO set -aside funds to the organization A CHDO is required to document that it has the capacity to own, develop, or sponsor housing in accordance 8 C DBG /HOME Policy Plan 1 2013 with the regulations at 24 CFR Part 92 2 CHDO certification will be required before a commitment of set -aside funds is made 7. Subsidy Layering Review Kitsap County and the City of Bremerton, using subsidy layering guidelines it has established, will document that when HOME funds are used in combination with other government assistance in a project, no more subsidy is invested than necessary A subsidy layering review will be conducted by staff during the technical review of the Application The review will be kept in the project file and updated if additional sources of funds not originally contemplated are added, or if sources originally anticipated are significantly reduced or eliminated 8. Leveraging The City of Bremerton requires leveraging of HOME funds for homeownership housing projects For every $1 of HOME funds committed, the project sponsor must show leveraged funding of $2 from other sources C. CDBG FUNDING - SPECIFIC REQUIREMENTS 1. Restrictions on the Change -of -Use of CDBG Assisted Property All recipients must agree to restrict the use of the property, which was acquired and /or improved using CDBG funds, to the intended purpose for which the funds were awarded The restriction will be based on the dollars invested and follow the guidelines in the chart below This is to ensure compliance with HUD requirements and to ensure continued public benefit Activity Dollar Threshold* Minimum Years Restricted Rehabilitation or Acquisition of Less than $15,000 5 Years existing facilities or housing $15,000 - $40,000 10 Years (including homeownership Greater than $40,000 15 Years assistance) New Construction or Acquisition of land for new Any $ amount 20 Years construction * Dollar threshold is per facility, or if housing, per unit for single family housing 2. Restriction on Assessments CDBG funds may not be used for public improvement projects where a portion of the projects is to be financed by assessments to area property owners, unless the project is structured such that CDBG funds are used to pay the assessments of all low and very low income property owners The analysis of incomes of affected persons must be done ahead of time and submitted as part of the application for CDBG funds 3. Guidelines for Economic Development Projects (24 CFR 570.209) City and County will utilize the guidelines provided at 24 CFR 570 209 relative to project costs and financial requirements and standards for evaluating public benefit 9 C /HOME Policy Plan 1 2013 4. Supplanting (24 CFR 570.207) Federal regulations prohibit using CDBG funds to supplant (replace or substitute for) local funds for public services or ongoing responsibilities of general local government The intent of this federal regulation is to prevent local government from using the availability of federal CDBG dollars as an excuse to reduce local funding commitments D. FINANCIAL MANAGEMENT 1. Uniform Administrative Requirements Agencies which are governmental entities must comply with the requirements and standards of ➢ OMB Circular No A -87, "Principles for Determining Costs applicable to Grants and Contracts with State, Local and Federally recognized Indian Tribal Governments" ➢ OMB Circular A -128 "Audits of State and Local Governments" 24 CFR Part 85 "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" (certain sections) Non - governmental agencies must comply with the requirements and standards of ➢ OMB Circular No A -122, "Cost Principles for Non - Profit Organizations" or OMB Circular No A -21, "Cost Principles for Educational Institutions" ➢ OMB Circular A -133 "Audits of Institutions of Higher Education and Other Nonprofit Institutions" ➢ 24 CFR Part 84 and OMB Circular A -110 "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals or Other Non - Profit Organizations" 2. Audit Requirements Private non - profit agencies expending $500,000 or more in federal funds annually (whether CDBG / HOME alone or CDBG / HOME in conjunction with other federal funds) must have an annual audit conducted by an independent auditor in accordance with OMB A -133 Audit Standards for Private Non - Profit Organizations Agencies are responsible to meet this audit requirement Agencies that do not meet the $500,000 threshold mandatory A -133 audit are encouraged to obtain an annual audit if their operating budget is $100,000 or greater Smaller agencies are encouraged to obtain at least an annual financial review Block Grant staff will review financial information closely for all agencies submitting application E. PROCUREMENT Any subrecipient using CDBG or HOME funds to purchase goods or services must have a formalized written procurement procedure in place prior to contracting for any goods or services Procurement requirements are contained in 24 CFR Part 85 for governmental entities and 24 CFR Part 84 for Non - Profits, Institutions of Higher Education and Hospitals Additional information on procurement requirements can be found in the CDBG /HOME Guidebook on the Kitsap County Block Grant Program web site at http / /www kitsapgov com /hr /block grant program /block grant program htm F. ENVIRONMENTAL REVIEW 1. Environmental Review (24 CFR Part 58) 10 CDBG /HOME Policy Plan 1 20'1 All CDBG /HOME projects must have a NEPA compliant environmental review process completed before any funds, including funds committed from other sources, can be spent on the project For more information on the environmental review process visit www hud qov /offices /cpd /environment/review/ The costs associated with conducting a NEPA compliant environmental review for Capital CDBG and HOME funded projects may be charged to the grant award as project costs (HOME) or activity delivery costs (CDBG) Cost will vary depending on the level of review and complexity of the project and include staff time, cost of publishing required legal ads and printing costs The cost of any studies required to complete the environmental review (i a Phase I Environmental Site Assessment, Geotech Report, Cultural Site Assessment, etc) will be in addition to the costs associated with preparation of the NEPA environmental review and will be the responsibility of the subrecipient G. EQUAL OPPORTUNITY & ACCESSIBILITY 1. Fair Housing and Equal Opportunity All CDBG /HOME projects must comply with all of the following Federal laws, executive orders and regulations pertaining to fair housing and equal opportunity a Title VI of the Civil Rights Act of 1964 No person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving Federal assistance on the basis of race, color or national origin (24 CFR Part 1) b The Fair Housinq Act Prohibits discrimination in the sale or rental of housing, the financing of housing or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap or familial status (24 CFR Part 100 -115) c Equal Opportunity in Housing Prohibits discrimination against individuals on the basis of race, color, religion, sex or national origin in the sale, rental, leasing or other disposition of residential property, or in the use or occupancy of housing assisted with Federal funds (24 CFR Part 107) d Age Discrimination Act of 1975 Prohibits age discrimination in programs receiving Federal financial assistance (24 CFR Part 146) e For more information on eliminating discrimination visit www hud qov /offices /fheo /progdesc/title8 cfm 2. Handicapped Accessibility CDBG and HOME funded projects are subject to the following regulations governing the accessibility of Federally - assisted buildings, facilities and programs a Americans with Disabilities Act Provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, state and local government services and telecommunications The Act requires certain buildings or other facilities that receive Federal funds to be designed, constructed or altered in accordance with standards that insure accessibility to and use by physically handicapped people b Section 504 Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in federally assisted programs on the basis of handicap H. LABOR STANDARDS & CONSTRUCTION 1. Equal Opportunity for Employment and Contracting 11 CDBG /HOME Policy Plan 1 2013 CDBG and HOME funded projects are subject to the following regulations governing employment and contracting opportunities a Equal Employment Opportunity Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex or national origin Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000 (41 CFR Part 60) b Section 3 of the Housing and Urban Development Act of 1968 Requires that, to the greatest extent feasible, opportunities for training and employment arising from CDBG or HOME funded projects will be provided to low- income persons residing in the program service area c Mmonty/Women's Business Enterprise Outreach to minorities and women in contracting for services (24 CFR 85 36(e)) 2. Labor Requirements CDBG and HOME projects must comply with certain regulations on wage and labor standards Pursuant to the Davis -Bacon Act, federal wage rates apply to most (but not all) construction projects over $2,000 Applications that involve construction must consider Davis -Bacon wage rates in the budget The costs associated with the review of Certified Payrolls and compliance with DBRA requirements may be charged to the grant award as project costs (HOME) or activity delivery costs (CDBG) Cost will vary depending on the complexity of the project a Davis -Bacon and Related Acts Ensures that mechanics and laborers employed in construction work under federally assisted contracts are paid the Federal prevailing wage for the locality b Contract Work Hours and Safety Standards Act Provides that mechanics and laborers employed on federally assisted construction fobs are paid time and one -half for work in excess of 40 hours per week c Copeland (Anti - Kickback) Act Governs the deductions from paychecks that are allowable For more information on Davis Bacon requirements visit http / /www hud goy /offices /olr/ 3. Lead -Based Paint Hazard (24 CFR Part 35) Housing built before 1978, assisted with HOME or CDBG funds, is subject to the Lead - Based Paint Poisoning Prevention Act The law imposes requirements related to • Disclosure of known hazards and what has been done to reduce them, • Treatment, relocation during treatment, and ongoing inspection of units Project feasibility is an important consideration for housing with lead -based paint Recipients of CDBG or HOME funds will need to be aware of the potential for additional time and cost associated with lead -based paint hazards 4. Compliance with Codes & Standards for Rehabilitation and New Construction a All capital projects funded with CDBG or HOME must comply with local budding and fire codes b All HOME funded Rehabilitation projects must comply with the Rehabilitation Standards adopted by the Kitsap County & City of Bremerton Block Grant Program c All rental housing units purchased and /or rehabilitated with CDBG or HOME must pass a Housing Quality Standards inspection d All housing must comply with the applicable accessibility requirements for persons with disabilities 12 CDBG /HOME Policy Plan 1 2013 1. REPORTING & MONITORING All programs and projects funded with CDBG or HOME funds will be required to submit quarterly reports Reports will be provided by the Block Grant Program and may be submitted electronically Annual on -site monitoring is conducted by staff for all open contracts A monitoring checklist is used by staff to review compliance with the requirements of the written agreement and federal regulations Agencies will be contacted at the end of the program year to schedule the monitoring visit J. ACQUISITION & RELOCATION 1. Uniform Relocation Assistance & Real Property Acquisition (49 CFR Part 24) These regulations apply to any federally - assisted project involving acquisition demolition or rehabilitation Proposals for CDBG and HOME funded projects that are likely to cause displacement of people or businesses are discouraged Any project that is likely to cause displacement must include relocation assistance payments in the budget and be consistent with the federal Uniform Relocation Act Projects which trigger this regulation must follow the Anti - displacement and Relocation Assistance Plan included in Appendix F If your project includes acquisition, rehabilitation or demolition you are strongly urged to discuss the requirements with Block Grant staff before entering into any legally binding agreements 2. Minimizing the Loss of Low and Very Low Income Dwelling Units (24 CFR Part 42) Any CDBG /HOME proposal that would directly result in any occupied or vacant occupiable low and very low income dwelling units being (1) demolished, or (2) converted to a use other than as low and very low income housing must include a realistic plan to provide replacement housing within three years of the commencement of the demolition or rehabilitation relating to conversion Projects which trigger this regulation must follow the Anti - displacement and Relocation Assistance Plan included in Appendix F. CITIZEN PARTICIPATION PLAN HUD requires a Citizen Participation Plan be adopted by jurisdictions receiving CDBG and HOME funds The plan details the process used by the County and the City in development of the Consolidated Plan and annual application cycle which results in the Action Plan submission to HUD The Citizen Participation Plan for the County and the City can be found in Appendix A CONSOLIDATED PLAN WHAT IS THE CONSOLIDATED PLAN? The Consolidated Plan rolls the planning, application and performance reporting requirements of several programs run by HUD into one process and one document In our community the Consolidated Plan covers CDBG (Community Development Block Grants) and HOME (grant for 13 CDB / HOME Policy Plan 1 201 3 affordable housing) programs jointly for the City of Bremerton and Kitsap County The plan covers a 5 -year period The Consolidated Plan requires a jurisdiction to identify all of its housing and community development needs and then develop a Iona -term strategy for meeting those needs A key part of the strategy is setting priorities The Plan identifies priority housing needs, non - homeless special needs, homeless needs, economic development and community development needs The Consolidated Plan also indicates what programs and resources will be used over the 5 -year planning period The plan contains objectives and strategies to address the identified needs and estimates the resources needed to fund activities to address the different needs WHAT ARE THE KEY PARTS OF THE PLAN? A. Housing & Community Development Needs Assessment This is the part of the Plan that has U S Census Bureau information and other information which presents a picture of the jurisdiction People are the focus of the "Needs" section of the plan The emphasis is on the human side of housing and community development including the needs of homeless people, people with special needs and those who are low- income B. The Housing Market Analysis This part of the Plan describes the physical "bricks and mortar," side of housing — the supply side of housing It looks at what housing exists When the housing conditions in this part of the plan are lined up with human needs in the previous part of the plan, a clear picture of what must be done should emerge C. The Strategic Plan The Strategy is the part of the Consolidated Plan where the County and City sets out how it intends to use its CDBG and HOME funds from HUD's Department of Community Planning and Development over the next five years The strategy must declare what priority the local government will give to the various housing and community development needs identified earlier in the Consolidated Plan, the activities designed to respond to those needs, and the different geographic areas where needs exist D. Annual Action Plan The Action Plan is the one -year plan a jurisdiction must have to show how it is carrying out its long -term Strategic Plan It shows how the jurisdiction will spend its CDBG and HOME money in the upcoming year Kitsap County and the City of Bremerton use an annual application process through which funds are competitively awarded Note The Objectives & Strategies from the Consolidated Plan are included in Appendix C The full text of the Consolidated Plan is available on both the County and City of Bremerton web sites and also available upon request GLOSSARY A Glossary of terms has been included in Appendix G 14