HomeMy WebLinkAbout3219 RESOLUTION NO. 3219
A RESOLUTION of the City Council of the City of
Bremerton, Washington, adopting the 2015 City of
Bremerton/Kitsap County CDBG/HOME Policy Plan and Notice
of Funding Availability.
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 Kitsap County; and
WHEREAS, the Department of Community Development Block Grant staff
estimates a 2015 CDBG allocation of $376,880, 20% of which will be set -aside for
administration, and a 2015 HOME allocation of $450,668, 10% of which will be set -aside for
administration; and
WHEREAS, the Department of Community Development Block Grant staff
recommends a targeted allocation of $20,000 CDBG funds and $55,000 HOME funds for the
House Key Bremerton Down - Payment Assistance Program; and
WHEREAS, all remaining funding will be allocated competitively to eligible
applicants for projects that fit the requirements set forth in the CDBG regulations at 24 CFR part
570 and HOME regulations at 24 CFR part 92; and
WHEREAS, the Department of Community Development CDBG/HOME staff
advertised in the Kitsap SUN and posted on the City's website on Friday, April 20, 2014 a 30-
day written public comment period commencing April 20, 2014, ending May 20, 2014 and open
for public comment in a public hearing on Wednesday, May 21, 2014; 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 2015 CDBG/HOME Policy Plan attached hereto as
Exhibit A is hereby adopted.
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2015 CDBG/HOME Policy Plan
SECTION 3. The 2015 CDBG/HOME Notice of Funding Availability
attached hereto as Exhibit B is hereby adopted.
SECTION 4. Severability. 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 S. F ective 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
day of , 2014.
LA kV--
Greg Wh ler, Council President
APPROVED AS TO FORM: ATTEST
RO ER A. LUBOVICH, C' ttorney SH NN;O_- .CORIN, City Clerk
R: \Legal \Legal \Resolutions \Community Development\2015 CDBG HOLE Vo ficy Plan.doc
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2015 CDBGIHOME Policy Plan
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2015 CDBG /HOME
POLICY PLAN
IF- CDBG /HOME POLICY PLAN
Contents
Community Development Block Grant Program ....... ..............................1
CDBGFunding ..................................................... ..............................1
HOMEFunding ..................................................... ..............................3
Allocation Process .......... ............................... .... ..............................4
Policies & Regulations for Use of Funds ............................. ..............................6
Citizen Participation Plan ......................................... .............................12
Consolidated Plan ................................................. .............................12
Appendix A — Citizen Participation Plan
Appendix B — Requirements for Section 108 Loan Guarantee
Appendix C — Consolidated Plan Objectives & Strategies
Appendix D — CDBG Eligibility Requirements & Program Rules
Appendix E — HOME Eligibility Requirements & Program Rules
Appendix F — Anti - Displacement & Relocation Assistance Plan
Appendix G — Glossary
CDBG /HOME Policy Plan 1 2015
IF- 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, 42% 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.
IF- 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 APPLICANrRECIPIENT?
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:
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CDBG /HOME Policy Plan 1 2015
• Demonstrate an active governing body or board of directors with skills and
experience to provide leadership and direction to the agency.
• 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.
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CD BG/HOME Policy Plan 1 2015
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.
I F- 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:
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CDBG /HOME Policy Plan 1 2015
• 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
I [-- 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, and Consolidated Homeless 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.
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 Notice of Funding Availability (NOFA) 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 Recommendation 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 NOFA 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.
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CDBG /HOME Policy Plan 1 2015
FORMS OF ASSISTANCE
Kitsap County: Funds will be provided in the form of a grant except HOME projects obtaining tax
credits may be provided a loan. Loan terms will be negotiable and be determined at the time of
underwriting review.
City of Bremerton Funds will be provided in the form of a grant except 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?
The CDBG and HOME programs allow certain set - asides to further specific program goals. The
City and County set additional funding targets to help meet local objectives. The following is the
distribution for Kitsap County and the City of Bremerton (local targets in italic):
CDBG
• Public Service Projects - 15% max
• Planning & Administration — 20% max
o Planning applications not accepted due to insufficient funding
• Capital Projects — 65%
• Economic Development — 10% of capital
• City of Bremerton Down Payment Assistance set -aside - $20, 000
HOME
• Administration - 10% max
• Community Housing Development Organization (CHDO) Set -Aside —15% min
• Capital Projects— 75%
o City of Bremerton Down Payment Assistance set -aside - $30, 000
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 Kitsap Regional Coordinating
Council (KRCC) and Bremerton City Council, the application is made available on -line.
Interested organizations can find the application and all associated information on the County
web site athttp:// www. kitsapgov .com /hs /block_grant_program /cdbg.htm, under Application
Cycle, or on the City web site at http: / /www.ci .bremerton.wa.us /disi)lay.php ?id =864 The
schedule for the annual application cycle, including the due date for applications, is also
available on the web site. Interested organizations may also contact Block Grant staff to
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CDBG /HOME Policy Plan 1 2015
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 contracts are executed, CDBG and HOME funds can only be
disbursed on a reimbursement basis.
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 /hs /block grant program /cdbq.htm (click on Guidebook) or on the City
web site at http: / /www.ci .bremerton.wa.us /display.php ?id =1206 .
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
Agencies that are currently.receiving County or City CDBG or HOME funds, who are
applying for funds, must be in compliance with all terms of their current agreement(s)
and must not have outstanding audit findings, monitoring findings or concerns related to
prior year's funding.
2. Contract Retainage for Federal Compliance
City /County will withhold up to 20% 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 use income to determine who is eligible for
services or housing. Per HUD, income must be defined in one of two ways under the
CDBG and HOME programs; subrecipients must select one method which it will use for
the duration of each program /project (rental housing projects must use the Part 5
definition):
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CDBG /HOME Policy Plan 1 2015
➢ Annual income as defined in 24 CFR 5.609, referred to as "Part 5 annual
income ", or;
➢ 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: / /Porta1.hud.gov /hudportal /HUD ?src = /program offices /comm planning /affordableho
using /library /modelguides /2005/1780
4. Project/Activity Delivery Costs
Block Grant staff costs directly related to carrying out a funded activity may be charged
to the subrecipient grant award, reducing the amount available to the subrecipient.
Project/Activity delivery costs will be charged back to capital projects only, for staff duties
including but not limited to carrying out NEPA compliant environmental review, fulfilling
Davis Bacon Certified Payroll review and enforcement, underwriting loans and housing
inspections. For example, an agency is awarded $50,000 for a capital project, block
grant retains $2,500 for completing the NEPA review, and the subrecipient agreement is
written for $47,500. Staff reports the full award of $50,000 to HUD in the annual Action
Plan.
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.e. Funds awarded for
2014 must have an agreement executed by Dec. 31, 2014).
➢ In certain circumstances a conditional commitment of funds may be made for
Capital projects that do not have all project funds committed at the time of
recommendation. If after 18 months of conditional commitment (from the
beginning of the program year, January 1) all funds have been committed, the
subrecipient will enter into a formal written agreement with the Block Grant
Program. If all project funding has not been secured within the 18 months the
conditional commitment will be canceled and the funds will be allocated in the
next funding round.
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.
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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. For more information on specific rules and requirements of the HOME program, including
determining whether your project is eligible, please see Appendix E HOME Eligibility
Requirements and Program Rules.
C. CDBG FUNDING - SPECIFIC REQUIREMENTS
1. For more information on specific rules and requirements of CDBG, including meeting a
National Objective, please see Appendix D CDBG Eligibility & Program
Requirements.
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, acting as subrecipeints, 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.
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CDBG /HOME Policy Plan 1 2015
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 a third -party 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 Section E of the
CDBG /HOME Guidebook on the Kitsap County or City of Bremerton Block Grant Program
web sites.
F. ENVIRONMENTAL REVIEW
1. Environmental Review (24 CFR Part 58)
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. Additional information on environmental review requirements can
be found in Section F of the CDBG /HOME Guidebook on the Kitsap County or City of
Bremerton Block Grant Program web sites.
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.e. Phase I Environmental Site Assessment, Geotechnical
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 Housing 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
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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
Additional information on equal opportunity and accessibility can be found in Section G
of the CDBG /HOME Guidebook on the Kitsap County or City of Bremerton Block Grant
Program web site.
H. LABOR STANDARDS & CONSTRUCTION
1. Equal Opportunity for Employment and Contracting
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. Minority/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.
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CDBG /HOME Policy Plan 2015
b. Contract Work Hours and Safety Standards Act Provides that mechanics and
laborers employed on federally assisted construction jobs 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.
More information on Davis Bacon requirements can be found in Section I of the
CDBG /HOME Guidebook on the Kitsap County or City of Bremerton Block Grant
Program web sites.
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. Information on Lead -Based
Paint requirements can be found in Section I of the CDBG /HOME Guidebook on the
Kitsap County or City of Bremerton Block Grant Program web sites.
4. Compliance with Codes & Standards for Rehabilitation and New Construction
a. All capital projects funded with CDBG or HOME must comply with local building 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 Uniform Physical Conditions Standards inspection.
d. All housing must comply with the applicable accessibility requirements for persons
with disabilities.
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.
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CDBG /HOME Policy Plan 1 2015
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 Kitsap County /City of Bremerton Block Grant Program Citizen Participation Plan
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
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 long -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
12
CDBG /HOME Policy Plan 1 2015
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.
13
Appendix A
Citizen Participation Plan
(Updated 4/16/2014)
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 2
CITY OF BREMERTON AND KITSAP COUNTY
CITIZEN PARTICIPATION PLAN
Introduction
Kitsap County and its consortium cities of Port Orchard, Poulsbo and Bainbridge Island receives
both Community Development Block Grant (CDBG) and Home Investment Partnership (HOME)
funds. The City of Bremerton receives Community Development Block Grant funds as its own
entitlement, and HOME funds through its membership in a Consortium with Kitsap County.
Both the City of Bremerton and Kitsap County are committed to assuring opportunities for
citizen involvement in decisions concerning activities taking place within their communities.
Each year the City of Bremerton and Kitsap County are eligible to receive CDBG and HOME
funds. There are specific rules and regulations governing the allocation and use of the funds,
including provisions for citizen involvement in decision making. In order to facilitate citizen
involvement, both jurisdictions adopt a Citizen Participation Plan.
Beginning in 2011, Kitsap County and the City of Bremerton Block Grant Programs joined with
the Homeless Housing Grant Program and Affordable Housing Grant Program to develop a
combined funding & application process. The combined process includes a single application for
funds, a single Grant Recommendation Committee (GRC) process and funding
recommendation. Funding recommendations are approved by the Kitsap Regional Coordinating
Council (KRCC) for County CDBG /HOME funds and by the Bremerton City Council for City
CDBG /HOME funds.
Purpose
The purpose of the Citizen Participation Plan is to provide an on -going mechanism to ensure
widespread citizen participation whereby all citizens have an opportunity to fully express their
needs and wishes for community improvement. Special efforts will be made to encourage
participation by:
• Low- and moderate - income persons, particularly those living in slum and blighted
areas.
• Residents of predominately low- and moderate - income neighborhoods.
• Minorities and non - English speaking persons, as well as persons with disabilities.
This plan provides opportunities for representation of all of the citizens of Kitsap County and the
City of Bremerton by allowing them to have a voice in the decision - making process and giving
them greater power and control over activities taking place within their communities.
Annual Allocation Process / Action Plan Submission
Together the entitlement jurisdictions conduct a competitive annual process to determine
allocation of CDBG and HOME funds. The public is encouraged to participate in the process
and its end product —the submission of an annual Action Plan to HUD.
A. Notice of Funding Availability & Application
In April of each year a notice will be published in the newspaper of record to announce
funding availability and provide an opportunity for comment on the CDBG /HOME Policy
Plan. This notice will begin a 30 -day comment period on the Policy Plan (including the
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 3
Citizen Participation Plan) and include the date and time of public hearings to take citizen
comments. Notifications will also be sent to any agency or organization who requests to be
placed on our interested parties email list.
Notifications will also be available to any agency or organization who signs up on the Kitsap
County Block Grant web site to receive notices. To sign up go to:
http: / /www.kitsapgov.com /hs /block grant program /Application Cycle.htm and at the top of
the page click on the link to receive text or email updates. This link will take you to the
Kitsap County Electronic Notification System where you can sign up.
Upon approval of the Policy Plan by the Kitsap Regional Coordinating Council and
Bremerton City Council, information about the application and mandatory technical
assistance session will be available from:
Kitsap County Block Grant Division
345 6th Street, Suite 400, Bremerton, WA 98337 -1873.
http: / /www.kitsapgov.com /hs /block grant program /Application Cycle.htm or by contacting
Bonnie Tufts at btufts(a-co.kitsap.wa.us or by phone at 360- 337 -4606
and
City of Bremerton, Community Development Block Grant
3456 1h Street, Suite 600, Bremerton, WA 98337 -1873
http: / /www.ci .bremerton.wa.us /display.php ?id =864
or by contacting Marie Vila at marie.vila ci.bremerton.wa.us or by phone at 360- 473 -5375
Applications will be made available in a format accessible to persons with disabilities upon
request.
Application submittal instructions and due date are included in the Notice of Funding
Availability (NOFA). Applications must be submitted online and require access to the
internet.
B. Technical Assistance
At least one mandatory technical assistance session will be held for those interested in
applying for funding. During the . session, staff will provide information to citizens concerning
who can apply for funds, funds expected to be available, the range of activities that may be
undertaken, priorities for funding, application submission requirements, the application
deadline, and how decisions concerning funding will be made. The date and time of the
technical assistance session(s) will be published in the NOFA, included in the schedule
posted on the web sites.
In addition to the mandatory Technical Assistance described above, City and County Block
Grant staff is also available by appointment for one -on -one Technical Assistance to provide
guidance to citizens and organizations regarding specific project considerations.
At any time, any citizen may contact the City or County Block Grant Divisions for technical
assistance or general information in relation to programs described in this Plan. The
Department will help citizens understand CDBG and HOME funded programs, the
procedures for submitting proposals, the Citizen Participation Plan and other program
requirements so they can effectively participate in CDBG and /or HOME programs and the
funding process.
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 4
C. Application Review & Grant Recommendation Committee Process
Applications will be reviewed by Block Grant Staff to determine compliance with technical
requirements including eligibility for CDBG and /or HOME funds. Applications which are
found not eligible for CDBG or HOME funds or Homeless Grant Program or Affordable
Housing funds, will be disqualified and the applicant will be notified. Eligible applications will
be reviewed and evaluated by staff for organizational and financial capacityand will also be
provided to a Grant Recommendation Committee (GRC) for consideration The GRC will
review all proposals, interview applicants and develop recommendations for funding based
how they address needs & objectives identified in the 2011 -2015 Consolidated Plan and /or
Homeless Housing Plan, organizational and financial capacity of the organization to carry
out the program /project, project feasibility, and funding availability.
There are two Grant Recommendation Committees. The Services GRC reviews applications
for public services The Capital GRC reviews housing capital improvements,economic
development and CHDO operating applications. Both GRCs play an integral role in the
allocation of CDBG and HOME federal funds according to the needs of the community.
While all GRC members must be well- versed in the needs of the community and be willing
to participate in all the activities relevant to the GRCs, each individual GRC seeks members
who demonstrate specific skills and experience.
• The Services GRC seeks members who have experience in one or more of the following
capacities: background working with non - profit community service providers as an
employee, volunteer, board member or consumer; background with homeless programs;
grant experience, project management, compliance monitoring and /or practical
experience with HUD regulations.
• The Capital GRC seeks members who have experience in one or more of the following
areas: affordable housing; construction or project management; mortgage lending;
housing development; economic development; real estate; or architecture.
Each GRC will be comprised of 8 members as follows:
• Two members representing the City of Bremerton and appointed by the Mayor and
approved by the Bremerton City Council
• Three members appointed by Kitsap County Commissioners.
• Three members, one each appointed by the cities of Bainbridge Island, Port Orchard,
and Poulsbo
Applicant interviews will be conducted with the GRC. Applicants will have the opportunity
to present their project and the GRC will an opportunity to ask questions. At the
conclusion of interviews the GRC will formulate a funding recommendation for approval
by the KRCC and the Bremerton City Council. .
GRC members serve a one year term, but can be re- appointed to serve successive
terms.
D. Funding Recommendations & Action Plan
Organizations submitting applications will be notified whether or not the GRC has
recommended their proposal for funding. The notification will include the date, time and
place of the public hearings, during which the recommendations will be considered by the
Kitsap Regional Coordinating Council and the Bremerton City Council.
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 5
All projects approved for funding will be included in each jurisdiction's Action Plan. A
summary of each Action Plan will be published in the newspaper of record and on the City's
and County's websites. The summaries will describe the contents and purpose of the Action
Plans, and include a list of locations where copies of the entire proposed plans may be
examined. Citizens will be provided a period of at least 30 days to review and comment on
the plans. Comments or views of citizens will be considered at the public hearings, and a
summary of any comments or views not accepted and the reasons therefore, will be
attached to the final Action Plan which will be submitted to HUD.
The City of Bremerton and Kitsap County Block Grant staff will submit their Action Plans,
including the projects proposed to be funded, to HUD no later than November 15 of each
calendar year.
Five Year Consolidated Plan
The Consolidated Plan is the result of a process set forth by the Department of Housing and
Urban Development (HUD) to provide a planning and application process for the CDBG and
HOME programs within a single document. The Kitsap County HOME Consortium is required to
submit the Consolidated Plan for the HOME participating jurisdiction (which consists of Kitsap
County and the City of Bremerton). The Consolidated Plan is available online at:
• http: / /www.kitsapgov.com /hs /block grant program /Plans.htm
• http: / /www.ci .bremerton.wa.us /display.php ?id =790 (scroll down for a link to the documents)
• A printed copy may be requested from the Kitsap County or City of Bremerton Block Grant
Divisions
There are a number of specific elements in the 5 -Year Consolidated Plan, including:
• Needs Assessment: an assessment of housing needs (primarily of low and moderate
income people) and needs of homeless people;
• Housing Market Analysis: an analysis of the City of Bremerton's and Kitsap
County's housing market;
• Strategic Plan: a discussion of the City of Bremerton's and Kitsap County's priority
needs to establish goals and objectives for implementing strategies which address
housing and community development activities;
• Citizen Participation Plan
• Annual Action Plan: describes the activities that will be undertaken to address
priority needs utilizing HOME and CDBG grant funds during the upcoming program
year; and
• Consolidated Annual Performance and Evaluation Report (CAPER): describes
how funds were used in activities that provided benefits to low and moderate income
individuals and families during the previous program year.
Governments, service providers, citizens, and non - profit/for- profit agencies are encouraged to
identify needs and priorities, assist in the development of strategies, and to participate in the
annual allocation process. The following are specific opportunities for citizens to participate in
the development of the information to be incorporated in the Consolidated Plan, which is
updated every five years:
1. At least one community meeting will be held to obtain the views of citizens, public agencies,
and other interested parties concerning housing and community development needs,
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 6
including non - housing community development needs and priorities during development of
the plan.
2. The City of Bremerton and Kitsap County Block Grant staff will specifically consult with
appropriate social service agencies regarding the housing and community development
needs and priorities of children, elderly persons, persons with disabilities, homeless persons
and other persons served by such agencies.
3. The City of Bremerton and Kitsap County Block Grant staff will coordinate with the
Bremerton Housing Authority (BHA) and Housing Kitsap to encourage participation of
residents of public and assisted housing and other low- income residents of targeted
revitalization areas, in the process of developing and implementing the Consolidated Plan.
4. Agencies working with low- and moderate - income persons, particularly those living in slum
and blighted areas and residents of predominately low- and moderate - income
neighborhoods, minorities, non - English speaking persons, and persons with disabilities will
be contacted to encourage participation in the development of the Consolidated Plan.
Amendments to the Annual Action Plan
Citizens will be notified and have an opportunity to comment on any substantial amendments
proposed to the Annual Action Plan.
Substantial Amendments will be published in the City's and County's newspaper of record
and be subject to a 30 -day public comment period to allow for comment prior to
implementation of the proposed amendment. Substantial Amendments may be forwarded
for review by the appropriate GRC prior to submission to the KRCC or the Bremerton City
Council for final approval. Comments or views of citizens will be considered at the public
hearing, and a summary of any comments or views not accepted and the reasons therefore,
will be attached to the substantial amendment of the final Action Plan which will be
submitted to HUD. Substantial amendments include:
• Changes in the use of CDBG or HOME funds from one eligible activity to another
• Adding a new activity
• A substantial change to the purpose, scope, location or beneficiaries of the project as
defined in the application for funds and approved by the GRC.
CDBG or HOME activities awarded funds which have a substantial change in the purpose,
scope, beneficiaries, location or budget will be evaluated by Block Grant Staff and may be
required to submit a new application for funding in the next application cycle.
Projects not expending their full CDBG or HOME award will not trigger a substantial
amendment. These funds will be re- obligated to new projects during the following year's
regular application cycle.
Minor Changes: Any request for a change in the amount to be expended on a program or
project budget line item, or a minor change to the purpose, scope, location or beneficiaries
of the project as defined in the application for funds, shall not be considered a Substantial
Change requiring citizen notification and Annual Action Plan amendment; however, prior
written approval of these chances must be obtained from the appropriate Block Grant
Administrator
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 7
Minor project changes may need to be formalized as an amendment to the sub - recipient
Agency's contract with the City or County. The Agency will submit a written request for
change to the Block Grant Administrator stating the specific reasons for the requested
increase or decrease in funding, or change in purpose, scope, location or beneficiaries. All
requests will be reviewed, and approved or denied by the Block Grant Administrator.
Performance Reports
1. Both the Kitsap County Block Grant Division and City of Bremerton Block Grant Division will
prepare and submit a Consolidated Annual Performance and Evaluation Report (CAPER) to
HUD no later than March 31 st of each year for the previous calendar year.
2. The CAPER will be made available for public review. Notice of Availability will be published
in the newspaper of record and copies will be available on the County's and City's websites:
• Kitsap County: http: / /www.kitsapgov.com /hs /block grant program /Reports.htm
Copies are also available at the Kitsap County Block Grant Program Office, 345 6th
Street, Suite 400, Bremerton, Washington.
• City of Bremerton: http:// www. ci .bremerton.wa.us /display.php ?id =788 scroll down to
the year and CAPER file desired.
3. Citizens will be provided a period of at least 15 days to review and comment on the CAPER.
Comments or views of citizens will be considered in the report, and a summary of any
comments or views not accepted and the reasons therefore, will be attached to the CAPER
and submitted to HUD.
Public Hearings
By law, public hearings are required in order to obtain the public's view and to provide the public
with the City's and County's responses to public questions and proposals. A public hearing is
held in May for the approval of the next year's Policy Plan. A second hearing is held in
November to review the proposed use of funds and adopt the Annual Action Plan.
Notification of the public hearings and of 30 -day comment periods will be published in the
newspaper of record and will afford citizens, public agencies, and other interested parties a
reasonable opportunity to examine the proposed plans and to submit comments.
Kitsap County public hearings will be held during the regular meeting of the Kitsap Regional
Coordinating Council in the meeting chambers of the Norm Dicks Government Center. KRCC
meeting times and agendas can be obtained at http: / /www.kitsapregionalcouncil.org /
City of Bremerton public hearings will be held during Bremerton City Council meetings, which
are held every first and third Wednesday of the month, at 5:30 pm in the meeting chambers of
the Norm Dicks Government Center. Bremerton City Council agenda may be obtained at
http:// www. ci .bremerton.wa.us /display.php ?id =580
Public Comments
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 8
Interested persons may submit comments in writing during the public comment periods, or orally
at the public hearings. Written comments should be directed to:
Kitsap County Block Grant Program City of Bremerton
3456 1h Street, Suite 400 3456 1h Street, Suite 600
Bremerton, WA 98337 Bremerton, WA 98337
Complaints
All written citizen complaints will be referred to the appropriate person(s) or agencies for action.
Under normal circumstances, the Block Grant Division will respond to the person making the
complaint within 15 days. All complaints and responses will be kept on file.
Resources
Newspaper of Record: Notification will be placed in the following newspaper under
Legal Notices at least ten days before a public meeting is held concerning a program
described in this plan:
Kitsap County Block Grant — The Kitsap Sun
City of Bremerton Block Grant — The Kitsap Sun
Notices may also be published on City and County websites, as follows:
Kitsap County Block Grant Division:
http: / /www.kitsapgov.com /hs /block grant program /Legal Ads.htm
City of Bremerton Block Grant Program:
http:// www. ci .bremerton.wa.us /display.php ?id =788
The notice will indicate when and where the public meeting will be held. Meetings are
often held at the following location:
Norm Dicks Government Center, 1s' Floor Meeting Chambers
3456 th Street
Bremerton, WA 98337
APPENDIX A - CDBG /HOME CITIZEN PARTICIPATION PLAN UPDATED 4/16/2014
PAGE 9
Appendix B
Requirements for
Section 108 Loan Guarantee
SECTION I — GENERAL GUIDELINES
A. Introduction
Section 108 is the loan guarantee provision of the U.S. Department of Housing and
Urban Development's (HUD) Community Development Block Grant (CDBG)
program. Section 108 enables grantees to leverage their CDBG funds by borrowing
up to five times their CDBG allocation. Section 108 loans provide long term, low -cost
financing with flexible terms. The funds are available year- round, on a non-
competitive basis and for a wide variety of uses.
HUD provides a full faith and credit guarantee of notes issued by public jurisdictions
and sold to private investors. In turn, public jurisdictions are required to pledge
CDBG funds as collateral for the loans. These funds are not escrowed and grantees
may continue to use CDBG funds as planned. Additional collateral is also required,
which provides a safeguard to reduce the risk to CDBG funds. Collateral may be
project -based such as a lien on real property or based on other types of security
unrelated to the Section 108 project. In most cases, Section 108 loans do not count
against a community's bonding authority and are not used to determine credit
worthiness of the community by private credit rating agencies.
The Loan Program is administered by the Kitsap County Block Grant Program for
County funds and by the City of Bremerton Block Grant Program for City funds. All
loans require approval from the Kitsap Regional Coordinating Council and Board of
County Commissioners for County loans, or the Bremerton City Council for City
loans.
B. Section 108 Loan Program Criteria
Eligible Applicants:
• Private companies;
• Governments,
• Public agencies;
• Non - Profit institutions;
• For - Profit and Not - for - Profit owners of multi - family projects.
All projects must be located in Kitsap County and for projects using City funds the
project must be located in the City of Bremerton.
Eligible Activities:
• Economic development activities eligible under the CDBG program including
assistance to for - profit businesses.
• Acquisition of real property;
• Rehabilitation of publicly owned real property;
• Clearance, demolition, and removal on acquired or rehabilitated public property
(including environmental cleanup);
• Site preparation including construction, reconstruction, or installation of public
improvements related to property acquired or rehabilitated using Section 108
funds or for economic development purposes;
• Acquisition, construction, reconstruction or installation of public facilities;
• Housing rehabilitation eligible under CDBG;
• Housing construction as part of community economic development (in limited
circumstances);
• Relocation costs;
• Debt service reserves; and
• Payment of interest on the guaranteed loan and issuance costs of public
offerings.
Meeting a National Objective:
• CDBG regulations apply to the Section 108 loan guarantee program. All projects
must either:
✓ Principally benefit low and moderate income persons;
✓ Aid in the elimination or prevention of slum and blight; or
✓ Meet an urgent need of the community
C. Projects Eligible for Section 108 Loans
1. Economic Development Projects:
Examples of economic development projects include loans made to a for - profit
business, development of a business or industrial park, construction or
reconstruction of infrastructure to support business, or implementation of a
redevelopment project. In each of the following examples the project must create
new job opportunities for low and moderate income persons. Examples include:
a. Business Loans — funding provided to a local firm for expansion of its
operations.
b. Business /Industrial Park — funding provided to purchase real estate for
the development of a business or industrial park.
c. Redevelopment Project — funds could be used for the acquisition,
relocation, rehabilitation of buildings, and clearance of site(s) for
redevelopment purposes.
2. Housing Projects:
Examples of housing projects that are eligible for Section 108 loans include
rehabilitation, acquisition of sites for new development, homeownership, etc. All
housing type activities must be affordable to low and moderate income persons
and be eligible under CDBG.
3. Community Development:
Large scale public facilities and infrastructure type projects may be undertaken
with Section 108 loan funds. These projects must benefit the low and moderate
income population of the area in which they are intended to serve. Examples of
Community Development projects include:
a. Parks & Recreation — funds may be used for the expansion of an existing
park facility or the development of a new facility.
b. Streetscape Improvements — funds may be used to provide loans /grants
for building facade improvements, streetscape work such as tree planting,
walks, curbs, signage, etc.
c. Infrastructure Improvements — for the construction or reconstruction of
roads, streets and public utilities.
d. Public Facilities — funds may be used for purchase, rehabilitation or
construction of public facilities which principally benefit low /mod income
persons.
D. How The Program Operates
1. Maximum Commitment Amount
An entitlement entity (County or City) may apply for up to five times the public
entity's latest CDBG entitlement amount, minus any outstanding Section 108
commitments or principal balances on Section 108 loans. This amount is
published annually in the Application.
2. Financing Source
Section 108 obligations are financed annually through underwritten public
offerings in which fixed rate notes are sold to private investors. To ensure
marketability of Section 108 notes HUD provides a 100% full faith and credit
guarantee to investors. Financing between public offerings is provided
through an interim lending facility established by HUD. Although HUD
coordinates the funding process, it does not have a direct role in the flow of
funds.
3. Security
Security for the loan guarantee includes a pledge by the public entity of its
current and future CDBG funds. The CDBG funds are not escrowed and may
continue to be used as planned. Additional security is also required, which
provides a safeguard to reduce the risk to CDBG funds. The additional
security requirements will be determined on a case -by -case basis.
4. Loan Repayment
The maximum repayment period for a Section 108 loan is 20 years. Interim
loan interest payments are due quarterly on the first day of the months of
February, May, August, and November. On permanent loans, principal
payments are due once a year on August 1 and interest payments are due
twice a year on August 1 and February 1. HUD has the ability to structure the
principal amortization to match the needs of the project and borrower.
5. Prepayment
Investors buying the Section 108 notes are guaranteed the timely payment of
principal and interest for a ten -year period. Technically, the borrower cannot
prepay the loan during this period. However, by guaranteeing the income
stream to the investor through a deposit of funds with a Fiscal Agent, the
borrower is defeasing or voiding the Section 108 obligation. Interim loans may
be prepaid at any time without penalty. Jurisdictions do have the options of
remaining in the interim financing facility for the term of the loan.
6. Interest Rates
Interest rates on interim borrowing are priced at the three -month London
Interbank Offered Rate (LIBOR) plus 20 basis points (0.2 %). Interest rates on
obligations sold in public offerings will be determined by market conditions at
the time but generally will be slightly lower than yields on Federal agency
securities (e.g. Fannie Mae and Freddie Mac) with comparable terms.
7. Financing Fees
The only financing fees of the Section 108 program are those related to
issuance of the Section 108 notes, such as fees to the underwriters and the
Fiscal Agent and any other expense related to the offering. Total financing
fees will generally be one -half to one percent (0.5% - 1.0 %) of principal. No
additional maintenance fees are charged for permanent Section 108 notes.
Interim loans are charged a $100 quarterly fee.
8. Regulations
All CDBG program regulations such as citizen participation, Davis - Bacon, and
relocation /displacement compliance must be met. The environmental
assessment must be completed prior to incurring or expending any project
costs.
SECTION II — UNDERWRITING STANDARDS & GUIDELINES
A. Underwriting Standards & Guidelines
Kitsap County and The City of Bremerton Block Grant Programs have developed
standards for financially underwriting and evaluating the eligibility of potential
projects for Section 108 loan financing. The size and scope of certain proposed
projects will dictate the level of review required. The staff and consultant costs
associated with the financial review and underwriting will be charged to the
applicant. After an initial review of a project for eligibility an Application must be
submitted to be considered for the Section 108 loan. At that time an agreement
between the jurisdiction (County or City) and the applicant will be executed and
include a scope of work and budget to complete the application review and
processing of submission to HUD.
B. Objectives of Financial Review
The objectives of the financial review of each application are the same as the HUD
Guidelines and Objectives for Evaluating Project Costs and Financial Requirements
that are found in Appendix A to Part 570 of the Federal Regulations. These
objectives are to ensure:
➢ Project costs are reasonable;
➢ Sources of project funding are committed;
To the extent practicable, Section 108 funds are not substituted for non-
federal financial support;
➢ Project is financially feasible;
➢ To the extent practicable, the return on the owner's equity investment will not
be unreasonably high (in the case of a loan to a private firm); and
➢ To the extent practicable, the Section 108 loan funds are disbursed on a
proportional basis with other finances provided to the project.
County will also be evaluating p rojects using the following criteria:
The City and Cou y g p � g g
➢ Is the project feasible and is it supported by market studies, engineering
studies, housing studies, feasibility studies, etc.;
➢ Is the project site /location suitable for this project;
What is the capacity and capability of the project development team;
Does the project meet the eligibility criteria of the Section 108 loan program;
➢ What is the public benefit to be derived from the project; and
;0- What are the sources of loan repayment.
C. Application
Applications for Section 108 loans are accepted year round. If you are interested in
submitting an application you must first meet with the County or City to determine
the eligibility of your project. For projects within the City of Bremerton please contact
Marie Vila at 360- 473 -5375 or Marie.Vila(ab-ci.bremerton.wa.us . For projects in
Kitsap County please contact Bonnie Tufts at 360- 337 -4606 or
btufts(�co.kitsap.wa.us
Appendix C
Consolidated Plan Objectives & Strategies
HUD Program Goal: Decent Housing — including:
• Assisting homeless persons to obtain affordable housing;
• Assisting persons at risk-of becoming homeless;
• Retaining the affordable housing stock;
• Increasing the availability of affordable permanent housing for low- income and
moderate - income families.
• Increasing the supply of supportive housing which includes structural features
and services to enable persons with special needs to live in dignity and
independence; and
• Providing affordable housing that is accessible to job opportunities.
Housing Objectives
H -1 Improve and preserve the quality of affordable housing in the Consortium,
including both owner occupied and rental housing, serving low- income
households.
H -2 Provide a range of affordable housing types and densities while emphasizing
high quality development, proximity to transportation and services, adequate
public infrastructure and efficient use of land.
H -3 Promote fair housing for all members of the community without discrimination on
the basis of race, color, religion, sex, national origin, familial status, disability or
sexual orientation.
H -4 Expand homeownership opportunities for low - income homebuyers.
H -5 Promote credit counseling and homeownership financing counseling to
discourage predatory lending practices, promote financial education, and provide
equal financial opportunities to all.
H -6 Expand housing opportunities through an increase in the supply of decent, safe,
and affordable rental housing, rental assistance and supportive housing with
services.
H -7 Evaluate, and when present reduce, lead based paint hazards.
H -8 Improve the safety and livability of low - income neighborhoods.
2 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
Housing Strategies
1. Acquisition and New Construction: The Consortium will support land
acquisition, development and construction of new affordable housing units.
Housing constructed on
• the land may be rental or ownership. Ownership housing to target very low -
income and
• low- income, households; rental housing to target extremely low- income and
very low- income households. (H -2, H -4, H -6)
2. Energy Efficiency Measures: Preserve and improve energy efficiency of
affordable housing units through weatherization and other efficiency measures.
(H -1, H -7)
3. Fair Housing: The Consortium will provide for fair and equal housing
opportunities for all persons through the following activities:
• Conduct an annual Fair Housing educational seminar for housing providers,
real estate professionals and lenders. (H -3)
• Provide no -cost fair housing educational resources and referral. (H -3)
• Update the Kitsap County & City of Bremerton Analysis of Impediments to
Fair Housing. (H -3)
4. Homebuyer assistance: The Consortium will support assistance to very low -
income and low- income homebuyers to subsidize the purchase of a home. (H-4)
5. Mixed- Income Projects: Support mixed - income housing projects that include
affordable units through targeted use of funds for units which will be occupied by
households with incomes at or below 80% AMI. (H -2, H -4, H -6)
6. Multi - Family Rental Rehab: The Consortium will support acquisition and
rehabilitation of existing multi - family rental housing. (H -1, H -6)
7. Neighborhood Improvement: Implement housing and neighborhood
improvement programs through targeted neighborhood programs, education,
housing rehabilitation and related services, and other public improvement
projects. (H -8, H -2)
8. Owner - occupied Single - Family Rehab: The Consortium will use CDBG funds
to provide owner occupied housing rehabilitation assistance in the form of major
rehabilitation loans, emergency repair loans, and home safety repair grants. (H -1,
H -7)
9. Preservation of Housing: Support the preservation of affordable single family
housing through purchase and rehabilitation of homes in low -mod areas. Special
consideration will be given to projects addressing foreclosed and abandoned
properties and blighting conditions. (H -1, H -8)
3 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
10. Rental Assistance: The Consortium will consider support of a tenant based
rental assistance program to address the high number of households on Section
8 Housing Choice Voucher wait lists and the large number of households who
cannot afford fair market rent. (H -6)
11. Revitalization: Identify slum and blight areas and assess for revitalization. (H -8)
12. Shared Housing: Support shared housing programs that match low- income
people in need of affordable housing with those who have housing to offer or
share. (H -2, H -6)
Special Needs Objectives 91.215(e)
SNH -1 Increase the supply of permanent supportive housing for special needs
populations
SNH -2 Preserve existing special needs housing.
SNH -3 Improve access to services for those in special needs housing.
SNH -4 Improve housing accessibility and safety in both new and existing housing.
SNH -5 Reduce barriers to stable housing by encouraging collaboration among
service providers.
Special Needs Strategies
1. ADA Improvements: Modify and improve homes occupied by the frail elderly
and persons with permanent physical disabilities. These modifications and
improvements will be focused on improving the safety and accessibility of the
home and meeting ADA standards. (SNH -4)
2. Community -wide Housing Initiatives: The Consortium will work collaboratively
with service providers, housing providers, and other governmental agencies to
reduce barriers to housing through (SNH -5):
• Active participation in, and support of, the Kitsap Continuum of Care and
Kitsap Housing Coalition.
• Efforts to implement a streamlined intake system in Kitsap County.
3. Develop Supportive Housing: Develop and construct special needs and
supportive housing. Activities may include the purchase of land, site development
and construction. Services should be integral to the housing. (SNH -1)
4 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
4. Preserve Supportive Housing: Preserve supportive and special needs housing
through funding of supportive services and rehabilitation of existing facilities. The
housing must be owned and operated by a public agency or a private nonprofit
and be occupied by the special needs population. Skilled care facilities are also
eligible for assistance. (SNH -2)
5. Transit Oriented Housing: Locate housing intended for special needs groups in
proximity to public transportation and services required by the special needs
group occupying the housing. Where possible provide supportive services as a
resident service on site. (SNH -3)
Homeless Objectives
HH -1 Provide well targeted efforts toward those people who would become homeless
without intervention.
HH -2 Delivery of temporary, emergency services and shelter to homeless as
stabilization efforts to permanently house these individual begins.
HH -3 Services and housing aimed at providing stable, permanent living conditions in
which an individual or family may thrive.
HH -4 Ensure a safe, decent and affordable housing inventory in our community, to
appropriately house people with wide range of needs.
Homeless Strategies
1. Affordable Housing: Build, create, preserve, and maintain more affordable
housing across the spectrum for all low and moderate income persons, as a key
piece in the community's continuum of housing. (HH -1, HH -3; HH -4)
2. Alternatives to traditional Emergency Shelters: Explore short term solutions
to supplement the low supply of emergency shelter such as: safe park, tent city,
pieces of home, and others, as listed in the Homeless Housing Plan. (HH -2)
3. Create Housing First Units: Create Housing First units for priority homeless
populations such as veterans, women, and families, youth, reentry, and chronic
homeless. (HH -2; HH -3; HH -4)
4. Discharge Planning: Provide discharge planning for those individuals being
released from institutions including correctional facilities, hospitals, homeless
programs and foster care. (HH -1)
5. Economic Independence: Provide education and training to support economic
independence through living -wage jobs, including literacy programs, financial
5 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
education and credit/debt counseling, employment and job training, ESL and
basic education. (HH -1; HH -3; HH -4)
6. Existing Emergency Shelters: Support the operations of existing Emergency
Shelters. (HH -2)
7. Flexible Housing: Create more units that can be used for families to transition in
place from emergency shelter to transitional or permanent housing, including in
combination with Housing First model. (HH -2; HH -3)
8. Foreclosure /Eviction Prevention: assistance through financial and basic skills
counseling, mediation in housing courts, and provide housing alternatives such
as community land trust ownership and homeshare rental models. (HH -1)
9. Gap Assistance: Provide assistance to those in need to prevent eviction and
foreclosure, including support of basic services such as food provision,
transportation, utility and housing costs, etc. (HH -1; HH -4)
10. Hygiene Center: Build a hygiene center with supportive services to address the
immediate and everyday needs of the homeless and chronically homeless.(HH-
2)
11. Innovative Housing Models: Explore housing models that are intrinsically more
sustainable as affordable units, such as Community Land Trust, Homeshare, etc.
(HH -1; HH-4)
12. New Emergency Beds: Create new emergency shelter beds for priority and
underserved homeless populations such as veterans, women, and families,
youth, reentry, and chronic homeless. (HH -2)
13. Permanent Supportive Housing: Continue to support the operations and plan
for future need through preservation, acquisition and development of Permanent
Supportive Housing for our community's special needs individuals, including
physically, mentally, and developmentally disabled, disabled veterans, and
chronic substance abusers. (HH -3; HH -4)
14. Supportive Services: Enhance the effectiveness of homeless prevention
strategies and homeless emergency response through delivery of a continuum of
supportive services. (HH -1; HH -2; HH -3; HH -4)
15.Transitional Housing: Continue to support transitional housing as a key piege of
our community's response to homelessness, but with an eye to finding a
permanent housing solution as soon as possible. (HH -2; HH -3)
16. Unconditional Housing: Convene a task force to research "Unconditional
6 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
Housing" and how this will fit into our homeless housing plan. Recommendations
from this task force integrated into the 2011 update of the Kitsap Homeless
Housing Plan. (HH -3; HH -2; HH -4)
HUD Program Goal: A Suitable Living Environment — which includes:
• Improving the safety and livability of neighborhoods;
• Eliminating blighting influences and the deterioration of property and facilities;
• Increasing access to quality public and private facilities and services;
• Reducing the isolation of income groups within areas through spatial de-
concentration of housing for lower income persons and the revitalization of
deteriorating neighborhoods;
• Restoring and preserving properties of special historic, architectural, or aesthetic
value; and
• Conserving energy resources and use of renewable energy resources.
Community Objectives — Public Services
PS -1 Support the provision of services providing basic needs to low income and
special needs individuals and families in crisis.
PS -2 Ensure access to programs that promote prevention and early intervention
related to a variety of social concerns which can cause long -term instability.
PS -3 Increase self - sufficiency and independence for low- income and special needs
populations.
Community Strategies — Public Services
1. Childcare Services: Assist with childcare services for target income working
families either in conjunction with existing programs or through new childcare
facilities. (PS -1, PS -3)
2. Crisis Intervention: Support crisis intervention services. (PS -2)
3. Disabled Services: Assist social services providers with services for persons with
disabilities. Services may include recreation programs, advocacy services, home
meal /visitation programs, job training, transportation, and health services, among
others. (PS -1, PS -3)
4. Domestic Violence and Abuse Services: Support services that prevent and
mitigate effects of domestic violence, physical and sexual abuse through counseling
and education. (PS -1, PS -2)
7 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
5. Health Services: Assist in the provision of health services (including oral, mental
health and substance abuse issues) to residents. These services may include
referrals, counseling, screening, education and outreach, health programs, or
medical services. (PS -1, PS -2)
6. Homeless Services: Provide supportive services to all homeless populations,
including Job Training & Employment, Substance Abuse Treatment/Detoxification,
Health Care (Medical, Dental, Mental), Case management/Life skills /credit
counseling, Education, Housing Placement. (PS -1, PS -2, PS -3)
7. Housing Services: Support and expand programs facilitating housing stability
through technical assistance, housing counseling, debt counseling, credit
management, rights of the consumer and fair housing referral and other services
such as matching households with sustainable housing, with a focus on alleviating
community's inventory of vacant and foreclosed properties. (Meets Housing
Objective H -5, funded under Public Service)
8. Human Services: Support social services programs, including case management,
that meet the basic human needs of low- income persons with an emphasis on
meeting priority needs.(PS -1, PS -2)
9. Information and Referral, Outreach and Advocacy: Support efforts to provide
information on existing services to those in need of services and to refer individuals
in need of services. (PS -1, PS -2)
10. Self sufficiency programs: Support programs providing education allowing
individuals and families to help themselves make live- improving changes toward
self- sufficiency, such as literacy programs, financial education, life- skills training,
employment skills training, and other programs. (PS -3)
11. Senior Services: Assist with the provision of senior services to the elderly and frail
elderly. Such services may include nutrition programs, home - delivered meal
programs, transportation, health services, shared housing programs and other forms
of assistance. (PS -1, PS -3)
12. Single Point of Entry: Support the implementation of a single point of entry for
information, referral and access to services. (PS -2)
13. Transportation Services: Expand programs enabling low income residents access
to services, facilities and employment through support of transportation programs
and subsidies. (PS -3)
14. Youth Services: Support a variety of youth services, including recreation,
mentoring, education and nutrition services for the community's target income young
8 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
people. Support may include direct assistance or fee waivers for target income
groups. (PS -1, PS -3)
Community Objectives — Public Facilities & Infrastructure
PF -1 Improve the infrastructure and physical environment of the Consortium's Low -
and Moderate- Income areas.
PF -2 Enhance the quality of life through creation and improvement of recreational
spaces and public facilities in Low -Mod areas.
PF -3 Increase self - sufficiency and independence for low - income and special needs
populations.
PF -4 Improve and increase when needed, public facilities which serve the needs of
low - income and special needs populations.
Community Strategies — Public Facilities & Infrastructure
1. Removal of Barriers: Provide suitable access to public facilities in the cities and
County by removing architectural barriers. Remove barriers to the safe travel of
persons with disabilities that exist in the public right -of -way, as identified in
community -wide plans. (PF -3)
2. Right -of -way Improvements: Make improvements to the public right -of -way to
improve appearance and extend useful life where deteriorating infrastructure
contributes to blighting conditions.
3. Eliminate Slum & Blight: Address slum and blight by targeting housing
rehabilitation, neighborhood revitalization programs, and code enforcement to
designated areas (PF -1)
4. Recreational Facilities and Upgrades: Participate in funding the construction
and expansion of recreational facilities, including public parks and recreational
facilities to serve low and moderate income persons in Low -Mod area
neighborhoods (PF -2).
5. Transportation Access: Increase transportation access for special needs
populations (PF -3)
6. Public Facilities: Construct and /or improve public facilities that provide
programs and services addressing the needs of low income and special needs
populations (PF -2, PF 4).
9 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
7. Urgent Need: Meet urgent Community Development needs, which pose a
serious and immediate risk to public health or safety.
HUD Program Goal: Expanded Economic Opportunities — which
includes:
• Job creation and retention;
• Establishment, stabilization and expansion of small businesses (including
microbusinesses)
• The provision of public services concerned with employment;
• Availability of mortgage financing for low- income persons at reasonable rates
using non - discriminatory lending practices;
• Access to capital and credit for development activities that promote the long -term
economic and social viability of the community; and
• Empowerment and self- sufficiency for low- income persons. to reduce
generational poverty.
Economic Objectives
E -1 Increase the number of applicants for living wage jobs.
E -2 Expand economic opportunities for very low- and low - income residents and
reduce the number of persons with incomes below the poverty level.
E -3 Increase employment opportunities for low - income persons.
E -4 Support business development and expansion to create more jobs.
Economic Strategies
1. Education and Training Opportunities: Work with and support Kitsap County
community colleges and technical schools in matching training programs to major
Kitsap County employer needs (E -1).
2. Local Small Business Consortium: Support local small business development
consortium to carry out networking, collaborative and strategic efforts to expand
economic opportunity to low income individuals throughout Kitsap County.
3. Incumbent Worker Training: Support and expand incumbent worker training to
low- income workers to improve job security and improve opportunities for
advancement (E -2, E -4).
10 1 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
4. Career Pathways Programs: Support the expansion of Career Pathways
programs. These programs are a series of connected education and training
programs and support services that enable individuals to secure employment
within a specific industry or occupational sector, and to advance over time to
successively higher levels of education and employment in that sector (E -2).
5. Local Hiring and Disadvantaged Business Policy: Where required, the
County and City will assure implementation of federal policies for the hiring of
small and local businesses ( "Section 3 "), and the employment of minority and
women owned businesses. The County and City will encourage these practices
when not required (E -2).
6. Job - Training and Preparation Services: Support job'training, preparation,
retraining, incumbent training, and employment search services for low- income
persons (E -3).
7. Job Creation: - Participate in providing infrastructure or facilities to provide for
business expansion or development to offer employment opportunities
throughout the County (E -4).
8. Small Business Funding: Provide capital (loan or grant) to small businesses to
expand capacity and create or retain jobs for low income persons (E-4).
9. Small /Micro Business Assistance: Provide technical assistance, advice, and
business support services (including assistance in developing business plans,
securing funding, conducting marketing, etc.) to new and expanding businesses
(E-4).
10. Small Business Development: Support small business development programs
through program and capital funding (E -6).
11 Appendix C - CDBG /HOME Consolidated Plan Objectives & Strategies
Appendix D
CDBG Eligibility Requirements &Program Rules
CDBG NATIONAL OBJECTIVES
AND ELIGIBILITY REQUIREMENTS
Every CDBG activity must meet a national objective and must be eligible in order to be funded and
each CDBG subrecipient agency must be able to demonstrate eligibility based on data collected. The
following information is provided to assist you in defining the eligibility and national objective that your
activity meets and the type of information you will need to gather from the population you serve to
provide to the City or County Block Grant offices. Specific regulations that govern the CDBG program
are available the Block Grant office.
What are the National Objectives? (Benefit Criteria)
An eligible CDBG activity must either
I. Principally benefit low and very low income
A. Area Benefit
B. Limited Clientele
1. At least 51 % of beneficiaries are low or very low income persons /households
a. Presumed Benefit
b. Agency Requires Client Information
c. Income Eligibility Requirement (Direct Benefit)
d. Nature /location
2. Removal of Architectural Barriers
3. Assistance to Owners of Microenterprises
4. Employment Support Services
C. Housing Activities (Residential)
D. Job Creation or Retention - Economic Development
II.Reduce or Eliminate Slum or Blight
A. Area Basis — Slum or Blight areas are designated by the County or City. At this time only the
City of Bremerton has designated Slum and Blight areas. Please contact the City of Bremerton
Block Grant office for a map and additional information.
B. Spot Basis — Slum and Blight may be targeted in an undesignated area for conditions that are
detrimental to public health and safety. Please discuss with City or County Block Grant staff.
III.Meet an Urgent Need
A. Urgent Need would be a natural disaster or federally declared disaster.
NOTE: The vast majority of CDBG activities funded are designed to benefit low and very low income
persons and households.
Appendix D - CDBG Eligibility Requirements & Program Rules Page 2
How Does A Proiect Meet a National Objective?
I. Principally benefit low and very low income
To meet this national objective, an applicant must document that the proposed project will benefit
predominantly low and very low income persons or households. A low income person /household is
one whose annual income does not exceed 80% of area median income -- a very low income
person /household is one whose annual income does not exceed 50% of the area median income.
HUD Income Limits for Bremerton / Kitsap County are included in the Application each year. There are
several different ways that CDBG activities can benefit low and very low income persons:
A. AREA BENEFIT
Some CDBG assisted activities, such as parks, neighborhood facilities, community centers and
streets, serve an identified geographic area. These activities generally meet the low and
moderate income principal benefit requirements if 51% of the residents in the activity's service
area are low and moderate income. However, in some communities, they have no or very few
areas in which 51% of the residents are low and moderate income. For these grantees, the
CDBG regulations authorize an exception criterion in order for such grantees to be able to
undertake area benefit activities.
However, in some communities, there are very few or no areas in which 51 % of the residents
are low and moderate income. For these grantees, such as Kitsap County, the CDBG
regulations authorize an exception criterion in order for such grantees to be able to undertake
area benefit activities. Currently the exception percentage for Kitsap County is 43.27 %.
Please contact the City or County Block Grant office for maps and more information on
documenting your service area and determining eligibility under Area Benefit
Applicants must.
D Attach a map with the boundaries of the project's service area delineated (the
surrounding geographic area in which all or most of the people benefiting from the
project reside).
0 Explain why that particular geographic area is the service area for the project;
D Indicate on the map residential and commercial areas within the service area boundary;
and
21 , Provide documentation that 51 %(City) or 43.27 %(County) or more of the residents
within the service area are low and very low income persons /households utilizing the
most recent census data as provided by HUD. Please contact the City or County Block
Grant office for maps and more information on documenting your service area.
B. LIMITED CLIENTELE
An activity which benefits a limited clientele, at least 51 % of whom are low or very low income
persons /households. There are four types of activities in this category:
Appendix D - CDBG Eligibility Requirements & Program Rules Page 3
1. Presumed Benefit -- An activity may benefit one of the following groups who are
presumed by HUD to be principally low and very low income: abused children, battered
spouses, elderly persons, handicapped persons, homeless persons, illiterate persons,
migrant farm workers and persons living with HIV /AIDS.
Applicants must:
D Demonstrate that the facility or service is designed for and used predominantly by
one of the groups identified above.
Demonstrate that your clientele meets HUD's definition for the presumed group you
serve, for example, homeless individuals must meet HUD's definition and
documentation requirements at
https: / /www.onecpd. info / resources / documents/ HomelessDefinition RecordkeepingR
equirementsand Criteria. pdf
2. Require documentation on family size and income in order to show that at least
51 percent of the clientele are low income — This means your program can serve low
and moderate income clientele if at least 51 % of your clientele are low income.
Agencies must keep information on client income and family size which can document
whether or not 51 % or more of the clientele are persons whose family income does not
exceed HUD's published low income limits for Kitsap County.
Applicants must:
D Provide documentation of the total number of clients /households served in the prior
year (if this is an existing service);
D State what percent of the clients /households served in the prior year were low or
very low income (or met criteria that are stricter);
D Provide a copy of the income qualification criteria that were used to screen clients
and to determine the percent that were low and very low income;
D Provide a copy of the client intake form highlighting the questions regarding family
size and income levels; and
D Agree to maintain documentation of the client's incomes for the CDBG . contract
period.
3. Income Eligibility Requirements (Direct Benefit) -- This means that the agency uses
income screening to limit the benefits of the CDBG funded activity to only those persons
who are low and very low income. For example, a housing counseling program would
screen potential clients and use the CDBG funds to pay for the counseling only of those
who are income eligible.
Applicants must:
Appendix D - CDBG Eligibility Requirements & Program Rules Page 4
R1 Screen clients by family size and income;
D Provide a copy of the income qualification criteria that were used to screen clients to
determine low and very low income status;
D Provide a copy of the client intake form highlighting the questions regarding family
size and income levels; and
0 Describe how the program /project would limit the benefits of the CDBG funded
activity exclusively to low and very low income persons /households.
4. Nature /Location of Activity Allows Conclusion of Primarily Low and Very Low
Income Benefit =- This means that the activity is of such a nature and in such a location
that it may be concluded that the clientele will be primarily low and very low income; for
example, free childcare in an assisted housing project.
Applicants must:
0 Explain how the nature, and if applicable, the location of the proposed project,
establishes that it is used primarily for low and very low income persons.
In addition to the four activities described above, the following activities may qualify
under the limited clientele national objective.
• Removal of Architectural Barriers
A project which removes material or architectural barriers which restrict the mobility and
accessibility of elderly or handicapped persons to publicly owned and privately owned non-
residential buildings, facilities and improvements, and the common areas of residential
structures containing more than one dwelling unit is considered a limited clientele activity.
Note: This refers to the removal of existing barriers. It does not apply to new construction.
• Assistance to Owners of Microenterprises
When assistance is to be provided to a microenterprise (a commercial enterprise that has five
or fewer employees, one or more of whom owns the enterprise) the owner must qualify as low
or moderate income. Note: for microenterprise projects under the limited clientele national
objective justification, the low income threshold applies only to the owner, there are no income
requirements for the workers the owner employs.
• Employment Support Services.
If CDBG assistance is only provided for training or supportive services (peer support programs,
counseling, child care, transportation, and other similar services) to assist business(es), the
percentage of low and moderate income persons assisted may be less than 51 % if the
proportion of the total cost borne by CDBG funds is no greater than the proportion of the total
number of persons assisted who are low or moderate income. For example: A new business
moves into town and begins an on -site day care program for workers. The total cost of the day
care is $10,000. There are 40 children, 3 of which meet qualifications as low and moderate
Appendix D - CDBG Eligibility Requirements & Program Rules Page 5
income. The maximum amount chargeable to the CDBG program is $750.00. ($10,000/40
=$250 X 3 = $750).
Applicants must:
0 Maintain data documenting the total cost of the service, Screen clients by family size and
income; and provide a copy of the client intake form highlighting the questions regarding
family size and income levels;
C. Housing Activities
These are activities providing or improving permanent residential structures which are or will be
occupied by low and very low income households. It does not include group homes or shelters for
the homeless, which are considered limited clientele activities.
Applicants must.
• Maintain a copy of the written agreement with each landlord or developer receiving
CDBG assistance indicating the total number of dwelling units in each multi -unit
structure' assisted and the number of those units which will be occupied by low and
moderate income households after assistance.
• Maintain records on the total cost of the activity, including both CDBG and non -CDBG
funds.
• Document criteria used to screen households for family size and income eligibility.
0 For rental housing, maintain records on rent charged (or to be charged) after assistance
for each dwelling unit in each structure assisted.
D. Job Creation or Retention Activities
These are economic development activities which are designed to create or retain permanent jobs,
where at least 51% of the jobs, computed on a full -time equivalent basis, can be documented to
employ low and very low income persons for the geographic area where it is located. There are very
specific elements of this national objective. Please contact the Community Development staff
to discuss your project prior to submitting an application.
II. REDUCE OR ELIMINATE SLUM OR BLIGHT
An activity may meet the national objective of reducing or eliminating slum and blight, instead of
benefiting low and very low income people. Currently, there are two designated slum and blight areas
in the City of Bremerton. There are two different ways that CDBG activities can meet this second
national objective.
Appendix D - CDBG Eligibility Requirements & Program Rules Page 6
Area Basis A project must be located in an area defined as a slum or blighted area under state
or local law; the conditions which qualified the area as slum or blight must be on record; and
the project must specifically address one or more of these conditions.
Spot Basis A CDBG project to eliminate slum and blight on a spot basis (for example, outside
of a locally designated slum or blighted area) must be limited to activities necessary to
eliminate specific conditions posing a threat to the public health or safety. The health or
safety hazard must be identified, and the scope of the project must be limited to correcting the
hazard.
III. MEET AN URGENT NEED
Use of this category is extremely rare. It is designed only for activities that alleviate emergency
conditions. Urgent need activities must meet the following qualifying criteria.
• The existing conditions must pose a serious and immediate threat to the health or welfare of the
community;
• The existing conditions are of recent origin or recently became urgent (generally, within the past
18 months);
• The recipient is unable to finance the activity on its own; and
• Other sources of funding are not available.
An example of an activity that would qualify under the urgent Needs National Objective: Our County is
hit by an earthquake within the last month and does not have any other resources to demolish
severely damaged structures which pose a danger to occupants of neighboring structures.
CDBG FUNDING - SPECIFIC REQUIREMENTS
1. Reversion of Assets/ Change -of -Use Restrictions
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
Reversion of assets provisions require agency to transfer to the City or County any CDBG
funds on hand at the time of expiration of the subrecipient agreement, any accounts receivable
attributable to the use of CDBG funds, and any non - expendable personal property that was
purchased with CDBG funds
Appendix D - CDBG Eligibility Requirements & Program Rules Page 7
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.
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 commitment.
Appendix D - CDBG Eligibility Requirements & Program Rules Page 8
Appendix E
HOME Eligibility Requirements & Program Rules
HOME ELIGIBILITY REQUIREMENTS
AND PROGRAM RULES
The HOME Program was created by the National Affordable Housing Act of 1990 (NAHA) to
promote the following objectives:
➢ Provide decent and affordable housing to lower- income households,
➢ Expand the capacity of nonprofit housing services,
➢ Strengthen the ability of local governments to provide housing, and
➢ Leverage private- sector participation.
What are Eligible HOME - Funded Activities?
• Homeowner Rehabilitation: HOME funds may be used to assist existing owner -
occupants with the repair, rehabilitation or reconstruction of their homes.
• Homebuyer Activities: Participating jurisdictions may finance the acquisition and /or
rehabilitation or new construction of homes for homebuyers.
• Rental Housing: Affordable rental housing may be acquired and /or rehabilitated, or
constructed.
What are Eligible HOME Costs?
• Developmental Hard Costs: HOME funds may be used for the actual cost of
constructing or rehabilitating housing. Eligible costs include demolition of existing
structures and improvements to the project site that are in keeping with improvements
of surrounding, standard projects, and costs to make utility connections.
• Acquisition Costs: HOME funds may be used for the costs of acquiring improved or
unimproved real property.
• Related Soft Costs: HOME funds may be used for other reasonable and necessary
costs incurred by the owner and associated with the financing or development (or both)
of new construction, rehabilitation, or acquisition of housing assisted with HOME funds.
These costs include, but are not limited to:
• Architectural, engineering or related professional services required to prepare
plans, drawings, specifications, or work write -ups;
• Costs to process and settle financing for a project, such as private lender
origination fees, credit reports, fees for title evidence, fees
o for recordation and filing of legal documents, building permits, attorney fees,
private appraisal fees and fees for an independent cost estimate, builders or
developer fees;
• Costs of a project audit;
Appendix E - HOME Eligibility Requirements & Program Rules Page 2
o Costs to provide information services such as affirmative marketing and fair
housing information to prospective homeowners and tenants;
o Costs for new construction or substantial rehabilitation, the cost of funding an
initial operating deficit reserve, which is a reserve to meet any shortfall in
project income during the period of project run up and which may only be
used to pay operating expenses, reserve for replacements and debt service.
• Relocation Costs: HOME funds may be used for the costs of relocation payments and
other relocation assistance for permanent or temporarily relocating individuals, families,
businesses, non - profit organizations, and farm operation where assistance is required.
• CHDO Operating Expenses
• Total HOME Assisted costs: HOME funds may be used to pay for all expenses from
developmental hardcosts through CHDO operating expenses.
• Total Number of HOME Assisted Units: HOME funds may be used to pay for the
costs of the total number of units that will be assisted with HOME funds.
• HOME Costs per Unit: HOME funds may be used for the total HOME costs divided by
the total number of HOME assisted units.
What Is a Community Development Housing Organization (CHDO)?
A CHDO is a private nonprofit, community -based service organization that has obtained or
intends to obtain staff with the capacity to develop affordable housing for the community it
serves. A CHDO must meet certain requirements pertaining to their:
• Legal status;
• Organizational structure; and
• Capacity and experience
HOME program rules require that a minimum of 15% of HOME funds be set -aside for CHDOs.
These funds can be used by the CHDO for HOME activities where the CHDO acts as the
developer, sponsor and /or owner of the housing.
For more information on becoming a CHDO please contact the County or City Block Grant
office.
Program Rules
The HOME Program has specific program rules that applicants should be aware of when
contemplating applying for funds. Some applicable program rules include but are not limited to:
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
Appendix E - HOME Eligibility Requirements & Program Rules Page 3
transfer (if applicable) is completed and the final draw of HOME funds has been
disbursed.
Rental Housing: Within six months from the date of project completion, if a
HOME assisted rental unit remains unoccupied, the Block Grant office will
provide to HUD information about current marketing efforts, and if appropriate, an
enhanced plan for marketing the unit so that it is leased as quickly as possible.
Within 18 months from the date of project completion, if efforts to market the unit
are unsuccessful and the unit is not occupied by an eligible tenant, HUD will
require repayment of all HOME funds invested in the unit.
Homeownership Housing: HOME assisted homeownership housing must have a
ratified sales contract with an eligible homebuyer within 9 months of the
completion of construction or rehabilitation, or it must be converted to rental
housing. If converted, this rental housing must comply with all provisions of 24
CFR 92.252. If an unsold homebuyer unit is not converted to rental housing, the
HOME funds must be repaid.
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
property and nature of the activity funded. Affordability periods range from 5 to 20 years
and follow the guidelines in the chart below.
Homeowner / Homebuyer Activities
HOME assistance provided per period of Affordability
unit
Under $15,000 5 years
Between $15,000 to $40,000 10 years
Over $40,000 15 years
Appendix E - HOME Eligibility Requirements & Program Rules Page 4
Rental Housing Activities
Minimum Affordability
Activity Dollar Threshold'`* Period
Less than $15,000 /unit 5 Years
Rehabilitation or Acquisition of $15,000 - $40,000 /unit 10 Years
existing housing Greater than $40,000 /unit 15 Years
Refinance of a Rehabilitation Any $ amount 15 years
project
New Construction (including
land acquisition) or Acquisition Any $ amount 20 Years
of new 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.
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. CHDO Certification
A Community Housing Development Organization (CHDO) must meet certain statutory
requirements under the HOME program to be designated as a CHDO. CHDO activities
must involve acquisition, construction or rehabilitation, and sale (homebuyer or rental) of
housing to eligible households. To be a CHDO, an organization must have
Appendix E - HOME Eligibility Requirements & Program Rules Page 5
"demonstrated capacity for carrying out activities assisted with HOME funds." There are
two ways to meet this requirement:
• Hire experienced key staff members who have successfully completed similar
projects; or
• Hire a consultant with the same type of experience and a plan to train
appropriate key staff members of the organization.
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. CHDO certification will
be required before a commitment of set -aside funds is made.
6. Underwriting, Subsidy Layering Review & Developer Capacity Analysis
Kitsap County and the City of Bremerton, using 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. Staff will also
conduct a review of developer capacity and project fiscal soundness. A Conditional
Commitment of funds will be made until all other project funding has been secured and
documented.
7. 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.
8. HOME Match Requirements
The HOME program requires a match of 25% for every HOME dollar spent. Block Grant
staff is responsible for ensuring that the HOME Consortium is meeting this requirement.
Staff will work with agencies to identify sources and levels of HOME match required on
a project basis. The match requirement may be met in several ways:
A. Non - Federal Cash or Cash Equivalen t — acceptable sources of cash match
include:
a. Local or state general revenues
b. Housing Trust Funds
c. Foundations, donations
d. State appropriations
e. HFA reserves that are not federal funds (e.g. bond proceeds)
f. The interest rate subsidy achieved by the exemption of state or local
taxes
g. Present value of the interest subsidy for loans made at rates below
market
B. Value of waived taxes, fees or charges associated with the project;
C. Value of donated land or real property;
D. Cost of infrastructure improvements associated with the project;
Appendix E - HOME Eligibility Requirements & Program Rules Page 6
E. A percentage of the proceeds of single or multi - family housing bonds
issued by state or local government;
F. Value of donated materials, equipment, labor and professional services;
G. Sweat equity;
H. Direct costs of supportive services to residents of the project;
I. Direct cost of homebuyer counseling to families purchasing homes with
HOME assistance.
9. Market Assessment Requirement
All Homebuyer and Rental housing development projects (includes acquisition,
rehabilitation, new construction, down payment assistance) awarded HOME funds will
be required to have a Market Assessment. It must be completed by the applicant (or
consultant hired by the applicant) and submitted at the time of application for funding or
before the commitment of funds. Block Grant Program staff will review the Market
Assessment to determine:
• If a need for the type and number of housing units has been convincingly
demonstrated;
• If the developer /program will be able to sell the planned homebuyer units prior to
the six -month deadline;
• If the developer /program will be able to lease -up the planned rental units as
expected, e.g. within the timeframe specified in the project pro- forma;
• If the development will adversely impact existing affordable housing
developments.
10. Site and Neighborhood Standards
HOME funded rental projects that are newly constructed are subject to a site and
neighborhood standards [24 CFR 92.202(b)] review by the Block Grant Program to
determine that:
1. Site is adequate for proposed purpose
2. Project and location furthers compliance with fair housing laws
3. Site is not in an area of minority concentration — if the site is in an area of
minority concentration, the Block Grant Program will determine that one or more
of the following is true:
a. The project will not increase significantly the proportion of minorities
b. Sufficient comparable housing opportunities exist outside the area for
minorities based on analysis of HUD - assisted housing
c. Proposed project is necessary to meet overriding housing need that
cannot otherwise be met
d. Proposed project is integral to a neighborhood preservation strategy or
integral to revitalization area strategy.
4. Project promotes greater choice of housing opportunities and avoids undue
concentration of assisted persons
5. Proposed site is not seriously detrimental to family life
6. Proposed site is comparably accessible to broad range of services and facilities
7. Travel and access to jobs from proposed site is not excessive.
Appendix E - HOME Eligibility Requirements & Program Rules Page 7
Long Term Affordability
One of the purposes of the HOME Program is to increase the supply of affordable housing
units. 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 property
and nature of the activity funded. Affordability periods range from 5 to 20 years. Deed
restrictions must be recorded on the property to ensure the affordability
Homebuyer activities will use either Resale or Recapture (24 CFR 92.294(a)(5) for
maintaining affordability for each HOME assisted property. Kitsap County and City of
Bremerton will designate in the subrecipient agreement (contract) the method to be used.
Rental housing activities will carry rent and occupancy restrictions during the period of
affordability. Affordability restrictions remain in force regardless of transfer of ownership.
Homebuyer Projects
Homeownership housing projects assisted with HOME must meet the affordability described
below, as per 92.254(a)(4). The affordability period begins after project completion, and is
based on the amount of HOME investment per unit
If a program or project does not meet its affordability requirements through change in
ownership, change in use, or other failure to adhere to contractual obligations, Resale or
Recapture provisions are triggered in order to continue the HOME investment to its intended
recipient. Either Resale or Recapture is set forth in each project/program's contract.
Resale for Homebuyer Projects
All HOME assisted homebuyers subject to Resale provisions must meet the following during
the Period of Affordability, which will be recorded in a restrictive covenant and shall be required
of the original and any subsequent buyer of the subject property during the term of the Period
of Affordability:
1. The homebuyer must enter into restrictive covenant outlining resale requirements.
2. Subject property must be homebuyer's principal residence at all times during the
. Period of Affordability.
3. Property is sold to an income qualified homebuyer with an income within the range
of 51 % and 80% of Area Median Income. The property must be sold at a price that is
"affordable to a reasonable range of low- income buyers." The sales price shall be
set such that the amount of Principal, Interest, Taxes and Insurance does not
exceed 30% of the new buyer's annual income. The Kitsap County Block Grant
Program must approve the resale price.
Appendix E - HOME Eligibility Requirements & Program Rules Page 8
4. The owner shall receive a fair return on their investment. Fair Return on Investment
means the total homeowner investment which includes the total cash contribution
(excluding standard maintenance) plus the approved capital improvements as
described below:
a. The cost of any capital improvements, documented with receipts provided by
the homeowner, including but not limited to:
i. Any additions to the home such as a bedroom, bathroom, or garage;
ii. Replacement of heating, ventilation, and air conditioning systems;
iii. Accessibility improvements such as bathroom modifications for
disabled or elderly, installation of wheel chair ramps and grab bars,
any and all of which must have been paid for directly by the Owner and
which were not installed through a federal, state, or locally- funded
grant program; and
iv. Outdoor improvements such as a new driveway, walkway, retaining
wall, or fence.
b. All capital improvements will be visually inspected t verify their existence.
5. The Housing Price Index (HPI) of the Federal Housing Finance Agency will be
used as the index to determine fair return on investment. The percentage of change
as calculated by the HPI projects what a house purchased at a point in time would
be worth today if it appreciated (or depreciated) at the average rate for all homes in
the areas. The calculation shall be performed for the Bremerton - Silverdale
Metropolitan Statistical Area (MSA).
6. Calculating Fair Return on Investment: Calculating the Fair Return to the original
homeowner would be as follows:
Step 1: Owner cash contribution at closing + capital improvements x HPI%
change= fair return on initial & capital investments
Step 2: The results are then added to the owner's cash contribution + capital
improvements to get the total return to the original homebuyer at sale.
Recapture for Homebuyer Proiects
All HOME assisted homebuyers subject to Recapture provisions must meet the following
during the Period of Affordability, which will be recorded in a restrictive covenant and shall be
required during the term of the Period of Affordability:
1. The homebuyer must enter into restrictive covenant outlining recapture
requirements.
2. The PJ will record a lien on the property securing the asset until expiration of the
Period of Affordability.
3. The homebuyer may sell the home at any time during the Period of Affordability, to
any willing buyer, and at the price the market will bear.
Appendix E - HOME Eligibility Requirements & Program Rules Page 9
4. In the event of voluntary or involuntary sale during the Period of Affordability, the PJ
will recapture the HOME investment as follows:
a. The owner shall receive a fair return on their investment: portion of HOME
funds recaptured will be based on shared net proceeds (down payment and
any capital improvements, excluding standard maintenance, since purchase).
Net Proceeds = [Sale Price] — [Non -HOME Debt] — [Closing Costs]
b. A third party appraisal will determine fair market value.
Housing Homeownership Requirements
The HOME program requires that for all HOME assisted homeownership projects:
1. All of the HOME funds will benefit families whose incomes are at or below 80% of the
area median income.
2. The assisted housing will be the owner's principal residence.
3. The purchase price of the property or the appraised value of a property already owned,
after rehabilitation will be less than 95 percent of the median area purchase price. The
2013 HOME Final Rule 24 CFR 92.254(a)(2)(iii) is amended to eliminate the use of the
203(b) limit and to change the methods for determining 95% of area median purchase
price. HUD will determine and issue limits that represent 95% of the area median
purchase price separately for newly constructed and existing single family housing
units. Kitsap County Block Grant Program will use the HUD - issued limits.
4. All homebuyers that receive HOME assistance or purchase a unit developed with
HOME funds must receive housing counseling. The Block Grant staff will review the
housing counseling policies of subrecipients and owner /sponsor developers of
homeowner housing to determine compliance with this requirement.
5. A subsequent low- income purchaser of a HOME - assisted homeownership unit may
assume the existing HOME loan and recapture obligation entered into by the original
buyer when no additional HOME assistance is provided to the subsequent homebuyer.
6. City of Bremerton HOME funded homeownership projects are capped at $30,000 per
unit.
7. Subrecipients administrating homebuyer assistance programs must have and follow
written policies for:
a. Underwriting: Underwriting standards for homeownership assistance must
address housing debt, overall household debt, the appropriateness of the amount
of assistance, recurring household expenses, assets available to acquire the
Appendix E - HOME Eligibility Requirements & Program Rules Page 10
housing, monthly expenses of the household and financial resources available to
the household to sustain homeownership.
b. Predatory lending: (HUD will issue guidance on preventing predatory lending)
c. Refinancing: The refinancing policy must address refinancing loans to which
HOME loans are subordinated to ensure that the terms of the new loan are
reasonable.
Rental Housing Requirements
Rental housing projects which include HOME assisted units must meet the affordability
described in 92.252(e), the affordability requirements apply without regard to the term of any
loan or mortgage or the transfer of ownership.
At least 20% of HOME assisted rental units must be occupied by families who have annual
incomes that are 50% or less of AMI. Properties with 5 units or less are exempt from this rule.
Additionally the Block Grant Program must ensure that 90% of the total households served
under all County /City funded HOME rental programs have incomes that do not exceed 60% of
the AMI. The remaining households must not exceed 80% of AMI.
Minority and Women Owned Businesses
The HOME program requires the encouragement and use of minority and women owned
business enterprises in the implementation of HOME program activities.
Affirmative Fair Housing Marketing Plan
All Home - funded programs, including downpayment assistance programs, must follow an
affirmative marketing plan. The specific affirmative marketing procedures to be used will
depend on the type and size of the program or project. The Kitsap County -City of Bremerton
HOME Consortium has an Affirmative Fair Housing Marketing Plan that clearly state what
actions owners /managers must take to provide information to, and otherwise attract, eligible
persons in the housing market who are unlikely to apply without special outreach. The extent
of the affirmative marketing activities typically varies depending on the size of the property.
Kitsap County -City of Bremerton HOME Consortium staff will evaluate the success of the
affirmative marketing actions every year for each project. Owners and managers are required
to retain certain records so staff can evaluate its results. Affirmative Marketing will be reviewed
during annual on -site monitoring.
Priorities for Use of HOME funds
The City of Bremerton will give priority to HOME projects located in the Anderson Cove and
Downtown designated Blight Zones. Please contact the City for a map of these areas. In the
absence of qualified, viable projects that fit the City's vision, the City Council may elect to set
aside HOME funds for a future use, including for a City- initiated affordable housing project.
Appendix E - HOME Eligibility Requirements & Program Rules Page 11
The County does not have priority areas for the use of HOME funds.
Property and Construction Issues
A. Compliance with Codes and Standards
For all projects, the Block Grant office is primarily responsible for ensuring compliance
with Federal requirements and meeting both project and program goals. This is the case
no matter what cost is funded under the HOME Program.
1. Acquisition of existing housing (no rehab. or construction)24 CFR
92.251(c)
Housing acquired with HOME funds must be inspected for health and safety at
the time of title transfer. Block Grant staff will conduct an inspection using
established standards. Any deficiencies will be noted and a date for correction
and re- inspection will be communicated to the owner. HOME funds will not be
disbursed for the acquisition until the project passes the inspection.
2. Rehabilitation of housing 24 CFR 92.251(b)
For any HOME - funded rehabilitation work, the housing must meet the Kitsap
County /City of Bremerton Housing Rehabilitation Standards and County or
applicable City Building Code.
The Rehabilitation Standards address the following:
• Health & Safety — the rehab. standards specify the life threatening
deficiencies that must be addressed immediately if a housing unit is
occupied.
• Remaining Useful life of major Systems — An estimate of the remaining
useful life of major system must be completed. Major systems include
structural support, roofing, exterior cladding, weatherproofing (e.g.,
windows, doors, siding, gutters), plumbing electrical and heating,
ventilation and air conditioning.
o Major systems for rental housing - This must be done with a
capital needs assessment for projects with 26 or more units. If the
remaining useful life is less than the affordability period, the Block
Grant Program will require replacement reserve deposits to ensure
that the project's major systems and physical needs can be
adequately maintained and addressed throughout the affordability
period.
Appendix E - HOME Eligibility Requirements & Program Rules Page 12
o Major systems for homeownership housing — upon project
completion, major systems must have a useful life of at least five
years.
• Lead based paint requirements, in accordance with 24 CFR Part 35.
• Accessibility requirements, as applicable, in accordance with Section
504 of the Rehabilitation Act, the Americans with Disabilities Act, and the
Fair Housing Act.
• Disaster mitigation standards, in accordance with State and local
requirements.
• Rehabilitation work must comply with local codes, ordinances, and
zoning requirements.
• Uniform Physical Conditions Standards (UPCS
3. New construction of housing 24 CFR 92.251(a)
All new housing projects constructed with HOME funds must have project
specific material and methods or "construction specifications" for the project. The
specifications and design plans will be reviewed by Block Grant staff to ensure
that the amenities and aesthetic features of the project are in keeping with
modest housing of similar type in the community. Projects will be required to
obtain the necessary development permits from the jurisdiction where the project
is located and copies of the signed -off permit & certificate of occupancy will be
required for final reimbursement of funds.
All new construction work must meet the International Code Council's
International Residential Code or International Building Code, whichever is
applicable, and disaster mitigation standards in accordance with State and local
requirements. In addition projects must meet the applicable accessibility
requirements in accordance with Section 504 of the Rehabilitation Act, the
Americans with Disabilities Act and the Fair Housing Act.
Block grant staff will review and approve written cost estimates, construction
contracts and construction documents. In addition, staff will conduct construction
progress and final inspections to ensure that work is done in accordance with the
applicable codes, the construction contract, and construction documents.
4. Newly Constructed or Recently Rehabilitated Housing 24 CFR
92.251(c)(1)
Housing that has been newly constructed or rehabilitated within one year of the
date of commitment of HOME funds must meet the applicable property standards
Appendix E - HOME Eligibility Requirements & Program Rules Page 13
[92.251(a)] for new construction and [92.251(b)] for rehabilitation. The Block
Grant office will document compliance based on a . review of approved building
plans and certificates of occupancy and a property inspection that is conducted
no earlier than 90 days before the commitment of HOME funds.
5. All Other Existing Housing — Rental
For all other housing (housing not recently rehabilitated or newly constructed)
that will be acquired (without rehabilitation) for rental housing, the property must
meet the applicable standard for rehabilitation at 92.251(b). The Block Grant
office will document compliance based upon a current inspection that is
conducted no earlier than 90 days before the date of commitment of HOME
assistance. If the property does not meet these standards, it cannot be acquired
with HOME funds unless it is rehabilitated to meet this standard..
6. All Other Existing Housing — Homeownership (Downpayment)
Assistance
Block Grant staff will utilize Housing Quality Standards to ensure that existing
housing acquired for homeownership is decent, safe, sanitary, and in good
repair. Once HUD issues guidance on replacing HQS with the UPCS, staff will
use the UPCS to perform inspections.
7. Manufactured Housing Property Standards [24 CFR 92.251(e)]
Newly constructed manufactured housing and housing that replaces an existing
substandard unit must be on a permanent foundation. For all rehabilitated
manufactured housing, the foundation and anchoring must meet all applicable
State and local codes and other requirements.
All new construction of manufactured housing must meet the Manufactured
Home Construction and Safety Standards codified at 24 CFR part 3280.
All new manufactured housing must, at the time of project completion, be
connected to permanent utility hook -ups and be located on land that is owned (or
leased for a period at least as long as the affordability period) by the
manufactured housing unit owner.
Existing manufactured housing that is rehabilitated with HOME funds must meet
the property standards applicable to rehabilitation, as outlined in 92.251(b).
8. On -going Property Standards for Rental Projects [24 CFR 92.251(f)]
Properties must be maintained to meet all applicable State and local codes.
Housing will be inspected using UCPS as the standard (replaces HQS). Housing
must be free of all health and safety defects and any life- threatening deficiencies
Appendix E - HOME Eligibility Requirements & Program Rules Page 14
identified during inspection must be corrected immediately. Housing must also
meet the lead -based paint requirements in 24 CFR part 35.
Lead Based Paint
All housing funded with HOME and /or CDBG constructed before 1978 must comply with
lead -based paint regulations at 24 CFR Part 35. The purpose of the regulation is to
identify and address lead -based paint hazards before children are exposed to lead.
Appendix E - HOME Eligibility Requirements & Program Rules Page 15
Appendix F
Anti - Displacement & Relocati ®n Assistance Plan
Anti - displacement and Relocation Assistance Plan
INTRODUCTION
• Applicants for federal funds must comply with the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, referred to as URA. URA
regulations, at 49 CFR Part 24, apply to any federally- assisted project involving
acquisition demolition or rehabilitation
• The URA protects all persons who are displaced by a federally assisted project,
regardless of their income This is in contrast to Section 104(d) which only protects
displaced persons whose income is at or below 80% of the area median income.
The URA also protects businesses located in a building acquired, demolished or
rehabilitated with federal funds.
REAL PROPERTY ACQUISITION
A. When acquisition of real property is the result of a voluntary proposal which has
been submitted by an owner in response to a public invitation or solicitation for
offers, it is referred to as voluntary acquisition. In contrast, acquisition of property
by the local government entity which is not voluntarily offered for sale is referred
to as involuntary acquisition. Voluntary Acquisition must adhere to the following
procedures:
a) Determine if the housing unit is a low /moderate income dwelling unit and if
so contact the Block Grant Program office.
b) Clearly advise the owner that in the event negotiations fail to result in an
agreement the property will not be acquired.
c) Arrange for a full independent narrative appraisal of the property by a
qualified appraiser.
d) Inform the owner of what the agency believes to be fair market value of
the property and that the agency does not have the authority to acquire
the property by eminent domain. (HUD Guideform Notice of Voluntary
Arms Length Transaction is available from the Block Grant Office)
B. All acquisitions must go through real estate escrow. The escrow agent must be a
neutral third party to the acquisition.
C. All acquisitions must have title insurance.
D. All acquisitions will need a notice of some kind. All occupants are entitled to
timely notice explaining whether or not they will be displaced.
• Occupants to be displaced must be informed of their eligibility for
relocation assistance and the nature of the assistance.
2 Appendix F Anti - Displacement & Relocation Assistance Plan
• Occupants not to be displaced must be informed of the terms and
conditions under which they may occupy the property upon completion of
the project.
NOTICES
➢ General Information Notice (GIN): Informs occupants of a possible project and
of their rights under URA. Stresses that the household should not move at this
time.
➢ Move -in Notice informs households moving into potential projects after the
application that may be displaced and that they will not be entitled to assistance.
➢ Notice of Non - Displacement informs households who will remain in the project
after completion of the assisted activity of their rights and of the terms and
conditions of their remaining at the property.
➢ Temporary Relocation Notice informs households who will be temporarily
relocated of their rights and of the conditions of their temporary move.
➢ Notice of Eligibility informs households to be displaced of their rights and levels
of assistance under federal law.
➢ 90 and 30 Day Notices informs displaced households of the day by which they
must vacate the property.
PLANNING FOR RELOCATION UNDER URA
A. Minimizing Displacement It is the policy of the Kitsap County and City of
Bremerton Community Development Block Grant (CDBG) and HOME Investment
Partnership (HOME) Programs to minimize displacement of people or
businesses as a result of activities assisted with CDBG or HOME funds. This
means:
a) Considering whether displacement will occur and how this would affect the
feasibility of the project.
b) Identifying potential relocation workload and resources early.
c) Assuring, whenever possible, that residential occupants of buildings to be
rehabilitated are offered an opportunity to return.
d) Planning rehabilitation projects to include "staging" where this would
minimize displacement.
B. Relocation Assistance for Displaced Residents
Relocation is defined as the permanent movement of occupants /tenants,
required as a result of a CDBG or HOME activity. Federal regulations require
that if any individuals, families, businesses or farms are displaced the
subrecipient must:
a) Inform the person(s) that they may be displaced and generally
describe the relocation payment(s) for which they may be eligible, the
3 Appendix F Anti - Displacement & Relocation Assistance Plan
basic conditions of eligibility, and the procedures for obtaining
payment(s).
b) Inform the person that they will not be required to move without at least
90 days advance written notice and that the person to be displaced
cannot be required to move permanently unless at least one
comparable replacement dwelling unit has been made available.
c) Inform the person that they will be given reasonable relocation
advisory services, including referrals to replacement properties, help in
filing payment claims, and other necessary assistance to help them
relocate.
d) Provide the person with a description of their right to appeal any
determinations for assistance under the Uniform Relocation and Real
Property Acquisition Act (49 CFR, Part 24).
e) Assure that those persons who are required to relocate receive their
full replacement housing payments, moving, and related expenses.
C. Rights of Residents who Remain in the Project
a) Remaining Households must be offered affordable Housing.
• Tenants who are intended to remain in the project must receive
the offer of a "suitable" unit which can be rented at an "affordable"
price. Determining which tenants will be able to remain in the
project is a key component of determining the feasibility of an
occupied project.
b) Temporary Relocation
• Residents who will remain in the project after rehabilitation may
be required to move temporarily during rehabilitation.
• The temporary dwelling must be suitable and decent, safe and
sanitary but not necessarily comparable.
• In addition to the Notice of Non - displacement, the resident must,
as a minimum, receive reasonable advance written notice of the
date and approximate duration of the planned temporary move;
information about the terms and conditions under which the
tenant will be returning to when the project is completed; and
reimbursement for all reasonable out -of- pocket expenses incurred
in connection with the temporary move.
c) Permanent Moves Within the Project
• Tenants may be allowed to remain in a project after rehabilitation,
but not necessarily in the same unit.
• Permanent moves within the same project must be to suitable,
decent, safe and sanitary - but not necessarily comparable —
units.
4 Appendix F Anti - Displacement & Relocation Assistance Plan
• In addition to the Notice of Non - displacement, the resident must,
as a minimum receive reasonable advance written notice of the
date of the planned move to an alternate unit and; reimbursement
for all reasonable out -of- pocket expenses incurred in connection
with the move.
SECTION 104(d) - REPLACEMENT OF HOUSING
Section 104(d) of the Housing and Community Development Act of 1974 as amended
requires the one - for -one replacement of low /moderate income occupied or occupiable
dwelling units which are demolished or converted to a use other than low /moderate
income housing as a direct result of CDBG or HOME assistance. Under this section
relocation assistance shall be provided in accordance with 24 CFR Part 42.350. One
for one replacement of units shall be provided in accordance with 24 CFR Part 42.375.
All comparable replacement housing will be provided within one year prior to or three
years after commencement of the demolition or conversion. Before entering into a
contract committing the County to provide funds for an activity that will directly result in
demolition or conversion, Kitsap County will require the applicant to publish a notice in
the newspaper, and Kitsap County will submit to HUD, the following information in
writing:
1) Description of proposed assisted activity;
2) The address, number of bedrooms and map of location of the lower income
housing that will be lost as a result of the project;
3) Time schedule for start and completion of the demolition or conversion;
4) To the extent known, the address, number of bedrooms and map of the location
of replacement housing that has or will be provided. If. such data are not
available at the time of the general submission, Kitsap County will identify the
general location on an area map and information identifying the specific location
and number of dwelling units by size shall be submitted and disclosed to the
public as soon as it is available;
5) Basis for concluding replacement housing will remain a low- income unit for at
least 10 years from the date of initial occupancy;
6) Information demonstrating that any proposed replacement of housing units, that
are different in size from those units lost, is appropriate and consistent with
housing needs and priorities identified in the Consolidated Plan.
5 Appendix F Anti - Displacement & Relocation Assistance Plan
DEFINITIONS
Comparable replacement dwelling unit: A unit that meets the criteria of 49 CFR
24.2(d)(1) through (6); and is available at a monthly cost for rent that does not exceed
the "Total Tenant Payment" determined under 24 CFR Part 42 813.107.
Conversion: This term means altering a housing unit so that it is used for non - housing
purposes; used for housing but no longer meets the definition of lower income dwelling
unit; or used as an emergency shelter.
Lower - Income Dwelling Unit: A dwelling unit with a market rent (including utility costs)
that does not exceed the applicable Fair Market Rent (FMR) for Section 8 existing
housing established under 24 CFR part 888. However, the term does not include any
unit that is owned and occupied by the same person before and after the assisted
rehabilitation.
Vacant occupiable dwelling unit: a vacant dwelling unit that is in a standard condition;
vacant dwelling unit that is in a substandard condition but is suitable for rehabilitation; or
a dwelling unit in any condition that has been occupied (except by a squatter) at any
time within the period beginning 3 months before the date of execution of the agreement
by the recipient covering the rehabilitation or demolition.
6 Appendix F Anti - Displacement & Relocation Assistance Plan
Appendix G
Glossary/
Appendix G - Glossary Page 2
GLOSSARY
Administrative Expenses Those expenses directly associated with the recipient's general
administration of the CDBG or HOME program, such as salaries, supplies, equipment,
accounting, phones, audits, benefits, travel and indirect costs.
Affordability Affordability is achieved when a household's rent or mortgage payment, plus
utilities, does not exceed 30% of the monthly income for the targeted income group as adjusted
for household size.
Annual Action Plan: This document allocates one year's funding to specific projects and
activities for the CDBG and HOME programs. It is submitted annually to HUD, 45 days prior to
the start of the City's and County's fiscal year or no later than November 15 and is developed in
accordance with federal regulations (24 CFR Part 91).
Architectural Barriers Restrict mobility and accessibility of elderly or individuals with
disabilities.
Benefit Criteria A CDBG activity must either, principally benefit low or very low income
persons reduce or prevent slums and blight or meet a recent urgent need. These three
objectives are the Benefit Criteria.
Cash Flow Gross income minus vacancy rate, operating expenses, reserves, debt service and
taxes.
Grant Recommendation Committee (GRC) A group of eight citizens meeting specific
qualifications, who develop funding recommendations for approval by the Kitsap Regional
Coordinating Council (KRCC) and Bremerton City Council.
Citizen Participation Plan: This plan is prepared to facilitate and encourage public
participation and involvement in the Consolidated Plan process and the City's and County's
CDBG and HOME program, especially by low- and moderate - income persons. The plan
identifies the public participation requirements as identified by federal regulations (24 CFR Part
91).
Committed Funds Funds committed to a project by a project funding source. The award
amount, terms and uses of the committed funds are documented in a letter to the applicant. A
copy of this award letter is included with the application for CDBG /HOME funds.
Conditional Funds Funds committed, with conditions, to a project by a project funding source.
The conditions of the commitment, amount, terms, and uses are documented in a letter to the
applicant. A copy of the letter is included with the application for CDBG /HOME funds.
Consolidated Annual Performance Evaluation Report (CAPER): This document reports on
the progress in carrying out the Consolidated Plan and Annual Action Plan. The report is
prepared annually by both the City and County in accordance with federal regulations (24 CFR
Part 91). It is due to HUD no later than 90 days after the end of the program year or March 31.
Appendix G - Glossary Page 3
Consolidated Plan: This document serves as the City's and County's application for CDBG
and HOME funds. It sets forth the priorities and strategies to address the needs of primarily low -
and moderate - income persons and areas in the county. It typically covers a five -year time
period. It is submitted to HUD 45 days prior to the start of the program year or no later than
November 15 and is developed in accordance with federal regulations (24 CRF Part 91 -).
Consultant Fees Fees paid to a third party developer consultant for costs associated with
implementation of a project.
Entitlement Community A local jurisdiction that receives an allocation of Community
Development Block Grant funds directly from HUD. All participating jurisdictions are entitlement
communities; however, not all entitlement communities are participating jurisdictions.
Household: All persons occupying a housing unit. The occupants may be a family, as defined
in 24 CFR 5.403; two or more families living together; or any other group of related or unrelated
persons who share living arrangements, regardless of actual or perceived, sexual orientation,
gender identity, or marital status.
Housing Housing includes permanent housing units for sale or rent including; manufactured
housing, permanent housing for disabled homeless persons, transitional housing, single -room
occupancy housing, and group homes. Housing does not include emergency shelters or
facilities such as nursing homes, convalescent homes, hospitals, residential treatment facilities,
correctional facilities, halfway houses, housing for students or dormitories.
Interlocal Agreement Agreements made to ensure the cooperation of units of local
government which form consortiums for the purpose of obtaining funding.
Low- and Moderate - Income Households (LMI): These are households earning less than 80%
of the area median income (AMI). They are broken down into the following income designations:
• Extremely Low - Income: households with incomes less than 30% of the area median
family income adjusted for household size.
• Low - Income: households with incomes between 31 % and 50% of the area median
income, adjusted for household size.
• Moderate - Income: households with incomes between 51 % and 80% of the area median
income, adjusted for household size.
Low- and Moderate - Income Area Neighborhood (LMA): In general, this is defined as census
tracts or block groups where a minimum of 51 % of the residents have low or moderate incomes
(i.e. not exceeding 80% of the area median income).
Median Family Income: HUD releases income limits annually for its programs. Income limits
are calculated using American Community Survey and Census data. Data for Kitsap County is
based on the Bremerton - Silverdale Metropolitan Statistical Area (MSA). Incomes are indexed by
household size.
Operating Support Financial assistance used to supplement the day -to -day operations of a
project.
Participating Jurisdiction This term refers to cities, counties and consortia which receive an
allocation of federal HOME funds directly from HUD.
Appendix G - Glossary Page 4
Persons with Disabilities: This term means a household composed of one or more persons, at
least one of whom is an adult, who has a disability. A person is considered to have a disability if
the person has a physical, mental, emotional or developmental impairment that is expected to
be of long- continued and indefinite duration and substantially impedes his or her ability to live
independently.
Program Year: The program year for both the County and City CDBG and HOME programs is
January 1 through December 31, which is the same as the County and City's fiscal year.
Proiect Management Costs directly related to managing the project to the point of completion
normally paid to a third party.
Proiect Soundness The feasibility, sensibility, and effectiveness of the project to meet a
defined community need and the organizational strength and capacity to bring the project to
completion.
Proposed Funds Funds which have been or will be requested from a potential project funding
source.
Relocation Expenses Those costs paid to households or businesses when temporary or
permanent relocation becomes necessary.
Single family housing: One to four - family residence, condominium unit, cooperative unit,
combination of manufactured housing and lot, or manufactured housing lot.
Single room occupancy (SRO) housing Housing (consisting of single- room dwelling units)
that is the primary residence of its occupant or occupants. The unit must contain either food
preparation or sanitary facilities (and may contain both).
Special Needs Housing Housing for special needs populations who require special housing -
related services. This is also referred to as supportive housing.
Special Needs Population This population of people includes elderly and frail elderly;
persons with mental, physical or developmental disabilities; persons with HIV /AIDS; persons
with alcohol or drug addiction; victims of domestic violence; persons discharged from institutions
(prison, jail, mental hospital, foster care).
Transitional housing: Housing that is designed to provide housing and appropriate supportive
services to person, including (but not limited to) de institutionalized individuals with disabilities,
homeless individuals with disabilities, and homeless families with children. It has as its purpose
facilitating the movement of individuals and families to independent living within a time period
that is set.
Uniform Physical Condition Standards (UPCS): Uniform national standards established by
HUD pursuant to 24 CFR 5.703 for housing that is decent, safe, sanitary, and in good repair.
Standards are established for inspectable items for each of the following areas: site, building
exterior, building systems, dwelling units, and common areas.
Appendix G - Glossary Page 5
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City of Bremerton /Kitsap County Coordinated Grant Application Process
2015 Coordinated Grant
Noti o f Funding Availability
Community Development Block Grant Program
HOME Investment Partnership Program
Affordable Housing Grant Program
Homeless Housing Grant Program
Consolidated Homeless Grant Program
GENERAL INFORMATION
2015 Funding Allocation Schedule (Adobe PDF = page 4) 2
About the Funding (Adobe PDF = page 5) 3
Eligible Activities (Adobe PDF = page 5) 3
Eligible Applicants (Adobe PDF = page 9) 7
Funding Priorities (Adobe PDF = page 10) 8
Funds Available (Adobe PDF = page 13) 11
2014 Proposed Distribution (Adobe PDF = page 15) 13
Where to Submit Applications (Adobe PDF = page 16) 14
Assistance with the Application (Adobe PDF = page 16) 14
Application Review and Rating Process (Adobe PDF = page 17) 15
Grant Recommendation Committee (GRC) (Adobe PDF = page 17) 15
HUD Income Limits(Adobe PDF = page 18) 16
If Your Agency is Awarded Funds (Adobe PDF = page 19) 17
.0170 41
1
City of Bremerton /Kitsap County m�
2015 Coordinated Gr Notice of F unding °�•s� K ,15aP CO Y
Staff Contacts w 4SHINGTON
City of Bremerton CDBG/HOME
http: / /www.ci.bremerton.wa.us /display.php ?id =864
Mailing Address: City of Bremerton
Department of Community Development
3456 th Street, Suite 600
Bremerton, WA 98337 -1873
Staff Contacts: Marie Vila, Program Administrator, City of Bremerton
(360) 473 -5375
marie.vila@ci.bremerton.wa.us
Kitsap County CDBG/HOME
http:// www. kitsapgov. com/ hr/ block_grant_program /block_grant program.htm
Mailing Address: Kitsap County Block Grant Office
Department of Community Development
3456 th Street, Suite 400
Staff Contacts: Bonnie Tufts, Program Manager, Kitsap County
(360) 337 -4606
btufts@)co.kitsap.wa.us
Shannon Bauman, Block Grant Planner, Kitsap County
(360) 337 -7272
sbauman@co.kitsap.wa.us
Affordable Housing Grant Program/ Homeless Housing Grant
Programhttp: / /www.kitsapregionalcouncii.org /housing cga.php
Mailing Address: Housing Grant Programs
Kitsap Regional Coordinating Council
PO Box 1934
Kingston, WA 98346
Staff Contact: Kirsten Jewell, Manager, Housing Grant Programs
(360) 377 -4900
kirsten (a)kitsapreaionalcouncil.org
2015 Coordinated Grant Notice of Funding Availability 1
2015 Funding Allocation Schedule
2015 Draft Policy Plan and Notice of Funding Availability available for review
Friday 4/18/2014 and public comment. Announcement in Kitsap Sun legal ads and on
www.kitsapgov.com /block grant program /Legal Ads.htm and on
www.ci.bremerton.wa.us
Tuesday 5/20/14 Written Comment period closes
Wednesday 5/21/2014 Bremerton City Council Public Hearing on 2014 Policy Plan and Notice of
Funding Availability, NDGC 1st Floor Council Chambers, 345 6th St, 5:30 pm
Kitsap Regional Coordinating Council Public Hearing on 2015 Policy Plan
Tuesday 5/27/2014 and Notice of Funding Availability; NDGC Council Chambers, 345 6th Street,
10:OOam
Wednesday 5/28/2014 Technical Assistance Meeting (mandatory) — Norm Dicks Government Center
Meeting Chamber, 345 6th Street, 1st Floor. All prospective applicants; 9am
Thursday 5/28/14 2015 On -line Application goes LIVE in FluidReview; links to application
posted to websites.
5/29/2014- Technical Assistance available (by appointment only)
612712014
Tuesday 7/1/2014 Joint Funding Applications Due @ Noon: Online Submission Only
Wednesday 7/9/2014 GRCs Orientation — 9:00 — Noon, WSU Classroom 4th Floor NDGC
7/2/2014- Application Review
8/15/2014
Capital /HOME GRC Interviews: Detailed schedule TBD
9/3/2014- Services /O &M GRC Interviews: Detailed schedule TBD
9/12/2014 Note: GRC will meet for 1 hour (8:30 -9:30) to discuss each day's
applications.
Monday 9/15/2014 GRC Deliberations; Services /O &M 9:00- 12:00, Capital 1:00 -4:00
Publish Draft Action Plan in Kitsap Sun and announce opening 30 -day Public
Friday 9/19/2014 Comment period; funding recommendations posted on City, County and
KRCC websites
Tuesday 9/23/2014 Kitsap Regional Coordinating Council — Information received in packets only.
Tuesday 10/21/2014 Written Comment period closes
Wednesday 10/22/2014 Present Proposed 2015 Funding Recommendations at City Council Study
Session, NDGC City Council Office, 345 6th St, 6th Floor, 5:OOPM
Kitsap Regional Coordinating Council Public Hearing and Action on Kitsap
Tuesday 10/22/2014 County 2015 Action Plan and Funding Recommendations; NDGC Council
Chambers, 345 6th Street, 10:00 am
Wednesday 11/5/2014 Bremerton City Council Hearing on Kitsap Joint Funding Recommendations;
NDGC 1st Floor Council Chambers, 345 6th Street, 5:30PM
Friday 11/14/2014 Annual Action Plan to HUD
Thursday 1/112015 Program Year Begins
2015 Coordinated Notice of Funding Availability 2
About the Funding
The Coordinated Grant Application Process brings together four separate funding sources into one common
application. A brief description of the funding sources is listed below. For more detailed information please
refert to the CDBG /HOME Policy Plan or the AHGP /HHGP Policy Plans.
Community Development Block Grant
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
HOME Investment Partnership Program
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.
Homeless Housing Grant Program
The Homeless Housing Grant Program was created in Washington State by Engrossed Second Substitute
House Bill (ESSHB) 2163 on August 1, 2005. The law created a document recording fee on certain
documents to be utilized by local jurisdictions to reduce homelessness. Administration of the grant funds
are shared between local governments and the state. Eligible uses of the funds are broad as long as the
program funded addresses homelessness through housing and /or services.
Affordable Housing Grant Program
The Affordable Housing for All Grant Program came about through enactment of Substitute House Bill 2060
which became law in Washington State on June 13, 2002. The law created a document recording fee on
certain documents to be utilized for low- income housing.
Consolidated Homeless Grant Program
The Consolidated Homeless Grant Program is part of the WA Commerce's Consolidated Homeless Grant.
The CHG is designed to support an integrated system of housing assistance to prevent homelessness and
secure permanent housing for households who are unsheltered or in temporary housing. This grant
provides resources to address the housing needs of people who are homeless or at -risk of homelessness,
as described in local plans to end homelessness. Please see Washington State Commerce website for
further clarification at
www. commerce.wa.gov/ Programs/ housing /Homeless/ Pages/ ConsolidatedStateHomelessGrantProgram
Eligible Activities
Community Development Block Grant
Eligible activities are defined in the CDBG program regulations at 24 CFR 570.201- 570.207. A list of some
2015 Coordinated Notice of Funding Availability 3
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 generally are 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 CDBG eligible or ineligible activities
refer to CDBG regulations in 24 CFR 570.201 and 570.207
HOME Investment Partnership Program
The Eligible activities are defined in the HOME program regulations at 24 CFR 92.205. A list of some of the
activities follows:
• 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 Kitsap County HOME funds 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 generally are 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
2015 Coordinated Notice of Funding Availability 4
HOME regulations in 24 CFR 92.205
Homeless Housing Grant Program
Eligible activities are defined in the legislation for Washington State Engrossed Second Substitute House Bill
(ESSHB) 2163. A list of some of the activities follows:
• Rental and furnishing of dwelling units for the use of homeless persons;
• Costs of developing affordable housing for homeless persons, and services for formerly homeless
individuals and families residing in transitional housing or permanent housing and still at risk of
homelessness;
• Operating subsidies for transitional housing or permanent housing serving formerly homeless
families or individuals;
• Services to prevent homelessness, such as emergency eviction prevention programs including
temporary rental subsidies to prevent homelessness;
• Temporary services to assist persons leaving state institutions and other state programs to prevent
them from becoming or remaining homeless;
• Outreach services for homeless individuals and families;
• Development and management of local homeless plans including homeless census data collection;
identification of goals, performance measures, strategies, and costs and evaluation of progress
towards established goals;
• Rental vouchers payable to landlords for persons who are homeless or below thirty percent of the
median income or in immediate danger of becoming homeless; and
• Other activities to reduce and prevent homelessness as identified for funding in the local plan.
Affordable Housing Grant Program
Eligible activities are defined in the legislation for Substitute House Bill 2060. A list of eligible activities
follows:
• Provide funding for operation and ongoing maintenance of emergency shelters (not including
capital improvements);
• Provide funding for operation and ongoing maintenance (not including capital improvements) of
housing, including transitional housing, that is eligible for WA State Housing Trust Fund grants.
[Note that the WA State Housing Trust Fund requires that facilities serve the target population for
at least 40 years.];
• Provide funding for capital projects serving persons at or below 50% median income for at least 25
years, including:
• Provide funding to build new single - family housing units, including duplexes, multifamily
housing, and single room occupancies.
• Build emergency or youth shelters;
• Build group homes or special -needs housing;
• Provide funding to rehabilitate housing (repair /replace roofs, walls, electrical systems, doors,
floors, cabinets, ceilings, bathrooms, etc.);
• Acquisition of housing;
• Acquisition of land for future housing;
• Payment of soft costs (not bricks /mortar) associated with housing development.
• Provide short-term rental /mortgage assistance consistent with the requirements of the 2060
legislation.
Consolidated Homeless Grant Program
CHG funds support a variety of activities, including operation of temporary shelter systems 90 days or less
and housing services exceeding 90 days but less than 24 months.
2015 Coordinated Notice of Funding Availability 5
Facility Support
• Lease or rent payment on a building. (If a Lead /Sub Grantee owns the building or has a
mortgage payment on the building, they may not charge the grant "rent" and then
reimburse themselves.)
• Utilities (gas /propane, land line phone, electric, internet, water and sewer, garbage
removal).
• Maintenance (janitorial /cleaning supplies, pest control, fire safety, materials and contract
or staff maintenance salaries and benefits associated with providing the maintenance,
mileage for maintenance staff).
• Security and janitorial (salaries and benefits associated with providing security, janitorial
services).
• Essential facility equipment and supplies (e.g. common -use toiletries, food served in
shelters, bedding, mats, cots, towels, microwave, etc.).
• Expendable transportation costs directly related to the transportation of eligible households
(bus tokens and fuel for a shelter van).
• Hotel /Motel expenses for less than 90 days when no suitable shelter bed is available.
• On -site and off -site management costs related to the building.
• Facility specific insurance (mortgage insurance is not allowable) and accounting.
• Move in costs for permanent housing including: truck rental and hiring a moving company,
application fees, background check fees, credit check fees, rent/security/utility deposits
and first month's rent, and costs of urinalyses for drug_testing of household members if
necessary/required for housing.
✓ Other expenses as approved by Commerce.
The following expenses are not eligible:
19 Direct services other than those described above.
• Replacement or operating reserves.
• Debt service.
• Construction or rehabilitation of shelter facilities.
• CHG facility support in combination with CHG funded rent and rent/utility assistance.
• Any costs that are the responsibility of the tenant.
O Cable television service.
Allowable Expenses for Program Operations for Facility Support:
✓ Housing Stability. Includes activities for the arrangement, coordination, monitoring, and
delivery of services related to meeting the housing needs of households and helping them
obtain housing stability. Services and activities may include developing, securing, and
coordinating services including:
2015 Coordinated Notice of Funding Availability 6
• SSI /SSDI through SSI /SSDI Outreach, Access, and Recovery (SOAR)
• Affordable Care Act activities that are specifically linked to the households stability
plan;
• Case management activities related to accessing Work Source employment
services;
• Monitoring and evaluating household progress;
• Assuring that households' rights are protected; and
• Developing an individualized housing and service plan, including a path to
permanent housing stability subsequent to assistance.
• Housing search and placement. Includes services or activities designed to assist households
in locating, obtaining, and retaining suitable housing. Services or activities may include:
tenant counseling, assisting households to understand leases, securing utilities, making
moving arrangements, representative payee services concerning rent and utilities, and
mediation and outreach to property owners related to locating or retaining housing.
• Outreach. Includes services or assistance designed to publicize the availability of programs
to make persons who are homeless or almost homeless aware of these and other available
services and programs. Not all households assessed will be eligible for assistance. Time
spent assessing a household, whether or not deemed eligible, is an allowable expense
under this activity.
✓ Data collection and entry
✓ Salaries /benefits for program staff
✓ Office space, utilities, supplies, equipment (up to $1,000 per grant period unless approved
in advance by Commerce), telephone, internet, and training /conferences /travel /per diem
✓ General liability insurance and automobile insurance
✓ Other costs as approved in advance by Commerce
Eligible Applicants
Community Development Block Grant and HOME
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 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.
• Demonstrate the legal, financial, and programmatic ability to administer the proposed project; and,
• Meet the County/City requirements for contracting agencies such as insurance requirements, audit
and financial requirements.
2015 Coordinated Notice of Funding Availability 7
Affordable Housing/ Homeless Housing Grant Programs
Eligible recipients of the funding from SHB 2060 shall be public housing authorities, IRS - certified non - profit
agencies /providers of affordable housing, Cities, Towns, the County, Tribes, and for - profit developers.
Consolidated Homeless Grant Program
The Consolidated Homeless Grant Program is part of the WA Commerce's Consolidated Homeless Grant.
The CHG is designed to support an integrated system of housing assistance to prevent homelessness and
secure permanent housing for households who are unsheltered or in temporary housing. This grant
provides resources to address the housing needs of people who are homeless or at -risk of homelessness,
as described in local plans to end homelessness. Please see Washington State Commerce website for
further clarification at
www. commerce.wa.gov/ Programs/ housing /Homeless/ Pages/ ConsolidatedStateHomelessGrantProgram
Funding Priorities
Each grant program in the Coordinated Application has different funding priorities. Some of these priorities
are based on legislated mandate, and others are derived through community input.
CDBG and HOME
The priorities for CDBG and HOME funds are outlined in the 2011 -2015 City of Bremerton and Kitsap County
Consortium Consolidated Plan. The five priority need areas identified in the Plan are:
1. Housing
2. Non - Homeless Special Needs Housing
3. Homeless
4. Community Development
5. Economic Development
The Plan provides objectives and strategies for how our community will meet the Priority Needs and will be
used to guide funding allocations; all projects must meet at least one objective and strategy.
The 2011 -2015 City of Bremerton and Kitsap County Consortium Consolidated Plan may be viewed at:
http:// www. ci .bremerton.wa.us /display.12hp ?id =790
htti): / /www.kitsapgov.com /hs /block grant program /Plans.htm
More information about funding priorities may also be found in the City of Bremerton / Kitsap County
CDBG /HOME Policy Plan.
Affordable Housing Grant Program and Homeless Housing Grant Program
The Affordable Housing Grant Program and Homeless Housing Grant Program funding priorities are
determined annually through a collaborative process of the Kitsap Continuum of Care Coalition and the Kitsap
Housing Funders Leadership Group, and approved by the Kitsap Regional Coordinating Council.
AHGP priorities are determined by type of housing allowed in the legislation. HHGP priorities must be
consistent with the Kitsap Homeless Housing Plan.
The priorities proposed for approval by the KRCC Executive Board on May 27, 2014 for the 2015 Cycle are as
follows:
The 2015 priorities for the Affordable Housing and Homeless Housing Grant Programs consist of three aspects:
2015 Coordinated Notice of Funding Availability 8
1) Program Resources /Innovation. Recognizing that funding sources are diminishing even as the
community need is increasing, organizations must respond with programs that are maximizing access to
resources and focusing on successful outcomes. Priority should be given to applications that demonstrate:
• Partnering & collaboration, including specific examples with other programs and organizations
• Leveraging resources, including other grant funding, community matches, or in -kind donations
• Specific outcomes & metrics, and demonstrating the program's ability to meet them
• Innovation, specifically how the program evolved or changed to improve outcomes, respond to
best practices, or provide better service to clients
2) Balance support for existing programs AND new programs. Community investments have been ma
in many existing programs and grant support for these programs is essential to their viability. Losing these
valuable housing and services programs would be extremely detrimental to the community and would undermir
significant past efforts to create them. At the same time, emerging needs require that new solutions be
developed, which will also need to be supported by long -term community investments.
The grant awards should balance the need to support existing successful programs with funding
for new programs
3) Funding Focus Areas. Listed in the chart below are funding focus areas for the eligible activities for
each of the grant programs. (See chart on next page.)
2015 Coordinated Notice of Funding Availability 9
Homeless Housing Grant Program Affordable Housing Grant Program
Limits on Can be anything in Homeless Housing Plan Legislation limits; see below for list of possibilities
Priorities
2015 Funding Priorities are divided into three focus They are listed in priority order.
Focus areas with bullet points areas meant to illustrate
Areas the breadth of the priority, not to limit the uses. (1) Supporting building operation and
The Focus Areas are all of equal priority, and are not maintenance costs of housing projects or units
ranked. within housing projects eligible to receive housing
trust funds, that are affordable to very low- income
Prevention, including but not limited to: households with incomes at or below fifty percent
• Case management & supportive services of the area median income, and that require a
for prevention supplement to rent income to cover ongoing
• Emergency rental assistance operating expenses;
Crisis, including, but not limited to: (2) Acquisition, construction, or rehabilitation of
• Case management and supportive housing projects or units within housing projects
services for crisis management that are affordable to very low- income households
• Emergency Shelter support, including ones with incomes at or below fifty percent of
filling un -met gaps in service the area median income, including units for
• Supportive services homeownership, rental units, seasonal and
permanent farm worker housing units, and single
Stabilization, including, but not limited to: room occupancy units;
• Case management for stabilization
• Rental subsidy The following allowableuses of funds are a low
• Access to additional units of transitional funding priority from AHGP funds for the 2015
and permanent housing cycle:
• Supportive housing and services
(3) Rental assistance vouchers for housing units
An additional Priority is Coordination that are affordable to very low- income households
/Organization /System Efficiency. with incomes at or below fifty percent of the area
This approach is meant to ensure that, as a median income, to be administered by a local
community, we are balancing the goals of ending public housing authority or other local organization
homelessness, addressing immediate homeless that has an existing rental assistance voucher
client needs, and ensuring that there is permanent program, consistent with or similar to the United
stable affordable housing available for long -term States department of housing and urban
needs. Additionally, the most efficient use of these development's section 8 rental assistance voucher
limited funds is ensured through coordinating and program standards; and
system- enhancing activities.
(4) Operating costs for emergency
Case management is a key component of many shelters and licensed overnight youth shelters.
homeless programs. However, Kitsap lacks an
agreed -upon & consistent definition of case
management. A community -wide definition (or
defined levels of case management) would assist in
providing more consistent levels of client service
and evaluation of programs. It is recommended
that this topic be addressed over the coming year.
2015 Coordinated Notice of Funding Availability 10
2015 Funds Available
CDBG and HOME programs are federally funded through the Department of Housing and Urban
Development. Funding levels are determined by HUD after the Federal Budget is finalized, which often
occurs after the program year has begun. Kitsap County and the City of Bremerton estimate funding levels
in order to start the grant application process; therefore, funding amounts shown in the table below are
estimates If HUD allocates a different amount to these programs than what was estimated, actual funding
awards will be increased or decreased to accommodate the discrepancy. The estimated funds below are
based on 2014 allocations.
The Affordable Housing Grant Program and the Homeless Housing Grant Program grant funds are
considered local funds. Washington State legislation created a surcharge on certain types of documents
being recorded at the Auditor's Office in each county. A portion of the funds collected is remitted to
Washington State for distribution through statewide housing & homeless programs. The portion of the
funds that remains in each county is used to further the goals of the legislation through local grant
programs. In Kitsap, these are the Affordable Housing Grant Program and the Homeless Housing Grant
Program. Funds for each grant cycle are collected in advance; therefore grant award amounts are final,
unless legislative action affects the funding or eligibility.
The Consolidated Homeless Grant funds are funded through the Washington State Department of
Commerce. Funding amounts are determined by Commerce after the State Budget is finalized and based
on community input. The amount included in the NOFA is an estimate and actual awards will be increased
or decreased to accommodate any discrepancy.
For 2015, the minimum grant request is $10,000. All grants will be made for one year only (no forward
commitments).
The following table shows an overall view of the total estimated amount of funds available in this
application cycle by the application type and funding sources.
App Type : Amount of Fun ds Available , Funding Sources
f Public Services and Operations
$200,842 Bremerton / Kitsap CDBG
L & Maintenan
Capital (including economic
development _ _$1,789, _Bremerton/Kitsap CDBG &HOME
Flexible Funding (could be any Homeless Housing Grant Program,
the above application types) $1,407,x26 Affordable Housing Grant Program
Consolidated Homelss Grant
Total $3,398,283 j A ll funding sources
The tables on the following pages give a more detailed view by jurisdiction and funding source; showing
the estimated amount of funds available as well as the proposed distribution of those funds.
2015 Coordinated Notice of Funding Availability li
2015 Proposed Distribution of City of Bremerton CDBG Funds
Estimated Funding Available for the 2015 CDBG Allocation Process
Estimate of 2015 Entitlement 376,880
Tentative Program Income Available 0
Total Entitlement + PI 376,880
Reallocated Funds Prior Year 0
Total Available for Allocation 376,880
Estimated Allocation of 2015 CDBG Funds
Available for 2015 Planning and Admin (20% of entitlement + PI) 75,376
:Available for 2015 Public Service (15% of entitlement + 15% prior year PI) 56,532
Available for Capital Projects 200,475
Available for Down- Payment Assistance 20,000.
.Available for Economic Development Projects 24,497.
Subtotal -Available for grant applications 301,504
Total Allocation of funds 376,880
2015 Proposed Distribution of City of Bremerton HOME Funds
Estimated Funding Available for the 2015 HOME Allocation Process
Prior Year Uncommitted HOME Allocation 193,416
2015 Program Income 10,000
2015 HOME Allocation - EN projected 247,252
Total HOME Allocation Available - by Source 450,668
Estimated Allocation of 2015 HOME Funds
Available for 2015 Planning and Administration (10% 2014 award + 10 PI) 25,725
Available for CHDO Project (15% of 2015 award) 37,088`.
:Available for Down- Payment Assistance 55,000
;Available for any HOME Project 332,855
Subtotal - A vailable for grant applications 424,943
Total Allocation of Funds 450,668
2015 Coordinated Notice of Funding Availability 12
2015 Proposed Distribution of Kitsap County CDBG Funds
Estimated Funding Available for the 2015 CDBG Allocation Process
Estimate of 2015 Entitlement 962,072
Tentative Program Income Available 0
Total Entitlement + PI 962,072
Reallocated Funds Prior Year 0
Total Available for Allocation 962,072
Estimated Allocation of 2015 CDBG Funds
Available for 2015 Planning and Admin (20% of entitlement + PI) 192,414
Available for 2015 Public Service (15% of entitlement) 144,310
; Available for Capital Projects 562,813
Available for Economic Development 62,535
Subtotal - Available for Grant Applications 769,6581
Total Allocation of Funds 962,072
2015 Proposed Distribution of Kitsap County HOME Funds
Estimated Funding Available for the 2015 HOME Allocation Process
Estimate of 2015 HOME Allocation - EN projected 588,696
Prior Year Uncommitted HOME Allocation 222,818
2015 Program Income 43,593
Total HOME Allocation Available 855,107
Estimated Allocation of 2015 HOME Funds
City of Bremerton Set -aside 247,252
Available for 2015 Planning and Administration (10% 2015 EN + PI) 38,503
Available for CHDO Project (15% of 2 entitlement) 51,217
Available for any HOME Project 518,135
Subtotal - Available for Grant Applications 569, 352
Total Allocation of Funds 855,107
2015 Proposed Distribution of Affordable Housing Grant Funds
Estimated Funding Available for 2014 AHGP Allocation Process
2014 AHGP - Turn -Back Funds $TBD
2014 AHGP - Funds collected July 1, 2012 - June 30, 2013 (estimated) 225,000
Total AHGP Allocation Available 225,000
Available for any AHGP Project 225,000
Total Allocation of Funds 225,000
2015 Coordinated Notice of Funding Availability 13
2015 Proposed Distribution of Homeless Housing Grant Funds
Estimated Funding Available for 2014 HHGP Allocation Process
2015 HHGP - Turn -Back Funds TBD
2015 HHGP - Funds collected July 1, 2012 - June 30, 2013 (estimated) 1,100,000
Total HHGP Allocation Available 1,100,000
2015 HHGP - Coordinated Entry Contract 313,300
Available for any HHGP Project 786,700
Total Allocation of Funds 1,100,000
2015 Proposed Distribution of Consolidated Homeless Grant Funds
Estimated Funding Available for 2015 CHG Allocation Process
2015 Permanent Supportive Housing Incentive Funds $82,826
Total CHG Allocation Available $82,826
Available for any CHG Project $82,826
Total Allocation of Funds $82,826
How to Access and Submit Application
Online Application will be available beginning Thursday, June 6, 2013. No other method of application will
be accepted. You will need a computer with internet capability in order to access the application website.
The Application web address will be posted on the City, County and KRCC websites, and
information will be sent to the Coordinated Grant interested parties e-mail list. Notifications
will also be available to any agency or organization who signs up on the Kitsap County Block
Grant web site to receive notices. To sign up go to:
httR: / /www.kitsapgov.com /hs /block grant program /Application Cvcle.htm
and at the top of the page click on the link to receive text or email updates. This link will take
you to the Kitsap County Electronic Notification System where you can sign up.
Application submission deadline is July 1, 2014 at NOON
Where to Submit Applications
An application is considered complete if it meets the following criteria:
• The applicant has attended the mandatory technical assistance session on May 28, 2014.
• Application submitted ONLINE via FluidReview
• Application submitted ON TIME (July 1, 2014 at noon)
• All required application questions /sections are completed in an adequate manner.
Assistance with the Application
A Mandatory Technical Assistance Session will be held at on May 28, 2014, gam in the Norm
Dicks Government Center 1 Floor Meeting Chambers.
One -on -One Technical Assistance may be scheduled through June 27, 2014 by contacting the
staff listed in the front of this notice.
2015 Coordinated Notice of Funding Availability 14
Application Technical Assistance with the online application host, FluidReview, will be available
during the application period (May 28 — July 1) through the application site.
Application Review and Rating Process
This is a competitive application process for limited funding, therefore, applications
that meet all criteria are not guaranteed an award of funds and successful applications
may be funded for less than the amount requested
Applications not meeting the requirements will be disqualified from consideration for
funding and will not move any further through the process
Written notice will be sent to the disqualified Applicant.
All applications will go through the following review and rating process.
1. Initial Eligibility Screening
a. Application is complete.
b. Applicant meets eligibility requirements as of the application due date.
c. Project or activity is an eligible use of funds.
2. Staff Technical Review
a. Organizational Financial Review — Accountants from the City/County will review for Agency
financial soundness.
b. Organizational Capacity — Staff will review the capacity of the agency to manage grants
based on previous grant performance, board makeup, organizational structure (including
staffing), organizational data, etc.
c. Project Priority Review — Staff will review project goals and population served for alignment
with the Funding Priorities.
3. Grant Recommendation Committee (GRC) - The committee will make funding decisions using the
following process:
a. Review and evaluate each application using review and scoring guides.
b. Conduct interviews with each applicant; review responses using review and scoring guides.
• Non - capital interviews (services, 0 &M, microcredit ED, CHDO operating) will be 20
minutes in length which includes 10 minute agency presentation and 10 minute
question /answer.
• Capital interview will be 35 minutes in length which includes 15 minute agency
presentation and 20 minute question /answer.
• Interview length for agencies with multiple submissions of the same type (non -
capital, for example), may be shortened.
c. Assign a priority ranking and recommended funding level to all projects.
d. Staff matches ranking with available and appropriate funding sources.
e. GRC finalizes recommendations and sends to the KRCC and the Bremerton City Council.
4. Bremerton City Council and Kitsap Regional Coordinating Council — Public hearings to consider the
Grant Recommendation Committee recommendations will be held before the Bremerton City
Council and the Kitsap Regional Coordinating Council. Those two Boards will make the final
funding approval.
5. Approved funding recommendations which include Federal funds are send to HUD for approval in
the annual Action Plan.
Grant Recommendation Committee (GRC)
The Grant Recommendation Committees review and recommend funding for the Coordinated Grant
Application. GRC members read applications, review agency and financial capacity analyses, conduct
applicant interviews, score, rank and develop funding recommendations. Recommendations are then
2015 Coordinated Notice of Funding Availability 15
presented to the Bremerton City Council and Kitsap Regional Coordinating Council, which make final
funding decisions.
GRC volunteers are selected based on their knowledge of the community's needs and willingness to
donate their time to GRC activies. GRC members must demonstrate the specific skills, qualifications and
background needed to evaluate applications and recommend funding, such as:
Affordable housing Grant writing or grant management experience
Architechture and planning Homeless programs
Compliance monitoring Housing development
Practical experience with HUD Mortgage lending
Construction project management Non - profit community service provider experience
Economic development Project management experience
Finance and accounting Real estate
2015 Grant Recommendation Committee Makeup
There are two Grant Recommendation Committees: "Services ", and "Capital ". Each committee has eight
members, and members are appointed annually. Within each committee, members are assigned to a
team to review and rate a subset of the grant applications submitted. Each application is reviewed by a
minimum of 4 GRC members. Each application is assigned a lead GRC member, and the lead provides
additional information to the GRC members who did not review the project. All GRC members take part in
the Applicant interviews.
GRC positions are filled by appointment. The Mayor of the City of Bremerton appoints two members to
each committee, Kitsap County Commissioners appoint three members to each committee, and the cities
of Bainbridge, Port Orchard and Poulsbo appoint one member each to each committee.
HUD Income Limits
Median Family Income (MFI) is determined periodically by the Department of Housing and Urban
Development (HUD) on the basis of state and local earnings data and is published for cities and counties.
The Median Family Income for the Bremerton - Silverdale MSA effective December, 2012 is $74,000 for a
four - person household. HUD updates income limits annually each December. The most up -to -date income
limits will apply to all CDBG and HOME funded projects. They may be found at www.huduser.or4
Median Family Income
Bremerton - Silverdale MSA; Effective December, 2013
NUMBER IN EXTREMELY VERY LOW LOW INCOME
HOUSEHOLD LOW INCOME INCOME (31% (51% - 80%
(BELOW 30% - 50 MFI *) MFI *)
MFI *)
1 $15,500 $25,900 $41,450
2 $17,800 $29,600 $47,400
3 $20,000 $33,300 $53,300
4 $22,200 $37,000 $59,200
5 $24,000 $40,000 $63,950
6 $25,800 $42,950 $68,700
7 $27,550 $45,900 $73,450
8 $29,350 $48,850 $78,150
*MFI = Median Family Income is determined periodically by the Department of Housing and Urban Development (HUD) on the basis
2015 Coordinated Notice of Funding Availability 16
of state and local earnings data and is published for cities and counties. These figures represent percentages of MFI for Bremerton —
Silverdale Metropolitan Statistical Area (MSA) published by HUD December, 2013.
If Your Agency is Awarded Funds
If your project /program is awarded funding, you will need to understand and follow the regulatory
requirements associated with each of the funding sources.
Please refer to the following documents for guidance:
• Bremerton /Kitsap County CDBG /HOME Policy Plan
( http: / /www.ci .bremerton.wa.us /display.ghR ?id =864
• Bremerton /Kitsap County CDBG /HOME Guidebook
(http://www.kitsapgov.com/hs/block—grant—Program/Guidebook.htm)
• AHGP, HHGP and CHG Policy Plans ( http: / /www.kitsapregionalcouncil.org /housing cga.php
Things you should know:
1. 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
meet with Block Grant staff to discuss Federal regulations.
• In addition to the rules and requirements of HOME and CDBG, there are several additional
broad Federal rules that must be followed including rules surrounding non - discrimination
and equal access, employment, contracting and procurement, environmental requirements,
record keeping and financial controls.
2. Contracting
• Your agency will be required to enter into a contract with the jurisdiction providing the
funding, either the City of Bremerton, Kitsap County or Kitsap Regional Coordinating
Council.
• The City of Bremerton and Kitsap county manage their CDBG and HOME contracts
separately. However, for both jurisdictions, the following applies:
• Public Service contracts may begin incurring costs at the start of the contract year.
• Capital contracts must receive a notice to proceed before costs can be incurred.
• Contracts for federal funds operate on a reimbursement basis.
• The Kitsap Regional Coordinating Council (KRCC) manages the grant contracts for awards
from the Affordable Housing Grant Program and the Homeless Housing Grant Program, in
partnership with the Kitsap County Auditor's Office.
• The Auditor's Office uses information provided by the KRCC Grant Program
Manager to issue contracts to grantees.
• The KRCC Grant Program Manager monitors grantees and approves
reimbursement requests.
• The program year begins January 1, 2015.
o NOTE: If you are a recipient of federal funds you may not receive a contract until
mid -year, based on when the federal budget is approved and when the
City /County receive a contract from HUD. Depending on your project, your
contract term may coincide with the program year start date.
3. Reporting Requirements
• Quarterly Reports It is your responsibility to submit quarterly performance and
demographics reports, beginning January 1, 2015. Reports are to be submitted to each
funding agency you are under contract with.
• HMIS Reporting Homeless projects /programs will be required to report in the Homeless
Management and Information System (HMIS) system in addition to any other required
quarterly reports. For further information about HMIS, please consult the HHGP Policy Plan.
2015 Coordinated Notice of Funding Availability 17