Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
3398
RESOLUTIONNO. 3398 ARESOLUTION oftheCityCouncil oftheCityof Bremerton, Washington, adopting the 2026 City ofBremerton CDBG/HOMEPolicyPlan. WHEREAS, theCityof2026Bremerton (City) isanentitlement community whichreceives aCommunity Development BlockGrant (CDBG) eachyear fromtheDepartment ofHousing andUrbanDevelopment (HUD), andalsoreceivesfunding fromHUD'sHome Investment Partnerships (HOME) fund viaaninter-localagreementwith Kitsap County; and WHEREAS, theDepartment ofCommunity Development BlockGrantstaff estimates a2026CDBG allocation of $300,000with20% set-asideforadministration; and WHEREAS, 2026HOMEallocation will beincludedin 10% ofwhichwillbeset-asidefor administration, and15% forCommunityHousingDevelopment Organization projects; and WHEREAS, allprojects must meetbothaConsolidated PlanFundingPriorityas wellasaCouncil Priority, bothofwhicharedetailedinthePolicyPlan; and WHEREAS, allfundingwillbe allocated competitivelytoeligible applicantsfor projectsthat fittherequirementssetforthintheCDBG regulationsat24 CFRpart570and HOME regulationsat24CFRpart 92; and WHEREAS, theDepartment ofCommunity Development Block Grantstaff stadvertisedintheKitsapSunandpostedontheCity'swebsiteonWednesdayMay1a15-day stwrittenpubliccommentperiodcommencingMay1ending May17th, 2025, andopen forpublic thcommentinapublichearingonJune4; and WHEREAS, commentsreceivedwillbeshared withtheCityCouncil; NOW THEREFORE, THECITYCOUNCIL OFTHECITYOFBREMERTON, WASHINGTON, DOESHEREBY RESOLVEASFOLLOWS: SECTION 1. Therecitalsandfindingsoffactsetforthinthisresolution are hereby incorporated asiffullysetforthherein. SECTION2. The2026CDBG/HOMEPolicyPlan attachedheretoasExhibit A ishereby adopted. 1 2026 CDBG/HOMEPolicy Plan Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C SECTION 3. Severability. Ifanyoneor moresections, subsections, orsentences ofthisResolutionareheldto beunconstitutional orinvalid, suchdecisionshallnotaffectthe validityoftheremaining portion ofthisResolution andthesameshallremain infullforceand effect. SECTION 4. Effective Date. ThisResolutionshalltakeeffect andbe inforce immediatelyupon itspassage. PASSEDbytheCityCounciloftheCityofBremerton, Washingtonthis _____ dayof _____________, 2025. ERICYOUNGER, CouncilPresident APPROVED ASTOFORM: ATTEST: KYLIE FINNEL, CityAttorney ANGELA HOOVER, CityClerk 2 2026 CDBG/HOMEPolicy Plan Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C June 4th CityofBremerton Community DevelopmentBlock Grant kit 2026CDBG/HOME POLICY PLAN Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPOLICYPLAN Contents ExecutiveSummary .......................................................................................... 1 Community Development BlockGrantProgram ............................................ 2 CDBGFunding .................................................................................................. 3 HOMEFunding .................................................................................................. 7 AllocationProcess ........................................................................................... 9 Policies & Regulations for UseofFunds...................................................... 10 CitizenParticipationPlan ................................................................................17 Consolidated Plan ...........................................................................................17 Appendix A – CitizenParticipationPlan Appendix B- Funding Process Appendix C – CDBG EligibilityRequirements & Program Rules Appendix D - HOME Eligibility Requirements & ProgramRules Appendix E – Conflict ofInterest Policy Appendix F – Glossary Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 Executive Summary The2026CityofBremertonCDBG/HOMEPolicyPlanprovides guidance forapplicants applyingfor2026fundsonthingssuchaseligibility, overviewofthefundingallocation process, regulatoryrequirements,andlocalpolicydecisions. TheallocationofCDBGandHOMEfundsareguidedbytheStrategicPlan whichisapartof theConsolidatedPlan. KitsapCountyandtheCityofBremertonhavepreparedaConsolidated Planfor2026-2030inordertoimplementourcommunity’sfederalprogramfunds. Thepurpose oftheplanistoevaluatecommunityneedsandsetgoalsforthefiveyearplanperiod. Through aCommunityNeedsAssessment, HousingMarketAnalysisandwithcommunityand stakeholderinput, theCityofBremertonhasdevelopedaStrategic Plan. TheCityof Bremerton’sStrategicPlanoutlinestheprioritiesandgoalswhichguidetheallocationoffunds overthefiveyearperiod. Thefundsallocatedforthe2026grant applicationcyclewillbe included intheYear1, ActionPlanassociatedwiththe2026-2030Consolidated Plan. Fundingamountswillbedeterminedbystrengthoftheapplication, projectreadiness, locationand needforthetypeofhousingbeingproposed: Theprioritiesidentifiedforthefive-yearperiod areas follows: Priorities TheCitywillcontinuetofundCDBGCapital/EconomicDevelopmentprojects**: Preservationand/orrehabilitationofaffordablehousingincluding o Acquisitionofhousingtocreateorpreserveunitsofaffordable housing o Weatherization/repairofexistinghousingunits Infrastructureandpublicfacilitiesprojectsincluding: o StreetandSidewalkimprovements inlow-incomeneighborhoods o Parksprojects/facilitiesinlow-incomeareas Microenterprise Assistance Programs CDBGPublicServiceswillnotbefundedinatleastyear1 (2026)ofthe2026-2030Consolidated Plan. Evaluationofpublicservicesneedswillbeevaluatedonanannualbasisbeginningyear2 2027). –publicservicesinconsolidated plan HOMEHousingprioritiesareofequalimportance. Constructionoracquisition ofnewrentalhousingunits Acquisitionofhomeowner housingthroughdown-paymentassistance 1 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 PolicyChangesfor2026: 1.TheCityofBremerton HOMEFundingpriorityistoincreaseaffordablehousingstock. 2.TheCDBGNOFAwillbefor, housingrehabilitation, economicdevelopment microenterpriseassistance, andpublicfacilitiesandinfrastructurethatmeetthe prioritiesoutlinedaboveandcontainedintheConsolidatedPlan. 3.PublicServicesprojectswillnotbefundedin2026andevaluationoffuturepublic servicesneedswillbeevaluatedonanannualbasisbeginning in2027. 4.NewapplicantsmustsubmitanApplicantIntent Form. Capitalprojects willbeaskedto meetwithBlockGrantStafftodiscussprojecteligibilityandfederalrequirements priorto applying. Technicalassistanceisavailableforallapplicants byappointment. Information hasbeenposted totheCity’swebsiteinadditiontotheCoordinatedGrantApplication websiteandincludedintheCDBGNOFA. 2 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHAT ISTHECOMMUNITY DEVELOPMENTBLOCKGRANT PROGRAM? TheCommunityDevelopment BlockGrantProgramisasourceoffundsusedinthelocal communitytoprovidedecenthousing, suitablelivingenvironments andeconomic opportunitiesprimarilyforlowandmoderateincome households. TheCityofBremertonisdesignatedasanEntitlementCommunitybytheDepartmentof HousingandUrbanDevelopment (HUD) andreceivesfederalfunds intheformof CommunityDevelopmentBlockGrant (CDBG). KitsapCountyandtheCityofBremerton togetherformaconsortiumandreceiveanallocationofHOME InvestmentPartnership Program (HOME) funds. ThroughaninterlocalagreementbetweentheCountyandthe Cityapercentage (asdeterminedbyHUD) oftheannualallocationofHOMEfunds is designated fortheCityandtheremainingdesignatedfortheCounty. AstheCityof Bremertonisdesignated asaseparateEntitlementCommunityandthereforetheCity receivesitsownCDBGfundsdirectly. CDBG fundsareallocatedannuallythroughtheCityinRequestsforFundingProposals. HOMEfundsareallocatedannually throughacompetitivegrantprocesscoordinatedbyKitsap County. ProjectsfundedareincludedintheannualActionPlansubmittedtoHUD. Projects funded mustaddressneedsidentifiedintheConsolidatedPlan,whichisupdatedeveryfiveyears. 3 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 CDBGFUNDS WHATARECDBGFUNDS? TheCommunity DevelopmentBlockGrant (CDBG) programisaflexibleprogramthatprovides communities withfundingtoaddressawiderangeofuniquecommunity development needs. TheprogramisauthorizedbyTitleIoftheCommunityDevelopment Actof1974. Fundsare usedtoassistinthedevelopmentofdecenthousing, createsuitablelivingenvironments, and expandeconomicopportunitiesprimarilyforpersonsoflowandmoderateincome. Allprojects fundedwithCDBGmustmeetoneofthethreenationalobjectives: 1.Principally benefitlowandverylowincomehouseholds; 2.Reduceorpreventslumandblight;or, 3.Meetanurgentneed (emergencyornaturaldisaster) SeeAppendixCformoredetails. WHO IS ANELIGIBLEAPPLICANT/RECIPIENT? Eligibleapplicant/recipientsinclude: CityorCountygovernments Publicandprivatenonprofitorganizations(501(c)3) Section301(d) smallbusinessinvestmentcompanies Localdevelopmentcorporations Privatefor-profitorganizationsmayimplementcertaincapital, economicdevelopment andmicroenterprise activities (pleasecontacttheBlockGrantAdministratortoconfirm if youractivityiseligible). Faithbasedorganizations (restrictionsmayapplytoensureequalemployment opportunity) Additionally, applicantsmust: Demonstrateanactivegoverningbodyorboardofdirectorsorotherapplicable leadershipwithinyourorganizationwithskillsandexperiencetoprovideleadershipand directiontotheagency. Demonstrate thelegal, financial, andprogrammaticabilitytoadministertheproposed program/project;and, MeettheCityrequirementsforcontractingagenciessuchasinsurancerequirements, auditandfinancialrequirements. 4 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 WHATAREELIGIBLEACTIVITIES? Eligible activitiesaredefinedintheCDBGprogramregulations at24CFR570.201and570.207 andincludedinthelistbelow. Forthe2026-2030planperiodfundsareprioritizedforcertain activitiessonotalleligibleactivitieswillbefunded. PleaseseetheExecutiveSummaryofthis documentforprioritiesandspecificeligibleactivitiesfor2026funding: Acquisition ofrealpropertybypurchase, lease, ordonation Acquisition, construction, reconstruction, rehabilitation orinstallation ofpublic facilitiesand improvements HousingRehabilitation Codeenforcement indeterioratedordeteriorating areas Clearance, demolitionandremovalandrehabilitationofbuildingsandimprovements Removalofmaterialandarchitectural barriers Publicservices Planningactivities AssistancetoCommunityBasedDevelopmentOrganizations (CBDO) tocarryoutprojects Assistancetomicroenterprise businesses andeconomicdevelopmentprojectsasdefined under 24CFRPart570, SubpartC Housingservicessuchashousingcounselingandenergyauditing Assistancetofacilitateandexpandhomeownershipopportunitiesforlowandverylow- incomepeople Leadbasedpainthazardevaluationandreduction Thefollowing activitiesaregenerallynoteligibleforCDBG funding: Newresidentialhousingconstruction, exceptinspecialcircumstances Regulargovernment operations Buildingssuchascityhalls, policestations, orotherbuildingsprimarilyforthegeneral conductofgovernment (exceptfortheremovalofarchitecturalbarriers) Incomepaymentssuchaspaymentstoindividualsorfamiliesforfood, clothing, orrent, exceptincertaincircumstances Politicalactivities VehiclesandEquipment AppendixBprovidesadditionalinformation designedtoassistyouindefiningtheeligibilityand nationalobjectivethatyouractivitymeetsandthetypeofinformationyouwillneedtoprovideinyour application. 5 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 FUNDINGPRIORITIES AllProjects MUSTmeetoneofthefollowing Consolidated Planfundingpriorities: Preservationand/orrehabilitationof affordablehousingincluding oAcquisitionofhousingtocreate orpreserveunitsofaffordablehousing oWeatherization/repairofexistinghousingunits Infrastructureandpublicfacilitiesprojectsincluding: o StreetandSidewalkimprovements inlow-incomeneighborhoods o Parksprojects/facilitiesinlow-incomeareas Microenterprise Assistance Programs HOWMUCHMONEYISAVAILABLE? CDBG programsarefederallyfundedthroughtheDepartmentofHousingandUrban Development. FundinglevelsaredeterminedbyHUDaftertheFederalBudgetisfinalized, whichoftenoccursaftertheprogramyearhasbegun. TheCityofBremertonestimatesfunding levelsinordertostartthegrantapplication process; therefore, fundingamountsshowninthe tablebelowareestimates. IfHUDallocatesadifferentamounttotheseprogramsthanwhat wasestimated, actualfundingawardswillbeincreasedordecreased toaccommodatethe discrepancy. Theestimatedfundsbelowarebasedon2024**allocationsandhistoricfunding trends. Thefollowingtable (onnextpage) showsanoverallviewofthetotalestimatedamountoffunds availableinthisapplication cyclebytheapplication typeandfundingsources. Pleasenotethat theCityofBremertonisbasingthisestimateonanamountof $300,000. Thereisnodesignated amountforapplicationtype, applicantsareencouragedtoapplyfortheamountoffundingthey needtocompleteaproject. Pleasenotethatprojectswithmultiplesourcesoffundingwillbe morecompetitivethanprojectsthatareutilizingCDBGastheironlyfundingsource. Asof05/01: due to delaysinpassingthefederal budget, HUDhasnotissued 2026CPD formula allocations 6 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 WHATISTHEDISTRIBUTION OFCDBGFUNDS? TheCDBGprogramallowscertainset-asidestofurtherspecificprogramgoals. TheCityhasset additionalfundingtargets tohelpmeetlocalobjectives. Thefollowingisthedistributionforthe CityofBremerton: CDBG Planning & Administration – 20%max City-WideEconomicDevelopmentand Capitalprojectsconsistentwiththe5yearfunding priorities AppendixCprovides additionalinformationdesignedtoassistyouindefiningtheeligibilityand nationalobjectivethatyouractivitymeetsandthetypeofinformationyouwillneedtoprovidein yourapplication. EstimatedEntitlement $ (300,000.00) EstimatedProgramIncome$ (5,000.00) EstimatedPriorYearFunding (capitalprojects)$ (23,000.00) TOTAL$ (328,000.00) Funding AvailableforGrantAdministration $ 65,600.00 20% ofEntitlement + Program Income)= EstimatedFundingAvailableforGrantApplications $ (262,400.00) ReviewExecutive Summaryabovefordetailson fundingprioritiesforcapitalprojects 7 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 HOMEFUNDS WHAT AREHOMEFUNDS? TheHOMEProgram wascreatedbytheNationalAffordableHousingActof1990 (NAHA). TheHousingandCommunity DevelopmentActof1992andtheMultifamilyProperty DispositionActof1994madeimportantchangestotheProgram. TheintentoftheHOME Programisto: Expandthesupplyofdecent, safe, sanitary, andaffordablehousing; Strengthentheabilitiesofstateandlocalgovernmentstoprovidehousing; Expandthecapacityofnonprofitcommunitybasedhousingdevelopmentorganizations; and, Leverageprivatesectorparticipationinfinancingaffordablehousing. BeneficiariesofHOMEfunds – homebuyers, homeowners,ortenants – musthaveincomes below80% oftheareamedianincome. TheHOMEprogramalsorequiresamatchof25% or greaterinothernon-federalfundsforprojects. WHAT AREELIGIBLE ACTIVITIES? TheEligibleactivitiesaredefinedintheHOMEprogram regulationsat24CFR92.205. Alistof someoftheactivitiesfollows: Rehabilitation ofresidentialpropertywherepropertyisfullyrepaired New constructionofresidentialproperty Acquisitionofresidentialproperty Rentalassistancepaymentstotenants RelocationassociatedwithaneligibleHOMEproject Asmallpart (upto5%) oftheannualHOMEallocationmaybeusedtohelppaythe operatingexpensesofdesignatedCommunity HousingDevelopmentOrganizations CHDOs) withintheguidelinesestablished byHUD Thefollowing activitiesaregenerallynoteligibleforHOMEfunding: Project reserveaccounts, exceptfortheinitial18monthsofaHOMEassisted new constructionproject Emergencyhomerepairprograms Publichousingunits Commercialproperties Shelters, unlesstheymeetSection8HousingQualityStandardsandotherwisecanbe consideredrentalhousing Projectbasedtenantassistance Note: Theabovelistsarenotcomprehensive. Foracomplete listofeligibleorineligible activitiesrefertoHOMEregulations in24CFR92.205 8 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 WhataretheHOME priorities for theCityofBremerton? Constructionoracquisition ofnewrentalhousingunits Acquisitionofhomeowner housingthroughdown-paymentassistance HOWMUCHMONEYISAVAILABLE? Priorities: Projects whichcreateorsupportaffordablehousing Rental projectsmustservehouseholdsatorbelow80% AMI. HOMEassistedunitsmustserve householdsatorbelow60% AMI, with20% servingatorbelow50% AMI. HOMEfundswillbeallocatedviaaseparateprocessthanCDBGfunds. Thisprocesswillbein coordinationwithKitsapCountyofwhomtheCityofBremertonparticipates asapartofthe KitsapCountyHOMEConsortium, however, theCitywilldetermineanyprioritizationofitsown percentageofHOMEfunds. 9 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 ALLOCATION PROCESS HOW AREFUNDSALLOCATED? TheCityofBremerton, asamemberoftheKitsapCountyHOMEconsortiumwillissueajoint RFPforuseofCityHOMEfunds. TheRFP, issued jointlywiththeCityofBremerton, willbefor HOMEfundedaffordablehousingandincludebothCountyandCityHOMEfunds. Homebuyer assistance willbealowerpriorityandfundingfornewconstructionofhomeownerhousingwill notbeavailable. CityofBremertonHOMEfundswillbeprioritizedforrentalandhomeowner projectsincludingacquisition, newconstruction, rehabilitationand homebuyerassistance. TheCityindependentfromtheCountywillcreateaCompetitiveFundingApplicationforCDBG fundsbasedonitsprioritiesforuseoffundswhichisseparate fromtheprocessusedforHOME funds. FundingproposalwillbemadeavailableforpublicreviewandcommentinlateAugust/ earlySeptember.. ThisprocessisdetailedintheCitizen ParticipationPlan (AppendixA). The publicisencouragedtoparticipateintheprocessanditsendproduct: thesubmissionofan annualAction PlantotheDepartmentofHousingandUrbanDevelopment. KitsapCountyAdditionalpoliciesandproceduresforHOMEfundscanbefoundinthe CommunityDevelopment BlockGrantandKitsapHOMEConsortium2026CDBG/HOME Policy Plan. HOW CANMYORGANIZATION APPLY? Theannualapplication cyclebeginsinearlyspringwiththepostingoftheCityCDBGCalendaron theCity’sFederalGrantswebsiteandpublicationoftheCDBG/HomePolicyPlan. ThePolicyPlan isreleasedfora15daypubliccommentperiodonMay1st. The2026PolicyPlanwillgobefore thCityCouncilforapublichearingJune4. NewapplicantsmustsubmitanApplicantIntentForm. Capitalprojectswillbeaskedtomeetwith BlockGrantStafftodiscussprojecteligibilityandfederalrequirementspriortoapplying. Technical assistanceisavailableforallapplicantsbyappointment. Interested organizations canfindthefundingapplication and allassociated information on theCitywebsiteat https://www.bremertonwa.gov/198/Federal-Grants---CDBG. Theschedule forthe annual application cycle, including thedue dateforapplications, isalsoavailable onthe web site. Interested organizations may alsocontactBlockGrant staffto requesttobe placed ontheCityinterested parties listtoreceive automatic notices about these programs. WHEN WILLFUNDS BEAVAILABLE? FundsfortheprogramstakingplaceintheJanuary1 – December31programyearare generally notavailable untilmid-summeroftheprogramyear. Timingisdependent onfederal budgetapproval—whichisoftendelayed—andhowquicklyHUDisthenabletoallocatefunds tolocaljurisdictions. TheCitywillnotexecutecontractswithsubrecipients untilwehavea contractfromHUD. OncecontractsareexecutedCDBGandHOMEfundscanonlybe disbursedonareimbursementbasis. 10 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 POLICIES & REGULATIONS FOR USEOFFUNDS CDBGandHOMEfundsareFederalfunds. UseofFederalfundsmayaffectthewayyour agencydoesbusiness. IfyouareapplyingforFederalfundsforthefirsttime, youare stronglyencouraged tofamiliarizeyourselfwiththerequirements. AGuidebookforrecipients ofCDBGandHOMEfundscanbefoundontheCitywebsiteat: http://www.bremertonwa.gov/213/Subrecipient-CDBG-HOME-Guidebook.Youmayalso contacttheCityBlockGrantStaffforadditionalassistance. A.GENERALREQUIREMENTS 1.ConsistencywithapplicableCity, County, and/orStateCodesandPoliciesTobe consideredforfunding, projectsmustbeconsistentwithadopted codesandother applicablepolicies, plansandstandards. AgenciesthatarecurrentlyreceivingCountyorCityCDBGorHOMEfunds, whoare applying forfunds, mustbeincompliancewithalltermsoftheircurrentagreement(s) andmustnothaveoutstanding auditfindings, monitoringfindingsorconcerns relatedto prioryear’sfunding. 2.ContractRetainageforFederalCompliance Citywillwithholdupto10% oftheawardamountincludedinthewrittensubrecipient agreementuntilallfederalcompliancerequirements aremet. Allconstructioncontractsbetweenasubrecipient (i.e.: youragency) andcontractor shallhave10% ofpaymentretaineduntilfulfillmentoffederalcomplianceis documented. 3.DefinitionofIncome MostCDBGandHOMEfundedprojectsuseincome todeterminewhoiseligiblefor services orhousing. PerHUD, incomemustbedefinedinoneoftwowaysunderthe CDBGandHOMEprograms; subrecipientsmustselectonemethodwhichitwillusefor thedurationofeachprogram/project (rentalhousingprojectsmustusethePart5 definition): a.Annualincomeasdefined in24CFR5.609, referredtoas “Part5annual income”,or; b.Adjustedgrossincome asdefinedforreportingpurposesundertheIRSForm 1040longform (notIRSForms1040Aor1040EZ). Formoreinformation ondeterminingincomeseetheTechnicalGuideforDetermining IncomeandAllowancesfortheseprograms. Thisguideandcanbedownloadedfrom: http://archives.hud.gov/offices/cpd/affordablehousing/modelguides/1780.pdf 4.Project/ActivityDeliveryCosts TheCitydoesnotcurrentlytakeproject/activitydeliverycosts. 100% offundswillgoto eachproject thatisawardedfunds. 5.Commitment andTimelyExpenditureofFunds InordertomeetregulatoryrequirementstheCityandCountyhaveestablishedthe followingpoliciesforCDBGandHOMEfundedprojects: 11 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 a.CDBG: o PublicServiceContracts: OrganizationsawardedCDBGfundsforpublic serviceormicroenterprise programsmustbereadytoenterintoawritten agreementwiththeCityduringtheawardyearandfundsmustbefully stdisbursedbyDec. 31ofthatsameyear. o CapitalAwards: i.Organizations withanawardofCDBGfundsforacapitalproject mustenterintowritten agreement (contract) intheawardyear. Ifthereareextenuatingcircumstancesbeyondthe organizationscontrolandadequateprogressisbeing madetoresolvetheissues, anadditionalyearfor execution ofthewrittenagreementwillbegrantedtothe organization. ii.Theprojectmustbegindrawinggrantfundswithinoneyearof thecontractexecution date. iii.Theprojectmustbecompleted within2yearsofthecontract execution dateandmeetmilestones includedinthewritten agreement, includingthescheduleforcompletion. iv.TheAgreementwillnotbeamendedtoextendtheterm. Organizationsunabletomeettheserequirementswilllosetheir funding; fundswillbereallocatedtoanothereligibleproject. Thecontracttermmaybeconsidered forextensionif thereareextenuatingcircumstancesbeyondthe organizations controlandadequateprogress isbeing made. v.Innocircumstance canaprojecttakemorethan5yearsto complete. b.HOME: o HOMEregulations requirecommitmentoffundswithin24months. Due tothisrequirementCityofBremertonandKitsapCounty (whoisthe contracting agency) requirestheprojectHOMEfundsbereadyto commitnolaterthan18months fromHUD’sFundingAgreement executiondate. Ifafter18monthsallprojectfundinghasnotbeen secured, theconditionalcommitmentwillbecanceledandthefundswill bereallocated. Staffwillworkwithagenciesduringthistimeperiodto ensuretheprojectismovingforwardandcanmeetthetimeline. o OrganizationsawardedHOMEfundsmusthaveallotherfunding sourcescommitted (documentedwithlettersofcommitment) andall HOMErequirementsforenvironmental reviewandprojectunderwriting completed beforefundscanbecommitted. Commitmentisdefinedas havingafullyexecutedwrittenagreement withKitsapCounty (the contracting agencyforCityHOMEfunds) andfundscommittedin HUD’sIntegratedDisbursementInformationSystem(IDIS). o Aconditionalcommitmentoffundswillbemadeforprojectsthatdonot haveallprojectfundscommittedatthetimeofthefunding recommendation. o HOMEfundsrequireprojectcompletionnolaterthanfouryearsfrom 12 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 HUD’sFundingAgreement executiondate. ProjectsusingHOMEfunds toacquirevacantlandmustbeunderconstruction within12monthsof thecommitmentdate. o Organizationsmustbegindrawingfundswithinoneyearofthecontract executiondate (datethecontractwasexecuted) andatleastannually thereafter. o Organizationsunabletomeettheserequirements willlosetheirfunding; fundswillbereallocatedtoanothereligibleproject. o Rentalpropertieswillberequiredtobeleasedupwithinsix (6) months ofproject completion. Homeowner propertieswillberequiredtobesold withinnine (9) monthsofprojectcompletion. Foradditionalexpenditure criteriaanddeadlinesforuseof2026(Andanyprioryears CHDO’swillbefoundintheAffordableHousingRFPforuseofCityofBremertonHOME funds). 6.On-goingRestrictionsforCDBG & HOMEFundedCapitalProjects RecipientofCDBGfundsmustagreetorestricttheuseoftheproperty, whichwas acquiredand/orimprovedusingCDBGfunds, totheintendedpurpose forwhichthe fundswereawarded. ProjectsawardedHOMEfundsaresubjecttoanaffordability periodwhichplacescertainrestrictionsonoccupancy, resale, andrentforrental properties. TheCitymayrequirearecordeddocumenttobeattachedtothepropertyto ensuretheappropriateprovisionsaresecured. SeeAppendix CforCDBGeligibility requirements. B.HOME FUNDING -SPECIFICREQUIREMENTS 1.FormoreinformationonspecificrulesandrequirementsoftheHOMEprogram, includingdetermining whetheryourprojectiseligible, pleaseseeAppendixD. C.CDBGFUNDING -SPECIFICREQUIREMENTS 1.FormoreinformationonspecificrulesandrequirementsofCDBG, includingmeetinga NationalObjective, pleaseseeAppendixCCDBG Eligibility & Program Requirements. D.FINANCIALMANAGEMENT 1.UniformAdministrativeRequirements Agenciesmustcomplywith2CFR200UniformAdministrativeRequirements, Cost PrinciplesandAuditRequirements forFederalAwards. Agencies thatdonotmeettheauditthresholdformandatoryauditsareencouragedto obtainanannualauditiftheiroperatingbudgetis $100,000orgreater. Smalleragencies areencouraged toobtainatleastathird-partyannualfinancialreview. BlockGrantStaff willreviewfinancialinformationcloselyforallagenciessubmittingapplication. 13 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 2.AuditRequirements Privatenon-profitagenciesexpending $750,000ormoreinfederalfundsannually whetherCDBG / HOMEaloneorCDBG / HOMEinconjunctionwithotherfederal funds) musthaveanannualauditconductedbyanindependentauditorinaccordance withOMBCircularA-133Compliance Supplement. Agencies areresponsibletomeet thisauditrequirement. Agenciesthatdonotmeetthe $750,000thresholdmandatoryA-133auditare encouraged toobtainanannualauditiftheiroperatingbudgetis $100,000orgreater. Smalleragenciesareencouragedtoobtainatleastathird-partyannualfinancialreview. BlockGrantstaffwillreviewfinancialinformationcloselyforallagencies submitting application. E.PROCUREMENT AnysubrecipientusingCDBGorHOMEfundstopurchasegoodsorservicesmusthavea formalized writtenprocurement procedureinplacepriortocontractingforanygoodsor services. Procurementrequirementsarecontainedin2CFRPart200. Additionalinformationonprocurementrequirements canbefoundinSectionEofthe CDBG/HOMEGuidebookontheCityofBremertonBlockGrantProgramWebsite. BuildAmericaBuyAmericaAct Organizations awardedCDBGfundsthatincluderehabilitation orconstruction workwillbe subject totherequirementsoftheBuildAmericaBuyAmericaAct (BABA) ifthefollowing conditionsaremet: Projectcontainsironandsteel, and Thetotalfederal (CDBG & anyotherfederalfunds) is $250,000orgreater. TheActrequiresallironandsteelusedintheprojectbeproducedintheUnitedStates. This meansallmanufacturingprocesses, fromtheinitialmeltingstagethrough theapplicationof coatings, occurredintheUnitedStates. F.ENVIRONMENTALREVIEW 1.EnvironmentalReview (24CFRPart58) AllCDBG/HOMEprojectsmusthaveaNationalEnvironmental PolicyAct (NEPA) compliant environmentalreviewprocesscompletedbeforeanyfunds, includingfunds committedfromothersources, canbespentontheproject. Additionalinformationon environmental reviewrequirementscanbefoundinSectionFoftheCDBG/HOME Guidebook ontheCityofBremerton BlockGrantProgramwebsites. Thecostsassociatedwithconducting aNEPA compliantenvironmentalreviewfor CapitalCDBGandHOMEfunded projectsmaybechargedtothegrantawardasproject costs (HOME) oractivity deliverycosts (CDBG). Costwillvarydependingonthelevelof reviewandcomplexityoftheprojectandincludestafftime, costofpublishingrequired legaladsandprintingcosts. 14 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 Thecostofanystudiesrequiredtocompletetheenvironmental review (i.e. PhaseI Environmental SiteAssessment, Geotechnical. Report, CulturalSiteAssessment, etc.) willbeinadditiontothecostsassociatedwith preparationoftheNEPAenvironmentalreviewandwillbetheresponsibilityofthe subrecipient. G.EQUAL OPPORTUNITY &ACCESSIBILITY 1.FairHousing andEqualOpportunity AllCDBG/HOMEprojectsmustcomplywithallofthefollowingFederallaws, executive ordersandregulations pertaining tofairhousingandequalopportunity: a.TitleVIoftheCivilRightsActof1964: Nopersonmaybeexcludedfromparticipation in, deniedthebenefitsof, orsubjectedtodiscriminationunderanyprogramor activityreceivingFederalassistanceonthebasisofrace, colorornationalorigin (24 CFRPart1). rHousingAct: Prohibitsdiscrimination inthesaleorrentalofhousing, theb.TheFai financingofhousingortheprovisionofbrokerageservicesagainstanypersonon thebasisofrace, color, religion, sex, nationalorigin, handicaporfamilialstatus (24 CFRPart100-115). c.EqualOpportunityinHousing: Prohibitsdiscriminationagainstindividuals onthe basisofrace, color, religion, sexornationalorigininthesale, rental, leasingorother dispositionofresidentialproperty, orintheuseoroccupancyofhousingassisted withFederalfunds (24CFRPart107). d.AgeDiscriminationActof1975: Prohibitsagediscriminationinprogramsreceiving Federalfinancialassistance (24CFRPart146). e.Formoreinformationoneliminating discriminationvisit www.hud.gov/offices/fheo/progdesc/title8.cfm 2.HandicappedAccessibility CDBGandHOMEfundedprojectsaresubject tothefollowingregulationsgoverningthe accessibility ofFederally-assistedbuildings, facilitiesandprograms. a.Americans withDisabilitiesAct: Providescomprehensive civilrightstoindividuals withdisabilitiesintheareasofemployment, publicaccommodations, stateandlocal governmentservicesandtelecommunications. TheActrequirescertainbuildingsor otherfacilitiesthatreceiveFederalfundstobedesigned, constructedoralteredin accordance withstandards thatinsureaccessibility toandusebyphysically handicappedpeople. b.Section504: Section504oftheRehabilitationActof1973prohibitsdiscriminationin federallyassistedprogramsonthebasisofhandicap. Additional information onequalopportunity andaccessibilitycanbefoundinSectionG oftheCDBG/HOMEGuidebookontheCityofBremertonBlockGrantProgramweb sites. 15 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 H.LABOR STANDARDS &CONSTRUCTION 1.EqualOpportunityforEmploymentandContracting CDBGandHOMEfundedprojectsaresubject tothefollowingregulationsgoverning employment andcontracting opportunities. a.EqualEmploymentOpportunity: Prohibitsdiscriminationagainstanyemployeeor applicantforemploymentbecauseofrace, color, religion, sexornational origin. Provisionstoeffectuatethisprohibitionmustbeincludedinallconstruction contracts exceeding $10,000 (41CFRPart60). ection3oftheHousingandUrbanDevelopmentActof1968: Requiresthat, totheb.S greatestextentfeasible, opportunities fortrainingandemploymentarisingfrom CDBGorHOMEfundedprojectswillbeprovidedtolow-incomepersonsresidingin theprogramservicearea. inority/Women’sBusiness Enterprise: Outreach tominoritiesandwomeninc.M contractingforservices (24CFR85.36(e)). 2.LaborRequirements CDBGandHOMEprojectsmustcomplywithcertainregulations onwageandlabor standards. PursuanttotheDavis-BaconAct, federalwageratesapplytomost(but notall) constructionprojectsover $2,000. Applications thatinvolveconstructionmust consider Davis-Baconwageratesinthebudget. Thecostsassociatedwiththereviewof CertifiedPayrollsandcompliance withDBRArequirementsmaybechargedtothegrant awardasprojectcosts (HOME) oractivitydeliverycosts (CDBG). Costwillvary dependingonthecomplexityoftheproject. a.Davis-BaconandRelatedActs: Ensuresthatmechanics andlaborersemployedin constructionworkunderfederallyassistedcontractsarepaidtheFederalprevailing wageforthelocality. ontractWorkHoursandSafetyStandards Act: Providesthatmechanics andb.C laborersemployedonfederallyassistedconstruction jobsarepaidtimeandone-half forworkinexcessof40hoursperweek. opeland (Anti-Kickback) Act: Governsthedeductionsfrompaychecksthatarec.C allowable. MoreinformationonDavisBaconrequirements canbefoundinSectionIofthe CDBG/HOMEGuidebook CityofBremerton BlockGrantProgramwebsite. 3.Lead-BasedPaintHazard (24CFR Part35) Housingbuiltbefore1978, assistedwithHOMEorCDBGfunds, issubjecttotheLead BasedPaintPoisoningPreventionAct. Thelawimposesrequirementsrelatedto: Disclosureofknown hazardsandwhathasbeendonetoreducethem; Treatment, relocationduringtreatment, andongoinginspectionofunits. Projectfeasibilityisanimportantconsideration forhousingwithlead-basedpaint. Recipients ofCDBGorHOMEfundswillneedtobeawareofthepotentialforadditional timeandcostassociatedwithlead-basedpainthazards. InformationonLead-Based Paintrequirements canbefoundinSectionIoftheCDBG/HOMEGuidebookontheCity ofBremertonBlockGrantProgramwebsite. 16 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 4.CompliancewithCodes & StandardsforRehabilitationandNewConstruction a.AllcapitalprojectsfundedwithCDBGorHOMEmustcomplywithlocalbuildingand firecodes. b.AllHOME fundedRehabilitation projectsmustcomplywiththeRehabilitation StandardsadoptedbytheCityofBremertonBlockGrantProgram. c.Allrentalhousingunitspurchasedand/orrehabilitatedwithCDBGorHOMEmust passaUniformPhysical ConditionsStandardsinspection. d.Allhousingmustcomplywiththeapplicableaccessibilityrequirementsforpersons withdisabilities. I.REPORTING &MONITORING Allprograms andprojectsfundedwithCDBGorHOMEfundswillberequiredtosubmit quarterlyreports. ReportswillbeprovidedbytheBlockGrantProgramandmaybe submittedelectronically. Annualon-sitemonitoringisconductedbystaffforallopen contracts. Amonitoringchecklistisusedbystafftoreviewcompliance withtherequirements ofthewrittenagreementandfederalregulations. Agencieswillbecontactedattheendof theprogram yeartoschedulethemonitoringvisit. J.ACQUISITION &RELOCATION 1.UniformRelocationAssistance & RealPropertyAcquisition (49CFR Part24) Theseregulationsapplytoanyfederally-assistedprojectinvolvingacquisition, demolition orrehabilitation. Proposals forCDBGandHOMEfundedprojectsthatarelikelytocause displacementofpeopleorbusinesses arediscouraged. Anyprojectthatislikelytocause displacementmustincluderelocationassistancepaymentsinthebudgetandbe consistent withtheFederalUniformRelocationAct. Projectswhichtrigger thisregulation mustfollowtheAnti-displacementandRelocation AssistancePlanwhichcanbe providedtoyoubyrequest. Ifyourprojectincludesacquisition, rehabilitation or demolitionyouarestronglyurgedtodiscusstherequirementswithBlock Grantstaff beforeenteringintoanylegallybindingagreements. 2.Minimizing theLossofLowandVeryLowIncomeDwellingUnits (24CFRPart42) AnyCDBG/HOMEproposalthatwoulddirectlyresultinanyoccupiedorvacant occupiablelowandverylowincomedwellingunitsbeing (1) demolished, or (2) convertedtoauseotherthanaslowandverylowincomehousingmustincludea realisticplantoprovidereplacementhousingwithinthreeyearsofthecommencementof thedemolitionorrehabilitationrelatingtoconversion. Projectswhichtrigger this regulation mustfollowtheAnti-displacementandRelocationAssistancePlanwhich canbeaccessedbymakingarequesttoCityBlockGrantstaff. 17 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 CITIZENPARTICIPATION PLAN HUDrequiresaCitizenParticipationPlanbeadoptedbyjurisdictionsreceivingCDBGand HOMEfunds. TheplandetailstheprocessusedbytheCityindevelopment oftheConsolidated PlanandannualapplicationcyclewhichresultsintheActionPlansubmissiontoHUD. TheCity ofBremerton BlockGrantProgramCitizenParticipationPlancanbefoundinAppendixA. CONSOLIDATED PLAN WHATISTHECONSOLIDATEDPLAN? TheConsolidatedPlanrollstheplanning, application andperformancereportingrequirements ofseveralprogramsrunbyHUDintooneprocessandonedocument. Inourcommunitythe Consolidated PlancoversCDBG (CommunityDevelopment BlockGrants) andHOME (grantfor affordable housing) programsjointlyfortheCityofBremertonandKitsapCounty. Theplan coversa5-yearperiodsubmittalofthe2026actionplanwillbeforyearone. TheConsolidatedPlanrequiresajurisdictiontoidentify allofitshousingandcommunity development needs, andthendevelopalong-termstrategyformeetingthoseneeds. Akeypart ofthestrategyissettingpriorities. ThePlan identifiespriorityhousingneeds, non-homeless specialneeds, homelessneeds, economicdevelopmentandcommunity developmentneeds. TheConsolidated Planalsoindicateswhatprogramsandresourceswillbeusedoverthe5-year planningperiod. Theplancontainsobjectivesandstrategiestoaddresstheidentifiedneeds andestimates theresourcesneededtofundactivitiestoaddressthedifferentneeds. WHATARE THEKEY PARTS OFTHE PLAN? A.Housing & CommunityDevelopment NeedsAssessment ThisisthepartofthePlanthathasU.S. CensusBureauinformation andother information whichpresentsapictureofthejurisdiction. Peoplearethefocusofthe Needs” sectionoftheplan. Theemphasisisonthehumansideofhousingand community developmentincludingtheneedsofhomelesspeople, peoplewithspecial needsandthose whoarelow-income. B.TheHousingMarketAnalysis ThispartofthePlandescribesthephysical “bricksandmortar,” sideofhousing – the supplysideofhousing. Itlooksatwhathousingexists. Whenthehousingconditions in thispartoftheplanarelinedupwithhumanneedsinthepreviouspartoftheplan, a clearpictureofwhatmustbedoneshouldemerge. C.TheStrategicPlan TheStrategyisthepartoftheConsolidatedPlanwheretheCountyandCitysetsout howitintendstouseitsCDBGandHOMEfundsfromHUD’sDepartment ofCommunity PlanningandDevelopmentoverthenextfiveyears. Thestrategymustdeclarewhat prioritythe localgovernment willgivetothevarious housingandcommunity developmentneedsidentified earlierintheConsolidatedPlan; theactivities designedto respondtothoseneeds; andthedifferentgeographicareaswhere needsexist. 18 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C CDBG/HOMEPolicyPlan 2026 D.AnnualActionPlan TheActionPlanistheone-yearplanajurisdictionmusthavetoshowhowitiscarrying outitslong-termStrategicPlan. ItshowshowthejurisdictionwillspenditsCDBGand HOMEmoneyintheupcomingyear. TheCityofBremertonuseanannualapplication processthroughwhichfundsarecompetitively awarded. Note: ThefulltextoftheConsolidated Planisavailable ontheCityofBremerton websitesand alsoavailableuponrequest. GLOSSARY AGlossaryoftermshasbeenincludedinAppendixF. 19 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A Appendix A Citizen Participation Plan Updated 5/1/25) 0 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A CITYOF BREMERTON CITIZEN PARTICIPATION PLAN Introduction The CityofBremerton receivesbothCommunity Development Block Grant (CDBG) and HOME InvestmentPartnership (HOME) funds. The CityreceivesitsownCDBG funds asan entitlement, and HOMEfundsthrough itsmembership inaConsortium with Kitsap County. TheCityof Bremerton iscommittedtoassuringopportunities for citizen involvementindecisions concerning activitiestaking place withinthecommunity. Each yeartheCity ofBremerton iseligibletoreceiveCDBG andHOME funds. There arespecificrules andregulations governingtheallocation anduseofthe funds, including provisions forcitizeninvolvement indecision making. Inorder to facilitate citizeninvolvement, theCity hasadoptedaCitizen ParticipationPlan. Purpose The purposeoftheCitizenParticipation Planistoprovideanon-going mechanism to ensure widespread citizen participationwhereby allcitizenshaveanopportunity to fullyexpress theirneeds andwishes forcommunityimprovement. Specialefforts will bemadeto encourage participation by: Low-andmoderate-incomepersons Residentsofpredominately low- andmoderate-incomeneighborhoods. Minorities andnon-Englishspeaking persons, aswellas persons with disabilities. Thisplanprovidesopportunitiesforrepresentationofallofthecitizens oftheCityof Bremerton byallowingthemtohaveavoiceinthedecision-making processand giving themgreater powerandcontrol overactivitiestakingplace within their community. Annual Allocation Process / Action PlanSubmission TheCity ofBremerton asanentitlementjurisdiction willconduct acompetitive annual processto determineallocation ofCDBG andHOME funds. Thepublicis encouraged toparticipate inthe process and itsend product—thesubmission ofanannualAction Planto HUD. A. Notice of Funding Availability & Application Annuallygenerally inthe springorearlysummera legaladwillbepublished inthe newspaperofrecord toannouncefunding availability andprovideanopportunity for comment ontheCDBG/HOME Policy Plan. Thisnoticewillbegin a15-day comment period onthePolicy Plan (includingtheCitizen Participation Plan) and include the dateandtimeof publichearingstotakecitizen comments. 1 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A Notifications will alsobesentto anyagency ororganization whorequests tobe placed on ourinterested partiesemaillist. Uponapproval ofthePolicy Planby theBremertonCityCouncil, information about theRequestforFunding Proposalsand mandatory technicalassistancesession for first timeapplicants willbeavailable byrequest inwriting to: Cityof Bremerton, CommunityDevelopment BlockGrant th3456Street, Suite 100, Bremerton, WA98337-1873 http://www.bremertonwa.gov/209/Consolidated-Planning or bycontacting CDBGStaffbyemail at: CDBG@bremertonwa.govorbyphone at: 360-473-5375 B. Pre-Application Procedures Prospective applicants areaskedtosubmitan ApplicantIntent Form. Evenifyour organization isnotcertain theywillapplyinthis funding round, youareencouragedto submit theformforyourproposedproject. Staffwillcontact organizationswho have submitted aform and mayschedule ameetingto discusstheprojectproposal in greaterdetail. Torequestanappointment, applicantsplease reachouttoBlock GrantStaff. Staff is alsoavailable byappointment forone-on-onetechnicalassistance toprovide guidancetocitizens andorganizations regarding specific projectconsiderations. C. Technical Assistance Technical assistanceinformation forpotentialapplicants forfunding willbefoundin AppendixB. Atanytime, anycitizenmaycontact theCity BlockGrantstaff fortechnical assistance, helpwithanapplication orgeneral informationinrelationtoprograms described inthisPlan. TheDepartmentwillhelpcitizens understand CDBGand HOME fundedprograms, theprocedures forsubmitting proposals, theCitizen Participation Planandotherprogram requirements sothey caneffectively participate inCDBG and/orHOMEprogramsandthefunding process. D. Funding Recommendations & ActionPlan Organizations submitting applicationswill benotifiedwhether ornot theProject ReviewCommittee (PRC) hasrecommendedtheirproposal forfunding. TheCity Councilwill considerthestaff recommendation, willhold apublichearingon the proposal, willtakepublictestimonyand willadoptthe fundingpackage. Notificationswillinclude thedate, timeandplace of thepublic hearings. 2 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A Allprojects approved forfunding willbeincluded intheCity’sActionPlan. A summary ofeachActionPlan willbepublished inthenewspaper ofrecordandon theCity’swebsite. Thesummaries willdescribe thecontentsandpurpose ofthe ActionPlans, andincludea listoflocations where copies ofthe entireproposed plansmaybe examined. Citizenswill beprovided aperiodof 30daystoreview and comment ontheplans. Commentsor views ofcitizens will beconsidered, anda summary of anycommentsorviewsnot acceptedandthereasons therefore, willbe attached tothe finalActionPlan whichwillbesubmitted toHUD. The Cityof Bremerton willsubmitthe ActionPlan, includingthe projectsproposed to thbefunded, toHUDnolaterthanNovember 15ofeachcalendar year, unless HUD instructsthe Citynottosubmituntilanappropriations bill hasbeen enacted and HUDhasnotified theCityofBremerton ofouractualallocationamounts. Five YearConsolidated Plan The Consolidated Plan istheresult ofaprocess setforthby theDepartmentofHousing andUrbanDevelopment (HUD) toprovideaplanning andapplicationprocessforthe CDBG and HOMEprogramswithina singledocument. TheKitsap CountyHOME Consortium isrequired tosubmittheConsolidated PlanfortheHOME participating jurisdiction (which consists ofKitsapCountyandtheCityofBremerton). The Consolidated Planisavailable online at: http://www.bremertonwa.gov/209/Consolidated-Planning (scroll down foralinktothe documents) Aprinted copymayberequested fromtheCityofBremertonBlockGrantDivisions Thereareanumber ofspecific elements inthe5-YearConsolidated Plan, including: Needs Assessment: anassessment ofhousing needs (primarily oflowand moderate incomepeople) andneedsofhomelesspeople; HousingMarket Analysis: an analysis oftheCityofBremerton’sandKitsap County'shousingmarket; Strategic Plan: adiscussion oftheCityofBremerton’sandKitsapCounty's priority needsto establish goalsandobjectives for implementing strategies whichaddress housingandcommunity developmentactivities; CitizenParticipation Plan (Updated within theannually updated PolicyPlan) AnnualActionPlan: describes theactivitiesthat willbeundertaken to address priority needs utilizing HOMEand CDBG grantfunds during the upcoming programyear (Submitted Annually); and Consolidated Annual Performance andEvaluation Report (CAPER): describes howfunds wereusedin activitiesthat providedbenefits tolowand moderate income individuals andfamilies during thepreviousprogram year. SubmittedAnnually) 3 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A Governments, service providers, citizens, andnon-profit/for-profitagencies are encouraged to identify needsandpriorities, assistinthedevelopmentof strategies, and to participateinthe annualallocation process. Thefollowingare specificopportunities forcitizens toparticipate inthedevelopment oftheinformation tobeincorporated in the Consolidated Plan, whichisupdated everyfiveyears: 1. Atleast one community meetingwill beheldtoobtain theviewsofcitizens, public agencies, andotherinterestedpartiesconcerninghousing andcommunity development needs, including non-housingcommunity development needs and priorities during developmentof theplan. 2.TheCityofBremerton willcoordinatewiththeBremerton Housing Authority (BHA) to encourage participation ofresidents ofpublic andassisted housingandotherlow incomeresidents oftargeted revitalizationareas, in theprocess ofdevelopingand implementing theConsolidatedPlan. 3. Agencies working withlow-andmoderate-incomepersons, particularly those livingin blightedareas andresidents ofpredominately low- andmoderate-income neighborhoods, minorities, non-Englishspeaking persons, andpersonswith disabilities willbecontacted toencourage participation inthedevelopment of the ConsolidatedPlan. Amendments tothe AnnualActionPlan Citizenswill benotifiedandhaveanopportunitytocommentonanysubstantial amendmentsproposedtotheAnnual Action Plan. Substantial Amendments willbepublishedintheCity’snewspaperofrecordandbe subjecttoa30-day public comment period toallowforcomment prior to implementation of theproposed amendment. Foranyamendments madeas a result oftheCOVID-19Pandemic andasaresponsetouseofany CDBG-CV funding the Citywillutilize a5day publiccommentperiod asoutlined by HUD. Substantial AmendmentsmaybeforwardedforreviewbytheappropriatePRCpriortosubmission totheBremerton CityCouncilforfinalapproval. Commentsorviews ofcitizenswillbe considered at thepublichearing, and asummary of anycommentsorviews not acceptedandthereasonstherefore, willbeattachedtothesubstantialamendmentof the finalActionPlanwhichwill besubmittedtoHUD. Substantial amendmentsinclude: Changes intheuseofCDBGorHOME fundsfromoneeligible activity to another Addinganewactivity A substantial changeto thepurpose, scope, location orbeneficiaries of the project asdefinedinthe applicationforfunds and approvedbythePRC. CDBGor HOME activitiesawardedfunds whichhaveasubstantial change inthe purpose, scope, beneficiaries, locationorbudgetwillbeevaluatedbyBlockGrantStaff andmay berequiredto submit anew application forfunding inthenext application cycle. 4 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A Projects notexpending theirfullCDBG orHOME awardwillnottriggera substantial amendment. Thesefundswillbe re-obligated to newprojectsduringthefollowing year’s regular application cycle. Minor Changes: Anyrequest forachange intheamount tobe expendedona program orprojectbudget lineitem, oraminor change tothe purpose, scope, locationorbeneficiaries of theproject asdefined intheapplicationforfunds, shall notbe consideredaSubstantial Changerequiring citizen notification andAnnual Action Planamendment; however, priorwrittenapproval ofthese changesmustbe obtained fromtheappropriate Block Grant Administrator. Minor project changes mayneed tobeformalized asan amendmenttothe subrecipientAgency’scontractwiththeCity. TheAgency willsubmit a writtenrequest forchange tothe BlockGrantAdministrator statingthe specific reasons forthe requested increaseordecreaseinfunding, orchangeinpurpose, scope, location or beneficiaries. Allrequestswillbereviewed, andapprovedordeniedbytheBlockGrant Administrator. Performance Reports 1. The CityofBremertonBlockGrantDivision willprepare andsubmitaConsolidated Annual PerformanceandEvaluationReport (CAPER) toHUDnolaterthanMarch st31ofeach yearforthepreviouscalendaryear. 2. TheCAPERwill bemadeavailable forpublicreview. Noticewill bepublished in the newspaper ofrecord and copieswill beavailable ontheCity’swebsite: CityofBremerton: http://www.bremertonwa.gov/198/Federal-Grants---CDBGscroll downtotheyearandCAPERfiledesired. 3. Citizenswillbeprovidedaperiodof atleast15 daysto reviewand commenton the CAPER. Commentsor viewsof citizens willbeconsidered inthereport, anda summary of anycommentsorviewsnot acceptedandthereasons therefore, willbe attachedtothe CAPER andsubmitted toHUD. PublicHearings Bylaw,publichearingsarerequiredinordertoobtainthepublic’sviewandtoprovidethe public with theCity’s responsesto public questions andproposals. Annuallyapublic hearing willbeheldinspringforthe approval of thenextyear’sPolicyPlan. Asecond hearing is held inNovember toreview theproposed useoffunds andadopt theAnnual ActionPlan. Notificationofthepublic hearingsandofcomment periodswill bepublished inthe newspaperofrecord andwillafford citizens,publicagencies, andotherinterestedparties a reasonable opportunity toexaminetheproposed plansandtosubmitcomments. 5 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix A CityofBremertonpublichearings willbeheldduringBremertonCityCouncilmeetings, whichare heldeveryfirst andthirdWednesdayofthemonth, at 5:30pmin themeeting chambersofthe NormDicks Government Center. Bremerton CityCouncilagenda may beobtained at http://www.ci.bremerton.wa.us/155/City-Council. PublicComments Interested persons maysubmitcommentsin writingduring thepublic commentperiods, ororally atthepublichearings. Written comments should bedirected to: Sarah Lynam Community Development Block GrantAdministrator CityofBremerton thStreet, Suite1003456 Bremerton, WA 98337 Complaints Allwrittencitizencomplaints willbe referredtotheappropriate person(s) oragenciesfor action. Undernormal circumstances, theBlock Grant Division willrespond totheperson making thecomplaintwithin 15days. All complaintsandresponses willbe kept on file. Resources NewspaperofRecord: Notification willbe placed inthefollowing newspaper under LegalNotices atleasttendaysbefore apublicmeetingisheldconcerningaprogram described in thisplan: CityofBremertonBlockGrant – The KitsapSun Notices mayalsobepublishedon Citywebsite: CityofBremerton BlockGrantProgram: http://www.bremertonwa.gov/198/Federal- Grants---CDBG Thenotice willindicatewhenandwhere thepublicmeeting willbeheld. Meetings are oftenheldatthe following location: stNormDicksGovernmentCenter, 1FloorMeetingChambers th3456Street Bremerton, WA98337 6 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB AppendixB FundingProcess 0 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB Introduction TheCity ofBremerton isanentitlementcommunity, and usesacompetitiveapplication process to findthebestsubrecipientsto implementprograms andactivities aroundthe City. TheCityhas anindependent fundingprocess for itsCDBGfundsbasedon the prioritization oftheCityCouncil andutilizesaProjectReview Committeetoassistin making funding determinations. Forapplicationsubmission anreviewthe Cityhasa joint application process withotherKitsap Countygrantprograms includingHOME, CIAH, Housing andHomelessness Program (whichadministersHomeless Housing HHGP), AffordableHousing (AHGP), andConsolidatedHomeless Grant (CHG) Program). The KitsapCounty Grant RecommendationCommittee (GRC) process funding recommendations foruseofHOME, CIAH, andHomelessHousing Grant Programs. Funding recommendations are approved bythe KitsapBoard ofCommissionersfor CountyCDBG/HOMEfunds andbytheBremerton CityCouncilforCityCDBG/HOME funds. Forthe2026applicationprocesstheCityofBremertonwillusetheSurveyMonkeyApply system. Applications willbe madeavailable ina format accessible topersons with disabilities uponrequest. Application submittal instructionsandduedateare included intheNoticeofFunding Availability (NOFA). The NOFAwillbe publishedon May23, 2025. Applicationsmust be submitted online andrequire accesstotheinternet. 2026Program YearFunding Specifics: The2026Program Yearwillhave competitive fundingapplications for: Capital - Rental Housing Capital – HomeownerHousing Capital - PublicFacility, Infrastructure, Shelter CDBGPublicServices PleasereviewtheExecutive Summaryforfundingprioritiesincludedintheseapplications. CDBGPublicServiceswillnotbefundedinatleastyear1 (2026) ofthe2026-2030 ConsolidatedPlan. Evaluationofpublicservicesneedswillbeevaluatedonanannualbasis beginningyear2 (2027). 1 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB ApplicationReview & Project Review Committee Recommendation Process On May23, 2025theCitywillpublisha Notice of FundingAvailability. Within thisdocument willbeinformation aboutthefundingapplications which havethe followingpriorities: CDBGCapital/EconomicDevelopmentprojects: Preservation and/orrehabilitationofaffordablehousing including o Acquisitionofhousingtocreateorpreserveunitsofaffordablehousing o Weatherization/repairofexistinghousingunits Infrastructureandpublicfacilitiesprojectsincluding: o StreetandSidewalkimprovements inlow-incomeneighborhoods o Parksprojects/facilitiesinlow-incomeareas Microenterprise AssistancePrograms HOMEHousingprioritiesareofequalimportance. Construction oracquisitionofnewrentalhousingunits Acquisitionofhomeowner housingthroughdown-paymentassistance TheGrant Recommendation Committee (GRC) will beusedtoreview applications for HOME funds throughthecoordinated grantprocess. TheCity ofBremertonuses a separate ProjectReviewCommitteetoreviewapplications for CDBGfunds. TheProjectReviewCommitteemustadhereto theConflictof InterestPolicy in Appendix C. Applicationswill beinitially reviewedbyBlockGrantStafftodetermine compliance with technical requirements includingeligibilityforCDBG and/orHOME funds. Applications which arefound noteligibleforCDBG, HOME, HomelessGrant ProgramorAffordable Housing funds, will bedisqualified andthe applicantwill benotified. Eligible applications willbereviewed andevaluated bystafffororganizationalandfinancialcapacity, willbe interviewed bytheProject ReviewCommittee, andarecommendation willbeprovided bythe Project ReviewCommittee andforwarded toCity Council. TheCouncilwill review all recommendations, andselecttheprojectsforfunding basedhow theyaddressneeds objectives identifiedin the2026-2030ConsolidatedPlan. Thedetails of themulti-levelreviewprocessarelisted below: 2 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB Stage 1: Completeness & Qualification Review Submitted applications arereviewedforpotential disqualification usingthefollowing process: 1. Applicationsarereviewedfor completeness, soundness, andeligibility against the following criteria. Applications meeting one ormore willbedisqualified. At leasttwo different staffmembers mustagreethat anapplication shouldbedisqualified. a. Amount requested isnotconsistent amongnarrative questions, Sourcesof Financing form, budget form, and/orapplicantinformation; b. Missing orblank attachmentsorforms orusing oldversions offorms; c. Project or applicantorganizationisnoteligibleforanyofthefunding sources; d. Projectdoesnotmeetapriority identified intheCity ofBremertonConsolidated Plan (2026-2030) or does notmeet aBremerton CityCouncilfundingpriority. e. Projectdoes notmeetaNational Objective asdefined byHUD. f. Wrong application typeis submitted forproject. 2. Applicants willbenotifiedofthe results ofthe Stage 1Reviewviaemail, either: a. Application is movingto Stage 2andtheapplicant willbecontacted to schedule aninterview;or b. Application isdisqualifiedandthebasis fordisqualificationisprovided. Stage2: Review andScoring Applications arereviewedandscored fororganizational capacity, financial soundness, andproject priority. 1. Staffmembers review andscore allareas oftheapplication utilizingscoring criteria specifictoeach applicationtype. 2.Project Review Committee (PRC) membersmake funding recommendations using the following process: a. Review, evaluate, andscore each application usingreview andscoringguides specific toeach applicationtype; b. Conduct interview witheach applicant and scoreapplicant interviews; interviewlengthwilldepend onapplicationtype. o CDBGEconomic Development will haveinterviews consistingof thefollowing: i. 20 minutesinlengthwhichincludes 10minute agencypresentation and10minute question/answer. 3 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB o Capital applications willhaveinterviewsconsisting ofthefollowing: i. 35minutesinlengthwhichincludes 15minuteagency presentation and20minutequestion/answer. Jointinterviewsmay beheld fororganizations thatsubmitaproject applicationforbothCityandCountyCDBGfunding. c. Assignapriority ranking andrecommendfundingawards toapplications. Stage 3: FundingAwards The fundingrecommendationsgothrough amulti-step process, priorto finalizing theaward amount. 1.Project Review Committee (PRC) – AllStage2applications willhaveafinal score comprisedof thestaffapplicationreview score, PRCapplicationreview score, andPRC interviewscore. ThePRC willusethefinalized scoreofapplications to assist inmakingthe funding recommendations andcontingencies. 2. CityofBremerton City Council- TheCityCouncil receives the recommendations from theProjectReview Committee, holdsa publiccomment periodand apublichearing, and makesawardsandcontingencies. 3. Federal CDBGandHOMEfunds- Applications awarded CDBGandHOME funds mustbeincluded inanAction Planassociated withthe2026-2030 Consolidated Planandsubmitted toHUDforapproval. TheActionPlancannot befinalized until the Cityof Bremerton receives thefederal awardamounts fromHUD. 4. FinalAwards – Fundingrecommendationswere made based onestimated funds. Oncethe actualamountsare knownawards willbeadjustedbasedonthe contingency setbythePRC’s andapprovedbytheBremerton CityCouncil. ProjectReviewCommittee The ProjectReview Committee (PRC) willbeformed consistingofthreeCityof Bremerton staffmembers (Director-DepartmentofCommunity Development, Finance Director, Community Development Project Assistant), onememberfrom CityCouncil, onerepresentative fromthePlanning Commission andtwocitizensat large. (Ifarepresentative fromthePlanning Commission isunavailable, another citizenrepresentative willserve intheirplace). The roleof thiscommitteeistoread all applications andcomplete independent, scored reviews, reviewprojects for community needand benefit, reviewevaluations, conduct interviews, anddiscuss, rankandrecommendprojects forfunding. The appointeestothis committeeare appointed bytheMayorandconfirmed byBremertonCityCouncil. 4 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB ThePRCwillprovide recommendationstoCity Council andtheCouncil willhave the opportunity to approve allthe finalrecommendations. Applicant interviewswillbeconductedwiththePRC. Applicants willhavethe opportunity topresent theirprojectandthePRC willhave anopportunity toask questions. Attheconclusionoftheinterviewsthe PRCwill formulateafunding recommendation forapprovalbytheCityofBremerton CityCouncil. Appointments forPRCmembers aremadeannually. PRCmembers areappointedto serveatwoyeartermandcanbere-appointed to serve successive terms and/or additionalterms. Conflict ofInterest 1.Nomember of theProjectReviewCommittee (PRC) shallbebeneficially interested, directlyorindirectly, inanygrant applicationswhichmaybemade by, throughorunderthe recommendation ofthePRC, inwholeorin part, or whichmay bemadeforthe benefitofhisorher office, oraccept, directlyorindirectly, any compensation, gratuityor rewardin connection withsuchcontract fromanyother personbeneficially interestedtherein (fromRCW42.23.030). 2. Nomember ofthePRCshallengage inanyactivity, including participation inthe selection, award, oradministrationofagrant awardorcontract if aconflictof interest, realorapparent, exists. 3. Additional information onRemote Interestcanbefoundinthe fullConflictof Interest Policy underAppendixD. Technical Assistance Allapplicantsfor fundingwho haveneverreceivedCityCDBGfunding before, or have never used the SMApplysystemwill berequired toattendthetechnical assistancesession. During the session, staff will provide informationtocitizensconcerning whocan apply forfunds, funds expected tobeavailable, therangeofactivitiesthat may be undertaken, priorities forfunding, application submissionrequirements includingtechnicalassistance infilling outtheapplication, the application deadline, andhowdecisions concerning funding willbemade. Therewillalsobe aworkshop onhowtouse theSurvey MonkeyApplysystemifanapplicant has notutilizedthesystem before. In addition to themandatory TechnicalAssistance describedabove, CityBlock Grantstaff is alsoavailable byappointment forone-on-oneTechnical Assistance toprovide guidance tocitizensand organizations regarding specific project considerations. PleasecontactBlock Grantstafftosetup anappointment. 5 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixB Atanytime, anycitizenmaycontact theCity BlockGrantstaff fortechnical assistance, helpwithanapplication orgeneral information inrelationto programs describedinthisPlan. TheDepartment willhelp citizens understand CDBG andHOMEfundedprograms, theprocedures forsubmittingproposals, theCitizenParticipationPlanandother programrequirementssothey can effectively participateinCDBG and/or HOMEprogramsandthe fundingprocess. 6 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C Appendix C CDBG Eligibility Requirements & ProgramRules 0 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C CDBGNATIONAL OBJECTIVES ANDELIGIBILITY REQUIREMENTS Every CDBGactivitymustmeetanational objectiveandmustbe eligible in ordertobefunded, andeachCDBG applicant must beabletodemonstrateeligibilitybasedondata collected. The following information isprovided toassistyouindefiningtheeligibility andnationalobjective that youractivity meets andthetype ofinformationyouwillneed togatherfrom thepopulation you servetoprovidetotheCityBlockGrantoffice.SpecificregulationsthatgoverntheCDBGprogram areavailabletheBlock Grantoffice. What aretheNational Objectives? (Benefit Criteria) Aneligible CDBGactivity musteither I. Principallybenefit lowandvery lowincome A. AreaBenefit – a. Activity whichisavailable tobenefitalltheresidentsof anareawhichis primarilyresidential. b. Atleast51% of beneficiaries arelow orverylow income persons/households. c. Applicantswill beresponsible fordefining theserviceareaandCitystaff willchecktoensurethatitmeets theLowModerate Income (LMI) criteria. B. LimitedClientele 1. Atleast51% of beneficiaries arelow orverylow incomepersons/households a. PresumedBenefit b. Agency Requires ClientInformation c. IncomeEligibility Requirement (DirectBenefit) d. Nature/location 2. Removal ofArchitecturalBarriers 3. AssistancetoOwners ofMicroenterprises 4. Employment Support Services C. HousingActivities (Residential) a. 51% ofunitsmustbeoccupied bylow-andmoderate-incomehouseholds. b. Affordable rentsmust be maintained for5years 1 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C D. JobCreation orRetention - EconomicDevelopment a. MustbelocatedinapredominantlyLow/Moderate (L/M) incomeneighborhoodand serve theL/M income residents; or b. Involvefacilities designedforusepredominantly byL/M incomepersons; or c. Involve theemploymentofpersons, themajorityofwhomareL/Mincomepersons. II. ReduceorEliminateBlight III. Meet anUrgentNeed A. Urgent Needwould beanatural disaster or federally declareddisaster. NOTE: Thevastmajority ofCDBG activitiesfunded aredesigned tobenefitlow andverylow incomepersons andhouseholds. HowDoes AProject Meeta NationalObjective? I.Principally benefit lowandverylowincome Tomeetthisnationalobjective, anapplicant mustdocumentthattheproposedprojectwillbenefit predominantly lowandverylowincomepersonsorhouseholds. A lowincomeperson/household isonewhoseannualincome doesnotexceed 80% ofareamedianincome -- averylowincome person/household isonewhoseannualincome doesnotexceed 50% oftheareamedian income. HUD IncomeLimits forBremerton areincludedinthe Applicationeachyear. There are severaldifferentwaysthatCDBG activities canbenefitlow andverylowincomepersons: A. AREABENEFIT Thiscriteriaallows aprojectlocatedinprincipally residentialarea tomeetaNational Objective by demonstrating that, basedonthedemographics ofaproject’sdefined service area, atleast51% oftheresidentsarelow orverylow income. Certain activities are anaturalfitfor areabenefit, astheyserveageographic area, such asparks, neighborhoodfacilities, community centers andstreets/sidewalks. PleasecontacttheCityBlockGrantofficeformapsandmoreinformationondocumenting your servicearea anddetermining eligibilityunder AreaBenefit. Applicants must: Attach amapwith theboundariesof theproject's service areadelineated (the surrounding geographicareainwhichallormostofthepeoplebenefiting fromthe projectreside). Explain whythat particulargeographic areaisthe serviceareafortheproject; 2 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C Indicate onthemapresidential and commercial areaswithin the servicearea boundary;and Providedocumentation that51%(City) ormoreoftheresidents withintheservice areaarelow andverylow incomepersons/householdsutilizing themostrecent censusdataasprovidedbyHUD. PleasecontacttheCityor BlockGrantofficefor maps andmoreinformation ondocumenting yourservicearea. B. LIMITEDCLIENTELE An activitywhich benefits a limitedclientele, atleast 51% ofwhom areloworverylow income persons/households. There are fourtypesof activitiesinthiscategory: 1.Presumed Benefit -- An activitymaybenefit oneof thefollowing groups whoare presumed byHUDtobeprincipally lowandverylow income: abusedchildren, batteredspouses, elderlypersons, handicappedpersons, homelesspersons, illiteratepersons, migrant farmworkers andpersons living withHIV/AIDS. Applicants must: Demonstratethatthefacilityorserviceisdesignedforandusedpredominantly by oneofthegroups identifiedabove. DemonstratethatyourclientelemeetsHUD’sdefinitionforthepresumedgroup youserve, forexample, homeless individuals mustmeet HUD’sdefinition and documentation requirementsat https://www.onecpd.info/resources/documents/HomelessDefinition_Re cordkeepingRequirementsandCriteria.pdf 2.Require documentation onfamily size andincome in order toshowthat at least51percentof theclientele arelowincome – Thismeans yourprogram canservelowandmoderate incomeclientele ifat least51% ofyourclientele are lowincome. Agencies mustkeep informationon client incomeandfamily size whichcan document whetheror not51% ormore oftheclientelearepersons whose familyincomedoesnotexceed low andmoderate incomelimits for Kitsap County. Note: Income qualificationcriteria fromotherprograms (such asstate povertyguidelines) maybe substituted providedthosecriteria areat least as restrictiveas theHUD incomelimits. 3 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C Applicants must: Providedocumentationofthe totalnumberofclients/householdsserved in 2026(ifthis isan existing service); State what percent oftheclients/households servedin2026were loworvery low income (ormetcriteriathat arestricter); Provide acopyoftheincomequalification criteriathatwereusedtoscreen clientsandtodeterminethe percentthat werelowandverylowincome; Provide acopyoftheclientintakeformhighlightingthequestions regarding familysize andincome levels;and Agreetomaintain documentation oftheclient'sincomesfortheCDBGcontract period. 3.IncomeEligibilityRequirements (DirectBenefit) -- Thismeansthattheagency uses income screeningtolimitthebenefits oftheCDBGfundedactivity toonly those persons whoarelow and verylow income. For example, ahousing counselingprogramwould screen potentialclientsandusetheCDBGfundstopay forthecounselingonlyofthosewhoare incomeeligible. Applicants must: Screenclients byfamilysizeandincome; Provide acopyoftheincomequalification criteriathatwereusedtoscreen clients to determine lowandverylowincome status; Provide acopyoftheclientintakeformhighlightingthequestions regarding familysizeand income levels;and Describehowtheprogram/projectwouldlimitthebenefitsoftheCDBGfunded activity exclusively tolow andvery lowincomepersons/households. 4.Nature/Location ofActivity Allows Conclusion ofPrimarily LowandVery LowIncomeBenefit-- Thismeansthattheactivityisof suchanatureandinsuch alocation thatit maybeconcluded thattheclientele willbeprimarilylowand very lowincome; for example, freechildcare in anassistedhousingproject. 4 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C Applicants must: Explainhowthenature, andifapplicable, thelocationoftheproposedproject, establishes thatitis usedprimarily forlowandvery lowincomepersons. Inaddition tothefouractivities described above, thefollowingactivities may qualifyunder thelimitedclientele national objective. Removal ofArchitecturalBarriers Aprojectwhichremoves material orarchitecturalbarrierswhichrestrict themobility and accessibilityof elderly orhandicapped personsto publiclyowned and privatelyowned non-residentialbuildings, facilitiesand improvements, and thecommon areasof residential structures containing morethanonedwellingunitis consideredalimited clientele activity. Note: This refers totheremoval ofexisting barriers. Itdoesnot applyto new construction. Assistance toOwners ofMicroenterprises Whenassistance istobeprovidedto amicroenterprise (acommercialenterprisethathas fiveorfeweremployees, oneormoreof whomownstheenterprise) theownermust qualifyaslowormoderateincome. Note: formicroenterprise projectsunderthelimited clientelenationalobjective justification, thelow incomethresholdappliesonly tothe owner, therearenoincomerequirements fortheworkers theowneremploys. Employment SupportServices. If CDBGassistance isonly providedfortrainingor supportiveservices (peer support programs, counseling, childcare, transportation, andothersimilar services) toassist business(es), thepercentageof lowandmoderateincomepersonsassisted maybeless than 51% ifthe proportion ofthe totalcostbornebyCDBGfunds isnogreaterthan the proportion ofthetotal number of personsassistedwhoarelowormoderate income. For example: Anewbusiness moves into town andbeginsanon-sitedaycareprogram for workers. Thetotalcostofthedaycareis $10,000. There are40children, 3ofwhichmeet qualifications aslowandmoderate income. Themaximum amount chargeabletothe CDBGprogram is $750.00. ($10,000/40 =$250X3 =$750). Applicants must: Maintaindatadocumenting thetotalcostof theservice, Screenclientsby family size andincome; andprovidea copyoftheclient intake formhighlighting thequestions regarding family sizeand incomelevels; 5 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C C. HousingActivities These areactivities providing orimproving permanentresidentialstructures which are orwillbeoccupiedbylowandverylowincome households. Itdoesnot include group homes orshelters for thehomeless, which areconsidered limited clientele activities. Applicants must: Maintain a copyof the writtenagreementwith each landlord or developer receivingCDBGassistanceindicatingthetotalnumberofdwelling unitsin each multi-unitstructure assisted andthenumberofthose unitswhich willbe occupied bylowand moderate incomehouseholds afterassistance. 51% of theseunitsmustbeavailable tolow/moderateincome. Maintain recordson thetotal costoftheactivity, includingboth CDBG and non-CDBGfunds. Screen households forfamilysize andincomeeligibility. For rental housing, maintain recordsonrent charged (ortobe charged) after assistance foreachdwelling unitineachstructureassisted. Affordablerentsmustbemaintainedfora periodof fiveyears afterCDBG assistance. D.Job CreationorRetentionActivities Theseareeconomic development activities which aredesignedtocreate orretain permanentjobs, where atleast 51% ofthejobs, computedonafull-timeequivalent basis, canbe documented toemploy lowand verylowincome persons forthe geographic area where itislocated. There areveryspecific elements ofthis national objective. Pleasecontact theCommunityDevelopmentstafftodiscuss yourprojectpriortosubmittinganapplication. 6 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix C CDBG FUNDING -SPECIFIC REQUIREMENTS 1. Reversion ofAssets / Change-of-UseofCDBG Assisted PropertyAll recipientsmustagree to restrict theuse oftheproperty, whichwas acquiredand/orimproved usingCDBGfunds, tothe intended purposefor whichthe funds wereawarded. The restriction willbe basedon thedollars investedandfollowthe guidelines in the chartbelow. ThisistoensurecompliancewithHUD requirementsandtoensurecontinuedpublic benefit. Minimum Years RestrictedActivityDollarThreshold* Rehabilitation orAcquisitionof existingfacilitiesorhousing Less than $15,000 5 Yearsincludinghomeownership15,000 - $40,000 10Yearsassistance) Greaterthan $40,000 15Years New Construction or Acquisition oflandfornew construction Any $ amount 20Years Dollarthresholdisperfacility, orifhousing, perunitforsinglefamilyhousing Reversion ofassets provisions requireagency totransfertotheCityany CDBGfunds onhandat thetimeofexpiration ofthe subrecipientagreement, anyaccounts receivableattributableto theuseof CDBGfunds, and anynonexpendable personal property thatwaspurchased withCDBG funds 2. Restriction onAssessments CDBGfunds maynotbe usedfor publicimprovement projectswhere aportion ofthe projectsistobe financedbyassessmentstoareapropertyowners, unless theproject is structured suchthatCDBGfunds areusedtopaytheassessments ofalllowandvery low income propertyowners. Theanalysisofincomes ofaffectedpersonsmustbedone aheadoftimeandsubmitted aspartoftheapplication forCDBGfunds. 3. Guidelines forEconomic DevelopmentProjects (24CFR570.209) Citywill utilizetheguidelinesprovided at24CFR570.209 relativetoprojectcosts and financial requirements andstandards forevaluating publicbenefit. 4. Supplanting (24CFR570.207) Federal regulations prohibitusing CDBGfunds tosupplant (replace orsubstitute for) localfunds forpublicservices orongoing responsibilities ofgeneral localgovernment. The intent ofthis federal regulationistopreventlocalgovernment from usingthe availability offederal CDBG dollars as anexcusetoreducelocalfundingcommitments. 7 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixD Appendix D ConflictofInterest Policy 0 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixD ConflictofInterest Policy CityofBremerton ProjectReviewCommittee From timetotime, community volunteerswhoareappointed totheProject Review Committee (PRC) haveprior experience withoneoftheapplicantsor programs requestinggrantfunding. Thefollowing guidelines areintended to clarify what shouldhappeninthesecasestoavoid realorperceivedconflict of interest. 1) Conflict ofInterest: a.Nomember ofthePRCshall bebeneficiallyinterested, directly orindirectly, in anygrant applicationswhich maybemadeby, through, orunderthe recommendation ofthePRC, inwholeorinpart, or whichmay bemadeforthe benefit ofhisorheroffice, oracceptdirectlyor indirectly, any compensation, gratuity orrewardinconnection withsuchcontract fromanyotherperson beneficially interested therein (from RCW42.23.030) b. Nomember ofthePRC shallengage inanyactivity, including participation in theselection, award, or administration ofagrantaward orcontractif aconflict ofinterest, realor apparent, exists. 2) RemoteInterest a.APRCmember isnotinterested ina contract, withinthemeaningof1.a. above, ifthe member onlyhasa “remoteinterest” inthecontract andthe extent ofthe interest isdisclosed tothePRCandStaffat thebeginning ofthe review process andis notedintheofficialminutes prior to therecommendation of the contract. (fromRCW42.23.040). i. Asusedinthissection “remote interest”means: 1. That ofanon-salariedofficer ofanon-profitcorporation; 2. That ofan employeeoragent ofa contractingparty wherethe compensationofsuchemployee oragent consistsentirelyoffixed wages or salary; 3. Thatofa landlord ortenantofacontractingparty; 4. Thatofa holderoflessthan onepercentofthesharesofacorporation or cooperative which is acontractingparty. ii. Evenif thePRCmember’s interestisonlyremote, themembercannot influence orattempttoinfluence anyotherPRCmember intheawardofa contract theyareremotelyinterested in. For purposes of thisprovision, influenceor attempt toinfluenceincludesanyofthefollowing: 1 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixD 1.Scoring thegrantapplication; 2.Discussing thegrantapplicationwith other PRCmembers; 3.Joining theaudience, acting onbehalfoftheapplicant orinteracting in anymanner withmembersofthePRC. 4.PRCmembers should physically leavethe room whenthe remaining PRC members discuss thematter. This removes anypotentialclaim thatthe PRCmember hasattempted to exertundue influenceoverthe otherPRCmembers. 3)Potential BiasbyPriorAssociation a.APRCMember mayhave a “potential biasby prior association” iftheyhave hadaninterestinthepast, butdo notmeetthesedefinitions during thetime they areserving onthe PRC, or whohave personalpriorexperience withan applicantincluding servingasaboardmember inthepast, beingemployed inthepast, orbeing acurrentorpastvolunteer. In theeventof apotential bias bypriorassociation: i) ThePRCmembershoulddisclosetothePRCandstaffthenatureoftheir priorassociationatthebeginningoftheapplicationreviewprocess. 4)ConflictsDisclosed The staffshould advise PRCmembersbeforetheprocess beginsthat membersneedtodisclose, inadvance, anyremote interest, potential bias byprior associationthatthey have, or relatives serving as stafftoany applicants. Itisrecommended thatthedisclosures bedone in writing. 5)VotingandRecommendations a.ThePRCmember should recuse themselvesfrom voting onany recommendation thatwouldinclude applications inwhich theyhavearemote interestinorwith whom they haveapotential bias bypriorassociation. b. Ifthefinal recommendations ofthe PRCare consolidated into asingle motion, then thePRCmembermay participate inthevotesolongastheir participation inthediscussiondoesnot influenceorattempt toinfluence the outcome withrespect totheapplicant inwhich theyhavearemote interest inorwith whom theyhaveapotentialbiasby priorassociation. c.Occasionally members oftheCityCouncil willsitontheBoard ofDirectors oforganizations whichareproposedtoreceivefunding. Inthisinstance, the Council memberwith theconflictofinterestwillstatetheirconflict, leavethe Dias, andreturn when voting has beencompleted. Becausethevotes are passed asoneresolution, theCouncil member with theconflictwill notbe allowed tovoteontheresolution asawhole. 2 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C AppendixD 6)AlternatePRC Ifthereare twoormorePRCsina fundingcycle orprocess, anda member has aconflict ofinterest, remoteinterest, orpotential bias by prior association withanapplication that oneofthePRCs is reviewing, thatmember mayserveonadifferent PRCwithout reservation or restriction. 3 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix F Appendix F Glossary 0 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix F GLOSSARY Administrative Expenses. Thoseexpenses directlyassociatedwiththe recipient’s generaladministration ofthe CDBGorHOMEprograms, suchassalaries, supplies, equipment, accounting, phones, audits, benefits, travel andindirectcosts. Affordability. Affordability isachieved whena household’srentormortgage payment, plusutilities, does notexceed30% ofthemonthly income forthetargetedincome group asadjusted forhousehold size. Annual Action Plan: This document allocates oneyear’sfunding tospecificprojects and activities forthe CDBG andHOMEprograms. It issubmitted annually to HUD, 45 days priortothe startoftheCity’s and County’sfiscalyearor nolaterthanNovember 15 andisdeveloped inaccordance with federal regulations (24CFRPart91). Architectural Barriers. Restrict mobilityandaccessibilityofelderly orindividuals with disabilities. BenefitCriteria. ACDBG activitymusteither principally benefit loworverylowincome persons, reduce orprevent slums andblight ormeet arecent urgent need. Thesethree objectives aretheBenefit Criteria. Cash Flow. Gross income minus vacancyrate, operating expenses, reserves, debt serviceand taxes. GrantRecommendationCommittee (GRC). Agroup ofeightcitizensmeetingspecific qualifications, whodevelopfundingrecommendations forCityof Bremerton HOME funds. CitizenParticipationPlan: This planisprepared to facilitateand encourage public participation andinvolvementintheConsolidated PlanprocessandtheCity’sCDBG andHOME program, especially bylow- andmoderate-income persons. Theplan identifies thepublicparticipationrequirements as identifiedbyfederalregulations (24 CFR Part91). Committed Funds. Funds committed to aprojectby aproject fundingsource. The award amount, termsandusesofthecommitted fundsaredocumented in aletter tothe applicant. Acopyofthisaward letterisincluded withtheapplication for CDBG/HOME funds. ConditionalFunds. Fundscommitted, withconditions, toaproject byaproject funding source. Theconditions ofthecommitment, amount, terms, and usesaredocumented in alettertotheapplicant. A copyoftheletterisincluded withtheapplicationfor 1 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix F CDBG/HOME funds. ConsolidatedAnnualPerformance Evaluation Report (CAPER): This document reports ontheprogress incarrying outtheConsolidated PlanandAnnualActionPlan. Thereport isprepared annually byboth theCityandCounty inaccordance with federal regulations (24CFRPart91). Itisdue toHUDnolater than90daysaftertheend ofthe program yearor March31. Consolidated Plan: This documentservesastheCity’sandCounty’sapplication for CDBG andHOME funds. Itsetsforth theprioritiesandstrategies to addresstheneeds ofprimarily low- andmoderate-income personsand areas inthe county. Ittypically coversa five-yeartimeperiod. Itissubmitted to HUD 45 days prior tothe start ofthe program yearornolaterthan November 15andisdevelopedinaccordance with federalregulations (24 CFRPart91). ConsultantFees. Feespaid to athirdpartydeveloper consultant forcosts associated withimplementation ofaproject. Entitlement Community. A localjurisdiction thatreceives an allocationofCommunity Development BlockGrantfundsdirectly fromHUD. Allparticipatingjurisdictionsare entitlement communities; however, notallentitlement communities areparticipating jurisdictions. Household: allpersons occupying ahousingunit. Theoccupants may beafamily, as defined in24 CFR5.403; twoormorefamilies livingtogether; orany othergroupof related orunrelated personswhosharelivingarrangements, regardlessof actualor perceived, sexual orientation, gender identity, ormarital status. Housing. Housingincludes permanent housing unitsforsaleor rentincluding; manufactured housing, permanenthousingfor disabled homelesspersons, transitional housing, single-roomoccupancyhousing, andgrouphomes. Housingdoesnotinclude emergency shelters or facilities such asnursinghomes, convalescent homes, hospitals, residentialtreatment facilities, correctional facilities, halfway houses, housingfor studentsordormitories. InterlocalAgreement. Agreements made toensurethecooperation ofunitsoflocal government whichform consortiums forthe purposeofobtaining funding. Low- andModerate-IncomeHouseholds (LMI): Thesearehouseholdsearning less than 80% oftheareamedian income (AMI). Theyarebroken downintothefollowing incomedesignations: Extremely Low-Income: households withincomes lessthan30% ofthearea median familyincome adjusted forhousehold size. Low-Income: householdswithincomesbetween31% and50% ofthe area median income, adjustedforhouseholdsize. 2 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix F Moderate-Income: householdswithincomes between51% and80% ofthe area median income, adjustedforhouseholdsize. Low- andModerate-IncomeArea Neighborhood (LMA): Ingeneral, thisisdefined as census tractsorblockgroupswhere aminimum of 51% oftheresidentshavelow or moderate incomes (i.e. notexceeding 80% ofthe areamedianincome). MedianFamilyIncome: HUDreleases income limitsannually foritsprograms. Income limits arecalculated usingAmerican CommunitySurveyandCensus data. Datafor KitsapCountyisbased ontheBremerton-Silverdale Metropolitan Statistical Area MSA). Incomesareindexed byhousehold size. NeighborhoodRevitalization StrategyArea: Aspecificneighborhood targetedbythe Cityandapproved byHUD. Communities with approvedNRSA’sreceive enhanced flexibilityin undertaking economic development, housing, andpublic service activities withtheirCDBG funds. TheCitycurrently doesnot haveanapproved NRSA atthis time. OperatingSupport. Financial assistance usedtosupplementtheday-to-day operations ofa project. Participating Jurisdiction. Thistermrefers tocities, counties andconsortia which receive anallocation offederal HOMEfunds directlyfromHUD. Persons withDisabilities. This termmeans ahouseholdcomposed ofoneor more persons, atleastone ofwhomisanadult, whohas adisability. A person isconsidered tohaveadisabilityiftheperson hasaphysical, mental, emotionalordevelopmental impairment thatisexpected tobeof long-continuedandindefinitedurationand substantially impedes hisor herability toliveindependently. Program Year: Theprogram yearfortheCityCDBGandHOMEprogramsisJanuary 1 through December 31, whichisthesame astheCity’sfiscalyear. Project DeliveryCosts: Costs directly related tomanagingtheprojecttothepointof completion normally paidtoathirdparty. ProjectReviewCommittee. This committee, madeupof CityofBremerton staff, a member ofthe CityofBremerton CityCouncil, PlanningCommissioner andtwocitizen volunteers, evaluate, rank, andmakefunding recommendations totheBremerton City Council foruseofCDBG funds. ProjectSoundness. The feasibility, sensibility, andeffectiveness oftheproject tomeet adefined community needandtheorganizationalstrength andcapacitytobring the project tocompletion. 3 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C Appendix F Proposed Funds. Funds which havebeen orwillberequestedfromapotential project funding source. Relocation Expenses. Those costs paidto households orbusinesseswhentemporary orpermanentrelocation becomes necessary. Single familyhousing: onetofour-family residence, condominium unit, cooperative unit, combination of manufactured housingandlot, ormanufactured housinglot. Single roomoccupancy (SRO) housing: housing (consisting ofsingle- room dwelling units) thatis theprimaryresidenceof itsoccupant oroccupants. Theunitmustcontain either foodpreparationorsanitary facilities (andmaycontain both). SpecialNeedsHousing. Housing forspecial needspopulations whorequirespecial housing-relatedservices. This is alsoreferredto as supportive housing. Special Needs Population. This populationof people includeselderlyandfrailelderly; persons withmental, physical ordevelopmental disabilities; persons withHIV/AIDS; personswithalcoholor drugaddiction; victimsofdomestic violence; persons discharged frominstitutions (prison, jail, mental hospital, fostercare). Transitionalhousing: housing thatisdesigned to provide housingand appropriate supportive services toperson, including (but not limited to) deinstitutionalized individuals withdisabilities, homeless individuals withdisabilities, andhomeless families withchildren. Ithasasits purposefacilitating the movement ofindividuals andfamilies to independent livingwithinatimeperiod thatis set. Uniform PhysicalCondition Standards (UPCS): Uniformnational standards established byHUDpursuant to24CFR5.703forhousing thatis decent, safe, sanitary, andingoodrepair. Standards areestablished forinspectableitemsforeachof the following areas: site, building exterior, building systems, dwellingunits, andcommon areas. 4 Docusign Envelope ID: 4DA1629C-14E0-4130-BD13-64069DE6D07C