TALENT ENHANCEMENT CAPACITY BUILDING GRANT

for Local Government and Non-Profit Partnerships

Table of Contents

PROGRAM GUIDELINES

INTRODUCTION

DEFINITION OF TALENT ENHANCEMENT CAPACITY BUILDING GRANTS

ELIGIBLE RECIPIENTS OF FUNDS

LOCAL GOVERNMENT

ELIGIBLE NON-PROFIT SUB-RECIPIENT: COMMUNITY BASED DEVELOPMENT ORGANIZATION

OTHER ELIGIBLE NON-PROFIT DESIGNATIONS

NON-PROFIT THRESHOLD REQUIREMENTS

EXCEPTION TO ELIGIBLE NON-PROFIT SUB-RECIPIENT

DEFINITION OF SUPPORTIVE HOUSING

ELIGIBLE ACTIVITIES

AWARD AMOUNTS

EAST CAROLINA UNIVERSITY’S ENHANCEMENT PRODUCTS

COMPLIANCE REQUIREMENTS

SELECTION CRITERIA

APPLICATION PROCESS

PROGRAM CONTACT

SAMPLE CITIZEN PARTICIPATION PLAN

SAMPLE RESOLUTION

APPLICATION

APPLICATION CHECKLIST

REQUIRED ATTACHMENTS

APPLICATION SUMMARY

PROJECT DESCRIPTION

BREAKOUT OF COSTS

CONFLICT OF INTEREST CHECKLIST

PROGRAM COMPLIANCE CERTIFICATION

STATEMENT OF CERTIFICATION FOR FUTURE APPLICATION AND BENEFIT

FEDERAL CERTIFICATION REQUIREMENTS

DISCLOSURE REPORT

DISCLOSURE REPORT INSTRUCTIONS

STATE CDBG PROGRAM REGULATIONS

DISCLOSURE OF CIVIL RIGHTS COMPLAINTS/LAWSUITS

CERTIFICATIONS REGARDING DEBARMENT, SUSPENSION AND OTHER RESPONSIBILITY MATTERS

INSTRUCTIONS FOR DEBARMENT CERTIFICATIONS

ACTIVITIES IMPLEMENTATION SCHEDULE

NON-PROFIT PARTNER CERTIFICATION

NON-PROFIT PARTNER INFORMATION


INTRODUCTION

These guidelines have been prepared to assist local governments who want to apply for State of North Carolina Department of Commerce, Community Investment (CI), Talent Enhancement Capacity Building Grant (TECBG) funds to enable the participating local unit of government and eligible non-profits to develop capacity to undertake an activity or activities that it has previously been unable to carry out. A Talent Enhancement Capacity Building Grant must result in a future application in one of the following Community Development Block Grant (CDBG) categories (NC Catalyst, NC Small Business and Entrepreneurial Development,Scattered Site Housing, Infrastructure, and Economic Development within 15 months of the grant award. The proposed TECBGproject must be feasible, realistic, and have the foundation to succeed.

All CDBG-funded activities must meet one of the three national objectives of the program: 1) benefiting low-and moderate-income persons, 2) preventing or eliminating blight, or 3) meeting other community development needs having a particular urgency. The North Carolina program has been designed to insure that at least 51% of the TECBG funds used for a project activity will benefit low- and moderate-income (LMI) people. Talent Enhancement Capacity Building Grant grantees must be able to meet the LMI benefit requirement for the CDBG grant category of or for which they will apply within the next 15 months.

DEFINITION OF TALENT ENHANCEMENT CAPACITY BUILDING GRANTS

The Talent Enhancement Capacity Building Grant (TECBG) is provided to local government and non-profits in partnership with local governments to help build capacity in areas to develop appropriate and competitive CDBG grants, administer CDBG grants, grant writing, economic impact analyses, community survey research and design, and feasibility study preparation.

Talent Enhancement Capacity Building Grant funds may only be used to support activities that will result in projects that are eligible for CDBG funding within 15 months. Applicants submitting TECBG applications must certify that a future CDBG application will be submitted within 15 months of the grant award and that any project developed and funded as a result of the TECBG will primarily benefit low- and moderate-income people (at least 51%). Talent Enhancement Capacity Building Grant funds cannot be used for any on-going activities of the local unit of government or non-profit. Instead, TECBG funds are targeted to the following:

1)New endeavors that will take the local unit of government or non-profit in a new direction. For example, a local unit of government or non-profit whose primary goal has been economic development and jobs may want to expand its activities into housing or Infrastructure.

2)Increasing the level of production or expanding activities; for example, if you are only doing housing rehabilitation projects, you may want to expand to the Catalyst Program, or if a non-profit is building single-family houses, they may want to expand its operation to build a subdivision.

3)Clearly defining the project in the application.

4)All project development activities as specified in the application must be completed before the follow-up application will be accepted from the local government.

5)TECBG cannot be used to administer or manage current CDBG grants.

6)Only one (1) open capacity building grant per local unit of government or non-profit agency. A local unit of government and the non-profit they represent may both apply for a Talent Enhancement Capacity Building Grant.

ELIGIBLE RECIPIENTS OF FUNDS

All municipalities are eligible to apply for State of North Carolina CDBG funds except 23 entitlement cities that receive funds directly from the U.S. Department of Housing and Urban Development (HUD). North Carolina's 23 entitlement cities are: Asheville, Burlington, Chapel Hill, Cary, Charlotte, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Lenoir, Jacksonville, Kannapolis, Morganton, Raleigh, Rocky Mount, Salisbury, Wilmington, and Winston-Salem.

All counties are eligible to receive State of North Carolina CDBG funds except Wake, Mecklenburg and Cumberland Counties, which have been designated as urban counties. As urban counties, neither Wake County or Cumberland County, nor their municipalities, except Holly Springs (Wake), and Linden (Cumberland), are eligible for state funding.

Each applicant will be required to certify that it possesses legal authority to carry out the proposed activities. Unless contradictory evidence is submitted to the division, CI will accept the applicant's certification of legal authority.

LOCAL GOVERNMENT

1)The local government that submits a Talent Enhancement Capacity Building Grant application for a non-profit or for the local governmentmust agree to submit a future CDBG application within the next 15 months.

2)Proposed projects must be located within the local government jurisdiction.

3)The local government must follow all compliance and regulatory requirements.

4)Local government and non-profits are eligible for the TECBG.

ELIGIBLE NON-PROFIT SUB-RECIPIENT: COMMUNITY BASED DEVELOPMENT ORGANIZATION

A non-profit must have already been designated a 501(c)(3) organization by the IRS for federal tax purposes and have the characteristics of an eligible community based development organization (CBDO) in order to participate in the State of North Carolina CDBG/TECBG Program as a sub-recipient. An eligible organization must have the following characteristics:

  • Be a non-profit association or corporation organized under State or local law to engage in community development activities within an identified geographic area of operation including the jurisdiction of the recipient in addition to having the 501(c)(3) organization status.
  • Be a non-profit organization with federal tax status as a 501(c)(3) organization.
  • Have as its primary purpose the improvement of the physical, economic or social environment of its geographic area with particular attention to the needs of persons of low and moderate income.
  • Maintain at least 51% of its governing body’s membership for low and moderate-income residents of its geographic area of operation or representatives of low- and moderate-income organizations located in its geographic area of operation.
  • Not be an agency or instrumentality of the recipient and does not permit more than one-third of the membership of its governing body to be appointed by, or to consist of, elected or other public officials or employees or officials of an ineligible entity.
  • Require members of its governing body to be nominated and approved by the general membership of the organization, or by its permanent governing body.
  • Be an active and substantive partner of the project development team.
  • Not be subject to requirements under which its assets revert to the recipient upon dissolution.
  • Be free to contract for goods/vendors of own choosing.

OTHER ELIGIBLE NON-PROFIT DESIGNATIONS

Other non-profit designations that will qualify as a CBDO include:

  • A Community Housing Development Organization (CHDO)
  • An entity organized under the Small Business Investment Act (non-profit only)
  • A Small Business Administration (SBA) approved Section 501 State Development Company
  • A SBA Section 502 Local Development Company or Section 503 Company (all non-profit only) will also qualify as a CBDO

NON-PROFIT THRESHOLD REQUIREMENTS

Eligible non-profits must have been in existence for at least 3 years and have a reliable income stream that provides sufficient operational funds that are in no way dependent on CDBG funds for the general operation of the non-profit. TECBG funds will not fund start-up non-profits.

Additionally, the following thresholds must be met:

1)Must have not received a Capacity Building Grant in the past 3 years.

2)If they have received a Capacity Building Grant in the past 5 years, they must provide documentation of how this grant will differ from the previous grant.

3)If they have had a previous Capacity Building Grant, they must have submitted an additional CDBG application in the required 24 month time frame.

EXCEPTION TO ELIGIBLE NON-PROFIT SUB-RECIPIENT

A local government may be allowed on a case-by-case basis to partner with a non-profit organization on a Capacity Building project within its jurisdiction and ETJ when the non-profit is not locally based but meets the following conditions:

  • The local government is within the boundaries of the non-profit’s service area.
  • The non-profit has an ongoing relationship to provide services to the local government or to the citizens of the community.
  • The objective of the partnership meets the definition of Capacity Building.
  • The non-profit will designate or hire a staff member to work exclusively with the local unit of government to carry out activities.
  • Other characteristics of an eligible sub-recipient apply.

On a case-by-case basis, a local government may also be allowed to partner with other types of non-profit organizations to develop capacity in Supportive Housing when the proposal meets the following conditions:

  • The local government is within the boundaries of the non-profit’s service area.
  • The non-profit intends to develop a supportive rental housing property within the jurisdiction or ETJ of the local government.
  • The non-profit currently provides services to citizens within the community or to the local government.
  • The non-profit has as part of its charitable purpose either the provision of affordable housing or the provision of services to low income persons with disabilities.
  • The non-profit intends to apply for a federal or state subsidy program targeted to housing persons with disabilities as part of the plan for the Supportive Housing project; such programs include HUD’s 811, 202, McKinney-Vento or MainstreamVoucher Programs and North Carolina Housing Finance Agency’s Housing 400 Initiatives, SHDP and KEY Programs.
  • The objective of the application meets the definition of Capacity Building.
  • Other characteristics of an eligible sub-recipient apply.

DEFINITION OF SUPPORTIVE HOUSING

Supportive housing under this TECBG application is defined as independent rental units where tenants have access to the community-based services and supports needed to live successfully in the community. Units in supportive housing contain individual sleeping, eating and bathroom facilities, and must be operated in compliance with Fair Housing and NC Landlord Tenant Law. Participation in supportive services cannot be a condition of tenancy. Populations who may benefit from supportive housing include persons with disabilities, the elderly, and the homeless.

ELIGIBLE ACTIVITIES

TECBG funds can only be used for the following activities:

  • Salary of existing or new staff (on payroll of unit of local government or non-profit full-time)
  • Training of existing or new staff
  • Travel of existing or new staff
  • Administration of grant up to 10% of total grant (not by the non-profit) for local government only.
  • Planning costs

Local government staff must be on the payroll of the local government as a full-time employee. Non-profit staff must be on the payroll of the non-profit as a full-time employee. TECBG funds will not pay for consultants through the salary line item. Consultants can be hired but must be procured by the local government according to 24 CFR Part 85.

The following grant categories are eligible for future CDBG applications under the Talent Enhancement Capacity Building Grant projects:

  • NC Catalyst (NCC)
  • Economic Development (ED)
  • Scattered Site Housing (SSH)
  • Small Business and Entrepreneurial Assistance (SBEA)
  • Infrastructure Hook-up (IFHU)

It is important that the local government consult CI early in the process to determine which of the above CDBG category or categories the TECBG is working towards. Each grant category has its own restrictions regarding activities that will be funded. There must be a direct and clear link between the TECBG and the future CDBG application.

AWARD AMOUNTS

The maximum award for a Talent Enhancement Capacity Building Grant is $50,000. Talent Enhancement Capacity Building Grant funded administration is limited to 10% of the total grant costs and can only beused for costs related to the administration of the TECBG.

EAST CAROLINA UNIVERSITY’S ENHANCEMENT PRODUCTS

East Carolina University’s Office of Engagement, Innovation and Economic Development has partnered with Community Investment to deliver a substantial level of products and guidance that will include the following:

  • Grant Writing and Technical Assistance
  • Community Survey Research and Design
  • Entrepreneurial and Small Business Technical Assistance
  • Feasibility Study Assistance and Preparation
  • Economic Impact Analyses
  • Business Plan Development
  • Community Design Assistance

The local unit of government or non-profit and the Office of Engagement, Innovation and Economic Development will enter into a Memorandum of Understanding (MOU) outlining the terms and conditions as set forth by both parties.

COMPLIANCE REQUIREMENTS

Talent Enhancement Capacity Building Grant applicants must comply with federal regulations and certify that, if funded, they will comply with all applicable laws and requirements in the Talent Enhancement Capacity Building Grant (same as CDBG rules and regulations) as well as in any future CDBG grant to be developed as a result of the TECBG.

Per the Housing and Community Development Act of 1974, as amended, the CDBG program has certain federal and state requirements that must be met. Local government project administrators should be familiar with the Act, along with rules published in the Federal Register of November 9, 1992 under 24 CFR Part 570. NC Administrative Code requirements of 4 NCAC Subchapter 19L (NC Community Development Block Grant Program) must also be met.

Note: CI requires the local government to submit as part of the application process, all documentation to release the standard grant conditions. These conditions include: the Environmental Review Record (EER), Citizen Participation compliance, and Floodplain certification. If you have questions about the documentation needed, please contact CI for assistance. This documentation must be submitted with the application or application will not be processed, but returned to the local unit of government.

It is important that applicants understand the commitment they will be undertaking with a CDBG grant. This description of requirements and responsibilities of grantees should be read carefully. Please contact CI Staff with any questions regarding federal program regulations. The following list is intended to provide local government and business CDBG program participants with a brief list of basic federal and state administrative requirements for compliance areas that must be addressed.

  1. Citizens Participation

In order to meet the minimum requirements for citizen participation during the application phase, the applicant must hold one public hearing to obtain citizens' comments prior to its submission to CI. The public hearing notice must be published at least once in the non-legal section of a newspaper having general circulation in the area. The notice must be published at least 10 days but no more than 25 days before the date of the hearing.

The notice of public hearing to obtain citizens' views must also contain a description of the proposed activities to be carried out, including the total costs of the activities. The public hearing must be conducted by the governing board of the applicant.

A publisher’s affidavit of the notice and minutes of the hearing signed by the town, city or county clerk must be submitted to CI.

Applicants must certify in their application that they are following a detailed citizen participation plan which provides for and encourages citizen participation at all stages of the project, from initial design and application through implementation and closeout. This plan must provide for reasonable and timely access to meetings, information, and records; provide technical assistance to groups representative of low and moderate income persons that request assistance; provide for public hearings at all stages of the community development program; provide timely written answers to written complaints; and provide for the needs of non-English speaking persons.

Local governments also must provide citizensan adequate opportunity to participate in the planning and development of CDBG applications beyond the public hearing requirements described above.

Examples of actions applicants may take to ensure adequate citizen participation in the application stage include meeting with community groups and leaders prior to public hearings, holding informational meetings for those citizens whose homes will be affected by the project and distributing notices of meetings and public hearings directly to them. Applicants may also choose to distribute public hearing notices to local community action agencies; legal services offices and other public and private organizations.

Please note that the applicant certifies in the application Certification Form that it is following the requirements described in the first paragraph of this section, and that it will adopt a detailed written Citizen Participation Plan that includes these requirements if the project receives a grant award. Applicants should refer to 4 NCAC 19L Section .1002(c) and (d) for information regarding the development and implementation of this plan.