Small Cities Development Program(SCDP)
2018Application Packet
Application Deadline
Thursday, February 22, 20184:30 PM
SCDP APPLICATION TIME FRAMES
July 2017SCDP Application Packet available on web
November 9, 2017,4:30 PMDeadline date for Preliminary Proposal;
December 14, 2017Preliminary project competitive status provided to applicants
February 22, 2018, 4:30 PMDeadline date for SCDP Applications;
June2018Awards Announced
Applications. Fifteen percent (15%) is designated for DEED’s Federal Economic Development set-aside – MN Investment Fund Program (MIF). Allocation percentages may be modified by the Commissioner of DEED if the Commissioner determines that there is a shortage of fundable Applications in any category.
At least 70% of the annual SCDP allocation will be awarded to activities that meet a LMI federal objective.
SCDP funding may be made available in the event of an Urgent Community Development need or the occurrence of certain federal or state declared disasters. Please contact the DEED representative assigned to your regionfor further information.
APPLICATION SUBMISSION INFORMATION
Communities with preliminary proposals deemed Competitive or Marginally Competitive from the screening process will be asked to submit an application. Communities choosing to submit an application must submit one original and one copy, including necessary attachments, to the address below:
Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101-1351
Attn. Community Finance Division, SCDP
Applications must be received by DEED on or before 4:30 pm on Thursday, February 22, 2018. Faxed or emailed applicationswill not be accepted. Application deadlines are firm with no exceptions.
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Small Cities Development ProgramApplication
Applicant (City/County):If Multi-Community Proposal, List Partnering Community(ies)
Application Author:
SCDP Amount Requested / $
Estimated Amount of Other Funds / $
Program Income / $
Estimated Total Project Cost / $
If Program Income, Identify the source(s) with an “x”: SCDP Minnesota Investment Fund (MIF)
Note: Budget page must be attachedafter this page.The budget page can also be found on our website.
- Project Summary/Federal Objective/Goals/Budget – Final
Provide a narrative outlining the project and how it will provide substantial benefit to the community.
Please complete the SCDP Federal Objective/Goals/Budget Excel document found under the “Apply” tab of the Small Cities Development Program webpage on the DEED website and attach it to your applicationafter the cover page.
Applicationsare more competitive when administrative request per activity is less than 15% of SCDP hard costs.If the amount of SCDP administration is greater than 15% per activity, justification will be required.Lead paint risk assessmentsand clearances may be included in hard costs (as it applies to your project).
- Attachments-please attach any of the applicable items listed below to the application.Other attachments might be needed and will be outlined in the applicable activity sections.
Goals and Budget Table
See example above.
City/CountyResolution
City/CountyResolution that provides the authority to apply must be attached to the Application as an addendum. See the SCDP portion of the DEED website under “Apply” for a fillable resolution.
Notice of Public Hearings
Evidence of aPublic Hearing, including minutes, must be attached to the Application as an addendum. Be sure to include the citizen participation plan as part of your public hearing. See the SCDP portion of the DEED website under “Apply” for a citizen participation sample form.
Conflict of Interest Disclosure
The form on the last page of the application will need to be completed, signed, and attached. Mayors or County Board Chairs will need to disclose any conflicts, perceived conflicts, or potential conflicts of interest, if applicable.
Time Line
Atimeline that includes projected date of SCDP environmental clearance; date applications will begin to be accepted (if applicable), dates project will be bid and awarded (if applicable),and date of completion and grant closeout. Remember that SCDP grant agreements have a 30 month period.
Cooperative Agreements(when applicable)
Evidence of Cooperative Agreements must be attached to the Application as an addendum. If two or more cities are applying together a “Local Government Resolution for Secondary Applying Communities” will be needed for all communities which are not the lead applicant. See the SCDP portion of the DEED website under “Apply” for a fillable resolution.
Interest list(for rehabilitation activities)
Number of owners and sample interest listletter. Summary of individuals interested in participating including if they are LMI for owner-occupied housing rehabilitation (if applicable).
Slum and Blight Designationand Description(for commercial rehab activity).
A Slum and Blight Resolution to designate a target area and a description of those boundaries mustboth be included as attachments.
Slum and Blight Designation
- The template for the SCDP recommended Slum and Blight resolutionis available under the “Apply” section of the SCDP portion of the DEED website. The map of the boundaries and building inventory (number of standard, substandard, and dilapidated buildings) referred to in the sample resolution was the map submitted with the preliminary proposal.
TheMinnesotaHRA statute definition of “blightedarea” is (469.002, subdivision 11)
Slum and Blight Description
- The description needs to outline the boundaries of the district. An example would be:
-Bounded on the north by Oak Street, and
-Bounded on the east by Maple Street, and
-Bounded on the south by Ash Street, and
-Bounded on the west by Pine Street.
For districts that are not necessarily square in nature, add addresses of blocks that are included in the boundaries.
For instance: Bounded on the north by the 100 to 300 block of Oak Street.
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SCORING
All applications will be evaluated and awarded up 240 total points based on the following.
1)General Evaluation
30 Demographic Points
All applications will be evaluated for community need and awarded 30 Demographic Points. These points will be assigned by the Minnesota State Demographer to DEED based on:
- Number of poverty persons in the area under the applicant’s jurisdiction
- The percentage of residents in the area under the applicant’s jurisdiction who are poverty persons
- The per capita assessed valuation of the area under the jurisdiction of the applicant, such that points are awarded in inverse relationship to applicants’ per capita assessed valuation.
Following review for demographic points, applications will be divided into the categories and scored on a comparison of applicants within those categories. Those categories are:
- Housing Projects
- Public Facilities Projects
- Comprehensive Projects
2)Housing Projects Evaluation- a housing project which includes one or more activities designed to increase supply or quality of dwellings suited to the occupancy of the individuals and families(owner occupied or rental).
a)Project Need – 90 Points: Up to 90 of the points available in the housing category competition shall be awarded by the division based on evaluation of the need for improvements or additions to the housing stock serving low and moderate income persons as evidenced by:
i)housing units that are occupied by low and moderate income persons are either substandard or pose a threat to the health or safety of the occupants,
ii)an inadequate supply of affordable housing for low or moderate income persons, or
iii)other documented conditions that give evidence of the need for improvements or additions to the housing stock serving low and moderate income persons.
b)Project Impact – 90 Points: Up to 90 of the points available in the housing category competition shall be awarded by the division based on evaluation of the extent to which the proposed activities will eliminate deficiencies in the housing stock serving low and moderate income persons.
c)Cost Effectiveness – 30 Points: Up to 30 of the points available in the housing category competition shall be awarded by the division based on
i)evaluation of the extent to which the proposed activities will make cost effective use of grant funds including coordination with, and use of, funds from other public and private sources, and
ii)evidencethat the cost of the proposed activities per benefiting household is reasonable.
3)Comprehensive Project Evaluation- a project that includes a combination of at least two interrelated activities which are designed to address community development needs, which by their nature must be carried out in a coordinated manner such as housing andcommercial, housing and public facilities, housing, commercial, and public facilities.
a)Project Need – 90 Points:The comprehensive program category competition shall be based on evaluation of need for the proposed comprehensive program(combination of housing and commercial and/or public facilities), including consideration of:
i)number of low and moderate income persons in the program area,
ii)percentage of residents in the program area which are of low or moderate income, and
iii)need for the proposed comprehensive program as evidenced by at least two of the following:
(1)Need for improvements or additions to the housing stock serving low and moderate income persons
(2)Need for new or improved public facilities in the program area, or employment problems in the program area.
b)Project Impact – 90 Points: The comprehensive category competition shall be based on evaluation of the extent to which the proposed comprehensive program will eliminate or reduce the need identified, and the extent to which the proposed program will improve the long term physical or economic condition of the program area and its residents.
c)Cost Effectiveness – 30 Points:The comprehensive category competition shall be based on the extent to which the proposed comprehensive program will make cost effective use of grant funds, including consideration of coordination with, and use of, funds from other public and private sources.
4)Public Facilities Project Evaluation-a project that includes one or more activities designed to acquire, construct, reconstruct, or install buildings or infrastructures which serve a neighborhood area or community such as wastewater treatment plants, lines, and towers.
a)Project Need – 90 Points: The public facilities category competition shall be based on evaluation of the extent to which the proposed activities are necessary to improve provision of public services to low and moderate income persons or to eliminate an urgent threat to public health or safety.
b)Project Impact – 90 Points: The public facilities category competition shall be based on evaluation of the extent to which the proposed activities will reduce or eliminate the need.
c)Cost Effectiveness – 30 Points: The public facilities category competition shall be based on evaluation of the extent to which the proposed activities will make cost effective use of grant funds, including consideration of:
i)the extent to which the requested grant funds are necessary to finance all or a portion of the costs,
ii)evidence that the cost of the proposed activities per benefiting household or person is reasonable, and
iii)the extent to which the project benefits the existing, rather than future population, except in cases where the proposed activities are necessary due to expected development or growth which is beyond the applicant’s control.
ACTIVITY QUESTIONS
Owner Occupied Housing Rehabilitation
Has any of the information in Section A below changed since the Preliminary Proposal?
If the data in Section A is the same as was presented in the Preliminary Proposal, skip Section A and begin answering the questions in Section B. If changes are being made since the Preliminary Proposal, complete only the areas in the section in need of change.
Section A
Owner-Occupied Housing Rehabilitation: Criteria: Rehabilitation of substandard stick- built or double-wide manufactured homes on a foundation. Household incomes of participating homes cannot exceed 80% of the county median income and the house must be in standard condition after the rehabilitation is complete.
Background
- If this activity is part of a multi-community application – complete and provide separate answers to the following questions for each partnering community.
- Proposals will need to designate a target area of the city. A Plan B option can be proposed that would serve as a contingency if the interest in the primary target area proves not sufficient to meet the proposed goals. Designating a Plan B should be strongly considered as DEED will not allow any other target area expansions for projects that are being implemented.
- Cities of 1000 or less can propose city-wide target areas. Cities of 1000 or more must propose a target area and cannot propose a city-wide option as Plan B. If the total population of the combined cities for multi-community applications exceeds 1000, each city will need to propose a target area and Plan B options, if applicable.
Community Questions
Primary community:
Population of primary community:
Type of rehabilitation area proposed (select one): City-wide or Target Area
Partnering community #1(if applicable):
Population of partnering community #1 (if applicable):
Type of rehabilitation area proposed: City-wide or Target Area
Partnering community #2(if applicable):
Population of partnering community #2 (if applicable):
Type of rehabilitation area proposed: City-wide or Target Area
Maps
Attach a map of the city limits with the primary target area shown within the city limits. If applicable, maps should be included for all communities. If applicable, include the proposed Plan B option on the map. The answers to the questions below should include data for the primary target area along with any Plan B area, if a Plan B area is proposed.
Provide a second color map with all homes within the proposed rehabilitation area (city-wide or target area with a Plan B, if applicable) clearly labeled as standard or substandard. LMI homes that are interested based on the interest list will be specified on the map as well.
Sample maps are provided in Exhibit A on the last page of the Preliminary Proposal.
Activity Specific Questions
Need
Number of substandard single family houses in target area
Percentage of substandard, but suitable for rehabilitation, homes in target area: %
Median household income of target area (see Exhibit C on last page of Proposal for help): $
Average age in years of houses in target area:
Projected number of substandard,but suitable for rehabilitation, homes in target area that contain LMI households: %
Impact
Number of single family houses in target area:
Number of LMI homeowners in substandard, but suitable for rehabilitation houses in the target area who are interested in the proposed rehabilitation project:
Square blocks in target area:
Number of homes proposed for rehab with SCDP funds in the target area. (This number should be the same as the goal proposed in the budget.):
Cost Effectiveness
Maximum SCDP assistanceamount per house (cannot exceed $25,000):
Expected average SCDP assistance amount per house:
SCDP Administration percentage: %
Complete the scenario below as it applies to your request:
Scenario #1
If the amount of SCDP will not be based on homeowner affordability, please answer the following questions:
Percentage of the total SCDP assistance that will be a deferred loan:%
If applicable, percentage of the total SCDP assistance that will be an installment loan: %
Length (minimum of 84 months) of SCDP deferred loans: Months
If applicable, length of SCDP installment loans Months
If applicable, interest rate of installment loans:%
Scenario #2
If the terms of the SCDP will be based on homeowner affordability. Explain how the SCDP assistance will be determined for applicants. Be sure to include all of the below that apply.
-income thresholds
- percentages of SCDP funds per income tier
-required homeowner contribution (and under what income circumstance)
-leverage contribution (and under what income circumstance), etc.
Section B
i)Describe the Need in the area(s) to be served. Your answer should include a description of :
(1)how housing units that are occupied by low and moderate income persons that are either substandard or pose a threat to the health or safety of the occupants including:
(a)How was median income in the target area determined?
(b)Would program policies allow for the rehabilitation of mobile homes? If so, SCDP funds are no longer used for rehab to mobile homes.Please update your policies to reflect this change:
(c)Would program policies allow for rehabilitation in the floodplain? If so, rehab in the floodplain can only occur in disaster situations. Please explain why.
(d)Unique needs for the housing stock in the target area to be served. Examples include, but are not limited to pervasive lead issues, higher than average number of fires, storm damage needing repair, homes diverting storm water to municipal sanitary sewer system, high minority or elderly populations, presence of additional jobs in community, etc.
(2)How an inadequate supply of affordable housing is impacting low or moderate income persons (please quantify)
ii)Describe activity Impact. What extent will the proposed activities eliminate deficiencies in the housing stock serving low and moderate income persons?
(1)Is the rehabilitation proposed to benefit a target area or as city-wide benefit? If a target area is involved, provide a narrative description on why the boundaries for the target area were chosen.
(2)Of the total number of homes and substandard homes suitable for rehabilitation in the target area (as listed in Need Answers earlier), how many homes will be rehabilitated and how will that impact the community?
(3)Are there other projects underway that will increase the impact of your the occupied housing rehabilitation program? Examples include being part of a larger comprehensive housing project that is also dealing with foreclosed homes, part of larger comprehensive program where other non-LMI homes will be rehabilitated, special location of target area providing greater impact on the community, homes needing service lines to connect to new municipal water and/or sewer system.
(4)In order to show interest, the application must provide acceptable documentation that there are a significant amount of LMI households that are eligible for funding. This documentation could include interest statements or a recently updated waiting list(attach). All interest documentation should include documentation that homeowners were informed of the following: