Chapter 7: CDBG Owner-Occupied Rehabilitation Application Forms and Instructions

Chapter 7: CDBG Owner-Occupied Rehabilitation Application Forms and Instructions

These Application Guidelines are for all CDBG owner occupied rehabilitation activities. These Guidelines are designed for those applicants applying in the CDBG Owner Occupied Rehab Cycle. Only units of general local government, classified as a municipality (i.e. City or Village), are eligible to apply within the CDBG Owner Occupied Rehab Cycle. No joint applications or County-wide applications are eligible within the CDBG OOR Cycle, but would be eligible to apply within the Annual Cycle.

Those applicants applying in the CDBG Owner Occupied Rehab Cycle must follow the application deadlines for the CDBG Owner Occupied Rehab Cycle as identified in Chapter 1 of the Application Guidelines.

I. Eligibility

A.Eligible Applicants

Eligible applicants applying in the CDBG Owner Occupied Rehab Cycle are:

• Local units of government classified as a municipality (i.e. City or Village). Local units of government also currently participating in the Community Revitalization program are also eligible to apply.

B.Eligible Activities

1.Rehabilitation (including rehabilitation which promotes energy efficiency) of residential owner-occupied homes.

2.Special projects directed to the removal of material and architectural barriers, which restrict the mobility and accessibility of elderly and handicapped persons.

1. Payment of reasonable administrative costs related to implementing the program.

Activities eligible for assistance under these guidelines are authorized in Section 105(a) of the amended 1974 HCD Act for the CDBG Program.

Within the CDBG Owner Occupied Rehab Cycle, the Department may award CDBG funds for eligible activities.

C.Ineligible Activities

Any activity not specifically authorized under Eligible Activities is ineligible to be carried out with NAHP funds (NAHTF, HOME, or CDBG funds). This section further identifies ineligible activities.

1. Furnishings and personal property not an integral structural fixture including the purchase of equipment, fixtures, and motor vehicles.

1. Mobile homes, as defined by the Department.

1. The following activities, if not directly related to eligible housing activities including, but not limited to, housing education, acquisition of property and easements, public facilities development or improvements, relocation, clearance, and demolition.

D.Eligible Costs

1. Rehabilitation: This includes the alteration, improvement or modification of an existing structure. Rehabilitation may include adding rooms, which are not dwelling units, outside the existing walls of a structure. Conversion, a type of Rehabilitation, is changing the use of an existing structure to one of affordable residential housing. Units cannot be added beyond the building envelope.

2. Reconstruction: This refers to rebuilding a structure on the same lot where housing is standing at the time of project commitment. NAHP funds may be used to build a new foundation or repair an existing foundation. Reconstruction also includes replacinga substandard manufactured house with a new manufactured house. During reconstruction, the number of rooms per unit may change, but the number of units may not.

3. Demolition:In a targeted revitalization, demolition of an existing structure may be funded as a support activity to rehabilitation only if construction will begin on the replacement unit within 12 months of demolition within the community.

4. Relocation Costs: Both permanent and temporary relocation assistance is eligible costs. Staff and overhead costs associated with relocation assistance are also eligible.

5. Housing Management/Project-related Soft Costs:Housing Management/Project Soft Costs must be reasonable. These costs include: finance-related costs; credit reports, title binders and insurance; surety fees; recordation fees, transaction taxes; legal and accounting fees, including: cost certification; appraisals; environmental reviews; builders’ or developers’ fees; architectural, engineering and related professional services; homeowner counseling; project audit costs; affirmative marketing and fair housing services to prospective tenants of an assisted project; and staff costs directly related to projects.

E. Eligible Properties

CDBG funds may be used for one-unit properties that are privately owned. All units must be owner-occupied.

F.Grant Amounts

The maximum grant amount is $500,000. This amount is to be used as a guideline. The amount of funds awarded will be determined on a case-by-case basis with consideration given to the number of applications and scoring and ranking criteria. CDBG Owner Occupied Rehab Program applications that receive funding will receive CDBG funds as their funding source.

II. Required Documentation & Submittal Instructions

This section contains all forms and exhibits to be submitted so that your application can be scored and ranked effectively. Application narratives should be thorough and concise. The Department reserves the right to verify all information and to consult with other agencies on the proposed project.

Generally, there are more applicants requesting funds than there are funds available. Applicants must carefully read and review the 2013 Housing and Community Development Annual Action Plan and the 2013 CDBG OOR Application Guidelines in order to develop a competitive application.

A. Required Documentation

The Department may contact the applicant for further information on any required items. The Department may non-select an application if any or all of the following required items cannot be verified. You are not required to submit this form with your application, but it should be used as a checklist to help ensure you have included all required information.

Application Parts I, II, & III

Yes / No
Part I
Is the applicant identification section complete?
Is the application preparer’s section complete?
Is the program activity indicated?
Is the service area indicated?
Is the appropriate region indicated?
Is the household beneficiary and/or unit information complete?
Is the certified official section complete?
Part II
Is the Funding Summary complete, clear, and correct?
Is the one page project summary included and clear?
Part III
Is the Part III Budget complete, clear, and correct?
One Page Project Summary
Is the One Page Project Summary included and clear?

Required Exhibits

Local Governments
Exhibit / Description / Yes / No
A / Public Hearing/Meeting
B / Authorizing Resolution
C / Statement of Assurances
G / Determination of Level of Review Form
PG / Program Guidelines
Additional Exhibits for Local Governments, Non-profits, and PHAs in Part IX
If applicable to Part V, please include the following exhibits:
Exhibit / Description / Yes / No
101 / Open grants information spreadsheet (Form on website)
102 / Proposed activity documentation
103 / Breakdown of project costs
104 / Financial commitment documentation, if applicable
105 / Copies of the Bank Line of Credit or Bank Letter of Credit, if applicable
106 / Collaboration documentation, if applicable
107 / Audit documentation, if applicable
108 / Contractor information, if applicable

The following criteria will be verified by DED:

Yes / No
1. CDBG applicants eligibility on Excluded Parties List Service (EPLS).
2. Applicant is eligible (unit of general local government municipality).
3. Activities are eligible and comply with Nat. Obj. and NAHP priorities.
4. Applicant has addressed compliance problems.
5. Applicant is current with all reporting requirements.

B. Application Submittal Instructions

In submitting your application, these instructions must be followed:

*The Application questions are locked. Altering the questions in any way, may result in a 20 point scoring deduction.

*Applicants must score a minimum of 130 total points on the application in order to be considered for an award recommendation.

Table of Contents must be included.

All pages must be numbered in sequence at thebottom right-hand corner of the page. (Handwritten pages numbers are acceptable)

All Exhibits must be labeled at the top and bottom right-hand corner of the page.

Submit original (binder clipped) and 3 complete copies of the application.

Two-Hole punch the original application in the center top.

Do not staple.

Below is an outline of what your CDBG Owner Occupied Rehab Application should look like:

Part I. General Information (use required form)

Part II. Funding Summary (use required form)

Table of Contents (include page numbers)

One Page Project Summary (follow instructions)

Part III. Project Budget and Financing (follow instructions)

Part IV. Implementation Schedule (follow instructions)

Part V. Project Design and Impact and Program Guidelines (Include form & narrative)

Part VI. Required Exhibits

Local Government applicants:

EXHIBIT A - Notice of Required Public Hearing (sample format provided) - Exhibit A form language must be used for the official public hearings and must be submitted with either Proof of Publication or Certificate of Posting, and a summary of citizens’ comments.

EXHIBIT B - Authorizing Resolution (sample format provided) – must be completed after the citizens’ comment period regarding Exhibit A Notice of Required Public Hearing or Public Meeting Notice.

EXHIBIT C – Statement of Assurances and Certifications (required form).

EXHIBIT G – Determination of Level of Environmental Review (required form).

EXHIBIT PG – Program Guidelines

Part VII.Additional Exhibits- Provide additional supplemental documentation identified in the instructions or referred to in Part V. narrative information.

C. Application Forms

Part I. General Information Instructions

Type or print all information except where signatures are required.

Pre-application Number: Enter the Pre-application number assigned by the Department (if applicable).

Box 1: Provide the requested information.

Box 2: Provide the requested information. Check the appropriate application preparer status box.

Box 3: Enter the number of households to be served by the proposed project at the maximum

income allowed program-wide.

Box 4: Indicate which Region(s) your project will be located in. Refer to the map in Chapter 1 of the 2013 Application Guidelines for identification of regions and NAHP Investment Zone boundaries.

Box 5: Check the appropriate box(es) for the type of activity(ies) for which the application is madeincluding proposed activities to be funded with both CDBG funds and non-CDBG“Other Funds”.

Box 6: Check the appropriate applicant type box under which funds are being requested.

Box 7: Indicate the area where the program will take place. Enter the appropriate Congressional and Legislative District(s) information.

Box 8: Type the name and title of the Certifying Official and date. The certifying official for a localgovernment applicant is the chief elected official.

2013 APPLICATION FOR THECDBG OOR CYCLE

NEBRASKA AFFORDABLE HOUSING PROGRAM

Nebraska Department of Economic Development (DED)

PART I. GENERAL INFORMATION

Pre-application Number (if applicable): 13-HO-

TYPE OR PRINT ALL INFORMATION

1. APPLICANT IDENTIFICATION / 2. APPLICATION PREPARER INFORMATION
Name: / Name:
Contact: / Address:
Address: / City/State/Zip:
City/State/Zip: / Phone:
Phone: / Fax:
Fax: / Email:
Email: / Application Preparer (check one)
Tax ID: / Local Staff Out-of-State Consultant
Duns #: / In-State Consultant Non-Profit Organization
Economic Development District
Other
3. HOUSEHOLD BENEFICIARIES / 4. REGION INDICATOR
Panhandle – Region 1 (Western Investment Zone)
North Central – Region 2 (Central Investment Zone)
Southwest – Region 3 (Western Investment Zone)
South Central – Region 4 (Central Investment Zone)
Northeast – Region 5 (Northeast Investment Zone)
Southeast – Region 6 (Southeast Investment Zone)
Lincoln – Region 8 (Southeast Investment Zone)
# / at or below 50% of the Area Median Family Income
# / at or below 80% of the Area Median Family Income
5. HOUSING ACTIVITIES
Owner-Occupied Rehabilitation
6. TYPE OF APPLICANT
Unit of Local Government (city or village only) / 7. SERVICE AREA
Please list the area to be served [city or village]
Nebraska Legislative District(s)
Nebraska Congressional District(s)

8. CERTIFYING OFFICIAL:

To the best of my knowledge and belief, data and information in this application is true and correct, including any commitment of local or other resources. The governing body of the applicant has duly authorized this application. This applicant will comply with all Federal and state requirements governing the use of CDBG funds.

Signature in ink:
Typed Name and Title: / Date Signed:
Address/City/State/Zip:

SUBMIT THE ORIGINAL (BINDER CLIPPED and TWO-HOLE PUNCHED) AND THREE COPIES OF THE ENTIRE APPLICATION TO:

Nebraska Department of Economic Development

Division of Community and Rural Development

301 Centennial Mall South-PO Box 94666

Lincoln, NE 68509-4666

2013 NAHP Annual Application Cycle Application Guidelines

Chapter 7 CDBG Owner Occupied RehabChapter 7-1January 7, 2013

Part II. Funding Summary Instructions

• Round all dollar amounts to the nearest dollar.

• Enter the dollar amounts into the appropriate boxes in the funding summary table.

• Describe ALL other funds, including funds provided by the homeowner, lenders, builders, etc.

• If you have any questions about Activity Codes direct them to DED.

• Support activities are activities that are only allowed to be funded with NAHP in conjunction with primary activities. Support activities include, but are not limited to: infrastructure costs, relocation, demolition, and homeowner rehabilitation.

• The Part II. Funding Summary should correlate with the Part III. Project Budget & Financing.

• The Budget Calculator for OOR Projects Table or Spreadsheetmust be utilized to calculate grant amounts. $25,000 of rehabilitation costs will be designated per NAHP-assisted unit. The amounts for lead based paint testing, housing management, and general administration will be calculated using the Budget Calculator and must be recorded within the Part II Budget Summary and Part III Budget.

One Page Project Summary Instructions

Include a one-page summary of the proposed project.

The Department reserves the right to non-select an application at any point during the review process if the applicant does not have thefull funding commitment of all other key investors prior to application due date.

CDBG OOR PROGRAM

PART II. FUNDING SUMMARY (Roundamounts to the nearestdollar)

Activity Code / Activity / CDBG
Funds / Other
Funds / Total
Funds / Sources of Other Funds
0530 / Housing Rehabilitation
0523 / Relocation1
0580 / Housing Management2
0580a / Paint Testing / Risk Assessments / Clearance Testing 3
Subtotal
0181 / General Administration4
1000TOTAL PROGRAM COSTS

Clarification for the above activities should be directed to DED.

1Relocation is a support activity and must be done in conjunction with a targeted revitalization program.

2 Housing Managementrecommended maximum is 10% of total amount of CDBG hard costs.

3 Paint testing, risk assessments and clearance testing are limited to $1,500 per unit.

4 General Administration recommended maximum is8% of the total amount of CDBG hard costs.

Budget Calculator for OOR Projects
Number of Units (Enter # in Project)
Maximum $ amount for rehab / $25,000
Total amount of NAHP funds for rehab [530]
Lead Based Paint $1,500 per unit [580a]
Housing Management maximum 10% of NAHP hard costs [580]
General Administration maximum 8% of NAHP hard costs [181]
Total Program Costs

Part III. Project Budget and Financing

Provide a detailed budget for the proposed program, including program costs, housing management (also referred to as housing administration or project soft costs) and general administration. The budget should include 1) costs for each item, and 2) the proposed or likely funding source for each item. Include the cost per unit for housing management and general administration costs.

The Budget Calculator for OOR Projects Table or Spreadsheetnoted in Part II of this Chapter must be utilized to calculate grant amounts. $25,000 of rehabilitation costs will be designated per NAHP-assisted unit. The amounts for lead based paint testing, housing management, and general administration will be calculated using the Budget Calculator and must be recorded within the Part II Budget Summary and Part III Budget.

Program Costs

List for each activity the major costs by line item. Major line item costs for Housing Management include “soft” costs such as providing homeowner education; architectural, engineering, legal fees; appraisal costs; housing inspection fees and other expenses to carry out the housing program. Program costs are the "hard" costs of acquisition, rehabilitation or construction costs. The total line item costs for each activity must equal the totals by activity shown on Part II.

Administration Costs

Housing Management (activity number 0580)

The project related soft costs, or housing management, budget should include all costs of administrative and support activities for the housing proposal except construction costs and the actual costs of real property acquisition, demolition, clearance, etc. Paint testing, risk assessments and clearance testing are project –related cost but are subject to the $1,500 NAHP funds per unit maximum.

Major line item costs under the housing management activity may include but not limited to program design (i.e. finalizing housing program guidelines), program promotion, application review, office rent, supplies, homeowner education counseling. Please state the cost per unit for housing management.

General Administration (activity number 0181)

The general administration budget includes those costs that are administrative in nature and are attributable to the receipt of the award. Common line item costs in this activity are environmental review, audits, labor standards enforcement, preparation of required grant progress reports and draws, etc. If many of the general administration duties are to be performed by local government personnel, it is acceptable to use salaries and benefits as line item costs. However, it should be noted what specific duties are to be performed under the salaries and benefits line item. Please state the cost per unit for general administration.

Proposed Funding Source

All budget items should also indicate the proposed source of funds for that item. DED understands that the application budget and financing is a proposal only and may vary somewhat during project implementation. Nonetheless, a budget indicating both sources and uses must be submitted.

Part IV. Implementation Schedule

Implementation Schedules forms are available at You must use this form and attach it to your application.

1. List the target(s) for your project. The target must contain 1) the number of proposed units, 2) the income of those affected, 3) the type of program, 4) where the target will be achieved, and 5) date the project or program will be fully completed and verifiable.