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Community Development Block Grant (CDBG)

Grants to Santa Fe, New Mexico Nonprofits, Agencies,
For-Profits, and IHEs for Housing and Community Services

Agency Type:

Local

Funding Source:

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City of Santa Fe - Office of Affordable Housing

Conf. Date:

01/18/18

Deadline Date:

02/02/18 2:00 PM (Local Prevailing Time) Receipt

Description:

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Grants to Santa Fe, New Mexico nonprofits, for-profits, government agencies, and IHEs to support a broad range of community development and housing projects. A mandatory training sessions is scheduled for January 18. Programs must primarily benefit low- and moderate-income households within city limits.

CDBG is the Community Development Block Grant Program funded by the U.S. Department of Housing and Urban Development (HUD). The CDBG Program provides, on an annual basis, an allocation of funds to local and state governments for a wide- range of eligible housing and community development activities. The stated purpose of the program is: “The development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.”

CDBG funds are allocated each year to cities with populations in excess of 50,000 and urban counties. The City of Santa Fe, along with over 1,100 other cities in the country, is an “entitlement city” which means it automatically receives the federal money based on a formula that takes into consideration the community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. Other entitlement cities in New Mexico include Albuquerque, Las Cruces, Rio Rancho and Farmington. HUD allocates the balance of CDBG funds to The State of New Mexico to convey to counties, smaller towns and other sub-recipients like the New Mexico Mortgage Finance Authority (MFA). The total funds available to the City of Santa Fe vary each year.

Although Santa Fe must administer the use of CDBG funds in accordance with specific federal regulations, the Santa Fe City Council determines how to use the grant money according to the local needs. In Santa Fe, the CDBG funds are dispersed on a competitive basis to agencies/projects selected by the Santa Fe Community Development Commission and approved by the City Council.

These agencies must fulfill the objectives of the program by carrying out eligible activities that benefit low and moderate income (LMI) residents, persons who are homeless, persons who have disabilities, the elderly, and other special needs groups. Although not required, the agencies are also encouraged to find other funding sources to help leverage the CDBG funds.

HUD awards annual grants only after the City has submitted and received HUD approval of a Five Year Consolidated Plan, Annual Action Plan and Consolidated Annual Performance and Evaluation Report (CAPER).

HUD will award the entitlement grant once the 2018-2019 Annual Action Plan is approved. The amount of the entitlement grant is awarded by HUD through its established formula. The grant is awarded as early as February, but that timeline is contingent on the federal government adopting a budget and establishing the funding amount for CDBG. Because the actual amount of the City’s allocation might not be released until after the programs and allocation recommendations are made by the Community Development Commission (CDC), the amounts may be reduced or increased. The grant amount used for allocations is based on a “best guess” scenario.

Requirements:

Prior to filling out an application, each proposed applicant must demonstrate that its program meets one of the National Objectives and an eligible activity as defined by HUD. These National Objectives and Eligible Activities, established by HUD, must be used to classify each project requesting funding in order to determine if it can be considered for funding. Any program that does not clearly meet a National Objective and is not an Eligible Activity will not be accepted.

National Objectives:

The authorizing statute of the CDBG program requires that each activity applying for funding except program administration and planning activities must meet one of the three National Objectives: 1) benefit low and moderate income (LMI) persons or households; 2) eliminate slum and blight; or 3) address an urgent community need that threatens the health or welfare of residents. For more specific information on the definitions of the National Objectives, see CFR 570.208(b).

Low-Moderate Income (LMI):

Low-Moderate Income (LMI) is based on a percentage of the area’s Average Median Income (AMI). Specifically, the eligibility threshold is less than 80% of the current AMI. The current low-moderate income (LMI) limit for a 4 member household (less than 80% of the AMI) is $49,760. The CDBG regulations require that grantees expend not less than 70% of their annual CDBG grant fund for activities that benefit LMI persons. This is one of the key factors in selection of eligible activities.

Eligible Activities:

HUD awards grants to an entitlement city (City of Santa Fe) to carry out a wide range of community development activities directed toward stabilizing housing and neighborhoods, public services, and providing improved public facilities and services.

The City of Santa Fe develops its own programs and funding priorities through the Five Year Consolidated Plan and subsequent Annual Action Plans. When funding projects, federal guidelines limit the amount of money that the City can provide to certain categories of projects. The City may allocate up to 15% of the grant and estimated Program Income to Public Service programs, and up to 20% for Planning/Administration. Some Eligible Activities that can be funded by CDBG include, but are not limited to the following. (The complete list is in 24 CFR Part 570).

1. Housing Activities

a) Assist existing homeowners with the repair, rehabilitation or reconstruction of owner-occupied units. Financial assistance through loans or grants are made for emergency repair programs, spot rehabilitation, or full house rehabilitation for existing homes. Special purpose programs include improving the energy efficiency of a home, handicap accessibility, emergency repairs and weatherization.

b) Direct assistance to facilitate and expand low-moderate income (LMI) homeownership by subsidizing interest rates and mortgage principal amounts, financing the cost of acquiring property, pay all or part of the premium on behalf of the homebuyer mortgage insurance, pay any or all of the reasonable closing costs associated with the home purchase and pay up to 50% of the down payment required by mortgagee;

c) Assistance to rehabilitate privately owned residential buildings and improvements; low-income public housing and residential buildings; publicly and privately owned commercial or industrial buildings for exterior improvements and code violations; nonprofit owned nonresidential buildings and improvements; and manufactured housing, when considered part of the permanent housing stock;

d) Acquisition of property for an eligible rental housing project;

e) Conversion of a closed building from one use to residential such as a closed school;

f) Activities to prevent the abandonment and deterioration of housing acquired through tax foreclosure including making essential repairs to the housing and paying operating expenses to maintain its habitability.

2. Real Property

a) Acquisition of Real Property, by purchase, long term lease, donation or otherwise, for any public purpose;

b) Disposing of real property refers to the sale, lease and donation of real property. Costs related to the sale, lease, or donation of real property acquired with CDBG funds are CDBG-eligible;

c) Clearance activities are usually related to demolishing structures or preparing a site for development for a CDBG eligible activity;

d) Assist housing units acquired through tax foreclosure proceedings to prevent abandonment and deterioration;

e) Lead Based Paint Hazard Evaluation and Reduction. The costs associated with the evaluation and reduction of lead-based paint hazards as either its own activity or as part of a rehabilitation activity;

f) Historic Preservation. The preservation and restoration of publicly and privately owned properties of historic significance are generally eligible under CDBG;

g) Renovation of Closed Buildings for the use as an eligible public facility as well as both residential and commercial facilities.

h) Energy Efficiency Activities such as weatherize a home or apartment complex, finance energy efficient rehabilitation and install wind and solar equipment;

i. Handicapped Accessibility. Removal of material and architectural barriers that restrict the mobility or accessibility of elderly or handicapped persons.

3. Public Facilities and Public Improvements (defined as all facilities and improvements that are publicly owned or are owned by a nonprofit and open to the public during normal working hours)

a) Acquisition, construction, reconstruction, rehabilitation or installation of public facilities, except buildings for general conduct of government. Activities may include design features that promote energy efficiency and architectural design features and treatments intended to enhance aesthetic quality of facilities. Examples of facilities include: homeless facilities, senior centers, child care centers, facilities for AIDS patients, parks and recreational facilities, neighborhood facilities, and Health facilities. (For a complete list refer to Statute 570.201);

b) Public Improvements such as installation, construction and rehabilitation of infrastructure (water/sewer lines, streets and sidewalks). The CDBG funds cannot be used for maintenance of these facilities and improvements.

c) Ineligible Activity under this category includes the operating costs unless the facility is part of a CDBG funded public service activities

4. Public Service Activities (subject to 15% cap)

a) Provision of public services for education programs, foreclosure prevention counseling, homeless persons are amongst the main priorities that are eligible to receive CDBG funding. The services must show a new or quantifiable increase in the level of an existing service which has been provided by the grantee or another entity on its behalf through State or local government funds. This means that if the same work scope is requested for funding in a subsequent year, the applicant must show an increased deliverable, such as persons or households served, for example. As the CDBG annual grant allocation has a restriction that no more than 15% of the annual grant award to be funded amongst contracts for this category, public service projects are highly competitive for any given grant year.

5. Other Types of Assistance

a) Payment of non-Federal share required in connection to Federal grant-in-aid program undertaken as a part of CDBG activities;

b) Relocation payments and assistance to displaced persons;

c) Payment to housing owners for losses of rental income incurred in holding units for persons displaced;

d) Technical assistance to public and nonprofit entities to increase capacity to undertake eligible neighborhood revitalization or economic development activities subject to meeting CDBG guidelines;

e) Planning activities such as data gathering, studies, analysis preparation of plans, and identification of actions that will implement plans;

f) Activities designed to improve the city’s capacity to plan and manage programs and activities;

g) Reasonable overall program management activities;

h) Provision of information for planning implementation and assessment of activities being assisted with CDBG;

i) Provision of fair housing counseling services and activities; and

j) Preparation of applications for federal programs where the city determines such activities are necessary or appropriate to achieve its community development needs.

GrantWatch ID#:

GrantWatch ID#: 178582

Additional Eligibility Criteria:

Applicants may indicate the following entity types on the application form:
-Private Nonprofit
-For-Profit
-Public Agency
-Government Agency

The City of Santa Fe accepts applications annually from sub-recipients to undertake eligible activities as defined by HUD. Sub-recipients include:
1. Public or Private Nonprofit Agency, Authority or Organization
2. For-Profit entities who provide assistance specifically to microenterprises;
3. Institutions of Higher Learning

Ineligible Activities:
-Buildings used for general conduct of government;
-General government expenses;
-Political activities;
-Purchase of construction equipment; purchase of furnishings and personal property, unless part of a public service activity or necessary for use by city in the administration of the program;
-Repair, operation and maintenance of public facilities, improvements and services, except expenses associated with eligible public service activities, interim assistance and office space for CDBG program staff;
-New housing construction, except under special provisions;
-Community-Based Development Organizations (CBDO’s) that carry out public services, except services that are specifically designated to increase economic opportunities through job training and placement and other employment support services, or except services to a Neighborhood Revitalization Strategy approved by HUD.

Activities using CDBG funds must meet a number of federal standards, including
-Environmental Review
-Labor Standards ("Davis Bacon")
-Fair Housing and Equal Opportunity
-Accessibility for disabled people
-Record-keeping, reporting, monitoring and performance measurement
-Purchasing standards
-Acquisition and relocation regulations
-Lead Safe Housing Rule
-Avoiding conflicts of interest
-Uniform Administrative requirements such as Cost Principles, Standards for Financial Management Systems, and Audit requirements
-Change in Use Requirements
-Uniform Relocation Act
-SAM– This is the System of Award Management. If not already registered, the applicant must register via its DUNS number

Pre-proposal Conference:

RFP training is mandatory and will be conducted on Thursday, January 18, 2018, 2:00 - 4:00 PM. Applicants will be required to sign in.

All questions following the training will be directed to the Purchasing Division and all attendees will be notified of the questions asked via email.

Pre-Application Information:

Although not required, the agencies are also encouraged to find other funding sources to help leverage the CDBG funds.

Questions may be submitted to purchasing until 5:00 PM, Thursday, January 25, 2017.

Proposals will be received by the Purchasing Office until 2:00 PM local prevailing time, on February 2, 2018.

Schedule:
-Advertisement: January 5, 2018 and January 12, 2018
-Issuance of RFP’S: January 5, 2018
-Mandatory Technical Assistance Training: January 18, 2018
-Receipt of proposals: February 2, 2018
-Staff evaluation of proposals: February 5 - February 8, 2018
-Applicant Presentations to Community Development Commission and Grant Award: February 13, 2018
-Recommendation of Approval of Professional Services Agreements Community Development Commission: March 21, 2018
-Request to Publish for Public Hearing at City Council: March 28, 2018
-Recommendation of award at Finance Committee: April 16, 2018
-Recommendation of award to City Council and public hearing: April 25, 2018
-Beginning of Fiscal Year 2018-2019: July 1, 2018

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Shirley Rodriguez
sarodriguez@santafenm.gov

Applications may be mailed or hand delivered to:
City of Santa Fe Purchasing Office
2651 Siringo Road Bldg., “H”
Santa Fe, New Mexico
(505) 955-5711

Funding or Pin Number:

RFP # ‘18/20/P

URL for Full Text (RFP):

Geographic Focus:

USA: New Mexico: City of Santa Fe