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Miscellaneous Correspondence. COUNTY IF!NA NROE KEY WEST, 33040 '. I 0001 (305) 294-4641 n a MEMORANDUM DAM: DECEMBER 6, 1983 TO: ALL OOUNTY COMMISSIONERS FROM: W H MTNA G . HARVEY , CHAIRMAN - MAYOR BOARD OF COUNTY COMMISSIONERS Wilhelmina Harvey, District 1 Ed Swift, District 2 MAYOR Jerry Hernandez, District 3 Alison Fahrer, District 4 Mayor Pro tern Ken Sorensen, District 5 SUBJECT: Material from Grant writer, Mr. Bob Bensko, on Block Grant Programs; forwarding of Enclosed is information packet on the U. S. Housing and Urban Development (HUD) small cities and counties Block Grant Program for which we are holding public hearings on Dec. 15th and Dec. 16th. Additional application information will be fourthcoming. dj*�' Wilhelmina G. Harvey Mayor of Monroe County WGH/dp cc: Mr. Kermit Lewin, County Administrator Mr. Ed Stickney, Public Works Director Mr. Lucien Proby, County Attorney Mr. Danny Kohlage, Clerk of Court CITIES D AND JCJuS INPAC T FR0riRA fli Qpj)'_IC,,,i.jT I'I ANuriL NOVEMBO.R, 19�3 LFPAR : CF CC'itiNUf I T Y AFFAIRS i FLORIDA DFPAR-MENT OF CNIIMUN'ITY AF AIPS John M. DeGrov,,, Secretary DIVISION OF LOCAL RFS.OURCF James F, Murley, Director BUREAU OF LOCAL GOVERNMENT ASSISTANCE Ann Perrotta, Bureau Chief Dick Studebaker, Assistant Bureau Chia( Rod Wesi.alI Ann Getman Gail Buck Tom Jackson Harold EastmanDoug Lees Rikka Flemming Henry Turner 2571 Executive Center Circle, East Tallahassee, Florida 32301 f 7 904-43,- 3644 1 0 GENERP L INFORMATION i i I 1111'I:O."UCi' i.0il The purpose of this Applicr?n` 11,1jiu- 1 is to provide i_nf:ori:r, guidance and instructions to local cover)... -kits that are planning to ap?l� kor Sr.ants from the Florida Deportment o'. Gortimur-.i_ty Affairs' Sm.-.1.1 Cities Co!ranunity Ik:velopmc•nt Block Grant (CDBG) Pro,)rani and the CDBG Jobs Impact Pr oe. ram. The Small Cities CDBG Progr.ani, authori...ed. by Title I of th-1 Ind Community Development Act of 1974, as amended, provides assist-ance to local governments in meeting their housing and con::uunity development needs. The 1981 amendments provided that beginn:i.nt, in 1982, States could elect to assume responsibility for adinini.,tration of the Small. Cities Program. Florida elected to assume responsibility for administration of the program beginning in 1.983. The Florida Sm:.I.1 Cities Co;r,Munity Development Block Grant Act, Chapter 83-205, Laws of Florida allo,..s the State of Flori dr; to accept and administer the Small Cities .funds for the prim': ry purpose: of allowing local govern;cent, to undertake activities vrhich would benefit lour and moderate income persons, help eliminate slums and blight, or meet other urgent community development needs. The Act also gives the Department: of Community Affairs (DCA) the authority to administer the CDBG Program and sets forth guidelines for the Department's distribution of these funds. DCA Rule 9B-25 establishes administrative procedures by which these funds are made available to local governments for community development activities. Since DCA is author.i.z^d to administer the regular CDBG Program, it will also administer in 1983 Emergency Jobs Bill supplemental funds appropriated by Congress ii.� March, 1983. DCA Rule 9B-26 sets forth program procedures for malting these supplemental funds available-to' vailableto eligible local governments.R'.w (V) The. Applicant Manual is intended to explain, describe, and annplify both the Florida Act and ll"1 Rule t" 3-25 anu 9B 2(i� but i.o. no insu nce shall it- �.. supersede the Act nor the rules governing tiie prograui;s. The manual is only applicable to the portions of the Florida Small Cities CDBG Program under the authority of: the Florida_ Department of Community Affairs and the Jobs Impact Program. Applicants are encouraged to consult the admini.str,,ti.ve rules as well as this manual prior to submitting an application to the Department. I. GENERAL INFORMATION. A. Submission Dates. The deadline for submission of applications for the Jobs Impact Program is December 1`6,. 283. The deadline for submission of applications for the CDBG Small Cities Program is December 21, 1983. Three copies of each application must be submitted. At least one copy must contain original signatures. If hand delivered, applications must he delivered to the Clifton Building; Koger Executive Center; 2661 Executive Center Circle, West; Tallahassee, Florida; Third Floor, Room 326 and stamped received by 5:00 p.m. on the deadline date. If mailed, applications must be postmarked by midnight of the -1- deadline date. Applicaticr,s which do not meet these dcndlines will not be consideL:ed . Applicatio;!:; should be addressed to: Ann Perrot:ta, Chief; I of Local Governm_r:t Assistance; 2571. Executi�,_, Center Circle, East; Tallahr Florida 32301. B. EZiible Applicants. 1. _P.a,ulnr Sma.l_.l Cities Corrnun ty Develop iie., iT Block Grunt (CDBG) Pr.opram. Small Citics are incorporated units of general local governmen with populations of less than 50,000 and counties with populations of less 200,000 and are the only applicants'eligible to apply for grants under the Florida Small Cities:, CDEG Program. The following units of local government not eligible: # Metropolitan cities eligible to participate in a U.S. Department of Housing and Urban Development (MUD) entitlement pt:ogram; * Urban counties; Units of local government participating in an urban county or metropolitan city CDb'G entitlement program; Indian tribes eligible for assistance under Section 107(a)(3) of the Housing and Community Development Act. Local governments requesting that the Department honor a prig HUD funding commitment shall be ineligible to apply for additional state ` for Housing and ;neighborhood and Commercial Revitalization grants o:ithin t -cycle for which multi -year funding has been honored. Those cities which have elected to withdraw from the urban c� entitlement program in order to compete in the State Small Cities CDB,G Pru '. may apply for State program funds if they are in the final year of an entitlement commitment and if all current. CDBG projects are nearing (approximately 80%) completion. A complete list of the cities and countic- eligible to participate in the FY 1983 Small Cities CDBG Program -is inclu Appendix A of this manual. 2. Jobs Impact PToQram. Units of local government eligible to apply for funding und(­ regulor CDBG Program are also eligible to apply for funding under the Job: Impact Program. Local governments with prior HUD CDBG multi -year commitm: are also eligible to apply under this program. 3. Governor's Discretionar Jobs Impact Pro gram Fund. L_ _ _1 _ .?,._.__ _ Applicants who apply for funds under the Governor's Discret;f: Jobs Impact- Program Fund shall not be eligible to compete for funding und� -2- regular porn}_on of the Jobs Impact Program. C. .ap^s of Ap.>>lications. Applications may be submitted individually or jointly. 1. Indivi.di.�_-,1 Applj at �.ons. Local governments may submit- applications to undertake eligible activities within their jurisdiction. The geographical area of a jurisdiction may be the corporate limits of the municipality, its extraterritorial jurisdiction or areas outside its jurisdiction,'depending on the project activities. Applicants may submit one application for each of the following categories: housing, neighborhood and commercial revitalization and one application under the Jobs Impact Program. 2. Joint Ap -i.cations. In cases where mutual action on the part of two or more local governments, including counties, is necessary to resolve a.common problem shared by the local governments, a joint application may be submitted by the cooperating local governments. The necessity for mutual action must be clearly documented in the Target Area Needs Form (DCA-S). a. Restrictions. Local governments submitting a joint application cannot submit an additional individual application for funding under that same category but may submit an application under another category. Local governments submitting a joint application under the Small Cities Program can submit an additional individual application for funding under the Jobs Impact Program. b. Interlocal Agreements. A written interlocal agreement between the participating local governments must be submitted with joint applications. The agreement should designate the unit of government that will serve as the lead agency in submitting the application and in implementing the proposed activities. A sample interlocal agreement is included in Appendix B of this manual. 3. Activities Outside an Applicant's Boundaries An applicant may conduct eligible block grant activities outside its corporate boundaries, provided the applicant demonstrates that the activities are appropriate to meeting the locality's needs and objectives and is consistent with State and local law. This provision allows the applicant to use CDBG funds for activities carried out in a metropolitan city or an urban county, if there is a demonstrated overlapping need. Where this is the case, the applicant must enter into an interlocal agreement to certify that it has the legal authority to carry out the proposed activities in these areas. -3- D. Di ctribiition of Prcyram Fund:;. Applicants may submit one application for each of the following two areas: Housing and Neighbor hood "and Commercial Revitalization categories of i regular CDBG Progran and the Jobs Impact Frogram. Applicants may also apply v to three (3) times in any one annual funding cycle for a grant under the Economic Development Program category implemented by the Florida Department o; Commerce. An applicant may receive a grant award from each of these areas. 1. Cate or}� Fundi.n �Level.s . a. Regular Program. The FY '83 federal allocation for the Florida Small Cities Ci program is $26,182,000. The Florida Department of Community Affairs expects t distribute to eligible local governments approximately $13,543,270 through t1c, competitive process. The amount of funds available in each category is as follows: housing - 40 % or $7,851,171 Neighborhood and Commercial Revitalization - 29 % or $5,692,099 Thirty percent (30%) or $5,888,378 has been allocated to the Economic Developurlit category administered by the Florida Department of Commerce. The remaining one percent (1%) has been allocated to the regional planning councils to provide application and planning assistance to eligible local governments. b. Jobs Impact Program.'-'/61 The FY '83 federal allocation for the Florida Small Cities,,:' Jobs Impact Program is $4,835,000. Of the total funds available, eighty pert. (80%) of the funds will be utilized under the regular program and twenty pert (20%) of the funds will be reserved in the Governor's Discretionary Fund. Local governments may submit one application comprised of or s or more eligible activities vhich will benefit low and moderate income persoi,. help eliminate slums and blight, or meet other urgent community development needs. In addition,the proposed activity must assist the unemployed and nee0 to the extent practicable where unemployment is highest and has been high for the longest period of time; for purposes which have the greatest immediate employment impact and in a manner which maximizes immediate creation of new employment opportunities to individuals who.were unemployed at least 1.5 of ti: 26 weeks before ?`larch 24, 1983. The application should provide evidence that programs operated under the Jobs Training Partnership Act (JTPA) and the Wagner-Peyser Act have been notified of proposed activities under the .Jobs Impact Program. Applications may be submitted under either the regular porti of the Jobs Impact Program or the Governor's Discretionary Fund. There is no limit to the number of projects for %.,hich a local government may apply; howe% the total grant request may not exceed $750,000. -4 2. Grant Size _+nd J.opu?at-J.on Groups. a. Regular Program. There is no mini-mum.amount for which v.n applicant may apply or be alrrrded funding; however, grant ceilings related to population size of the applicant have been established. These ceilings establish limits on the amount of funds that may be requested in a single application by a community of a certain size. Population size is based on 1980 U.S. Census of population counts. In the.case of county applications the population will include only the unincorporated area of that county. Joint applicants will base their grant ceilings on the population size of the largest local government participating in the joint application. When deciding to submit an application for funding, communities should pay careful attention to the population sizes and grant ceilings listed below to determine the amount of funds for which they can apply. Population Grant Ceiling 1 - 2,999 $500,000 3,000 -9,999 $650,000 10,000 - above $750,000 b. Jobs Impact Program. There is no minimum amount of funding for which a coimnunir.y may apply under the Jobs Impact Program or Governor's Discretionary Fund. However, the maximum grant award to any eligible community will be $750,000 regardless of the community's population size. E. Eligible Ac.tivities. Eligible activities mean those community development activities authorized in s. 105(a) of Title I of 'the Housing and Community Development Act of 1974, as amended, and in applicable federal regulations. The Department will use the CDBG Rules and Regulations, Subpart C. Section 570.200 - 570.207 as published in the September 23, 1983, Federal Register, to distinguish eligible. and ineligible activities. The Department of Community Affairs retains the authority to determine eligibility of any and all proposed activities. Applicants should note that activities are eligible only to the extent to which they address the needs of low and moderate income per!,r.)ns, or aid -in the prevention or elimination of slums or blight or meet other urgent community development needs. In general, the following categories contain the major types of activities that are eligible for funding under the Small Cities Program: -5- h.. Hou i.n,• Category. / Local governments' submitting applications under the Ilousi. category shall propose as their primary objective to improve housing Condit or expand housing opportunities primarily for low and moderate income perse:" Examples of eligible activitie's that .could achieve this objective include rehabilitation of houses in a target area., demolition of dilapidated housir the relocation of residents to safe, sanitary and decent housing, energy -efficient improvements, code enforcement, land assembly, or historic.; preservation. Complementary activities in the housing program category those eligible activities which are appropriately related and are in suppoy. the primary activity for which grant funds are being requested. The amount: funds requested for complementary activities shall represent no more than 2;. the total funds being requested by the applicant. 2. Neighborhood and Commercial Revitalization Category. Local governments submitting applications under this cater shall propose as their primary objective to conserve and revitalize declin target area neighborhoods or commercial target areas by addressing the majc problems contributing to the decline being experienced in these areas. Ex,-:. 1 of activities that could achieve this objective include, but are not limits j improvements to deteriorating infrastructure; provision of.basic*services, i as roads, water., sewer, and.drainage facilities; the rehabilitation of neighborhood facilities that provide community services for the target area residents; construction of facilities for the handicapped; downtown or neiuhborhood commercial redevelop.,nent. Or housing activities, where the additional activi.tie, would constitute more than 20% of the total grant amc 3. Jobs Impa.^t: Program. There are three (3) major project areas which are eligible and the Jobs Impact Program. a. General Projects. All activities eligible under the regular CDBG Program arc eligible under the Jobs Impact Program with the exception of recreational activities. Recreation activities are not eligible for funding under the J Impact Program. b. Public Services. Up to 30% of Jobs Impact funds may be proposed for public service activities as long as these activities complement and relate to oth community development activities undertaken in the target area. However, C. those public service activities which serve basic needs that have experienc reduction in other resources within the past 18 months will be considered f funding. A( -6-rip f� n!(�v i LocE'il governments are re i.tired to provide an up --front- cash r.-.ritch. on the salaries, paid to. persons employed in public service projects. The cash match is 50 Laid Y�viy come from other public or pVivate sources. The match fu­..',s must be deposited in a separate account prior to the receipt of grant fund,. c. Economic Devcloprient Projects. All applications requesting funding for economic development projects must contain a ratio of total dollar amount of all private funds to Jobs Impact Program funds of no less than 2:1 (for every one ($1) dollar of I.ubl.ic funds spent, two ($2) dollars of. private .funds must be spent on the project). Applications must also contain legally binding commitments from financial institutions, lessors and other participants in the project without whom the project could not be. completed as proposed. Grant funds will be released after private funds have been invested or on a prorated basis. d. Governor's Discretionary Fund. The eligible activities are the same as under the Economic Development portion of the Jobs Impact Program. Projects proposed under this fund must: 1) Have an exceptionally high leveraging ratio wherein the ratio of nonpublic funds to public funds invested in the project is equal to or greater than 20:1. In other words, for every one ($1) dollar of public funds_ invested in the project there must be at least twenty ($20) dollars of private funds invested. 2) Demonstrate that the project will make a significant impact on the area and which, in the Governor's judgement will be of substantial economic benefit to.the entire state. 3) Contain legally binding commitments from financial institutions, lessors and.other participants in the project without whom the project could not be completed as proposed. 4. Determi.ninr EliibilitI. Applicants should ch-ck.t:he basic eligible activities listed in Subpart C of the CDI3G regulations, Section 570.201, to determine which activities will be eligible. If -there are special requirements outlined in 24CFR Part 570, CDEG regulations dated September 23, 1983, then the applicant must demonstrate how the proposed project meets those special considerations. Parking facilities, fire protection facilities, and public services are examples of eligible coimwiunity development activities which must meet: other special requirements. The Department of Community Affairs retains the authority to determine eligibility of any and all proposed activities. If there are further questions about- the eligibility of proposed activities, call the•Departmc:nt for guidance. —7— } ROMP SEVEN MANAGEMENT CONSULTANTS 1017 Varela Street Key West, Florida 33040 (305)-294-0621 May 15, 1985 Mayor Wilhelmina G. Harvey Monroe County Courthouse Commission Offices 310 Fleming Street Key West, Florida 33040 Re: Group Seven, Inc. Fee for HUD Rental Rehabilitation Program Dear Mayor Harvey; Please place the following item on the May 24, 1985 Monroe County Commission Agenda to be held in Plantation Key. "Approval for payment of Group Seven, Inc. (Robert R. Bensko, Grants Writer) fee for acquisition of a $1,100,000 HUD Rental Rehabilitation Project, with a $550,000 grant to rehabilitate 110 units -Fee $18,450." Your office should receive notification of the award through the U.S. Represen- tative's office by the end of this week. Please note that the number of units has been slightly reduced from 125 units to 110 units due to an oversubscription of funds for the whole state. We will, however, endeavor to increase the number of units and grant funds as they become available. According to the HUD consultants and my own inquiries and research, an effort is being made in Congress to allow HUD to extend its Rental Rehab program into the U.S. Farmer's Home Administration jurisdiction - in our case, the Upper I:eys. Apparently, the Congress failed to provide the Farmer's Home Administration equivalent rental rehab program with a rent subsidy program. This is why it is not workable as it now stands. Meanwhile, every effort is being made to aid the Hibiscus Park area in their Housing Program. I obtained home owner construction applications from the Farmer's Home Agency and forwarded them to Mrs. Beverly Johnson of the Upper Keys Committee for their use, and apprised her of what was taking place with the rental rehab program. When the HUD program is extended into the Upper Keys, there will be sufficient units to service that area. I will prepare a rental rehab program description for publication when the grant announcement is formally made. It has taken a great effort by many, especially the Monroe County Commission, to construct a housing project of this magnitude, and its implementantion should be properly acknowledged. Sincerely, Robert R. Bensko ROUP SEVEN MANAGEMENT CONSULTANTS 1017 Varela Street Key West, Florida 33040 (305) 294-0621 May 14, 1985 -STATEMENT OF SERVICES - Project development, application preparation and $18,450 grant acquisition for a $1,100,000 HUD Rental Housing Rehabilitation Project with a $550,000 grant. There will be no charge for the several million dollars in rent subsidies that are awarded to the Monroe County Housing Authority. The activities cover the period from November, 1984 until the present. The services included project coordination with HUD, the Housing Authority, the HUD and Housing Authority Consultants and the County Planning Department. The fee calculation is in accordance with our contract with the County, and is detailed on the attached page. Total Due $18,450 UP SEVE MANAGEMENT CONSULTANTS May 14, 1985 GROUP SEVEN FEE CALCULATION FOR MONROE COUNTY HUD RENTAL REHABILITATION PRO(.�RAM Project Cost $11,100,000 ($550,000 grant + $550,000 Developer Match) Project Development Fee 0-$50,000 2% x $50,000 = $1,000 $1,050,000 $5031000-$2009000 1.5% x $1501,000 = 900, 00 $2,250 $200,000-$5001p000 .75o x $300,000 = 600,000 $211250 $500,000-$750,000 5o x $250 000 = $11250 0�� $750,000-$1,100,000 .2o x $350,000 = $ 700 SUBTOTAL PREPARATION FEE $7050 Performance Incentive Fee (Grant $550,000 x 20) _ $11,000 TOTAL FEE DUE $18,450 Note: The original grant request was for $625,000; however, the grant was reduced because of a shortage of statewide funds. It is anticipated that a grant increase may come at a later date.