2020 Community Development Block Grant (CDBG) and HOME Investment Partnerships Program Application Guidelines - City of Vancouver Community & ...
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2020 Community Development Block
Grant (CDBG) and HOME Investment
Partnerships Program Application
Guidelines
City of Vancouver Community & Economic Development, CDBG & HOME
Program
P.O. Box 1995
Vancouver, WA 98668-1995
www.cityofvancouver.us/cdbgTABLE OF CONTENTS
Introduction .................................................................................................................................................................... 3
Funds Available ............................................................................................................................................................ 3
Application Workshop ................................................................................................................................................ 4
Accessing the Application ........................................................................................................................................... 4
Process Timeline ............................................................................................................................................................ 4
Funding Objectives ...................................................................................................................................................... 5
Use Of Funds................................................................................................................................................................. 5
City-County Joint Funding ........................................................................................................................................... 6
Ineligible Activities ....................................................................................................................................................... 7
Funding Terms ............................................................................................................................................................... 7
Funding Period.............................................................................................................................................................. 8
Zoomgrants™ Information ......................................................................................................................................... 8
Required Budgets ......................................................................................................................................................... 9
Applicant Presentations............................................................................................................................................ 11
Grant Review Committee......................................................................................................................................... 11
Prioritization Factors ................................................................................................................................................. 12
Approval Process ...................................................................................................................................................... 12
Insurance ..................................................................................................................................................................... 12
Project Scoring Criteria ............................................................................................................................................ 13
Appendix Documents ................................................................................................................................................ 14
HUD Income/Rent Limits .................................................................................................................................... 14
Housing Development Underwriting Parameters.......................................................................................... 17
Proposed 2019-2023 Consolidated Plan Goals ......................................................................................... 18
Project Timeline ................................................................................................................................................... 19
Project Budget Form .......................................................................................................................................... 20
Example Operating Pro-Forma ....................................................................................................................... 22
Pre-Application Questions ................................................................................................................................ 23
Application Questions ........................................................................................................................................ 25
2020 CDBG/HOME Application Guidelines 2INTRODUCTION
The City of Vancouver Community Development Block Grant (CDBG) and HOME Investment Partnerships
Program are now accepting applications for the 2020 funding cycle. The City of Vancouver funding
application includes both CDBG and HOME funds. Staff will determine the funding source based upon
the nature of your request.
The Community Development Block Grant (CDBG) and HOME Investment Partnerships Program are
funded by the U.S. Department of Housing and Urban Development (HUD) and authorized by Title I of
the Housing and Community Development Act of 1974, as amended. Funds are for the 2020 Program
Year beginning July 1, 2020, but may not be available until August or September 2020.
The purpose of the CDBG program is to benefit low- to moderate-income households by funding
projects that revitalize neighborhoods, increase affordable housing, expand economic opportunities,
and/or improve community facilities and services.
The HOME program funds a wide range of activities that build, buy, and/or rehabilitate affordable
housing for rent or homeownership or provide direct rental assistance to low-income people. The
program's flexibility allows use of HOME funds for grants, direct loans, loan guarantees or other forms
of credit enhancement, and rental assistance or security deposits.
FUNDS AVAILABLE
We will not have final CDBG and HOME budget numbers until the 2020 federal budget has been
adopted. We estimate $1,300,000 in CDBG and HOME funds to be available through this application
round. Amounts are subject to change based on final figures from HUD. See “Use of Funds” on pages 5-
6 for a description of project types.
Community Development Block Grant (CDBG):
• Approximately $500,000 available for Non-Profit Facilities/Capital Improvements, Economic
Development, and Housing Services
• Approximately $200,000 available for Homelessness and Other Public Services
The City of Vancouver reserves approximately $300,000 in CDBG funds for projects managed by the
City and $230,000 for planning and administration.
HOME Investment Partnerships:
• Approximately $600,000 available for Housing Projects and Tenant Based Rental Assistance
o Approximately $100,000 is set aside from the amount above for Housing requests
submitted by a Community Housing Development Organization* (CHDO). The City may
also award an additional five percent of its HOME entitlement amount for operating
costs to a CHDO.
2020 CDBG/HOME Application Guidelines 3The City of Vancouver reserves approximately $70,000 in HOME funds for program administration.
*A Community Housing Development Organization (CHDO) is a private nonprofit, community-based
service organization whose primary purpose is to provide and develop decent, affordable housing for
the community it serves. If an organization becomes a certified CHDO, it is eligible to apply for HOME
funds set aside for CHDO projects and operating expenses. See the City of Vancouver CHDO Policies
and Procedures for requirements and application information.
Application Request Limitations:
Exceptions to funding limits may be made on a case by case basis. See “Use of Funds” on pages 5-6
for a description of project types.
• $25,000 minimum request for all applications.
• $50,000 maximum request for Homelessness and Other Public Services.
• $75,000 maximum request for Housing Services applications.
• $250,000 maximum request for Non-Profit Facilities/Capital Projects, Housing Projects, and
Tenant Based Rental Assistance applications.
Up to four applications may be submitted per eligible entity per year. Exceptions may be granted
based on consultation with City staff. Private individuals cannot receive funds.
APPLICATION WORKSHOP (Optional)
An optional application workshop for interested applicants will be held on Friday, October 18 from
10:00 a.m. to 12:00 p.m. in the Aspen Room at City Hall, 415 W 6th Street, Vancouver. Staff will be
available for consultation following a presentation on the application guidelines and process.
ACCESSING THE APPLICATION
Applications will be administered through ZoomGrantsTM. A link to the online application, the application
guidelines, and previously funded projects are available through the City’s website at:
www.cityofvancouver.us/cdbg
PROCESS TIMELINE
October 14, 2019 Applications available
October 23, 2019 Application workshop (optional) 2:30-4: p.m. City Hall Aspen Room
November 13, 2019 Pre-application due at 5 p.m. Pacific Standard Time
December 16, 2019 Final application due at 5 p.m. Pacific Standard Time
January, 2020 Applicant presentations (tentative)
March/April 2020 Funding recommendations to City Council
April/May 2020 City Council public hearing to adopt Action Plan
May 2020 Final Action Plan to HUD
2020 CDBG/HOME Application Guidelines 4FUNDING OBJECTIVES
The City of Vancouver would like utilize its limited CDBG and HOME funds to create more lasting and
permanent improvements to our community. The City plans to target funding to meet the following
objectives:
• Affordable housing: Increase and preserve affordable housing opportunity for low-income
households and people who are homeless.
• Public services: Reduce poverty, increase stability, and prevent and address homelessness for
individuals and families. Where possible, support existing community initiatives and target
funding to align with City strategic planning efforts.
• Economic development: Increase economic opportunity by supporting small businesses.
• Public facilities and infrastructure: Create and preserve buildings and spaces that serve the
public.
For more information, see the Proposed 2019-2023 Consolidated Housing and Community
Development Plan Goals listed on page 18.
USE OF FUNDS
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
The purpose of the CDBG Program is to benefit low- to moderate-income households/persons by
funding projects that revitalize neighborhoods, increase affordable housing, expand economic
opportunities, and/or improve community facilities and services. Under this current application cycle, the
City of Vancouver is accepting applications for Public Services, Economic Development, Housing
Services, and Non-Profit Facility/Capital Improvement Projects.
• Public Services: To be eligible for CDBG assistance, a public service must be a new service or
demonstrate a quantifiable increase in the level of an existing service above that which has
been provided in the previous 12 calendar months. Examples of public services include but are
not limited to homeless services, shelters, legal aid, financial counseling, job training, mental and
behavioral health, and after-school programs.
• Economic Development: Targeted to agencies that provide technical assistance and resources
to small businesses/microenterprises.
• Housing Services: Targeted to agencies that provide housing services to low-income households
who are eligible for HOME funded units, including Tenant Based Rental Assistance.
• Non-Profit Facility/Capital Improvement Projects: Acquisition, construction, reconstruction,
rehabilitation, or improvements that will make a lasting change to the community are eligible.
The facility must benefit at least 51% low- and moderate-income persons.
2020 CDBG/HOME Application Guidelines 5Community Development Block Grant funds may be used for activities which include, but are not limited
to:
• Acquisition of real property
• Activities relating to energy conservation and renewable energy resources
• Construction of public facilities and improvements
• Housing services that support a HOME funded project
• Provision of assistance to businesses to carry out economic development and job creation
activities
• Public services
• Rehabilitation of residential and non-residential structures
• Relocation and demolition
For additional information on CDBG eligible activities, please view the Guide to National Objectives &
Eligible Activities for Entitlement Communities available on the HUD website at
http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/library/deskguid
HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)
The HOME Investment Partnerships Program funds a wide range of activities that build, buy and/or
rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-
income people. HOME funds are available as loans or grants to provide decent, affordable housing.
HOME funds may be used for activities which include, but are not limited to:
• Acquisition of housing to support low-income households
• Homebuyer assistance programs
• Homeowner housing rehabilitation
• Rental housing construction/rehabilitation
• Tenant-based rental assistance programs
• Community Housing Development Organization (CHDO) operating expenses
Additional information on HOME eligible activities is available on the HUD website at
http://www.hud.gov/offices/cpd/affordablehousing/training/web/abc/activities/
CITY-COUNTY JOINT FUNDING
Projects that serve people county-wide must are encouraged to apply for funding through Clark County
and may require a proportionate contribution of County CDBG funds based on the percentage of
clientele living in and outside the city limits of Vancouver. The final award may be adjusted based on
the established proportionality and the amount funded by Clark County.
Capital projects located outside of Vancouver in Clark County may be funded with City CDBG/HOME
funds, provided that Clark County also awards funding and the project provides some benefit to city
residents.
2020 CDBG/HOME Application Guidelines 6Applicants seeking joint City-County funding for a capital project must provide information about the
project at a Board of County Councilors meeting prior to submittal of the final City CDBG/HOME
application.
Use of City CDBG/HOME Funds
Project Located in Project Located in Clark
Vancouver County
Yes, City can fund City may fund only if Clark
County funds and there is
some benefit to city residents
INELIGIBLE ACTIVITIES
Generally, the following types of activities are ineligible for CDBG funding:
• Acquisition, construction, or reconstruction of buildings for the general conduct of government
• Certain income payments
• Construction of new housing by units of general local government
• Political activities
Generally, the following types of activities are ineligible for HOME funding:
• Financing of non-residential properties or project components
• Privately-owned special needs housing
• Projects in which housing is not the primary focus, such as alcohol and chemical dependency
treatment facilities, correction facilities, medical treatment facilities, nursing homes, student
housing and private foster care housing
• Refinancing of existing debt
FUNDING TERMS
CDBG funds awarded to nonprofit agencies for construction or acquisition will be contracted as ½ loan
and ½ grant with loan repayment at 0% interest over a period of 15-50 years (excluding planning
activities). The loan shall be secured by a Promissory Note and/or Deed of Trust. Loan terms for CDBG
funded projects that also have HOME funds shall be the same as the HOME terms. A waiver may be
applied for in consultation with the Program Manager, but it is not guaranteed. All projects resulting in
real property will carry a covenant for a minimum of 20 years.
HOME funds shall generally be loaned at 1% to 3% interest amortized over a period of up to 40
years depending on other sources of funding. There will be a low-income housing covenant on the land
insuring that it remains in use as affordable housing for the same time period.
2020 CDBG/HOME Application Guidelines 7FUNDING PERIOD – 2020 Program Year (July 1, 2020 – June 30, 2021) CDBG and HOME funds grants can be used to fund activities that occur during the period of July 2020 through December 2021. Please note that funds may not be available until August or September 2020. A CDBG project which does not have a firm commitment of 100% of its funding within nine months of selection by City of Vancouver shall not receive an executed contract. Awarded funds will be reallocated. Funding for HOME projects should be committed within two years and expended within five years. ZOOMGRANTS™ INFORMATION The online application process through ZoomGrants consists of three steps. NOTE: All users must first click the ZoomGrants link on the City’s website to access the application. Create an Account – Enter basic information such as name, amount requested, and application/project name. Returning ZoomGrants applicants can use their username and password from a previous year. Because spellcheck is not available in ZoomGrants, we recommend using a word processor to count the number of characters and check spelling, then cut/paste back into ZoomGrants. Applications may be saved by clicking outside of the answer box. Pre-application – The mandatory pre-application must be completed in ZoomGrants by Wednesday, November 13, 2019. See questions on pages 23-24. The City will review pre-applications to determine projects meet HUD basic eligibility (24 CFR 570.201) and national objective criteria (24 CFR 570.208), as well as the City’s Consolidated Plan goals. Determinations will be issued within two-business days of submission and agencies will receive an e-mail from ZoomGrants once the pre-application is approved or denied. All applicants must have or obtain an active registration with the federal System for Award Management (SAM) at www.sam.gov prior to awarding of funds. Registered entities will receive an identifier known as the SAM CAGE Code. SAM registration expires after one year, so applicants may need to update their registration if it is no longer current. A DUNS (Data Universal Numbering System) number is required for SAM registration. Instructions on how to obtain one can be found on the following website: https://www.grants.gov/web/grants/applicants/organization-registration/step-1-obtain-duns- number.html. There is no cost for a DUNS number or SAM registration. The pre-application asks for the DUNS number and SAM CAGE Code of your agency. If you have difficulty obtaining either before the pre-application deadline, please contact staff. 2020 CDBG/HOME Application Guidelines 8
Proposal – Once the pre-application is approved, agencies can begin completing the proposal.
Proposals are due by 5 PM (PST) on Monday, December 16, 2019.
Applicants must download the timeline and line-item budget templates under the Documents tab,
complete the forms, and upload them back into Documents (note: depending upon your request, other
budget forms may be required; see below). Supporting documentation, letters of support, and
commitment/collaboration letters may also be uploaded in the Documents tab.
The final proposal submitted online consists of the following:
• Application questions
• Finance Sources and Uses tab
• Documents tab:
o Timeline (template provided in ZoomGrants, see Appendix page 19)
o Project/program line-item budget (Excel template provided in ZoomGrants, see
Appendix page 20, please upload as an Excel document)
o Agency budget
o Operating pro-forma – required when applying for a Housing, Non-Profit Facility, or
Capital Improvement Project (see Appendix page 22 for example)
o Additional documents such as funding commitment letters or MOUs as needed
Contact Peggy Sheehan at (360) 487-7952 or Danell Norby at (360) 487-7953 if you have questions.
For Technical Assistance please contact ZoomGrants directly at 1-866-323-5404 or by email at
Questions@ZoomGrants.com.
REQUIRED BUDGETS
There are three separate budget documents that are required for all applicants, and one additional
budget that is only required for some types of projects.
• Finance Sources and Uses
• Project/Program Line Item Budget
• Agency Budget
• Operating pro-forma – only required for housing and non-profit facility/capital improvement
projects
FINANCE SOURCES AND USES - ZoomGrants tab
Funding Sources/Revenues Section
Provide project funding source under Item Description – including commitment status, for example:
United Way (committed) $50,000
Agency Fund Raising (non-committed) $20,000
Note that documentation must be provided for all committed funds (i.e. award letters, loan documents,
letters of interest). You can upload your commitment documentation under the Documents tab in
ZoomGrants.
2020 CDBG/HOME Application Guidelines 9Funding Uses/Expenses Section
Provide project funding uses under Item Description – for example:
Program Costs
• Personnel services: The salary and fringe benefits for employees charged to the
project/program.
• Operating supplies: Supplies that are used in the operation of a program; such as paint, hand
tools, office supplies.
• Telephones/computers and related charges
• Travel and training: Cost of travel, training, private auto mileage and miscellaneous travel
expense.
• Legal & public notices: Costs incurred for notices in newspapers and related media.
• Administrative costs: Costs associated with administration of the funded program.
• Insurance
• Audit/legal
Acquisition
• Purchase price: The fair market price paid for the land and any buildings.
• Closing & recording costs: The cost for recording, title insurance, and legal review of sale
documents
• Boundary survey, appraisal, review appraisal and Phase I environmental cost.
Construction/Rehabilitation Cost
• New construction or rehabilitation: The labor and material cost, typically based on the low bid,
to construct a new facility.
• Infrastructure: The improvements to a site including grading, water lines, sewer lines, streets,
curbs, sidewalks and other activities in the public right of way or required to access the public
right-of-way.
• Cost estimates: must be provided by a licensed professional architect, engineer or other licensed
individual.
• Architect and/or engineering: The cost of an architect and/or engineer for the preliminary
design, final drawings and construction observation. NOTE: For construction projects, be
prepared to provide DETAILED documentation prepared by a licensed architect or engineer
relating to costs involved for the construction. Sales tax and contingency should be included in
this estimate. Upload estimates under documents tab in ZoomGrants.
When using CDBG funds, any construction in an amount exceeding $2,000 requires the tracking and
payment of Davis Bacon Wage rates. These federally mandated wages are applied to construction
trades and can be obtained from City staff. The current thinking is that Davis Bacon can add 20% to
the labor costs of a construction project.
2020 CDBG/HOME Application Guidelines 10Development Costs
• Insurance: Required insurance during the construction period only.
• Relocation: Costs involved in moving individuals, families, businesses, farm operations and
nonprofit organizations displaced as the result of grant project or activity.
• Project management: The costs of general management, all components of the project from
beginning to completion.
Finance Sources and Uses Narrative
Use the narrative section to:
• Describe plans to obtain any uncommitted funds for this specific project.
• Describe the impact on your project if awarded only half of your request. Explain how this
project will move forward if other uncommitted funds are not received.
• Describe your plans for financing this project on an ongoing basis, if applicable.
PROJECT/PROGRAM LINE ITEM BUDGET
Upload under ZoomGrants Documents tab using the Excel template provided (see Appendix page 20).
Please upload in Excel format. For substantial construction/rehab projects, applicants should substitute
the agency’s detailed development budget (sources and uses) form.
AGENCY BUDGET
Upload under ZoomGrants Documents tab.
OPERATING PRO-FORMA
All housing and non-profit facility/capital improvement projects must provide a fifteen year operating
pro-forma. An example is provided in the Appendix on page 22 and is available for download in the
documents tab of your ZoomGrants application.
APPLICANT PRESENTATIONS
Application presentations will take place in January 2020. Applicants will be asked to give a short 10-
15 minute presentation to the Grant Review Committee. A laptop and projector will be available.
GRANT REVIEW COMMITTEE
Deciding who should receive funding is a difficult and time-consuming process. A volunteer committee
composed of City employees and community representatives will review applications and complete the
scoring process. Proposals will be scored by City staff and the Grant Review Committee using the
Project Scoring Criteria on page 13. Project scores guide the prioritization of projects; priorities are
presented to City Council for approval.
2020 CDBG/HOME Application Guidelines 11PRIORITIZATION FACTORS
Funding priority will be given to projects that:
• Are clearly defined as to scope, location, need, budget, and goals;
• Meet the Proposed 2019-23 Consolidated Housing and Community Development Plan Goals
(page 18);
• Can begin immediately and finish within the contracted time;
• Demonstrate the applicant has the capacity to carry out the project successfully;
• Establish means for program evaluation and accomplishment tracking;
• Have adequate community support and address an identified community need;
• Impact a significant number and/or percentage of low- and moderate-income persons;
• Maximize the use of outside funds and services; and
• Coordinate with other public and private efforts.
CDBG projects that are prepared to begin immediately (July-September) will be given additional
consideration during the ranking process.
Project match is required for HOME projects and strongly encouraged for CDBG projects. Match does
not need to be cash in hand but should be a commitment from other funding sources.
APPROVAL PROCESS
Once the Grant Review Committee has prioritized the projects, City staff will present funding
recommendations to City Council for review. A public hearing with City Council will be held for final
approval. Applicant and citizen comments will be accepted at the public hearing. Written comments
may also be submitted to City staff. Following the hearing, notification will be provided to applicants
regarding their project’s funding status.
Any agency recommended for funding will undergo a thorough administrative review prior to
contracting. In addition to an assessment of project feasibility, agencies may need to provide various
policies and financial and insurance documentation to assure compliance with HUD requirements. Please
refer to the CDBG and HOME Policies and Procedures Manual for more information.
INSURANCE
Agencies that are awarded funds shall obtain insurance coverage that meets City of Vancouver
standards. Insurance guidelines are located in the CDBG and HOME Policies and Procedures Manual.
2020 CDBG/HOME Application Guidelines 12PROJECT SCORING CRITERIA
Applications will be subject to the following scoring criteria. Scores serve as a guide for the
prioritization of projects by the Grant Review Committee.
Committee Scoring Maximum Points
Importance to the community 12
Clearly defined scope, goals and outcomes 10
Implementation and timeline 5
Community livability and employment readiness 5
Evidence of project/program’s long-term financial viability 8
Evidence of qualified staff and capacity to maintain/manage project 10
Organization’s partnerships and collaboration 10
Total Committee/Subjective Score 60
Objective Scoring Maximum Points
Project Cost Benefit: CDBG/HOME Expenditure per low/mod units/households served 9
Scoring will compare like projects.
Lowest third of projects = 9 pts
Medium third of projects = 6 pts
Highest third of projects = 3 pts
Total Cost Benefit: Total Expenditure per low/mod units/households served 6
Scoring will compare like projects.
Lowest third of projects = 6 pts
Medium third of projects = 4 pts
Highest third of projects = 2 pts
Displacement/Relocation: No points if project requires permanent displacement 2
or relocation
Budget: Based on percent of committed matching funds: 18
0% = 0 pts
1-10% = 3 pts
11-20% = 6 pts
21-30% = 9 pts
31-40% = 12 pts
41-55% = 14 pts
56-70% = 16 pts
>70% = 18 pts
Homeless Services: Based on percentage of homeless people served 5
Total Objective Score 40
TOTAL POINTS 100
2020 CDBG/HOME Application Guidelines 13APPENDIX DOCUMENTS HUD Income/Rent Limits ........................................................................................................................................... 14 Housing Development Underwriting Parameters ................................................................................................ 17 Proposed 2019-2023 Consolidated Plan Goals................................................................................................ 18 Project Timeline.......................................................................................................................................................... 19 Project Budget Form ................................................................................................................................................. 20 Example Operating Pro-Forma .............................................................................................................................. 22 Pre-Application Questions ....................................................................................................................................... 23 Application Questions ............................................................................................................................................... 25 2020 CDBG/HOME Application Guidelines 14
HUD INCOME/RENT LIMITS
FOR CDBG-FUNDED PROGRAMS:
Income Limits
Income Number in Household
Median
Limit
Income 1 2 3 4 5 6 7 8
Category
Low
Income
$49,250 $56,250 $63,300 $70,300 $75,950 $81,500 $87,200 $92,800
(80% of
Median)
Very Low
$87,900 Income
$30,800 $35,200 $39,600 $43,950 $47,500 $51,000 $54,500 $58,080
(50% of
Median)
Extremely
Low $18,450 $21,100 $23,750 $26,350 $30,170 $34,590 $39,010 $43,430
Income**
Effective April 24, 2019
Source: https://www.huduser.gov/portal/datasets/il/il2019/2019summary.odn
**”Extremely low income” is defined as the greater of 60% of the Section 8 very low income limit or the Department of Health
and Human Services poverty guideline.
Note: CDBG-funded programs serve people/households earning up to 80% of median.
FOR HOME-FUNDED PROGRAMS:
Fair Market Rents
Number of Bedrooms
Studio 1 2 3 4
$1,131 $1,234 $1,441 $2,084 $2,531
Effective October, 2019
Source: https://www.huduser.gov/portal/datasets/fmr.html
Note: Fair market rents (FMRs) serve as the monthly rent limits for tenant-based rental assistance funded by the City of
Vancouver. Rents include utilities. 2019 FMRs are based on a local rent survey for the Portland-Vancouver-Hillsboro MSA.
HOME Income Limits
Income Number in Household
Limit
1 2 3 4 5 6 7 8
Category
60% of
$36,960 $42,240 $47,520 $52,740 $57,000 $61,200 $65,400 $69,660
Median
30% of
$18,450 $21,100 $23,750 $26,350 $28,500 $30,600 $32,700 $34,800
Median
Effective June 28, 2019
Source: https://files.hudexchange.info/reports/published/HOME_IncomeLmts_State_WA_2019.pdf Note: Tenant-based rental assistance programs
(including associated housing services) and HOME-funded units must serve households earning up to 60% of median.
2020 CDBG/HOME Application Guidelines 15High and Low HOME Rent Limits
Number of Bedrooms
Studio 1 2 3 4 5 6
High
HOME $981 $1,053 $1,264 $1,452 $1,600 $1,747 $1,894
Rent
Low
HOME $770 $825 $990 $1,143 $1,275 $1,406 $1,538
Rent
Effective June 28, 2019
Source: https://files.hudexchange.info/reports/published/HOME_RentLimits_State_WA_2019.pdf
Note: Projects with one to four HOME-assisted units are required to have assisted unit rents not exceed the lesser of the Fair
Market Rent or High HOME Rent. Projects with five or more HOME-assisted units are required to have 20% of assisted unit rents
not exceed the Low HOME Rent and 80% not exceed the lesser of the Fair Market Rent or High HOME Rent. Rents include
utilities.
2020 CDBG/HOME Application Guidelines 16HOUSING DEVELOPMENT UNDERWRITING PARAMETERS
Underwriting criteria for project and operating budgets should be guided by the following criteria:
HOUSING PROJECT DEVELOPMENT BUDGETS
• Construction Contingency – Minimums: 10% New Construction, 15% Rehabilitation
• Soft Cost Contingency – Maximum: 5% All Development
• The “Developer Fee” limits below are based on an average project in development and
financing complexity. If the proposed Developer Fee for your project is higher than outlined,
please provide your rationale. Please note that the developer fee is defined as a percentage
of the total project. The “Developer Fee” does not include contract cost for project development
consultants.
Total Units in Project Percentage of Total Development Costs
1-20 12-17%
21-35 12-15%
36-60 10-15%
61 and above 10-12%
HOUSING OPERATING BUDGETS
Revenue
• Vacancy rate should not be less than 5%. Agency may request a lower amount via letter.
Operating Expenses
• Minimum inflation factor: 2%
• Replacement reserves (maintenance and repair)- a minimum of $300 per year per unit for new
construction; $350 per year per unit for rehabilitation
• Operating reserve – 6 to 9 months of costs
• Project management fee – 7 to 12%.
• Property tax reduction: affordable housing projects and projects owned by nonprofit agencies
are eligible for reduction and abatement of property taxes, your project should identify what
form of property tax adjustment you anticipate.
• Resident Services: Up to $300/year/unit affordable at 50% MFI or less
• Total operating expenses - 40% to 50% of gross revenue
• Debt Coverage Ratio (Net Operating Income ÷ Debt Service) – range 1.05 to 2.0
• City of Vancouver loan to value ratio - 50 percent or less
• Break-Even Point (gross income and other income ± operating expenses and debt service) ≤
90%.
2020 CDBG/HOME Application Guidelines 17CITY OF VANCOUVER PROPOSED 2019-2023 CONSOLIDATED
HOUSING AND COMMUNITY DEVELOPMENT PLAN GOALS
Visit the City’s CDBG Plans and Reports webpage for additional information about the Consolidated Plan.
Category Goal Example Activities Outcome Indicator
Affordable Increase and preserve • Develop and preserve multifamily affordable • Rental units constructed
Housing affordable housing opportunity housing • Housing units rehabilitated
for low-income households and • Create affordable homeownership • First-time homebuyer housing added
people experiencing opportunities • Homeless and at-risk households receiving
homelessness. • Fund rehabilitation of owner-occupied homes rental assistance
• Support alternative housing models
Public Services Reduce poverty, increase • Support service system that addresses needs • Persons assisted
stability, and prevent and of people who are homeless
address homelessness for • Promote public health and increase food
individuals and families. Where security
possible, support existing City • Provide job training and educational
and community initiatives. programs
• Offer financial counseling and legal aid to
reduce barriers
Economic Increase economic opportunity • Provide technical assistance and resources to • Businesses assisted
Development by supporting small businesses. current and prospective small business owners
Public Facilities Create and preserve buildings • Purchase, construct and improve community • Persons assisted
and Infrastructure and spaces that serve the public. centers, homeless shelters, nonprofit social
service offices, or other facilities serving local
residents
• Improve sidewalks, streets, parks, or other
public infrastructure to increase livability,
safety and accessibility
020 CDBG/HOME Application Packet 18PROJECT TIMELINE Template available in ZoomGrants under the ‘Documents’ tab
PROJECT TITLE
AGENCY NAME
Jul- Aug Sep Oct Nov Dec Jan- Feb Mar Apr May Jun July Aug Sep
ACTIVITIES
20 21
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
INSTRUCTIONS:
Fill in pertinent activities for the project or program such as planning, outreach, acquisition, design, bidding, construction, completion.
Please provide an explanation of any foreseeable problems in meeting your project timeline:
020 CDBG/HOME Application Packet 19PROJECT BUDGET FORM
Template available as Excel sheet in ZoomGrants under the ‘Documents’ tab; please upload in Excel format
Instructions for applicant: The below line items are listed as examples. Applicant may add/remove line items as needed. For
significant construction/rehab projects, applicant should substitute agency's detailed budget (sources and uses) form. For all
applicants, total funding sources MUST equal total costs.
CITY OF VANCOUVER PROJECT/PROGRAM BUDGET
AGENCY NAME:
PROJECT TITLE:
Funding Sources
Requested
City
Line Item Costs Total Cost Funding State/Local Federal Private Other
PERSONNEL COSTS
Salaries
Benefits
Travel, Training
Other (specify)
SUBTOTAL $0 $0 $0 $0 $0 $0
FACILITY/ADMIN COSTS
Rent/Lease
Utilities
Telephone/
Computer/IT
Insurance
Vehicles
Supplies
Other (specify)
SUBTOTAL $0 $0 $0 $0 $0 $0
PROFESSIONAL SERVICES COSTS
Consultant (specify)
Other (specify)
SUBTOTAL $0 $0 $0 $0 $0 $0
OTHER PROGRAM COSTS
Direct Client Rental
Assistance
Outreach
Other (specify)
SUBTOTAL $0 $0 $0 $0 $0 $0
ACQUISITION/CONSTRUCTION/REHAB COSTS - see note at top of page
Land/Building
Purchase
Closing Costs
Architect/Engineer
Legal
Permitting
2020 CDBG/HOME Application Packet 20Insurance
Construction Costs
Equipment
Other (specify)
SUBTOTAL $0 $0 $0 $0 $0 $0
PROJECT TOTALS $0 $0 $0 $0 $0 $0
TOTAL FUNDING SOURCES (REVENUES) MUST = TOTAL COSTS (EXPENDITURES)
2020 CDBG/HOME Application Packet 21EXAMPLE OPERATING PRO-FORMA Required for all Facility, Capital Improvement, and Housing Proposals; template available in ZoomGrants under
the ‘Documents’ tab (applicant may substitute agency’s own form)
Name of Agency: _________________________________ Project Name: __________________________________________
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15
Revenue
Income
Gross Potential Income
Effective Gross Income
Operating Expenses
Insurance
Utilities
Rent
Maintenance & Repairs
Replacement Reserve
Operating Reserve
Management
Total Operating Costs
Taxes
Net Operating Income
Debt Service ( __% on
$ for years)
CDBG Debt Service
( __% on $ for yrs)
Cash Flow Per Year
2020 CDBG/HOME Application Packet 22PRE-APPLICATION QUESTIONS
1. Select any of the following that describe your agency.
Private Non-profit 501(c) (3)
Private for Profit Organization
Public Organization
Community Housing Development Organization (CHDO)
Faith-based Organization
Other:_________________
2. Select any of the following activities that describe your request. If you are applying for both Housing Services and
Tenant-Based Rental Assistance for the same program, please combine the request into one application.
Homeless Services - Current program with new clients
Homeless Services - New program
Other Public Services - Current program with new clients
Other Public Services - New program
Housing Services for HOME funded projects (including TBRA)
Non-Profit Facility/Capital Improvement - Purchase/Acquisition
Non-Profit Facility/Capital Improvement - Construction
Non-Profit Facility/Capital Improvement - Rehabilitation
Rental Housing Construction/Rehabilitation
Homeowner Rehabilitation Assistance
First-time Homebuyer Assistance
Tenant Based Rental Assistance
CHDO Operating Dollars
Other:_________________
3. Estimate the number of unduplicated persons OR households that will benefit from this proposal according to the Area
Median Income (AMI) categories listed below. For homeless & other public services, economic development, and public
facilities, please count PERSONS. For housing construction/rehab, homeownership, and tenant based rental assistance
(incl. associated housing services), please count HOUSEHOLDS.
_____Persons: 0 - 30% AMI _____Households: 0 - 30% AMI
_____Persons: 31 - 60% AMI _____Households: 31 - 60% AMI
_____Persons: 61 - 80% AMI _____Households: 61% - 80% AMI
_____Persons: 80% AMI and higher _____Households: 80% AMI and higher
4. Describe the project for which you are requesting funds. Include specific information on what the dollars will be used
for, how your project fits into the community and what outcomes you expect.
5. Are you applying for or have you received funds from Clark County for this project? (YES/NO/OTHER) If YES, list
amount in Other. Non-Profit Facility/Capital Improvement Projects that serve people countywide must also apply for
funds through Clark County & project information must be provided at a Board of County Councilors meeting prior to
submittal of full City application.
6. Has this project or agency received CDBG/HOME funds in the past? If yes, provide year, type of funds received,
project name and status.
2020 CDBG/HOME Application Guidelines 237. Does your agency have the following documents approved by its Board of Directors?
Affirmative action plan
Commercial liability/general casualty insurance
Current financial audit
Financial policies
Grievance and complaint procedures for both employees and consumers
Procurement policies
Staff job descriptions
Workplace drug use policy
Written benefits policies
Written personnel/EEO policies
8. Is your agency currently involved in any pending legal or disciplinary actions? Has your agency filed for bankruptcy
in the past five years? If yes on either item, please explain.
9. Your agency must have an active System for Award Management (SAM) registration to receive CDBG or HOME
funds. Please enter your DUNS number and SAM CAGE code. Registration with the federal System for Award
Management (SAM) at www.sam.gov expires after one year; please update your registration if expired. Registration
requires a DUNS # (Data Universal Numbering System). There is no cost for either.
2020 CDBG/HOME Application Guidelines 24APPLICATION QUESTIONS
1. Describe the project/program for which you are requesting funds, including a description of the community you will
service, evidence of community need and how your approach will address that need. Describe your expected
outcomes and the activities your organization will take to achieve those outcomes. Please be specific regarding with
the CDBG/HOME funds be used for.
2. Describe the applicant organization including mission, number of years in business, and board structure. Also include
how the board and staff are engaged with and reflective of the community being served.
3. Estimate the number of unduplicated persons OR households that will benefit from this proposal according to the Area
Median Income (AMI) categories listed below. For homeless & other public services, economic development, and public
facilities, please count PERSONS. For housing construction/rehab, homeownership, and tenant based rental assistance
(incl. associated housing services), please count HOUSEHOLDS.
_____Persons: 0 - 30% AMI _____Households: 0 - 30% AMI
_____Persons: 31 - 60% AMI _____Households: 31 - 60% AMI
_____Persons: 61 - 80% AMI _____Households: 61% - 80% AMI
_____Persons: 80% AMI and higher _____Households: 80% AMI and higher
4. Using the number of persons OR households above, please estimate the unduplicated number who are homeless.
5. Explain how this proposal meets identified community needs and addresses the goals of the City of Vancouver 5-
year Consolidated Plan. Describe the community engagement that was used to form the proposed project. Refer to
the 'Application Guidelines' packet for a list of Consolidated Plan goals.
6. Describe any partner agencies/organizations involved and provide letters of collaboration that define roles and
responsibilities of each. Upload scanned letters in the ‘Documents’ tab of your proposal.
7. How does the proposed project/program support or complement existing services/facilities addressing the same or
similar need? What makes it unique?
8. How will your organization outreach to the people/community you serve? Describe any culturally specific outreach
strategies?
9. Explain if this is a new project, expansion, or continuation. Describe your organization's capacity and experience to
undertake and complete the proposed project/program within the established timeline and budget.
10. Describe your organization's fiscal management, including financial reporting, record keeping, accounting systems,
payment procedures, and audit requirements.
11. Has your organization borrowed money in the past 12-months? If yes, what was the purpose of borrowing, include
the terms and conditions of repayment?
12. Is there any financial restructuring anticipated by the organization to address situations such as financing shortfalls,
debt reconstruction, or working capital in the next year? If yes, please explain.
13. Describe your level of success using CDBG or HOME funds in the past, including the funded project’s anticipated
versus actual outcomes, timeliness of completion, and compliance with grant requirements. If you have not received
CDBG or HOME funds in the past, enter ‘Not Applicable’ in the answer box.
2020 CDBG/HOME Application Guidelines 2514. For Housing or Non-Profit Facility/Capital Improvement Project funding proposals only: Describe your efforts to
determine if the market supports this proposal. Provide any supporting documentation such as a market analysis or
feasibility study. Upload scanned documents under the ‘Documents’ tab. For all other proposal types enter ‘Not-
Applicable’ in the answer box.
15. For Housing proposals only: How will permanent housing affordability be maintained? For all other proposal types
enter ‘Not-Applicable’ in the answer box.
16. Has the project had a ‘Pre-application’ meeting with the City of Vancouver Community Development Department?
(YES/NO/NOT APPLICABLE/OTHER) If YES, provide date and Pre-Application reference number
17. Is the proposed project linked to a specific location? (YES/NO) If yes, please provide street address and/or
Assessor’s Parcel Number and current zoning designation. What is the site control status of this proposal? For example:
owned; no site control; under contract; include expiration dates if applicable. Upload any pertinent documentation under
the ‘Documents’ tab. Zoning information may be accessed via http://gis.clark.wa.gov/gishome/property/.
18. Does your application involve rehabilitation or acquisition of occupied housing, businesses, or facilities?
(YES/NO/NOT APPLICABLE) If yes, be prepared to provide a list of current residents/tenants and any applicable
relocation plans prior to receiving funding award.
Additional Questions
Finance Sources and Uses (narrative section):
• Describe plans to obtain any uncommitted funds for this specific project.
• Describe the impact on your project if awarded only half of your request. Explain how this project will move
forward if other uncommitted funds are not received.
• Describe your plans for financing this project on an ongoing basis, if applicable.
Project Timeline:
• Provide an explanation of any foreseeable problems in meeting your project timeline.
Submittal Package Contents
• Application questions
• Finance Sources and Uses tab
• Documents tab:
o Timeline (template provided in ZoomGrants)
o Project/program line-item budget (Excel template provided in ZoomGrants, please upload as an
Excel document)
o Agency budget
o Operating pro-forma – required when applying for a Housing, Non-Profit Facility, or Capital
Improvement Project
o Additional documents such as funding commitment letters or MOUs as needed
2020 CDBG/HOME Application Guidelines 26You can also read
