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VCDP Program Guide
2011-2012

The VCDP requires that all applications be submitted on-line.  No paper applications will be accepted. For a complete listing of this year's schedule, please refer to the Application Calendar. To assist applicants with their applications, we have created this Program Guide and Application Instructions for each application type: Implementation Grant, Planning Grant, Accessibility Modification, Scattered Site (Revolving Loan Fund) for the On-line Grants Management System. 

This Program Guide 1) provides information about the VCDP to help an applicant determine if the VCDP funds are appropriate for the project in need of funding and 2) gives an overview of the program requirements.  The Application Instructions provide further detail and information to assist an applicant to successfully complete the application.

Due to the critical and on-going need for the creation and retention of quality jobs and housing throughout Vermont, for the period of 2011-2012, the highest priority for Vermont Community Development Program (VCDP) funding will continue to be housing and economic development projects.

I. Introduction and First Steps

The VCDP is a division in the Department of Economic, Housing and Community Development within the Agency of Commerce and Community Development, and it operates the Community Development Block Grant Program of the U.S. Department of Housing and Urban Development (“HUD”).  The VCDP provides grant funds to municipalities throughout Vermont (with the exception of the City of Burlington, which deals directly with HUD) for housing, economic development and other community development projects to benefit primarily low-to-moderate income persons.  The VCDP is governed by the federal Housing and Community Development Act 42 U.S.C. § 5301et seq. (the “Federal Act”) and related regulations, and the Vermont Community Development Act, 10 V.S.A. chapter 29, subchapter 1 (the “State Act”). HUD requires Vermont to prepare a Consolidated Plan for Housing and Community Development to establish the state’s parameters and priorities for use of the federal funds by the VCDP.  This Program Guide along with the Application Instructions, provide information for the application process and instructions on the use of the application forms.

Any Vermont town, city (except Burlington), or incorporated village chartered to function as a general purpose unit of local government, or a consortium of such entities. However the majority of projects are a coordinated effort between the municipalities, community groups and local or state non-profit organizations.   (See 10 V.S.A. Chapter 29.)

Contact VCDP Staff

VCDP staff are available to talk with you about your project and to answer your questions about its fit with the Program, and applicants are highly encouraged to apply ONLY after discussing the project with VCDP staff.  Your chief contact will be the Community Development Specialist assigned to your geographic region of the state. Your CD Specialist can help you connect with other appropriate people from our Agency or other agencies and organizations that can provide you assistance with the development of your project. 

Often a visit by your CD Specialist to the site of your project is helpful for both you and the Specialist.  This is preferably done prior to the application deadline, but may also occur after the application has been submitted.

Meeting National & State Objectives

A key issue to discuss with VCDP staff is eligibility.  There are three National Objectives established under the Federal Act, and each project must meet one of them.  The National Objectives are Low-and-Moderate Income, Slums and Blight, and Urgent Need.

Serving Persons of Low- and Moderate-Income

Under this National Objective, the project must serve persons of low- and moderate-income, and the requirements vary depending on the nature of the project.  Job creation or retention projects are different than housing projects which are different than senior centers or day care facilities.  And the requirements vary even for different housing projects such as home rehabilitation and new construction.  The National Objective requirement, along with benefit, are important issues to understand clearly.  There is more information in this Guide, and you should discuss national objective and benefit with VCDP staff early in your project development if there are any questions.  For further information go to Section II below under National and State Objectives/Benefit.

Slums & Blight 

Under this National Objective, the project must eliminate a slum or a blighted condition on a spot or area basis.  However, only limited funds are available due to statutory requirements dictating the amount of funds that must meet the low- and moderate-income national objective, so be sure to contact VCDP staff to determine what funding is available.  For further information, go to the section below for Slums & Blight.

Urgent Need

Under this National Objective, the project must address a community’s urgent need.  This is a project that the VCDP determines is alleviating conditions that pose a serious and immediate threat to the health and welfare of the community, are recent in origin and cannot be addressed with funding from the community or other sources.  Again, only limited funds are available due to statutory requirements dictating the amount of funds that must meet the low- and moderate-income national objective, so be sure to contact VCDP staff to determine what funding is available.  For further information, go to the section below for Urgent Need.

Attend Workshops

VCDP will sponsor application workshops each year.  Each workshop is an all-day affair with a presentation by staff in the morning on over-all program and application requirements.  The afternoon session gives applicants an opportunity to meet with program and grants management staff to discuss project particulars and get advice as to how best the project can fit the Community Development Program.  This workshop will also highlight key points related to the on-line application process.

Attending the application workshop is not required, however, both new and experienced applicants have found it to be extremely useful.  We strongly recommend that the grant writer and a representative of the applicant community attend. To see dates of upcoming application workshops and to register click on the Application Workshop page.

In addition to the application workshop, VCDP staff are very willing to assist applicants and writers in understanding the on-line application system required to apply for VCDP funding, so do not hesitate to contact your CD Specialist if you need assistance.

While not required to notify the Agency  of the intent to apply for VCDP funds, applicants are strongly encouraged to use the VCDP Pre-Application Form as soon as the VCDP has been identified as a potential source of funds.  Advantages are that the Pre-Application Form is circulated to others at the Agency resulting in more comprehensive feedback and you will have earlier access to assistance from staff in making your application as competitive as possible. 

Organize An All Funders Meeting

For some projects, notably economic development and multi-unit housing projects, it is extremely valuable and important for a meeting to be arranged with representatives from all potential funding sources prior to the preparation of an application.  VCDP strongly encourages these meetings and will be happy to assist in coordinating them.  During these meetings issues such as timing, eligibility and project feasibility can be addressed.  Contact the CD Specialist for your region early in the process to discuss your project and make arrangements for an all players meeting.

Seek Assistance with Application Preparation

Many applicants, both municipal officials and project developers, find that they are too busy to actually complete the application forms themselves.  There are a number of non-profit agencies, including the regional planning commissions and regional development corporations that have assisted applicants. Here is VCDP's list of Community Development Consultants who have worked on applications in the past.

One of the most frequent items preventing an application from being considered as planned is the failure to comply with the application public hearing requirements.  The municipality's legislative body must hold at least one public hearing to provide the residents with an opportunity to understand and to comment on the application, and this meets the Federal Act requirement that the development of projects carried out, in whole or in part with VCDP funds, must involve extensive citizen participation, especially participation of citizen's of low- and/or moderate income.  The State Act requires a fifteen-day period between the publication of notice and the date of the hearing.  Failure to publish the Notice with all the required information or within the required waiting periods will prevent the Agency from accepting the application.  More detailed information can be found in this Guide under Citizens Information/Public Hearing.  

II. Program Overview

VCDP funds are able to assist communities with a wide range of projects, because the funds can be used for many types of expenditures.  The VCDP is a resource for housing, economic development, public facilities, public services, and planning.  Types of activities within these project areas include:

• Housing rehabilitation and acquisition, lead abatement, home ownership assistance
• Economic development loans to businesses
• Water, sewer, and other infrastructure serving economic development or housing
• Rehabilitation or acquisition of public facilities; senior, child care, assisted living, or homeless facilities
• Handicap accessibility modifications
• Planning
• Disaster assistance

While these funds do allow their use for many project types, the high demand for VCDP funds requires the state to establish priorities and requirements to maximize the benefit from the funds as there just are not enough funds to meet the needs of Vermont’s communities.  The VCDP website lists many projects that have been funded in the past, including those that have won recent awards.

The VCDP is a program that primarily serves income eligible beneficiaries, and this benefit requirement is one of the most important program mandates to understand and meet as you consider pursuing VCDP funds for a project.  The benefit requirement varies from project to project, so this is an important issue to fully understand by consulting with VCDP staff. 

Grant Types

The VCDP provides federal funding for eligible activities through the application types listed below.

Implementation Grant (IG) - Application Instructions

Provides funding for economic development, housing, public facilities, and public services, in support of economic development or housing that will result in direct benefit to persons of low- and moderate-income, will eliminate slums or blight, or will address a community’s urgent need.

Grant Range:  $50,000 minimum to $300,000 maximum or $1,000,000 maximum (see below)  

The $300,000 maximum is applicable ONLY to applications for community public facilities projects (i.e. community centers, senior centers, day care centers) and public service projects.  If you have any question on whether the project under consideration is subject to the $300,000 cap, be sure to obtain clarification from VCDP Staff.

NOTE:  A $1,000 fee is required to be submitted for some economic development applications. For further information, see section below under Evaluating Economic Development Projects and also Business Analysis Instructions.

Implementation Grant for Brownfield Activities in an IG:  If an applicant seeks VCDP funding to remediate and reuse a brownfield site(s), VCDP funds will only be available for sites where there is a clear commitment to the reoccupation and reuse of the subject property, and the project is not eligible or appropriate for the Brownfields Revolving Loan Fund or any other federal or state brownfield funds. Since the Brownfields Remediation Fund has been capitalized with U.S. Environmental Protection Agency and state funds, the VCDP does not have a dedicated Brownfield fund.  Since brownfields continue to be important to address, brownfield projects will be funded through the competitive process for Implementation Grants. For further information, see the VCDP Brownfields Summary.

MULTI-YEAR GRANTS: Implementation Grants may be funded over multiple years (minimum 3 years/maximum 4 years) in phases.  Each phase must meet benefit independently to achieve National and State Objectives.

NOTE: The regular IG application is used on the Online Grants Management System for a Multi-year Implementation Grant.

Grant Range:  $200,000 to $1,250,000 for all phases.  Since there is a $500,000 dollar cap on the amount that VCDP can forward fund, you must contact the CD Specialist for your region to be sure there are funds available for a multi-year application. 

HOME ACCESS GRANTS (HA):  Provides funds, on a first-come first-serve basis to make owner-occupied homes accessible for people with disabilities.  These funds will be used specifically for Home Access grants or deferred loans to eligible households. 

Grant Range:  $5,000 to $100,000. A 25% match of cash or cash-in-kind goods or services is required for all HA’s.

NOTE: The regular IG application is used on the Online Grants Management System for a Home Access Grant.

There are match requirements for some Implementation Grants: See match requirement details in threshold section below.

Scattered Site Grant (SS) - Application Instructions

Provides funds to the regional scattered site housing rehabilitation revolving loan fund programs and are a specific type of implementation gran and have their own application on the Online Grants Management System. 

Grant Range:  $50,000 minimum to $1,000,000 maximum (Due to the reduction in CDBG funds by Congress, the ability to receive the maximum award amount is unlikely.)

Planning Grant (PG) - Application Instructions

Provides funding for community development planning activities and/or pre-development activities in preparation for implementing a project in one or more of the program areas (housing, economic development, public facilities or public services).  Planning grant funds allow communities access to the technical expertise and professional resources needed to test ideas, propose strategies, develop plans, establish policies and procedures, and conduct organizational activities.  It is important to remember that the successful funding of a planning grant does NOT guarantee or imply that VCDP funding for the project at implementation will also be successful- the project must stand on its own merits and receiving VCDP planning dollars does not make the implementation proposal more competitive.

Grant Range:  $3,000 minimum to $30,000 maximum or $40,000 maximum.  A 25% match of cash or cash-in-kind goods or services is required for all PGs.  The maximum funding request for a single municipality PG application is $30,000 and for a required consortium PG application, it is $40,000.  For an explanation of a consortium, please see below.

NOTE: If a community has an open PG, it will bear on the competitiveness of an application for an additional PG.  Applicants will need to explain in the application their capacity to manage an additional PG and explain why the open PG is not completed and provide the timeline for completion.

Accessibility Modification Grant (AM) - Application Instructions

Provides funding, on a first-come, first-serve basis for projects that bring existing municipally-owned buildings that serve a municipal function and non-school-community libraries into compliance with the Americans with Disabilities Act (ADA).  Projects must be bid ready- all decisions must be made that would impact the bid documents. Construction of new stand alone buildings is not eligible for the AM program.

Grant Range:  $5,000 to $75,000. A 25% match of cash or cash-in-kind goods or services is required for all AM's.

Interim Financing Program (IFP)

Though not a grant, this program provides loans for up to 12 months to municipalities who apply on behalf of businesses or developers for VCDP-eligible projects.  The interest rate will be determined based on project needs and administration costs.  The IFP borrower must secure an unconditional and irrevocable Letter of Credit for the full amount of the loan, payable to the municipality and the VCDP.

Range:  up to a maximum of $1,000,000 per project; with no more than $1,500,000 on loan by the VCDP at any time.

Disaster Assistance (DA)

The Disaster Assistance Program provides  assistance to municipalities and their residents who are victims of damage caused by floods, earthquakes, or other disasters that have been declared a state of emergency by the Governor. VCDP funds cannot be used in lieu of other federal or state funds available to assist with disaster assistance.

The plan for distribution of funds among these grant types for FFY 2011, as established through the Consolidated Plan, is set out below:

Funding Decision Process

Implementation (IG) and Planning (PG) Grants

Grant applications are reviewed by VCDP staff and VCDP Board.  The VCDP Board is a nine-member citizen Board established by the State Act, and appointed by the Governor.  The CD Specialist assigned to your region will also produce an analysis of your grant application for review by the Board.  You will have an opportunity to respond to the staff analysis before the Board performs its final review, and in the case of an Implementation Grant, you will have an opportunity to present your proposal to the Board at its meeting.  Applicants for Planning Grants will not present their proposals to the Board.  Planning Grants are presented to the Board through a consent agenda, based on VCDP staff recommendations.  The Board will make funding recommendations to the Secretary of the Agency of Commerce and Community Development based on an evaluation of the project with respect to need, impact and feasibility.  The Secretary makes all final funding decisions.

Home Access Grants (HA)

Applications for Home Access projects must be in partnership with the Vermont Center for Independent Living. Applications must address Home Access needs not already addressed or funded by other organizations. Contact your Community Development Specialist before starting a Home Access application.

Accessibility Modification Grants (AM)

Applications are reviewed by VCDP staff and brought directly to the Agency Secretary for funding decisions.  The decision is based on an eligibility review and the balance of funds available.  AM grant applications do not go before the VCDP Board, because they are funded on a first-come first-serve basis out of $200,000 targeted for AM projects and do not compete against other grant types. Due to the reduction in CDBG funds by Congress, there may be factors that lead to the award being less than the amount requested.

Compliance Requirements To Consider Prior To Application Submission

Because of the requirements attached to federal dollars such as VCDP funds, there are some areas, particularly with Implementation and Accessibility Modification Grant applications, that should be considered well in advance of the application deadline in order to avoid serious difficulties with your project.  We strongly urge you to learn about the following areas prior to applying.

The Uniform Relocation Act

The federal Uniform Relocation Act (the “URA”) requires the VCDP and grantees to minimize the hardship on persons and to ensure the fair and equitable treatment of persons who are displaced as a result of federally-assisted projects designed for the benefit of the public as a whole. 

The URA is a very complicated federal statute, and if you answer yes to any of the following questions, you need to become knowledgeable in the requirements of the statute.

• Does the project involve or have the potential to involve the acquisition, rehabilitation, demolition or conversion of real property?
• Are there tenants or other occupants, including businesses that will be affected by the project?  If so, they must be notified of the proposed project in accordance with requirements of the federal Uniform Relocation Act.
• Do the tenants or other occupants need to be relocated, either permanently or  temporarily?
• Will there be a reduction of the number of housing units and/or bedrooms because of this project?  If so, you likely will need to develop and submit a 1:1 Replacement Plan for approval with the application. 

Please read through the federal regulations provided in Federal Regulations 24 CFR Part 42, Displacement, Relocation Assistance and Real Property Acquisition for definitions and the basic rules for compliance.  Please also contact your CD Specialist and review the HUD Handbook 1378. This handbook provides a guide for compliance with the URA. 

Environmental Review Process 

Normally the environmental review can be conducted after there is an award.  BUT if the project is on a schedule that mandates the expenditures of funds, either VCDP or Other Resources, prior to or immediately following an award, the environmental review should be conducted sooner.  Often it can be done in the time period prior to the Community Development Board meeting while VCDP staff is reviewing the application.

The National Environmental Policy Act of 1969, 42 U.S.C § 4321 et seq.  (“NEPA”), and related regulations, apply to all VCDP-funded projects.  An assessment is required to determine the entire project’s impact on the environment.  All activities involved in a project must be assessed; those funded with VCDP funds as well as those funded with other resources.

This assessment and the Department’s Environmental Release of Funds must be completed before any non-general administration project funds (excluding acquisition in certain situations) are obligated or expended.  For instance, this means that a construction contract(s) cannot be executed prior to completion of the environmental assessment and release, and that construction cannot be commenced prior to the release.  Only expenditures for administration, management and sometimes acquisition can be incurred prior to environmental release.

The assessment involves a review of the project under several laws, regulations and other authorities which become applicable to the project through NEPA.  The types of projects typically funded through the VCDP trigger a more in-depth response in certain areas which may require hiring a consultant, and may take more time to complete.  Specifically, Section 106 of the National Historic Preservation Act of 1966, as amended, 16 U.S.C. § 470 et seq. (“Section 106”), and related regulations, and the Floodplain Management Executive Order 11988, 42 FR 26951; May 25, 1977, may impact your project budget and readiness to go forward with your project.

(a)        Section 106 of the National Historic Preservation Act.  Under the environmental review process, an assessment must be made as to the impact the project will have on historic resources.  This assessment includes both architectural and archaeological historic resources.  To determine the applicability of Section 106, please review the following questions:

• Does the project involve any structure that is 50 years old or older?
• Will there be an activity that may cause any disturbance of the ground?
• Is your site eligible for or on the National Historic Register or located within an historic district?

If the answer to any of these questions is yes, please refer to Section 106 Review and Authorized Consultants for further guidance.  Specifically, refer to the sample memo for obtaining input from the Vermont Division for Historic Preservation (DHP).  It is important to submit all the information listed on the memo to ensure accurate input from the DHP, and allow for appropriate budgeting for the project.  The memo to the DHP and all accompanying documentation should be submitted at least 45 days prior to the application deadline.

NOTE:  hiring an authorized historic preservation consultant is a grant-eligible expenditure and should be included as a line item in your program management budget in the application.

(b)        Floodplain Management.   Under the environmental review process, an assessment must be made as to the impact the project may have to a designated floodplain.  Contact the relevant municipal clerk, regional planning commission, or the Vermont Department of Environmental Conservation (241-3770) to obtain a copy of the floodplain map covering your project area.  If the project is located within a designated floodplain, you will be required to demonstrate that there is no practicable alternative to the location of the project (See 24 CFR 55.10).

To demonstrate that there is no practicable alternative, an 8-step process must be completed prior to submission of an application to the VCDP for funding.  The process that must be followed involves an early public notification with a 15 calendar day comment period, evaluation of alternatives, identifying direct and indirect impacts to the floodplain, and an additional public notification of determination of “no practicable alternatives” with a 7 calendar day comment period.

For further information, and guidance with respect to the Environmental Review Process, please contact Ray Marzbani in our Grants Management Division (828-5226).

Fair Labor Standards and Davis Bacon Wage Rates 

Any housing project of more than seven units or any other construction project of more than $2,000, where federal funds are all or part of project funding, triggers the requirements of the Davis Bacon Act, the Copeland anti-Kickback Act, and the Contract Work Hours and Safety Standards Act.  These federal laws impose considerable record keeping obligations, and impose requirements on your contractors and subcontractors.  Please refer to Chapter 7 of the VCDP Grants Management Guide. To ensure that workers receive no less than the prevailing wage rate for similar work in each specific locality, the communities if awarded must secure the wage rates at the following website: www.gpo.gov/davisbacon (prior to publishing any Request for Bids (RFB).

For further information and guidance with respect to the Davis-Bacon Process, please contact Ray Marzbani in our Grants Management Division (828-5226).

Procurement Obligations 

With public funds come the obligations to follow and document a full and open- competitive process for the procurement of goods and services.  Applicants should not hire any entity prior to receiving an award, and if a compelling need to hire exists, be certain to contact Grants Management of the VCDP first for guidance. Otherwise, you may create a situation where the VCDP cannot consider funding the project.  Please refer to Chapter 6 of the VCDP Grants Management Guide for detailed guidance before you enter into any arrangements for the provision of goods or services for your project (e.g., architects, consultants, engineers, construction contractors). For instance, you must ensure and document that all prime contractors and subcontractors are not on the HUD debarment list by checking the following website: https://www.epls.gov/epls/search.do.

In addition, the Grantee or Administrator must verify and document that the prime contractor has been certified and registered with the Vermont Secretary of State’s Office by checking the following website: HTTP://www.sec.state.vt.us/seek/database.HTM#corporations.

III. Program Policies/Requirement

Applicant   

Consortium Guidelines

When more than one municipality applies for and receives a grant from the Vermont Community Development Program and the purpose of the grant is to provide infrastructure or other governmental service, the grant is treated as a single award to the municipalities, severally and collectively.  Each municipality is responsible for the entire grant.  However, to have several municipalities administer one grant can be unwieldy. Therefore, VCDP policies provide for a collaborative arrangement termed a “Consortium.”  Under this arrangement, one municipality serves as the “Lead” and serves as the agent for all of the other municipalities, which are considered “Joint Applicants”. The specifics of this arrangement are set out in a “Consortium Contract". Be aware that there are specific public hearing requirements for consortiums.

There are several possible arrangements for providing non-governmental services outside of a municipality’s jurisdiction:

One municipality provides services to a region or sub-region such as a community applying on behalf of an organization that wants to establish a county-wide program, such as HomeShare, in a county or wants to conduct an accessibility survey for all municipalities within a county wanting to participate.

A consortium provides services within their municipal limits such as two abutting municipalities working together on housing or an industrial park project that is on a parcel(s) of land located within both municipalities,

or

A consortium provides services to a region or sub-region. such as two or more municipalities in two different counties (other than NVDA’s three county region or FCIDC’s two county region) working together to establish a multiple county-wide program. Using the same examples as above, this could be a HomeShare Program or an accessibility survey for municipalities within several counties.

Prospective applicants must determine whether it makes sense for municipalities to act together to accomplish the project’s objectives.  VCDP staff can assist you in making this determination.  The number and membership of a consortium will depend on the proposed project and the relevant characteristics of the region.  The VCDP requires that:

(a) A consortium must be formed and must include all the municipalities being served where the proposed project is for a customary municipal service, such as a water or sewer line and is to serve more than one municipality; 

(b) A consortium of at least one municipality per region must be formed when more than one region is served by the proposed project.  For example, if a project proposed providing services to more than one region or a planning study covered more than one region, a consortium is required. An exception is if a community public facility such as a shelter for troubled teenagers or a parent/child center draws beneficiaries to it from more than one region; and

(c) No consortium would be required, though the applicants may choose to form one, when the proposed project will provide services directly to individuals in more than one municipality in one region, e.g., such as the HomeShare Vermont program.  In addition, an application by a community on behalf of an already established Non-profit Community Development Organization (NCDO) serving more than one region does not need to submit a consortium application if the project is simply a continuation of the NCDO’s work.

For purposes of the VCDP, the Agency has defined a “region” as either the service area of one of the Agency’s block grant partners (a regional planning commission and a regional development organization), or a county.  A “sub-region” is an area that is a portion of a block grant partner’s service area, or a portion of a county.   Regional programs must meet the consortium guidelines as described above.  In addition, it is important to demonstrate in the application that there is support within the region being served when a consortium is not required.  This can be in the form of monetary contributions, letters of support, etc.

Please note that because VCDP funds may be used within any community in the region without such community’s formal participation, the Program requires that each such community be provided a written explanation of any planned VCDP expenditure in the community along with at least thirty days to reject the use of the VCDP funds within the community.

Fair Housing 

As a condition to the disbursement of funds, a municipality must certify that it adheres to all federal and state laws related to the prevention of discrimination in the provision of housing benefits.  A municipality must certify that it affirmatively furthers fair housing.  These obligations reach beyond a given project, and apply to the official conduct of the municipality.  As a condition of VCDP funding, the municipal applicant will be required to attend an approved Fair Housing Training. A member of the legislative body, municipal CEO, municipal manager/administrator or a municipal designee responsible for housing issues within a municipality such as members of planning commissions, zoning boards of appeal, development review boards or local housing committees as approved by the legislative body will be required to attend an approved Fair Housing Training within one year of the Award Date.  The goal is to ensure the appropriate people are attending the trainings and sharing the information they receive with their municipal colleagues.

For further information, please see the Departments Fair Housing Training Policy.

Municipal Plan/Community Development Plan

In order to be eligible for the VCDP, a municipality must have in place a municipal plan adopted in accordance with 24 V.S.A. Chapter 117, Subchapter 5, “Municipal Development Plan” or an adopted community development plan. The plan must identify the municipality’s community development needs including housing and economic development as well as the needs of low and moderate-income persons and the activities to be undertaken to meet such needs.  A project must be consistent with the applicable plan.

Please note:  The adoption of a municipal plan in accordance with 24 V.S.A. Chapter 117 to meet this requirement is strongly encouraged and will strengthen the competitiveness of an application.

If adopting a community development plan to meet this requirement, please note the following:

• The legislative body of the municipality must hold at least one public hearing to present the plan and gather public input. (The hearing on the community development plan may occur at the same time as the one held for the VCDP application or it can be held separately.)
• The public hearing must be properly warned with a 15-day public notice period.
• A municipality’s Planning Commission, if one exists, must be directly noticed of the public hearing on the proposed community development plan.
• The public hearing must be held at least 5 days prior to submitting the VCDP application in order to provide an adequate period of time to consider comments gathered at the public hearing.

Be sure to obtain a copy of the tear sheet or page from the newspaper in which the Notice was published and include this, along with the minutes taken at the meeting, in the on-line application.

Keep in mind, if applying as a consortium application, each applicant of the consortium must have an adopted municipal plan or a community development plan.

Number of Applications per Board Meeting

Municipalities are allowed to submit one Implementation, one Planning, one Access Modification and one Scattered Site Grant for a Community Development Board meeting. Please note that due to the highly competitive nature of the VCDP, the likelihood of a municipality receiving funding for all four application types is very low. 

Grant Activities

Eligible Activity

Only those activities eligible under Section 105 of the Federal Act may be funded under this program. See link below for complete listing of eligible activities.

Due to the critical and on-going need for the creation and retention of quality jobs and housing throughout Vermont, for the period of 2011 -2012 , the highest priority for Vermont Community Development Program (VCDP) funding will be housing and economic development projects.

Ineligible Activity 

The activities listed below are ineligible under the Federal Act:

• Public facilities used for services provided for the general conduct of government (except for accessibility modification projects)
• Public education costs

For further information regarding activities please see VCDP Program Areas and Eligible Activities, Title I ‑ Housing and Community Development Act of 1974, as amended 42 U.S.C.  Sec. 5305 et seq. and Code of Federal Regulations 24 CFR 570.483.

Non-fundable Projects

Due to the limited funds available and the many types of projects that the federal law allows, the following project types will not be funded under the VCDP. Activities in these areas tend to be municipal government priorities, and so tend to have access to funding sources that VCDP-eligible projects are less likely to access:

• Fire
• Police
• Ambulance
• Emergency 911 Phone systems

National and State Objectives/Benefit

National Objective

Each project must result in benefits that address the National Objectives established under the Federal Act.  Below is more information related to the benefit required under the National Objectives.

Serving Persons of Low- and Moderate-Income  

If you propose to meet the National Objectives by serving persons of low- and moderate-income through job creation or retention or by providing housing, please bear in mind that you will be required to document that the project has achieved the proposed benefit within the grant period by demonstrating that at least 51% of the individuals served are persons of low- or moderate-income. 

There are some housing projects that require 100% of the beneficiaries served to be low- or moderate income.  You will need to be prepared to perform income surveys or other means of documenting the income level of households or families benefiting from your project.  “Limited Clientele” and “Area-Wide Benefit” are two concepts which may allow predetermination that proposed benefit will be met, and may simplify, to some extent, a grantee’s benefit documentation obligation.

Limited Clientele.  A project that serves a Limited Clientele is one in which direct benefit is provided to one or more groups of persons who have been documented or are presumed, under HUD regulations, to be of low- and/or moderate-income.

Activities which benefit all residents in an area, involve the acquisition, construction or rehabilitation of property for housing, or provide benefit through the creation or retention of jobs do not qualify as limited clientele activities.

Under Limited Clientele there are three ways to document benefit (serving persons of which at least 51% are low to moderate income):

1. Presumed Low/Moderate Income:  proposed beneficiaries are included in the list of categories of persons in 24 CFR Section 570.483 (b)(2).  These categories include the following:  abused children, battered spouses, elderly persons, severely disabled persons, homeless persons, illiterate adults, persons living with AIDS and migrant farm workers.  
2. Pre-qualified:  proposed beneficiaries are not included in the presumed list above but secondary data submitted by the applicant to VCDP clearly demonstrates that the intended beneficiaries are income eligible through their participation in some other income eligibility program such as Headstart, Medicaid, etc.
3. Completion of Income Surveys:  Proposed beneficiaries that do not qualify as presumed or pre-qualified, need to complete family or household income surveys.  Be sure to confirm with VCDP staff which income survey is applicable.

Area-Wide Benefit.   A project which will provide Area-Wide Benefit is one that will provide public services or public facilities to a target area which is demonstrated to have a population of at least 51% low- and/or moderate-income persons.  An area-wide benefit activity is an activity that is available to benefit all the residents of the target area.  Typical area-wide benefit activities include:  water-sewer lines and community or neighborhood facilities.  For further information, see the 2010 census data of all the municipalities that meet area wide criteria and see below for futher information on area-wide benefit.  

For further information on determination of benefit please see Title I ‑ Housing and Community Development Act of 1974, as amended 42 U.S.C.  Sec. 5305 et seq, Code of Federal Regulations 24 CFR 570.483 or contact your CD Specialist for guidance.

Slums & Blight 

Elimination of a slum or a blighted condition on a spot or area basis meets the Slums and Blight National Objective and is therefore a means to provide benefit under the Federal Act.  This means that the household or family income of the beneficiaries is not necessary for a Slums and Blight eligible project. If there are known beneficiaries for the project, the VCDP will require income surveys to confirm that the Low and Moderate Income National Objective cannot be met.  Since there are limited funds available due to statutory requirements dictating the amount of funds that must meet the Low- and Moderate- Income National Objective, be sure to contact your CD Specialist. For further Slums and Blight information refer to Criteria for Slums and Blight and the Code Federal Regulations 24 CFR 570.483.

Note: A project proposed under Slums and Blight must be more than remediation of the property or area.  There needs to be a feasible redevelopment plan but that plan is not eligible for VCDP funding under Slums and Blight.

Urgent Need

Addressing a community’s urgent need meets the Urgent Need National Objective and is therefore a means to provide benefit under the Federal Act.   This means that the household or family income of the beneficiaries is not necessary for an Urgent Need eligible project.  If there are known beneficiaries for the project, the VCDP will require income surveys to confirm that the Low and Moderate Income National Objective cannot be met.   To qualify under Urgent Need, the VCDP must conclude that the project will alleviate conditions that pose a serious and immediate threat to the health and welfare of the community, are recent in origin and cannot be addressed with funding from the community or other sources.  Since there are limited funds available due to statutory requirements dictating the amount of funds that must meet the Low- and Moderate-Income National Objective, be sure to contact your CD Specialist. For further information refer to the Code Federal Regulations 24 CFR 570.483.

State Objective

Each proposed VCDP activity must meet at least one state objective as set forth at 10 V.S.A. § 682(b)(2).  The state objective are:

• Housing - Conserve, expand, and improve housing.
• Employment - Create and retain employment.
• Public Facilities - Improve public facilities in support of housing or economic development activities, or where there is a threat to the public health and safety (including public services)

Documenting Benefit

If the project is meeting the National Objective of Serving Persons of Low and Moderate Income, it is important to understand the various ways to document benefit and which benefit determination methods can and cannot be utilized with different project types.

Area-Wide Benefit

Based on HUD's 2010 U.S. Income Data, some municipalities, in whole or in part, consist of a population that is predominately low and moderate income.  It is possible that areas of your community would, therefore qualify on an "area‑wide" basis.  To determine benefit to low and moderate income persons based on the area served by the activity, use:

• the municipal boundaries or boundaries of the service area;
• the income characteristics of households and unrelated individuals in the area.
  

Public Facility or Public Service Benefit

To determine benefit to low and moderate income persons from an activity involving a public facility or public service designed for use by predominantly low and moderate income persons, include documentation demonstrating that the predominant users are low and moderate income persons. Contact your CD Specialist for assistance.

Housing Benefit

To determine benefit to low and moderate income persons based on the incomes of the households directly benefiting from the activity, such as single family rehabilitation, where the activity involves the submission of an application or the completion of a personal record in the project, use:

• the size of each household receiving benefit; and
• the income of each such household.

To determine benefit to low and moderate income persons in multi‑family rehabilitation activity, use:

• the local definition of "affordable to low and moderate income household";
• the rent charged (or to be charged) after rehabilitation, for each dwelling unit in each structure rehabilitated; and
• the total number of dwelling units in each structure to be rehabilitated and the percent of units in each structure which will be occupied by low and moderate income households.

Economic Development Benefit

To determine benefit for job creation of  FTE (Full-time equivalent; based on a 40-hour work week) jobs to be filled by or made available to low and moderate income persons, use:

• the number of current FTE jobs
• the number of FTE jobs expected to be created
• nature of FTE jobs to be created, including pay range and benefits; whether jobs are for a full year or are seasonal
• type of FTE jobs to be created (number skilled, semi‑skilled, and for unskilled, any special education or experience required)
• timeline for new FTE job creation
• documentation of ability of business to create the FTE jobs
• any other evidence that will be used to show that a majority of FTE jobs will be filled by or made available to low and moderate income persons, such as: payrolls, documentation of hiring through Vermont Department of Labor or certification of wage scales.

To determine benefit based on FTE jobs to be retained, use:

• number of FTE jobs to be retained
• number of these jobs that are filled by low and moderate income persons
• documentation that jobs will be lost if the project were not funded; with breakdown of how many of these are now filled by low and moderate income persons.

Family Income Surveys must be completed by the existing employees and at least 51% must be income eligible.  Any employee not completing a survey will be treated as non-LMI.

Contact your CD Specialist for assistance. For documenting benefit, check HUD Income Guidelines for your community and copy and paste them with the VCDP Income Surveys. For further information refer to the Title I ‑ Housing and Community Development Act of 1974, as amended 42 U.S.C.  Sec. 5301 (c) and Code Federal Regulations 24 CFR 570.483.

Budget

Scope

Your project budget should include funds adequate to perform all activities required to achieve the proposed benefit that meets the National and State Objectives.

Sources 

The VCDP expects all applicants to vigorously explore all funding sources.  This includes all available grants, loans, conventional financing, local capital campaigns, income generated from previous VCDP or HUD-direct grants, and community tax dollars where appropriate.  These efforts will bear on the competitiveness of an application.  A revolving loan fund (RLF) controlled by an applicant must be considered as a funding source, and any decision not to access such funds for the project must be explained.  The RLF funds cannot sit idle or be held as an endowment or trust only to earn interest.

If a community has an in-active VCDP/HUD funded Revolving Loan Fund (RLF) as defined by Agency Procedures (see definition below), at least 20% of the RLF balance on hand must be committed to the project when applying for VCDP funds.  For Planning Grants only this requirement will be the lesser of 20% of the RLF balance or the 25% match required, whichever is less, up to $7,500. The required RLF funds may be provided in the form of a loan or a grant to the project.  

Definition of in-active: VCDP grant funds in an RLF where the average annual disbursement, excluding any amount expended for Administration & Management Costs, does not exceed 25% of the total balance over a 3 year period.

In addition, communities are expected to provide financial support in the way of donated general administrative or program management services, waiving or reducing connection or local permit fees, or other cash-in-kind contributions relevant to the project or explain why such support is not possible.   A community is generally not expected to go to its taxpayers for funds unless it is a municipally-owned community public facility or the project involves a vital building in its downtown or village center.

General Administration and Program Management 

The amount of federal funds used for general administration and program management of the grant must be “necessary and reasonable” for the proper and efficient performance and administration of the VCDP award.  In order to be charged to the VCDP grant, all general administration and program management costs must comply with OMB Circular A-87 and VCDP policies and procedures.

All administrative services and professional services contracts between Grantees and Program Administrators must comply with the VCDP “Sample Contract for Administrative and Professional Services” contained in the VCDP Grants Management Guide. Payment under such contracts may only be made for “necessary and reasonable” costs that are invoiced and supported by appropriate documentation that identifies the specific personnel, time worked for each project, and rate being charged.

General Administration.  These are costs relating to the overall management of the VCDP grant.  These activities would be common to any VCDP grant and include environmental review, financial management, progress reports, requisitions, procurement, and final program reports/closeout, among others.  The cost of performing General Administration is a good way for a community, with in-house capacity, to provide a cash-in-kind commitment, even if only a partial contribution, to demonstrate support for the project.  Any organization that cannot perform this responsibility as a cash-in-kind contribution should be certain to adequately budget this cost.  The details on the amount that can be budgeted are in the Application Instructions.

Please be aware that any unexpended General Administrative funds may not be used for other grant agreement budget line items, and must be returned to the Agency. 

Program Management.  Every project budget (other than those for planning grants) must include funds for management of the project.  VCDP funds or other funding sources may be used for what the VCDP refers to as “program management activities.” Program management expenses are directly related to accomplishing program tasks specific to the project being funded.  These activities would not be common in all VCDP funded project.  Typical program management activities include clerk of the works, compliance with Davis-Bacon requirements, permit compliance, engineering and architectural services, among others.

Partial Reimbursement of Application Costs 

If your municipality has not been reimbursed by the VCDP for application costs within the last five years, 50% of your application costs (not project development costs) may be reimbursable regardless of funding success.  In order to qualify, your application must pass the threshold review (see thresholds below) and be considered by the CD Board at its meeting.  To receive the reimbursement, you must submit an invoice detailing the necessary and reasonable costs of application preparation.  Allowable costs include fees charged by a grant writing consultant, public hearing costs, copying costs, postage, etc. 

Reimbursement will not be made until after the funding decisions are made and will be done through the general administration budget of a funded project.  Reimbursements for applications that are unsuccessful but will be resubmitting will be deferred until the funding decision on the resubmittal.  While the reimbursement amount can be in the project’s budget, the VCDP budget total may not exceed the funding cap established for the grant type.

Pre-Award Costs

Applicants who receive an award may be reimbursed through the Grant Agreement for pre-award costs such as the fees charged by professionals (architects, engineers, archeologists, lawyers, etc.) in the preparation of the applications.  Such costs will not be reimbursable to applicants who do not receive an award.  These costs must be clearly identified in the application, and are subject to Agency approval.

Program Income/Unrestricted Revenue

Program Income is income received by a VCDP grantee or subgrantee that is not a Target of Assistance, from activities supported by VCDP funds, including loan principal, loan interest, and funds resulting from the sale or lease of assets purchased with VCDP grant funds.  A Target of Assistance is a person or entity that uses VCDP funds to perform VCDP eligible activities where such activities provide the benefit that achieves the national objective required under the VCDP grant agreement.  Please contact VCDP Staff for further details.

Unrestricted Revenue is all gross income directly generated by the VCDP grant funds and received by a Subgrantee meeting the definition of a Non-Profit Community Development Organization (NCDO), including gross income resulting from second, third, etc. generation loans.  Unrestricted Revenue is also subject to assessment, unless it is used to establish a micro-enterprise or scattered site housing rehabilitation revolving loan fund program.

An applicant will be required to provide information on its Program Income and Unrestricted Revenue through the application process.

As stated above, inactive Revolving Loan Funds will be subject to providing funds to IG applications.

Communities or their designees who generate income from VCDP assisted-loans will be required to repay to the Agency no more than 50% of the original VCDP grant award over an appropriate period of time. When income is generated by an activity that is only partially assisted with VCDP funds, the income shall be prorated to reflect the percentage of the VCDP funds used. The exceptions of repayment to the Agency are micro-enterprise and scattered site housing rehabilitation revolving loan fund (RLF) programs. Repayments received by the Agency as Program Income will be added to the annual allocation available to municipalities through the VCDP funding cycles. Repayments received as Unrestricted Revenue will be used for economic development purposes and community emergencies not fundable under the VCDP. 

Real Estate Appraisals

Real estate appraisals are required when the project includes acquisition of real property in fee simple, a real estate lease where renewal options allow for extensions of 50 years or more, or permanent easements.  An appraisal will not be required where the owner is donating the property interest, or the property interest is determined to have a market value of less than $2,500 and the determination is documented and has been made by a person familiar with the local real estate market. The appraisal must be conducted on the property “as is”, and may not be affected by any enhanced or decreased value to the property which may result from VCDP funding.  Appraisals must be conducted within six (6) months of the execution of the Purchase and Sales Agreement or other document committing to a purchase.  Real estate appraisals must be conducted independently and impartially by a qualified appraiser, and must be supported by analysis of relevant market information.  This is not a threshold, but is required.  In other words, an application will be accepted without the completed appraisal, but a funding decision without one is unlikely.

VCDP funds as a Grant vs. a Loan

Economic Development Projects

Direct assistance to a for-profit entity must be in the form of a loan.  Loan terms will be reviewed and approved by the Agency on a case by case basis.  VCDP will allow more flexible loan terms to include loans from 0% to 2% and allow deferred loans if justified.  The negotiating parties are the business, the community, and VCDP. The loan must be adequately secured by the assets of the business (or other acceptable security). 

A grant in lieu of a loan to a non-profit entity must be approved by the Agency. A deferred loan option will also be evaluated by the Agency for non-profit entities.

Housing Projects

Direct assistance for a housing project will be structured in the form of a grant or loan based on the needs and circumstances of the project.  VCDP may request documentation, e.g., operating budget, pro-forma, etc, to justify a request for VCDP funds to be structured as a grant.  For a project structured as a loan, it may be deferred based on the needs of the project.  The terms and conditions for the loan are negotiated between the municipality, the borrower and the Agency.  They must be reasonable and appropriate for the project and comply with the Agency grant agreement.  VCDP funds must be adequately secured by the assets of the borrower.

Evaluating Economic Development and Housing Projects

Economic Development Projects

The FEDERAL ACT requires that the public benefit provided by an economic development activity -- jobs retained or created -- should be appropriate to the amount of CDBG assistance provided.  The Department will be contracting with a business/credit analyst to perform a business analysis for all economic development applications.  A $1,000 nonrefundable fee must accompany the VCDP application.  Checks should be made out to the State of Vermont.  This fee will be used towards the cost of the business analysis to be contracted by the Agency.  The cost of the business analysis will be charged to the applicant (the business may pay the fee) and payment is expected within 10 days of the invoice.  If a grant is awarded, the cost of the business analysis as well as the $1,000 fee will be an eligible grant expense.

Note: The VCDP will waive the required credit analysis for ED projects if the project is receiving funding from a bank, VEDA, USDA-RD or other participating lender and a acceptable credit analysis was completed or will be completed by that participating lender in a timely manner and the analysis is shared with VCDP staff.

Housing

For housing projects utilizing the bond (4%) or the allocated (9%) Low Income Housing Tax Credit through the Vermont Housing Finance Agency (VHFA), a market study meeting VHFA standards must be submitted with an application (threshold requirement).  All other housing projects should also submit a market study, but based on specific project circumstances, the VCDP will consider waiving this requirement for cause.

Housing projects seeking bond 4% or allocated 9% Low Income Housing Tax Credits through the Vermont Housing Finance Agency (VHFA) are more competitive if they have either received funding approval from VHFA before the Community Development Board considers the VCDP application or have been underwritten by VHFA staff in preparation of a VHFA Board meeting.

The Department reserves the option to contract with a credit analyst to perform a financial analysis of housing applications.  If this option is exercised, an upfront fee of $1,000 will be charged to the applicant to be used toward the cost of the analysis.  The entire cost of the credit analysis will be charged to the applicant and payment is expected within 10 days of the invoice.  If a grant is awarded, the cost of the credit analysis and $1,000 fee will be an eligible grant expense.

VCDP applicants submitting applications for housing projects meeting consolidated plan priorities beyond creation and/or rehabilitation of housing units are required to submit a breakdown of project costs in the following categories with their application:

• Acquisition costs
• Site development costs
• Developers fees
• Soft Costs including Architectural & Engineering
• Construction Costs
• Cost of Enhancement Options, if applicable
• Historic Preservation
• Handicapped Accessibility
• Blight elimination
• Hazardous Materials (including lead abatement)
• Special services
• Community Facilities within a project
• Other (contact your CD Specialist for clarification)

Applicants should also describe funding sources which may be tied to specific enhancement features (such as historic rehabilitation tax credits for the costs of historic preservation), as they will be considered an offset to the corresponding cost of the enhancement.  Applicants must complete the Housing Enhancement Options Cost Chart in the on-line application, which summarizes the enhancement item, its cost, the offsetting funding source and balance of cost remaining.  This cost information will be used to compare projects seeking funding as well as to compare to the cost of a newly constructed unit.  The VCDP Board will use the comparisons and justifications to help them guide their recommendations to the Secretary. 

IV. Thresholds

These criteria must be met in order for the application to be accepted for consideration.  They are “tickets for admission” to the competition for funds; they are not competitive criteria for selection. With the application being an on-line system, these thresholds must be met to allow the application to be submitted via the web, so be sure none have been overlooked.

Thresholds which apply to all applications

Application 

Effective July 2010, the Vermont Community Development Program (VCDP) made the program more responsive to the needs of applicants by dropping cycle deadlines and offering more Community Development Board meetings.  This approach will be assessed and taken into account for the following program year. During this 2011-2012 program year, the VCDP once again will not have set deadlines, and applications will continue to be accepted anytime, but there are changes. For the details seethe document titled "Guidance to Applying in 2011 to the VCDP".

The Municipal Official/Chief Executive Officer of the Municipality whom submits the application electronically is in essence signing and certifying the application. 

The first step in being able to submit an application is to create a User Account or if you have a User Account already, create the application on-line.  (See New User Account)

Completeness: Forms and Certifications

(a) Legislative Body Resolution. A VCDP grant can only be awarded to a municipality or municipalities.  Even if an organization or agency sponsors the project and prepares the application, final authority and responsibility rests with the applicant municipality(ies).  To be certain that the legislative body understands the obligations it will assume if the application is successful, the  appropriate Resolution for VCDP Grant Application Authority must be adopted by the applicant municipality(ies), signed by the legislative body(ies) and the originals mailed or uploaded in the On-line Grants Management System.

There are three resolutions but all three are never needed for one application.

1. Resolution for a Single Applicant.
2. Resolution for the Lead Applicant in a consortium.
3. Resolution for the Participating Applicants in a consortium.

(b) Certification of Income. Where a municipality has received grants in the past from the VCDP or from HUD, and these grants have produced Program Income or Unrestricted Revenue, the VCDP expects that this income will be considered as a funding source for the new project.  The VCDP expects the timely and thoughtful re-use of limited resources.          

The legislative bodies of all applicant municipalities must supply information on the Income/Revenue Generated from VCDP or HUD Funded Grants, and a Certification of Program Income/Unrestricted Revenue form is available as part of the On-line Grants Management System.

(c) Municipal Plan/Community Development Plan. As described above, the applicant (and all joint applicants in a consortium) must have a duly adopted and still current Municipal Plan under 24 V.S.A. Chapter 117, Subchapter 5 or a duly adopted Community Development Plan. See above for more detailed information.

(d) Corrective Action Plan for Brownfield projects. If a project includes a request for brownfield redevelopment activities, a Corrective Action Plan (CAP) must be submitted as part of the application, unless determined not applicable by the Agency. Be sure to obtain this determination prior to submitting the application.

Proper Warning. The municipality’s legislative body must hold at least one public hearing to provide residents with an opportunity to learn about the proposal and an opportunity to comment. The Federal Act requires that the development of projects carried out in whole or in part with VCDP funds, must involve citizen participation, especially low- and moderate-income citizen participation.
           
The public hearing must be held at least five days before the application is submitted to the Agency and the hearing notice must appear in a newspaper of general circulation in the area at least fifteen days prior to the date the hearing is held.

The Public Hearing Notice forms are included within the on-line application.  Please be sure to properly estimate the amount of VCDP funds you will be seeking.  The VCDP will require a new notice and hearing if the application amount is more than 10% higher than the warned amount.  Complete the information called for in the application and send this to the newspaper(s). The application instructions provide detailed information on how to complete the public hearing notice.   Be sure to allow for the time it may take to have it published.  Have the newspaper send a tear-sheet to verify the date of publication and to be submitted with the application.

It is vital that the notice show that the hearing is being warned by the applicant’s Legislative Body (of the lead applicant, in the case of a consortium).

Re-submittal of an application.  Applicants resubmitting an application for funding under this program should be aware of the following:

A new public hearing is not required unless 1) more than six months has lapsed between the date of the last public hearing and the application deadline for the cycle under which the application is being resubmitted, 2) the project is significantly different from what was previously proposed, and/or 3) the amount requested is more than 10% higher than the amount in the original notice.

If your application is unsuccessful and you want to reapply in a future cycle, please contact your CD Specialist.

Minutes of the Public Hearing.  A copy of the minutes kept at the hearing(s) must be submitted.   The minutes may be draft ones not yet formally adopted by the Legislative Body. The minutes should indicate the date, time, and place of the hearing, the list of attendees, a brief description of what was presented and of any discussion that took place.  If any written comments were received, this should be noted and copies submitted.  If comments were made objecting to the project, a response to the objections must be provided as part of the application. The minutes should be dated and signed by the recorder. The application instructions will guide you through the process of uploading/attaching this document(s) to your application.

Public Hearing process specifics for consortia.  Each applicant municipality must hold a public hearing to allow its citizens to learn about the proposed project, ask questions and express their views.  Consortium municipalities may hold their own hearing or combine meetings and notices with other consortium members, provided that doing so will comply with the spirit of the requirement and all citizens involved have adequate notice of the hearing and convenient access to its location.  All potential member municipalities should be included in the notices even if some are unsure if they will ultimately become members of the consortium. 

National and State Objectives

(a) National Objective.  As stated above, each proposed VCDP activity must meet a National Objective established by the Federal Act.  The national objective claimed must be fully supported and, in some cases, the Agency should pre-approve your approach for meeting the objective.   The National Objectives are:

• LMI - Provide a benefit primarily to persons with Low and Moderate Incomes.
• S&B – Eliminate a slum or blighted condition.
• Urgent Need – Meet a condition that recently became an urgent need.

(b) State Objective.  As stated above, each proposed VCDP activity must meet at least one state objective as set forth at 10 V.S.A. § 682(b)(2): 

• Housing - Conserve, expand, and improve housing.
• Employment - Create and retain employment.
• Public Facilities - Improve public facilities in support of housing or economic development activities, or where there is a threat to the public health and safety (including public services).

Thresholds which apply only to particular grants

Site Control 

Applications for any implementation grant where site control is necessary for the activity to be undertaken must include evidence of site control such as ownership (title), a purchase and sales agreement, a right-of-first-refusal, or an option to purchase.  Any purchase and sales agreement must be signed by all parties, must remain valid and may not contain conditions that will not be met during the application, award and grant agreement development process.

Applications for a planning grant where site control is necessary for the project to be undertaken must include acceptable documentation for site access to do the planning work and availability of the site to implement the results of the planning if found feasible.  This typically would be actual site control or a letter from the property owner that a) demonstrates support for the study’s scope of work, b) allows access for whatever work must be done on the property for the study, c) ensures that the property is available during the timeframe needed to complete the study so the project, if found feasible, can move to implementation, and d) provides a willingness to sell the land at the appraised value.  Contact your CD Specialist if you need clarification. 

Required Match

Provide a full description of how matching funds will be provided.  Give the name and address of the source and indicate whether it is a loan, grant, cash, cash-in-kind goods or services, etc.

(a) Economic Development Loans:  borrower must provide cash-equity of at least 10% of the total project cost.  This cannot be borrowed or otherwise encumbered money. Note:  The Agency may waive the 10% equity match required for a VCDP economic development project if justified.

(b) Accessibility Modification (AM):  The cash or cash-in-kind goods or services must be provided at a ratio of 1:1 of VCDP funds for all Accessibility Modification Grants (AM).  For Implementation Grants (IG) that include handicapped access activities, the 1:1 match is required only when (i) handicapped access activity makes up more than 50% of the project, and/or (ii) benefit is based solely on handicapped access.  The match must be applied to the handicapped access elements of the project.

(c) Slums & Blight:  Cash or cash-in-kind goods or services of at least 25% of the VCDP funds.  This match must directly fund remediation of the S&B condition.

(d) Municipally-Owned Facilities:  Municipalities must make a municipal contribution toward the cost of projects to construct or improve these facilities.  No match amount is prescribed, but the contribution will bear on the competitiveness of the application.

(e) Planning Grants:  Cash or cash-in-kind goods or services of a flat 25% of the VCDP funds.

(f) Home Access Grants: Cash or cash-in-kind goods or services of a flat 25% of the VCDP funds.

(g) If a community has an in-active VCDP/HUD funded Revolving Loan Fund (RLF) as defined by Agency Procedures, at least 20% of the RLF balance on hand must be committed to the project when applying for VCDP funds.

Other Funds First

(a) Municipal water and/or waste water projects: The VCDP will not fund a municipal water supply or waste water project without a clear demonstration that other funders of water supply and waste water projects are participating to the full extent possible.  It must also be clear that the community is fully participating.

Federal and State Sources. Provide documentation that the Vermont Agency of Natural Resources, USDA Rural Development, and U. S. Economic Development Administration have been contacted, as appropriate, regarding the potential for funding of the proposed project.  This documentation must include written responses of the particular agency’s determinations regarding eligibility for funding under the agency’s programs, and if eligible, what would be the level of support and why this level of support is appropriate to the project. Contact your CD Specialist for contact person for each source..

Local Bond Support.  Provide an analysis from a knowledgeable source — bond council, accountant, etc. — of the ability of the municipality(ies) involved with the proposed project to assume bonded debt as a way to provide local funding.

(b) Brownfield Projects: If a project includes a request for Brownfield redevelopment activities, the applicant must demonstrate that no other federal, state or regional funding source can fund the Brownfield activities, because VCDP funds may not be utilized in lieu of other sources dedicated to Brownfield remediation efforts. For more details, please see the VCDP Brownfields Summary.

Market Study

A full independent market study is required with the application.  For applications utilizing the bond (4%) or allocated (9%) Low Income Housing Tax Credits (LIHTC) the market study must meet Vermont Housing Finance Agency standards.  All other housing projects should submit a market study, however, this requirement may be waived by the VCDP for cause based on specific project circumstances.

For any project involving commercial property, contact your CD Specialist to determine if a market study will be required.

Consultant Analysis

(a) Economic Development Projects. The amount of VCDP funding assistance for jobs created or retained should not exceed $40,000 per job. Note: The VCDP will allow the cost per job to reach the federal maximum of $50,000 per job under certain circumstances, but if for any reason, this amount is exceeded, funds will have to be repaid to the Agency as a disallowed cost under HUD requirements.

Any project which proposes job creation or retention to provide direct benefit as a means of meeting one of the National Objectives must provide specific information from the business so the Agency can obtain an analysis of the business for the purpose of demonstrating the necessity and appropriateness of the VCDP public assistance and the feasibility of the proposed job creation or retention.  Please see Business Analysis Instructions for specific guidance and a listing of what needs to be submitted with the application.

HUD requires that all businesses being supported by a VCDP application must provide a Data Universal Number System (DUNS) number with the application.  A DUNS number can be received  by calling the dedicated toll-free DUNS number request line at (866)705-5711 or online at http://fedgov.dnb.com/webform/displayHomePage.do. The supported business should expect the following information to be requested:

• legal name
• name and address for the organization’s headquarters
• “doing business as” (DBA) or other name by which the organization is commonly known or recognized
• physical address, city, state, & zip code
• mailing address
• telephone number
• contact name & title
• number of employees

(b) Other Projects. The agency may require an analysis by a consultant for Housing projects as well as for Slums and Blight projects.

Public Service projects

Applicants must provide documentation that a public service proposal is a new or increased service above and beyond that which has been available in the applicant municipality(ies).

July 2011