AGENDA

PUBLIC HEARING

OCTOBER 22,1997

STATE HUD PROGRAMS ACTION PLANS

VI. REVIEW OF FY98 HOME PROGRAM PLAN

VIII. DISCUSSION OF CHANGES AND PROPOSALS

VIII. PRESENTATION OF SUMMARY INFORMATION AND RELEVANT TIMETABLES

10/97

STATE OF ALABAMA

PROPOSED CHANGES IN HUD ACTION PLAN PROGRAMS

1. Citizen Participation Plan

2. Addition of Policies which Support Other Changes

3. CDBG Fund Distribution

4. Notes on Distribution of Funds

of the ED Fund, clarifying the Recapture Fund, and estimating Program

5. Threshold Presentation

6. Special Fund Changes

9. Quality of Life Fund

10. Competitive Fund Changes

Presentation of changes to CDBG Competitive Funds to allow more points for match. Resolution will now be required on inkind match situations to comply with the bid law.

11. Recapture Fund Clarified

12. Emergency Shelter Grant Program Changes

13. HOPWA Program Changes

14. Presentation of FY98 HOME Program Action Plan

10/97

Citizen Participation Plan

State of Alabama

Consolidated Submission for Community Planning and Development Programs

Adoption of Citizen Participation Plan

In accordance with 24 CFR Part 91 91.115 (a), the State of Alabama herewith amends its existing Citizen Participation Plan adopted in accordance with Section 104 (a)(3) of the Housing and Community Development Act of 1974. Said amendment will become effective on December 12, 1997 upon compliance with all requirements of applicable laws.,

Comments on the Citizen Participation Plan and Amendments

Citizen Participation is strongly encouraged in the development of all elements of the Consolidated Plan, any substantial amendments to the Plan, and the Performance Reports. This shall be accomplished through public hearing in times and places accessible to low and moderate income residents and through the coordination of data and people from various agencies representative of affected citizens. All materials and meetings will be accessible to non-English speaking persons and minorities, as well as, upon request, persons of disabilities.

The Citizen Participation Plan, as well as any amendments to that plan, will be presented for review and comment in a statewide public hearing. Chief elected officials, citizens groups, and citizens will be notified by mail of the hearing. The hearing will also be advertised in major newspapers of general circulation. Upon request it will be provided in a format accessible to disabled persons.

Development of The Consolidated Plan and Plan Elements

The State will make available to citizens, public agencies, and other interested parties information that includes the amount of assistance the State expects to receive and the range of activities that may be undertaken. This shall include the estimated amount that will benefit persons of low and moderate income, as well as State plans to minimize displacement of persons and to assist any persons displaced. This will be accomplished through a statewide advertisement in the nonlegal section of one or more newspapers of general circulation. Notices will also be sent to chief elected officials of local governments, state agencies, and other interested parties.

The State will publish a summary of the proposed Plan in one or more newspapers of general circulation. It will also make copies of the proposed plan available at libraries, government offices and public places. The Summary will describe the contents and purpose of the Plan and will include a list of locations where copies of the entire proposed Plan may be examined. The State will also provide a reasonable number of free copies of the plan to citizens and groups that request it.

The State will conduct at least one public hearing on housing and community development needs before the proposed Plan is published for comment. The State will publish a notice of the hearing in the nonlegal section of one or more newspapers of general circulation two weeks prior to conducting the hearing. The Notice will include adequate information to permit citizen comments on housing and community development needs.

The hearing will be held at a public facility accessible to persons of low and moderate income, as well as persons of disabilities. Time will be determined based on previous attendance. Non English speaking persons will be asked to contact the State if an interpreter is needed. Should a significant number of requests result then an interpreter will be provided.

The will receive comments on the proposed Consolidated Plan for a period of 30 days. The state will consider any comments or views of citizens and units of general government received in writing or orally at the public hearing, in preparing the final Plan. A summary of these comments or views will be included in the final Plan. Reasons will be given for comments or views not accepted.

The State will make every effort to obtain viable citizen input when program amendments are made which substantially impact the program.. In such cases a public hearing will be held and Notices will be given through the nonlegal section of one or more newspapers of general circulation. Two weeks notice will be given for a public hearing and a 3O day comment period will be provided

summary will be attached to the final amendment.

Amendments not covered by the thresholds above may be made at the discretion of the State and notice will he given through normal programmatic communications to elected officials and other persons having an interest in HUD Action Plan programs.

Similarly, funds recaptured from current or prior program years will be directed to the Fund deemed appropriate by the State, and allocated according to the Action Plan criteria in effect at the time of the allocation.

Performance Reports

The State will provide citizens with an opportunity to comment on Performance Reports. A notice will be published in the nonlegal section of one or more newspapers of general circulation that the report is available for review and comment. A reasonable number of copies will provided to citizens upon request. Locations where copies can be reviewed will be stated. A fifteen day comment period will be provided. A summary of comments will be attached to the report.

Citizen Participation Requirements for Local Governments

The following will serve as the State's citizen participation requirements for units of general local government receiving CDBG funds from the State in accordance with 24 CFR 570.486.

The primary goal of a community's Citizen Participation Plan will be to provide all citizens of the community with an adequate opportunity to participate in an advisory role in the planning, implementation, and assessment of the community's Action Plan programs. The Plan shall set forth policies and procedures for citizen participation which are designed to maximize the opportunity for citizen participation in the community development process. Special emphasis will be placed on encouraging participation by persons of low and moderate incomes, residents of blighted neighborhoods, and residents of areas where community development funds are utilized.

Citizens will be encouraged to participate in all phases of the CDBG Program(s) and will be provided full access to program information. Local officials will make every effort to involve citizens in all phases of the development, implementation and assessment of community development programs including, but not limited to the following phases:

All phases of the community development process will be conducted by local officials in an open manner. Citizens of the community will be encouraged to participate at all levels and will be given access to program information during each phase of any CDBG program as outlined herein. Communities shall provide technical assistance to individual citizens and citizen groups, especially low and moderate income groups.

Citizen participation in the community development process will be conducted on a community wide basis and will actively involve the views and proposals of all citizens, especially low and moderate income persons and residents of areas where CDBG activities are proposed or ongoing. Public hearings will be held during all phases of the community development process to allow citizens to voice opinions and offer proposals concerning the development and performance of CDBG programs. All public hearings will be held at times and locations which will be accessible to all citizens, especially persons of low and moderate incomes and residents of blighted neighborhoods and CDBG project areas.

Public hearings will be scheduled for convenient times as determined by the local governing body. Public hearings may be held at any site which, in the opinion of the community provides adequate access for citizens to participate.

At least one hearing shall be held during any CDBG program fiscal year prior to the submission of an application to ADECA for CDBG assistance. The primary purposes of the hearing shall be to assess community needs and problems in an effort to determine the most critical needs to be addressed by the CDBG program and also to present, for public comment and review, the program activities which have been selected by the community to resolve the identified needs.

Citizens will be provided with information concerning the CDBG program at this hearing. Such information shall include, but not necessarily be limited to: the goals and objectives of the CDBG program; the total amount of CDBG funds available; the role of citizens in program planning, implementation, and assessment; the range of activities which may be undertaken the process to be followed in developing an application the application timetables; the application rating process; the schedule of meetings and hearings activities previously funded in the community through the CDBG program; and, an identification of projects which could result in the relocation of area residents or businesses, and the actions that would be undertaken if such relocation were necessary.

Communities will assure the opportunity for citizen participation during the implementation of any CDBG programs when changes to the project are under consideration by the community. Citizen participation shall be obtained and considered in any amendments to a CDBG program which involves changes in dollar amounts spent on any activity, changes in program beneficiaries, changes in the location of approved activities and major budget shifts between approved activities.

To ensure adequate opportunity for citizen participation during CDBG programs, the community shall hold a public hearing on all formal amendments which require ADECA approval. For local amendments (as defined by ADECA) and changes for which ADECA approval is not required, input from citizens concerning the changes may be received at regularly scheduled local governing body meetings where such changes or amendments are considered.

Citizens of communities will be provided with the opportunity to comment on the performance of local officials, the community's staff, consultants engineers and contractors and the actual use of CDBG funds during the implementation of CDBG program. Citizens will also be requested to assess the performance of the community in addressing identified community development and housing needs, and to assess the performance in achieving its goals and objectives in those areas. On going community assessment of the effectiveness of the process is considered essential to the success of the CDBG program.

At the conclusion of each CDBG project, a hearing will be held to review program activities and to assess program performance. This hearing shall be held prior to the submission of the PAR and any other required closeout documents to ADECA for a CDBG project. This required hearing will be used to ensure community wide participation in the evaluation of the CDBG program.

Other hearings may be held as deemed necessary by the community in order to inform citizens of community development projects and activities, and to solicit citizens opinion and comments. All additional hearings shall comply with the requirements set forth in this Plan.

Should a significant number of non-English speaking persons move into the community or participate in public hearings, local officials will undertake reasonable actions to facilitate their participation in the community development process. Such actions may include the provision of an interpreter when needed and provision of materials in the appropriate language or format.

The procedures outlined herein are designed to promote participation by low and moderate income citizens, as well as residents of blighted areas and CDBG project neighborhoods in any public hearing(s). Local officials may take additional steps to further promote participation by such groups, or to target program information to these persons should officials feel that such people may otherwise be excluded, or should additional action be deemed necessary. Activities to promote additional participation may include: posting of notices in blighted neighborhoods and in places frequented by low and moderate income persons, and holding public hearings in low and moderate income neighborhoods or areas of existing or proposed CDBG project activities.

The locations of all hearings as described herein shall be made accessible to the handicapped. Also, the community shall provide a sign language interpreter whenever the community is notified in advance that one or more deaf persons will be in attendance.

Citizens will be provided full access to CDBG program information during all phases of the project. Local officials of the community shall make a reasonable effort to assure that CDBG program information is available to all citizens, especially those of low and moderate incomes and those in project areas.

CDBG program information and materials concerning specific projects will be available and distributed to the public at regularly scheduled hearings. Materials to be made available shall include, but are not limited to: The Citizen Participation Plan; records of hearings, mailings and promotional materials, prior CDBG program applications; letters of approval; grant agreements-, the environmental review record; financial and procurement records; project design and construction specifications; performance and evaluation reports; other reports required by ADECA; proposed and approved CDBG applications for the current year or project; written comments or complaints received concerning the program, and written responses from the community; and, copies of the applicable federal and state rules, regulations, policies, requirements and procedures governing the CDBG program.

The public hearings scheduled, as described in the Plan are designed to facilitate public participation in all phases of the community development process. Citizens are encouraged to submit their views and proposals on all aspects of a community development program at the hearings. However, to ensure that citizens are given the opportunity to assess and comment on all aspects of the community development program on a continuous basis, citizens may at any time submit written comments or complaints to the community.

Any citizen or citizens group desiring to comment or object to any phase of the planning, development , or approval of the application for CDBG funds, or to the implementation of any CDBG program, should submit such comments or objections in writing to the chief elected official. Should, after a reasonable period, a party believe that his comment or complaint has not been properly addressed or considered by the elected official, then the aggrieved party may appeal their case to the local governing body.

Local officials shall make every effort to provide written responses to citizen proposals or complaints within fifteen working days of the receipt of such comments where practicable. Should the local governing body be unable to resolve an objection or complaint, it may be forwarded by the aggrieved party to ADECA.

Citizens may, at any time, contact ADECA and HUD directly to register comments, objections or complaints concerning the community's CDBG application and program. Citizens are encouraged, however, to attempt to resolve complaints at the local level as outlined above prior to contacting ADECA or HUD.

Records of all comments, objections and/or complaints by the citizens concerning the community's CDBG program and subsequent action taken in response to those comments shall be maintained on file at the local government's office and shall be made available for public inspection upon request.

The communities may, from time to time, modify the provisions of their Citizen Participation Plan. It shall be the policy of the community to periodically review and discuss the effectiveness of the Plan in allowing citizen participation in the community development process and in helping to meet the community development needs and goals identified by the citizens. To this end, the effectiveness of the Plan will be discussed at the public hearings held in conjunction with the community development program as discussed herein, and potential amendments to the Plan will be reviewed at this time.

Amendments to the Plan will be made as necessary. All amendments shall be approved by resolution of the local governing body and shall be incorporated into this Plan.

Availability to the Public

The Consolidated Plan, Citizen Participation Plan and substantial amendments will be made available to the public through copies provided at regularly scheduled public hearings throughout the process. Copies will also be provided in reasonable numbers to citizens and to associations representing citizens upon request. These materials will also be made available in a format accessible to persons with disabilities upon request.

Access to Records

Citizens, public agencies, and other interested parties may have access to public information, documents and records during regularly scheduled working hours of the agencies administering the affected programs.

1998

COMMUNITY DEVELOPMENT BLOCK GRANT

ACTION PLAN

ALABAMA DEPARTNIENT OF ECONOMIC AND COMMUNITY

AFFAIRS

10/97

STATE OF ALABAMA FY 1998 CONSOLIDATED PLAN

CDBG ACTION PLAN

The following program policies will govern the State of Alabama's CDBG program. It will be

program policy to:

1. Let applicants compete fairly for funds to address essential community facilities.

2. Let all communities compete equally for their varying community development needs provided

they first address, to the extent feasible, the serious problems associated with essential community facilities.

3. Insure that all communities in the State can compete for funds on an equitable competitive basis.

4. Allow for equitable competition by allowing, where feasible, small cities, large cities, and counties to compete in their respective categories.

5. Facilitate funding of a large number of applications by setting relatively low ceilings and by

6. Facilitate funding of important economic development projects in a timely manner by setting aside a certain portion of CDBG funds for economic development activities and by allowing for distribution of funds on a continual basis.

7. Encourage communities to plan for community conservation and development, and to set aside a small planning fund for those communities which demonstrate a need for community planning.

8. Give additional consideration to those communities who commit to do the most to help themselves, taking into account their level of resources.

9. Give consideration to the community s ability to maintain CDBG improvements.

10.Facilitate funding of economic development projects on a large scale through the 108 Loan Guarantee program.

11. Allow a vehicle through which units of local governments can address the needs of low and moderate income persons, particularly those who are trying to go from welfare to work.

12. Tailor project funding decisions, to the extent appropriate, to accomplish implementation of local and regional plans and strategies.

FY98 Proposed Fund Allocation Estimated Amount

Total Allocated to Alabama $33,450,000 (Estimate)

State Administration 770,000 ( 2% of total + $100,000)

State Technical Assistance 335,000 ( 1% of total)

County Fund 5,800,000 (18% of remainder)

Large City Fund 8,000,000 (25% of remainder)

Small City Fund 8,000,000 (25% of remainder)

Special Fund 3,200,000 (10% of remainder)

Economic Development Fund 5,000,000 (15% of remainder)

Planning Fund 350,000 ( 1% of remainder)

Quality of Life Fund 2.000.000 ( 6% of remainder)

NOTES:-

Methods Of Allocation

The State's Community Development Block Grant money will be allocated as shown on the preceding page and as described below. Except for the Economic Development, Planning, 108 Loan Guarantee, Special and Quality of life Funds, which may be applied for by all nonentitlement governments, funds will be divided into three allotments: Counties, Large Cities, and Small Cities. Any community competing for Economic Development, Planning, 108, and/or Special CDBG Fund(s) will not be excluded from competing for funding from the applicable Counties, Large Cities, Small Cities, or Quality of life Fund. The application submission dates for these funds will be announced during the CDBG workshops or through other appropriate widely distributed public notifications.

STATE ADMINISTRATIVE FUND

This fund is a reservation of money for effective management of the CDBG program by the State. These funds will be matched on a dollar for dollar basis with State funds, except for the $100,000 that by law does not have to be matched. Any uncommitted Administrative Funds may be reallocated to another fund.

STATE TECHNICAL ASSISTANCE FUND

This fund is a reservation of money for the provision of technical assistance to the communities of

Alabama desirous of participation in the State's block grant program.

COUNTY FUND

This fund is a reservation of money for county governments to be awarded on a competitive basis. Eligible applicants are all counties, except Jefferson County, which meet the eligibility requirements listed under Thresholds. Applications may be made for Single Purpose programs only.

LARGE CITY FUND

This fund is a reservation of money for the State's larger municipalities to be awarded on a competitive basis. Eligible applicants are all nonentitlement cities with a population of 3,000 or more which are not members of the Jefferson County consortium, and which meet eligibility requirements listed under Thresholds. Applications may be made for a Single Purpose or Comprehensive program.

SMALL CITY FUND

This fund is a reservation of money for the State's small cities and towns to be awarded on a competitive basis. Eligible applicants are all cities and towns with a population of under 3,000 which are not members of the Jefferson County consortium, and which meet eligibility requirements listed under Thresholds. Applications may be made for Single Purpose or Comprehensive programs.

ECONOMIC DEVELOPMENT FUND

This fund is a reservation of money to fund activities necessary for economic development projects. These funds will be allocated on a continual basis. Applications may be submitted anytime during the program year. Eligible applicants are all nonentitlement local governments which meet the eligibility requirements listed under thresholds. (Program income generated by the Economic Development Fund will be used to fund additional economic development activities. Eligible applicants are the same as for the Economic Development Fund.)

SECTION 108 LOAN GUARANTEES

This is an opportunity for communities to seek through the Secretary of HUD, loan guarantees for the purpose of financing economic development activities as permitted in Title I of the Housing and Community Development Act of 1974, as amended. The State will not obligate for guarantees more than $10,000,000 per project, nor more than the HUD established limit per year. In those instances where there is an exceptional economic impact, then a waiver on the ceiling may be granted.

PLANNING FUND

Planning funds will be allocated to those local governments who demonstrate the need for local planning. These funds will be available on a continual basis and eligible applicants are all nonentitlement local governments which meet the eligibility requirements listed under thresholds.

QUALITY OF LIFE FUND

This is a reservation of money for communities to address activities that enhance the quality of life in a manner beyond providing for the most basic and essential needs as has been generally done through the competitive funds. Eligibility applicants are those local governments which meet the eligibility requirements listed under thresholds.

STATE SPECIAL CDBG FUND

The Special Fund is a reservation of money to provide funding for eligible CDBG activities which are necessary to address situations that pose imminent threats to public health and safety for which there appear to be no local resources available. Eligible applicants are those local governments which meet the eligibility requirements listed under thresholds.

RECAPTURE FUND

This fund will consist of any funds returned to the State during the program year, accept program income as defined by applicable regulations. These funds will be used to assist eligible and fundable projects from any of the fund categories listed above. Money from the Recapture Fund will be awarded based on the criteria applicable to the Funds listed above. It is estimated that the State will receive $200, 000 for this Fund this year.

Grant Ceilings And Minimums

Figures shown below establish general ceilings and minimums on the amounts that may be requested. Consideration in the award of grants will be given to the size of the community requesting funds and to the requirements of the proposed project. An applicant must recognize that requesting the maximum grant amount allowable will not always be appropriate.

Planning Fund $50, 000 Ceiling for all communities

Special Fund $400,000 Ceiling and $75,000 minimum

Quality of life Fund $250, 000 Ceiling

108 Loan Guarantees $ 10,000,000 Ceiling

Single Purpose Program

Counties Large Cities Small Cities

Ceiling $500,000 $500,000 $500,000

Comprehensive Program

Counties Large Cities Small Cities

Ceiling -0- $600,000 $500,000

Economic Development

Minimum Maximum

ED Grant (Public Facilities) $35,000 $ 200,000

ED Loan -0- $250,000

ED Float Loans $1,000,000 $10,000,000

ED Incubator Grants -0- $250,000

(Float Loans may come from more than one year's funds with the amount from one year being less

than the minimum).

Thresholds

The following thresholds will apply to communities which wish to apply for FY98 funds.

1. Applications will not be accepted from applicants for a competitive grant (including a Quality of life funded Grant) who have (1) any open competitive grant, or (2) any other open grant funded from FY95 or earlier moneys which were funded in calendar year 1995 or earlier as of March 31, 1998.

2. Applications will not be accepted from applicants for any other category of funding who have

Acceptable closeout documents which require no changes must have been received by ADECA by March 31, 1998 for the grant to be considered closed out or closed out pending audit. The threshold may be waived for Economic Development Fund applications which appear to have special merit or Special Fund applications which appear to have particular urgency. (These thresholds do not apply to the 108 Loan Guarantee Program.)

3. Applicants will be permitted only one application for FY98 funds, except any request for Planning, Economic Development, or Special Fund money will not preclude an applicant from competing for other CDBG funds. Within the Special Fund only one application will be allowed per eligible jurisdiction, unless the second application is for an activity of an emergency nature that meets the CDBG national objective of meeting community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. Once a jurisdiction has submitted a Special Fund Application, it may not be withdrawn and replaced by another application.

4. An applicant will not be funded if it has an unresolved audit finding involving disallowed costs as the result of a determination made by a private audit, an ADECA financial review, or ADECA CDBG Staff monitoring.

5. An applicant will not be funded if it owes the State or Federal government money as the result of determinations made by a private audit, or as the result of determinations made by an ADECA financial review or ADECA CDBG Staff monitoring.

6. A proposed project must stand alone to serve the proposed beneficiaries without the need for additional funds that are not shown in the application, unless the other necessary funds are known of and verifiable by the State. (Any other funds shown in the application must be verifiable by the State.)

7. Applicants must demonstrate the ability to maintain any facilities funded under the CDBG

Program.

8. An applicant's regular program must benefit at least 51 percent low and moderate income persons, unless it is a housing rehabilitation program in which case the beneficiaries must be 100 percent low and moderate income.
9. Applications for the Planning Fund must present thorough evidence showing how their activity

will address one of the two national objectives applicable to planning grants.

APPLICATIONS FOR COUNTY, LARGE CITY AND SMALL CITY FUNDS

Competitive Process

Community Development Block Grant funds allocated to the County, Large City, Small City, and Quality of Life Funds will be distributed through a competitive process. The aim of the competitive process is to compare all applications in the same funding category to each other within the framework of criteria set up to judge the merits of community development activities. This entails assigning points based on how well an application addresses each rating criteria. To insure that the competitive process is fair and even handed, all applications must be submitted by a specific cut-off date and no changes may be made in an application after its submission to the State. The State may request clarification of the proposal that in no way affects the substance of the application.

Types of Grants

Two types of grants are available under the Small City and Large City Funds: Single Purpose and Comprehensive. Under the County Fund only Single Purpose grants are available. There will be no division of the Large City and Small City Funds between Single Purpose and Comprehensive programs. Instead, both Single Purpose and Comprehensive applications will compete for total funds available in the particular category. Applicable grant ceilings for Single Purpose and Comprehensive programs are listed under the Grant Ceilings section.

Single Purpose Grants

Single purpose grants are designed for communities to address and resolve a specific community development need. A program will consist of one primary activity and incidental activities if appropriate. The Program should address an essential community need(s) falling in one of the following areas and should be developed through assessment of the applicant's housing and community development needs-.

1. Housing.

2. Deficiencies in public facilities that affect the public health and safety.

Applications for the Quality of life Fund are fundamentally Single Purpose applications but will have a lower grant ceiling for all applicants, and will be rated by evaluating criteria more appropriate to those types of activities. These will he addressed in more detail in a section of the Action Plan devoted to Quality of life grants.

Comprehensive Grants

Comprehensive grants are designed for communities to address a substantial portion of the identified community development needs of a defined concentrated area. A comprehensive grant should involve two or more activities related to each other that will be carried out in a coordinated manner. The program may include activities in the area of housing, public facilities, and commercial development related to downtown and/or neighborhood redevelopment. The program must be developed through assessment of the applicant's housing and community development needs.

Criteria for Rating Single Purpose and Comprehensive Applications

All counties, large cities, and small cities will compete for funds from a respective category, i.e. County Fund, Large City Fund, and Small City Fund. Under the Small City and Large City jurisdictional categories, single purpose applications will be rated against other single purpose applications and comprehensive applications will be rated against other comprehensive program applications. All applications will be rated for a maximum score of 3O5 points and applications with relatively high scores will qualify for site visits, although all Comprehensive applications will receive site visits. The primary purpose of site visits will be to verify information provided in the applications. Applications will be funded in order of decreasing score until funds in a given category are exhausted. The criteria for rating single purpose and comprehensive applications will be as follows:

I. NEED FACTORS 80 80

A. Absolute # in Need 30 30

B. % in Need 50 50

II. PROGRAM VALUE FACTORS 185 200

A. Ratio of $/Beneficiary 60 60

B. Nature of benefits 125 140

III. OTHER PROGRAM FACTOR 40 25

A. Local/Private Funds 25 25

B. Benefit to LMI Persons 15 -0-

TOTAL POINTS POSSIBLE 305 305

Explanation of Rating Criteria

III. Other Program Factors

1. Local and/or Private Funds consist of local or private funds other than State and Federal grants that the applicant is proposing to use in the project. Such funds may consist of local cash match, inkind or force account match to include local labor (man-hours and equipment usage), private dollars, private loans, bond proceeds, State or Federal loans, and contributions of cash and voluntary work by profit or nonprofit organizations. Scoring will be based on the applicant's ratio of local and Private Funds versus the CDBG dollars as indicated in the scales below. (In the case of a private dollar match the applicant must submit a resolution verifying that the applicant will make up any shortfall in private funds pledged as "Local and/or Private Funds." Such resolution must specifically describe the nature of public improvements to be made in support of the CDBG activity that will be made if the private money does not materialize.) In the case of inkind or force account match, the applicant is required to submit a resolution pledging cash match in those instances where adhering to the bid law results in a contractor's bid being lower than inkind or force account costs. Local and/or private fund points will be counted at full amount regardless of whether or not they are cash, in-kind or private for Large City and County Fund applications. Local and/or private fund points will be awarded on Small City applications in the following manner:

**Cash-counted at full amount**In-kind (man hours, equipment, wage, etc.) - counted at 1/2 amount of comparable sum of cash

**Private homeowner injection (housing rehabilitation only) - counted at 1/2 amount of comparable sum of cash

Large Cities and Counties Small Cities

Local Funds as a local Funds as a

Percent of CDBG Percent of CDBG

Funds Requested Points Funds Requested Points

5% 3 1% 1

10 5 2 2

15 7 3 3

20 8 4 4

25 10 5 5

30 12 6 6

35 14 7 7

40 16 8 8

45 18 9 9

50 20 10 10

75 25 11 11

12 12

13 13

14 14

1. 15
2. 16

17 17

18 18

19 19

20 20

30 25

B. Benefit to Low and Moderate Income Persons. The applicant will be awarded points based on the percent of low and moderate income persons served by the project. The scale shown below will be used to award points:

Percent of Beneficiaries

Low and Moderate Points

60-65% 3

66-70% 6

71-75% 9

76-80% 12

81-100% 15

APPLICATIONS FOR THE QUALITY OF LIFE FUND

communities consider important, but which have had a hard time competing with the basic water and sewer projects which usually have competed more successfully for CDBG Competitive funds.

The Quality of life Fund is a competitive fund in which applications will be submitted at the same time as applications for the regular competitive funds. Applicants will choose to apply either for a regular Competitive grant or for a Quality of life grant. Counties, Large Cities, and Small Cities will compete for money from this Fund and money will be reserved to assure that all categories of applicants receive an equitable share of the Fund Applications will be evaluated in a manner that appropriately compares applicants from the same category with each other. Grant Ceilings will be $250, 000.

The Fund will be used to address activities that enhance the quality of life in a manner beyond providing for the most basic and essential needs. Examples of expected activities are senior centers, recreational facilities, neighborhood centers, and community centers. Examples might also include fire protection activities such as increased line sizes, hydrants, and fire trucks.

The following rating factors and points will be used to evaluate applications for the Quality of Life Fund Applicants must choose to apply for this Fund or for their appropriate regular Competitive Fund. An applicant may not apply for both the Quality of Life Fund and a regular Competitive Fund.

TOTAL 100 Points

10%= 5 Points

20%=10 Points

30%=15 Points

50%=20 Points

APPLICATIONS FOR THE STATE SPECIAL CDBG FUND

The purpose of the State Special CDBG Fund is to allow the State the flexibility to fund important projects without requiring them to go through the competitive rating system. (The Fund can be used for different purposes including, but not limited to, providing funding for eligible CDBG activities which are necessary to address critical situations resulting from threats to health and safety, and disasters or other urgent or extraordinary needs.) The eligible applicants for the Special CDBG Fund are all non-entitlement local governments who meet applicable thresholds. Applications for the Fund will be accepted anytime during the program year and grant announcements may be made anytime during the program year at the discretion of the State. However, no eligible jurisdiction may submit more than one application for the FY98 Special Fund unless the second application is of an emergency nature as provided for under the national CDBG objective of meeting community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. Any application proposing water or sewer service is required to hook up all interested residential parties in the project area.

*3.Previous grants received (When another project merits appear similar consideration maybe given to applicants who have received fewer Special Fund grants in recent years.)

The staff evaluation will be used generally to guide selection of projects although the Director may vary from the evaluations when a particularly strong need is perceived. Such choices by the Director must be based on the same criteria described in this section.

The grant ceiling for the Special Fund is $400,000. This could be waived on a project funded in response to a natural disaster. The minimum Special Fund grant that may be applied for is $75,000, but this minimum grant amount may be waived if the grant is funded based on meeting the national CDBG objective of meeting community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health and welfare of the community.

The Special Fund will require a cash or inkind match of local funds equal to or exceeding 20 percent of the CDBG request. These local funds must be spent on project specific activities such as paving for the cost of water lines or installing water lines in the project area. This amount may be reduced to 10 percent for projects where the applicant's 1990 population, as determined by the Census Bureau, was 1,000 or less and the 1989 per capita income, as estimated by the Census Bureau, was $11,500 or less. Where the applicant's population was 1,000 or less and the per capita income was $8,000 or less, no match will be required. Also in the case of Special Fund grants which are based on providing relief for victims of disasters such as tornadoes, no match will be required.

APPLICATIONS FOR THE PLANNING FUND

The purpose of the Planning Fund is to assist communities having a need for comprehensive or other planning. Eligible plans include comprehensive plans, elements of comprehensive plans, downtown revitalization plans, or other strategies and studies important to sound and effective community growth and development. The ceiling for these grants will be $50, 000 with a provision for a waiver although applications requesting smaller amounts will be viewed more favorably unless a very substantial need or opportunity is demonstrated, A cash match of 2O percent of the project cost will be required Applications will be considered on a continual basis. The grant awards will be made based on the following considerations-

* 1.How the applicant's proposed CDBG planning project will contribute to principally benefiting low and moderate income persons.

*2.How the applicant's proposed CDBG planning project will contribute to aiding in the prevention of slums and blight.

*3.Needandurgencyofplanningactivitiesproposed. (The State reserves the right not to a fund project if need or urgency is not clearly demonstrated and if amount requested is not appropriate for the plan or the size of the planning area involved.)

*4.How the applicant's proposed CDBG planning project will contribute to the development of a planning process which will serve as a guide or ongoing process leading to orderly and/or consistent growth and community development.

*5.How the applicant's proposed CDBG planning will aid in, or contribute to the involvement or creation of various community groups, advisory councils, planning/zoning districts, redevelopment authorities etc., in the ongoing planning process.

*6.Amount of funds requested relative to the size of the community, and complexity of the proposed elements and final product. (This consideration will be particularly important where larger grant requests are involved)

*7.Prior year grants received as well as implementation of prior planning efforts.

APPLICATIONS FOR THE ECONOMIC DEVELOPMENT FUND

The purpose of the Economic Development Fund (ED Fund) is to allow the State to fund activities necessary to take advantage of economic development opportunities. In addition to FY98 money allocated for the ED Fund, approximately $1.5 million is expected in program income from earlier loans that will be available for funding of ED projects out of a revolving loan fund. Also the CDBG Float Loan will be covered in this section on Applications for Economic Development, since Float Loans will be used only for economic development. However, it should be understood that fiends used for short term grants or float loans will come from all categories of grants.

The ED projects will be funded under four distinct categories which are:

2. ED Loans.

The eligible ED projects will be generally funded in the order they come, regardless of which particular category they fall under. However, the State, at some point during the program year, may reserve funds for a particular category or discontinue funding projects under a particular category to assure balance among projects in different categories and/or to ensure that funds will be available for other important projects.

Eligible applicants for ED grants, loans, and float loans are all nonentitlement local governments, provided other applicable thresholds are met. The applicable grant ceilings and minimums for ED projects will be as follows:

Minimum Maximum

ED Grant (Public Infrastructure) $35,000 S 200,000

ED Loan -O- S 250,000

ED Float Loans $1 million$10 million

ED Incubator Grants -0- $ 250,000

*Float loans may come from more than one year's funds.

The rules and requirements which will govern ED grants, loans, and float loans are spelled out

under respective headings in the following paragraphs.

ED Grants - Public Infrastructure

Eligible applicants may apply for ED grants to provide facilities and infrastructure such as water lines, sewer lines, rail spurs, docks, cranes, access roads, etc. to facilitate creation of jobs by a new or expanding business. The eligible applicants may also apply for grants to assist a public, private, nonprofit, or such other entity including a business in support of an economic development project that will result in the creation of jobs, especially jobs for unemployed, under employed and recipients of welfare assistance. The State will exercise maximum flexibility and maximum controls in considering activities that will have direct and significant impact on the creation of jobs, and in support of welfare reform. The assistance to public, private or any such entity may be in the form of a grant, loan or deferred payment loan and may pay for activities eligible under the CDBG Program including day care and related facilities, transportation and operations. A grant ceiling of $200, 000 and a floor of $35, 000 will apply. Applications may be submitted anytime during the program period and applications will be funded on an "as needed" basis. The State will maintain the right to deny funding of any application during the program period depending on the quality of the project or the results of past projects. The State may waive the $200,000 grant ceiling if the merit of the project shows a significant long-term economic benefit for the State.

***Threshold requirements for the ED grants are listed below. These thresholds are in addition

to overall thresholds listed earlier in the Action Plan.

* *2. The applicant must have a commitment from the business to create jobs as described in the

**3.The project must generally fall in the SIC Code 20 through 39, or consist of major warehousing or distribution centers, or such other activities having a prospect of significant economic impact.

**4.At least 51 percent of the project beneficiaries must be persons of low and moderate income.

**5.The project must include a local match of at least 20 percent of the requested ED grant. This amount may be reduced to 10 percent for projects where the applicant's 1990 population, as determined by the Census Bureau, was 1,000 or less and the 1989 per capita income as estimated by the Census Bureau was $1 1,500 or less. Where the applicant's population was 1,000 or less and the per capita income was $8,000 or less, no match will be required. **6.The proposed project must not involve intrastate relocation of a business, except when such relocation may have been necessitated due to inadequacies associated with the existing location and a move to a new location will result in a greater number of jobs.

**7.Grants from the CDBG ED fund for infrastructure will not be made in cases where

Evaluation Criteria

Applications for ED grants will be considered on a continuous basis throughout the program period. Such applications will be reviewed for conformance with the thresholds and the funding decision will be based on the following factors:

* 1. Importance of the proposed infrastructure improvements to the location or expansion of a business.

*2. Number and certainty of proposed jobs.

*3. Proposed local match.

*4. Scope of a new business or expanding business, i.e., products, product markets, current or projected employment and payroll, labor skills required.

*5. Urgency of proposed activities.

*6. Importance of the project to further welfare reform objectives.

Economic Development Loans

Eligible applicants may apply for ED funds anytime during the program period to make loans to private businesses for locating or expanding in the community and creating or retaining jobs for low and moderate income persons. ED loans can be used for purchasing land, buildings and equipment, site improvements, construction or renovation of buildings, operating capital, or any other CDBG eligible activity. A reasonable percentage of the amount applied for on an ED loan project may be a grant to cover administrative costs.

The state may either perform an in-house review and underwriting of the loan request or provide for the review to be performed by an independent state approved underwriter. Similarly, the state may either perform loan closings in-house or allow the loan closings to be performed by the regional planning- commission/council. If the loan request review is performed by an independent underwriter, the state approval may take into account such other factors as may be necessary to preserve the program's integrity and effectiveness. Loans made from the CDBG Revolving Loan Fund will be governed by the same requirements as loans from the CDBG ED Fund.

ED funds used by communities to make loans to private businesses will have a payback requirement. The determination as to the local government's disposition of the proceeds of repayment of loans will generally be made at the time an ED loan is funded. As required by Section 1040) of the Housing and Community Development Act, the State will, as part of all application reviews, recognize the applicant's right to retain program income to the extent such income is applied to continue the activity from which such income was derived. The repayments may be allowed to be made to the regional commissions/councils to be used for similar purposes if they are determined to be nonprofit organizations serving the development needs of the communities in nonentitlement areas.

A grant ceiling of $250,000 will apply to applications requesting ED loans. The state will maintain the fight to deny funding of any application or activity during the program period depending on the quality or appropriateness of the proposed project, or the capacity of the community to undertake such a project. Threshold requirements for the ED loans are listed as follows and are in addition to overall thresholds listed earlier in the Action Plan.

* * 1.The proposed activities, generally, must be associated with an economic development project

* *2.The proposed project must not involve intrastate relocation of a business, except when such

relocation may have been necessitated due to inadequacies associated with the existing

location and a move to a new location will result in a greater number of jobs.

* *3.The applicant must have a commitment from the business to create or retain jobs.

**4.Beneficiaries of ED fund projects must be at least 51 percent low and moderate income

persons.

Evaluation Criteria

Applications for ED loans will be considered on a continuous basis. Each application will be reviewed for conformance with the thresholds and other regulatory requirements. So long as funds are available, worthy projects will be funded on a first-come, first-served basis. In the event there are more worthy projects than there are funds available, the state shall select for funding those projects which appear to have the greatest long term benefit to the state. The following factors will be considered in making funding decisions:

* I.CDBG dollars per permanent job.

*2.Leverage ratio (private dollars as compared to CDBG dollars).

*3.The actual number of permanent jobs to be created or retained.

*4.Unemployment in the applicant locality. *5.Potential for spin-off benefits.

*6.Job diversification.

ED Float Loans

ED Float Loans are short-term loans which will be made out of appropriated, but unexpended, CDBG program funds that may have been allocated to specific program activities. The purpose of ED Float Loans is to allow the State to fund activities necessary to take advantage of economic development opportunities which will principally benefit low and moderate income persons. Funds used for short term grants or float loans will come from all categories of grants. As loans are repaid the repayment of principal will be used to restore all funds from which the monies initially came, while the interest will generally be used to increase the State's CDBG Economic Development Fund. (As indicated above under the Section on ED Loans, the State will recognize the local government's right to retain program income when such income is to be applied to continue the activity from which the income was derived.)

The amount of funds available for the "float loan program" will be determined by careful monitoring of the fund flow needs of the CDBG program. Because the State recognizes that the "float loan" program entails some risk, each request will be analyzed on the basis of the need of grants previously funded. Float loans will be made only after it has been determined, to the maximum extent possible, that the amount and term of any float loan will not commit the state's letter of credit balance to the degree that other previously funded grants are delayed or jeopardized.

Eligible applicants for ED float loans are all nonentitlement local governments which meet eligibility thresholds listed earlier. The approvals and funding announcements will be made by the State and the Float Loan program will be governed by the following requirements:

Program Objective

A primary objective of the float loan program is to expand economic opportunities, principally for persons of low and moderate income. Normally, the program will be used only to aid in the creation of new jobs and on projects where there is likely to be a substantial economic development impact. In exceptional circumstances the float loan program may be used to help retain jobs. Of the jobs to be created (or retained), at least 51 percent must be occupied by or made available to low and moderate income persons. If float loans are made in order to retain jobs, the applicant must clearly demonstrate that, without CDBG assistance, the jobs would be lost.

Eligible Activities

The float loans can be used to finance any necessary activity including acquisition, site preparation, new construction, renovation, purchase of machinery and equipment, working capital, refinancing, and other CDBG eligible activities approved by the State.

Loan Amounts and Terms

The minimum loan amount shall be $1 million and the maximum loan amount shall be $10 million. The maximum and minimum loan amounts may be waived by the State when significant long-term economic benefits for low and moderate income persons are involved. The loan term will normally be for one year. This term may be extended with State approval, based upon a complete financial assessment to document that it is necessary and appropriate to extend the term of the loan. This assessment will be completed prior to the end of the loan term and there will be no more than one extension.

Loans will be sized and priced according to the need for CDBG assistance as determined by the financial analysis of each project to identify the financing gap, an appropriate rate of return, and relevant locational cost differentials. Interest earned on float loans will be treated as program income and will be used for CDBG eligible activities.

Evaluation Criteria

Applications for ED float loans will be considered on a continuous basis. However, due to the unique nature of this program, the State intends to fund only a limited number of float loan projects. Prior to accepting any application, the State will require a thorough review of the project with the State.

Float Loan funding decisions will be based on the following factors:

* 1. Conformance with the national objective.

*2.Loan security (Loan security shall be in the form of an irrevocable letter of credit or such other

security acceptable to the State).

*3.Number of jobs involved.

*4.Private investment.

*5.Unemployment/community distress.

*6.Job diversification.

*7.Indirect/spin-off benefits.

Any interest earned on program income will be allocated to the Economic Development Fund.

ED Incubator Projects

The State will provide assistance to eligible communities from the ED Fund to support incubator

projects- For the purposes of the State program an "Incubator" is .....

of local government for the primary purpose of aiding fledgling businesses in their efforts to survive and grow during the first 3 to 5 years of existence. Such aid may come in the form of subsidized floor space, equipment, professional services or other assistance viewed as appropriate by the State. "

Eligible applicants may apply for ED Incubator grants anytime during the program period. A grant ceiling of $250,000 will apply. The State will maintain the right to deny funding of any incubator project depending on the quality and/or certainty of the proposal.

Thresholds

Threshold requirements listed earlier in the Action Plan will apply to all incubator projects.

Evaluation Criteria

Factors to be considered in evaluating the worthiness of "Incubator" proposals will be as follows:

*1.Criteria or system to be set up by "Incubator" program to assure that 51 percent of the beneficiaries of the program are low and moderate income persons.

*2.Desirability of Incubator site.

*3.Evidence of local Support.

c. Other.

*4.Feasibility of Program.

SECTION 108 LOAN GUARANTEES

The purpose of Section 108 Loan Guarantees is to provide communities with an opportunity to seek loan guarantees to finance economic development activities as permitted in Title I of the Housing and Community Development Act of 1974, as amended. Loan guarantees must be approved by the Secretary of HUD. The applicable ceiling is $10,000,000 per project with no more than the HUD established limit to be committed annually.

Eligible applicants are all nonentitlement communities who meet the thresholds listed earlier in the Action Plan as well as those thresholds listed below.

**2. The proposed project must not involve intrastate relocation of a business, except when such relocation may have been necessitated due to inadequacies associated with the existing location and a move to a new location will result in a greater number of jobs.

**4. Beneficiaries of section 108 Loan Guarantee projects must be at least 51 percent low and

Evaluation Criteria

Applications for Section 108 Loan Guarantees will be considered on a continuous basis, since opportunities for economic development may arise at any time- Loans will be evaluated in accordance with 24 CFR Part 570 (11/06/91), the Section 108 Final Rule, along with consideration being given to:

* 1. Section 108 dollars per permanent job;

*2. Actual number of' jobs to be created or retained;

*3. Potential for spin-off benefits.

Any payback of 108 loans that may be required will be made first from CDBG Program Income that is dedicated to Economic Development.

Eligible Activities

Eligible activities under the State CDBG program are all activities listed as eligible under the

Housing and Community Development Act of 1974, as amended.

Estimated Funds For Activities Benefiting Low And Moderate Income Persons

The Housing and Community Development Act requires that the State furnish its citizens with "the estimated amount (of funds) proposed to be used for activities that will benefit persons of low and moderate income." The State estimates that at least 80 percent of its FY98 CDBG funds will be used for activities that primarily benefit low and moderate income persons. The remaining funds are anticipated to be used for the prevention or elimination of slums and blight (such as the Planning Fund grants), and to assist communities with imminent threats to public health and safety when no other financial resources are available.

Alabama's Plan For Minimizing Displacement Resulting From Use Of CDBG Funds (Interim Plan)

The Housing and Community Development Act requires that the State furnish citizens with its .,plans for minimizing displacement of persons as a result of activities assisted with such funds and to assist persons actually displaced."

Emergency Shelter Grant Program Amendment-FY94

The following addition is being made as an amendment to the FY94 Emergency Shelter Grant

Program.

ESG funds returned to ADECA will be reallocated according to the following criteria:

Performance of applicant on prior grants-Prompt expenditure of funds without questioned or disallowed costs would be viewed favorably and would be expected of recipients desiring reallocated funds. Presentation of information indicating exceptional performance would be reviewed at the State's option.

Availability of other resources-The State would look at the availability of other resources for the homeless in a jurisdiction or service area, such as CDBG Entitlement funds, as well as other competitive HUD funds for the homeless and other available forms of assistance.

Emergency Shelter Grant Program Amendment-FY95

The following addition is being made as an amendment to the FY95 Emergency Shelter Grant

Program.

ESG funds returned to ADECA will be reallocated according to the following criteria:

Performance of applicant on prior grants-Prompt expenditure of funds without questioned or disallowed costs would be viewed favorably and would be expected of recipients desiring reallocated funds. Presentation of information indicating exceptional performance would be reviewed at the State's option.

Availability of other resources-The State would look at the availability of other resources for the homeless in a jurisdiction or service area, such as CDBG Entitlement funds, as well as other competitive HUD funds for the homeless and other available forms of assistance.

Emergency Shelter Grant Program Amendment-FY96

The following addition is being made as an amendment to the FY96 Emergency Shelter Grant

Program.

ESG funds returned to ADECA will be reallocated according to the following criteria:

Performance of applicant on prior grants-Prompt expenditure of funds without questioned or disallowed costs would be viewed favorably and would be expected of recipients desiring reallocated funds. Presentation of information indicating exceptional performance would be reviewed at the State's option.

Availability of other resources-The State would look at the availability of other resources for the homeless in a jurisdiction or service area, such as CDBG Entitlement funds, as well as other competitive HUD funds for the homeless and other available forms of assistance.

Emergency Shelter Grant Program Amendment-FY97

The following addition is being made as an amendment to the FY97 Emergency Shelter Grant

Program.

ESG funds returned to ADECA will be reallocated according to the following criteria:

Performance of applicant on prior grants-Prompt expenditure of funds without questioned or disallowed costs would be viewed favorably and would be expected of recipients desiring reallocated funds. Presentation of informa6on indicating excep6onal performance would be reviewed at the State's option.

Availability of other resources The State would look at the availability of other resources for the homeless in a jurisdiction or service area, such as CDBG En6tlement funds, as well as other compe6tive HTJD funds for the homeless and other available forms of assistance.

FY98 Action Plan

Emergency Shelter Grant Program

Distribution of Funds

The Emergency Shelter Grant Fund is administered by the Alabama Department of economic and Community Affairs and will be utilized to provide assistance to homeless persons as defined under the Stewart B. McKinney Homeless Assistance act, as amended. The State expects to receive approximately $1,000,000 in FY98 and will allocate funds based on the quality of applications from local governments.

The deadline for applications to the State will be widely disseminated and applications will be received on the same date and in the same format from all applicants regardless of whether they have received funds before. The State will provide more detailed application forms and information to persons and agencies who indicate an interest in applying for these funds. No activity will have funds set aside specifically for that purpose. Funds will be awarded competitively based on the following factors:

RATING FACTORS POINTS AVAILABLE

A. Demonstrated Need of Homeless Persons 20

Applicants will describe the needs of homeless persons

and other eligible clientele. They should use quantifiable

data to the maximum extent possible. However, given the

nature of obtaining certain data, narrative accounts and

reasonable estimates will be given credence as warranted.

B. Applicant's Approach to Problem 40

Applicants should explain the reasons for their approach

to addressing homeless problems. They should

describe their system for monitoring and analyzing

homeless needs, and they should explain their strategy

for targeting funds to the neediest persons, or to the

areas where it may have the greatest impact.

C. Timely and Effective Expenditure 10

Currents recipients should the impact and expenditure

rates for current grants. Applicants who have not

received funds before should describe the system they

will use to assure the timely and effective expenditure of

ESG money. They should also describe the system

they will use to assure accountability.

D. Establishment of Continuum of Care 10

The application should demonstrate thorough understanding of the continuum of care concept and explain what has been done to establish such a system in their community. New applicants should explain what steps they will take to establish a continuum of care.

E. Other Factors 20

Up to 10 points may be awarded to prior grantees who spent funds in an especially timely manner without program exceptions, or who did not receive ESG funds in the past fiscal year. Generally the maximum of 10 points could be awarded if the applicant has spent 75% of the prior year's grant funds within 10 months of grant award, or if the applicant did not receive a grant the prior year and has demonstrated exceptional homeless needs in its jurisdiction or service area. Up to 10 points may also be awarded to applicants whose applications have less money budgeted for activities which have overall grant caps such as homeless prevention and essential services.

Grant Ceilings

In order to attempt to assure that needs are met throughout the State, the Program will use the Grant Ceilings listed below. In addition the State reserves the right to reduce grants (in a rational and systematic manner) if necessary to assure that funds are distributed in a manner commensurate with needs around the State.

In the event that all funds are not awarded through the one time competitive application process, the State will negotiate with applicants to utilize all current year funds as well as recaptured funds that are available to be reallocated by the State. Initiation of negotiations will be done by the State based on (1) demonstrated need, (2) prior performance, and (3) other available resources. Reallocations of recaptured ESG funds will be at the direction of the ADECA Director based on the three factors above.

Eligible Activities

ESG funds may be used for the following activities allowed under the Nickinney Homeless

Assistance Act.

Conversion-A change in the use of a building to an emergency shelter for the homeless, where the cost of conversion and any rehabilitation costs exceed 75 percent of the value of the building after conversion. (IFESG funds are used for conversion, the facility must be used as shelter for the homeless for at least a ten year period.)

Rehabilitation-Repair of a building for use as a homeless shelter including the cost of labor, materials, tools, and other costs of improving the buildings other than minor routine repairs.

Operating Costs-These include the cost of maintenance, operation, rent, security, fuel, equipment, insurance, utilities, food, and furnishings although no more than ten percent of the amount may be spent on staff salaries.

Essential Services-Provisions to homeless persons of essential services concerned with employment, health, drug abuse counseling or prevention, education, child care, transportation, job placement/job training as well as aid in acquiring other federal, state, and local assistance. (No more than 30% of the State grant may be used for this purpose.)

Homeless Prevention-Activities designed to prevent homelessness such as the use of short term subsidies on rent and utility bills to families who have received eviction or utility termination notices. (No more than 30% of the State grant may be used for this purpose.)

Administration-Activities necessary to administer grant in compliance with program objectives

and re rations.

HOPWA Amendments

The HOPWA Program is proposing amendments to the FY95-97 Programs as shown on the

following pages.

HOPWA 1995 Entitlement – ADECA AGREEMENT NO. HOPWA 95-001

HUD Grant # AL095-F018

The Current funding categories are as follows:

This represents the following requested category transfers:

1. Transfers $40,000 out of Rental Assistance

3. Transfers $10,000 into Resource Identification

This transfer is requested to offset expenses incurred and not projected at the time of the original request. There had not been a history of operating as many units as are currently available and therefore no way to predict the actual expenditures necessary to operating existing units dedicated to low-income persons living with HIV.

Further, the resource identification costs originally projected did not include a statewide needs assessment which was completed and required additional funding. A needs assessment had been completed in the late fall of 199@ and repeated in the spring of 1996.

This change represents moving less than 5% of these grant funds.

For information, please contact;

Randall Russell LGSW

AIDS Task Force of Alabama

P.O. Box 55703

Birmingham, AL 35255

205-781-6443 or 1-800-592-2437

HOPWA 1996 Entitlement -ADECA AGREEMENT NO. HOPWA 96-001

HUD Grant # AL 09H96-FO22

The Current funding categories are as follows:

This represents the following requested category transfers:

5) Transfer $100, 000 into Supportive Services

Housing Information Services have been reduced given an efficient system of networking with low-income persons in need of housing through the Community Based Organizations across the state of Alabama. Only

$30,000 are needed in this category and not $60,000. As with the Transfer of 1995 funds, the operating costs are higher than projected at the time the original budget was submitted

The Birmingham area has identified $100,000 additional funding in rental assistance which is restricted for

Birmingham. Therefore, $100,000 of rental assistance can be utilized for supportive services of other programs around the state outside of Birmingham. The resource identification category again reflects work necessary to perform needs assessments that aid ATFA in targeting the use of funds.

This change represents moving less than 16% of these grant funds.

For information, please contact.

Randall Russell, LGSW

AIDS Task Force of Alabama

P.O. Box 55703

Birmingham, AL 35255

205-781-6448 or 1-800-592-2437

HOPWA 1997 Entitlement - ADECA AGREEMENT NO. HOPWA 97-001

This represents the following requested category transfers:

4) Transfer $97,600 into operating costs

6. Transfer $1O,000 into Housing Information Servicess
7. Transfer $10,000 out of Resource Identification

The 1996 HOPWA Formula Grant has just began to be expended. Based on a recent change allowing the state’s community based organizations to spend HOPWA dollars on supportive services and based on more actual histories of rental assistance expenditures, these transfers allow ATFA to provide the same existing services and accommodate the changes requested by the Community Based groups into the 1997 year.

This change represents moving less 17% of these grant funds.

For information, please contact:

Randall Russell, LGSW

AIDS Task Force of Alabama

P.O. Box 55703

B@2ham, AL 35255

205-731-6448 or 1-800-592-2437

FY98 HOPWA ACTION PLAN

The AIDS Task Force of Alabama (ATFA) will use the FY 98 Housing Opportunities for Person with AIIDS (HOPWA) funds to accomplish the following tasks:

Alabama has the following housing programs geared toward persons living with HIV. These programs are:

1. AGAPE House in Birmingham: (HUD 811 project operated by ATFA);

services by Mobile AIDS Support Services);

4. Next Step Housing in Birmingham: (Scattered site housing program for 80 persons to be

operated by ATFA).

ATFA continues to gather data regarding housing needs for persons living with AIDS (not yet accounting for those living with IHV and not diagnosed with AIDS) in Alabama. At present we project a need for permanent housing of 440 units. The need for traditional housing is 250 units at any given time. The first year of HOPWA funding began in September, 1994. ATFA has completed a statewide HIV/AIDS housing needs assessment and the preliminary data is attached to this report. To date, ATFA has assisted over 800 unique households in all 67 counties with over 2,500 rental and utility payments to prevent homelessness of those living with HIV. Additionally, ATFA serves as the State's AIDS housing developer, a provider of technical assistance, and operates scattered site housing throughout the Birmingham area.

A narrative description of proposed activities is given below and a Program Budget follows that.

State-wide rental assistance program

Users access this program by completing a day long training program and then referring potential rental assistance beneficiaries to ATFA using a set of application forms. These forms are sent to ATFA via facsimile, approved within 43 hours and rental checks are sent to landlords' Emergency rent is paid up to 21 weeks out of any 52 week period and long term rental assistance is paid up to 24 months.

Support Existing Housing Programs in the State

Support will include supportive services such as psychotherapy, transportation, case management medical services, operating costs, and repairs and maintenance on the housing properties as per HOPWA and HUD guidelines.

Support Ongoing Housing Information Efforts in the state

ATFA will use funds for continued housing information efforts which provide knowledge about suitable housing opportunities across the state. These funds will assist various AIIDS service organizations in promoting the availability of housing assistance statewide.

Support Operating Costs of Existing Housing

ATFA will use funds to operate existing housing serving persons who are HIV positive.

Supportive Services

Funds will be spent on supportive services necessary to assist persons who are HIV positive.

Resource Identification

Resource identification efforts will also continue to be carried on during FY98.

Technical Assistance

Technical assistance efforts to assist eligible program beneficiaries will also be carried out in

FY98.

Administrative Fees

The state service agency will receive 3% as the grantee and ATFA will receive 7% as the sponsor.

ATFA is able to be contacted for additional information about this pro-gam by calling 205-781-6448 or writing to:

HOPWA 1998 Entitlement - HUD Grant not yet contracted

The Proposed funding categories are as follows:

The amount proposed above for the 1998 formula grants are based on level funding from HUD for the 1998 budget year of $986,000. These dollars are identical to the requested changes for the HOPWA Formula 1997 year.

For information, please contact:

Randall Russell LGSW

AIDS Task Force of Alabama

P.O. Box 55703

Birmingham, AL 35255

205-781-6448 or 1-800-592-2437