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DFA CDBG Plan

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					PROGRAM RECOVERY PLAN: Department of Finance and Administration (DFA)
Program Title        Community Development Block Grant (CDBG) program
Funding Type         Direct Appropriation
Amount               $3,802,222
Existing or New      Existing Program
Program
Goals and Objectives The goal of the Community Development Black Grant (CDBG) program is to
                     create suitable living environments, provide decent affordable housing, and create
                     economic opportunities for persons of low and moderate income. To achieve this,
                     the CDBG program provides grants to local public bodies to undertake a wide
                     range of planning activities and infrastructure projects. Under ARRA, recipients
                     shall give priority to projects that can award contracts based on bids within 120
                     days of the grant agreement

Activities                Through ARRA, the CDBG program will complete projects in the following
                          categories: wastewater, water system improvement, solid waste convenience center
                          and street improvements.
Quick-Start Projects or   There are 8 projects that have been identified as activities that can be initiated
Activities                within 120 days: City of Tucumcari (Water System Improvements), Village of
                          Mosquero (Waste Water Improvements), City of Clovis (Street Improvements),
                          City of Bloomfield (Street Improvements), Village of Milan (Waste Water/Street
                          Improvements), Village of Reserve (Street & Drainage Improvements), Mora
                          County (Solid Waste Convenience Center), Town of Tatum (Waste Water
                          Improvements).
Certifications or         No non-standard certifications or assurances are required for these ARRA funds.
Assurances                The standard CDBG process is used for these ARRA funds. Public Notice is sent
                          out publicizing an application workshop to inform potential applicants. Counties
                          and municipalities are required to apply for the ARRA funds, just as they do for the
                          annual CDBG funds. Applications are rated and ranked by DFA staff, and the
                          Community Development Council (CDC) conducts an application hearing. The
                          CDC then determines funding allocations and award letters are sent out to the
                          recipients. Grant agreement is executed, and grantees must complete all
                          environmental requirements under 24CFR Part 58. Once the grant conditions are
                          satisfied the funding can be released.
IMPLEMENTATION
Type of Awards            CDC awards were determined as part of an allocation hearing that was conducted
                          on April 15, 2009. Award letters are mailed to each county and municipality that
                          was awarded funds. A grant agreement is then initiated for each individual grantee.
Shovel-Ready Projects     Under ARRA, recipients shall give priority to projects that can award contracts
                          based on bids within 120 days of the grant agreement. After a careful review of
                          each CDBG application, a questionnaire was mailed out requesting verification that
                          the projects are “shovel ready”. Questions included; “If funded how soon you can
                          award contracts for this project? If funded when the project will be completed?
                          How much will be spent on construction and/or professional design? What are the
                          estimated numbers of job opportunities that will be created if this project is
                          funded?” The 8 projects selected all stated they will award contracts within the 120
                          day requirement.

MOE or Match              In order to assist the CDC in making funding resources go further, and to ensure
Requirements               there is a local investment in applications for funding consideration, CDBG
                           recipients must fulfill the following requirements: rural applications must provide a
                           minimum of a 5% match from local, state, federal, or other sources; non-rural
                           applicants must provide a minimum of a 10% match from local, state, federal, or
                           other sources.
Targeted Recipients        Counties and municipalities
Beneficiaries              Individuals with low to moderate income will benefit from the CDBG funding.
One-Time Funding           The CDC allocated all of the funds in the CDBG funding on a one-time basis.
Uses
Opportunities for Public   On March 30th, 2009 DFA Local Government Division conducted an open public
Input                      meeting to discuss the CDBG Stimulus funding.
Planned Collaboration      DFA Local Government Division (LGD) staff collaborates with the NMCDC
                           during the allocation process.
Methodology for Award      In accordance with the CDBG rules and regulations, NMCDC and DFA developed
Selection                  a rating criterion for evaluation of CDBG applications. The applicant can score up
                           to 110 points. The points are as follows: Need (5), Appropriateness (20), Previous
                           CDBG Funding (10), Leveraging (15), User Fees & Revenues (10), Citizen
                           Participation (10), Planning (10), Feasibility/Readiness (20), and Cost Benefit (10).
                           DFA rates and ranks each application, and makes recommendations to the CDC.

                           The CDC reviews DFA’s input, as well as the past performance of the applicant in
                           administering active CDBG projects, and makes funding decisions in an open
                           public meeting. The council will also consider the applicant’s presentation at the
                           hearings, the summary of the project application, and the current economic and
                           environmental conditions. The council then makes funding determinations by a
                           majority vote. They may waive or adjust any state-imposed rule or requirement
                           relative to project selection and administration of the CDBG program as long as
                           the waiver will not result in violation of state or federal statutes or regulations or
                           penalize other applicants.

                           The council may deviate from DFA staff recommendations, or adjust the scope and
                           dollar amount of projects, if a majority vote determines that any of the following
                           conditions apply:

                           IN ORDER NOT TO FUND A PROJECT RECOMMENDED BY STAFF: a)
                           other funding sources for the project are available, b) minimum application
                           requirements were not met c) other applications were deemed to be a priority d)
                           the application was not well conceived.

                           IN ORDER TO FUND A PROJECT NOT RECOMMENDED BY STAFF:
                           (a) the health and safety of area residents is at stake; (b) funding committed to the
                           project from other sources may be jeopardized; (c) significant economic benefits
                           will be realized if the project is implemented; (d) the need for the project is critical.
State Appropriation        The grantee is required to provide a 5% or 10% match. This match could
Required                   potentially come from a state appropriation, though state funds are not necessary.
Energy Efficiency and      Under ARRA, CDBG projects must promote energy conservation, smart growth,
Green Building             and green building techniques or reduced pollution emissions. The 8 projects
                           selected were chosen in part because they meet this requirement.
Dollar Amount and          The State of New Mexico’s grant totals $3.8 million. All of the $3.8 million will be
Percent for State          allocated to the 8 projects identified above, with no ARRA funds applied to
Administrative Costs administrative costs.
MONITORING AND EVALUATION
Program Delivery     The regular CDBG program conducted an application hearing in August of 2008.
Schedule             DFA received 40 applications and $19.7 million dollars in requests on December
                     19, 2008. The typical annual allocation is $14.0 million, which comes in addition to
                     the $3.8 million in ARRA funds. DFA completed a rating and ranking process.
                     CDC met with each applicant at the application hearings, and made the final
                     allocation decisions. Award letters were mailed out to grantees in April. Grant
                     agreements will be executed within the next few weeks.

                           Most of the 8 communities are currently working on these environmental
                           assessments. Others are mostly finished with this process with the exception of
                           completing the required 30-day concurrence notice in the paper. DFA must submit
                           an Action Plan 30 days from date of Federal Register Notice release. Once the
                           action plan amendment is approved and grant agreement signed, HUD will put the
                           funds in DFA’s line of credit. DFA will then send out the grant agreements.
Environmental Review       All 8 applicants have satisfied the NEPA requirements.
Process for Periodic       DFA will require monthly reporting from grantees of the status on their project.
Review                     The grant agreement shows the dates they are required to submit their progress
                           reports to LGD. This is monitored for compliance by the project managers
                           monthly.

                       DFA will also ask grantees to complete an Exhibit 1-D Progress/Final Report
                       Form after the project is complete.
OUTCOME AND OUTPUT MEASURES
                       LGD will perform periodic site visits to the 8 projects to monitor progress and
                       ensure compliance with the ARRA requirements.
                       LGD conducts one major CDBG Implementation Workshop in May to go over the
                       processes and implementation of their grant. Progress reports are submitted
                       quarterly and two fiscal monitoring will occur.
ACCOUNTABILITY MEASURES
Fairness of Award      DFA conducted an application workshop, for which public notice was provided, to
                       prepare potential applicants. The application was made available on line and also
                       distributed at workshop. Two separate entities, DFA and CDC, were involved in
                       the decision making process. DFA rated and ranked each application based on an
                       approved review and evaluation process. The CDC held an open public application
                       hearing to listen to each individual applicant.
Percent of Dollars and 100%
Amount Obligated by
June 17
Percent of Awards      Allocation to 8 entities throughout New Mexico received funding totaling
Executed by Planned    $3,802,222. Notice of award will be sent out the week in April 2009.
Delivery Date
Number and Amount of 0
Improper Payments
Percent of Federal     100%
Reports Delivered On
Time
Number of Identified   0
Errors in Reports
Percent of Dollars     100 % by September 2010
Expended
Number of Projects and 0
Dollar Amount of Cost
Overruns
TRANSPARENCY AND ACCOUNTABILITY
Plan to Make             Allocations were decided in April. These allocations were publicized through a
Information Available to press release and are available on LGD website. The end results will be reported to
the Public               HUD and made available to the public.
Plan to Hold Managers    DFA will distribute a timeline of reporting requirements and will ensure that
Accountable              grantees submit monthly reports on a timely basis. The DFA staff will be in regular
                         contact with the public bodies and will perform occasional on-site monitoring. Data
                         will be entered into HUD’s IDIS system for review.

                            DFA will not release any construction funds until the grantee’s environmental
                            review is complete and DFA has issued the grantee a removal of grant conditions.
                            DFA will also review the RFP and contracts to make sure the grantee followed the
                            procurement processes. LGD ensures grantees are paying the correct wage rates,
                            and are in compliance with laws governing Fair Housing, Citizen Participation,
                            Anti-Displacement and Relocation, Section 3, and Environmental Review.
Barriers to Effective       Possible barriers include bids coming in too high, environmental assessments being
Implementation (with        delayed by the need to perform a cultural resource survey, pay requests not being
proposed solution and       submitted or paid on a timely basis. The best solution to such problems is that the
date)                       DFA project managers stay in close contact with the grantees. HUD indicated that
                            DFA has already met the initial 50% allocation requirement.

				
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