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GRANT APPLICATION GUIDELINES
FY 2020-21 Community Development Block Grant Public Service Activities
Key Information
Total funds available: Estimated amount $55,000
Appl
ication deadline: Must be received by 5:00 pm, April 30, 2020
El
igible applicants: Non-profits registered as 501(c)3 organizations
All requested funds will be evaluated and recommended based upon their own merit. Applying for
funds is in no way a guarantee for future funding. The City Council reserves all rights to fund fully,
partially, or none of agency requests.
Nonprofit agencies may apply for funding under any one or both types of grants but will only
be awarded one grant request:
Sta
rt-up grant for new programs or new nonprofit agencies (up to $15,000)
A gr
ant for new agencies.
A grant for new programs within established nonprofit agencies.
Programs are only eligible within the first two years of existence.
If a second consecutive year of funding is approved, this amount shall be no more
than 50% of the initial year’s funding.
Sust
aining grant (up to $5,000)
These grants fund core operational expenses such as overhead costs including
rent, utilities, director’s salaries, phone, etc.
Agencies must be providing an essential service that the City would have to provide
at a potentially greater expense if the nonprofit agency were not available to do so.
Submission instructions: All applications must be typed. If necessary, provide additional
information as attachments. Separate applications must be submitted for each grant request.
Em
ail applications to: sgordon@kannapolisnc.gov
.
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Hard copies can be mailed to:
City of Kannapolis
ATTN: Sherry Gordon
401 Laureate Way
Kannapolis, NC 28081
NOTE: It is the applicant’s responsibility to confirm receipt of emailed/hard copy applications.
Award date: Estimated June 30, 2020
Timeframe of project implementation: July 1, 2020 through June 30, 2021. No project expenses
incurred prior to or after the time frame are eligible for reimbursement.
Obtaining application: Download from www.kannapolisnc.gov
or request from contact below.
Contact: Sherry Gordon, Community Development Program Administrator
sgordon@kannapolisnc.gov
or 704-920-4332
Overview
The City of Kannapolis receives a Community Development Block Grant (CDBG) annually from the
U.S. Department of Housing and Urban Development (HUD) to fund activities that benefits low and
moderate income (LMI) residents of the city. The CDBG program provides Kannapolis with the
opportunity to develop a strong community by funding activities that provide decent housing and a
suitable living environment and by expanding economic opportunities for low and moderate income
persons. Funds may be used to carry out a wide range of community development activities such as
neighborhood revitalization, economic development, and the provision of improved community
facilities and services.
The City uses a competitive application process to make a portion of its CDBG funds available to
applicants in the form of public service grants.
To help potential applicants determine whether or not their project might be eligible for a grant, it is
important to be familiar with the basic requirements of the Federal program that provides the funding
for the grants. Potential applicants should also review the contractual requirements they will be
expected to meet if they are selected for Federal funding.
CDBG National Objectives
Federal legislation and regulations have established national objectives that all CDBG funded
activities must meet. The City of Kannapolis must assure that all activities meet one of these two
national objectives of the program. Each activity must: 1) benefit people with low and moderate
incomes (LMI); 2) aid in the prevention of slums and blight. Activities that do not meet one of these
two broad national objectives cannot be undertaken with CDBG funds.
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Low and Moderate Income Benefit: Generally, public service activities meet the first requirement
benefit to LMI persons, or those whose family income is up to 80% of the area median income (AMI).
For an activity to meet this objective, it must either have income eligibility requirements that limit the
activity’s benefits to LMI persons, or the activity must be located in and serve an area that is
predominantly inhabited by LMI residents. Under the CDBG regulations, programs that serve the
elderly or adult persons with disabilities are usually considered to benefit low and moderate-income
persons. The income limits that determine who is considered to have low and moderate incomes are
shown below and are based on AMI:
Low Income Limits (up to 50% AMI) 2019
Kannapolis Residents within:
Cabarrus County
Rowan
County
Household Size (Number of
Household Members)
$27,650
$20,900
$31,600
$23,900
$35,550
$26,900
$39,500
$29,850
$42,700
$32,250
$45,850
$34,650
$49,000
$37,050
$52,150
$39,450
Moderate Income Limits (up to 80% AMI) 2019
Kannapolis Residents within:
Cabarrus County
Rowan
County
Household Size (Number
of Household Members)
$44,250
$33,450
$50,600
$38,200
$56,900
$43,000
$63,200
$47,750
$68,300
$51,600
$73,350
$55,400
$78,400
$59,250
$83,450
$63,050
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Eligible Activities
The CDBG regulations allow the use of grant funds for a wide range of public service activities,
including, but not limited to:
Employment services (e.g., job training);
Crime prevention and public safety;
Child care;
Health services;
Substance abuse services (e.g., counseling and treatment);
Fair housing counseling;
Education programs;
Energy conservation;
Services for senior citizens;
Services for homeless persons;
Welfare services (excluding income payments);
Homebuyer down payment assistance; and
Recreational services.
CDBG funds may be used to pay for labor, supplies, and material as well as to operate and/or
maintain the portion of a facility in which the public service is located. This includes the lease of a
facility, equipment, and other property needed for the public service.
Ineligible Activities
The provision of “income payments” is an ineligible CDBG activity if these payments are provided as a
grant. Income payments are payments to an individual or family, which are used to provide basic
services such as food, shelter (including payment for rent, mortgage, and/or utilities) or clothing.
However, such expenditures are eligible if the income payments do not exceed three consecutive
months per client family and the payments are made directly to the provider of such services on
behalf of an individual or family. Income payments that are provided as a loan are permissible within
the public services cap.
Grant funds should be used for grant approved activities only. Funds cannot be used to pay for
food.
Political activities are ineligible.
While faith-based organizations may use CDBG funds to sponsor eligible community activities, the
activities may not be religious in nature, directly or indirectly, or be limited to or predominantly for
members of specific churches or religions.
CDBG funding recipients may not discriminate on the basis of race, gender, nationality, ethnicity,
religion, creed, or disability.
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Award Timeline
The timeline for the application process is expected to be as follows:
April 1 Nonprofit organizations notified about application
April 30 Applications due by 5:00pm
MayStaff reviews applications for completeness and eligibility
May Community Development Commission reviews applications, invite agencies for
presentations
By Mid-June Community Development Commission makes funding recommendations to City
Council
By June 30 City Council makes funding decisions
You will be notified as specific dates and decisions are determined.
Evaluation Criteria
Applications will be reviewed by staff and the Community Development Commission (a citizens
advisory group). The applications will be evaluated on the criteria listed below. Recommendations will
be made to City Council for final decision.
Completeness of application
Eligibility of proposed service per HUD guidelines and City of Kannapolis direction
Meeting CDBG national objectives
Community need for proposed service/program
Impact of the project in terms of number of people served, progress towards addressing
homelessness or educational services
Experience and track record of nonprofit agency
Contractual Requirements
Each grantee selected to receive funds is required to sign a contract (subrecipient agreement) with
the City. The contract will specify the amount of the award, the period for which the project is
approved, the contract term and administrative provisions. Special conditions attached to the award
will also be specified in the agreement. No costs incurred prior to the execution of an agreement with
the City are reimbursable. The subrecipient may not change the terms or provisions in the contract or
substitute approved budget line item expenditures without prior written approval by the City.
Grantees will be required to submit and file quarterly reports on expenditures and services. Staff will
provide forms for these reports.
Projects under contract with the City must be in compliance with all applicable federal, state, and local
laws, including nondiscrimination laws.
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All recipients will be required to comply with the federal government’s audit requirements as described
in OMB Circular A-133 (for HUD’s programs, these requirements are codified at 24 CFR Part 84
.) All
recipients must provide the most recent audited financial statement.
Disbursement of Funds
Subrecipients will be reimbursed for expenses incurred in accordance with the contract’s
scope of services and budget. Presentation of paid receipts and paid invoices for eligible
expenses and a detailed description of expenditures will be required. The City makes the final
decision whether a tendered receipt is eligible and valid. Availability of the CDBG funds from
HUD may delay the reimbursement. City staff will make every attempt to reimburse
subrecipients in a timely manner.
Subrecipients will be expected to spend the grant in a timely manner by June 30, 2020. Subrecipients
who cannot spend all or part of their grant must notify the City so that unneeded funds may be
reallocated.
Records and Reports
The subrecipient is required to maintain and report demographics and statistics of its project
beneficiaries, regardless of the amount of the grant, and to make quarterly reports to the City
describing its expenditures and services. The subrecipient must agree to maintain its project records
and copies of reports for a minimum of three years. Subrecipients who are late with reports may be
suspended from applying for future CDBG funds during the next funding round.
Audits, Inspections, and Monitoring
The City will audit and/or monitor the progress of the subrecipient via quarterly reports, telephone
calls, and on-site monitoring visits. The subrecipient must facilitate monitoring visits and have
appropriate records and copies of reports available for inspection upon request by the City and/or
HUD.
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CITY OF KANNAPOLIS
FY 2020-21 COMMUNITY DEVELOPMENT BLOCK GRANT
PUBLIC SERVICES: EXTERNAL AGENCY FUNDING APPLICATION
Agency Information
1. Agency Name: ____________________________________________________________________
2. Mailing Address: ___________________________________________________________________
3. Physical Address, if different: _________________________________________________________
4. Main Phone #: _______________________________________
5. Website: ___________________________________________
5. Contact Person and Title: ____________________________________________________________
6. Contact’s Phone #: ___________________________________
7. Contact’s Email: _____________________________________
8. Agency’s Director: ____________________________________
9. Federal Tax ID Number: _______________________________
10. Amount of City Funding Appropriated in FY 2018-2019: __________
11. Amount of City Funding Appropriated in FY 2019-2020: __________
12. Amount of City Funding Requested for FY 2020-2021: ____________
13. Provide a brief overview of your agency and its mission.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
14. What type of grant are you requesting: (see Appendix A)
SEPARATE APPLICATIONS MUST BE SUBMITTED FOR EACH GRANT REQUEST
Please specify:
Start-up Grant for a New Program
Start-up Grant for a New Nonprofit Agency
Sustaining Grant
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15. List your agency’s top three to five sources of funding, starting with your largest source of funding. Provide
the name/description of the source and the amount.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Program Information
16. Give a description of the program/project/service for which you are requesting funds.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
17. Is this a: New project/program Existing/ongoing project/program
18. If this is an existing program, did your agency receive any funds (other than CDBG) from the City of
Kannapolis for this program between May 15, 2019 and May 15, 2020? Yes
No
19. If yes, please explain the source, amount, and purpose of the funds.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
20. Why are City of Kannapolis funds being requested, and how would those funds be used?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
21. Provide a summary of your agency’s experience and track record in carrying out the proposed
program/project/services.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
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22. For existing programs, provide the accomplishments of your program in terms of the number of clients
served in Kannapolis, impact of your agency’s work, and any other metrics.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
23. Describe the population of clients who will be served with the proposed program/project/service. (Discuss
age, gender, race disability, etc along with unique characteristics such as special needs, risk factors,
barriers, etc.)
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
24. What is the geographic service area of this project/program?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
25. Please provide the total number of unduplicated households or persons expected to be served with this
project/program (including non-City funding sources). See HUD income limits in Application Guidelines to
determine income categories for your clients.
Income Level of Clients
(Households or Persons)
City of Kannapolis
Residents or
Households
Non-City Residents
or Households
Total
Total number of clients to be served
Extremely low to low income (0 to
50% of median income)
Low to moderate income (51 to 80%
of median income)
26. Of the City of Kannapolis residents to be served, how many households or residents can be served with the
grant amount you are requesting from the City?__________ How many or these are estimated to be low
and moderate income (LMI) up to 80% of area median income? __________
27. National Objective Qualifiers: In order to be considered as benefiting low and moderate income (LMI)
persons (up to 80% of area median income), the proposed activity must fall into one of the categories below.
Please check the applicable box.
A: Area Benefit At least 51% of the residents within the targeted geographic area are LMI income
persons (up to 80% of area median income). The activity may be available to all persons in the area
regardless of income. Be sure to describe the specific geographic area as requested in question 21.
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B: Limited Clientele To qualify under this subcategory, a limited clientele activity must meet one of the
following tests. Please check the appropriate box.
i: Clientele must be one of the following groups presumed to be LMI: abused children; elderly
persons; battered spouses; homeless persons; adults meeting Bureau of Census’ definition of
severely disabled persons; illiterate adults; persons living with AIDS; or migrant farm workers.
ii: Clientele must be at least 51% LMI.
iii: The activity must have income-eligibility requirements which limit the service to persons
meeting the LMI income requirement, as evidenced by the administering agency’s procedures,
intake/application forms, income limits, and other sources of documentation.
iv: The activity must be of such a nature that it may be reasonable to conclude that the clientele
will be LMI persons.
28. Unless you checked B. i.) above (groups presumed to be LMI), please indicate how you will verify that your
program is serving LMI clientele. (i.e. pay stubs/wage statements, W-2s, income tax returns, social security
documents, bank statements, support check documents, or other)
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
29. Describe the outcomes you hope to achieve with this project/program.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
30. How will you measure whether the outcomes have been achieved? Describe the indicators and how you
plan to track them.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
31. What other area agencies provide similar services?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
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Financial Management
32. Is your agency:
a. Licensed or Certified by the State of North Carolina? Yes No
b. Chartered as a nonprofit corporation by the State of North Carolina? Yes No
c. A 501(c)(3) organization? Yes No Other: ______________________
33. How is your agency governed and managed?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
33. List the names and positions of members of the Board of Directors, officers, or employees of the organization
who are on the City Council, Community Development Commission, or a City employee. If none, check here:
NONE in organization
Name
Position in Organization
Affiliation with City
Provide the name and title of all bonded agency officials responsible for the authorization of expenditures and the
disbursal of funds, if any. Indicate the amount of each bond.
Name & Title Bond Amount
___________________________________________ $ ____________________________________
___________________________________________ $ ____________________________________
Does a licensed CPA perform an annual audit for all funds handled by your agency? Yes No
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Budget
Please provide the revenue sources and amounts for the proposed program/project/service in the table below.
Column (A)
Column (B)
Col. (A) + (B)
Sources of Revenues
City of
Kannapolis
Other Sources
Committed - C
or Tentative - T
Total
TOTAL PROGRAM REVENUES
Please provide information about the anticipated expenses for the proposed program/project/service from July 1,
2019 to June 30, 2020. In the Category column, indicate whether the expense is one of the following:
Personnel services Mark “P” in category
Contracted services Mark “C” in category
Supplies & miscellaneous Mark “S” in category
Category
Description of Expense
Amount
TOTAL
TOTAL EXPENSES
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Certification of Application
I certify that to the best of my knowledge the information provided in this application is true. I understand
that if awarded a CDBG grant, my agency will follow federal regulations and be responsible for significant
reporting requirements. I understand all CDBG funded activities will directly benefit City of Kannapolis
residents. I understand project funding is contingent of receiving funds from HUD through the CDBG
Program.
___________________________________ (name of organization requesting CDBG funds) hereby
proposes to provide the services or project in accordance with this application for Community
Development Block Grant Funds. If this application is approved and this organization for receives CDBG
funding from the City of Kannapolis, this organization agrees to adhere to all relevant Federal, State and
local regulations and other assurances as required by the City. Furthermore, as the duly authorized
representative of the organization, I certify that the organization is fully capable of fulfilling its obligation
under this application as stated herein.
I further certify that this application and the information contained herein are true, correct and complete.
Unsigned applications will be deemed incomplete.
I also authorize the following person(s) to have signatory authority regarding this grant:
Completed by: ___________________________________ Title: _____________________________
Signature: _____________________________________ Date: _____________________________
If selected, your agency must be prepared to submit the following:
1) Copy of your current 501(c)(3) or nonprofit status certification letter
2) List of Board of Directors
3) Organizational Chart
4) Current copy of agency’s by-laws and articles of incorporation
5) Copy of current detailed budget
6) Most recent copy of the organization’s independently audited financial statement
(which should include both a Schedule of Expenditures of Federal and State
Awards, if rewards exceed $500,000 in one fiscal year, and a Schedule of
Findings and Questioned Costs. The audit should include a copy of the
Corrective Action Plan, if the organization received a finding during the previous
year’s audit and a Summary Schedule of Prior Audit Findings, if applicable)
Do not submit this information until requested. We anticipate contacting you to request this
information in late May/June.
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APPENDIX A: Grant Types
Start-up grant for new programs or new nonprofit agencies
A grant for new programs within established nonprofit agencies.
A grant for new nonprofit agencies.
Programs are only eligible within the first two years of existence.
If a second consecutive year of funding is approved, this amount shall be no
more than 50% of the initial year’s funding.
Sustaining grant
These grants fund core operational expenses such as overhead costs
including rent, utilities, director’s salaries, phone, etc.
Agencies must be providing an essential service that the City would have to
provide at a potentially greater expense if the nonprofit agency were not
available to do so.
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