COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
HOME PROGRAM APPLICATION
Program Year 2021 • Fiscal Year 2022
Annual Action Plan • July 1, 2021 - June 30, 2022
2
TABLE OF CONTENTS
Page
Application Checklist 3
Project/Program Summary-Example 4
Project/Program Summary-Form 5
Introduction
2020-2024 Consolidated Plan Goals 6
CDBG Program National Objectives 7
HOME Program Description 7
Current Funding LevelsCDBG & HOME 8
Leverage 8
Federal Funding Accountability and Transparency Act of 2006 (FFATA)
Reporting Requirements 8
Application Submittal Overview (Eligible Applicants) 10
Application Process 13
Submission Requirements 14
Important Information Relative to Application 15
PART A: APPLICANT AND AGENCY BACKGROUND
Applicant Information 17
Past City Support 18
Agency Information 19
Agency Operating Budget 20
PART B: CDBG or HOME PROJECT DETAIL INFORMATION
Program Description 21
Eligibility 21
Program Need 23
Target Population 24
Program/Project Rationale 25
Organizational Capacity 25
Community/Neighborhood Involvement 25
Performance Measures 26
Project/Program Cost and Budget 28
Project/Program Source and Use Budget 29
Attachments:
1. CDBG/HOME Income Chart / Fair Market Rate Summaries 30
3
The following should be submitted to the Grants Administration Office in the following order, 3-
hole punched and bound with a binder clip.
1. Project/Program Summary
2. Completed Part A of Application
3. Completed Part B of Application
4. A signed statement that the agency agrees to abide by all policies, regulations, ordinances,
or statutes as required by HUD and/or the City of Lynchburg
5. Copy of 501(c)(3) designations letter from the Internal Revenue Service
6. Certification of registration from the VA Secretary of State verifying agency is registered to
conduct business in the State of Virginia
7. Board Membership List and attendance record for previous 12 months of each Board
member
8. Minutes of the Board meeting authorizing the submittal of the application for funding
9. One (1) copy of the audited financial statement for the past two years including management
letters
NOTE: ITEMS 5 - 9 DO NOT APPLY TO CITY DEPARTMENT APPLICATIONS
XIII. APPLICATION CHECKLIST
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EXAMPLE OF PROJECT/PROGRAM SUMMARY – PLEASE COMPLETE THIS FORM ON THE
FOLLOWING PAGE AND PLACE AS FRONT PAGE OF THE CITY DEPARTMENT/AGENCY’S
APPLICATION SUBMITTAL
NO
TE: THIS PROJECT/PROGRAM SUMMARY SHEET WILL PROVIDE CITY STAFF WITH A
CHECKLIST TO ENSURE THAT ALL DOCUMENTS HAVE BEEN SUBMITTED, AS REQUESTED.
Project/Program Summary
City Department/Agency: City of Lynchburg, Office of Grants Administration
Project/Program Title: Lynchburg Project
EXAMPLE
$50,000
CDBG
Flash Drive
Attachment 1
Attachment 2
2 Attachment 3
Attachment 4
N/A or Attachment 5
Attachment 6
of each Board member for the previous 12
Attachment 7
submittal of the application for funding
Attachment 8
Part A and Part B Completed
Brief Summary Description of Project:
(
Summary of project description that your City Department/Agency has stated in Part B, Section I)
EXAMPLE
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PROJECT/PROGRAM SUMMARY
City Department/Agency:
Project/Program Title:
Internal Revenue Service (IRS
Conduct Business (SCC Certification)
last two fiscal years) (Nonprofits and
record of each Board member for the
previous 12 months (Nonprofits and
the submittal of the application for funding
Brief Summary Description of Project:
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Welcome to the City of Lynchburg’s Grants Administration Office annual application for Community
Development Block Grant (CDBG) and HOME Program federal funds. All CDBG and HOME funds
are provided to the City through an annual entitlement grant administered by the U.S. Department of
Housing and Urban Development (HUD). This award is based on the City’s prior performance and
needs detailed in the City of Lynchburg’s Five-Year Consolidated Plan. All entities or organizations
requesting CDBG or HOME funds must complete and submit this application prior to the deadline
(February 3, 2021 at 4:00 p.m.) to be considered for Fiscal Year (FY) 2022 (July 1, 2021-
June 30, 2022) funding. The application process is competitive and not all applicants will be
awarded funding. Similarly, recommendations for funding may be for an award amount less than
that requested by the applicant.
The release of this application by the Grants Administration Office each year provides new
opportunities for the City to create partnerships with neighborhood organizations, nonprofit and for-
profit entities to address community development needs. To effectively address these issues, the
City encourages its prospective partners to develop innovative programs that truly reflect the
desires and needs of the community. As your entity prepares its application, you are strongly
encouraged to engage the community. While Grants Administration staff is unable to complete this
application for you, staff is available for general technical assistance.
Note: Individual persons cannot apply. Funds are provided to City departments,
public housing
authority and non-profit/for-profit agencies.
Five-Year Consolidated Plan Priorities
The City’s 2020-2024 Five-Year Consolidated Plan is for the period of July 1, 2020 through
June 30, 2025. City Council approved the Consolidated Plan goals on February 11, 2020 for
the Five-year Plan and the Program Year (PY) 2021 Annual Action Plan (FY 2022). These
goals were developed to provide direction for the City in its use of CDBG and HOME funds
throughout the five-year period. Following are the goals that will guide the City’s priorities and
allocation of funds for the FY 2022 Annual Action Plan CDBG/HOME Program period:
Adopted 2020-2024 CONSOLIDATED PLAN/ FY 2022 ANNUAL ACTION PLAN GOALS
The goals listed below are intended to provide broad guidance in the allocation of Community Development
Block Grant (CDBG) and HOME Program funds granted to the City by the United States Department of
Housing and Urban Development for the five years beginning July 1, 2020 and ending June 30, 2025.
N
OTE: At the January 12, 2021 City Council meeting, City Council reviewed and re-approved the
Consolidated Plan goals for the FY 2022 (PY 2021) Annual Action Plan process. The goals are listed
below.
Housing Goals
Support initiatives to increase permanent affordable housing in the rental markets. Increase the
number of owner-occupied units. Emphasis to be placed on mixed income and inclusiv
e
c
ommunities.
Support the preservation of affordable housing in both the rental and sales
markets, including the rehabilitation of substandard housing.
Support the improvements to public facilities and infrastructure.
INTRODUCTION
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Non-Housing Goals
Support efforts for the removal and redevelopment of dilapidated and condemned
structures to eliminate neighborhood deterioration, blight and blighting influences.
Support efforts for the identification and remediation of rental housing in substandar
d
c
onditions.
Support neighborhood partnerships that facilitate self-sufficiency and enable families and
individuals to maintain their housing, remain in their neighborhoods, and age in place.
Support efforts that align with the goals of the City's Blueprint for Opportunity: Buildin
g
Tomorrow’s City of Lynchburg 2019-2023 to improve the economic base, job skills, and
heal
th of the community.
Promote public service activities which support the healthy development of the City’s at-
risk youth, adults, and families.
Support efforts to develop, sustain, and coordinate a comprehensive, seamless system
of services for homeless citizens in order to move the homeless population toward
obtaining permanent housing.
Support efforts to remove barriers to escape poverty and strengthen low-income households
and families.
The
application process for CDBG and HOME funds seeks to ensure that the City’s
investment of scarce resources has the greatest impact on achieving outcomes related to
the above-listed goals. While the goals established for the Five-Year Plan generally
determine those funding proposals recommended for approval, the priorities should not be
viewed as an obstacle to responding to unique opportunities or providing creative solutions.
Community Development Block Grant (CDBG)
CDBG funds, as adopted by the U.S. Congress in 1974, must be used to address one of three
National Objectives:
1. B
enefit low-and moderate-income (LMI) persons. Low- and moderate-income persons are
those whose household incomes are at or below 80% of the area median income, as
adjusted for family size, and as determined by HUD for Lynchburg (See Attachment 1);
2. Prevent or eliminate slums or blight. To qualify under the National Objective of addressing
slums or blight, the proposed activity must address these conditions on a “spot” or “area”
basis or be a designated urban renewal activity that is part of an Urban Renewal project
area or Neighborhood Development Plan (NDP);
3. Meet a need having a particular urgency because existing conditions pose a serious
and immediate threat to the health or welfare of the community and other financial resources
are not available to meet such needs.
All applications for CDBG funds must meet one of the three above-listed National
Objectives. HOME
The HOME Investment Partnerships Act encourages the development of affordable housing,
private sector participation and expanding the capacity of nonprofit and public housing
providers. HOME program beneficiaries must have a household income that does not exceed
80% of the area median income, adjusted for family size (See Attachment 1).
The City of Lynchburg will consider projects that consist of one or more of the following eligible
activities:
Acquisition of property for the purpose of constructing or rehabilitating affordable housing;
New construction of rental or homebuyer property;
Rehabilitation of existing housing to comply with the local Rehabilitation Building Code;
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Site improvements to assist in the development of new affordable housing;
Demolition;
Relocation costs; or
Project related soft costs.
Current Funding Levels
The City of Lynchburg received $714,680 in CDBG entitlement funds and $424,183 in HOME
funds from HUD for Fiscal Year (FY) 2021. While the City has not yet been notified of its FY 2022
funding allocation, the City anticipates receiving the same funding amounts for each program in
FY 2022. Both the CDBG and HOME funds are used to support homeownership, housing
rehabilitation and repair programs, neighborhood projects, infrastructure, spot blight acquisitions
and dispositions, and other initiatives administered directly by the Grants Administration Office.
Additionally, a maximum of 20% of CDBG funds and a maximum of 10% of HOME funds may be
used for program administration.
The balance of the funding is allocated through this competitive application process. CDBG
funds will be considered for City capital projects, Lynchburg Redevelopment and Housing
Authority (LRHA) programs, and targeted neighborhood programs that have a City
department sponsor.
1
Of the HOME entitlement amount, a minimum of 15% must be used to support projects
developed, sponsored, or owned by Community Housing Development Organizations
(CHDO).
Note: Individual persons cannot apply. Funds are provided to City departments,
public housing
authority and non-profit/for-profit agencies.
Leverage
CDBG and HOME funds may not be used to displace other available City, State or Federal
funds. CDBG and HOME funds can be used as gap financing that is necessary to help make
a project or program cost effective for the intended low-to-moderate income beneficiary. To
encourage this requirement, the following leverage is recommended: $1 of CDBG/HOME
matched by a minimum of $1 of non-CDBG/HOME funds.
Volunteer time may be counted as leverage at a maximum of $10/hour.
FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT OF 2006 (FFATA)
FFATA REPORTING REQUIREMENTS (All CDBG or HOME funds awarded to agencies, the following
information will need to be submitted to the City in conjunction with the execution of the Written
Agreement.
The Federal Funding Accountability and Transparency Act of 2006 (FFATA) mandates specific
reporting requirements that must be met by all Federal grant recipients, including CDBG participating
jurisdictions such as the City. If the Subrecipient receives $25,000 or more in Federal funds/awards
the Subrecipient must provide the City with the following information in accordance with FFATA
reporting requirements. This information includes, but is not limited to:
1
It should be noted that on September 28, 2010, City Council decided to eliminate the use of CDBG funding for
public service agencies. Council noted that such agencies could be considered for funding from the General
Fund. Public service agencies can partner with a City department for targeted neighborhood projects. Note:
Lynchburg Redevelopment and Housing Authority (LRHA) is not a City department.
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1. name of the Subrecipient receiving the award;
2. amount of the award;
3. information on the award including transaction type, funding agency (i.e. HUD), the North
A
merican Industry Classification System code or Catalog of Federal Domestic Assistanc
e
num
ber, program source (Treasury Account Symbol (TAS) will continue to be used as
the
offi
cial Program Source), award title descriptive of the purpose of each funding action;
4. location of the Subrecipient receiving the award and primary location of performance under
the award, including city, State, congressional district, and country;
5. unique identifier of the Subrecipient receiving the award and the parent entity of the
Subrecipient, should the Subrecipient be owned by another entity (the unique identifier is the
Subrecipient’s Dun & Bradstreet (D&B) Data Universal Numbering System (DUNS) number);
6. names and total compensation of the five most highly compensated officers of the
Subrecipient if the Subrecipient in the preceding fiscal year received 80 percent or more of
its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross
revenues from Federal awards; and the public does not have access to this information
about the compensation of the senior executives of the entity through periodic reports filed
under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a),
78o(
d)) or section 6104 of the Internal Revenue Code of 1986. (See FFATA § 2(b)(1));
7. and any other data deemed necessary to comply with FFATA.
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Application Submittal Overview
NOTE: There is one application for both CDBG and HOME
funds. Eligible Applicants for CDBG FundsFiscal Year 2022
1. Nonprofit/Neighborhood Associations: Partnership applications between
nonprofits/neighborhood associations and City departments for targeted neighborhood
projects/public service activities. Note: Lynchburg Redevelopment and Housing Authority
(LRHA) is not a City department.
2. Housing Authority: programs such as, housing redevelopment/development, rental rehabilitation, and
administrative/direct costs associated with the Housing Authority's CDBG and/or HOME projects
3. City Departments: (infrastructure; construction or rehabilitation of neighborhood centers;
park improvements, aesthetic amenities on public property)
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Note: Individual persons cannot apply. Funds are provided to City departments, public
housing authority and
non-profit/for-profit agencies.
Eligible Applicants for HOME Funds (Non-profit Agencies or Lynchburg Redevelopment
and Housing Authority [LRHA]) – Fiscal Year 2022
1. Nonprofit agencies or the public housing authority that propose projects that consist of one
or more of the following eligible activities:
Acquisition of property for the purpose of constructing or rehabilitating affordable
housing;
New construction of rental or homebuyer property;
Rehabilitation of existing housing to comply with the local Minimum Housing Code;
Site improvements to assist in the development of new affordable housing;
Demolition;
Relocation costs;
Project-related soft costs; or
Down payment assistance.
2. Nonprofit agencies that are approved Community Housing Development Organizations
(CHDO) that will develop affordable housing within the CDBG-targeted areas.
3. The 2013 HOME Final Rule (24 CFR Part 92) contains many new provisions and changes
that will have substantive and broad-based impact on how the City administers HOME
activities. The key substantive changes in the regulations are as follows:
Note: Individual persons cannot apply. Funds are provided to City departments, public
housing
authority and non-profit/for-profit agencies.
Timely Production and Occupancy of Assisted Housing
1. HOME projects must be completed within four years of commitment. Any project
that is not completed timely will be terminated and the Participating Jurisdiction (City of
Lynchburg (PJ/CITY)) will be required to repay HOME funds drawn. [§92.205(e)(2)]
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2. HOME-assisted rental units must be occupied by income-eligible households
1
It should be noted that on September 28, 2010, City Council decided to eliminate the use of CDBG funding for public service
agencies. Council noted that such agencies could be considered for funding from the General Fund. Public service agencies can
partner with a City department for targeted neighborhood projects.
2
Nonprofit, CHDO, or public housing authority will be required to repay PJ/CITY
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within 18 months of project completion; if not, PJ/CITY must repay HOME funds for the
vacant units. Note, for units that remain vacant six months following completion, the
Subrecipient/CHDO must identify and develop an enhanced marketing plan and report this
information to the CITY who will in turn provide report to HUD. [§92.252]
3. A homebuyer unit must have a ratified sales contract within nine months of
construction completion, or the PJ/CITY must either convert it to a HOME rental unit or
repay the full HOME investment. [§92.254(a)(3)]
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4. CHDO set-aside funds should be committed to specific projects within 24
months of the PJ/CITY receiving its HOME allocation. The PJ/CITY can no longer
“reserve” CHDO funds for projects that will be identified at a later date. [§92.2 Commitment,
§92.300(a)(1)]
5. CHDO set-aside funds must be expended within 5 years of when the PJ/CITY
receives its formula allocation. [§92.500(d)(1)(A) and (C), and §92.500(d)(2)]
Strengthen Performance in Producing and Preserving Affordable Housing
The 2013 Rule provides regulatory guidance to strengthen Participating Jurisdiction (PJ)/CITY’s
performance in the production and preservation of HOME- assisted projects. These changes relate to
underwriting, property standards and construction oversight, CHDO qualifications and capacity, and long-
term viability of projects.
Underwriting and Program Design
1. PJ/CITY must underwrite all HOME projects to ensure that each project is
financially sustainable over its affordability period. The underwriting review
evaluates cost reasonableness, market demand, developer capacity, and the
commitment of other funding sources. [§92.250(b)].
2. PJ/CITY must adopt program policies for homebuyer programs that include
underwriting guidelines to determine the appropriate amount of assistance
necessary to assist the low-income buyer; assessment of a buyer’s ability to
purchase and remain in the home (e.g., housing and consumer debt ratios,
anticipated income, and available assets); and anti-predatory lending and
subordination policies. [§92.254(f)].
3. Homebuyers must receive housing counseling by a HUD-certified
housing counselor before receiving HOME assistance (down payment
assistance) or purchasing a HOME-assisted unit. [§92.254(a)(3)].
Property Standards and Construction Oversight
1. Property standards are updated to reference current national codes and to require that
PJ/CITY establish standards that will sustain quality assisted housing for at least the
affordability period. Within the 2013 Rule, property standards requirements are
reorganized by project type new construction, rehabilitation, acquisition without
rehabilitation, and manufactured housing. [§92.251]
2. PJ/CITY must identify and plan for major systems repairs. For rental
rehabilitation projects with 26+ units, this must be done via a capital needs
assessment. The PJ/CITY must require that the scope of rehabilitation work and
2
Nonprofit, CHDO, or public housing authority will be required to repay PJ/CITY
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replacement reserves deposits must be sufficient to ensure the useful life of
essential building components throughout period of affordability. For
homeownership housing, major systems must have a useful life of at least five
years upon project completion. [§92.251(b)(ii) and (viii)]
3.
PJ/CITY must develop inspection policies and procedures, including I initial
inspections of properties to be rehabilitated or acquired to determine the
necessary scope of work to bring each property up to applicable standards; and
progress and final inspections for all new construction and rehabilitation projects
to ensure projects are constructed according to approved plans. HUD will issue
guidance to identify for PJ/CITY the minimum required inspectable elements
based on the Uniform Physical Conditions Standards. [§92.251(g)]
COST ALLOCATION REQUIREMENTS
Allocating Eligible Costs and Identifying HOME-Assisted Units in Multi-Unit HOME Rental and
Homeownership Development Projects
Cost allocation is required in any HOME rental or homebuyer project where fewer than 100% of units are
HOME-assisted (e.g., a mixed-income project); and/or in which less than 100% of the space is residential
(e.g., a mixed-use project). In addition, cost allocation is required for a 2-4-unit property in which one of
the units is occupied by the owner and fewer than 100% of the units will be HOME-assisted.
Cost allocation is not required for single unit properties, or in cases where a multi-unit project is
exclusively residential and 100% of units will be HOME-assisted. However, in all HOME projects, a
PJ/City must ensure that the amount of HOME funds invested does not exceed the lesser of the total
HOME eligible costs per unit and the maximum per-unit HOME subsidy.
CHDO Qualification and Capacity Requirements
To qualify as a CHDO, a nonprofit must have paid staff whose experience qualifies them to
undertake CHDO set-aside activities. Capacity cannot be demonstrated by use of a consultant,
except in the first year that a CHDO becomes certified. [§92.2 Community housing development
organization]
1. Each time the PJ/CITY commits HOME funds, it must re-certify a nonprofit’s
qualifications to be a CHDO and its capacity to own, sponsor, or develop
housing. [§92.300(a)]
2. The roles of owner, developer, and sponsor for CHDOs using set-aside
funds are more specifically defined. Among other changes, the 2013 Rule
permits a PJ/CITY to provide CHDO set-aside funds for a CHDO that owns rental
housing that it does not develop. [§92.300(a)(2)(6)]
3.
Applicants wishing to be considered for CHDO certification may request a
CHDO application from the City.
Long-Term Viability of Rental Projects
During the affordability period, PJ/CITY must examine the financial condition of projects with 10 or
more HOME-assisted units at least annually, and must act where feasible to correct problems that
threaten a project’s financial viability. [§92.504(d)(2)
Application Process:
A separate application is required for each project or program seeking CDBG or HOME assistance.
Applications must be typed and page numbered (example: Page 1 of 7). Applications must be 3-
hole punched for inclusion in a standard three (3) ring binder. Please simply bind the
application with a binder clip. Staff will compile all applications into three-ring binders for review and
evaluation by the Community Development Advisory Committee (CDAC).
Applicants must submit one (1) original, nine (9) copies and one electronic copy (on a Flash
Drive). The original copy must contain original signatures. Applications not meeting these
requirements will not be considered complete and will not be accepted by the Grants
Administration Office and will not be forwarded to CDAC or City Council for consideration.
Note: Only one copy of the Audits is required.
All applications must be received by the Grants Administration Office no later than 4:00 PM on
Wednesday, February 3, 2021. Official postmarks are not acceptable. It is the responsibility of the
applicant to meet the delivery date and delays by delivery services are not an acceptable justification
for being late. Applications will not be accepted by the Grants Administration Office after the above
date and time. THERE WILL BE NO EXCEPTIONS.
IF AT ANYTIME DURING THE COMPILATION AND PREPARATION OF THE GRANT
APPLICATION ANYONE HAS QUESTIONS REGARDING THE CONTENTS AND/OR
REQUIREMENTS ON THIS APPLICATION, PLEASE CONTACT MELVA WALKER, GRANTS
MANAGER, AT (434) 455-3916 OR ANGIE SHEPARD, PROGRAM COORDINATOR, AT (434) 455-
3913 OR EMAIL AT: melva.walker@lynchburgva.gov OR angie.shepard@lynchburgva.gov
.
Mailing Address
City of Lynchburg
Grants Administration Office
ATTN: Grants Manager
900 Church Street
Lynchburg, VA 24504
Office Location
City Hall
900 Church Street
City Hall, Second Floor
Lynchburg, VA 24504
434-455-3913
E-Mail
melva.walker@lynchburgva.gov
angie.shepard@lynchburgva.gov
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SUBMISSION REQUIREMENTS
Application must be in WORD/PDF format. Handwritten applications will not be considered for
funding.
Requirements Documentation
1. The applicant:
a. City Department
b. must be a public housing authority;
c. nonprofit agency submitting a
neighborhood project/public service activity
must have a city department sponsor
d. must have nonprofit status for at least one
(1) full year, or
e. must have two (2) full years of operating
experience under another nonprofit entity, or
f. is a for-profit entity proposing to use funds
for an economic development activity that will
provide for jobs creation and/or retention and
be located in a CDBG-targeted area.
A copy of a 501© (3) designation letter from
the Internal Revenue Service (Nonprofits Only)
2. The nonprofit must be registered to
conduct business in the State of Virginia at
the time of the application.
A current certification from the VA Secretary of
State. For assistance, call 1-866-722-2551 or go to
www.secretary.state.va.us/corporations
(Nonprofits
Only)
3. The nonprofit must have at least twelve
(12) months experience directly related to the
proposed project or program, or be partnered
with an entity that has such experience, or
have principal staff with such experience.
Letters of support are recommendedmaximum of
three (3)
4. The nonprofit/public housing authority
must have audited financial statements
prepared by a qualified accountant or
accounting service, covering the last twenty-
four (24) months of operation. Copies of the
audited financial statements must be
submitted with the application and should not
be older than twelve (12) months. Audit
findings may make the applicant ineligible to
receive funding consideration.
One (1) copy of each audited financial
statement that meets the criteria described.
Include management letter.
5. Nonprofit agencies and the public housing
authority must have an active Board of
Directors documented by submitting an
attendance list at board meetings for the
previous 12 months and must submit a Board
membership list and contact information for
Board members with their application.
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6. All applicants must agree to abide by all
policies, regulations, ordinances, or statutes
as required by HUD and/or the City of
Lynchburg.
A signed statement by the Board Chairman or
Executive Director and/or City Department Director
that the agency acknowledges its responsibilities.
7. All applicants must complete ALL
elements of Part A and Part B of the
application.
Completed Part A and Part B.
8.Applications must be signed by the
Department Director, Chair or President of
the Board of Directors or Executive Director.
Important Information Relative to Application
This is a competitive application process for limited funding. Applicants that meet the
minimum criteria are not guaranteed an award.
NOTE: FISCAL YEAR 2022 NEIGHBORHOOD ASSOCIATION/NONPROFIT
APPLICANTS: NEIGHBORHOOD ASSOCIATION/NONPROFIT APPLICANTS MUST
PARTNER WITH A CITY DEPARTMENT THAT CAN SUPPORT THE PROPOSAL
AND CAN ASSIST WITH THE OVERALL ADMINISTRATION AND MONITORING OF
THE PROJECT IN ACCORDANCE WITH HUD REGULATIONS.
NOTE: LYNCHBURG REDEVELOPMENT AND HOUSING AUTHORITY (LRHA)
IS NOT A CITY DEPARTMENT.
NOTE: INDIVIDUAL PERSONS CANNOT SUBMIT AN APPLICATION. FUNDS
ARE PROVIDED TO CITY DEPARTMENTS, PUBLIC HOUSING AUTHORITY AND
NON-PROFIT/FOR-PROFIT AGENCIES.
1. Successful applications may be funded for less than the amount requested.
2. Fundi
ng provided by this process will be awarded for the FY 2022 which begins July 1, 2021
and ends June 30, 2022. However, no contracts can be executed until the City has
completed the necessary environmental assessments, executed funding agreements wi
th
HUD, and approval has been received from City Council. The City generally receives its
funding agreement from HUD in August or September.
3. A
gencies that are currently receiving CDBG and/or HOME funds from the City, w
ho
a
re also applying for FY 2022 CDBG/HOME funds, must be following all terms of
their current written agreement and must not have any outstanding audit findings,
monitoring findings or concerns as determined by the City or HUD.
4. Nonprofit agencies and the public housing authority must have an active Board of
Directors documented by submitting an attendance list at board meetings for the previous
Failure to provide a complete application will result in disqualification from consideration
for funding.
16
12 months and must submit a Board membership list and contact information for Board
members with their application.
5. Applications must be signed by the Department Director, Chair or President of the
Board
of Directors or Executive Director.
Note: Nonprofit agency: Please submit the minutes of the meeting authorizing
the submittal of this application.
6. Applications must be in WORD/PDF format. Handwritten applications will not be considered for
funding.
7. All appl
ications must be bound with binder clips and 3-hole punched for easy insertion into a
3-ring binder by Grant staff.
8. Each applicant must submit one original and nine (9) copies of their application. Original
copies must contain original signatures and not duplications. Each application must be
accompanied by an electronic copy on a Flash Drive. (Application forms must be a
WORD/ PDF Document. Attachments may be in WORD/ PDF.)
9. An
electronic copy of the application (PDF Document) is posted on the Grants
Administration website at: http://www.lynchburgva.gov/grants-administration.
10. For additional information on the Community Development Block Grant Program or HOME
Investment Partnerships Program, visit the HUD Exchange website at:
www.hudexchange.info/
11. For additional information regarding this application, please contact Melva Walker, Grants
Manager, at (434) 455-3916 or Angie Shepard, Program Coordinator at (434) 455-3913.
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PART A: APPLICANT AND AGENCY BACKGROUND
1. Funds Requested: CDBG HOME
2. Organization Information:
Organization Name: ____________________________________________________
DUNS Number: ________________________________________
(Dun & Bradstreet, Inc. provides this number at no charge and is required for federal
funding recipients; DUNS number can be obtained at www.dnb.com)
Federal Tax ID: _____________________________________________
Project Name: _____________________________________________________________
Project Contact Person: _____________________________________________________
Mailing Address: ___________________________________________________________
Phone: __________________ Fax: __________________ Email: _________________________
Is your organization incorporated? (include applicable attachments)
Yes
No
Is your organization: (include applicable attachments)
Name & Title of Application Preparer: ________________________________________
Check the type of activity that best describes your project:
Housing Authority Neighborhood Association City Department Nonprofit Organization
Project/Program Name: _____________________________________________
Total Project/Program Cost: _________________________________________
Please
Specify the Type and Amount of Funding Requested:
CDBG: ____________________ OR HOME: ____________________
(A
mount of funding requested) (Amount of funding requested)
I. APPLICANT INFORMATION
II. TYPE OF PROJECT
III. PROJECT, SERVICE, OR ACTIVITY INFORMATION
A government entity
Yes
No
A non-profit with approved Federal tax-exempt certification?
Yes
No
A for-profit business
Yes
No
18
Percentage of CDBG or HOME investment (Total Project Cost/Amount Requested):
The City reserves the right to fund projects out of either Program as projects are eligible.
Please list all CDBG or HOME funding awarded by the City of Lynchburg in the past five years.
Complete for all awards that have been completed/closed out:
Fiscal
Year
Awarded
Project/Program
Name
Award
Amount
Date
Project/Program
Completed
Remaining CDBG or
HOME Funding as of
December 31, 2020
Complete only if Project/Program are In Progress or Not yet Started (not yet completed):
Fiscal
Year
Awarded
Project/Program
Name
Award
Amount
Anticipated
Completion Date
Remaining CDBG or
HOME Funding as of
December 31, 2020
Project/Program
Name (from table
above)
Explain why funds remain and what the timetable is for
spending remaining funds
IV. PAST CITY SUPPORT
19
V. AGENCY INFORMATION
Accomplishments in the Current Fiscal Year
Describe project progress in the current fiscal year (FY 2021) and for prior year's
projects funded by CDBG or HOME. Emphasize measurable outcomes and project
benefit to the community.
Fiscal Year 2021
Objectives
Fiscal Year 2021
Accomplishments to Date
# of
Units
# of
Clients
# of
Other
1. What is your City Department/Agency’s mission statement?
2. How long has the City Department/Agency existed in its current form?
3. How long has the Agency had its 501(c) (3) status?
4. Ho
w many years has the City Department/Agency conducted the project/program for which it is
requesting funding?
5. List all other CDBG or housing related programs managed by the City Department/Agency.
6. Ha
s your agency received an independent audit conducted by a Certified Public Accountant?
Yes
No
If so, what is the name of your auditor?
What was the time period (fiscal year) being reviewed?
N
OTE: A copy of audited financial statements that demonstrate the following must be attached to
the application submission:
The applicant has audited financial statements prepared by a qualified accountant or accounting
service, covering the last twenty-four (24) months of operation. Applicants receiving $750,000 or
more in Federal funds must provide an organization-wide audit; applicants receiving less than
$750,000 in Federal funds must provide a copy of a program-specific audit.
20
Please submit a copy of Agency’s budget for the current fiscal year (July 1, 2020 - June
30, 2021) or current calendar year (January 1, 2021 - December 31, 2021).
VI. FY 2021 AGENCY OPERATING BUDGET
21
PART B: CDBG or HOME PROJECT DETAIL INFORMATION
1. Provide a concise description of proposed project or program for which you are requesting
CDBG or HOME Program investment funds. Include the clients to be served, how additional
services will be provided as a result of this funding, or if an existing service will be discontinued
without funding.
2. Select the proposed Accomplishment Type from the list below and provide the number of
people, housing units, public facilities, etc. the project will serve.
Accomplishment
Type
Projected number of Accomplishment Type to be served
People
Housing Units
Organizations
Public Facilities
Jobs
Before completing this section, please refer to the Introduction Section on Pages 6-8, for
information regarding the Annual Action Plan goals and HUD National Objectives. All CDBG
projects and programs must meet one of the stated HUD National Objectives.
Please select the criteria your project/program will satisfy to meet this national objective.
Area Benefit - Activity provides benefit to an area where at least 51% of its residents are low-
to-moderate-income (LMI). The service area is primarily residential, the project/program meets
LMI needs, and income levels are documented by the U.S. Census or an approved substitute.
If your project/program will only be available to residents and/or businesses in a defined
area, please provide the following:
1. C
ensus tract(s) and block groups in which the project/program will be provided
2. The most recent demographic data related to income and ethnic composition of
the target area. Please indicate the proportion of the service area that is low- to-
moderate income.
3. A map of your service area that clearly delineates the boundaries and includes
street names.
Note: The entire City of Lynchburg cannot be deemed a service area for the purpose of meeting
these criteria.
Limited Clientele (activity benefits a limited number of persons whereby at least 51% are low-
to-moderate-income (LMI}). Some persons are presumed to be LMI {i.e., abused children, elderly-
I. PROGRAM DESCRIPTION
II. ELIGIBILITY- CDBG
22
age 62, homeless}, or assistance may be provided to LMI persons owning or developing micro-
enterprises; or the project/program is a job training or placement activity.
Please describe the steps your agency will take to document that 51% of the clients served are
low- to moderate-income.
Housing (activity provides or improves residential structures to be occupied by low-to-
moderate income (LMI) persons). At least 51% of units must be occupied by LMI.
Please describe the following:
1. Steps your agency will take to document that 51% of the units are occupied by low- to
moderate-income persons:
2. The tools used
to market your housing units:
3. How affordability of the units is maintained.
Jobs (activity creates or retains jobs). At least 51% of the jobs must be held by or available to
low-to-moderate income (LMI) persons.
1. Please describe the steps your agency will take to ensure and document that at least 51%
of the jobs will be held or retained by LMI persons.
1. Provide documentation that activity is within a designated slum or blighted area or will
meet the criteria for a “spot blight” activity.
Level of Service (if applicable): CDBG regulations require Public Service projects to either be a
new service or a quantifiable expansion of service from the previous year.
1. Is your program a new service in the community? What other programs similar to yours
currently exist in the community?
2. Describe how your program will provide a quantifiable increase in the
level of service over
what was provided in the last fiscal year?
Prevention/Elimination of Slums or Blight To qualify under these objective activities are
either clearly eliminating objectively determinable signs of slums or blight in a designated slum
or blighted area or are limited to eliminating specific instances of blight outside such an area
(“spot blight”).
23
ELIGIBILITY- HOME
Homeowner Rehabilitation: Assistance for existing owner occupants with the repair,
rehabilitation or reconstruction of their homes.
Homebuyer Activities: Acquisition and/or rehabilitation or new construction of homes for
homebuyers.
Rental Housing: Affordable rental housing may be acquired and/or rehabilitated, or
constructed
Explain the need
your project/program will address and explain how your project/program will
alleviate that need. Answer the following questions:
1.
What specific goal identified in the FY 2022 Annual Action Plan Goals will your project/program
address (See Pages 6 -7)?
2.
Please quantify the nature and extent of the problem you propose to address. Please include
supporting data.
3.
List and describe any studies and/or Census data and/or market data used to determine that
the problem requires action now.
III. PROGRAM NEED
Complete the following tables to the best of your ability. Show numbers
of clients, not percentages, in each category. Current income limits are
on Page 30 (Attachment 1).
1. Please indicate whether this project/program will serve: Persons or Households
Table 1
Number of Persons or Households Served, by Income Group
Fiscal Year
July 1 June 30
<30% of
median
31-50% of
median
51-80% of
median
Total
2019/2020 (actual)
2020/2021 (projected)
2021/2022 (target)
Table 2
Number of Special Needs Clients
Fiscal Year
July 1 June 30
Elderly
(over age
62)
Disabled
(not
elderly)
HIV/AIDS
Homeless
2019/2020 (actual)
2020/2021 (projected)
2021/2022(target)
Table 3
HOME Projects - 5 or more Units - At least 20% of the HOME-assisted units must be
occupied by low-income families (households earning below 50% of Area Median Income)
and meet one of the following rent requirements:
Fiscal Year
July 1 June
30
Rent does not exceed 30
percent of Annual Income of
a family whose income
equals 50 percent of the
Area Median Income (AMI)
Rent does not exceed 30
percent of the family’s
Adjusted Income
2019/2020 (actual)
2020/2021 (projected)
2021/2022(target)
24
IV. TARGET POPULATION
Briefly describe the neighborhood to be served, highlighting such items as: population to be
served, housing conditions, median household income, neighborhood strengths/weaknesses and
describe the metrics that will be used to measure neighborhood improvement.
Describe how the City department or agency has involved the community/neighborhood in the
development of this application. Have you presented the proposed program to the affected
neighborhood association and/or Board of Directors of agency for consideration? Have you
pr
esented the proposed program to any other organizations? Please provide documentation.
Description of community/neighborhood involvement:
Presented proposed program to affected neighborhood association?
Yes
No
If “yes”, please explain (date, name of association, number of persons attending, outcome of
meeting, etc.):
25
1. How, specifically, will your program address the identified problem? Provide evidence
that the
proposed program or project will mitigate the identified problem.
2. List all sources pursued to support your project/program. Include the amounts requested from
each source.
1. Provide the name and title of the individual(s) responsible for the oversight and management of
this project/program.
2. What is your City department/agency’s history/experience in completing similar programs or
projects? Please quantify how successful your organization has been in conducting these
programs or projects, (i.e. taught 12 homebuyer education courses to 120 individuals in
FY 2021.Twenty of the participants became homeowners within 6 months of completion
of the course.)
Yes
No
Presented proposed program to agency Board of Directors?
If “yes”, please explain (date of meeting, outcome of presentation):
V. PROGRAM/PROJECT RATIONALE
VI. ORGANIZATIONAL CAPACITY
VII. COMMUNITY INVOLVEMENT
26
Presented proposed program to any other organizations or City Departments? Yes No
If “yes”, please explain (date, name of association, number of persons attending, outcome of
meeting, etc.)
HUD requires participation in a performance measurement system to better assess the
effectiveness and impact of its programs. This system is required for all federal programs
and enables HUD and its grantees to capture program accomplishments and track national
trends. Each applicant must select one objective and one outcome to produce what HUD
describes as an outcome statement, all of which are driven by local intent.
Please select the most appropriate objective for your project/program. In selecting
the objective, consider the “purpose” of the project or program for which you are
seeking federal funds.
Create suitable living environments these activities are designed to benefit
communities, families, or individuals by addressing issues in their living environment. This
objective relates to activities that are intended to address a wide range of issues faced by
low- and moderate-income persons, from physical problems with their environment, such as
poor-quality infrastructure, to social issues such as crime prevention, literacy or elderly
health services.
Provide decent housing these activities cover a wide range of housing activities
generally completed with HOME and CDBG funds. This objective focuses on activities
whose purpose is to meet the individual family or community housing needs. It does not
include programs where housing is an element of a larger community-wide improvement,
since such programs would be more appropriately reported under suitable living
environments.
Create economic opportunities applies to activities related to economic development,
commercial revitalization, or job creation.
AND
Please
select the most appropriate outcome for your project/program. In selecting an
outcome, consider “the type of change or result your project/program is seeking.”
Availability/Accessibility applies to activities that make services, infrastructure, public
services, public facilities, housing, or shelter available or accessible to low- and moderate-
income people, including persons with disabilities. In this category, accessibility does not
refer only to physical barriers, but also to making the basics of daily living available and
accessible to low- and moderate-income people where they live.
Affordability applies to activities that provide affordability in a variety of ways to low-
and-moderate-income people. It can include the creation or maintenance of affordable
housing, basic infrastructure hookups, or services such as transportation or day care.
Affordability is appropriate whenever an activity is lowering the cost, improving the quality,
or increasing the affordability of a product or service to benefit a low-income household.
Sustainability applies to activities that are aimed at improving communities or
neighborhoods, helping to make them livable or viable by providing benefit to persons of
VIII. PERFORMANCE MEASURES
27
low- and moderate-income or by removing or eliminating slums or blighted areas, through
multiple activities or services that sustain communities or neighborhoods.
Program Outcomes
These two factors combined, will produce an “outcome statement” (Objective + Outcome =
Outcome Statement). For example, if the Objective selected is “Suitable Living
Environment” and the Outcome selected is “Affordability,” then the Outcome Statement
should be “Affordability for the purpose of creating suitable living environments”. An
outcome statement for your specific project/program might read, “In FY 2021 Nonprofit ABC
assisted 150 households by providing down payment and closing cost assistance for the purpose
of making homeownership affordable to 25 families.”
Outcome 1:
Availability/Accessibility
Outcome 2:
Affordability
Outcome 3:
Sustainability
Objectives
Objective #1:
Suitable Living
Environment
Accessibility for the
purpose of creating
Suitable Living
Environments
Affordability for
the
purpose of
creating
Suitable Living
Environments
Sustainability for
the purpose of
creating
Suitable Living
Environments
Objective #2:
Decent
Housing
Accessibility for the
purpose of providing
Decent Housing
Affordability for
the
purpose of
providing Decent
Housing
Sustainability for
the purpose of
providing
Decent Housing
Objective #3:
Economic
Opportunity
Accessibility for the
purpose of creating
Economic Opportunities
Affordability for
the
purpose of
creating
Economic
Opportunities
Sustainability for
the purpose of
creating
Economic
Opportunities
What will your “outcome statement” be?
Please also provide at least one measure of success for your project or program. For example,
75% of the individuals participating in the homebuyer counseling classes will purchase a home
within 6 months of course completion.
28
What is the cost to deliver your project or program? List each project/program element in
the table below, including the cost of each element, the quantity and unit of measure, and
the subtotal for each element. Where necessary, allocate costs to the use of shared space,
vehicles or equipment.
Example
Program: Credit Counseling Class
Cost Elements
Cost ($)
Quantity/Unit of Measure
Subtotal
($)
Credit Counseling Teacher
in class
$25
96 hours (8 hrs./month x
12 months)
$2,400
Credit Counseling
Teacherclass prep
$25
48 hours (4 hrs./month x
12 months)
$1,200
Credit Counselorone-on-
one
$20
120 hours (10 hrs./month
x12 months
$2,400
Materials
$25
120 course packets/credit
reports
$3,000
Total
$9,000
Complete the table below for the project/program for which you are requesting CDBG or
HOME funds.
Project or Program Name:
Cost Elements
Cost ($)
Quantity/Unit of
Measure
Subtotal ($)
Total
IX. PROJECT/PROGRAM COST AND BUDGET
29
Complete the following “Project/Program Source and Use Budget” by listing each cost
affiliated with the project/program for which you are requesting CDBG or HOME funds. Do
not include funds that have been applied for, but not yet awarded.
A. Use of Funds
List all expenses
included in your
project / program
budget
B. Total Project /
Program Cost
List the cost of
each Expense
C. Sources
List all
sources of
funds you will
receive for
Fiscal Year
2021 for this
project
D. FY 2020-2021
Award Amount
List the funding
being provided by
each source listed
in Column C
E. Gap
Financing
CDBG or
HOME funds
being
requested for
each cost
Example:
Postage
$1,000
United
Way
$500
$500
X. PROJECT/PROGRAM SOURCE AND USE BUDGET
30
Income Limits
Attachment 1
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD) FY 2020 MEDIAN FAMILY INCOME CHART
FOR THE CITY OF LYNCHBURG, VIRGINIA
Median
Income
(MSA)
FY 2020
Income
Limit
1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
7
Person
8
Person
$72,400
Very Low
(50%)
$25,350
$29,000
$32,600
$36,200
$39,100
$42,000
$44,900
$47,800
Extremely
Low (30%)
$15,200
$17,400
$19,550
$21,700
$23,450
$25,200
$26,950
$28,650
Low (80%)
$40,550
$46,350
$52,150
$57,900
$62,550
$67,200
$71,800
$76,450
(60%)
$30,420
$34,800
$39,120
$43,440
$46,920
$50,400
$53,880
$57,360
Ef
fective 07/01/2020
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD) 2020 ADJUSTED HOME INCOME LIMITS
FOR THE CITY OF LYNCHBURG, VIRGINIA
Program
1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
7
Person
8
Person
30% Limits
$15,200
$17,400 $19,550
$21,700 $23,450 $25,200 $26,950 $28,650
Very Low
Income
$25,350
$29,000 $32,600 $36,200 $39,100 $42,000 $44,900 $47,800
60% Limits
$30,420
$34,800
$39,120
$43,440
$46,920
$50,400
$53,880
$57,360
Low
Income
$40,550
$46,350 $52,150 $57,900 $62,550 $67,200 $71,800 $76,450
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD) 2020 HOME PROGRAM RENTS
FOR THE CITY OF LYNCHBURG, VIRGINIA
Efficiency
1 BR
2 BR
3 BR
4 BR
5 BR
6 BR
Low HOME Rent
Li it
630
676
815
941
1050
1158
1267
High HOME Rent
Li it
630
676
821
1106
1308
1424
1541
Fair Market Rent
630
676
821
1106
1339
1540
1741
50% Rent Limit
633
679
815
941
1050
1158
1267
65% Rent Limit
804
863
1037
1190
1308
1424
1541
NOTE: Lynchburg City is part of the Lynchburg, VA MSA, so all information presented here applies to all of
the Lynchburg, VA MSA. The Lynchburg, VA MSA contains the following areas: Amherst County, VA;
Appomattox County, VA; Bedford County, VA; Campbell County, VA; and Lynchburg City, VA.