NOTICE OF FUNDING AVAILABILITY
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAMS

Notice of Funding Availability (NOFA):

The City and County of Honolulu (City), through its Department of Budget and Fiscal Services, is soliciting applicationsfrom City agencies and qualified private nonprofit agencies for federal funding from the City’s CDBG and HOME Programs for Fiscal Year 2018. The City anticipates that it will award up to $5.9 million in CDBG funds and up to $3 million in HOME funds to Agencies in Fiscal Year 2018. The exact amount of funds that will be available are subject to adjustment by the U.S. Department of Housing and Urban Development (HUD).  The City is seeking projects that will enable it to achieve the goals and objectives published in its Consolidated Plan for Fiscal Years 2016-2020. The Consolidated Plan is available for viewing at:
http://www.honolulu.gov/rep/site/bfs/bfs_docs/2015_Consolidated_Plan_and_First_Year_Action_Plan.pdf.

Submission deadline:

All agencies must submit their CDBG/HOME funding applications to the Division of Purchasing by 4:00 p.m., Thursday, March 30, 2017 as evidenced by a date and time stamp from the Division of Purchasing. The Division of Purchasing is located at Honolulu Hale, 530 South King Street, Room 115, Honolulu, Hawaii.

Subsequent Schedule:

March-April 2017 City staff review period.

April 2017 Selection Committee review and selection period.

April to May 2017 Action Plan preparation, public comment, and City Council approval period,  including listing of selected project proposals for submittal to HUD for   approval.

August 2017 Anticipated availability of Fiscal Year 2018 CDBG and HOME funds.

To submit a CDBG and/or HOME funding application:

o Obtain the NOFA and funding applications on the Division of Purchasing website:
http://www4.honolulu.gov/bfspurchasingbids/main/vueOpenBids.asp?sType=G
o You may also pick up these forms in person at the Division of Purchasing at the above address.
o Complete the CDBG and/or HOME funding applications, including all required attachments.
o Return the completed funding application(s) by the submission deadline.

Description of CDBG Program:

Projects that are funded in the CDBG program must address the CDBG program’s primary objective, which is the "...development of viable urban communities, by providing decent housing and suitable living environments and expanding economic opportunities principally for persons of low- and moderate-income."

Eligible CDBG activities include:

o Acquisition of real property.
o Disposition of real property.
o Acquisition, construction, reconstruction, rehabilitation or installation of public facilities.
o Clearance, demolition and removal of buildings and improvements.
o Provision of public services provided it is a new service or a quantifiable increase in a service now being provided and does not exceed 15 percent of the City’s entitlement grant.
o Rehabilitation of privately owned buildings and low-income public housing.
o Removal of material and architectural barriers restricting mobility of elderly and handicapped persons.
o Planning activities.
o Historic preservation.
o Economic development.
o Payment of reasonable administrative costs and carrying charges related to the planning and execution of community development activities.

Activities that are ineligible for CDBG funding include, but are not limited to, the following:

o Buildings for the general conduct of government.
o General government expenses.
o Political activities.
o Purchase of equipment unless as part of an economic development activity or when necessary for use by a recipient or subrecipient in the administration of activities assisted with CDBG funds.
o Operating and maintenance expenses.
o New housing construction unless carried out by a Community Based Development Organization (CBDO).
o Income payments for housing or any other funds.
o Religious activities.

The City may provide CDBG funds to a Community-Based Development Organization (CBDO) that is qualified to carry out certain CBDO activities such as neighborhood revitalization, community economic development, energy conservation, or new housing construction projects in an approved Neighborhood Revitalization Area. Applicants need not be CBDOs to apply for CDBG funding from the City; however, only applicants that are already certified as CBDOs by the City will be granted CDBG funds to carry out CBDO activities.

Description of HOME program:

The HOME program is generally intended to:

o Expand the supply of decent and affordable housing, particularly rental housing, for low and very low income Americans.
o Strengthen the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing.
o Provide both financial and technical assistance to participating jurisdictions, including the development of model programs for affordable low-income housing.
o Extend and strengthen partnerships among all levels of government and the private sector, including for- profit and nonprofit organizations, in the production and operation of affordable housing.

In general, HOME funds may be used to pay the following eligible costs:

o Development hard costs defined as the actual cost of constructing or rehabilitating housing.
o Acquisition costs.
o Related soft costs defined as other reasonable and necessary costs incurred and associated with the financing, or development (or both) of new construction, rehabilitation or acquisition of housing assisted with HOME funds.
o Costs related to tenant-based rental assistance.

Activities that cannot be funded with HOME funds include, but are not limited to, the following:

o Provide a project reserve account for replacements, a project reserve account for unanticipated increases in operating costs, or operating subsidies.
o Provide tenant-based rental assistance for the special purpose of the existing Section 8 program or preventing displacement for projects assisted with rental rehabilitation grants.
o Provide non-federal matching contributions required under any other Federal program.
o Provide assistance authorized under Part 965 (PHA-Owned or Leased Projects - Maintenance and Operation).
o Carry out activities authorized under Part 968 (Public Housing Modernization).
o Provide assistance to eligible low income housing under Part 248 (Prepayment of Low Income Housing Mortgages).
o Provide assistance (other than tenant-based rental assistance or assistance to a first-time homebuyer to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the City. However, additional HOME funds may be committed to a project up to one year after project completion, but the amount of HOME funds in the project may not exceed the maximum per unit subsidy amount.
o Pay impact fees.

The City will set aside no less than fifteen percent (15%) of its annual HOME allocation from HUD for use by Community Housing Development Organizations (CHDOs). Organizations need not be CHDOs to apply for HOME funds; however, only organizations that are certified as CHDOs by the City are eligible for CHDO set-aside funding.

Questions may be directed to 768-3934 or by email to .(JavaScript must be enabled to view this email address).

  Nelson H Koyanagi, Jr., Director
    Department of Budget and Fiscal Services
  By order of KIRK CALDWELL, MAYOR

(SA967612     2/28/17)~