Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Except for ED OTC activities, individual activity types will be evaluated against other activities of the same type. Where demand for a particular activity exceeds the amount of funds available, the applications for that activity shall be rated and ranked according to the rating criteria set forth in this Section. Activities will be funded in rank order, with the highest rated activities within each activity type funded first until all funds allocated for that activity, pursuant to Section 7076, have been awarded
(b) Applications may be submitted for Planning and Technical Assistance as the sole activity or in combination with other eligible activities. Applications submitted for Planning and Technical Assistance in combination with other eligible activities shall be eligible for funding only if at least one eligible activity is funded. The amount of funds available for Planning and Technical Assistance, as announced in the NOFA, shall be allocated between sole PTA applications and PTA applications submitted in combination with other eligible activities based on the relative amount requested. Applications will be ranked, if needed, per Section 7078(d)(7) to resolve a tie-breaker
(c) In the event there are insufficient funds to fund an applicant's whole activity, the applicant may be offered the amount of funds available, provided it is sufficient to complete the activity.
(d) Applications for each eligible activity shall be evaluated on one or more of the following criteria:
(1) Homeownership Assistance (HA) and Housing Rehabilitation (HR)
| (A) NEED and BENEFIT: | Up to 400 points |
The Department will assign points based on the seriousness of the locality's community development needs, and the impact the program will have on those needs using the following criteria:
| 1. Need: (250 out of 400 points) | |
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| i. Overcrowding (both HA and HR) | 125 |
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| ii. Home Ownership Rate (HA) or |
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| iii. Age of Housing Stock (HR | 125 |
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| 2. Benefit (150 out of 400 points) |
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| i. Low-Mod Percentage | 100 |
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| ii. Poverty Percentage | 50 |
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| (B) READINESS: | Up to 300 points |
Readiness of the proposed activity as demonstrated by an activity implementation plan, local government approvals, design progress, and sufficient funding to complete the project as applicable. Readiness points will be based on:
| 1. Activity Specific Operator Experience | Up to 150 |
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| 2. Program Guidelines | 100 |
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| 3. Waiting List of Pre-Screened Applicants | 50 |
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| (C) CAPACITY: | Up to 200 points |
Capacity to implement the proposed activity, as demonstrated by performance, including timeliness of clearance of Special Conditions, reporting and cooperation in clearing audit and monitoring findings.
Capacity points based on:
| 1. Timely Clearance of Special Conditions | 60 |
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| 2. In-House Organizational Capacity for General Administration and Program Oversight | 40 |
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| 3. Reporting Points (point deductions for missing reports) | 70 |
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| 4. Cooperation/Compliance in Clearing Audit or Monitoring Findings | 30 |
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| (D) STATE OBJECTIVES: | Up to 100 points |
1. The Department may award an application up to 100 points for addressing one or more state objectives as identified in the annual CDBG NOFA.
2. Department selection of state objectives shall be based on one or more of the following:
i. Emergent circumstances such as natural disaster or economic dislocation.
ii. Imbalance among the types of activities funded in prior years' awards such as housing rehabilitation programs compared to public infrastructure projects.
iii. Imbalance in the geographic distribution of funds in prior years' awards.
iv. Imbalance in the population served in prior years' awards such as smaller jurisdictions compared to larger jurisdictions, general program beneficiaries compared to special needs groups such as farm workers, under-trained work force, or historically unsuccessful or inactive applicants compared to active, successful applicants.
v. Federal funding priorities as publicly announced by HUD.
vi. Housing and community development needs or objectives identified in the annual Consolidated Plan required by HUD.
(2) Multi-Family Housing Acquisition, Rehabilitation or Acquisition/Rehabilitation
| (A) NEED and BENEFIT: | Up to 400 points |
The Department will assign points based on the seriousness of the locality's community development needs, and the impact the program will have on those needs using the following criteria:
| 1. Need: (250 out of 400 points) | |
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| i. Overcrowding | 125 |
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| ii. Rental Vacancy Rate | 125 |
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| 2. Benefit (150 out of 400 points) |
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| i. Low-Mod Percentage | 100 |
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| ii. Poverty Percentage | 50 |
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| (B) READINESS: | Up to 300 points |
Readiness of the proposed activity as demonstrated by an activity implementation plan, local government approvals, design progress, and sufficient funding to complete the project as applicable. Readiness points will be based on:
| 1. Activity Specific Operator Experience | Up to 200 |
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| 2. All Funding In Place | 75 |
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| 3. Site Control | 25 |
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| (C) CAPACITY: | Up to 200 points |
Capacity to implement the proposed activity, as demonstrated by performance, including timeliness of clearance of Special Conditions, reporting and cooperation in clearing audit and monitoring findings. Capacity points based on:
| 1. Timely Clearance of Special Conditions | 60 |
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| 2. In-House Organizational Capacity for General Administration and Program Oversight | 40 |
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| 3. Reporting Points (point deductions for missing reports) | 70 |
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| 4. Cooperation/Compliance in Clearing Audit or Monitoring Findings | 30 |
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| (D) STATE OBJECTIVES: | Up to 100 points |
1. The Department may award an application up to 100 points for addressing one or more state objectives as identified in the annual CDBG NOFA.
2. Department selection of state objectives shall be based on one or more of the following:
i. Emergent circumstances such as natural disaster or economic dislocation.
ii. Imbalance among the types of activities funded in prior years' awards such as housing rehabilitation programs compared to public infrastructure projects.
iii. Imbalance in the geographic distribution of funds in prior years' awards.
iv. Imbalance in the population served in prior years' awards such as smaller jurisdictions compared to larger jurisdictions, general program beneficiaries compared to special needs groups such as farm workers, under-trained work force, or historically unsuccessful or inactive applicants compared to active, successful applicants.
v. Federal funding priorities as publicly announced by HUD.
vi. Housing and community development needs or objectives identified in the annual Consolidated Plan required by HUD.
(3) Public Facilities
| (A) NEED and Benefit: | Up to 400 points |
The Department will assign points based on the seriousness of the locality's community development needs, and the impact the program will have on those needs using the following criteria:
| 1. Need: (300 out of 400 points) | |
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| i. Severity of Problem | 125 |
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| ii. Extent of Solution | 125 |
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| iii. Third Party Documentation | 50 |
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| 2. Benefit (100 out of 400 points) |
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| i. Low-Mod Percentage | 50 |
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| ii. Poverty Percentage | 50 |
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| (B) READINESS: | Up to 300 points |
Readiness of the proposed activity as demonstrated by an activity implementation plan, local government approvals, design progress, and sufficient funding to complete the project as applicable. Readiness points will be based on:
| 1. Experienced In-House Staff and Ready to Start | Up to 100 |
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| 2. Project Approval Status | Up to 100 |
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| 3. Funding In Place | 75 |
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| 4. Site Control of Land or Project | 25 |
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| (C) CAPACITY: | Up to 200 points |
Capacity to implement the proposed activity, as demonstrated by performance, including timeliness of clearance of Special Conditions, reporting and cooperation in clearing audit and monitoring findings. Capacity points based on:
| 1. Timely Clearance of Special Conditions | 60 |
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| 2. In-House Organizational Capacity for General Administration and Program Oversight | 40 |
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| 3. Reporting Points (point deductions for missing reports) | 70 |
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| 4. Cooperation/Compliance in Clearing Audit or Monitoring Findings | 30 |
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| (D) STATE OBJECTIVES: | Up to 100 points |
1. The Department may award an application up to 100 points for addressing one or more state objectives as identified in the annual CDBG NOFA.
2. Department selection of state objectives shall be based on one or more of the following:
i. Emergent circumstances such as natural disaster or economic dislocation.
ii. Imbalance among the types of activities funded in prior years' awards such as housing rehabilitation programs compared to public infrastructure projects.
iii. Imbalance in the geographic distribution of funds in prior years' awards.
iv. Imbalance in the population served in prior years' awards such as smaller jurisdictions compared to larger jurisdictions, general program beneficiaries compared to special needs groups such as farm workers, under-trained work force, or historically unsuccessful or inactive applicants compared to active, successful applicants.
v. Federal funding priorities as publicly announced by HUD.
vi. Housing and community development needs or objectives identified in the annual Consolidated Plan required by HUD.
(4) Public Improvements (PI) and Public Improvements In Support of Housing New Construction (PIHNC)
| (A) NEED and Benefit: | Up to 400 points |
The Department will assign points based on the seriousness of the locality's community development needs, and the impact the program will have on those needs using the following criteria:
1. Need: (250 out of 400 points) (Note: An Applicant may only apply for PI as an eligible activity or PIHNC as an eligible activity; an Applicant cannot apply simultaneously for both PI and PIHNC activities. The 'Need' scoring criteria is different for PI and PIHNC activities. The 'Need' criteria for a PI activity is based solely on one factor: the seriousness of health and safety issues, for which a maximum of 250 points may be awarded. The 'Need' criteria for a PIHNC activity is based upon five factors which, when added together, allow a maximum of 250 points to be awarded.)
| i. PI: Seriousness of Health & Safety Issue Or (for a PIHNC activity) | 250 |
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| ii. PIHNC: Condition of Approval for PIHNC | 150 |
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| iii. PIHNC: Renter Overpayment | 25 |
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| iv. PIHNC: Vacancy Rate | 25 |
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| v. PIHNC: Overcrowding | 25 |
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| vi. PIHNC: Regional Housing Need Assessment (RHNA) Data | 25 |
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| 2. Benefit (150 out of 400 points) |
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| i. Low-Mod Percentage | 75 |
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| ii. Poverty Percentage | 75 |
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| (B) READINESS: | Up to 300 points |
Readiness of the proposed activity as demonstrated by an activity implementation plan, local government approvals, design progress, and sufficient funding to complete the project as applicable. Readiness points will be based on:
| 1. Experienced In-House Staff & Ready to Start | Up to 100 |
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| 2. Project Approval Status | Up to 100 |
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| 3. Funding In Place | 75 |
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| 4. Site Control of Land or Project | 25 |
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| (C) CAPACITY: | Up to 200 points |
Capacity to implement the proposed activity, as demonstrated by performance, including timeliness of clearance of Special Conditions, reporting and cooperation in clearing audit and monitoring findings. Capacity points based on:
| 1. Timely Clearance of Special Conditions | 60 |
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| 2. In-House Organizational Capacity for General Administration and Program Oversight | 40 |
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| 3. Reporting Points (point deductions for missing reports) | 70 |
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| 4. Cooperation/Compliance in Clearing Audit or Monitoring Findings | 30 |
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| (D) STATE OBJECTIVES: | Up to 100 points |
1. The Department may award an application up to 100 points for addressing one or more state objectives as identified in the annual CDBG NOFA.
2. Department selection of state objectives shall be based on one or more of the following:
i. Emergent circumstances such as natural disaster or economic dislocation.
ii. Imbalance among the types of activities funded in prior years' awards such as housing rehabilitation programs compared to public infrastructure projects.
iii. Imbalance in the geographic distribution of funds in prior years' awards.
iv. Imbalance in the population served in prior years' awards such as smaller jurisdictions compared to larger jurisdictions, general program beneficiaries compared to special needs groups such as farm workers, under-trained work force, or historically unsuccessful or inactive applicants compared to active, successful applicants.
v. Federal funding priorities as publicly announced by HUD.
vi. Housing and community development needs or objectives identified in the annual Consolidated Plan required by HUD.
(5) Public Services
| (A) NEED: | Up to 400 points |
The Department will assign points based on the seriousness of the locality's community development needs, and the impact the program will have on those needs using the following criteria:
| 1. Need: (300 out of 400 points) | |
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| i. Severity of Problem | 125 |
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| ii. Extent of Solution | 125 |
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| iii. Third Party Documentation | 50 |
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| 2. Benefit (100 out of 400 points) |
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| i. Low-Mod Percentage | 50 |
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| ii. Poverty Percentage | 50 |
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| (B) READINESS: | Up to 300 points |
Readiness of the proposed activity as demonstrated by an activity implementation plan, local government approvals, design progress, and sufficient funding to complete the project as applicable. Readiness points will be based on:
| 1. Operator Experience/Program Readiness | Up to 175 |
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| 2. Site Control of Facility for Service | 125 |
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| (C) CAPACITY: | Up to 200 points |
Capacity to implement the proposed activity, as demonstrated by performance, including timeliness of clearance of Special Conditions, reporting and cooperation in clearing audit and monitoring findings. Capacity points based on:
| 1. Timely Clearance of Special Conditions | 60 |
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| 2. In-House Organizational Capacity for General Administration and Program Oversight | 40 |
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| 3. Reporting Points (point deductions for missing reports) | 70 |
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| 4. Cooperation/Compliance in Clearing Audit or Monitoring Findings | 30 |
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| (D) STATE OBJECTIVES: | Up to 100 points |
1. The Department may award an application up to 100 points for addressing one or more state objectives as identified in the annual CDBG NOFA.
2. Department selection of state objectives shall be based on one or more of the following:
i. Emergent circumstances such as natural disaster or economic dislocation.
ii. Imbalance among the types of activities funded in prior years' awards such as housing rehabilitation programs compared to public infrastructure projects.
iii. Imbalance in the geographic distribution of funds in prior years' awards.
iv. Imbalance in the population served in prior years' awards such as smaller jurisdictions compared to larger jurisdictions, general program beneficiaries compared to special needs groups such as farm workers, under-trained work force, or historically unsuccessful or inactive applicants compared to active, successful applicants.
v. Federal funding priorities as publicly announced by HUD.
vi. Housing and community development needs or objectives identified in the annual Consolidated Plan required by HUD.
(6) Enterprise Fund:
| (A) NEED and BENEFIT: | Up to 400 points |
Need will be based on one or more of the following factors: Unemployment and poverty levels in the jurisdiction, and market analysis.
| 1. Need: | |
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| i. Unemployment | 100 |
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| ii. Market Analysis | 250 |
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| 2. Benefit |
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| i. Poverty Percentage | 50 |
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| (B) READINESS: | Up to 300 points |
Readiness factors will include: Program description, program organization and program operator's experience and performance. Readiness points will be based on:
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| 1. Program Description | 25 |
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| 2. Program Operator's Status | 75 |
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| 3. Program Operator Qualifications | 200 |
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| (C) CAPACITY: | Up to 200 points |
Capacity to implement the proposed activity, as demonstrated by performance, including timeliness of clearance of Special Conditions, reporting and cooperation in clearing audit and monitoring findings. Capacity points based on:
| 1. Timely Clearance of Special Conditions | 60 |
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| 2. In-House Organizational Capacity for General Administration and Program Oversight | 40 |
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| 3. Reporting Points (point deductions for missing reports) | 70 |
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| 4. Cooperation/Compliance in Clearing Audit or Monitoring Findings | 30 |
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| (D) STATE OBJECTIVES: | Up to 100 points |
1. The Department may award an application up to 100 points for addressing one or more state objectives as identified in the annual CDBG NOFA.
2. Department selection of state objectives shall be based on one or more of the following:
i. Emergent circumstances such as natural disaster or economic dislocation.
ii. Imbalance among the types of activities funded in prior years' awards such as housing rehabilitation programs compared to public infrastructure projects.
iii. Imbalance in the geographic distribution of funds in prior years' awards.
iv. Imbalance in the population served in prior years' awards such as smaller jurisdictions compared to larger jurisdictions, general program beneficiaries compared to special needs groups such as farm workers, under-trained work force, or historically unsuccessful or inactive applicants compared to active, successful applicants.
v. Federal funding priorities as publicly announced by HUD.
vi. Housing and community development needs or objectives identified in the annual Consolidated Plan required by HUD.
(7) Planning and Technical Assistance: Pursuant to Health and Safety Code 50832(b), PTA applications will be evaluated on a first in first served basis if there are sufficient PTA funds available, but will be ranked only when the PTA allocation is oversubscribed, (where oversubscribed refers to the situation when there is not enough PTA funds to satisfy all the Applicants who submitted their funding application on the same day.) In the event the PTA allocation is oversubscribed then a tie-breaker process will be utilized, where the tie-breaker process is based on jurisdiction-wide poverty levels, with the poverty levels being ranked in descending order (i.e. the Applicant that has the greatest poverty level will be ranked highest in a tie-breaker situation.)
(8) Un-scored Set-Aside: Applications for Housing Assistance, Public Facilities, Public Improvements, Public Services and Enterprise Fund activities may request funding for one unrated eligible activity, up to the maximum specified in the NOFA, which shall be funded if at least one other Housing Assistance, Public Facilities, Public Improvements, Public Service or Enterprise Fund activity proposed in that application ranks high enough to be funded. An applicant may apply for either an unscored set-aside activity or a PTA but not both.
(9) Economic Development Over-the-Counter (ED OTC) activities will be evaluated on a first come first served basis.
(A) Applications may apply for one or two annual funding awards. Applicants awarded two annual funding awards may not apply for Over-the-Counter Economic Development funds in the second year.
(B) Applications will be evaluated pursuant to Section 7062.1(c)
(C) Applications will be evaluated for compliance with HUD underwriting guidelines set forth as Appendix A to 24 CFR Part 570.
(10) For purposes of this subsection (d), the foregoing terms shall be defined or applied as follows:
(A) NEED and BENEFIT
1. "3rd Party Documentation" shall mean data provided by federal or state regulatory agencies; by local agencies other than the department or division of the jurisdiction submitting the application; or other data from a recognized non-governmental source
2. "Age of Housing" -- percentage of all housing units in a jurisdiction that were built prior to 1970.
3. "Condition of Approval for PIHNC" shall mean the requirement that the public improvement activity be listed in the housing project's "Conditions of Approval" document issued by the jurisdiction's Planning Department.
4. "Extent of the Solution" shall mean the extent to which funding the activity will resolve or alleviate the problem or threat.
5. "Homeownership Rate" shall mean percentage of all housing units in a jurisdiction that are owner-occupied
6. "Low-Mod Percentage" shall mean the percentage of all households in a jurisdiction whose income is 80% or below the County's median household income.
7. "Market Analysis" shall mean an analysis of the economic and labor market conditions in a jurisdiction, including local employment rates, size and composition of local businesses, lending opportunities and types of lending products, etc.
8. "Overcrowding" shall mean the percentage of all housing units in a jurisdiction that have 1.01 occupants per room or more.
9. "Poverty Percentage" shall mean the percentage of persons in a jurisdiction whose income falls below the poverty level based on the latest available Census data.
10. "Regional Housing Needs Assessment / RHNA Data" shall mean a regional assessment that quantifies the need for existing and future housing within each jurisdiction, whereby the communities then plan for and decide how they will address this need through the process of completing the Housing Element for their respective General Plans.
11. "Rental Vacancy Rate" shall mean the percentage of all rental housing units that are vacant (includes units 'for rent' and units rented but not yet occupied)
12. "Seriousness of Health and Safety Threat" shall mean the urgency or seriousness of the threat to the public health and safety.
13. "Severity of the Problem" shall mean the seriousness of the threat to the public health and safety.
14. "Unemployment" shall mean the unemployment rate for the city or county applicant as published in the most recently available State Employment Development Department's "Monthly Labor Force For Counties".
(B) Readiness
1. "Activity Specific Operator Experience" shall mean the amount of time, if any, that the Activity Operator as set forth in the application has operated the specific activity being applied for.
2. "All Funding In Place" shall mean the level of commitment of the full amount of funding necessary to implement and complete the proposed project.
3. "Experienced In-House Staff" shall mean the level of work experience the jurisdictional staff has in the CDBG program.
4. "Operator Experience / Program Readiness" shall mean the level of work experience the program operator has in the CDBG program. A program operator may be in-house staff, a subrecipient, or a contract consultant.
5. "Project Approval Status" shall mean how close the project is to receiving all permits for construction and the Notice to Proceed.
6. "Program Description" shall mean a brief narrative description of the proposed activity.
7. "Program Guidelines" shall mean the rules by which a jurisdiction operates a CDBG program.
8. "Program Operator Qualifications" shall mean the level of work experience the program operator has in the CDBG program.
9. "Program Operator's Status" shall mean the level to which the program operator is contractually bound to the jurisdiction: by contract, subrecipient agreement, letter of intent, or not yet bound.
10. Ready to Start" shall mean the jurisdiction's ability to document the steps already taken to clear Special Conditions and implement the activity at the time of application.
11. "Site Control" shall mean the jurisdiction's ability to secure the use of the site or sites.
12. "Site Control of Facility for Program" shall mean the jurisdiction's ability to secure the use of the site or sites necessary to fully implement the proposed program.
13. "Site Control of Land for Project" shall mean the jurisdiction's ability to secure the use of the site or sites necessary to fully implement (construct) the proposed project.
14. "Waiting List of Pre-Screened Applicants" shall mean the list maintained by the jurisdiction of local residents interested in applying for assistance within the proposed program, who have indicated they are eligible for assistance.
(C) Capacity/Past Performance
1. "Cooperation/Compliance in Clearing Audit or Monitoring Findings" shall mean the Department's rating of a jurisdiction's efforts and compliance in clearing audit or monitoring Findings.
2. "In-House Organizational Capacity" shall mean the level to which the jurisdiction staff experience meets the requirements of the duty statements for oversight of the CDBG program.
3. "Reporting Points" shall mean points accumulated or deducted based on submittal status of required CDBG reports.
4. "Timely Clearance of Special Conditions" shall mean clearance of Special Conditions within 90 days from the date of a fully executed grant agreement.
(D) State Objectives
1. Defined within each individual activity scoring section at (d)(1)(D); (d)(2)(D); (d)(3)(D); (d)(4)(D); (d)(5)(D) and (d)(6)(D).
1. Amendment filed 2-22-85; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 85, No. 9).
2. Amendment of section and NOTE filed 7-31-96; operative 7-31-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 31).
3. Amendment of section and NOTE filed 8-13-2012; operative 8-13-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 33).
Note: Authority cited: Sections 50406(h) and 50406(n), Health and Safety Code. Reference: Sections 50406 and 50407, Health and Safety Code; 42 U.S.C. 5306(d)(2); 24 CFR 570.482(a), 24 CFR 570.483(b), and 24 CFR 570.489.
