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CDBG - Mitigation Overview Objectives • What is CDBG-Mitigation (MIT)? – Background – Funding • Programs – Housing and Public Services – Infrastructure and Public Facilities – Economic Resilience and Revitalization • Eligibility – Projects – Subrecipients • Application process • Project schedule • Who benefits? What is CDBG-MIT? • MIT defined CDBG-MIT program comprises of activities that: – Increase resilience to disasters – Reduce or eliminate the long-term risk of: o Loss of life o Injury, damage to and loss of property o Suffering and hardship • How is this done? This is done through hardening the Territory’s infrastructure. – Hardening: lessens the impact of future disasters What is CDBG-MIT? • Areas of hardening: – Housing and Public Services o Multifamily Housing o VIHFA New Home Construction (Home Ownership) o Homeless Housing Initiative o Innovative Resilient Housing – Infrastructure and Public Facilities o Community Resilience and Public Facilities o Resilient Critical and Natural Infrastructure – Economic Resilience and Revitalization o Commercial Hardening and Financing o Small Business Mitigation Background In the wake of the storms, the President announced a Major Disaster Declaration for Irma and another for Maria to make federal disaster assistance available to the Territory. In response, Congress approved a bill appropriating an additional $28 billion CDBG-DR funds, of which $11 billion was set aside to address the remaining unmet needs including those of the U.S. Virgin Islands and Puerto Rico from Hurricane Maria HUD published a federal register notice on 20Aug19 that allocated $6.875 billion in CDBG-MIT funds, consistent with the Appropriations Act. Subsequently, HUD published 84 FR 47528 (USVI Supplemental Notice) The Federal Notice (FN-06109- CBDG-MIT) allocates $774,188,000 of CDBG-MIT funds to the U.S. Virgin Islands pursuant to the requirements of the Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018 (Division B, Subdivision 1 of the Bipartisan Budget Act of 2018 (Pub. L. 115-123). 2018 2019 NO FUNDING Funding To enable localities that are vulnerable to natural disasters to take a forward- looking, risk-based approach to implementing projects that are designed to reduce future losses from such disasters. Primary focus = = = + + Funding Housing and Public Services Infrastructure and Public Facilities Economic Resilience and Revitalization Public Facilities $100,000,000 Small Business Mitigation $35,000,000 + Housing $188,000,000 Public Services $15,000,000 Infrastructure $308,000,000 Commercial Hardening & Financing $40,000,000 eGrid $145,000,000 $163,000,000 Funding Housing and Public Services Infrastructure and Public Facilities Economic Resilience and Revitalization $203,000,000 $363,000,000 $75,000,000 eGrid $145,000,000 Planning $29,750,000 Administration $38,709,400 Funding With an average 6.5% project delivery cost, the total CDBG-MIT grant equates to: $774,188,000 Programs Multi-family Housing The Multifamily Housing Program is designed to facilitate the rehabilitation and reconstruction of multi-family developments, aiming to repair, restore, and augment the affordable housing stock. New Home Construction The New Home Construction Program, utilizing allocated funding, focuses on redeveloping and establishing new affordable housing stock. Eligible development activities encompass the creation of housing units and substantial rehabilitation of vacant, uninhabitable dwellings to increase the overall housing availability. Homeless Housing Initiative The Homeless Housing Initiative addresses the temporary emergency housing needs of the homeless and those at risk of homelessness. It covers eligible costs for the rehabilitation or replacement of existing emergency housing and provides funding to support service providers offering aid through essential services. Innovative and Resilient Housing The Innovative and Resilient Housing Program promotes the adoption of architectural and construction techniques to create robust and resilient housing. Emphasizing economic development costs, this initiative aims to encourage innovative approaches to sustainable and durable housing solutions. Public Services The Public Services Program is aimed at offering employment training, childcare, health services, substance abuse treatment and counseling, educational programs, fair housing counseling, as well as services catering to senior citizens and various other needs Housing and Public Services $203,000,000 Programs Infrastructure and Public Facilities $363,000,000 Community Resilience and Public Facility Funding The Community Resilience and Public Facilities Program is aimed at the need for sufficient and permanent emergency shelters by facilitating the construction or rehabilitation of versatile facilities specifically designed for disaster preparedness, addressing shelter needs during disasters, and responding to other emergencies. Resilient Critical and Natural Infrastructure The Resilient Critical and Natural Infrastructure Program is focused on advancing the adaptation to climate change through the management of natural infrastructure assets that provide municipal and ecosystem services while providing effective solutions for minimizing coastal flooding, erosion, and runoff. Programs Economic Resilience and Revitalization $75,000,000 Commercial Hardening and Financing (CH&F) CH&F program intent is to upgrade eligible commercial\private buildings and return them to business uses and ensure the ability for such facilities to operate during emergencies. Alternate harbor/port sites may be eligible for program funding. Commercial Hardening and Funding will be comprised of two project activities: Commercial Resilience and Façade and Maritime Industrial Harbor Improvements. Small Business Mitigation (SBM) SBM program creates a supportive business environment with easier access to capital and adequate technical support. Eligibility – projects • Meet the definition of mitigation activities • Address the current and future risks as identified in the Mitigation Needs Assessment of most impacted and distressed areas • Meet national objectives • Be CDBG-eligible activities under Title I of the Housing and Community Development Act of 1974 (HCDA) §105 – Be otherwise eligible pursuant to a waiver or alternative requirement Eligibility – projects • National objective – Low and moderate-income area benefit – Low and moderate-income limited clientele – Urgent need • Meet a national objective, including additional criteria for mitigation activities and Covered Projects Eligibility – subrecipients • Units of Government of the USVI – Autonomous instrumentalities – Semi-autonomous instrumentalities • Providers of supporting services for vulnerable populations – Nonprofits – For-profits Application process HUD Finance Environmental Procurement No Review data for client prep Present full project to MIT Contact client for project review Yes Closeout and file No Consult and end engagement MIT? Approved No Yes Denied HUD Consideration for Ammendment Determine Compliance and Risk Assessment Determine Availaibility Consult for opporunities Compliance Project Management Process CDBG-MIT Draft D: 11Oct23 YM No Yes Yes Yes No No Determine Feasibility Yes Determine Cost Reasonableness Executive Leadership Review Client MIT/eGrid Covered Project? Substantial Amendment? Review and Prioritise Project Yes No Submit Project Plan Complete Salesforce application Application process Project schedule MIT Activity List 2023 2024 2Q24 3Q24 4Q24 Sep Oct Nov Dec Jan Feb Mar Administration Hire leadership roles Develop processes, policies, & practices Identify/create tools for implementation Create training guides for potential subrecipients Public outreach Advertisement Townhalls Launch Registration & apps Training Hire project support As Needed Project selection Subrecipient agreements On going On going eGrid MIT project management Housing and public facilities Infrastructure and public facilities Economic resilience and revitalization On going CDBG-MIT Draft B: 27Oct23 YM Who benefits? At least 50% of all CDBG-MIT funds must be used for activities qualifying under the national objectives of Benefit to Low and Moderate-Income Persons Resources • VIHFA.gov – Mitigation Tab – FR47258: Department of Housing and Urban Development (Docket No. FR– 6109–N–03) – Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant Mitigation Grantees; U.S. Virgin Islands Allocation – FR45838: Department of Housing and Urban Development (Docket No. FR– 6109–N–02) RIN 2506–ZA02 – Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant Mitigation Grantees – Housing and Community Development Act of 1974 (HCDA), Title I – United States Virgin Islands CDBG-Mitigation Action Plan CDBG - Mitigation Overview