In calculating employment opportunities, the following applies:

• Part-time jobs must be converted to full-time equivalents (FTE);
• A FTE job is any combination of two or more part-time jobs that, when combined together, constitute the equivalent of a job of at least 40 hours per week;
• Only permanent jobs count; temporary jobs may not be included;
• Seasonal jobs are considered to be permanent if the season is long enough for the job to be considered as the employee’s principal occupation; and
• Jobs indirectly created or retained by an assisted activity are not eligible to be counted.

In order to consider jobs retained as a result of CDBG assistance, there must be clear and objective evidence that permanent jobs will be lost without CDBG assistance. Documentation of evidence is required as part of this application. Acceptable evidence will be discussed later in the application.

The proposed project must meet a federal national objective pursuant to HCDA Section 101(c), Section 104(b), 24 CFR 570.483. 

A minimum of fifty-one percent (51%) of the jobs that are created or retained as a result of an economic development award must be either held by and/or made available to persons from low- and moderate- income (LMI) families.

Jobs “taken by" or held by” LMI persons: A job is considered to be taken by or held by a LMI person if the person is, at the time their employment commences, a member of a family whose income falls at or below the applicable Section 8 program income limits. The family’s entire income must be counted. (This is particularly important when dealing with part-time jobs or jobs taken by students.) The annual salary or hourly wage of the job that the person fills is irrelevant.

Jobs “available to” LMI persons: Jobs that are not held (filled) by LMI persons may be claimed to be “available to” LMI persons only when both of the following are met:

• The jobs do not require special skills that can only be acquired with substantial (i.e., one year or more) training or work experience, and education beyond high school is not a prerequisite to fill such jobs, unless the business agrees to hire unqualified persons and train them; and

• The state grant recipient and/or the assisted business takes actions to ensure that LMI persons receive “first consideration” for filling such jobs.

Principles involved in providing “first consideration”:

• The business must use a hiring practice that under usual circumstances would result in over 51 percent of LMI persons interviewed for applicable jobs being hired,

• The business must seriously consider a sufficient number of LMI job applicants to give reasonable opportunity to fill the position with such a person, and

• The distance from residence and availability of transportation to the job site must be reasonable before a particular LMI person may be considered a serious applicant for the job.

In addition, in order to consider jobs retained as a result of CDBG assistance, there must be clear and objective evidence that permanent jobs will be lost without CDBG assistance.  Documentation of evidence is required as part of this application.  Acceptable evidence will be discussed later in the application.

If any project costs, regardless of their funding source, are incurred prior to the CDBG award date and the approval of the Request for Release of Funds by the Office of Community Renewal, the entire project may be deemed ineligible for CDBG funds.

Eligible uses of NYS CDBG Economic Development Program funds include, but are not limited to, acquisition of real property; the financing of machinery, furniture, fixtures and equipment; building construction and renovation; working capital; inventory; and employee training expenses.

Eligible uses of NYS CDBG Small Business Program funds include, but are not limited to, acquisition of real property; the financing of machinery, furniture, fixtures and equipment; building renovation; working capital; inventory; and employee training expenses. New construction is not eligible under the NYS CDBG Small Business Program.  

Eligible uses of NYS CDBG Microenterprise Program funds include, but are not limited to, the financing of machinery, furniture, fixtures  and equipment; working capital; inventory; and reimbursement of the cost for a grantee to attend the entrepreneurial training program.  Construction, building, or other improvements are not eligible uses of NYS CDBG Microenterprise Program funds when Davis Bacon and Related Acts must be applied.

For all programs, the use of NYS CDBG funds toward construction and renovation costs are subject to Davis Bacon Wage Rate requirements. This includes the cost of equipment that requires installation, as well as the purchase of materials used for construction activities.

Pursuant to the NYS CDBG Program, applicants should only apply for the amount of funding that can be fully expended and the type of activities that can be completed within the specified project completion period of twenty-four (24) months. Applicants should not proceed with a project that cannot be completed within the specified timeframe or with the assumption that an extension of the project deadline will be considered.

For Economic Development and Small Business projects: All proposed job creation, retention or low- to moderate-income owner assistance must be completed, and all accomplishments must be reported to the Office of Community Renewal within the twenty-four month project completion period.

To determine the US Congressional District, click HERE

To locate a Zip Code, click HERE

Applicants will be required to provide the specified ID number upon request by the funding agencies.

If applying in the name of a business please type in the name as it appears on your business papers. If applying as an individual insert your name here.

To look up a zip code, click HERE

Describe how the proposed project advances the REDC/URI plan for the region, specifically linking the project to the region’s goals, strategies, and targeted industry clusters. A response to this question should directly and specifically link the project to a section or sections of REDC/URI plan for the region.

Please includes details relevant to all programs on this application. Programs on this application are: {{program_list}}

Provide a brief summary of the need for the project in the geographic area proposed, the project's financing needs, including funding gaps and, where applicable, describe the additional short and long term jobs that will be created through the development of the proposed project.

 Complete the form in the link and upload as an attachment.

Applicants must meet the citizen participation requirements at 24 CFR 570.486 and NYS Homes and Community Renewal's Citizen Participation Plan as amended, which require Applicants to follow a citizen participation plan. Prior to submitting a CDBG application, Applicants must issue a public hearing notice and hold one public hearing (one in each jurisdiction of a joint application) allowing for citizen feedback on the community and economic development needs of the applicant community and any proposed project(s). When issuing the notice and holding the public hearing, please note the following:

• All hearings must also be conducted in accordance with the New York State Open Meetings Law (Public Officers Law, Article 7)
• The municipality must provide a minimum seven (7) day period between the publication of the hearing notice and the hearing itself. Note that the date of publication is day "zero."
• The hearing notice must be conspicuously posted in one or more public locations at least seventy-two (72) hours prior to the actual hearing. This may also be accomplished by posting to the municipal website
• The hearing must be conducted by a quorum of the legislative body of the municipality only, not by a sub recipient, department or arm of the applicant
• The notice for the hearing must specifically mention the municipality’s intent to apply for NYS CDBG funds and the current program year
• The notice must identify all activities that the Applicant may be applying for during current program year, which may include Housing, Public Infrastructure/Facilities, Economic Development, or Community Planning
• Public hearings must be held in a location accessible to persons with disabilities and/or provide reasonable accommodations to allow all interested parties to participate
• The municipal resolution authorizing the public hearing, the hearing notice, affidavit of publication, list of attendees, hearing minutes, and evidence of conspicuous public posting must be included as an attachment to the application
• A copy of the application must be available for public inspection at the municipal office(s).

Applicants may also refer to the "Public Hearing Requirements" document located here: https://hcr.ny.gov/community-development-block-grant#forms-and-documents

 The form can be found at:

https://hcr.ny.gov/community-development-block-grant

https://hcr.ny.gov/applicant-disclosure-form

Complete the form in the link and upload as an attachment

https://hcr.ny.gov/community-development-block-grant

Please attach form 8-1, Project Team, found on the OCR website: https://hcr.ny.gov/community-development-block-grant

The form can be found at:  

https://hcr.ny.gov/community-development-block-grant-economic-development-program

Fair Housing - All applicants are required to report whether within the past ten (10) years they have been the subject of any housing discrimination proceeding before a federal, states, and/or local adjudicatory body. The applicant shall:

A. Provide the final disposition or indicate that the proceeding is pending;

B. Provide a brief description of the complaint and procedural history for cases that are pending or the final administrative and/or court orders.   

Section 3 - For all proposed projects that would result in CDBG assistance in excess of $200,000, applicants must submit a Section 3 Compliance Plan. The Section 3 compliance plan describes the manner in which recipients of CDBG financial assistance will, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

A sample Compliance Plan is available at: https://hcr.ny.gov/fair-housing-section-3-compliance

Please refer to the CDBG CFA Application Guidance for further information on Fair Housing and Section 3 requirements. 
 

This documentation could include, but may not be limited to, denial/rejection letters from banks or letters from any other agencies indicating that funding requests were not approved.

The proposed project must meet a federal national objective pursuant to Housing and Community Development Act of 1974 Section 101(c), Section 104(b), 24 CFR 570.483.

A minimum of fifty-one percent (51%) of the jobs that are created or retained as a result of an economic development award must be either held by and/or made available to persons from low- and moderate- income (LMI) families.

Jobs “held by” LMI persons: A job is considered to be held by a LMI person if the person is, at the time their employment commences, a member of a family whose income falls at or below the applicable Section 8 program income limits. The family’s entire income must be counted (this is particularly important when dealing with part-time jobs or jobs taken by students). The annual salary or hourly wage of the job that the person fills is irrelevant.

Jobs “available to” LMI persons: Jobs that are not held (filled) by LMI persons may be claimed to be “available to” LMI persons only when both of the following are met:

• The jobs do not require special skills that can only be acquired with substantial (i.e., one year or more) training or work experience, and education beyond high school is not a prerequisite to fill such jobs, unless the business agrees to hire unqualified persons and train them; and
• The state grant recipient and/or the assisted business takes actions to ensure that LMI persons receive “first consideration” for filling such jobs.

Principles involved in providing “first consideration”:

• The business must use a hiring practice that under usual circumstances would result in over 51 percent of LMI persons interviewed for applicable jobs being hired;
• The business must seriously consider a sufficient number of LMI job applicants to give reasonable opportunity to fill the position with such a person; and
• The distance from residence and availability of transportation to the job site must be reasonable before a particular LMI person may be considered a serious applicant for the job.

To consider jobs retained as a result of CDBG assistance, there must be clear and objective evidence that permanent jobs will be lost without CDBG assistance.  For these purposes, "clear and objective" evidence that jobs will be lost would include:

• Evidence that the business has issued a notice to affected employees or made a public announcement to that effect, or
• Analysis of relevant financial records which clearly and convincingly shows that the business is likely to have to cut back employment in the near future without the planned intervention.

To meet the LMI jobs standard, 51% or more of the retained jobs must be either:

• Known to be held by LMI persons at the time CDBG assistance is provided and/or
• Jobs not known to be held by LMI persons, but which can be reasonably expected to "turn over" to LMI persons within two (2) years.  (This would involve the grant recipient or business taking actions to ensure that such a job, upon turnover, will be either taken by or made available to a LMI in a manner similar to that pertaining to a newly created job, as discussed above.) Reference: 24 CFR 570.483(b)(4)(iii).

To consider jobs retained as a result of CDBG assistance, there must be clear and objective evidence that permanent jobs will be lost without CDBG assistance.  For these purposes, "clear and objective" evidence that jobs will be lost would include:

• Evidence that the business has issued a notice to affected employees or made a public announcement to that effect, or

• Analysis of relevant financial records which clearly and convincingly shows that the business is likely to have to cut back employment in the near future without the planned intervention.

To meet the LMI jobs standard, 51% or more of the retained jobs must be either:

• Known to be held by LMI persons at the time CDBG assistance is provided and/or

• Jobs not known to be held by LMI persons, but which can be reasonably expected to "turn over" to LMI persons within two (2) years.  (This would involve the grant recipient or business taking actions to ensure that such a job, upon turnover, will be either taken by or made available to a LMI in a manner similar to that pertaining to a newly created job, as discussed above.) Reference: 24 CFR 570.483(b)(4)(iii).

The appropriate forms can be found on the NYS Comptroller's Office website here:

https://www.osc.state.ny.us/state-vendors/vendrep/vendor-responsibility-forms

The underwriting analysis must specifically indicate how each of the supporting documents were evaluated to complete the underwriting. The analysis may include all the areas listed below. Attach with the analysis any items marked with “all supporting documentation required to be attached.”

Income and Projections (all supporting documentation required to be attached)

• 2 years of historical (current) and projected financial statements with all notes and disclosures including income, balance sheet & cash flow statements.
  • In the case of a start-up enterprise provide pro-forma balance sheet at time of funding as well as projected income statement and cash flow statement for at least the first 2 years
• Profit and loss statement for 2 years, with and without CDBG
• Current and projected detail of existing debt (payments, rate, term, collateral, etc.)
• Documentation/analysis of debt Coverage Ratio (Business Cash Flow Available for Debt Service / Debt Service)
  • Minimum DCR of 1.25 before investment of CDBG
  • Minimum DCR of 1.05 after investment of CDBG (if issued as a loan)

Business Credit History and Analysis

• Credit report of the owner and/or developer
• Current personal financial statement of principal(s) with 20 percent or more ownership (less than 60 days old)
• Income Tax Returns – 3 years personal and business returns (if applicable) Personal tax returns for each business owner who owns more than 20% of the business.

Business Plan review

• Business plan
• Market analysis
• Project team

The form can be found at: https://hcr.ny.gov/smart-growth-project-compliance-form

DUNS Number: http://www.dnb.com/duns-number.html

Unique Entity ID: https://sam.gov/content/home

Scoring Tips: Economic Development Program

• • Maximum award amount of $750,000 (minimum $100,000).
  • NYS CDBG can fund up to 40% of a total project cost, not to exceed maximum award amount.
  • Projects must result in the creation or retention of at least one permanent, FTE job for every $15,000 of NYS CDBG funds awarded.
  • At least 51% of the jobs created or retained by the project must benefit low- and moderate-income persons.
  • NYS CDBG funds should be used as gap funding to induce project completion.

Small Business Assistance Program

• • Award amounts of $25,000 to $100,000 for assistance to individual business.
  • Projects must result in the creation or retention of at least one FTE job per $25,000 of CDBG funds provided.
  • At least 51% of the jobs created or retained by the project must benefit low- and moderate-income persons.
  • NYS CDBG can fund up to 40% of a total project cost.
  • Minimum of 20% owner equity contribution to the project is required*.
  • *To induce sustainable, green projects the equity contribution may be lowered to a minimum of 10% if the activity is certified by the community and OCR as a NYS CDBG Green project.

NOTE: The maximum awards are not intended to serve as a target figure for requests for assistance. The amount of CDBG assistance should be based on need and CDBG funds should not be used to reduce the amount of non-federal financial support for the project.

Reference the CDBG ED Program Guidelines for additional guidance: https://hcr.ny.gov/community-development-block-grant-economic-development-program

The description should include the following:

• A description of existing industry in the community (i.e. warehousing, manufacturing, agriculture);
• Demographic information including median family income and percentage of persons in poverty;
• A description of the labor force needs, including a discussion of the unemployment rate in the community and region, and the skills available or lacking in the labor market;
• The most recent calendar year’s county-wide unemployment data as provided by the New York State Department of Labor.  Provide data for yearly and monthly averages;
• A description of disinvestment in the community, as evidenced by recent business closures over the last five years;
• An explanation of how the proposed project supports designated Empowerment Zones, Enterprise Communities, NYS Excelsior Program and NYS Empire Zones;
• Description of the proposed project’s relationship to other community development activities underway or planned;
• Description of any municipal strategic or comprehensive redevelopment plans; long-range strategy or community needs assessment survey that the project supports and how the project addresses the needs identified in the plan(s), strategy or community needs assessment. 
• Explain why the proposed project is the best approach to addressing the need identified. Provide the date the plan(s) was adopted and the term of the plan.  Do not submit plans, strategies or surveys with your application;
• Explain how the project will support or complement other public works, housing, economic development, main street revitalization or other community goals, particularly those that benefit (direct or indirect) LMI persons. 

24CFR570.489(e) defines program income as gross income in an amount equal to or exceeding $35,000 per year received by a state, unit of general local government (UGLG) or a subrecipient of UGLG that was generated from the use of CDBG funds. All funds received from revolving loan funds are considered program income, regardless of amount.

Types of CDBG program income include, but are not limited to, the following:

• payments of principal and interest on loans made using NYS CDBG funds;
• interest earned on funds held in a revolving fund account;
• proceeds from the disposition by sale or long term lease of real property purchased or improved with NYS CDBG funds; and
• proceeds from the disposition of equipment purchased with NYS CDBG funds

Please note that any project funded through NYS CDBG and which may result in program income being generated, may be required to submit a Program Income Plan.

A full Program Income Report for all program income generated as a result of NYS CDBG funded activities will be collected on an annual basis through the Annual Performance Report (APR).

For more information on CDBG program income, please refer to the NYS CDBG Grant Administration Manual, Chapter 3: https://hcr.ny.gov/cdbg-grant-administration-manual-chapter-3-financial-management

For Economic Development and Small Business Assistance projects, program delivery and grant administration costs combined may not exceed $16,000 out of the total CDBG funds requested.

Grant Administration Costs: Generally, these are costs associated with salaries, wages, and related costs of the grant recipient’s staff, the staff of local public agencies, or other staff engaged in program administration for the awarded grant. General operating expenses are ineligible for reimbursement from the grant funds. 

Program Delivery Costs: These are those costs that can be directly attributed to activities for delivery of specific proposed activities. These include in-house staff or third party costs.

Reference the NYS Office of Community Renewal Grant Administration Manual, Chapter 3, for examples of Grant Administration and Program Delivery Costs: https://hcr.ny.gov/cdbg-grant-administration-manual-chapter-3-financial-management

OMB Circular A-87 establishes standards for determining whether specific costs are allowable under the NYS CDBG program.  The uniform approach established in this circular for determining costs promotes effective and efficient program delivery

Anti-pirating rules pursuant to Section 105 of the HCDA, Section 588 of the Quality Housing and Work Responsibility Act, Subsection (h) and 24 CFR 570.482(h).

• • • Only include jobs that have not yet been created;
    • Part-time jobs must be converted to full-time equivalents (FTE).  A FTE is any combination of two or more part-time jobs that, when combined together, constitute the equivalent of a job of at least 40 hours per week;
    • Only permanent jobs count; temporary jobs may not be included;
    • Seasonal jobs are considered to be permanent for this purpose only if the season is long enough for the job to be considered the employee's principal occupation;
    • All permanent jobs created or retained by the activity must be counted even if the activity has multiple sources of funds; and
    • Jobs indirectly created or retained by an assisted activity may not be counted; and
    • A Business Owner can not be counted towards job creation or retention.

Reference Chapter 9, 'Reporting Requirements" of the NYS OCR Grant Administration Manual for guidance on job reporting requirements.  The Manual can be found online, here: https://hcr.ny.gov/cdbg-grant-administration-manual-chapter-9-modifications-and-amendments

 For activities that include equipment purchases, Davis Bacon labor standards will apply if the cost of installation of the equipment equals or exceeds 20% of the total equipment cost

The HUD Family Income limits are updated each calendar year. The limits for each year are available here: http://www.huduser.org/portal/datasets/il.html