2007 Infrastructure Hook-Up Program Guidelines

State of North Carolina Community Development Block Grant

Infrastructure Hook-Up Program 2011

NC Department of Commerce Community Investment and Assistance

Mailing Address: 4313 Mail Service Center, Raleigh, NC 27699-4313 Street Address: 100 E. Six Forks Road, 2nd Floor, Raleigh, NC 27609

Phone: (919) 571-4900 Fax: (919) 571-4951 TDD 1-800-735-2962 www.nccommerce.com

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Table of Contents

INTRODUCTION...... 4

BASIC CRITERIA TO APPLY...... 4

ELIGIBLE ACTIVITIES...... 4

PERFORMANCE MEASUREMENTS...... 5

ELIGIBLE RECIPIENTS OF FUNDS...... 5

AVAILABILITY OF FUNDS AND GRANT AWARDS...... 5

THRESHOLD...... 6

LMI BENEFIT REQUIREMENTS...... 6

APPLICATION SUBMISSION REQUIREMENTS...... 6

PROGRAM REQUIREMENTS FOR APPLICANTS...... 7

PROGRAM REQUIREMENTS FOR LOCAL GOVERNMENTS RECEIVING CDBG FUNDS...... 7

SELECTION PROCESS...... 7

APPLICATION FORMS...... 7

4 | P a g e 2011 Infrastructure Hook-Up Program Guidelines

I. INTRODUCTION The Infrastructure Hook-Up Program is designed to enable eligible local governments with existing public water and/or sewer line(s) to connect or “hook-up” low and moderate- income (LMI) households to non-CDBG funded line(s). CDBG funds may only be used to connect LMI owner-occupied dwellings and LMI tenant-occupied dwellings provided the landlord is also LMI. Low and moderate-income households are defined as households at 80% or less of the median family income for the county or Metropolitan Statistical Area (MSA) in which the residence is located.

CDBG funds may also be used to connect manufactured homes that are LMI owner- occupied but the lot is rented. However, the owner of the rented lot must also be LMI.

BASIC CRITERIA TO APPLY

1. The line is completely installed in the ground and in use by households along the line prior to submission of the application. 2. Installation of the line was not funded in whole or in part by CDBG funds. 3. Only low and moderate-income (LMI) households can be connected to the line using grant funds. (A LMI renter household must have a LMI landlord.) 4. Residences to be connected must already have indoor plumbing in working order. 5. Eligible households must be identified in the application.

Note: If a LMI unit is located on a corner lot with a line on either its side and/or its front, that unit can be connected if the unit is eligible according to the CDBG guidelines.

ELIGIBLE ACTIVITIES

CDBG funds may be used to pay for the following: 1. Tap-on or assessment fee to connect to the line; 2. The service connection for the private property; 3. Use of special equipment such as grinder pumps or vacuum pits to transport residential wastewater to the existing sewer lines. 4. Cost to remove septic tanks or cap wells, as required by the health department; 5. Repairs to a LMI household are leaking water pipes provided that it is documented that the leaking pipes are a result of connecting to the public water line; 6. Administration costs of no more than 15%.

*Permission to repair any other problems caused by the installation of public water or sewer must be requested in writing by the grantee and approved in writing by CI.

5 | P a g e The connection of residences to public water or sewer lines including items 1-5 above is considered a rehabilitation activity. Costs must be budgeted on the rehabilitation line item.

Connections may occur along the same line or different lines, to either water or sewer lines, or both. CDBG funds may not be used to pay impact fees (or fees by another name) to pay for the cost of the line.

PERFORMANCE MEASUREMENTS

The Government Performance and Results Act of 1993 (GRPA) mandates that federal programs improve their effectiveness and public accountability by focusing on results. The U.S. Department of Housing and Urban Development (HUD) has developed the CPD Performance Measurements System for recipients of HUD funds to use to fulfill the requirements of the Act. The Hook-Up Program will use the following measures for all rehabilitation activities except administration, which has no performance measures.

Performance Measures for Infrastructure Hook-ups (Rehabilitation) Objective: Creating Suitable Living Environments Outcome: Sustainability: Promoting Livable or Viable Communities

ELIGIBLE RECIPIENTS OF FUNDS As in all State CDBG categories, only non-entitlement local governments are eligible to apply for Infrastructure Hook-Up funds. The 23 entitlement cities that receive funds directly from HUD are: Asheville, Burlington, Chapel Hill, Charlotte, Cary, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Lenoir, Jacksonville, Kannapolis, Morganton, Raleigh, Rocky Mount, Salisbury, Wilmington, and Winston-Salem. In addition, Wake County, Cumberland County and Mecklenburg County as urban counties nor their municipalities, except Holly Springs (Wake), and Linden (Cumberland), are eligible for state funding.

AVAILABILITY OF FUNDS AND GRANT AWARDS A total of $1.2 million dollars is available for 2011. Maximum grant amount is $75,000.

There will be no extensions granted . All connections must be completed and the final requisition submitted fifteen (15) months from the date of the Director’s signature on the Grant Agreement and Funding Approval. Any remaining funds will be de-obligated at that time.

A grantee may connect fewer or more residences than the total number given in the application, but with same funds requested in the application. No additional funds will be available. If a grantee is considering undertaking both water and sewer connections, funds for water or sewer connections can be interchangeable. A public hearing must be held when there is a change in the beneficiaries that were not a part of the original application. Funds may also be moved from the administration line item to the activity line item. All Funding Approval conditions must be removed within the specified timeframe stated on the Grant Agreement or the funds will be de-obligated .

6 | P a g e A local government may only submit one application per cycle. No applications will be carried over to another funding cycle.

THRESHOLD Infrastructure Hook-Up applications are included in the $1.25 million cap for applications under consideration or for awards in the yearly funding cycle. Former 2001-2009 Infrastructure Hook-up grantees are eligible to apply, providing the grantees have submitted all close out documents (except the audit) to CI in a timely manner. Current CDBG grantees applying for Infrastructure Hook-Up funds can expect their current grants to be reviewed for any problems that might prevent an award. Applicants with current grants must meet the closeout schedule as set by the Grants Management Section or the grantee’s Grant Agreement.

LMI BENEFIT REQUIREMENTS Benefit for a project must be 100% LMI. A benefit form is required for the application. The applicant will need to identify the number of households to be connected, not persons.

APPLICATION SUBMISSION REQUIREMENTS Applications will be accepted in an open window cycle in a 2-step process until allocated funds are depleted. The window for the 2011 cycle will open January 4, 2012 and remain open until March 4, 2012 or until funds are depleted whichever comes sooner. The following process must be followed in order to submit an application or to be considered for funding:

1. Only the chief elected official or a designated local government staff person may call the Infrastructure Program Manager at (919) 571-4900, to see if funds are available and, if they are, to request to be put on the “Prospective Applicant List”. We will accept calls between the hours of 8:00 a.m.-4:00 p.m. Be sure to specify the amount of CDBG funds needed. If funds are available, the requested amount will be reserved for the potential applicant. A potential applicant will have 3 months from the date of the request to submit the application; otherwise, the reservation will be rescinded and will become available to another potential applicant. (A potential applicant may request fewer funds in the application than the amount originally reserved but may not request more than the reservation.)

2. Submit the application within 3 months from the date of the request. Applicants should submit two (2) complete copies of the application. One needs to be an original and the other a copy.

Applications should be mailed or delivered as follows:

Ms. Vickie Miller, Director Anderson Plaza Community Investment and Assistance 100 E. Six Forks Road, 2nd Floor 4313 Mail Service Center Raleigh, North Carolina 27609

7 | P a g e Raleigh, North Carolina 27699-4313 (for hand-delivery or express delivery)

PROGRAM REQUIREMENTS FOR APPLICANTS Applicants for the Infrastructure Hook-Up Program must follow the same citizen participation requirements as applicants in any other category. The local government must hold two public hearings prior to submission of the application. The first public hearing is held at the beginning of the application process to obtain citizen’s comments. The second public hearing is held after the application is drafted but prior to submission. Public hearing notices must be published at least once in the non-legal section of a newspaper having general circulation in the area. The notice must be published at least 10 days but no more than 25 days before the date of the hearing. Anyone not familiar with the process or needing assistance, please call the Infrastructure Hook-up Program Manager at (919) 571-4900.

Note: CI is instituting a policy change which requires local government to submit as part of the application process the citizen participation information and flood certification.

PROGRAM REQUIREMENTS FOR LOCAL GOVERNMENTS RECEIVING CDBG FUNDS Infrastructure Hook-Up grantees must follow the same compliance requirements as grantees in any other category. Projects must meet all federal and state administrative requirements as applicable. These include conflict of interest, equal opportunity, fair housing, local economic benefit, environmental review, residential anti-displacement and relocation assistance, Section 504 of the Rehabilitation Act of 1973, Americans with Disabilities Act (ADA), Labor Standards under Davis-Bacon and Related Acts, and the elimination of lead-based paint hazards. For more information on specific program requirements for grantees, please contact, the Infrastructure Program Manager at (919) 571-4900.

SELECTION PROCESS Applicants must be on the “Prospective Applicant List” and have a reservation of funds in order to submit an application. Applications will be reviewed in the order submitted to the Community Investment and Assistance, not in the order of their call. Review criteria may include conformity with the basic criteria to apply and eligible activities as well as status of current CDBG grants. The Community Investment and Assistance will also consider a well-balanced distribution of funds as a factor in making awards.

APPLICATION FORMS Application forms are self-explanatory. A location map indicating areas of LMI and minority concentrations must be included with the application forms. The project map must show the public water or sewer lines and the residences to be connected.

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