Ohio’s Strategy for Change: Maximizing Opportunities with

Limited Funding Resources

Mike Hiler, Deputy ChiefOffice of Community Development

Change at Ohio Department of Development

Office of Community Development Organizational Structure

The Office of Community Development (OCD) provides financial and technical assistance to local governments and nonprofit organizations for project activities that benefit low and moderate-income citizens and enhance the competitive assets of the state.

OCD is divided into three core administration categories:

Affordable Housing - $ 9.5 million CDBG $15.8 million HOME

$ 1.0 million OHTF

Community and Economic Development* - $28.3 million CDBG

Homelessness and Supportive Housing* – $ 5.1 million ESG $ 1.2 million HOPWA

$20.0 million OHTF*Does not include Discretionary, New Horizons, Admin or TTA

CDBG Funding 2002-2012

Addressing the Reduction in CDBG Funds

• In FY 2011 the total HUD CDBG allocation to OCD was reduced by nearly 17% from FY 2010 that corresponded to a reduction in funds for certain programs.

• The FY 2012 HUD CDBG allocation reduced by an additional 7%• In order to address the reduction in funds OCD has proposed completely

changing many of the core programs.• OCD divided the office into three separate funding categories:

– Affordable Housing– Community and Economic Development– Homelessness and Supportive Housing

Core CDBG Programs

• Rural Single-Family Housing• Neighborhood Revitalization• Residential Water and Sanitary Sewer• Economic Development

– Loans– Public Infrastructure Grants

ODOD Strategic Plan Overview

The Foundation of the MissionThe programs that OCD administers:

– attract, expand and retain business and industry to create and retain long-term jobs in the private sector;

– improve and expand public works and facilities in order to prevent the deterioration of property and neighborhoods;

– conserve and expand the affordable housing stock in order to provide a decent home and a suitable living environment;

– implement strategies to end homelessness in Ohio; and – provide short-term emergency and other housing stability assistance for low-

income Ohioans.

2012 Goals – Office of Community Development• The #1 focus of OCD is job creation.• Strengthen and prepare local communities for job growth through many

of OCD’s core CDBG programs.

FY 2012 Consolidated Planning Process

• The Con Plan serves as the State’s application for HUD funding.• August 2011 – Citizen Participation Process began• September 2011 – Public Hearing on Needs Issues held• October 3–4, 2011 – Program Advisory Committee meetings held• February 2012 – Con Plan Advisory Committee reviewed draft• March 1-30, 2012 – 30-day Public Comment period• March 22, 2012 – Public Hearing scheduled• May 2012 – Final Con Plan to be submitted to HUD

Overview of CDBG Programs

ASHTABULA

ROSS

LICKING

MUSKINGUM

WASHINGTON

TRUMBULLWOOD

SCIOTO

DARKE

ADAMS

STARK

TUSCARAWAS

COSHOCTON

WAYNE

HIGHLAND

SENECA

FRANKLINBELMONT

COLUMBIANA

HANCOCK

KNOX

GUERNSEY

FAIRFIELD

ATHENS

PORTAGE

PICKAWAY

BROWN

RICHLAND

LORAIN

HURON

PUTNAM

MERCER

HARD IN

BUTLER

GALLIA

MADISON

LOGAN

MONTGOMERY

CUYAHOGA

MONROE

DELAWARE

CLERMONT

LAWRENCE

PIKE

UNION

MEIGS

ASHLAND

C HAM PAIGN

PREBLE

MAHONING

WILLIAMS

HOCKING

MEDINA

MORGAN

JACKSON

HOLMES

HENRY

SUMMITPAULDING

GREENE

VINTON

HAMILTON

SANDUSKYDEFIANCE

CLINTON

HARRISON

PERRY

VAN WERT

SHELBY

MIAMI

JEFFERSON

WYANDOT

GEAUGA

WARREN

FAYETTE

MORROW

FULTON

ALLEN

MARION

CRAWFORD

NOBLE

AUGLAIZECARROLL

LUCAS OTTAWA

ERIE

LAKE

CLARK

Fairborn

Springfield

Lancaster

Marietta

Newark

Warren

Youngstown

Kent

Steubenville

Mansfield

Lorain

ElyriaBowling Green

Lima

Toledo

Sandusky

Entitlement AreasPCTLMI

Census Tracts (0% -50% LMI) Census Tracts (51% or > LMI)

ASHTABULA

ROSS

LICKING

MUSKINGUM

WASHINGTON

TRUMBULLWOOD

SCIOTO

DARKE

ADAMS

STARK

TUSCARAWAS

COSHOCTON

WAYNE

HIGHLAND

SENECA

FRANKLINBELMONT

COLUMBIANA

HANCOCK

KNOX

GUERNSEY

FAIRFIELD

ATHENS

PORTAGE

PICKAWAY

BROWN

RICHLAND

LORAIN

HURON

PUTNAM

MERCER

HARD IN

BUTLER

GALLIA

MADISON

LOGAN

MONTGOMERY

CUYAHOGA

MONROE

DELAWARE

CLERMONT

LAWRENCE

PIKE

UNION

MEIGS

ASHLAND

C HAM PAIGN

PREBLE

MAHONING

WILLIAMS

HOCKING

MEDINA

MORGAN

JACKSON

HOLMES

HENRY

SUMMITPAULDING

GREENE

VINTON

HAMILTON

SANDUSKYDEFIANCE

CLINTON

HARRISON

PERRY

VAN WERT

SHELBY

MIAMI

JEFFERSON

WYANDOT

GEAUGA

WARREN

FAYETTE

MORROW

FULTON

ALLEN

MARION

CRAWFORD

NOBLE

AUGLAIZECARROLL

LUCAS OTTAWA

ERIE

LAKE

CLARK

Fairborn

Springfield

Lancaster

Marietta

Newark

Warren

Youngstown

Kent

Steubenville

Mansfield

Lorain

ElyriaBowling Green

Lima

Toledo

Sandusky

Entitlement AreasPCTLMI

Census Tracts (0% -50% LMI) Census Tracts (51% or > LMI)

LMI Concentration and Non-Entitlement Areas

Community Housing Improvement Program (CHIP)• The goal of the CHIP is to provide funding for a flexible, community-wide approach

to the improvement and provision of affordable housing for LMI single-family households.

• Eligible jurisdictions include cities and counties that include:– non-entitlement/non-participating jurisdictions (CDBG and HOME funds)– non-entitlement jurisdictions that are part of a PJ (CDBG Funds)

• Applications are accepted annually on a competitive basis.• Grant period is two years.• Primary housing activities include: private owner rehab; rental rehab;

homeownership; acquisition/rehab/resale; home repair; new housing construction; homelessness prevention, and rental assistance.

• The grant ceiling per each eligible applicant is $500,000.• At least 80% of the CDBG funds and 100% of the HOME funds must be expended

on activities directly benefitting low-or moderate income persons.

Community Development Program• The goal of the CDP is to provide communities with a flexible community

development resource that can be used to address locally identified needs that are eligible CDBG activities and qualify under the national objective of Low- and Moderate-Income (LMI) Benefit or Elimination of Slum and Blight.

• The program is divided into two components: the Formula Allocation Grants and the Neighborhood Revitalization Grants (NRG).

• Funding allocations for the Formula Allocation Grants are based on the number of LMI persons residing in the non-entitlement community.

– Eligible Formula projects include activities identified in Title I of the Housing and Community Act of 1974.

• NRG funds are awarded on a competitive basis – targeted 60% AMI and below.

– Eligible activities in the NRG include public facilities improvements such as construction, reconstruction, rehabilitation of infrastructure in targeted areas of distress

Economic Development Loan and Public Infrastructure Grant Program Overview• The current CDBG Economic Development Program and Residential Water

and Sewer Program are proposed to be combined to increase the flexibility of CDBG funding to meet programmatic needs.

• Overall funding is proposed to decrease from $12,000,000 to $10,800,000 but increased flexibility will enable greater alignment with Department priorities.

• Residential Public Infrastructure Program (RPIP):• The primary goal of the RPIP is the creation of a safe and sanitary living environment for

Ohio citizens, through the provision of safe and reliable drinking water and proper disposal of sanitary waste.

• Economic Development Public Infrastructure Grant Program (EDPIGP) and Economic Development Loan Program (EDLP). • The principal goal of the EDPIP and the EDLP is to create and retain permanent, private-

sector job opportunities for LMI Ohioans.

Economic Development Loan and Infrastructure Grant Residential Public Infrastructure Program (RPIP)• The primary goal of the RPIP is the creation of a safe and sanitary living

environment for Ohio citizens, through the provision of safe and reliable drinking water and proper disposal of sanitary waste.

• The program is targeted at distressed communities with an LMI population of at least 51%. Activity expenditures must qualify under LMI Area or LMI Direct Benefit.

• Application must meet minimum program thresholds and eligibility criteria including LMI area and direct benefit, leverage, regionalization, sustainability, and mitigation of documented health and safety issues.

• Applications are accepted on an annual open-cycle basis and grants are awarded for two years.

Our Partners

• Small Communities Environmental Infrastructure Group (SCEIG)

• Appalachian Environmental Infrastructure Strategy Work Group

Small Communities Environmental Infrastructure Group (SCEIG)

• An association of approximately 30 federal and state agencies, local governments and groups, service organizations, and educational institutions designed to help small communities in meeting their environmental infrastructure needs

• SCEIG Member Organizations– Ohio Department of Development – member of Finance Committee– Ohio Water Authority– Ohio EPA– Ohio Public Works Commission– USDA Rural Development – Great Lakes Rural Community Assistance Program

Appalachian Environmental Infrastructure Strategy Work Group

• Assists communities in Appalachia with funding water and wastewater infrastructure needs, by fostering and encouraging partnerships among state and local officials through peer support, information and coordination.

• Same entities that make up SCEIG, including:– Appalachian Regional Commission Local Development Districts – Ohio Department of Health

CDBG Funding Challenges

• Suspension or Transfer of Programs– Comprehensive Downtown Revitalization Program– Habitat for Humanity Supplemental Funding

• Proposed funding for Downtown Targets of Opportunity (formerly Tier III) Program

• FY 2012 Formula Allocation Program • Economic Development Program• Program Income

Additional Goals for FY 2012• Improve the data Collection and Evaluation of the program performance

metrics in order to more efficiently deploy program resources in alignment with state and federal priorities.

• Continue development and begin the initial deployment of the online grant management system to enable more efficient grant and program management, compliance, and reporting by internal and external stakeholders.

• Create Work Groups consisting of stakeholders from around Ohio to help craft programmatic recommendations to help sustain financial viability for the CDBG program into FY 2013 and beyond.

Questions?

Contact

Mike Hiler, Deputy ChiefOffice of Community DevelopmentOhio Department of Development

Michael.Hiler@development.ohio.gov(614) 466-2285

www.development.ohio.gov.Community/ohcp