Approval of proposed policies and
application evaluation and rating criteria for the 2002-03 FY Community
Development Block Grant and Healthy Neighborhoods Venture Fund Programs.
BACKGROUND
The CDBG Steering Committee and the HNVF Advisory Committee met on October 15, 2001 and October 17, 2001 respectively to discuss the policies, criteria, and process for the 2002-03 FY grant funding cycle. Each Committee approved a recommendation for its grant program to the City Council. These recommendations are detailed in the Analysis section below.
During the last grant funding Cycle, the City implemented three separate grant funding processes, one for the CDBG program and two cycles for the HNVF program. For the 2002-03 funding year, the CDBG and HNVF Committees and staff recommend a streamlined process. This process begins with the release of the applications for both the CDBG and HNVF programs on November 19, 2001.
The application form will be composed of a short, two to three page section unique to each source, evaluating the eligibility and appropriateness of the funding source for the proposed project. It will also determine whether other requirements specific to each program will be met by the proposed project. Applicants can submit proposals for either or both funding sources.
CDBG Program
For the CDBG Program, this section will elicit information to determine whether the proposed project satisfies the entry criteria for the program, including, but not limited to:
· Project must serve a low- and moderate-income population or prevent or eliminate slums and blight, as defined by the U.S. Department of Housing and Urban Development and meet the eligibility requirements outlined in 24 CFR Part 570 - Community Development Block Grants,
· Applicant must be either a public entity or an established, operating non-profit organization,
· Applicants must submit their latest Independent Audit and Management Letter or written proof of another non-profit agency designated as the fiscal agent for the project.
For the HNVF Program, this section will elicit information to determine the proposed project’s eligibility for entry to the program, including:
· Proposed project must serve City of San Jose residents,
· Proposed project qualifies under 1 of 3 funding categories: Tobacco Free Community/Health, Seniors/Health, or Education/Health,
· Applicant is either a government or private agency (either a nonprofit or for-profit entity), or recognizable association of people with a fiscal agent who agrees to abide by the terms of the City’s grant agreement on behalf of the association,
· Applicant requests a minimum of $25,000.
The second section of the application is a universal application form that requests for information needed to evaluate a proposal regardless of funding source. This section will elicit information such as proposed services, clientele, budget and funding leverage, intended program results and how they are measured, and the applicant’s fiscal and administrative capability.
CDBG proposals are due to the City on January 7, 2002 while HNVF proposals are due on January 15, 2002. As with prior funding cycles, proposals will be reviewed and analyzed by both staff and the Committees. Staff will provide the appropriate Committee with copies of the proposals and an analysis of the proposed project. Each Committee will hold hearings on the proposed projects. After the hearings, staff will present its funding recommendations to each Committee and in turn, each Committee will formulate its own funding recommendation.
Although the evaluation questions are similar, each Committee is given the flexibility to formulate its recommendations based on the program’s funding requirements and/or program specific emphasis areas. This includes stressing innovation for the HNVF Program and a good mix of programs delivered to low and moderate-income people for the CDBG Program. In its recommendation, each Committee is able to place emphasis on a criterion that is important to the Program.
Committee recommendations for funding will be presented to the City Council for approval in conjunction with the City’s budget process. Attachment A details the schedule for both programs.
One Year Funding Process
The CDBG application process for the 2002-03 FY is the second year of a two-year plan for service or Contractual Community Service (CCS) projects and the second year of a three-year plan for Community Development Improvement (CDI) projects. Because funding priorities (placements) were awarded to CCS projects for the 2002-03 FY, the CDBG Steering Committee is clarifying that applications for new CCS projects will not be accepted during the 2002-03 FY cycle. The Steering Committee also recommends that staff and the agencies work together to evaluate whether placed projects in both the CCS and CDI categories have satisfied conditions for receipt of 2002-03 FY funds rather than have these projects re-apply for their “placed” funds.
The HNVF Program allows for multi-year funding. For the 2002-03 FY process, the Advisory Committee recommends the use of a one-year funding process to allow time to evaluate results of currently funded projects; continue to clarify program policies, including clarifying the impact of multi-year and ongoing funding decisions on future availability of HNVF funds; and to enable staff to develop an outreach plan for the HNVF Program.
Both CDBG and HNVF Programs will ask applicants to indicate the proposed project’s future funding needs. This will enable the Committees to evaluate future funding commitments.
25-25-50 Allocation Formula for the HNVF Program
The allocation formula adopted by the City Council set three funding categories with target funding allocations: Anti-Tobacco/Anti-Smoking/Health (25%), Seniors/Health (25%) and Education/Health (50%). In both Cycles 1 and 2, the funding requests significantly exceeded or fell short of allocations in each category. As a result, some applications have been adapted to fit into a category with available funding, and one-time transfers have been made between the categories. To increase the likelihood of placing projects in appropriate categories and to allow greater flexibility in recommending projects for funding, staff recommends viewing the funding allocation as a “guideline” rather than a requirement. At the same time, staff will increase outreach efforts to reach new and key agencies and communities and attract a broader range of applicants.
The evaluation criteria that the CDBG Steering Committee and the HNVF Advisory Committee recommend to the City Council are detailed in Attachment B. The Criteria consist of:
· Needs - assesses how well the proposed project will meet a demonstrated community need for its services, and the population it will serve.
· Outcomes - assesses the project’s intended results and how they are measured.
· Innovation/Best Practices - assesses whether a project is innovative or utilizes best practices to achieve program results.
· Leverage - assesses the leveraging of both people and funds to support the proposed project.
· Capacity to Achieve Results - assesses the potential of the program design to produce positive results.
· Operational Performance - assesses the applicant’s fiscal and administrative capacity to provide the program.
· Feasibility (for physical improvement projects only) - assesses the agency’s readiness to implement the proposed project.
One major difference between the CDBG and the HNVF criteria is an emphasis on Innovation and/or Best Practices for the HNVF funding process. This emphasis is designed to encourage new projects to apply for this funding stream. It encourages creativity and new approaches.
Rating
Criteria
The rating criteria proposed by both Committees for the 2002-03 FY is reflected in Attachment B.
The Committees recommend the use of a 5-point Likert Scale ranging from Very Low to Very High for the following criteria: Needs and Target Population, Outcomes, Innovation/Best Practices, and Leverage. The Committees recommend the use of a 3-point scale for the following criteria: Capacity to Achieve Results, Operational Performance and Feasibility criteria. The 3-point rating scale will consist of “Yes”, “No”, and “Conditional” where any funding will be conditioned on the agency’s ability to supply certain requirements prior to City Council approval of funds.
The proposed policies, evaluation and rating criteria, and process for the CDBG Program were presented at a public hearing held by the CDBG Steering Committee on October 15, 2001 and at a public meeting held by the HNVF Advisory Committee on October 17, 2001 for the HNVF Program.
The preparation of this memorandum was coordinated with the City Attorney’s Office.
MARK LINDER
Director, Parks, Recreation and Neighborhood Services