Policy & Legislation
Special Guest Interview: HCD Deputy Director Chris Westlake
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Q: HUD is requiring HCD follow a very tight timeline to implement the NSP program. Could you walk us through the key deadlines?
A: HCD is required to submit a significant amendment to our Action Plan by December 1, 2008. A 15-day public comment period is required. HCD will post the draft substantial amendment to our website on November 14th and conduct a public comment hearing on November 21st in our Sacramento office. HUD has until February 13, 2009 to approve the amendments, although I have heard that approvals could be sooner than that.
Q: Do the counties and cities that receive a direct allocation have the same deadlines to create an action plan? And what kind of coordination is going on between HCD and these cities and counties?
A: All states and entitlements that received an allocation from HUD have the same requirement to submit a substantial amendment to their Action Plan by December 1, 2008. HCD has been working with the 46 entitlements in California to coordinate developing these Action Plans and we will continue to have follow-up meetings.
Q: What is the best way for a nonprofit organization to stay abreast of program developments and participate in the competitive grant process?
A: Stay tuned to HCD's website and the other 46 entitlements websites as the Action Plans are made public. Nonprofit organizations will have opportunities to participate with those activities.
If you were not able to attend one of the recent HCD stakeholder meetings, you can download the PowerPoint presentation from HCD's website. Below, we highlight some of the most important information.
Eligible Uses
There are five eligible uses for NSP funds. Funds may be used to:
- Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties.
- Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes or properties.
- Establish land banks for homes that have been foreclosed upon.
- Demolish blighted structures.
- Redevelop demolished or vacant properties.
The money cannot be used to help families avoid foreclosure.
What Applicants Can Do to Prepare
Given the tight timeline for this competitive grant process, HCD recommends that you begin the following activities if you are serious about participating in the program:
- Begin tracking your costs for preparing your application; pre-award costs are eligible for reimbursement.
- Consider a joint application. Joint applications will need a Memorandum of Understanding or Joint Powers Agreement to submit an application for multiple jurisdictions under one lead agency.
- Begin planning your citizen participation. Community Development Block Grants require 2 public meetings: One during the program design phase and one during the application submittal. Given the short deadlines, you should plan ahead.
- Consider the environmental impact of your proposal. National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) reviews will be required and the public noticing requirements must be fulfilled. Plan accordingly.
- Look at the Community Development Block Grant management manual and anticipate questions you may have for HCD staff.
Stay Tuned!
One in four foreclosures in the nation is of a California home; but, if you do the math, you'll see that $529.6 million is not equal to one-quarter of the available funds. Housing California will work with HCD and others to advocate for unused funds from other states to help California.
