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Director of Killeen’s Office of Community Development, knew navigating the road to a $10 million grant would be nearly impossible, so she enlisted help from colleague Edwin Revell, Executive Director of Development Services. Revell introduced McNair to Nick Deffley, who would become a powerful ally. Deffley serves as the Director of Federal Resources for the Southeast Sustainability Directors Network (SSDN), where he oversees the Local Infrastructure Hub (LIH) Cohorts Program that will provide a city a capacity grant of up to $30,000 in value of technical assistance for federal proposal development. LIH can provide applicants access to experts in grant strategy, engagement, technical exploration, and federal proposal development through the support of Bloomberg Philanthropies, Waverly Street Foundation, and the Ford Foundation. Killeen applied for the LIH capacity grant and learned quickly that they would receive the funds needed to be able to engage with Thomas Consulting Group (TCG), a team of federal proposal development experts deployed to help the city draft and submit a proposal to HUD for the $10 million Pro Housing funding. “Having LIH step in and say we’re going to connect you with technical assistance that can guide you, support you, and get you to the finish line - without them, I really feel like looking at everything I had on my plate at the time, it would not have happened. It would have just been impossible,” said McNair. In her first meeting with TCG’s CEO, Michelle Thomas, McNair, who had only been a resident of Killeen for five months, conveyed that there was a void in institutional knowledge, and she had done as much research as she could to communicate the housing need. TCG tapped into their resources to get housing needs data, demographics, rental unit availability, how units are being impacted by the Soldiers assigned to Fort Cavazos, and created a comprehensive analysis of Killeen’s housing burden. Because of the LIH capacity grant, TCG provided the technical assistance needed to help the city assemble what McNair considers a strong application. The City Council was very encouraging and appreciative of what was developed on behalf of the city of Killeen. Count the cost. Federal funding is available at historic levels, and so is the assistance needed to apply for those funds, but at what cost? In the case of the LIH program, the cost is the time and effort it takes to fill out a three-page application requesting help with applying for grants aimed at realizing your community’s full potential to address climate impacts and build racial wealth equity. For Killeen, the cost of not seeking assistance to apply to HUD for $10 million in federal funding would have been unbearably high. Barriers to housing opportunities caused by outdated zoning and land use statutes would persist. There would be little chance of developing and preserving affordable housing. Infrastructure would continue to deteriorate, and the overall quality of life for a tremendously underserved community as well as soldiers, veterans, and their families would decline. Men and women in uniform have fought valiantly for the freedoms we enjoy as a nation. Through LIH, the City of Killeen refused to surrender these military families to the status quo and has instead assembled an army to go after the funding needed to give the underserved and America’s Armored Corps access to the quality of life they deserve. “LIH is the friend and partner that you didn’t know you needed,” said McNair. “They are enthusiastic, they are professional, they are creative with how they could put together a proposal that represents your city and reflects who you actually are. I knew that we were with the right partner from day one.” Application details and additional information about the Local Infrastructure Hub Cohorts program can be found on SSDN’s website at https://www.south- by Anita eastsdn.org/pro- Tillman grams/ssdns-federal-programs/ Managing Editor local-infrastructure-hub-cohorts/. Anita is the CEO of AMCorp International For more information, contact Nick and has served as the LMA’s Communications Consultant since 2016. She can be reached at anita@teamamcorp.com or by Deffley at nick@ phone at 225-324-5444. southeastsdn.org. Building roadmaps from right now to what's next CONTACT ANITA TILLMAN 800-920-9826 EXT 700 WWW.TEAMAMCORP.COM We help you find your voice, own your narrative, and captivate the right audience. Messaging Crisis Communication Speechwriting Transition Management Social Media Management Strategic Planning Publication Development Outreach Process Improvement Communication Training Page 20 LMR | DECEMBER 2023
LEGAL BRIEFS Capital Confusion The 2023 Regular Session birthed two new laws that fundamentally change the methods by which municipalities access capital outlay funding from state coffers. Unfortunately, there are elements of uncertainty surrounding each provision. To start, Louisiana has a new Governor-Elect, who just appointed a new Commissioner of Administration. So, the current approaches and interpretations of the Division of Administration – which processes capital outlay applications and prepares the state’s annual construction budget – may not be those of future DOA administrators. Act 82 makes various streamlining changes to internal and external capital outlay processes. The most profound of those creates a new application mandate for non-state entities regarding new construction projects funded by capital outlay. The requirement means that municipalities applying for capital outlay funding for new projects must provide documentation evidencing their ability to provide funding in the amount of at least 3% of the total requested funding for the long-term maintenance of the project. Essentially, the municipality must have a sensible plan to ensure that new projects are properly maintained for the long haul. The confusion arises regarding the effective date of this change. Under the clear wording of the act, this proof mandate applies to “the funding of all projects included in the capital outlay budget for fiscal years commencing ON OR AFTER July 1, 2024.” That indicates that current capital outlay applications (submitted by November 1, 2023) would have to comply with this provision since those projects would be funded in FY24. However, current DOA leaders are interpreting the change to apply only to capital outlay applications submitted starting in 2024 and funded starting in 2025 (i.e., not applications submitted in 2023). Further complicating matters, the online portal for submitting capital outlay applications (eCORTS) has no option or field for municipalities to provide their statement of proof of funding. It is suggested that municipal members immediately prepare articulations of their maintenance funding plans to be submitted with all future applications and to be provided upon request from DOA regarding pending applications. While municipalities should consult with their attorneys to perfect such statements, here is some suggested language for consideration: “In accordance with a new requirement that Act 82 of 2023 added to Capital Outlay Law, (insert requesting entity name here) is hereby documenting, through this Capital Outlay Request document, that (insert requesting entity name here) has the ability to provide no less than three percent of the total requested amount of funding to be used exclusively for costs associated with the longterm maintenance of the project. Maintenance funding in the amount of at least ($________) will be provided through the following means: ___________________.” As always, the LMA will work closely with agency leaders to stay informed of their intentions and convey pertinent information as timely as possible. Act 292, by contrast, seeks to make local government access to capital outlay less burdensome. The new law enables the state to waive the entire local match or a portion thereof for a project undertaken by a municipality under 6,000 in population or a parish with a population under 7,500. The applicant for a match waiver must demonstrate “its inability to provide a local match” by submitting their two most recent annual audits; and if the project relates to an existing utility system, they must submit a rate study from within the past three years. But this law gives rise to many unanswered questions. By what criteria will DOA measure eligibility for the match waiver? What are the metrics for evaluating the ability to provide a local match? What degree of fiscal health are they looking for? Will they seek a “sweet spot” of applicants who are generally fiscally responsible, but simply lack the match for a particular project? What effect does the waiver request have on the overall strength and success of the capital outlay application? Some municipalities dedicate more than the minimum match in capital outlay applications to increase the chances of their approval – is that still a winning strategy? Unfortunately, there is currently NO guidance from the state to provide any answers. DOA leaders have indicated that only a few locals have asked for the match waiver, and until more applicants do so, they have no impetus to develop a written framework for evaluation. So, we are currently experiencing a circular dynamic where local leaders are hesitant to submit requests for match waivers until DOA develops evaluation criteria; and DOA is reluctant to develop those evaluation protocols until more locals request match waivers. For the time being, municipalities are encouraged to seek advice from capital outlay professionals to determine the best approach for a given project. If and when DOA formulates how it will digest this new match waiver authority, we will disseminate that information to LMA members as quickly as possible using multiple platforms. Editor’s Note: the information provided in this column is not a replacement for consultation with your own municipal attorney, and it should not be considered legal advice for any particular case or situation. by Karen Day White LMA Executive Counsel White is a member of the LMA Legislative Advocacy Team and can be reached at kwhite@lma.org. LMR | DECEMBER 2023 Page 21
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