packet

SPECIAL PARKS, RECREATION, AND COMMUNITY ENHANCEMENT COMMITTEE REVISED AGENDA Due to Parking Restrictions at City Hall, the Meeting has been relocated to the Small Conference Room at the John W. Pitts Recreation Center, 10 Electric Avenue, Dover March 24, 2011 - 10:00 A.M. - Small Conference Room - John W. Pitts Center - City of Dover Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk by phone at 736-7008 or e-mail at CityClerk@dover.de.us, should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Community Development Block Grant (CDBG) Application Review 2. Adjournment /tm S:\AGENDAS & MINUTES\Committee-Agendas\201 1\03-24-2011 SPECIAL PR&CE REVISED.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

COMMUNITY DEVELOPMENT DEPARTMENT Department of Planning & Inspections P.O. Box 475 Dover, DE 19903 Phone: (302) 736-7175 Fax (302) 736-4217 TO: Parks, Recreation, and Community Enhancement Committee FROM: Tracey N. Harvey, Community Development Manager DATE: March 10, 2011 SUBJECT: REVIEW OF FY11 CDBG APPLICATIONS ——————-..-—$ Na Thank you for your assistance in reviewing the CDBG grant applications for FY11. The items listed below are enclosed for your use during the review of the CDBG applications: A. A list of applicants and staff reports summarizing each application. CDBG Interview Schedule Federal Resources available for use Total grant request Scoring criteria for CDBG funding A CDBG Review Panel Scoring Sheet for each applicant 7mOOW By the end of the review period, staff is requesting that you summarize your evaluation of each application on the enclosed CDBG Review Panel Worksheet based on needs determined from the oral presentations from each applicant and individual scoring of each applicant. The number in parenthesis for each measure to be scored is the maximum score for a given category. The maximum total points are 100 points. Thank you in advance for the time you will be devoting to the FY11 review process. If you have any questions, please call me at 736-7175 or via e-mail at tharvey@dover.de.us. /tnh Enclosures ec: Ann Marie Townshend

nn CDBG Interview Schedule Dover Interfaith Mission for Housing First State Resource Conservation & Dev. Council Connections Community Support Program Diamond State Community Land Trust Elizabeth W. Murphey School, Inc. Downtown Dover Partnership Lunch Break 11:30 am — 12:15 pm City of Dover - Streets Project Housing Rehabilitation Program - Homeownership Assistance Program 10:00 am 10:15 am 10:30 am 10:45 am 11:00 am 11:15 am 12:15 pm 12:30 pm 12:45 pm

CDBG FEDERAL RESOURCES AVAILABLE FOR USE 7/01/11 — 6/30/12 CDBG Funds Allocation $270,000 Anticipated Program Income $ 15.507 Total Grant Allocation $285,507 20% of the grant must be allocated for $285,507 Program Administration x.20 $ 57,101 Public Service activities cannot exceed 15% $285,507 of the grant. x.15 $ 42,826 Total grant available for activities $ 228,406.00 Total grant request $ 540,347.00

CDBG Scoring Criteria Description and Demonstrated need for Proposed Program (10 points possible) - Provide an adequate description of the scope of activities proposed and how it will benefit low to moderate income persons. - Explain the type of service deficiency your project will fulfill and the population that has been affected by this deficiency. - Does the proposed activity directly address the community need identified? Management Capacity (25 points possible) Each applicant’s management capacity for each of the activities proposed will be evaluated on the basis of the most recent monitoring report, current or proposed staff qualifications, progress achieved in completing its current CDBG Program (if applicable), and most recent audit reports(s) (if applicable). Cost Effectiveness (15 points possible) Is the cost reasonable for the project in relation to the number of people being served and the availability of other resources? Work Plan (20 points possible) Will the applicants proposed scope of work be completed within the next fiscal year? Does the applicant effectively outline in the application the completion of milestones of the activity? Goals and Objectives (15 points possible) - Are the goals and objectives of this project consistent with the goals and objectives outlined in the 2005 Consolidated Plan ? - What steps will be utilized to implement your program (the process for reaching program goals)? Performance Measurements (15 points possible) - Does the project effectively describe the outcome? - Is the project consistent with the objective?

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/Agency: Dover Interfaith Mission for Housing (Public Service) Amount Requested: $46,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/Agency: First State Resource Conservation & Development Council Amount Requested: $50,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. _____ Description and Demonstrated Need for Proposed Program (10 points possible) ____ Management Capacity (25 points possible) ______ Cost Effectiveness (15 points possible) _____ Work Plan (20 points possible) _____ Goals and Objectives (15 points possible) _____ Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/Agency: Connections Community Support Program (Public Service) Amount Requested: $20,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/Agency: Diamond State Community Land Trust Amount Requested: $40,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements, Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/A gency: Murphey School Amount Requested: $49,347 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. ____ Description and Demonstrated Need for Proposed Program (10 points possible) ____ Management Capacity (25 points possible) _____ Cost Effectiveness (15 points possible) _____ Work Plan (20 points possible) _____ Goals and Objectives (15 points possible) ____ Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/A gency: Downtown Dover Partnership (Public Service) Amount Requested: $42,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) ______ Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/Agency: City of Dover — Streets Project Amount Requested: $203,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/Agency: Housing Rehabilitation Program Amount Requested: $50,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements, Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

2011 CDBG GRANT APPLICATION REVIEW SHEET Applicant/A gency: Homeownership Assistance Program Amount Requested: $40,000 Amount Awarded: The following factors will be considered in determining funding levels awarded to applicants meeting the request for proposals requirements. Please rate each category according to the maximum points available. Description and Demonstrated Need for Proposed Program (10 points possible) Management Capacity (25 points possible) Cost Effectiveness (15 points possible) Work Plan (20 points possible) Goals and Objectives (15 points possible) Performance Measurements (15 points possible) TOTAL (100 Maximum Possible Total Rating) Reviewer Signature CDBG/forms

STAFF REPORT nterfe faith Ministry to the Homeless Operating Cost Dover Interfaith Ministry to the Homeless is a non-profit organization that operates a shelter for homeless men and provides services to the homeless to assist in obtaining permanent housing. This project is a public service activity and the grant request is for $46,000 for lease and utility cost. This project meets the low to moderate income requirement. The cost is reasonable for the utility and lease cost for the program year. This project is in conformance with the goals of the 2010 Consolidated Plan by providing aid to special needs persons and providing safe and livable housing. It is also consistent with the city’s plan to assist in ending chronic homelessness. The personnel that manage the shelter have the years of experience to successfully manage a non-profit organization. A monitoring site visit was conducted in early November and the shelter received a favorable review.

PR rm em es CITY OF DOVER FER 4 FY 2011 CDBG GRANT APPLICATION FORM Cc INSPES 1. General Applicant Information A. Name, address and phone number of sub-recipient Dover Interfaith Mission for Housing, Inc. PO Box 1148, Dover DE 19903 684 Forest Street, Dover DE 19904 Shelter phone: 302-736-3600 Cell phone: 302-242-0412 for Jeanine Kleimo B. Name, position and signature of person submitting application: Jeanine Kleimo, Chair Dy, Name and i of authorizing official: Jeanine Kleimo, Chair C. Name, address and phone number of Contact Person: (If different from B above) Activity: Shelter for homeless men in Dover Amount Requested: 3 46,000 List Source of Cash Matching Funds $ 14,000

1. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: hy 2. 3. nN In column 1, list the activity. In column 2, show the total number of persons that the activity will serve. In column 3, show the number of low- and moderate-income persons that the activity will serve. . In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. . In column 5, show the amount of funds requested for the activity. - In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. . List the sources of data used to calculate benefit in the space provided at the bottom of this page. LOW/MODERATE-INCOME BENEFIT TABLE + - Astey 2. Total 3. L/M 4. % L/M 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity will | Activity will Activity will ] for Activity Benefit Serve Serve Serve Shelter for homeless 150/year 150/year 100% $46,000 $46,000 men (operating costs) —

Source of Date: 2. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Jeanine Kleimo Chair Herb Konowitz Vice Chair Walter Bagley Treasurer B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. A. Each program activity must be addressed separately, Program activities must be listed in order of priority with the program activity of highest priority first. This order of priority for program activities must be followed on all forms contained in this application. Each program activity must be fully described. For rehabilitation programs, this description must include the number of units to be rehabilitated, rental properties to be rehabilitated, any special population groups the rehabilitation program will address, the target area, and the need for the rehabilitation activity. Provide a timetable showing monthly milestones for completion of each activity. Attach drawings, plans or other documentation necessary to describe program activities. Describe each activity’s conformance with the goals and objectives of the City’s Consolidated Plan.

Mission We are an interfaith community organization addressing the physical, emotional, and spiritual needs of homeless men in the Greater Dover area by providing them shelter and sustenance, fostering self reliance, and offering encouragement and a vision of hope for their lives. Program Description The Dover Interfaith Mission for Housing (DIMH) provides shelter, meals, and assistance to homeless men from the Greater Dover community. DIMH seeks to assist those men who lack the resources to provide for their own basic needs, but who are motivated to obtain the employment and income they require to do so. After two years of moving the shelter from one church hall to another, DIMH has opened a more permanent shelter at 684 Forest Street in Dover. The 4,800 square-foot building is leased from the Downtown Dover Partnership at a low rate and has been renovated with assistance from an earlier CDBG grant. It includes space for 36 shelter guest in bunk beds, a dining hall with seating for 40, office space, a bathroom with shower facilities, a laundry room, and a kitchen. A full commercial kitchen is nearing completion and is expected to be ready by the end of February 2011. The building was renovated with a $60,000 Community Development Block Grant from the City of Dover. These funds combined with donations and considerable volunteer labor to produce a building worth more than $300,000 and that will provide shelter to homeless men for years to come. This program request is for operating funds for the building, including utility and lease costs. This shelter program is one of Dover’s largest volunteer efforts and is well-supported and accepted by the community. The DIMH board of directors includes 19 individuals who represent the religious and racial diversity of Dover, all of whom have considerable experience in the management and operation of faith communities, businesses, and nonprofit organizations. This board is very active in the daily administration of the shelter. For example, nine board members work at the shelter on a weekly basis, overseeing operations and staff, handling all financial matters, coordinating volunteers, and interacting with shelter guests. Shelter guests must not be taking psychotropic drugs, as the DIMH shelter is not a medical facility, and the safety of guests and volunteers is our major concern. Priority is given to those who are truly homeless and who seek to regain a self-reliant life as contributing members of our community. Referrals are accepted from all local social service agencies, from area faith communities, from law enforcement agencies, and from the general public. A waiting list is maintained to ensure that the shelter remains fully utilized and able to meet the needs of the greatest number of homeless men. Guests are permitted to remain in the shelter for 90 days. We recognize that it takes time for a man who has lost his work, his income, his housing, and the life has known to regain his place in the community. All guests are assessed for their needs for counseling, treatment, and

employment and referrals are made to the many local agencies that provide services for mental heaith, addiction counseling, and social services. Each man who is able to work is expected to apply for at least three jobs weekly, and assistance is provided with job applications, resume preparation, computer use, and transportation directed at future employment, Volunteers provide a wide range of functions from answering phones to providing employment counseling. The Modern Maturity Center’s senior community employment program provides a half-time secretary/receptionist who coordinates other office volunteers. Faith communities and other groups of volunteers— Lions Clubs, high school honor societies, families, and more— provide dinner to shelter guests every day of the year. This has made it possible for DIMH to serve more than 10,000 individual dinners annually on a food budget of zero. Food donations obtained from local businesses and individuals are shared with those providing cooked meals in order to maximize the resources of all. Collaborative relationships have been established with local colleges: MSW candidates from Delaware State University assist with case work, interviewing shelter guests, assessing their needs, and referring them to others inside and outside DIMH for whatever assistance is needed. DelTech interns currently provide employment counseling: they identify available local jobs that may be suitable for shelter guests, establish contact with potential employers, assist guests to prepare resumes and to complete job applications, and offer encouragement and advice to enable guests to succeed in their search for work. Nursing students from DelTech provide informal instruction on a wide range of health-related topics, take blood pressure and assist with diabetes screening, and spend time talking with shelter guests about their needs. Wesley College student internships are beginning this semester, with students contributing to shelter guest needs for literacy and computer skills. DIMH estimates that over one thousand individuals volunteer at the shelter annually, providing over 12,000 hours of service to the homeless men of our community. Target Area and Program Targets The program’s target area is Greater Dover, where it is estimated that there are at least 50 to 60 homeless men at any given time. Referrals are made to and accepted from other shelters in the state; however, there are rarely shelter beds available for men between Wilmington and Georgetown except at DIMH. DIMH shelters at least 150 homeless men annually. About 60% obtain employment before leaving the shelter. Our target for this program is 10 new shelter guests monthly, with five men obtaining jobs each month. All guests will be provided with shelter, meals, and relevant services such as employment counseling, mental health or addiction counseling, and registration for social services for which they are eligible. Reporting will include information on those receiving counseling, treatment, and public benefits. No

Relationship to Dover’s Consolidated Plan Dover's Consolidated Plan clearly evidences the need for additional assistance to the homeless, citing the relatively few shelters and the insufficient supply of affordable housing. Further, this Plan notes that “homeless needs” were identified as the number one priority on the list of components voting on by participants at a public planning session related to Consolidated Plan preparation. Safe and Livable Neighborhoods is one theme of the Consolidated Plan. DIMH has done much to improve actual and perceived safety for residents by moving men who would otherwise be homeless and living on the street into shelter. As a result, homeless men residing in the DIMH shelter do not need to beg for food or for money to meet their daily needs. Police officers readily applaud our efforts to take men off the street, thus reducing loitering and the sense of insecurity that derives from unemployed and “vagrant” men lingering in the streets. There is widespread recognition of the value of DIMH efforts along with support from and participation by hundreds of members of the Dover community. Building on Community Support DIMH received a $60,000 Community Development Block Grant and expended funds during late 2009 and early 2010. These grant expenditures were matched by a significant level of donations and grants. $50,000 in grant and targeted donations made it possible to install the commercial kitchen. An additional $ in donations from community individuals and businesses contributed to the costs of the shelter renovation. $9,000 was provided (in two years) by the Greater Dover Committee for the purchase of laundry equipment and dining tables and chairs. All other furniture—including bunk beds and office furniture-were donated to DIMH. Grants covered the cost of two laptop computers, with six other computers (along with printers, fax machine, and copier) donated by local businesses and individuals. Two of these computers are set up with internet connections for shelter guests to use. Quite a number of builders, contractors, and individual building professionals donated their time and even some materials towards the building renovation and its installations. It is estimated that the value of the building (exclusive of land) is $250,000. Among those contributing labor and skill to this renovation were several shelter guests, some of whom continue to labor on the kitchen completion. Sources and Amount of Leverage The operation of the shelter requires various annual expenditures. The shelter operating budget for calendar year 2011 is $96,000 and is broken down as follows: Operating costs exclusive of personnel total $60,000

Current sources of funds for operations are detailed below: Delaware State Housing Authority $ 7,000 (funds remaining after 12/31/10 lease payment for expenditures before 6/30/11) Cash on hand from annual campaign $11,270 Total operating funds available $18,270* Funds needed $46,000 *Our fiscal year is the calendar year. DSHA grant operate with the state fiscal year that begins July 1. We plan to apply for a third ESGP (emergency shelter) grant in the range of $16,000 to $18,000. Projected nonpersonnel operating costs for period July 1, 2011 to June 30, 2010: $60,000 Projected DSHA funds available for same period: 12,000 Anticipated donations: 2,000 Gap: $46,000 We expect to raise the required $36,000 in personnel costs from donations and foundation grants, Coordination with Business Community There is extensive coordination between DIMH and the Dover business community. Our collaboration begins with the Downtown Dover Partnership (DDP), which DIMH enabled to purchase the property on which the shelter is situated. The original property owner-—a local builder—wished to sell the property to DIMH; however, the City of Dover desired it for long-term development. An agreement was reached in which DIMH leases the shelter building from the DDP at an affordable rate while making Dover’s plans possible in the years ahead. Currently, DIMH continues to cooperate with the Downtown Dover Partnership to achieve the entrepreneurial goals of shelter guests with business ideas. There are two possibilities that offer potential for future employment of shelter guests as well as economic development for Dover. The Greater Dover Committee is also allied with the shelter: We cooperated with their request to obtain the use of the Frear Building (for which we had the right of first refusal) for the Wesley College School of Nursing. They have assisted us with creating links to the local business community and promise to assist us in identifying future real estate suitable for a shelter, transitional or other affordable housing as our tenure with the DDP reaches an end. As noted above, numerous local businesses have contributed to the renovation of the shelter, with others providing food donations on a regular or occasional basis. These include:

Frankfurt Bakery Food Lion (through Serenity Place) Olive Garden Bayhealth/Kent General Hospital La Fontana Dunkin’ Donuts Rain Designs, Inc. Hard Rock Masonry IBEW and Diamond State Electric Radius Services Kingdom Builders Lessard Builders Phil McGinnis Realty Teal Construction Associates Contractors Dover Rent-All RPJ Waste Services Webb Paving Bowers Signs Lowe’s Home Depot Delaware Made General Store SCORE Delaware Greater Dover Committee/Foundation Delaware State News Dover Post Delaware State University Delaware Technical and Community College (Terry Campus) Wesley College Connections CSP Kent County Counseling Center for Mental Wellness NCALL Research Bayhealth/Kent General Hospital Many individuals with construction experience We also note that over 45 local faith communities comprise DIMH, and various business owners and employees contribute time, meals, and materials to our organization along with Rotary and Lions clubs. We continue to see collaboration with local organizations and businesses. We look forward to the continued successful operation of the shelter with help from the City of Dover and CDBG funding. wn

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing x Economic Opportunity Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility x Affordability Sustainability Please provide a proposed outcome based on the information below that applies to your activity Number of persons, households, units, or beds assisted as appropriate __36 beds Income level of persons or households by: Very Low __100 % Low % Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Your close out report will require you provide breakdowns of those served by race, ethnicity and disability.

STAFF REPORT First State Resource Conservation And Development Council, Inc. RC & D Emergency Home Repairs This organization assists very low income homeowners with emergency home repairs such as heating systems, roof replacements, hazardous electrical systems and wheel chair ramps. The grant request is for $50,000 for minor emergency home repairs for low income persons. Since receiving a CDBG grant from the city in 2005, RC & D has completed emergency home repairs on 48 low income homeowners in the City of Dover. The 2011 grant application for RC & D has met all the threshold requirements and will service 100% very low income homeowners in need of emergency home repairs. Their grant request for $50,000 is a realistic amount to complete home repairs for up to 20 homeowners. This activity is consistent with Goal 2 of the 2010 Consolidated Plan by preserving the existing housing stock in the City of Dover.

First STATE RESOURCE CONSERVATION AND DEVELOPMENT COUNCIL, INC. AE: C: oak ene 9 February, 2011 Ms. Tracey Harvey Community Development Director FEB -9 2011 City of Dover, P.O. Box 475 Dover, Delaware 19903-0475 CITY OF DOVE INSPECTIONS & PLANNING Dear Ms. Harvey, On behalf of the First State Resource Conservation and Development Council, Inc.(RC&D), I am requesting a CDBG Sub-Recipient Grant in the amount of $50,000 in support of the activities of the Emergency Home Repair Project in repairing an estimated 15 to 20 homes in the City of Dover during the 2011/2012 Fiscal Year. The application detailing the request is enclosed, as are several supporting documents. We are very appreciative that the First State RC&D Council’s Emergency Home Repair Project has received a grant from the City of Dover CDBG program for six consecutive years. To date, the grants have provided qualifying home repairs to forty seven homeowners within the Dover city limits. We would appreciate, once again, the City of Dover's consideration of our application for funds that will assist very low income homeowners in the elimination of severe housing conditions that constitute immediate health or safety hazards to the home’s residents. Sincerely, Frederick Traute bath Smith Manager, Home Repair Project President, First State RC&D Council Enclosures First State RC&D Area, 1221 College Park Drive, Suite 101, Dover, DE 19904 Voice: (302) 678-4169 Fax: (302) 678-0843 E-mail: firststatercd@yahoo.com D&B* D-U-N-S° Number: 084402549 “... seeking the wise conservation and use of Delaware’s human and natural resources...” Officers: Gary Smith, President; Rob Davis, Vice-President: Tim Riley, Secretary-Treasurer Members-at-Large: Mark Davis, Tom Ilvento. Darl Kolar, Dr. Kenneth Bell. Bill Vidrine. Alma Smith, Alton Smith Member Organizations: Kent Conservation District. New Castle Conservation District. Sussex Conservation District, Kent Levy Court, New Castle County Council, Sussex County Council, DE Economic Development Office. DE Department of Agriculture Forest Service, DE Department of Natural Resources and Environmental Control — Cooperating with the US Department of Agriculture Member NARC&DC Circle af Diamonds A 501(c)(3) Delaware corporation. The RC&D Council offers its programs on a nondiscriminatory basis.

CITY OF DOVER FY 2011 CDBG GRANT APPLICATION FORM 1. General Applicant Information A. Name, address and phone number of sub-recipient First State Resource Conservation & Development Council Inc. Emergency Home Repair Project 1221 College Park Dr. Suite 100 Dover DE 19904 302-674-1952 B. Name, position and signature of person submitting application: rederick Traute Housing Program Manager EHRP Name and position of authorizing official: ary Sm President, First State RC&D Council C. Name, address and phone number of Contact Person: (If different from B above) Same as A/B Activity: emergency home repairs for very/low income homeowners Amount Requested: $50,000 List Source of Cash Matching Funds: see attached listing

1. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: 1. In column 1, list the activity. 2. In column 2, show the total number of persons that the activity will serve. 3. In column 3, show the number of low- and moderate-income persons that the activity will serve. 4. In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. 5. In column 5, show the amount of funds requested for the activity. 6. In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. 7. List the sources of data used to calculate benefit in the space provided at the bottom of this page. LOW/MODERATE-INCOME BENEFIT TABLE 1. Activity 2. Total 3. L/M 4.% L/M 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity will | Activity will | Activity will | for Activity Benefit Serve Serve Serve — Eliminate 30-50 30-50 100% $50,000 $50,000 unsafe housing conditions for up to 20 low income homeowner occupied homes in the City of Dover Source of Data:

2. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Frederick Traute Housing Program Manager EHRP B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. N/R 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. Please see attachments for information below. A. Each program activity must be addressed separately. Program activities must be listed in order of priority with the program activity of highest priority first. This order of priority for program activities must be followed on all forms contained in this application. Each program activity must be fully described. For rehabilitation programs, this description must include the number of units to be rehabilitated, rental properties to be rehabilitated, any special population groups the rehabilitation program will address, the target area, and the need for the rehabilitation activity. Provide a timetable showing monthly milestones for completion of each activity. Attach drawings, plans or other documentation necessary to describe program activities. Describe each activity’s conformance with the goals and objectives of the City’s Consolidated Plan. Describe the extent to which the proposed project(s) will address one or more significant priorities identified by the City’s Consolidated Plan. Describe the extent to which the project builds upon previous work

or supplements other work that will be funded from other sources. H. Describe source and amount of any funds used to leverage the City’s portion of the project. Indicate when these funds will be available. Attach documentation of any match. 5. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development of the community as it affects low/moderate-income residents of the area. 6. Have you received a sub-recipient grant from the previous funding year? If yes give the total amount $40,000.

Attachments Agency Mission and Background RC&D Emergency Home Repair Project (A Grassroots Initiative) RC&D Board of Directors Project Staff Background Emergency Home Repair Project Sources of Funding FY 11 EHRP QuickBooks Summary for City of Dover FY 10 EHRP QuickBooks Summary for City of Dover FY 11 to date EHRP Demographic / Statistical Report

AGENCY MISSION AND BACKGROUND: The mission of the First State RC&D Council, Inc. (RC&D Council) is to provide leadership, initiative, technical support, and direction in developing and carrying out a plan to assist individuals and communities in the conservation and enhancement of their human and natural resources. All programs are offered on a nondiscriminatory basis. The Council is a nonprofit, 501(c)(3) organization incorporated in the State of Delaware. A volunteer board governs the Council. The board represents the three county governing bodies, the three county conservation districts, the Delaware Department of Agriculture, the Delaware Department of Natural Resources and Environmental Control, the Delaware Economic Development Office. At-large members also serve on the board. The RC&D Council initiates, supports and coordinates ongoing projects throughout the year. These current and planned projects include: City of Dover Schutte Park Critical Area Treatment, City of Dover Conservation and Urban Forestry Initiative, Big Oak Park Constructed Wetland, Dry Fire Hydrant Maintenance and Repair, and Delaware State University Research Farm Pond. Although the majority of Council projects are of an environmental nature, the Council’s largest and longest running Project, the Emergency Home Repair Project, focuses on the “human resources” aspect of the Council’s mission. The RC&D Council promotes the spirit of volunteering in Delaware. Since 1991, the Council's Emergency Home Repair Project and its volunteers have repaired more than 3500 homes in Kent and Sussex Counties in Delaware. Over forty percent of the homes repaired are minority owned; elderly persons and individuals with disabilities owned 60 percent of the homes. The Points of Light Foundation selected the Council as a Daily Point of Light award winner in January 2001. The Council was chosen to receive the Delaware Association of Nonprofit Agencies' 2001 Achieving Nonprofit Excellence award for outstanding volunteer management. In 1999, the National Association of RC&D Councils (NARC&DC) selected the Delaware State Housing Authority, the Emergency Home Repair Project's major funder, as the National Sponsor of the Year. In early 2003, the NARC&DC again selected a major partner in the Emergency Home Repair Project, the Utica Presbytery Delaware Youth Work Camp, as the National Sponsor of the Year and the Outstanding Youth Involvement Award. In 2006, Delaware Bay Group Workcamp (co-sponsored by RC&D and St. Thomas More Academy) received national recognition by the NARC&DC through the Youth Involvement Award. For one week in July 2004 and July 2006 the Group Workcamp brought 400 youths and adult chaperones to Delaware to work with the Project in making repairs on a total of 100 low income homes in Kent and Sussex Counties.

The RC&D Emergency Home Repair Project (A Grassroots Initiative) The Emergency Home Repair Project was initiated in 1991 by a group of concerned citizens in Kent County to fill the gap left by county and state home rehabilitation programs that were not able to help homeowners with an immediate hazardous condition in their homes. The Project was founded on the belief that neighbors would help neighbors in need by joining together to make needed repairs. During its first year of existence, the Project raised $500 and enlisted ten volunteers who made repairs on ten homes in Kent County. Today, the Project is funded by grants and donations and repairs an average of 250 homes per year in Kent and Sussex Counties. Many repairs are completed by volunteers or by the homeowners themselves with materials supplied by the Project. Licensed contractors are enlisted to complete electrical, heating or plumbing repairs. The Project assists very low income homeowners in the elimination of housing conditions in their homes that are of an immediate threat to health, safety or security. The Project provides materials and volunteers or contractors to complete the repairs. There is no cost to the homeowner except (when possible) the in-kind contribution of labor. Qualifying conditions include the lack of a functioning heating system; a nonfunctioning or hazardous electrical system: nonfunctioning waste water system; missing or broken doors, windows or steps; lack of a wheelchair accessible ramp; and roof leaks causing hazardous structural deterioration. The Project does not do whole house rehabilitation. All homeowners must qualify financially by meeting the guidelines set by HUD for low income households (50 % or less of median income.) When possible, the Project partners with or makes referrals to other agencies in the completion of repairs (County CDBG Home Rehab Programs, USDA Rural Development.) The Project receives an annual grant from the Delaware State Housing Authority and Delaware Grant-in-Aid. Other funding sources include: Palmer Home Foundation, JPMorgan-Chase Foundation, Discover Bank, Kent Levy Court, the State Employees Charitable Campaign, private trust funds, and donations from other churches, organizations and individuals. With the grant funds applied for in this application, the Project expects to carry out qualifying repairs on up to 20 low income owner occupied homes in Dover during the coming 12 month period and expects to average three completions per quarter. The repair activities will be focused on eliminating conditions of an immediate health or safety hazard to the homes’ occupants. Repair activities will meet City of Dover code regulations. Contractors will complete code-work and skilled volunteers may be enlisted to complete carpentry type repairs. The activities of the Emergency Home Repair Project support the overall goals of the City of Dover’s Consolidated Plan and it’s priorities on housing issues.

BOARD OF DIRECTORS FIRST STATE RESOURCE CONSERVATION & DEVELOPMENT COUNCIL, INC. The First State RC&D Area was authorized on September 15, 1971. The Board of Directors of the First State Resource Conservation & Development Council, Inc. includes at-large members and members representing sponsoring organizations and cooperating agencies. The Council selects at-large members from each county who sit as full voting members. These members represent the general population of their respective counties. The three county governmental units and the conservation districts are sponsoring organizations. Each of these organizations has a full voting representative (or alternate) on the Council. The sponsoring organization selects these Council members and alternates. The cooperating agencies are the Delaware Department of Natural Resources and Environmental Control Division of Soil and Water Conservation, the Delaware Department of Agriculture Forest Service, and the Delaware Economic Development Office. The respective agency heads or their appointed representatives serve as voting members of the Council. OFFICERS AND COUNCIL MEMBERS: President - Gary Smith, Delaware Development Office Vice-President - Robert Davis, Sussex County Council Secretary/Treasurer - Timothy Riley, Kent Conservation District Mr. Mark Davis - At-Large Sussex County Mr. Median Vidrine - At-Large Kent County Dr. Thomas IIvento - At-Large New Castle County Mr. Carl Solberg - At-Large Kent County Mr. Darl Kolar - At-Large Sussex County Ms. Alma Smith - At-Large New Castle County Mr. Alton Smith - At-Large New Castle County Dr. Ken Bell - Delaware State University, Kent County Mr. Richard "Rick" Clendaniel Jr. - Sussex Conservation District Commissioner Eric Buckson - Kent County Levy Court Mr. Robert Palmer - Delaware DNRC Mr. Mike Valenti - Delaware Department of Agriculture ALTERNATES: Mr. Richard "Rick" Mickowski, New Castle Conservation District Mr. Rich Kirschner, Sussex Conservation District

BIOGRAPHICAL SKETCHES OF FIRST STATE RC&D COUNCIL MEMBERS Members-at-large Mr. Median “Bill” Vidrine is an at-large member from Kent County. He is a retired USDA, NRCS employee and joined the Council in January 2006. Mr. Mark Davis is a cattle farmer and retired Account Executive with Dean Witter Reynolds. He served as chair of the Council and chair of the RC&D Forestry Committee. Mark has been associated with the RC&D program in various capacities since 1969. Dr. Thomas Ilvento is with the University of Delaware Cooperative Extension Service. Mr. Ilvento's expertise is in the areas of community needs assessments and community involvement. He is an at-large member representing New Castle County. Darl Kolar is a Project Engineer and Office Manager with EA Engineering, Science, & Technology in Ocean Pines, Maryland. He has a BS in Civil Engineering and MBA in Project Management. Darl’s interests are in the environment and renewable energy. Darl joined the Board of Directors in 2009 and resides in Millsboro, Delaware. Mr. and Mrs. Alton and Alma Smith joined the Board of Directors in 2006. They are retired and serve as at-large members representing New Castle County. Dr. Ken Bell is an at-large member who joined the Board of Directors in 2005. Dr. Bell is retired from Delaware State University where he served as Acting Provost, Vice President of Academic Affairs, and Dean of the College of Agriculture and Related Sciences and. Members representing County Conservation Districts Mr. Timothy Riley is District Coordinator for the Kent Conservation District. Mr. Riley is the Council's treasurer. Mr. Richard "Rick" Clendaniel, Jr. operates a 1500-acre grain farm and manages a grain elevator. Mr. Clendaniel has been a supervisor with the Sussex Conservation District for twelve years. Mr. Carl Solberg is retired from the Kent County Parks and Recreation Department. He is a member of the RC&D Kent County Emergency Home Repair Committee. Mr. Solberg is active in the St. Jones Greenway Commission and a variety of local environmental issues. Members representing units of government Mr. Gary Smith is the current RC&D Council President and represents the Delaware Economic Development Office where he has worked for the past thirteen years. Within the Delaware Economic Development Office, Mr. Smith has worked in the Business Research Section, Business Finance Section, and Business Development Section. Mr. Smith is currently the

Infrastructure & Intergovernmental Relations Director. He received his undergraduate degree in economics from the University of Delaware and MS degree in economics from Rutgers University. Mr. Robert "Rob" Davis is a County Planner with Sussex County and represents the Sussex County Council. Rob has been active in the RC&D Greater Ellendale sewer project and the Emergency Home Repair Project in Sussex County. He currently serves as the Council's Vice President. Commissioner Eric Buckson is a member of the Kent County Levy Court and represents the 4th Kent Levy Court District. Commissioner Buckson is the Athletic Director at Polytech High School in Woodside. Alternates Mr. Richard "Rick" Mickowski is a conservationist and public education coordinator with the New Castle Conservation District and is Mr. Morrill's alternate. Mr. Mickowski has worked for the district for twenty-four years and has served on the Council for fourteen years. He has been actively involved in a variety of RC&D projects. Mr. Rich Kirschner is the Assistant District Coordinator for the Sussex Conservation District. He is the Conservation District’s alternate for Mr. Clendaniel. The First State RC&D Council has adopted a non-discriminatory policy that prohibits discrimination in its programs based on sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. Revised 1/25/11

PROJECT STAFF BACKGROUND INFORMATION William A. Bell - Mr. Bell is an employee of the U. S. Department of Agriculture, Natural Resources Conservation Service (NRCS) and coordinates activities between the NRCS and the First State RC&D Council. He is the overall manager of the RC&D program in the state. Mr. Bell holds a degree in Agricultural Economics from Virginia Tech and has worked for the USDA for over 20 years. He joined the RC&D staff in December 1994. Previously, he served as the Delaware NRCS State Administrative Officer. Fred Traute. replaced Ms. Stillson as the Housing Program Manager for the Emergency Home Repair Project (EHRP) in July, 2010. Fred has 36 years Air Force and Federal Civil Service experience in a variety of Maintenance, Quality and Management capacities. He recently completed the Non-Profit Management Certificate Course at the University of Delaware and comes to our Project by way of volunteerism. Fred, working with local volunteers, the Wyoming UMC, Group Workcamps Inc. and RC&D personnel helped to facilitate very successful Delaware Bay Workcamps in 2004 and again in 2006. Fred came on board with the Project full time in June and assumed it’s leadership in July. Ms. Frances Cardaci— Ms. Cardaci has worked with the project since June 2010 as a Field Coordinator. She works with the project's Construction Supervisor to schedule work sites in Kent and Sussex counties and has begun to work extensively in the City of Wilmington. Fran also works with volunteer groups from both Delaware and out of state. Fran retired from the USAF following a career that included flying as a C-5 Instructor Flight Engineer and as an Instructor Weapons Director aboard AWACS aircraft. She served as Chief of Operations Group Readiness in the 552 Air Control Wing at Tinker, responsible for the deployment preparedness of 2000 airmen in five squadrons. Fran earned a bachelor’s degree in Business Management from Wilmington College in 1990 and an MBA from Oklahoma City University in 1996. Asa former small business owner and Marketing and Research analyst for a major building contractor she brings a breadth of knowledge and experience to help ensure the Project’s continued success. Ms. Deborah White — Ms. White has worked with the project since January 2010. Debbie wears several hats, including Secretary, Receptionist and Intake Coordinator. She is often the first contact a client in need has with our program. Debbie’s considerable background and in depth knowledge of the housing and construction industries enables her to get to the root of a client’s issues and get the appropriate help on its way. In addition to completing client intakes, Debbie maintains client and volunteer files, prepares PowerPoint presentations of prospective clients for the project’s oversight committees while also handling the day to day office operations. Before joining the Emergency Home Repair Project, Debbie worked in both the production and administrative sides of the construction industry for national and regional builders. George Lockerman — Mr. Lockerman is a retired contractor, and formerly a Senior Employment Program (SEP) participant through First State Community Action Agency. As a SEP participant, Mr. Lockerman worked with this Project making carpentry repairs on Sussex County qualifying homes. He is currently working full time with the Project as a Construction

Supervisor and supervises three to four Senior Employment Program participants in making repairs to Project homes. His main job responsibilities are to assess repairs to be made, and to carry out the repairs or to oversee volunteers at the repair worksites. He received the Outstanding Older Workers honor during National Employ Older Workers Week, September 2007. Walter Ottinger -- Mr. Ottinger, a former housing repair contractor, he has held the position of Field Coordinator I since January 2009. He works closely with Ms. Cardaci in coordinating client repairs and assessing the emergency conditions. He assists in holding Oversight Committee meetings. Mr. Ottinger has worked as a volunteer site leader on many Make a Difference Day sites over the years. He has worked for Brass Sales, Inc, has been a foreman for Beracah Homes, and most recently has had his own repair company, Womott Home Improvement. Oversight Committees in Kent and Sussex Counties - The RC&D Council created citizens' Oversight Committees in each county to establish Project policy, to determine potential program participant's eligibility and to assess the emergency nature of the repair work requested. The committees represent the ethnic, professional and economic diversity of the county's population and community leaders. Presently, representatives include educators, ministers, county community development staff , former program participants, social service agency representatives, persons with physical disabilities, persons of diverse ethnic and racial backgrounds, community leaders and citizens at large. Kent Oversight Committee Members Marion Boon (Tax Specialist; Retired; committee member since 1993) Ray Hunt ( formerly with Independent Resources, Inc.) Rod Smith ( Community Development Specialist, Kent County CDBG program) Albert Biddle (CDBG Program Director, Kent Planning Department) Karen Young (Retired Dean of Students, Wesley College; CASA program) Helen Curry (advisory capacity. USDA Rural Development) Alton Smith (retired educator) Alma Smith (retired banker) Dwayne Powell (Strong Communities: First State Community Action Agency) Sussex Oversight Committee Members Harold Truxon ( retired businessman; community leader ) Minnie Smith (retired teacher; community leader in West Rehoboth; FSCAA Bd). Dale McDowell (CDBG program staff, Sussex County Development Office) Reverend Charles Dennis (Pastor, Ellendale) Patricia Wood (RC&D Council member; CASA volunteer; retired from EPA) Tom McCormick ( Southeast Sussex Ministerium, Volunteer coordinator) Karen Bowden (Salisbury State University; Resident of Georgetown; RC&D home repair volunteer) Carol Faucett (Building Contractor) Pat Murray (Retired; Telephone Pioneers of America) Mel Wyatt (retired ; Telephone Pioneers of America) Tom McCormick (retired, Volunteer Coordinator) William, Bill Bell (retired, Project Volunteer)

Emergency Repair Project: Sources of Funding for FY 10 (ending 30 June, 2010) and FY 2011 (ending 30 June, 2011) include: FY 2010 FY 2011 Delaware State Housing Authority $400,000 $380,205 DE Grant-in-Aid 31,000 27,900 Palmer Home Foundation 50,000 25,000 Rawlins and Potter Trusts 75,000 30,000 City of Dover Sub-recipient Grant 35,000 40,000 Discover Bank 35,000 35,000 JPMorgan Chase 200,000 240,000 Kent Levy Court 5,000 6,500 Other individual and misc. donations 3,500 3,500 TOTAL $ 834,500 $788,105 Previous Dover CDBG Sub-recipient Grants Awarded: FY 2006 (July 1, 2005-June 30, 2006) $25,000 FY 2007 (July 1, 2006-June 30, 2007) 25,000 FY 2008 (July 1, 2007-June 30, 2008) 25,000 FY 2009 (July 1, 2008-June 30, 2009) 25,000 FY 2010 (July 1, 2009—June 30, 2010) 35,000 FY 2011 (July 1, 2010-June 30, 2011) 40,000

12:44 PM 0126/14 Cash Basis Jul ‘09 = Jun 10 Total Dover Client # 10 " " Type Bill Bill Bill Bill Bill Bill Bill Bill Bill Bill Bill Bill Bil Bil Date 41/30/2009 03/31/2010 03/31/2010 03/31/2010 03/31/2010 04/15/2010 2/18/2009 42/18/2009 02/12/2010 02/12/2010 1280/2009 05/15/2010 03/15/2010 04/15/2010 Num 9386 9560 9560 9560 9560 9582 9413 9416 9498 9493 9419, 9618 9533 9450 Client initials BB ac cn) He Lk SM, J Memo Invit 585: replace furnace front and back door, steps, looring and roo! leaks lectrical repairs, smoke/co bathroom floor repairs, handicap toilet, plumbing repairs electrical repairs, smoke/co door and window repairs Roof replacement Roof replacement Anvil 141431: replace furnace Invit 708161; replace boller feplace root Replace roof Root repairs Invét 579. replace boiler FIRST STATE RC & D, INC. Custom Transaction Detail Report - ary of Dovee July 2009 through June 2010 10810 10410 10415 10410 10415 40410 10410» 10410 10410 10410 10410 10410 10410 10410 Account Contractor expense » Contractor expense Smoke/co detector inatall Contractor expensic ‘Smokelco detector Install Contractor expense Contractor expense Contractor expense Contractor expense Contractor expenve Contractor expense Contractor expense Contractor expense Contractor expense Class Cir KENT KENT KENT KENT KENT KENT KENT KENT KENT KENT KENT KENT KENT KENT 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 Split “Accounts Payable “Accounts Payable “Accounts Payable “Accounts Payable “Accounts Payable “Accounts Payable “ “Accounts Payable “Accounts Payable "Accounts Payable “Accounts Payable “Accounts Payable "Accounts Payable 2001 + “Accounts Payable 2001 : "Accounts Payable Original Amount 2,900.00 1,600.00 500.00 2,875.00 500,00 415,00 3,375,00 3,480,00 2,850.00 4,700,00 2,905,00 3,715.00 985.00 4,500.00 Paid Amount 2,900.00 1,600.00 500,00 2,875.00 00,00 415,00 3,375.00 3,480.00 2,860.00 4,700.00 2,905,00 3,715.00 985,00 4,500,00 Client oxpense 2,900.00 2,100,00 3,490.00 3,375.00 3,480.00 2,850,00 4,700,00 2,905,00 3,715.00 985.00 4,500.00 35,000.00 35,000.00 Pago 1 ot

3:07 PM FIRST STATE RC & D, INC. nies Custom Transaction Detail Report 2/7y of Dove e July 2010 through June 2011 Client # Type Dato Num Client Initials Mario Account Class Cir Split Original Amount Paid Amount Jul 40 -Jun 14 Iny 11443, install new gas boiler, hot water 1 Bill owngino11 9898, V Coll, circulators and t-stats 10410 » Contractor expense KENT 2001 “Accounts Payable 6,000.00 6,000.00 Inv 285738, RR oll furnace, stack, rooljack, 2 Bill o1ig2011 «9890 GG ines & fitter 40410 | Contractor expense KENT 2001: "Accounts Payable 2,252.62 2,252 62 Bill 11772010 9828 E replacement gas furnace 10410 Contractor expense KENT 2001 “Accounts Payable 1,695.00 1,895 00 4 Bill 12/16/2010 9861S Inv 285473, gas furnace replacement 10410 Contractor expense KENT 2001 “Accounts Payable 1787.31 9,787 34 5 Bill y2ew2010 96T ES Inv 964, install new gas furnace 10410 Contractor expense KENT 2001 “Accounts Payable 2.900,00 2,900.00 Bil 12/21/2010 9867 Inv 972, install and pressure test new gas line 10410 Contractor expense: KENT 2001 “Accounts Payable 400,00 400.00 Inv 285474, replacement gas fumnace and root 5 Bill 1216/2010 9861 FN jack 10410 Contractor expense KENT 2001 “Accounts Payable 1,901.57 1,904.57 materials expense only, bathroonvshower 7 Bill NATROIO «9827, repairs, Les SEP 40405» Materials expenso KENT 2001 “Accounts Payable 249,29 249,29 8 Bill qwise010 9835, replace gas furnace and chimney assy 40410 Contractor expense KENT 2001 “Accounts Payable 2,495.00 2,495 00 materials only, rear entry door, one window, 9 Bill 44032010 9806 MJ LesiSEP 10405» Materials expense KENT 2001 “Accounts Payable 235,91 236.91 flooring materials to repair front room floors, Bil 4o3r010 9814 Les/SEP 0405. Materials expense KENT 2001» *Accounts Payable 59,97 5991 Bull 1268/2010 9867 Inv 285472, replace gas furnace and roof jack = 40410 Contractor expense KENT 2001» *Accounta Payable 2,015.23 2,018.23 10 Bill sero = 9871 MS Inv 976, new oil furnace, vent, fuel line & filter 40440» Contractor expense KENT 2001 “Accounts Payable 3,100.00 3,100.00, ” Bul yoree010 9820S, A replace roof and 14 sheeta decking 10410 : Contractor expense KENT 2001 *Acéounta Payable 2,730.00 2.73000 lov 11436, heat pump. alrhandler, thermostat, 12 Bill 127292010 9873 WD pad 10410 Contractor expense KENT 2001 “Accounts Payable 4,560,00 4,580.00 Total 2 32,601.84 Client expense. 6,000,00 2,282.62 1,695 00. 4,787.34 3,300.00 4,901 57 2a9,29 2,495.00 2311.08 3.100 00 2,730.00 4,580.00 32,601,84 Pago tof 1

Households served by the Emergency Home Repair Project over past 12 months iis Profile wy Head of Household on Completed Repair Sites Household Tyne a Se New Castle [ Totals | % ICo-headed | 2 14 6 |FemaleHeaded | 1449 2 35 14 IMaleHeaded | 0 5 2 Disabled or Elderly Headed | 90 | 63 18 174 70 | Disabled | 30 | 82 5 67 27 | Elderly | 824 9 56 23 |___Disabled& Elderly [| 28 | 16 4 48 20 2 ——EE 20 8 [Totals 12387 25 245 100 | Age sd] Sussex [Kent [| NewCastle [| Totals | % | [Childrenunderi8 | 64ST SC‘dTsC‘CSSCCOCF FOUL «6471 =| 32_—i Adults 18-64 | S107 S| OC = |__Disabled Adultoveri8 | 69 [| 57 | 9 ‘| 135 =| 25 ~ ~| |___—DisabledChild [| —o0d| C C2SCUTt—i‘iNti‘“‘iLSSOSSSCOCT:COC TC Total persons served 250 222 — | 100 (st [ CSC*~“‘;CSC#*”’«CSussiex =‘ —Kent™_—(| Newcastle | Totals | % i i 36 34 25 95 39 a ee ee I ie (ee | (| ee J CCST Sussex [Kent | NewCastle | Totals [ % White C‘SC (Gs Cd;“C‘(<’#MCSBS“(“§$§$N [)s—“#$s$s OD:*C™C*C*#dC;:«C(«w‘'dOSSSC@YT;=C( ‘és’ Black CT CT CE ts SCdT*SCs4380 53 CE aa 3.7 INat.American (| TCT CSCC tiC:t*té‘dLSC*ST 0.3 |AsianAmerican | SCT CCdTC ($sCtPté‘iESC‘iNSC‘éd:=C‘éO IMultiracial = | CCT CCC tTTCdT:SC(‘é 0 totals TTT TSCSC«‘dL:(C“‘ézlwS:SCST;SC100 ee | ee ee (ee | 123 To 245 100 po CST CTC s00 ee De Se Homes Volunteers Assisted with Repairs J Sussex [Kent [| NewCastle | Totals % ae ee a eT, 0 48 20 a) (| (es

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing _xX Economic Opportunity Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility Affordability Sustainability _ XxX Please provide a proposed outcome based on the information below that applies to your activity The Emergency Home Repair Project defines the projected outcome as the removal of the housing condition that qualifies as hazardous or unhealthy, and of an immediate need. The Project expects to assist a minimum of 15-20 homeowners in the City of Dover through the Sub-Recipient Grant, in addition to a projected 275 homes of low income residents living in Delaware using other funding sources. The Project’s goal is to repair the most serious conditions at a reasonable expense while maintaining reasonable health and safety levels for the home’s residents. This Project’s goal is to enable the residents of homeowner occupied dwellings to remain in their own homes in relative safety. The Project, initiated in 1991, has been successful in meeting and exceeding its goals every year since although the demand exceeds the supply. Funding is the key determining factor in providing the level of support available to satisfy the demand. The Council and its Emergency Home Repair Project will continue its long term commitment to serving the essential, immediate home repair needs of very low income homeowners. Number of persons, households, units, or beds assisted as appropriate: 15 homes repaired Income level of persons or households by: Very Low __95 % Low__ 5. % Moderate 0 % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Project number persons to be served: 30-50 Your close out report will require you provide breakdowns of those served by race, ethnicity and disability.

STAFF REPORT Connections Community Support Program Chronically Homeless Adults Operating Cost This organization serves individuals that have been chronically homeless for one year or more that are extremely low income which meets the low to moderate income requirement. The grant request is for $20,000 for motel vouchers and supplies and staffing for the homeless café. This project is a public service activity. Connections has been in existence for over 20 years with a proven track record in serving the homeless community by providing supportive housing for these individuals. This organization fully has the staff qualifications necessary to manage a CDBG grant. The Department of Housing and Urban Development awards funding annually to this organization, and they are well aware of the guidelines and regulations for carrying out a CDBG activity. This project fully supports the city’s plan to end chronic homelessness by utilizing programs to eliminate barriers to affordable housing. Connections received a CDBG grant in 2010 to provide motel vouchers to homeless persons in the city which really had an impact on the number of homeless persons provided with temporary housing in the winter months in the city. This activity is consistent with Goal 1 of the 2010 Consolidated Plan by providing aid to special needs persons.

CITY OF DOVER FY 2011 CDBG GRANT APPLICATI ie) NE 1. General Applicant Information A. Name, address and phone number of sub-recipient Connections Community Support Programs, Inc. 500 West Tenth Street, Wilmington, DE 19801 (administration) 621 West Division Street, Dover, DE 19901 (Dover program office) 1-302-230-9103 B. Name, position and signature of person submitting application: Cc é herine Devaney McKay, President and CEO Name and position of authorizing official: Catherine Devaney McKay, President and CEO C. Name, address and phone number of Contact Person: (If different from B above) Same as above Activity: Motel vouchers and other cold weather accommodations for homeless people in the city of Dover. Amount Requested: $20,000 Amount Proposed Use $ 8,000 Supplies and per diem staffing for the homeless café $12,000 Motel vouchers List Source of Cash Matching Funds: $ 119.195 Del. Div. of Substance Abuse and Mental Health, PATH grant pass-through $ 133,333 US DHHS SAMHSA Treatment for Homeless Grant $561,000 Connections SHP programs in Dover—HUD 4 and Easy Access $813, 528 Total Match

2. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: 1. In column 1, list the activity. 2. In column 2, show the total number of persons that the activity will serve. 3. In column 3, show the number of low- and moderate-income persons that the activity will serve. 4. In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. 5. In column 5, show the amount of funds requested for the activity. 6. In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. 7. List the sources of data used to calculate benefit in the space provided at the bottom of this page. LOW/MODERATE-INCOME BENEFIT TABLE 1. Activity 2. Total 3. L/M 4.% L/M 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity will | Activity will | Activity will | for Activity Benefit Serve Serve Serve Motel = 50 50 100% $12,000 $12,000 vouchers Incl t Eee dy tae 50 100% $ 8,000 $8,000 th fe Meer eS unduplicated Source of Date: Delaware Homeless Management Information System

3. Management Capacity A, List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Sara Weimer Grant Manager Melissa Isbell Controller Brad Milton, MS Director of Homeless Services B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. N/A. Connections is a current recipient of CDBG funds to serve homeless individuals in Delaware. 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. Connections Community Support Programs, Inc. is a Delaware not-for-profit organization founded in 1985 to help vulnerable and disenfranchised Delaware residents to improve their lives by providing a comprehensive array of affordable and accessible primary medical, mental health and substance abuse treatment, employment, and housing opportunities that help the individuals and families receiving services to become accepted and productive members of their communities. Connections operates 55 separate locations in Delaware, including more than 500 units of housing; eight outpatient clinics providing integrated primary medical care, psychiatric treatment and substance abuse services; intensive case management services; homeless outreach services; prison reentry services; services for adults with cognitive and developmental disabilities; employment and training services; DUI treatment; and residential substance abuse treatment. Our housing projects include 30 units of permanent and transitional housing in the city of Dover that serve 100% chronically homeless individuals. In 2011, Connections will provide services to almost than 10,000 unduplicated Delaware citizens. A. Each program activity must be addressed separately. Program activities must be listed in order of priority with the program activity of highest priority first. This order of priority for program activities must be followed on all forms contained in this application. The proposed program will increase homeless shelter capacity by providing motel vouchers for homeless individuals and families who have no other immediate housing alternatives. These individuals and families will be identified through the PATH

homeless outreach program operated by Connections in the City of Dover. During the next CDBG funding cycle, Connections is also proposing to offer an alternative to emergency shelter during the coldest nights of the year by operating a homeless café at 621 Division Street from December 15, 2011 through March 15, 2012. This will be the first Homeless Café in Dover, replicating a similar program that Connections operates in Wilmington. These cafes provide safe refuge all night long, 7 days a week, to homeless individuals who are ‘shelter resistant.’. Many of the individuals who come to the Wilmington Homeless Outreach Center during the day do not have a regular place to stay at night. Some of them are ‘banned’ from emergency shelters or are among the shelter-resistant homeless population and are unwilling to stay in traditional emergency shelters because of fear, mental health problems and other barriers. The cafés do not have beds, but guests are welcome to sit at a table all night if they have no alternative. Coffee, soup and blankets are provided. We are seeking to expand this effort to Dover because there are no cold weather emergency shelters in Dover now where homeless individuals can come in without question. Our experience in Wilmington suggests that there is a core group of chronically homeless individuals who will make immediate use of this option if it is available. Each program activity must be fully described. For rehabilitation programs, this description must include the number of units to be rehabilitated, rental properties to be rehabilitated, any special population groups the rehabilitation program will address, the target area, and the need for the rehabilitation activity. The proposed program offers two alternatives for homeless individuals and families who are ineligible to use other shelters and/or when there is ‘overflow’ from other shelters. These alternatives are motel vouchers and a new homeless café. The City of Dover motel voucher program will target individuals and families with incomes below 30% of median who are homeless. The demand for motel vouchers in Dover has increased dramatically over the last several years. In FY 2009, our vouchers in Dover lasted for 5 months of the fiscal year before they ran out. With the same funding allocation in FY 2011, we ran out of vouchers in Dover in just two months, having provided shelter for 39 unduplicated households for 392 nights. Fifteen households made use of motel vouchers twice during the period 12/3/10 through 2/8/11, when the vouchers ran out. Motel vouchers are critical for families with teenage children or an adult male member as there are few shelters that will accept families with these configurations. Among the homeless population, there are also individuals who have been ‘banned’

from emergency shelters or who resist the use of those shelters for other reasons. These individuals may be resistant to entering a shelter because they have mental health problems and are scared or confused, or they may have had a bad experience at a shelter, or are unable to adhere to shelter rules. While this does not pose a serious issue during more mild times of the year, it can be dangerous during the cold, bitter winter months and other times when the weather is extreme. When temperatures drop to extreme levels, hypothermia and frostbite becomes an issue and homeless individuals are more vulnerable because they are stationary and exposed to the elements without options for relief. In an effort to respond to the shelter-resistant population and provide options to emergency shelters, several large cities, including Philadelphia and New York, have begun to offer around-the-clock winter cafés. While some shelter-resistant homeless individuals are afraid or unwilling to stay in night-time shelters, they will come in from the cold to sit in the café. The cafés serve coffee and soup and offer a warm and safe place to sit all night or for a limited time. Connections recognizes the importance of providing alternatives for homeless people who are unwilling to use shelters and for those who are not able to stay in shelters during the day and has operated a successful homeless café in Wilmington for the last two years. Dover has only one emergency shelter and does not currently have a ‘code purple’ shelter. In addition, most emergency shelters close during the day, leaving their residents with few alternatives. The Homeless Café is one of the few places that is open seven days per week offering safe refuge, food and access to rest rooms. We are proposing to use our Dover Homeless Outreach Center, located at 621 Division Street, to offer around-the-clock refuge from December 15, 2011 through March 15, 2010, for up to 30 ‘shelter resistant’ individuals per night. The Dover Homeless Outreach Center currently provides day time refuge, outreach, benefits assistance, and medical and psychiatric treatment for difficult-to-serve homeless people with mental health and substance use conditions. Individuals can receive assistance to find employment, income, and housing that will help them to end the cycle of homelessness. In this location, we currently see as many as 30 homeless people each day of operation, some days more, seeking services and a warm place to sit. Daytime weekend services are also desperately needed by the homeless community as Saturdays and Sundays are days of the week when other centers and shelters are closed. During 2010, we provided a place for homeless people to seek sanctuary on the weekend days in Wilmington, not only from the cold, but also from the extreme heat during the summer and the unusually frequent episodes of precipitation during the winter. It is our goal to offer these weekend services in 2011 to homeless individuals in need in the city of Dover.

A Provide a timetable showing monthly milestones for completion of each activity. The motel vouchers will be distributed beginning on December 1, 2011 and ending when they are depleted, but not later than April 30, 2012. The Café will be open from December 15, 2011 through March 15, 2012. Attach drawings, plans or other documentation necessary to describe program activities. N/A Describe each activity’s conformance with the goals and objectives of the City’s Consolidated Plan. The proposed project is in keeping with the City’s goal to increase homeless shelter capacity. It is also in keeping with the Consolidated Plan’s top ranked priority need, which was homelessness, and the related goal of providing aid to special needs persons. Describe the extent to which the proposed project(s) will address one or more significant priorities identified by the City’s Consolidated Plan. The City of Dover’s Consolidated Plan discusses homelessness in depth, and stakeholders who participated in the planning process ranked homelessness as a priority need, for which few options exist. Of critical importance in the Consolidated Plan is the city of Dover’s interaction with Delaware’s Interagency Council on Homelessness and the city’s support of the Ten Year Plan to End Chronic Homelessness. The Consolidated Plan states: “The City has developed the following goals to end Chronic Homelessness over the next ten years... ¢ Continue to utilize programs to eliminate significant barriers to affordable housing... e Continue working with ...other housing providers to provide assistance to very low and extremely low income persons.” Providing funding to offer two shelter options—motel vouchers and the café— based on the specific needs of the individuals requesting help meets these goals in a very tangible way by providing access to mainstream income supports, behavioral health care, employment and housing options to the maximum number of City of Dover residents who are chronically homeless or at risk for chronic homelessness. The proposed program will meet the City of Dover’s goal to increase emergency shelter capacity.

G. Describe the extent to which the project builds upon previous work or suppiemenis other work that wiii be funded from other sources. Projects for Assistance in Transition from Homelessness (PATH), is a federally- funded nationwide outreach program that provides help to homeless individuals with mental health and other disabilities in every state. Connections has operated Delaware’s PATH Homeless Outreach program in New Castle County since 1989. In 2007, the program was expanded to Kent and Sussex Counties, and in 2008, Connections was awarded a Treatment for Homeless grant from the U.S. Substance Abuse and Mental Health Administration that serves homeless individuals in all three counties. The Treatment for Homeless grant provides case management, health care, benefits and employment assistance to individuals living in HUD supportive housing for the homeless programs, including two programs with 30 beds that Connections operates in the City of Dover. During 2009, Connections was awarded ARRA Homelessness Prevention and Rapid Rehousing (HPRP) and TANF funds from the City of Wilmington, New Castle County and the Delaware State Housing Authority to provide financial assistance to individuals and families who are homeless or at risk for homelessness. We are providing those supports, which include housing subsidies for up to 18 months, through our PATH program statewide. While we used HPRP and TANF funds to assist the households receiving motel vouchers to locate more stable housing last year, those funds are depleted now. At the same time, demand has continued to grow. Over the last two years, Connections has worked to raise philanthropic funds to supplement our federal and local funding to help homeless individuals and families through these difficult financial times. H. Describe source and amount of any funds used to leverage the City’s portion of the project. Indicate when these funds will be available. Attach documentation of any match. Activity Amount Source of Funds When Available PATH Homeless $119,195 US DHHS SAMHSA Immediately Outreach Program, Kent passed through County and Homeless Delaware Division of Transitional Housing Substance Abuse and Program in Kent County Mental Health HUD SHP funds $561,000 HUD Immediately SAMHSA Treatment for | $133,333 US DHHS SAMHSA Immediately Homeless grant Total $813,528 5. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development

of the community as it affects low/moderate-income residents of the area. Connections has strong working relationships with the city of Dover and the Delaware State Housing Authority. Connections has worked with several apartment complexes and community property owners to provide housing and supportive services in Dover, especially Trinity Capital Management which owns Autumn Run and Pine Grove apartments and Harrington Realty. Through both our housing and homeless outreach efforts, we have developed partnerships with numerous other service providers, including Shepherd’s Place, People’s Place, Psychotherapeutic Services Inc., Delmarva Rural Ministries, and Kent and Sussex Counseling Services. We rely on these networks to help us ensure that the persons we serve have access to a full range of supports. 6. Have you received a sub-recipient grant from the previous funding year? If yes give the total amount $15,000.

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing Economic Opportunity | Is Is Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility Affordability Sustainability I> [>< Please provide a proposed outcome based on the information below that applies to your activity Number of persons, households, units, or beds assisted as appropriate 75-100 Income level of persons or households by: Very Low ___ 100. % Low. % Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Your close out report will require you provide breakdowns of those served by race, ethnicity and disability.

STAFF REPORT Diamond State Community Land Trust (DSCLT) Diamond State is a non-profit organization that was established in 2006. DSCLT provides affordable housing to persons who are 60% below the area median income, and the land trust are the owners of the land. The grant request is for $40,000 for rehabilitation and energy enhancements. Diamond State has created several partnerships throughout the State of Delaware with agencies who provide and support affordable housing programs for low income persons. This project meets the low to moderate income requirement. The grant request in the amount of $40,000 is a realistic amount for the renovations and energy enhancements for two properties. This project is consistent with Goal 2 of the 2010 Consolidated Plan by preserving the existing housing stock in the City of Dover.

CITY OF DOVER FY2011 CDBG GRANT APPLICATION FORM 1. General Applicant Information A. Name, address and phone number of sub-recipient: Diamond State CLT, Inc. 363 Saulsbury Road, Dover, DE 19904. 800-282-0477, direct line 302-229-0818. B. Name, position and signature of person submitting application: Van Temple, Executive Director. Name and position of authorizing official: Dawn Poczynek-Holdridge, President of the Board of Directors. C. Name, address and phone number of Contact Person: (If different from B above): same as above Activity: Affordable Homeownership for 53% to 80% AMI, Permanent Affordability Amount Requested: $40,000 List Source of Cash Matching Funds: $128,000 Dover NSP1 Recycled & Kent NSP2

1. Low/Moderate-Income Benefit: LOW/MODERATE-INCOME BENEFIT TABLE 4.% L/M 5. Amount Persons Persons Requested L/M Activity will | Activity will |Activity will | for Activity Benefit Serve Serve Homeownership] 6 | 6 100% $40,000 __|__$40,000 Long-Term Benefit of CLT Model. The Benefit Table provided in the application does not reflect the full benefit of investing in community land trust homes. A broader measure than units created is unit years - the number of years that affordability for low-income households is actually available. Also, the number of families served over time is a more accurate reflection of L/M benefit than the number of families served initially. Here’s a side-by-side of our proposal compared to typical CDBG/HOME homeownership: Diamond State CLT CDBG $s Units | Affordability Unit # HHs Served * - Two Homes Dover ce Period Years eed Minimum Fas ae 000 15 years Affordability Controls * The average tenure of CLT homeowners is about 7 years, exactly the same as the market at large. 2. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: -Recipient Personnel Titl Jo Ann Zorb Homeownership Program Manager Van Temple Executive Director Diamond State has two full-time persons and contracts for all other services. We use a development team approach to all projects - assembling the necessary skill sets, planning out the work and getting it done. We are a highly efficient group. Total organizational overhead is 7%. Temple has nineteen years experience both in direct development of affordable homes and consulting with cities, counties, states and non- profits in affordable housing development including programs amounting to hundreds of ‘completed acquisition/rehab homes. Zorb has many years experience in real estate development, sales and mortgage industry including two years with Diamond State.

Temple, Zorb and partners are a productive and efficient real estate development team. In last 15 months this team has acquired and rehabbed 19 homes with our partners. B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. Please see Attachment A. 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. Please see Attachment B for Missi tatement. Planned Program Activity & Description For the Dover Homeownership Initiative we are planning to purchase two single family homes in Northwest Dover Heights, Lincoln Park or surrounding areas that will make nice homes for a low-income families. We will thoroughly renovate the homes to make sure that they are like new in terms of major building systems so that our buyers will not face any major repairs in the initial years. One of our criteria for selecting each home will be the roof orientation and size for installing solar panels for electricity generation and solar hot water panels to achieve maximum benefit from these renewable energy investments. These homes will be truly affordable for the qualifying owner-occupants because: « Under the community land trust model the buyer owns the house and Diamond State CLT owns the land parcel upon which the home rests. This enables us to price the home about 25% below market value. The CLT buyer’s monthly mortgage payment will be substantially lower than it would be under a traditional, fee-simple sale. ¢ There will be significant energy savings through the solar panel electric and solar hot water systems. In a typical house, the electric water heater accounts for 15% of electricity use. Renewable electric energy from the solar panels will further reduce monthly energy costs. Once completed, the homes will be sold to low-income families with incomes between 53% & 80% of the Area Median Income. Community Land Trust Model Under the CLT model 100% of the public and private investment used to make the home affordable in the first place is secured forever in the home. Unlike other methods, CLT homes always remain affordable to low-income families in perpetuity. The CLT model is proving to be safe and effective way of helping many working families move from rental to homeownership, and a safe haven in a down real estate market.

Recent studies and statistics from older CLT organizations are showing impressive results: * foreclosure rate among CLT homeowners is 1/8 the national average * 67% of families who sell their CLT homes purchase market rate homes * wealth-building among CLT homeowners is empowering families to move beyond income-restricted housing and strengthening economic independence. CLT homeowners enjoy the tax deductible benefits of owning the home, just like traditional homeownership. Diamond State maintains an on-going relationship with each CLT owner and provides assistance when needed. These on-going relationships are one of the primary reasons that CLT homeowners are more successful in remaining homeowners when compared to first-time homebuyer programs nationally. Please see Attachment C for more it the ex! results of this Initiative. Timetabl Fundraising - other funds secured Site selection work - June-July, 2011 Acquisition planned for August-September, 2011 Rehabilitation period - October-November, 2011 Sale period - December, 2011 - February 2012 On-going relationship to CLT owner-occupants - forever. Conformance to City's Goals & Objectives & How Program Addresses Priorities The Dover Homeownership Initiative specifically addresses the top two goals in the City’s Consolidated Plan: * Goal 1 Encourage owner-occupied housing in low to moderate-income areas. * Goal 2 Preserve the existing housing stock in the City. This Homeownership Initiative will continue to provide affordable housing opportunities for generations to come through the community land trust model. Building Block Approach Diamond State CLT works in partnership with NCALL Research. NCALL provides HUD- certified basic homebuyer counseling to potential CLT homebuyers. We are active with NCALL and several prospective homebuyers now in the City of Dover and Kent County for purchasing NSP homes. This Initiative is the core activity of Diamond State throughout the state. During this period of downturn in the real estate market and economy in general, construction of new homes has slowed significantly, making re- investment in existing housing stock preferable.

Leverage Funds The additional funds needed for this program will be provided through recycled Dover NSP1 funds and Kent NSP2 funds. Approval of City of Dover CDBG funding will substantially guarantee the completion of these unique, affordable, energy efficient homeownership opportunities. 5. Each application should also describe the following: A. Coordinate with businesses regarding the development of the community. We utilize proven local contractors to perform rehabilitation and renewable energy work on all our purchase/rehab/for-sale activities. 6. Have you received a sub-recipient grant from the previous funding year? We did not received CDBG grant funding from the City of Dover last year. We work in partnership with the City through NSP1 and have acquired and rehabbed four vacant, foreclosed homes through this program. One home has been sold and sales are pending on two others.

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing x Economic Opportunity Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility Affordability x Sustainability Please provide a proposed outcome based on the information below that applies to your activity. Two permanently affordable homes in Dover for low-income families. Number of persons, households, units, or beds assisted. Two households assisted initially, 28 households estimated over 99-year period based on average turnover in U.S. Income level of persons or households by: Very Low 53% Low. 80% Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. 100% L/M service. Homes will serve an estimated 6 L/M persons initially and 84 L/M persons over life of investment. Your close out report will require you provide breakdowns of those served by race, ethnicity and disability. Current CLT homeowners are: 75% Female Headed 50% Black 25% Hispanic 25% White

ATTACHMENT A DOVER HOMEOWNERSHIP INITIATIVE Diamond State CLT, Inc. - Experience Statement. Diamond State has been in business since 2006 as a Delaware Corporation, achieving non-profit status in October 2006. Currently Diamond State CLT has twenty-four permanently affordable homes in its statewide inventory, preserving about $2,000,000 in public investment. We are a statewide partner in the Neighborhood Stabilization Program (NSP). In addition to NSP1 Diamond State has other projects and partnerships in process including: + Partnership with Central Delaware Habitat for Humanity * Partnership with Habitat for Humanity of New Castle County * Cornerstone West (Wilmington) * Edgemoor Revitalization Cooperative (north of Wilmington) + New Horizons Community near Laurel in Sussex County - 53 homes * Colony South - 23 homes (partnership with Interfaith Community Housing of Delaware) + NSP2, NSP3 - additional CLT homes across the state. STAFE Van Temple (Executive Director) Van has over three decades experience in Housing and Community Development, City Government, and Non-Profit Management. Mr. Temple held management and executive positions with the City of Dallas, Texas in Police, Personnel, Equipment Services, Information Services, and Communications Departments over a thirteen-year career. As Executive Director of Old North Dayton Development Corporation, he helped build the organization over seven years to be recognized by his peers as “one of the most productive and professional CDCs in Ohio." Since 2000 Mr. Temple has consulted with a number of cities, counties and non-profits in affordable housing and community development in Connecticut, Delaware, Indiana, Maryland, Michigan, Missouri, Montana, New Jersey, Ohio, Pennsylvania, and Virginia. His consulting work includes: Project Development & Implementation, Neighborhood Revitalization Planning & Organizing, Organizational Assessments & Strategic Planning, Financial Planning & Resource Development, Housing Development Training, and Non- Profit Start-Ups. Mr. Temple has been involved in numerous affordable homeownership and rental development projects both as an executive director and consultant. Beginning in 2006 Mr. Temple is serving as the first Executive Director for the Diamond State CLT. Mr. Temple serves as Vice President of the Board of Directors of the National CLT Network and is active in public policy and funding initiatives at the national level.

ATTACHMENT A Jo Ann Zorb (Homeownership Program Manager) Jo Ann has many years experience as a mortgage broker, developing new business and originating residential mortgages, interfacing with customers, underwriters, lenders, and support staff. For several yeas she served as chair of the family selection committee for Sussex County Habitat for Humanity, developing and overseeing the homebuyer outreach, screening, and selection process. Karen Todd (Systems & Communications) Karen is an experienced technical writer and trainer for Microsoft Office software applications, including Word, Excel, Access, Outlook, Visual Basic for Applications, and web design using Dreamweaver, HTML, CSS, ASP with VBScript, and PaintShop Pro. Karen is currently with Online Consulting, Inc. in Wilmington. She is skilled in organizational and project management, communications, and problem solving with additional background in economics, investments, and financial markets. BOARD OF DIRECTORS Kelly Crumpley (Secretary) Kelly is a Planner with the Kent County Department of Planning Services with many years experience in land use and planning. In his current position, Kelly specializes in highly complex site plans and subdivision plan reviews and has a wide ranging knowledge of Kent County Code covering subdivision, land development and zoning. An important part of his current work is interfacing with any and all citizens of the County and elected officials concerning long range planning and the County Comprehensive Plan. He holds a B.A. and J.D. degree from the University of Oklahoma. Kelly is a member (and past Chair) of the Delaware Population Consortium, the entity responsible for issuing population projections for the State. He has been a member of the Town of Wyoming Planning and Zoning Commission for ten years. Mr. Crumpley also has numerous years of experience in residential building materials and processes, including plumbing and masonry. Kim Elliott Kim is our first lease-holder Board member. She works as a self-employed software specialist in the ticketing and events support industry. As more CLT homeowners join - the Board will become one-third lease-holder members, an important part of the governorship of the statewide community land trust. Denise Freeman Denise is the Homeownership Program Coordinator for NCALL Research, a NeighborWorks organization that provides homeownership counseling, financial literacy, and foreclosure prevention services across the state, as well as technical assistance for LIHTC projects, and a multi-state self-help housing program. She is responsible for overseeing delivery of housing counseling services at offices in Dover, Georgetown and

ATTACHMENT A Newark. Denise has many years experience in first time homebuyer mortgage and other housing assistance programs. Dawn L. Poczynek-Holdridge (President) Dawn serves as a Senior Business Developer for Fannie Mae Corporation and has primary responsibility for developing/managing rural housing initiatives for the Northeast U.S. She supports the Multi-Family Affordable Lender channel and manages RD 538 Guaranteed Loan product and originations. Dawn has many years experience in affordable housing, mortgage origination, and banking with an emphasis on rural development in New Jersey, Delaware and other Northeastern states. Ken Smith (Treasurer) Ken Smith has over thirty year’s experience in community development work both in the United States and abroad. Before becoming Executive Director of the Delaware Housing Coalition in the mid-1990s, he worked for many years on local and national homeless issues, including the creation and operation of homeless shelters in DE and MD. Since 1997 he has led all aspects of DHC’s work in affordable housing advocacy, technical assistance, and grassroots education and organizing. Amy M. Walls (Vice-President) Amy is the Assistant CRA Director for Discover Bank, Delaware. In this capacity she works with community members and organizations to increase affordable housing and social service opportunities for low- and moderate-income households. She administers grant budgets, manages delinquent mortgage portfolio and assists in managing a retail bank. Prior to working with Discover, Amy served as the Economic Development and Information Technology Manager for the City of Seaford, DE.

ATTACHMENT B DIAMOND STATE COMMUNITY LAND TRUST MISSION STATEMENT: To strengthen communities by creating and stewarding perpetually affordable housing and promoting sustainable use of the land. Diamond State was founded in 2006 through the combined efforts of the Delaware Housing Coalition, Delaware State Housing Authority, and other organizations to create permanently affordable housing in all three Delaware counties near where low- and moderate-income households work, go to school and church. Our 10-Year Business Plan calls for the creation of an inventory of 350 or more permanently affordable homes across the state. We partner with proven affordable housing producers and with HUD-certified homebuyer training agencies for buyer education. Diamond State is attracting national attention for its partnership model, business/production planning, and statewide focus. Diamond State is the first statewide community land trust in the U.S. In 2009 the Ford Foundation and the Shared Equity Coalition selected Diamond State as “one of the most promising local strategies that can most quickly achieve significantly greater scale.” The City of Dover is one of our earliest municipal partners. Diamond State is active with Dover through the Neighborhood Stabilization Program and the Carper/Dover Homeownership Initiative.

ATTACHMENT C Expected Results of Dover Homeownership Initiative * The Dover project will provide two permanently affordable homes. Through the CLT model all homes remain affordable generation after generation with no additional demand for public dollars beyond the initial investment. Our target is households in Kent County with combined family incomes from 54% to 80% Area Median Income (AMI). Units | Affordability | #HHs Served | #L/M Persons Served Period Diamond State CLT - 2 99 years 28 84 Two Homes Dover *based on an average tenure of 7 years, the national average for all homeowners and for CLT homeowners. * The CLT model is unique in its ability to make the City of Dover’s investment more cost effective than traditional affordable housing methods. An investment of $20,000 in one home, for instance, represents an annual cost of $202/year under the CLT model*. That same investment in a 15-year affordability model costs $1,333/year of affordability. That makes an investment in the CLT model 6.6 times more cost efficient. * 99-Year analysis. + The CLT model is especially effective at protecting against foreclosures and the ups and downs of the real estate market. The foreclosure rate for CLT homes is one-eighth the national average according to a 2009 national survey. CLT homeowners have been protected from the “too-good-to-be-true” mortgage and refinancing craze that swept the country over the last decade. CLT homeowners are permitted to use only standard 30- year no-nonsense mortgages at purchase and cannot refinance without the permission of the community land trust organization, the owner of the land. CLT homeowners, in effect, have the benefit of keeping their homebuyer counselor as an on-going partner to assist with any problems that may arise and prevent unwise refinancing. As a result, homeowners in the Dover project will be largely insulated from the bust and boom cycle of the real estate industry. * The CLT model promotes asset building by helping families build wealth through homeownership when their only other alternative is to rent. Research from older community land trusts indicates that CLT homeowners are far more successful at saving money and building wealth than families that remain as renters. * CLT homeownership creates security of tenure and continuing homeownership. It is a way for families who have here-to-fore been renters, to move into homeownership. Sixty-seven percent of CLT homeowners purchase market rate homes when they sell their land trust home. CLT homeowners are more successful in remaining homeowners when compared to first-time homebuyer programs nationally. The CLT model is proving to be a very effective way of helping families into homeownership.

ATTACHMENT C : Diamond State is viewed as one of the leaders nationally in the community land trust movement. In 2009 the Ford Foundation recognized Diamond State as “one of the most promising local strategies that can most quickly achieve significantly greater scale.” Successful completion of the Dover Homeownership Initiative and other projects like it will help position the state of Delaware to receive Federal Demonstration Project funding in future years. Attracting additional non-state affordable housing dollars to Delaware is one of the explicit goals of the Diamond State CLT.

Van Temple 717 Coverdale Road Wilmington, DE 19805 Senior Consultant with 37 Years Experience in Housing and Community Development, City Government, and Non-Profit Management. Mr. Temple held management and executive positions with the City of Dallas, Texas in Police, Personnel, Equipment Services, Information Services, and Communications Departments over a 13-year career. As Executive Director of Old North Dayton Development Corporation, he helped build the organization over seven years to be recognized by his peers as "one of the most productive and professional CDCs in Ohio." Since 2000 Mr. Temple has consulted with a number of cities, counties, states and non-profits in housing and community development in Connecticut, Delaware, Indiana, Maryland, Michigan, Missouri, Montana, New Jersey, Ohio, Pennsylvania, and Virginia. Beginning in 2006 Mr. Temple is serving as the first Executive Director for the Diamond State Community Land Trust, a statewide land trust for Delaware. Diamond State is building an inventory of permanently affordable homes for low- and moderate-income homeowners through partnerships with housing developers, foundations, state and county governments, banks, and others working for affordable, balanced housing. Mr. Temple serves as Vice President of the Board of Directors of the National CLT Network and is active in national public policy and funding initiatives. He also serves on the Board of the Delaware Housing Coalition. His work includes: Nelghborhood Revitalization Planni 10 ii » Newhall Neighbors, Philadelphia, PA * Old North Dayton Development Corporation, Dayton, OH s South Philadelphia Area Revitalization Corporation, PA = Redevelopment Authority, City of Erie, PA = Southeast Gateway Neighborhood, City of Bridgeton, NJ = Community Action Agency, City of Jackson, MI = Greater Brandywine Village Revitalization, Wilmington, DE « Edgemoor Revitalization Cooperative, DE Project Devel {Impl ~ = City of Dallas, TX = Elderly Housing Assistance Program, Dallas, TX =» Media Coordinator, Bread for the World, Dallas, TX 9/14/11 naza

Van Temple 717 Coverdale Road Wilmington, DE 19805 » Habitat for Humanity, Dallas, Philadelphia, Dayton s Advantage Home Remodeling, PA & OH # Old North Dayton Development Corporation, Dayton, OH » Healthy Home Repair Program, City of St. Louis, MO s Diamond State Community Land Trust, DE * NCALL Research, Inc. DE « Greater Brandywine Village Revitalization, Wilmington, DE O zational A is ic Planni = Police, Personnel, Fleet, & Communications Departments, City of Dallas, TX « Ohio Community Development Corporation Association = St. James Community Development Corporation, Newark, NJ « AHC (non-profit housing corporation), Arlington, VA « Housing Services Corporation of Diocese of Camden, NJ = Redevelopment Authority of the City of Erie, PA « Sustainable Neighborhoods Development Office, St. Louis, MO = Consolidated Plan, Stark County, OH * Department of Housing & Urban Development = NeighborWorks America, Inc. « Society of Friends Inner City Work Day Program, Philadelphia, PA » HOME Program, City of Evansville, IN » Interfaith Community Housing of Delaware = Delaware Rural Housing Consortium Financial Planni LR Devel = Claymont Renaissance Development Corporation, DE « Interfaith Community Housing of Delaware = Village of Ardencroft, DE s East Falls Development Corporation, Philadelphia, PA * Old North Dayton Development Corporation, Dayton, OH » Fleet & Communications Departments, City of Dallas, TX 211a/11 naoe 7

Van Temple 717 Coverdale Road Wilmington, DE 19805 «* Common Ground Community Economic Development Corp., Dallas, TX » Department of Housing & Urban Development « Inglis Housing Development Corporation, Philadelphia, PA Community Land Trust Development » Diamond State CLT, DE » Lehigh Valley, PACommunity Land Trust « State of Montana - Trust Montana « Pottstown, PA Community Land Trust # National CLT Network, Public Policy Affordable Housing Devel Traini « City of Columbus, OH » City of Evansville, IN « Ohio Capital Corporation » Local Initiatives Service Corporation, Northeast Ohio Region * Connecticut Housing Coalition # Stark County,OH Personnel Management = City of Dallas, TX s ESA, Philadelphia, PA = Old North Dayton Development Corporation, Dayton, OH 2/14/11 nage %

JO ANN ZORB 35775 Spinnaker Circle Lewes, DE 19958 302-644-1358 (mobile) Email jazorb@comcast.net CURRENT ASSIGNMENT (2009 — Present) - Homeownership Program Manager — Diamond State Community Land Trust, Inc. Dover, DE -Statewide community land trust offering permanently affordable homeownership through shared equity homeownership model. Responsible for creating and implementing outreach and marketing plans for CLT projects and homes. Recruiting, qualifying, and orienting prospective homeowners. Assist Executive Director with implementation of Neighborhood Stabilization Program partnerships: coordinating property acquisition, property rehabilitation, and property management. Managed the sale and transfer of properties to homeowners. VOLUNTEER EXPERIENCE - SUSSEX COUNTY HABITAT FOR HUMANITY, GEORGETOWN, DE June 2005 — Present — Board of Directors — Currently serving as Director and co-chair of Board Development Committee. Previously served as Vice President, Assistant Secretary and participated in Personnel, Finance Committees and developing relationships with funder leading to a $200,000 grant/loan. October 2004 — December 2006 — Chairperson Family Selection Committee — Managed the committee responsible for drafting family selection criteria, selecting family/homeowners, marketing to prospective homeowners, screening applicants, and recommending prospective homeowner families to Board of Directors. Implemented application review process Developed orientation program and power point presentation Established partnerships for homeownership counseling Developed relationships for marketing/referrals for prospective homeowners Developed application materials to serve diverse applicant pool Drafted policies/procedures for board approval Recruited volunteers to staff committee December 2006 — May 2008 — Chairperson Family Services Committee — This assignment included all the family selection activity; and added the family support process. The support process includes planning and implementing activities to ensure the success of prospective homeowners as they progress through the Habitat homeownership partnership process. Implemented monthly homeownership education program Implemented monthly family communication meetings Developed criteria for house/lot selection process Recruited and organized volunteers for habitation celebrations Revised family selection orientation/application process significantly reducing response time to applicants PROFESSIONAL EXPERIENCE 2001 — Present - Branch Manager/ Residential Senior Loan Officer Net Branch Division — Jacob Dean Mortgage and East West Mortgage Co. Vienna, VA — nationally ranked mortgage brokers. Responsibilities include developing new business and originating residential mortgages. Interfaced with customers, underwriters, lenders, and support staff to ensure a smooth transaction. Educated customers about mortgage process and available loan programs. Assisted in hiring and training branch personnel.

JO ANN ZORB PAGE 2 1989 — 1999 - Sales Supervisor, Regional Market Specialist, and Account Representative with Standard Register Co., UARCO, and Crain Drummond - designers and manufacturers of document technology solutions. Responsibilities include sales assignment developing new business and servicing existing clients specializing in health care industry. Conceptually developed customized product/system/process solutions. Assisted with regional sales recruiting, coaching, and training. Responsible for development and maintenance of contract relationships. Exceeded sales/new business quota requirements Directed accountability process Conducted system analysis to reduce product/process costs Developed strategic regional market plans Administered Multiple-Hospital Group Agreement Coordinated market presentations Organized successful trade show participation Successfully developed new business and unique product application Conducted in depth market research Managed major account with excellent customer satisfaction 1977-1989 Senior Buyer, Engineering Purchasing Coordinator and Buyer ETHICON, INC. - A Johnson & Johnson Company, Somerville, NJ - Manufacturer of surgical sutures and wound closure devices. Various materials management assignments managing the purchase of stainless steel wire from international sources, timely delivery of custom machine fabrications, and purchase of various commodities including capital equipment, research supplies and chemicals, office supplies, and promotional materials Sourced and implemented new products Directed outsourcing make-buy analysis Planned and scheduled raw material inventory Successfully developed and implemented negotiating strategies. Implemented systems contract to reduce acquisition costs Coordinated/implemented customized purchasing/receiving/accounts payable system Supervised clerical staff AWARDS * President’s Club * Region/District Account Representative of the Month * Recipient of Corporate Quality Award * Instructor, Quality Improvement Process and Supplier Quality Management System EDUCATION Bachelor of Science, Business Management-Cum Laude Marymount College, Tarrytown, NY Associate of Applied Science, Marketing Somerset County College, Somerville, NJ OTHER EXPERIENCES Wolfe Runne Homeowners Association — Secretary Board of Directors January 2008 — Present Sussex Pines Ladies Golf Association — Former Treasurer and member April 2004 — present Delaware Breast Cancer Coalition — Volunteer — May 2008 - present

Diamond State CLT 2/4/11 DOVER CDBG GRANT REQUEST AFFORDABLE HOMEOWNERSHIP, PERMANENT AFFORDABILITY Project: two single-family homes in Northwest Dover Heights, Lincoln Park, or equivalent neighborhoods. Thoroughly renovated with energy- efficiencies including solar hot-water & solar electric panels. Homebuyers: From 53% to 80% Area Median Income (AMI). Per Home Total Request $124,000 Economics: Acquisition Rehabilitation, Holding, Stewardship Renewable Energy Investment $20,000 Total Development Cost: $189,000 CLT Sales Price Interim GAP: $84,000 $20,000 $40,000 Dover CDBG - requested NSP1 recycled & NSP2 (Kent) Final GAP: Timing: Acquisition planned for August/September 2011 Rehabilitation & energy enhancements - October-November Sale period - December-January Relationship with owner-occupant - continuing THANKS FOR CONSIDERING OUR REQUEST! 363 Saulsbury Road Dover, DE 19904

STAFF REPORT Elizabeth Murphey School The Elizabeth Murphy School is a non-profit group home that services up to 40 neglected and abused children incorporated in 1992. The Murphy School has previously received CDBG grant funding for renovations and expended the funds in a timely manner. The grant request for $49,347 is a reasonable request along with the source of matching funds for the cost of the installation of a geothermal heating and cooling system. This project is consistent with Goal 2 in the 2010 Consolidated Plan by preserving the existing housing stock and meets the low/moderate income requirement.

CITY OF DOVER FY 2011 CDBG GRANT APPLICATION FORM 1. General Applicant Information A. Name, address and phone number of sub-recipient The Elizabeth W. Murphey School. Inc. 42 Kings Highway East Dover Delaware 19901 ONINNGTe 2 SNC HSACE 39 ALID B. Name, position and signature of person submitting application: 02 vt gd Michael J. Kopp ALAA Executive Director Signature. Sadalt © Name and position of authorizing official: Mr. Joseph S$. McDaniel III President of the Board of Directors The Elizabeth W. Murphey School, Inc. C. Name, address and phone number of Contact Person: (if different from B above) Activity: Housing Rehabilitation $349.347 Amount Requested: $ 49.347 List Source of Cash Matching Funds $ 300.000 The Welfare Foundation and The Longwood Foundation

1. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: 1. In column 1, list the activity. 2. In column 2, show the total number of persons that the activity will serve. 3. In column 3, show the number of low- and moderate-income persons that the activity will serve. 4. In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. 5. In column 5, show the amount of funds requested for the activity. 6. In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. 7. List the sources of data used to calculate benefit in the space provided at the bottom of this page. LOW/MODERATE-INCOME BENEFIT TABLE 1. Activity 2. Total 3. L/M 4.% L/M 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity Activity Activity for Benefit will will will Activity Serve Serve Serve Heating 100% $49,347 $49,347 System Replacement Source of Date:

serving more children! In addition to the teens and young adults we currently serve, the population we plan to serve will include children as young as six years of age who are homeless and also have mental health concerns that will be addressed through our program and through the services of other area professionals. Unlike the others in our program, this population of youth will come to us as emergency placements. The typical demographics of the 38 children in our care would include 100% very low income individuals, all who qualify for Medicare and food stamp programs. On any given day, we serve a group of 55% non white and 45% Caucasian children in residential care; and a group with a similar racial and financial description for the 90 teens and young adults in our day programming. Although our housing group was not specifically mentioned in the City’s Consolidated Plan, our number of individuals served equals or surpasses some of those that were mentioned such as People’s Place II, Aid in Dover, and House of Pride. Work Plan Part 4 B of the application The rehabilitation of our current steam heating system will include six large buildings that will have the capacity to house over 38 children. To do so will require a contractor to drill at least seventy-two wells to depth of 200’ and install closed loop systems. The loops will be connected to water furnaces in each building to provide efficient HVAC. The systems will also provide pre-heated domestic water and air conditioning for each building. The funding from the CDBG will be used to provide a geothermal unit to only the building for emergency beds. That building was not included in the grant request with Longwood and The Welfare Foundation because it had been closed at the time and was not a priority because the state had no funding at the time for placements. The need for these emergency bed spaces has made this building use a priority but other funding is not available. Waiting three years for another grant cycle for which we would qualify defeats the purpose of the need for beds as soon as possible! Work Plan 4 C of the Application The Timetable Upon Grant approval, we will, within the guidelines of the grant, advertise for bidders for the scope of the work. Only pre-qualified geothermal providers are granted permission through the DNREC and the City. After opening the sealed bids, we will select appropriate and qualified contractor(s) who are capable of performing the needed work in a timely fashion. Work will commence as soon as possible after July 1, 2011 but no later than July 15, 2011 and will conclude the building covered through the CDBG funds prior to August 31, 2011. Milestones we will observe will include: Completion of the Bid Cycle Receipt of geothermal well permits Completion of required application to the Green Energy Program Completion of the well drilling Installation of the geothermal heat pumps Inspection of the building by the City of Dover and the Children’s Department

2. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Michael J. Kopp Executive Director Wesley Anderson Head of Maintenance B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. 4. THE CITY OF DOVER BLOCK GRANT PROPOSED WORK PLAN The Elizabeth W. Murphey School, Inc. The Murphey School is requesting funding through this grant proposal to be used to provide more housing opportunities for children in our 501 © (3) organization. Children living within our homes have no other home where they may live and are considered homeless under the protection of the McKinney — Vento Act. Each child dependent on our care is provided with a private bedroom. The rehabilitation is essential to the total operation and our ability to provide more housing and long-term care for a 100% low income population of abandoned, and therefore, homeless children. The following pages will describe the project through the components of the work plan as described in the grant application details. Project #1 Building Rehabilitation Project: Part 4 A of the Application During the past several years of economic downturn, we have needed to examine a more efficient way to continue to serve the children we protect. Heating costs and the energy required for even moderate air conditioning has severely impacted our ability to serve even more children. Just one year ago, through private grant funds, we were able to install a geothermal heating and air conditioning system to our largest building. That building happens to be the auditorium that is used by community groups for public gatherings and social activities. The savings and comfort have been amazing. Conversion to geothermal heating is crucial to our financial stability. We have recently been asked by the State Children’s Department, to open an additional building, beyond those currently housing children, to serve more children who need emergency placements. The timing could not be better! Because of the success with our first geothermal project, we had just met with The Longwood Foundation and The Welfare Foundation Executive Directors to provide funding to place geothermal units in five more of our buildings. The building we have been asked to open by the Kids Department had not been included because it had been closed. Funding for this project through the CDBG would allow us to offer up to 8 new beds for children requiring emergency placements! It would also allow us to eliminate the need for steam heating and thereby close down a boiler that currently heats five total buildings on one- half of our campus! The financial long term savings will allow us to become energy independent and capable of

Work Plan 4 D of the Application No pictures of the building have been included Work Plan 4 E of the Application This portion of our requested project conforms to the City of Dover’s Consolidated Plan in several goal areas. 1. It helps to address a special population of homeless youth who require the level of services offered only by this program within the City of Dover. It also serves a special population of low income youth that has no control or ability to improve their circumstances. 2. It helps to preserve existing housing within the City. This building has been in place since CIRCA 1923. It isa steel and red brick structure that has a long useful life if affordable heating can be added. 3. As adown town entity, this building falls into the area of concern for both the demographic grouping of low income and racially non-white individuals. 4. It will provide safe and affordable housing for a population in need. 5. It will aid in the economic opportunity for low to moderate income individuals in the city in a significant way. Opening this building for this population will provide for eight new moderate income jobs to those needed to supervise this population of children. Work Plan 4 F of the Application According to the City’s consolidated plan housing for low income individuals and programs for youth carry a level of medium priority. Work Plan 4 G of the Application This project is in direct line with a targeted plan to rehabilitate six of our nine buildings used to offer beds and housing to abandoned and homeless youth. It is also in line with our concerted plan to, within one year, have all nine of our buildings become energy independent. By this, we propose to have all nine buildings fitted with geothermal HVAC systems thereby eliminating our need for either oil or natural gas. We have, within the past year, replaced 300 old, double-hung windows with state-of-the- art, e — glass windows and have fitted our largest building with a geo-thermal HVAC system.

Work Plan 4 H of the Application Use of the CDBG funds would be leveraged with funds from the Delaware Welfare Foundation and the Longwood Foundation. Although not formally approved, we have met with the Director’s of both foundations about our projects. They have both helped fund the replacement of the 300 windows as well as our first geothermal project. Funding for this cycle which we have discussed is due for release in April from The Longwood Foundation and in May by the Welfare Foundation. Those funds will allow us to match the funds requested through the CDBG and install geothermal HVAC systems to five more buildings! Near future plans include completion of the remaining two buildings on our grounds and installing photovoltaic cells for the production of our electric energy needs to run the geothermal units, completing our goal for energy independence! 5. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development of the community as it affects low/moderate-income residents of the area. We work directly with the City of Dover Police Department Youth Officers through grant funds we received through the Criminal Justice council to provide programming for this high risk group in order to help them avoid legal problems, learn employment skills, and skills needed for independence. We also work directly with HUD to help locate adequate housing for youth leaving foster homes throughout all of Kent County. 6. Have you received a sub-recipient grant from the previous funding year? If yes give the total amount $ No

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing x Economic Opportunity Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility X Affordability Sustainability Please provide a proposed outcome based on the information below that applies to your activity Number of persons, households, units, or beds assisted as appropriate __8 Income level of persons or households by: Very Low 100% Low. % Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Eight new beds for homeless children Your close out report will require you provide breakdowns of those served by race, ethnicity and disability.

Mr. Murphey’s own words best describe the mission of the School: “To the establishment of this school, I am devoting the means which I have been able to accumulate during a lifetime of active effort. It is my life’s work. Through it I choose to honor the memory of my mother in the community where she lived and to render some service in the community in which I was born and spent my early life. It is my desire that this institution shall be a fostering home where children who would otherwise be neglected may have a happy childhood; and where they may have the fullest opportunity to develop toward useful and efficient lives.”

STAFF REPORT Downtown Dover Partnership, Inc. Microenterprise Development The Downtown Dover Partnership provides economic development services assisting both existing and prospective small business owners within the City of Dover. The grant request for this project is $42,000 for the development of microenterprises and classified as a public service activity. The grant request for grants and loans does not outline who will develop and submit procedures to document an independent underwriting analysis for each proposed loan, Members of the subcommittee will also be required to submit procedures to evaluate the cost estimates, revenue and employment projections for each loan. HUD requires that standards be developed for evaluating the financial feasibility and determination for a reasonable return on equity investment. This project is feasible if there is staff with the background to carry out the requirements listed above. There must also be a strong level of commitment for this project due to the fact that with the jobs that are created and retained, will require documentation for the life of the loan. This project will meet the low/moderate income requirement with the creation of jobs and technical assistance provided to low/moderate income persons and is consistent with Goal 5 in the 2010 Consolidated Plan by providing economic opportunities in low to moderate income areas.

waTow® | Downtown Dover Partnership Dwi 101 W. Loockerman St. Suite 1a \ ‘ Dover, Delaware, 19904 lrantNersnre| 302-678-2940 February 14, 2011 Tracey Harvey Community Development Director City of Dover PO Box 475 Dover DE 19901 RE: FY11 CDBG Grant Application Dear Ms. Harvey: Attached please find the Downtown Dover Partnership’s proposal for a Microenterprise Development Program. We are requesting $42,000 for this initiative. We project the program will be implemented within 90 days of receipt of the award. You will note in our application, that we have received. a commitment from the Downtown Dover Partnership in the amount of $10,000 to support this initiative. We believe this Microenterprise Development Program will have a direct and positive impact on low-moderate income families within our community. We greatly appreciate your support of our economic revitalization activities. If you have any questions regarding the enclosed materials, please feel free to contact me at (302) 678- 2940. + Sincerely, : William G. Neaton Executive Director cc: Gregory Moore, P.E., Board President

1, CITY OF DOVER FY'1l1 CBDG GRANT APPLICATION FROM General Applicant Information A. Name, address and phone numbers of sub-recipient: Downtown Dover Partnership, Inc. 101 W. Loockerman Street, 1A Dover, DE 19904 (302) 678-2940 Email: wneaton@dover.de.us . Name, position and signature of person submitting application: William G. Neaton Executive Director Downtown Dover Partnership Name and position of authorizing official: William G. Neaton Executive Director Downtown Dover Partnership . Name, address and phone number of Contact Person: (If different from B above) N/A Activity: Microenterprise Development Amount Requested: $42,000.00 List Source of Cash Matching Fund: — $10,000.00 (Downtown Dover Partnership Economic Development Committee Funds)

1. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: 1. Incolumn 1, list the activity. 2. In column 2, show the total number of persons that the activity will serve. 3. In column 3, show the number of low- and moderate-income persons that the activity will serve. 4. In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. 5. In column 5, show the amount of funds requested for the activity. 6. In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. 7. List the sources of data used to calculate benefit in the space provided at the bottom of this page. LOW/MODERATE-INCOME BENEFIT TABLE i 2. Total 3. L/M 4.% LIM 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity will Activity will Activity will for Activity Benefit Serve Serve Serve Micro 120 96 $34,020 Enterprise Assistance + Source of Data: January 5, 2010

2.) Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) William G. Neaton Executive Director Edwin Perez DDP Coordinator B. Attach resume or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively, manage a CBDG sub-recipient project. Enclosed please find the resume and work history of William G. Neaton, currently the Executive Director of the Downtown Dover Partnership and Economic Development Director for the City of Dover. Mr. Neaton's work history includes: a Master Degree in Business Management from Central Michigan University, thirty (30) years experience in community organization /economic development, and has managed a small business in Dover for the past 30 years as well. Under the direction of Mr. Neaton the Downtown Dover Partnership provides economic development services assisting both existing and prospective small business owners within the City of Dover and Downtown Dover Business Corridor Low -Moderate Income Area. The purpose of the Downtown Dover Partnership Corporation is to promote the public welfare of the residents of the City of Dover by promoting and furthering in any way, the development of the economic, cultural and historic resources of the city and downtown area and provide for the residents to the extent that the common good and general welfare of the community is served. See attached copies of Mission Statement and Statement of Purpose.

3. Application Work Plan Each proposed program activity must be address each of the following areas. Attach a mission statement and purpose of your organization. A. Each program activity must be addressed separately. The Downtown Dover Partnership Inc., proposed to implement the Fourth Phase of the "Microenterprise Development" Program initiated in FY' 02 that will continue to target the CDBG Downtown Target Area. The area has already been established as a majority low/moderate income area. It is also the largest concentration of Microenterprise Activity in Dover. DDP proposes to provide the following services/activities: e Grants, loans, loan guarantees and other forms of financial support, for the establishment, stabilization, and expansion of microenterprises in the target area; e Technical assistance, advice, and business services to owners of microenterprises and persons developing microenterprises; e General support to owners of microenterprises and persons developing microenterprises including child care, transportation, counseling and peer support groups; and e Training and technical assistance or other support services to increase capacity of the small business owners. In parallel with the above noted, the project will implement a comprehensive marketing program designed to promote the downtown as.a shopping and cultural destination. Materials will be created to promote the ongoing series of special events occurring within our historic downtown business district. Additionally, products to be developed, to further assist the business owners, will include special event brochures; maps of the business district showing the location of individual downtown businesses; coupon books and discount savings cards; an enhanced e-commerce website; an expanded advertising campaign; and planning assistance for downtown business owners as well as visitation/guidance flyers. B. Each program activity must be fully described. Please see Attachment - A (Scope of Work Proposed for FY'! 1) C. Provide a timetable showing monthly milestones for completion of each activity. Please see Attachment — B (Implementation and Time Frame)

. Attach drawings, plan or other documentation necessary to describe program activities. Please see Program Description Attachment A/B and Program Annual Report’ 11 Please see attached Map . Describe each activity's conformance with goals and objectives of the City's FY 2010-2014 Five Year Consolidated Plan. This activity is in conformance with Goal #5 Aid Expand Economic Opportunities in low to moderate income areas. Please see Page 55 of Consolidated Plan. . Describe the extent to which the proposed project(s) will address one or more significant priorities identified by the City's Consolidated Plan. The Downtown Dover Partnership, Inc. is specifically identified as part of Dover's Anti-Poverty Strategy on page 48 of the City’s Consolidated Plan. Through the implementation of this project we will assign the highest priority to anti-poverty strategies. Microenterprise Assistance is identified in the FY 2010- 2014 Consolidated Plan as a medium community development need. . Describe the extent to which the project builds upon previous work or supplements other work that will be funded from other sources. The Project meets the goals and objectives of the Downtown Dover Partnership Revitalization Program, the City of Dover Comprehensive Master Plan, Delaware State Main Street Program, USDA-Rural Business Enterprise Grant Program and the Dover Downtown Merchants Group. The Project also complements our “Youth Employment Program” which matched thirty (30) youth residing within the city limits with existing businesses within the downtown business district. The project will work in collaboration with the SCORE, SBA, Delaware YWCA and Delaware Technical College and Small Business Development Center to expand resources to the Downtown Dover business community. . Describe source and amount of any funds used to leverage the City's portion of the project. Indicate when these funds will be available. Attach documentation. The source of funds to be used as the $10,000 match for this project will be from the funds allocated by the Downtown Dover Partnership FY’11 Budget for the Economic Development Committee and the USDA-Rural Business Enterprise Grant. A copy of the DDP Committee Budget is attached. The DDP funds are immediately available. The USDA Grant provides reimbursement of expenses after they have been incurred.

4. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development of the community as it affects low/moderate-income residents of the area. The entire scope of the program is to better coordinate with existing Microenterprise program, such as, YWCA Mircoenterprise program, Small Business Administration and Small Business Development Center so that the community is improved. This is the primary focus of the Downtown Dover Partnership mission and vision statements. 5. Have you received a sub-recipient grant from the previous funding year? No If yes give the total amount? N/A

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing Economic Opportunity Xx Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility _ x Affordability Sustainability Please provide a proposed outcome based on the information below that applies to your activity Number of persons, households, units, or beds assisted as appropriate 120 Income level of persons or households by: Very Low % Low. % Moderate 82 % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. The economic development project projects to serve 120 persons, 82% are considered low/mod persons, in the targeted area. Your close out report will require you provide breakdowns of those served by race, ethnicity and disability.

FY 11 CDBG Grant Application Microenterprise Development Project Attachments Included: Downtown Dover Partnership Mission and Vision Statements Proposed Scope of Work Proposed Timetable Map of Project Target Area Economic Development Committee FY’11 Approved Budget Downtown Dover Partnership 2010 Annual Report

William G. Neaton 22 Errett Road Bethany Beach, Delaware 19930 (302) 539-1567 (H 2} DBSH4 (302) 736-5069 (W) Employment: Neaton Enterprises 2005-Present Neaton's Tire Service of De, Inc. President 1979-2005 Yaffe & Company 2000-2003 Goodyear Tire & Rubber Co, 1964-1979 U.S. Army 1969-1971 Education: Central Michigan University, M.A. (Business Management) 1982 Western Maryland College, B.A. (Sociology) 1968 Community Service Delaware Health Facility Authority 2002-Present = Vice Chairman 2003-Present Bayhealth, Inc., Board of Directors 1997-2007 = Chairman of the Board 1997-2000 Kent General Hospital, Board of Directors 1988-1997 = Chairman of the Board 1995-1996 = Vice Chairman 1989-1995 = — President's Advisory Committee 1991-2007 = Planning Committee, Chairman 1989-1994 = Finance Committee 1988-1989 = Investment Committee 1995-Present Kent Health Alliance, Board of Directors 1995-2005 Modern Maturity Center, Board of Directors 1992-Present = President 2000-2005 = Treasurer 1997-2005 * Planning & Marketing Committee, Chairman 1995-1996 = Finance Committee, Chairman 1996-Present = Capital School District Master Facilities Committee 1993 * — Strategic Planning Committee 1993, Civic Associations: Central Delaware Chamber of Commerce 1989-Present = Board of Directors 2003-2006 Capital City Rotary 1989-Present " — Trade/Professional Relations Committee, Chairman Girl Scout Troop 542, Assistant Leader 1980-1986 United Way Panel VI Committee 1981-1984 West Dover Elementary PTO, President 1983-1985 Hamlet Homes Association, Treasurer 1981-1983 Associations and DEL-MAR-VA Football Officials Association 1986-Present Affiliations: = Trainer 1992-1996 Mid-Atlantic Collegiate Football Officials Association 1992-Present State LaCrosse Association 1997-Present Benevolent and Protective Order of ELKS 1988-Present Honors and Dover Air Force Base, Honorary Commander 1997-2004 Recognitions: ELKS Citizen of the Year 2000 Kent County, DE Small Businessmen of the Year 1996 Wal-Mart Stores, Inc., Sam Walton Business Leader Award 1996 Goodyear Tire and Rubber Co., National Dealer Council 1984-1985

Downtown Dover Partnership Mission Statement The purpose of the Downtown Dover Partnership is to develop the economic, cultural and historic resources of downtown Dover, to increase business/job opportunities, and to develop the commercial and residential potential of the Central Dover area. The DDP strives to protect and enhance the historic architectural and community qualities of the downtown consistent with the guiding principles of the National Main Street Program. Approved by Board of Directors on March 5, 2009

DOWNTOWN DOVER TOMORROW Vision Statement By the year 2011, Downtown Dover would be a destination having a mix of business “that makes you want to come and spend time.” People would come to Downtown, go to a museum, have a nice meal, stroll and visit on Downtown's sidewalks, sit at outdoor cafes, and be able to shop at unusual stores. Downtown would offer numerous and varied “things to do” and all of the Downtown’'s buildings would be filled with prosperous businesses. As a result, Downtown’s sidewalks would be filled with a great variety and number of pedestrians who feel excited- and even lucky- to be there. Downtown’s historic buildings would be saved, preserved and would “look good.” Downtown's variety of architectural styles would be appreciated and respected, so that Downtown is not “homogenized.” Owners would be required to keep-up their properties. New, infill buildings would be encouraged and would blend with and complement the old- so that “they match the town’s design.” This would be very important since “we have a long history and should make that a selling point.” The arts would be encouraged in Downtown. Downtown would offer a greater diversity of art choices, including film festivals, fine arts, plays and music. The media would embrace and feature all art and entertainment activities occurring in Downtown. More money would be put into the Schwartz Center for the Performing Arts to ensure that its shows and performances are “user friendly.” Downtown would have a variety of restaurants that are open in the evenings — and “not just lunch places”- so one could go to the Schwartz and out to dinner. Downtown would offer recreational activities for children and families. The ST. Jones River would be made a destination. And, Downtown would have more of and “educational presence,” possibly in the form of a learning annex that offers a plethora of varied classes for all ages. Downtown would have “a tremendous increase” in the number of apartments, condos, and homes that appeal to a wide variety of ages and income groups. There would be more apartments and condos above shops. The New Street area would be revitalized, safe, and clean. And, Downtown would have convenience businesses that serve its residents, such as food markets. Downtown would be safe and trash-free. Police officers would be visible, walking the streets. Downtown business owners would act responsibly and clean their windows, entryways, and walks regularly. Storefronts and display windows would be attractive and appealing. And, utility lines would be buried underground. Downtown would be aggressively marketed- to “get the word out that there’s a lot here”. Downtown’s image would be very positive and appealing, making residents and tourists want to spend time there.

Downtown would be enhanced as a mixed-use area, which includes: » Restaurants- varied, not chain, lunch and evening, outdoor cafes; « Retail shops- varied, unusual, high quality, range of prices; * The arts, entertainment, and nightlife; * Professional offices; * Government facilities- including a regional library and the post office; * Housing; * Convenience businesses serving residents and workers of Downtown; « Activities for kids; * Convenient parking- and “interesting things in between parking areas;” * A hotel; « Education; and * Outdoor space Downtown's mixture of uses would appeal to and attract a variety of users, including; * Residents- of Downtown, Dover, and the County; * Downtown workers; * Students; « Area tourists; + Route 13 shoppers; * Kids, families, and seniors; and * People of all cultures.

Description of Proposed Microenterprise Development Project Overview DDP proposes to provide the following services/activities: e Grants, loans, loan guarantees and other forms of financial support, for the establishment, stabilization, and expansion of microenterprises in the target area; e Technical assistance, advice, and business services to owners of microenterprises and persons developing microenterprises; ® General support to owners of microenterprises and persons developing microenterprises including child care, transportation, counseling and peer support groups; and e Training and technical assistance or other support services to increase capacity of the small business owners. Applications for grants, loans, and loan guarantees will be reviewed by a subcommittee of the Downtown Dover Partnership Economic Development Committee. Applicants will be requested to provide a completed loan/grant application, copies of their business plan and other pertinent documents for review prior to receiving approval of their funding request. Technical assistance and training will be provided through technical assistance visitations on a monthly basis and a series of workshops that provide management support in the area of business plan development. Workshop topics are listed below with a description of key elements to be addressed in each session. Each workshop will include an introduction of the workshop topic, group exercises to facilitate an understanding of the topic, and forms/resources to assist with development of that specific element of the business plan. Workshop Topics (Each topic will be offered twice during the series) 1. Starting and Growing a Business in Delaware: This workshop will introduce the participants to general start-up activities (start-up costs) necessary to begin a business in Delaware. 2. Mission Statement: This workshop will address key issues relating to the business proposes and target market to be served. a. Description of company purpose b. Identification of those proposed to be served 3. Industry Status: Participants will be shown how to conduct research on their industry, target market and competition. a. National/Regional economic outlook b. Industry outlook c. Projected opportunities d. Regulatory environment e. Technological influences 4. Target Market/Customer Base: This workshop will teach participants how to review demographic and census tract information of proposed target market. a. Characteristics of the target market

b. c. d. e Demographic profile e Business customers e Geographic parameters Size of the market/expected market share Market segmentation Customer buying habits (seasonality, quantity, average expenditure) 5. Marketing Plan: This workshop will focus on the knowledge of how to position a business in a competitive area. How to forecast changes in target markets. a. b. c. d g. h. Sales goals Description of all products and services Direct and indirect competition Pricing objectives/methods e Wholesale and retail e Discounts and special allowances ® Seasonality in pricing ® Credit terms Location e Where products/services will be sold e Analysis of advantages/disadvantages e Transportation Promotion activities e Advertising Public relations Publicity e Trade shows Customer service Sales Training, management Production and Operations Plan: The participants will exam facility and equipment necessary to commence operation and supplier relationships and inventory levels. a. c. d. e. Facility e Lease or purchase e Size and floor plan e Zoning, local regulations, taxes e Renovation/expansion plans Equipment e Machines/tools owned e Lease or purchase ® Maintenance procedures and costs Production process and costs Suppliers/credit terms Scheduling for completion of research and development Insurance: Participants will be introduced to the different types of insurance required by state and local governments to begin operation of a business. a. b. Product liability Personal/business liability

10. 11 12 Business interruption Vehicle Disability Workers’ compensation Unemployment Fire Theft Management and Human Resource Plan: Participants will exam personnel policies, record-keeping and employee training to continue operation of the business without interruptions. a. Key managers e responsibility e training e reporting procedures b. Personnel e number of full and part time employees e special skills © job descriptions © wages use of sub-contracted or temporary personnel © policies c. Organizational Chart d. Professional assistance (attorney, accountant, banker, insurance agent, etc.) Financial Plan: Participants will learn to identify the causes of low profits, such as inadequate expense control, high interest rates, and low sales volume; ability to read and interpret financial statements. Start-up costs Sources and uses of funds Balance Sheets (opening day and projected three years) Projected cash flow (monthly in first year, quarterly years two and three) e. Profit and Loss forecast or statement/ Break-even analysis Basics to building an On-line business: This workshop will engage participants on how to utilize the internet as a major resource to conducting on-line business. E-commerce a. Trading and buying on-line strategies Executive Summary: This final workshop will exam the “strategic plan” developed by the business owner. Brief description of the company history Purpose for the plan Goals of the business Description of the products and services Customer base Management team experience Financing required from lender Other sources of funds/collateral Method of repayment So mone aoe ope meno ge

Scope of Work Proposed for FY’ 11 IMPLEMENTATION/PROJECT TIMEFRAME The Project will commence in June '11 and will be completed in June 2012. Technical Assistance visitations will be provided to all businesses located in the Downtown Redevelopment Target Area. See attached map. Workshops will be provided at no cost to project participants. At the end of The Project each participant will have created a business plan designed to overcome short falls in the business’ initial phases. The duration of each workshop will be three hours. Participants will be furnished with a detailed list of workshops, registration forms and workshop materials. The following represents a timeframe for this project: PROJECT TIMEFRAME Workshop(s) Date(s) Introduction/ Orientation to Project June'l1 1. Starting and Growing a Business in June 'l1 Delaware . Mission Statement July '11 . Industry Status August 'I1 . Target Market/Customer Base September '11 October '11 . Production and Operations Plan November '11 . Insurance December 'I1 2 3 4 5. Marketing Plan 6 7 8 . Management and Human Resource Plan January '12 9, Financial Plan February '12 10. Basics of building an Online Business March '12 11. E-commerce April '12 12. Executive Summary May '12 13. Evaluation and Reporting | June ‘12 Office hours will be posted and structured to provide project participants with ongoing technical assistance. A news release announcing proposed project will be submitted to the Dover Post and Delaware State News upon confirmation from the United States Department of Agriculture - Rural Development of Grant award. Information packets (purpose of project, registration forms, schedule and location of workshops, etc.) will be distributed to businesses in the Central Business District and outside the target service area. Ongoing monthly Newspaper Ads will be posted in the Delaware State News. Information on The Project will also be disseminated through the members of the Central Delaware Business and Entrepreneurship Consortium which includes: Central Delaware Chamber of Commerce, Delaware Center for Enterprise Development at Delaware State University, Kent County Economic Partnership, Small Business Development Center, SCORE Delaware, the US Small Business Administration and the YWCA Center for Women’s Entrepreneurship.

i City of Dover | Downtown Districts Geer ser 1 l

Downtown Dover Partnership FY11 Approved Budget for ED Committee Economic Development & Restructuring USDA Grant Match randing Project/Charrette (MPO) $5,000.00 $25,000.00 $18,790.00 ubcommittee Projects aces | | = |__| __ $30,000.09] Recruitment & Retention - $5K Po Loan Committee - $25K | “lola = x m 2) Cc n iw) > a = ed) 3 = m x Ke) io) a a io) wn ED Training for Executive Director $1,500.00 Greater Dover Committee Mbrshp $1,000.00 Leadership Central DE Total Economic Development Budget $81,290.00

DOWNTOWN DOV ER PARTNERSHIP

Director’s Note ... Bill Neaton — fi The Downtown Dover Partnership had a busy and exciting year in the fiscal year ending June 30, 2010! Among the many highlights was the opening of the Community Services Building by the Greater Dover Foundation. We joined the Greater Dover Committee and Foundation as one of the first tenants moving into our new office space in early December 2009. This building is also home to the United Way, Boy Scouts, Delaware Parents Associa- tion, and Communities in Schools. Many downtown business owners have supported our revitalization efforts by invest- ing funds in building renovations, including The Center for Human Develop- ment, Raubacher Gallery, and the Dover Army-Navy Store. The CPA firm of Mit- ten and Winters $300,000 renovation of their building put an exclamation point to their commitment to the revitalization of our downtown! The DDP hosted seven (7) Business Development Workshops that pro- vided information on marketing techniques, green business, and developing a business plan to 160 attendees. As we begin our third year of operation we look forward to continuing our redevelopment and revitalization efforts beginning with the major renovation of 22-24 W. Loockerman. We’re counting on your continued support and participation as we work to meet our ambitious goals during the next year. Design Committee Laura Simmons, Chairperson Arden Bardol Carrie Hart Ann Baker Horsey Susan Johnston Dawn Melson-Williams Brian Murray Dr. Donald Parks Kristin Pleasanton Elena Stewart Economic Development & Restructuring Committee Gerald I. H. Street, Esq., Chairperson Robert Berglund David Bonar Anthony DePrima Michael Harrington, Sr. Paul E. Lakeman Joseph McDaniel Gregg Moore Ted Nutter Gary Patterson Charlie Rodriguez Councilwoman Sophia Russell Councilman Reuben Salters Ami Sebastian-Hauer Laura Simmons Erin Tinsley Ann Marie Townshend Organization Committee Stanford Smith, Chairperson Marjorie Cyr Jocelyn McBride Georgeanna Windley Chris Wood Parking Committee Thomas Smith, Chairperson David Affolder Michael Ambruso Anita Evans Ted Nutter Ron Poliquin, Esq. Promotions Committee Cynthia Small, Chairperson Elaine M. Brenchley Robin Coventry Kay Dietz-Sass Helen Haughey Dave Hill Ami Sebastian-Hauer Nephetina Serrano Tim Smith Heather Standish Erin Tinsley Partnership Staff William G. Neaton C. Edwin Perez Beverly Latimer Jackson Board Members Gary Patterson, President Dr. William Johnston, Vice President Joseph McDaniel, Secretary Cynthia Small, Treasurer Anthony DePrima Michael Harrington Paul E. Lakeman Gregg Moore Sophia R. Russell, Councilwoman Reuben Salters, Councilman Ami Sebastian-Hauer Laura Simmons Timothy Slavin, Councilman Thomas Smith Stanford Smith Gerald I. H. Street, Esq. Ann Marie Townshend Mayor Carleton Carey, Ex Officio DOWNTOWN ... Highlights FIVE New Businesses Opened e DNDTEK ¢ Next Level Clothing Store ¢ The LUNCHBOX ¢ The Shoe Outlet ¢ The Tattoo Shop THREE Businesses Relocated to Downtown ¢ Beauty & You ¢ Knight’s Copier Service ¢ Zuha Trend 1500 + Volunteer Hours Donated 1651 hours valued at $20.25/hr = $33,433 Increasing Competitiveness of Downtown Businesses The Downtown Dover Partnership held seven (7) Business Development Workshops that provided information on marketing techniques, green business, and developing a business plan, to 160 people, both current and prospective business owners. Business Assistance Provided Eleven businesses received loans through the US SBA Community Express Loan Program. These loans totaled $265,000 and created 8.5 FTEs and sustained 18.5 FTEs.

FY 2010 DOWNTOWN DOVER PARTNERSHIP ECONOMIC IMPACT HIGHLIGHTS $2,540,000 Dollars Invested in FY 2010' Partnership Real Estate Holdings Facade Grants Awarded (2) 8 4,000 120 S. Governors Avenue — Acme site § 1,239,345 (only 2 of the grants awarded were completed by 6/30) 22-24 W. Loockerman Street 225,000 Total Value of Facade Improvements — $ 65,000 133-135 Ss Governors Avenue 248,745 Total Value of Building Rehabilitation (2) $2,300,000 > haha Governors AXventme "3746 Purchase of 22-24 W. Loockerman Street $ 225,000 DIS Revikeordl Axverane 151,091 ’ Value of Facade Grants and Facade Improvements included in total Drath site CNT West Sires ecare| 243,000 aE ae . anh 680 and 684 Forest Street 650,000 value of building rehabilitation projects but excluded from total dol- lars invested in FY 2010. Total Buildings & Land $ 3,109,111 2010 Accomplishments Design Committee Awarded Four (4) Facade Improvement Grants Implemented Vacancy Treatment Program Ree’d $1000 Matching Grant from DEDO for Vacancy Treatment Program Economic Development & Restructuring Committee Community Development Block Grant for Youth Employment Program USDA Rural Development Grant for Training & Marketing Projects Purchased 22-24 W Loockerman St. Property Sale of properties in the 400 Block of W. Loockerman St. to Bob Duncan for Development Sale of property on N. West St. to Charles Grimes for relocation of NAPA Store Signed lease w/Inner City Cultural League for property on N. West Street Signed 10-year lease with Dover Interfaith Housing Coalition for 684 Forest Street Organization Committee Developed Conflict of Interest & Whistleblower Policies Monitored Work Plan Development Developed Fundraising Strategy Coordinated Volunteer Recognition & Annual Report Parking & Safety Committee Installed improved signage at Bradford Street Lot Conducted Security Survey of Merchants Provided Funding for Security Camera Project Offered Free Metered Parking in the Bradford St. Lot during December Parking Information Insert in City Electric Bills mailed to 22,000 customers Promotions Committee 2nd Annual Home for the Holidays 2nd Annual Spring Splendor Fashion Show Created Safe, Spooky Halloween Supported First Fridays Supported First Night Dover Days May Basket Dover Days Chili Cook-off and Karaoke Night sponsored by downtown Bars & Restaurants Supported Improved Tourism Signage Distributed 25+ media releases and generated significant positive press for downtown Dover The US Small Business Administration recog- nizes Ed Perez of the Downtown Partnership as the Top SBA Community Express Technical Assistance Provider for FY ’09. USDA manle Development USDA Rural Development has provided funding for DDP marketing and training initiatives which benefit businesses in “Historic Downtown Dover.” Special thanks to the Dover City Council, Mayor Carleton E. Carey Sr., and City Manager Tony DePrima for their support of the Downtown Dover Partnership. Also Thanks to Diane Laird, State Coordinator, Delaware Main Street, for technical assistance provided throughout the year and to DEDO for the $1000 grant received as part of the Vacancy Treatment Project implemented in FY'10. Mission Statement The purpose of the Downtown Dover Partnership is to develop the economic, cultural and his- toric resources of downtown Dover, to increase business/job opportunities, and to develop the commercial and residen- tial potential of the Central Dover area. The DDP strives to protect and enhance the historic architectural and commu- nity qualities of the downtown consistent with the guiding principles of the National Main Street Program.

Special Thanks to the following Individuals FIRST FRIDAY Jean Francis Susan Johnston Jeremy Gibb Friends of Folk First State Strings Dover Fire Department Downtown Dover Merchants Wesley College Student Leaders FESTIVAL OF LIGHTS City of Dover Parks & Recreation Bayhealth Medical Center Heritage at Dover Dover Kiwanis Wesley Pre-School The Little School Dover High Select Ensemble HOME FOR THE HOLIDAYS Nephetina Serrano, Co-Chairperson Lauren Tinsley, Co-Chairperson Gary Chaffee, Parade Coordinator Shani Brown Melissa Cameron Robin Coventry Mona Kinnel Cathy Marker Mary Alice Ozechoski Tina Potts Ami Sebastian-Hauer Rae Short Erin Tinsley Aid in Dover Angela Alper Santa and Mrs. Claus Booker T. Washington Chorus CACC Folk Dance Troupe Dover Housing Authority Indian US Society of DE Youth Group Remnant Sounds — Michelle Wright & Band Shedding the Vibe PELAWARE ECONOMIC DEVELOPMENT OFFICE DOWNTOWN OVE PARTNERSHIP Tammy Trout & the Pentecostals of Dover Band & Chorus United Fellowship Praise Dance Team Wesley College Student Leaders SPRING SPLENDOR FASHION SHOW Erin Tinsley, Co-Chairperson Maxine Lewis, Co-Chairperson Lee Turner Mel Williams Hassan Azhar 33 West A Center for Mental Wellness Artwear Bags Bel Boutique Benita’s World of Beauty Citizens Bank Coastal Cottage Soaps Cook & Smith Florists Delaware Made DNDTEK Dover Art League Dover Newsstand Driftwood Spirits El Nopal Emmanuel’s Religious Gifts Fly 365 Forney’s Forney’s Too Frankfurt Bakery Leone’s Loockerman Exchange Maxine’s New York Fashions Our Helping Hands Raubacher Gallery Rockstar Glassworks The Duncan Center The Golden Fleece The Wedding Boutique W.T. Smithers Young’s Studio of Photography Zuha Trend ST. PATRICK’S DAY PARADE Gary Chaffee, Parade Coordinator Alex Aaron Whitsett Antoine Robinson Caitoyn Theresa Angstadt Cathy Marker Don Bambord Matthew Singleton Tim Smith Georgeanna Windley SUPPORT FOR MULTIPLE ACTIVITIES Bayhealth Medical Center City of Dover DE Economic Development Office DE Technical & Community College Delaware Community Foundation Dover City Council Dover Community Partnership Dover Fire Department Dover Housing Authority Dover Parks & Recreation Dover Police Department Downtown Dover Businesses First State Community Loan Fund First State Heritage Park First State Strings Friends of Folk Friends of Old Dover Greater Dover Committee Greater Dover Foundation Kent County Tourism Small Business Development Center U.S. Small Business Administration USDA Rural Development Wesley College Special thanks to DOWNTOWN DELAWARE. Downtown Delaware is a program of the Delaware Economic Development Office. It provides Delaware’s historic downtowns, communities, and small businesses with tools to revitalize their commercial districts, increase entrepreneurial opportunity, and enhance quality of place. DOWNTOWN DOVER PARTNERSHIP 101 W. Loockerman Street, Suite 1A ¢ Dover, DE 19904 302-678-2940 © fax 302-678-2132 * www.downtowndoverpartnership.com Downtown Dover Partnership is a non-profit organization dedicated to revitalizing the Downtown District. DDP works hand in hand with the National Trust for Historic Preservation’s National Main Street Center and the Downtown Delaware initiative to create a variety of programs that serve to improve our downtown district.

STAFF REPORT Streets Project Concrete & Pavement Rehabilitation The City of Dover Public Services department received grant funding in 2005 and 2006 for the reconstruction of streets and curbs in the city’s downtown target area, and 2010 for the Mitscher Road Streets Project. These projects have immensely assisted in the revitalization efforts throughout the city. The funding in all program years was expended in a timely manner. The grant request for $203,000 is reasonable for the infrastructure improvements but not practical for the CDBG grant allocation. This project is consistent with Goal 2 of the 2010 Consolidated Plan by preserving the existing housing stock in the City of Dover.

CITY OF DOVER FY 2011 CDBG GRANT APPLICATION FORM 1. General Applicant Information A. Name, address and phone number of sub-recipient City of Dover — Public Services Department Attention: Scott D. Koenig, P.E. 15 The Plaza Dover, DE 19901 (302) 736-7026 B. Name, position and signature of person submitting application: Scott D. Koenig, P.E. Public Services Manager / Director of Public Works Name and position of authorizing official: Anthony J. DePrima, AICP, ICMA-CM, City Manager, City of Dover C. Name, address and phone number of Contact Person: (If different from B above) Scott D. Koenig, P.E. Public Services Manager / Director of Public Works 15 The Plaza Dover, DE 19901 Activity: Concrete & Pavement Rehabilitation Amount Requested: $203,000.00 List Source of Cash Matching Funds $300,000.00 Plus (Source: City of Dover General Fund & Community Transportation Funds from area legislators)

1. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: 1. In column 1, list the activity. 2. In column 2, show the total number of persons that the activity will serve. 3. In column 3, show the number of low- and moderate-income persons that the activity will serve. 4. In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. . In column 5, show the amount of funds requested for the activity. 6. In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. 7. List the sources of data used to calculate benefit in the space provided at the bottom of this page. wn LOW/MODERATE-INCOME BENEFIT TABLE 2. Total 3. LIM 4.% LIM 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity will | Activity will | Activity will | for Activity Benefit Concrete & Pavement

Source of Date: The proposed work locations are S. New Street from Bank Lane to Water Street ($100,000), Janes Road ($91,000) and Mays Lane ($12,000); however, these locations must be confirmed with Census Data. 2. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Scott D. Koenig, P.E. Public Services Manager Paul Thompson Public Works Inspector B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. Not Applicable. 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. A. Each program activity must be addressed separately. Program activities must be listed in order of priority with the program activity of highest priority first. This order of priority for program activities must be followed on all forms contained in this application. The project proposal only includes one (1) program activity since the concrete and pavement rehabilitation are viewed as an integrated system. The one (1) activity will be conducted at three (3) locations (S. New Street, Janes Road & Mays Lane) if the funding permits. B. Each program activity must be fully described. For rehabilitation programs, this description must include the number of units to be rehabilitated, rental properties to be rehabilitated, any special population groups the rehabilitation program will address, the target area, and the need for the rehabilitation activity. The proposed work will include the removal and replacement of old and deteriorated concrete sidewalk, curbs and drains on S. New Street. Janes Road and Mays Lane do not have concrete curbs and

sidewalks at this time so concrete rehabilitation on Janes Road and Mays Lane will be limited to drainage structures. The pavement surface will be milled and repaved at all three (3) locations. Accessibility improvements will be made at all practical locations. All improvements will be made within the public right-of-way. Lea Provide a timetable showing monthly milestones for completion of each activity. Work on these locations will begin within 30 days of notice of funds availability. All work will be completed within 90-120 days. D. Attach drawings, plans or other documentation necessary to describe program activities. All of this work would be part of an annual contract that is bid by the Public Services Department. There are no specific drawings or plans associated with the request; however, the project bid specifications will outline the type of work, the quantities to be completed and any special requirements regarding the funding sources to be used. E. Describe each activity’s conformance with the goals and objectives of the City’s Consolidated Plan. The proposed rehabilitation work complies with Goal #2: “Preserve the Existing Housing Stock in the City of Dover”, specifically the objective, “The City will address the infrastructure needs in qualifying census tract areas with the reconstruction of streets and curbs.” FE. Describe the extent to which the proposed project(s) will address one or more significant priorities identified by the City’s Consolidated Plan. The proposed work will help foster a safe and livable neighborhood that includes an improved transportation network including sidewalk repairs wherever possible. In addition, the project will complete accessibility improvements within the public right-of-way where appropriate. G. Describe the extent to which the project builds upon previous work or supplements other work that will be funded from other sources.

The proposed project builds upon the improvements completed through the City’s annual street program. The City of Dover has spent between $500,000 and $1,500,000 on this annual program in the each of the past six (6) fiscal years. H. Describe source and amount of any funds used to leverage the City’s portion of the project. Indicate when these funds will be available. Attach documentation of any match. The Dover City Council appropriates general fund tax revenues to the annual street program through the budget process each year. In addition, area legislators provide Community Transportation Funds to assist the City of Dover with these types of transportation projects. Improvements made under the annual street program are intended to last a minimum of 15-20 years. 5. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development of the community as it affects low/moderate-income residents of the area. The Public Services Department coordinates construction activities all across the City of Dover ranging from private contractor inspections of residential and commercial construction to maintenance and rehabilitation of all streets, alleys and sidewalks within the City of Dover. All residents, visitors and businesses benefit from improved public works and transportation system projects. 6. Have you received a sub-recipient grant from the previous funding year? Yes. If yes give the total amount $ . The City of Dover received $75,000 in CDBG-R funds and $63,434 in CDBG funds during the last federal fiscal year.

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment 4 Decent Housing Economic Opportunity Please choose the best option that will describe the outcome of your activity based on the categories listed below. Availability/Accessibility Affordability Sustainability D4 Please provide a proposed outcome based on the information below that applies to your activity Number of persons, households, units, or beds assisted as appropriate Income level of persons or households by: Very Low % Low 75 % Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Your close out report will require you provide breakdowns of those served by race, ethnicity and disability.

STAFF REPORT Housing Rehabilitation Program Housing repairs completed on owner occupied homes The Housing Rehabilitation Program completes repairs on owner occupied homes for low to moderate income persons bringing their homes up to code. This project services 100% low to moderate income persons. The grant request of $50,000 is a realistic amount for a maximum of up to $15,000 per home for up to 5 homes to be completed with the rising cost of materials to complete rehabs. The waiting list for this program currently has 15 applicants that will need to be served within the next two years. This project is consistent with Goal 2 of the 2010 Consolidated Plan by preserving the existing housing stock in the City of Dover.

CITY OF DOVER FY11 CDBG GRANT APPLICATION FORM 1. General Applicant Information R = C E i\ f = 2) A. Name, address and phone number of sub-recipient FEB 10 201 Tracey Harvey City of Dover CITY OF DOVER INSPECTIONS & PLANNING 15 E. Loockerman Street Dover, DE 19901 (302) 736-7175 B. Name, position and signature of person submitting application: Tracey Harvey, Community Development Manager Name and position of authorizing official: Same as above. C. Name, address and phone number of Contact Person: (If different from B above) Same as above. Housing Rehabilitation $ 50.000.00 $ N/A Activity: Amount Requested: List Source of Cash Matching Funds

1. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: . Incolumn 1, list the activity. . In column 2, show the total number of persons that the activity will serve. . In column 3, show the number of low- and moderate-income persons that the activity will serve. 4. In column 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. 5. In column 5, show the amount of funds requested for the activity. 6. In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. 7. List the sources of data used to calculate benefit in the space provided at the bottom of this page. WN LOW/MODERATE-INCOME BENEFIT TABLE 1. Activity ]2. Total 3. L/M Persons Persons Activity will | Activity will Serve Serve 4.% L/M Persons Activity will Serve 5. Amount 6. Amount Requested L/M for Activity Benefit Home repairs for owner occupied homes $50,000.00 $50,000.00

Source of Date: The Community Development office maintains a waiting list of clients who own their homes and must qualify based on the low to moderate income limits set by HUD. 2. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Tracey Harvey Community Development Manager B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. N/A 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. A. Each program activity must be addressed separately. Program activities must be listed in order of priority with the program activity of highest priority first. This order of priority for program activities must be followed on all forms contained in this application. e The highest priority for this project is to rehabilitate owner occupied homes found in violation of the City Housing Code. B. Each program activity must be fully described. For rehabilitation programs, this description must include the number of units to be rehabilitated, rental properties to be rehabilitated, any special population groups the rehabilitation program will address, the target area, and the need for the rehabilitation activity. e The total number of units to be rehabilitated is 4 to 5 in which all individual households must qualify as low to moderate income persons based on the income limits set by HUD. Each individual household will be allowed up to $15,000 in repairs to bring their properties up to code. This project is a city wide

project and will focus preserving the existing housing stock in the City of Dover. There is a great need for this project to continue based on the overwhelming demand received daily from the public. Cc. Provide a timetable showing monthly milestones for completion of each activity. e The rehabilitation program will begin immediately once the grant has been approved. The rehabilitation project is expected to take 150 days. The first month of the project will consist of lead base paint testing for all homes that are 50 years of age and over and sent for review and approval to the Historic Preservation Office. The second month of the project will consist of the properties going out for bid. The remaining three months will consist of the rehabilitation of the properties. D. Attach drawings, plans or other documentation necessary to describe program activities. e The properties to be rehabilitated will come from the first 4 to 5 applicants off the waiting list and will be for owner occupied properties city wide. E. Describe each activity’s conformance with the goals and objectives of the City’s Consolidated Plan. e Goal 3 of the 2010 Consolidated Plan is to preserve the existing housing stock in the City of Dover. The rehabilitation of owner occupied homes of low to moderate income persons is consistent with this goal. This project is also consistent with Goal | by providing aid to special needs persons. Housing units that will need to become handicap accessible will be completed by this project. F. Describe the extent to which the proposed project(s) will address one or more significant priorities identified by the City’s Consolidated Plan. e The second priority addressed in the 2010 Consolidated Plan was housing needs. Improving the quality of housing stock will address this need by bringing substandard housing up to code.

G. Describe the extent to which the project builds upon previous work or supplements other work that will be funded from other sources. e Annually this project is funded and each year the city reaches its goal by providing safe sanitary housing to low to moderate income persons and making the neighborhoods more desirable to live in. H. Describe source and amount of any funds used to leverage the City’s portion of the project. Indicate when these funds will be available. Attach documentation of any match. e The city will leverage resources by utilizing the inspections staff to conduct the initial housing inspections. 5. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development of the community as it affects low/moderate-income residents of the area. e The city previously awarded small business loans to merchants in the downtown area to aid in expanding their businesses and to provide employment opportunities for low to moderate income persons. 6. Have you received a sub-recipient grant from the previous funding year? If yes give the total amount $__ 48.000 in 2010

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing Economic Opportunity Discuss your project in terms of the below listed outcome criteria: Availability/Accessibility Affordability Sustainability Xx By rehabilitating owner occupied homes that are in violation of the city’s housing code, this will decrease the number of substandard housing and improve the quality of housing stock in the City of Dover. Please provide a proposed outcome based on the information below that applies to your activity. Number of persons, households, units, or beds assisted as appropriate __5 Income level of persons or households by: Very Low % Low 100. % Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Your close out report will require you to provide breakdowns of those served by race, ethnicity and disability.

STAFF REPORT Homeownership Assistance Program Downpayment assistance for first time homebuyers The Homeownership Assistance Program provides first times homebuyers with down payment assistance or closing cost to purchase affordable housing in the City of Dover. This project services 100% low to moderate income persons. The grant request of $40,000 is a realistic amount with a maximum of up to $10,000 per client to provide downpayment assistance to 4 first time homebuyers purchase property in the City of Dover. This project is consistent with Goal 3 of the 2010 Consolidated Plan by encouraging owner occupied housing to low to moderate income persons. The 2010 grant funding for this program has been expended by 50%, and two (2) first time homebuyers have purchased properties in the City of Dover,

CITY OF DOVER FY11 CDBG GRANT APPLICATION FORM RECEIVED 1. General Applicant Information A. Name, address and phone number of sub-recipient FEB 10 201! Tracey Harvey CITY OF DOVER INSPECTIONS & PLANNING City of Dover 15 E. Loockerman Street Dover, DE 19901 (302) 736-7175 B. Name, position and signature of person submitting application: Tracey Harvey, Community Development Manager Name and position of authorizing official: Same as above. C. Name, address and phone number of Contact Person: (if different from B above) Same as above. Homeownership Assistance $ 40,000.00 $ None Activity: Amount Requested: List Source of Cash Matching Funds

2. Low/Moderate-Income Benefit: LOW/MODERATE - INCOME BENEFIT TABLE - Instructions The amount of benefit to low- and moderate-income persons must be calculated for each activity, as described below: i; In column 1, list the activity. 2. In column 2, show the total number of persons that the activity will serve. 3. time 1. Activity Closing cost for 4 first homebuyers In column 3, show the number of low- and moderate-income persons that the activity will serve. . Incolumn 4, divide column 3 by column 2 to show the percent of low- and moderate- income persons that the activity will serve. . Incolumn 5, show the amount of funds requested for the activity. . In column 6, multiply column 4 by column 5 to show the amount of those funds that will be used to benefit low- and moderate-income persons. . List the sources of data used to calculate benefit in the space provided at the bottom of this page. LOW/MODERATE-INCOME BENEFIT TABLE 2. Total 3. L/M 4.% L/M 5. Amount 6. Amount Persons Persons Persons Requested L/M Activity will | Activity will | Activity will | for Activity Benefit Serve Serve Serve 4 families A 100% $40,000.00 $40,000.00

Source of Date: The Homeownership Assistance Program is advertised on the city’s website and listed in the Delaware Housing Services Directory. All potential applicants must meet the HUD income limits for low to moderate income persons. 3. Management Capacity A. List the person(s) to be responsible for administering the CDBG Project: Sub-Recipient Personnel Title(s) Tracey Harvey Community Development Manager B. Attach resumes or other supporting documentation for the personnel of new applicants, which establishes the capacity of the personnel above to effectively manage a CDBG sub-recipient project. N/A 4. Application Work Plan Each proposed program activity must address each of the following areas. Attach a mission statement and purpose of your organization. A. Each program activity must be addressed separately. Program activities must be listed in order of priority with the program activity of highest priority first. This order of priority for program activities must be followed on all forms contained in this application. e The highest priority for this project is to provide affordable housing to low to moderate income persons. B. Each program activity must be fully described. For rehabilitation programs, this description must include the number of units to be rehabilitated, rental properties to be rehabilitated, any special population groups the rehabilitation program will address, the target area, and the need for the rehabilitation activity. e Funding for this program will be available to 4 first time homebuyers who will be required to purchase property in the City of Dover who must complete a homeownership counseling

program with a certified HUD counselor before signing a sales contract. Assistance is provided up to $10,000 for properties purchased in the city. The city will place a second mortgage lien on the property and if within the first five years the home is sold, transferred, or the property ceases to be the borrower’s principal residence, the loan becomes due and payable. The interest rate is 0% and is forgiven after five years. C. Provide a timetable showing monthly milestones for completion of each activity. D. N/A Funding for this program is available on a first come first serve basis and will be drawdown as the applicants purchase properties. Attach drawings, plans or other documentation necessary to describe program activities. E. Describe each activity’s conformance with the goals and objectives of the City’s Consolidated Plan. e This project is consistent with Goal 3: Encourage owner occupied housing in low to moderate income areas by continuing to provide down payment assistance to qualified homebuyers. F. Describe the extent to which the proposed project(s) will address one or more significant priorities identified by the City’s Consolidated Plan. Housing needs was ranked number two in priorities in the 2010 Consolidated Plan. By providing homeownership assistance to first time homebuyers, this will assist in eliminating barriers to affordable housing. G. Describe the extent to which the project builds upon previous work or supplements other work that will be funded from other sources. Annually this project is funded and each year the city reaches its goal by assisting in providing affordable housing to low to moderate income persons. In addition, the city is working in conjunction with Dover Housing Authority by providing homeownership assistance to their clients who purchase properties that have been rehabilitated in the target area and sold to low to

moderate income persons. H. Describe source and amount of any funds used to leverage the City’s portion of the project. Indicate when these funds will be available. Attach documentation of any match. None. 5. Each application should also describe the following: A. Describe any efforts to coordinate with businesses regarding the development of the community as it affects low/moderate-income residents of the area. e The city previously awarded small business loans to merchants in the downtown area to aid in expanding their businesses and to provide employment opportunities for low to moderate income persons. 6. Have you received a sub-recipient grant from the previous funding year? If yes give the total amount $_ 40,000.00 in 2010

ADDENDUM 2011 CDBG SUB-RECIPIENT APPLICATION FORM Please choose the best option that describes the purpose of your activity from the three objectives. Suitable Living Environment Decent Housing 4 Economic Opportunity Discuss your project in terms of the below listed outcome criteria: Availability/Accessibility Affordability Xx Sustainability The city’s goal is to continue to partner with other housing provides to increase the opportunities available for low to moderate income persons to purchase affordable housing. Please provide a proposed outcome based on the information below that applies to your activity. Number of persons, households, units, or beds assisted as appropriate 4 Income level of persons or households by: Very Low % Low _100. % Moderate % If your activity benefits a target area, please show the number of persons served and the percentage of low/mod persons served. Your close out report will require you to provide breakdowns of those served by race, ethnicity and disability.