2014 community development block grant acs data and income survey guidance november 29, 2015

2014 COMMUNITY DEVELOPMENT BLOCK GRANT ACS DATA AND INCOME SURVEY GUIDANCE

April 21, 2023

• Presentation will provide information on:

• HUD Transition Policy CDP Notice 14-10 dated June 10, 2014

• American Community Survey (ACS) data

• Income Survey Methodology – HUD CPD Notice 05-06 dated July 26, 2005 and HUD CPD Notice 14-013 dated September 23, 2014

SUPPORTING CDBG ACTIVITIES – SURVEY METHODOLOGY

INTRODUCTION

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All questions must be submitted into the Q&A box on the screen.

Due to the topic, all questions will be reviewed after the webinar and answered. The Q&A will be provided to all grantees no later than October 31, 2014.


ASK A QUESTION

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TRANSITION POLICY•HUD issued CPD-Notice 14-10 which put an effective date on the use of the Low/Moderate Income Summary Data (LMISD)• Must be used “to the fullest extent feasible” unless the grantee believes that the data are not current or do not provide enough information regarding income levels in the entire service area

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• LMISD data is derived from the American Community Survey (ACS) data

• Effective date for the LMISD – July 1, 2014

• Affects area benefit activities


TRANSITION POLICY

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TRANSITION POLICY•Four Part Test

1. An award before the effective date – July 1, 2014

2. A specific activity has been identified and approved

3. A specific amount was approved

… provided that the total amount awarded for that activity, prior to July 1, 2014, is not exceeded

4. A clearly defined service area

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TRANSITION POLICY cont’d.Limited Exceptions and Clarifications

1. Pre-Award Costs – Must have DCED’s written approval –

See Appendix A of the grant contract

2. Cost Overruns – Unexpected increases in costs – bids coming in over or under are expected as part of the process

DCED is developing policy on future pre-award project cost and multi year funded projects. Keep in mind the 3 year activity expenditure deadline…

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• On July 2nd , DCED sent out a CD&H alert, regarding the release of the ACS data.

• ACS data replaces the Census data.

• Any income survey completed prior to 2010 is no longer valid. DCED will review surveys conducted after January 1, 2010 to ensure compliance with survey methodology.


AMERICAN COMMUNITIES SURVEY DATA

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• American Communities Survey 2006-2010 • ACS uses a smaller sample size than previous Census surveys but

combines 5 years worth of results- ACS = (1 in 10 households over the 5 year period; future will be 1 in 8)- Census = (1 in 6 households once every 10 years)

• DCED has provided the results by municipality as well as by census tracts and block groups

• Identify the ACS data that is shared by multiple municipalities at the

CT / BG level… ex:

- Cannot use if the defined service area is not multi-municipal

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AMERICAN COMMUNITIES SURVEY DATA


EXAMPLE – Butler County

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Petrolia borough, Butler County, Pennsylvania PA 42 019 59672 55

105

120

170 61.76%


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Petrolia Borough

Fairview Township

Fairview Borough

Karns City Borough

Census Tract 9101

• What are split block groups – Previously HUD was able to associate a portion of a BG with one grantee and another portion of the BG to another grantee – the split block group layer is not available – the same data is reported for several municipalities


SPLIT BLOCK GROUPS – no longer available

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Income surveys are a vital part of the CDBG program.

•Surveys support a critical element of the program – National Objective justification for LMA benefitSometimes referred to as fundability

•24 CFR 570.208(a)(1)(vi) [Entitlement Regs.] and 24 CFR 570.483(b)(1)(i) [State Regs.]


INCOME SURVEYS

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INCOME SURVEY METHODOLOGY•Define service area• Identify number of families in the universe

• How you identify is critical – understand the definition of family for undertaking surveys for an area wide benefit– account for households that do not have landlines- – account for rental properties– account for limited English proficiency families– multiple families in one unit (rental housing stock)

– Temporary / seasonal homes- (CPD Notice 05-06 pages 11-12)

Incidental benefit from the proposed project /activity

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It is important to understand who is being targeted for income surveys.

The next few slides will provide information on family vs. households, and how to calculate the response rate for the income survey, to ensure it is statistically reliable.


INCOME SURVEY METHODOLOGY

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When conducting an income survey, which group is being measured? a)Familiesb)Householdsc)Bothd)Neither


FAMILY versus HOUSEHOLD INCOME

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When conducting an income survey, which group is being measured?

a)Families



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DefinitionsFamily—All persons living in the same

household who are related by birth, marriage, or adoption.

Household—All persons who occupy a housing unit.

There may be multiple families in a household (unit)



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Why do grantees need to do this?To ensure the area being surveyed is well-

represented and the results are statistically reliable.

The next few slides will walk you through how to calculate the needed response rate.


CALCULATING RESPONSE RATE

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If a service area has 100 families or less, than a 100% response rate is needed to make the survey statistically reliable.

This method is also known as a “census” survey.

See pages 10-11 of the CDP Notice 05-06

51% of the total universe must be LMI not 51% of the responses received


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SERVICE AREA—100 FAMILIES OR LESS

For those surveys that are randomly selected, please follow these instructions:

1. Log onto Sample Size Calculator

2. Select 95% as the Confidence Level

3. Input 5 as the Confidence Interval

4. Input the # of families in the service

5. Select “Calculate”

The number provided is the sample size for the survey.



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http://www.surveysystem.com/sscalc.htm

• After determining the sample size, you need to determine the # of surveys to be distributed

(Over sample to account for non-responses and vacancies)

Sample Size ÷ .80 = # of Income Surveys Distributed


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Step by Step for Service Area with 400 Families:

1. Log onto Sample Size Calculator

2. Sample size is 196

3. 196 ÷.80 = 245

4. 245 income surveys will be distributed; Required

responses needed is 196 income surveys returned

(Validate each response)


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http://www.surveysystem.com/sscalc.htm

How many responses (out of the 100 persons) need to be LMI?

a) 41b) 50c) 51d) 75


CALCULATING LMI Benefit

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c) 51 persons

If you achieve less than 100% response, the results must be 51% LMI of the overall population, not just 51% of the responses.

Refer to example on pages 10 and 11 of the CDP Notice 05-06


CALCULATING LMI Benefit

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Question: What happens if the difference between the income survey and the ACS data is greater than 5%?

Answer: The grantee is required to provide documentation of known demographic changes that may have impacted the ACS results prior to undertaking the survey and receive DCED’s approval before moving forward.

EXAMPLE: Job losses, natural disasters or other demographics to support possible significant changes in data. After 2010…


ACS DATA SUPPPORTS LMI of LESS THAN 46%

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Grantees are responsible to follow the HUD survey methodology. Any methodology that deviates from the HUD methodology must be approved by DCED prior to conducting surveys.

Grantees must provide the following documentation when submitting an income survey to DCED.


GRANTEE RESPONSIBILITIES

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• Policies must include:• Training procedures

• Calculation methods• How do you account for non-respondents?

• How are seasonal residences measured?

• Interviewing procedures• Need to ensure interviewers do not bias the results

Interviewers – Selection of who conducts the survey is

critical to avoid any bias into the survey results.

Interviewers should be neutral and have no vested

interest in the project.


CONDUCTING A SURVEY

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All grantees must submit the following documentation with an income survey:• Income Survey Coversheet

• K-2 Form

• Survey Results Distribution Worksheet


Income Survey Documentation

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1. Can ACS data be combined with an income survey?For example, if a county is conducting a survey and one municipality is 51% by ACS but the remaining 7 communities are not, can the ACS data be combined with the survey of the remaining communities? If so, what are the parameters?

2. Transition policy allows for a community to use BG data for a smaller portion of the population in the BG if the population is representative of the entire BG population. Is that a correct read on the transition policy? See pages 5-6 of the transition policy.


UNANSWERED QUESTIONS

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3. Bid was awarded by a unit of local government for a costs higher than the approved amount by DCED but it occurred prior to the effective date of the transition policy, is it OK to add additional funds to this project now although the ACS LMISD does not qualify the area.

4. College Students


UNANSWERED QUESTIONS

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Please visit the Federal Resource Library for additional information

Thank you for your participation.


ADDITIONAL RESOURCES

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http://www.newpa.com/community/federal-program-resource-library/cdbg

2014 community development block grant acs data and income survey guidance november 29, 2015

Documents

income survey guidance

census data

lmisd data

area benefit activities

income levels

defined service area

entire service area

census tracts