330 likes | 534 Views
Georgia Department of Community Affairs CDBG Economic Development. Annual Competition and Set-Aside Programs CDBG, EIP, RDF and Capitalized RLF. Overview. Community Development Block Grant (CDBG) enacted by Congress as Title I of Housing and Community Development Act of 1974
E N D
Georgia Department of Community AffairsCDBG Economic Development Annual Competition and Set-Aside Programs CDBG, EIP,RDF and Capitalized RLF
Overview Community Development Block Grant (CDBG) enacted by Congress as Title I of Housing and Community Development Act of 1974 The primary objective of CDBG is “the development of viable communities through improvement of living conditions, housing and the expansion of economic opportunities in cities and counties, principally for persons of low and moderate income.” December 11-12, 2013
Overview (Cont.) Local governments can implement a broad range of activities as long as they further the National Objectives of the Act National Objectives are: • Majority benefit to low- and moderate-income persons through services and job creation; • Prevention or elimination of slum and blight; • Immediate Threat & Danger. December 11-12, 2013
Available Funding CDBG Funds from U.S. Housing and Urban Development (HUD) December 11-12, 2013
Features of Economic Development Programs December 11-12, 2013
Differences of Economic Development Programs • Annual Competition (CDBG-ED) • One annual submission • Compete against rating and review process and other applications • Complete Application without exceptions • Processing time – 5 months Set-Asides (EIP/RDF) • Anytime submission • Compete against rating and review process • Complete application with second change • Processing time – 45 days for complete application December 11-12, 2013
Ineligible CDBG-ED/EIP/RDF Activities • Working Capital • Refinancing • Speculative Projects • Capacity Building • General Conduct of Government • Project Not Meeting Federal Guidelines • Using Federal Funds to relocate businesses (There are Restrictions) December 11-12, 2013
Four Routes to ED with CDBG • Annual Competition CDBG-ED application • Employment Incentive Program • Redevelopment Fund Program • Local Revolving Loan Fund (generated by CDBG-ED, EIP or RDF loans) December 11-12, 2013
ANNUAL COMPETITION and/or EIP GRANT PUBLIC INFRASTRUCTURE
Infrastructure Grants - Eligible Activities Public Infrastructure Acquisition, construction and rehabilitation of: • Water: lines, tanks, wells, treatment plants; • Sewer: gravity lines, forcemains, pump stations, treatment plants, land application “spray fields;” • Roads: access, turn lanes, accel/decel lanes, paving; • Stormwater drainage: ditches, pipes, culverts, ponds; December 11-12, 2013
Infrastructure Grants - Eligible Activities • Rail spurs: switches, track, track base, derails, stops; and • Other: wastewater pretreatment plant, gas lines (“red”). Public Facilities • Workforce development centers / Child care facilities. December 11-12, 2013
Dooly County – Lasseter Implement Co Agricultural Equipment Facility • Recipient – Dooly County • Sub-Recipient – Lasseter Implement Company Agricultural Equipment Facility • Grant Amount - $500,000 • Project – public road improvement • Private Investment - $1.8 Million • Jobs – Retain 22 100% L/M December 11-12, 2013
Source and Use – Dooly County December 11-12, 2013
Dooly County Success! Lasseter Implement Company Agriculture Equipment – EIP Road Improvement December 11-12, 2013
EIP Loans – Eligible Activities * Loans to for-profit for purchase of fixed assets Acquisition, construction and rehabilitation of commercial or industrial land, building(s), machinery and equipment and other real property improvements * Loan repayments may capitalize or be placed into a local RLF December 11-12, 2013
Loan Structures • DCA Grant to a Local Government • Local Government then provides: • Direct loan to a private business or, • A loan to a development authority who then makes a direct loan to a private business December 11-12, 2013
City of Homerville – Okefenokee Berry Center • Recipient – City of Homerville • Sub-Recipient – Okefenokee Berry Center • Grant Amount - $500,000 • Project – 3.5 acres of land and 36,000 sq. ft. building acquisition • Private Investment - $712,717 • Jobs – create 149, 100% L/M December 11-12, 2013
Source and Use – City of Homerville December 11-12, 2013
City of Homerville Success – Okefenokee Berry Center December 11-12, 2013
REDEVELOPMENT FUND Categories Eligible activities must meet one of the following criteria: • Prevent or eliminate slums and blight on an “area basis”; • Prevent or eliminate slums and blight on an “spot basis”; or • Be in an urban renewal area. December 11-12, 2013
REDEVELOPMENT FUND Eligible Activities: • Projects must alleviate a “slum or blighted” condition • Public infrastructure, public facilities • Loans to acquire and alleviate blighted buildings/facilities • Loan/lease payments may be capitalized into a local RLF • Any new jobs must be available to low- and moderate-income persons December 11-12, 2013
Samples of RDF Eligible Activities • Acquisition and clearance of blighted property; • Renovation and reuse of abandoned historical buildings; • Commercial revitalization through façade improvements; • Removal of environmental contaminants on property to enable it to be redeveloped for a specific use. December 11-12, 2013
City of Nashville • Recipient – City of Nashville • Grant Amount - $162,617 • Project – Acquire property, building improvement of store front and stabilization of adjacent building on the main street in downtown Nashville. December 11-12, 2013
Source and Use – City of Nashville December 11-12, 2013
City of Nashville – Success! December 11-12, 2013
City of Nashville – Success! The West Wall (RDF funds) The East Wall (City funds) December 11-12, 2013
Local Revolving Loan Funds • EIP/RDF loan payments capitalize local RLF loan. The payments (including interest), and bank account interest retain federal identity. • RLFs may be used for local CDBG eligible economic development needs. • Opportunities available to partner with local banks to finance eligible activities (same as EIP) that create employment for L/M persons. • 50/40/10 Rule: Project funded with 50% RLF, 40% local bank, and 10% private funding. December 11-12, 2013
Local Revolving Loan Funds • Currently 68 active RLF’s throughout Georgia, with: • $31.9 million in RLF assets • $12.8 million in cash • $191K average • $19.1 million in loan receivables • $285K average • $5.16 million cash returned to DCA over past 5+ years for non-compliance. • Encourage Local RLF’s to use RLF funds as a funding gap for large projects – may request DCA waiver, if necessary. December 11-12, 2013
Program Manager Contacts: Nyanza Duplessis – EIP Loan and RDF (404) 679-0668 nyanza.duplessis@dca.ga.gov Brock Smith – EIP Infrastructure (404) 679-1744 brock.smith@dca.ga.gov Michael Casper – Local RLF Coordinator (404) 679-0594 michael.casper@dca.ga.gov December 11-12, 2013
ED Representative Contacts: Jennifer Fordham – Southeast Georgia (912) 865-4212 jennifer.fordham@dca.ga.gov Kelly Lane – South Georgia • (229) 896-4259 kelly.lane@dca.ga.gov John VanBrunt – Northeast Georgia (404) 327-6871john.vanbrunt@dca.ga.gov Tonya Mole – Southwest Georgia (404) 852-6876 tonya.mole@dca.ga.gov Patrick Vickers – Northwest Georgia (404) 679-3151 patrick.vickers@dca.ga.gov Glenn Misner – Field Services Office Manager (404) 679-3138 glenn.misner@dca.ga.gov December 11-12, 2013