Transcript Slide 1
Georgia Department of Community
Affairs
CDBG Economic Development
Redevelopment Fund Program (RDF)
December 4, 2014
Staci Tillman
Eligible Redevelopment Fund Program (RDF) Activities
Activities that are eligible under the Housing and Community Development Act
of 1974, as amended, and the HUD implementing regulations applicable to
the State CDBG Program are eligible for funding under this special
redevelopment set-aside.
For projects that will be used for housing, the minimum benefit to low- to
moderate income (LMI) persons must be at least 70 percent.
For public facility activities benefiting residents in a particular service area,
70 percent of the people benefiting from the use of the facility must be LMI
persons.
For projects that will create or retain permanent jobs, at least 51 percent of
the benefit must be made available to LMI persons.
For projects that will benefit specific groups of persons rather than
everyone in the area, at least 51 percent of the beneficiaries of an activity
must be LMI persons.
December 4, 2014
National Objective-Elimination of Slums and Blight
There are two categories that can be used to qualify
activities under this National Objective:
Prevent
or eliminate slums and blight on an “area basis”
or
Prevent
or eliminate slums and blight on an “spot basis”
Available Funding
CDBG Funds from U.S. Housing and Urban
Development (HUD)
Annual
Competition
$36.2 million CDBG allocation
EIP
$8 million set-aside
RDF
$1.5 million set-aside
Immediate
Threat
$500,000 set-aside
Spot Basis
Spot Basis eligible activities:
Acquisition
Clearance
Relocation
Historic
preservation
Building
rehabilitation activities which eliminate specific
conditions of blight or physical decay on a spot basis that may
not be located in a slum or blighted area
Spot Basis
Spot Basis eligible activities:
Under
this standard, the activity is limited to the extent
necessary to eliminate specific conditions detrimental to the
public health and safety.
Example
activities include: elimination of faulty wiring, falling
plaster, or other similar conditions which are detrimental to all
potential occupants; historic preservation of a public facility;
and demolition of a vacant, deteriorated building.
Area Basis
The
area, delineated by a unit of local government, meets a
definition of a blighted, deteriorated, deteriorating, or slum
area under state or local law;
Throughout
the area there is a substantial number of
deteriorating buildings or the public improvements are in a
general state of deterioration;
Area Basis
The
assisted activities address one or more of the conditions
which contributed to the deterioration of the area; and
The
local government keeps records sufficient to document its
finding that a project meets the National Objective of
elimination or prevention of slums and blight.
Redevelopment Fund Program (RDF)
Eligible Activities:
Projects must alleviate a “slum or blighted” condition
Grants
Loans
- Public infrastructure, public facilities
- to acquire and alleviate blighted buildings/facilities
Loan
repayments may be placed in an existing local Revolving
Loan Fund (RLF) or establish a new fund.
Any
new jobs must be available to low- and moderate-income
persons
Ineligible CDBG-RDF Activities
Machinery
Working
and Equipment (HVAC systems)
Capital
Refinancing
Speculative
Capacity
General
Project
Using
Projects
Building
Conduct of Government
Not Meeting Federal Guidelines
Federal Funds to relocate businesses (There are
Restrictions)
Example RDF Eligible Activities
Acquisition
and clearance of blighted property;
Renovation
and reuse of abandoned historical buildings;
Commercial
revitalization through facade improvements
(grant/loan);
Removal
of environmental contaminants on property to enable
it to be redeveloped for a specific use.
Example RDF Eligible Activities
Spot Basis
Facade improvements with
restrictions
Building rehabilitation with
restrictions
Removal of environmental
contaminants
Demolition
Building acquisition
Pedestrian walk way with
restrictions
Area Basis
Facade improvements
Building rehabilitation
Removal of environmental
contaminants
Demolition and construction
Building acquisition
Pedestrian walk way
Successful Spot Basis Projects
City of West Point – West Point 2100
City of Braselton – Braselton Brothers Store
Complex
John VanBrunt
Field Representative
Office of
Economic Development
City of Braselton
Recipient : City of Braselton
Grant Amount : $500,000
City of Braselton
City of Braselton
City of Braselton
[Before]
City of Braselton: Source and Use
Source
RDF
City of Braselton
Companies
TOTAL
Amount
$500,000
$985,000
$322,000
$1,807,000
Use
Amount
Renovations
$425,000
Architectural Services
$ 50,000
Grant admin.
$25,000
Building (donated)
$835,000
Renovations
$137,000
Architectural Services
$13,000
Value of business (existing)
$322,000
TOTAL
$1,807,000
City of Braselton: Progress
City of Braselton
Braselton Triumph
Patrick Vickers
Field Representative
Office of
Economic Development
Kelly Folsom Lane
Field Representative
Office of
Economic Development
Successful Area Basis Project
City of Thomasville - Victoria Place
Thomasville RDF Award
RDF
Grant to City of Thomasville for land acquisition,
building rehab and expansion of a blighted structure in
the Victoria Place Urban Redevelopment Area to be used
as the newly instituted Housing and Resource Center
Grant
Amount $270,884; TPC $413,291
Center
is fully occupied by 5 non profits (Red Cross,
Habitat for Humanity, Relief from the Streets, Lives without
Limits, and Keep Thomas County Beautiful)
Has
provided services to 329 persons as of July 2013
Thomasville RDF Source and Use
Source
Use
Amount
RDF
Acquisition fees/Rehab
$270,884
City
Construction/Admin
$ 79,048
Flowers Baking Co.
Construction
$ 57,167
/Land
Habitat for Humanity Building
$ 3,192
Hands on Thomas
$ 3,000
Building Rehab
Total Project Cost
$413,291
Thomasville Housing & Resource Center
Things to Remember
Identify your project on “Spot
Basis” or “Area Basis”
Verify that your activities are
eligible
Document need, costs and support
of organizations, banks &
businesses
Debt – credit underwriting and
terms
Funding Opportunities for Downtown Projects
Downtown
Development
Revolving Loan
Fund
Eligible
Applicants
Program Focus
Funding Limit
• Cities < 100,000
population
• Counties < 100,000
population
Georgia Cities
Foundation
• Cities
No population limit
CDBG
• Cities
• Counties
Redevelopment
Fund
• Cities
• Counties
Assist communities with revitalizing
downtowns by providing funding for quality
downtown projects
Projects that
primarily benefit
low/moderate
income persons
‘Elimination of
slum and blight’
$250,000/project
$500,000/project
$500,000/project
$250,000/project
RDF and RLF Program Support Contacts
Staci Tillman –Redevelopment Program Manager
(404) 679-0668
[email protected]
Michael Casper – Local RLF Coordinator
(404) 679-0594
[email protected]
Economic Development Representative Contacts
Jennifer Fordham – Southeast Georgia
(912) 865-4212
[email protected]
Kelly Lane – South Georgia
(229) 896-4259
[email protected]
John VanBrunt – At-Large
(404) 327-6871
[email protected]
Tonya Mole – Southwest Georgia
(404) 852-6876
[email protected]
Patrick Vickers – Northwest Georgia
(404) 679-3151
[email protected]
Rusty Haygood – Field Services Office Manager & Northeast Georgia
(404) 977-1429
[email protected]