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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]