Transcript CDBG Economic Development

Georgia Department of Community Affairs
CDBG Economic Development
Annual Competition and Set-Aside Programs
CDBG, EIP, RDF and Capitalized RLF
GENERAL OVERVIEW
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.”
Page 3
Economic Development
| 12-3-09
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
Page 4
Economic Development
| 12-3-09
Available Funding
CDBG Funds from U.S. Housing and
Urban Development (HUD)
Annual
Competition
$34 million CDBG allocation
EIP
$8 million set-aside
RDF
$1.5 million set-aside
Page 5
Economic Development
| 12-3-09
Features of Economic Development
Programs
Maximum Grant
$500,000
Primary Purpose
Expand employment opportunities
for L/M income people
Low/Moderate
Income Benefit
At least 51% of jobs created and/or
retained
Eligible Uses
Public facilities, infrastructure,
business loans, elimination of Slum
and Blight
Page 6
Economic Development
| 12-3-09
Differences of Economic Development
Programs
Annual Competition (CDBG-ED)
Set-Asides (EIP/RDF)
•
One annual submission
•
Anytime submission
•
Compete against rating and review
process and other applications
•
Compete against rating
and review process
•
Complete Application without
exceptions
•
Complete application
with second change
•
Processing time – 45
days for complete
application
•
Processing time – 5 months
Page 7
Economic Development
| 12-3-09
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)
Page 8
Economic Development
| 12-3-09
GETTING STARTED
Getting Started – Annual Competition,
EIP & RDF
1.
Have an Idea? Call DCA early!
2.
PACA Request (CDBG-ED) or Initial
Project Assessment (EIP/RDF) – Field
Services representative will visit.
3.
PACA – pre-agreement cost approval
does not guarantee funding.
4.
Application – Reviewed by panel.
Page 10
Economic Development
| 12-3-09
The CDFD Finance Team
Field Staff
Project identification,
assessment and
development
Compliance monitoring
Credit Unit
Credit analysis,
underwriting
Financing options
Page 11
Program Manager
Review overall project
Ensure program
objectives can be met
Craft award documents
Project oversight
Economic Development
| 12-3-09
Application Process
• Application Forms (DCA 1- DCA 13)
• Supplemental Information & Documentation
• Public Infrastructure or Loan attachments
Refer to: EIP or RDF Application Manuals and CDBG
Applicants & Recipients Manuals
www.dca.ga.gov
* Further discussion in Advanced Session *
Page 12
Economic Development
| 12-3-09
Four Routes to ED with CDBG
1.
2.
3.
4.
Annual Competition CDBG-ED
application
Employment Incentive
Program
Redevelopment Fund
Program
Local Revolving Loan Fund
(generated by CDBG-ED, EIP
or RDF loans)
Page 13
Economic Development
| 12-3-09
SPECIFIC PROGRAMS
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 “sprayfields”
Roads - access, turn lanes, accel/decel lanes, paving
Stormwater drainage – ditches, pipes, culverts, ponds
Rail spurs - switches, track, track base, derails, stops
Other - wastewater pretreatment plant, gas lines (“red”)
Public Facilities
Workforce development centers / Child care facilities
Page 16
Economic Development
| 12-3-09
Oconee County – Zoom Bait Company,
Inc. & St. Mary’s Healthcare Systems Inc.
• Recipient – Oconee County
• Sub-Recipient – Zoom Bait
Company, Inc. & St. Mary’s
Healthcare Systems, Inc.
• Grant Amount - $373,422
• Project – sewer line extension
• Private Investment - $7.5 Million
• Jobs – Create 12, Retain 127
(172 existing jobs)
Page 17
Economic Development
| 12-3-09
Source and Use – Oconee County
Source
EIP
County
Amount
$
$
373,422
186,344
Use
Amount
Sewer Line Construction
$
157,778
Engineering Fees
$
18,933
Grant Administration
$
10,000
Sewer Line Construction
$
157,777
Engineering Fees
$
28,567
Zoom
$ 2,000,000
Existing Capital Investment
$ 2,000,000
St. Mary’s
$ 5,500,000
Building, M&E and F&F
$ 5,500,000
Total
$ 7,873,055
Total
Page 18
$ 7,873,055
Economic Development
| 12-3-09
Oconee County
St. Mary’s Healthcare
Systems Inc.
Zoom Bait Company, Inc.
Page 19
Economic Development
| 12-3-09
Infrastructure Grants
Areas of Concern:
DCA-4 Description of Needs to be Addressed – Needs for improvement of existing
conditions (more than just project)
DCA-5 Description of Activities – Specific project activities with codes and timetable
to meet program relative needs addressed in DCA-4
DCA-8 Budget Analysis – CDBG funded construction, engineer/architect and grant
administration by ED activity codes and other public /private funding
EIP Application Supplements
Preliminary Engineering Report or Preliminary Architectural Report
Project Cost Estimate
Source-and-Use Statement
Commitment Letter(s) – all public and private sources of project funding
Letter of Credit or Surety Bond
Economic Development and EIP Supplemental Information and Documentation
Rating and Selection Criteria
Infrastructure Capacity Analysis (IFCA)
Economic Development & Construction Agreement
Page 20
Economic Development
| 12-3-09
EIP GRANT – LOAN TO
PRIVATE FOR-PROFIT
BUSINESS
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
Page 22
Economic Development
| 12-3-09
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
Page 23
Economic Development
| 12-3-09
City of Quitman – Crown Health
Care Laundry Services, Inc.
•Recipient – City of Quitman
•Sub-Recipient – Crown Health
Care Laundry Services, Inc.
•Grant Amount - $500,000
•Project – Building
Improvements
•Private Investment - $500,000
•Jobs – 140
Page 24
Economic Development
| 12-3-09
Source and Use – City of Quitman
Source
EIP
Amount
$
500,000
Use
Amount
Building Improvement
$
470,000
Grant Administration
$
30,000
City
$ 1,000,000
Building Acquisition
$ 1,000,000
City RLF
$
255,000
Building Improvement
$
255,000
OneGA EDGE
$
375,000
Building Improvement
$
375,000
CHLS
$ 2,500,000
Equipment
$ 2,100,000
Working Capital
$
375,000
Inventory
$
25,000
Total
$ 4,630,000
Total
$ 4,630,000
Page 25
Economic Development
| 12-3-09
REDEVELOPMENT FUND
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
Page 27
Economic Development
| 12-3-09
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
Page 28
Economic Development
| 12-3-09
City of Boston
•Recipient – City of Boston
•Grant Amount - $343,591
•Project – Renovate a blighted
storefront alleviated
deteriorated building
conditions and stabilize the
structure of the adjourning
buildings.
•Private Investment - $35,000
Page 29
Economic Development
| 12-3-09
Source and Use – City of Boston
Source
RDF
Amount
$
308,591
City of Boston
$
35,000
TOTAL
$
343,591
Use
Amount
Acquisition
$
7,400
Construction
$
257,000
Architectural
$
25,700
Grant Administration
$
18,491
Architectural
$
35,000
TOTAL
$
343,591
Page 30
Economic Development
| 12-3-09
City of Boston
Page 31
Economic Development
| 12-3-09
LOCAL REVOLVING
LOAN FUND (RLF)
Local Revolving Loan Funds
• EIP/RDF loan payments capitalize local RLF
• RLFs can be used for local economic
development needs
• Must be CDBG-eligible
• Opportunities available to partner with local
banks to finance eligible activities (same as
EIP) that create employment for L/M persons
Page 33
Economic Development
| 12-3-09
Local Revolving Loan Funds
• Administered by local government with DCA’s
oversight and guidance (as needed)
• Currently 71 RLF’s throughout Georgia, with:
▪ $34 million in RLF assets
▪ $11 million in cash
▪ $23 million in loan receivables
• RLF must be used in a timely manner – at least one
new loan every five (5) years
• For RLF cash balances greater than $125k, cash
balance should be maintained at less than 30% of
total RLF assets
Page 34
Economic Development
| 12-3-09
THINGS TO
REMEMBER
Things to Remember
• Describe your project and
jobs created/retained
• Document need, costs
and support of banks &
businesses
• Debt – credit
underwriting and terms
Page 36
Economic Development
| 12-3-09
Program Manager Contacts:
Andy Yarn
- Employment Incentive Program
(404) 679-1589 [email protected]
Nyanza Duplessis – EIP Loan and RDF Program
(404) 679-0668 [email protected]
Michael Casper – Local RLF Coordinator
(404) 679-0594 [email protected]
John Kingery – Credit Manager
(404) 679-1586 [email protected]
Page 37
Economic Development
| 12-3-09
ED Representative Contacts:
Jennifer Fordham – Southeast Georgia
(912) 865-4212 [email protected]
Kelly Lane – South Georgia
(229) 896-4259 [email protected]
David Shellhorse – Northeast Georgia
(706) 955-7505 [email protected]
Ron Thompson – Southwest Georgia
(478) 934-3845 [email protected]
Patrick Vickers – Northwest Georgia
(404) 679-3151 [email protected]
Glenn Misner – Field Services Office Manager
(404) 679-3138 [email protected]
Page 38
Economic Development
| 12-3-09