Transcript Slide 1
Georgia Department of Community Affairs CDBG Economic Development
Annual Competition and Set-Aside Programs CDBG, EIP, RDF and Capitalized RLF
2014 CDBG Applicants' Workshop
Community Finance Division
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.”
2014 CDBG Applicants' Workshop
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Community Finance Division
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.
2014 CDBG Applicants' Workshop
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Community Finance Division
Available Funding
CDBG Funds from U.S. Housing and Urban Development (HUD) $30 million CDBG allocation Annual Competition EIP RDF $8 million set-aside $1.5 million set-aside
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Community Finance Division Features of Economic Development Programs Maximum Grant $500,000 Primary Purpose Low/Moderate Income Benefit Eligible Uses Expand employment opportunities for L/M income people At least 51% of jobs created and/or retained Public facilities, infrastructure, business loans, elimination of Slum and Blight
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Community Finance Division Differences of Economic Development Programs Annual Competition (CDBG-ED) Set-Asides (EIP/RDF)
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One annual submission
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Anytime submission
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Compete against rating and review process and other applications
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Compete against rating and review process
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Complete Application without exceptions
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Processing time – 5 months
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Complete application with second change
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Processing time application – 45 days for complete
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Community Finance Division Ineligible CDBG-ED/EIP/RDF Activities
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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)
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Community Finance Division
Four Routes to ED with CDBG
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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)
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ANNUAL COMPETITION and/or EIP GRANT PUBLIC INFRASTRUCTURE
2014 CDBG Applicants' Workshop
Community Finance Division Infrastructure Grants - Eligible Activities Public Infrastructure
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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;
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Community Finance Division Infrastructure Grants - Eligible Activities
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Rail spurs: switches, track, track base, derails, stops; and Other: wastewater pretreatment plant, gas lines (“red”).
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Public Facilities Workforce development centers / Child care facilities.
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Community Finance Division Dooly County – Lasseter Implement Co Agricultural Equipment Facility
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Recipient – Dooly County
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Sub-Recipient – Lasseter Implement Company Agricultural Equipment Facility
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Grant Amount - $500,000
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Project – public road improvement
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Private Investment - $1.8 Million
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Jobs – Retain 22 100% L/M
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Community Finance Division Source and Use – Dooly County EIP Source Lasseter Amount $ 104,497 $ 1,750,000 Use Road improvements Land, Bldg. and M & E Amount $ 104,497 $ 1,750,000 Total $ 1,854,497
2014 CDBG Applicants' Workshop
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Total $ 1,854,497
December 11-12, 2013
Community Finance Division Dooly County Success!
Lasseter Implement Company Agriculture Equipment – EIP Road Improvement
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EIP GRANT – LOAN TO PRIVATE FOR PROFIT BUSINESS
2014 CDBG Applicants' Workshop
Community Finance Division
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
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Community Finance Division
Loan Structures
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DCA Grant to a Local Government
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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
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Community Finance Division
City of Homerville – Okefenokee Berry Center
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Recipient – City of Homerville
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Sub-Recipient – Okefenokee Berry Center
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Grant Amount - $ 500,000
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Project – 3.5 acres of land and 36,000 sq. ft. building acquisition
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Private Investment - $ 712,717
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Jobs – create 149, 100% L/M
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Community Finance Division
Source and Use – City of Homerville
Source Amount Use Amount EIP F and M Bank Owner’s Equity OneGeorgia Equity Clinch County RLF City of Homerville RLF Total
2014 CDBG Applicants' Workshop
$ 500,000 $ 2,210,574 $ 430,147 $ 350,000 $ 110,000 $ 220,000 Land/Building Acquisition Grant Administration Land/Building Acquisition Working Capital Building Acquisition Equipment Grant Administration Equipment Grant Consulting City Audit $3,820,721 Total
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$ 470,000 $ 30 ,000 $1,210,574 $1,000,000 $ 211,175 $ 197,972 $ 21,000 $ 350,000 $ 110,000 $ 220,000 $3,820,721
December 11-12, 2013
Community Finance Division City of Homerville Success – Okefenokee Berry Center
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REDEVELOPMENT FUND
2014 CDBG Applicants' Workshop
Community Finance Division
REDEVELOPMENT FUND
Categories
• • •
Eligible activities must meet one of the following criteria:
Prevent or eliminate slums and blight on an “
basis
”;
area
Prevent or eliminate slums and blight on an “
spot basis
”; or Be in an
urban renewal area
.
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Community Finance Division
REDEVELOPMENT FUND
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Eligible Activities: Projects must alleviate a “slum or blighted” condition
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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
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Community Finance Division
Samples of RDF Eligible Activities
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Acquisition and clearance of blighted property;
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Renovation and reuse of abandoned historical buildings;
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Commercial revitalization through façade improvements;
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Removal of environmental contaminants on property to enable it to be redeveloped for a specific use.
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Community Finance Division City of Nashville
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Recipient – City of Nashville
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Grant Amount - $162,617
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Project – Acquire property, building improvement of store front and stabilization of adjacent building on the main street in downtown Nashville.
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Community Finance Division Source and Use – City of Nashville RDF Source City of Nashville Nashville Better Hometown TOTAL
2014 CDBG Applicants' Workshop
Amount $162,617 $10,000 $5,000 $177,617 Use Building Acquisition Building Rehab Engineering Fees Grant admin.
Contingencies Building Acquisition Engineering Fees Building Acquisition Engineering Fees TOTAL
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Amount $22,500 $ 113,000 $6,060 $9,757 $11,300 $5,000 $5,000 $ 2,500 $2,500 $177,617
December 11-12, 2013
Community Finance Division
City of Nashville – Success!
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Community Finance Division
City of Nashville – Success!
The West Wall (RDF funds)
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The East Wall (City funds)
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2014 CDBG Applicants' Workshop
LOCAL REVOLVING LOAN FUND (RLF)
2014 CDBG Applicants' Workshop
Community Finance Division
Local Revolving Loan Funds
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EIP/RDF loan payments capitalize local RLF loan. The payments (including interest), and bank account interest retain federal identity.
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RLFs may be used for local CDBG eligible economic development needs.
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Opportunities available to partner with local banks to finance eligible activities (same as EIP) that create employment for L/M persons.
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50/40/10 Rule: Project funded with 50% RLF, 40% local bank, and 10% private funding.
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Community Finance Division
Local Revolving Loan Funds
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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.
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Community Finance Division
Program Manager Contacts:
Nyanza Duplessis – EIP Loan and RDF
(404) 679-0668 [email protected]
Brock Smith – EIP Infrastructure
(404) 679-1744 [email protected]
Michael Casper – Local RLF Coordinator
(404) 679-0594 [email protected]
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Community Finance Division
ED Representative Contacts:
Jennifer Fordham – Southeast Georgia
(912) 865-4212 [email protected]
Kelly Lane – South Georgia
(229) 896-4259 [email protected]
John VanBrunt – Northeast Georgia
(404) 327-6871 [email protected]
Tonya Mole – Southwest Georgia
(404) 852-6876 [email protected]
Patrick Vickers – Northwest Georgia
(404) 679-3151 [email protected]
Glenn Misner – Field Services Office Manager
(404) 679-3138 [email protected]
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