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.”
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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
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Available Funding
CDBG Funds from U.S. Housing and
Urban Development (HUD)
Annual
Competition
$30 million CDBG allocation
EIP
$7 million set-aside
RDF
$1.5 million set-aside
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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
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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
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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)
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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.
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The CDFD Finance Team
Field Staff
Project identification,
assessment and
development
Compliance monitoring
Credit Unit
Credit analysis,
underwriting
Financing options
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Program Manager
Review overall project
Ensure program
objectives can be met
Craft award documents
Project oversight
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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 *
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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)
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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
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City of Folkston – Cornell Companies,
Inc. d.b.a. D. Ray James State Prison
• Recipient – City of Folkston
• Sub-Recipient – Cornell
Companies, Inc. d.b.a. D. Ray
James State Prison
• Grant Amount - $500,000
• Project – sewer system
• Private Investment - $43 Million
• Jobs – 51 (317 existing jobs)
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Source and Use – City of Folkston
Source
Amount
EIP
$
500,000
OGA Equity
$
500,000
City (GEFA)
$
664,430
Private
$ 34,000,000
Total
$35,664,430
Use
Sewer system improvements
Grant Administration
Amount
$
$
470,000
30,000
$
500,000
Sewer system improvements
$
1,926,380
Building expansion, M&E,
F&F
$ 34,000,000
Sewer system improvements
$35,664,430
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Infrastructure Grants
Areas of Concern: TO BE ADDRESSED MORE FULLY IN ADVANCED SESSION
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
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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
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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
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City of St. Marys – Gateway Behavioral
Health Services
•Recipient – City of St. Marys
•Sub-Recipient – Gateway
Behavioral Health Services
•Grant Amount - $500,000
•Project – Building
Construction/Expansion
•Private Investment - $645,6522
•Jobs – 50
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Source and Use – City of St. Marys
Source
Amount
Use
EIP
$
500,000
Bldg Const/Expansion
Grant Administration
Bldg Const/Expansion
M&E
Working Capital
M&E
Private
$
375,652
Meridian
$
270,000
Total
$1,114,652 Total
Amount
$
$
$
$
$
$
470,000
30,000
26,784
201,038
147,830
270,000
$1,114,652
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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
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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
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City of Elberton
•Recipient – City of Elberton
•Sub-Recipient – Elberton
DDA
•Grant Amount - $500,000
•Project – Rehabilitate
blighted historic downtown
building
•Private Investment - $151,946
•Jobs – 12
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Source and Use – City of Elberton
Source
Amount
Use
Amount
Redevelopment
$ 500,000
DDRLF
EDDA
$ 192,492
$ 151,946
Rehabilitation
Administration
Rehabilitation
Equity
$ 480,000
$ 20,000
$ 192,492
$ 151,946
Total
$844,438
Total
$844,438
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City of Elberton
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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
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Local Revolving Loan Funds
• Administered by local government with DCA’s
oversight and guidance (as needed)
• Currently 66 RLF’s throughout Georgia, with:
▪ $33 million in RLF assets
▪ $12 million in cash
▪ $21 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
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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
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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]
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ED Representative Contacts:
Jennifer Fordham – Southeast Georgia
(912) 865-4212 [email protected]
David Shellhorse – Northeast Georgia
(706) 955-7505 [email protected]
Ron Thompson – Southwest Georgia
(478) 934-3845 [email protected]
Vacant – Northwest Georgia
Glenn Misner – Field Services Office Manager
(404) 679-3138 [email protected]
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