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Georgia Department of Community Affairs CDBG Economic Development PowerPoint PPT Presentation


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Georgia Department of Community Affairs CDBG Economic Development. Annual Competition and Set-Aside Programs CDBG, EIP, RDF and Capitalized RLF. Overview. Community Development Block Grant (CDBG) enacted by Congress as Title I of Housing and Community Development Act of 1974

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Georgia Department of Community Affairs CDBG Economic Development

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Georgia department of community affairs cdbg economic development

Georgia Department of Community AffairsCDBG Economic Development

Annual Competition and Set-Aside Programs

CDBG, EIP,RDF and Capitalized RLF


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.”

December 11-12, 2013


Overview cont

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.

December 11-12, 2013


Available funding

Available Funding

CDBG Funds from U.S. Housing and Urban Development (HUD)

December 11-12, 2013


Features of economic development programs

Features of Economic Development Programs

December 11-12, 2013


Differences of economic development programs

Differences of Economic Development Programs

  • Annual Competition (CDBG-ED)

  • One annual submission

  • Compete against rating and review process and other applications

  • Complete Application without exceptions

  • Processing time – 5 months

Set-Asides (EIP/RDF)

  • Anytime submission

  • Compete against rating and review process

  • Complete application with second change

  • Processing time – 45 days for complete application

December 11-12, 2013


Ineligible cdbg ed eip rdf activities

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)

December 11-12, 2013


Four routes to ed with cdbg

Four Routes to ED with CDBG

  • Annual Competition CDBG-ED application

  • Employment Incentive Program

  • Redevelopment Fund Program

  • Local Revolving Loan Fund (generated by CDBG-ED, EIP or RDF loans)

December 11-12, 2013


Annual competition and or eip grant public infrastructure

ANNUAL COMPETITION

and/or

EIP GRANT

PUBLIC INFRASTRUCTURE


Infrastructure grants eligible activities

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 “spray fields;”

  • Roads: access, turn lanes, accel/decel lanes, paving;

  • Stormwater drainage: ditches, pipes, culverts, ponds;

December 11-12, 2013


Infrastructure grants eligible activities1

Infrastructure Grants - Eligible Activities

  • Rail spurs: switches, track, track base, derails, stops; and

  • Other: wastewater pretreatment plant, gas lines (“red”).

    Public Facilities

  • Workforce development centers / Child care facilities.

December 11-12, 2013


Dooly county lasseter implement co agricultural equipment facility

Dooly County – Lasseter Implement Co Agricultural Equipment Facility

  • Recipient – Dooly County

  • Sub-Recipient – Lasseter Implement Company

    Agricultural Equipment Facility

  • Grant Amount - $500,000

  • Project – public road improvement

  • Private Investment - $1.8 Million

  • Jobs – Retain 22 100% L/M

December 11-12, 2013


Source and use dooly county

Source and Use – Dooly County

December 11-12, 2013


Dooly county success lasseter implement company agriculture equipment eip road improvement

Dooly County Success! Lasseter Implement Company Agriculture Equipment – EIP Road Improvement

December 11-12, 2013


Eip grant loan to private for profit business

EIP GRANT – LOAN TO PRIVATE FOR-PROFIT BUSINESS


Eip loans eligible activities

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

December 11-12, 2013


Loan structures

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

December 11-12, 2013


City of homerville okefenokee berry center

City of Homerville – Okefenokee Berry Center

  • Recipient – City of Homerville

  • Sub-Recipient – Okefenokee Berry Center

  • Grant Amount - $500,000

  • Project – 3.5 acres of land and 36,000 sq. ft. building acquisition

  • Private Investment - $712,717

  • Jobs – create 149, 100% L/M

December 11-12, 2013


Source and use city of homerville

Source and Use – City of Homerville

December 11-12, 2013


City of homerville success okefenokee berry center

City of Homerville Success – Okefenokee Berry Center

December 11-12, 2013


Georgia department of community affairs cdbg economic development

REDEVELOPMENT FUND


Redevelopment fund

REDEVELOPMENT FUND

Categories

Eligible activities must meet one of the following criteria:

  • Prevent or eliminate slums and blight on an “area basis”;

  • Prevent or eliminate slums and blight on an “spot basis”; or

  • Be in an urban renewal area.

December 11-12, 2013


Redevelopment fund1

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

December 11-12, 2013


Samples of rdf eligible activities

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.

December 11-12, 2013


City of nashville

City of Nashville

  • Recipient – City of Nashville

  • Grant Amount - $162,617

  • Project – Acquire property, building improvement of store front and stabilization of adjacent building on the main street in downtown Nashville.

December 11-12, 2013


Source and use city of nashville

Source and Use – City of Nashville

December 11-12, 2013


City of nashville success

City of Nashville – Success!

December 11-12, 2013


City of nashville success1

City of Nashville – Success!

The West Wall (RDF funds)

The East Wall (City funds)

December 11-12, 2013


Georgia department of community affairs cdbg economic development

LOCAL REVOLVING LOAN FUND (RLF)


Local revolving loan funds

Local Revolving Loan Funds

  • EIP/RDF loan payments capitalize local RLF loan. The payments (including interest), and bank account interest retain federal identity.

  • RLFs may be used for local CDBG eligible economic development needs.

  • Opportunities available to partner with local banks to finance eligible activities (same as EIP) that create employment for L/M persons.

  • 50/40/10 Rule: Project funded with 50% RLF, 40% local bank, and 10% private funding.

December 11-12, 2013


Local revolving loan funds1

Local Revolving Loan Funds

  • 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.

December 11-12, 2013


Program manager contacts

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]

December 11-12, 2013


Ed representative contacts

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) [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]

December 11-12, 2013


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