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Georgia Department of Community Affairs CDBG Economic Development . Annual Competition and Set-Aside Programs CDBG, EIP, RDF and Capitalized RLF. GENERAL OVERVIEW. Overview.

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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.”

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
available funding
Available Funding

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

differences of economic development programs
Differences of Economic Development Programs

Set-Asides (EIP/RDF)

  • Anytime submission
  • Compete against rating and review process
  • Complete application with second change
  • Processing time – 45 days for complete application

Annual Competition (CDBG-ED)

  • One annual submission
  • Compete against rating and review process and other applications
  • Complete Application without exceptions
  • Processing time – 5 months
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)
getting started annual competition eip rdf
Getting Started – Annual Competition, EIP & RDF
  • Have an Idea? Call DCA early!
  • PACA Request (CDBG-ED) or Initial Project Assessment (EIP/RDF) – Field Services representative will visit.
  • PACA – pre-agreement cost approval does not guarantee funding.
  • Application – Reviewed by panel.
the cdfd finance team
TheCDFD Finance Team

Field Staff

Project identification, assessment and development

Compliance monitoring

Program Manager

Review overall project

Ensure program objectives can be met

Craft award documents

Project oversight

Credit Unit

Credit analysis, underwriting

Financing options

application process
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 *

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)
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 “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

oconee county zoom bait company inc st mary s healthcare systems inc
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)
oconee county
Oconee County

Zoom Bait Company, Inc.

St. Mary’s Healthcare Systems Inc.

infrastructure grants
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

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

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
city of quitman crown health care laundry services inc
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
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
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
city of boston
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
local revolving loan funds
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
local revolving loan funds1
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
things to remember
THINGS TO

REMEMBER

things to remember1
Things to Remember
  • Describe your project and jobs created/retained
  • Document need, costs and support of banks & businesses
  • Debt – credit underwriting and terms
program manager contacts
Program Manager Contacts:

Andy Yarn - Employment Incentive Program

(404) 679-1589 andy.yarn@dca.ga.gov

Nyanza Duplessis – EIP Loan and RDF Program

(404) 679-0668 nyanza.duplessis@dca.ga.gov

Michael Casper – Local RLF Coordinator

(404) 679-0594 michael.casper@dca.ga.gov

John Kingery – Credit Manager

(404) 679-1586 john.kingery@dca.ga.gov

ed representative contacts
ED Representative Contacts:

Jennifer Fordham – Southeast Georgia

(912) 865-4212 jennifer.fordham@dca.ga.gov

Kelly Lane – South Georgia

(229) 896-4259 kelly.lane@dca.ga.gov

David Shellhorse – Northeast Georgia

(706) 955-7505 david.shellhorse@dca.ga.gov

Ron Thompson – Southwest Georgia

(478) 934-3845 ron.thompson@dca.ga.gov

Patrick Vickers – Northwest Georgia

(404) 679-3151 patrick.vickers@dca.ga.gov

Glenn Misner – Field Services Office Manager

(404) 679-3138 glenn.misner@dca.ga.gov