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

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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

EIP and 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
available funding
Available Funding

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

who can apply
Who Can Apply?

Eligible:

Non-Entitlement Cities & Counties

Ineligible:

Entitlement (Metro/Urban) Cities & Counties

ineligible cdbg eip rdf activities
Ineligible CDBG/EIP/RDF Activities
  • Working Capital
  • Refinancing
  • Speculative Projects
  • General Conduct of Government
  • Project Not Meeting Federal Guidelines
getting started eip rdf
Getting Started – EIP & RDF
  • Have an Idea? Call DCA early!
  • Initial Project Assessment – ED 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

oed project development

Potential Project

Application Development & Submission

Initial Project Assessment

OED –Project Development

Review & Underwrite Application

Market Successful Concepts

AwardFinal Structure of Deal

Monitor & Audit

Manage Projects

Denial

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

four routes to ed with cdbg
Four Routes to ED with CDBG
  • Annual Competition ED application
  • Employment Incentive Program
  • Redevelopment Fund Program
  • Local Revolving Loan Fund (generated by EIP/RDF loans)
eip grant public infrastructure
EIP GRANT - PUBLIC

INFRASTRUCTURE

eip infrastructure grants
EIP Infrastructure Grants

* $7,000,000 annual CDBG set-aside

* $500,000 maximum grant; up to 6% for admin costs/contracts

* Local governments may apply for funds at any time

* Projects must create/retain jobs primarily for low- and

moderate-income persons

* Eligible activities include

- Public Infrastructure (water/sewer lines & facilities; roads; rail spurs, and other “public” infrastructure)

- Public Facility (workforce development centers, child care, etc)

* Federal restrictions on using funds to relocate businesses

eip infrastructure grants1
EIP Infrastructure Grants

Key Factors to Remember:

EIP Application Supplements

PER or ADR

Commitment Letter(s)

Letter of Credit or Surety Bond

Source-and-Use Statement

Rating and Selection Criteria

Demographics, Feasibility, Impact & Strategy

Infrastructure Capacity Analysis (IFCA)

Economic Development & Construction Agreement

bibb county bass pro outdoor world llc
Bibb County - Bass Pro Outdoor World, LLC
  • Recipient - Bibb County
  • Sub-Recipient – Bass Pro Outdoor World, LLC
  • Grant Amount - $500,000
  • Project – water and sewer
  • Private Investment - $43 Million
  • Jobs – 200
eip loans
EIP Loans

* $7,000,000 annual CDBG set-aside

* $500,000 maximum grant; up to 6% for admin costs/contracts

* Local governments may apply for funds at any time

* Projects must create/retain jobs primarily for low- and

moderate-income persons

* Eligible activities include

- Loans to for-profit entities for purchase of fixed assets

* Federal restrictions on using funds to relocate businesses

* Loan repayments may 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
atkinson county first string space inc
Atkinson County – First String Space, Inc.
  • Recipient – Atkinson County
  • Sub-Recipient –First String Space, Inc.
  • Grant Amount - $500,000
  • Project – Building Acquisition
  • Private Investment - $1,391,642
  • Jobs – 50
redevelopment fund1
REDEVELOPMENT FUND
  • $1,500,000 Annual set-aside
  • $500,000 Maximum grant (up to 6% for Admin)
  • May apply at any time
  • Projects must alleviate a “slum or blighted” condition
  • Any new jobs must be available to low- and moderate-income persons
  • Eligible Activities:
    • Public infrastructure, public facilities
    • Loans to acquire and alleviate blighted buildings/facilities
    • Loan/lease payments may be capitalized into a local RLF
city of rebecca
City of Rebecca
  • Recipient – City of Rebecca
  • Sub-Recipient – Crawford Brothers, Inc.
  • Grant Amount - $210,000
  • Project – Renovate blighted gas & convenience store
  • Private Investment - $210,000
  • Jobs – 10
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 61 RLF’s throughout Georgia, with:
    • $31 million in RLF assets
    • $10 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
sample rlf projects
Sample RLF Projects
  • Retail
  • Daycare
  • Manufacturing
  • Telecommunications
  • Workforce Development Centers
  • Public Infrastructure
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 - EIP Infrastructure & Public Facilities

(404) 679-1589 ayarn@dca.state.ga.us

Jonathan Corso - EIP Loans

(404) 327-7909 jcorso@dca.state.ga.us

Joanie Perry - RDF Program

(404) 679-3173 jperry@dca.state.ga.us

Michael Casper – Local RLF Coordinator

(404) 679-0594 mcasper@dca.state.ga.us

ed representative contacts
ED Representative Contacts:

Jennifer Fordham – Southeast Georgia

(912) 865-4212 jfordham@dca.state.ga.us

David Shellhorse – Northeast Georgia

(706) 955-7505 dshellho@dca.state.ga.us

Ron Thompson – Southwest Georgia

(478) 934-3845 rthompso@dca.state.ga.us

Glenn Misner – Field Services Office Manager (NWGA)

(404) 679-3138 gmisner@dca.state.ga.us