Georgia Department of Community Affairs CDBG Economic Development

1. Georgia Department of Community AffairsCDBG Economic Development Annual Competition and Set-Aside Programs EIP and RDF and Capitalized RLF

2. GENERAL OVERVIEW

3. 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.”

4. 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

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

6. Features of Economic Development Programs

7. Who Can Apply? Eligible: Non-Entitlement Cities & Counties Ineligible: Entitlement (Metro/Urban) Cities & Counties

8. Ineligible CDBG/EIP/RDF Activities • Working Capital • Refinancing • Speculative Projects • General Conduct of Government • Project Not Meeting Federal Guidelines

9. GETTING STARTED

10. 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.

11. 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

12. 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

13. 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

14. 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)

15. SPECIFIC PROGRAMS

16. EIP GRANT - PUBLIC INFRASTRUCTURE

17. 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

18. 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

19. 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

20. Source and Use - Bibb County

21. EIP GRANT – LOAN TO PRIVATE FOR-PROFIT BUSINESS

22. 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

23. 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

24. 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

25. Source and Use – Atkinson County

26. REDEVELOPMENT FUND

27. 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

28. 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

29. Source and Use – City of Rebecca

30. City of Rebecca - Cranky’s

31. LOCAL REVOLVING LOAN FUND (RLF)

32. 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

33. 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

34. Sample RLF Projects • Retail • Daycare • Manufacturing • Telecommunications • Workforce Development Centers • Public Infrastructure

35. THINGS TO REMEMBER

36. Things to Remember • Describe your project and jobs created/retained • Document need, costs and support of banks & businesses • Debt – credit underwriting and terms

37. 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

38. 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