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

2. Brock Smith, Manager OED Gabe Morris, EIP Program Manger Staci Tillman, EIP Program Manager Rusty Haygood, Director Field Services
December 4, 2014

3. Core Values of DCA: There’s no wrong door!
Respect for bottom-up, locally driven solutions
Help in bringing the appropriate resources to the table
Creativity and flexibility
Responsiveness
Effectiveness and Efficiency
Team-Player attitude
There’s no wrong door!

4. Core Values of DCA: DCA focuses on bottom-up solutions
As many approaches to community development as there are communities
Local problems – Local solutions

5. Community Finance Division
Composed of 4 units:
Office of Community Development
Office of Economic Development
Office of Field Services
OneGeorgia Authority
Most of DCA’s financial assistance programs are in CDFD

6. The OED Finance Team Field Staff Program Managers
Project identification,
assessment & development
Monitoring
Program Managers
Review overall project
Ensure program objectives can be met
Craft award documents
Project oversight
Credit Staff
Credit analysis, underwriting
Financing options

7. Forms of CDFD Resource Delivery
Annual CDBG Competition & ITD
Merit-Based
Transparent
Local Governments
Threshold Based “Competition”
Employment Incentive Program
OneGeorgia Equity
DD RLF, Redevelopment, etc, etc.
Local Governments Authorities, Non-Profits, For-profits
Prospect Driven Incentive Grant/Loan
REBA
OneGeorgia EDGE
Life Sciences Loan
Authorities, For-Profits, Local Governments

8. Brock Smith Manager, Office of Economic Development

9. Organizational Processes
Potential Project
Initial Project Assessments (DCA) and Pre-Apps (OGA)
Market Successful Concepts
Local Community & Economic Development Needs
Application Development & Submission
Monitor & Audit
Manage Projects
Review & Underwrite Application
Award / Denial
Final Structure of Assistance

10. What exactly is this IPA or Pre-app?
Initial Project Assessment (DCA)
Pre-Application (OneGeorgia)
The Who, What, Why, When and Where of a Project
Determines and Preserves Eligibility of activities and costs
Enables Pre-Agreement Cost Approval (PACA) which is
especially important for federal funds
Ensures all available funding sources are considered
Provides an idea how competitive your project might be

11. Process - What happens after I submit an IPA or Pre-App?
Initial Project Assessment (DCA)/ Pre-Application (OGA)
PACA
Provides guidance for application development
Application Development and submission
Completeness letters help identify shortcomings in the application
Applications often miss something
Since most DCA ED and OGA funding is “threshold-based”, allows for Technical Assistance to get applications to funding range.
Completeness Letter

12. In other words, this is how it works:
Community contacts DCA Field Representative about a potential project. In some cases, various funding sources may be considered for funding on a large-scale project.
Ideally, DCA conducts an Initial Project Assessment or Pre-Application visit to assist a potential applicant in understanding process & programs.
DCA reviews IPA Pre-App and recommends eligible financing strategy in written response.
Community prepares and submits application for DCA and/or OGA review. If the application is incomplete, the applicant is notified in writing of items needed to allow for a competitive application.

13. How it works, continued:
Application reviewed based on rating and selection criteria.
Award or denial of application.
Grant/loan management processes start – technical assistance provided through site visits.
Monitors project at intervals to ensure compliance with Award.

14. Partnerships and Collaboration
Win - Win for everyone.
Everyone has expertise to bring to the table.
Also gets buy-in from various groups.
Not all partnerships are financial, but draw on expertise in areas such as scientific vetting from scholars in the University System or Georgia Technology Authority.

15. ANNUAL COMPETITION and/or EIP GRANT PUBLIC INFRASTRUCTURE

16. Gabe Morris Office of Economic Development

17. 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.”

18. 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.

19. 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)

20. 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 once complete application

21. CDBG Funds from U.S. Housing and Urban $36.2 million CDBG allocation
Available Funding
CDBG Funds from U.S. Housing and Urban
Development (HUD)
Annual Competition
$36.2 million CDBG allocation
EIP
$8 million set-aside
RDF
$1.5 million set-aside
Immediate Threat
$500,000 set-aside

22. 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

23. Economic Development Grants
Rating and Selection Criteria:
Demographics
Feasibility
Impact
Strategy

24. 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 (Piracy - There are Restrictions)

25. CDBG ED Grants - Eligible Activities
Public Infrastructure
Acquisition, construction and rehabilitation of:
Water: lines, tanks, wells, treatment plants;
Sewer: gravity lines, force mains, pump stations, treatment plants, land application “spray fields;”
Roads: access, turn lanes, accel/decel lanes, paving;
Stormwater drainage: ditches, pipes, culverts, ponds;

26. CDBG ED Grants - Eligible Activities (continued)
Rail spurs: switches (excluding mainline switch), track, track base, derails, stops; and
Other: wastewater pretreatment plant.
Public Facilities
Workforce development centers.

27. EIP Infrastructure Grants
Infrastructure Fund Capacity Analysis (IFCA)
Examine financial capacity of local government
Calculate operating and coverage ratios
Revolving Loan Fund Capacity

28. CDBG ED Grants Areas of Concern: 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; and
Economic Development and EIP Supplemental Information

29. CDBG ED Grants Areas of Concern:
DCA-2: Proposed Accomplishments (Funds Leveraged)
DCA-4: Description of Needs to be Addressed:
Needs for improvement of existing conditions
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 and grant
administration by ED activity codes and other public /
private funding
Economic Development & Construction Agreement (ED&C)

30. Walton County – General Mill’s Southeast Distribution Facility
Recipient – Walton County
Sub-Recipient – General Mill’s southeast distribution facility
Grant Amount - $500,000
Project – public rail spur
Private Investment - $42 Million
Jobs – Create 112, 100% L/M

31. Source and Use – Walton County
Amount
Use
EIP
$ ,000
Rail spur construction
OGA EDGE
M&E
GDOT
$ ,000
Roadway construction
EDA
$ 1,619,000
Water & sewer construction
County
$ ,000
Rail construct, Eng, Admin
$ ,772
Road construct, Eng, Acq
DAWC
$ ,500
Legal, grant writing, admin
City
$ ,404
W&S, eng, apps prep
Gen Mills
$42,009,470
Land, building, M&E, F&F
$ 42,009,470
Total
$ 46,718,096

32. Special Conditions – Inherent to Rail Spur Projects
Special Condition #1: Bid documents, Bid specifications, signed contract and Bid Bonds.
Documentation certifying Rail Company has approved the final plans for the design for the rail spur.
“Intergovernmental Agreement” between local government and Development Authority.
“Siding” / “Side Track Agreement” – Title varies according to Railroad Company.
“Industrial Track Agreement” - Title varies according to Railroad Company.

33. Walton County Success! - General Mills’ Southeast Distribution Facility EIP Rail Spur

34. STACI TILLMAN Office of Economic Development

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

36. EIP Loans – Eligible Activities
Fixed-Assets The Direct Loan EIP program is designed to assist small to medium- sized businesses by lending against fixed-assets.
Eligible Activities include:
Acquisition of machinery and equipment, including delivery and installation, limited to items directly related to the operation of the business.
Acquisition of commercial or industrial land.
Improvements to real property including construction, rehabilitation, or installation of commercial or industrial buildings or structures.
Loan proceeds may not be used for: refinancing existing debts; working capital; real estate speculation; capacity building; general conduct of business; business relocations; or distribution or payment to the owners, partners, shareholders, or beneficiaries of the applicant or members of their families.
Projects that do not need funding will not receive EIP Direct Loan consideration.
EIP Loan repayments must establish or capitalize a local Revolving Loan Fund (RLF) to be used in other eligible projects.

37. Loan Structure & Disbursement
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
Loan Disbursement
All funds for the project will be governed by a disbursement agreement included in the EIP loan agreement among all participating lenders and the Borrower.
The Borrower’s other public and/or private financing will be disbursed on a pro-rata basis with the EIP loan proceeds.

38. 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

39. Source and Use – City of Homerville
Amount
Use
EIP
$ ,000
Land/Building Acquisition
$ ,000
Grant Administration
$ ,000
F and M Bank
$ 2,210,574
$1,210,574
Working Capital
$1,000,000
Owner’s Equity
$ ,147
Building Acquisition
$ ,175
Equipment
$ ,972
$ ,000
OneGeorgia Equity
$ ,000
$ 350,000
Clinch County RLF
$ ,000
Grant Consulting
City of Homerville RLF
$ ,000
City Audit
$ 220,000
Total
$3,820,721
December 11-12, 2013

40. City of Homerville Success – Okefenokee Berry Center

41. REDEVELOPMENT FUND

42. 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.

43. 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

44. 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.

45. John VanBrunt Field Representative Office of Economic Development

46. City of Braselton Recipient : City of Braselton
Grant Amount : $500,000

47. City of Braselton

48. City of Braselton

49. City of Braselton [Before]

50. City of Braselton: Source and Use
Amount
Use
RDF
$500,000
Renovations
$425,000
Architectural Services
$ 50,000
Grant admin.
$25,000
City of Braselton
$985,000
Building (donated)
$835,000
$137,000
$13,000
Companies
$322,000
Value of business (existing)
TOTAL
$1,807,000

51. City of Braselton: Progress

52. City of Braselton

53. Triumph

54. Funding Opportunities for Downtown Projects
Downtown Development Revolving Loan Fund
Georgia Cities Foundation
CDBG
Redevelopment Fund
Eligible Applicants
Cities < 100,000 population
Counties < 100,000 population
Cities No population limit
Cities
Counties
Program Focus
Assist communities with revitalizing downtowns by providing funding for quality downtown projects
Projects that primarily benefit low/moderate income persons
‘Elimination of slum and blight’
Funding Limit
$250,000/project
$500,000/project

55. LOCAL REVOLVING LOAN FUND (RLF)

56. Local Revolving Loan Funds
EIP/RDF loan repayments capitalize local RLF loan. The repayments (including interest), and bank account interest retain federal identity. This is considered program income.
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.

57. Local Revolving Loan Funds
An estimated 70 active RLF’s throughout Georgia, with:
$32 million in RLF assets
$13 million in cash
$19 million in loan receivables
$5+ million cash returned to DCA over past 6+ 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.

58. Rusty Haygood Director, Office of Field Services

59. ED Representative Contacts:
Rusty Haygood – Field Services Office Manager & Northeast Georgia
(404)
Jennifer Fordham – Southeast Georgia
(912)
Kelly Lane – South Georgia
(229)
Tonya Mole – Southwest Georgia
(404)
Patrick Vickers – Northwest Georgia
(404)
John VanBrunt – ????
(706)

61. Program Manager Contacts:
Brock Smith – Manager, Office of Economic Development
(404)
Staci Tillman – EIP Loan and RDF
(404)
Gabe Morris – EIP Infrastructure
(404)
Rusty Haygood – Director, Office of Field Services
(404)