Downtown Development Districts Visit us at www.destatehousing.com September 26, 2016 Delaware State Housing Authority 18 The Green Dover, DE 19901 (302) 739-4263 ■ (888) 363-8808 Visit us at www.destatehousing.com

Downtown Development District (DDD) Program Created to leverage state resources in designated downtown areas to: Spur private investment Improve commercial vitality Build a stable community of long-term residents

Downtown Development District (DDD) Program Households are getting smaller Redevelopment of downtown areas challenging Advantages: Walkable Architecturally significant buildings Downtown living attractive to younger Delawareans

Downtown Development District (DDD) Program 3 districts designated in January 2015 5 added in August 2016 Incentives offered by districts: Expedited permitting Fee waivers Tax abatements Façade improvement loans and grants

Program Requirements Threshold requirements: Location within a designated DDD Conformity with the DDD plan Site control at time of application for Large Projects Minimum investment of $15,000 Deducted from Large Project qualified investment Small Projects include in qualified investment Large Projects must submit, with final disbursement request, a Cost Attestation prepared by a CPA No payments made until project is placed in service We have $1 million in this set-aside and while there are several projects in the pipeline, there is still plenty of funds left here to support small mom and pop efforts. Large Projects process is a little more involved: Requests are due within 45 days of final project being placed in service Includes an independent CPA Attestation of investments DSHA will conduct compliance review of the final project – including site visit - to ensure final project conforms to project scope outlined in Reservation Agreement Grant funds are disbursed within 60 days

Two Set-Asides Small Project Set-Aside Qualified Real Property Investment less than $250,000 per building/ facility Two ways to apply: May receive a reservation good for 6 months if building permit issued May submit an application after project is complete Applications submitted on a rolling basis, as long as funds remain available $1 million set-aside for small projects Large Projects process is a little more involved: Requests are due within 45 days of final project being placed in service Includes an independent CPA Attestation of investments DSHA will conduct compliance review of the final project – including site visit - to ensure final project conforms to project scope outlined in Reservation Agreement Grant funds are disbursed within 60 days

Two Set-Asides Large Project Set-Aside For projects with total investment over $265,000 Allocated through a Reservation process prior to beginning project Assures investors their projects will be funded once successfully completed Available funding split equally between District Pools and a General Pool Each District guaranteed at least one eligible Large Project awarded from the District Pool each funding round

DDD Awards Number of Projects DDD Reservation Award Total Investment Large Project (FY2015) 13 $5.6 M $114.5 M Large Project (FY2016) 22 $8.5 M $176.5 M Small Projects 8 $236,591 $1.2 M Total 43 $14.3 M $292.2 M

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Susan Eliason, Director of Housing Development Delaware State Housing Authority 18 The Green Dover, Delaware 19901 302.739.4263 888.363.8808 SusanE@destatehousing.com