Community Development Block Grant (CDBG) Steve Willobee-CATeam

Brief History of CDBG Began in 1974, Oldest HUD program Statutory formula which takes into account population, poverty, incidence of overcrowded housing, and age of housing. Michigan began to administer the States Allocation in 1981 Sometimes referred to as the Small Cities Program Michigan’s Program Statement is annually approved by HUD

National Objectives National Policy Objectives –Benefits low and moderate income people –Elimination of Slum and Blight –Imminent Threat/Urgent Need

Eligible and Ineligible Applicants Eligible Applicants –Small cities, townships, and villages less than 50,000 in population, and non-urban counties generally are eligible to apply for grants under the Michigan CDBG Program. –Eligible counties can apply on behalf of entitlement communities. Ineligible Applicants –Entitlement Counties Genesee County (Except Flushing) Kent County (Except Cedar Springs) Macomb County Oakland County Wayne County Washtenaw (Parts of)

CDBG Programs Economic Development and Downtown Infrastructure Economic Development Planning Discretionary Economic Development Funds

Economic Development and Downtown Infrastructure Selection Criteria –Private Investment Ratio of 2:1 or greater –Cost Per Job: $10,000 or less –Financially Viability –Job Creation/Retention: 10 or more jobs –Local Contribution: 10% or greater Local Contribution for entitlement communities: 50% or greater

Economic Development and Downtown Infrastructure cont. Public Infrastructure Improvements necessary for the location, expansion, and/or retention of a specific for-profit firm(s): Manufacturing Point-of-destination tourism Headquarter operations Traditional downtown projects.

Economic Development and Downtown Infrastructure cont. Project Activities Public Water & Wastewater Treatment Sanitary Sewer Lines and related facilities Road Improvements Streetscape Improvements Public Utilities All Other Infrastructure Needs –Reviewed on case-by-case basis

Planning Grants Available to help communities accomplish project specific, public planning, and design work –Includes development and plans for downtown areas leading to economic development implementation projects.

Planning Grants cont. Guidelines –Potential future job creation –Primary beneficiaries are low/mod individuals –Impact on Community –Date of last Planning Oriented Study –Maximum Grant Amount: $50,000

Discretionary Economic Development Grants Innovative Program Approaches Special and/or Unique Needs Examples: –Brownfield Site Redevelopment –Downtown Development –Core Communities Initiatives

Discretionary Economic Development Grants cont. Selection Guidelines, project periods, and grant amounts will be determined for each specific project proposal All funding considerations will be made in compliance with federal CDBG regulations and requirements

Site Visit Meeting with local officials and the Developer/Property owners Evaluate project for selection criteria NOI is not required at this stage Site tour of project area Project Timeframe: 24 months maximum Team Approach (MSHDA, SHPO, MDOT, MDEQ, etc.)

Case Study: City of Buchanan Downtown Revitalization Project –Streetscape Activities Days Avenue: Street reconstruction & culvert opening Front Street: Two Public Walkways were reconstructed. –Job Creation Commitment from 9 companies 38 jobs ($18,421 per job) –$700,000 CDBG Streetscape –$750,000 Private Investment-Rehab of Vacant Structure into Coffee Shop and Residential Units –$960,650 Local Contribution-Streetscape

Front St. Streetscape Improvements

Days Avenue Culvert: Before

Days Avenue Culvert: In Progress

Days Avenue Culvert: After

Conclusion The CDBG Program considers proposals on a continuous basis and projects will be considered at any time during the year This includes the Downtown Gateways Program Potentional Projects will be reviewed by the CATeam or Account Managers

Questions Please address any questions or potential projects to: –Kara Wood-Southwest Michigan (517) –Laura Bower-Upper Peninsula & Northwestern Lower Peninsula (517) –Jill Babcock-Southeast Michigan (517) –Kent Kukuk: Thumb Area & Northeastern Lower Peninsula Starts on November 8 th –Steve Willobee-Mid Michigan (517) –Bob Trezise-Managing Director (517)