Georgia Department of Community Affairs CDBG Economic Development Redevelopment Fund Program (RDF) Staci Tillman December 3, 2015

Special Redevelopment Fund Program Set-Aside Activities that are eligible under the Housing and Community Development Act of 1974, as amended, and the HUD implementing regulations applicable to the State CDBG Program are eligible for funding under this special redevelopment set-aside.

Available Funding Annual Competition $36.5 million CDBG allocation EIP$8.0 million set-aside RDF$1.5 million set-aside Immediate Threat $500,000 set-aside CDBG Funds from U.S. Housing and Urban Development (HUD) December 3, 2015

Funding Opportunities for Downtown Proje cts Downtown Development Revolving Loan Fund Georgia Cities Foundation CDBGRedevelopment Fund Eligible Applicants Cities < 100,000 population Counties < 100,000 population Cities No population limit Cities Counties 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

Overview of the RDF Program Encourage communities with blighted properties to focus on long-term community development. Projects must demonstrate the following:  Resolution of Spot/Area Basis Blight;  Long-term planning and development efforts of the community;  Significant impact on the overall project;  Strong community commitment;  Ready to Proceed; and  Completed within 24 months.

National Objective- Slum and Blight Elimination There are two categories that can be used to qualify activities under this National Objective:  Prevent or eliminate slums and blight on an area basis; or  Prevent or eliminate slums and blight on an spot basis.

Elimination of Slum and Blight “Spot Basis” vs “Area Basis”  Spot Basis  Spot basis activities are limited to the extent necessary to eliminate specific conditions detrimental to the public health and safety  Area Basis  Area basis activities are delineated by a unit of local government, meets a definition of a blighted, deteriorated, deteriorating, or slum area under State of Local law.

Spot Basis Activities that eliminate conditions of blight or physical decay on a spot basis and are not located in a slum or blighted area.  Activities under this category are limited to :  Acquisition  Clearance  Relocation  Historic preservation  Building rehabilitation activities* * Rehabilitation is limited to the extent necessary to eliminate a specific condition detrimental to public health and safety.

Area Basis Activities that aid in the prevention or elimination of slums or blight in a designated area.  The focus of activities is a change in the environment of a deteriorating area.  The area in which the activity occurs must be designated as slum or blighted.  Documentation must be maintained by the municipality on the boundaries of the area and the conditions that qualified the area at the time of its designation.

Area Basis  Examples of area basis activities include:  Rehabilitation of substandard housing up to standard condition;  Infrastructure improvements; and  Economic development assistance in the form of a low-interest loan to a business as an inducement to locate a business in a redeveloping blighted area.

Ineligible CDBG-RDF Activities Example activities that do not meet HUD’s National Objectives:  Acquisition of furnishings, movable equipment, machinery, land write-downs  Working Capital  Refinancing  Speculative Projects  Capacity Building  Constructing of buildings for the general conduct of government  Projects that do not meet federal guidelines  Using federal funds to relocate businesses

Basic Program Parameters  Projects must alleviate a “slum or blighted” condition  Grant - Public infrastructure in support of business/industry  Direct Loan –Assistance to “for-profit” entities” Loan repayments may be placed in an existing local Revolving Loan Fund (RLF) or establish a new fund. Any job created or retained must benefit or be made available to low- and moderate-income persons.

Minimum Threshold Requirements  For projects that will be used for direct housing, the benefit to low- to moderate income (LMI) persons must be 100 %.  For public facility activities benefiting residents in a particular service area, at least 70 % of the people benefiting from the use of the facility must be LMI persons.  For projects that will create or retain permanent jobs, at least 51 % of the benefit must be made available to LMI persons.

Successful Spot Basis Project Former Chero Cola Warehouse 204 N. West Street, Greensboro

Building Interior-Before Renovation

Greensboro -Lake Country Brewing, LLC Microbrewery Building Floorplan

Greensboro RDF Award  RDF Grant to the City of Greensboro to acquire and stabilize the former Chero Cola warehouse building, a blighted structure located in historic downtown Greensboro to be repurposed as a new microbrewery.  Owner and operator: Lake Country Brewing, LLC.  Award Amount: $500,000  Total Project Cost $2,110,917

City of Greensboro: Source and Use SourceAmountUseAmount RDF$500,000Building Acquisition$150,000 Building Stabilization$ 270,000 Architectural/Eng. Fees$50,000 Grant Administration$30,000 City of Greensboro$19,917Utility Connection Fees, etc.$19,917 SBA Loan$1,385,000Building Stabilization/Rehab.$761,732 Equipment/Inventory$520,095 Contingencies$103,173 Owner Equity$206,000 Equipment and Bank Financing Fees $206,000 TOTAL$2,110,917TOTAL$2,110,917

Successful Area Basis Project City of Madison – Canaan Corner Store

City of Madison RDF Award  RDF Grant to the City of Madison for clearance, site development and new construction of a blighted structure in the Downtown Redevelopment Area to be used as the new Canaan Corner Store  Grant Amount $100,912; TPC $261,824  City will invest $92,000 and create 2 jobs  Private entity will invest $46,000 for tenant build- out, inventory and equipment

Canaan Corner Store Concept Plan

Madison RDF Source and Use SourceUseAmount RDFClearance, Construction$100,912 CityAcquisition/Grant Admin.$ 92,139 DDA Construction, Legal/ Eng.$ 22,427 Private EntityInventory & Equipment$ 46,346 Total Project Cost $261,824

Canaan Corner Store

Things to Remember  Qualify your project as “Spot Basis” or “Area Basis”  Verify that your activities are eligible  Document need, costs and support of organizations, banks & businesses  Debt – credit underwriting and terms

Community Services Representatives Region 1 Patrick Vickers Region 2 Kathy Papa Region 3 John VanBrunt Region 4 Corinne Thornton (404) (770) (706) (706) Region 5 Beth Eavenson Region 6 Tonya Mole Region 7 Tina Hutcheson Region 8 Jo Childers (404) (404) (478) (404) Corinne Thornton Office Director (706) Saralyn Stafford Division Director (404) Region 9 Lynn Ashcraft Region 10 Gina Webb Region 11 Kelly Lane Region 12 Jennifer Fordham (478) (404) (404) (912)

RDF and RLF Program Support Contacts Staci Tillman – Redevelopment Program Manager (404) Michael Casper – Local RLF Coordinator (404) Brock Smith – Manager, Office of Economic Development (404)