Download presentation
Presentation is loading. Please wait.
Published byBartholomew Cross Modified over 7 years ago
1
COSCDA 2016 Annual Training Conference CDBG For Economic Development
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 COSCDA 2016 Annual Training Conference CDBG For Economic Development
2
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Presenter Andrea K. Smith, Development Program Manager 59 State House Station Augusta ME (207)
3
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 The Community Development Block Grant Program CBDG An Overview from Maine
4
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Community-based Program accessed through: “Units of General Local Government” Administered by: Department of Economic & Community Development Office of Community Development 111 Sewall Street, 59 State House Station Augusta, Maine (207)
5
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 The CDBG Program invests approximately $10,000,000 into Maine communities annually Infrastructure Economic Development (Jobs) Public Facilities Housing Workforce Training Technical Assistance Downtowns
6
Annual Program Development
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Annual Program Development Program year January-December Each Fall a draft program statement for following year is developed Public Input through Rulemaking and public hearings Program Statement adopted Application development and distribution Funds available mid-year
7
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Programs We Offer Economic Development Economic Development Program Micro-Enterprise Grant Assistance Workforce Development Community Development Public Facilities Public Infrastructure Housing Downtown Revitalization Urgent Need
8
How do we get these funds? What can they be used for?
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 How do we get these funds? What can they be used for? Only “Units of General Local Government” may apply for funds Application process is competitive May be used for a broad array of economic development activities – depending on program requirements
9
Meeting Benefit in Economic Development
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Meeting Benefit in Economic Development Low to Moderate Income (LMI) 51% of jobs created or retained (Economic Development) must be LMI Business owner must be LMI or jobs created must be LMI 51% of individuals trained (Workforce Development) must be documented as LMI Minimum of 70% of CDBG funds must benefit LMI persons
10
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Ways to meet benefit: Repair/construct infrastructure in a 51% neighborhood or town Benefit one of the groups that are by definition “low to moderate income”: elderly homeless people w/ disabilities, etc. Allow only low and moderate income people to benefit from your program Eliminate slum/blight Urgent need Create or retain jobs for low to moderate income persons or provide workforce training where at least 51% of the jobs created or retained or trained are taken/held by persons of low to moderate income as defined by HUD* * Economic Development, Micro-Enterprise Assistance and Workforce Training Programs
11
Meeting Benefit via Job Retention:
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Meeting Benefit via Job Retention: “for an activity that retains jobs, the unit of general local government must document that the jobs would actually be lost without CDBG assistance …. signed statement from company newspaper accounts of possible closure EDP survey of each job being retained to confirm that 51% are LMI Documentation of job retention criteria must be submitted with EDP Letter of Intent *An applicant applying for assistance based on job retention must attach documentation, with submission of Letter Intent, such as public announcement of lay-offs, public announcement of imminent closure, financial records, etc. of impending job loss without CDBG Program assistance
12
Community Development Block Grant (CDBG)
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Community Development Block Grant (CDBG) What can you do with these funds?
13
Economic Development Program
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Economic Development Program
14
Economic Development Program
How is The CDBG Economic Development Process Working in Maine? From 1998 – 2016 the CDBG program has invested over $60,000,000 in support of Maine businesses. We have created or retained over 7,500 jobs for Mainers
15
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Economic Development Group 1 – Maximum Award $1,000,000 Grants to municipalities associated with public infrastructure owned by the municipality or public or private utility and be in support of an identified business Eligible costs: Acquisition, relocation, demolition, clearance, construction, reconstruction, etc. association with public infrastructure projects such as water and sewer improvements, drainage improvements, etc.
16
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Economic Development Group 2 – Maximum Award $1,000,000 Grants to municipalities for direct business support Eligible costs: Capital and non-capital equipment, working capital, job training, land and site improvements. Acquisition is not an allowable activity under this group. CDBG funds cannot be used to refinance existing debt
17
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 EDP – Meeting Benefit Benefit met through job creation or retention of jobs and at least 51% must be taken/held by persons of low and moderate income as defined by HUD. Jobs must be new (creation) and located in community applying for funds. Transfer positions cannot be counted toward job creation or job retention. Permanent, full-time equivalent jobs ($30,000 per job) where at least 51% of jobs created must be taken/held by persons of low and moderate income as defined by HUD.
18
Economic Development Program Quick Facts
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Economic Development Program Quick Facts $2.7million for 2016 program year A Letter of Intent must be submitted and approved before being invited to submit an application Highly Competitive $1,000,000 maximum award Must be job creation or retention to support grant request; minimum of 51% taken/held by LMI Jobs must be created within 12 months of grant award Required 1:1 cash match CDBG funds typically not available until after July each year No funds can be expended or committed prior to project receiving Environmental Review Clearance from the Office of Community Development Concept of public benefit derived as equal or appropriate amount of benefit to the amount of assistance given. The underwriting of loans should include: Collateralization Loan servicing techniques Loan evaluation process Risk evaluation Due diligence Loan portfolio management And written guidelines for applicants
19
SAMPLE Economic Development Program Survey
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 SAMPLE Economic Development Program Survey
20
Micro-Enterprise Assistance Program
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Micro-Enterprise Assistance Program
21
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 What is MEA? The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community. What is a “micro-enterprise”? An existing or developing business that has 5 or fewer employees
22
Micro-Enterprise Assistance Grant Program
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Micro-Enterprise Assistance Grant Program Maximum Award $150,000 per community per year Maximum of $50,000 per business How does a MEA project meet benefit? The owner of the MEA business is by definition considered to be Low-to-Moderate Income (LMI). OR If business owner is not LMI, they must create up to two full-time equivalent jobs (depending on funds requested) and those must be taken by LMI individuals OR If funds are being used for a business façade, project benefit is met when the improvements and/or signage taken place in a designated slum/blight area Guide 2-98
23
MEA Eligible Activities
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 MEA Eligible Activities Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements. Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) to manage repayments and subsequent relending.
24
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 MEA Quick Facts Business must be 5 or fewer employees $700,000 in MEA program budget for 2016 $150,000 maximum award per community per year, $50,000 maximum per business Benefit met if owner is LMI OR if owner is not LMI, up to 2 LMI jobs created depending on fund request Funds available after July each year No funds can be expended or committed prior to project receiving Environmental Review Clearance from the Office of Community Development Questions contact Terry Ann Holden # or maine.gov
25
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 SAMPLE LMI Survey* *For Micro-Enterprise Assistance and Workforce Training Programs
26
Workforce Development Grant Program
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Workforce Development Grant Program
27
Workforce Development Grant Program
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Workforce Development Grant Program The Workforce Development Grant (WDG) Program addresses community and business resource needs by providing funding for new or expanded training programs including operating expenses, equipment, and program materials for workforce training programs which will primarily benefit low/moderate income (LMI) persons.
28
WDG Eligible Activities
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 WDG Eligible Activities Operating and program material expenses for the purpose of providing workforce training and skills development Public service activities associated with their project Planning activities necessary to complete the Project Development Phase
29
WDG - Meeting a National Objective
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 WDG - Meeting a National Objective Predominant Use by LMI National Objective Activities to be provided by CDBG funds will benefit LMI persons, where at least 51% of participants are LMI. Limited Clientele LMI National Objective Abused Children, Battered Spouses, Elderly Persons, Severely Disabled Adults, Homeless Persons, Illiterate Adults, Migrant Farm Workers or Persons Living With AIDS.
30
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 WDG Quick Facts $500,000 for 2016 program year $100,000 maximum award Training must be new or expanded Benefit met by Predominant Use by LMI National Objective (51% LMI) or Limited Clientele LMI National Objective CDBG funds typically not available until July each year No funds can be expended or committed prior to project receiving Environmental Review Clearance from the Office of Community Development
31
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 SAMPLE LMI Survey* *For Micro-Enterprise Assistance and Workforce Training Programs
32
How to apply for CDBG funds
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 How to apply for CDBG funds Program year – January - December Eligible Units of General Local Government (UGLG) may apply on behalf of the Sub-Grantee (Business/Non-Profit) Process Letter of Intent (LOI) Application Project Development (Phase II) Funds typically not available until July Program information all available on line at
33
Reporting/Monitoring
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Reporting/Monitoring A Development Program Manager from the Office of Community Development will be assigned to assist community throughout grant process Financial and Programmatic Monitoring done by DPM
34
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 CDBG Case Study
35
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Problem Solution Custom Boat Builder with solid reputation known for skilled workmanship and product quality Area of low unemployment/few year-round jobs/seasonal town Approximately 25 employees Need to make significant capital improvements to remain competitive, bring work in-house, lower energy costs, improve marketing and increase their workforce by 10 jobs Owners of company investing their own funds and taking on some debt, had financial gap in their development project Project approved for $300,000 in CDBG EDP funds to match $300,000 in company/loan funds being invested Use of funds included update of HVAC system (heat and air), purchase of boat molds and spray guns, working capital, workforce training and website development Reduced energy costs, improved air quality for its composite work and safer healthier atmosphere for employees Brought previously out-sourced construction in-house Created 18 full-time year-round jobs, over 51% LMI
36
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Problem Solution New boatbuilder to State of Maine Focus on specialized vessels for commercial fishing, law enforcement and marine research Located in area of high unemployment Lack of skilled workforce Company and community investing significant dollars to get company started Need to train/cross-train workers in all aspects of boatbuilding Community and business applied for and were awarded CDBG Workforce Development grant funds Training included fiberglass, laminating, gel coating, grinding, custom construction and detailing, boat assembly and quality control Project provided training and cross-training for 26 individuals, 24 of which were LMI
37
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 Session: In-Depth Look at Using CDBG for Economic Development
38
Office of Community Development Staff
Session: In-Depth Look at Using CDBG for Economic Development 9/12/2016 Office of Community Development Staff Director – Deborah Johnson Development Program Managers – Terry Ann Holden Tammy Knight Andrea Smith Financial Representative – Sharon Thomas Administrative Staff- Susan Bolduc
39
Session: In-Depth Look at Using CDBG for Economic Development
9/12/2016 For more information contact us at: Office of Community Development Department of Economic and Community Development 59 State House Station Augusta, ME (207)
Similar presentations
© 2025 SlidePlayer.com Inc.
All rights reserved.