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)