1. Georgia Department of Community Affairs CDBG Economic Development Annual Competition and Set-Aside Programs CDBG, EIP, RDF and Capitalized RLF

2. GENERAL OVERVIEW

3. Page 3Economic Development | 12-3-08 Overview Community Development Block Grant (CDBG) enacted by Congress as Title I of Housing and Community Development Act of 1974 The primary objective of CDBG is “the development of viable communities through improvement of living conditions, housing and the expansion of economic opportunities in cities and counties, principally for persons of low and moderate income.”

4. Page 4Economic Development | 12-3-08 Overview (Cont.) Local governments can implement a broad range of activities as long as they further the National Objectives of the Act National Objectives are: ▪Majority benefit to low- and moderate-income persons through services and job creation ▪Prevention or elimination of slum and blight ▪Immediate Threat & Danger

5. Page 5Economic Development | 12-3-08 Available Funding CDBG Funds from U.S. Housing and Urban Development (HUD) Annual Competition $30 million CDBG allocation EIP$7 million set-aside RDF$1.5 million set-aside

6. Page 6Economic Development | 12-3-08 Features of Economic Development Programs Maximum Grant$500,000 Primary PurposeExpand employment opportunities for L/M income people Low/Moderate Income Benefit At least 51% of jobs created and/or retained Eligible UsesPublic facilities, infrastructure, business loans, elimination of Slum and Blight

7. Page 7Economic Development | 12-3-08 Differences of Economic Development Programs Set-Asides (EIP/RDF) Anytime submission Compete against rating and review process Complete application with second change Processing time – 45 days for complete application Annual Competition (CDBG-ED) One annual submission Compete against rating and review process and other applications Complete Application without exceptions Processing time – 5 months

8. Page 8Economic Development | 12-3-08 Ineligible CDBG-ED/EIP/RDF Activities Working Capital Refinancing Speculative Projects Capacity Building General Conduct of Government Project Not Meeting Federal Guidelines Using Federal Funds to relocate businesses (There are Restrictions)

9. GETTING STARTED

10. Page 10Economic Development | 12-3-08 Getting Started – Annual Competition, EIP & RDF 1.Have an Idea? Call DCA early! 2.PACA Request (CDBG-ED) or Initial Project Assessment (EIP/RDF) – Field Services representative will visit. 3.PACA – pre-agreement cost approval does not guarantee funding. 4.Application – Reviewed by panel.

11. Page 11Economic Development | 12-3-08 The CDFD Finance Team Field Staff Project identification, assessment and development Compliance monitoring Credit Unit Credit analysis, underwriting Financing options Program Manager Review overall project Ensure program objectives can be met Craft award documents Project oversight

12. Page 12Economic Development | 12-3-08 Application Process Application Forms (DCA 1- DCA 13) Supplemental Information & Documentation Public Infrastructure or Loan attachments Refer to: EIP or RDF Application Manuals and CDBG Applicants & Recipients Manuals www.dca.ga.gov * Further discussion in Advanced Session *

13. Page 13Economic Development | 12-3-08 Four Routes to ED with CDBG 1.Annual Competition CDBG-ED application 2.Employment Incentive Program 3.Redevelopment Fund Program 4.Local Revolving Loan Fund (generated by CDBG-ED, EIP or RDF loans)

14. SPECIFIC PROGRAMS

15. ANNUAL COMPETITION and/or EIP GRANT PUBLIC INFRASTRUCTURE

16. Page 16Economic Development | 12-3-08 Infrastructure Grants- Eligible Activities Public Infrastructure Acquisition, construction and rehabilitation of Water - lines, tanks, wells, treatment plants Sewer - gravity lines, forcemains, pump stations, treatment plants, land application “sprayfields” Roads - access, turn lanes, accel/decel lanes, paving Stormwater drainage – ditches, pipes, culverts, ponds Rail spurs - switches, track, track base, derails, stops Other - wastewater pretreatment plant, gas lines (“red”) Public Facilities Workforce development centers / Child care facilities

17. Page 17Economic Development | 12-3-08 City of Folkston – Cornell Companies, Inc. d.b.a. D. Ray James State Prison Recipient – City of Folkston Sub-Recipient – Cornell Companies, Inc. d.b.a. D. Ray James State Prison Grant Amount - $500,000 Project – sewer system Private Investment - $43 Million Jobs – 51 (317 existing jobs)

18. Page 18Economic Development | 12-3-08 SourceAmountUseAmount EIP OGA Equity City (GEFA) Private Total $ 500,000 $ 664,430 $ 34,000,000 $35,664,430 Sewer system improvements Grant Administration Sewer system improvements Building expansion, M&E, F&F $ 470,000 $ 30,000 $ 500,000 $ 1,926,380 $ 34,000,000 $35,664,430 Source and Use – City of Folkston

19. Page 19Economic Development | 12-3-08 Infrastructure Grants Areas of Concern:TO BE ADDRESSED MORE FULLY IN ADVANCED SESSION DCA-4 Description of Needs to be Addressed – Needs for improvement of existing conditions (more than just project) DCA-5 Description of Activities – Specific project activities with codes and timetable to meet program relative needs addressed in DCA-4 DCA-8 Budget Analysis – CDBG funded construction, engineer/architect and grant administration by ED activity codes and other public /private funding EIP Application Supplements Preliminary Engineering Report or Preliminary Architectural Report Project Cost Estimate Source-and-Use Statement Commitment Letter(s) – all public and private sources of project funding Letter of Credit or Surety Bond Economic Development and EIP Supplemental Information and Documentation Rating and Selection Criteria Infrastructure Capacity Analysis (IFCA) Economic Development & Construction Agreement

20. EIP GRANT – LOAN TO PRIVATE FOR-PROFIT BUSINESS

21. Page 21Economic Development | 12-3-08 EIP Loans – Eligible Activities Loans to for-profit for purchase of fixed assets Acquisition, construction and rehabilitation of commercial or industrial land, building(s), machinery and equipment and other real property improvements * Loan repayments may capitalize or be placed into a local RLF

22. Page 22Economic Development | 12-3-08 Loan Structures DCA Grant to a Local Government ▪Local Government then provides: Direct loan to a private business or,  A loan to a development authority who then makes a direct loan to a private business

23. Page 23Economic Development | 12-3-08 City of St. Marys – Gateway Behavioral Health Services Recipient – City of St. Marys Sub-Recipient – Gateway Behavioral Health Services Grant Amount - $500,000 Project – Building Construction/Expansion Private Investment - $645,6522 Jobs – 50

24. Page 24Economic Development | 12-3-08 SourceAmountUseAmount EIP Private Meridian Total $ 500,000 $ 375,652 $ 270,000 $1,114,652 Bldg Const/Expansion Grant Administration Bldg Const/Expansion M&E Working Capital M&E Total $ 470,000 $ 30,000 $ 26,784 $ 201,038 $ 147,830 $ 270,000 $1,114,652 Source and Use – City of St. Marys

25. REDEVELOPMENT FUND

26. Page 26Economic Development | 12-3-08 REDEVELOPMENT FUND Eligible Activities: Projects must alleviate a “slum or blighted” condition ▪Public infrastructure, public facilities ▪Loans to acquire and alleviate blighted buildings/facilities Loan/lease payments may be capitalized into a local RLF Any new jobs must be available to low- and moderate-income persons

27. Page 27Economic Development | 12-3-08 Samples of RDF Eligible Activities Acquisition and clearance of blighted property Renovation and reuse of abandoned historical buildings Commercial revitalization through façade improvements Removal of environmental contaminants on property to enable it to be redeveloped for a specific use

28. Page 28Economic Development | 12-3-08 City of Elberton Recipient – City of Elberton Sub-Recipient – Elberton DDA Grant Amount - $500,000 Project – Rehabilitate blighted historic downtown building Private Investment - $151,946 Jobs – 12

29. Page 29Economic Development | 12-3-08 SourceAmountUseAmount Redevelopment DDRLF EDDA Total $ 500,000 $ 192,492 $ 151,946 $844,438 Rehabilitation Administration Rehabilitation Equity Total $ 480,000 $ 20,000 $ 192,492 $ 151,946 $844,438 Source and Use – City of Elberton

30. Page 30Economic Development | 12-3-08 City of Elberton

31. LOCAL REVOLVING LOAN FUND (RLF)

32. Page 32Economic Development | 12-3-08 Local Revolving Loan Funds EIP/RDF loan payments capitalize local RLF RLFs can be used for local economic development needs Must be CDBG-eligible Opportunities available to partner with local banks to finance eligible activities (same as EIP) that create employment for L/M persons

33. Page 33Economic Development | 12-3-08 Local Revolving Loan Funds Administered by local government with DCA’s oversight and guidance (as needed) Currently 66 RLF’s throughout Georgia, with: ▪$33 million in RLF assets ▪$12 million in cash ▪$21 million in loan receivables RLF must be used in a timely manner – at least one new loan every five (5) years For RLF cash balances greater than $125k, cash balance should be maintained at less than 30% of total RLF assets

34. THINGS TO REMEMBER

35. Page 35Economic Development | 12-3-08 Things to Remember Describe your project and jobs created/retained Document need, costs and support of banks & businesses Debt – credit underwriting and terms

36. Page 36Economic Development | 12-3-08 Program Manager Contacts: Andy Yarn- Employment Incentive Program (404) 679-1589 andy.yarn@dca.ga.govandy.yarn@dca.ga.gov Nyanza Duplessis – EIP Loan and RDF Program (404) 679-0668 nyanza.duplessis@dca.ga.govnyanza.duplessis@dca.ga.gov Michael Casper – Local RLF Coordinator (404) 679-0594 michael.casper@dca.ga.govmichael.casper@dca.ga.gov John Kingery – Credit Manager (404) 679-1586 john.kingery@dca.ga.govjohn.kingery@dca.ga.gov

37. Page 37Economic Development | 12-3-08 ED Representative Contacts: Jennifer Fordham – Southeast Georgia (912) 865-4212 jennifer.fordham@dca.ga.govjennifer.fordham@dca.ga.gov David Shellhorse – Northeast Georgia (706) 955-7505 david.shellhorse@dca.ga.govdavid.shellhorse@dca.ga.gov Ron Thompson – Southwest Georgia (478) 934-3845 ron.thompson@dca.ga.govron.thompson@dca.ga.gov Vacant – Northwest Georgia Glenn Misner – Field Services Office Manager (404) 679-3138 glenn.misner@dca.ga.govglenn.misner@dca.ga.gov