Dave Goben Department of Commerce & Economic Opportunity 2014 CDAP Grant Administration Workshop...
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Transcript of Dave Goben Department of Commerce & Economic Opportunity 2014 CDAP Grant Administration Workshop...
Dave GobenDepartment of Commerce & Economic Opportunity
2014 CDAP 2014 CDAP Grant Administration WorkshopGrant Administration Workshop
CDAP Economic DevelopmentCDAP Economic Development
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National Goals / ObjectivesNational Goals / Objectives
• Assist in building the financial and operational capacity of communities to carry out local economic development
– Locational Argument
– Financial Gap Argument
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Low and Moderate-Income PersonsLow and Moderate-Income Persons
"Low and Moderate-Income Persons" shall mean those individuals in a family whose income is less than 80% of the median income of the area.
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CDAP Economic DevelopmentCDAP Economic Development
• $5.0 million allocation
• Maximum Grant amount $750,000
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FEDERAL CDBG HUD $$’s
STATE (DCEO) CDBG $$’s
CDBG LOAN TO BUSINESS
CDBG LOAN REPAYMENTS (PROGRAM INCOME) TO ULG REVOLVING FUND
ECONOMIC DEVELOPMENT GRANT CDBG $$’s to Unit of Local Government (ULG)
LOANS MADE FROM PROGRAM INCOME BY ULG REVOLVING FUND
CDBG-Community Development Block Grant
HUD-US Dept. of Housing & Urban Development DCEO-Dept. of Commerce & Economic Opportunity
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PurposePurpose• Economic Development Financial projects
– Job creation with 51% LMI– Job retention with 51% LMI– Loan Agreement
• Public Infrastructure in Support of Business – Participation Agreement– Job creation with 51% LMI– Job retention with 51% LMI
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PurposePurpose
The primary objective of program is to enable grantees to carry out local economic development activities in a way that will expand economic opportunity, principally for low and moderate-income persons. Each project shall result in private sector job creation or retention. At least 51% of such jobs shall be filled or retained by persons of low and moderate-income.
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Eligible BorrowersEligible Borrowers
• Private for-profit
• Not-for-profit entities
Sub recipients must directly create or retain jobs; indirect jobs (employed by other than the borrower) are not sufficient to meet program guidelines.
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Eligible Grant RecipientsEligible Grant Recipients
Only units of general local government (i.e. cities, villages, townships and counties) as defined by the Illinois State Constitution may apply for funding. Municipalities must be 50,000 or less in population and must not be located in an urban county that receives “entitlement” funds.
• private for-profit or not-for-profit entities.
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Federal Regulations/Title 1Federal Regulations/Title 1• Job Creation/Retention with 51% LMI Benefit• Environmental Review
– Required prior to loan closing• Davis-Bacon
– Required for construction work using Program funds
• Uniform Act– Required when real property is acquired or
persons displaced
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Policy GuidelinesPolicy Guidelines
• Finance no more than 50% of project• Not to exceed $15,000 for every FTE
created/retained• No speculative financing• 51% LMI benefit• Economic Development grant request may be
reduced by balance of RF• Department Retail Policy
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Eligible Use of FundsEligible Use of Funds
• Site development/infrastructure extension• Construct new facility/addition• Renovation of existing facility• Leasehold improvements• Purchase of machinery or equipment• Working Capital
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Ineligible Use of FundsIneligible Use of Funds
• General government expenses• Forgivable financial assistance projects• Costs of operating and maintaining public
facilities and services• Servicing or refinancing of delinquent or
defaulted existing debt.
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Ineligible Use of FundsIneligible Use of Funds
• Relocation of business from one area of the state to another
• Exceeding HUD’s threshold of pirating jobs
• Violation of HUD’s underwriting provisions
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SecuritySecurity
• All financial assistance projects to businesses shall be secured– Financial assistance agreement, mortgage,
security agreement, promissory note, UCC, financing statement or other assignment of rights of the assets of assisted firms.
• DCEO will underwrite each project.
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Employee Income Certification FormsEmployee Income Certification Forms
• Use current Section 8 HUD income guidelines
• Jobs and investment created by 24th month
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-WARNING--WARNING-
• Failure to comply with State or Federal Regulations could result in:– Pending, future grant requests will not be
considered;
– Payment requests for active grants suspended;
– recovery procedures by DCEO.
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Revolving Fund Program Revolving Fund Program
DCEO Website
http:wwwga.illinois.gov/dceo/pages/
Default.aspx
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Contact InformationContact InformationDave Goben, Economic Develoment Manager
Department of Commerce & Economic Opportunity500 E. Monroe St, R-2Springfield, IL 62701
(217) [email protected]
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