georgia department of community affairs cdbg economic development redevelopment fund program (rdf)...
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Georgia Department of Community AffairsCDBG Economic Development
Redevelopment Fund Program (RDF)
Staci Tillman December 4, 2014
Eligible Redevelopment Fund Program (RDF) Activities
December 4, 2014
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. For projects that will be used for housing, the minimum benefit to
low- to moderate income (LMI) persons must be at least 70 percent. For public facility activities benefiting residents in a particular
service area, 70 percent 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 percent of the benefit must be made available to LMI persons.
For projects that will benefit specific groups of persons rather than everyone in the area, at least 51 percent of the beneficiaries of an activity must be LMI persons.
National Objective-Elimination of Slums and Blight
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”
Available Funding
Annual Competition
$36.2 million CDBG allocation
EIP $8 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)
Spot Basis
Spot Basis eligible activities:AcquisitionClearanceRelocation Historic preservation Building rehabilitation activities which eliminate
specific conditions of blight or physical decay on a spot basis that may not be located in a slum or blighted area
Spot Basis
Spot Basis eligible activities:
Under this standard, the activity is limited to the extent necessary to eliminate specific conditions detrimental to the public health and safety.
Example activities include: elimination of faulty wiring, falling plaster, or other similar conditions which are detrimental to all potential occupants; historic preservation of a public facility; and demolition of a vacant, deteriorated building.
Area Basis
The area, delineated by a unit of local government, meets a definition of a blighted, deteriorated, deteriorating, or slum area under state or local law;
Throughout the area there is a substantial number of deteriorating buildings or the public improvements are in a general state of deterioration;
Area Basis
The assisted activities address one or more of the conditions which contributed to the deterioration of the area; and
The local government keeps records sufficient to document its finding that a project meets the National Objective of elimination or prevention of slums and blight.
Redevelopment Fund Program (RDF)
Eligible Activities:Projects must alleviate a “slum or blighted”
conditionGrants - Public infrastructure, public facilities Loans - to acquire and alleviate blighted
buildings/facilities
Loan repayments may be placed in an existing local Revolving Loan Fund (RLF) or establish a new fund.
Any new jobs must be available to low- and moderate-income persons
Ineligible CDBG-RDF Activities
Machinery and Equipment (HVAC systems)Working CapitalRefinancingSpeculative Projects Capacity BuildingGeneral Conduct of GovernmentProject Not Meeting Federal GuidelinesUsing Federal Funds to relocate businesses (There
are Restrictions)
Example RDF Eligible Activities
Acquisition and clearance of blighted property;
Renovation and reuse of abandoned historical buildings;
Commercial revitalization through facade improvements (grant/loan);
Removal of environmental contaminants on property to enable it to be redeveloped for a specific use.
Example RDF Eligible Activities
Spot Basis Facade improvements
with restrictions Building rehabilitation
with restrictions Removal of
environmental contaminants
Demolition Building acquisition Pedestrian walk way
with restrictions
Area Basis Facade improvements Building rehabilitation Removal of
environmental contaminants
Demolition and construction
Building acquisition Pedestrian walk way
Successful Spot Basis Projects
City of West Point – West Point 2100
City of Braselton – Braselton Brothers Store Complex
John VanBruntField Representative
Office of
Economic Development
City of Braselton
Recipient : City of Braselton Grant Amount : $500,000
City of Braselton
City of Braselton
City of Braselton[Before]
City of Braselton: Source and Use
Source Amount Use Amount
RDF $500,000 Renovations $425,000
Architectural Services $ 50,000
Grant admin. $25,000
City of Braselton $985,000 Building (donated) $835,000
Renovations $137,000
Architectural Services $13,000
Companies $322,000 Value of business (existing) $322,000
TOTAL $1,807,000 TOTAL $1,807,000
City of Braselton: Progress
City of Braselton
Braselton Triumph
Patrick VickersField Representative
Office of
Economic Development
Kelly Folsom Lane
Field Representative
Office of
Economic Development
Successful Area Basis Project
City of Thomasville - Victoria Place
Thomasville RDF Award
RDF Grant to City of Thomasville for land acquisition, building rehab and expansion of a blighted structure in the Victoria Place Urban Redevelopment Area to be used as the newly instituted Housing and Resource Center
Grant Amount $270,884; TPC $413,291 Center is fully occupied by 5 non profits (Red Cross,
Habitat for Humanity, Relief from the Streets, Lives without Limits, and Keep Thomas County Beautiful)
Has provided services to 329 persons as of July 2013
Thomasville RDF Source and Use
Source Use Amount
RDF Acquisition fees/Rehab $270,884
City Construction/Admin $ 79,048
Flowers Baking Co. Construction /Land $ 57,167
Habitat for HumanityBuilding $ 3,192
Hands on Thomas Building Rehab $ 3,000
Total Project Cost $413,291
Thomasville Housing & Resource Center
Things to Remember
Identify your project on “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
Funding Opportunities for Downtown Projects
Downtown Development
Revolving Loan Fund
Georgia Cities Foundation
CDBG Redevelopment Fund
Eligible Applicants
• Cities < 100,000 population• Counties < 100,000
population
• CitiesNo 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 $250,000/project $500,000/project $500,000/project
RDF and RLF Program Support Contacts
Staci Tillman –Redevelopment Program Manager
(404) 679-0668 [email protected]
Michael Casper – Local RLF Coordinator(404) 679-0594 [email protected]
Economic Development Representative Contacts
Jennifer Fordham – Southeast Georgia(912) 865-4212 [email protected]
Kelly Lane – South Georgia(229) 896-4259 [email protected]
John VanBrunt – At-Large(404) 327-6871 [email protected]
Tonya Mole – Southwest Georgia(404) 852-6876 [email protected]
Patrick Vickers – Northwest Georgia(404) 679-3151 [email protected]
Rusty Haygood – Field Services Office Manager & Northeast Georgia(404) 977-1429 [email protected]