Resources and Programs for small HRA s. NAHRO Conference September 28, 2017

Transcription

1 Resources and Programs for small HRA s NAHRO Conference September 28, 2017

2 Importance of Community Development People want to live in safe, developed, efficient communities Businesses base their decisions on the same factors Helps attract talent Provides infrastructure and quality site locations to be successful Quality Housing plays an important role

3 Office of Community Finance Community Financing Programs Small Cities Development Program (SCDP) Contamination Investigation and Cleanup Grant Program Redevelopment Grant Program and Demolition Loan Program Business Development Public Infrastructure Grant (BDPI) Innovative Business Development Public Infrastructure Grant (IBDP) Transportation Economic Development Infrastructure Program (TEDI)

4 Small Cities Development Program(SCDP) Funds for the program are provided by the U.S. Department of Housing and Urban Development (HUD) for the benefit of eligible non-entitlement local units of government (cities and counties) through a competitive application process for a variety of community development needs.

5 How to become an administrator? Contact your SCDP Rep Additional information will be needed Request to be added to training list Complete the training(usually takes 6-12 months) Federal Regulations Program Requirements Housing Quality Standards

6 Eligible Applicants Cities with fewer than 50,000 residents Counties with fewer than 200,000 residents Ineligible due to entitlement funding: Cities: Duluth, Mankato, North Mankato, Moorhead, Rochester, St. Cloud Counties: Anoka, Dakota, Hennepin, Ramsey, St. Louis, Washington

7 Eligible Activities Owner Occupied Housing Rehabilitation Rental Housing Rehabilitation Commercial Rehabilitation Public Facilities-water, wastewater Community Centers Streetscape

8 Rehabilitation success!

9 Federal Objectives Benefit to low and moderate income people on a household basis (80% of county median income) for housing Area benefit (51% or better LMI) for public facilities Alleviation of slums and blight for commercial rehabilitation. Must designate a slum and blight area (HRA definition)

10 Federal Requirements Environmental Review: includes public comment periods and historical clearance Davis-Bacon (Rental over 8 units, commercial, and public facilities) Fair Housing/Equal Opportunity Annual reporting Monitoring- ongoing

11 Competitive Annual Application Cycle Two step Process Preliminary proposals due November timeframe Applications which are due February timeframe -funding/

12 Application Scoring All Applications may be awarded points for the following: 90 Points for Need 90 Points for Community Impact 30 Points for Cost Effectiveness 30 Points for Demographics(determined by census data)

13 Brownfields and Redevelopment Unit Contamination Cleanup and Investigation Grants Program Cleanup Revolving Loan Program Redevelopment Grant Program Demolition Loan Program

14 Program Purpose The purpose of these programs is to reduce the costs of developing previously used sites. Contamination cleanup and redevelopment costs would not be present on a site with no prior history.

15 What is a brownfield?

16 What is a brownfield?

17 What is a brownfield? An abandoned or underutilized property whose redevelopment is hindered by either real or perceived environmental contamination.

18 Brownfield Cleanup Components Investigation Stage Phase I (historic review of property) Phase II (sampling and testing) Response Action Plan or RAP (cleanup strategy) Cleanup Stage Implementing the RAP

19 Contamination Cleanup and Investigation Grants Investigation and RAP Development Grants DEED can pay up to 75% of investigation costs Max grant is $50,000 Cleanup Grants May include investigation costs already incurred Can apply for up to 75% of costs Both grants are competitive

20 Contamination Cleanup and Investigation Grants Eligible applicants are: Cities Counties HRAs EDAs Port Authorities

21 Contamination Cleanup and Investigation Grants Eligible sites include: Both privately and publicly-owned sites Known or suspected contamination Development plan will create jobs, increase tax base, or result in other public benefits Resolution from applicant body (and municipality if different) Cleanup Grant applicants need MPCA approved Response Action Plan (RAP)

22 Contamination Cleanup and Investigation Grants Eligible Costs Investigation - Phase I, Phase II, RAP Development Cleanup - Contaminated soil removal and disposal, vapor systems, groundwater treatment, etc. Public Acquisition* Environmental Consulting Fees* Public Improvements* Demolition* Ineligible Costs Project/Grant Administration Appraisal or other application costs Development Costs Asbestos Abatement in Buildings Contingencies Landscaping - Seeding, sod, trees, etc.

23 Contamination Cleanup and Investigation Grants Grant awards Up to 75% of eligible cleanup/investigation costs Required match = 25% of eligible cleanup/investigation costs 12% of match must come from an unrestricted source Request what you need 35% of awards to Greater Minnesota

24 Contamination Cleanup and Investigation Grants Applications Due at DEED office November 1 st or May 1 st 4:00 PM Application form and instructions can be found at mn.gov/deed Apply when project is ready to start

25 Cleanup Revolving Loan Program Eligible applicants are: Cities Counties HRAs EDAs Port Authorities Private entities Non profits

26 Cleanup Revolving Loan Program Eligible sites include: Completed All Appropriate Inquiries Own or have ownership interest in property MPCA approved RAP Borrower cannot be responsible for contamination Ability to repay loan

27 Cleanup Revolving Loan Program Eligible costs Costs already incurred are not eligible for loan funds Costs only eligible after project is determined eligible and the cleanup plan is accepted by the appropriate agencies

28 Cleanup Revolving Loan Program Loan awards Applications are accepted throughout the year Loans can reimburse up to 78% of eligible costs 22% match requirement from a non-federal source Rate and term are negotiable Portion forgivable if borrower is local unit of government

29 Redevelopment Grant Program Eligible applicants Same as Contamination Cleanup Grant local units of government Eligible activities Demolition and interior abatement Infrastructure improvements Environmental infrastructure Geotechnical soil correction

30 Eligible Sites Previously been developed End use which will create jobs, taxes, or other public benefits Resolution from applicant body and municipality (if different)

31 Grant Awards 50% match requirement Match can be from any available source 50/50 split between Metro and Greater MN Competitive process compete against other applicants

32 Applications Due at DEED offices February 1 st and August 1 st by 4:00 PM Template and instructions can be found at mn.gov/deed Apply when project is ready to go

33 Demolition Loan Program Eligible applicants Cities Counties HRAs EDAs Port Authorities

34 Eligible Sites Applicant must own property and structures Structures have been vacant at least one year Not listed on the National Register of Historic Places Constitute a threat to public safety Expectation of future development and economic benefits Immediate plans not needed

35 Other Loan Information Same application deadlines as Redevelopment May pay up to 100% of acquisition and demolition costs, maximum loan amount of $1,000,000 2% interest rate for up to 15 years Interest free for first two years If development occurs, up to 50% of the remaining principal and interest could be forgiven based on development benefits

36 Business Development Public Infrastructure (BDPI) Purpose BDPI provides financial assistance to greater MN communities to stimulate new economic development and the creation of jobs by investing in public infrastructure needs Eligible applicants are counties outside the 7 county metro area Hennepin, Ramsey, Dakota, Anoka, Washington, Scott and Carver are not eligible grantees

37 BDPI Goals Project will be to used to create or retain full-time jobs in the community Increase a city s tax base Project will be used to attract substantial public and private capital investment Provide substantial economic development benefit to the community

38 BDPI Applications Business creation/expansion Industrial park development

39 BDPI Eligible Industries Manufacturing Technology Warehousing and distributing Research and development; Agriculture processing Industrial park development-as businesses above No retail, office or housing

40 BDPI Eligible Activities Publicly owned infrastructure that supports economic development projects, including wastewater collection and treatment, drinking water, storm water systems, utility extensions, and streets

41 BDPI Funding Provided through State General Obligation Bonds Applications accepted on an on-going pipeline Up to $2,000,000 per two year period based on award date

42 BDPI Funding-continued Grants will be 50% of the eligible capital costs of infrastructure Applicants must provide match 50% or more of the capital costs for the public infrastructure project

43 Application Info Application available online:

44 Innovative Business Development Public Infrastructure (IBDP) Purpose IBDP program focuses on job creation and retention through the growth of innovative businesses

45 Innovative Definition "Innovative Business" is a business that is engaged in, or is committed to engage in innovation in Minnesota in one of the following: 1. Using proprietary technology to add value to a product, process, or service in a high technology field 2. Researching or developing a proprietary product, process or service in a high technology field 3. Researching, developing, or producing a new proprietary technology for use in the fields of tourism, forestry, mining, transportation, or green manufacturing

46 Proprietary Technology Proprietary technology is the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted

47 IBDP Funding Provided through state general obligation bonds Funds are currently available Applications accepted on an ongoing pipeline

48 IBDP Eligible Applicants Local governmental units (city, county, town, special district, public higher education institution, or other political subdivision or public corporation) are eligible to apply for a grant

49 IBDP Eligible Projects The projects must be of publicly owned infrastructure related to development projects that target: Manufacturing Technology Warehousing and distribution Research and development Innovative business incubator Agricultural processing Industrial, office, or research park development that would be used by an innovative business

50 IBDP Matching Funds Applicants must provide 50% or more of the capital costs for the public infrastructure project Applications accepted any time.

51 Transportation Economic Development Infrastructure (TEDI) Collaboration between MnDOT and DEED for highway and local road improvement projects that support economic development Seeking projects that will assist development of new businesses or expand existing businesses in Minnesota Looking for projects that will promote economic development, increase employment, and improve the statewide transportation network

52 TEDI Projects are ranked on job creation, increase in the local tax base, level of private investment, leverage of non-state funds, improvement to the transportation system. Geographic balance between the metro and Greater MN

53 Thank you! Any questions?