Working with the Office of Community Development and Other Partners for Downtown Revitalization

Working with the Office of Community Development and

Other Partners for Downtown Revitalization

November 9, 2012

Using Community Development Block Grant for Downtown Revitalization

Program Goals• Assist in the revitalization of Central Business

Districts• Aid in the elimination of slums or blight• Create/retain permanent, private sector job

opportunities for low- and moderate-income (LMI) households

• Assist in the successful implementation of the Four-Point Main Street Approach to downtown revitalization

FY 2012 Funding for Downtown Activities• Suspension of Downtown Revitalization Planning

(formerly Tier I) Program

• Suspension of Downtown Building Revitalization and Streetscape (formerly Tier II) Program

• Funding for Downtown Targets of Opportunity (formerly Tier III) Program

FY 2012 Funding for Downtown Activities• Funding for Downtown Targets of Opportunity

(formerly Tier III) Program – CDBG Discretionary Allocation of $1,500,000– Funds available for Downtown Targets of Opportunity

projects cannot exceed 50% of the proposed CDBG allocation ($750,000)

– Funds recaptured from prior Comprehensive Downtown Revitalization Grants may also be allocated to Downtown Targets of Opportunity projects

FY 2012 Funding for Downtown Activities• Funding for Downtown Targets of Opportunity (formerly Tier III)

Program – Awards can be made for single building projects– Awards can also be made for multiple building projects if the

buildings are in a condensed area such as a single block or intersection

– Building(s) must be identified at the time of application– Matching funds must be committed at time of application– Communities are required to submit pre-assessment worksheet,

which will be used to evaluate project strength and readiness to proceed

– Communities successfully screened at pre-assessment stage will be asked to submit full application

FY 2012 Funding for Downtown Activities• Status of FY 2012 Downtown Targets of Opportunity (formerly

Tier III) Program Funding – 9 pre-assessment worksheets submitted– 8 evaluated for eligibility, matching funds, readiness to

proceed, project strength– 2 in process of being invited to submit a full application– 6 in process of being provided feedback/opportunity to

strengthen proposal – 1 in process of preliminary review

Other CDBG Programs for Downtown Revitalization

FY 2012 Funding for Downtown Activities• FY 2012 Formula Allocation Program

– Central Business District Infrastructure (sidewalks, curbs, streets, utilities etc.)• Must qualify under slum/blight national objective• Must complete Infrastructure Conditions Survey• At least 51% of the infrastructure must be sub-standard• Must pass resolution or ordinance declaring the area

slum/blight– Planning

• Cannot exceed $10,000 without approved waiver

FY 2012 Funding for Downtown Activities

• FY 2012 Formula Allocation Program – Applications were due June 22, 2012– Applications were reviewed June-August– Grant agreements were issued September 2012– A number of communities funded central business district

infrastructure and one community funded a downtown façade/code improvement program

FY 2012 Funding for Downtown Activities

• Economic Development Program – Project must include fixed asset financing – CDBG funds awarded as loan to building or business

owner– Project must create/retain low- and moderate-income

(LMI) jobs– Project must meet all other parameters of the Economic

Development Program

FY 2012 Funding for Downtown Activities

• Economic Development Program (Example)– Funds to loaned to downtown business for purchase of existing

building– Business committed to create/retain LMI jobs with longer

hours, better cash flow, and more stability– Business matched CDBG funds with equity and private lender

financing– Business repaid loan to City’s Revolving Loan Fund

FY 2012 Funding for Downtown Activities• Program Income– Building Rehabilitation Projects

• Can function like downtown building rehab program (slum/blight national objective) or economic development program (LMI direct benefit job creation)

– Central Business District Infrastructure (sidewalks, curbs, streets, utilities etc.) – just like Formula Allocation Program

– Planning – just like Formula Allocation Program – Must submit waiver request to OCD for approval (if not

used for economic development)

FY 2013 Proposed Funding for Downtown Revitalization

FY 2013 Proposed Funding for Downtown Activities

• Community Development Allocation Program (formerly Formula)– Substantial changes anticipated; will not impact how funds can be used

for downtown revitalization– Proposed funding at 30 percent of total CDBG allocation

• Economic Development Loan Program– Proposed funding at 25 percent (funds shared with Residential Public

Infrastructure Program) of total CDBG allocation• Program Income• Discretionary Program

– Proposed funding at 1 percent of total CDBG allocation

• NEW Downtown Revitalization Grant Program

FY 2013 Proposed Downtown Revitalization Grant Program

• To be funded as competitive set-aside of Community Development Program

•Application submitted with Community Development Program application – June ?•Only communities eligible for Community Development Program may apply directly/Counties must apply on behalf of villages and non-Direct allocation cities •Funding shared with competitive Neighborhood Revitalization Grant

Program and (new) Critical Infrastructure Program – approximately 20 percent of total CDBG allocation•Required targeting of Central Business District

FY 2013 Proposed Downtown Revitalization Grant Program

Proposed grant ceiling of $300,000

Administration allowance: to be determined

FY 2013 Proposed Downtown Revitalization Grant Program

Eligible Activities– Uniform façade and sign improvements– Interior and exterior building code violation corrections;

streetscape activities – Other eligible CDBG infrastructure and rehabilitation activities– Administrative costs directly related to the downtown program – Architectural and engineering work related to specific

revitalization activities. – Parking improvements will only be eligible on a case-by-case

basis and with prior written approval from OCD

FY 2013 Proposed Downtown Revitalization Grant Program

Ineligible Activities– Neighborhood revitalization activities – Development or redevelopment of speculative projects or

buildings– Funding to restructure or refinance of existing debt(s), working

capital, purchase or refinance of noncapital equipment, training costs, or inventory costs

– Activities related to specific downtown promotional events– Costs associated with preparing plans and studies – Large scale, single-purpose infrastructure projects that extend

beyond the investment area

FY 2013 Proposed Downtown Revitalization Grant Program

Program Investment Area– Downtown Revitalization applicants can only

address conditions in the Central Business District. Applicants must submit a building map of the downtown area indicating the boundaries of the downtown target area and the location of the proposed revitalization activities

FY 2013 Proposed Downtown Revitalization Grant Program

Downtown Inventory– Applicants must survey the downtown program

target area (which may include either the entire CBD or a portion of the downtown) and provide information about the condition, age, and use of private and public buildings, as well as infrastructure, as part of the application process

FY 2013 Proposed Downtown Revitalization Grant Program

Design Standards– Architectural design standards applicable to the

downtown target area, incorporating the Secretary of Interior’s Standards for Rehabilitation, must be adopted by the local legislative body, and enforced

FY 2013 Proposed Downtown Revitalization Grant Program

Scoring Criteria (to be determined)

• Number/percentage of buildings to be improved• Prioritize building improvements over streetscaping• Prioritize code improvements over façade improvements

• Leverage• Count private parking lot/landscaping investment as match

• Number of beneficiaries (regional vs. local)• Percent of substandard buildings and infrastructure• Local government participation for streetscaping activities• Sustainability• Historic Preservation• Energy efficiency/green building standards

FY 2013 Proposed Downtown Revitalization Grant Program

Planning/Citizen Participation Process

• Design Review Standards• Building/business owner participation in downtown business association

• Prioritize building improvements over streetscaping• Prioritize code improvements over façade improvements

• Elimination of formal planning requirement • Downtown business association work plan• Community comprehensive plan

• Market surveys• Consumer• Business Owners

FY 2013 Proposed Downtown Revitalization Grant Program

• Accepting comments on proposed program structure through November 30, 2012

• Draft Ohio Consolidated Plan will be submitted to the Director’s Office for approval in late December

• Ohio Consolidated Plan Advisory Committee will convene in February 2013• Ohio Consolidated Plan public hearing will be held March 2013• Ohio Consolidated Plan will be submitted to Department of Housing and

Urban Development in May 2013• FY 2013 Program Year begins July 1, 2013

Questions/Comments?