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?