HUD's Office of Community Planning and

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Projects Automatically Fail Individual Public Benefit Test • Community promotion • Professional sports teams • Recreation facilities for higher income • Acquisition of land, no use specified • Assist business w/ unresolved CDBG noncompliance findings 86
Applying Aggregate Standards • All activities obligated during program year • Categorize each activity as either jobs or goods/services! But meet both criteria! • Some job activities may be excluded 570.209 (b)(2)(v): • Unemployed • Homeless • Low-skill, LMI w/ clear advancement • Businesses in CT with ≥20% poverty • Neighborhood ≥70% LMI • CDFI serving predominantly LMI . . . 87
Page 2 and 3:
Welcome • HUD’s Office of Commu
Page 4 and 5:
Learning Objectives • Be familiar
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Agenda (cont) • Day 3 • Infrast
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ECONOMIC DEVELOPMENT STRATEGIES (TO
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Overview of Economic Development
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The Process Economic Analysis Evalu
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Economic Analysis • Assess qualit
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Strategy Options CDBG 108 Other Fed
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Implementation • Describe goals
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Summary: ED Strategies • Economic
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Topics • CDBG history background
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Primary Purpose • Develop viable
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“Companion” Programs to CDBG
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CDBG ED Project Decision Process 1.
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Typical CDBG-Funded ED Activities
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Eligible Activities • Wide variet
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Eligible Activities - ED Projects T
Page 36 and 37: Special Econ. Development • Comme
Page 38 and 39: Commercial Rehab • Limited types
Page 40 and 41: Special Activities by CBDOs • Typ
Page 42 and 43: Planning and Capacity Building •
Page 44 and 45: ACTIVITY: DETERMINING PROJECT ELIGI
Page 46 and 47: National Objectives 570.208 All CDB
Page 48 and 49: LMI: Area Benefit • Activity that
Page 50 and 51: Documenting Area Benefit • Bounda
Page 52 and 53: Job Training, Placement, or Support
Page 54 and 55: LMI: Housing Activities • Permane
Page 56 and 57: LMI: Job Creation & Retention • A
Page 58 and 59: Job Retention with LMI Benefit •
Page 60 and 61: Counting Jobs • Each business tra
Page 62 and 63: Counting Jobs • Count all jobs cr
Page 64 and 65: Documenting Job Creation • When
Page 66 and 67: Determining Income Status - Written
Page 68 and 69: Slum & Blight: Area Basis • Activ
Page 70 and 71: Slum & Blight: Spot Basis • Activ
Page 72 and 73: Urgent Need • Activities that all
Page 74 and 75: ACTIVITY: MEETING NATIONAL OBJECTIV
Page 76 and 77: Limitations on Job Relocation • J
Page 78 and 79: Faith-Based Organizations • Final
Page 80 and 81: 570.209 Public Benefit Standards
Page 82 and 83: Test at Two levels • Individual S
Page 84 and 85: Aggregate Standards • Create/reta
Page 88 and 89: Summary: CDBG Foundation • Three
Page 90 and 91: REVITALIZATION STRATEGY AREAS (TOOL
Page 92 and 93: Revitalization Strategies • Writt
Page 94 and 95: • Area must be: - Contiguous - Pr
Page 96 and 97: Assessment • Describe economic co
Page 98 and 99: Benchmarks • Must describe measur
Page 100 and 101: Review & Approval • Submitted wit
Page 102 and 103: SMALL BUSINESS DEVELOPMENT (TOOLKIT
Page 104 and 105: SMALL BUSINESS DEVELOPMENT 104
Page 106 and 107: What Is a Small Business? • Not u
Page 108 and 109: Technical Assistance • Business c
Page 110 and 111: Typical Training & TA Providers •
Page 112 and 113: Financial Assistance • Types of A
Page 114 and 115: MICROENTERPRISE ASSISTANCE 114
Page 116 and 117: Microenterprise Assistance • Fina
Page 118 and 119: National Objective • Limited Clie
Page 120 and 121: Key Steps In Setting Up Program •
Page 122 and 123: Key Steps • Design TA and trainin
Page 124 and 125: BUSINESS INCUBATORS 124
Page 126 and 127: Benefits of Incubators • Help red
Page 128 and 129: Financial Burden • Incubator is a
Page 130 and 131: Funding Incubator Construction •
Page 132 and 133: Evaluating Incubator Applications
Page 134 and 135: Summary: Incubators • TA is impor
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JOB TRAINING & OTHER PUBLIC SERVICE
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What Is Job Training? • Help unem
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Other ED Public Services • To sup
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Who Can Undertake Training? • Gra
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National Objective • Training as
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Key Steps • Conduct a needs asses
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Summary: Job Training • Job train
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LARGE-SCALE COMMERCIAL DEVELOPMENTS
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What Are Large-Scale Commercial Dev
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CDBG Roles • Financing to busines
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Special ED Activities • Acquisiti
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National Objective • Job creation
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Key Steps in Design • Determine i
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INFRASTRUCTURE (TOOLKIT CH 7) 162
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What Is Infrastructure? • Non-hou
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Privately Owned Utilities • Cover
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Ineligible Infrastructure Activitie
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Special Assessments (cont) • If a
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Special Assessments Are Not • Not
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National Objective (cont) • Low/M
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Key Steps • Decide if want to tar
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Summary: Infrastructure • Public
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Topics • Financing options • Re
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Methods of Financing • Grants •
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Equity • Contribution of cash or
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Debt Options • Direct loans - Sub
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Contingent Payment Loans • “Def
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REVOLVING LOAN FUNDS 190
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Typical Borrowers • Existing busi
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Steps: Market & Client Scan • Con
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Step: Select Administrative Entity
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CDFIs 198
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Definition of a CDFI • Specialize
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CDFIs & CDBG • Job creation/reten
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UNDERWRITING (TOOLKIT CH 9) 204
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Underwriting Defined • Underwriti
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HUD Appropriateness Criteria • Tw
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Risks: Inflated costs Understated c
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Necessity of Public Funding • Sho
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Reasonable Return & Terms • Loan
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Public Benefit Test • Applies to
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Public Benefits: Aggregate Portfoli
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Two Primary Types of ED Lending •
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Underwriting Business Loans • Abi
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Debt Coverage Ratio Guidelines •
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What Is Value? Fair market value Li
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General Guidelines: LTV • Commerc
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Commitment • Commitment by owners
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Management • Must be experienced
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Small Startups • Likely to have a
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Underwriting Real Estate Loans •
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Collateral • Use Loan-to-Value Ra
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Experience • Be certain developme
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Summary of Appropriateness • Good
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History of Appropriateness Criteria
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Risks: Inflated costs Understated c
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Gap Analysis • Financing gap •
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Rate of Return + Reasonable cost -
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Project Feasibility & Return • Te
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Summary: Underwriting • CDBG has:
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SECTION 108 (TOOLKIT CH 10) 256
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SECTION 108 OVERVIEW 258
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How much can communities borrow?
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Advantages of 108 • Leverage - Ac
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Eligible Activities • Acquisition
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Program Requirements • National o
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Section 108 Guarantee HUD Guarantee
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Players & Roles • Community • H
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Risks of Using Section 108 • Loan
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Risk Management • Avoid construct
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• Covers early payment Defeasance
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Overview of Process • Screen proj
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Application Types • Generic Appli
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Citizen Participation • Provide a
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HUD Review • Review by area offic
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Disbursing & Servicing • Custodia
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RELATED INITIATIVES 288
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Brownfields & BEDI • Brownfields:
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PROGRAM ADMINISTRATION (TOOLKIT CH
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PROGRAM DESIGN & ADMINISTRATION 294
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Typical Roles in ED Programs • In
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Policies & Procedures • Recommend
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Marketing • Develop a rollout str
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Program-Wide Records • Consolidat
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Financial Records • Bank records,
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Subrecipient • Subrecipient appli
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HUD REPORTING 308
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Objectives • Suitable living envi
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Indicators & Reporting • Grantees
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Job Reporting (cont) • For job re
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Businesses Assisted Reporting (cont
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MEASURING ED PROGRAM SUCCESS 318
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Monitoring • Grantees are respons
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Monitoring Actions • Technical As
Page 324 and 325:
Summary: Administration • CDBG ED
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Wrap Up • Final questions • Eva
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HUD's Office of Community Planning and

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