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

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