Office of the State Director Wally Hedrick Boise, Idaho Housing Programs Roni Atkins, Director Business Programs Daryl Moser, Director Community Programs Dave Flesher, Director IRP OCTOBER MEETING OCTOBER 8,

USDA, RURAL DEVELOPMENT USDA, Rural Development “the leading advocate for rural America at the federal level.” Our mission: increase economic opportunity and improve the quality of life in rural America. Investment in Idaho 2013: over $319 million in rural Idaho through our housing, infrastructure/community facilities & business programs Rural Development Programs  Business Programs  Housing Programs  Community Programs

WATER & WASTEWATER (WEP) LOAN AND GRANT PROGRAM Provides funds to Public bodies (cities, counties, districts),Non- profit (homeowner associations) & Indian tribes in rural areas under 10,000 population Construct, enlarge, extend, and/or improve water or sewer systems No Davis Bacon or Buy American Requirements FY 2014 Funding - $13,374,000 Loan; $6,336,000 Grant (Including $2,642,509 from 2014 Farm Bill)

WEP LOAN AND GRANT ELIGIBILITY REQUIREMENTS Unable to get credit elsewhere at reasonable rates and terms Cities -must pass bond election for the amount of the debt, or if unable to pass bond, will accept judicial conformation if project is to correct a health or sanitary standard violation Associations –majority of member approval and repayment ability Interest rate and grant based on MHI of the community using 5-year (‘06-’10 -American Community Survey data) Regular Grants - Less than $39,648 and Health or Sanitary Standard Violation = up to 75%; Regular Grants - Between $39,648 and $49,651 = up to 45%; Greater than $49,561 = 0; Similar system costs $42/user/month + No “grant only” for regular program – must be with an RD loan

WEP RATES AND TERMS Rates –fixed (2.375% % - 10/1/14 – 12/31/14) depends on service area MHI and if there is a Health or Sanitary Standard Violation. Updated quarterly. Terms –Revenue bond - 40 years if w/ RD grant years if loan only GO Bond or LID – 30 years maximum allowed per State Law Security - Cities & Districts - Revenue Bond or LID - HOA’s - mortgage /deed of trust and a promissory note

OTHER WEP PROGRAMS Pre-development Planning Grant available state-wide to low income communities. $74,000 + for Idaho in 2014 SEARCH Planning Grant available state-wide to low income communities. $74,000 +for Idaho in 2014 Emergency Community Water Assistance Grants (ECWAG) – natural disasters, or significant decline in quality and/or quantity of water as result of an emergency (limit of $150,000 or $500,000). Must be approved by June 30 th of each year Native American Set-Aside Grant program ($2,000,000 limit per project)

GUARANTEED WEP LOANS Local bank makes the loan, USDA-RD guarantees it. Can also combine with a Direct Loan (but not a grant). We can finance water or sewer system upgrades for part-time and higher end homes using a Guaranteed Loan. Much less paperwork and oversight than our Direct Loan and Grant program if it is Guaranteed only. If made with a Direct Loan (to buy down the interest rate) – Agency treats entire project as a direct project.

COMMUNITY FACILITY DIRECT & GUARANTEED LOAN & GRANT PROGRAM To develop essential public community facilities in rural areas up to 20,000 population Public bodies (cities, counties, special purpose districts) Nonprofit organizations – broad based ownership and controlled by members of the local community Indian tribes FY 2014 Funding - $18,850,000 Loan, $108,000 Grant

Since 2001, over $60 million in Assistance provided to Rural Idaho Communities

ELIGIBLE APPLICANTS – RATES & TERMS Unable to get credit elsewhere at reasonable rates and terms Legal authority to incur debt, own, operate and maintain facility Cities -must pass bond election for the amount of the debt Hospitals – Revenue Bond or a GO Bond if a very large project Nonprofits –majority of member approval and repayment ability Term - useful life of the facility – typically 30 years or less Rates – Fixed (4.00)% Effective 10/1/14 – 12/31/14 - Updated Quarterly Security – Cities - General Obligation or LID Bonds Hospitals – Revenue Bond, GO Bond, or note and UCC-1 if small Nonprofits – mortgage/deed of trust and a promissory note Grant funds are very limited – $108,000 in FY 2014

ECONOMIC IMPACT INITIATIVE (EII) CF GRANTS Special Set-Aside of CF Grant funds: $64,000 in FY 2014 “Not Employed Rate” that exceeds 19.5% (Dept. of Labor) Must also meet regular CF Grant eligibility requirements Some Idaho Communities are eligible this FY.

COMMUNITY PROGRAM CONTACTS THROUGHOUT IDAHO North Idaho, Coeur d’Alene (208) , serving: Benewah, Bonner, Boundary, Clearwater, Idaho, Kootenai, Latah, Lewis, Nez Perce and Shoshone counties ( Howard Lunderstadt x 126; John Lynn x 122; Shirley Quakkelaar x 116) ; Western Idaho, Boise (208) , Serving: Ada, Adams, Boise, Canyon, Gem, Owyhee, Payette, Valley and Washington counties (Carol Garrison). South Central Idaho, Twin Falls (208) , Serving: Blaine, Camas, Cassia, Elmore, Gooding, Jerome, Lincoln, Minidoka and Twin Falls counties (Rob Lanford x 118, Diane Shigihara x114). ; Eastern Idaho, Blackfoot (208) , serving: Bannock, Bear Lake, Bingham, Bonneville, Butte, Caribou, Clark, Custer, Franklin, Fremont, Jefferson, Lemhi, Madison, Oneida, Power and Teton counties (Julie Neff x 115; Patricia Casella x101). ;

David A. Flesher Director, Community Programs 9173 W. Barnes Dr., Suite A1 Boise, Idaho (P) (Fax) B. Heath Price Community Programs Specialist Noel LaRoque, P.E. Civil Engineer Kent Erickson, P.E. Civil Engineer STATE OFFICE CP CONTACTS Jill Marx Community Programs Technician

USDA, RURAL DEVELOPMENT BUSINESS PROGRAMS Rural Business Enterprise Grant (RBEG)

RURAL BUSINESS ENTERPRISE GRANT (RBEG) PURPOSE: Support the Development of Small & Emerging Private Business Enterprises in Rural Areas (< 50,000 population). PURPOSE ACHIEVED BY: grants made to public bodies and non-profit organizations (grants are not made directly to the private business) for:  Technical assistance, e.g., feasibility study.  Training in connection with technical assistance.  Acquisition of machinery & equipment for use by private business.  Utility and service extensions, such as water lines or phone lines.  Establishment or funding of revolving loan programs.

RBEG: HISTORICAL IDAHO INVESTMENT Annual Idaho Allocation: ’14: $201,000 (’13: $181,000) ’13: Idaho approved 13 projects for $181,000 avg. grant (Idaho allocation): $13,900 Since ’03: over $4.1 million in grants awarded 199 projects funded Agency investment has leveraged additional investment of $7.9 million Estimated jobs saved/created: 3,730

Serves rural communities where broadband service is least likely to be available, but where it can make a tremendous difference in the quality of life for citizens. The projects funded by these grants will help rural residents tap into the enormous potential of the Internet. Grant funds may be used to for: o Construction, acquisition, or leasing (for a limited period) of facilities, including spectrum, land or buildings., used to deploy service at the Broadband Grant Speed to all residential and business customers located within the Proposed Funded Service Area (PFSA) and all participating Critical Community Facilities. All buildings constructed with grant funds must reside on property owned by the awardee. o The improvement, expansion, construction, or acquisition of a Community Center and provision of up to 10 Computer Access Points. Grant funds for the Community Center is limited to 10% of the requested grant amount. o The cost of providing the necessary bandwidth for service free of charge to the Critical Community Facilities for 2 years 18 The Community Connect Grant Program

The Distance Learning and Telemedicine (DLT) Grant Program Distance learning means a curriculum delivered via telecommunications and stresses the connection of students and teachers at remote sites. (Idaho just had 2 successful applications that totaled over $950,000!) Telemedicine means the delivery of health care from medical professionals at one site to patients at other sites via telecommunications. Telemedicine shows benefit to rural residents either in reduced travel or access to services. Eligible Applicants - Corporation or a partnership, Tribal nation or organization, State or local unit of government, Consortium; or other legal entity. For or not-for profit able to contract with the US Government.

DLT Grant Program Typical Projects Video-conferencing is the most common application for distance learning Telemedicine: Visiting nurse links from patient homes to health professionals elsewhere, Tele-radiology, Tele-dentistry, Tele-pharmacy, Virtual ICU etc… RUS Telecommunications GFR Contact Information Joe D. Bradley, General Field Representative DLT Program Website Community Connect website 20

USDA, RURAL DEVELOPMENT Questions? Idaho Rural Development Website: