1. Community Development Overview WE, the North Carolina Department of Commerce’s Community Development Division, will assist communities throughout the State in creating a more prosperous TOMORROW…by investing TODAY! Appalachian Regional Commission (ARC), Division of Community Assistance (DCA), and the Office of Rural Development (ORD) Mr. Henry McKoy Assistant Secretary

2. Appalachian Regional Commission (ARC) Federal grant program established by Congress in 1965 to improve the economic conditions of Appalachian residents Provides support to 29 counties in Western North Carolina Each year ARC provides funding for projects throughout the Appalachian Region of North Carolina. These projects: Improve educational opportunities and workforce skills. Improve infrastructure for community and economic development. Increase civic and leadership capacity. Increase entrepreneurial opportunities. Improve health care resources. 2010 Program Summary Funded 26 Projects - $4,983,281 in ARC investment  Infrastructure – 9 projects  Access Road – 1 project  Green/Energy -3 projects  Education - 3 project  Health – 4 projects  Entrepreneurship – 2 projects  Capacity Building/TA – 4 projects

3. Division of Community Assistance (DCA) Provides financial and human resource investments to North Carolina counties, municipalities, and organizations through strategic and infrastructure planning, growth management, housing, economic and community development. Programs NC’s Small Cities Community Development Block Grant (CDBG) Program  Administer $45 million in CDBG funds annually allocated from HUD  Invests in non-entitlement local government projects in infrastructure, water and sewer, affordable housing rehabilitation, small business and entrepreneurship, and economic development  100 communities served/250 technical assistance visits (FY 2010-11) Office of Urban Development  Administer Small Town/Main Street programs  Rural Downtown Development, Revitalization & Historic Preservation  106 communities served/1143 jobs/$10 mil invested (FY 2010-11) Community Assistance Planning  Provide planning Technical Assistance to municipalities all across NC  145 communities served/75 counties served (FY 2010-11)

4. Office of Rural Development (ORD) ORD seeks to address the economic and community development needs of rural counties and communities through targeted economic development programming and projects, collaboration with other Commerce division programs and various statewide initiatives. Programs 21 st Century Communities  Commerce-wide division collaboration (Marketing & Tourism; Policy; Workforce; Community Development; International Business; Business and Industry) to work with distressed County governments for 2 years to create strategic community development plans  9 active counties served (FY 2010-11)/35 counties served since 2001 N.C. Certified Retirement Communities  Initiative to prepare NC communities to attract baby boomer retirees Talent Enhancement Demonstration Program  Pilot program to assist small local governments in building the capacity to self-administer federal community grant funds and projects (East Carolina University is training partner)

5. Community Development Summary Appalachian Regional Commission (ARC) Division of Community Assistance (DCA) Office of Rural Development (ORD)  Thousands of Jobs created/retained/millions of private dollars leveraged  Target Low-to-Moderate Income and highly distressed areas  Actively partnering with all 17 Council of Governments  Over 700 active projects across NC  Over $589 million in community investments across NC  516 CDBG Eligible Communities  97 Counties invested  600 technical assistance visits (2010)  366 Communities served (2010)  60 Growth Management Projects (2010)  52 Planning Projects (2010)  36 regional training sessions and workshops (2010)  20 Economic Market Studies (2010)