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Small Cities Development Program (SCDP)

Grant to Minnesota Low-Population Counties and
Municipalities for Housing and Community Development

Agency Type:

State

Funding Source:

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United States Department of Housing and Urban Development (HUD) - Minnesota Department of Employment And Economic Development (DEED)

LOI Date:

11/09/17

Deadline Date:

02/22/18 4:30 PM Receipt

Description:

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Grants to Minnesota counties and municipalities with small populations for community and economic development activities benefitting low- and moderate-income households. The preliminary application is due November 9. Funding will be used to address the need for safe, decent, affordable housing, economic development, and adequate public facilities.

Background:

The Community Development Block Grant (CDBG) Program is a federal program that provides funding for housing, community and economic development. In 1974, Congress passed the Housing and Community Development Act, Title I, which authorized the development of the CDBG Program. The Program, administered by the U.S. Department of Housing and Urban Development (HUD), consists of two components, an entitlement program that provides funding directly to urban (entitlement) areas and a Small Cities Development Program (SCDP) which provides funding to non-entitlement communities.

The Minnesota Department of Employment and Economic Development (DEED) is responsible for state administration of the CDBG program for non-entitlement communities statewide, per Minnesota Administrative Rules, Chapter 4300, Community Development Block Grants. This Program Concept is based on the rules outlined in Chapter 4300.

Program Objective:

All SCDP funded activities are intended to support community development activities that:

-Encourage and assist local governments to develop comprehensive economic development strategies which promote viable communities by providing economic opportunities for Low-to-Moderate Income Households;

-Encourage and assist local governments to develop comprehensive public facility improvement strategies in conjunction with Rural Development (RD), the Public Facility Authority (PFA), MN Pollution Control Agency (MPCA), etc., to make rural communities more viable. These actions must also primarily benefit Low-to-Moderate Income Households;

-Develop and implement strategies, which facilitate the coordination of CDBG Small Cities funding with other federal/state/local community development resources.

These community development activities must meet one of the following Federal Objectives:

-Benefit to low and moderate income (LMI) persons/households. LMI is defined as households whose total income from all members does not exceed 80% of the County Median Income, adjusted for household size as determined by HUD annually. The general SCDP activities that use the LMI federal objective are owner-occupied and rental housing rehabilitation, public facilities, assessment abatement, and homeownership assistance.

-Prevent or eliminate slum and blight conditions; generally the SCDP activity associated with this national objective is commercial rehabilitation.

-Alleviate urgent community development needs caused by conditions which pose a serious and immediate threat to the health or welfare of the community and where other financial resources are not available. The activities that meet this federal objective are generally associated with disaster recovery where an LMI federal objective cannot be satisfied.

Eligible Projects:

State program rules subdivide grant funds into three general categories:

1) Housing Grants - Funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. In all cases, housing funds must benefit low- and moderate-income persons.

2) Public Facility Grants - Funds are granted for wastewater treatment projects, including collection systems and treatment plants; wells, water towers and distribution systems.

3) Comprehensive Grants - Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building, rehabilitation related to facade improvements, code violations, and health and safety issues. The most common economic development activity is rehabilitation of local commercial districts.

Types of Applications:

The Single Purpose Application is used for housing projects which include one or more housing activities designed to increase the supply or quality of dwellings suited for the occupancy of the individuals and families; or public facilities projects which include one or more activities designed to construct, reconstruct, or install buildings or infrastructure which serve a community or neighborhood area. Single purpose public facilities would include streetscapes and public aesthetic amenities that are part of a larger renewal or beautification plan.

The Comprehensive Application is used for projects that include a combination of at least two interrelated activities which are designed to address community development needs, which by their nature must be carried out in a coordinated manner and/or require a coordination of housing, public facilities, or community development/revitalization activities. A comprehensive application must contain at least one housing activity and at least one non-housing activity. Each proposed activity must provide a reasonable proportion of significance to the overall project. For multi-community applications, each community’s proposed activities must meet the definition of a comprehensive project in order for multi-community applications to be eligible as a comprehensive project. These projects must be designed to benefit a defined geographical area.

Eligible Use of Funds:

Funds from the Small Cities Development Program can be used to address the following activities:
-Housing Rehabilitation. This includes owner-occupied, single family, rental/multi-family units, and conversion
-Commercial Rehabilitation
-Public Facility Improvements: (i.e., water systems, sewer systems, drainage facility construction or improvements, etc.)
-Community Center/Facility
-Streetscape
-Public Aesthetic Amenities
-Assessment Abatement (restricted to households at 50% or lower of county median only)
-Acquisition/Rehabilitation (generally associated with disaster recovery activities)
-Acquisition/Demolition (generally associated with disaster recovery activities)
-Relocation (generally associated with disaster recovery activities)
-Other (see SCDP A-Z Guide attached below and consult with SCDP before considering)

GrantWatch ID#:

GrantWatch ID#: 175506

Estimated Size of Grant:

The maximum grant award for a Single Purpose project is $600,000.

The maximum grant award for a Comprehensive project is $1.4 million, and each activity within the application is limited to a maximum amount of $600,000 which includes administrative dollars.

Term of Contract:

The timeline to complete projects is normally 30 months, depending on project size and scope.

Additional Eligibility Criteria:

Eligible applicants to the Small Cities Development Program (SCDP) are cities and townships with populations under 50,000 and counties with populations under 200,000.

Applicants to the SCDP must not receive Community Development Block Grant (CDBG) funds directly as an Entitlement City or Urban County. Indian tribal governments, which can receive funds directly from HUD, are ineligible.

The following are ineligible for SCDP funding: Counties of Anoka, Dakota, Hennepin, Ramsey, St. Louis and Washington (including all units of local government within these counties) and Cities of St. Cloud, Mankato, North Mankato, Moorhead and Rochester.

In addition:
-Eligible applicants may apply on behalf of other, eligible applicants. See “Joint Community Applications” in the Applying to the SCDP section of the application Guide.
-Each applicant shall be included in no more than one application per year (for instance, if a county applied for funds, and a city within the county applied for funds, the county application must exclude the city applying separately);
-Each applicant can receive no more than one SCDP grant per year, not including an economic development grant;
-Applicants must be in substantial compliance with all applicable State and Federal laws, regulations and Executive Orders that pertain to the Small Cities Development Program;
-Applicants and/or administrators must not have unresolved monitoring or audit findings from a previously-funded SCDP project;
-Applicants must be making substantial progress on a previously-funded project(s) and be timely in their annual and post-closeout reporting.

Applicants may not use SCDP funds or Program Income for professional services for the preparation of application materials.

Pre-Application Information:

The amount of other funds required varies and is contingent upon the project type. However, the amount of leveraged resources plays a significant role in determining whether the project is funded.

For more information about eligible activities and program areas, go to the “Federal Objectives for Applicants” section of the SCDP A-Z Guide, available in the Supporting Documents.

Prior to the preliminary proposal and application deadlines, SCDP staff is available to provide technical assistance to questions regarding the application, program regulations, and program terms. These questions should be directed to the DEED representative assigned to the region where the project is proposed.

Preliminary Proposals must be received by DEED on or before 4:30 PM, Thursday November 9, 2017.

Applications must be received by DEED on or before 4:30 PM on Thursday, February 22, 2018.

SCDP Application Time Frames:
-June 2017: SCDP Application Packet available
-November 9, 2017, 4:30 PM: Deadline date for Preliminary Proposal
-December 14, 2017: Preliminary Proposal determination provided to applicants
-February 22, 2018, 4:30 PM: Deadline date for SCDP Applications
-June 2018: Awards Announced

Environmental Review Training:
https://www.hudexchange.info/programs/environmental-review/environmental-review-training/

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Region 1 (Kittson, Marshall, Norman, Pennington, Polk, Red Lake, and Roseau Counties)
Andrew Barbes
651-259-7460 / 800-657-3858
andrew.barbes@state.mn.us

Region 2 (Beltrami, Clearwater, Hubbard, Lake of the Woods, and Mahnomen Counties)

Andrew Barbes
651-259-7460 / 800-657-3858
andrew.barbes@state.mn.us

Region 3 (Aitkin, Carlton, Cook, Itasca, Koochiching, and Lake Counties)
Hillary Friend
651-259-7504 / 800-657-3858
hillary.friend@state.mn.us

Region 4 (Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and Wilkin Counties)
Natasha Kukowski
651-259-7461 / 800-657-3858
natasha.kukowski@state.mn.us

Region 5 (Cass, Crow Wing, Morrison, Todd, and Wadena Counties)
Andrew Barbes
651-259-7460 / 800-657-3858
andrew.barbes@state.mn.us

Region 6E (Kandiyohi, McLeod, Meeker, and Renville Counties)
Patrick Armon
651-259-7455 / 800-657-3858
patrick.armon@state.mn.us

Region 6W (Big Stone, Chippewa, Lac Qui Parle, Swift, and Yellow Medicine Counties)
Natasha Kukowski
651-259-7461 / 800-657-3858
natasha.kukowski@state.mn.us

Region 7E (Chisago, Isanti, Kanabec, Mille Lacs, and Pine Counties)
Hillary Friend
651-259-7504 / 800-657-3858
hillary.friend@state.mn.us

Region 7W (Benton, Sherburne, Stearns, and Wright Counties)
Andrew Barbes
651-259-7460 / 800-657-3858
andrew.barbes@state.mn.us

Region 8 (Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, and Rock Counties)
Natasha Kukowski
651-259-7461 / 800-657-3858
natasha.kukowski@state.mn.us

Region 9 *Blue Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Waseca, and Watonwan Counties)
Patrick Armon
651-259-7455 / 800-657-3858
patrick.armon@state.mn.us

Region 10 (Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona Counties)
Patrick Armon
651-259-7455 / 800-657-3858
patrick.armon@state.mn.us

Region 11 (Carver and Scott Counties)
Hillary Friend
651-259-7504 / 800-657-3858
hillary.friend@state.mn.us

Submit application materials to:

Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101-1351
Attn. Community Finance Division, SCDP

URL for Full Text (RFP):

Geographic Focus:

USA: Minnesota: Statewide, excluding the Counties of Anoka, Dakota, Hennepin, Ramsey, St. Louis and Washington, and Cities of St. Cloud, Mankato, North Mankato, Moorhead, and Rochester