Redevelopment Fund Program

Georgia Department of Community Affairs, Community Development Block Grant Program

Summary:

The RDF provides local governments access to flexible financial assistance to help them implement projects that cannot be undertaken with the usual public sector grant and loan programs. The RDF finances locally initiated public/private partnerships to leverage investments in commercial, downtown, industrial redevelopment, and revitalization projects that may not proceed otherwise. Unlike other DCA CDBG programs, the RDF uses the CDBG national objective of “eliminating slums or blight.” As a result, many smaller scale projects (in downtown areas or blighted industrial areas) may be competitive for RDF financing.

DCA sets aside $1,500,000 or 3%, whichever is greater, from each federal fiscal year's allocation to the DCA for the CDBG Program.

Eligible Recipients:

Local Government

Eligible Recipients Detail:

Eligible applicants include units of general-purpose local government that are not metropolitan cities, urban counties and other units of government eligible to participate in HUD's urban counties or metropolitan cities program. It should also be emphasized, that to be eligible as a sub-recipient of RDF funding, neither the business or principal(s) should appear on the Georgia Department of Revenue's delinquent tax list.

Eligible Purpose:

General Infrastructure; Last Mile Connectivity; Building Connectivity

Eligible Purpose Detail:

Eligible purposes include:

-Address “slums and blight” specific criteria.
-Grant assistance to local governments for public facilities.
-Direct loan assistance to private, for-profit businesses tofinance various fixed assets (i.e. land, building, machinery,and equipment).

Funding Match/Terms:

Interest rates for loan projects are below market, generally fixed at 3%. Repayment period is typically five to fifteen years, depending on the asset financed. Although there is no match requirement, in order to receive bonus points consideration, there should be at least one dollar in other funds committed for each dollar in Redevelopment Funds requested. The source of the leveraged funds can be from local, state, or federal government or private sources.