|
|
RCAP Revolving Loan Fund
|
|
Link:RLF Brochure
|
|
Terms
|
Up to 10 years to repay
|
Max. $100,000
Current terms and conditions for such loans include maturity of 10 years or less and interest rates of:
* 4.9% for loans of 24 months or less
* 5.5% for loans of 25-60 months
* 5.9% of loans of 61-120 months
All loans have a 1% origination fee.
|
|
Description
|
The Rural Community Assistance Partnership (RCAP) is looking to assist water and wastewater systems in low-income or rural areas with small, low-interest loans up to $100,000.
The RCAP Revolving Loan Fund (RCAP-RLF) was established with a grant from the Rural Utilities Service (U.S.D.A., Rural Development) to provide short-term financing to eligible applicants for pre-development costs associated with proposed water and wastewater projects. RCAP-RLF funds can also be used with existing water or wastewater systems and the short-term costs incurred for replacement equipment, small scale extension of services, or other small capital projects that are not a part of regular operations and maintenance.
To be eligible to receive an RCAP-RLF loan, projects must serve rural areas that are not located within the boundaries of a municipality with a population of 10,000 or greater.
Eligible applicants would include public bodies including towns, counties, districts, authorities, Native American tribes, and utilities that are operated by not-for-profit corporations such as water associations and water supply cooperatives.
|
|
Â
|
|
USDA Rural Development
|
|
Link: Michigan Rural Development Home Page
|
|
Terms
|
Up to 40 years to repay
|
The RD interest rates for the Quarter beginning April 1, 2008:
Poverty: 4.50 Percent
Intermediate: 4.625 Percent
Market: 4.750 Percent
|
|
Description
|
Water and Environmental Programs provides loans, grants, and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas, cities and towns with populations of 10,000 or less.
Public bodies, non-profit organizations and recognized Indian tribes may qualify for assistance. WEP also makes grants to nonprofit organizations to provide technical assistance with their water, wastewater, and solid waste problems.
|
|
|
|
Â
|
|
Michigan DEQ - Clean Water Fund
|
|
Terms
|
|
|
|
Description
|
The purpose of the Clean Water Fund is to implement the DEQ’s surface water quality monitoring plan and to implement water pollution controls.
Surface Water Quality Monitoring Projects
The legislation for the Clean Water Fund stated that the highest priority for the Fund would be the monitoring strategy; therefore, $45 million of the $90 million was set aside to implement the monitoring strategy. Implementation of the monitoring strategy is being done using both grants and direct contracts to vendors. For more information:
Water Pollution Control Projects
The other half of the Clean Water Fund is intended to implement water pollution control activities, which, under the Clean Water Fund administrative rules, were identified as the following:
|
|
Michigan DEQ - State Revolving Fund
|
|
Terms
|
|
|
|
Description
|
Purpose:
The State Revolving Fund (SRF) provides low-interest loans for water pollution control projects.
Goals of the Program:
To assist municipalities in funding wastewater treatment system improvements, storm water treatment projects, and nonpoint pollution control projects.
Eligibility:
Any city, village, township, county, or related authority as defined in Section 5301(h) of Part 53, Act 451 of the Public Acts of 1994.
Criteria:
The requirement for this program is identified in Part 53, Act 451 of the Public Acts of 1994, as amended, as well as Administrative Rules (R323.951- R323.965). Certain federal requirements also apply and are spelled out in Title VI of the federal Clean Water Act (P.L. 92-500, as amended). Primarily, applicants must present environmentally sound, cost effective water pollution control projects which are drawn from Project Priority Lists (PPLs) administered by the Environmental Science and Services Division.
Application Process:
- The municipality is first ranked on one of the PPLs by submitting a project plan to the Department of Environmental Quality (DEQ).
- The municipality is included in the annual fundable range according to priority ranking and the level of fund lending capacity.
- The municipality submits plans and specifications for DEQ review.
- The municipality submits an application for assistance in accordance with the quarterly funding schedule.
- The municipality receives financial assistance upon satisfying program requirements through the application process.
Deadlines:
The deadline for submission of a project plan to be included on the annual PPL is July 1. The deadline for the application for financial assistance is negotiated for each project dependent upon which quarter they will receive a binding commitment.
Timelines:
The time period may run approximately six months to several years from the time the project plan is submitted to receipt of assistance. From the time of actual application to receipt of assistance, the process may take as little as three months. Much is dependent upon available funds and the quality of municipal submissions.
Dollar Amount(s) Available (Min or Max):
It is estimated as much as $300-350 million in loan funds will be available annually.
Required Match:
No local match is required.
|
|
Recent Award List:
In March 2004, the city of Lansing received $13,275,000 for ongoing sewer separation work as part of its Long Term Combined Sewer Over Control Program. In June 2005, the village of Suttons Bay received a $2,200,000 loan for improvements and expansion of its wastewater treatment facility.
Â
|
|
Michigan DEQ - Drinking Water Revolving Fund
|
|
Terms
|
|
Michigan's Water Pollution Control Revolving Fund, better known as the State Revolving Fund (SRF), is a low 2.5% interest loan financing program that assists qualified local municipalities with the construction of needed water pollution control facilities.
It is estimated that approximately $100 million dollars in loan funds will be available annually.
|
|
Description
|
Purpose:
The Drinking Water Revolving Fund provides low-interest loans to water suppliers to finance the construction (including upgrades/expansions) of public drinking water systems.
Goals of the Program:
To assist water suppliers in providing safe/high quality drinking water.
Eligibility:
Any water supplier who owns and operates a community or non-community (if operated as a non-profit entity) water supply.
Criteria:
The requirements for this program are identified in Part 54, Act 451 of the Public Acts of 1994, as amended. Certain federal requirements may also apply and are spelled out in Title XIV of the Public Health Services Act (commonly referred to as the Safe Drinking Water Act). Primarily, applicants must present environmentally sound water supply projects which are drawn from a Project Priority List (PPL) administered by the Environmental Science and Services Division.
Application Process:
- The water supplier is first ranked on the project priority list by submitting a project plan to the Department of Environmental Quality (DEQ).
- The water supplier is included in the annual fundable range according to priority ranking and the level of fund lending capacity. The water supplier submits plans and specifications for DEQ review.
- The water supplier submits an application for assistance in accordance with the quarterly funding schedule.
- The water supplier receives financial assistance upon satisfying program requirements through the application process.
Deadlines:
The deadline for submission of a project plan to be included on the annual PPL is May 1. The deadline for the application for financial assistance is negotiated for each project dependent upon which quarter they will receive a binding commitment.
Timelines:
The time period may run approximately eight months to several years from the time the project plan is submitted to receipt of assistance. From the time of actual application to receipt of assistance, the process may take as little as three months. Much is dependent upon available funds and the quality of municipal submissions.
Dollar Amount(s) Available (Min or Max):
It is estimated that approximately $100 million dollars in loan funds will be available annually.
Required Match:
No local match is required.
|
|
Recent Award List:
In September 2005, Shiawassee County received $850,000 to upgrade the Village of Byron’s water treatment plant for the removal of Arsenic and for the rehabilitation and upgrade of it storage tank and distribution system. In June 2005, Bay City received a $6 million loan for improvements to its water treatment plant.
Â
|
|
Michigan DEQ- Brownfield Redevelopment Grants and Loans
CMI Brownfield Redevelopment Loans and
Revitalization Revolving Loans
|
|
Terms
|
|
|
|
Description
|
Purpose:
CMI Brownfield Redevelopment Loans (CMIBRL) and Revitalization Revolving Loans (RRL) are designed to support the redevelopment of brownfield properties by providing low-interest loans to local units of government and other public bodies to investigate and remediate sites of known or suspected environmental contamination.
Goals of the Program:
To promote the economic redevelopment and safe reuse of abandoned, vacant, or underutilized brownfield properties where contamination is known to exist or believed to have occurred based on current or historic use.
Criteria:
A proposed project must have economic development potential. A municipality must pledge its full faith and credit to secure the loan. When the Brownfield Redevelopment Authority (BRA) is the applicant, the municipality under which the BRA was formed, must make this pledge. The Michigan Department of Treasury will approve the applicant’s ability to incur the debt. Loans are offered at an interest rate of no more than 50 percent of prime. Currently the interest rate is set at 2%, simple interest. There are no payments or interest due for the first five years after a loan is awarded. Annual payments begin in the fifth year of the loan. The full amount must be repaid within 15 years of the loan award. This arrangement provides an excellent opportunity for a community, or the BRA, to use tax incremental financing under the provisions of the Brownfield Redevelopment Financing Act, 1996 PA 381, as amended, to capture future taxes generated from the redevelopment of the property, to repay the loan. Often, through this approach, a community is able to capture additional tax dollars after having repaid their loan, to use for future brownfield redevelopment activities in their communities.
Deadlines:
Applications are accepted on a continuing basis.
Timelines:
The review time from the date an application is received until a decision by the Director is made is usually four months.
Eligibility:
Any county, city, township, village, BRA, or other authority or public body created pursuant to state law may apply for a loan. Eligible activities include environmental investigations and assessments, interim response activities, and in some cases demolition. Due care response activities are eligible under the CMIBRL funding but are not eligible for RRL funds. Only one project may be awarded to an applicant during any fiscal year.
Dollar Amount(s) Available (Min or Max):
Maximum loan amount is $1 Million per project.
Required Match:
No local match is required.
|
|
Recent Awards/Example Projects:
Click here for a list of recently awarded Brownfield grant and loan projects.
|
|
Michigan DEQ - Brownfield Redevelopment Grants and Loans
CMI Brownfield Redevelopment Grants (CMIBRG) and
Site Reclamation Program Grants (SRG)
|
|
Terms
|
|
|
|
Description
|
Purpose:
Brownfield Redevelopment and Site Reclamation Grants provide funding to local units of government and other public bodies to investigate and remediate known sites of environmental contamination, which will be used for identified economic redevelopment projects.
Goals of the Program:
To ensure safe reuse of abandoned, vacant, or underutilized properties that are known to be contaminated, and to promote redevelopment of brownfields.
Criteria:
A proposed project must result in economic benefit for the community through job creation, private investment, and/or property tax increase. The property must meet the definition of a facility under Part 201 of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. Grant recipients are required to sign a grant agreement prior to commencement of grant eligible work.
Eligibility:
Any county, city, village, township, Brownfield Redevelopment Authority, or other authority or public body created pursuant to state law may apply for a grant. Eligible activities include environmental investigations and assessments, interim response, and due care response activities necessary for the proposed development. Only one project may be awarded to an applicant during any fiscal year. A liable party may not profit from the expenditure of state funds nor be relieved of responsibility for environmental response activities.
Deadlines:
Applications are accepted on a continuing basis.
Timelines:
The review time from the date an application is received until a decision by the Director is made is usually four months.
Dollar Amount(s) Available (Min or Max):
Maximum grant award is $1 million dollars per project
Required Match:
No local match is required.
|
|
Recent Awards/Example Projects:
Click here for a list of recently awarded Brownfield grant and loan projects.
|
|
Michigan DEQ - Failing On-site Septic Systems
|
|
Terms
|
|
|
|
Description
|
Purpose:
To provide funding to identify and correct failing on-site septic systems.
Goals:
This funding source provided two types of projects: 1) projects to identify failing on-site septic systems and 2) projects to correct failing on-site septic systems. Identification projects included conducting site-by-site surveys and monitoring. Correction projects included installing cluster systems (which are centrally located septage treatment systems that serve a small group of homes or businesses), or connecting residences to a nearby wastewater treatment plan if capacity is available to treat the waste.
Criteria:
- Anticipated water quality benefit in relation to the costs.
- Ability of the applicant to carry out the project.
- Expected long-term water quality improvement or protection.
- Consistency with remedial action plans, if applicable, or the approved watershed management plan.
- Project evaluation activities.
- Commitment for financial and technical assistance by project partners.
Eligibility:
Eligible agencies included county or local units of government and non-profit agencies.
Deadlines:
N/A. No additional funding exists for this program.
Timelines:
Applicants had approximately 90 days to respond to the request for proposals.
Dollar Amounts(s) Available (Min. or Max):
$7 million was appropriated for these grants, all of which has been awarded. There was no minimum or maximum for proposals submitted.
Required Match:
Identification projects required a 25% minimum match. Corrections projects required a minimum 66% match.
|
|
Recent Awards/Example Project:
Round 1 Identifying Failing On-Site Septic Systems awards.
Round 1 Correcting Failing On-Site Septic Systems awards.
|
|
Michigan DEQ - Illicit Connections Grants
|
|
Terms
|
|
|
|
Description
|
Purpose:
To provide funding to identify and require the correction of illicit connections to storm sewers. Illicit connections are pipes from businesses and homes that are improperly connected to storm sewers; waste is discharged to waterbodies rather than directed to a wastewater treatment plant.
Goals:
To identify illicit connections and require them to be connected to a sanitary sewer.
Criteria:
- Anticipated water quality benefit in relation to the costs.
- Ability of the applicant to carry out the project.
- Expected long-term water quality improvement or protection.
- Commitment for financial and technical assistance by project partners.
Eligibility:
Eligible agencies included county or local units of government and non-profit agencies
Deadlines:
N/A. No additional funding exists for this program.
Timelines:
Applicants had approximately 90 days to respond to the request for proposals.
Dollar Amounts(s) Available (Min. or Max):
$8 million was appropriated for these grants, all of which has been awarded. There was no minimum or maximum for proposals submitted.
Required Match:
The grants required a minimum 25% match.
|
|
Recent Awards/Example Project:
Round 3 CMI Clean Water Fund Illicit Connections awards
|
|
Michigan DEQ - Nonpoint Source Pollution Control Grants - Federal Clean Water Act Section 319
|
|
Terms
|
|
|
|
Description
|
Purpose:
To provide funding to: 1) develop watershed management plans to address nonpoint sources of pollution; and 2) implement nonpoint source activities identified in DEQ-approved watershed management plans.
Goals:
To reduce, eliminate and prevent nonpoint source pollution with long-term solutions on a watershed basis. This funding source provides for the implementation of physical improvements as well as information/education strategies, land use planning, the installation of easements and related activities.
Criteria:
- Anticipated water quality benefit in relation to the costs.
- Ability of the applicant to carry out the project.
- Expected long-term water quality improvement or protection.
- Consistency with remedial action plans, if applicable, or the approved watershed management plan.
- Project evaluation activities.
- Commitment for financial and technical assistance by project partners.
Eligibility:
Eligible agencies include county or local units of government and non-profit agencies. A DEQ-approved watershed plan is required to be eligible for implementation funds. Remedial Action Plans (RAPs) and Lakewide Management Plans (LaMPs) are considered approved watershed management plans. All other watershed management plans must be submitted to the DEQ for approval. In addition, starting in fiscal year 2004, all watershed management plans must be upgraded to meet the USEPA nine planning elements.
Deadlines:
Deadlines will be included in each request for proposals. Watershed management plans can be submitted for DEQ review at any time throughout the year.
Timelines:
Applicants will have 90 days to respond. In general, applicants can expect to receive notification within 120 days of the application submittal deadline.
Dollar Amounts(s) Available (Min. or Max):
Approximately $3 million will be available each round of funding. There is no minimum or maximum for proposals submitted.
Required Match:
Watershed planning projects require a minimum 10% match. Watershed implementation projects require a minimum 25% match.
|
|
Recent Awards/Example Project:
FY05 federal Clean Water Act Section 319 grant awards
|
|
Michigan DEQ - Abandoned Well Management Grants
|
|
Terms
|
|
|
|
Description
|
Purpose:
These grants provide funding to communities, townships, and nonprofit organizations to locate and plug abandoned wells inside community public water supply wellhead protection areas (WHPA). Click here to view a Fact Sheet.
Goals of the Program:
To prevent the contamination of drinking water aquifers through old, deteriorated, abandoned well casings, to educate the public concerning the hazards associated with abandoned wells, and to protect the health of the public. Click here for information about plugging abandoned wells.
Eligibility:
Projects must be affiliated with a community public water supply that uses groundwater as its source and must have an approved WHPA. Applicants may be a community, township, or a non-profit organization.
Criteria:
Funding is provided to successful applicants for development and implementation of Abandoned Well Management (AWM) Grant projects. Project activity requirements include:
- Location of abandoned wells.
- Plugging of abandoned wells.
- Provision of 25% local match.
- Completion of grant eligible public education activities as specified in the administrative rules.
- Quarterly progress report submission
The Water Bureau has established and maintains a list of AWM grant-eligible communities that have either delineated their WHPA or have had their WHPA designated as a result of tritium testing. Each time that a new round of funding and its associated request for proposals (RFP) is authorized, the DEQ sends an interest inquiry letter to each community on the grant-eligible list.
Deadlines:
Application deadlines for each round of funding are designated in the AWM Grant Proposal Guidebook. AWM project contracts generally encompass a two-year period.
Timelines:
When a request for proposals is issued, a submittal due date is assigned, typically 60 days in length. Once an award is announced, a contract establishes reporting requirements and completion deadlines.
Dollar Amount(s) Available (Min or Max):
$3.6 million dollars has been appropriated for the AWM Grant Program. Each round of funding has encumbered approximately $1 million dollars in funding.
Required Match:
These grants require a minimum 25% local match.
|
|
Recent Awards/Example Project:
Abandoned Well Management Grant Awards Lists
|
|
Michigan DEQ - Strategic Water Quality Initiatives Fund
|
|
Terms
|
|
|
|
Description
|
Purpose:
The Strategic Water Quality Initiatives Fund (SWQIF) provides low-interest loans for water pollution control projects involving the on-site upgrade or replacement of failing septic systems or for the removal of groundwater or storm water from sanitary or combined sewer leads. The fund can also provide 90% grants to cover costs incurred in applying for loans from the SWQIF or the State Revolving Fund (SRF) to construct eligible projects under either program.
Goals of the Program:
To assist municipalities in funding wastewater treatment improvements that cannot qualify for assistance from the SRF and to assist with the costs incurred to complete applications for construction assistance under the SWQIF or the SRF. Â
Eligibility:
Any city, village, township, county, or related authority as defined in Section 5301(h) of Part 53, Act 451 of the Public Acts of 1994.
Criteria:
The requirements for this program are identified in Parts 52 and 53, Act 451 of the Public Acts of 1994, as amended, as well as Administrative Rules (R323.951- R323.965). Primarily, applicants must present environmentally sound, cost effective water pollution control projects which are drawn from Project Priority Lists (PPLs) administered by the Environmental Science and Services Division.
Application Process:
- For funding from the SWQIF grant program, applications will be accepted throughout the year and grants will be tendered on a first-come, first-served basis for 2 years, or until available funds ($40 million) are exhausted.
- For loan funding the municipality is first ranked on the PPL by submitting a project plan to the Department of Environmental Quality (DEQ).
- The municipality is included in the annual fundable range according to priority ranking.
- The municipality submits plans and specifications for DEQ review.
- The municipality submits an application for assistance in accordance with the quarterly funding schedule.
- The municipality receives financial assistance upon satisfying program requirements through the application process.
Deadlines:
The deadline for submission of a project plan to be included on the annual PPL for loan funding is July 1. The deadline for the application for financial assistance is negotiated for each project dependent upon which quarter they will receive a binding commitment.
Timelines:
For loan funding, the time period may run approximately eight months to several years from the time the project plan is submitted to receipt of assistance. From the time of actual application to receipt of assistance, the process may take as little as three months. Much is dependent upon available funds and the quality of municipal submissions. For the grant program, applications will be reviewed, and if approvable, grant funds tendered within 90 days of application receipt.
Dollar Amount(s) Available (Min or Max):
It is estimated $10-20 million in loan funds will be available annually. Grant funds will be limited to $40 million.
Required Match:
No local match is required.
|
|
Example Recent Award:
Since March 2004, the city of Ann Arbor has received $1,755,000 for an ongoing footing drain disconnection program to address sanitary sewer overflows, while the Clinton Township in Macomb County received $270,000 for similar types of system improvements.
|
|
Michigan DEQ - Wellhead Protection Program Grants
|
|
Terms
|
|
|
|
Description
|
Purpose:
To provide funding to community public water supplies and nonprofit noncommunity public water supplies for the development and implementation of wellhead protection (WHP) programs. A wellhead protection area represents the surface and subsurface area within a ten-year time of travel for groundwater surrounding a water well or well field.
Goals of the Program:
To provide incentives and financial assistance for development and implementation of WHP programs and management strategies.
Criteria:
Funding is provided to successful applicants for development and implementation of WHP programs. Contract requirements include:
- Development of a local WHP team.
- Meeting minimum eligibility requirements.
- Completion of grant eligible activities as specified in the administrative rules.
Eligibility:
Applicant must be a community public water supply or a non-profit noncommunity water supply.
Application Process:
Contracts are authorized annually by the Department of Environmental Quality (DEQ) based on a priority list score and fund available basis.
Deadlines:
Contracts are effective for one fiscal year.
Timelines:
Contract applications are due on a date to be determined and contracts will be awarded at the beginning of the fiscal year. Funding recommendations are made to the Director of the DEQ.
Dollar Amount(s) Available (Min or Max):
Approximately one million dollars is available annually.
Required Match:
50 percent local match is required.
|
|
Recent Award List:
See Wellhead ProtectionWeb site.
|
|
Â
|
|
Community Development Block Grant (CDBG)
|
|
Terms
|
|
|
|
Description
|
The CDBG program is a federally funded program dating back to 1974. The program is designed to provide eligible local units of government with grants to assist low and moderate income people, eliminate slum and blight, or meet an urgent need.
Each year the state receives approximately $40 million in CDBG funds from the U.S. Department of Housing and Urban Development (HUD). The Michigan State Housing Development Authority uses 25% of the CDBG funds for housing-related activities that assist low and moderate income persons. The remaining 75% of the CDBG funds are used by the MEDC to assist low and moderate income persons by grants that address:
- economic development infrastructure to facilitate business locations/expansions
- downtowns and gateways infrastructure
- economic development planning grants
- public works public infrastructure grants for low/mod communities
- unique innovative project needs
Who Is Eligible to Apply ?
Michigan's general purpose local units of government (counties, cities, villages, and townships) with populations under 50,000 are eligible to apply for the State of Michigan's CDBG funding. HUD also provides CDBG funds directly to larger metropolitan communities within the state and those communities are not eligible to receive funds under the state's CDBG Program.
The following counties and all of their respective local units of government are ineligible to receive CDBG funds: Macomb, Oakland, and Wayne.
Some local units of government that are within ineligible counties are eligible to receive CDBG funds: Genesee County (only Flushing City is eligible for state's program); Kent County (only Cedar Springs City is eligible for state's program); and the following local units of government within Washtenaw County are also ineligible for the state's program: Ann Arbor, Township of Ann Arbor, Bridgewater Township, Northfield Township, Pittsfield Township, Salem Township, and Superior Township.
The following Michigan cities are not eligible to directly apply or receive state CDBG funds, but an eligible county may apply for state CDBG funds for projects located in these cities: Battle Creek, Bay City, Benton Harbor, East Lansing, Holland, Jackson, Kalamazoo, Lansing, Midland, Monroe, Muskegon, Muskegon Heights, Niles, Norton Shores, Portage, Port Huron, and Saginaw.
How Does It Work?
Michigan CDBG funding is available for economic development projects including infrastructure projects, business parks and facilities, project-specific planning, innovative and discretionary projects.
ECONOMIC DEVELOPMENT INFRASTRUCTURE - Communities may request grants to provide public infrastructure improvements necessary for the location, expansion, and/or retention of a specific for-profit business firm(s) which are engaged in an economic base activity (e.g. manufacturing, point-of-destination tourism, headquarter operations, major multi-state distribution facility). Public infrastructure includes items such as: public water or sanitary sewer lines and related facilities, streets, roads, bridges and public utilities.
ECONOMIC DEVELOPMENT PLANNING - Grants are available to help communities accomplish project-specific, public planning and design work that is likely to lead to an eligible economic development implementation project. Local matching funds are typically required to show that there is local commitment for the project.
DOWNTOWNS AND GATEWAYS - Communities may request grants to provide public infrastructure improvements necessary for the location, expansion, and growth of specific for-profit businesses, which are or will locate in a downtown or a significant gateway to a downtown area. Public infrastructure could include such items as: public water or sanitary sewer lines and related facilities, streets, bridges, and public utilities.
PUBLIC WORKS - The MEDC will provide funds for public works activities as CDBG funds are available. Preferred public works projects are projects that upgrade existing public infrastructure systems either by replacing deteriorating or obsolete systems or by adding needed capacity to existing systems. In addition, funds under this program can be utilized for public facilities which will have significant impact throughout the community. Projects must benefit low and moderate income households.
UNIQUE AND INNOVATIVE PROJECTS - Discretionary grants will be considered based on special and/or unique needs or situations requiring innovative program approaches not specifically provided for in regular economic development infrastructure grants. This may include brownfield site redevelopment, downtown development, general public infrastructure activities.
What Is the Process?
Proposals are considered on a continuous basis and proposed projects may be submitted at any time during the year. Communities with potential business projects should contact their MEDC business account manager. Communities with potential downtown or community development projects should contact their MEDC Community Assistance Team (CATeam) Specialist.
NOTICE OF INTENT - To receive consideration for funding, an eligible local unit of government must prepare and submit a Notice of Intent (NOI). The NOI is a two-page form providing basic information on the proposed project, project activities and a summary of the project budget including grant funds being requested and other funds. NOI's can only be obtained once the project has been reviewed by an MEDC staff person who has verified eligibility. The Michigan Strategic Fund (MSF) Board has final approval of all NOI's. After MSF approval, a full application process is required. After the MSF approval, a full application process is required.
SELECTION CRITERIA - A system based on selection guidelines is used to evaluate and approve applications for economic development funds. These selection criteria are considered to be thresholds that must be met or exceeded for a particular project to receive funding. If these thresholds are met by a proposed project, a positive funding decision may be made depending on the availability of funds, quality of jobs and compliance with all other program requirements.
ECONOMIC DEVELOPMENT AND DOWNTOWNS AND GATEWAYS INFRASTRUCTURE - Projects will be expected to meet each of the following guidelines:
- Minimum Leverage Ratio -Priority will be given to projects when the leverage ratio of all other private and public funds to CDBG funds is two to one (2:1) or greater.
- Financial Viability -The business must be financially viable and able to document that it has sufficient management abilities and skills to operate the business.
- Cost Per Job-Proposed projects are expected to create the largest number of jobs with the least amount of CDBG investment. Priority will be given to projects where the amount of CDBG funds per job created is $10,000 or less ($20,000 or less for downtowns and gateways projects).
- Job Creation/Retention -Priority will be given to projects creating 10 or more permanent full-time jobs.
- Minimum Local Participation -Proposed projects are expected to have local government funding for public infrastructure activities. Priority will be given to projects where local funding for public infrastructure is 10% or more of the total public infrastructure costs.
ECONOMIC DEVELOPMENT PLANNING - Proposals will be evaluated on the extent to which it appears that the planning grant will lead to an eligible implementation project. Selection factors will include: an evaluation of near term (two to four years) job creation, where at least 51% of the jobs are held by, or made available to low and moderate income people, the number and quality of jobs and the overall impact on the community. Proposals which are of a general planning nature, or which involve activities to carry out regular responsibilities of general local government units are not eligible.
The maximum grant amount shall not exceed $50,000 and the local unit must match with a 10% cash contribution equal to the CDBG funds provided. The cash match may be waived by the State based on demonstrated financial hardship.
PUBLIC WORKS - Projects will be expected to meet each of the following guidelines:
- Matching Funds-Only committed matching funds will be given consideration. Funding priority will be given to projects with the highest percentage of matching funds. Matching funds will be scored on two levels: 1) percentage of committed local matching funds; and 2) percentage of committed combined matching funds (local as well as all other funding sources) for the applicant's proposed project.
- Project Type-Public infrastructure projects that address necessary improvements to existing public infrastructure services in need of repair and/or upgrade and benefit the entire community will be given priority. Community and recreational facilities may be considered but on a lower priority basis.
- National Policy Objective-Proposed projects are expected to meet the national objective of providing direct benefit to persons residing in a community comprised of at least 51% low and moderate income households. Preference will be given to projects that benefit the entire community.
- Project Schedule -The immediacy of project commencement will earn the applicant greater consideration for the funding of the project. Current calendar year commencement earns the highest possible project consideration.
The maximum individual grant award will be $1 million. Any projects awarded under this program component are contingent upon funding availability.
UNIQUE AND INNOVATIVE PROJECTS - Selection guidelines, project periods and grant amounts will be determined and tailored for each specific project proposal. All funding considerations will be made in compliance with federal CDBG regulations and requirements.
MAXIMUM PROJECT PERIOD - Projects must be completed within 24 months from the date the grant is awarded. The MSF may make exceptions to project periods based on the significance of project impact on the community and the economy, the number of jobs created, the needs of the community and/or the level of benefits to low and moderate income people. Funds not disbursed within the specified time limit may be recaptured by the state for reallocation to eligible CDBG projects.
Why Would a Community Want to Apply for a Community Development Block Grant?
CDBG funds are usually provided in the form of grants not requiring repayment of funds to the state. These funds have some flexibility because the funds can be used for many types of eligible activities.
With the many reasons for applying for CDBG funds, it should be noted that these funds are federal funds and there are various federal requirements that are attached to the use of these funds. To assist communities with meeting the federal requirements, the state provides intensive and hands-on assistance.
|
|
