Overview of the Office of Community Services’ Community Economic Development Grant Programs* Presented by: Jeremy S. Carter, Chief Development Officer Storm Taliaferrow, Manager of Resource Development and Membership NALCAB * This presentation reflects the opinions and knowledge of NALCAB’s resource development team and is not endorsed by the Office of Community Services (OCS). Please visit the OCS Community Development website at http://ocscommunitydevelopment.org/ for helpful tools, resources, and other information regarding the OCS CED program. Mission To build financial and real estate assets as well as human and technology resources for Latino families, communities, and organizations. Services to Members • Technical Assistance (TA) • Promote Members’ Work • Create a National Forum • Invest in Leadership For more on NALCAB: Visit nalcab.org/Membership Like us on Facebook https://www.facebook.com/NALCAB Send us a Tweet https://twitter.com/nalcab Since 2009, NALCAB has helped asset-building organizations secure more than $19 million through OCS Strategic Planning/ Best Practices Writing & Evaluation So, how can NALCAB help me? Networking and Peer Connections Editing & Templates FY2015 What’s New for This Year? The Community Economic Development Grant Programs NOFAs available online: - CED http://www.acf.hhs.gov/grants/open/foa/view/HHS-2014ACF-OCS-EE-0817 - CED-HFFI http://www.acf.hhs.gov/grants/open/foa/view/HHS2014-ACF-OCS-EE-0819 Due April 24, 2015 A total of $27.2 million expected to be available through two separate programs Awards expected to be announced mid-June to September Continuing for 2015! CED vs. CED HFFI HFFI is a multidepartmental program Food Deserts can be (USDA, Treasury, and IMPORTANT! designated by local HHS) to expand the government or through General CED applications availability of nutritious USDA here: which discuss elimination food, including developing retail projects of a food desert will be http://www.ers.usda.gov/da ta-products/food-accessdisqualified which increase access to research-atlas.aspx healthy food in food deserts The Principal Purposes of the CED and CED-HFFI are… Sustainable job creation & selfsufficiency for lowincome individuals Development of businesses & jobs that improve the community To fund projects that leverage additional investment in the community Increase access to healthy foods and support the elimination of a food desert (CED-HFFI only) General Community Economic Development Grant (CED) $17.7 million expected to be available for FY2015 $800,000 Maximum award – no required match Expect +/22 grants to be awarded in 2015 Target service area’s poverty & unemployment rate must be equal to or higher than state or national poverty & unemployment rates Community Economic Development Healthy Food Financing Initiative Grant (CED-HFFI) $9.5 million expected to be available for FY2015 $800,000 Maximum award – no required match Expect +/13 grants to be awarded in 2015 Target service area must include a FOOD DESERT and have a poverty and unemployment rate equal to or higher than state or national poverty and unemployment rates CED proposals should cover project costs for business start-up or expansion & the development of new products and services Business Incubators & Loan Pools Commercial, Construction, & Manufacturing Human Services Agricultural Initiatives Examples of CED projects may include the above Subsidiary Creation CED-HFFI Projects can include all of the previously mentioned examples as long as their intended purpose is to eliminate a food desert and provide low-income residents with access to healthy foods Cooperatives Grocery Stores / Retail Farmers’ Markets Community Gardens HFFI Campaign Access to Produce in Urban areas Am I eligible? The Board must have representation from each of the following: community residents, business leaders, and civic leaders * CDC is a general term used here to describe any eligible non-profit which carries out community economic development activities Applicant must have articles or bylaws demonstrating a principal purpose the planning, developing, or managing community economic development activities Applicant must be a private, non-profit CDC* with 501(c)(3) or non-501(c)(3) status, a DUNS #, and SAM registration RESTRICTIONS No microenterprise business training or technical assistance centers No capitalizing a loan/loss reserve No funds primarily for the creation of job training and job placement programs Proposals which do not demonstrate sufficient funds (CED or Non-CED) to cover total project costs Subgrants/pass-through grants One CED/CED-HFFI proposal permitted per year per organization. PROJECT DESCRIPTION Non Construction • Project Length is 36 months • Cost per Position: $20,000 max Construction (Alteration & Renovation) • Projects which use a minimum of $150,000 or 25% of total direct cost for construction could result in Reversionary Interest • Project Length is 60 months • Cost per Position: $25,000 max CED Job Equation New Sustained Full-Time Jobs Livable Wages & Benefits 75% LowIncome Individuals Please Do Not Overpromise on Jobs!! CED Job Creation Experience Counts! 2 or more projects of similar size/scope Sufficient Experience No need for more experienced CDC partner Less than 2 projects of similar size/scope Insufficient Experience Must have MOU with more experienced CDC Partner will provide oversight & TA as needed FY2015 General CED Bonus Points States or Territories with no active CED Project Projects located in (or which create jobs in) a rural community or any county not part of an MSA Projects which are located within a US HUD Promise Zone. Current PZs are: Los Angeles, San Antonio, Philadelphia, Kentucky and the Choctaw Nation of OK. Second round of Promise Zones to be announced Spring 2015 Projects which benefit a Choice Neighborhood Program. Current CNPs are: Chicago, Cincinnati, New Orleans, San Antonio, San Francisco, Seattle, and Tampa. FY2014 CED-HFFI Bonus Points States or Territories with no active CED-HFFI Project Projects located in (or which create jobs in) a rural community or any county not part of an MSA Projects which are located within a US HUD Promise Zone or which benefit a Choice Neighborhood Program. Currently PZs are: Los Angeles, San Antonio, Philadelphia, Kentucky and the Choctaw Nation of OK Projects which leverage US Treasury or USDA grants that focus on access to healthy foods CED requires solid public and private community partnerships secured through: Letters of Support Memoranda of Understanding Letters of Intent Examples of Letters of Support/MOUs/Project Partner Agreements Needed in Proposal WORKFORCE PARTNER • Experienced Workforce Provider LOCAL GOVERNMENT/LOCAL SERVICES • County or City Community Economic Development Department, Housing Authority, Utility Companies PUBLIC OFFICIALS • Local or State Government Officials COMMUNITY PARTNERS • Other Local Nonprofits, Churches, Colleges/Universities, Tribal Nations, more experienced CDC (if needed) CDC BOARD • The Board of Directors of the CDC must grant approval for the proposal Examples of Evidence Needed in Proposal 3rd PARTIES • Partners receiving direct support through CED grant CONSTRUCTION ESTIMATES • Estimates on construction & architectural costs SITE CONTROL • Evidence of Lease or Title to building where CED program will take place for duration of grant period Logic Models Examples of Winning CED Proposals Revolving Loan Fund with Community Facility Project • $235,000 to expand commercial kitchen, build out office incubator and develop loan pool to support minority small business startup and growth Award • Four $10,000 no-interest loans to 4 minority-owned small businesses • Complete equipping Commercial kitchen and build out office space for business incubator • Provide one-on-one Small Business TA • 4 businesses expanded • 13 jobs created • Community facility opened Outcomes Equity Investments in Restaurant Project • $800,000 for an equity investment project to rehab and reopen a historic restaurant and live music venue Award • $700,000 Equity Investment to help rehab and reopen historic restaurant under new ownership • Owner will receive TA from awardee • Partnership with local workforce referral agency • 1 new businesses • 40 jobs • Rehab of historic site for music and civil rights • All FTE positions will have full benefits Outcomes Neighborhood Revitalization • $800,000 to construct a commercial kitchen incubator and complete an office incubator as part of a larger redevelopment project with commercial space, catalyze a loan pool, and implement a professional management and business acceleration training course for local business owners. Award Project • Increase commercial development in a commercial corridor • Provide incubator space • Provide capital and management course to expand businesses. Increase sustainability, and create jobs • Kitchen also used by local food bank • 40 jobs created • 2,500 ft² kitchen • Kitchen users have existing retail space for use • New business office incubator • Improved business efficiencies brings new warehouse contracts to area, increasing overall economy • Leveraged a previous US HUD investment Outcomes Examples of Winning CED-HFFI Proposals Commercial Kitchen and Retail Venue • $788,673 to construct a commercial kitchen and processing facility in an existing community facility. Provide TA and training to food entrepreneurs and local service providers, and create a retail venue within the facility Award Project • Leveraged a capital campaign that constructed the community facility • Construct commercial kitchen and processing facility • Create a local food hub • Provide TA and training to entrepreneurs and local service providers • 45 new food industry jobs • 6 community service provider jobs • 20 businesses are created/ expanded • New retail venue • Elimination of a food desert Outcomes Equity Investment in Healthy Foods • $342,000 to make an equity investment into an olive oil company to create a new brand name targeting Latino families in food deserts. Funding will also go towards working with local food banks to promote nutrition education and discuss the health benefits of olive oil. Award Project • Equity Investment in an existing olive oil company • Launch and market “special brand” • Purchase new machines for bottling process and offer their use to local olive farmers • Promote healthy eating alternatives • Offer small scale farmers a lower cost method of milling • 18 new jobs • Increased community knowledge of healthy foods • Elimination of a food desert Outcomes Public Market Project • $788,600 to create an indoor/outdoor market. The market will house 19 businesses with a focus on Latino clientele. The business owners will cooperatively manage the market Award • Leveraged loan from local CDFI • Worked with local universities, non-profits and the city government • Conceptual work and preplanning began in 2010 • Will include IDA program to capitalize small businesses • Businesses can use the organization’s commercial kitchen to process foods • Businesses can sell at farmers’ markets run by organization and receive TA • 47 new jobs • 19 new or expanded businesses • New locallyowned retail hub • Increased community access to healthy foods • Elimination of a food desert Outcomes So, where do we go from here? Strategic Plan What are our needs? What do we currently have? 2-Page Outline What’s the overall approach? Budget & Editing How much will we need? Is this feasible? NALCAB also recommends you visit the CED Resource website for other helpful resources http://ocscommunitydevelopment.org/ Possible Partners Who can we count on? Next Steps Can we make this happen? Contact Storm Taliaferrow Manager of Resource Development and Membership [email protected] (210) 227-1010 Ex. 1017 Thank You!
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