Overview of the Office of Community Services` Community Economic

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
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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
staliaferrow@nalcab.org
(210) 227-1010 Ex. 1017
Thank You!