community development finance authority

Community DevelopmentFinance Authority

I-93 Community Technical Assistance Program

Growth Management Training Conference

September 29, 2007

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CDFA

• Established in 1983 by NH legislature (RSA 162-L) as a body politic and corporate and as a nonprofit corporation.

• Invests in affordable housing, economic development, and community development projects that make New Hampshire a better place to live and work.

• Works with and provides funding to community development organizations: nonprofits, cooperatives and certain municipal entities.

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CDFA Funding Programs

• Community Development Block Grant Program (CDBG)

• Community Development Investment Program (CDIP)

• Downtown Resource Center

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Community Development Block Grant Program (CDBG)

• Housing & Community Development Act of 1974

• Low and Moderate Income (LMI) Persons

• 70% Entitlement Program (Manchester, Dover, Rochester, Portsmouth, and Nashua)

• 30% States (NH Statewide through CDFA)

NH CDBG 2007 Appropriation

HUD Appropriation $9,338,888

ALLOCATIONAPPLICATION DEADLINES

State Admin/TA $380,167

Emergency Grants As needed $500,000

Feasibility Grants April 30/October 31 $100,000

Economic Development On-going $4,179,360

Housing & Public Facility Jan. 29/July 30 $ 4,179,360 ÷ 2

Housing & Public Facility 2007 Funds $2,089,680

Bonus $496,619

Available for HS/PF July Round $2,586,299

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CDBG Eligible Activities

• Housing

• Public Facilities• Water and Sewer• Public Property• Public Services

• Economic Development

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Housing

• Eligible Activities• Acquisition/Rehabilitation of housing• Improve efficient use of water & energy• Lead paint testing and abatement• Exterior painting• Elderly/Handicapped access• Historic preservation• Water, sewer, street improvements on privately

owned property

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Horseshoe Pond Place Senior Housing

Northwood Senior Housing

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Public Facilities

• Water & Sewer • Extending or replacing water and/or sewer lines• Constructing water or sewer treatment facilities• Constructing water storage tanks or reservoirs• Construction or replacement of wells• Water and wastewater systems that serve medical

facilities or nursing homes are considered low priority

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Public Facilities

• Public Property • Elderly/Handicapped access to public buildings

• Acquire, construct, rehabilitate• Streets, sidewalks, playgrounds, recreation areas• Schools, for use as schools, libraries, museums• Medical facilities, Nursing homes

• Development of Municipal Master Plans

• 1:1 Minimum match requirement

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Public Facilities

• Public Services• Acquire, construct, rehabilitate

• Homeless shelters• Community centers • Neighborhood facilities

• Homeless shelters, Child care facilities, Adult day care are high priority

• All other activities are medium priority

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Belmont Mill

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Economic Development

• Eligible Activities • Acquire, construct, rehabilitate commercial or

industrial buildings• Purchase machinery or equipment• Training of employees • Land acquisition• Making public improvements in support of

economic development projects

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Economic Development

• Job Creation & Retention

• Job Training

• Microenterprise Assistance

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• General Expense of conducting government

• Political Activities

• New Housing Construction

• Construction of government buildings

• Expense of operating & maintaining Public Facilities

• Purchases of equipment, furnishings & other personal property

Ineligible CDBG Activities

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Homes Downtown, Concord

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CDBG Application Deadlines

• Housing/Public Facility– January 28, 2008– July 28, 2008

• Feasibility Study– October 31, 2007– April 30, 2008– October 31, 2008

• Economic Development– Ongoing until funds

are expended

• Emergency– Ongoing until funds

are expended ($0 for 2007. $100k for 2008)

Community Development Investment Program (CDIP)

• It is unique.

• It is not an entitlement.

• A tax credit award must be applied for in a very competitive environment.

• Awards come with conditions that are secured by a contract.

• It is very flexible within the context of CDFA’s core mission.

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RSA 162-L Specifics on Funded Projects

• “The project shall be of public benefit and for a public purpose. The benefits, including increased or maintained primary employment and improved standard of living, shall primarily accrue to a target area or target population.”

• “The authority shall determine that its participation is necessary to the successful completion of the proposed project because adequate funding for the project is unavailable in the traditional capital markets or because credit has been offered on terms that would preclude the success of the project.”

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The Tax Credit

• 75% Tax Credit against contribution

• Applied to any (or all) business taxes in the Donor’s tax year– Business Profits Tax (RSA 77-A)– Insurance Premium Tax (RSA 400-A)– Business Enterprise Tax (RSA 77-E)

• Credit taken after Donor’s contribution received by CDFA

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Types of Donationsfor CDIP Projects

Property – tax credit based on 75% of appraised value.

Cash or securities – tax credit based on 75% of the contribution.

CDFA charges a fee of 15% for property donations and 20% for cash donations paid by the project sponsors.

CDFA accepts up to $5 million in donations in any single state fiscal year.

CDIP Community Development Projects

• Concord Area Red Cross LNA Training Center - Concord

• Children’s Museum - Dover

• Bonnie Clac – Keene, Manchester, & Portsmouth

• LALC Child Care - Littleton

• Red River Theatres - Concord

Concord Area Red Cross LNA Training Center – CDIP

But for CDFA funds, I am not sure if we would’ve been able to have this type of facility. With the CDFA funds, we were able to put things in that we’ve never had, such as in our LNA training lab we now have a shower room (where students can practice bathing a patient), bathroom, and a storage closet for all the lab supplies.

–Lorie Boynton, RN, Program Coordinator

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CDIP Housing Projects

• Families in Transition – Manchester

• Squamscott Block - Exeter

• Shattuck Street - Nashua

• Homes Downtown – ConcordFamilies in Transition, Manchester

“By partnering with CDFA, FIT is able to provide not only the basic necessities for participants, but also the opportunity for them to get out of the cycle of homelessness & to provide a path out of poverty towards economic & emotional self-sufficiency.”

- Maureen Beauregard, Executive Director Families in Transition

CDIP Economic Development Projects

•Grappone Conference Center Concord

•Mid State Health Center Plymouth

•Mt. Washington Tech Village Conway

•Canterbury Shaker Village Canterbury

•North Country Broadband Northern NH

"Downtown Keene with its renovated historic buildings and economic vitality would be a very different place today without CDFA. The tax credits have leveraged millions of additional dollars in private investment and helped create hundreds of new jobs and housing opportunities on Main Street.”

- Jack Dugan, President Monadnock Economic

Development Corporation

CDBG/CDIP Projects

• NHTI - Concord

• Cornerstone Building - Berlin

• Dartmouth Regional Technology Center - Lebanon

• Eagle Block - Newport

• Pleasant Street Affordable Housing – Concord

• Webster Farm Rehabilitation - Franklin

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CDIP Tax Credit Availability

SFY 2008 $ 726,894

SFY 2009 $2,396,350

__________

Total $3,123,244

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Tax Benefits for Donors

Opportunity to redirect tax dollars

Local project support for minimal cash outlay

Leveraging the amount of support

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From the Donor’s Perspective: A Review Example

• Donor business makes a $100,000 cash investment

• NH tax credit for donor business in the amount of $75,000 ($100,000 x 75%)

• After all federal and state tax benefits, the contribution actually costs the company approximately 11% of the $100,000, or $11,000

Key Marketing Message: This helps a participating company significantly increase their community impact by leveraging the tax dollars they’d pay to state and federal government anyway.

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CDIP Application Schedule

• Sept. 28, 2007 Application Workshop

• October 19, 2007 Applications Due

• November 2007 Staff Analysis

• December 2007 Board Action

• January 2008 Awards Announced

• Q-1 2008 Tax Credit 101 Workshop

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CDIP Application Details

• Deadline for applications is October 19, 2007, 4:00pm at CDFA office

• One original and two copies (3-ring binders, tabbed)

• Electronic version of narrative emailed to CDFA• All application materials on CDFA’s web site:

www.nhcdfa.org• Call with questions: 603-226-2170

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CDFA Downtown Resource Center

• Provides downtown revitalization services to designated Main Street Communities & any NH Community looking to improve their downtowns and village centers.

• Focuses on economic & community development initiatives.

• Offers technical assistance & trainings.• Statewide coordination program affiliated

with the National Trust Main Street Center.

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Four Levels of Participation

1. “Main Street” Members – currently is only available to currently designated Main Street communities;

2. “Downtown Network” Member

3. “Downtown Associate” Members

4. “Non-Members” – can access services through an al a carte menu

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Community DevelopmentFinance Authority

Gloria Paradise

Housing & Community Facilities Director

NH Community Development Finance Authority

14 Dixon Avenue, Suite 102

Concord, NH 03301

Tel (603) 717-9114 Fax (603) 226-2816

gparadise@nhcdfa.org

www.nhcdfa.org