Copyright © 2015 SIDC Alll Rights Reserved

Last Updated April 2015

Southern Indiana Development Commission

Community Development

For local and regional entities, there are a variety of funding sources available to perform community development tasks. SIDC works with local and regional residents in order to secure funding for their community development projects. The following are potential sources of funding for projects.  The following reflects the information given in the  OCRA  2015 Consolidated Plan.



Community Development Block Grants (CDBG)


Community Focus Fund Construction Grants

The grant programs administered by the Indiana Office of Community and Rural Affairs and funded with federal Community Development Block Grant (CDBG) dollars. These grants support a variety of construction projects that either benefit low to moderate income persons or eliminate blight in communities.

Eligible applicants include:



1. Infrastructure improvements (water, sewer, storm water)

2. Emergency Services projects (fire trucks, fire stations, EMS stations)

3. Other public facilities ( i.e., senior centers, health centers, libraries)

4. Historic preservation projects

5. Brownfield/Clearance projects

Applications will be accepted and awards will be made on a competitive basis one (1) time per year.



CDBG Planning Grants

The Planning Grant program is administered by the Indiana Office of Community and  Rural Affairs and funded with federal Community Development Block Grant (CDBG) dollars. It is designed to assist in the funding of feasibility plans for future projects that either benefit low to moderate income persons or eliminate blight in communities. The goal is to identify needs/issues, explore options in addressing them, and determine the best course of action.  Eligible applicants include:


Planning Fund:

1. $30,000 for a study on a single utility,

2. $40,000 for a study on two utilities, and

3. $50,000 for a master utility study (water, wastewater, and storm water).

4. Dam or Levee System Evaluations will be limited to $50,000.

5. Comprehensive plans are limited to $40,000.

6. Downtown revitalization plans are limited as follows:

7. Populations over 2,000 are limited to $40,000, and

8. Populations under 2,000 are limited to $30,000

9. Economic development plans are limited to $40,000.

10. Public facilities plans will be limited to $15,000.

11. Historic preservation plans will be limited to $15,000.


Stellar Communities Program:

The State of Indiana will to set aside funds from its FY 2015 CDBG funds for the Stellar Communities Program. Indiana’s Stellar Communities Program is a collaborative effort of the Office of Community and Rural Affairs (OCRA), the Indiana Housing and Community Development Authority (IHCDA), and the Indiana Department of Transportation (INDOT). The

Stellar Communities Program is seeking to engage two communities to achieve a three-year revitalization strategy that will leverage unified state investment and funding from the partnering agencies to complete projects comprehensively.


The Office of Community and Rural Affairs will award Main Street Revitalization Program (MSRP) grants to eligible applicants to assist Indiana communities with activities intended to revitalize their downtown area. Each applicant must have a designated Indiana Main Street Group and the project must be part of the Main Street Group’s overall strategy.


Stormwater Improvements Program:

The State of Indiana will to set aside FY 2015 CDBG funds for the Stormwater Improvements Program (SIP).


Water/Wastewater Improvements Program:

The State of Indiana will to set aside FY 2015 CDBG funds for the Water/Wastewater Improvements Program. Indiana’s Water/Wastewater Improvements Program (WWP) is a collaborative effort of the Office of Community and Rural Affairs (OCRA), the Indiana Finance Authority (IFA), and USDA Rural Development (USDA-RD). The WWP strategy will leverage unified state investment and funding from the partnering agencies to complete comprehensive system improvements.


Public Facilities Program

The State of Indiana will to set aside FY 2015 CDBG funds for the Public Facilities Program (PFP).


USDA Rural Development

Rural Development achieves its mission by helping rural individuals, communities and businesses obtain the financial and technical assistance needed to address their diverse and unique needs. Rural Development works to make sure that rural citizens can participate fully in the global economy.

Rural Development's financial programs support such essential public facilities and services as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service. It promotes economic development by supporting loans to businesses through banks and community-managed lending pools. It offers technical assistance and information to help agricultural and other cooperatives get started and improve the effectiveness of their member services. And it provides technical assistance to help communities undertake community empowerment programs. More Information is available at USDA Rural Development's website.



Indiana State Revolving Loan Fund

The Wastewater SRF (WWSRF) and the Drinking Water SRF (DWSRF) are low-interest loan programs created to assist Indiana communities with their wastewater and drinking water infrastructure improvement needs.  Cities, Towns, Counties, Regional Sewer/Water Districts, Conservancy Districts, and Water Authorities are eligible for this program. Also, as of July 1999, private and not-for-profit facilities are eligible for Drinking Water SRF loans ONLY.

There are many different types of projects available under this fund.  Wastewater projects include treatment plant improvements, sewer line extensions, upgrades, Combined Sewer Overflow (CSO) corrections, and infiltration/inflow projects.  Drinking water projects include treatment plant improvements, water line extensions, upgrades, and water towers.  More information on the Indiana State Revolving Loan Fund is available on IDEM's website.



Enterprise Zone Program

Established in 1983, the purpose of the Indiana Enterprise Zone Program is to improve the quality of life in designated enterprise zones through community and business redevelopment initiatives. Community development initiatives include promotion and/or provision of day care and other social services for zone residents; upgrading public services; development of workforce/job training and placement services; renovation of housing, streets and public spaces; enhancement of education development for zone residents. Business development initiatives include provision of tax incentives and benefits; business incubator development; expanded access to and knowledge of government services and resources; stimulation/creation of business loan/capital improvement programs; development of managerial training and counseling programs; development of business/loan capital improvement programs; fostering cooperation between financial institutions and businesses; fostering public-private partnerships.


Neighborhood Assistance Program

The Neighborhood Assistance Program (NAP) offers $2.5 million in tax credits annually for distribution by not-for-profit corporations to build public-private partnerships for neighborhood-based programs and projects in economically disadvantaged areas. The program is designed to benefit targeted populations in socioeconomic distress within these areas. Successful utilization of the Neighborhood Assistance Program requires marketing and fundraising abilities on the part of the grantee.


The Urgent Need Fund:

The Urgent Need Fund will be available to eligible applicants on a continuing basis. These activities must be eligible for funding under the "urgent need" national objective of the Federal Act and requirements of 24 CFR 570.208 and 24 CFR 570.483 of applicable HUD regulations. The Urgent Need Fund will be available to eligible applicants to meet an imminent threat to the health and safety of local populations. The grants may be funded as made available through the Public Facilities Program or reversions when not budgeted from the annual allocation. Special selection factors include need, proof of recent threat of a catastrophic nature, statement of declared emergency and inability to fund through other means. Projects will be developed with the assistance of the Office of Community and Rural Affairs as a particular need arises. To be eligible, these projects and their activities must meet the "urgent need" national objective of

Section 104(b)(3) of the Federal Act. Generally, projects funded are those, which need immediate attention and are, therefore, inappropriate for consideration under OCRA's regular programs. The types of projects, which typically receive funding, are municipal water systems (where the supply of potable water has been threatened by severe weather conditions) and assistance with demolition or cleanup after a major fire, flood, or other natural disaster. Although all projects will be required to meet the "urgent need" national objective, the Office of Community and Rural Affairs may choose to actually fund the project under one of the other two national objectives, if it deems it expedient to do so. Applicants must adequately document that other financial resources are not available to meet such needs pursuant to Section 104(b)(3) of the Federal Act and 24 CFR 570.483 of HUD regulations.


Only that portion of a project, which addresses an immediate need, should be addressed. This is particularly true of municipal water or sewer system projects, which tend to need major reinvestment in existing plants or facilities, in addition to the correction of the immediate need. The amount of grant award is determined by the individual circumstances surrounding the request for emergency funds. A community may be required to provide a match through cash, debt or provision of employee labor.


The eligibility of any project is at the full discretion of the Office of Community and Rural Affairs.


PROGRAM APPLICATION

The Planning Fund/Program (PL) and the Comprehensive Brownfield Redevelopment Program (CBRP) will be conducted through a single-stage, continuous application process throughout the program year. The application process for the Stellar Communities Program, Community Focus Fund (CFF), Water/Wastewater Program (WWP), Public Facilities Program (PFP), Stormwater Improvements Program (SIP) and the Main Street Revitalization Program (MSRP) will be a single competitive application process. Eligible applicants will first submit a short program proposal or letter of intent for such grants. After submitting proposal, eligible projects under the Federal Act will be invited to submit a full application. For each program, the full application will be reviewed and evaluated. The Office of Community and Rural Affairs, as applicable, will provide technical assistance to the communities in the development of proposals and full applications. An eligible applicant may submit only one application per cycle, per program. Additional applications may be submitted under the other state programs. The Office of Community and Rural Affairs reserves the right to negotiate Planning-Only grants with applicants for applications lacking a credible readiness to proceed on the project or having other planning needs to support a construction project.



OTHER REQUIREMENTS

While administrative responsibility for the Small Cities CDBG program has been assumed by the State of Indiana, the State is still bound by the statutory requirements of the applicable legislation passed by Congress, as well as federal regulations promulgated by the U. S. Department of Housing and Urban Development (HUD) respective to the State's CDBG program as codified under Title 24, Code of the Federal Register. HUD has passed on these responsibilities and requirements to the State and the State is required to provide adequate evidence to HUD that it is carrying out its legal responsibilities under these statutes.


As a result of the Federal Act, applicants who receive funds through the Indiana Office of Community and Rural Affairs selection process will be required to maintain a plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities. Applicants are required to provide reasonable benefits to any person involuntarily and permanently displaced as a result of the use of assistance under this program to acquire or substantially rehabilitate property. The State has adopted standards for determining reasonable relocation benefits in accordance with HUD regulations.


CDBG "Program Income" may be generated as a result of grant implementation. The State of Indiana may enter into an agreement with the grantee in which program income is retained by the grantee for eligible activities. Federal guidelines require that program income be spent prior to requesting additional draw downs. Expenditure of such funds requires prior approval from the Office of Community and Rural Affairs (OCRA). The State (Office of Community and Rural Affairs) will follow HUD regulations set forth under 24 CFR 570.489(e) respective to the definition and expenditure of CDBG Program Income.

All statutory requirements will become the responsibility of the recipient as part of the terms and conditions of grant award. Assurances relative to specific statutory requirements will be required as part of the application package and funding agreement. Grant recipients will be required to secure and retain certain information, provide reports and document actions as a condition to receiving funds from the program. Grant management techniques and program requirements are explained in the OCRA's CDBG Grantee Implementation Manual, which is provided to each grant recipient.


Revisions to the Federal Act have mandated additional citizen participation requirements for the State and its grantees. The State has adopted a written Citizen Participation Plan, which is available for interested citizens to review. Applicants must certify to the State that they are following a detailed Citizen Participation Plan which meets Title I requirements. Technical assistance will be provided by the Office of Community and Rural Affairs to assist program applicants in meeting citizen participation requirements.


The State has required each applicant for CDBG funds to certify that it has identified its housing and community development needs, including those of low and moderate income persons and the activities to be undertaken to meet those needs.



INDIANA OFFICE OF COMMUNITY AND RURAL AFFAIRS (OCRA)

The Indiana Office of Community and Rural Affairs intends to provide the maximum technical assistance possible for all of the programs to be funded from the CDBG program. Lieutenant Governor Sue Ellsperman heads the Office of Community and Rural Affairs. Principal responsibility for the CDBG program is vested in Aletha Dunstown, Interim Director of Grant Services for OCRA. The Office of Community and Rural Affairs also has the responsibility of administering compliance activities respective to CDBG grants awarded to units of local government.


Primary responsibility for providing "outreach" and technical assistance for the Community Focus Fund, Stellar Communities Program, Main Street Revitalization Fund, Water/Wastewater Program, Public Facilities Program, Stormwater Improvements Program, Comprehensive Brownfield Redevelopment Program and the Planning Fund process resides with the Office of Community and Rural Affairs. Primary responsibility for providing "outreach" and technical assistance for the Housing award process resides with the Indiana Housing & Community Development Authority who will act as the administrative agent on behalf of the Indiana Office of Community and Rural Affairs.


The Business Office will provide internal fiscal support services for program activities, development of the Consolidated Plan and the CAPER. The Grant Services Division of OCRA has the responsibilities for CDBG program management, compliance and financial monitoring of all CDBG programs. The Indiana State Board of Accounts pursuant to the federal Office of Management and Budget Circular A-133 will conduct audits. Potential applicants should contact the Office of Community and Rural Affairs with any questions or inquiries they may have concerning these or any other programs operated by the Office of Community and Rural Affairs. Information regarding the past use of CDBG funds is available at the:


Indiana Office of Community and Rural Affairs

Office of Community and Rural Affairs

One North Capitol, Suite 600

Indianapolis, Indiana 46204-2288

Telephone: 1-800-824-2476

FAX: (317) 233-6503



For more information and guidance, please contact Michelle Carrico at michelle@sidc.cc or (812)295-3707.
















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