Community Development Block Grant (CDBG-R)

Program Name: Community Development Block Grant (CDBG-R)
Point of Contact: Deborah McColloch, Director of Housing

Program Description

Federal Grant Name: Community Development Block Grant (CDBG-R)
Programs Supported Through Funding: Commercial Corridor Development, Affordable Housing Development, Mortgage Foreclosure Diversion Program, Basic Systems Repair Program, Creative Industry Workforce Grants.
Amount Applied For: $14,046,629
Funds Awarded: $14,046,629
Point(s) of Contact for Project(s):

• For Transit-Oriented Commercial Development Fund: Andrew Frishkoff, Director of Neighborhood and Economic Development, Commerce Department, 215-683-2026, Andrew.frishkoff@phila.gov
• For all housing related programs: Deborah McColloch, Director of Housing, OHCD, 215-686-9750, deborah.mccolloch@phila.gov or Scott Wilds, Deputy Director, OHCD, 215-686-9774, scott.wilds@phila.gov
• For Creative Industry Workforce Grants: Gary Steuer, Chief Cultural Office, Office Arts, Culture and the Creative Economy, 215-686-3989, gary.steur@phila.gov; or Moira Baylson, Deputy Cultural Officer, 215-683-2084, moira.baylson@phila.gov

Why Apply for this Grant?

CDBG-R funds are formula entitlement funds available to the CDBG grantee for the City (OHCD).

Project Objectives

CDBG-R funds will be support the following activities:

Transit-Oriented and Livable Communities Commercial Development Fund.
(Lead Agency: Commerce) -- $4,396,629
The Transit Oriented and Livable Communities Commercial Development fund maximizes its economic benefit by leveragingpublic investment with private funds to create sustainable projects. These funds target strong businesses that have been severely hurt by the recession that has crippled banks and made credit almost impossible to obtain. The City uses commercial bank underwriting standards and follows tested lending criteria to ensure that the projects are financially sustainable, will be successful and that the jobs created will exist long after the public funding stops. The leverage of using these funds with private investment from banks or capital investors allows these dollars to have a greater economic impact.

The Transit Oriented and Livable Communities Commercial Development fund is targeted to neighborhood businesses that are either unable to grow because of the freeze in the credit markets or need capital to stabilize unpredictable revenues. It is required, as part of the funding, that businesses either retain or create jobs in order to qualify for the program. These funds are targeted at neighborhood businesses that have seen the recession jeopardize or reduce conventional debt and put expansion or capital projects at risk of cancellation.

Affordable Housing Development (Lead Agency: OHCD; activity will be carried out by RDA) - $5,750,000
The City’s Affordable Housing Program assists those most impacted by the recession by providing affordable rental and homeownership opportunities for those of low- and moderate-income. This activity, which will fill gaps in financing for projects ready to go to construction, will create or retain construction jobs and may reduce the reliance of low income persons on essential government safety-net programs. The City’s Affordable Housing Development programs, which support rental, homeownership and special needs development, are described in detail in the Year 34 Consolidated Plan. Approximately 80 new housing units will be built or rehabilitated.

Mortgage Foreclosure Diversion Program. (Lead Agency: OHCD) -- $1,000,000
The City’s Mortgage Foreclosure Diversion Program assists those most impacted by the recession, in particular, those facing residential mortgage foreclosure. The program includes intensive outreach efforts to those facing foreclosure, court-mediated negotiation with lenders, specialized housing counseling about mortgage workouts and other options, and legal services. This activity will create or retain approximately 10 permanent jobs. Approximately 1700 households will be served.

Utility Emergency Services Fund. (Lead Agency: OHCD) -- $1,000,000
UESF provides grants to low-income families who have utility arrearages and are in danger of having utility services discontinued. Utility companies match grants on a dollar for dollar basis.

Basic Systems Repair Program. (Lead Agency: OHCD; activity will be carried out by PHDC). -- $850,000
The City’s Basic Systems Repair Program (BSRP) provides repairs to owner-occupied houses in need of essential repair or replacement of roofs, electrical, plumbing and heating systems. The City’s BSRP program is described in detail in the Year 34 Consolidated Plan. Approximately 100 houses will be repaired.

Creative Industry Workforce Grants. (Lead Agency: Office of Arts, Culture and the Creative Economy) -- $500,000
The Creative Industry Workforce Grants will support shared office space for creative industry businesses, reducing operating costs for existing and new businesses and increasing the subrecipients’ economic efficiency. Grants will also support the creation of new or renovated mixed-use facilities and creative industry incubators, designed to attract new businesses and new jobs. In the case of rehabilitation and new construction, energy-efficient developments will receive priority.

Administrative Costs. $550,000
Eligible planning and administrative costs as allowed by CDBG regulations at 24 CFR 570.205 and 24 CFR 570.206.

Job Creation

In the City’s application to HUD, the following job creation/retention figures were used. However, no guidance was provided for the application in developing job numbers. These figures are general estimates and may not be closely related to reality:

• Transit-Oriented Commercial Development Fund: Create 425 construction jobs and 186 permanent jobs
• Affordable Housing Development: Create or retain approximately 700 construction jobs and 45 permanent jobs
• Mortgage Foreclosure Diversion Program: Create or retain approximately 10 permanent jobs
• Basic Systems Repair Program: Create or retain approximately 10 construction jobs
• Utility Emergency Services Fund: Retain approximately 6 jobs
• Creative Industry Workforce Grants: Create approximately 15 FTE jobs and six construction jobs.