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120 Delmar Avenue/Suite A / Salem, Illinois 62881-2006 / (618) 548-4234
Serving Clay, Effingham, Fayette, Jasper, and Marion Counties
The State's CDAP ProgramCommunity Development Assistance Program Grants The Commission's professional staff has had the pleasure of assisting local governments within its five-county jurisdiction in effective utilizing various components of the broader state CDAP grant program provisions. Under the program federal block grant funds are administered in non-metropolitan areas of the state by the Illinois Department of Commerce and Economic Opportunity (DCEO). Federal regulations require that at least 51% of the beneficiaries of a CDAP-supported project must be low and moderate-income local residents. Annually, the State of Illinois typically receives $35-$40 million in block grant funds to be awarded to local governments within non-metropolitan areas of the state. The state's CDAP funds are further allocated in the following categories:
Economic Development Component: CDAP grant funds must be used by local governments to assist a business in carrying out a viable economic development project in their locality which otherwise would not occur. Normally, CDAP grant funds are used by the local government to support a below-market (not less than 3.0%) pass-through, fixed-rate loan to the private investors to fill a bona fide financing gap or increase the local site's overall attractiveness.. In such instances, the loan funds are recaptured and retained by the successful local government for future use. However, grant funds may also be used by local governments to pay for a portion of costs for essential public facilities and improvements which directly support economic development at the local level. In such instances, the grant funds are used for public infrastructure (e.g., water, sewer,access roads, etc.) and are therefore not recaptured for future use. In either instance, one new full-time equivalent permanent job must be created within 18 months for each $15,000 of CDAP funds awarded. Under normal circumstances, CDAP grant funds will not represent more than 33% of the total project investment, but on occasion can be as much as 50% of the project cost. A strong rationale documenting a genuine need for CDAP grant funds must be presented by the local government and firm written commitments for the balance of the project financing must be included in the grant request. Public Facility Construction Component: CDAP grant funds must be used by local governments to fund a portion of the total cost for public facility projects which address a serious and persistent threat to the health and safety of local residents - with an emphasis upon water and sanitary and storm sewer deficiencies. Public facility deficiencies resulting from the lack of routine maintenance are discouraged. Here again, the state expects that the local government can document a financial need for the CDAP grant funds in order for the project to be realized. CDAP grant funds can provide up to the lesser of $400,000 or 75% of the total project cost and all other project funds must be firmly committed. Local governments should insure that their public facility project is ready to quickly proceed - pending the award of CDAP grant funds. Those projects which are not ready to construct may wish to consider the Design Engineering component of the CDAP provisions. |
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