chapter 9 – economic development revolving loan … 9 – economic development revolving loan fund...

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Chapter 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient, the nonprofit sub-recipient and the perspective assisted business not incur any ACTIVITY costs or obligate funds, which are intended to be reimbursed with EDRLF funds, prior to the date that all contract start-up conditions are satisfied by the city/county grant recipient and approved in writing by OBDD. ____ 1. Environmental Exemption for grant administration and program management has been completed by the grant recipient and submitted to OBDD. ____ 2. For each loan: ____ a. OBDD has reviewed the preliminary loan documents prior to execution by the sub recipient and disbursement of funds by OBDD to the grant recipient. ____ b. There is a completed environmental review record, and if necessary the States certification of the Request for Release of Funds in each loan portfolio. ____ c. For job creation projects the loan portfolio includes: 1. ____ A written commitment from the business to meet the national objective requirements. Exhibit 9C and 9D can be used to obtain this. 2. ____ First source hiring agreement. 3. ____ An annual federal Outcome and Performance Measure Report, due by September 1 of each year. Refer to Exhibit 9A. 4. ____ An annual OBDD Key Performance Measure Report, due by September 1 of each year. Refer to Exhibit 9B. 5. ____ The final project completion report, due no later than 12 months after project completion. Refer to Exhibit 9A. 6. ____ Evidence that the project meets the public benefit test of no more than $25,000 of CDBG per FTE created. 7. ____All required federal clauses and requirements are contained on the loan agreement.

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Page 1: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development Revolving Loan Fund

Recipient Checklist

It is absolutely essential that the city/county grant recipient, the nonprofit sub-recipient and the perspective assisted business not incur any ACTIVITY costs or obligate funds, which are intended to be reimbursed with EDRLF funds, prior to the date that all contract start-up conditions are satisfied by the city/county grant recipient and approved in writing by OBDD.

____ 1. Environmental Exemption for grant administration and program management has been completed by the grant recipient and submitted to OBDD.

____ 2. For each loan:

____ a. OBDD has reviewed the preliminary loan documents prior to execution by the sub recipient and disbursement of funds by OBDD to the grant recipient.

____ b. There is a completed environmental review record, and if necessary the States certification of the Request for Release of Funds in each loan portfolio.

____ c. For job creation projects the loan portfolio includes:1. ____ A written commitment from the business to meet the national

objective requirements. Exhibit 9C and 9D can be used to obtain this.

2. ____ First source hiring agreement.3. ____ An annual federal Outcome and Performance Measure

Report, due by September 1 of each year. Refer to Exhibit 9A.4. ____ An annual OBDD Key Performance Measure Report, due by

September 1 of each year. Refer to Exhibit 9B.5. ____ The final project completion report, due no later than 12

months after project completion. Refer to Exhibit 9A.6. ____ Evidence that the project meets the public benefit test of no

more than $25,000 of CDBG per FTE created.7. ____All required federal clauses and requirements are contained

on the loan agreement.

Page 2: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,
Page 3: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

Grant Management Handbook (2013) 9-1

Overview

Economic Development – Revolving Loan Funds

The purpose of this chapter is to assist the grant recipient and the 501(c)(3) nonprofit sub recipient implementing economic development revolving loan fund projects funded by the Community Development Block Grant (EDRLF) Program. EDRLF projects involve both the private and the public sectors, so clarification of the federal and state requirements applicable to each private and public sector participant is necessary. Many requirements that will apply to the local government, as a public entity, will not apply to the private sector. In addition, some requirements that may apply to one type of EDRLF loan (project) may not apply to another because of the different activities being conducted.

To a private business person, many of the federal regulations associated with the program may seem more applicable to traditional public sector projects. However, it is the responsibility of all CDBG-EDRLF recipients to comply with applicable federal and state laws, executive orders, and regulations affecting their projects. The major federal requirements that apply generally become specific conditions of the grant contract between the Oregon Business Development Department (OBDD) and the local government. These requirements must then also be contained in the sub-grant agreement between the city/county grant recipient and the eligible 501(c)(3) nonprofit sub recipient. The nonprofit sub recipient must ensure that the necessary requirements are contained in each loan portfolio and executed loan agreement and that all loan repayments will be paid to the 501(c)(3) nonprofit sub recipient.

Local governments should carefully review these requirements and consider their potential impact when implementing their EDRLF project. These laws can affect the costs and complexity of the project and the schedule for completion.

NOTE: It is absolutely essential that the city/county grant recipient, the nonprofit sub recipient and the perspective assisted business not incur any ACTIVITY costs or obligate funds, which are intended to be reimbursed with EDRLF funds prior to the date that all contract start-up conditions, are satisfied by the city/county grant recipient and approved in writing by OBDD.

Applicable Requirements

Chapter 1 and 2

The following state and federal requirements are discussed in more detail in the appropriate chapters of the Grant Management Handbook. Each of the following sections highlights ways in which the state and federal requirements discussed in this Handbook may be different for EDRLF projects.

How to Start the Project, First and Last Draw Requirements, and Special Grant Contract Conditions

All of the requirements contained in Chapters 1 and 2 of the Grant Management Handbook, apply to all EDRLF projects. The local government must complete all of the

Page 4: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

9-2 (2013) Community Development Block Grant

Chapter 3

Chapter 4

steps outlined in those chapters before EDRLF funds will be made available for drawdown.

Both the city/county grant recipient and the sub recipient should carefully consider howthey represent the project to the general public and interested parties. The grant recipientshould keep proprietary information secured and maintain the confidentiality of business financial statements received from the business.

The city/county grant recipient must ensure that the required reports, such as the Section 3, HUD form 60002, and the minority and woman owned business report is collected from the sub-recipient and each loan recipient.

Environmental ReviewAll the federal environmental clearance requirements contained in Chapter 3 apply.

� Step 1 – Environmental exemption for grant administration, program management, environmental review preparation for each loan, and legal costs must be signed by the grant recipient’s Certifying Officer before incurring costs or obligating funds, even non-CDBG funds for these activities. Refer to Exhibit 3C.

� Step 2 – Prepare the appropriate level of environmental clearance for each proposed loan to be made from the EDRLF program. Refer to Chapter 3 for more information and forms. Each loan portfolio must have a completed Environmental Review Record that is signed by the grant recipient’s Certifying Officer. Furthermore, the grant recipient must obtain OBDD’s approval certification of the Request for Release of Funds, if applicable, prior to loan approval by the sub recipient.

� Step 3 – Determining the level of environmental review for each EDRLF loan. Different projects will require varying levels of environmental review see (Exhibit 3B) for a flowchart describing the process.

� Step 4 – Complete the process as described in Chapter 3.

Each loan docket sent to the state for approval must contain the completed environmental review record covering each activity to be funded/completed with the loan. The state must be allowed time to review the record and make the necessary release of funds issuance or other finding of concurrence.

Financial and Cash Management, Program Income and AuditsCity/County grant recipients must comply with all of the applicable financialmanagement requirements contained in Chapter 4 of the Grant Management Handbook. A private sector entity would not have to comply with the financial management requirements in the chapter except as needed to demonstrate the grant funds were spent accordingly.

Page 5: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

Grant Management Handbook (2013) 9-3

All expenditures of EDRLF funds by the local government and private nonprofit sub recipient are subject to the requirements and threshold limits for audits contained in OMB Circular A-133. Generally, entities that expend $500,000 or more in a fiscal year in Federal funds from all sources must have a single or program specific audit conducted for that year.

Private sector entities (i.e., businesses receiving loans) do not have to be audited. The local government, however, must require financial documentation and reports from the business, including documentation of the propriety of the use of EDRLF funds by the assisted entities and periodic financial statements.

The continued use requirement of 24 CFR Part 570.489(j), when applied to projects not under the direct control of the grant recipient or eligible sub recipient, (loans made to private for profit entities, private property owners for housing rehabilitation) is not applicable.

Cash draws submitted to OBDD, must contain draft loan documents for review prior to sub recipient execution of the loan documents and OBDD’s disbursement of the funds to the city/county grant recipient.

All accounting records must be supported by source documentation (e.g., invoices, timesheets, construction pay estimates, etc.) Cash requests submitted to the department for payment must include copies of all source documentation that supports the amount of grant funds being requested. The same kind of documentation must be included with cash requests to document expenditure of any matching funds. Recipients should never make a payment without approved invoices or other documentation physically in hand. No cash requests will be approved without appropriate documentation.

At a minimum, invoices need to include the following:���������� ����������������������������� ��� ����������������������������������� ���������������������������� ��� ����������� ��invoice�������������������������������������������������������������if applicable)

State grant recipients desiring to use lump sum draw or escrow accounts must follow the CDBG entitlement provisions located at 24 CFR Part 570.511.

Lump Sum – State grant recipient may draw the total amount needed as one single draw in advance, if it enters into an agreement with a financial institution meeting the requirements of 24 CFR Part 570.513(b)(2). Key provisions of these requirements are:

1) Agreement cannot exceed two years;2) Financial Institution must agree to provide certain benefits in conjunction

with the activities paid from the account; and 3) Benchmarks for the assisted activity are established.

Page 6: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

9-4 (2013) Community Development Block Grant

Chapter 5

Chapter 6

Escrow Accounts – State grant recipients may use escrow accounts if the following key provisions are met:

1) Account may not hold more that what is anticipated to be drawn in 10 working days; and

2) Interest earned on the deposited funds are returned to HUD via the State quarterly.

Grant recipients cannot use both the lump sum draw accounts and escrow accounts together.

Procurement StandardsAll of the provisions contained in Chapter 5, Procurement, apply to a local government’s procurement of goods or services that will be paid for in whole or in part with EDRLF funds.

These procurement requirements, described in Chapter 5, do not apply to private sector procurement of goods or services even if they are to be paid for with loaned CDBG-EDRLF funds through an approved sub recipient (eligible nonprofit).

The nonprofit must meet their applicable OMB circular requirements for expenditures and state law requirements for purchases. The nonprofit must have established procurement policies that meet applicable state laws.

NOTE: Refer to the new Section 3 requirements contained in Chapters 2 and 5 for additional Section 3 compliance requirements that must be implemented by the grant Recipient and the sub-recipient.

Chapter 6 - Labor StandardsAll Federal Davis-Bacon Act requirements apply to projects funded in whole or in part with EDRLF funds. The Davis-Bacon wage and labor requirements should be given careful consideration when planning EDRLF projects.

All construction contracts over $2,000 funded in whole or in part with EDRLF funds must include federal labor standards provisions. This includes contracts funded with EDRLF funds provided to the business. The local government must ensure that the business complies with the following federal labor standards laws: Davis-Bacon Act, Copeland Anti-Kickback Act and the Contract Work Hours and Safety Standards Act.The Davis-Bacon Act requires that workers on federally funded construction contracts receive no less than the federal prevailing wage as established by the U.S. Department of Labor. The law applies to most construction, alteration and renovation contracts involving more than $2,000 in labor costs.

PLEASE NOTE: Effective January 1, 2006, Oregon law requires that workers on projects funded in whole or in part with federal funds will be paid the higher of either the federal Davis-Bacon rates or Oregon prevailing wages (also called “PWR”) See ORS 279C.800 http://www.leg.state.or.us/ors/279c.html.

Page 7: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

Grant Management Handbook (2013) 9-5

Chapter 7

Chapter 8

Davis-Bacon wage rates do not apply to the business' existing work force or to newly hired low- and moderate-income persons when they are occupied at their regular duties as described in their regular job description. The entity to receive assistance may utilize its existing labor force for minor, incidental work on project activities only when no separate contracts to perform the work involved in the project activities are entered into by the entity and its existing work force. The workers cannot conduct work, which would be required to be done by licensed or certified persons (e.g., electricians, carpenters, or plumbers).

The loan agreement between the nonprofit and the assisted business should include the appropriate federal labor standards compliance sections if there is a possibility that some EDRLF funded activities could trigger compliance actions.

Fair Housing, Equal Opportunity and Section 504All civil rights requirements apply to the city/county grant recipient even if the requirements are not directly related to economic development. The city/county grant recipient must obtain information from the business(es) in order to comply with the direct benefit reporting requirements discussed in Chapter 7, Fair Housing, Equal Opportunity and Section 504, and Chapter 11, Project Reports and Closeout. The loan agreement between the nonprofit and the assisted business(es) should contain sections requiring the business to comply with federal nondiscrimination laws. The hiring and training plan also must contain a provision that the business will comply with equal opportunity and nondiscrimination laws.

NOTE: The Section 504 self-evaluation checklist applies to the city/county grant recipient but not the nonprofit sub recipient or the assisted businesses.

NOTE: Refer to the new Limited English Proficiency Plan requirements contained in Chapters 2 and 7 for additional compliance requirements that must be implemented by the grant Recipient and the sub-recipient.

Uniform Relocation Assistance and Real Property AcquisitionThe Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, applies to any acquisition of real property and relocation of persons or businesses if federal funds are involved in any part of the project cost.These federal requirements apply to private sector activities funded through the EDRLF due to the use of CDBG funds for the overall EDRLF project.

“Not Subject To” (voluntary) acquisitions are not subject to the stricter provisions of the Uniform Relocation Act. Contact your CDBG-ED Regional Coordinator to determine the project scope and whether the acquisition is “Not Subject To” (voluntary) or “Subject To” (non-voluntary).

Section 104(d) of the Housing and Community Development Act requiring replacement of low and moderate income housing units that are demolished or converted to another use in connection with a CDBG funded activity applies.

Page 8: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

9-6 (2013) Community Development Block Grant

Chapter 11

Chapter 12

Required RecordsOBDD will conduct a monitoring visit to the local government at least once during the implementation of the project, when approximately 50% of grant funds are dawn down. The monitoring agenda will include a visit to the local government, the project manager, if applicable, and the assisted business, with a review of specific loan documentation and other records. The local government and its project manager will have the responsibility to monitor the process and compliance actions of the business during the project.

Note: Not all of the monitoring items found in Chapter 11 may apply to economic development projects. The department’s Regional Coordinator will provide you with additional guidance before the monitoring visit.

Project Reports and CloseoutThis chapter applies to all local governments. The business must provide sufficient information for the local government to fill out the closeout certifications and reports.

SPECIAL EDRLF REPORTSJobs Documentation to Address the National Objective

All economic development projects must meet the low- and moderate-income jobs objective of 24 CFR 570.483(b)(4) and subject to the standards of 24 CFR 570.482(f), as specified in Section 570.483(b)(4)(vi)(F)(2). http://www.access.gpo.gov/nara/cfr/waisidx_04/24cfr570_04.html

To assist in obtaining national objective compliance, Exhibits 9C and 9D can be used to convey the requirements to the potential assisted business(es).

Job Creation Projects:

� Annual Outcome and Performance Measure Report - To comply with the federal outcome and performance measure reporting all city/county grant recipients must complete and submit Exhibit 9A for each EDRLF loan assistedin whole or in part with CDBG funds, to the Department by no later than September 1, of each year.

� Annual OBDD Key Performance Measure Report - To provide documentation for the department’s Key Performance Measures report, each city/county grant recipient must complete and submit Exhibit 9B for each EDRLF loan assisted in whole or in part with CDBG funds, to the department by no later than September 1, of each year.

� Final Report - To demonstrate that the project meets the federal national objective no later than one year after the project has been completed, all city/county grant recipients must complete and submit Exhibit 9A for each EDRLF loan assisted in whole or in part with CDBG funds.

Page 9: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

Grant Management Handbook (2013) 9-7

National Objective and Public Benefit Test

Definitions

Job Aggregation

Revolving Loan Funds

National Objective - As a general rule, each assisted business loan shall be considered to be a separate activity for purposes of determining whether the activity qualifies under this paragraph.

The applicant’s records must document 51 percent or more of the jobs that are anticipated to be created are held by or were made available to low- and moderate-income persons and the full time equivalency status of each job. At the completion of the project the grant recipient must be to document which jobs were actually created,whether each such job was held by, taken by, or made available to a low and moderate income person, and the full time equivalency status of each job.

Maintaining records to demonstrate compliance with this national objective subcategory can be quite challenging. Not only do businesses often dislike providing special reports or keeping special records, but individuals that hold a job created may resist providing family size and income data.

Public Benefit Test – As a general rule, all the jobs created from the business loans may be aggregated for purposes of determining compliance with the public benefit test. The EDRLF cost per FTE to be created includes grant administration, environmental, labor standards and program management expenses.

The cost of the project must meet at least a minimum level of public benefit. The amount of EDRLF grant may not exceed $25,000 per permanent FTE job created.

Full Time Equivalency (FTE) - 1820 hours per year

Created Jobs - Benefit is determined prior to being hired

As a general rule, jobs from each business receiving EDRLF assistance must be considered separately for purposes of demonstrating compliance with the national objective requirement that at least 51 percent of the jobs created were for low- and moderate-income persons.

To meet the public benefit standard jobs can be aggregated. Compliance involves the total number of jobs created without regard to how many (if any) benefit low and moderate-income persons.

Units of general local government may establish revolving loan funds to carry out specific, identified activities. A revolving fund for this purpose is a separate fund(with a set of accounts that are independent of other program accounts) established to carry out specific activities which, in turn generate payment to the fund for use in carrying out such activities. These payments to the revolving fund are program income and must be substantially disbursed from the revolving fund before additional grant funds are drawn from the United States Treasury for revolving fund activities. Such program income is not required to be disbursed for non-revolving fund activities as required by 24 CFR Part 570.489(f).

Page 10: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

9-8 (2013) Community Development Block Grant

State Requirements

Loan Servicing

Defaults

Program Income

Loan Processing Fees

Working Capital

The use of revolving funds in the Community Development Block Grant program is limited to those funds established by recipients of grants for Housing Rehabilitation and economic development revolving loan funds.

The recipient should have a system for properly servicing all loan funds that includes:

� Loan agreements with clear repayment terms and default definitions, descriptions of how defaults can be cured, what actions will be taken if default is not cured, and what is pledged for security of each loan; and

� Collection procedures that provide for recognition of all current amounts due and when payments were received, notification when payments are overdue, procedure for further action to collect overdue amounts, and criteria for writing off bad debts.

If the initial loans made by the nonprofit sub recipient default, the sub recipient must make every effort allowable under the loan agreement to enforce the provisions of the agreement and collect the loan amount that is due and owing to the nonprofit. These efforts must be clearly documented. If repayment of the loan, due and owing to the nonprofit cannot be collected, contact the department’s Regional Coordinator for your project for assistance.

All income generated by RLF grant funded activities (Economic Development Revolving Loan Funds and Housing Rehabilitation), in compliance with 105(a)(15) of the Housing and Community Development Act and carried out by an entity under the authority of Section 105(a)(15) of the Act is not subject to the program income and miscellaneous income tracking requirements contained in Chapter 4.

It is advisable to be cautious with charging loan processing fees for CDBG-ED funded loans where the recipient is also receiving CDBG program management funds to process loans. If fees are to be charged it must clearly be documented that the fees charged are not being used to reimburse the non-profit for any already CDBG reimbursed/reimbursable loan processing/program management. No “double dipping” is allowed.

These fees are also considered program income and must be tracked accordingly. If the non-profit accumulates $25,000 or more in program income during the reporting period (July 1 - June 30) it must be reported to the state as program income, and are restricted in use to meeting the federal national objective of LMJ. Amounts of less than $25,000 are miscellaneous income and still must be reported annually to the state but can used in any fashion deemed necessary by the non-profit.

Working capital includes: payroll; benefits; utilities (telephone, heat, electricity, internet) consumable office supplies (30 days max – one time purchase only);

Page 11: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Chapter 9 – Economic Development

Grant Management Handbook (2013) 9-9

lease/rent; shipping/postage; interest subsidy; purchase of inventory materials (see note below); and providing on the job training to newly hired employees who otherwise would not qualify for those jobs.

NOTE: Purchase inventory materials to continue production of the marketable good or service. (30 day supply max – one time purchase only, such as a truss company needing to purchase lumber or a heating company needing to purchase sheet metal. This must not be misconstrued as equipment that is not fixed and integral such as silverware etc.) Food/products can be a necessary inventory material when the assisted business is a food supplier, such as a bread company needing to purchase flour and yeast. OBDD must pre-approve all inventory purchases and they will only be allowed under special circumstances. The inventory to be purchased must be necessary to put newly acquired equipment into production so the job creation can occur. Loans from the EDRLF solely for inventory purchase will not be allowed.

No food, gifts, incentives, bonuses etc. are allowed for employees of the assisted business.

Page 12: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,
Page 13: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

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Page 14: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,
Page 15: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9A (2013) Income Limits

TABLE D - 2013 Low and Moderate Income LimitsEffective December 1, 2012

County

Median Family Income estimate for 2013

Income Level Note 1

Income Limits by Family Size

1-Person Family

2-Person Family

3-Person Family

4-Person Family

5-Person Family

6-Person Family

7-Person Family

8-Person Family

Baker $53,700 Low Moderate

$18,800 $30,100

$21,500$34,400

$24,200$38,700

$26,850$42,950

$29,000$46,400

$31,150 $49,850

$33,300$53,300

$35,450$56,700

Benton Note 2 $80,800 Low

Moderate $27,300 $43,650

$31,200$49,850

$35,100$56,100

$38,950$62,300

$42,100$67,300

$45,200 $72,300

$48,300$77,300

$51,450$82,250

Clatsop $55,600 Low Moderate

$19,500 $31,150

$22,250$35,600

$25,050$40,050

$27,800$44,500

$30,050$48,100

$32,250 $51,650

$34,500$55,200

$36,700$58,750

Columbia Note 3 $68,300 Low

Moderate $24,300 $38,850

$27,800$44,400

$31,250$49,950

$34,700$55,500

$37,500$59,950

$40,300 $64,400

$43,050$68,850

$45,850$73,300

Coos $49,500 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$31,850$50,950

$33,900$54,200

Crook $55,800 Low Moderate

$19,550 $31,300

$22,350$35,750

$25,150$40,200

$27,900$44,650

$30,150$48,250

$32,400 $51,800

$34,600$55,400

$36,850$58,950

Curry $56,700 Low Moderate

$19,850 $31,750

$22,700$36,300

$25,550$40,850

$28,350$45,350

$30,650$49,000

$32,900 $52,650

$35,299$56,250

$37,450$59,900

Deschutes Note 2 $59,700 Low

Moderate $22,100 $35,350

$25,250$40,400

$28,400$45,450

$31,550$50,500

$34,100$54,550

$36,600 $58,600

$39,150$62,650

$41,650$66,700

Douglas $45,700 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$31,850$50,950

$33,900$54,200

Gilliam $56,200 Low Moderate

$19,700 $31,500

$22,500$36,000

$25,300$40,500

$28,100$44,950

$30,350$48,550

$32,600 $52,150

$34,850$55,750

$37,100$59,350

Grant $46,300 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$31,850$50,950

$33,900$54,200

Harney $49,600 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$31,850$50,950

$33,900$54,200

Hood River $61,300 Low Moderate

$21,250 $34,000

$24,300$38,850

$27,350$43,700

$30,350$48,550

$32,800$52,450

$35,250 $56,350

$37,650$60,250

$40,100$64,100

Jackson Note 2 $52,200 Low

Moderate $19,500 $31,150

$22,250$35,600

$25,050$40,050

$27,800$44,500

$30,050$48,100

$32,250 $51,650

$34,500$55,200

$36,700$58,750

Jefferson $51,900 Low Moderate

$18,200 $29,050

$20,899$33,200

$23,400$37,350

$25,950$41,500

$28,050$44,850

$30,150 $48,150

$32,200$51,500

$34,300$54,800

Josephine $51,700 Low Moderate

$18,100 $28,950

$20,700$33,100

$23,300$37,250

$25,850$41,350

$27,950$44,700

$30,000 $48,000

$32,100$51,300

$34,150$54,600

Klamath $51,100 Low Moderate

$18,100 $28,950

$20,700$33,100

$23,300$37,250

$25,850$41,350

$27,950$44,700

$30,000 $48,000

$32,100$51,300

$34,150$54,600

Lake $50,200 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$31,850$50,950

$33,900$54,200

Lane Note 2 $55,800 Low

Moderate $19,750 $33,550

$22,550$36,050

$25,350$40,550

$28,150$45,050

$30,450$48,700

$32,700 $52,300

$34,950$55,900

$37,200$59,500

Lincoln $56,000 Low Moderate

$19,600 $31,400

$22,400$35,850

$25,200$40,350

$28,000$44,800

$30,250$48,400

$32,500 $52,000

$34,750$55,600

$37,000$59,150

Page 16: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9A (2013) Income Limits

2013 Low and Moderate Income Limits Effective December 1, 2012

County

Median Family Income estimate for 2013

Income Level Note 1

Income Limits by Family Size

1-Person Family

2-Person Family

3-Person Family

4-Person Family

5-Person Family

6-Person Family

7-Person Family

8-Person Family

Linn $55,700 Low Moderate

$19,550 $31,300

$22,350$35,750

$25,150$40,200

$27,900$44,650

$30,150$48,250

$32,400 $51,800

$34,600$55,400

$36,850$58,950

Malheur $49,000 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$33,850$50,950

$33,900$54,200

Marion Note 3 $55,000 Low

Moderate $19,950 $31,950

$22,800$36,500

$25,650$41,050

$28,500$45,600

$30,800$49,250

$33,100 $52,900

$35,350$56,550

$37,650$60,200

Morrow $53,000 Low Moderate

$18,550 $29,700

$21,200$33,950

$23,850$38,200

$26,500$42,400

$28,650$45,800

$30,750 $49,200

$32,900$52,600

$35,000$56,000

PolkNote 3 $55,000 Low

Moderate $19,950 $31,950

$22,800$36,500

$25,650$41,050

$28,500$45,600

$30,800$49,250

$33,100 $52,900

$35,350$56,550

$37,650$60,200

Sherman $55,700 Low Moderate

$19,500 $31,200

$22,300$35,650

$25,100$40,100

$27,850$44,550

$30,100$48,150

$32,350 $51,700

$34,550$55,250

$36,800$58,850

Tillamook $54,000 Low Moderate

$18,900 $30,250

$21,600$34,600

$24,3 00$38,900

$27,000$43,200

$29,200$46,700

$31,350 $50,150

$33,500$53,600

$35,650$57,050

Umatilla $58,700 Low Moderate

$20,250 $32,400

$23,150$37,000

$26,050$41,650

$28,900$46,250

$31,250$49,950

$33,550 $53,650

$35,850$57,350

$38,150$61,050

Union $55,900 Low Moderate

$19,600 $31,300

$22,400$35,800

$25,200$40,250

$27,950$44,700

$30,200$48,300

$32,450 $51,900

$34,700$55,450

$36,900$59,050

Wallowa $53,100 Low Moderate

$18,600 $29,750

$21,250$34,000

$23,900$38,250

$26,550$42,500

$28,700$45,900

$30,800 $49,300

$32,930$52,700

$35,050$56,100

Wasco $53,400 Low Moderate

$18,700 $29,900

$21,400$34,200

$24,050$38,450

$26,700$42,700

$28,850$46,150

$31,000 $49,550

$33,150$52,950

$35,250$56,400

Wheeler $45,900 Low Moderate

$18,000 $28,750

$20,550$32,850

$23,100$36,950

$25,650$41,050

$27,750$44,350

$29,800 $47,650

$31,850$50,950

$33,900$54,200

Yamhill Note 3 $68,300 Low

Moderate $24,300 $38,850

$27,800$44,400

$31,250$49,950

$34,700$55,500

$37,500$59,950

$40,300 $64,400

$43,050$68,850

$45,850$73,300

Note 1: “Low Income” and “Moderate Income” are defined in the federal Housing and Community Development Act of 1974, as amended. A Low-Income person is a member of a family with a gross income of no more than 50 percent of the area median income. A Moderate-Income person is a member of a family with a gross income of no more than 80 percent of the area median income. The “area” is either the county or the non-metropolitan portion of the state, whichever has the higher median income. The 2013 estimated median family income for non-metropolitan counties in Oregon is $58,400.

Note 2: Benton County, Deschutes County, Lane County and Jackson County are part of a Metropolitan Statistical Area (MSA). The income limits for an entire county are based upon the median family income for the MSA, even though the specific MSA area is ineligible to apply to the state-administered Community Development Block Grant program–for example, Bend in Deschutes County, Corvallis in Benton County, Eugene-Springfield in Lane County and Medford-Ashland in Jackson County.

Note 3: This county is part of a Primary Metropolitan Statistical Area (PMSA). The income limits are based on the median family income for the entire PMSA including local governments that are not eligible for the state-administered CDBG program. For example, the median family income and income limits for Columbia and Yamhill counties are the same as those for the City of Portland, Clackamas County, Multnomah County, and Washington County. Those of Marion and Polk Counties are the same as Salem PMSA.

Source: U.S. Department of Housing and Urban Development (HUD)

Page 17: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9B (2013) – EDDRLF Annual Report

Grant Management Handbook (2013) Exhibit 9B

OREGON BUSINESS DEVELOPMENT DEPARTMENT ECONOMIC DEVELOPMENT REVOLVING LOAN FUND

ANNUAL REPORTING FORM

Report Due Date: September 1, following each reporting period of July 1 – June 30.

Submit Report To: Oregon Business Development Department Attn: CDBG Program and Policy Coordinator IFA 775 Summer Street NE – Suite 200 Salem, OR 97301-1280

Grant Recipient: ____________________________Grant Number: ____________________________Date of Administrative Closeout: ___________________ Non-Profit: _____________________________________

Please report on the following.

The assisted business’s BIN and/or FEIN can be used to request this data for questions 1 and 2 below from the Employment Department. Each full time job equivalent must be 1,820 hours per year.

1. Number of full time jobs created: _____

2. Number of full time jobs retained: _____

3. The average wage of the jobs created and retained: _____________________

4. Provide the name of each assisted business and their BIN number: ________________________________________________________________________________________________________________________________________________________________

5. Estimated amount of new export sales of assisted clients: ______________

6. Number of small businesses that remain in business at least four years after assistance: ________________________________

7. Number of community capital construction projects assisted for construction:a. Infrastructure (Water, wastewater, storm drainage, streets, curbs, gutters, etc. If

other, please describe.)

b. Community Development (Facility improvement projects such as: recycling centers, food banks, or other community related projects. Please describe.)

Page 18: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9B (2013) – EDDRLF Annual Report

Exhibit 9B (2013) Community Development Block Grant

8. Number of community capital projects assisted for planning: a. Infrastructure (Water, wastewater, storm drainage, streets, curbs, gutters, etc. If

other, please describe.)

b. Community Development (Facility improvement projects such as: recycling centers, food banks, or other community related projects. Please describe.)

Organizational (Downtown Redevelopment Plans, or other community related planning projects. Please describe.)

Page 19: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9C (2013) – Letter to Business

Grant Management Handbook (2013) Exhibit 9C

Business Name __________________

Federal Community Development Block Grant (CDBG) funds assisted with _________(project name) for your business. Those grant funds require that within one year after loan execution the business will create 51% or more jobs for low and moderate income (LMI) persons. As a business receiving CDBG funds, you must agree to the following conditions:

� Comply with all the terms and requirements in the [insert name] loan fund policies. � Comply with all the CDBG program requirements: including but not limited to: the current Grant

Management Handbook (GMH); and the 2012, or most current Method of Distribution. � Provide written commitment that at least 51% of the jobs on a full-time equivalent basis, will be

held or will be made available to low and moderate-income persons as determined by the attached table.

� Provide an initial listing, by job title, of employees with the company and of jobs to be created. � Provide annual listing, by job title, race, ethnicity and handicapped status of the permanent jobs

actually created and those initially taken by low and moderate-income persons. � Provide a First Source Hiring Agreement for approval by the Oregon Business Development

Department – Infrastructure Finance Authority. This agreement must insure that low/moderate-income individuals receive first consideration on hiring decisions.

� Provide evidence supporting total number of projected jobs (e.g. business plan, etc.). � At least one position created for each $_________ borrowed. � _________ commits to create _____ of jobs within one year from loan execution. � Provide documentation or reports necessary to determine compliance with the CDBG program

requirements.

An LMI person holds the job if the person is, at the time of their hire, a member of a family whose income is equal to or below the income level designated by family size.

Jobs that are not held by LMI persons may be claimed to be “available to" LMI persons when both of the following are true:

� The jobs do not require special skills that can only be acquired with substantial training or work experience, and education beyond high school is not a prerequisite to fill such jobs, unless the business agrees to hire unqualified persons and train them; and

� The assisted business ensures that LMI persons receive first consideration for filling such jobs.

Exhibit 9A from the GMH is completed and attached. We have also attached the Income Questionnaire which must be completed by each newly hired employee to determine low/moderate income status.

Please sign on the line below indicating that you have read and agreed to the above CDBG requirements.

X____________________________________________ Signature Title Date

Page 20: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,
Page 21: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9D (2013) – Income Questionnaire

Grant Management Handbook (2013) Exhibit 9D

INCOME QUESTIONNAIRE

The information below is being requested because the ____[recipient]_________ received an Oregon Community Development Block Grant (CDBG) and, as part of the operation of a CDBG funded economic development project, the business must provide the family size and income and ethnicity/race of the persons employed at the business [insert name of business]__________________. Your answers will be treated confidentially.

1. Check the appropriate box for your family size:

( ) Single individual ( ) Family of 5 ( ) Family of 2 ( ) Family of 6 ( ) Family of 3 ( ) Family of 7 ( ) Family of 4 ( ) Family of 8 or more

2. Check the appropriate box for your family’s total gross income before taxes in 2012. (Useincome limits for the local area/county as shown on the job creation form or Chapter 3 of the current MOD.)

( ) $0 to 27,050 ( ) $41,751 to 44,800 ( ) $27,051 to 30,900 ( ) $44,801 to 47,900 ( ) $30,901 to 34,800 ( ) $47,901 to 51,000 ( ) $34,801 to 38,650 ( ) $51,001 or more ( ) $38,651 to 41,750

Page 22: Chapter 9 – Economic Development Revolving Loan … 9 – Economic Development Revolving Loan Fund Recipient Checklist It is absolutely essential that the city/county grant recipient,

Exhibit 9D (2013) – Income Questionnaire

Exhibit 9D (2013) Community Development Block Grant

As a person who is employed by a business who was funded by an Oregon Community Development Block Grant, you are asked to voluntarily respond to the Ethnicity and Race items below. If you do not provide responses, the business is required to supply responses based on their determination of your ethnicity and race.

3. Check the appropriate box of your ethnicity: ( ) Hispanic ( ) Not Hispanic.

4. Check the appropriate box of your race:

( ) White ( ) Black/African American ( ) Asian ( ) American Indian/Alaskan Native ( ) Native Hawaiian/Other Pacific Islander ( ) American Indian/Alaskan Native & White ( ) Asian & White ( ) Black African/American & White ( ) American Indian/Alaskan Native & Black African/American ( ) Other

This information is subject to verification by local, state or federal officials.

Signature Date