06-17-1993
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6-17-93
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AGENDA
Community Redevelopment Agency
June 17, 1993
4:30 P.M.
I. Call to order
II. Approval of Minutes of:
6/3/93
III. Unfinished Business
a) Rules of Conduct - Res. #93-2
b) Public/Private Partnership
c) CET A (STEPPS) Building Report
IV. New Business
. a) Funding for Beach to Downtown
Trolley
.',
V. Adjournment
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M E M 0 RAN DUM
TO:
FROM:
RE:
DATE:
The Honorable Mayor and Members of the City Commission
M. A. Galbraith, Jr., City Attorne~
CRA Rules
June 4, 1993
Enclosed is the "clean, final final" draft of the rules for the Community
Redevelopment Agency--at least until the next amendment. This incorporates the
changes you made last evening, as follows:
Rule 6, now Rule 5, was amended like this:
RULE 5
The Agency shall meet immediately prior to the conduct of regularly
scheduled business meetings of the City Commission and may schedule
work sessions as needed immediately prior to regularly ~cheduled
work sessions of the City Commission. Special meetings of the
Agency shall be called from time to time by the Chair, Executive
Director, or any voting member. Not less than Every effort shall be
made to provide at least 48 hours public notice of any special
meetings shall be provided. Except for items advertised for public
hearings, items may be removed from the agenda and additional items
may be added: this shall not apply to special meetinQs. The agenda
may be re-ordered.
In Rule 10, now Rule 9, the second "of Police" was deleted.
In Rule 14, now Rule 13, the first sentence was deleted.
In Rule 18, now Rule 15, "immediately" was deleted, "memberll was changed to
"memorandumll in paragraph (c), and paragraph (d) was amended like this:
(d) Mail with the words similar to "Personal,"
"Confidential," or "For the Addressee Only" will be delivered
unopened to the addressee. If such mail relates to Agency business
and is not exempt from pub 1 i c inspect i on pursuant to the Pub 1 i c
Records law, it will be the responsibility of the addressee to
comply with the Public Records law the mail should be made available
by the addressee to the Executive Director f.or handliRg as other
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ngency ma-l-t-.
All rules after Rule 3 have been renumbered due to deletions.
Enclosure
Copies:
Cynthia Goudeau, City Clerk
Michael Wright, City Manager
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.
RESOLUTION NO. 93-2
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF CLEARWATER, FLORIDA, ADOPTING A SET OF RULES
TO GUIDE THE COMMUNITY REDEVELOPMENT AGENCY IN
CONDUCTING ITS BUSINESS AND MEETINGS; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Community Redevelopment Agency of the City of Clearwater,
Florida, was established by Resolution 81-68 of the City of Clearwater, pursuant
to provisions of state law; and
WHEREAS, the Community Redevelopment Agency desires to adopt and implement
a revised set of rules or guidelines; now therefore
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF CLEARWATER, FLORIDA:
Section 1. The Community Redevelopment Agency of the City of Clearwater,
Florida, hereby adopts the following rules to govern it in the consideration of
its affairs and business presented to it:
RULE 1
The membership of the Community Redevelopment Agency of the City of
Clearwater, Florida (IlAgencyll), shall be composed of the five
members of the Clearwater City Commission and two ex-officio non-
voting members of the Downtown Development Board. A quorum for the
transaction of business by the Agency shall consist of three voting
members. Any action to be approved will need a majority vote of the
voting membership. A Chair and Vice-Chair of the Agency shall be
elected at the second meeting in April of each year by the voting
members on an annual basis to serve for one year. In case of the
Chair1s absence, the Vice Chair shall assume the responsibilities of
the Chair. If both are absent, the senior Agency member in years of
service shall preside. The Chair shall run the meeting and preserve
order. The Chair shall recognize all members who seek the floor
under correct procedure. Members of the public shall be allowed to
speak.
RULE 2
The Agency shall hire an Executive Director whose presence is
required at all Agency meetings. The Executive Director shall
establish the staffing of the office with the approval of the
Agency. The Executive Director shall report directly to the Agency.
The Executive Director shall be hired and removed by a majority of
the voting members of the Agency.
RULE 3
The Secretary for the Agency shall provide minutes of the
proceedings of each Agency meeting, and shall furnish copies of the
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minutes of each regularly scheduled meeting to the Chair and to each
Agency member at least seven days prior to the next regular meeting.
Such minutes shall stand confirmed at the regular meeting of the
Agency without the reading thereof in open meeting unless some
inaccuracy or error be pointed out by some member of the agency
present, and in such event, an appropriate correction shall be made.
Upon request, the Execut ive O'irector will cause the Secretary of the
Agency to provide any member with transcribed excerpts of tapes of
Agency meetings.
RULE 4
A copy of the minutes of each Agency meeting and of each resolution
wher. passed shall be furnished by the Executive Director to the City
Manager.
RULE 5
The Agency shall meet immediately prior to the conduct of regularly
scheduled business meetings of the City Commission and may schedule
work sessions as needed. Special meetings of the Agency shall be
called from time to time by the Chair, Executive Director, or any
voting member. Not less than 48 hours public notice of any special
meetings shall be provided. Except for items advertised for public
hearings, items may be removed from the agenda and additional items
may be added; this shall not apply to special meetings. The agenda
may be re-ordered.
RULE 6
The Agency shall appoint any committees or advisory boards as may be
required for successful execution of Agency business.
RULE 7
According to applicable provisions of state law, no member shall
voluntarily or involuntarily acquire any personal interest, direct
or indirect, in any community redevelopment project, in any property
included or proposed to be included in any community redevelopment
project, or in any contract or proposed contract in connection with
any community redevelopment project. Should any member
involuntarily acquire any interest in a community redevelopment
project, that interest shall be immediately disclosed in writing.
If any member presently owns or controls or owned or controlled
within the preceding two years any interest, direct or indirect, in
any property included or planned to be included in a community
redevelopment project, that interest shall immediately be disclosed
in writing, and such disclosure shall be entered upon the minutes of
the Agency. Any member disclosing such interest shall not
participate in any decision of the Agency affecting such property.
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RULE 8
The City officials whose regular attendance shall be required during
the sittings of the Agency shall be the City Manager and the City
Attorney or their substitutes; but all or any officers of the City
shall be bound to attend any meetings upon request of any voting
member of the Agency.
RULE 9
No citizen, except those determined to be out of order and subject
to removal by the Chief of Police or the Chief's designee, shall be
exc 1 uded from any meet i ng of the Agency whether it be regu 1 ar ly
scheduled or specially called.
RULE 10
Any voting member of the Agency who voted with the prevailing side
may move a recons iderat ion of any act i on of the who 1 e Agency
provided that the motion be made at the same meeting at which the
action was taken. A motion to reconsider shall be in order at any
time (during the meeting at which the action was taken) except when
a motion on some other subject is pending. No motion to reconsider
shall be made more than once on any subject or matter at the same
meeting.
RULE 11
The Executive Director, City Attorney, or any member may agenda an
item. Any citizen may request to be agendaed, even though staff has
assured petitioner that adverse action may result. The Chair cannot
depart from the prescribed agenda but the Agency may do so by a
majority vote or by consensus in response to a suggestion from the
Chair.
RULE 12
These rules, or any of them, with the exception of provlslons of
state law, may be amended or temporarily suspended at any meeting of
the Agency by a majority vote. These rules are for the efficient
and order ly conduct of the bus i ness of the Agency on ly, and no
violation of such rules shall invalidate any action of the Agency
when approved by the majority votes.
RULE 13
When a motion is made and seconded, it shall be stated by the Chair
before any debate shall be in order. The person making the motion
is entitled to the floor first for debate. No one is entitled to
the floor a second time on the same motion as long as any other
member who has not spoken on the issue desires the floor. Motions
and any amendments can be withdrawn or modified by the maker at any
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time prior to the Chair stating the question on the motion; after
that time, the permission of the Agency majority must be obtained.
The Chair cannot close debate as long as any member who has not
exhausted the right to debate desires the floor except by a majority
vote. A tie vote shall constitute a continuance to the next
regularly scheduled meeting.
RULE 14
The Executive Director for the Agency shall provide material to the
press and to the public via a special box in the City Clerk's
office. Reports shall be made available in the Clerk's office for
the public to check out and study at leisure.
RULE 15
All mail to the Agency arriving at City Hall and received pursuant
to the Public Records law or in connection with the transaction of
official business by the Agency shall be copied and provided to all
members and to the press with the following exceptions:
(a) Mail from governmental agencies, addressed to the Chair
which is clearly intended for administrative action will be
delivered to the Executive Director with informational copies to the
all Agency members.
(b) Anonymous letters will not be distributed.
(c) Only the agendas will be circulated. Items of
considerable length (such as petitions) wi 11 not be copied, but
instead a memorandum will be distributed announcing the availability
of the item in the office.
(d) Mai 1 with the words simi lar to "personal, II
"Confidential," or "For the Addressee Only" will be delivered
unopened to the addressee. If such mail relates to Agency business
and is not exempt from public inspection pursuant to the Public
Records law, it will be the responsibility of the addressee to
comply with the Public Records law.
(e) The Executive Director will be responsible for seeing
that the mail addressed to the Agency members is properly answered
or placed on the agenda.
RULE 16
As used in these rules, "majority vote" means the concurring
vote of a majority of the voting membership of the Agency.
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RULE 17
Except as provided herein, or as may be required by Florida
law or the City Charter, the rules of the Agency for the conduct of
its business shall be as provided in the most recent edition of
Robert's Rules of Order.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this
day of June, 1993.
Attest:
Cynthia E. Goudeau
City Clerk
Rita Garvey
Chair
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MEMORANDUM
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TO:
Michael J. Wright, City Manager
Jerry D. Sternstein, Economic Development Director~
Public/Private Ventures
FROf>1 :
SUBJ EC1':
OA'rE:
May 1, 1993
The issues surrounding new project: development, particularly in
down towns, are qui te complex; no subject. is as concept.ually
intricate or emotionally charged as public/private cooperative
ventures. The purpose of this paper is to examine this process
and give a balanced perspective from which rational policy
discussions can emanate.
For many years, most real esta te or project development took
place in an ordered framework which separa ted the public and
private sectors. The private sector pursued their diverse
efforts and focused their energies on developments where
investment return potential reigned supreme. If the bottom line
on the proforma was ,not encouraging, a project was simply
shelved. The public sector was interested only in regulating the
development and providing necessary support services like
infra-structure, schools, fire and police protection.
There were always historical exceptions to this role. The federal
and state governments have, upon occasion, been willing to be
handmaidens to development whenever the policy imperatives were
compelling enough. Examples of this can be found in the post
civil war transcontinental railroad ventures. The federal
government dealt away vast public land right-of-ways to railroad'
speculators in order to encourage these entities to undertake
costly and risky rail routes. Obviously, public policy dictated
the economic stimulus of the private sector to bring aoout the
desired result of tying the east and west coasts together with a
ribbon of steel tracks. The early nineteenth century canal
building also serves as an example of public/private commingling
with not always good results. There were times when the private
sector simply would not assume large scale risks. Perhaps the
greatest real estate venture in our country's history,' the
Louisiana Purchase, would have been stillborn had it not been for
the federal government's sponsorship of the Lewis and Clark
Expedition. Once t.his heroic expedition charted the path, land
development and the westward migration toward Manifest Destiny
began.
What has all this history to do with our present
The answer, in short, is a great deal. When the
great and the anticipated return on investment
dai' si tua tion?
risk seems too
too small, the
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private sector will generally not undert.ake a
public sector typically intervenes with some
prods the private sector to move forward.
project.
inducement
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that
since our subject is downtown redevelopment and not railroads or
canals, let's look at the problems we face. Those who study
downtowns agree that events of the past forty years have had a
profound influence on the decline of the downtown.
* Rise of the automobile and the decay of mass transit
systems.
*, Highway cons~ruction which opened peripheral areas
of the city to residential development, leading to the
suburban exodus.
* Development of strip and suburban shopping malls to
service the needs of the suburbanites.
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* Inability of the downtown to compete with the perceived
conveniences offered by malls and to accommodate the
rapidly emerging automobile culture.
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* Scattered, unconcentrated downtown land ownership making
large land assembly cost prohibitive.
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From a retail aspect, malls and shopping centers tend to "out
market" downtowns. They offer shopping diversity and convenience
and have financial resources that downtown interests can only
envy but not possess. Malls are unified in their marketing with
products that are well defined. Downtowns are hampered by a lack
of consensus that even extends to hours of opera tion. Malls
possess a friendly shopping environment wi th a mix of products
that draws customers to the facility.
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Parking, the difficulty and cost of land assembly, traffic access
and congestion make downtown projects--office and retail--almost
impossible to launch. Downtown land values are usually too
costly to support residential' projects without a significant
writedown in land value. Add to this recipe the economic
doldrums of the past five years which severely restricted
inves tor capi tal and credi t and you ha ve developmen t dollar~
chasing only the very few, safe projects. Not too dissimilar to
the railroad scenario of the past century. Hence, the need ~or a
merging of the public/private interests and resources to
stimulate project initiation in the less attractive downtown
areas of the nation.
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For public off icials who
ailing downtowns, there
public/private ventures.
their
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are committed to a rebirth
are not many alternatives
The range of options are:
of
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* Market the downtown on its own (limited) merits. Offer
a developer nothing except bureaucratic cooperation.
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* Undertake the development entirely with public funds
assuming all risks.
* Do nothing and hope that the downtown will regenerate
itself. This is the "miracle option".
* 'Find a private partner, prudent.ly negotiate terms and
initiate a project in which the participants share the
risks of failure and the fruits of success.
IE one accepts these options as valid, a city's development role
can be summarized in the following manner:
*Contractor. The city uses public monies to move a
project forward. In this sense, the public sector is the
"development engine" that gives the project momentum.
*Facilitator. The city gives incentives or inducements
to expedite the project. Land assembly, land write-downs,
subordination of interest, parking and infra-structure'
improvements are typical.
*Expediter. The city helps to remove bureaucratic
roadblocks that delay, complicate or impede
the development's progress.
Generally, cities that become involved in development blend these
roles to fit the particular needs of the project.
A recent issue of the Downtown Idea Exchange had this to say:
In the foreseeable future. ...developers will not be the
drivers of downtown projects. The public sector, and its
close relatives in the quasi-public sector--improvement
districts, public corporations, authorities, associations
and all sorts of hybrids--will expand their downtown
economic role and power. They will identify development
potentials, conceptualize proj~cts, work out the mechanics
and legalities, manage the "negotiations, provide some
financial underpinnings and push the whole process forward.
What recent events brought the public sector into this co-
developer plus role? During the urban renewal days of the mid
1950's to late 1960's, development programs were created by those
officials most removed from the local sdene--federal bureaucrats
in ~~ashington, D.C. City officials were assigned activities
relevant to site acquisition and clearance. They were to assure
that these activities conformed to the specifications of the
redevelopment plan that was done in Washington. The grand scheme
assumed that once the land "'las assembled and cleared, private
interests would purchase the land and develop it in compliance
with the plan. Since market conditions were frequently
downplayed when the grandiose plans \'Iere formula ted, developer
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response was not overwhelming and prime, assembled, cleared urban
parcels lay fallow for decades forming an empty wasteland in the
center of many cities. Years later, a few cities like Baltimore,
Maryland were able to "turn around" their vacant parcels and in
Baltimore's instance, initiate the Inner IIarbor Project with the
Rouse group.
With t~e advent of the Community Development Block Grant Program
in the 1970's, cities began to become more involved in the
development process. As the federal government began to
disengage i.tselE from direct manipulation of the urban scene,
cities '...ere thrust into the vacuum. The much loved and much
missed Urban Development l\ction Grant (UDAG) was, in essence, a
prime pUblic/private development tool. This program brought city
officials into intimate contact with developers and removed any
doubt relevant to the codevelopment nature of the emerging
relationships. Public/private dealmaking reached its pinnacle.
The. old image of hapless, passive public officials being played
for all their worth by crafty, manipulative developers vanished.
Public/private ventures cast the respective participants in roles
that '-Iere far from traditional. Instead of regulatory enforcer
and infra-structure provider, roles were blurred according to the
imperatives of the particular project. In some instances, the
developers themselves readily agreed to pay some portion of the
inEra-structure costs in return for a needed public incentive.
Such incentives ranged from joint venture parking structures to
tax aba temen ts, tax exempt financing, land wri tedowns and land
subordination. The tapestry woven in such arrangements is varied
and oftentimes unique. .
The substance and scope of the public investment and the skill of
the respective negotiators will determine the public "slice" of
the project. Aside from a return on investment, a viable project
gives valuable indirect rewards to the public sector in terms of
increases in tax:ible values, jobs creation and other economic
benefits that would not accrue without the project. In fact,
these secondary economic gains may yield more immediate payoffs
than the direct financial project stakes that secure a specified
percent of cash flow through loan paybacks, participatory leases
and equ i ty share. These may take years to make their economic
presence felt. Successful projects can also serve as catalysts
that give much needed impetus to other downtown ventures. They
give an impression of viability and. activity in a downtown and
this can attract other investors to the area who seek to
capitalize on the success, perceived or real, of the project.
The attached article from the Downtown Idea Exchange provides a
good summary of the pros and cons of public/private ventures.
- 4 -
-D'OWl1tOW11 Idea E)cc111al1geQO
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rSSCllliallnrOnnalion For Downlown Rcvi(,tliwlJoll Vol. 39. No, 9 May I, 1992
Downtown Public/Private Partnersl1lps
Must Be Scrutinized To Ensure Rewards
Local officials need to lake grealer care in doing
business wilh b\lsilicss. Mall)' public/private
prpjects intended to r'evitC\liz.c downlown o[len
risk only public dollars and reward only privale
interesls. \Vorsc, if thesc projects fnil, ns they
often do, downlown does nOl reap any bencfils
while developers lose nOlhing. ^ publiC/private
partnership should be just thal- a partnership,
with potcntial risks and rewards shared by the
developcr and the downtown.
To succeed ill the public/private partner-
ship game, cities and IOWIlS must be able to
analyze prospecli ve projects [rOI11 the developer's
point of view as well as downtowll' s. IIowever,
locnl governmenls OftCIl "lack slaff expCl tise
in real estale economics and canllot validate
lhe investmellt clai ms of their pri vate P;)rt~
ners," says David S. Sawicki, a professor of
city planning at lhe Georgia Insli lu te of Tech-
nology ill Atlanta.
\Vhat is essclltial. Sawicki says, is a system
of public decision-making .that cnn determine
the appropriateness of public inveslment and
{hen ellsure that llle pu blic interesl will be
. served. Otherwise, in their pursuit of activitics
and sites that will yield additional revellues,
local governmcnts and downlowns lllay cnd up
spending too much to service them. .
Partnership Guidelines
When a city or lown engagcs thc business
comulUl)ily as n co-il1veSlor for n downtown
projcct, rcgru.dless of the sophisdclltion or scale
of lhe deal, Sawicki suggests officials consIder
the following general guidelines:
· The project should be part of an overall plan
[or the physical and economic development of
lite cily. The projecl should not be considered
a separate one-lime expenditure or be driven
solely by markel forces. A balance musl be
sought bet ween markel-driven incremental
(orees and forces of cOll1pr~hel1sive planning.
· The city must do a full-blowll, discounted
benefit-cosl sludy to assess adequately the
efficacy of llle project All COSlS and benefits,
including off-budgel lerms, must enler lhe
calculus. Those a ttribu lcs that canllol be quan-
lified easily can be valued by analyzing lhe
cost-benefit results.
For example, if the deal leaves the city $20
million shon in discOllnled dollars, then the
Ilon--quanlifiable benefits should be worth that
much to public de~jsjon makers. The timing of
costs and benefi ts canllot be ignored.
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<<&> 19921llexoflder Research &: COllll/lllllicaliollS. Inc. AU rigllts reserved.
· There must be a CuB public airing of lhe
project's intended costs and benefits. City
pJnnncrs should analyze these items carefully
and determine their accuracy. As wilh any
project, there should be' a full discussion of
opportunity costs. a frallk appraisal of lhe risks
and uncertainties, and an explanation of how
those faclors nre valued ;JY public decision-
makers. To aC,complish lhis, a structure BlUst
exist or be put jn place to provide checks and
balances in the system. And a balance must be
',achieved belween full disclosure and the [prac-
tical) need to cut the deal behind closed doors.
· Thecity's planners 11'lUst have full access to the
private developer's pro formas and be prepared
to make an independent judgement of their
validity. [II federal money is involved] develop-
ers are often required to send their pro fonl1as to
the Department of I-lousing and Urban Develop-
menl in Washington, D.C., bUl nOl lo local or
regional offices or to cily governmellls.
· City officials must make rules about the
rights and responsibilities of the quasi-public
agency or ngencies involved [e.g., a down-
town development authority). For example,
the agency should never be in a position to
keep detailed infonnation aboulthe deal out of
thehands of ci ry officials or the general pu blic.
· City governments need to be structured so
that entrepreneurial activities (development)
and evaluative and analytical activities (policy
and plannir1g) are separate but equal fUllctions.
One organizational entity cannot do 90th.
· The city mllst hire talented city planning
stnff that can see the larger picture of the city's
, comprehensive plan and the project's conform-
. unce to the plan, as well as perceive detailed
financial analysis that is invariably part of a
complex project. Consultants C~\I1 be used if,
becauseofinadequutesalary structures 01' other
reasoils, staff with these talents cannot be
hired [full-time]. But consultants really ,do not
measure lip to an excellent slaff thal can follow
lhe project and its ever-changing physical and
financial structure 011 a day-tb-day basis. +
z
Downt~wn Idea Exchange
"
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,....
Memorandum
FROM:
Jerry D. Sternstein, Economic Development
,\,
Director ~ b.
TO:
Michael J. Wright, City Manager
SUBJECT: Research Report/CDDs, CDCs, Bank CDCs
DATE:
March 7, 1993
As a resul t of questions raised a t a CRA meeting, I initiated
research int.o what might be termed, t.he "three Cs". These
economic development programs are Community Development Districts
(CDDs), Communit.y Development Corporations (CDCs), and Bank
Communi ty Development Corpora tions (BeDCs). While the three Cs
sound identical, in use, they are distinct economic developmen t
tools.
The Community Development District ~s a local unit of special
purpose governmen t wi th a five member elected Board of
Supervisors created to provide a method for financing and
managing the construction, operation and maintenanace of some or
all of the capital infrastructure and basic community development
services necessary to accommodate projected growth without
overburdening state, county or municipal governmental units.
The funds required to initiate infrastructure improvements for
roads, sewers, bridges, parks, etc. are raised by selling tax:
free bonds, usually 20 year issues, which are then retired by the
revenue generated from the assessments and taxes levied on
district property owners. These assessments and/or taxes run the
gamut from ad valorem, benefit and maintenance and special
assessment taxes as well as selected fees and charges.
CDDs have become increasingly important, particularly to
residential/real .estate developers who seek ways to start or
continue new proj'ects when credi t from other sources is either
unavailable or extremely difficult to obtain. CODs also provide
a way for developers to comply with Florida's growth management
laws which require tha t roads and other improvements be funded
before the first lot can be sold.
Community Development Corporations are state chartered non-
profit corporations with an elected Board of Directors. These
corporations are structured to conform to various state criteria
and, once chartered, are eligible to apply for grants and/or
loans. Grants may be allocated to CDCs for up to $100,000 for
administrative support. Funding is based on a competitive grant
application process. Loans may be made to CDCs for specif ic
projects and revenue generating ventures for up to $250,000.
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lI.t>tins may be made to new or expanding businesses through the
Guar!lnty Loa n Program or the Direct Loa., Program. Direct loans
are required to match every dollar of state allocated funds with
tWlffllars of private funds.
To" ~Jcome operationally eligible under State statutes, a CDC must
firs"t be recognized as a non-profit corporation which entails
s~ring membership support from those who live within the
~e-J;"ice area by virtue of democratic elections for a governing
Board of Directors. The" target area" in which economic
development projects are located must meet one or more of the
following criteria:
,..,
a slum area or a blighted area
a neighborhood strategy area of a community development
block grant program
a neighborhood housing service district
an area designated as a conservation community
an enterprise zone
Finally, documentation must be provided to confirm that the
target area to be assisted is the same as the service area or an
area contained within the boundaries of the service area in which
the CDC operates.
BankCDCs are organizations funded by banks, bank holding
companies and/or federal savings associations under special
regulations that encourage investments in local community and
economic development projects. Bank CDCs are proving to be
flexible private sector sources of funding and are being used to
finance many different types of local projects. Bank CDCs have
been promoted by the federal Economic Development Administration
and can be part of a bank IS ac ti v i ties under the Communi ty
Reinvestment Act.
Historically, bank regulators wanted banks to participate in
local community development activities but banking laws and
regulations limited some banks' investment portfolios. The Bank
CDC program offer~ banks more flexibility to make certain types
of investments. Bank investments under this program are special
in tha t :
Bank CDCs can make equity investments in real estate or
small businesses,
- Bank CDC investments are viewed differently than regular
bank loans by bank regulators ahd examiners, and
- Bank CDCprograms are considered favorably for Community
Reinvestment Act activities.
Bank CDCs may take diverse organizational forms. They may be for-
prof it or non-prof it. They may be owned by a single bank, a
group of banks, or by banks and other investors such as savings
associations, utilities and corporations. As entities, they are
creations of and regulated by federal and state bank regulators,
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, " .' '# t .; , " " '." I . ' '., , ' '.
and any investment in a Bank CDC m~st be reviewed and approved by
each institution's bank regulator. These regulatory bodies are:
- The Federal Reserve Board which regulates bank holding ,.
company investments in Bank COCs,
- The Office of the Comptroller of the Currency which
regulates national bank investments in Bank COCs.
- The Office of Thrift Supervision which regulates
investments in Bank COCs by savings associations, and
State Banking Regulatory agencies which oversee invest-
ments in Bank COCs by state banks.
Investment strategies of Bank COCs fall into several "niches".
The most frequent is capital to fill the small business equity
gap between conventional bank loans to small businesses and
investments by venture capitalists. Typically, banks take little
risk and earn a low return of 1 to 2 percent over prime while
venture capitalists take greater risks and target a return of 40
to 50 percent on invested capital. B3nk COCs can be effective in
hellping to fill this financing gap. For example, a typical
clien t might be a small, local firm tha t needs capi tal to take
advantage of a growth opportunity, but isn't bankable because it
is too highly leveraged and has insufficient collateral. The
Bank COC might decide to make an unsecured loan at 12 percent per
year wi th stock options designed to produce an addi tional 8
percent per year if the business fares well. This results in a
target of 20 percent return on capital. The Bank CDC takes more
risk, and conversely expects more reward.
Another Bank COC niche is equity investments 1n property
development. This includes equity investments in downtown
commercial development projects, investments in speculative (no
pre-leasing) industrial buildings, and investments in small
business incubator buildings.
Yet another niche is in minority business development. Some Bank
COCs concentrate on making "micro loans" ($5k to $50k) and
"equity g3p guarantees" for minority businesses in targeted
areas. Such loans. help to make some deals bankable and, over the
long term, stimulate the creation of new business.
The most significant difference between regular bank loans and
Bank COCs is that the COCs can make equity investments. Simply
stated, an equity investment by a Bank CDC is a way to defer the
short-term, relatively certain return of a bank loan for the
expectation of a larger but less certain return in the long term.
Sponsoring
involvement.
banks can derive certain
These benefits include:
benefits
from
their
CDC
- direct return on investment
- tax credits or other tax advantages
- enhancement of regular bank loan or deposit business
resulting from the bank's involvement with CDC projects
- 3 -
,
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.... . ~ I__~P~" ','1' I . '~',,' . .,', ~j', J " '.' .f, ,',." " .... ,-;,~". y.' l~"~ .,
"', I... ", ',," I' I "/ \ . \1' I . . -'" I" . ,I,' '. . . .' ". .. ..".' . " '
::.... -" ',". .' ./,.-::...}..>;..'I,,,:,,..,",,\~.,.:,'.":,,-:'-:.~:/',,'" .\....~....'>:: :,:-"~'<:...,y.::>::..',~:":""";"'1 ....>:;'.:.:'(.;'::,.....<.\~;
, ,. , ./;....,. . " . ..' of. .1\'. . '.~1'... ;,.-...:. .., . , ~ " . ~ .. . . '" '.'. I \
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.:,:.:.,::" "<':'.'<'i,'l:'~_q,
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- indirect benefits from local area growth
- positive image, publicity and community relations
It is too early to predict the long term viability of Bank CDCs.
At this stage, some critics characterize them as token gestures
by banks to comply with the current interest in the Communi ty
Reinvestmen~ Act. If the investment niches yield high losses or
are only marginally successful, sponsoring financial institutions
might abandon the concept.
Detailed information relevant to the three Cs is included as
exhibits to this report.
_ 4 -
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. ;/0 . ". . I . . / ., ......., \ . 'i' . . '. .' i \" '. . . .. , \ " , . ' ., .
," :.' " .....;.': ">",,"', :",':'\ 1.\.../;..1.,.:.,..: >~':'-':'I'::'~'<'" .,...:../:.::.~.\'...:"..., ,:~...':/..<:..;:::.....
,I, '
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.
.
.
THE COKMUNITY DEVELOPMENT DISTRICT:
n VEHICLE FOR FINANCING ARD
MAN~GING INFRASTRUCTURE DEVELOPMENT
IN FLORIDA
Greenberg, Traurig, HoEfman,
Lipoff, Rosen & Quentel, P.A.
Miami, Florida
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TABLE OF CONTENTS
..
Pag~
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I. 'WHAT IS A COl-lMUNITY DEVELOPHENT DISTRICT?....... 1
II. BENEFITS OF A C01-u.\UNITY DEVELOPMENT DISTRICT..... 2
III. SPECIAL POWERS OF A COru1UNITY DEVELOPMENT
01 STRI CT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
IV.
TAX-EXEMPT FINANCING; CONVENTIONAL FINANCING.....
9
v. ESTABLISHMENT OF A CO~1UNITY DEVELOPMENT
o I STRI CT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
VI.
HOW A COMMUNITY DEVELOPMENT DISTRICT OPERATES....
15
THIS MEMORANDUM IS PREPARED AS AN INTRODUCTION
FOR INTERESTED READERS AND IS NOT INTENDED TO
BE A COMPREHENSIVE PRESENTATION OF LEGAL OR TAX
MATTERS RELl\TED TO COMMUNITY DEVELOPMENT DIS-
TRICTS
I
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, " '" ,",:' ,...~. ',; .
. .
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THE COMMUNITY Dr.vELOPKENT DISTRICT:
~ VEHICLE Fon FIH^NCING ~lD MAN^GING
INFRASTRUCTURE DEVELOPMENT IN FLORID~
I. 1i'1HAT IS A COl-iMUNITY OEVELOPHENT DISTRICT?
1\. Enablinq l\uthority. 1\ -community development district:
("COOn) is a locnl unit of special-purpose governmerit:
c~eated and organized under the Uniform Community
Development District nct of 1900, Chapter 190, Florida
statutes, as amended (the "Act"). ^ COO is subject: to the
provisions of the ^ct and general law with respect:. to its
crea tion, powers, accountabili ty, disclosure r equi rements,
governance, and termination. See How a Communil:y
Development District Operates, at VI, below.
B. Generally. l\ COD is established after public
hear iogs, is governed by an independent: body established
under the Act and is authorized to perform certain special-
ized functions. See Special Powers of a Community Develop-
ment District, at: III, and Establishment: of a Community
Development District, at V, below.
c.. Local Public Entity for Financing and Hanaging Capital
Infrastructute and Services. l\ COD provides a method for
financing and managing the construction, operation and
maintenance of some or all of the capital infrastructure and
basic community development services necessary to service
projected growth without overburdening other governmental
units (state, county or municipal) and their taxpayers. A
COO provides a mechanism whereby new growth within the CDl
pays for itself. See Benefits oE a Community Development:
District, at II, below and Special PO\t/(HS of a Community
Development District, at III, below.
D. Bond Financing. I\. COD provides a source of financing
to build public infrastructures at a potential~y lower
cost. See Tax-Exempt Financing; Conventional Financing, at
IV, below.
E. Pe rpe tual Public Owner s h ie.. l\ COD also prov ides a
potentially perpetual public entity to own, operate and
maintain the public infrasl:-uctures onca they are built and
the developer is gone. See How t.l Conununil:y Development
District Operates, at VI, below.
...
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'II. BENEFITS OF A COMMUNITY DEVELOPMENT DISTRICT.
A. Benefitg to the Landowner/Developer:
. ^ CDD gives the landowner/developer an ~fficient
financing mechanism by which (i) to use less expensive
front-end c~pital to finance the insta~lation of
infrastructure a.nd \:0 assure the delivery of basic
community services ~nd (ii) to more economically pay
for the operation and maintenance of infrastructure
and services.
· During the early years of a COO, the landowner./devel-
oper generally controls the governing body of the COO,
giving the landowner/developer an effective management
entity to plan and implement the proposed development.
B. Benefits and Safeguards to the Local General-Purpose
Government.
· 1\ COO assures the local general-purpose government:
(the county or municipality within which the COO is
located) that: new growth will pay Eor itself with
respect to capital infrastructure and-the delivery of
certain basic services.
· A COD performs management and financing funct~ons for
large scale community development, but cannot function
other than as authorized to implement the planning and
regulatory parameters approved by local governments.
· While a COD is an independent special district within
a county or municipality and is endowed with certain
powers which are necessary for the effective construe'
tion, operation and maintenance of capital inErastruc-
ture and services, the net is selective in the powers
granted to a COD. Certain types of powers may not be
exercised by a COD. All governmental planning,
environmental, and land development 1aws, regulations,
and 'ordinances apply to all development of .the land
within a CDD.
.
COD's do not have the power of a local government to
adopt a comprehensive plan, bui l.ding code, or land
dev-eloprnent code, as those terms are defined in the
Local Government Comprehensive Planning and Land
Development Regulation Act. The creation of a COO is
not a development order under state law and a COD can
take no action which is inconsistent with applicable
comprehensive plans, ordinances, or regulations of the
applicable local general-purpose government.
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. The county or municipality is assured of having an
identifiable public entity which is legally mandated
to implement its development parameters throughout
full build-out of the development.
. The Act provides that no debt or obligation of a coo
will constitute a debt or obligation of the local
county or municipality without its consent.
. Unless taken over by the county or municipality or
otherwise terminated as provided in the Act, a COO
will continue in existence in order to operate and
maintain the capital infrastructure and manage the
delivery of basic services within its borders.
. The Act guards against the proliferation, duplication
and fragmentation of municipal or county services by
providing mechanisms for termination, annexation or
transfer of all 'or part of the COD services to the
affected county or municipality.
. The Act requires submission by a CDD of various els-
cal, budgetary and management reports, ensuring that
an affected county or municipality will be fully
informed about the activities of the COD.
. The Act requires that a COO must exercise all of its
powers consistent with applicable due process, disclo-
sure, accountability; ethics, and government-in-\:he-
sunshine requirements which apply to governmental
entities and to their elected and appointed officials.
c. Benefits to Taxpayers and to COO Residents.
. If a COO is established, existing county and municipal
taxpayers do not have to pay for new growth within the
COO or for the subsequent build-out of the private
development.
. Residents within a coo are assured oe long-range
planned infrastructure designed to handle future.grow- r.
th of the development. .
.. Residents ~i thin a Coo will usually exper lence lower
unit assessment costs for capital infrastructure and
the delivery of certain basic services due to lower
financing costs associated with tax-exempt bond finan-
cing and potentially lower administrative costs as a
result of localized, single purpose management. I'
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. Residents within a coo are assured that all develop-
ment conditions of the state and of the local general-
purpose government will be followed and that the
infrastructure will be operated, maintained and ser-
viced after the original developer is gone.
. Residents wi thin a COO recei ve the benef its of the
full disclosure and notice requirements of the Act,
providing the opportunity to participate in coo pro-
ceedings and influence the operation, maintenance and
delivery of the services for which the COO is respon-
sible.
D. Benefits to .State of Florida and to Regional Agencies.
. A COO enhances and reinforces comprehensive planning
both during the initial application phases and imple-
mentation and enforcement phases.
. The Act cons ti tu tes the sole au thor iza tion for the -.. I
future establishment oE independent COOs which have
any of the specialized functions and powers authorized
therein, thus providing the opportunity to halt the
use and proliferation of independent districts in land
development without: consistent: legal guidelines and
policy ..directives to protect the general welfare of .,....1
the res~dents of the state. .
. A COO assures that large-scale development of regional
impact with a long ,build-out period will be managed
and operated with all regulatory and governmental
planning requirements timely met.
.
.
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III.. SPECII\I:, PO~lERS OF l\ COMMUNITY DEVELOPMENT DISTRICT.
A. General. In order to allow a COO to effectively
finance and manage the major capital infrastructure of a
development and to deliver basic community development ser-
vices, the Act.: vest:s COOs with certain special powers. To
economically effectuate such powers a COO may engage in
certain types of tax-exempt: bond financing (see Tax-Exempt
Financing; Conventional Financing, at IV, below).
B. Special Powers with Regard to Basic Infrastruc-
ture. Subject to the regulatory jurisdiction and permitting
authority of all applicable governmental bodies, agencies
and special districts having authority with respect. to any
area included therein, a COD may plan, establish, acquire,
construct or reconstruct, enlarge or extend, equip~ operate
and maint:ain t.:he following basic infrastructure: .
. water management: and control;
. water supply;
. sewer and wastewater management;
. bridges and culverts;
. district roads; and
. street lights.
c. Special Powers Requiring Specific Consents.
consent of the af fected county or municipali ty, a
plan, establish, acquire, construct or. reconstruct:,
or extend, equip, operate and maintain additional
and facilities for:
Wi t h t.:he
coo ma y
enlarge
sys tem.
., parks and facilities for indoor and outdoor recrea-
tional, cultural and educational uses;
. fire prevention and control;
· school buildings and related structures;
. security, including, but not limited to, guardhouses,
fences and gates and electronic intrusion-detection
devices (but a CDO may not maintain its own police
force) ;
. control and elimination of mosquitoes; and
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.0
. .
.
waste collection and disposar.
D. Taxation Powers; Fees and Other Charges. Among the
special powers vested in a CDO is the authorization to
assess certain types of taxes and fees within the COO.
. Ad Valorem Taxes: A COO the members of whose govern-
ing body have been elected by the qualified electors
of the COO (as opposed to having been elected by the
landowners of the COD) (see How a Communi ty Develop-
ment District Operates, at VI., below) may levy and
assess ad valorem taxes on all the taxable property
within the COD, for the purposes of (i) construction,
operation and maintenance of assessable improvements,
and (ii) payment of the principal oE, redemption pre-
mium, if any, and interest on general obligation bonds
issued by the CDO and to prov ide for. any reserves
established in connection with such bonds. .
The levy of ad valorem taxes by a COD must be
approved by the qualified electors in the COO by
referendum when required by t:he state constitu-
tion.
Ad valorem taxes which may be levied by a COO
are in addition to 'county and all other ad
valorem taxes provided by law.
Ad valorem taxes levied by a COO for operating
purposes (exclusive of debt service on general
obligation bonds) may not exceed 3 mills, except
tha t a COO au thor i zed to engage in any of the
activities requiring the consent: of t:he Ioca.
general-purpose governme.nt may levy an addition-
al 2 mills for operating purposes (exclusive of
debt service on general obligation' bonds).
· Benefit and Maintenance Taxes: A COO may levy benefit
taxes to pay principal of, redemption premium, if any,
and interest on bonds issued to finance wate~ manage-
ment and control facilities of the COO and maintenance
taxes to maintain and preserve such facilities.
CI Special Assessment Taxes: A CDD may levy special
assessments, in accordance with applicable law, for
the construction or reconstruction of the systems and
facilities which the COD is authorized to undertake,
and may issue certificates of indebtedness and assess-
ment bonds in connection therewith.
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Fees and Charqes: A CDO is authorized, aEt:er public
hearing, to prescribe, fix, establish, and collect
rates, fees, rentals or other charges, and to re"ise
the same from time to time, for use of the facilities
and services furnished by the COD. A COO may also
provide for reasonab~e penalties against any user or
property with respect to any rates, fees, rentals or
other charges that are delinquent.
E. Other General Powers. In addition to the foregoing, a
COO possesses the following powers, among others, under the
Act:
.
. To sue and be sued in the name of the COD.
.
To acquire, by purchase, gift, devise or
real and personal property, or any estate
to make and execute contracts and other
necessary or convenient to the exercise of
otherwise,
therein and
instruments
its powers.
. Subject to the requirements of state law relating to
public bidding, to contract for the services of con-
sul tants t:o per form planning, engineer ing, legal or
other appropriate services of a professional nat:ure.
. To hold, control and acquire by donatiqn, purchase or
condemnation any public easements, dedications to
public purposes or any reservations for those purposes
authorized by the Act. .
. To lease to or from any person, firm, corporation,
association or body, public or private, any projects
of the type that the COO is authorized to undertakl
and fac'lli ties or prope r I:y of any na ture for the use
of the COO to carry out any of the purposes authorized
by the Act.
. To exercise the power of eminent domain pursuant to
the appl~cable provisions of state law, over ?ny pro-
perty within the state, except municipal, county,
state and federal property, for the uses and purposes
of the COO relating solely to water, 'sewer, district
roads and water management; provid~d, however, that if
such power of eminent domain is to be exercised beyond
the physical boundaries of the COD, prior approval
must be obtained from the governing body of ~he county
(if the taking will occur in an unincorporated area)
or the municipality (if the taking will occur within a
municipality).
.
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.
. ~
.
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. To cooperate with, or contract with, other govern-
mental agencies as may be necessary, convenient,
incidental or proper in connection with any of the
powers, duties or purposes authorized by the Act.
....
. To ~dopt and enforce appropriate rules (following the
procedures of the Administrative Procedure Act, Chap-
ter J.20, Florida Statutes) in connection with the
provision of one or more services through it:s systems
and facilities.
. To exercise all of l:.he powers necessary, convenient,
incidental or proper in connection with any of the
powers, duties or purposes authorized by the Act.'
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IV. TAX-EXEMPT FIN^NCING; CONVENTIONAL 'FINANCING
A. Generall~. One of the major benefits of a coo is the
authority to issue tax-exempt bonds and notes to finance the
capital infrastructure of a development. The ability to
issue tax-exempt bonds and notes means that a COO may
finance .the capital infrastructure of a development: at a
lower cost than would normally be incurred~through conven-
tional borrowing. A COO may issue general obligation bonds,
assessment bonds, revenue bonds and refunding bonds. A COD
may also issue bond anticipation notes. Bonds issued by a
COD are not backed by the full Eai t:h and credit of the
county or municipality in which the COD issuing such bonds
is located, or by the state or any political subdivision,
depart:ment or agency thereof. Any bonds to be issued by a
COO maturing over a period of more than five years must be
validated and conE irmed in accordance wi th, the applicable
laws of the state.
Properly structured, and assuming compliance with
cer tain covenants rela ting to the bonds, the interes t on
bonds issued by a COD under the Act qualifies for exemption
from the holder's gross income under the federal tax laws
and the bonds are generally exempt: from registration under
state and federal securities laws. Taxes relating to t:he
federal Alternative Minimum Tax and the "Superfund Tax" may
apply. (All matters relating to issues of taxation and
securities laws exemptions should be passed upon by quali-
fied counsel.)
The Act specifically exempts interest income on all
bonds issued by a CDD from all taxes by the state or by any
political subdivision, agency or instrumentality thereof,
except taxes imposed by Chapter 220, Florida stat:utes
relating to interest, income or profits of debt obligations
owned by corporations, banks and savings associations, and
taxes imposed by Chapter 212, Florida Statutes, relating to
sales and use taxes.
"
B. General Obligation Bonds. General obligation bonds
are secured by the full faith and credit and taxing 'power of
the COD. Recourse may be had against the general fun'd of
the COD for the payment oE gene ral obliga tion bonds, in
addition to those special taxes, if any, levied for their
discharge and such othe r sou rces as may be provided for
their payment or pledged as security therefor. Excep~ for
ref~nding bonds, no general obligation bonds may be issued
by a COO unless such bonds are issued to finance or
refinance a capital project and the issuance of such bonds
has been approved at an election held in accordance with the
.
.
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requirements for such election as' prescribed in the state
constitution.
The aggregate principal amount of general obligation
bonds which a COO may have outstanding at any one.'time,
computed in' accordance with the Act, may not exceed 35%
percent of the assessed value of the taxable property 'within
the COD as shown,on the pertinent tax records at the time of
the authorization of such bonds. In arriviQg at the amount
of general obligation bonds of a coo permitted to be out-
standing at anyone time, there is not included any general
obligation bonds which are additionally secured by the
pledge of: (i) special assessments levied in an amount
sufficient to pay the principal of, redemption premium, if
any, and interest on the general obligation bonds so secured
(provided certain requirements of the Act are complied
with), (ii) water revenues, sewer revenues or water and
sewer revenues of the COD to be derived from user fees in an
amount sufficient to pay the principal of, redemption pre-
mium, if any, and interest on the general obligation bonds
so secured, or (i i i) any combination of assessments and
revenues described in (i) and (ii).
C. Assessment: Bonds and Certificates of Indebted-
ness. Assessment bonds are special obligations of a COO
which are payable solely from proceeds of t:he special
assessments levied for a public improvement or community
facility that: the COO is empowered to provide.
As set forth in III.D., above, a COO may levy special
assessment:s in connection wi th the cons truction or recon-
struction of the systems and facilities which the COO is
authorized to undertake. After any assessments for assess-
able improvements are made, determined and confirmed a~
provided in the Act, a COO may issue certificates oE
indebtedness for the amount so assessed against the abutting
property or the property otherwise benefited. ~Such certifi-
cates are payable only from the special assessments levied
and collected' from the property against which they are
issued. The proceeds of such cer tiE icates may be pledged
for the payment of principal of, redemption premium, if any,
and interest on any revenue bonds, assessment bonds. or
general obligation bonds issued to finance the assessable
improvements, or, if not: so pledged, ma~ be used to pay the
cost or part of t:he cost of such assessable improvements.
o. Revenue Bonds. Revenue bonds are obligations of a COO
which are primarily payable from revenues derived from
sources other than ad valorem taxes on real or tangible
personal property and which do not pledge the property,
.
.
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.
credit or general tax revenue of the COD. A COD may issue
revenue bonds from time to time without limitation as to
amount. Revenue bonds of a COD need not be approved by the
qualified electors of the COO unless such bonds are addi-
tionally secured by the full faith and credit and taxing
power of the COD. Revenue bonds may be secured by, or pay-
able from, the gross or net: pledge oE the revenues" to be
derived from any project or combination of, projects; from
the rates, fees or other charges to be collected from the
users of any project or projects: from any r~venue-producing
undertaking or act:ivity of t:he COD;' from special assess-
ments; or from any other source or pledged security.
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E. Refunding Bonds. Refunding bonds are bonds issued by
a COO to refinance outstanding bonds of any type and the
redemption premium, if any, and interest thereon. Refunding
bonds are issuable and payable in the same manner as the
refinanced bonds, except that no approval by the electorate
is required unless required .by the state consc~tution.
F. Bond Anticipation Notes. A. COO may, after t:he issu-
ance, of any bonds of the COD has been authorized, borrow
money for the purposes for which such bonds are to be issued
in anticipation of the receipt of- the proceeds of the' sale
of such bonds and issue bond anticipation notes in a prin-
cipal sum not in excess of th~ authorized maximum amount of
such bond issu'e.
G. Conventional Financing. The Act. furt:her authorizes a
CDO to engage in shor t-term borrowing for the purpose of
paying any of the expenses of the COD or any costs incurred
or that may be incurred in connection with any of t:he pro-
jects of the COD. A COO may issue negotiable notes,
warrants, or other evidences of debt in connection with suel
short-term borrowing.
~
v. EST^8LISHMENT OF A COMMUNITY DEVELOPMENT DISTRICT.
A. Generally. The procedure for establishment of a COO
depends on the size of the proposed COD. A proposed COO of
1,000 acres or more is crea ted by a rule adopt.ed by the
Florida Land and Water Adjudicatory Commission (the "FLWAC")
pursuant ..to the Administrative Procedure Act. (The' FLWAC
consists of the Governor and the Cabinet.) +E the proposed
COO is less than l, 000 acres, the COO is' created by an
ordinance adopted by the ,boa rd of county comrniss ione rs of
the county containing a majority of the area of the proposed
COO: provided, however, that if any area of~ the land to be
included in the- proposed COO is within the boundaries of a
municipality, the county commission may not create the COO
without the approval of the municipality. If all of the
land in the proposed COO is within the territorial jurisdic-
tion of a municipality, the COO is created pursuant to an
ordinance adopted by the governing body of the munici-
pality. A county or municipality which has received a peti-
tion for establishment of a COO may, within 90 days,
transfer such petition to the FLWAC. It is then the respon-
5 ibili ty of the FL\-lAC to gr ant or deny the peti tion . A
county or municipali ty has no right or powe r to grant or
deny a petition that has been transferred to the FLWAC.
Additionally, the governing body of any existing
special distr~ct created to provide one or more of the pub-
lic improvements and community facilities authorized by the
Act may pet:ition for reestablishment of the existing dis-
trict as a COD.
B. COD's In Excess of 1,000 Acres. Establishment of a
COO of 1,000 acres or more requires the filing of a petition
with the FLWAC by the landowner/petitioner. Prior to filinl
the petition, the petitioner must pay a filing fee of
$lS,OOO and submit a copy of the petition to t:he county and
to each municipality the boundaries of which are contiguous
with, or contain all or a portion of, the land within the
external boundaries of the proposed COD.
The petition must contain the following information:
. A metes and bounds description of the external boun-
daries of th~ proposed COO and a ~pecific description
of any real property within the bo~ndaries which is to
be excluded from the COD.
. The written consent to the establishmenl: of the pro-
posed COO by the owner or owners of lOa percent of the
. real property to be included in the COO or documenta-
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~
,tion evidencing that the petrtioner has control of 100
percent of the real property to be included in the
CDD.
. A designation of five persons to be the initial mem-
bers oE the governing body of the COD ,( the "Board of
Su~ervisors").
. The proposed name of the COD.
. A map of the proposed COO showing current major trunk
water mains and sewer interceptors and-outfalls (if in
existence).
. The proposed time table for cons t ruction of the COD
services and a non-binding, good-faith estimated cost
of constructing the same.
. A designation of the future general distribution,
location and extent of public and private uses of land
proposed for the area within the COD.
· An economic impact statement.
A local public hearing on the petition must be con-
ducted by a hearing officer pursuant to the requirements of
the Administrat:ive Procedure Act. The petitioner must cause
public notice of such public meeting to be published in
accordance wi th the Act. J\ll af Eected uni ts of general-
purpose local government and the general public are given an
opportuni ty to appear at the hear ing and present oral or
written comments on the petition.
The affected county or municipality max conduct .
public hearing to consider the petition in llght of the
factors listed below, and may by resolution express its
support of, or objection to, the granting of the petition by
the FLWAC. Any objection to the granting of the pet:ition
must be based on the factors listed below.
In deciding whether to grant or deny the petition, the
FLWAC must consider the entire record of the local hearing,
the resolutions adop~ed by the county and/or municipality,
and the following factors:
. Whether all statements contained in t:he petit:ion have
been found to be true and correct.
. Whether the creat:ion of the COO is inconsistent with
any applicable element or portion of the state compre-
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.
hensive plan or of the effective local government
comprehensive plan.
Whether the area of land within the proposed COO is of
sufficient size, is sufficiently compact and is s~ffi-
ciently contiguous to be de~elopable as one functional
interrelated community. .
Whether the COO is t:he best alternative available for
delivering community development services and facili-
ties to the area that will be served by the COD.
Whether the community development services and facili-
ties of the coo will be incompat:ible with the ~apacity
and uses of exist:ing local and regional community
development services and facilities.
. Whether the area that will be served by the COO is
amenable to separate special-district government.
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.
.
A FLWAC rule establishing a COO must contain a
description of the external boundaries of the COO and any
real p~operty within the external boundaries of the COO
which ~s to be excluded; the names of the five persons
designated to be the initial members of the Board of Super-
visors; 'and the name of the COD.
The Act provides the charter for a COO. The FLWAC may
not: adopt any rules which would expand" modify or delete any
provision of a COD's charter as set forth in the Act, except
with respect to the special powers which a COO may exercise
only with the consent oE the appropriate county or munici-
pality.
C. COD's of Less Than 1,000 Acres. Establishment of a
COO of- less than 1,000 acres by a county or municipality
involves the following:
· A petition containing the same information. required
for a petition to the FLWAC (listed above), .must be
filed with the governing body of the county or .the
municipalit:y, as appropriate, and a public hearing
must be held.
· The governing body of the affected county or municipa-
lity must consider the record of the public hearing
and the same factors considered by the FLWAC (listed
above) in deciding whether 1:0 grant or deny the peti-
tion for the establishment of the COD.
"~.::..>~:.j.... t;'\ ',' .;.:;;,}-:;\ ):t'::'l~"-<6 '>.~'~,'<r.-~ ;P. ~~ ''''
. A county or municipal ordinance establishing a COO
mus t include the same i terns as a FLWAC rule. Such
ordinance may no!: expand, modify or delete any pro-
vision of a coo's charter as set forth in the Act.
~
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Jt
VI., HOW A COMMUNITY DEVELOPHENT OISTRIOT OPERATES.
.
..
A. Board of sUEervisors; Elections. The Board of Super-
visorsconsists of five members. Except as otherwise pro-
vided in the Act, each member holds office for a te~m of
four years. Each member must be a resident of the state and
a citizen of the United states.
Within 90 days following, the effective date of t:he
rule or ordinance establishing a COO, the landowners of the
COD must meet to elect the members of the Board of Super-
visors. Public notice of such meeting is required. At such
meeting, each landowner is entitled, in person or' by proxy
in writing, to cast one vote per acre of land owned by him
and located within the COD for each person to be elected. A
fraction of an acre is t rea ted as one acre enti 1:1ing the
landowner to one vote with respect thereto. An owner of a
condominium unit is treated as a landowner for purposes of
the voting provisions of the Act.
If the Board of Supervisors proposes to exercise the
COD's ad valorem taxing power, it must call an election at
which the members of the Board of Supervisors will be
elected by the qualified electors oE the COO in conformance
with the general election laws of the state. A qualified
elector is one who is a landowner or who resides wit:hin the
COD.. All persons then elected to the Board of Supervisors
must be qualified electors of the COD.
Commencing six years after the initial appointment of
members of the Board of Supervisors or, for a COO exceeding
5,000 acres, ten years after the initial appointment of
members of the Board of Supervisors, the position of each
member whose term has expired must be filled by a qualifie.:
elector of the COO, elected by the qualified electors of the
COD.
B. Meetings; Quorums. ^ majority of the members of the
Board of Supervisors constitutes a quorum for the purpose of
conducting business of the COD and exercising its powers and
for all other purposes. Act ion taken by the COD mus t be.
upon a vote of a majority of the members present unless
general law or a rule of the COD requires a greater num-
ber. All meetings of the Board oE Supprvisors are open t:o
the 'public and governed by the government-in-the-sunshine
provisions of the laws of the scate.
c. District Manager. The Board of Supervisors is autho-
rized to employ and fix the compensation of a CDO manager.
The manager supervises the operations of the COO and is
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responsible for preser~ing and maihtaining the improvements
and facilities, for maintaining and operating the equipment
owned by the CDO and for performing other duties prescribed
by the Board of Supervisors. It is not a conflict of
interest under the laws of the state for the COO manager or
other employee of the enD to be a stockholder, officer or
employee.of a landowner in the COD.
.
D. Funds; Annual Bud et; Re ortin. Funds of the COD may
be disburse only upon the order, or pursuant to the resolu-
tion, of the Board of Supervisors and as provided in, t:he
Act. A COD must provide financial reports and an annual
budget as required by the Act and state law. For purposes
of disclosure and information only, the proposed annual
budget for each fiscal year and any proposed long-term
financial plan or program of the COO for future operations
is submitted to the local general-purpose government having
jurisdiction. The local gover.ning authoriti.es may review
the proposed annual' budget and plans of the COO and submit
written comments to the Board of Supervisors.
E. Notices. A COO must provide full disclosure of infor-
mation relating to the public financing a~ maintenance of
improvements undertaken by the COO. Such information must:
be made available to all existing or prospective residents
of the COD and each contract for the sale of real property
within the COO must include a notice that the CDO imposes
t:axes and/or assessment:s on the subject property to pay for
construction, operation and maintenance costs of certain
public facilities.
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F. Contracts; Bidding. 1\ CDO may not contract for the
construction or maintenance of any project, nor may any
goods, supplies, or materials be purchased, when the amoun
paid by the con exceeds $5,000, unless notice of bids is
advertised. The bid of the lowest responsible bidder must
be accepted unless all bids are re jected. . The Boa rd of
Supervisors, however, may undertake and perform the con-
struction, operation and maintenance of any project or
facility authorized by the Act, by the employment of labor,
material and machinery. .
G. Tax Liens. All taxes of a CDO prov ided for in the
"Act, together with all penalties for default in the payment
o~ the sa~e .az:td,..all costs in collecting the same, including,
WJ.thout 'lJ..mJ.tatlon, reasonable attorney's fees, constitute
(from January 1 Eor each year the proper~y is subject to
assessment and until paid) a lien of equal dignity with the
liens for state and county taxes and other taxes of equal
dignity \.,ith state and county taxes upon all the lands
. aga~nst which such taxes are levied.
.
'I!
. .
H. Remedies. The Board of Superv isors has the power to
foreclose liens as provided by general law and to discon-
tinue services and to recover delinquent charges upon
delinquency in the payment DE fees. Additionally, the Roard
of Supervisors or any aggrieved person may 'have recourse to
such remedies in law and a t: equity as may be necessary co
ensure compliance with the provisions of t~e Act, including
injunctive relief to enjoin or restrain any person violating
the provisions of the Act or any bylaws, resolut:ions,
regulations, rules, codes or orders adopted under the Act.
I. Suits Against a COD. Any suit or action brought or
maintained against a COD Ear damages arising out of tort,
including, without limitation, any claim arising upon
account of an act causing an injury or loss of property,
personal injury or death, is subject to t:he limited waiver
of sovereign immunity applicable to the state and its
agencies and subdivisions under state law.
J. Exemption of COD Property from Execution. All pro-
perty of a coo is exempt from levy and sale by virtue of an
execution, and no execution or other judicial process may be
issued against such property, nor may any judgment against a
COD be a charge or lien on its property or revenues. The
foregoing notwithstanding, bondholders may pursue any remedy
for the enforcement of any lien or pledge given by a COO in
connection with any of the bonds or obligations of the CDO.
K. Termina tion. 1\ COO remains in, existence unless (i)
the CDO is merged with anot:her district: as provided in the
Act; (il) all of the specific community development services
that the COO is authorized to perform are transferred to a
general-purpose unit oE local government in the manner pro'
vided by the Act; or (iil) the COO is dissolved as provided
in the Act.
L. Transfer of Services. The county or municipalit:y
within-Which a COD lies may adopt a non-emergency ordinance
providing a plan for the transfer oE a specific comrnunit:y
development service from the COD to such county or munici-
pality. The plan must provide Eor the assumption, and
guarantee of the COo debt that is related to the service and
must demonstrat:e the abilit:y of the county or municipality
to provide such service: (i) as efficiently as the COD; (ii)
at a level of quality equal to or higher than the level of
quality actually delivered by t:he COD; and (iil) at a charge
equal to or lower than the actual charge by the COD to the
users of the service. A transfer plan ordinance is subject
to circuit court review at the request of the affected COD.
.
..
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_10
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M. Dissolution. IE" wi.thin five years after the effec-
tive date of the rule or ordinance creating a COD, the
petit:ionin~ landowner has not received a development permit,
as defined by the laws of the stat~, on some or all, of. t:he
area covered by the COO, the COD is automatically dissolved
and the circuit court must cause a statement to'that effect:
to be filed in the public records.
N. Merger.. 1\ COO may merge with other COO's or with
other special districts upon filing of a petition as
required by the Act.
o. Incorporation; Annexation. Upon obtaining the popula-
tion standards required by the laws of the state for incor-
poration, any COO wholly within the unincorporated area of a
county musl: hold a referendum on whether to incorporate.
Any COO contiguous to the boundary of a municipality may be
annexed to such municipality pursuant: to the laws of the
state.
, .
.
.
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FREQUENTLY ASKED QUESTIONS
ON COMMUNITY DEVELOPMENT DISTRICTS
.
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, ..
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Bopping Boyd Green & Sams
Tallahassee, F~orida
., .
, ~
Q: Why should a developer consider establishing a
community development district for a project?
A: As Florida's governments fall increasingly behind in
. the provision of basic infrastruct:ure and services,
developers will face more pressure from both local and state
government to provide more facilities at a faster pace. In
addition, permitting agencies will make additional demands
for long-term assurances that infrastructure will be
maintained even~ after the developer's involvement in a
project has ended. In part, these demands are fueled by the
intense political pressure not to raise taxes. Development
costs will continue to rise a~ local governments demand more
and ~ore of those proposing projects within their
jurisdictions. Growth may be expected not only to "pay for
itself", but to help bailout Florida's failure to
histor ically build the roads wide enough, the pr isons big
enough, and the schools fast enough.
A developer's establishment of a conununity development
district (COD) will help address these pressures. The
Florida Statutes recognize CODs as a legitimate method for
the private sector to finance and manage basic' infra-
structure and services. Although COOs are independent local
special-purpose governments that levy taxes and assessments
and issue bonds, the landowner-developer remains in cbntrol
of the COD's board in its early years. When used
effectively, COOs. can help developers spread out development
costs, meet the concerns of permitting agencies with respect
to long-term maintenance of infrastructure and address the
local government concern to avoid politically unpopular
property tax increases.
0:. Aren't 'there other kinds of districts
homeowners' associations that can meet
concerns?
-- or perhaps
some of these
A: Other types of special distr icts recognized under
Florida law, as well as homeowners' associations, may
address certain issues, but n'one have the range of pO\olerS
and options accorded COOs. In addi ticn to their inabili ty
to effectively finance major capital improvements,
homeowners' associations generally do not meet regulatory
agency requirements for stable, perpetual entities for 10ng-
term maintenance of permitted infrastructure. Other types
of districts, such as water control districts, have only a
limited range of powers available to them, i.e., drainage
and certain ancillary roads. COOs are empowered to finance,
con~truct, operate and/or manage water and sewer facilities,
water management and control facilities, roads and
.
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streetlights, and bridges. In addition, with permission of
the local government: with jurisdiction, COOs may provide
such things as parks, recreational amenities, security,
waste collection and mosquito control.
Q:
( DRI) .
process?
My project will be a development of regional impact
How will the concept of a COO fit into the ORI
A: COOs fit extremely ~ell into the DRI process. COOs
can enhance the "mark.etability" of the 'ORI with local
officials and 'are increasingly seen as one of the most
efficient and politically palatable ways to provide basic
services and infrastructure. Conversely, the existence of a
DRI development order will enhance the "marketability" of
the COO in its establishment process. To the extent the
role of the COO has been clearly defined in the ORI, local
uncertainty and fear about the existence of another
independent governmental body within its jurisdiction is
eliminated. There is no legal requirement that a DRI
development order be in effect prior to the establishment of
a COO by a developer. However, some of the information
needed to support a COD petition can usually be taken from
the information collected to prepare a DRI or a preliminary
development agreement. In the event that information is not
available, then it must created for the CDO establishment
process.
Q: Is a COO appropriate for smaller projects?
A. It depends. The law contemplates establishment of
CDOs of less than 1,000 acres in size 'by county ordinance.
CDDsof more than l,OOO acres are established by adoption of
administrative rules by the Florida Land and Water
Adjudica tory Commission (FLWAC). The powers and abili ties
of all COOs, regardless of their method of creation, is the
same. However, COOs do require time and money to establish
and operate, particularly in the early years. Developers of
pro j e c t S 0 f 1 e s s tha n J. , 000 a c res s ho u ld ca ref u 11 y rev i ew
the economic feasibility of a COD and its anticipated
activities before deciding whether it is appropriate.
Q: How can a
out development costs?
COD
developer
spread
help
a
A: Depending upon the nature of the project and type of
infrastructure to be financed, a COD may be able to
issue long-term tax exempt bonds for certain facilities.
This will enable the developer to enjoy a lower overall cost
of debt. In addition, when bonds are repaid through annual
-2-
,.
,
..
special assessments on the land, costs will be passed along
directly to the future residents/landowners.
Q: Explain how I can insure that the COO will carry out
. the plans for my project.
A: A COD is initially established when a petition,
usually from a develope.r, is received by ei ther the FLWAC
(when the development ~s more than 1,000 acres) or the
county (if the development is less than 1,000 acres). In
that: petition, the developer requests appointment of the
initial five-member Board of Supervisors. Upon adoption of
the rule by FLW1\C or the county ordinance, those members
take office. within 90 days of establishment of the COD, an
election must be held where the landowners vote for the
Board of Supervisors. Since the developer usually cont:rols
a majority of the land and voting is on a one-acre/one-vote
basis, the developer will vote for the members of the
board. Thereafter, for six years in the case of COOs of
less than 5,000 acres, or ten years in the case of COOs of
more than 5 ~ 000 acres, elections are held every two years
where landowners vote on a one-acre/one-vote basis. Again,
assuming the developer remains the majority landowner, the
developer \>1ill vote for the board members. This six/ten
year cutoff point is shortenea if ad valorem taxes are to be
levied by the COO. In that case, the board members must be
elected by residents of the COD.
COOs do no't have zoning, permitting, or comprehensive
planning powers. In the case of projects governed by a ORI
development order or a preliminary development agreement,
the CDO must follow those requirements, just as others who
undertake activities in the project. In addition, the COO
is bound by conditions in permits which have been obtained
by the developer and transferred to the COD for its
projects.
Finally, during the initial six or ten year period, the
CDO will, in most cases, issue bonds for various projects.
The COD, by statute, is required to follow and abide by all
bond covenants and agreements. To the extent those bond
covenants require or prohibi t action by the' COO during the
term of the bonds, a future COO board not elected by the
developer is bound by them.
Q: How are ongoing operations of the COD funded?
. ,.1\: In the early years, the CDOI s "general fund" is
usually funded by an "agreement in lieu of taxes" between
the COO and the landowner/developer. COOs are required to
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. .. . ..
. .. .
...
be audited annually and are subject to the oversight of the
Auditor General. For this reason, competent COO management
is a must to safeguard district assets and insure that
appropriate accounting and administrative procedures are in
'place. A COO should also retain a district engineer, legal
counsel, and a financial advisor. To the degree staffing
activities are related to specific capital projects, certain
amounts may be ultimately reimbursable from bond proceeds.
.
.
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...
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Community Development Corporation
Support and Assistance Program
EXHIBIT B
o Program Description
Funds are allocated annually b)' the Florida Legislature to the State
Communit)' De\'elopment Support and Assistance Trust Fund. The
Legislature created this I?rogram in 1980 to address the economic
deterioration of communities throughout Florida. The funds are used
to pro\'ide financial assistance to communit)' de,'elopment corporations
(CDCs). CDCs are formed to create and maintain a sound economic
base in concert with priyate enterprise in distressed areas.
o Eligibilit)'
-CDCs ~'hich are non-profit corporations "'ith an ejected Board of
Directors and \\'hich meet ser\'ice area criteria, are eligible to appJ)' for
grants and/or loans;
- grants ma~' be allocated to CDCs for uJ? to $100,000 for
ac1ministra~I"e .sup.port. Funding is proyided based on a competitive
grant Apphcatlon Process; .
- loans may be made to CDCs for specific projects and revenue
generating ventures for up to $250,'000;
- loans may be made to ne,,' or expanding businesses through the
Guaranty Loan Program or th rough the 1)jrect Loan Program. Direct
loans are required to match every (loHar of st3te allocated funds ,,'jth
two dollars of private funds; and
- funding c)'cles for the grant program are announced in the Florida
Administrative VVeekl~'; the loan 'program is operated. on a continuous
c)'cle until all funds are expendecf.
o Current Status
Applications due dates for grant funding for the State Fiscal Year are
determined annual)y. The application deadline is usuall)' between
January and 1\Iarcll. .
For Additional Information or to be added to the ?\lailing List Contact:
ROSA 1\IORGAN, Administrator
, Dh'ision ()f Housing and Community Development
Department of Community Affairs
2740 Centerview Drive .
Tallahassee, Florida 32399-2100
OR CAJ...,L (904)488-3581
#
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"
9B-14.0Q1
9B-14.002
9B-14.003
9B-14.004
9B-14.005
9B-14.006
9B-14.007
9B-14.0081
9B-14.009
96-14.010
96-14.011
9B-14.018
.-
9B-14.019
98-14.020
9B-14.021
9B-14.022
,9B-14.023
RULES
OF THE
DEPARTMENT OF COMMUNITY AFFAIRS
DIVISION OF HOUSING AND
COMMUNITY DEVELOPMENT
RULES FOR COMMUNITY
. DEVELOPMENT CORPORATION
SUPPORT AND ASSISTANCE PROGRAM
Definitions.
Purpose.
Funding Availability.
Eligible Service Areas, Grants and Loans.
Eligible Applicants, Grants and Loans.
Application Format, Grants.
Application Process, Grants.
Distress Formula Threshold Criteria.
Scoring criteria, Administrative and Planning Grants.
Eligible Projects, Loans.
Application Format, Loans.
Types of Loan Programs and Participation
Requirements.
Direct Loan Program Participation Requirements. .
Guaranty Loan Program Participation Requirements.
Terms and Conditions of Loans to Participating
COCs.
Ranking' of Simultaneous Loan Applications.
Contracts for Grants and Loans.
1
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9B-14.024
9B-1.4.025
9B-1.4.026
Riqhts Reserved by the Department.
Interagency Cooperation.
Deadlines Construed.
9B-14.001 Definitions.
(1.) "Act" means the community Develop1l\ent corporation Support
and Assistance Program (CDCSAP) established by Chapter 290, Florida
Statutes~ which provides for a fund for the purpose of providing
loan~ and grants to eligible "CDCs".
(2) "Administrative Expenses" means such costs necessary to
effectively operate the office of the CDC. Such costs may include~
but not be 111l\ited to, those activities set forth in section
290.036(1), F.S., research activities, training activities,
consultant fees, staff salaries and other normal and reasonable
overhead expenses.
(3) "Administrative Grant" means either a 3-year or a l-year
grant for administrative expenses, awarded pursuant to section
290.036, F.S., but does not include Planning Grants as set forth in
section 290.0365, F.S.
(4) "Binding ConunitmentU means a written document signed and
dated by the party presently committing the funds, goods~ or
services to the CDC without contingencies or qualifiers. The
commitment 1l\ust be for a specific period of time.
(5) "commercial Lending Institution" means a bank, credit
union, savings and loan association, or any commercial private
lendinq institution.
2
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'.'
(6) "cotnnlunity Development corporation" or "CDC" means a non-
profit corporation under Florida Law, Chapter 617, F.S., and
Section 290.033(2), F.S. The CDC must conduct or financially
support revenue generating businesses, with the purpose of economic
and social development of its community. It must be based in a
specific geographic area, controlled by area residents and
committed to enhancing community well being.
(7) "Community Development Corpo~ation support and Assistance
Program/(CDCSAP)" means the program established by the Department
to administer the Act.
(8) "conununity Wide Needs Assessment" means the
identification, analysis, and evaluation of the social, economic,
and cultural characteristics of the_service Area and a
prioritization of the most critical needs of the area. The
assessment must be based on an analysis of u.s. Census data, or
comparable officially generated information.
(9) "Conservation Communities" means cities, census tracts
and unincorporated places ranked according to their relative
distress by the Department and automatically eligible as Service
Areas under.the Community Development Corporation support and
Assistance Program.
(10) "Department" means the Department of Community Affairs.
(11) "Direct Loan" means a loan made to an eligible applicant
to provide a loan to a Service Area business. Oirect loans must be
made in conjunction with funds from other sources including, but
not limited to, participation by a commercial lending institution
3
~
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at a ratio of 2:1. For reference see Rule 9B-14.018 and 9B-14.019,
F.A.C.
(12) "Distress" means the degree of distress as measured by
the factors outlined in Rule 9B-14.0081(1), F.A.C.
(13) "Documentation" means supporting references or records
such as complete, executed contracts, with all attachments, copies
of canceled checks, or other materials which clearly indicate funds
were received during a specific time period.
~ (l~) "Economic Development" means those activities designed
to revitalize, preserve, redevelop or restore an area which
exhibits signs of decline and deterioration. For purposes of
scoring the categories of demonstrated ability to leverage
administrative funds under Rule 9B-14.009(4), F.A.C., and
demonstrated capacity in economic development under
Rule 9B-14.009(6), F.A.C., activities normally associated with
social services, arts and culture or general education cannot be
considered as economic development.
(15) "Eligible Applicant" or "Applicant" means a Community
Development Corporation as defined in section 290.033(2), F.S., and
which is eligible for assistance under Section 290.035(1), (2) and
(3), F.S.
(16) "Fully capitalized" means documented evidence that funds
committed to the venture by binding commitments are sufficient to
complete the project.
(17) "Fund" means the Community Development corporation
Support and Assistance Trust Fund.
4
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. .} 'If .. , . , . ./', ' ' ~:. . " '.. \. . ~. . I .
(18) "Good Standing" means that a CDC has fulfilled and is
current concerning all contractual obligations to the Department in
relation to the CDCSAP including all obligations of both a
financial and reporting nature for both CDCSAP past and present
grants and loans as described in Rule 9B-14.005(5), F.A.C.
(19) "Grant Application Guide" means the official application
document, including forms and instructions, which an eligible CDC
is required to prepare and submit in order to apply for CDCSAP
grants. The Grant Application Guide (Effective February 1992) may
be obtained by calling or writing the Department of Community
Affairs is hereby adopted by reference as a part of Rule 9B-14,
F.A.C.
(20) "Guaranty Loan" means a loan made to an eligible
applicant to provide a loan to a Service Area business, but there
must be an agreement by a commercial lending institution to
purchase the resultant note. The eligible applicant will deposit
up to 90% of the proceeds of the sale of the note in an interest
bearing guaranty account which shall be used to guarantee repayment
of the loan purchased by the lending institution. For reference
see Rule 9B-14.018 and 9B-14.020, F.A.C.
(21) "Loan Application Guide" means the official application
document, including forms and instructions, which an eligible CDC
is ,required to prepare and submit in order to apply for CDCSAP
loans. The Loan Application Guide (Effective February 1992) may be
obtained by calling or writing the Department of Community Affairs
and is hereby adopted by reference as a part of Rule 9B-14, F.A.C.
5
..
(22) "Management Experience" means on the job, paid
experience at the management level in a community Development
Corporation, a Local Development Corporation, as a commercial loan
officer, or in a for-profit business. Experience must clearly
demonstrate administrative, supervisory and decision making
responsibilities. A position described or titled as interim,
acting or temporary will not be considered eligible for scoring.
(23) "Non-Profit Corporation" means a corporation
incorporated pursuant to Chapter 617, Flori.da statutes.
(24) "Permanent Job" means a full-time position, the duration
of which will exceed 12 months and involve a minimum average of 30
hours per week of employment.
(25) "Planning Grant" means a two year grant for
administrative planning and organizational expenses awarded
pursuant to Section 290.0365, F.S., and Rule 9B-14, F.A.C., which
shall not exceed $50,000 per fiscal year.
(26) "Professional Experience" means a paid position within a
Community Development Corporation, a for-profit business, or as a
commercial loan officer, with responsibilities specifically
relating to work requiring the consistent exercise of discretion
and judgment and which requires specialized academic education.
Clerical or manual labor shall not be considered as professional
experience.
(27) "Repayment Agreement" or "Loan Contract" means an
agreement between the Department and a CDC which details the terms
and responsibilities of the CDC concerning the remittance of grant
or loan funds due to the Department by the CDC. In cases where
6
..
the COC can demonstrate to the Department the existence of a
revenue generating business venture with proceeds sufficient to
meet the annual debt service due to the Department, a loan contract
or a repayment agreement may be negotiated which permits annual
repayment of funds. The business must be determined by the
Department to be reasonable and feasible with regard to the
potential to generate adequate funds to meet the annual debt
service. The term of a Loan Contract or Loan Repayment Agreement
shall not exceed 15 years from the date of execution of the
original promissory note. In the event that a CDC defaults on a
loan contract or repayment agreement, then the entire balance owed
to the Department is due immediately upon default.
(28) "Revenue Generating Business" means a business engaged in
the production of goods or services which generates income and
employment for the community.
(29) "Secretary" means the Secretary of the Department of
Community Affairs.
(30) "Self-Sufficiency" means the ability of a CDC to
maintain a consistent level of services without administrative
grant or loan support from the CDCSAP.
(31) "Service Area" means the entire area in which a
Community Development Corporation will operate using CDCSAP funds.
(32) "Three Year Plan" means a dOt?ument which clearly
identifies the long range planning efforts of the CDC as described
in Rule 9B-14.009(3), P.A.C.
Specific Authority 290.038, F.S. Law Implemented 290.033-.038,
, .
F.S. History - New 12-31-80, Amended 10-5-82, 12~20-83,
7
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12-30-84, 5-5-85, Formerly 9B-14.01, Amended 5-4,-86, 2-26-90,
12-19-90, Amended
.
9B-14.002 Purpose.
The purpose of this Rule is to provide procedures for the
Department's implementation and administration of the CDC Support
and Assistance Program, Section 290.0301, F.S., hereafter referred
,to as the "Act". The Act creates a program for financial and
technical assistance to Community Development Corporations for the
achievement of the economic development objectives described in the
Act. These rules and the Act shall be liberally construed by the
Department to effectuate the statement of policy and purpose found
in the Act. It is the intent of the Oepartment that these rules
permit maximum flexibility within the limits of the Act, yet define
procedures consistent with the sound public funds management
principles and consistent with the need to apprise potential
applicants, funds recipients and the public of the Department's
policy governing disbursement and accountability for the funds.
Specific Authority 290.038, F.S. Law Implemented 290.033-.038,
F.S. History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84
Formerly 9B-14.02, Amended 5-4-86, Repromulgated 2-26-90
.
9B-14.003 Funding Availability.
(1) Current Funding. The 1980 Legislature established in the
state treasury a separate fund now known as the "Community
. . ,
Development Corporation Support and Assistance Trust Fund". The
8
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fund will be comprised of state appropriations, any contributions
or grants from other public or private sources, and interest earned
from investment of the funds pursuant to Section 290.034,'F.S.
(2) Subsequent Funding. Any subsequent appropriation or
funds from other sources shall increase the amount provided in (1)
'above or shall be disbursed according to appropriate rule or
statute.
(3) Submission of Applications.
(a) Applications for loan funds may be submitted at any time
during the year. Applications will be funded in the order of
receipt by the Department only when complete and approvable. Any
application determined to be incomplete will be returned to the
applicant within 30 calendar days with written notice of areas of
incompleteness or deficiencies. The date to be utilized for
determination of receipt of any rejected applications will be the
date that they are resubmitted to the Department in a complete and
approvable form.
(b) In the case of simultaneous submission of complete and
approvable applications for an aggregate loan amount greater than
the amount of funds available, the distribution of funds will be
determined by scoring and ranking applications with the highest
ranking being funded first and all others funded in descending
order until the funds are depleted~ The procedure for scoring is
in Rule 9B-14.022, F.A.C.
(c) Applications for grant funds will be as established in
Rules 9B-14.006 and 9B-14.007, F.A.C.
9
Specific Authority 290.038, F.S., Law Implemented 290.034, F.S.
Chapter 82-215, Laws of Florida. History - New 12-31-80, Amended
10-5-82, 1~-20-83, 6-4-84, 12-30-84, 5-5-85, Formerly 9B-14.03,
Amended 5-4-86, 2-26~90, 12-19-90. Repromulgated
.
9B-14.004 Eligible Service Areas, Grants and Loans. Eligible
Service Areas for grants and loans are areas which meet the
criteria established in Section 290.035(2)(a),(b),(c),(d) and (e),
F.S.' It is incumbent upon the applicant to provide documentation
verifying that these criteria are met and applicant shall include a
narrative description and a map clearly identifying the Service
Area. .
Specific Authority 290.038, F.S. Law Implemented 290.035, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
5-5-85, Formerly 9B-14.04, Repromu1gated 2-26-90, 12-19-90,
Amended .
9B-14.005 Eligible Applicants, Grants and Loans.
Eligible applicants for grants and loans must be COCs, as
defined above, which meet the following criteria:
(1) The CDC must have an eligible Service Area as defined in
Rule 9B-14.004, F.A.C.
(2) Its membership must be open to all Service Area residents
18 yea.rs of age or older with no restrictions including lllembership
fees or dues. This must be documented in the CDC's Articles of
Incorporation .and/or By-Laws.
10
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(3) A majority of the CDC's board members must be elected by
those members of the corporation who are Service Area residents.
At least one board member must be appointed by the Governor. This
must be documented in the CDC's Articles of Incorporation and/or
By-Laws.
(4) Elections and membership avai1ability must be adequately
publicized in a locally circulated newspaper and other chosen means
of media or public advertisements within the Service Area. Ample
opportunity must be provided for full participation for all Service
Area residents.
(5) The CDC must be determined by the Secretary of the
Oepartment, or the designee, to be in good standing. A COC may not
apply for any CDCSAP grant or loan funds while not in goo~
standing. Good standing shall consist of submission of all report
documents as prescribed by past and present CDCSAP contracts or
legally binding agreements, and submission and resolution of all
required audits and loan agreements to include payment of funds due
the Department as a result of audit findings or as prescribed by a
loan agreement in full or the existence of an executed repayment
agreement with the Department, whereby the COC is in compliance
with the terms set forth in the repayment agreement. The repayment
agreement must be duly executed by both parties prior to a CDC
being declared in good standing. No portion of any funds due to
the Department shall be paid from funds received through the
CDCSAP.
(6) In addition to the above criteria, Planning Grant
applicants must have been created no more than five years prior to
11
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the application deadline date and may not have previously received
an Administrative Grant.
Specific Authority 290.038, F.S. Law Implemented 290.035, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
12-19-90. Formerly 9B-14.05, Amended 5-4-86, Repromulgated
2-26-90, Amended 12-19-90,
.
9B-14.006 Application Format, Grants. An application for a grant
shall include the following information, and shall utilize and
follow the grant application guide format and instructions:
(1) Documentation sufficient for the Department to verify
that the applicant meets the criteria provided in Section 290.035,
F.S., including clear evidence that elections have heen publicized
and held annually. For CDe's who did not receive CDCSAP funding in
the prior year, the application will include a statement that, if
selected for funding and prior to release of funds, the CDC will
accept an appointment to the board by the Governor of at least one
board ~ernber. The applicant may submit names and resumes of
recommended appointments. For CDC's receiving CDCSAP funding in
the prior year, evidence of the gubernatorial appointment must be
contained in the application. If the appointment has not been made
by the Governor at the time of the application, proof must be
included in the application which documents that an appointment has
been solicited.
(2) In addition to (1) above, an application for a grant
shall include the items enumerated in Section 290.036(2), F.S., and
12
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a narrative description of the requirements established in section
290.036(5)(c),(d) and (e), F.S.
(3) An applicant for a grant shall submit to the Department
an Administrative Budget which indicates sound and prudent plans
for the expenditure of grant funds. The Department shall require
amendment of the budget where unnecessary or exorbitant
expenditures are identified.
(4) All documentation submitted in support of applications
must'be in detail sufficient for the Department to analyze its
accuracy and validity; and submitted in a format detel~ined by the
Department and conforming to all instructions in the Grant
Application Guide. A Grant Application Guide may be. obtained by
writing the Department of community Affairs, Division of Housing
and community Development, 2740 centerview Drive, Tallahassee,
Florida 32399-2100.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
Formerly 9B-14.06, Amended 5-4-86, 2-26-90,
9B-14.007 Application Process, Grants.
(1) The Department will consider applications for funding of
grants in one cycle during the state Fiscal year. All eligible
COCs as defined in Rule 9B-14.005, F.A.C., of this chapter will
compete during this application cycle. Anyone interested in being
included on the mailing list to receive advance notice of the
application deadlines may write the Department of community
Affairs, Division of 'Housing and Community Development, 2740
13
.
','
: .~\'. " : ~:;\.*.: ~:~.'\'r'.:.
Centerview Drive, Tallahassee, Florida 32399-2100. The Department
will notify each entity on the mailing list of the application
deadline and will publish such notice in the Florida Administrative
Weekly. Any application not received by 5:00 p.m~ on the final
application date will not be considered for funding. No additional
information will be accepted for review after the final application
deadline for any applicant.
(2) Threshold Requirements. All applications submitted to
the Department will be reviewed for adequacy before they are
reviewed for eligibility, scored and ranked. The following areas
will be included:
(a) Application Completeness. Applications will be screened
for completeness, and applications which do not contain all items
specified in Rule 9B-14.006., F.A.C., will not be scored and rated
for funding.
(b) Past Performance. The Department will review the
applicant's prior performance in carrying out contractual
obligations with CDCSAP funds to determine that:
1. There are no unresolved audit findings. Resolution of
audit findings shall include the repayment of any funds owed to the
Department or the execution of a Repayment Agreement as defined in
Rule 98-14.001(16), F.A.C.
2. There is no evidence of fraudulent use of CDCSAP funds.
3. All previously funded contracts have been closed out in
compliance with contractual requirements, including the
satisfactory resolution of any monitoring findings.
14
..
'f.'~>'J.~'.,'
4. The CDC is declared by the Secretary of the Department, or
the designee, as being in good standing.
5. If the applicant has failed to meet any of the above
requirements, then the application will not be considered for
funding.
(c) The Department reserves the right to review an
applicant's audit of funds other than CDCSAP. Applicants with
serious unresolved audit findings may be eliminated from
eligibility to receive funding.
Cd) New Applicants. Applicants which have not previously
received CDCSAP funds will not be evaluated on past performance.
(3) No grant will be awarded for funds exceeding $100,000.00.
All grants will terminate on the same date regardless of the date
of commencement.
(4) Notice of intended grant award or denial of grant award
will be provided to each applicant by certified mail with a
statement that applicants who wish to contest the decision must
request review of the decision in writing and such request must be
filed with the agency clerk within 14 calendar days of receipt of
the notice. The request for review is deemed filed when it is
received by the agency clerk as designated in Rule 9B-14.009,
F.A.C. Failure to file a request for review in the time and-manner
specified shall constitute a waiver of proceedings under Chapter
120, F.S. The request for review must specify in detail the basis
for review. Unless the request for review clearly describes
disputed issues of material fact, an informal proceeding will be
conducted by the Department's appeal hearing officer or the
15
~
, )..J i"~':"~i' ~ V': '.'.', ." .;,. _.'
~
designee, pursuant to Section 120.57(2), F.S., and applicable
agency rules. To the extent that the Department accepts the facts
presented in the application but denies funding based on
interpretation of the law or rules, an informal proceeding is
appropriate. If the Department determines from the request for
review that issues of material fact are in dispute, a formal
proceeding will be conducted pursuant to Section 120.57(1), F.S.
(5) The Department shall, following the determination of CDCs
to be funded, enter into a contractual agreement between the CDC
and the Department. This agreement shall be signed by the CDC and
returned to the Department on or before 30 days after receipt of
the agreement by the COCo Failure to comply within said 30 days
shall result in withdrawal of funding by the Department. At such
time as funds are withdrawn, the funds will be awarded to the next
applicant in rank order in accordance with 9B-14.009(7), F.A.C.
(6) If a CDC has outstanding administrative, fiscal or audit
matters which delay funding of an executed agreement, it shall be
incumbent upon the CDC to resolve all such issues to the
satisfaction of the Department within ninety days of the beginning
of the contract period. Failure of the CDC to satisfactorily
resolve said issues shall result in the withdrawal of funding by
the Department and the award of such funding to the next applicant
in .rank order.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History - New 12-31-80, Amended 3-25-81, 10-5-82, 12-20-83,
6-4-84, 9-20-84, 12-30-84, 5-5-85, Formerly 9B-14.07, Amended
5-4-86, 2-26-90, 12-19-90,
.
16
~
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9B-14.00S1 Distress Fonnula Threshold Criteria
(1) The degree of distress of the geographical area served by
a CDC will be compared to the degree of distress of the Service
Areas of all other applicants. A ranked list of eligible CDCs will
be devised from data provided by the "community conservation Index"
which consists of 1980 census data, to the extent appropriate, for
the fOllowing variables:
. (a) The percentage of housing units in the area built more
than 30 years ago;
(b) The percentage of year-round housing units in the area
that are vacant rental housing units;
(c) The percentage of housing units in the area that lack
some or all plumbing facilities;
(d) The per capita income in the area;
(e) The percentage change in per capita income in the area
from the prior census year to the current census year;
(f) The percentage of the population in the area that is over
the age of 65 and under the age of 18;
(g) The unemployment rate in the area;
(h) The percentage of the population in the area with incomes
below the poverty level;
(i) The per capita taxable value of property in the area:
(j) The percentage change" in per capita taxable value of
property in the area from 1977 to the current census year; and
(k) 'The per capita local taxes levied in the area.
-
17
,.
(2) The community Conservation Index contains data for these
factors for all incorporated areas of the state, all census
~esi9nated places, and census tracts in cities over 50,000 in
population which shall be the units of analysis. The units of
analysis are ranked by each independent variable. An average of
the rankings for the 11 variables is produced for each unit of
analysis which is called the distress rating. The units were
ranked according to this distress rating to provide the Community
Conservation Index. The units are ranked from the most distressed
to the least distressed with the unit possessing the lowest rating
assigned the rank of one.
(3) Method of Calculation. Data obtained from the Community
Conservation Index will be aggregated for all census tracts
contained, whether in whole or in part, within the ene's service
Area boundaries. Each CDC will be assigned a numerical score based
on the average of the distress ratings for each census tract which
composes a part of the COC Service Area. The qualifying CDCs will
be listed in rank order according to this average from the lowest,
indicating the most distressed areas, to the highest.
(4) Threshold Criterion. A cut off criterion will be
established by the Department and applied as a threshold measure in
order to restrict the funding competition to agencies serving the
most distressed communities when the number of CDCs for
consideration for funding exceeds more than twice the maximum
number of CDCs to be funded.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History-New 5-5-85, Formerly 98-14.081, Amended 5-4-86,
18
2-26-90
,
9B-14.009 Scoring criteria, Administrative and Planning Grants.
(1) The Department will determine eligibility of a grant
application based upon the requirements established in
Section 290.035 and section 290.036, F.S., and the threshold
requirements described in Rule 98-14.007(3), F.A.C. Once
eligibility has been determined, the application will be ranked and
scored on:
(a) Oemonstrable capacity of the CDC to carry out the
proposal.
(b) The completeness, feasibility, and impact pertaining to
the goals, objectives, and time frames outlined in the Three Year
Plan, as defined in Rule 9B-14.001(13), F.A.C.
(0) Demonstrated ability to leverage administrative funds
from other sources.
(d) Demonstrated capacity to perform in the area of economic
development by successful participation in the CDCSAP loan program
or participation in a successful business venture and by generating
venture income to enhance the ability of the CDC to become self-
sufficient.
(2) Oemonstrable capacity will be measured by the Depa~tment
ba~ed upon the applicants' documentation of the following:
(a) Executive Director Experience. Executive Director has
management experience or an academic degree as set forth below. A
position described or titled as Interim, Acting, or Temporary
.
19
\ ~ '" I '__ " I' \ " ,I, \ , , ' ' . . \ I , , I \ I , \
Executive Oirector will not be considered eligible for scoring.
Ten (10) points are awarded for anyone of the following:
1. Bachelors Degree from an accredited college or
university plus 3 years of experience,
2. Masters or Ooctorate Degree from an accredited college
or university plus 2 years of experience,
3. Seven years of on-the-job management experience.
(b) Staff Experience. Used hsrein, professional staff means
a person employed by the CDC in a pennanent job as defined in 9B-
14.001(4), P.A.C.
1. Five Points. Professional staff has shown evidence of
formal training or on-the-job experience in public administration
or social services.
2. Ten Points. Professional staff has experience leading to
the position or, a bachelors degree from an accredited university
or college with a major in business administration, management,
finance, banking, accounting or economics or a law degree.
Experience means a minimum of three years on-the-job experience at
the professional level in a Community Development corporation, a
Local Development Corpor~tion, as a commercial loan officer, or in
a for-profit business or in a government position which involves
economic development or business development activities.
E~perience which consists of clerical or manual labor shall not be
considered as professional experience.
3. Fifteen Points. Professional staff has a bachelors degree
from an accredited college or university or experience leading to
, '
the position, "as defined above, and includes at least one
20
.!, . I " I ~ ,', '~., I ,; I' I I. I.. I I .' I' . ~ .... ~.,
individual with 3 or more years of professional accounting
experience, economic development, industrial development, or
business development experience. All areas of expertise must have
involved activities directly resulting in the operation, expansion
or creation of revenue generating ventures.
4. Twenty Points. Professional staff consists of no less
than two individuals, each having a bachelors degree from an
accredited college or university or three years professional
experience. One individual must have at least 3 years experience
as a professional accountant in a CDC or a for-profit business. A
contract with a professional accounting firm for accounting
services to be provided to the CDC during the eligible time period
can be substituted for the requirement for a professional
accountant on staff. The contract for accounting services must be
lncluded in the application and must be from a qualified certified
public accounting firm. Contracts to perform audits of the CDC
will not be considered for scoring purposes. The other individual
must have at least 3 years of economic development, industrial
development or business development experience. The latter three
areas of expertise must have involved activities directly resulting
in the operation, expansion or creation of revenue generating
ventures.
(c) Board of Directors. Points will be awarded for anyone
of the following:
1. Ten points. Board of Directors meets in regularly
scheduled meeti~gs and has demonstrated evidence of business
21
experience and commitment to the success of the eDC's activities
and includes at least five individuals each having at least one
year of experience as an officer of a commercial lending
institution, a manager of a private for-profit business, an
attorney, a professional accountant, an engineer, an architect or a
developer.
2. Twenty points. Board of Directors meets all of the
criteria in subparagraph 1., and has a minimum of five board
members each having at least one year of experience as an officer
of a commercial lending institution, manager or officer of a
private for-profit business, attorney, professional accountant,
engineer, architect or developer. At least three of the areas must
be represented; an individual may only be credited for one area of .
expertise.
(3) Three Year Plan. A total of 20 points may be awarded
under this category. The Plan must clearly identify in narrative
and chart form what the CDC intends to do over the next three year
period, should the agency receive CDCSAP funding. This document
will be used to design scopes of services for those agencies which
receive CDCSAP funding beginning with the year for which the
application is being made. The Plan must include measurable
activities and tasks with specific timeframes for completion; The
Three Year Projection of Activities and Tasks Form is to be used to
augment the narrative description of the Three Year Plan. The Plan
and all components must be original documents created by the CDC
specifically for this application, and consist of a 1-20 page
narrative, accompanied by the appropriate number of Three Year
22
A
Projection of Activities and Tasks Forms and must be organized as
follows :
(a) Introduction - A concise description of the process used
to conduct the Community Wide Needs Assessment, a discussion of the
nature and extent of the Board's involvement in the process, and a
presentation of the highlights of the Three Year Economic
Development Plan.
(b) community Wide Needs Assessment - An analysis and
evaluation of the social, economic and cultural characteristics of
the Service Area and a prioritization of the most critical needs of
the area. The assessment must be based on an analysis of u.s.
census data or comparable state and Federal Departments' officially
generated information. Topics to be addressed are:
1. Description of the Service Area - size, location, and
physical characteristics.
2. Service Area Profile - An identification of the
characteristics of the Service Area: population, economics,
business mix and climate, employment statistics.
3. Priority Listing of Service Area Needs This is an
analysis of the Description of the Service Area and Service Area
Profile discussions. This section shall identify and prioritize
the specific problems and needs of the Service Area. The narrative
and listing should relate directJ.y to the Service Area PrOfile, and
will be the basis for determining the Activities and Tasks to be
undertaken over the next three years.
4. Outline of Venture and Development Activities - The
Description of the Service Area, service Area Profile, and Priority
23
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, .
Listing of Needs must indicate the types of activities and ventures
which the CDC will undertake to alleviate the specific conditions
within the Service Area, and create jobs. The types of Activities
may include:
Business Assistance/Technical Assistance
CDC Capacity Building
Commercial Oevelopment
Hotel Development
Housing Construction/Rehabilitation/Management
Housing Program Referral Assistance
Industrial Park Development
Manufacturing
Other Economic Development Activities
Real Estate Development
Revolving Loan Fund Administration
Shopping Center Development/Management
Venture Administration
The specific activities will be determined by the Service Area's
priorities and will be the basis for the Three Year Projection of
Activities and Tasks. Each task undertaken will clearly relate to
the Service Area's Priority Needs. The discussion for each
activity must include:
a. A detailed description of the proposed Activity and an
identification of subcomponent Tasks.
b. A discussion of the feasibility of undertaking the
venture.
24
~ .
'..
c. An estimate of the cost for complete capitalization of the
Activity, an identification of potential sources of funding, and an
identification of technical assistance and staff expertise
requirements which include strategies for securing same.
d. Discussion of the expected outcome of the proposed
Activity and Tasks. Project over three years the benefits (jobs
created, income, equity produced, businesses created/preserved,
etc.) to the COC Service Area which will be created by the proposed
venture.
5. strategy for Self-Sufficiency - A description of the
benefits of the proposed venture development activities which will
assist the CDC in moving toward the goal of self-sufficiency.
6. Three Year Projection of Activities and Tasks Form - The
Three Year Projection of Activities and Tasks Form is a tabulated
chart which outlines ,what the CDC intends to do should it receive
CDCSAP funds for the applicable period. The Three Year Projection
of Activities and Tasks Form will be used to augment the narrative
discussion of the Three Year Plan, and to help determine the score
awarded to the Plan. Some activities and tasks may extend beyond
this three year period. In such cases the Three Year Projection of
Activities and Tasks Form must follow through to the completion of
25
the activity and related tasks.
7. scoring - Applicants whose Three Year Plans address each
Guide requirement shall be deemed complete and will be awarded
scores of either 10 or 20 points based on the thoroughness,
feasibility, and adequacy of their responses. Incomplete Plans
, '
will receive a score 'of zero points.
~
10 Points - A score of 10 points will be awarded for Three
Year Plans which address each Guide requirement in a manner that
supports existing data and reflects the needs of the Service Area
as demonstrated in the Community Wide Needs Assessment.
20 Points - A score of 20 points will be awarded for Three
Year Plans which meet the criteria for 10 points and present
comprehensive business development and partnership-building
strategies projected over a three year period beginning with the
year for which application is being made. These plans must clearly
relate to the prioritized needs, demonstrate knowledge of Service
Area business conditions, project reasonable and feasible solutions
to those particular circumstances, and identify resources adequate
to contribute to self-sufficiency.
(4) Applicants who can clearly demonstrate the receipt of
administrative funds from sources other than CDCSAP funds will be
scored according to the cumulative amount of dollars received
within the two years preceding the application deadline date and
can include grants, donations or investment income. The use of
those funds must directly relate to the economic development
activities proposed in the CDCSAP application. The Department will
consider in-kind contributions which demonstrate verifiable cost
values within the applicable timeframe and which are contractually
committed. All documentation must be in the grant application.
To be eligible for scoring, documentation shall be either an
executed letter from an authorized representative of the funding
source, an executed contract with a budget and scope of services,
or a complete 'audit. ' Selected pages of any documents are not
26
~
acceptable. Documentation shall clearly demonstrate the receipt of
funds within the eligible time period, and that the funds were for
administrative purposes. To be considered for scoring, the
relevant dollar amount and signatures must be highlighted or
circled in the document itself, with the page number shown on the
Administrative Funds Form. Any documentation which indicates a
contract, budget and scope of services inclusive of the two year
period, or any part thereof but extending to a future date beyond
the application deadline, shall be pro-rated over the eligible time
period unless documentation provided in the application indicates
otherwise. A maximum of 50 points will be awarded for $500,000 or
more in administrative funds at the rate of one point per $10,000
received.
(5) Any funds not documented as received prior to the
deadline will not be considered for scoring. Conditional or
contingent receipt of funds other than the condition that the CDC
receive CDCSAP Administrative Grant, or documentation subject to
prior or future conditions will not be considered for scoring.
(6) Applicants who can document at least a ten percent direct
financial participation in the acquisition, expansion or creation
of a revenue generating, job producing activity within the three
years preceding the application deadline date will be scored
according to the total funds committed to that activity through
donations, grants, loans or direct equity injection. Agencies
which serve as coordinators or administrators of projects and which
cannot demonstrate a direct financial participation will not be
considered eligible for scoring. In order to be awarded venture
27
~
leverage points, the CDC must certify that the venture activity is
fully operational and the applicant must document that the
resources necessary to complete the project are contractually
committed to it by the application deadline date. All commitments
must be documented, binding and included in whole in the grant
application. Selected pages of any documents are not acceptable.
To be eligible for scoring documentation shall be either an
executed letter of commitment from an authorized representative of
the funding source or an executed contract with a budget and scope
of services. Documentation shall clearly demonstrate the
commitment of funds to the venture within the eligible time period~
To be considered for scoring, the relevant dollar amounts and
signatures must be highlighted or circled in the document itself
with the page number shown on the Venture Funds Form. A separate
Venture Funds Form must be completed and tabbed for each venture.
A maximum of 60 points will be awarded for $1.8 million or more of
venture funds leveraged at the rate of one point per $30,000
leveraged.
(7) Enterprise Zone. Applicants which document that their
Service Area overlaps 100% of a state or Federal Enterprise Zone
shall receive 5 points. Applicants which document that their
Service Area partially overlaps a state or Federal Enterprise Zone
shall receive 3 points. Applicants which fail to document any
overlap of their service Area with a state or Federal Enterprise
Zone shall receive zero points under this section.
(8) Use of Loan Program. Applicants which document that they
have received CDCSAP loan funds in the three years preceding the
28
.
application deadline date, and are current in the repayment of
those funds, shall receive points as follows:
(a) all 3 years 10 points
(b) 2 out of 3 years 6 points
(c) 1 out of 3 years 3 points
(d) none 0 points
(9) Administrative Grant History. Applicants shall .
rece~ve
up to 5 points at the rate of one point for each year during which
the applicant was in existence and did not receive a CDCSAP
Administrative Grant.
(10) The maximum number of points will be 200. Scores
awarded under each criteria will be summed and that sum shall
constitute the total score for that applicant. Scores for all
applicants will be ranked and eligible applicants will be funded as
set forth in subparagraph (12) below until funds available are
exhausted. An applicant for an Administrative Grant must score a
minimum of 100 points to be eligible for funding.
(11) In state fiscal year 1992-1993, a three year
administrative funding cycle will be established. In year one,
100% of the funds appropriated for administrative funding shall be
used for Administrative Grants as defined in Rule 9B-14.001(3),
F.A.C. In years two and three, 90% of each year's appropriation
for. administrative funding shall be used for Administrative Grants,
and 10% shall be used for Planning Grants.
(a) A maximum of 18 Administrative Grants may be awarded in
any fiscal year pursuant to Section 290.036(3), F.S.
29
(b) Applicants which receive a score of 150 or more points
will be awarded a Three Year Administrative Grant.
(e) Applicants which receive a score of at least 100 points
but less that 150 points will be awarded a One Year Administrative
Grant.
(d) The Secretary may award Planning Grants as defined in
Rule 9B-14.001(25), F.A.C., to those applicants which have been
created no more than five years prior to the application deadline
date and have not previously received an Administrative Grant.
Planning Grant applicants are not subject to a minimum score
requirement and shall not be scored on the amount of venture funds
leveraged. Planning Grant applicants must include in the Three
Year Plan a strategy to create partnerships within the service area
which may include other non-profit organizations, for profit
businesses, local and state government bodies and agencies, or
foundations.
(12) When two or more applicants for Administrative Grants
receive identical total scores for the last available award, the
Department will award the Administrative Grant to the applicant
which received the most CDC loan dollars. If the resulting total
dollar amount of loan funds received is the same for two or more
applicants, the Department will award the Administrative Grant to
the applicant with the highest total dollar amount of
administrative funds received and documented as required by Rule
9B-14.009(4), F.A.C.
(13) Where two or more applicants for Planning Grants receive
identical total scores for the last available award, the Department
30
will award the Planning Grant to the applicant with, the highest
total dollar amount of administrative funds received and documented
as required by Rule 98-14.009(4), F.A.C.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History-New 12-31-aO, Amended 10-5-82, 12-20-83, 6-4-84, 5-5-85,
Formerly 9B-14.09, Amended 4-12-88, 2-26-90, 12-19-90,
.
9B-14.010 Eligible projects, Loans. section 290.037(1),(a)-(c),
F.S., authorizes loans to be made to eligible applicants from the
CDCSAP loan fund for the purposes stated therein. Loans for
housing projects shall be limited to rehabilitation in which the
value of the repair or restoration of the project does not exceed
40% of the value of the project (excluding land) before repair.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
5-5-85, Formerly 9B-14.10, Amended 5-4-86, 2-26-90, 12-19-90,
.
9B-14.011 Application Format, Loans. An application for a loan
shall include the following information:
(1) Oocumentation sufficient for the Oepartment to verify
that the applicant is an eligible applicant as defined in Rule
96-14.001(15), F.A.C., and that the threshold eligibility
requirements of Rule 9B-14.007(2)(b), F.A.C., are met. In lieu of
providing evidence of gubernatorial appointment of one board
member, the applicant shall include a statement that, if selected
31
.,
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for funding and prior to release of funds, the qoc will accept an
appointment to the board by the Governor of one board Eember.
(2) In addition to (1) above, an applicant for a loan shall
include the supporting documentation required in section
290.036(2), F.S., and certification of the inability to secure
conventional financing, of the creation of at least one job or the
rehabilitation of at least one housing unit for every $~5,OOO
loaned, and of the overall net positive economic impact of the
project as required in section 290.037(5) (d), (e) and (f), F.S.
For any given state fiscal year, once the Department determines
that a COC has met the threshold criteria as cited above, it will
be necessary to resubmit only those items which may have been
eliminated or revised since the time of verification of the
previous loan or grant application used in determining threshold
eligibility.
(3) In addition to (1) and (2) above, the applicant for a
loan shall demonstrate the ability to make and administer loans for
projects by:
(a) Having a minimum of five members of the board of
directors which satisfy the requirements of Rule 9B-~4.009(2)(c)1,
F.A.C.i and
(b) Having a loan committee which consists of a minimum of 5
members, each having at least one year's experience as an officer
of a commercial lending institution, manager or officer of a
private for-profit business, attorney, or certified public
accountant. An individual may only be credited for one area of
32
expertise; the loan committee must at least include an officer of a
commercial lending institution and an attorney.
(c) Having at least one full-time paid employee on staff who
satisfies the requirements of Rule 9B-14.009(2) (a), F.A.C. '
(4) Once an eligible applicant has satisfied the requirements
in Rules 9B-14.019 or 9B-14.020, F.A.C., it may submit an
application for a loan at any time during the year. The Department
may waive certain items for applicants which are duplicative of
documentation presented in the grant application for the same
fiscal year. That application shall include at a minimum:
(a) A copy of the loan committee recommendation to the
Department which includes:
1. the economic feasibility of the project;
2. the capacity of the borrower to repay the loan; and
3. a description of the underwriting criteria used to
evaluate the loan; and
4. credit worthiness of the borrower.
(b) A copy of a resolution by the Board of Directors
approving the loan;
(c) Evidence of collateral available to secure the loan;
(d) copies of all proposed loan closing documents including
but not limited to promissory notes, security instruments and the
like; and
(e) A certification by the loan committee of the inability of
the borrower to secure conventional financing at the terms offered
by the CDC.
33
..
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"
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Specific Authority 290.038, F.S. Law Implemented 290.033, 290.035,
290.036, 290.037, F.S. History - New 12-31-80, Amended
10-5-82, 12-20-83, 5-5-85, Formerly 9B-14.11, Amended 2-26-90,
.
9B-14.018 Types of Loan Programs and Participation Requirements.
(1) Eligible applicants may participate in two loan programs,
the direct loan program and the guaranty loan program:
(a) In the direct loan program, the eligible applicant may
receive a loan to provide funds for a Service Area business. These
direct loans must be made in conjunction with funds from other
sources, including but not limited to, financial participation by a
commercial lending institution as described in Rule 9B-14.019(3),
F.A.C.
(b) In the guaranty loan program, .the CDC may make a loan to
a Service Area business provided there is an agreement by a
commercial lending institution to purchase the resultant note at
its face value without recourse except to the guaranty fund. The
eligible applicant will deposit up to 90 percent of the proceeds of
sale of the note in an interest-bearing guaranty account which
shall be utilized to guarantee the repayment of the loan purchased
by the lending institution. In case of default on payment of the
promissory note, the lending institution may proceed against the
guaranty account and against the maker of the note utilizing any
remedies available under law. However, once the lending
institution obtains full payment on the promissory note, including
any legitimate costs provided for in the note, the note shall be
assigned to the COC from which it purchased the promissory note.
(2) Eligible applicants for direct and guaranty loans shall
prepare and submit to the Department a loan fund procedure manual
acceptable to the Department which includes at a mininum the
following:
(a) The types of loans that will be made;
(b) criteria for participation and required collateral;
(c) Loan application forms;
(d) underwriting criteria to be used;
(e) Sample closing documents; and
(f) The form and format of presentations to the loan
committee of the COCo
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Amended 5-5-85, Formerly 9B-14.18, Amended
5-4-86, Repromulgated 2-26-90, 12-19-90, Amended
9B-14.019 Direct Loan Program participation Requirements.
An eligible applicant, in order to qualify for a loan for the
purpose of directly loaning said funds to a Service Area business
shall comply with and submit documentation demonstrating compliance
with Rule 9B-14.018(1) (a) and (2), F.A.C., and the following~
(1) There shall be binding commitments of non-state funds or
existing unencumbered assets for the Service Area business in a
ratio of 2 non-state dollars for every dollar of CDCSAP funds.
Non-state dollars for this purpose means all funds other than
35
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. .
CDCSAP, which are adequate for capitalizing the business in
conjunction with CDCSAP funds;
(2) The committed funds shall be demonstrated to be adequate
for complete capitalization of the project;
(3) There shall be a loan by a commercial lending institution
to the Service Area business in an amount at least equal to, and a
term of repayment not shorter than the term of, the CDCSAP loan;
and
(4) The CDC shall enter into an agreement with a commercial
lending institution which provides that the lending institution
shall, as an agent of the eDC, collect the payments from the
business and remit the entire principal portion no less frequently
than annually directly to the Department, and the interest to the
CDC at a frequency to be determined by the CDC and the institution.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Amended 5-5-85, Formerly 9B-14.19, Amended
5-4-86, 2-26-90, 12-19-90,
9B-14.020 Guaranty Loan Program Participation Requirements.
(1) An eligible applicant, in order to qualify for a loan for
the purpose of guarantying a loan made by the CDC and selling the
note to a commercial lending institution shall comply with and
submit documentation demonstrating compliance with Rule 98-
14.018 (1) (b) and (2), F.A.C.
(2) The CDC shall submit an executed agreement with a
commercial lending institution that includes at a minimum:
36
(a) An agreement to purchase the particular note made to the
CDC:
(b) An agreement to provide technical assistance to theCDC
in reviewing underwriting, loan collections and servicing, in the
closing of loans made by the CDC, including but not limited to the
perfection of security interests in collateral for those loans:
(c) An agreement by the CDC to place on deposit in the
lending institution an amount to be no more than 90 percent of the
face value of the note purchased. Those funds shall be held in an
interest-bearing guaranty account with the commercial lending
institution. The commercial lending institution shall charge no
more than a four point spread between the interest rate of the loan
made to the borrower and the interest earned on the guaranty
account.
(d) An agreement by the lending institution to reduce
annually the amount of funds held in the guaranty account to an
amount no greater than 90% of the outstanding principal owed by the
borrower, and to remit that reduction of the guaranty account to
the Department unless otherwise provided for in the loan agreement
with the Department. The interest from the guaranty account shall
be paid to the CDC at intervals to be agreed upon by the lending
institution and the CDC; and
Sp~cific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Amended 5-5-85, Formerly
9B-14.20, Amended 5-4-86, Repromulgated 2-26-90, 12-19-90, Amended
37
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9B-14.021 Terms and Conditions of Loans to par~icipating
CDCs.
(1) Direct Loan Program. No direct loan shall exceed
$250,000 and the term of repayment shall be no longer than the
term of the loan provided by the commercial lending institution, up
to a maximum of 15 years.
(2) Guaranty Loan Program. No guaranty loan shall exceed
$75,000 and the term of repayment shall not exceed the term of the
CDC's loan to the business, up to a maximum of 15 years.
(3) In state fiscal years 1991-1992 and 1992-1993, no CDC
shall receive in loans more than 40% of the total annual
appropriation for loans for that fiscal year. In state fiscal year
1993-1994, no CDC shall receive in loans more that 35% of the total
annual appropriation for loans during the first three quarters of
that fiscal year. In subsequent years, no CDC shall receive in
loans more than 30% of the total annual appropriation for loans
during the first three quarters of the fiscal year. In state
fiscal year 1993-1994 and thereafter, if all loan funds have not
been obligated by the end of the third quarter of the state fiscal
year, then a CDC may receive in loans up to 40% of the total annual
appropriation for loans for that fiscal year.
(4) Security/Collateral for Loans:
(a) Loan Underwriting Analysis. Loan underwriting analysis
shall be conducted by the CDC and participating bank loan
committees. A detailed memorandum of the loan underwriting
analysis of the CDC loan committee shall be submitted to the
Department for approval. The 'underwriting analy~is shall include
38
..
consideration of the borrower's cashflow, credit worthiness, and
consideration of collateral and personal guarantees.
(b) The loan must be adequately secured to the satisfaction
of the Department, taking into account the collateral, lien
priority, guarantees, cash flow of the project and credit
worthiness of the borrower. At a minimun, there must be
unencumbered collateral equal to the principal amount of the loan.
(c) Personal Guarantees. The Department requires that, in
addition to pledging adequate collateral, all principals of a
corporation or partnership personally guarantee repayment of the
loan in full. This shall be evidenced by personal payment
guarantees which shall be contained in the loan application.
(5) Once the Department has certified that a CDC is eligible
under Rule 9B-14.005, F.A.C., the CDC may submit applications for
guaranty or direct loans. Subsequent applications for guaranty and
direct loans may refer to previously established applicant
eligibility certification, provided that nothing has occurred which
would render that eligibility invalid. Such a reference should
include a certification of current eligibility in the form of a
board resolution.
(6) Where requested by a CDC with an outstanding CDCSAP loan
agreement or agreements, the Department may consider requests for
term extensions; renegotiations; consolidations of several loans;
or default workouts. criteria to be considered shall include, hut
not be limited to, the following: CDC's level of loan activity in
the CDCSAP loan program, extent of losses incurred in the operation
of the loan' portfolio, experience level of staff administering the
39
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CDCSAP loan fund, commercial lending institution participation on
loan committee and board of directors, satisfactory performance
under the CDCSAP grant, other loan activity with the CDC, the type
and liquidity of security offered and payment history of CDCSAP
loan portfolio. The Department may utilize such other criteria as
it deems appropriate in considering these requests on a.case-by-
case basis such as, but not limited to, terms requested, rationale
for request, and economic circumstances that may affect the CDCSAP
fund. Where amendments to the current loan agreement are approved,
the Department shall negotiate with the CDC a level of annualized
repayment which is satisfactory to the Department.
(a) Term Extension/Renegotiation. In the case of a request
for a term extension and/or a modification of the annual repayment
amount, such request may be granted by the Oepartment where the CDC
has satisfactorily documented that the request is necessary to
permit the borrower to satisfy its obligation under the promissory
note and to prevent the loss of jobs. TheCDC must provide
evidence of the borrower's repayment ability based upon the
extension request. A term extension to adjust the repayment date
within the same fiscal year, solely to permit the maturity date of
a guaranty account to coincide with or immediately precede the
repayment date for the loan from the CDC to the Department, shall
be.granted, provided that the total amount of the annual repayment
to the Department within that fiscal year is not reduced. An
extension cannot exceed the 15 year maximum term as defined in
Section 290.037(6), Fla. stat. (1989).
40
~
(b) Consolidation. A consolidation of several loan
agreements into one loan agreement for the sole purpose of having
one annual repayment shall be approved by the Department when the
CDC has satisfactorily demonstrated that the request is cost
effective and will not reduce the amount of the annual payments to
the Department.
(c) Default Workouts.
1. In the event the loan made by the CDC to the borrower goes
into default, the CDC agrees that it will promptly assert all
available rights and remedies, including instituting legal action,
against the borrower and against any collateral or any security
interest held by it in such collateral. Upon the filing of a law
suit, the CDC shall advise the Department of the forum in which the
complaint or petition is filed, the style and the case number and
the type of action filed. The proceeds obtained from any actions
against the borrower, the collateral, the security interest, or the
guaranty account shall be promptly remitted to the Oepartment when
received by the CDC, in an amount not to exceed the balance due
under the loan.
2. In the event of the sale or failure of the business of a
borrower, the Department shall absorb a portion of the loss, as
provided in section 290.037(7), F.S. "Other comparable creditors" I
for, purposes of this section, means all other creditors of the
borrower whose loan is secured by the same real or personal
property as the eDC's loan to the borrower. If there are no other
comparable creditors, then the entire loss on the remaining balance
owed by the CDC shall be absorbed by the Department. If a creditor
41
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purchases the real or personal property at a judicial or
foreclosure sale, then the fair market value of said property, less
the price bid at sale, shall be included in the amount received by
that creditor on its loan. The proportion of loss to be abs~rbed
by the Department shall be that fraction which is equal to the sum
of the losses incurred by all secured creditors of the borrower
divided by the sum of the original principal amount of all such
secured loans of the borrower, regardless of the priority of the
liens.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Formerly 9B-14.21, Amended 5-4-86,
2-26-90, 12-19-90,
9B-14.022 Ranking of Simultaneous Loan Applications. When those
conditions occur as described in Rule 9B-14.003(3) (b) F.A.C.,
scoring of the applications to determine funding priority shall be
based on evidence documenting compliance with the following
criteria. The Oepartment reserves the right to reject inadequate
documentation and it will inform the Applicant in writing the
reasons therefor.
(1) Ratio of Non-state Funds. The ratio of non-state funds
shall be the ratio of total non-state funding to the loan amQunt
requested. The highest ratio shall be assigned a total of 100
points and the lowest a score of o. All other applications will be
assigned a score based on their relative position between these two
points.
42
~
(2) Number of Permanent Jobs. The Applicant shall project
the number of new permanent jobs resulting from the project. The
application with the highest number of new permanent jobs created
shall be assigned a score of 100 and the lowest, a score of o. All
other applications shall be assigned a score based on their
relative positions between these two points.
(3) Efficiency Evaluation. The number of new permanent jobs
projected shall be divided by funds requested under Rule 9B-14.010,
F.A.C., in order to project the ratio of jobs generated to funds
requested. The resulting ratio shall be the raw score. The
highest score shall be assigned a value of 100 and the lowest a
value or O. All other applications shall be assigned a score based
on their relative position between these two points.
(4) For each application, the three scores determined above
shall be averaged. The application shall be ranked and funded
based upon those averaged scores and availability of funds.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Formerly 9B-14.22, Repromulgated
2-26-90, 12-19-90, Amended
9B-14.023 Contracts for Grants and Loans.
Once the Department has selected a grant or loan applicqtion
for funding, the Oepartment and the CDC shall enter into a contract
which shall include, but not be limited to~ the following:
(1) Specified amount of grant or loan funds to be provided by
the Department;
(2) Schedule of payments by the Department;.
~
43
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(3) Standard assurances that the Act, thes.e rules and
other applicable laws and regulations will be complied with by
the CDC, including the requirement allowing the Governor to
appoint at least one board member;
(4) Budget for planned expenditure of the funds by the CDC;
(5) Reporting requirements;
(6) Specific monitoring and technical assistance
responsibilities of the Oepartment;
(7) A loan fund reimbursement schedule, if applicable;
(8) The specific eligible activities to he funded, based
upon the approved application;
(9) Sample promissory notes and security instruments to be
utilized in a proposed loan tranBaction;
(10) Penalty for non-compliance with terms of contract;
(11) Conditions for termination of the contract
for noncompliance; and
(12) Other conditions appropriate to sound contract and
public fiscal management principles and practices..
Specific Authority 290.038, P.S. Law Implemented 290.038, F.S.
History -New 12-30-84, Formerly 9B-14.23, Repromulgated
2-26-90, 12-19-90,
9B-14.024 Rights Reserved by the Oepartment. The Department
reserves the right to:
(1) Use information other than that contained in the
application to make the determination of eligibility for funding,
so long as that information is made available to.the applicant;
44
:.. ,... "., '"
(2) Examine any records of the applicant or recipient CDe, as
well as the financial records of any enterprise or business funded
by the coe, and establish monitoring and reporting procedures or
condition of the contract;
(3) Waive, for good cause, any requirement of these rules
which is not mandated by the Act, with the exception of deadlines.
Specific Authority 290.038, F.S. Law Implemented 290.038, F.S.
History - New 12-30-84, Formerly 9B-14 _,24, Repromulgated
2-26-90, 12-19-91, Amended
9B-14.025 Interagency Cooperation.
CDCs, or groups considering establishment of COCs, are
encouraged to utilize, in addition to the technical assistance
resources of the Department, the resources of a staff of local
government economic and community development departments, other
existing CDCs and other public or private resources. Nothing in
these regulations shall preclude inter-CDC activities such as joint
ventures and joint applications for projects in a service Area.
Specific Authority 290.038, F.S. Law Implemented 290.038, F.S.
History - New 12-30-84, Formerly 9B-14.25, Repromulgated
2-26-90, 12-19-90, Amended .
45
9B~14.026 Deadlines Construed.
Throughout these rules, where deadlines or time frames have
been established, hand delivered or postal receipt by 5:00 p.m. of
the designated date shall be considered compliance.
,.
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Specific Authority 290.038, F.S. Law Implemented 290.038, F.S.
History - New 12-30-84, Formerly 9B-14.26, Repromulgated
2-26-90, 12-19-90,
NAME OF PERSON ORIGINATING PROPOSEO RULE: Rosa Morgan,
Administrator, Economic Assistance Section.
NAME OF SUPERVISOR OF PERSON WHO APPROVED THE PROPOSED RULE:
Pat pepper, Director, Division of Housing and community
Development.
DATE PROPOSED RULE APPROVED:
46
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EXHIBIT C
Cities and Banking
Partners in Community Investment
by Frank Sho~orh
Last w~elr Pruidtn/.elec/ Bill Clinton said "I'm going to
devote a lot of attention to the condition of the banking 'system
in this country and the potential impact of the new capital
rrquinml-nl. coming i."1 on December 19, and ma)u ojudgmmt
on that. A.! loon C16 I do, I'll be glad to shan it with you..
IntUed, tht Pnsidtnt.elect ha! made clear his dderminotion
to suk ckangp.s in the nation's banking laws so that federally
Insured (inallcial institutions can be a catalyst for economic
opportunitu! in distrU$ed cilus and towns,
lIe want! to cnate a nl!twork of at least one hundred commu.
nity development bank!! to provide small loans to low. income
entnpnn~url and homeowners in rural towns and inner cifie~.
He want! to link the cnation of these new community lending
institutions to tougher enforcement of the Community Reinvest.
ment Act (CIlA) and the creation of incentive!! to invest capital
in the neUl community de,'elo;amen/ banks,
This is t~ l~t in a thru.part suies about the state of the
nation's banking communities and their relatiollship to the
nation's dtie., and towns, This part will focus on bank commu.
nity development corporations, or what the chairman of one of
the natiori's cities' olclest community tUvelopment banks calls
"The new old.fashioned banking, .
Reversing Capital Flight
Ronald Grzywinski, the
chairman of the board of the
Shorebl1nk Corporation, a
eommunit;y development bank
in Chicago that President-
elect Clinton has cited as a
model (or his proposal, wrote
in the Harvard Dusiness
Review last year:
.Most communities like
South Shore-and there are
hundreds like it all over
America-experience a net
outflow of residents' savings,
People make deposits at their
local bank or savings nnd
loan, the institution puts 11
good deal or money into secu-
rities to improve it., liquidity,
then it lends the I'est outSIde
the neighborhood in areas
where it believes it has a
lower risk, Essentially, the
savings o( poor communities
flow ouL to more affiuent com.
munities,"
Rnymond Lenzi, a special.
ist in community developm'!nt
finance ot the University of
Missouri in Columbia
describes this phenomenon
(rom a rural perspective as
"Capital Flight." Len~i
describes capital night as
when bnnks systematically
choose government treasuries
and low-risk bonds over local
loans as an investment strate.
gy, Lenzi's studies indicate
tnot rural towns typically
hove bank loan-to-deposit
ratios 30 percent below metro.
politan areos, That is, a
much smaller proportion or
'"\
deposits from those communi-
ties ore reinvested back into
the community lIS loans, He
describl.ls these loan ratios 05
.serious disinvestment prob-
lem!' indicative of a larger
national problem-the sys-
tematic disinvestment in
many nlral areas,"
COCs: New Old-Fashioned
Bonks
As the new Clinton admin-
istration looks at the persis-
tent patterns of disinvestment
and seeks to find new ways to
both encourage banks to rein-
vest in their own communities
and to enforce federal In ws
prohibiting discrimination,
the President-elect has
already made clear he will
propose changes in federal
banking laws to encourage
the development of a nation-
wide network of community
development banks, These
would be modeled after /I
number of new financing ini-
tiatives such as the Sou th
Shore Blink in 9hicago, the
Miami Business Assistance
Consortium, or Hie Southern
Development Banc()rporation
in Arkansas,
The growth of bank com-
munity development corpora-
tions has been dramatic in
recent years, The number
has grown to over 150 now
compared to approximately 65
as recen lIy as 1990, 'The
growth mirrorj; the economic
hardships facing many com-
munities and the railure of
traditional financial institu-
tions and programs to address
the problems and needs of
hundreds of cities and towns.
In Los Angeles, as part of
its effort!; to recover from the
civil disturbances that dam.
aged or destroyed more than
half of the 9000 affected busi-
nesses, the city is working to
create a community develop.
ment bank, The city is seek-
ing to leverage as much as
$20 million in private capital
for loans for new und existing
small businesses.
Grzywinski describes his
development bank as a throw-
rock to the original concept of
a bank, His bank believes in
geographic service areas-
that is that banks have local
areas and that they owe those
areas service. It means know.
ing the borrower, the neigh.
borhood, property values, and
the economic environment. It,
means tough credit standards
and close monitoring or the
projects to which it lends.
Community development,
banks target aggressive vcr.
sus passive bank lending and
investment according to
Lenzi, They l.arget new and
expanding businesses; they
provide 5ubordinate loans on
riskier projects; and they
make equity investments in
addition to debt financing.
What Are Community
Development Corporations
ICDes)?
Bank cncs arc community
development corporations
owned in full or in part by a
bank or banks, provided t.he
primary purpose is communi-
ty development for the bcnelil
of low and moderate income
ramilies, Danks may invest up
to five percent of their cllpital
in a COG, A community
development hank would,
thus, include a federally-
insured bank and a cnc, so
thnt it could take deposits,
make mortgages and small
business loans, make equity
investments in small busi,
nesses, micro-loans, provide
insuranee services, and
undertake other, non-trodi'-
tional community develop,
ment activities,
Dank CDCs con make
investments not normally per-
mitted by federal banking
regulators, sllch as equity
inve5tments in real est.at.e and
Banking Consultant Scheduled for
Congress of Cities Workshop
Charles Rial, Managing Diredor of Shorebonk
Advisory Services,'o subsidiary consulting Firm of th~
corporation that offers technical assistance on deve~
opment bonking and other economic development .
strategies, will be a panelist on the plenary session on
"Development cnd Design," on Tuesday, December 1
at 9 a.m., and will also serve on 0 workshop immedj.
ately after, "Using eRA to meet your economic devel:
opment n~s."
smoll businesses, if there are
public benp-fits involved-
such as affordable housing,
economic development, or
small business finnncing,
These loans or investments
are considered favorably
towards meeting Community
Reinvestment Act (CRA)
requirements, They represent
formal bank-community part.
nerships, Both urban and
rural CDCs seek to improve
the social and economic condi-
tions of the communities they
serve through employment or
income stubilizat.ion and/or
housing improvements,
Three elements appear to
be critical for a COC to be suc.
cessful. First, the bank must
use credi t to leverage the
energies or local residen ts,
Second, the bonk must pro-
vide and control the capital
resources necessary for a com-
prehensive development pro-
gram, And third, the bank
must be self-sustnining-not
subject to year,by-year grants
or government runding
South Shore sought to
rebuild the confidence or its
community and to resl.nrt. pri-
vate market forces. It crentco
a synergy in the neighbor-
hoods it served by targeting
all of its loans, H found that
t.he loans led to renovotion
which created concentric cir.
cles around its core area of
rescued building5 and fami-
lies, The bank makes money,
Even though it serves an
inner city, it has a loan failure
rate well below the nationnl
average.
Clinton Banks on Banks
The President-elect sl.nted
that rethinking the nation's
banking system to insure that
banlts are int.egral partners
with cities is a high priority
and one to which he intends
to devote significant time and
attention,
Last year, Sen. Alan Dixon
(D.IIl) proposed changes in
federal banking laws to
strengthen CRA and to
encourage the creation of
CDCs, Even though Sen,
Dixon was defeated in his bid
for re-election, his proposals
are likely to live on,
lie proposed to expand
CRA to include every liMn-
cinl institution extending
credit to the general public,
including insurance compa-
nies and finance companies,
He proposed to put CRA
enrorcement in the hands or
the Federal Trade Commis.
sion instead of the federal
banking rrr.ulatory agencies.
And he proposed that. as an
alternative WRY for banks to
meet CHA requirements, they
could make equity invest-
menb; in community develop-
ment banks-provided such
banks meet toughened CRA
tests,
Grzywinski wrote that the
new administration should
(,'Tant commercial banks the
new privileges they are seek-
ing, such as interstate
branching, mutual fund man-
agement, and securities
underwriting, but only to
those banks that demonstrate
"the most exemplary perfor-
munce in meeting the credit
needs of Uleir communit.y ser-
vice areas:
In other words, we should
link banking privileges to
each bank's performance in
achieving broader domestic
public policy objecti\'').'), The
bankers who achieve the best
results in community develop.
ment should be rewarded
with competitive advantage in
the marltetplnce-the oppor-
tunity to e'tpand and to offer
prof:table but otherwise pro-
hibited services."
Or, as the President.elect
has said, to return to the orad.
ical idea that banks ought to
make loans to people who
deposit in their bank." .
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_A REPORT ON STATE RULES
FOR
FUNDING OF COMMUNITY DEVELOPMENT CORPORATIONS
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SUBMITTED BY:
JERRY D. STERNSTEIN
MAY 20, 1993
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MEMORANDUM
TO:
Michael J. Wright, City Manager
FROM:
Jerry D. Sternstein, Economic Development Director ~
SUBJECT:
State of Florida Procedures for C.D.C. Assistance
DATE:
MAY 20, 1993
INTRODUCTION
On March 7, 1993, I sent you a memorandum dealing with Community
Development Districts, Community Development Corporations and
Bank CDCs. For review purposes, this is appended as Exhibit A.
There seemed to be some interest among the CRA Commissioners in
establishing a state chartered Community Development Corporation.
Al though no formal action was taken, I contacted Rosa Morgan,
Administrator of the Division of Housing and Community
Development in the Florida Department of Community Affairs and
asked for information relevant to state approval and monetary
support for such a venture. Ms Morgan was quite helpful in
giving me funding cycles and demographic requirements along with
the application forms. The actual "rules of the game" were
included as Exhibit B in the materials that accompanied the March
7th memorandum. They are given the same designation in this
submission. These state rules should be carefully analyzed prior
to preparing the application. Three points need to be noted:
1. The cover sheet summary that accompanies Exhibit B describes
the program, eligibility and funding cycles. The current
funding cycle is July 1, 1993 to June 30, 1994 but the
deadline for application acceptance was March, 1993.
2. The applicant can use either 1980 or 1990 census data to
support the distress ratings for each census tract included
in the CDC.
3. The state may decide to alter the required documentation and
forms prior to the beginning of the next funding cycle.
STATE OF FLORIDA RULES FOR ASSISTANCE TO CDCs
The Rules for CDC Support and Assistance are 46 pages in length.
Pages 2 through 7 are definitions. While all of the these terms
are important, particular a ttention should be paid to page 3
where "Community Wide Needs Assessmentlft and "Conservation
Communi ties" are def ined. These are cen tra 1 to the viabi 1i ty of
the appl ication and in large part determi ne whether the 5 ta te
will accept the CDC for funding. Page 4 touches on the term
"Distress", another key factor in demonstrating the need for the
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COCo
Page 6 defines "Planning Grant."
Page 10 defines "Eligible Service Areas"
bottom of page 10 through the top of
criteria are given. Page 12 and 13 discuss
Guide" which is lncluded as Attachment 1.
and starting at the
page 12, eligibility
the "Grant Application
Page 17 addresses the "Distress Formula Threshold Criteria" while
page 18 deals with the companion measure, the "Community
Conservation Index". Communities that do not register a "low"
distress rating will, in all probability, not receive state
approval. These criteria are central to the CDC qualifications.
They are also nearly identical to those used to justify the
city's Enterprise Zone application. I would suggest that the
planning staff who compiled the demographics for each census
tract in the 1989 application revisit those figures and attempt
to make the zone boundary more closely follow whatever boundary
is "workable" for the COC district. The manipulation of the
census tracts is both an art and a science. The inclusion or
exclusion of tracts will determine the distress rating.
Pages 19 through 29 give the scoring criteria for Administrative
and Planning Grants. Page 29 establishes the maximum and minimum
scoring points.
STATE GRANT AND LOAN PROGRAMS
Administrative Grants refer to either a three (3) year or a one
(1) year grant for administrative expenses awarded pursuant to
Section 290.036 F.S.(Attachment 2). This statute is included for
review purposes and to detail the types of activities that are
eligible. Generally, such activities encompass research,
training, consultant fees, staff salaries and other reasonable
overhead expenses.
Planning Grants refer to two (2) year grants for administrative
planning and organizational expenses awarded pursuant to Section
290.0365 F.S. (Attachment 3). rrhis grant cannot exceed $50,000
per fiscal year. Planning grant applicants must have been
created no more than f.ive (5) years prior to the application
deadline and may not have previously received a~ Administrative
Grant. Planning Grant applicants are not subject to a minimum
score requirement and aLe not scored on the amount of venture
funds leveraged. Applicants must include in the Three Year Plan
a strategy to create paLtnerships within the service area which
may include other non-profit organizations, for profit
businesses, local and state government bodies and agencies, or
foundations.
LOAN PROGRAMS
Direct Loans are made through a CDC to a service area business.
Direct loans must be made 1n conjunction with'funds from other
sources including, bu t not .1 imi ted to, participation by a
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commercial lending institution at a ratio of 2:1. No direct loan
can exceed $250,000 and the term of repayment cannot be longer
than the term of the loan provided by the commercial lending
institution, up to a maximum of 15 years.
Guaranty Loans are made through a CDC to a service area business;
there must be an agreement by a commercial lending institution to
purchase the resul tant note. Up to 90 % of the proceeds of the
sale of the note must be deposited in an interest bearing
guaranty account which is used to guarantee repayment of the loan
purchased by the lending institution. In case of default on
payment of the promissory note, the lending institution can
proceed against the guaranty account and against the maker of the
note utilizing any remedies available under law. Guaranty loans
cannot exceed $75,000 and the term of repayment can not exceed
the term of the CDC's loan to the business, up to a maximum of 15
years.
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Eligible applicants for direct and guaranty loans {local COCs}
must prepare and submit to the Department of Community Affairs a
loan fund procedure manual acceptable to the Department which
includes at a minimum the following:
(a) The types of loans that will be made;
(b) Criteria for participation and required collateral;
(c) Loan application forms;
(d) Underwriting criteria to be used;
(e) Sample closing documents; and
(f) The form and format of presentation to the loan
committee of the COCo
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EXHIBIT A
Memorandum
TO:
Michael J. Wright, City Manager
Jerry D. Sternstein, Economic Development Director~
SUBJECT: Research Report/COOs, CDCs, Bank CDCs
FROM:
DATE:
March 7, 1993
As a result of questions raised at a CRA meeting, I initiated
research into what might be termed, the II three Cs II . These
economic development programs are Community Development Districts
(COOs), Community Development Corporations (CDCs), and Bank
Community Development Corporations (BCDCs). While the three Cs
sound identical, in use, they are distinct economic developmen t
tools.
The Community Deve~opment District is a local unit of special
purpose government with a five member elected Board of
Supervisors created to provide a method for financing and
managing the construction, operation and maintenance of some or
all of the capital infrastructure and basic community development
services necessary to accommodate projected growth without
overburdening state, county or municipal governmental units.
The funds required to initiate infrastructure improvements for
roads, sewers, br idges, parks, etc. are raised by selling tax
free bonds, usually 20 year issues, which are then retired by the
revenue generated from the assessments and taxes levied on
district property owners. These assessments and/or taxes run the
gamut from ad valorem, benefit and maintenance and special
assessment taxes as well as selected fees and charges.
CDDs have become increasingly important, particularly to
residential/real estate developers who seek ways to start or
continue new projects when credit from other sources is either
unavailable or extremely difficult to obtain. CDOs also provide
a way for developers to comply with Florida's growth management
laws which require that roads and other improvements be funded
before the first lot can be sold.
Community Development Corporations are state chartered non-
prof i t corpora tions wi th an elected Board of Directors. These
corporations are structured to conform to various state criteria
and, once chartered, are eligible to apply for grants and/or
loans. Grants may be allocated to CDCs for up to $100,000 for
administrative support. Funding is based on a competitive grant
application process. Loans may be made to COCs for specific
projects and revenue generating ventures for up to $250,000.
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Loans may be made to new or expanding businesses through the
Guaranty Loan Program or the Direct Loa.1 Program. Direct loans
are required to match every dollar of state allocated funds with
two dollars of private funds.
To become operationally eligible under State statutes, a CDC must
first be recognized as a non-profit corporation which entails
securing membership support from those who live within the
service area by virtue of democratic elections for a governing
Board of Directors. The "target areal! in which economic
development projects are located must meet one or more of the
following criteria:
- a slum area or a blighted area
- a neighborhood strategy area of a community development
block grant program
- a neighborhood housing service district
- an area designated as a conservation community
- an enterprise zone
Finally, documentation must be provided to confirm that the
target area to be assisted is the .same as the service area or an
area contained within the boundaries of the service area in which
the CDC operates.
Bank CDCs are organizations funded by banks, bank holding
companies and/or federal savings associations under special
regula tions' tha t encourage investmen ts in local commun i ty and
economic development projects. Bank CDCs are proving to be
flexible private sector sources of funding and are being used to
finance many different types of local projects. Bank CDCs have
been promoted by the federal Economic Development Administration
and can be part of a bank · s ac ti v i ties under the Commun i ty
Reinvestment Act.
Historically, bank regulators wanted banks to participate In
local community development activities but banking laws and
regulations limited some banks' investment portfolios. The Bank
CDC program offers banks more flexibility to make certain types
of investments. Bank investments under this program are special
in that:
- Bank CDCs can make equity investments in real estate or
small businesses,
- Bank CDC investments are viewed differently than regular
bank loans by bank regulators and examiners, and
- Bank CDC programs are considered favorably for Community
Reinvestment Act activities.
Bank CDCs may take diverse organizational forms. They may be for-
profit or non-profit. They may be owned by a single bank, a
group of banks, or by banks and other investors such as savings
associations, utilities and corporations. As entities, they are
creations of and regulated by federal and state bank regulators,
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and any investment in a Bank CDC must be reviewed and approved by
each institution's bank regulator. These regulatory bodies are:
- The Federal Reserve Board which regulates bank holding
company investments in Bank CDCs,
- The Office of the Comptroller of the Currency which
regulates national bank investments in Bank CDCs.
- The Office of Thrift Supervision which regulates
investments in Bank CDCs by savings associations, and
Sta te Banking Regula tory agencies which oversee invest-
ments in Bank CDCs by state banks.
Investment strategies of Bank CDCs fall into several "niches".
The most frequent is capital to fill the small business equity
gap between conventional bank loans to small businesses and
investments by venture capitalists. Typically, banks take little
risk and earn a low return of 1 to 2 percent over prime while
venture capitalists take greater risks and target a return of 40
to 50 percent on invested capital. Bank CDCs can be effective in
helping to fill this financing gap. For example, a typical
client might be a small, local firm that needs capital to take
advantage of a growth opportunity, but isn't bankable because it
is too highly leveraged and has insufficient collateral. The
Bank CDC might decide to make an unsecured loan at 12 percent per
year with stock options designed to produce an additional 8
percent per year if the business fares well. This results in a
target of 20 percent return on capital. The Bank CDC takes more
risk, and conversely expects more reward.
Another Bank CDC niche is equity investments in property
development. This includes equity investments 1n downtown
commercial development projects, investments in specula tive (no
pre-leasing) industrial buildings, and investments 1n small
business incubator buildings.
Yet another niche is in minority business development. Some Bank
CDCs concentrate on making "micro loans" ($5k to $50k) and
"equity gap guarantees" for minority businesses in targeted
areas. Such loans help to make some deals bankable and, over the
long term, stimulate the creation of new business.
The most signif icant difference between regular bank loans and
Bank CDCs is that the CDCs can make equity investments. Simply
stated, an equity investment by a Bank CDC is a way to defer the
short-term, relati vely certain return of a bank loan for the
expectation of a larger but less certain return in the long term.
Sponsoring
involvement.
banks can derive certaln
These benefits include:
benefits
from
their
CDC
- direct return on investment
- tax credits or other tax advantages
- enhancement of regular bank loan or deposit business
resulting from the bank's involvement with CDC projects
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- indirect benefits from local area growth
- positive image, publicity and community relations
It is too early to predict the long term viability of Bank CDCs.
At this stage, some critics characterize them as token gestures
by banks to comply with the current i.nterest in the Community
Reinvestmen~ Act. If the investment niches yield high losses or
are only marginally successful, sponsoring financial institutions
might abandon the concept.
Detailed information relevant to the three Cs is included as
exhibits to this report.
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EXHIBIT B
Community Development Corporatior.
Support and Assistance Program
o Program Description
Funds are allocated annuall)' b)' the Florida Legislature to the State
Communit)' Development Support and Assistance Trust Fund. The
Legislature created this program in 1980 to address the economic
deterioration of communities throughout Florida. The funds are used
to pro,'ide financial assistance to community development corporations
(CDCs). CDCs are formed to create and maintain a sound economic
base in concert ,,'ith private enterprise in distressed areas.
o Eligibility
-CDCs \\'hich are non-profit corporations ,,'ith an elected Board of
Directors and \\'hich meet ser\'ice area criteria, are eligible to appl)' for
grants and/or loans;
- grants ma)' be allocated to CDCs for up to $100,000 for
administra~lve .support. Funding is provided based on a competitive
grant Application Process; ,
- loans Ina)? be nlade to CDCs for specific projects and revenue
generating ventures for up to $250,-000;
- loans rna;y be made to ne~' or expandin~ businesses through the
Guaranty Loan Program or through the Direct Loan Program. Direct
loans are required to match every Dollar of state allocated funds vrith
t\\'O dollars of prh'ate funds; and
- funding c~'cles for the grant program are announced in the Florida
Administrative ,\\7eekl)'; the ioanlrogram is operated, on a continuous
cycle until all funds are expende .
o
Current Status
.
Applications due dates for grant funding for the State Fiscal Year are
determined annually. The application deadline is usuall)' bet\\'een
January and l\larcli.
,
For Additional Information or to be added to the I\lailing List Contact:
ROSA 1\fORGAN, Administrator
. Dh'ision of Housing and Community Development
Department of Communit~' Affairs
2740 Centerview Drive .
Tallahassee, Florida 32399-2100
OR CAl"L (904)488-3581
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9B-14.001
9B-14.002
9B-14.003
9B-14.004
9B-14.005
9B-14.006
9B-14.007
9B-14.0081
9B-14.009
9B-14.010
9B-14.011
9B-14.018
9B-14.019
9B-14.020
9B-14.021
9B-14.022
9B-14.023
RULES
OF THE
DEPARTMENT OF COMMUNITY AFFAIRS
DIVISION OF HOUSING AND
COMMUNITY DEVELOPMENT
RULES FOR COMMUNITY
DEVELOPMENT CORPORATION
SUPPORT AND ASSISTANCE PROGRAM
Definitions.
Purpose.
Funding Availability.
Eligible Service Areas, Grants and Loans.
Eligible Applicants, Grants and Loans.
Application Format, Grants.
Application Process, Grants.
Distress Formula Threshold criteria.
scoring criteria, Administrative and Planning Grants.
Eligible Projects, Loans.
Application Format, Loans.
Types of Loan Programs and Participation
Requirements.
Direct Loan Program Participation Requirements.
Guaranty Loan Program participation Requirements.
Terms and Conditions of Loans to Participating
COCs.
Ranking of simultaneous Loan Applications.
Contracts for Grants and Loans.
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9B-14.024 Rights Reserved by the Department.
9B-14.025 Interagency cooperation.
9B-14.026 Deadlines Construed.
9B-14.001 Definitions.
(1) "Act" means the community Development corporation Support
and Assistance Program (CDCSAP) established by Chapter 290, Florida
statutes4 which provides for a fund for the purpose of providing
loans and grants to eligible "CDCs".
(2) "Administrative Expenses" means such costs necessary to
effectively operate the office of the CDC. Such costs may include~
but not be limited to, those activities set forth in Section
290.036(1), F.S., research activities, training activities,
consultant fees, staff salaries and other normal and reasonable
overhead expenses.
(3) "Administrative Grant" means either a 3-year or a I-year
grant for administrative expenses, awarded pursuant to Section
290~036, F.S., but does not include Planning Grants as set forth in
Section 290.0365, F.S.
(4) "Binding Commitment" means a written document signed and
dated by the party presently committing the funds, goods~ or
services to the CDC without contingencies or qualifiers. The
commitment must be for a specific period of time.
(5) "Commercial Lending Institution" means a bank, credit
union, savings and loan association, or any commercial private
lending institution.
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(6) "community Development Corporation" or "CDC" means a non-
profit corporation under Florida Law, Chapter 617, F.S., and
Section 290.033(2), F.S. The CDC must conduct or financially
support revenue generating businesses, with the purpose of economic
and social development of its community. It must be based in a
specific geographic area, controlled by area residents and
committed to enhancing community well being.
(7) "community Development Corporation support and Assistance
Program (CDCSAP)" means the program established by the Department
to administer the Act.
(8) "community Wide Needs Assessment" means the
identification, analysis, and evaluation of the social, economic,
and cultural characteristics of the_Service Area and a
prioritization of the most critical needs of the area. The
assessment must be based on an analysis of U.S. Census data, or,
comparable officially generated information.
(9) "Conservation Communit.ies" means cities, census tracts
and unincorporated places ranked according to their relative
distress by the Department and automatically eligible as service
Areas under the Community Development Corporation Support and
Assistance Program.
(10) "Department" means the Department of Community Affairs.
(11) "Direct Loan" means a loan made to an eligible applicant
to provide a loan to a Service Area business. Direct loans must be
made in conjunction with funds from other sources inCluding, but
not limited to, participation by a commercial lending institution
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at a ratio of 2:1. For reference see Rule 9B-14.018 and 9B-14.019,
F.A.C.
(12) "Distress" means the degree of distress as measured by
the factors outlined in Rule 9B-14.0081(1), F.A.C.
(13) "Documentation" means supporting references or records
such as complete, executed contracts, with all attachments, copies
of canceled checks, or other materials which clearly indicate funds
were received during a specific time period.
(14) "Economic Development" means those activities designed
to revitalize, preserve, redevelop or restore an area which
exhibits signs of decline and deterioration. For purposes of
scoring the categories of demonstrated ability to leverage
administrative funds under Rule 9B-14.009(4), F.A.C., and
demonstrated capacity in economic development under
Rule 9B-14.009(6), F.A.C., activities normally associated with
social services, arts and culture or general education cannot be
considered as economic development.
(15) "Eligible Applicant" or "Applicant" means a Community
Development Corporation as defined in section 290.033(2), F.S., and
which is eligible for assistance under section 290.035(1) I (2) and
(3) I F.S.
(16) "Fully Capitalized" means documented evidence that funds
committed to the venture by binding commitments are sufficient to
complete the project.
(17) "Fund" means the Community Oevelopment corporation
support and Assistance Trust Fund.
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(18) "Good Standing" means that a CDC has fulfilled and is
current concerning all contractual obligations to the Department in
relation to the CDCSAP including all obligations of both a
financial and reporting nature for both CDCSAP past and present
grants and loans as described in Rule 9B-14.005(5), F.A.C.
(19) "Grant Application Guide" means the official application
document, including forms and instructions, which an eligible CDC
is required to prepare and submit in order to apply for CDCSAP
grants. The Grant Applicati.on Guide (Effective February 1992) may
be obtained by calling or writing the Department of Community
Affairs is hereby adopted by reference as a part of Rule 9B-14,
F.A.C.
(20) "Guaranty Loan" means a loan made to an eligible
applicant to provide a loan to a service Area business, but there
must be an agreement by a commercial lending institution to
purchase the resultant note. The eligible applicant will deposit
up to 90% of the proceeds of the sale of the note in an interest
bearing guaranty account which shall be used to guarantee repayment
of the loan purchased by the lending institution. For reference
see Rule 9B-14.018 and 9B-14.020, F.A.C.
(21) "Loan Application Guide" means the official application
document, including forms and instructions, which an eligible CDC
is required to prepare and submit in order to apply for CDCSAP
loans. The Loan Application Guide (Effective February 1992) may be
obtained by calling or writing the Department of Community Affairs
and is hereby adopted by reference as a part of Rule 9B-14, F.A.C.
5
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",'_' ,..' .,,' ...".'{....~..:.~.:"i, .. .'i ,'..... "'~;L~.i" ,...;,.,,'. ,,:,...: . "'....':"','.",..'.(: :.'" ".",
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(22) "Management Experience" means on the job, paid
experience at the management level in a Community Development
corporation, a Local Development Corporation, as a commercial loan
officer, or in a for-profit business. Experience must clearly
demonstrate administrative, supervisory and decision making
responsibilities. A position described or titled as interim,
acting or temporary will not be considered eligible for scoring.
(23) "Non-Profit Corporation" means a corporation
incorporated pursuant to Chapter 617, Florida statutes.
(24) "Permanent Job" means a full-time position, the duration
of which will eKceed 12 months and involve a minimum average of 30
hours per week of employment.
(25) "Planning Grant" means a two year grant for
administrative planning and organizational expenses awarded
pursuant to Section 290.0365, F.S., and Rule 9B-14, F.A.C., which
shall not exceed $50,000 per fiscal year.
(26) "Professional Experience" means a paid position within a
community Development Corporation, a for-profit business, or as a
commercial loan officer, with responsibilities specifically
relating to work requiring the consistent exercise of discretion
and judgment and which requires specialized academic education.
Clerical or manual labor shall 'not be considered as professional
experience.
(27) "Repayment Agreement" or "Loan Contract" means an
agreement between the Department and a CDC which details the terms
and responsibilities of the CDC concerning the remittance of grant
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or loan funds due to the Department by the ene.
In cases where
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the CDC can demonstrate to the Department the existence of a
revenue generating business venture with proceeds sufficient to
meet the annual debt service due to the Department, a loan contract
or a repayment agreement may be negotiated which permits annual
repayment of funds. The business must be determined by the
Department to be reasonable and feasible with regard to the
potential to generate adequate funds to meet the annual debt
service. The term of a Loan Contract or Loan Repayment Agreement
shall not exceed 15 years from the date of execution of the
original promissory note. In the event that a COC defaults on a
loan contract or repayment agreement, then the entire balance owed
to the Department is due immediately upon default.
(28) "Revenue Generating Business" means a business engaged in
the production of goods or services which generates income and
employment for the community.
(29) "Secretary" means the Secretary of the Department of
Community Affairs.
(30) "Self-Sufficiency" means the ability of a CDC to
maintain a consistent level of services without administrative
grant or loan support from the CDCSAP.
(31) "Service Area" means the entire area in which a
Community Development corporation will operate using COCSAP funds.
(32) "Three Year Plan" means a document which clearly
identifies the long range planning efforts of the CDC as described
in Rule 9B-14.009(3), F.A.C.
specific Authority 290.038, F.S. Law Implemented 290.033-.038,
F.S. History - New 12-31-80, Amended 10-5-82, 12~20-83,
7
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12-30-84, 5-5-85, Formerly 9B-14.01, Amended 5-4,-86, 2-26-90,
12-19-90, Amended
.
9B-14.002 Purpose.
The purpose of this Rule is to provide procedures for the
Department's implementation and administration o! the CDC support
and Assistance Program, Section 290.0301, F.S., hereafter referred
to as the "Act". The Act creates a program for financial and
technical assistance to community Development Corporations for the
achievement of the economic development objectives described in the
Act. These rules and the Act shall be liberally construed by the
Department to effectuate the statement of policy and purpose found
in the Act. It is the intent of the Department that these rules
permit maximum flexibility within the limits of the Act, yet define
procedures consistent with the sound public funds management
principles and consistent with the need to apprise potential
applicants, funds recipients and the public of the Department's
policy governing disbursement and accountability for the funds.
Specific Authority 290.038, F.S. Law Implemented 290.033-.038,
F.S. History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84
Formerly 98-14.02, Amended 5-4-86, Repromulgated 2-26-90
9B-14.003 Funding Availability.
(1) Current Funding. The 1980 Legislature established in the
state treasury a separate fund now known as the "Community
. '
Development Corporation Support and Assistance Trust Fund". The
8
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fund will be comprised of state appropriations, any contributions
or grants from other public or private sources, and interest earned
from investment of the funds pursuant to Section 290.034, 'F.S.
(2) Subsequent Funding. Any subsequent appropriation or
funds from other sources shall increase the amount provided in (1)
above or shall be disbursed according to appropriate rule or
statute.
(3) SUbmission of Applications.
(a) Applications for loan funds may be submitted at any time
during the year. Applications will be funded in the order of
receipt by the Department only when complete and approvable. Any
application determined to be incomplete will be returned to the
applicant within 30 calendar days with written notice of areas of
incompleteness or deficiencies. The date to be utilized for
determination of receipt of any rejected applications will be the
date that they are resubmitted to the Department in a complete and
approvable form.
(b) In the case of simultaneous sUbmission of complete and
approvable applications for an aggregate loan amount greater than
the amount of funds available, the distribution of funds will be
determined by scoring and ranking applications with the highest
ranking being funded first and all others funded in descending
order until the funds are depleted. The procedure for scoring is
in Rule 9B-14.022, F.A.C.
(c) Applications for grant funds will be as established in
Rules 9B-14.006 and 9B-14.007, F.A.C.
9
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'( ,\ 1 I I \,' , I l!, t I.! \ w' ... ',I , \ I' I'
Specific Authority 290.038, F.S., Law Implemented 290.034, F.S.
Chapter 82-215, Laws of Florida. History - New 12-31-80, Amended
10-5-82, 1~-20-83, 6-4-84, 12-30-84, 5-5-85, Formerly 9B-14.03,
Amended 5-4-86, 2-26-90, 12-19-90. Repromulgated
.
9B-14.004 Eligible Service Areas, Grants and Loans. Eligible
service Areas for grants and loans are areas which meet the
criteria established in section 290.035(2) (a),(b),(c),(d) and (e),
F.S. It is incumbent upon the applicant to provide documentation
verifying that these criteria are met and applicant shall include a
narrative description and a map clearly identifying the Service
Area.
Specific Authority 290.038, F.S. Law Implemented 290.035, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
5-5-85, Formerly 9B-14.04, Repromulgated 2-26~90, 12-19-90,
Amended
.
9B-14.005
Eligible Applicants, Grants and Loans.
Eligible applicants for grants and loans must be COCs, as
defined above, which meet the following criteria:
(1) The COC must have an eligible Service Area as defined in
Rule 9B-14.004, F.A.C.
(2) Its membership must be open to all Service Area residents
18 years of age or older with no restrictions including membership
fees or dues. This must be documented in the COC's Articles of
Incorporation and/or By-Laws.
I
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10
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(3) A majority of the CDC's board members must be elected by
those members of the corporation who are Service Area residents.
At least one board member must be appointed by the Governor. This
must be documented in the CDC's Articles of Incorporation and/or
By-Laws.
(4) Elections and membership availability must be adequately
publicized in a locally circulated newspaper and other chosen means
of media or public advertisements within the Service Area. Ample
opportunity must be provided for full participation for all Service
Area residents.
(5) The CDC must be determined by the Secretary of the
Department, or the designee, to be in good standing. A CDC may not
apply for any CDCSAP grant or loan funds while not in good
standing. Good standing shall consist of submission of all report
documents as prescribed by past and present CDCSAP contracts or
legally binding agreements, and submission and resolution of all
required audits and loan agreements to include payment of funds due
the Department as a result of audit findings or as prescribed by a
loan agreement in full or the existence of an executed repayment
agreement with the Department, whereby the CDC is in compliance
with the terms set forth in the repayment agreement. The repayment
agreement must be duly executed by both parties prior to a CDC
being declared in good standing. No portion of any funds due to
the Department shall be paid from funds received through the
COCSAP.
(6) In addition to the above criteria, Planning Grant
applicants must have been created no more than five years prior to
11
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the application deadline date and may not have previously received
an Administrative Grant.
Specific Authority 290.038, F.S. Law Implemented 290.035, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
12-19-90. Formerly 9B-14.05, Amended 5-4-86, Repromulgated
2-26-90, Amended 12-19-90, .
9B-14.006 Application Format, Grants. An application for a grant
shall include the following information, and shall utilize and
follow the grant application guide format and instructions:
(1) Documentation sufficient for the Department to verify
that the applicant meets the criteria provided in Section 290.035,
F.S., including clear evidence that elections have been publicized
and held annually. For CDC's who did not receive CDCSAP funding in
the prior year, the application will include a statement that, if
selected for funding and prior to release of funds, the CDC will
accept an appointment to the board by the Governor of at least one
board member. The applicant may submit names and resumes of
recommended appointments. For CDC's receiving CDCSAP funding in
the prior year, evidence of the gubernatorial appointment must be
contained in the application. If the appointment has not been made
by the Governor at the time of the application, proof must be
included in the application which documents that an appointment has
been solicited.
(2) In addition to (1) above, an application for a grant
shall include the items enumerated in section 290.036(2), F.S., and
12
a narrative description of the requirements established in Section
290. 036 (5) (c) , (d) and (e), F. S .
(3) An applicant for a grant shall submit to the Department
an Administrative Budget which indicates sound and prudent plans
for the expenditure of grant funds. The Department shall require
amendment of the budget where unnecessary or exorbitant
expenditures are identified.
(4) All docu~entation submitted in support of applications
must be in detail sufficient for the Department to analyze its
accuracy and validity; and submitted in a format determined by the
Department and conforming to all instructions in the Grant
Application Guide. A Grant Application Guide may be obtained by
writing the Department of Community Affairs, Division of Housing
and community Development, 2740 centerview orive, Tallahassee,
Florida 32399-2100.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
Formerly 9B-14.06, Amended 5-4-86, 2-26-90,
9B-14.007 Application Process, Grants.
(l) The Department will consider applications for funding of
grants in one cycle during the state Fiscal year. All eligible
CDCs as defined in Rule 9B-14.005, F.A.C., of this chapter will
compete during this application cycle. Anyone interested in being
included on the mailing list to receive advance notice of the
application deadlines may write the Department of Community
, '
Affairs, Division of 'Housing and community Development, 2740
13
r,';'''. '.!.
14
Centerview Drive, Tallahassee, Florida 32399-2100. The Department
will notify each entity on the mailing list of the application
deadline and will publish such notice in the Florida Administrative
Weekly. Any application not received by 5:00 p.m~ on the final
application date will not be considered for funding. No additional
information will be accepted for review after the final application
deadline for any applicant.
(2) Threshold Requirements. All applications submitted to
the Department will be reviewed for adequacy before they are ,
reviewed for eligibility, scored and ranked. The following areas
will be included:
(a) Application Completeness. Applications will be screened
for completeness, and applications which do not contain all items
specified in Rule 9B-14.006., F.A.C., will not be scored and rated
for funding.
(b) Past Performance. The Department will review the
applicant's prior performance in carrying out contractual
obligations with COCSAP funds to determine that:
1. There are no unresolved audit findings. Resolution of
audit findings shall include the repayment of any funds owed to the
Department or the execution of a Repayment Agreement as defined in
Rule 9B-14.001(16), F.A.C.
2. There is no evidence of fraudulent use of COCSAP funds.
,
, ~
3. All previously funded contracts have been closed out in
compliance with contractual requirements, including the
satisfactory resolution of any monitoring findings.
4. The CDC is declared by the Secretary of the Department, or
the designee, as being in good standing.
S. If the applicant has failed to meet any of the above
requirements, then the application will not be considered for
funding.
(c) The Department reserves the right to review an
applicant's audit of funds other than CDCSAP. Applicants with
serious unresolved audit findings may be elimil1ated from
eligibi1ity to receive funding.
(d) New Applicants. Applicants which have not previously
received CDCSAP funds will not be evaluated on past performance.
(3) No grant will be awarded for funds exceeding $100,000.00.
All grants will terminate on the same date regardless of the date
of conunencement.
(4) Notice of intended grant award or denial of grant award
will be provided to each applicant by certified mail with a
statement that applicants who wish to contest the decision ~ust
request review of the decision in writing and such request nust be
filed with the agency clerk within 14 calendar days of receipt of
the notice. The request for review is deemed filed when it is
received by the agency clerk as designated in Rule 9B-14.009,
F.A.C. Failure to file a request for review in the time and manner
specified shall constitute a waiver of proceedings under Chapter
~20, F.S. The request for review must specify in detail the basis
for review. Unless the request for review clearly describes
disputed issues of material fact, an informal proceeding will be
conducted by the Department's appeal hearing officer or the
15
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designee, pursuant to Section 120.57(2), F.S., and applicable
agency rules. To the extent that the Department accepts the facts
presented in the application but denies funding based on
interpretation of the law or rules, an informal proceeding is
appropriate. If the Department determines from the request for
review that issues of material fact are in dispute, a formal
proceeding will be conducted pursuant to Section 120.57(1), F.S.
(5) The Department shall, following the determination of CDCs
to be funded, enter into a contractual agreement between the COC
and the Department. This agreement shall be signed by the CDC and
returned to the Department on or before 30 days after receipt of
the agreement by the CDC. Failure to comply within said 30 days
shall result in withdrawal of funding by the Department. At such
time as funds are withdrawn, the funds will be awarded to the next
applicant in rank order in accordance with 9B-14.009(7), F.A.C.
(6) If a CDC has outstanding administrative, fiscal or audit
matters which delay funding of an executed agreement, it shall be
incumbent upon the CDC to resolve all such issues to the
satisfaction of the Department within ninety days of the beginning
of the contract period. Failure of the COC to satisfactorily
resolve said issues shall result in the withdrawal of funding by
the Department and the award of such funding to the next applicant
in rank order.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History - New 12-31-80, Amended 3-25-81, 10-5-82, 12-20-83,
6-4-84, 9-20-84, 12-30-84, 5-5-85, Formerly 9B-14.07, Amended
5-4-86, 2-26-90, 12-19-90, .
16
9B-14.0081 Distress Formula Threshold criteria
(1) The degree of distress of the geographical area served by
a CDC will be compared to the degree of distress of the Service
Areas of all other applicants. A ranked list of eligible COCs will
be devised from data provided by the "Community Conservation Index"
which consists of 1980 census data, to the extent appropriate, for
the following variables:
(a) The percentage of housing units in the area built more
than 30 years ago;
(b) The percentage of year-round housing units in the area
that are vacant rental housing units;
(c) The percentage of housing units in the area that lack
some or all plumbing facilities;
Cd) The per capita income in the area;
(e) The percentage change in per capita income in the area
from the prior census year to the current census year;
(f) The percentage of the population in the area that is over
the age of 65 and under the age of 18;
(9) The unemployment rate in the area;
(h) The percentage of the population in the area with incomes
below the poverty level;
(i) The per capita taxable value of property in the area;
(j) The percentage change in per capita taxable value of
property in the area from 1977 to the current census year; and
(k) The per capita local taxes levied in the area.
17
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(2) The community Conservation Index contains data for these
factors for all incorporated areas of the state, all census
designated places, and census tracts in cities over 50,000 in
population which shall be the units of analysis. The units of
analysis are ranked by each independent variable. An average of
the rankinqs for the 11 variables is produced for each unit of
analysis which is called the distress rating. The units were
ranked according to this distress rating to provide the Community
Conservation Index. The units are ranked from the most distressed
to the least distressed with the unit possessing the lowest rating
assigned the rank of one.
(3) Method of Calculation. Data obtained from the Community
Conservation Index will be aggregated for all census tracts
contained, whether in whole or in part, within the CDC's Service
Area boundaries3 Each COC will be assigned a numerical score based
on the average of the distress ratings for each census tract which
composes a part of the COC Service Area. The qualifying CDCs will
be listed in rank order according to this average from the lowest,
indicating the most distressed areas, to the highest.
(4) Threshold Criterion. A cut off criterion will be
established by the Department and applied as a threshold measure in
order to restrict the funding competition to agencies serving the
most distressed communities when the number of COCs for
consideration for funding exceeds more than twice the maximum
number of COCs to be funded.
specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History-New 5-5-85, Formerly 9B-14.081, Amended 5-4-86,
18
2-26-90,
98-14.009 scoring Criteria, Administrative and Planning Grants.
(1) The Department will determine eligibility of a grant
application based upon the requirements established in
Section 290.035 and Section 290.036, F.S., and the threshold
requirements described in Rule 9B-14.007(3) , F.A.C. Once
eligibility has been determined, the application will be ranked and
scored on:
(a) Demonstrable capacity of the CDC to carry out the
proposal.
(b) The completeness, feasibility, and impact pertaining to
the goals, objectives, and timeframes outlined in the Three Year
Plan, as defined in Rule 9B-14.001(13), F.A.C.
(c) Demonstrated ability to leverage administrative funds
from other sources.
(d) Demonstrated capacity to perform in the area of economic
development by successful participation in the CDCSAP loan program
or participation in a successful business venture and by generating
venture incorneto enhance the ability of the CDC to become self-
sufficient.
(2) Demonstrable capacity will be measured by the Department
based upon the applicants' documentation of the following:
(a) Executive Director Experience. Executive Director has
management e~perience or an academic degree as set forth below. A
position described or titled as Interim, Acting, or Temporary
19
I
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" ,
Executive Director will not be considered eligible for scoring.
Ten (10) points are awarded for anyone of the following:
1. Bachelors Degree from an accredited college or
university plus 3 years of experience,
2.
Masters or Doctorate Degree from an accredited college
or university plus 2 years of experience,
3. Seven years of on-the-job management experience.
(b) staff Experience. Used herein, professional staff means
a person employed by the CDC in a permanent job as defined in 9B-
14.001(4), F.A.C.
1. Five Points. Professional staff has shown evidence of
formal training or on-the-job experience in public administration
or social services.
2. Ten Points. Professional staff has experience leading to
the position or, a bachelors degree from an accredited university
or college with a major in business administration, management,
finance, banking, accounting or economics or a law degree.
Experience means a minimum of three years on-the-job experience at
the professional level in a Community Development Corporation, a
Local Development Corporation, as a commercial loan officer, or in
a for-profit business or in a government position which involves
economic development or business development activities.
Experience which consists of clerical or manual labor shall not be
considered as professional experience.
3. Fifteen Points. Professional staff has a bachelors degree
from an accredited college or university or experience leading to
.
the position, 'as defined above, and includes at least one
20
.
individual with 3 or more years of professional accounting
experience, economic development, industrial development, or
business development experience. All areas of expertise must have
involved activities directly resulting in the operation, expansion
or creation of revenue generating ventures.
4. Twenty Points. Professional staff consists of no less
than two individuals, each having a bachelors degree from an
accredited college or university or three years professional
experience. One individual must have at least 3 years experience
as a professional accountant in a CDC or a for-profit business. A
contract with a professional accounting firm for accounting
services to be provided to the CDC during the eligible time period
can be substituted for the requirement for a professional
accountant on staff. The contract for accounting services must be
included in the application and must be from a qualified certified
public accounting firm. Contracts to perform audits of the CDC
will not be considered for scoring purposes. The other individual
must have at least 3 years of economic development, industrial
development or business development experience. The latter three
areas of expertise must have involved activities directly resulting
in the operation, expansion or creation of revenue generating
ventures.
(c) Board of Directors. Points will be awarded for anyone
of the following:
1. Ten points. Board of Directors meets in regularly
scheduled meeti~gs and has demonstrated evidence of business
21
experience and commitment to the success of the CDC's activities
and includes at least five individuals each having at least one
year of experience as an officer of a commercial lending
institution, a manager of a private for-profit business, an
attorney, a professional accountant, an engineer, an architect or a
developer.
2. Twenty points. Board of Directors meets all of the
criteria in subparagraph 1., and has a minimum of five board
members each having at least one year of experience as an officer
of a commercial lending institution, manager or officer of a
private for-profit business, attorney, professional accountant,
engineer, architect or developer. At least three of the areas must
be represented; an individual may only be credited for one area of
expertise.
(3) Three Year Plan. A total of 20 points may be awarded
under this category. The Plan must clearly identify in narrative
and chart form what the CDC intends to do over the next three year
period, should the agency receive CDCSAP funding. This document
will be used to design scopes of services for those agencies which
receive CDCSAP funding beginning with the year for which the
application is being made. The Plan must include measurable
activities and tasks with specific timeframes for completion. The
Three Year Projection of Activities and Tasks Form is to be used to
augment the narrative description of the Three Year Plan. The Plan
and all components must be original documents created by the CDC
specifically for this application, and consist of a 1-20 page
narrative, accompanied by the appropriate number of Three Year
22
projection of Activities and Tasks Forms and must be organized as
follows :
(a) Introduction - A concise description of the process used
to conduct the community Wide Needs Assessment, a discussion of the
nature and extent of the Board's involvement in the process, and a
presentation of the highlights of the Three Year Economic
Development Plan.
(b) Community Wide Needs Assessment - An analysis and
evaluation of the social, economic and cultural characteristics of
the Service Area and a prioritization of the most critical needs of
the area. The assessment must be based on an analysis of u.s.
census data or comparable state and Federal Departments' officially
generated information. Topics to be addressed are:
1. Description of the Service Area - size, location, and
physical characteristics.
2. Service Area Profile - An identification of the
characteristics of the Service Area: population, economics,
business mix and climate, employment statistics.
3. Priority Listing of service Area Needs - This is an
analysis of the Description of the Service Area and Service Area
Profile discussions. This section shall identify and prioritize
the specific problems and needs of the Service Area. The narrative
and listing should relate directly to the Service Area Profile, and
will be the basis for determining the Activities and Tasks to be
undertaken over the next three years.
4. Outline of Venture and Development Activities - The
Description of the Service Area, Service Area Profile, and Priority
23
,
I
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Listing of Needs must indicate the types of activities and ventures
which the CDC will undertake to alleviate the specific conditions
within the Service Area, and create jobs. The types of Activities
may include:
Business Assistance/Technical Assistance
CDC Capacity Building
commercial Development
Hotel Development
Housing construction/Rehabilitation/Management
Housing Program Referral Assistance
Industrial Park Development
Manufacturing
other Economic Development Activities
Real Estate Development
Revolving Loan Fund Administration
Shopping Center Development/Management
Venture Administration
The specific activities will be determined by the Service Area's
priorities and will be the basis for the Three Year Projection of
Activities and Tasks. Each task undertaken will clearly relate to
the Service Area's Priority Needs. The discussion for each
activity must include:
a. A detailed description of the proposed Activity and an
identification of subcomponent Tasks.
b. A discussion of the feasibility of undertaking the
venture.
24
c. An estimate of the cost for complete capitalization of the
Activity, an identification of potential sources of funding, and an
identification of technical assistance and staff expertise
requirements which include strategies for securing same.
d. Discussion of the expected outcome of the proposed
Activity and Tasks. project over three years the benefits (jobs
created, income, equity produced, businesses created/preserved,
etc.) to the CDC Service Area which will be created by the proposed
venture.
5. strategy for Self-Sufficiency - A description of the
benefits of the proposed venture development activities which will
assist the CDC in moving toward the goal of self-sufficiency.
6. Three Year Projection of Activities and Tasks Form - The
Three Year Projection of Activities and Tasks Form is a tabulated
chart which outlines .what the CDC intends to do should it receive
CDCSAP funds for the applicable period. The Three Year Projection
of Activities and Tasks Form will be used to augment the narrative
discussion of the Three Year Plan, and to help determine the score
awarded to the Plan. Some activities and tasks may extend beyond
this three year period. In such cases the Three Year Projection of
Activities and Tasks Form must follow through to the completion of
the activity and related tasks.
7. scoring - Applicants whose Three Year Plans address each
Guide requirement shall be deemed complete and will be awarded
scores of either 10 or 20 points based on the thoroughness,
feasibility, and adequacy of their responses. Incomplete Plans
will receive a score 'of zero points.
25
'; "l.~ ' .-.' >t':
10 Points - A score of 10 points will be awarded for Three
Year Plans which address each Guide requirement in a manner that
supports existing data and reflects the needs of the Service Area
as demonstrated in the Community Wide Needs Assessment.
20 Points - A score of 20 points will be awarded for Three
Year Plans which meet the criteria for 10 points and present
comprehensive business development and partnership-building
strategies projected over a three year period beginning with the
-year for which application is being made. These plans must clearly
relate to the prioritized needs, demonstrate knowledge of Service
Area business conditions, project reasonable and feasible solutions
to those particular circumstances, and identify resources adequate
to contribute to self-sufficiency.
(4) Applicants who can clearly demonstrate the receipt of
administrative funds from sources other than CDCSAP funds will be
scored according to the cumulative amount of dollars received
within the two years preceding the application deadline date and
can include grants, donations or investment income. The use of
those funds must directly relate to the economic development
activities proposed in the CDCSAP application. The Department will
consider in-kind contributions which demonstrate verifiable cost
values within the applicable timeframe and which are contractually
committed. All documentation must be in the grant application.
To be eligible for scoring, documentation shall be either an
executed letter from an authorized representative of the funding
source, an executed contract with a budget and scope of services,
or a complete -audit. . Selected pages of any documents are not
26
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acceptable. Documentation shall clearly demonstrate the receipt of
funds within the eligible time period, and that the funds were for
administrative purposes. To be considered for scoring, the
relevant dollar amount and signatures must be highlighted or
circled in the document itself, with the page number shown on the
Administrative Funds Form. Any documentation which indicates a
contract, budget and scope of services inclusive of the two year
period, or any part thereof but extending to a future date beyond
the application deadline, shall be pro-rated over the eligible time
period unless documentation provided in the application indicates
otherwise. A maximum of 50 points will be awarded for $500,000 or
more in administrative funds at the rate of one point per $10,000
received.
(5) Any funds not documented as received prior to the
deadline will not be considered for scoring. Conditional or
contingent receipt of funds other than the condition that the CDC
receive CDCSAP Administrative Grant, or documentation subject to
prior or future conditions will not be considered for scoring.
(6) Applicants who can document at least a ten percent direct
financial participation in the acquisition, expansion or creation
of a revenue generating, job producing activity within the three
years preceding the application deadline date will be scored
according to the total funds committed to that activity through
donations, grants, loans or direct equity injection. Agencies
which serve as coordinators or administrators of projects and which
cannot demonstrate a direct financial participation will not be
considered eligible for scoring. In order to be awarded venture
27
leverage points, the CDC must certify that the venture activity is
fully operational and the applicant must document that the
resources necessary to complete the project are contractually
committed to it by the application deadline date. All commitments
must be documented, binding and included in whole in the grant
application. Selected pages of any documents are not acceptable.
To be eligible for scoring documentation shall be either an
executed letter of commitment from an authorized representative of
the funding source or an executed contract with a budget and scope
of services. Documentation shall clearly demonstrate the
commitment of funds to the venture within the eligible time period.
To be considered for scoring, the relevant dollar amounts and
signatures must be highlighted or circled in the document itself
with the page number shown on the Venture Funds Form. A separate
Venture Funds Form must be completed and tabbed for each venture.
A maximum of 60 points will be awarded for $1.8 million or more of
venture funds leveraged at the rate of one point per $30,000
leveraged.
(7) Enterprise Zone. Applicants which document that their
Service Area overlaps 100% of a state or Federal Enterprise Zone
shall receive 5 points. Applicants which document that their
Service Area partially overlaps a state or Federal Enterprise Zone
shall receive 3 points. Applicants which fail to document any
overlap of their Service Area with a state or Federal Enterprise
Zone shall receive zero points under this section.
(8) Use of Loan Program. Applicants which document that they
have received CDCSAP loan funds in the three years preceding the
28
application deadline date, and are current in the repayment of
those funds, shall receive points as follows:
(a) all 3 years 10 points
(b) 2 out of 3 years 6 points
(c) 1 out of 3 years 3 points
(d) none 0 points
(9) Administrative Grant History. Applicants shall .
rece~ve
up to 5 points at the rate of one point for each year during which
the applicant was in existence and did not receive a CDCSAP
Administrative Grant.
(10) The maximum number of points will be 200. Scores
awarded under each criteria will be summed and that sum shall
constitute the total score for that applicant. Scores for all
applicants will be ranked and eligible applicants will be funded as
set forth in subparagraph (12) below until funds available are
exhausted. An applicant for an Administrative Grant must score a
minimum of 100 points to be eligible for funding.
(11) In state fiscal year 1992-1993, a three year
administrative funding cycle will be established. In year one,
100% of the funds appropriated for administrative funding shall be
used for Administrative Grants as defined in Rule 9B-14.001(3),
F.A.C. In years two and three, 90% of each year's appropriation
for administrative funding shall be used for Administrative Grants,
and 10% shall be used for Planning Grants.
(a) A maximum of 18 Administrative Grants may be awarded in
any fiscal year pursuant to Section 290.036(3), F.S.
29
, \, \,,' \ " '\ ! I \ ' / J / J v' , I \, I "I, 1 .
.' ' > < " '":'.' ...:., ./:--,~. , ~ ".,
30
will award the Planning Grant to the applicant with the highest
total dollar amount of administrative funds received and documented
as required by Rule 9B-14.009(4), F.A.C.
Specific Authority 290.038, F.S. Law Implemented 290.036, F.S.
History-New 12-31-80, Amended 10-5-82, 12-20-83, 6-4-84, 5-5-85,
Formerly 9B-14.09, Amended 4-12-88, 2-26-90, 12-19-90,
.
9B-14.010 Eligible Projects, Loans. section 290.037(1),(a)-(c),
F.S., authorizes loans to be made to eligible applicants from the
CDCSAP loan fund for the purposes stated therein. Loans for
housing projects shall be limited to rehabilitation in which the
value of the repair or restoration of the project does not exceed
40% of the value of the project (excluding land) before repair.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-31-80, Amended 10-5-82, 12-20-83, 12-30-84,
5-5-85, Formerly 9B-14.10, Amended 5-4-86, 2-26-90, 12-19-90,
.
9B-14.011 Application Format, Loans. An application for a loan
shall include the following information:
(1) Documentation sufficient for the Department to verify
that the applicant is an eligible applicant as defined in Rule
9B-14.001(15), F.A.C., and that the threshold eligibility
requirements of Rule 9B-14.007(2) (b), F.A.C., are met. In lieu of
providing evidence of gubernatorial appointment of one board
. .
member, the applicant shall include a statement that, if selected
31
,""
';', "'T .~. . ':".:' .~.:,.,:~, " .-
for funding and prior to release of funds, the CDC will accept an
appointment to the board by the Governor of one board member.
(2) In addition to (1) above, an applicant for a loan shall
include the supporting documentation required in section
290.036(2), F.S., and certification of the inability to secure
conventional financing, of the creation of at least one job or the
rehabilitation of at least one housing unit for every $15,000
loaned, and of the overall net positive economic impact of the
project as required in section 290.037(5) (d),(e) and (f), F.S.
For any given state fiscal year, once the Department determines
that a CDC has met the threshold criteria as cited above, it will
be necessary to resubmit only those items which may have been
eliminated or revised since the time of verification of the
previous loan or grant application used in determining threshold
eligibility.
(3) In addition to (1) and (2) above, the applicant for a
loan shall demonstrate the ability to make and administer loans for
projects by:
(a) Having a minimum of five members of the board of
directors which satisfy the requirements of Rule 9B-14.009(2) (c)l,
F.A.C.; and
(b) Having a loan committee which consists of a minimum of 5
members, each having at least one year's experience as an officer
of a commercial lending institution, manager or officer of a
private for-profit business, attorney, or certified public
accountant. An individual may only be credited for one area of
.
32
33
.)'.1.<':'1." ..'
Specific Authority 290.038, F.S. Law Implemented 290.033, 290.035,
290.036, 290.037, F.S. History - New 12-31-80, Amended
10-5-82, 12-20-83, 5-5-85, Formerly 9B-14.11, Amended 2-26-90,
.
9B-14.018 Types of Loan Programs and Participation Requirements.
(1) Eligible applicants may participate in two loan programs,
the direct loan program and the guaranty loan program:
(a) In the direct loan program, the eligible applicant may
receive a loan to provide funds for a Service Area business. These
direct loans must be made in conjunction with funds from other
sources, including but not limited to, financial participation by a
commercial lending institution as described in Rule 9B-14.019(3),
F.A.C.
(b) In the guaranty loan program, the CDC may make a loan to
a Service Area business provided there is an agreement by a
commercial lending institution to purchase the resultant note at
its face value without recourse except to the guaranty fund. The
eligible applicant will deposit up to 90 percent of the proceeds of
sale of the note in an interest-bearing guaranty account which
shall be utilized to guarantee the repayment of the loan purchased
by the lending institution. In case of default on payment of the
promissory note, the lending institution may proceed against the
guaranty account and against the maker of the note utilizing any
remedies available under law. However, once the lending
institution obtains full payment on the promissory note, including
34
, , J t ' " " \ _ \'. ' " I" r . f , \
any legitimate costs provided for in the note, the note shall be
assigned to the CDC from which it purchased the promissory note.
(2) Eligible applicants for direct and guaranty loans shall
prepare and submit to the Department a loan fund procedure manual
acceptable to the Department which includes at a minimum the
following:
(a) The types of loans that will be made:
(b) criteria for participation and required collateral:
(c) Loan application forms:
(d)' Underwriting criteria to be used;
(e) Sample closing documents: and
(f) The form and format of presentations to the loan
committee of the CDC.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Amended 5-5-85, Formerly 9B-14.18, Amended
5-4-86, Repromulgated 2-26-90, 12-19-90, Amended
9B-14.019 Direct Loan Program Participation Requirements.
An eligible applicant, in order to qualify for a loan for the
purpose of directly loaning said funds to a Service Area business
shall comply with and submit documentation demonstrating compliance
with Rule 9B-14.018(1) (a) and (2), F.A.C., and the following:
(1) There shall be binding commitments of non-state funds or
existing unencumbered assets for the Service Area business in a
ratio of 2 non-state dollars for every dollar of CDCSAP funds.
Non-state dollars for this purpose means all funds other than
35
, .
.. \ _ I . f"'," ~ ,\ '/~ / /\ \ / \ /' Af ..,-' I ,f .' . \' . . . '/."", . ~I -" I . \ '." ~ \ ~.,. .. ." I 1 .'
::\;:,~,' ::'..,:." . <..::', '~.:, ,; . :: :",,:' .: . ". ~' ~ ',' ", ~:-'... ~ :<,': ,: r".--;' :,.:... t} /', ,- .: :':}',' ':.1. ,~ ~.\ :,~.~ "~,;' , ~ :. -). .' :'/ .,.,. ,~, I . ... . \ '.: ~ .'~. '..~..> :.'" \..: ~.'.'. <<.).; :. .'\ '/ '..' '. . '.', .~ '. -,:. >' .:
t ~ .' , ....,' \ \ II .... . ,,: '-. ' ..,.: . ." . ~ I.... . . ", / J ~ '\ J
\ I. .. "I I' I , . . \.. , '. .,' I.: . . _. ". \._ '. ~. _ ,,\ .:. ....-, \ " . \. ,,\ .' ./ . ~ ,~. .
CDCSAP, which are adequate for capitalizing the business in
conjunction with CDCSAP funds;
(2) The committed funds shall be demonstrated to be adequate
for complete capitalization of the project:
(3) There shall be a loan by a commercial lending institution
to the service Area business in an amount at least equal to, and a
term of repayment not shorter than the term of, the CDCSAP loan;
and
(4) The CDC shall enter into an agreement with a commercial
lending institution which provides that the lending institution
shall, as an agent of the CDC, collect the payments from the
business and remit the entire principal portion no less frequently
than annually directly to the Department, and the interest to the
CDC at a frequency to be determined by the CDC and the institution.
specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Amended 5-5-85, Formerly 9B-14.19, Amended
5-4-86, 2-26-90, 12-19-90,
.
9B-14.020 Guaranty Loan Program Participation Requirements.
(1) An eligible applicant, in order to qualify for a loan for
the purpose of guarantying a loan made by the CDC and selling the
note to a commercial lending institution shall comply with and
submit documentation demonstrating compliance with Rule 9B-
14 .018 (1) (b) and (2), F. A. C.
(2) The CDC shall submit an executed agreement with a
commercial lending institution that includes at a minimum:
36
. . '
. l .,'. " ~ I ,\1,. :' ' _ . '" ~ . . ., ' '." '. ,- '. I . . :' , ". 'I' ,I . .. ", ". ,I . ,... :'
I . I \ I . ''. > I . . . "..1 . ,\ '. 't . . '. .,' . '." . . . '. .' .. . ..' \ \ .71
:.. I ;... ..... I " \ .' __ . ...:--... . ' , . '" eo'" . .' ,', .. I .,.... I.'" \'. . .'
. '.' \ I . ." \ ~ \ I . \/ t .;.. . . \. '. '"0.' . /. . I " . '.:' . '. . I ..... . ~ /.'.. / ' . . I' '
. .", ~~.. .<:...", ':'.. .;.....' .~:..' d.:I,..../~\>...,' ./../~./.:....,. "::&'.' ....<' '. . :..:.-.~ ':.:.:.'I....,>.,..:....~:\: ..:.:.;. {,;"i'.:':\ ":..-:':<::
(a) An agreement to purchase the particular note made to the
CDC;
(b) An agreement to provide technical assistance to the CDC
in reviewing underwriting, loan collections and servicing, in the
closing of loans made by the cne, including but not limited to the
perfection of security interests in collateral for those loans;
(c) An agreement by the CDC to place on deposit in the
lending institution an amount to be no more than 90 percent of the
face value of the note purchased. Those funds shall be held in an
interest-bearing guaranty account with the commercial lending
institution. The commercial lending institution shall charge no
more than a four point spread between the interest rate of the loan
made to the borrower and the interest earned on the guaranty
account.
(d) An agreement by the lending institution to reduce
annually the amount of funds held in the guaranty account to an
amount no greater than 90% of the outstanding principal owed by the
borrower, and to remit that reduction of the guaranty account to
the DepartEent unless otherwise provided for in the loan agreement
with the Department. The interest from the guaranty account shall
be paid to the CDC at intervals to be agreed upon by the lending
institution and the CDC; and
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Amended 5-5-85, Formerly
9B-14.20, Amended 5-4-86, Repromulgated 2-26-90, 12-19-90, Amended
.
!
I'
I
37
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..,~..~~
I", , .-.';.
9B-14.021 Terms and Conditions of Loans to part,icipating
CDCs.
(1) Direct Loan Program. No direct loan shall exceed
$250,000 and the term of repayment shall be no longer than the
term of the loan provided by the commercial lending institution, up
to a maximum of 15 years.
(2) Guaranty Loan Program. No guaranty loan shall exceed
$75,000 and the term of repayment shall not exceed the term of the
CDC's loan to the business, up to a EaxiEum of 15 years.
(3) In state fiscal years 1991-1992 and 1992-1993, no CDC
shall receive in loans more than 40% of the total annual
appropriation for loans for that fiscal year. In state fiscal year
1993-1994, no CDC shall receive in loans more that 35% of the total
annual appropriation for loans during the first three quarters of
that fiscal year. In subsequent years, no CDC shall receive in
loans more than 30% of the total annual appropriation for loans
during the first three quarters of the fiscal year. In state
fiscal year 1993-1994 and thereafter, if all loan funds have not
been obligated by the end of the third quarter of the state fiscal
year, then a CDC may receive in loans up to 40% of the total annual
appropriation for loans for that fiscal year.
(4) Security/Collateral for Loans:
(a) Loan Underwriting Analysis. Loan underwriting analysis
shall be conducted by the CDC and participating bank loan
committees. A detailed memorandum of the loan underwriting
analysis of the CDC loan committee shall be submitted to the
. '
Department for approval. The "underwriting analy~is shall include
38
, I \ \, " ,\ ' l , . \ {J I, ~ . " I \. I I " " { ,I \ , I .J , /
consideration of the borrower's cashflow, credit worthiness, and
consideration of collateral and personal guarantees.
(b) The loan must be adequately secured to the satisfaction
of the Department, taking into account the collateral, lien
priority, guarantees, cash flow of the project and credit
worthiness of the borrower. At a minimum, there must be
unencumbered collateral equal to the principal amount of the loan.
(c) Personal Guarantees. The Department requires that, in
addition to pledging adequate collateral, all principals of a
corporation or partnership personally guarantee repayment of the
loan in full. This shall be evidenced by personal payment
guarantees which shall be contained in the loan application.
(5) Once the Department has certified that a CDC is eligible
under Rule 9B-14.005, F.A.C., the CDC may submit applications for
guaranty or direct loans. Subsequent applications for guaranty and
direct loans may refer to previously established applicant
eligibility certification, provided that nothing has occurred which
would render that eligibility invalid. Such a reference should
include a certification of current eligibility in the form of a
board resolution.
(6) Where requested by a CDC with an outstanding CDCSAP loan
agreement or agreements, the Department may consider requests for
term extensions: renegotiations; consolidations of several loans;
or default workouts. criteria to be considered shall include, but
not be limited to, the following: CDC's level of loan activity in
the CDCSAP loan program, extent of losses incurred in the operation
of the loan"portfolio, experience level of staff administering the
39
r
::-:, ". ... ....., , '.' ,::' ..,.' .',..',.. :' :'::':~~'<<: <>." .~:: "\::',' ..... ..:'" ..', ....< H'. '.. .. · ,'..-' ~'.' , ~, ,/,:<, ,.,. .'.
CDCSAP loan fund, commercial lending institution participation on
loan committee and board of directors, satisfactory performance
under the CDCSAP grant, other loan activity with the CDC, the type
and liquidity of security offered and payment history of CDCSAP
loan portfolio. The Department may utilize such other criteria as
it deems appropriate in considering these requests on acase-by-
case basis such as, but not limited to, terms requested, rationale
for request, and economic circumstances that may affect the CDCSAP
fund. Where amendments to the current loan agreement are approved,
the Department shall negotiate with the CDC a level of annualized
repayment which is satisfactory to the Department.
(a) Term Extension/Renegotiation. In the case of a request
for a term extension and/or a modification of the annual repayment
amount, such request may be granted by the Department where the CDC
has satisfactorily documented that the request is necessary to
permit the borrower to satisfy its obligation under the promissory
note and to prevent the loss of jobs. The CDC must provide
evidence of the borrower's repayment ability based upon the
extension request. A term extension to adjust the repayment date
within the same fiscal year, solely to permit the maturity date of
a guaranty account to coincide with or immediately precede the
repayment date for the loan from the CDC to the Department, shall
be granted, provided that the total amount of the annual repayment
to the Department within that fiscal year is not reduced. An
extension cannot exceed the 15 year maximum term as defined in
section 290.037(6), Fla. stat. (1989).
40
(b) Consolidation. A consolidation of several loan
agreements into one loan agreement for the sole purpose of having
one annual repayment shall be approved by the Department when the
CDC has satisfactorily demonstrated that the request is cost
effective and will not reduce the amount of the annual payments to
the Department.
(0) Default Workouts.
1. In the event the loan made by the CDC to the borrower goes
into default, the CDC agrees that it will promptly assert all
available rights and remedies, including instituting legal action,
against the borrower and against any collateral or any security
interest held by it in such collateral. Upon the filing of a law
suit, the CDC shall advise the Department of the forum in which the
complaint or petition is filed, the style and the case number and
the type of action filed. The proceeds obtained from any actions
against the borrower, the collateral, the security interest, or the
guaranty account shall be promptly remitted to the Department when
received by the CDC, in an amount not to exceed the balance due
under the loan.
2. In the event of the sale or failure of the business of a
borrower, the Department shall absorb a portion of the loss, as
provided in section 290.037(7), F.S. "Other comparable creditors",
for purposes of this section, means all other creditors of the
borrower whose loan is secured by the same real or personal
property as the CDC's loan to the borrower. If there are no other
comparable creditors, then the entire loss on the remaining balance
owed by the CDC shall be absorbed by the Department. If a creditor
41
;': '..~ ' ......... - ;'. ...~.~::,. .1: .:" . '. :'. .,.... .;..; ,,::.; :,. \.' ............ :J.~:.> .' ..>:: .,',.' >.~ . ;~' .':.u~.
P" '.
purchases the real or personal property at a judicial or
foreclosure sale, then the fair market value of said property, less
the price bid at sale, shall be included in the amount received by
that creditor on its loan. The proportion of loss to be absorbed
by the Department shall be that fraction which is equal to the sum
of the losses incurred by all secured creditors of the borrower
divided by the sum of the original principal amount of all such
secured loans of the borrower, regardless of the priority of the
liens.
Specific Authority 290.038, P.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Formerly 9B-14.21, Amended 5-4-86,
2-26-90, 12-19-90, .
9B-14.022 Ranking of Simultaneous Loan Applications. When those
conditions occur as described in Rule 9B-14.003(3) (b) F.A.C.,
scoring of the applications to determine funding priority shall be
based on evidence documenting compliance with the following
criteria. The Department reserves the right to reject inadequate
documentation and it will inform the Applicant in writing the
reasons therefor.
(1) Ratio of Non-State Funds. The ratio of non-state funds
shall be the ratio of total non-state funding to the loan amount
requested. The highest ratio shall be assigned a total of 100
point~ and the lowest a score of o. All other applications will be
assigned a score based on their relative position between these two
points.
)
42
, , I 'I' I I . I' J .1 ." , ", I I'.. 'I,,'. '1 .. .
(2) Number of Permanent Jobs. The Applicant shall project
the number of new permanent jobs resulting from the project~ The
application with the highest number of new permanent jobs created
shall be assigned a score of 100 and the lowest, a score of o. All
other applications shall be assigned a score based on their
relative positions between these two points.
(3) Efficiency Evaluation. The number of new permanent jobs
projected shall be divided by funds requested under Rule 9B-14.010,
F.A.C., in order to project the ratio of jobs generated to funds
requested. The resulting ratio shall be the raw score. The
highest score shall be assigned a value of 100 and the lowest a
value of o. All other applications shall be assigned a score based
on their relative position between these two points.
(4) For each application, the three scores determined above
shall be averaged. The application shall be ranked and funded
based upon those averaged scores and availability of funds.
, '.
Specific Authority 290.038, F.S. Law Implemented 290.037, F.S.
History - New 12-30-84, Formerly 9B-14.22, Repromulgated
2-26-90, 12-19-90, Amended
J~
.
,
;.::
"
9B-14.023 Contracts for Grants and Loans.
Once the Department has selected a grant or loan application
for funding, the Department and the CDC shall enter into a contract
which shall include, but not be limited to~ the following:
(1) Specified amount of grant or loan funds to be provided by
~
the Department;
(2) Schedule of payments by the Department;.
i .
,
,
43
I
{
1
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(3) Standard assurances that the Act, these rules and
other applicable laws and regulations will be complied with by
the ene, including the requirement allowing the Governor to
appoint at least one board member;
(4) Budget for'planned expenditure of the funds by the CDC;
(5) Reporting requirements;
(6) Specific monitoring and technical assistance
responsibilities of the Department;
(7) A loan fund reimbursement schedule, if applicable;
(8) The specific eligible activities to be funded, based
upon the approved application;
(9) Sample promissory notes and security instruments to be
utilized in a proposed loan transaction;
(10) Penalty for non-compliance with terms of contract;
(11) Conditions for termination of the contract
for noncompliance; and
(12) Other conditions appropriate to sound contract and
public fiscal management principles and practices.'
Specific Authority 290.038, F.S. Law Implemented 290.038, P.S.
History -New 12-30-84, Formerly 9B-14.23, Repromulgated
2-26-90, 12-19-90,
44
.
9B-14.024 Rights Reserved by the Department. The Department
reserves the right to:
(1) Use information other than that contained in the
application to make the determination of eligibility for funding,
. , ,
so long as that information is made available to.the applicant;
(2) Examine any records of the applicant or recipient CDC, as
well as the financial records of any enterprise or business funded
by the CDC, and establish monitoring and reporting procedures or
condition of the contract;
(3) Waive, for good cause, any requirement of these rules
which is not mandated by the Act, with the exception of deadlines.
Specific Authority 290.038, F.S. Law Implemented 290.038, F.S.
History - New 12-30-84, Formerly 9B-14..24, Repromulgated
2-26-90, 12-19-91, Amended .
9B-14.025 Interagency Cooperation.
CDCs, or groups considering establishment of CDCs, are
encouraged to utilize, in addition to the technical assistance
resources of the Department, the resources of a staff of local
government economic and community development departments, other
existing CDCs and other public or private resources. Nothing in
these regulations shall preclude inter-CDC activities such as joint
ventures and joint applications for projects in a Service Area.
Specific Authority 290.038, F.S. Law Implemented 290.038, F.S.
History - New 12-30-84, Formerly 9B-14.25, Repromulgated
2-26-90, 12-19-90, Amended
9B-14.026 Deadlines Construed.
Throughout these rules, where deadlines or time frames have
been established, hand delivered or postal receipt by 5:00 p.m. of
the designated date shall be considered compliance.
45
,Yo"' .:. .,'~'1h,..: ~..:;"';.~..-;t;T.~(,:'q).";,,:,:.,,~~;,...,,.. ~).,;....t'...~'~~l\::; t.,.~ , . ,~'J'.l.... ',' ...." I ,I".; ,:,..' ~.~.,.. t~i't.i: ?~..'~ ",;.,;.
NAME OF PERSON ORIGINATING PROPOSED RULE: Rosa Morgan,
Administrator, Economic Assistance section.
NAME OF SUPERVISOR OF PERSON WHO APPROVED THE PROPOSED RULE:
Pat Pepper, Director, Division of Housing and Community
Development.
DATE PROPOSED RULE APPROVED:
46
J!'~",~,""A>',,".<l'- p~:--~?:~;.,,:".::,.t"',"..~\:1"'~' ~''',
..
ATTACllliENT 1
Effective February 1992
ADMINISTRATIVE AND PLANNING GRANT
APPLICATION GUIDE
COMMUNITY DEVELOPMENT CORPORATION
SUPPORT AND ASSISTANCE PROGRAM
STATE OF FLORIDA
DEPARTMENT OF COMMUNITY AFFAIRS
DIVISION OF HOUSING AND COMMUNITY DEVELOPMENT
1
\
\
I
\
ADMINISTRATIVE AND PLANNING GRANT
APPLICATION GUIDE
COMMUNITY DEVELOPMENT CORPORATION
SUPPORT AND ASSISTANCE PROGRAM
INTRODUCTION
The purpose of this guide is to provide information,
guidance and instructions which will enable interested Community
Development Corporations (CDCs) to prepare applications for
submission to the Florida Department of community Affairs (DCA)
for grants under the Community Development Corporation Support
and Assistance Program (cDCSAP) authorized by Sections 290.0301-
290.0395, Florida statutes (lithe Act") .
The CDCSAP was created by the Florida Legislature for the
purpose of assisting Community Development Corporations in
undertaking projects, in concert with private enterprise, which
are designed to create and maintain a sound industrial hase, to
revitalize the health of established commercial areas, and to
preserve and rehabilitate existing residential neighborhoods.
Funds are appropriated annually and apportioned by the
Legislature between the loan and grant components of the program.
The Department of Community Affairs, which carries out the
provisions of the Act, has established two separate funding
cycles consisting of: an on-going loan application process and a
competitive process for awarding Administrative and Planning
grants. A separate application is available upon request for any
CDC interested in submitting proposals under the direct or
guaranty loan program.
This Application is a part of Chapter 9B-14, Floridq
Administrative Code ("the Rule"), and is the final authority on
eligibility, review processes, scoring criteria, awards, etc.
Applicants are encouraged to read and consult, in addition to
this Application, both the Act and the Rule prior to submitting
an application to the Department. The Act and Rule governing
this program are:
(A) Sections 290~0301-.0395. Florida statutes: Short title
- "Community Development Corporation Support and
Assistance Program".
(B) Departmen't Rule Chapter 9B-14 f Florida Administrative
Code: Florida Department of community Affairs, Rule
for the community Development Corporation Support and
Assistance Program.
2
Detailed instructions on what is required of a CDC in
submitting a grant application have been provided in this
Application. Where questions should arise, refer to the Act and
the Rule. Technical assistance is also available from the staff
of DCA's Community Development Corporation support and Assistance
Program office, telephone number (904) 488-3581.
1. Grant Application Procedutes
The Department will review all applications submitted by the
specified deadline date for completeness and eligibility. If
problems with completeness and eligibility do not exist, the
application will then be scored and ranked. Applications will be
scored based on the competitive scoring process defined in the
Department's Rule 9B-14.009, F.A.C.
2. Sub~ission Dates
All applications must be received at the Department of
Community Affairs by 5:00 P.M. on the deadline date provided in
an official notice by the Department printed in the Florida
Administrative Weekly. Two (2) copies of the application must be
submitted, including at least one (1) copy with original
signatures. No additional documentation may be submitted after
the deadline date.
To ensure an application is considered for funding,
applications must contain all of the necessary information and
required documentation. In order to allow the Department to
conduct an efficient review and analysis of the application, each
page shall be consecutively numbered with contents clearly
labeled and identified in a securely fastened package, ~ithin a
three ring binder or spiral bound. Do not submit an application
with pages which are stapled, clipped or looseA Applications
which do not meet this requirement will be rejected.
If the applications are hand delivered on the deadline date,
they must be delivered to the Rhyne Building; Koger Executive
Center; 2740 Centerview Drive; Tallahassee, Florida; Third Floor,
Room 3271 and stamped received by 5:00 P.M. If the applications
are mailed, they must be received by 5:00 P.M. at the Rhyne
Building; Roger Executive Center; 2740 centerview Drive;
Tallahassee, Florida 32399-2100. Applications should be
addressed to Administrator, Bureau of Economic and community
Assistance.
3. Rankinq, Award and Rejection
Scores awarded under each criteria will be added and the sum
shall constitute the total score for that applicant. The maximum
number of points will be 200. An applicant must score a minimum
of 100 points to be eligible for funding. Once scores have been
assigned, the applications will be ranked first, second, third,
etc., until all the applications are ranked in order of highest
score first, lowest score last. The applicants will be funded in
that order pursuant to Rule 9B-14.009(11), F.A.C.
3
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Awards will be made as soon as possible after review,
scoring and ranking of applications. Notification wi1l be made
in writing to successful applicants. .
Applications which do not meet All of the applicable
criteria identified in this Application will be determined
ineli9ibl~, and the applications rejected by ~he Department.
Rejection will be accompanied by written explanations of
application deficiencies.
r
4
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ADMINISTRATIVE AND PLANNING GRANT APPLICATION CHECKLIST
COMMUNITY DEVELOPMENT CORPORATION
SUPPORT AND ASSISTANCE PROGRAM
(eDe NAME)
Page #
1. Cover Letter
2. Proof of Service Area Eligibility Form
3. Application Submission Certification Form
4. Membership and Elections Certification Form
5. Documents Creating the CDC
a. Current Certificate of Good Standing
from Secretary of state
b. Articles of Incorporation
c. By-Laws
6. CDC Executive Director and Professional
staff Qualifications Form
7. Board of Directors Qualification Form/
Loan Committee
8. Three Year Plan
9. Three year Projection of Activities and
Tasks Form
10. Program Budget Form
11. Administrative Funds Form
12. Venture Funds Form
INSTRUCTIONS: Administrative Grant applications must contain items
1-12. Planning Grant applications must contain items 1-11. All
items must be included in the application and the page numbers
accurately stated on this form. This Grant Application Checklist is
provided for use in ensuring that all required materials are
enclosed. This checklist also serves as a table of contents and
must be included as page one of the application. All pages in the
application (inClUding attachments) must be numbered consecutively
beginning with this page and ending ~ith the last page of the
application. All references should be double checked for accuracy.
5
.~ . ,'. .. '., ." --.~ .,~ A
?ROOF QF SERV~CE AREA ~LIGIBILITY FORM
(cDC Name)
1. Describe the boundaries of the CDC (i.e., service Area).
Northern Boundary:
Eastern Boundary:
Southern Boundary:
Western Boundary:
.
2. ~ttached to this page are maps identifying the boundaries of
the Service Area and the boundaries of a state or Federal
Enterprise Zone (if applicable).
3. Attached to this page is evidence which supports that the
Service Area:
(a) is a slum or blighted area per section 163.340(7)
or (8), F..S.
(b) is a Community Development Block Grant Program
Area, as provided in Rule 9B-17.001(4), F.A.C.
(c) is on the list of 225 community Conservation
Areas.
(d) is a Neighborhood Housing Service Area.
(e) is an enterprise zone as defined in Section
290.004, F.S.
(f) contains an entire (100%) enterprise zone within
its boundaries.
(9) contains a portion of an enterprise zone within
its boundaries.
6
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4. Census Tracts included wholly within the Service Area:
5. Census Tracts included partially within the Service Area:
7
INSTRUCTIONS: Complete all entries and provide required
documentation as indicated.
" . '.'." ,
""",., /."V
APPLICATION SUBMISSION CERTIFICATION FORM
The Board of Directors of
certifies that the information
contained in this application is true and correct; has the
approval and support of the Board of Directors of said
corporation; that all contractual relationships between
this corporation and the Department have either Deen completed
or are not in default; that all terms of previous contracts have
been met and that there are no outstanding issues pertaining to
past contractual performance.
(Chair or President)
(Date)
ATTEST:
INSTRUCTIONS: This form Eust be executed by the Chair or
President of the community Development corporation, and attested
by the Secretary.
8
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~MB~~~IP ~D ~T~CTIONS CERTIFIC~TION FORM
Page # in application of relevant provision of Articles/By-LaWs
1. Membership is open to all service area
residents 18 years of age or older.
2. Elections were adequately publicized within
the service area pursuant to Rule 9B-14.
005(4), F.A.C.
5. Elections were held on
.
3. A majority of the board is elected by service
area residents.
4. Elections are held annually for at least a
third of the elected board members.
(Date)
6. One member of the board is appointed by the
Governor.
7. If funded, and prior to release of funds, the
CDC will accept one gubernatorial appointment
to the board of directors.
I, (President or Chair) of
, hereby certify
that the above information is correct. I acknowledge that any
falsification or misrepresentation of these claims shall be
grounds for immediate revocation of good standing of my Community
Development Corporation for further funding under the community
Development corporation support and Assistance Program.
(Chair or president)
(Date)
ATTEST:
(Secretary)
INSTRUCTIONS: This form must be executed by the Chair or
President of the COC and attested by the secretary. For items
1-6 indic~te accurately the page number in the application which
documents the necessary information. Complete item ~7 if
applicable.
9
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.:. '. '.
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DOCUMENTS CREATING THE CDC
Page ~
1. CUrrent Year certificate of Good Standing From
the Secretary of state.
2. Articles of Incorporation.
3. By-Laws.
~NSTRUCTto~~: The above materials must be included in the
application and the page numbers accurately stated on this form.
10
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~DC EXECUTIVE DIRECTOR AND PROFESSIONA~
STAEf QUALIFICATIONS FORM
(CDC NAME)
EMPLOYEE
NAME
POSITION
DATE OF CDC
EMPLOYMENT
RESUME
PAGE #
====~== ======~~==--===~-================~====================
INSfRUCTIONS: Complete this form and attach a current resume for
each employee. Resumes must indicate month and year of tenure
(beginning and ending employment dates) for each entry to be
considered for scoring. If a person is not currently on staff,
but has been hired by the CDC to perform professional
responsibilities, their resume and qualifications can be scored.
However, a letter from the CDC offering employment and a written
response from the individual accepting the employment must be
included in the application.
11
;.,;
BOARD OF DIRECTORS/LOAN COMMITTEE CUALIFICATION FORij
(eDC NAME)
NAME
POSITION ON
BOARD/LOAN
LOAN
COMMITTEE
MEMBER
RESUME
PAGE 1#
TERM
FIELD OF
EXPERTISE
=======~~======--= ~----~===========================================
INSTRUCT~ONS: complete this form and attach a current resume for each
individual. Resumes must indicate month and year of tenure (beginning
and ending employment date) for each entry. Identify the
Gubernatorial Appointee by placing an asterisk to the left of the
name.
12
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THREE YEAR PLAN
.
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INQTRUCTIONS: Refer to Rule 9B-14.009(3), F.A.C., for content
and outline requirements for the Three Year Plan.
13
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~E YEAR PROJEC1ION OF AeTIVI~IES AND TASKS FORM
CCDe NAME)
Activities and Tasks
Year 1
First Second Third Fourth
ACTIVITY Quarter Quarter Quarter Quarter
Task l.
Task 2
Task J
Task 4
Year 2
First Second Third Fourth
ACTIVITY Quarter Quarter Quarter Quarter
Task l.
Task 2
Task 3
Task 4
Year 3
First Second Third Fourth
ACTIVITY Quarter Quarter Quarter Quarter
Task 1
Task 2
Task 3
Task 4
14
'. .;. .,<
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INSTRUCTIONS
~HREE YEAR PROJECTION OF ACTIVITIES AND TASKS FORM
The Three Year Projection of Activities and Tasks Form is
designed to augment the narrative discussion of the Three Year
Plan which is described in Rule 9B-14.009(3). This Form will
also "be used to assist in the determination of the score awarded
for The Plan.
The Form will contain quarterly projections over the next
three years for each Activity and subcomponent Task whioh the
applicant will undertake should it receive CDCSAP funds. This
Form will be reviewed first for completeness; each activity and
task identified in the Three Year Plan must be on the Form.
Next, the form will be evaluated to determine the extent to which
it shows feasible projections over the three year period.
To complete the Form, refer to Rule 9B-14.009(3), F.A.C.
Use one form for each activity. Each Activity and subcomponent
Task discussed in the Three Year Plan must be entered on the form
and projected over a three year period, or to completion. For
each Activity and Task, show timelines which identify the
proposed start and completion of the entry. Should an Activity
or Task go beyond the three year term, the form should so
indicate.
15
'- . .".' > . . '. :~,.' '.." .. '1'.' " .
PROGRAM BUDGET
(CDC NAME)
Administrative Expenses
CDcSAP
other
TOTAL
I. PERSONNEL (Salary and all fringe benefits)
1.
2.
3.
4.
Other Personnel Cost-
Explain
"-
....
Personnel Subtotal
-
II. PROFESSIONAL CONTRACTS
Accountant
Legal Services
Consultant
AUditor
Other-Explain
Contracts Subtotal
- --
-
III. OTHER DIRECT COSTS
Travel-In state
Travel-Out of state
~ent and utilities
Telephone/Postage/
SuP?lies
EquiDment Rental.Maint
Property/Equipment
Purchase
Publication/Printing
other-Explain
other-Explain
Other Direct Cost
Subtotal
-
--
--"'-
-
TOTAL ADMINISTRATIVE BUDGET
- -
'~:,.' ::....~ -"! ;, "", :;} ~-'~': :\.1. .H.~,:i'*":' ,*<,~. P,'.. .':'
INSTRUCTIONS
PROGRAM BUDGET FORM
Applicants should enumerate all items anticipated within the
upcoming contract year for administrative purposes. The attached
form is to be used for the budget. At a minimum, the budget must
include the following:
I. Personuel
1. Salaries - Provide a breakout of the salaries of each
staff member participating in the project. Their total salaries
should be represented or an explanation provided as to the
proportion of the salary budgeted. Indicate for part-time staff
the average number of hours worked on a weekly or monthly basis.
2. Fringe Benefits - List all fringe benefits which will be
incurred for such items as retirement, health and life insurance,
workers compensation, and unemployment insurance.
,
,
1
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II. Professional Contract~
Record amounts subcontracted for professional services and,
if known, enter the name of the individual(s) or firm(s).
III. oth~r Direct Costs
1. Project travel expenses by the subcategories listed.
In deriving these figures, the applicant should attempt to
estimate expenses based on anticipated travel destinations.
2. Itemize direct administrative expenses for each cost
subcategory. If expected expenses cannot be appropriately
charged to a subcategory listed and the amount exceeds $1,000 in
expense, identify the total charge as another subcategory.
IV. Other Program Funds
These are administrative funds received from other funding
sources to carry out economic development activities.
17
>,
.! ,.: ~', ~-' ,;: .
.ADMINISTRATIVE FUNDS FORM
(CDC NAME)
l)Source(s) 2) Amount 3) Effective 4) EligIble 5)Type of
of Funds Received Date Activities Evidence
From - To Attached
& page #
. . . .
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. . . .
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. . .
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. . . .
I -I I r
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INSTRUCTIONS
ADMIN~STRATIVE FUNDS FORM
This form must be completed as follows:
1. List the source of funds - give the name of the grantor
agency or individual. Grants may be public grants, corporate
donations, private donations or income generated from the ene's
ventures and investments. .
2. Enter the total amount of dollars awarded under the
contract or the total amount of the contribution. Enter the
amount of dollars actually received for each funding source
listed. If monthly expenditure reports are not maintained on
contracts which extend into or beyond these dates, the CDC should
estimate as closely as possible the actual amount spent during
the time of review. In order to receive points, these funds must
be no less than $10,000.
All relevant dollar amounts and signatures must be
highlighted and circled in the document itself in order to be
considered for scoring and the page number of the highlighted
item must be shown on the Administrative Funds Form.
3. Record the effective dates of the contract or award from
the initial date of execution to the ending date as specified in
the agreement. These dates must overlap into or fall within the
two year period immediately preceding the application deadline
date. only funds received during this period will be counted
for scoring purposes.
4. state the nature of the eligible activities to be
carried out under the terms of the award. They must relate to
economic development activities in order to be scored.
5. SUbmit evidence which documents the award in accordance
with Rule 9B-14.009(4), F.A.C.
19
"
'J...;,"f".:;S,: ... ~..i'4: "1. ..;"'-"-,.'.,"" ,....
VENTURE FUNDS FORM
(eDC NAME)
1. Name of Venture:
2. Description .of Venture:
3. Number of Jobs Created:
Number of Jobs Preserved:
Number of Housing units
Rehabilitated:
Type of
Evidence
Time Period
or Term of
Investment
Appl.
Page
Number
"-
Percent of CDC's
Financial Participation
Date Venture was Fully
Operational
-
--
Total Capitalization
Amount
Sources, Amounts, Types
and Terms of Investment
1)
2)
3)
4)
5)
. ,." ..+
INSTRVCTI9NS
VElirtJRE FUNDS FO..RM
The Venture Funds Form will be used to record the CDe's
direct financial participation in a revenue generating, job
producing business venture. A separate Venture Funds Form should
be used for each venture, and documentation must be in accordance
with Rule 9B-14.009(6), F.A.C. Evidence must be provided which
verifies that each venture is completely capitalized and
operational. Each claim must be supported by documentation
(i.e., executed contracts or letters of commitment) which clearly
shows type of investment, "the uncondi.tional commitment of funds
to the project, and which further demonstrates that the
commitment is within the three years immediately preceding the
application deadline date. All relevant dollar amounts and
signatures must be highlighted and circled in the document itself
in order to be considered for scoring and the page number of the
highlighted item must be shown on the Venture Funds Form.
A venture shall be considered fully operational when it is
fully capitalized and employees have been hired for the venture
as evidenced by a) an executed contract, b) a promissory note or
c) a letter of commitment. Portions of revolving loan funds
which have not been loaned to a business will not be counted for
scoring purposes.
I
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~
Items 4 - 7
Complete the blanks as indicated.
Complete the blanks as indicated and also identify
the type of documentation and the page numbers in
the application on which the relevant information
can be found.
.
,.
,
,
Items 1 - 3
ATTACHMENT 2
Ch~299__._.
URBAN REDEVELOPMENT
F.S. 1991
(7) 'Pormonont lob' moans a lull-time posillon. the
clurnllon 01 which fJl(ceodr. 12 months and which con-
lllutn of 01\ nvorngo of at least 30 hours per week of
omploymont.
(8) 'Temporary Job' moans a full-time or part-lime
potit,on, tho duration 01 whIch exceeds 45 days. which
consists 01 Dn avo rage 01 at loast 15 hours per week of
employmont. nnLl which is not a permanent job.
(9) This section shall stand repealed on June 30.
1998.
HlltOfy.-a 4, Ch 00-2'50, a 21. ctl 81.167,5 10. c~ 82-1195 29 ch 83-55.
. 1. eh 1'4-140 . 9 ch 91-262
Hot..-fo""ar a 200 004
290.034 Community Development Support and
Assistance Trust Fund; priority of use.-
(1) The Legislature shall annually provide funding in
the General Appropriations Act for the Community
Development Corporation Support and Assistance Pro.
gram. The lunds appropriated shall be deposited in the
State Treasury in a fund established and designated as
the .Community Development Support and Assistance
Trust Fund,. which shall be administered by the depart.
ment. The appropriation for this fund shall be appor.
tioned by the Legislature between loans and admlnistra.
tive grants to community developmen t corporations. All
funds deposited in the trust fund and not needed for
immediate disbursement shall be invested pursuant to
s. 18.125 and the interest earned shall be deposited in
the trust fund. The administrative costs 01 the program
shall be annually set in the General Appropriations Act
and shall be funded from the trust fund.
(2) The department shall give priority in the use of
the fund to those community development corporations
the service areas 01 which include an enterpnse zone
approved pursuant to s, 290.0065.
(3) This section shall stand repealed on June 30.
1998.
HlltMy.-I, 5, Ch. 00-250;, 11. ch 8 1-2\}!). . 2. ch 84-2040, , 55, ell 6-t-356
s. 1S.en 87-331. a 10. en 01-262
Hoto.-FOllner Ii 288 605.
290.035 eligibility for Bsslstance.-Community
development corporations meeting the following
requirements shall be eligible for assistance:
(1) The community development corporution must
be a nonprofit corporation under state law or :: :c~Cii
development company established under state law and
certified to be eligible to participate In tho Small Busi.
ness Administration Loan Program under G. 502 01 the
Small Business Investment Act of 1958. as amended,
and must meet the following further requirements:
(a) Its membership must be open to all service area
residents 18 years of age or older.
(b) A majority of its board mombers must be elected
by those members of tho corporation who me service
area residents.
(c) Elections must be held annunlly lor at loast a
third 01 the elected board mcmboru sa that elocted
members serve terms 01 no moro thon 3 yonrs
(d) Elections must be adoquatoly publicllcej wilhin
the service area, and amplo o~portuntty must be pro.
vided for full participation,
(e) At least one of tho bonrd rnnrnbnr!l shnll be
appointed by the Govornor,
(2) The community development corporation shall
maintain a service area in which economic development
projects are located which meets one or more of the 101.
lowing criteria:
(a) The area has been designated pursuant to s,
163.355 as a slum area or a blighted area as defined in
s. 163.340(7) or (8) or is located completely within the
boundaries 01 a slum or blighted area.
(b) The area is a community development block
grant program area in which community development
block grant lunds are currently being spent or have
been spent during the last 3 years as certified by the
local government in which the service area is located.
(c) The area is a neighborhood housing service dis.
trict.
(d) The area is contained within an enterprise zone
as defined in s. 290004(1) and approved pursuant to s.
290.0065.
(3) This section shall stand repealed on June 30,
1998.
Hlltcry.-s 6, ch 80-250,5 182. ch 81-259, S 11. ch 82-119. S 1~7. ch
83-217. s 3,ch 84-240.5 43.ch 88-201,5 11. rh. 91-262
Not..-Former 5 288606
290.036 Community development corporation sup-
port program.-
(1) The secretary is authorized to award administra.
tive grants Irom the fund to eligible applicants lor staff
salaries and administrative expenses. Persons, equip.
ment, supplies. and other resources funded in whole or
in part by grant funds shall then be utilized to further the
purposes of this act. Eligible activities include. but are
not limited to:
(a) Preparing grant and loan applications. proposals,
fundraislng letters. and other documents essential to
securing additional administrative or venture funds to
further the purposes of this act.
(b) Monitoring and administering grants and loans.
providing technical assistance to businesses. and any
olher administrative tasks essential to maintaining fund.
ing eligibility or meeting contractual obligations.
(c) Developing local programs to encourage the par.
ticlpation of financial institutions, insurance companies,
attorneys, architects. engineers. planners. law enforce.
ment officers. developers. and other professional firms
and individuals providing services beneficial to redevel.
opment efforts.
(d) Providing management. technical. accounting.
and financial assistance and information to businesses
and entrepreneurs interested in locatmg, expanding. or
operating in the service area.
(e) Coordinating with slate. federal. and local gOY'
ernments and other nonprofit organizations to ensure
that activities meet local plans and ordinances and to
avoid duplication of tasks.
(I) Preparing plans or performmg research to iden.
Ilfy critical needs within the service area and developing
approaches to address those needs.
(g) Assisting service area residents in identilying
and delermining eligibility for state. federal, and local
housing programs including rehabilitation. weatheriza.
t.on, home ownership, rental assistance. or public hous.
Ing programs.
324
t
~; F.S.1991
.~
,-
.,"
URBAN REDEVELOPMENT
i (h) Developing, owning. and managing housing
....: designed for low-income and moderate-income per-
;. sons or industrial parks providing jobs to low-income
~ and moderate-income persons.
t.. (2) A community development corporation applying
~ ." an administrative grant pursuant to this section must
';. submit a proposal to the department which includes:
(a) A map and narrative description of the service
area for the community development corporation;
(b) A copy of the documents creating the commu-
nity development corporation;
(e) A listing of the membership of the board;
(d) The proposed 3-year plan for expenditure of the
funds, including goals, objectives, and expected results;
and
(e) Other supporting inlormation which may be
required by the secretary.
(3) The amount of any admrnistrative grant to a com-
munity development corporation in anyone year shall be
ItrJ amount up to $100,000. The department may fund
up to 18 community development corporations each
year as provided for in the General Appropriations Act.
The department shall develop a diminishing scale of
funding each year based on the annual appropriation to
ensure compliance with thiS section and s. 290.0365.
(4) The department may provide grants on a multi-
year basis, provided Ihat:
(a) Such grants shall not exceed 3 years.
(b) Community development corporations desig-
nated to receive multiyear grants provide a detailed plan
of activities to be accomplished during each year of the
grant period.
(c) All contracts containing multiyear commitments
contain the following statement: "The State of Florida's
obligation to pay under this contract is contingent upon
an annual appropriation by the Legislature:
(5) A community development corporation that
receives an administrative grant shall submit to the
department an annual year-end audit performed by an
independent certified public accountant.
(6) In evaluating proposals pursuant to this section,
the secretary shall develop and consider scoring criteria
including, but not limited to, the following:
(a) The relative degree of distress of the service area
01 the community development corporation.
(b) The demonstrable capacity of the community
development corporation to improve the economic
health of the service area and carry out the activities
contained in the 3-year plan.
(e) The degree to which the community develop-
ment corporation would provide assistance to low-
income persons.
(d) The percentage of the community development
corporation service area which overlaps an enterprise
zone approved pursuant to s. 290.0065.
(e) The extent to which the community development
corporation utilizes the loan program authorized by s.
290.037.
(I) The number of preceding years during the his-
tory of the program in which the community develop-
ment corporation has not received state administrative
support.
ATTACHMENT 3
Ch.290
(g) The extent to which the proposal would further
the policy and purposes of this act.
(7) This section shall stand repealed on June 30,
1998.
HlIIOf}'.-s 7. ch 80-250; II. 12. th. 82-119; S 4. th. &4-240; 11.35. ch. 88-201;
s 8. ch 89-352, SlI 12. 13. ch 91-262
Nole_-Fo">lllr ill 288 flJ7
290.0365 Community development corporation
planning grants.-In any state fiscal year in which a
competitive scoring cycle is not conducted pursuant to
's. 290.036(6), the secretary may reserve up to 10 per-
cent of the annual appropriation for administrative
grants for dIstribution to community development corpo-
rations which have not received an administrative sup-
port grant at any time during the previous history of the
program. Grants awarded under this section shall be for
planning and organizational purposes and shall be
awarded according to the selection process specified in
s. 290.036. No community development corporation
shall be awarded more than two planning grants. Com-
munity development corporations receiving funds under
this section shall submit the information required by s.
290.036(2) and shall be subject to all applicable require-
ments of ss. 290.035. 290.036. 290.037, 290.038, and
290.039, as determined by the secretary. This section
shall stand repealed on June 30, 1998.
IlIDtory.-S 14. ch 91-252
'Not..-Subsliluled lor a relllrence to s. 290 036(<4) because aub,ecllon (4) does
oollnvol'olo scorang
290.037 Community development deferred pay-
ment loan program.-
(1) The secretary is authorized to make loans from
the fund to eligible applicants for the following pur-
poses:
(a) Establishment of a new business venture;
(b) Financial assistance to an existing business ven-
ture located within the community development corpo-
ration service area; and
(c) New construction or substantial rehabilitation of
housing to be utilized by low-income families and indi-
viduals.
(2) A community development corporation applying
for a loan pursuant to thiS section must submit the infor-
mation required by s. 290.036(2).
(3) In no case shall loans to one community develop-
ment corporation exceed 40 percent of the total annual
appropriation lor loans during any given year.
(4) A community development corporation thal
receives a loan shall submit to the department an annual
audit performed by an independent certified publiC
accountant; however, this subsection shall not be con-
strued to require the submittal of more than one audit
by an individual community development corporation
submitting pursuant to s. 290.036.
(5) In evaluating proposals pursuant to this section,
the secretary shall consider:
(a) The economic feasibility of the project and the
capacity of the venture to repay the loan;
(b) The relative degree of distress of the target area;
(c) The ratio 01 private and nonstate public money
committed to a project to the amount of state money to
be committed;
325
.. 290.0055
1992 SUPPLEMENT TO FLORIDA STATUTES 1991
s. 290.049
lor an area that was approved by the secretary pursuant
to s. 290.0065 on or before January 1. 1987, may apply
to the department for a change In the boundary of such
approved enterprise zone If, alter said change is made,
the enterprise zone, including any additional area and
excluding any deleted area. continues to satisfy the
requirements of subsections (3). (4), and (5).
(b) The governing body or bodies may make such
application by adopting a resolution which:
1. States that a change in the boundaries of the
approved enterprise zone is needed;
2. Finds that any area to be added to the approved
enterprise zone exhibits the characteristics of an enter.
pnse zone;
3. States with particularity the reasons for such
change; and
4. Describes specifically and to the extent required
b~' the department the boundary change to be made.
(8) Each area for which application to be an enter-
prise zone is made after January 1, 1988, shall include
as a part of such area a neIghborhood improvement dls-
Inct created pursuant to part IV of chapter 163.
(9) This see lion shall stand repealed December 31,
1994
Hillory.-s 46. cl'1 84-:l~. S 57. ch 8&-152. s 25. ch 88-201. s 5. eh 89-352.
121. CI't 92-319
'290.0365 Community development corporation
planning grants.-In any state fiscal year in which a
competitive scoring cycle is not conducted pursuant to
5.290.036(4), the secretary may reserve up to 10 per-
cent of the annual appropriation for administrative
grants for distribution to community development corpo-
rations which have not received an administrative sup-
port grant at any time during the previous history of the
program. Grants awarded under this section shall be for
pianning and organizational purposes and shall be
awarded according to the selection process specified in
5. 290.036. No community development corporation
shall be awarded more than two planning grants. Com-
munity development corporations receiving funds under
lhis section shall submit the information required by s.
290.036{2) and shall be sUbject 10 all applicable require-
ments of ss. 290.035. 290.036, 290037. 290.038, and
290.039, as determined by the secretary. This section
shall stand repealea 011 June 30. 1998.
Hl1lory.-a 14. ell 91-2'62
'Note.- TillS setChOr. IS rtolJuOilSl'1ed here 10 l1ol6le an 601lor,al suOsllluhon maoo
"Ioess-relerence on the p'eparallon ot Ille Florida Slatulas 1991 ana to reslore
~ as enacted '" 5 14. eh 91-262
'290.049 Advisory council.-
(1) There is created within the Department of Com-
'~ munity Affairs the CommunIty Development Block Grant
. Advisory Council.
(2) The purpose of the council is to:
{ (a) Advise the department in planning. developing.
)~ implementing, and performing evaluation activities
i. related to the Florida Small Cities Community Develop-
~
ment Block Grant Program.
.~. (b) Increase the interchange of information between
~~ b:al governments that partIcipate in the program.
r (c) Heighten public awareness as to the pu(pose
I and function of the program.
I
t
t:
(3) The council shall be composed of 13 members
appointed by the Secretary of Community Affairs. The
secretary shall ensure that minorities receive represen.
tation on the council. The secretary shall appoint:
(a) One representative of the Florida League of Cit-
ies.
(b) One representative of the Florida Association of
Counties.
(c) One representative of regional planning councils.
(d) Four persons who are engaged in implementing
the Florida Small Cities Community Development Block
Grant Program.
(e) Two local government officials.
(f) Two citizens who represent low-income persons
and moderate-income persons.
(g) Two representatives of statewide housing and
community development organizations.
. Members shall be appointed to serve terms of 4 years,
except that of the members initially appointed. three
members shall be appointed for terms of 1 year, three
members for terms of 2 years, three members for terms
of 3 years, and four members for terms of 4 years. The
terms of members shall be designated by the secretary
at the time of appointment. A member appointed to the
council may not serve beyond the time he ceases to
hold the office or employment by reason of which he was
eligible for appointment to the council. A vacancy shall
be filled only for the unexpired portion of the term. Any
member who, without cause, fails to attend two consec-
utive meetings shall be removed by the secretary. Mem-
bers may be reappointed.
(4) The chairperson of the council shall be elected
annually by a majority of the council members.
(5) The council shall meet at the call of its chairper-
son, at the request of a majority of its members, or at the
request of the department; however, the council must
meet prior to any significant program revisions or publi.
cation of proposed rules pursuant to s. 120.54(1) relating
to the program. The council shall meet at least twice
each year.
(6) Members of the council shall serve without com.
pensation, but are entitled to be reimbursed for per diem
and travel expenses in accordance WIth s. 112.061.
(7) By December 31 of each year, the council shall
submit to the Governor. the President of the Senate, the
Speaker of the House of Representatives, and the secre.
tarya report setting forth:
(a) A description of the. activities of the council.
(b) Recommendations made by the council to the
department regarding rule and policy changes and
action taken resulting from the recommendations.
(c) Plans and Objectives to be accomplished by the
council in the next year.
(d) Any recommended changes to this chapter.
(8) The department shall supply any information,
assistance, and facilities as are reasonably requested
by the council to carry cut its duties and shall provide
such staff assistance as is necessary for the council to
perform its clerical and administrative functions.
Htltory.-ss 9. 10. Ch 83-205; I. 7. th. 90-275; ss. 1.2. J. ch 92-12.
fNot..-Aepedflld eHeclly. October 1.2002. by 1 3. en. 92-12. and SCheduled tor
rell""" pursulnt 10 I 11 61'. Slcl00n 3. CI't. 92-12. lurtMr provides Ihat '('In 'he
ellOnlll'1al &ecl.:,n lIB 11. Florida Stalules. Is repealed prlO( to OctoDltr 1. 2002. IhlS
seClten shall sland rep,alod on the ellectlve date 01 the repell 01 said sectIOn .
865
. ,", ,.~
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PEARSON, THOMAS/LKW
~r;~RTIs~ci~ PU8UC RELAllQ!'lS "'"'
Sulle 800, Bll)'pOtl Plaza
6200 Courtney Campbon CSUIC"'.'
Tampa. FL 33601
Tolephone T4mpl (8]3) 281.9511
I
I
PRINT COpy
I
Clcarwalel DDB
CBTA Bldg, Cla$slfled Ad
I .
I
May 4, 1993
Client:
Product:
loll No:
Da~ Started:
Last Update:
CETA BUILDING
Tampa Tribune
St. Petersburg Times
HI
Co
.
Downtown Commercial Property
for Lease
i
,
i
!
I
~
.
The City of Clearwater i:8offering for lease a 52,750 sq, ft. parce. of
level land zoned for commerdall general use. The site is Ideally
located with 250' fronting along SR 60 (1180 Cleveland St.)., th~
major east-west access to the beach just 1 mile to the west, Site
improvements include a 16,750 sq. ft. asphalt parking lot and ~
2-floor concrete block commercial building constructed in 1943,
I
Total floor area is approx. 6,500 sq. ft. in good condition. Contact
Jerry D. StemsteinJ Economic Developn'lent Director, City of I
Clearwater, F.O. Box 4748, Clearwater, FL 34618--4748, (813) 462..6206.
n
1
GO'd
L9611BGEIBl 'ON Xij~
M~1/SVWOHlINOS~~3d
IS~11 3~ E6-~ -AUW
\,
(,~..w......, .....',' > ...." ~,',',:." .... 'd .'!,':/,:i~' ,',~~::,,;":,. . .;<_ ,> I ~ : I: :r' ,)
- ..
PEARSON, THOMASILKW
ADYER'(JRINO &. P1InLIC RELATIONS
Suite 800. Bayport PI81.a
6200 Courtney Campbell Causeway
Tampa, FL 33607
Telephone Tnmpa(813) 281-9511
MEMORANDUM
Prom:
Jerry Sternstein
Jean Sherry, Rose Mun
To:
Da~e:
May 4, 1993
Advertising placement costs for leasing of the CETA Building
Re:
~t. Petersburg T!rog~
(1 col. x 3" insertions)
May 9 Sunday Real Estate Classified
May 10 BusIness Monday ROP
rampa TrjQYJ\e
(1 col. x 3'1 insertions)
May 9 Sunday Real Estate Classified
May 10 Business Monday' ROP
$392.12
$208.50
$260.82
$297.00
TOTAL:
I
I
~1..158.~
Space and material closings are 'Thursday, May 6.
EO'd
LS6lt8cEtet 'ON X~~
M~1/S~WOH1'NOSH~3d
CS(lt 301 E6-~ -AVW
';", .
J tern #
CLEARWATER COMMUNITY REDEVELOPMENT AGENCY
AGENDA COVER MEMORANDUM
Meeting Date: 06/17/93
\v'~.
SUBJECT: BEACH TO DOWNTOWN TROLLEY SERVICE FUNDING
y
,
'.
;
;
RECOMMENDATION/MOTION: Approve a budget amendment to appropriate $32,100 of
Community Redevelopment Fund monies to provide funding for the three month
continuation of the beach-to-downtown trolley service,
i:
y
{.
I and that the appropriate officials be authorized to execute same.
1I~
13ACRGROUND:
On March 18 1993, the city commission approved the three month (April-June)
continuation of the beach-to-downtown trolley service, and directed staff to
propose alternative funding resources.
The city commission has expressed the intention to continue the service for an
additional three months (July-September) to allow time for the formation of a
private non-profit corporation to oversee the trolley services. The Commission
has requested the Community Redevelopment Agency provide the estimated $32,100
funding for this periOd.
It is recommended that a budget amendment be approved and funding be
transferred to the city General Fund from the current year revenues of the
Community Redevelopment Agency. CRA financial statements as of April 30, 1993
indicate that approximately $310,000 is available in the fund for appropriation
to specific projects.
Revi ewed by:
Legal
Budget
Purchasing
Risk Mgmt.
CIS
ACH
Other
~A
N A
/A
N/A
Originating Dept:
Ci ty Manager
Costs:
$ 32.100
Total
C~ission Action:
o Approved
o Approved w/conditions
o Denied
o Continued to:
User Dept:
$ 32.100
Current Fiscal Yr.
Advertisted:
Date:
Paper:
181 Not Requi red
Affected Parties
~ Notified
o Not Requi red
Fl6lding Source:
o Capital Jmp.
~ Operating
o Other
Attachments:
N None
Appropriation Code:
010-07000-530300-554