DCCA INCREASES COMMUNITY FUNDING OPPORTUNITIES By JAN M. GRAYSON, Director Illinois Department of Commerce and Community Affairs

The Department of Commerce and Community Affairs (DCCA) has recently implemented changes in its Community Development Assistance Program (CDAP), which will take effect on July 1, the start of this program year.

With the new program year, DCCA will be making $32,993,000 in CDAP funds available to Illinois communities for various activities. Funding for the General Economic Development Component will total $4,000,000 for the upcoming program year. As in the past, funding from this component may be used for infrastructure in support of economic development projects and loans to businesses to expand or locate in Illinois. Applications for the General Economic Development component are accepted by the department on an ongoing basis.

CDAP funds in the amount of $20,197,140 have been allocated for the upcoming Competitive Public Facilities round, for which applications must be submitted to the department by July 1, 1992. Applications for the Competitive Housing Rehabilitation Component are due to DCCA by October 1,1992 and will be competing for their share of a $5,000,000 total allocation.

In addition to the existing CDAP program components of Economic Development, Public Facilities, Emergency Public Facilities Set-aside, and Housing Rehabilitation, the department has implemented two new CDAP components: the Planning Assistance Grant Program and the Final Design Engineering Grant Program.

A 1992 funding allocation of $500,000 has been established for the new Planning Assistance Grant Program which provides for grants of up to $25,000. Grants will be awarded to communities to conduct planning or feasibility studies to allow communities to plan for well-conceived construction projects. Allowable grant activities for the Planning Assistance Grant Program may include such deliverables as a funding source analysis, consideration of engineering alternatives, cost/benefit analysis, and affordability studies.

The application process for the Planning Assistance Grant Program will be competitive, with applications due to the Department of Commerce and Community Affairs by close of business January 4, 1993. Applications must be construction-oriented, leading to a construction project, but do not have to be water-or sewer-related. Projects must benefit at least fifty-one percent low-to-moderate income individuals, but do not necessarily have to relate to a threat to public health and safety.

Under the Planning Assistance Grant Program, applicants will be required to solicit proposals from several consultants. No local leverage will be required for this component. A grant from this component does not guarantee nor require future funding of a resulting project through the CDAP Public Facilities component, though successful grantees are allowed to apply if other program requirements are met.

With a grant ceiling of up to $50,000, the Final Design Engineering Grant Program component has been allocated a total of $1,500,000 for State Fiscal Year 1992. Grants will be awarded to communities for final design engineering targeted toward large-scale projects for new or expanding water and sewer systems. Applicants can apply for funds under this component to develop final design plans which, for example, are needed to access Illinois Environmental Protection Agency (IEPA) permits or to secure funding from the Farmers Home Administration. Typically, lack of funding at this stage of a project results in start-up delays.

Under the Final Design Engineering Grant Program, communities are still required to meet the program guidelines of the Competitive Public Facilities component, e.g., low-to-moderate income benefit, identified threat to public health and safety, environmental review requirements, etc. As with the Planning Assistance Grants, however, there is no requirement for local leverage.

The application process for the Final Design Engineering Grant Program is also competitive, with applications due to the Department by close of business July 1, 1992. Consideration will be given to communities which have a Facilities Plan or preliminary design which has been already approved by the IEPA. In addition, applicants must demonstrate that the project will likely lead to construction within two years.

As with all CDAP components, both of these new programs are available only for Illinois communities with populations of 50,000 or less that are not in HUD designated entitlement areas.

With the implementation of these two new components, the Department of Commerce and Community Affairs is offering communities in Illinois two innovative funding alternatives for project costs which historically have had very few funding opportunities. These changes are the direct result of DCCA's extensive contact with communities, listening to their problems and needs. DCCA is optimistic that these two new programs will be well-accepted and will meet with great success.

Questions about the new programs or any of the CDAP components may be directed to the Office of Economic Development Programs at 217/785-6142.

Page 4 / Illinois Municipal Review / May 1992