GOED Rolling Out New CDBG Program

Thursday, July 13, 2017

Main News Photo

PIERRE, S.D. – The Governor’s Office of Economic Development (GOED) is pleased to announce the details for the Bulldoze, Build, and Beautify (BBB) activity under the Community Development Block Grant (CDBG) program. GOED has set aside $1 million of its FY 2017 CDBG allocation to support this activity.

“We’re excited to launch this program after a lot of hard work and planning,” said Commissioner Scott Stern, GOED. “For communities to determine eligibility, and to address blighted properties in and understand the application process and timeline, we invite you to please review the eligibility requirements carefully. Interested applicants can also talk to regional planning districts for support and answer to questions as you prepare your materials.”

All interested communities should work through their regional Planning District for support in completing the application process described below, as well as for the administration of awards.

Eligibility Requirements

 

Property Type

  • Residential dwellings only; may be single- or multi-family.
  • Mobile homes are eligible, provided they are replaced by a permanent structure.

Property Condition

  • Must be in a blighted, dilapidated or abandoned condition.
  • Must be unoccupied and not used for another activity (e.g., a business).

Ownership

  • Must be owned by a county, city or local non-profit organization (e.g., economic development corporation, housing development corporation).
  • Title must be clear of any prior liens.
  • If not owned, the county, city or local non-profit must have an enforceable contract giving it the option to purchase the property within 18 months of the grant award.

Site Work

  • Blighted structure must be demolished and removed completely from the lot.
  • Lot must be restored to a build-ready state, including necessary utilities (water, sewer, electric and if applicable natural gas) to at least the property line.
  • Foundation/basement concrete must be removed and filled, unless it has been certified by an engineer for reuse within three months for a replacement property on the site.
  • Site work for demolition/removal must be completed within 18 months of award date.

Replacement Housing

  • Residential dwellings only; may be single- or multi-family.
  • No cost limits, but must either show it will be affordable based on the general wage level for the community’s workforce or priced to meet a specific need identified by a business in the community (e.g., housing for key employee).
  • Award recipient must commit to replace the demolished unit within two years of demolition and removal (three years for Class 3 municipality); failure to do so may result in obligation to repay CDBG funding.

Match and Limitation on Awards

  • Local match must be made at a minimum of 1:1 with CDBG funds, based on total project cost (i.e., inspection and remediation if applicable, demolition/burning, landfill disposal, site fill and prep).
  • Properties in which asbestos or other environmental issue is encountered after an approved project moves forward will be dealt with on a case-by-case basis.
  • Local match may be in-kind; in-kind contributions will be valued at the FEMA rate.
  • No limit on the number of units applied for; no lifetime limit on awards to a community; GOED may limit or partially fund applications if demand exceeds available funds.

Interested cities or counties should submit an “Intent to Apply” package to GOED through their regional planning district, including the basic information described in the Intent to Apply Questionnaire and any supporting documentation by Thursday, Aug. 18. Any applicants who miss that deadline may apply again beginning on Monday, Aug. 28.

Please note that because federal CDBG funding is being used, interested applicants are reminded that all federal grant requirements, such as environmental review and Davis Bacon requirements, must be met. Both the applicant and any contractors to be used must be registered in the System for Awards Management (SAM). For more information, please contact your planning district office.

Category: South Dakota, Redevelopment