Have a say in how your Montana CDBG Economic Development dollars are spent

The Montana Consolidated Plan will be available for review
November 20, 2013

The Plan is designed to
help states and local jurisdictions assess their affordable housing
,
community development
, and
economic development
needs
.
The consolidated planning process serves as the framework for a
community
–
wide dialogue to identify
local
development priorities.

The Consolidated Plan process involves public
input
regarding how US
Housing and Urban Development
(HUD) funds
are
spent in their states. The Community Development Block Grant
–
Economic
Development (CDBG
–
ED) Program
which receives a portion of the State’s CDBG allocation
is addressed
in the Consolidated Plan document. T
he Montana Department of Commerce encourages com
ments
from the public regarding use of CDBG
–
ED funding.

Eligible activities under the
Montana
CDBG
–
ED
program includes grants and loans for planning activities
leading to an economic development project, loan
s for working capital and equipment purchases, and
grants to local governments for infrastructure improvements. L
ocal government
s
are
required to
identify the sources and uses of
project
funds
, and
assure the participation of a
t least one non
–
CDBG
–
ED
doll
ar for each dollar of non
–
administrative CDBG
–
ED funds requested (a 1:1 leverage ratio). The non
–
CDBG
–
ED funds may come from a variety of sources. CDBG
–
ED no longer requires match in the form of
new money, grants, investments, or loans, and will consider
o
ther forms of
match
for
documented
expenses incurred
no more than 18 months
prior to the date of the application.
The Montana
Department of Commerce
reserves the right to reduce the match requirement in exceptional
circumstances, such as high impact projects in areas demonstrating significant levels of need.
Also, the
CDBG
–
ED program has dropped the current interest rate
for business loans from
5% t
o 2%.
Funds are
awarded on a first
–
com
e,
first
–
serve basis, if the thresholds and underwriting criteria are met, until all
funds are committed.
CDBG
–
ED
also sets aside approximately $180
,000 in CDBG
–
ED funds for economic
development planning, capacity bu
ilding, and technical assistance grants
.

A final public hearing will occur December 4, 2013 at the Montana Department of Commerce in Helena.
You may submit comments by email, US postal service, or in person at the final public hearing.

Karyl S. Tobel

Assistant Division Administrator

Business Resources Division

Montana Department of Commerce

301 South Park Avenue

Helena, MT 59620

Office: 406-841-2732

Cell: 406-431-0274