The Small Cities Development Program (SCDP) Unit is accepting preliminary proposals, the first stage in the grant application process for eligible activities addressing community needs for owner-occupied housing rehabilitation, rental and/or commercial building rehabilitation or public facility improvements through the SCDP.
The SCDP supports community development activities that:
- Encourage and assist local governments to develop comprehensive economic development strategies which promote viable communities by providing economic opportunities for Low-to-Moderate Income Households;
- Encourage and assist local governments to develop comprehensive public facility improvement strategies in conjunction with Rural Development (RD), the Public Facility Authority (PFA), MN Pollution Control Agency (MPCA), and others, to make rural communities more viable, actions must also primarily benefit Low-to-Moderate Income Households;
- Develop and implement strategies, which facilitate the coordination of CDBG Small Cities funding with other federal/state/local community development resources.
Deadline for Preliminary Proposals: 4:30 p.m. on November 17, 2020
- Single Purpose Max Award: $600,000.
- Comprehensive Project Max Award: $1.4 million.
The amount of other funds required varies and is contingent upon the project type. However, the amount of leveraged resources plays a significant role in determining whether the project is funded.
The timeline to complete projects is normally 30 months, depending on project size and scope.
Eligible applicants are cities with a population under 50,000 and counties and townships with an unincorporated population under 200,000. Community development activities must meet one of the following federal objectives:
- Benefit people of low and moderate incomes
- Eliminate slum and blight conditions
- Eliminate an urgent threat to public health or safety
State program rules subdivide grant funds into three general categories:
- Housing Grants: Funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. In all cases, housing funds must benefit low- and moderate-income persons.
- Public Facility Grants: Funds are granted for wastewater treatment projects, including collection systems and treatment plants; wells, water towers and distribution systems.
- Comprehensive Grants: Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building, rehabilitation related to facade improvements, code violations, and health and safety issues. The most common economic development activity is rehabilitation of local commercial districts.
Deadline for Preliminary Proposals is 4:30 p.m. on November 17, 2020.
Proposals must be submitted to the Department of Employment and Economic Development, Business and Community Development Division, Small Cities Development Program Unit, 1st National Bank Building, 332 Minnesota Street, Suite E200, St. Paul, MN 55101-1351. One original and one copy of the preliminary proposal are required. Faxed or e-mailed applications will not be accepted. All copies must be complete and submitted by the deadline to be considered for funding.