FY 1998 SuperNOFA Guidebook

Economic Development and Empowerment

Descriptions of the following programs are included in this section.

  • Economic Development Initiative (EDI)
  • Brownfields Economic Development Initiative (BEDI)
  • Youthbuild
  • Economic Development and Supportive Services Program (ED/SS)
  • Tenant Opportunity Program (TOP)
  • Portfolio Reengineering Outreach and Training Program27
  • Secondary Market Nonconforming Loans28
Economic Development Initiative. EDI is designed to enable local governments to enhance both the security of loans guaranteed through HUD�s Economic Development Loan Fund (also known as the Section 108 loan guarantee program) and the feasibility of the economic development and revitalization projects that Section 108 guarantees finance. EDI accomplishes this by providing grants to local governments to be used in conjunction with Section 108 loan guarantees. A locality may use the grant to provide additional security for the loan (for example, as a loss reserve), thereby reducing the exposure of its CDBG funds (which by law must be pledged as security for the loan guarantees). A locality may also use the EDI grant to pay for costs associated with the project, thereby enhancing the feasibility of the 108-assisted portion of the project. Eligible activities under the EDI program are the same activities that are eligible under the Section 108 Loan Guarantee program. EDI-funded projects must meet one of the CDBG program�s national objectives.

Program Office: Community Planning and Development

Brownfields Economic Development Initiative. BEDI is designed to help cities redevelop abandoned, idled, or underutilized industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination�brownfields. BEDI accomplishes this by providing funding to local governments to be used in conjunction with Section 108 loan guarantees to finance redevelopment of brownfields sites. Eligible activities include:

    • Site acquisition.
    • Demolition.
    • Remediation.
    • Infrastructure construction or reconstruction.
    • Assistance to for-profit businesses for economic development.
    • Construction or reconstruction of public facilities.

Funding for BEDI is provided through a specific appropriation for brownfields redevelopment under the authority of the Economic Development Initiative (EDI) program. BEDI funds are intended to be used in a manner consistent with previous iterations of the EDI program, but with a particular emphasis upon the redevelopment of brownfields sites. Many of the brownfields activities are also eligible for Community Development Block Grant funding, which is awarded to entitlement communities on a formula basis and to States for distribution to nonentitlement communities.

Program Office: Community Planning and Development

Youthbuild. Youthbuild is designed to help young high school dropouts obtain education, employment skills, and meaningful work experience to help them obtain well-paying jobs and achieve self-sufficiency. Youthbuild provides funding to nonprofits, State and local housing agencies, State and local governments, and other organizations eligible to provide education and employment training under Federal employment training programs. The funding is used to implement housing construction/rehabilitation training programs for very low-income high school dropouts age 16 to 24. Youthbuild programs offer educational and job training services, counseling and other support activities, and on-site paid training in housing rehabilitation or construction work. At least 50 percent of each participant�s time is spent in on-site training.

Program Office: Community Planning and Development

Economic Development and Supportive Services. ED/SS is designed to help families in public and Indian housing move to work and achieve self-sufficiency. It accomplishes this by providing funding to public housing agencies, Indian tribes, and tribally designated housing entities to support self-sufficiency activities among residents and promote independent living for the elderly and people with disabilities. ED/SS funds a broad range of activities including:

Family Economic Development and Supportive Services:

    • Economic and business development.
    • Entrepreneurial training.
    • Micro-loan funds or credit unions.
    • Employment training and counseling.
    • Employer linkage and job placement.
    • Supportive services, such as child care, supportive health care, tuition assistance, youth mentoring, and transportation costs.
    • Service coordinators/case managers.

Supportive Services for Elderly and Persons with Disabilities:

    • Meals.
    • Ambulatory/self-care.
    • Housekeeping aid.
    • Transportation services.
    • Wellness programs/preventive health education.
    • Referral to community resources.
    • Adult day care (nonmedical).
    • Personal emergency response systems.
    • Congregate services
    • Employment of service coordinators.
    • Other services/resources.

Program Office: Public and Indian Housing

Tenant Opportunity Program. TOP is designed to help public housing residents improve their lives through training for self-sufficiency, strengthening resident organizations, and encouraging partnerships with the public housing agency and community organizations. TOP accomplishes this goal by providing funding in one of the following three grant categories: 1) Economic Self-Sufficiency; 2) Organizational Development; and 3) Mediation. Economic Self-Sufficiency Grants will be awarded to Public Housing Resident Associations (RAs) which will provide educational, job, business, and life skills training leading to self-sufficiency and welfare-to-work transitions. Organizational Development Grants will be awarded to RAs who do not yet have the capacity to administer a welfare-to-work program. Mediation Grants will be awarded to Intermediary Organizations that partner with professional mediators to resolve conflicts involving resident groups at specific sites. Activities funded by TOP include:

    • Employment and vocational training, counseling, placement, and follow-up.
    • Management training and business development.
    • Life skills training (counseling/mentoring, etc.).
    • Youth programs.
    • Resident security.
    • Homeownership initiatives.
    • Family services, such as child care, that support these activities.

Program Office: Public and Indian Housing

Portfolio Reengineering Outreach and Training Program. The purpose of the Portfolio Outreach and Training Program is to provide an opportunity for those affected by portfolio reengineering of Federal Housing Administration-insured housing projects to participate effectively and on a timely basis in the restructuring process. The program funds tenant groups, community-based nonprofit organizations, and public entities with experience in resident education and organizing to conduct citywide and community-wide outreach and training for residents in Portfolio Reengineering-eligible projects.

Program Office: Housing

Secondary Market Nonconforming Loans Demonstration. The purpose of the Secondary Market Nonconforming Loans Demonstration is to enhance opportunities for homeownership by low-income borrowers by expanding the purchase of nonconforming home loans by the secondary market and other institutional investors. This program was still being designed at the time of publication. One example of an activity that the program might support is funding nonprofit Community Development Financial Institutions (CDFIs) which will use the funding to capitalize loan loss pools. These pools would be used by CDFIs to support their purchase of nonconforming home loans to low-income borrowers from participating commercial lenders. Activities other than this may be integrated into the final program design.

Program Office: Housing

27 Since the Portfolio Reengineering Outreach and Training Program and Secondary Market Nonconforming Loans Demonstration are related to housing they were intended to be part of the Housing and Community Development SuperNOFA. However, program details were still in development as of the publication date of the Housing and Community Development SuperNOFA; so, these programs were grouped in a subsequent SuperNOFA.

28 Ibid.


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Content Archived: July 19, 2012