PART IV: Descriptions of Programs Included in the SuperNOFA
Economic Development and Empowerment

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

Self-Help Homeownership Opportunity Program (SHOP). SHOP is designed to facilitate and encourage nonprofit organizations to provide innovative homeownership opportunities through the provision of self-help housing where the homebuyer contributes a significant amount of sweat equity toward the construction of the dwellings. Only experienced national or regional organizations or consortia (which cover two or more states) are eligible to apply. Program funds may only be used for:

• land acquisition and/or infrastructure improvements (which taken together may not exceed an average of $10,000 in assistance per dwelling), and administration, planning and management development costs (not to exceed 20 percent of any grant).

    Program Office: Community Planning and Development

Resident Opportunities and Self-Sufficiency Program (ROSS). ROSS grants are designed to assist residents to become economically self-sufficient through supportive services and resident empowerment activities. The program is consistent with the Department's goal to most effectively focus resources on "welfare to work" and on independent living for the elderly and persons with disabilities. HUD is looking for applications which implement practical solutions within the grant term and result in improved economic self-sufficiency for public housing residents. The funding categories under ROSS are:

• Resident Management and Business Development
• Capacity Building/Conflict Resolution
• Resident Service Delivery Models
• Service Coordinator Renewals

   Program Office: Public and Indian Housing

Outreach and Training Grants

Outreach and Training Grants (OTAG). OTAG provides resident-controlled nonprofit organizations, community-based organizations, and public entities with funds needed to conduct outreach and training activities for residents of HUD-subsidized project-based Section 8 housing developments whose mortgages are being restructured under HUD's Mark-to-Market (M2M) Program. M2M is designed to dramatically reduce the long-term cost of Section 8 rental assistance while preserving decent, safe affordable housing for thousands of low-income families. OTAG funds nonprofit groups to work with residents so they can participate meaningfully in the Mark-to-Market program and have a greater voice in decisions that affect their housing. For FY 2000, approximately $6 million has been allocated to this program.

   Program Office: Housing

Rural Housing and Economic Development Program

Rural Housing and Economic Development Program. This program provides funding to increase the supply of affordable housing, support innovative projects for housing and economic development in rural areas; and provide seed support for entities developing housing and economic opportunities in rural areas. HUD is particularly interested in increasing housing and economic opportunities for Indian tribes, farm worker populations and colonias. Eligible applicants are local rural nonprofit organizations, community development corporations, Indian tribes, State housing finance agencies, and State economic development or community development agencies.

    Program Office: Community Planning and Development