ECONOMIC DEVELOPMENTSeptember 13, 2004

CDBG DISBURSEMENTS FOR ECONOMIC DEVELOPMENT

STATE TOTAL % of Total ENT. TOTAL % of Total

FY 00 121,564,217 19.3% 277,321,473 7.8%

FY 01 206,312,786 16.9% 282,829,616 7.8%

FY 02 190,420,527 15.1% 275,409,262 7.6%

FY 03 195,046,668 14.9% 237,201,542 7.1%

ECONOMIC DEVELOPMENT CATEGORIES

REHABILITATION:PUBLICLY OR PRIVATELY OWNED COMMERCIAL/INDUSTRIAL

COMMERCIAL/INDUSTRIAL LAND ACQUISITION/DISPOSITION

COMMERCIAL/INDUSTRIAL INFRASTRUCTURE DEVELOPMENT

COMMERCIAL/INDUSTRIAL BUILDING ACQUSITION, CONSTRUCTION, REHABILITATION

OTHER COMMERCIAL/INDUSTRIAL IMPROVEMENTS

ED DIRECT: DIRECT FINANCIAL ASSISTANCE TO FOR-PROFIT BUSINESS

ED DIRECT: TECHNICAL ASSISTANCE

MICRO-ENTERPRISE ASSISTANCE

PUBLIC BENEFIT REQUIREMENTS Apply to special economic

development activities Certain public improvements

PUBLIC BENEFIT STANDARDS Jobs

$50,000/individual$35,000/aggregate

Services to low/mod$1,000/individual$350/aggregate

Exception from aggregate standards for certain activities

NATIONAL OBJECTIVES

LOW/MOD BENEFIT

SLUM/BLIGHT

URGENT NEED

Area Benefit Limited Clientele Housing Jobs Area

Urban Renewal Spot

“CROSS CUTTING” REQUIREMENTSExamples: Davis-Bacon Environmental review

SECTION 108 LOAN GUARANTEE PROGRAM ADMINISTERED AS PART OF CDBG

PROGRAM

ELIGIBLE APPLICANTS

CDBG entitlement recipientsCDBG entitlement recipients Metropolitan citiesMetropolitan cities Urban countiesUrban counties

State-assisted small citiesState-assisted small cities

MAXIMUM AMOUNT

5 TIMES CDBG Less: Outstanding Amounts

LOAN TERMS

Up to 20 year term Variable/Fixed rate Collateral:

Pledge of CDBG fundsOther

THE SECTION 108 GUARANTEE PROGRAM

HUD

GuaranteePledge of CDBG

Funds

Guarantee

Locality

Investors

Interim Lender