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Community Development Program |
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Community Development Fund
This fund distributes the majority of the TCDP's grants
($40-$60 million in recent years). Funds are awarded once
every two years through 24 regional competitions for assistance
to eligible cities and counties to address public facilities
and housing needs. Eligible activities include infrastructure
projects such as sewer and water system improvements,
street, bridge, and drainage improvements, and housing
rehabilitation. At least 60% of a project’s beneficiaries
must be of low-and-moderate income. Grants typically range
from $100,000 to more than $500,000, depending on the
region; a $250,000 maximum is common in most of the regions.
Planning/Capacity Building Fund
Funding is available once every two years through a statewide
competition to provide assistance to cities for planning
activities that assess local needs and then develop strategies
and build local capacity that address those needs. The
community's residents must be at least 51 percent low
and moderate income. Common planning activities include
base map creation and studies of infrastructure systems,
housing, land use, economic development, parkland, and
capital improvements planning. Grants are based on population
size and typically range from $15,000 to $50,000. Match
is an effective requirement of the selection process.
Colonia Fund
The fund is available to counties to assist identifiable
unincorporated communities that are located within 150
miles of the Texas-Mexico border ("colonias"),
but outside the San Antonio Metropolitan Area. Sub-funds
include the Construction Fund (primarily first-time water
and sewer improvements) with grants up to $500,000; and
the Planning Fund with grants ranging from $25,000 to
$200,000.
Disaster Relief/Urgent Need Fund
This fund was established to assist cities and counties
in dealing with unexpected, emergency situations that
result in destruction of infrastructure and housing. Disaster
Relief funds are available after either a Governor's or
Presidential declaration of disaster in a certain area.
These "last-resort" grant funds are used in
conjunction with FEMA or other assistance when available
and range from $50,000 to $350,000.
Housing Infrastructure Fund
Funds are available to provide grants on a direct award
basis for the infrastructure development to support the
construction of affordable single family and multifamily
low to moderate income housing. The funds may not be used
for the actual construction costs of new housing.
Housing Rehabilitation Fund
Grants to cities and counties are offered once every two
years to provide deferred loan (essentially a grant to
the homeowner) assistance for the rehabilitation of existing
owner-occupied and renter-occupied housing units. Residents
are typically elderly or disabled and must be low-to-moderate
income. Applicants may apply for up to $250,000 in assistance
in lieu of applying for a Community Development Fund application
during the same two-year funding cycle.
TCDP Small Towns Environment Program (STEP) Fund
Funds are available for grants on a direct award basis
to cities and counties to assist communities that have
the need and willingness to solve water and sewer problems
through Small Towns Environment Program (STEP) self-help
techniques. STEP requires the community to lower the overall
costs of the project by at least 40 percent compared with
privately contracted work. Local volunteer organizers
and labor is most often used.
Texas Capital Fund
The Texas Capital Fund encourages business development,
retention, or expansion by providing infrastructure and
real estate development funds to qualified applicants
(non-entitlement cities/counties). Funds will be awarded
for the express purpose of creating new permanent jobs
or retaining existing permanent jobs, primarily for low-and-moderate
income persons. The TCF program is administered by the
Texas Department of Agriculture (TDA or Department) through
an interagency agreement with the Office of Rural Community
Affairs (ORCA). The Texas Capital Fund Infrastructure
and Real Estate Programs provide a way for an eligible
applicant to receive funds to make infrastructure and/or
real estate improvements to support a specific business
that is expanding or beginning operations in the applicant’s
jurisdiction. The business must create or retain jobs
for Texans. In order to comply with the national goal
of expanding economic opportunities for persons of low
and moderate income, a minimum of 51 percent or more of
all the jobs created or retained by the business must
benefit persons who qualify as low and moderate income
persons
Community Development Supplemental Fund
Funds under the Community Development Supplemental Fund
are allocated among the 24 state planning regions through
a formula using the same methodology that HUD uses to
allocate CDBG funds to the non-entitlement state programs.
Activities eligible under the Community Development Supplemental
Fund will be same as under the Community Development Fund.
Non-Border Colonia Fund
This fund is available on a biennial basis to eligible
county applicants for projects in severely distressed
unincorporated areas located farther than 150 miles from
the Texas-Mexico border. Non-border colonia areas would
be an identifiable unincorporated community that is determined
to be colonia-like on the basis of objective criteria,
including lack of potable water supply, lack of adequate
sewage systems, and lack of decent, safe, and sanitary
housing; and was in existence as a colonia before the
date of the enactment of the Cranston-Gonzalez National
Affordable Housing Act (November 28, 1990). Scoring of
all the selection criteria for Non-Border Colonia Fund
applications is completed by TCDP staff.
Microenterprise Fund
This fund is available on an annual basis for funding
from available program income through an annual statewide
competition. Applications received by the application
deadline are eligible to receive grant awards from available
program income. An eligible city or county submits the
application and must contract with a non-profit organization
(economic development corporation, community development
corporation, etc.) for the purpose of establishing a local
loan program that directly assists for-profit microenterprise
businesses. Proceeds from the repayment of the loans will
be retained by the non-profit organization. A microenterprise
is a commercial enterprise that has five (5) or fewer
employees, one (1) or more of whom owns the enterprise.
The microenterprise receiving the loan assistance must
commit to creating or retaining jobs that will not exceed
a maximum cost of $25,000 per job. The jobs created or
retained by the microenterprise must principally benefit
low and moderate-income persons. The funds cannot be used
by the microenterprise for debt service, refinancing,
or payment of the business owner’s salaries.
Small Business Fund
This fund is available on an annual basis for funding
from available program income through an annual statewide
competition. Applications received by the application
deadline are eligible to receive grant awards from available
program income. An eligible city or county submits the
application for the purpose of supporting for-profit small
businesses through loans meeting a gap financing need.
Retention of the proceeds from the repayment of the loans
will meet the same requirements for program income that
apply to Texas Capital Fund contracts. A small business
is a for-profit business with less than one hundred (100)
employees. The small business receiving the loan assistance
must commit to creating or retaining jobs that will not
exceed a maximum cost of $25,000 per job. The jobs created
or retained by the small business must principally benefit
low and moderate-income persons. The funds cannot be used
by the small business for debt service, refinancing, or
payment of the business principal’s salaries.
Section 108 Loan Guarantee Pilot Program
Section 108 is the loan guarantee provision of
the Housing and Community Development Act Community Development
Block Grant (CDBG) program. The loan is made by a private
lender to an eligible non-entitlement city or county.
The United States Department of Housing and Urban Development
(HUD) guarantees the loan; however, TCDP must pledge the
state’s current and future Community Development Block
Grant nonentitlement area funds to cover any losses. In
order to provide eligible non-entitlement communities
an additional funding source, the State is authorizing
loan guarantee pilot program consisting of one application
up to a maximum of $500,000 for a particular project.
An application guide containing the submission date and
qualifications will be available for applicants interested
in being selected as the pilot project under this program.
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