Texas Department of Agriculture presentation at LCRA Economic Development Forum in Austin on Dec. 16 2011.

1. Texas Department of Agriculture
Office of Rural Affairs
LCRA Community and Economic Development
Open House
December 16, 2011
Michael West
Todd Staples, Commissioner

2. Rural Economic Development Resources
• Federal
– USDA, EDA, SBA
• State
– Governor’s Office
– Texas Department of Agriculture
– Texas Workforce Commission
• Regional and Local
– COGs
– Chambers, Small Business Development Centers, etc.

3. Trade and Business Development
• Financial
– TCF
– J4T
– TAFA
• Non- Financial
– GoTexan Marketing
– CRC – Certified Retirement Community
– TRIP – Texas Rural Intern Program
– Broadband Mapping

7. Texas Capital Fund
funded with Community Development
Block Grant (CDBG) monies from the U.S.
Department of Housing and Urban
Development (HUD)

8. 2011 TCF Advantages
• A new short form application
• Open application process
• Awards Monthly

9. TCF Job Creation Programs
• Infrastructure Development
– Funds for public/private infrastructure
– Encourages new business development and expansion
• Real Estate Development
– Funds for Acquisition, New Construction or
Rehabilitation
– 0% Interest Loan up to 20 years
• Funding $50,000 to $1.5 Million

10. TCF Rural Downtowns
• Main Street Development
• Downtown Revitalization
– Awards from $50,000 to $150,000
– Funds for public infrastructure in applicant's
designated downtown area
– Aids in eliminating handicap barriers and
deteriorated conditions in downtown areas

11. Jobs For Texas
• Jobs For Texas, or J4T, is an innovative
program designed to increase small
businesses’ access to capital and enable
private entrepreneurs to make market-driven
decisions to grow jobs.
• $46.5 million award from U.S. Department of
the Treasury as part of the State Small
Business Credit Initiative (SSBCI).
• Anywhere in Texas!!!!!!

12. Jobs For Texas
• J4T – Loan Guarantee
– $10 Million
– Your Local Lender
• Bank, Credit Union, CDFI
– 50% Loan Guarantee
• J4T – Venture Capital
– $27 Million
– Two Partner VC Firms
• Advanced Capital Partners
• Enhanced Capital

13. Texas Agricultural Finance
Authority
• Maybe you are not a Farmer/Rancher, but I
bet you Know One!
• And your rural area depends also on their
success.
• Financial Resources
• Grant Funds

14. TAFA Overview
 Agricultural Loan Guarantee (ALG)
 Interest Rate Reduction (IRR)
 Young Farmer Interest Rate Reduction (YFIRR)
 Young Farmer Grant (YFG)

15. TEXAS CDBG
The Texas Community Development Block
Grant Program is now in the Office of Rural
Affairs in the Texas Department of
Agriculture.

16. CDBG Replaced 8 Programs!
• Urban Renewal
• Open Space
• Neighborhood Development
• Neighborhood Facilities
• Public Facilities
• Historic Preservation
• Model Cities
• Water and Sewer Grants

17. CDBG Primary Objective
• Development of viable “urban” communities
by providing:
• Decent Housing
• A suitable living environment; and
• Expanding economic opportunities
• The primary beneficiaries of the program are
persons of low/moderate income.

18. “Block Grant”
• CDBG funds are allocated by HUD as a
“block grant” based on a HUD formula.
– Based on population and poverty
– Flexibility

19. CDBG – National Objectives
All proposed CDBG activities must meet either:
 1. Principally benefit low- and moderate-income
persons;
 2. Aid in the elimination of slums or blight; or
 3. Meet other community development needs of
particular urgency which represent an
immediate threat to the health and safety of
residents of the community

20. Ineligible Activities
• Construction of buildings and facilities used for the general
conduct of government (e.g. city halls, courthouses, etc.);
• New housing construction, except under very limited
circumstances;
• The financing of political activities;
• Purchases of construction equipment (generally);
• Most operation and maintenance expenses

21. CDBG - History
Housing and Community Development Act of 1974
The introduction of the CDBG program in 1974 signaled a
move away from individual categorized federal
development assistance programs towards the block
Community Development Block Grant
(CDBG)
grant model, which gives communities broad latitude in
using funds for a variety of development activities. The
Omnibus Budget Reconciliation Act of 1981 authorized
states to administer the CDBG programs.
US Department of Housing and Urban Development (HUD)

22. State CDBG Programs
• States are given wide latitude in the
design/implementation of their programs.
• Maximum Feasible Deference:
“Secretary will give maximum feasible deference to the
State’s interpretation of the statutory requirements and
the requirements of the regulation...”
(24 CFR Part 570.480(c))

23. Eligible Applicants
• Cities < 50,000 in population
• Counties < 200,000 in population

24. State CDBG Program in Texas
 Largest “State CDBG” program in the nation
(based on dollars granted)
 Serves:
 1,015 cities
 244 counties

25. State CDBG – Fund Allocation
FY11 Allocation: $66,604,737

26. Community Development (CD)
Fund
• Finances many different activities, although
most funds are for Water /Waste Water -
Public Facilities
• Largest Fund Category in TXCDBG
• Applications are taken every two years.
Applications are ranked for two years of
TxCDBG funding.

27. State CDBG – Example

28. Regional Review Committees
• One Regional Review Committee (RRC) in
each of the 24 COG regions.
• RRC members establish regional priorities and
the RRC’s application scoring factors.
• The TxCDBG state staff (TDA) score is only
10% of the RRC total score.

29. Scoring

30. Colonia Fund
• Colonia Construction Fund – generally water/sewer/septic
tanks/service connections.
• Colonia Economically Distressed Areas Program Fund
• Colonia Planning Fund
• Colonia Self-Help Centers Fund (2.5%) – Administered by the
Texas Department of Housing and Community Affairs (TDHCA)
through an Inter-Agency Agreement with TDA

31. Disaster / Urgent Need Fund
• Federal Declarations – TxCDBG funds the
county or city’s source of funds for the FEMA
required 25% match.
• State Declarations – TxCDBG is the only source
of disaster relief assistance for eligible
counties & cities.

32. Small Towns Environment Program
• “Self-Help” Fund – driven by local community
volunteers performing work on the project.

33. Planning and Capacity Building
Fund
• Provides funds for cities and counties to prepare
planning activities that assess local needs,
develop strategies to address local needs, & build
or improve local capacity.

34. For Assistance, Please Contact:
Texas Department of Agriculture
Michael West
512-463-4320
finance@TexasAgriculture.gov
Web site: www.TexasAgriculture.gov