DOH Federal Government Grant Proposal

HUD Innovation Activities in Rural Housing & Economic Development

For FHIPs show both initiative and component

For illustrations purposes some actual proposal content was redacted from the original proposal. Microbusiness and Housing Development Company non profit housing provider is pleased to submit its proposal in response to the SuperNOFA regarding the Rural Housing and Economic Development Program. Last year our agency was awarded $700 in RHED funds to establish construction load to building housing for low income families in rural Arizona. The contract with HUD was signed in 2006.

These monies leveraged other funding for our program. For example we have received an additional $500 from local organizations and committed it to the project. The first funding allowed us to build housing units for low income families. The need is great in rural Arizona.

Although the first award is for three years we have been able to commit these funds very fast in response to significant needs in our area. Therefore we are submitting second proposal to help us continue the work and other economic development activities. The availability of Rural Housing and economic development funds has made tremendous impact on rural areas in Arizona. For illustrations purposes some actual proposal content was redacted from the original proposal.

Assurances – Non Construction

The Worksheet template is typically used only for government grant proposals that require using very specific worksheet. These required worksheets are typically forms provided by the government agency you are submitting the proposal to. There are many different agencies and also different RFPs for each agency. If you are submitting proposals to different agencies or RFPs make sure to use the forms supplied by the agency for the specific RFP you are responding to.

Forms may be titled the same and appear similar between different agencies and RFPs; however there could be differences. Make sure to get the most up to date form you are required to use from the government agency web site from which you got the original RFP instructions. Remove this instructional text and replace it all with the government agency supplied worksheet. This template is to be replaced with copy of the government agency Assurances – Non Construction Programs document.

This document is supplied by the government agency.

Abstract

The Microbusiness and Housing Development Company seeks $500 of Rural Housing and Economic Development funds to support the Innovation in Housing Program. RHED funds are to be used to offer direct economic development assistance to retain and expand existing small businesses and micro enterprises in need of growth or guidance in their technologies and communications capabilities thus helping to bridge the digital divide. Businesses engaged by the project will be located in the Tempe AZ area and other towns located on the US Mexico border. The project has several phases the first months of the project will provide low interest micro loans to small businesses and the micro enterprise borrower.

These loans are often used for working capital equipment or inventory improvement. SBA loan funds will be coordinated with our effort which offers zero interest loans funded by RHED. Technical assistance will also be offered to help these businesses assess their technology needs identify new business opportunities stabilize their organizations and sustain the expansion of their businesses.

Initial funds will help small businesses effect jobs and offer the opportunity for compliant residents to obtain living wage. Buy leveraging funds from RHED we are able to assist small businesses located in the EC EZ region. We project that the impact over five years will result in economic stabilization increased technology application and capabilities and assistance provided to over small and micro enterprise businesses.

Capabilities

The Microbusiness and Housing Development Company is certified development financial institution CDFI incorporated in as nonprofit. Our mission is to facilitate "self sustaining rural communities" in which economic opportunity exists for all. We are an affiliate of larger educational consortium that has long history of providing services in rural Arizona. Our company has adequate resources e.g. staff procedures methodologies and experience to execute the work plan described in Rating Factor 3.

We have six regional offices across the state which have lent in excess of $30 million in rural Arizona. We also provide full range of financial tools products and counseling to our clients. These products will compliment the grant as follows.

Providing small business loans up to $5,000 to finance business and community development projects in rural areas often to expand businesses create employment opportunities or save existing jobs. First time micro loans to be used as working capital inventory or equipment. Compliment USDA Intermediary Relending Program, Fixed asset loans, Blended mortgage loans and Loans for redevelopment of community facilities owned by other nonprofits that are social educational or health care oriented for low income families.

Qualifications

Community development officers; four loan packagers one loan underwriter processor and an asset recover manager. Worked closely with community based organizations and logged over years experience in technical assistance to housing & economic development projects. Loan Package Experience for full range of housing projects e.g. Scattered sites multi unit housing subdivisions and economic development projects.

Financial Management and Compliance with Federal Accounting Standards. Experience with federal accounting standards.

Program Design and Development

Assembling Teams for Housing Projects and Operating Budget Expertise.

Needs Assessment

Our region of Arizona includes small and isolated cities and are known as one of the poorest rural regions in the United States. Sometimes called "third world" by residents the area is blending of American and Mexican cultures. The population is predominantly Hispanic over 70% and the communities we serve include several of Arizona’s most crucial border crossings. With the collapse of the Mexican economy in the mid 1990’s there was an unprecedented migration to our area.

The decline of the peso and the growth of the North American Free Trade Act contributed to economic devastation on both sides of the border. The target area we have combined population. The area is strongly tied to Mexico vulnerable to its economic eccentricities and must respond to mandates from the federal government. Unemployment rates are substantially higher then the nation as whole.

It is currently about 5%. We also experience seasonal employment directly related to farm labor. According to the Arizona Department of Commerce major issue is the fact that the average weekly wage in the State is $600 while in our area it is $200.

One hundred percent of the children in our area are eligible for the Federal free lunch program.

Approach

The Microbusiness and Housing Development Company anticipates using the RHED funds to stimulate number of economic development activities in the rural communities in the Arizona Border Region. RHED funds in amounts up to $6 will be used to provide zero interest loans to qualified small and micro enterprise businesses to help them acquire or upgrade their equipment management information systems or communications facilities. The load can be blended with low interest SBA loan funds to use toward the purchase of additional inventory equipment or working capital. Our approach is to blend the two sources of funding and create substantial source of very low interest rate loans available to stimulate the economy.

The infusion of $500 into the local economy will strengthen the programs ability to meet the needs and build stronger capacity for small and Microbusiness enterprises in the area. A recent audit of our programs validated the success we have using this approach for example.

The average weekly wag of newly created or retained jobs is $10 per hour.

Policies

The policies and procedures governing our operation of our lending programs were established years ago and are modified in accordance with local regional state and federal laws. We use management plan to improve the processing and monitoring of all loans. Our plan provides for risk mitigation strategies flexible repayment plans collateral requirements and promotes affirmative action.

Our policy is to adhere to an aggressive lending strategy in order to capture the participation of residents and succeed in advancing the lives of our citizens. Our performance portfolio is constantly monitored and staff receives training quarterly.

Expected Results

By leveraging our RHED funds with SBA Loans we have shown an impact over the last five years that is anticipated to continue as follows. Created over jobs.

The program has regenerated the highest amount of reinvestment in the area.

Leveraging Resources

Our company is committed to offer its low interest Small Business Administration loans for small and micro businesses operating along the Arizona Mexico border. The loan fund is used as leverage with RHED funds to provide substantially higher leverage of 50% desired funds. Additionally the SBA is providing in kind contribution to the project consisting of office space and supplies.

Finally we added training program for potential borrowers to assist them with their applications money management and research for their businesses.

Coordination

Some of our clients are social service agencies faith based organizations and community housing development organizations. We serve non profit and for profit organizations that are directly involved with providing housing for the poor. By working through blended program we are able to offer the best of both worlds to potential clients. Additionally we solicit other funds from the USDA Intermediary Lending Program for pre site development and site costs and community facilities.

We have experienced blended loan funds working with Wells Fargo Bank and the U.S. Treasury Department $2,000. Such loans are used for low interest construction projects for low income housing.

Another element of our coordination effort has been with schools. We work to communicate to residents about new loan initiatives. We are currently working with network of charter schools to provide them with sites for community meetings classroom instruction and computer training facilities. We also collaborate with our local community and year colleges.

Some important programs are their small business learning centers that work jointly with us to advance our clients. Finally we participate in the Main Street Program for downtown revitalization in all of our communities.

Documentation

Area Served is Rural. Rural Housing and Economic Development funds will be used to provide direct economic development assistance for citizens along the U.S. Mexico border also known as the Arizona Border Region.

All three of the communities we serve are designated as within an EZ EC Communities as described by the Department of Housing and Urban Development and the U.S. Department of Agriculture. Certification of Consistency with the EZ EC Strategy Plan. I certify that the proposed activities projects in this application are consistent with the Strategic Plan of Federally designated Empowerment Zone EZ Enterprise Community EC an Urban Enhanced Enterprise Community or Strategic Planning Community.

I further certify that the proposed activities projects will be located within the EZ EC Urban Enhanced EC or Strategic Planning Community and will serve the EZ EC Urban Enhanced EC or Strategic Planning Community residents. For illustrations purposes some actual proposal content was redacted from the original proposal.

Certifications

Company is certified to perform the work required of this project. The following certifications have been acquired by Company from the appropriate agency. Use the Certifications template to outline the certifications you have acquired that are required for the project.

Government grants frequently require certifications to be included in the proposal. Certification Insert certification #. Agency providing the certification Authority. Briefly describe the certification and how it applies to this project.

Include copy of the original certification if required by government grant. Original copies are typically attached on their own pages in the proposal. Certification Insert certification #. Agency providing the certification Authority.

Federal State City etc. Briefly describe the certification and how it applies to this project. Include copy of the original certification if required by government grant.

Original copies are typically attached on their own pages in the proposal. This template was not required for the final proposal submitted to the government agency so it was not filled in. It is included in the sample as an optional template the proposal writer could have added.

The final proposal submitted to the agency deleted this page from the framework. For illustration purposes the certification forms for this proposal have not been included. Certification forms are provided by the government agency you are responding to. Rural Housing and Economic Development Program RHED.

Rural Housing and Economic Development Grant Activities List. For illustrations purposes some actual proposal content was redacted from the original proposal.

SBA Form

The Supplied Form template is typically used only for government grant proposals that require very specific form. These required forms are typically forms provided by the government agency you are submitting the proposal to. There are many different agencies and also different RFPs for each agency.

If you are submitting proposals to different agencies or RFPs make sure to use the forms supplied by the agency for the specific RFP you are responding to. Forms may be titled the same and appear similar between different agencies and RFPs; however there could be differences. Make sure to get the most up to date form you are required to use from the government agency web site from which you got the original RFP instructions.

Remove this instructional text and replace it all with the government agency supplied form. This template is to be replaced with the Small Business Association SBA form.

SBA Form 147

This form is supplied by the SBA and or the government agency you are applying to.

Standard Form – Modification of Contract

The Supplied Form template is typically used only for government grant proposals that require very specific form. These required forms are typically forms provided by the government agency you are submitting the proposal to. There are many different agencies and also different RFPs for each agency.

If you are submitting proposals to different agencies or RFPs make sure to use the forms supplied by the agency for the specific RFP you are responding to. Forms may be titled the same and appear similar between different agencies and RFPs; however there could be differences. Make sure to get the most up to date form you are required to use from the government agency web site from which you got the original RFP instructions. Remove this instructional text and replace it all with the government agency supplied form.

This template is to be replaced with the Standard Form 30. This form is supplied by the government agency you are applying to. All costs approved on this budget must meet the tests of necessity reasonableness allowability and allocability in accordance with applicable cost principles applicable to this award.

All costs charged to this project are subject to audit. Recipients are responsible to insure proper management and financial accountability of Federal funds to preclude future cost disallowances. Payment will be made in advance or by reimbursement. For illustrations purposes some actual proposal content was redacted from the original proposal.

Commitment Letters

The following are letters of commitment from the community including insert where they are from in general such as organizations nonprofits individuals corporations etc. Use the Commitment Letters template to outline letters of commitment you have received from your partners and sponsors. Examples include organizations that have written letters in support of your proposal and will be providing assistance time materials staff money etc..

Note that providing letters of commitment carries more weight than providing letters of support or list of supporters. Add firm commitments you have obtained for tangible materials to be delivered in support of the project. You can either attach your actual letters of commitment to the proposal or provide them on request separate from the proposal. Insert where the letter is from company organization etc.

Insert contact name here Phone. Insert contact phone here E mail. Insert contact mail here Insert URL to their web site here Insert description of the tangible support that will be provided.

Commitment letters for the U.S. Department of Housing and Urban Development can also include.

Optionally insert copy of the original letter of reference here. Each letter should start on new page. Add page breaks as needed. You can also attach letters at the end of the proposal or provide copies on request.

Insert where the letter is from company organization etc. This template was not required for the final proposal submitted to the government agency so it was not filled in. It is included in the sample as an optional template the proposal writer could have added.

The final proposal submitted to the agency deleted this page from the framework.