Res 1992-011 - Laserfiche WebLink

Home Browse Search

the Sources and Uses of Funds in any new application for funding made to the State. This program income will actually be used at the time of the first drawdown. National Objective Since funds awarded under an economic development contract between the city/county and the Department (Texas Department of Community Affairs or Texas Department of Commerce) were awarded for economic development activities, recaptured funds/program income must be used for the express purpose of creating/retaining permanent jobs that will primarily benefit low to moderate income persons, which is the national objective for economic development activities. In order to comply with the national objective of expanding economic opportunities for persons of low to moderate income, at least 51 % of the permanent jobs created or retained by each business assisted with the RLF must be filled by persons who have a family income of less than 80% of the county median income. Applicable income figures/definitions approved by HUD (Section 8 income limits) annually must be used in making the low to moderate income determination. EIiQibilitv The business assisted with the RLF must be located in the same geographical area (city or county) as was originally awarded a contract from which this program income is being made available. Assistance may not be provided for projects intended to faci1itate the relocation of a business from one area within Texas to another, unless the relocating business provides satisfactory documentation that its only other alternative is to leave the State. An intrastate relocation project may be considered if there is no objection by the local government in which the business is presently located. A Contractor may not grant (the only exception to a grant would be in the case of infrastructure improvements to benefit a specific business if the contractor designates infrastructure as an eligible activity) revolving loan funds to a business, nor can funds be used for debt service, refinancing, or for paying the salaries of business principals. Sec. 105(a)(17) of the Housing and Community Development Act (42 U.S.C. Sec. 5305) authorizes the provision of assistance to private, for-profit entities when the assistance is necessary or appropriate to carry out an economic development project is eligible. Examples of assistance to for-profit entities may be: 1) a loan to purchase the land; 2) a loan to acquire a building; 3) a loan to construct a building or renovate an existing building; 4) a loan to purchase machinery and equipment; 5) a loan to provide working capital (see ineligible types of working capital); 6) infrastructure improvements (which would be located on public land) to benefit a specific business; - 3-