(1) All applicants for DD RLF projects must
submit an application to the Department in a format prescribed by the
Department. Applicants must demonstrate that they have a viable downtown
development project and clearly identify the proposed uses of the loan
proceeds. Eligible use of the funds include such commercial and mixed-use
downtown development projects as real-estate acquisition, clearance,
development and redevelopment; construction, reconstruction and rehabilitation
of private buildings and public buildings (as approved by the Department); on a
limited basis as defined by the Department, purchase or lease of equipment or
other assets; and other downtown revitalization activities that the applicant
or other sub-recipients may be authorized to undertake through its enabling
legislation.
DD RLF funds will provide the permanent financing on a
project. The interim or construction financing on a project is arranged by the
applicant or end-use borrower once the project is approved. The use of DD RLF
funds for project administration purposes, working capital or program
operation, refinance of permanent loans or the establishment of local Revolving
Loan Funds (RLFs) will generally not be considered eligible activities.
(2) All activities must be within
the downtown area as defined by the Department. Generally, the downtown area of
a municipality is the core central business district primarily consisting of
commercial structures fifty (50) years or older and adjacent neighborhoods
consisting of historic residential structures that are zoned for commercial or
government uses.
(3) The eligible
mechanisms for making funds available under this programare:
(a) a loan from the Department to the
municipality, county, downtown development authority or other local development
authority who uses the funds directly to carry out the approved eligible
activity(s); or
(b) a loan from the
Department to a downtown development authority or other local development
authority who in turn contracts with or loans the funds to a DCA approved
end-use borrower to carry out the approved eligible activity(s).
(4) Regardless of the mechanism,
the ultimate financial responsibility to repay the loan funds and meet any
contractual obligation to the Department is noted within the executed
intergovernmental contract(s) among the various parties. This ensures the
Department that all obligations will be met.
(5) The Department reserves the right to
require immediate recapture of some or all of the loan funds or to raise the
interest rate on the loan funds upon transfer of project assets to an entity
other than the approved recipient or sub-recipient (unless specifically
approved by the Department) or upon any event that violates state law, the
public purpose of the loan program, any of the loan conditions, including
transfer of ownership in the sub-recipient borrower, or any intergovernmental
contract provision. All recaptured funds must be returned to the
Department.
Notes
Ga. Comp. R. & Regs.
R. 110-19-1-.04
O.C.G.A. ยง
50-8-8.
Original
grant description entitled "Eligible Activities" submitted
July 7, 1999.
Submitted:
Jan. 19, 2000.
Submitted:
May
23, 2005.
Submitted:
Aug. 15, 2007
Amended: F. Dec. 14,
2018; eff. Jan. 3,
2019.
