Petenwell Park Improvements | Adams County, WI

Funding FAQs - Question #2

Amanda Rethwisch | with 0 Comments


Funding FAQs - Question #2

As you’ve heard in newsletters from previous months, grant programs often require that applicants commit to providing a ‘local match’ to fund a portion of project costs. There are a number of other funding sources out there that can be used to fund that local match, meaning that you can pay for that next project without dipping into your community’s general funds!
 
What are some sources of matching funds for CDBG Grants?
DNR – For our Iowa clients, the most common source for matching funds is the Iowa DNR’s State Revolving Fund (SRF) low interest loan program, which is administered by the Iowa Finance Authority. These loans are typically allocated for 20 years at an interest rate of 1.75%, with a 0.25% administrative fee.
 
It should be noted that the SRF Program also offers a Planning and Design Loan that is a three-year, 0% interest loan for preliminary engineering, design engineering, legal fees and other costs associated with the preparation of a project. These loans are rolled into a construction loan once the project moves to construction.
 
USDA – Rural Development – USDA has a grant/loan program that can also be matched with CDBG funds. Grant amounts and interest rates depend on the municipality’s median household income.
 
Local Option Sales Tax (LOST) – Some communities have a local option sales tax that can provide funds for capital improvements – these can be used to fund a local match.
 
Tax Increment Financing (TIF)Past issues of our newsletter have dived further into the details of Tax Increment Financing (TIF), but using the increased revenues that TIF districts capture is a great option for fulfilling local match requirements. Existing or future, unallocated TIF revenues can fund your local match. 

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