Community Facilities Direct Loans and Grants

Community Facilities Direct Loans and Grants provide funding for essential community facilities (CF), such as municipal buildings, day care centers, and health and safety facilities. Examples include fire halls, fire trucks, clinics, nursing homes, and hospitals. CF loans and grants may also be used for such things as activity centers for the handicapped, schools, libraries, and other community buildings. Applicants must be unable to borrow money elsewhere at rates and terms to make the project affordable. Leveraging is highly recommended due to limited CF allocations.

Program Details

Eligibility: Applicants are public bodies (cities, townships, counties, or special districts), Indian Tribes, cooperatives, or other non-profit organizations. Based on 2000 Census, cities and villages must be under 20,000 in population for loans and grants. Grant recipients must have a median household income below $41,969. Applicants, other than municipalities, must show broad based community support.


Applications are scored on a priority point system based upon population, median household incomes, and if health and safety needs are being met by the proposal. The amount of grant funds provided for a facility shall not exceed 75% of the cost of developing the facility. Grants are limited to no more than 50% of the State allocation or $50,000, whichever is greater.


Maximum loan term is for 40 years or the useful life of the security, whichever is less.


Rate is dependent on the median household income of the borrower. The lowest current rate is 4.25%.


Usually a revenue bond, if the loan is to a public body, otherwise a note and a mortgage. Repayment is from revenue use of the facility and backed by taxes if a public body.

More Information: For more information, contact our State Office at (785) 271-2700.