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COMMUNITY FACILITY GRANTS
RD INSTRUCTION 3570-B |
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The purpose of the Community Facility Grant Program
is to assist in development of essential community facilities in rural areas. An essential community facility is a public
improvement needed for beneficial and orderly development of a rural community and is operated on a non profit basis. |
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Eligible Applicants |
- Public bodies such as a municipality, county and special purpose districts such as nursing home districts
- Not-for-Profit corporation
- Federally recognized Indian Tribe
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Population Limit |
Grants will not be made in a city or town with a population in excess of 20,000 population.
Priority will be to communities less than 5,000 population. |
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| Income Limit |
Grants will not be made in a city or town with a median household income of more than 90% of
the state non-metropolitan median household income. Currently, 90% of the state non-metropolitan household income equals
$35,138. Priority will be given to communities with a median household income below 60% of the state non-metropolitan median
household income. |
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| Grant Limits |
In no case will the grant amount exceed 75% of the project costs. There are four levels of
percentage of grant assistance ranging from 75% down to 15%. Percentage of grant assistance is determined by population
and income. State’s allocation appears to be no more than $200,000. Grant assistance to a particular project cannot exceed
50% of the state’s allocation. |
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| Test for Credit |
Applicant must certify and USDA Rural Development must concur that it is unable to finance the proposed
project without the grant assistance |
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| Eligible Grant Purposes |
Construct, enlarge, extend or otherwise improve essential community
facilities including, but not limited to:
- Health Services
- Community, social or cultural services and facilities
- Purchase of major equipment which will provide an essential service to rural residents (such as ambulance and fire truck
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| Ineligible Grant Purposes |
- Pay any annual recurring costs such as purchases and rentals that are generally considered to be operating and maintenance expenses
- Refinance existing indebtedness
- Pay Interest
- Construct or repair electric generating plants, electric transmission lines or gas distribution lines to provide
services for commercial sale
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Pre-Application/
Application |
- Standard Form 424-2, Pre-application
- State Intergovernmental Review
- Applicant’s certification on other credit
- Supporting documentation
- Current financial statements
- Audit Organizational documents (if non profit)
- Certificate of Incorporation
- Articles of Incorporation
- Bylaws
- Existing debt instruments
- Project write up and information on the applicant
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