Compilation of Rules and Regulations of the State of Georgia
Department 110 - RULES OF GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS
Chapter 110-19 - DOWNTOWN DEVELOPMENT REVOLVING LOAN FUND (DD RLF)
Subject 110-19-1 - DOWNTOWN DEVELOPMENT REVOLVING LOAN FUND (DD RLF)
Rule 110-19-1-.04 - Eligible Activities

(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:

(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.