The Delta Community Capital Initiative (DCCI) is a collaborative effort among three federal agencies - the Department of Housing and Urban Development (HUD), the Department of the Treasury - Community Development Financial Institutions Fund (CDFI Fund), and the Department of Agriculture – Rural Development (USDA-RD).The DCCI’s goal is to increase access to capital for affordable housing, business lending and community facilities in the chronically underserved and undercapitalized Lower Mississippi Delta Region. Specifically, it will provide direct investment and technical assistance to community development lending and investing institutions that focus on affordable housing, small business and community facilities to benefit the residents of Lower Mississippi Delta Region.
HUD, USDA-RD and the CDFI Fund have all identified the lack of capacity among organizations serving the Delta Region and similar persistent poverty communities as a limiting factor in the effectiveness of federal programs. Inconsistent availability of limited public funding in any one region or community plays a role in this because organizations specializing in affordable housing, small business support and community facilities cannot sustain themselves and grow. All of the agencies recognize that the targeted Delta communities and populations receive insufficient services because they lack organizations with the capacity to effectively respond to community needs. Conversely, higher-capacity organizations working throughout the Delta consistently cite lack of access to capital as a major barrier to expansion.
The DCCI focuses on improving Lower Mississippi Delta Region communities and creating asset building opportunities for Delta residents by helping local financial institutions improve their capacity to raise capital, and to lend and invest it in their communities. Strengthening local community development lenders and investors will also widen the channels through which larger private institutions and federal agencies can reach potential home owners, renters, business owners, facilities operators and service providers who need their support.
The CDFI Fund will:
USDA-Rural Development will:
Eligible Applicants: Applicants that are eligible to participate in this initiative are community development lenders and investors, which may be local rural non-profit organizations. Applicants do not need to be certified as Community Development Financial Institutions by the CDFI Fund at the time of application. If applicants propose to become certified as a CDFI, they should lay out milestones and timeframes toward the CDFI certification process in their application. Applicants may serve other markets than Delta residents and communities, using other sources of financing.
Goals: Funds may be used to support eligible activities that serve the following goals:
Eligible Target Markets: Eligible target markets for use of DCCI funds include geographic areas and/or populations, as described below.
Geographic areas include the 252 counties and parishes in eight states that make up the Lower Mississippi Delta Region, as defined by the Delta Regional Authority. The Delta Regional Authority (DRA) is a federal-state partnership working to stimulate economic development and governed by the Delta Regional Authority Board, comprised of the Federal Co-Chairman, appointed by the President and confirmed by the U.S. Senate, and the governors of the eight states. The eight states that are included in the region are: Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee. A full list of all 252 eligible counties and parishes can be found on the DRA website.
Applicants may also serve populations of borrowers or investees including:
Eligible Activities: Innovative housing and economic development uses, including but not limited to loan or investment capital, loan loss reserves, program staff costs, information systems, market studies, portfolio analyses, business planning, and other activities supporting the program goals.
Grant Amount and Term: The maximum amount of funds available for is $1,000,000. The maximum grant award will be up to $200,000. HUD will enter into a grant agreement with successful applicants for the performance period for up to 36 months.