For years, the City of Madison has supported non-profit community facilities around the city, both with funds for initial construction of facilities and with ongoing operating support. Recently, we identified a need to support these organizations with funds they could use to improve their facilities as well. Our Community Development Division (CDD) developed the Community Facilities Loan (CFL) Program to provide low-cost financing to support non-residential development projects undertaken by non-profit organizations who acquire property or substantially expand, redevelop, improve or rehabilitate the property they currently own or lease. Our objective is to create or improve safe, accessible, energy efficient and well-maintained community and neighborhood facilities that can serve as focal points in neighborhoods, help bring people together, build relationships and strengthen neighborhoods.

CDD is preparing to restart Community Facilities Loan Program. In the 2022 Capital Budget, the Council allocated $1,000,000 to support this program. It will be used to supplement $500,000 of available Community Development Block Grant (CDBG) funds to support such projects. While CDD often offers funding via a Request for Proposal process, offering these funds through an on-going application process will allow the City of Madison to respond to proposals in a more timely fashion and, therefore, better serve our community partners.

The program guidelines focus on supporting non-profits that primarily serve low-to-moderate income households. Potential projects may involve neighborhood centers, non-profit operated child care centers, other program or community spaces and office or administrative space that supports agency activities. These funds cannot be used for operating expenses.

The addition of City funds will provide a more stable and flexible resource and allow us to avoid some of the federal regulations accompanying CDBG funds that have sometimes created administrative burdens or added costs for non-profits undertaking small capital improvement projects.

The program guidelines and application are posted on CDD’s website. Applications will be reviewed on a first-come first-served basis and final funding commitments will be subject to CDBG Committee review and Common Council approval.

Non-profits serve a vital role in Madison, filling gaps that government can’t with cultural and community connections that make them uniquely qualified to serve residents. I’m proud to make this funding even more accessible for these organizations.

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