Hollister
– Jeff Pyle, Hollister’s economic development manager, recently
told the City Council that he has more than $1 million in Community
Development Block Grant money – and he needs to spend it.
Hollister – Jeff Pyle, Hollister’s economic development manager, recently told the City Council that he has more than $1 million in Community Development Block Grant money – and he needs to spend it.
Pyle said most of the money comes from properties that were renovated with housing rehabilitation loans. The properties have been sold, so the loans have been paid off.
“We don’t normally have that much money get paid off and paid back at the same time.”
It’s so much money, in fact, that the state has told the city it has “an excessive accumulation of federal funds,” making Hollister ineligible for CDBG money until it spends some of those funds. Pyle said he’s submitted a reuse plan to the state that divides the money up into three accounts: 50 percent into the Economic Development Revolving Loan Account; 25 percent into the Housing Rehabilitation Revolving Loan Account; and 25 percent into the Community Development Block Grants Account. Pyle said this distribution is typical.
“I guess we could have divided the money some other way, but pretty much follows the patterns of how communities do these,” Pyle said.
So who’s eligible for this money? Pyle said the economic development loans go to businesses that want to expand or relocate, and although there are no official guidelines, the loans are usually between $50,000 and $100,000.
“We’re looking at two things: jobs and revenue to the city,” he said. “So if you’re going to expand and add new workers, that’s a plus, and so is the possibility of generating new sales tax revenue.”
He added that in the past, economic development loans have been used to repair some of the damage from the 1989 earthquake.
Brenda Weatherly, executive director of the Hollister Downtown Association, says this funding is also an important part of current efforts to revitalize the city’s downtown.
“They’re definitely important,” she said. “They make many of these (revitalization) projects affordable for people.”
Housing rehabilitation loans are intended to help property owners maintain or renovate their homes. Again, there are no official limits on the size of the loans, but Pyle said housing loans are usually between $15,000 and $20,000.
“It’s just good basic maintenance to reinvest in your housing stock,” he said.
Pyle also noted that although CDBG housing loans are supposed to go to people who are making 80 percent or less of the community’s median income, it’s no longer a requirement, since the money is being reused.
“It’s not a hard and fast rule, but it’s a good guideline to stick to,” Pyle said.
The third funding category is a grant, not a loan, and it’s intended for nonprofits and community groups that seek to help low-income, minority or underserved communities. Pyle said that for now, this grant money is being distributed on a first-come, first-serve basis.
“The only constraint is that the money will eventually run out,” he said. “It could be as little as $5,000 or as much a $40,000 or $50,000.”
Any requests for grants or loans must be approved by the City Council. As required by law, the Council held a public hearing regarding the reuse plan at its last meeting, but there were no community members present who wanted to comment.
Pyle said anyone interested in applying for a loan or a grant should contact him at 831-630-5103 or [email protected].
“If people have an idea but aren’t quite sure how to present it, I’d be glad to help them,” he said.
Anthony Ha covers local government for the Free Lance. He can be reached at 831-637-5566 ext. 330 or [email protected].
