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CDBG.F-2
<br />APPLICATION SUMMARY
<br />21) APPLICATION NARRATIVE AND PUBLIC BENEFIT NARRATIVE
<br />Provide a detailed narrn,uve of the proposed project describing.
<br />The roles of all Participating Parties, local governments, other government agencies, developers. and
<br />other parties whose actions or participation are necessary for the success of the project;
<br />Indian River County (the grant applicant) is applying. for CDBG funds to be used as a low Interest loan to a private for
<br />profit business and for grant administration activities. The low Interest loan will be used by the private business as
<br />parilai funding for the construction of an elder care facility and as partial funding for the facility's fixtures, furnishings
<br />and equipment. The facility Is classified by the State of Florida as an Assisted Llving Facility (ALF). The facility will
<br />be owned and operated by a private for profit organization known as CRA Care Centers, Inc, (The participating party),
<br />The facility will provide care Levels from nearly independent to extended care which involves some skilled nursing.
<br />Also, dementia core (Alzheimer's and other types of dementia) will be provided In a separate secured, specially
<br />designed part of the building. There are no other participating parties other than CRA Care Centers, Inc. The low
<br />Interest loan will be used as gap financing. CRA Care Centers, Inc. is able to qualify for only a portion of the total
<br />project costs, thus the need for gap financing. Also, in order to ensure a feasible project, the loan needs to be at a 4%
<br />Interest rate. If CDBG funds are not forthcoming, CRA will not be able to develop a feasible project and this much
<br />needed ALF will not be able to begin operations as planned. Failure to begin operation will also mean that jobs for
<br />low to moderate Income persons will not be realized.
<br />CRA estimates that within 24 months of grant award the ALF will be at 50 1/. capacity and that 26 Jobs will have been
<br />created. Within 30 months of grant award, the ALF will be at full capacity with 35 jobs anticipated. For grant scoring
<br />purposes, CRA is committing to create 26 jobs within five years of grant award. At the time of hiring, at least 51% of
<br />the new employees (14) will have low to moderate household incomes as defined by HUD income limits.
<br />How a national objective will be met pursuant to Rules 96-43 006(2)(b) and
<br />9B-43 011(3) and (4), Florida Administrative Code, and 24 G.F.R. Section 570.483 (b)(4). if a
<br />national objective is attained under the provisions of 24 C.F R. Section 570.483(b)(4)(iv)or (v),
<br />documentation must be provided with the application;
<br />A national objective will be met by the creation of new Jobs that will be made available to persons with low to moderate
<br />incomes. For grant scoring purposes, CRA Care Center, Inc. is comnriffing to create 26 Jobs within two yoars of grant
<br />award, At the time of hiring, at least $i% of the new employees (14) will have low to moderate household incomes as
<br />defined by HUD income limits.
<br />Why the CDBG assistance is needed in the proposed project,
<br />Indian River County (the grant applicant) is applying for CDBG funds to fund a low interest loan to a private for profit
<br />business. The loan will be used to as partial funding for the construction of a 42,500 square foot, 70 bed Assisted
<br />Living Facility (ALF), The ALF will be owned and operated by CRA Care Centers, Inc., a private for profit organization.
<br />Without the CDBG-ED tow interest loan, the proposed ALF would be unable to begin operations as planned. The loan
<br />Is serving as gap financing. Also, in order to ensure a financially feasible project, the loan needs to be at a 4% Interest
<br />rate. If COUG funds are not forthcoming, CRA wilt not be able to develop this much needed ALF and the planned that
<br />jobs for low to moderate income persons would not be realized
<br />All the activities to be undertaken as part of the project, without regard to lite funding source or
<br />whether the funding for the activity will be counted for leverage; and
<br />Indl�in River County (the grant applicant), through the Indian River Board of County Commissioners, is applying for a
<br />$750,000 CDBG grant that will fund a low-interest loan that will be provided to CRA Care Centers, Inc. The loan will be
<br />used as partial funding of an Assisted living facility (ALF) to be owned and operated by CRA Care Centers, Inc, Other
<br />project funding sources Include owner equity and a loan from a commercial lending Institution.
<br />The total ALF project cost, Including grant administration is $5,375,885. Funding sources and amounts Include
<br />$690,000 as a CDBG-ED loan to CRA Care Centers, $60,000 In CDBG-ED funds to Indian River County for
<br />administration, $4.279,660 as a commercial lending Institution to -in to CRA Care Centers, Inc. and $350,023 owner
<br />equity to be spent after the date of grant award. Owner equity funds will be used for operating deficit& and for loan
<br />fees, broker leer, and charges. Please note that this is an estimate and that ecla.af amount of Cwner 4aulty niuy
<br />change, For grant scoring purposes, we are claiming only $1,500,000 from the comrnerolat funding institution loan as
<br />private leverage.
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