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Township opens public comment on CDBG annual plan and Section 108 loan program for Drayton Plains
Summary
Development staff opened a 30-day public comment period on the Community Development Block Grant (CDBG) annual action plan and presented a proposed Section 108 loan program to fund economic development in the Drayton Plains district; anticipated HUD allocation is about $362,000 and the proposed loan pool would allow roughly $1.8 million in loans.
Scott Elifkin, development grant coordinator, briefed trustees on two related items: the annual CDBG action-plan public hearing and a proposed Section 108 loan program aimed at stimulating economic development in the Drayton Plains district.
Elifkin said the township is projecting a federal CDBG allocation of about $362,000 and expects program income of roughly $30,000; because the program is at or near exhaustion the board is keeping a small surplus in reserve. For the annual action plan the staff recommended allocating $179,000 to housing rehabilitation, $140,000 to code enforcement and the remainder to planning and administration (capped at 20%). No board action was required tonight; staff opened a 30‑day public-comment period.
On the Section 108 proposal, Elifkin described the loan program as a HUD‑guaranteed mechanism that could leverage up to five times the annual allocation; the township would underwrite loans for gap financing to incentivize private investment in the Drayton Plains subarea. He said the initial pool under consideration could approach $1.8 million, with minimum loans in the $50,000 range and maximums up to $500,000 depending on underwriting and public‑benefit standards tied to job creation for low‑ and moderate‑income persons.
Why it matters: CDBG funds support housing rehab and code enforcement for low/moderate income residents, and Section 108 loans offer a potentially large, repayable tool to attract private investment to a targeted commercial district. Staff will accept written public comment during the 30‑day window and return with a formal action item at a future date.
