City staff urges application for $125,000 CDFI technical-assistance grant to jump-start certification

JOPLIN, Mo. — City staff and outside consultants told the Joplin City Council at a Feb. 10 work session that applying now for a U.S. Treasury CDFI Fund technical-assistance award could put the city on a path to Community Development Financial Institution (CDFI) certification and unlock larger federal funding sources.

Thomas Walters, the city's community development planner, said the effort grew out of housing needs identified while ARPA funding winds down and that a locally governed CDFI could help institutionalize investment. "We have a path forward tonight," Walters said, introducing the consultant team.

Craig Stanley, an expert who has helped channel more than $1 billion into distressed communities, recommended that the city file for the CDFI Fund's technical-assistance grant, which he described as a "low-hanging fruit" opportunity of roughly $125,000 to pay for consultants or staff time to prepare certification materials. He told council members there is an SF-424 filing requirement through Grants.gov and that a short internal timeline applies (staff noted the need to start the SF-424 process within days and cited a March 21 program deadline for subsequent awards).

Why it matters: CDFI certification opens otherwise restricted federal programs to certified entities, including the Capital Magnet Fund (grant awards up to the millions) and eligibility to participate in or leverage New Markets Tax Credit deals. Consultants said those programs can attract private capital into low-income census tracts, expanding affordable-housing and economic-development options.

Consultants described several program options: noncompetitive technical assistance awards to prepare an application; financial-assistance awards that can capitalize lending products; the Capital Magnet Fund (grant dollars that can support housing and down-payment assistance); a bond-guarantee program for long-term fixed-rate financing; and targeted initiatives such as healthy-food financing. Chris Lucas of AltCap, a CDFI, said CDFIs can craft a variety of loan products (microloans, small-business loans and revenue-based financing) tuned to local needs.

On structure and liability: Consultants said there are two primary approaches: partner with an existing certified lender or create an independent nonprofit CDFI. "We are not recommending or planning for Joplin to be the CDFI," a city staffer said, describing the partner model as quicker and less likely to carry direct financial liability for the city. Presenters explained that loan-loss reserves and capital-source rules determine exposure; structured appropriately, an independent CDFI does not automatically place the city "on the hook" for individual borrower defaults.

Council asked practical questions about foundations and partners. "Is Kauffman Foundation something we would potentially be working with?" a council member asked; consultants said that foundation's prior relationship had supported Kansas City entrepreneurs but that partnership reach varies and that other philanthropic or regional partners could be explored.

Local targeting and eligibility: Presenters stressed that program eligibility is census-tract driven and that communities can use a target-population approach where a project serves low-income borrowers in otherwise ineligible tracts. They also noted newly published census distress designations that can increase eligibility for certain programs in deeply distressed tracts.

Next step and timeline: Staff recommended applying for the $125,000 technical-assistance award in the current round and preparing internal capacity (or contracting help) to submit required Grants.gov forms quickly. Council did not take a formal vote but directed staff to continue work and to return with next steps as needed.

Sources and attributions: Quotes and program descriptions in this article are drawn from presentations and the Q&A at the Feb. 10 Joplin City Council work session, including remarks by Thomas Walters (city), Craig Stanley (consultant), and Chris Lucas (AltCap). The presenters provided examples of recent awards and program sizes during the meeting.

What comes next: If council approves pursuing the technical-assistance grant, staff will complete the SF-424 application through Grants.gov and report back on application status, partner options and any recommended organizational structure for carrying or partnering on CDFI certification.