The State of Economic Development Funding in 2024

Shifting Landscape in Community/Economic Development Funding The Community/Economic Development sector is experiencing a significant shift in funding priorities, driven by evolving policy and market trends. The recent emphasis on community development block grants (CDBG) and partnership development grants has opened new avenues for organizations focused on improving living conditions and economic opportunities for the homeless in Oklahoma. A key regulation governing this sector is the Community Development Block Grant Program's requirement for grantees to adhere to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200), ensuring accountability and transparency in the use of funds. ### Evolving Priorities and Capacity Requirements As the demand for community development initiatives grows, organizations are expected to adapt to changing priorities and capacity requirements. The funder's focus on housing, economic opportunities, and better living conditions for the homeless in Oklahoma has led to an increased emphasis on projects that demonstrate tangible outcomes and align with the CDBG program's goals. Organizations must now prioritize building their capacity to deliver effective programs, leveraging resources such as the USDA Rural Development Grant to support rural communities. The CDBG program's focus on funding activities that benefit low- to moderate-income persons, eliminate slums or blight, or address urgent community development needs has also driven a shift towards more targeted and impactful projects. Organizations must be aware of the delivery challenges unique to this sector, such as navigating the complexities of grant blocks and ensuring compliance with the CDBG program's requirements. One verifiable delivery challenge is the need to coordinate with multiple stakeholders to ensure that projects are aligned with community needs and priorities. To overcome these challenges, organizations must develop robust project management and staffing strategies, ensuring they have the necessary resources and expertise to deliver successful projects. ### Managing Risk and Ensuring Compliance Eligibility barriers and compliance traps can pose significant risks to organizations seeking funding. To mitigate these risks, organizations must ensure they meet the eligibility criteria for CDBG funding and adhere to the program's requirements. A key compliance trap to avoid is the failure to properly document project outcomes and impacts, which can lead to funding being withheld or revoked. Organizations must also be aware of what is not funded under the CDBG program, such as projects that do not meet the program's national objectives or do not provide sufficient benefit to low- to moderate-income persons. To measure the success of their projects, organizations will be required to report on key outcomes and KPIs, such as the number of individuals served, the number of housing units developed or rehabilitated, and the economic benefits generated by the project. Reporting requirements will be tied to the specific goals and objectives of the project, and organizations must be prepared to demonstrate the impact of their work. Q: How can our organization ensure compliance with the CDBG program's requirements and avoid common compliance traps? A: To ensure compliance, organizations should carefully review the CDBG program's requirements and guidelines, ensure proper documentation of project outcomes and impacts, and establish robust financial management and reporting systems. Q: What types of projects are most likely to be funded under the CDBG program, and how can our organization develop a competitive proposal? A: Projects that align with the CDBG program's goals, demonstrate tangible outcomes, and benefit low- to moderate-income persons are most likely to be funded. Organizations can develop a competitive proposal by clearly articulating their project's goals and objectives, demonstrating a thorough understanding of the community's needs, and outlining a robust project management plan. Q: How can our organization leverage other funding sources, such as the USDA Rural Development Grant, to support our community development initiatives? A: Organizations can leverage other funding sources by identifying opportunities that align with their project goals and objectives, developing a comprehensive funding strategy, and ensuring that their project meets the eligibility criteria for the additional funding source.