16-14-040 Purpose.

   The purpose of the Neighborhood Opportunity Fund is:

   (a)   to promote growth within the downtown area through the floor area bonus provisions of Sec. 17-4-1000, and simultaneously generate new revenues for investment in business development and job growth in neighborhoods impacted by poverty, high unemployment, and other indicators of economic deprivation;

   (b)   to strengthen neighborhood commercial corridors in Qualified Investment Areas; and

   (c)   to address the decline of private investment in Qualified Investment Areas that damages the City’s overall economic competitiveness, impedes the sustainable and equitable development of the City as a whole, contributes to inequality and poverty, and has a detrimental effect on the City’s quality of life.

(Added Coun. J. 5-18-16, p. 24993, § 2; Amend Coun. J. 2-19-20, p. 14012, § 5; Amend Coun. J. 7-17-24, p. 13743, § 3)

16-14-050 Qualified investment areas.

   The Neighborhood Opportunity Fund shall be used for projects located in or directly benefiting Qualified Investment Areas. The Commissioner shall publish a map of Qualified Investment Areas and update the map at least once every five years. The eligibility of any prospective project seeking funding under this chapter shall be based upon the map of Qualified Investment Areas which was current at the time of the project’s initial application to the Department.

(Added Coun. J. 5-18-16, p. 24993, § 2; Amend Coun. J. 2-19-20, p. 14012, § 6; Amend Coun. J. 7-17-24, p. 13743, § 4)

16-14-060 Authorized uses.

   The following uses are authorized uses of the Neighborhood Opportunity Fund:

   (a)   commercial establishments that provide, on a permanent or short-term (pop-up) basis, goods and services which complement and revitalize the areas in which they are located, and which may include, without limitation, grocery stores, retail establishments, and restaurants that sell food primarily for consumption on premises;

   (b)   industrial or manufacturing projects that process raw materials or parts into physical goods and which complement and revitalize the areas in which they are located;

   (c)   cultural establishments that provide, on a permanent or short-term (pop-up) basis, recreational and educational opportunities which complement and revitalize the areas in which they are located;

   (d)   mixed-use projects consisting of one or more non-residential uses, plus at least 10 or more residential units;

   (e)   incubation, mentoring, and training of small businesses that otherwise qualify as authorized uses under subsections (a) through (d) of this section; and

   (f)   loan loss reserve funding arrangements granted to qualified Community Development Financial Institutions (CDFIs) or other qualified delegates for the purpose of reducing the risk of lending private capital to NOF program participants otherwise having difficulty qualifying to borrow using traditional business debt instruments from mainstream lenders.

(Added Coun. J. 5-18-16, p. 24993, § 2; Amend Coun. J. 2-19-20, p. 14012, § 7; Amend Coun. J. 7-17-24, p. 13743, § 5; Amend Coun. J. 9-18-24, p. 16322, § 1)

16-14-070 Eligible costs.

   The Neighborhood Opportunity Fund may be used for the following costs when such costs are necessary or desirable for, or in support of, one or more authorized uses:

   (a)   costs to acquire, rehabilitate, or demolish substandard, obsolete, or vacant buildings, subject to the following limitations:

      (i)   for Group I Awards, eligible costs under this subsection (a) shall not exceed 75 percent of total project costs; and

      (ii)   for Group II Awards, eligible costs under this subsection (a) shall not exceed 50 percent of total project costs;

   (b)   costs to construct new buildings, subject to the following limitations:

      (i)   for Group I Awards, eligible costs under this subsection (b) shall not exceed 75 percent of total project costs; and

      (ii)   for Group II Awards, eligible costs under this subsection (b) shall not exceed 50 percent of total project costs;

   (c)   costs to plan, design, and construct public infrastructure directly related to project costs allowed under subsections (a) and (b) of this section;

   (d)   planning and design costs including, but not limited to, architecture, engineering, zoning, design, and feasibility study expenses, directly related to project costs allowed under subsections (a) and (b) of this section;

   (e)   financing costs related to project costs allowed under subsections (a), (b), (c), or (d) of this section;

   (f)   costs of job support used to recruit, hire, train, and retain job seekers who reside in Qualified Investment Areas for identified jobs created by projects funded by Group I Awards or Group II Awards;

   (g)   Small Business Development Costs, provided that such business support services costs shall not exceed 15 percent of the Neighborhood Opportunity Fund; and

   (h)   administrative, reporting, and monitoring costs and expenses of the Neighborhood Opportunity Fund, provided such costs and expenses may not exceed 15 percent of the Neighborhood Opportunity Fund.

(Added Coun. J. 5-18-16, p. 24993, § 2; Amend Coun. J. 2-19-20, p. 14012, § 8; Amend Coun. J. 7-17-24, p. 13743, § 6; Amend Coun. J. 9-18-24, p. 16322, § 1)

16-14-080 Administration.

   (a)   The Department shall administer the Neighborhood Opportunity Fund and all projects funded under this chapter. Each Group II Award shall require City Council approval. The Department may disburse Pre-Development Awards and Group I Awards through procedures established by rule, subject to the Group I Program Funding Limit; provided, that at the request of the Department, such grants may be disbursed by the Commissioner of Business Affairs and Consumer Protection. The selection of projects will be informed by community-based planning processes. Priority will be given to commercial projects that:

      (i)   have a positive, catalytic impact on a commercial corridor;

      (ii)   provide goods or services where those goods or services are lacking;

      (iii)   support a new or expanding small business;

      (iv)   have the potential to leverage other resources (private, state, federal);

      (v)   show a clear path to financial closing and construction start;

      (vi)   commit to hiring from Qualified Investment Areas; and

      (vii)   are economically viable and sustainable.

   (b)   The Commissioner is authorized to enter into grant agreements and all other agreements and ancillary documents necessary to implement this chapter, to prescribe application forms and other forms necessary to collect relevant information concerning participants and projects utilizing the Neighborhood Opportunity Fund, and to adopt such rules as the Commissioner may deem necessary for the proper implementation, administration, and enforcement of this chapter, including without limitation, rules setting forth criteria and guidelines for the selection of projects and disbursement of funds in a fair and equitable manner.

   (c)   The Commissioner shall post on the Department's website an annual report detailing the receipt and expenditure of funds from the Neighborhood Opportunity Fund.

   (d)   Subject to the availability of duly appropriated funds, the Group I Program Funding Limit shall be $75,000,000.00, up to $5,000,000.00 of which may be utilized for the purposes set forth in Section 16-14-060(f) of this Code, as of the effective date of this amendatory ordinance of 2024, unless such amount is increased or decreased by appropriate action of the City Council.

(Added Coun. J. 5-18-16, p. 24993, § 2; Amend Coun. J. 9-6-17, p. 54823, § 2; Amend Coun. J. 2-19-20, p. 14012, § 9; Amend Coun. J. 7-17-24, p. 13743, § 7; Amend Coun. J. 9-18-24, p. 16322, § 1)