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Community Investment Program
Definitions of Eligible Areas
Brownfields
These are abandoned, idle, or underused industrial
or commercial properties where expansion or redevelopment is complicated by
real or perceived contamination. These areas are eligible for Brownfield Tax
Credits.
CAIP Area
A Community Adjustment and Investment Program (CAIP)
area as defined under 22 U.S.C. 290m-2 has lost a significant number of jobs
as a result of NAFTA. The CAIP promotes economic implementation of the adjustment
by increasing the availability and flow of credit, and encourages business
development and expansion in impacted areas. These communities receive financial
and technical assistance from USDA and SBA.
Champion Community
These communities applied for, but were
not awarded, ED or EZ status. These communities receive financial and technical
assistance from USDA.
Eligible Jobs
Permanent full- and part-time jobs (other than
construction jobs) computed on a full-time equivalent basis, that are at or
below 100% of the area median income (AMI) as published by HUD.
Enterprise Community (EC)
Designated by
USDA (rural) or HUD (urban), an EC community applies for designation based
on four key principles: economic opportunity, sustainable community development,
community-based partnerships, and strategic vision for change. In addition
to tax benefits and grants, these communities receive special consideration
for and assistance from federal programs.
Empowerment Zone (EZ)
Designated by USDA (rural) or HUD (urban),
an EZ community applies for designation based on four key principles: economic
opportunity, sustainable community development, community-based partnerships,
and strategic vision for change. These communities receive the same benefits
as ECs, plus additional grants and tax benefits for businesses within the EZ.
HUD
Department of Housing and Urban Development.
Indian Area
This means projects located in an Indian Area,
as defined by the Native American Housing Assistance and Self Determination
Act of 1996 (25 U.S.C. 4101 et. seq.), Alaskan Native Village or Native Home
Land .
Military Base Closing
This term refers to areas affected by
military closings (as defined by the Department of Defense at 32 CFR part 176).
Renaissance Zone
Created in 1977, a targeted-zone program
that waives all business-paid or resident-paid state and local taxes (except
local debt) for a term of years to spur new jobs and investment. Zone applications
are developed locally and awarded competitively by the Michigan Economic Development
Corporation ( http:\\mede.michigan.org/servcies/sitedevelopment/renzone/ ).
Rural Area
A rural area is a unit of general local government
with a population of 25,000 or less; an unincorporated area outside an MSA;
or an unincorporated area within an MSA that qualifies for housing or economic
development assistance from the USDA.
Small Business
A “small business concern” is defined by section
3(a) of the Small Business Act 15 U.S.C. 632(a) and implemented by the Small
Business Administration under 13 CFR part 121, or any successor provisions.
The Small Business Act defines an eligible small business as one that is independently
owned and operated and not dominant in its field of operation. According to
SBA size standards, most businesses are considered small. If you need further
clarification, please visit www.sba.gov or
contact the FHLBI at (317) 465-0368.
Targeted Income Area
Residential: area where the majority
of families are at or below 80% of the area median income. Commercial/economic
development: majority of families are at or below 100% of median income in urban
area ; majority of families
are at or below 115% of median income in rural area . The income level
may be determined at www.ffiec.gov or
by contacting the FHLBI.
Urban Area
An urban area is a unit of general local government
with a population of more than 25,000, or an unincorporated area within an
MSA that does not qualify for housing or economic development assistance from
the USDA.
USDA
United States Department of Agriculture.
Updated: February 25, 2008
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