The Community Development Finance Authority (CDFA) operates a comprehensive ecosystem that has supported the development of community-driven projects across New Hampshire for over 40 years. This ecosystem is structured into several phases – Concept Initiation, Planning and Development, Implementation, and Community Engagement – each playing a crucial role in guiding projects from early ideas to successful implementation and impact.
At the heart of CDFA’s ecosystem is the Concept Initiation phase, where community development ideas take shape. This phase focuses on building the capacity needed for communities and organizations to develop projects that align with their needs and goals. Following this, projects move into the Planning and Development phase. Here, the concepts are refined, feasibility studies are conducted, and strategic plans are developed to ensure the project’s viability. Finally, the Implementation phase brings these plans to life, ensuring that projects move forward and comply with current regulations. Community Engagement is an ongoing, overarching element of this ecosystem meant to ensure the project remains aligned with community needs and has the necessary technical assistance to support long-term success.
Planning Grants: Laying the Groundwork for Success
Within this ecosystem, CDFA deploys a variety of resources to support the Planning and Development phase of community development, economic development, and clean energy projects, namely planning grants. Planning grants are a subset of CDFA’s administration of the Community Development Block Grant (CDBG) program, a federal Department of Housing and Urban Development (HUD) program, which celebrated its 50th anniversary last year. CDFA can award up to $25,000 to eligible projects to support planning and feasibility-related activities that help determine whether a proposed project is viable. These grants are designed to support eligible organizations in the early stages of project development, helping lay a solid foundation before the project moves forward into full implementation.
Mollie Kaylor, Director of Housing and Community Development, works closely with municipal and nonprofit partners to maximize the impact of these resources and find creative solutions to community development challenges. The CDBG planning grants are focused on supporting planning activities for CDBG-eligible construction projects in the realm of housing, public facilities, or economic development. However, she says that there isn’t a one-size-fits-all type of planning grant. “We’re proud of having a resource that can meet you where you’re at and for your needs for a specific project,” she says.
Planning grants provide the resources needed to conduct essential studies and assessments that guide the direction of a project. This might include feasibility studies, market studies, income surveys, cost estimates, or even preliminary architectural and engineering designs. Additionally, planning grants can include specialized energy audit grants, which are particularly valuable for larger capital projects or specific energy initiatives, ensuring that these projects are both sustainable and energy-efficient.
Beyond focusing on a specific project, planning grants can also target community engagement, and help to provide contextualization of the community’s needs. Molly Donovan, Director of Economic Development, works to enhance the ecosystem that provides technical assistance, training, and capital for CDFA’s grantees.
“Planning grants can be used for community visioning and engaging the community to figure out what is the priority not only for this building, but for this block, for downtown, or a specific neighborhood,” she says.
Non-profit and municipal leaders who request planning grants often don’t come to CDFA with a lot of federal funding expertise. So, they hire outside experts, such as consultants or technical specialists, to conduct detailed assessments and provide informed guidance. This external support is vital, as it ensures that projects are not only well-planned but also aligned with community needs, regulatory requirements, and best practices.
Planning Grants are a Cornerstone of CDFA’s Strategic Support
CDFA’s commitment to supporting planning activities before implementation stems from the recognition that well-planned projects are more likely to succeed. By awarding these grants, CDFA helps organizations achieve a state of readiness that makes them more competitive and prepared when seeking additional funding for implementation. This readiness often translates into more robust projects that are equipped to overcome challenges and deliver long-term benefits to their communities.
However, it’s important to note that a planning grant doesn’t always lead to an immediate project coming forward for implementation. This is a situation Mollie Kaylor has experienced and considers to be an important part of the process:
“Although we try to make sure these resources are used for a project that ultimately is going to move forward, there can sometimes be unforeseen circumstances that result in that not happening. And that’s okay too because the community or the organization is learning why the project might not work,” she says.
Ultimately, CDFA considers the planning and development stages as strengthening for the organization or the municipality, regardless of the outcome. Planning grants don’t penalize recipients or request them to pay back the funds if the project does not advance. Molly Donovan echoes this sentiment, highlighting that studies done through planning grants are particularly helpful for town managers, planning commissions, or economic development committees.
“Having that planning work in front of them helps to educate them and builds their capacity to continue to do revitalization work into the future. It also doubles as training for staff to be able to move through that process more swiftly. Once you’ve been through a feasibility study as a community, then you know what is needed for the next project and you’re prepared to do that.”
Building Momentum and Ensuring Support with Planning Grants
The benefits of planning grants are both tangible and intangible. On the tangible side, the aforementioned planning documents not only provide clarity and direction but also save significant time and money in the long run by addressing potential issues early in the process. Moreover, the learning opportunities for municipal staff and grant administrators provide invaluable hands-on experience in managing public funds and navigating complex regulatory requirements, which can set the stage for future successful projects.
But another less obvious, yet indispensable, benefit of planning grants is their capacity to build momentum and get community buy-in for a development project. By moving projects from mere conversations to actionable plans, planning grants create a sense of progress and help build community consensus.
“Doing the planning work up front helps to bring people along on what the project can be. It leads to stronger community understanding and support, and it can build momentum for other work that needs to be done in the community,” explains Molly Donovan. “There’s a lot of evidence that once you’ve done one successful project, you’re willing to try another one and then another one. It signals to the community that there’s a clear process,” she adds.
Without proper planning, projects may struggle to gain traction, leading to delays or, in some cases, failure. This momentum is crucial, as it makes it easier to secure additional support and funding, lowering the initial barriers to getting a project off the ground.
“The credibility and the viability of the project are in the best interest of the organization that’s undertaking the project. I’ve received feedback that these studies and their results are critical to helping them leverage those additional funders or other support in the community,” recalls Mollie Kaylor.
To this point, Molly Donovan adds that the fact that “having an outside consultant who’s an expert bringing in this neutral information into the decision making brings additional trust with the community.”
Furthermore, planning grants allow organizations to connect data-driven insights to their project development. For example, a community might have a perceived need for more parking spaces, while the data reveals there’s a need for more childcare openings. This ensures that projects are not only feasible but also impactful, driving meaningful and necessary change in the community. By reducing the risk associated with project development, planning grants help organizations and communities gain valuable insights that can be applied to future initiatives.
Planning Grants in Action
Several successful projects have emerged from CDFA’s planning grants. These examples underscore the transformative power of planning grants. By investing in the early stages of project development, CDFA ensures that communities across New Hampshire have the tools, resources, and support they need to bring their visions to life. Planning grants are more than just a step in the process—they are the foundation upon which successful, sustainable, and impactful projects are built.
Mid-State Health Childcare Facility, Plymouth
Mid-State Health’s project in Plymouth is a standout example of how diligent planning leads to successful outcomes. Although they did not use CDFA funds for their feasibility study, the extensive research they conducted was instrumental in shaping the project. This comprehensive study not only assessed the need for a childcare facility but also informed the scale of the project, including the number of childcare slots and staffing requirements. As a result, the project secured multi-million-dollar funding from various sources, including CDFA’s public facilities and economic development programs, and is now a model for successful community-based development.
Brookview Cooperative, Northumberland
Another strong example is the work done by a manufactured housing cooperative in Northumberland, that utilized a planning grant from CDFA to evaluate and improve their utility infrastructure. The planning phase allowed them to conduct engineering studies to identify their most critical infrastructure needs and prioritize the work to be done. The grant not only provided technical insights but also familiarized the cooperative, which consists mostly of community residents, with the process of managing large-scale infrastructure projects and federal funding. This groundwork was crucial for the cooperative to develop a clear scope of work and a budget, laying the foundation for successful future improvements.
Gale School, Belmont
The Gale School in Belmont is yet another example of how planning grants can pave the way for complex, multi-phase projects. This historic building was at risk of being lost until a group stepped in with a vision to preserve and repurpose it as a community space. With a planning grant, they were able to conduct a historical analysis that was crucial for ensuring the restoration adhered to preservation standards. This step not only protected the building’s historical integrity but also unlocked additional funding tied to its historic status. The Gale School project, which has since secured further funding through CDFA’s CDBG program and other sources, illustrates the importance of planning grants in preserving cultural heritage while meeting community needs.
The Upper Room, Derry
In Derry, The Upper Room utilized a planning grant to assess the need for a larger facility in response to increased demand during the COVID-19 pandemic. Although this project is still in the evaluation stage, the planning grant has been instrumental in helping the organization determine the best course of action to meet the community’s evolving needs. This is a clear example of how planning grants can provide organizations with the time and resources to adapt to changing circumstances and ensure that future projects are both necessary and feasible.
