Gap Avoidance Program (GAP)
Indiana Office of Community and Rural Affairs (OCRA) has identified a trend in which projects that have received CDBG awards are facing post-award financing gaps. These can be caused from a number of situations including construction bid overruns. Financing gaps often cause project delays and force communities to have to identify additional funding sources in order to complete the project. The Indiana Bond Bank has created GAP in partnership with OCRA as a financial tool that will offer an additional funding option in these instances.
Benefits of the Program
• No balloon payments
• Flexible repayment options
• Competitive rates
• Various Loan repayment streams
• Pooling Options – Increased Savings
Requirements:
• Proposed projects must be an awarded CDBG project which is in good standing with OCRA;
• Any CDBG recipient experiencing a gap in expected funding to project completion;
• A gap may not necessarily be due to bid overruns, and could include drop-outs of previously committed funding or match.
Program Structure:
• Loan term: 10 years
• Maximum loan amount: unlimited
• No additional federal requirements or additional monitoring is required
Application Deadlines:
Round 1: January 15, 2019 (July Closing)
Round 2: April 4, 2019 (October Closing)