Healthy Food Dallas Initiative (HFDI)

Healthy Food Dallas Initiative (HFDI) is sponsored by City of Dallas Office of Economic Development (supported by Dallas Development Fund). A financing program to increase the number of non-traditional food access points, including corner stores and other fresh food options, in low-income, underserved communities across Dallas. Funds are awarded as forgivable loans for capital and/or capacity enhancements.

# Healthy Food Dallas Initiative # Section I: Introduction The Healthy Food Dallas Initiative ’s (HFDI) is a financing program supported by the Dallas Development Fund (DDF) to increase the number of non -traditional food access points including corner stores and other fresh food options in low -income, underserved communities across Dallas.

The initiative address es the lack of affordable fresh and healthy foods in many Dallas neighborhoods and the growing evidence that healthy food access reduces the risk of developing diet -related diseases such as obesity, heart disease, and diabetes.

The Healthy Food Dallas Init iative benefits residents living in low - and moderate -income areas with limited access to healthy food by providing healthy food access, creating jobs, and revitalizing eligible neighborhoods. DDF supports the HFDI with funding for healthy food initiatives awarded to non -profit entities that provide free or low -cost access to healthy food in targete d areas .

The awards are up to $70,000 per recipient , with a 50% match requirement (also known as a 1:1 match or a dollar -for -dollar match ). The match can be f rom cash sources and in -kind (non -cash) resources. The funds are awarded as forgivable The City of Dallas Office of Economic Development administer s this program for projects located in or serving eligible food desert census tracts in the City of Dallas.

Under the HFDI program, the City provides forgivable loans for capital and/or capacity enhancem ents to providers of healthy food programs for facility redevelopment, improvement s, construction, and rehabilitation; technology and equipment installation s and upgrades, staff training, security, and /or inventory.

Healthy food is defined as minimally processed foods including : water, fresh or frozen whole or cut fruits, fresh or frozen whole or cut vegetables, milk & no -sugar -added dairy products, eggs, lean meats, and minimally processed whole grains and legumes.

# Section II: HFDI Pro gram An applicant applying for HFDI funds must: • have non -profit status including qualified schools and universities • be community -based and operate in a Dallas service area • demonstrate community support for the solution detailed in the application 1. Applicants that fail to demonstrate a commitment to offer fresh , healthy foods in the judgment 2.

For -profit entities June 2024 2 Organizations may submit proposals for one or more of the outlined eligible program categories : 1. Facility: plan s to open , renovate , or expand a seasonal or permanent facility (which may include community gardens) that provides low -cost or no -cost access to healthy, perishable foo d, provided that the facility has proper approvals from the City of Dallas to operate 2.

Mobile/Delivery: program s to provide mobile or home delivery of low -cost or no -cost healthy, 3. Food Access Multiplier: program s to increase low or no -cost access to healthy food by individuals ( such as expanding a double dollar program or providing health prescriptions, for For all categories, funds may be used for upgrades or purchase s of technology to facilitate hea lthy C.

Mandatory Program Component The applicant must demonstrate that at least 50% of sales /distribution (or equivalent) is dedicated to the sale/provision of fresh fruit and vegetables. This standard establishes a meaningful commitment t o pro vide access to fresh produce and other healthy foods. The applicant’s business or project site must be located within a low income, low vehicle access census tract in the City of Dallas.

A map is below and can be accessed here: https://www. ers. usda.

gov/data -products/food -access -research -atlas/go -to -the -atlas/ D. Use of Funds (Program Budget) Program Budget Eligible Expense Activities HFDI funds may be used for: 1. Pre -Development *: early costs associated with project feasibility including : professional fees (e.g., architectural, engineering, etc.), soil testing, market studies, appraisals, and deposits on 2.

Site Assembly and Improvement *: acquisition, demolition, environmental remediation, unstable foundations and soil conditions, and other costs associated with site and infrastructure 3. Construction and Rehabilitation: construct ion , rehabilitat ion , remodel, or expan sion costs for the interior and/or exterior of the retail space. 4.

Equipment: technology install ation or upgrade s, equipment , machinery, furnishings or interior fi nish -out directly related to the program , especially as necessary to increase the inventory and sale or access of fresh fruit and vegetables. 5. Security: security staff, security training, and security -related equipment and site design features to create a safe environment in a neighborhood setting.

6. Inventory: perishable inventory necessary for the sale of fresh fruit and vegetables and the initial operat ions of the business. 7.

Direct program expenses *: administrative costs directly associated with operating the proposed 8. Holistic programming solutions *: related services that address the root causes of food insecurity. For instance, many diet -related illnesses and health conditions may be improved with a more nutritious diet.

Therefore, providing bloodwork, developing an appropriate diet, and connecting the patient with food providers are eligible activities . *Program Budget Expense Restrictions • Category 1 and Category 2. Pre -development and Site Assembly and Improvement expenses may not exceed 25% of the total forgivable loan amount combined ; • Category 7 .

Direct Program Expenses may not exceed 20 % of the total forgivable loan • Category 8 . Holistic programming solutions expenses may not exceed 10 % of the total HDFI program funds may not be used for the following activities : 1. Refinancing e xisting debt.

2. Payment of any tax arrearages, government fines or penalties. 3.

Political or religious activities. 4. Buying out any stockholder or equity holder in the borrower’s business.

5. Buying out or reimbursing any immediate family member (husband, wife, father, mother, children, brother and/or sister) . 6.

Purchasing instruments or investments for the sole purpose of a return on investment. 7. Brokers fees, realtor fees, or other profit line i tems.

# Section III : Financing A. General Terms and Conditions The total amount of HFDI funding awarded may not exceed $ 70,000 for community -based solutions project and may not exceed 50% of the project costs . More funding may be supplied on a case -by -case basis in the form of other incentives from the City .

June 2024 4 To be eligible to receive financing under HF DI , the Applicant and the Applicant’s business must satisfy the following minimum criteria: 1. Letter o f Board approval which identifies at least 50% of the funding source for the project 2. The organization’s financial statements from the last three months, plus the most recent annual 3.

Proof of non -profit status with the State of Texas and IRS and proof of eligibility to conduct business in Texas by the State Comptroller 4. Articles of Incorporation/Certificate of Formation and Bylaws 5. Non -profit has at least one -year operating experience as confirmed with board meetings, minutes, and/or annual reports.

Additionally, applicants must submit a narrative that demonstrates the need for a forgivable loan . Funding can comprise no more than 50% of the total financing needs of the borrower while not exceeding $ 70,000 for Community -Based Solutions.

Forg ivable loans, if awarded, will be provided at a 0% rate of interest and forgiven over a period of two years after funds are completely expended or notice is given that no further draws will be made , in an amount of one -half (1/ 2) of the forgivable loan amo unt per year , provided that the project is meeting performance benchmarks .

The funds will be provided on a reimbursement basis for the actual eligible expenses paid out by the organization. It is expected that all of the DDF funds will be provided as a reimbursement in the first year. Recipients must provide proof of expenses for the reimbursement of program expenses and for the expenditure s of matching funds in each funding request .

The funding request amount presented for reimbursement may not exceed the amount of matching funds expended for the project . Failure to execute the loan agreement in a timely matter or to request funding within one year of the award may result in funding being revo ked. Note: Applicants receiving a forgivable loan will be evaluated on a yearly basis to determine if the applicant is meeting the goals and objectives of the HFDI program.

If the applicant is found not to be in line with the goals and objectives of the HFDI program (i.e., not providing fresh fruits and vegetables as outlined in the Program Eligibility Criteria), the remaining balance of the forgivable 1. The total amount of HFDI Progra m funds awarded may not exceed $70,000 per project. 2.

A minimum of a 50% match must be available for the project. At least 10% of the match shall be cash match and the applicant shall demonstrate the remaining funds are available from the entity or other sources. As an example, for a $ 50,000 request, the applicant must have a minimum match of $50,000, and of this $50,000, a minimum of $5,000 must be cash on hand 3.

Program funds wil l be disbursed on a reimbursement basis to reimburse actual, eligible Upon approval of an application by the City and Dallas Development Fund , a loan agreement and commitment letter will be issued to the applicant explaining the terms and conditions of the loan. The commitment letter must be signed and returned within 15 days of the date of the commitment letter or the offer may be withdrawn.

Loan documents are subject to Dallas Development Fund Board approval. D. Reporting Requir ements and Record Keeping and Nonperformance The City will enter into a loan agreement with all borrowers.

Loan proceeds are subject to audit by the City. Borrowers will be expected to provide the City with evidence of compliance with program and City re gulations as well as an annual narrative program report and quarterly financial reports .

# Section IV: Application Process and Evaluation Required Application Information City Staff will review each application to determine whether the proposed project meets the minimum eligibility criteria and then review the application for program design, organization experience and capacity, community support and project budget.

To determine eligibility, the applicant must demonstrate they have submitted a n eligible project as defined by Section II . Community -Based Solutions Program and Section III . Financing.

The application must also contain the information requested in this section.

Demonstrate the Organization meets the following minimum eligibility criteria : a) Articles of Incorporation/Certificate of Formation and Bylaws b) Non -profit has at least one year of operating experience as confirmed with board meetings, minutes, and/or annual reports c) Proof of non -profit statu s with the State of Texas and IRS and proof of eligibility to conduct business in Texas by the State Comptroller d) Letter of Board approval which identifies at least 50% of the funding source for the project e) The organization’s financial s tatements from the last three months f) Most recent annual financial statement : • Proposers seeking more than $50,000.

00 should submit a copy of their most recent audited financial statements (no more than 18 months old). This is an external financial audit con ducted in accordance with the American Institute of Certified Public Accountants (AICPA) standards by someone not directly connected with the organization.

Proposers may also choose to submit the most recent unaudited financial statements, particularly if the audited statements for the most recently concluded fiscal year are not yet prepared. • Proposers who are seeking less than $50,000. 00 should submit unaudited financial documents for review but may also submit audited financial statements.

Audited financ ial statements shall include the following six components prepared in accordance June 2024 6 with AICPA standards. (Computer printouts from the organization’s accounting software are not sufficient for this purpose.) i.

Independent Auditor’s Report ii. Statement of Financi al Position (balance sheet) iii. Statement of Activities (revenue/expense or profit/loss statement) iv.

Statement of Cash Flows v. Accompanying notes to the financial statements vi.

Statement of Functional Expenses g) Cover letter signed by an authorized representative of the organization h) Evidence of Community Support - The project demonstrates community support and/or partnerships as evaluated by Letters of Support from community -based organizations and/or Application Narrative and Program Description The applicant should use the application ’s narrative description and project summary to provide information regarding the following : 1.

Project summary that demonstrates alignment with the project eligibility requirements 2. Nar rative describing Project Understanding 3. Organization expertise and capacity 4.

Budget, demonstration of financial need and matching funds The information provided for t he application’s narrative and project summary areas listed above should include details on the following items: a) Degree of benefit to underserved populations: The project has a measurable impact on the level of affordable fresh foods provided to residents of food desert census tracts and the area that the project serve s.

Applicant should define expected impact, which may include pounds of produce (or other healthy food items), sales (dollars) of produce (or other food items), number of families served, or a combination of factors, etc. Education and awareness can also be part of the project ’s impact .

Applicants are encouraged to inform food recipients of other programs or organizations that can connect the recipient to other services beyond food access and to conduct outreach and education sessions to ensure adequate p rogram reach .

The f orgivability of loan will be partially determined by how well the project meets the expected b) Market and Demographic Evaluation: June 2024 7 The Applicant will examine the quality and accessibility of any local competition, site geography, and demographic profile of the Census tract in which the site is located to support need for project.

c) Promotion of healthy food items, including fresh fruits and vegetables: The Applicant demonstrates a com mitment to promoting the sale of fresh fruits and vegetables and other healthy foods, e.g., the project details strategies to promote fresh produce sales beyond simple availability, such as product placement, marketing, providing recipes and demonstrations , d) Consistency with Plans: The Applicant will follow applicable City of Dallas area plans, local community plans and community development programs.

The project will further adhere to applicable land use and urban design e) Organizational Experience and Capacity : The Applicant demonstrates the capacity to implement and sustain the project, e.g., through a sound financial/business plan and relevant experience in fresh food retail.

Submissions should also include key s taff working on the project including : a biography and responsibilities, organization structure, and the most recent annual report. Funds awarded under this program are intended to be a one -time award and projects are expected to be either complete or self -sustaining at the end of the performance period. Applicant shall provide a sustainability plan to meet this requirement.

Financial Need and Budget g) Demonstration of financial need : The project requires an investment of public funding to move forward, to create impact, or to be competitive with similar projects in the region. Applicant must identify need for gap financing and demonstrate that other funding required for project is ava ilable. Funding available under this NOFA may not exceed more than 50% of the total program funding.

A detailed budget should be included which includes sources and uses for program budget as well as a narrative describing why the funds are needed. This section should include all of information as identified in Section III, C. i) Required Match June 2024 8 A minimum of a 50% match must be available for the project.

At least 10% of the match shall be cash on hand and the applicant shall demonstrate th at the remaining funds are available from the entity or other sources . Projects will be reviewed and evaluated on a 100 -point scale. Projects must meet all the eligibility requirements to be considered for funding.

Any score other than five (5) in Project Eligibility disqualifies the project for further consideration. Projects must receive a minimum of 80 points to be eligible for funding . The Dallas Development Fund board will make the final determination on funding and will not consider p rojects that do not receive a minimum of 80 points.

The m aximum points to be awarded are Criteria Description Max.

Points Project Eligibility Qualified non -profit, eligible census tract (see page Project Design Overall understanding of program goals 15 Defined expected impact 15 Commitment to promoting the sale of fresh fruits Examination of the quality and accessibility of any local competition, and demographic profile of the Census tract in which the site is located to support • Sustainability plan Plan for continuation of program after DDF funding • Consistency with Plans Conformity with existing zoning requirements and area plans (if applicable) 5 Organizational experience and Capacity of the sponsor to implement, fund and Budget and Financial Need Fin ancial Need Identified need for gap funding 10 Commitment from outside sources or cash on hand for at least 50% of the project funding 10 Community Support Letters of support from community organizations 5 # Section V: Submissions and Awards Applications for this NOFA are due by 5:00 on July 1 2th , 2024 , to the Office of Economic Development via email to Wendy.

Nalls @dallas . gov . Submissions should be submitted as one PDF (plus the budget) or zip file (where each file should be clearly and uniquely titled).

If the file is greater than 15 MB, please email Wendy for an alternative way to submit the application. Awards made under this NOFA are expected to be announced by the end of August . June 2024 9 If all funds are not awarded under the initial round of funding, unexpended funds will be available on a rolling basis to projects meeting the application process established by this NOFA .

# Section VI: Program Inquiries Office of Economic Development