Acronyms


  • CDFI Fund’s Automated Tracking System (ATS):
    a QEI, Qualified Equity Investment, Registration System
  • Brownfield’s Economic Development Initiative (BEDI):
    a key competitive grant program that HUD administers to stimulate and promote economic and community development
    hudexchange.info/programs/bedi/
  • City Administrative Office of the City of Los Angeles(CAO)
  • Community Development Block Grant (CDBG):
    a flexible program that provides communities with resources to address a wide range of unique community development needs
    portal.hud.gov
  • Community Development Entity (CDE)
    a domestic corporation or partnership that is an intermediary vehicle for the provision of loans, investments, or financial counseling in low-income communities
    cdfifund.gov
  • Community Development Financial Institutions (CDFI) Fund:
    promotes economic revitalization in distressed communities throughout the United States by providing financial assistance and information to community development financial institutions
    cdfifund.gov
  • Community Impact Information System (CIIS):
    system CDFI uses to capture community impact information and portfolio performance
  • CDFI Information Mapping System (CIMS):
    a system used for geocoding addresses, mapping census tracts and counties, and determining the eligibility of census tracts and counties under the CDFI Fund's various program distress criteria
    cdfifund.gov/pages/mapping-system.aspx
  • Chief Legislative Analyst of the City of Los Angeles (CLA):
  • Economic and Workforce Development Department of the City of Los Angeles (EWDD):
  • Housing and Community Investment Department of the City of Los Angeles (HCID):
  • Industrial Development Authority (IDA):
  • Impact Analysis Software (IMPLAN):
    regional economic research data and analytical software that provides a complete and comprehensive picture of any economic impact and effect
    implan.com
  • London Interbank Offered Rate (LIBOR):
    a benchmark rate that some of the world's leading banks charge each other for short-term loans
  • Low-Income Community (LIC):
    (CDE) For the NMTC Program, a Low Income Community means any population census tract that meets one of the following criteria (as reported in the most recently completed decennial census published by the U.S. Bureau of the Census):
    1. The poverty rate for census tract is at least 20%, or
    2. In the case of a Low Income Community located
      a) outside of a metropolitan area, the median family income (MFI) for such tract does not exceed 80% of statewide MFI, or
      b) within a metropolitan area, the MFI for such tract does not exceed 80% of the greater of statewide MFI or metropolitan area MFI, or
      c) within a possession of the United States, the MFI does not exceed 80% of possession wide median family income

    (CDFI) For the CDFI Program, an annual income, adjusted for family size, of not more than:
    • Metropolitan areas: 80% of the area median family income
    • Non-Metropolitan areas, the greater of:
      (i) 80% of the area median family income; or
      (ii) 80% of the statewide non- metropolitan area median family income
  • Low-Income People/Families (LIP):
    (CDE) For the NMTC Program, a Low Income means any persons or families that reside in a population census tract that meets one of the following criteria (as reported in the most recently completed decennial census published by the U.S. Bureau of the Census):
    1. The poverty rate for census tract is at least 20 percent, or
    2. In the case of a Low Income Community located
      a) outside of a metropolitan area, the median family income (MFI) for such tract does not exceed 80 percent of statewide MFI, or
      b) within a metropolitan area, the MFI for such tract does not exceed 80 percent of the greater of statewide MFI or metropolitan area MFI, or
      c) within a possession of the United States, the MFI does not exceed 80% of possession wide median family income

    (CDFI) For the CDFI Program, an annual income, adjusted for family size, of not more than:
    • Metropolitan areas: 80% of the area median family income
    • Non-Metropolitan areas, the greater of:
      (i) 80 percent of the area median family income; or
      (ii) 80 percent of the statewide non- metropolitan area median family income
  • New Markets Tax Credits (NMTC):
    a program that incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities
    cdfifund.gov
  • Notice of Allocation Availability (NOAA):
    once a year the CDFI Fund opens the allocation round through a Notice of Allocation Authority in the Federal Register; the NMTC Program awards NMTC allocation authority through an annual competitive application
  • Non-Qualified Financial Property (NQFP):
    Debt, stock, partnership interests, options, futures contracts, forward contracts, warrants, notional principal contracts, annuities and other similar property
  • Qualified Active Low-Income Community Business (QALICB):
    Under IRC 45D(d)(2), any corporation (including a non-profit corporation) or partnership if for such taxable year
    1. At least 50% of total gross income of such entity is derived from the active conduct of a qualified business within any Low-Income Community
    2. A substantial portion of the use of the tangible property of the such entity (whether owned or leased) is within any Low-Income Community
    3. A substantial portion of the services performed for such entity by its employees are performed in any Low-Income Community
    4. Less than 5% of the average of the aggregated unadjusted bases of the property of such entity is attributable to collectibles (as defined in IRC 408(m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business
    5. Less than 5% of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property (as defined in IRC 1397C(e))
  • Qualified Census Tract (QCT):
    Census tracts are small, relatively permanent statistical subdivisions of a county or statistically equivalent entity delineated by local participants as part of the U.S. Census Bureau's Participant Statistical Areas Program. The primary purpose of census tracts is to provide a stable set of geographic units for the presentation of decennial census data.
  • Qualified Equity Investment (QEI):
    Under IRC 45D(b)(1), any Equity Investment in a CDE if:
    1. Such investment is acquired by the investor at its original issue (directly or through an underwriter) solely in exchange for cash
    2. Substantially, all of such cash is used by the CDE to make QLICIs
    3. The investment is designated for purposes of IRC 45D by the CDE as a QEI - QEI also includes an Equity Investment purchased from a prior holder, to the extent provided in IRC 45D(b)
    4. QEI does not include any Equity Investment issued by a CDE more than five years after the date the CDE receives a NMTC Allocation
  • Qualified Low-Income Community Investment (QLICI):
    Under IRC 45D(d)(1), a QLICI is:
    1. Any capital or Equity Investment in, or Loan to, a QALICB (as defined in IRC 45D(d)(2))
    2. The purchase from a CDE of any loan made by such entity that is a QLICI
    3. Financial Counseling and Other Services to business located in, and residents of, Low-Income Communities
    4. Any Equity Investment in, or loan to, any CDE
  • Tax Increment Financing (TIF):
    a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects

Definitions


  • Accessory use means using a building or piece of land in a way that is different than its primary designation. A musical rehearsal studio or massage therapy office located inside your house is an example of an accessory use. A "use" in city planning refers to the way a building or piece of land is designated to be used. For example, a piece of land may be designated as residential, meaning it can only be "used" as a home.
  • Assets are property that your business owns. This includes anything that has value, such as cash, accounts receivables, inventory, supplies, equipment, etc.
  • Brick and mortar refers to businesses that have physical (rather than virtual or online) presences - in other words, stores that you can physically enter to purchase merchandise. When the term came about, most buildings were made of brick and mortar. Though we use all kinds of building materials today, the term is still common.
  • The maximum square footage and number of floors/building height allowed on a property by the City's zoning restrictions.
  • A business entity is established as separate from its owners to maximize tax strategies, create liability protection, and ensure asset protection. Corporations, limited liability companies, and sole proprietorships are types of common business entities.
  • A business improvement district is a geographically defined area within the City of Los Angeles, in which services, activities and programs are paid for through a special assessment which is charged to all members within the district.
  • A certificate that verifies you have paid your Los Angeles Business Taxes and is required if you have physically conducted business in the City of Los Angeles for seven or more days per year.
  • Census tracts are small, relatively permanent statistical subdivisions of a county or statistically equivalent entity delineated by local participants as part of the U.S. Census Bureau's Participant Statistical Areas Program. The primary purpose of census tracts is to provide a stable set of geographic units for the presentation of decennial census data.
  • A document issued by the Department of Building and Safety, which verifies that a building complies with codes, laws and zoning and is thus approved for occupancy.
  • Any construction or remodeling that changes a facility into a different type of facility, for instance, if a print shop is changed into a restaurant. A change of use may trigger different zoning and permit approvals.
  • Required approval for certain types of land uses and business activities, regardless of whether or not they conform to zoning requirements.
  • Real property with intended commercial use, including retail, office, industrial, and community facilities.
  • Under IRC 45D(c)(1), any domestic corporation or partnership if:
    1. The primary mission of the entity is serving, or providing investment capital for, low-income communities or low-income persons;
    2. The entity maintains accountability to residents of low- income communities through their representation on any governing board of the entity or on any advisory board to the entity; and
    3. The entity is certified by the Fund as a CDE.
  • An entity that has been certified by the Fund as meeting the criteria set forth in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702).
  • Direct jobs are those that are projected to be created with the financing (e.g. jobs created at the project business receiving the financing and used to pay wages or salaries).
  • I. Metropolitan Economic Development Hot Zones are census tracts with:
    1. A minimum population of 1,500
    2. An unemployment rate at or above 1.5 times the national average
    3. A poverty rate at or above 20 percent
    4. A median family income at or below 80 percent of the metropolitan area median income
    II. Non-metropolitan Economic Development Hot Zones are counties or census tracts with:
    1. A minimum population of 500
    2. An unemployment rate at or above 1.5 times the national average, and either
    3. A poverty rate at or above 20 percent, or
    4. A median family income at or below 80 percent of the statewide non- metropolitan median family income or the national non-metropolitan median family income (whichever is greater).
  • Services that support the development and retention of jobs and the start up and growth of businesses through:
    1. loans, equity investments and other similar financing to for-profit small businesses, microenterprises, and commercial real estate other than community facilities,
    2. related development services, and
    3. community organization support.
  • Approval or permission by the City to use or develop land. Entitlements are required unless your building and all of your proposed business activities are permitted under the city's zoning regulations.
  • A building permit that can be obtained without going through the regular plan check process. E-Permits can be obtained online at www.ladbs.org or at the Department of Building and Safety's Express Counter.
  • Indirect jobs are those jobs that are projected to be created at other businesses that supply the project business with inputs such as goods or services required by the project business a result of the financing (e.g. manufacturing supplier chain jobs created as a result of increases in sales to the project business).
  • A Target Market made up of a geographic unit or contiguous geographic units that:
    1. Is entirely located within the geographic boundaries of the United States and either:
    2. Meets at least one of the criteria of economic distress as defined under 12 CFR§1805.201(b)(3)(ii)(D) and has significant unmet needs for loans, equity investments, or financial services, as described under 12 CFR§1805.201(b)(3)(iii)(E); or
    3. Encompasses or is located wholly within an Empowerment Zone or Enterprise Community designated under section 1391 of the Internal Revenue Code of 1986.
  • Items in which you owe money and/or debts. If the debt can be repaid in less than five years, it's considered a short-term liability; debts that are to be paid in more than five years are a long-term liability.
  • For the NMTC Program (as a community development entity), a low income community or persons means any population census tract that meets one of the following criteria (as reported in the most recently completed decennial census published by the U.S. Bureau of the Census):
    1. The poverty rate for census tract is at least 20 percent, or
    2. In the case of a Low Income Community located:
      a) outside of a metropolitan area, the median family income (MFI) for such tract does not exceed 80 percent of statewide MFI, or
      b) within a metropolitan area, the MFI for such tract does not exceed 80 percent of the greater of statewide MFI or metropolitan area MFI, or
      c) within a possession of the United States, the MFI does not exceed 80% of possession wide median family income.
  • For the purposes of permits with the Department of Building and safety, a Major Project is one that consists of: 30 new residential units or more, new non-residential floor area of 30,000 sf or more, valuation of $5 million or more, or creates more than 50 new jobs.
  • A source of financial services for entrepreneurs and small businesses lacking access to banking and related services.
  • A process where the Department of Building and Safety reviews and approves building-related proposals to ensure they comply with existing City laws, restrictions, and codes.
    • Counter Plan Check - Same-day plan checks for common, straightforward projects
    • Regular Plan Check - A more detailed plan check for complicated projects
  • A service that gives those applying for a building permit the chance to meet with City engineers to learn more about the necessary requirements prior to official plan check submittal.
  • If a proposed development does not comply with the city's existing zoning code, you may apply to change the zoning into one that will allow your development. This is typically a lengthy process that requires Planning Commission or City Council approval.
  • For the purposes of permits with the Department of Building and Safety, a Special Project is one that consists of: affordable housing of 20 units or more, 20 units of senior housing or more, adaptive reuse, is city bond funded, is a charter school, or is a green business/uses clean technology.
  • For Allocatees of the NMTC Program, any legal entity that is owned or controlled directly or indirectly by an organization. This term includes series funds, which are separate investment funds controlled by an organization.
  • A waiver of zoning requirements. Variances apply only to building restrictions (e.g., height, size), and not to allowable land uses.
  • Allowable land use and building restrictions for particular geographic areas, as defined by the City's General Plan. If your project is not permitted by the zoning regulations, you will need to be apply for approval with the City.