Administration — Duties — Eligible projects – Financing.

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A. The Department shall administer the provisions of the Healthy Food Financing Act.

B. The Department may contract with one or more nonprofit organizations or community development financial institutions to administer this program through a public-private partnership.

C. The Board shall adopt the rules and program eligibility guidelines necessary to enforce and administer the Healthy Food Financing Act, including an application process for financing and grants. Projects that receive financing must be located in an underserved community and primarily serve low or moderate income communities. Projects eligible for financing include:

1. Construction of new grocery stores;

2. Construction of small food retailers; and

3. Grocery store or small food retailer renovations, expansions and infrastructure upgrades that improve the availability and quality of fresh produce and other healthy foods.

D. Financing made available for projects may be expended for the following purposes:

1. Site acquisition and preparation;

2. Construction costs;

3. Equipment and furnishings;

4. Workforce training or security;

5. Pre-development costs, including market studies and appraisals;

6. Energy efficiency measures;

7. Working capital for first-time inventory and start-up costs; and

8. For small food retailers, the acquisition or leasing of refrigeration equipment, display shelving or other one-time capital expenditure, at a cost of less than Five Thousand Dollars ($5,000.00), for the promotion and display of perishable foods, which shall include a blend of dairy products, fresh produce, fresh meats and poultry and fresh or frozen fish.

E. In determining which projects shall qualify for financing, the Department shall consider:

1. The level of need of access to healthy foods in the area to be served;

2. The degree to which the project requires an investment of public financing to progress, create and impact on access to healthy food;

3. The degree to which the project will have a positive economic impact on the underserved community, including by creating or retaining jobs for local residents;

4. The degree to which the project will participate in state and local health department initiatives to educate consumers on nutrition and promote healthier eating; and

5. Other criteria the Board determines to be consistent with the purposes of this act.

F. Eligible applicants for financing shall include but are not limited to sole proprietorships, partnerships, limited liability companies, corporations, cooperatives, nonprofit organizations, nonprofit community development entities, universities or government entities. Applicants for financing must:

1. Demonstrate the capacity to successfully implement the project and the likelihood that the project will be economically self-sustaining;

2. Demonstrate the ability to repay the debt; and

3. Agree, for a period of at least five (5) years, to comply with the following conditions:

  • a.to accept the benefits of The United States Department of Agriculture’s Supplemental Nutrition Assistance Program,
  • b.to apply to accept The United States Department of Agriculture’s Special Supplemental Nutrition Program for Women, Infants, and Children and to accept the benefits, if approved,
  • c.to allocate at least thirty percent (30%) of food retail space for the sale of perishable foods, which shall include fresh dairy, produce, meats, poultry and fish,
  • d.to comply with all data collection and reporting requirements established by the Board, and
  • e.to promote the hiring of local residents.

G. The Board may establish monitoring and compliance mechanisms for projects receiving financing.

H. The Department shall raise matching funds, promote the program statewide, evaluate applicants, underwrite and disburse grants and loans and monitor compliance and impact.

I. The Department shall report annually to the Legislature on the projects funded, the geographic distribution of the projects, the costs of the program, and the outcomes, including the number and type of jobs created and health initiatives associated with the program.

Added by Laws 2017, c. 106, § 4, eff. Nov. 1, 2017.


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