606 CMR, § 15.02

Current through Register 1536, December 6, 2024

Section 15.02 - Definitions

The following definitions will apply to the EEOST Capital Fund program:

CEDAC. Community Economic Development Assistance Corporation, established by M.G.L. c. 40H.

EEC. The Department of Early Education and Care.

EEOST Fund Guidelines. Guidelines issued by EEC setting out, clarifying, and further explaining EEOST Capital Fund program policies and procedures. The EEOST Capital Fund Guidelines shall apply to all EEOST Grants.

EEOST Grant. A direct grant of capital funds to an Eligible Organization for payment or reimbursement of the costs of an Eligible Project.

Eligible Facility. A building or structure that is, or will be, owned or leased by one or more Eligible Organizations and licensed by EEC, provided that:

(a) at least 50% of the slots in the facility shall serve Low-income Families;

(b) a leased facility shall be leased from a bona fide third-party, not from an entity affiliated in any way with the Eligible Organization, and shall have a lease term that is consistent with the scale of the capital investment, but not be less than 15 years from the date of completion of the Eligible Project; and

(c) the facility shall meet all of the requirements of 606 CMR 15.03.

Eligible Organization. A nonprofit corporation formed under M.G.L. c. 180 and exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or an organization in which a nonprofit corporation has a controlling financial or managerial interest, and its approved successors and assigns. In all organizations where more than one party has a beneficial interest, the names and addresses of all individuals or entities holding any beneficial interest must be disclosed, as well the percentage of beneficial interest held by each interest holder and each interest holder's status as either a nonprofit or for-profit corporation, individual or other type of entity. In addition, the organizational documents of any Eligible Organization that is not a nonprofit corporation must be provided, along with a narrative describing the manner in which a nonprofit corporation has a controlling financial or managerial interest. An Eligible Organization must also demonstrate, to the satisfaction of EEC:

(a) the capability of managing all of its responsibilities in carrying out the Eligible Project and operating the Eligible Facility; and

(b) that none of its members, shareholders, officers, employees, or members of its board of directors can profit, in any way, from EEOST Capital Fund assistance.

An Eligible Organization must, at the time of application or, if applicable, -Pre-application, be currently licensed by EEC and providing early care and education or out of school time care for low-income families who are eligible for public subsidy.

Eligible Project. The acquisition, design, construction, repair, renovation, recovery from a natural or man-made disaster, rehabilitation, or other capital improvement or deferred maintenance of an Eligible Facility. Eligible Projects shall reflect cost-effective design, material, and finish decisions consistent with good architectural and engineering practice, high quality construction, and shall satisfy the requirements of EEC.

Financial Intermediary. A quasi-public or nonprofit organization including, but not limited to, CEDAC, selected by EEC to administer the EEOST Capital Fund program in accordance with M.G.L. c. 15D, § 18(c).

Financially Feasible Project. An Eligible Project that is likely to secure binding financial commitments from other funding sources which, together with the EEOST Grant described in the Financing Commitment, total the amount reflected in the estimated budget necessary to acquire, design, construct, repair, renovate, recover from a natural or man-made disaster, rehabilitate, make other capital improvements, or perform deferred maintenance to the Eligible Facility (as approved by EEC, as is recommended by the Financial Intermediary).

Financing Commitment. A binding written commitment from EEC and/or the Financial Intermediary to fund an EEOST Grant.

Full Application. An application for an EEOST Grant, in the format specified by the EEOST Fund Guidelines, which shall include, among other things, a description of a proposed Eligible Project and all proposed financing sources and uses. For grants over $500,000, only those Applicants who have submitted a Pre-application for EEOST Grant funding and have been invited by EEC to submit a Full Application shall be permitted to submit a Full Application and be considered for an EEOST Capital Fund Grant.

Land Use Restriction. A restriction entered into by the owner or tenant, as applicable, of an Eligible Facility for the benefit of EEC and/or its Financial Intermediary restricting such Eligible Facility to use as an EEC licensed early education or out of school time program in which at least 50% of the slots shall serve Low-income Families. Such agreement, as further described in 606 CMR 15.04(2)(e) and the EEOST Fund Guidelines, shall include such terms and conditions as are required to be imposed under M.G.L. c. 15D, § 18, EEOST Fund Guidelines or any other EEC policies or requirements. The Land Use Restriction shall be recorded and/or registered in the Registry of Deeds and/or Registry District of the Land Court where the Eligible Facility is located. The Land Use Restriction shall run with the land for the full original term of the Grant, as set forth in 606 CMR 15.04(2)(c), even if the Grant is voluntarily fully repaid early.

Low-income Family. A family that meets one of the following criteria:

(a) the family meets EEC child care financial assistance income eligibility guidelines of 50% to up to 85% of state median income (SMI), depending on activity requirements;

(b) the family meets Head Start income eligibility guidelines; or

(c) the family is receiving Transitional Aid to Families with Dependent Children (TAFDC), Supplemental Security Income Benefits (SSI) or any other Public Subsidy, as further defined in the EEOST Program Guidelines.

Pre-application. A Pre-application may be required in order to be considered for an EEOST Grant. The purpose of the Pre-application is to determine if applicants meet a certain minimum threshold, as set forth in the EEOST Program Guidelines, prior to submitting a Full Application. For grants for which ECC determines a Pre-Application is required, only those entities that have been reviewed and deemed eligible to apply by EEC will receive an Invitation to Apply and submit a Full Application.

Program Design. A document that a designer/architect may use to create the design or plans for the design of an Eligible Facility. It shall include, but not be limited to, type of facility; number of classrooms and other licensed activity areas, including information on the number of children and age groups using a particular space and the design requirements for each classroom and other licensed areas; a list of specialized classroom and support areas including, but not limited to, bathrooms, kitchen or other food preparation area, teachers' break area, and storage areas; and the security measures to safeguard the facility and its occupants, the hours of operation; and any public access or community use. The Program Design shall also include the gross and net square footage of the Eligible Facility and, in the case of an expansion, the gross and net square footage of the existing facility and the proposed expansion. The Program Design shall comply with all applicable EEC physical space requirements found in 606 CMR 7.00: Standards for the Licensure or Approval of Family Child Care; Small Group and School Age and Large Group and School Age Child Care Programs and policies adopted thereunder and with 780 CMR: The Massachusetts State Building Code.

Public Subsidy. Economic assistance provided to low-income families by any federal, state, or local government entity or any quasi-governmental entity. Public subsidies may take the form of direct monetary payments, vouchers, services, tax credits or other benefits that assist in provision of necessities including, but not limited to, food, housing, health care, child care, or education.

Slots. The number of children who may be enrolled in the care of an early education or out of school time program licensed by EEC.

Total Development Costs. Total hard and soft costs of developing an Eligible Project, including the costs to acquire (including site acquisition), design, construct, repair, renovate, rehabilitate, recover from a natural or man-made disaster, make other capital improvements, perform deferred maintenance, and finance the Eligible Project, as set forth in EEOST Program Guidelines.