Section 11.02 - Capital Improvement Plans and Project Funding Availability(1)Capital Improvement Plans (CIP). (a) Each LHA must develop or have in place an initial CIP, describing how the LHA will utilize and prioritize its resources including funds, systems, practices and workforce to maintain the physical condition of its state-aided public housing units over a five-year period. In order to receive Capital Funds, an LHA must have a current Department-approved CIP.(b) Each LHA will submit an annual update to its CIP to the Department prior to the beginning of each fiscal year as part of its Annual Plan in accordance with 760 CMR 4.00: General Administration of Local Housing Authorities and Department guidelines.(c) Each LHA shall involve LTOs and residents in the process of creating the annual CIP in accordance with 760 CMR 6.09: Tenant Participation.(d) Each LHA participating in the RCAT Program shall involve its RCAT in decisions relating to the creation and update of its CIP in accordance with 760 CMR 11.00.(2)Formula Funds Program. Subject to funding availability, the Department will issue Formula Funds awards to LHAs for the modernization and preservation of state-aided public housing. (a) An LHA's need for Formula Funds shall be based on the LHA's capital needs compared to state-wide capital needs of state-aided public housing, determined using a centralized database of site and building components, their useful life and their replacement cost. The formula used to calculate the distribution of Formula funds to each LHA shall be adjusted by the Department as necessary to best serve the program goal of preserving the state-aided public housing portfolio.(b) The expenditure of Formula Funds shall comply with Department guidelines as amended from time to time.(3)Special Capital Funds. Subject to funding availability, the Department may periodically make funds available on a competitive or discretionary basis for emergencies and special initiatives. The availability of such funds and corresponding program guidelines will be announced via public housing notice.Amended by Mass Register Issue 1335, eff. 3/24/2017.