19-498-18 Me. Code R. § 2

Current through 2025-03, January 15, 2025

Section 498-18-2 - COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate income persons.

1. Special Threshold Criteria and Certifications: Housing Assistance Program funds will be distributed through an annual grant application selection process.

(a)Eligible Activities: Eligible activities are those directly related to assisting or creating residential housing units including Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers.

(b) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415- c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent of 10 percent of the total grant award.

2. Program Requirements:

(a)Past Performance: In order to be eligible to apply for the 1999 Housing Assistance program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application due date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application due date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances:

1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or

2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or

3) the job creation goals of a previous grant have not been fulfilled.

(b)Maximum Housing Assistance Grant Amount: $300,000

(c)Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants will be no more than $15,000 per unit rehabilitated. Additional funds up to a maximum of $7,000 may be available in the following cases - replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or accessibility modifications. In extreme circumstances, the maximum housing rehabilitation cost may be waived by OCD.

(d)Maximum Administrative Costs: Successful communities may expend a maximum total of $45,000 of CDBG funds for general and housing rehabilitation administration costs. In limited cases this may be waived by OCD.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum application length is ten pages. The application deadline is January 29, 1999.

Each application will be rated in relation to all other HA applications. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the application score.

(a)Problem Statement (40 points):

(i)Scope of Problem: (20 points) - Identification and description of the magnitude and nature of the housing conditions to be addressed (i.e. substandard housing, lack of affordable housing, etc.).

(ii)LMI and Community Impact: (10 points) - Identification and description of the impact of the problem on low-to-moderate income residents and the larger community or neighborhood. Include a description of the health, safety and welfare issues of the residents.

(iii)Energy Efficiency Considerations: (10 points) - Identification and description of the conditions that prevent LMI persons from maintaining affordable, comfortable and efficient energy standards.

(b)Proposed Solution (30 points):

(i)Effectiveness: (20 points) - Description of how funds will be used to solve the identified problems.

(ii)Project Feasibility: (10 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c)Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d)Commitment (10 points): Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e)Distress(10 points): OCD will derive a community's distress score from the following four areas:

(i)Housing:(1.5 points) - A score based on the percent of substandard housing (.75) and a score based on the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs (.75). The percentages will be derived from the most recent data available.

(ii)Economic Conditions: (3.5 points total) - Percentage Factor ; a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities (1.5 points), plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii)Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates divided into three segments and assigned points accordingly (high 3.5, middle 2.0 and low .5) for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). Unequal divisions will be rounded up.

(iv)Poverty Level: (1.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). The ranking will be divided into three segments and assigned points accordingly (high 1.5, middle 1.0, low .5). Unequal divisions will be rounded up.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The Public Facilities/Infrastructure Grant (PFIG) Program provides funding for local infrastructure and public facility activities which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities/Infrastructure Program funds will be distributed through an annual grant application selection process.

(a)Eligible Activities: Eligible activities in the PFIG program are construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associatedwith public projects and infrastructure for new housing construction.

(b)Local Match: All communities applying for PFIG funds must certify that they will provide a local match equivalent to 20 percent of the total grant award.

2. Program Activities:

ActivityBreakdown: Applicants may apply for one or more activities from a single category but cannot apply for activities from more than one category.

(a)Category1:Water, sewer, water or sewer hookup (as a rehabilitation activity in conjunction with the public facilities activities), storm drainage, utility infrastructure and infrastructure for new housing construction.

(b)Category 2: Streets/roads, sidewalks, public wharfs/piers, fire stations, community centers, child care/senior citizen centers, health care centers, sheltered workshops, homeless shelters, libraries, and removal of architectural barriers.

(c)Category3: Parking, curbs, gutters, public parks, recreation facilities, public works garages, salt/sand storage facilities, fire fighting and rescue equipment, and transfer stations.

3. Special Program Requirements:

(a)Past Performance: In order to be eligible to apply for the 1999 Public Facilities Infrastructure program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds by prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances:

1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or

2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or

3) the job creation goals of a previous grant have not been fulfilled.

(b)Maximum Public Facilities/Infrastructure Grant Amounts

(i)Category 1: $400,000

(ii)Category 2: $250,000

(iii)Category 3: $ 50,000

(c)Funding Restrictions: PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

A maximum of two fire station projects will be funded. Sand/salt shed projects will only be funded after all other eligible category #3 projects.

(d)Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or preventing or eliminating slum and blighting conditions. Income surveys must use HUD-approved methodology and be accepted by OCD.

(e)Bonus Points for Service and Specialized Center Communities: PFIG Category #1 applicants will receive two bonus points if they have been identified by the State Planning Office as a service center or specialized center community. A list of these communities is attached.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

Phase I Application: The maximum application length is ten pages. The application deadline is December 4, 1998.

Each application will be rated in relation to all others in its respective category. A minimum of 70 points from the Problem Statement, Proposed Solution, Commitment and Citizen Participation sections will be required to be considered for funding. A distress score and bonus points will be added to this result.

(a)Problem Statement (35 points):

(i)Scope of Problem: (20 points) - Identification and description of the nature and magnitude of the problems to be addressed with PFIG funds.

(ii)Health, Safety, Welfare: (10 points) - Impact of the problem on public health, safety, and welfare.

(iii)Priority: (5 points) - Significance of the problems to be addressed with PFIG funds in relation to other public facility problems within the community.

(b)Proposed Solution (25 points):

(i)Project Description: (10 points) - Identification and description of the activities proposed to resolve the problems presented in the Problem Statement.

(ii)Project Feasibility: (15 points) - Identification of tasks, timetables, and the responsible parties to implement the proposed solution.

(c)Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials; and how the involvement contributed to this application.

(d)Commitment(20points): Identification and description of how community, organizations and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e)Bonus Points (2 points): For category #1 projects, "service and specialized center communities" identified by the State Planning Office will receive two bonus points.

(f)Distress(10 points): OCD will derive a community's distress score from the following four areas:

C. PUBLIC SERVICE GRANTS

The Public Service Grant (PSG) Program addresses community resource needs by providing funding for operating expenses, equipment and program materials for public service programs.

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a)Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing provided to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements: Abused Children Battered Spouses Elderly Persons Persons with Disabilities Homeless Persons Illiterate Persons Migrant Farm Workers

(ii) participants in a program designed to limit the PSG funded benefit exclusively to eligible Low and Moderate Income persons.

(b) All communities applying for PSG funds must certify that:

(i) the public service represents: a) a new service to the community; or b) a quantifiable increase in the level of an existing service;

(ii) a local match equivalent to 20 percent of the total grant award will be provided; and,

(iii) the activity will meet the need or will continue after PSG funding is expended.

2. Special Program Requirements:

(a)Past Performance: In order to be eligible to apply for the 1999 Public Service program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances:

1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or

2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or

3) the job creation goals of a previous grant have not been fulfilled.

(b)Maximum Public Service Grant Amount: $50,000

(c)Funding Restrictions: PSG funding is restricted to non-construction activities.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is eight pages. The application deadline is April 5, 1999.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A distress score will be added to this result.

(a)Problem Statement (30 points):

Scope of Problem: (30 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds.

(b)Proposed Solution (30 points):

(i)Project Description: (10 points) - Description of how PSG funds will be used to solve the problems.

(ii)Project Feasibility: (10 points) - Identification of tasks, timetables and the parties responsible to implement the proposed solution.

(iii)Capacity: (10 points) - Identification and description of the qualifications and abilities of those who will implement the project.

(c)Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials, and how this involvement contributed to this application.

(d)Commitment (20 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments.

(e)Distress(10 points): OCD will derive a community's distress score from the following two areas:

(i)Unemployment Rate: (3.5 points) - A score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(ii)Unemployment Absolute Numbers: (3.5 points) - Communities will be ranked from highest to lowest based upon the numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 3.5; middle 2.0; and low 0.5). Unequal divisions will be rounded up.

(iii)LMI Percentage: (1.5 points) - A score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 1.5 to determine the score for LMI percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(iv)LMI Absolute Numbers: (1.5 points) - Communities will be ranked from highest to lowest based upon the numbers of low and moderate income households. This ranking will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; low 0.5). Unequal divisions will be rounded up.

D. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to enable communities to implement comprehensive, integrated and innovative solutions to the problems facing their downtown districts. These community revitalization projects must be part of a strategy that targets downtown service and business districts and will lead to future public and private investment.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities/Infrastructure, Public Service, Housing Assistance, or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a)Past Performance: In order to be eligible to apply for the 1999 Downtown Revitalization program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances:

1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or

2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or

3) the job creation goals of a previous grant have not been fulfilled.

(b)Planning Requirements: All applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. The proposed DR activities must be cited in the plan as a recommended action to enhance the downtown.

(c)Maximum Award: $400,000

(d)Bonus Points for Service and Specialized Center Communities Applicants will receive five bonus points if they have been identified by the State Planning Office as a service or specialized center community.

3. Selection Process - The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

Phase I Application: The maximum application length is ten pages. The application deadline is January 15, 1999.

Each application will be rated in relation to all others. A minimum of70 points from the Problem, Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding.

(a)Problem Statement (30 points)

(i)Scope of Problems (20 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

(ii)Impact on Economic Vitality (10 points) - Describe how the problems negatively impact the economy of the community and persons of low-to-moderate income.

(b)Solution (40 points)

(i)Project Description (15 points) - Describe how funds will be used.

(ii)Comprehensive Nature of Solution (10 points) - Description of how the activities relate to the community's total downtown revitalization effort.

(iii)Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c)Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d)Commitment (20 points) Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a project

(e) National Objective State how the project, if funded and implemented, will meet the CDBG national objectives of benefiting low and moderate income persons or eliminating slum and blighting conditions.

E. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address serious and immediate threats to health and welfare.

1. Special Threshold Criteria and Certifications:

(a)Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint emergency situations. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b)Project Eligibility: Pursuant to Section 104(b) 3 of the Housing and Community Development Act of 1974, as amended, the applicant must address a community development need which:

(i) poses a serious and immediate threat to the health or welfare of the community;

(ii) originated or became a direct threat to public health and safety no more than 18 months prior to the submission of the application;

(iii) is a project the applicant cannot finance on its own. "Cannot finance on its own" means, in this context, that the town's tax burden, regulatory structure, utility user fees, bonding capacity, previous or existing budgetary commitments, precludes it from assuming this project's additional financial expenditure; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a)Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

(b)Application Submittal: Applicants must submit a complete UNG application that includes all required information and documentation.

(c)Maximum UNG Amount: $100,000

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: An UNG application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that poses an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. While an invitation into Phase II is not a guarantee of funding, applicants will receive the amount necessary to complete their project, up to the maximum UNG Program award until the funding available is exhausted. Phase II applications must comply with the following:

(aa)Project Planning: Details of the project including engineering, cost analysis, feasibility and structural analysis as necessary.

(bb)Management Plan: Details of the structure and methods established by the community for program management.

(cc)Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 1, 1999. Applications will be accepted on a first come basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the CDBG Program Manager's decision will initiate the Phase II process necessary for contract award.

DOWNTOWN AND NEIGHBORHOOD REVITALIZATION PROGRAM

JOINT PILOT PROJECT-CDBG and MAINE STATE HOUSING AUTHORITY

The Downtown and Neighborhood Revitalization Program will provide funds to enable communities to implement comprehensive, integrated and innovative housing and development solutions to the problems facing their downtown and neighborhood districts. These community revitalization projects must be part of a strategy that targets these areas and will lead to future public and private investment.

The successful application must combine housing and community development activities funded with both MSHA and CDBG funds.

This program is a pilot project targeting service center communities as identified by the State Planning Office. Projects will utilize the combined resources of:

CDBG MSHA New Lease Fix-ME New Neighbors, and; First-time Home Buyer Program

Successful communities will present innovative and integrated project proposals.

1. Special Threshold Criteria and Certifications: Program funds will be distributed through a grant application selection process.

(b) Local Match - All communities applying for funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a)Past Performance: In order to be eligible to apply for this program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances:

1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or

2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or

3) the job creation goals of a previous grant have not been fulfilled.

(b)Maximum Award: $400,000

(c)Prohibition on Applicant Communities: Only service and specialized center communities may apply for these funds.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

Phase I Application: The maximum length of the Phase I application is ten pages. The application deadline is May 14, 1999.

(a)Problem Statement (30 points)

(i)Scope of Problems (20 points) - Identification and description of the nature and magnitude of the identified problems to be addressed.

(ii)Impact on Neighborhood Vitality (10 points) - Describe how the problems negatively impact the neighborhood targeted including the economy of the community and persons of low-to-moderate income.

(b)Solution (40 points)

(i)Project Description (15 points) - Description of how funds will be used to solve the identified problems.

(ii)Comprehensive Nature of Solution (10 points) - Description of how the activities relate to the community's revitalization effort.

(iii)Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution. Describe linkages to other agencies and resources that will be used to address the problems in a comprehensive and non-duplicative fashion, i.e. Community Action Programs and/or other social service providers.

(d)Commitment (20 points) Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments.

(e)Statement of National Objective Describe how the project, if funded and implemented, will meet the CDBG national objectives of benefiting low and moderate income persons or eliminating slum and blighting conditions.

19-498 C.M.R. ch. 18, § 2