19- 498 C.M.R. ch. 19, § 2

Current through 2024-50, December 11, 2024

Section 498-19-2 - 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. Special Program Requirements:

(a)Past Performance: In order to be eligible to apply for the 2000 Housing Assistance program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application due date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 1998 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: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

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

(c)Maximum Housing Rehabilitation Costs: The amount of rehabilitation grants or loans available to participants will be no more than $15,000 per unit. 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. Except for acquisition/relocation and those activities listed above, all other eligible housing Assistance program activities are limited to a maximum of $20,000 per unit.

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

(e)Section 8 H ousing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 M inimum Housing Quality Standards. This does not apply to projects undertaken to correct specific health and safety issues, i.e. wells, septic, heating units.

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 December 17, 1999.

Each application will be rated in relation to all other HA applications. A minimum of 80 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding.

(a)Problem Statement (40 points):

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

(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, economic 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 in their current living situations.

(b)Proposed Solution (40 points):

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

(ii)Project Feasibility: (20 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/beneficiaries, local organizations, public officials, and how the involvement contributed to this application.

(d)Commitment/Match (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.

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 submission and review process.

(a)Eligible Activities: Eligible activities in the PFIG program are construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, 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 within either the Infrastructure or Facilities groups, but cannot apply for activities from both.

Public Infrastructure	Public Facilities
Water system installation/improvements	Community, child, senior and
Sewer system installation/improvements	health centers
Water/sewer system hookups *	Fire stations
Storm drainage	Sheltered workshops
Utility infrastructure	Homeless shelters
Infrastructure in support of new housing	Removal of architectural barriers
Streets/roads/sidewalks	Fire fighting equipment
Parking, curbs and gutters	Salt, sand storage shed
Transfer station
(*as a housing rehabilitation activity	Public works garage
completed in conjunction with a public	Pier/Wharf
infrastructure project)	Libraries

3. Special Program Requirements:

(a)Past Performance: In order to be eligible to apply for the 2000 Public Facilities Infrastructure program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds by prior to application date.

(b)Maximum Public Facilities/Infrastructure Grant Amounts

Public Infrastructure

Activity group	Max. $
Water system installation/improvements, Sewer system installation/improvements, Water/sewer system hookups Storm drainage, Utility infrastructure, Infrastructure in support of new housing	$400,000
Streets/roads/sidewalks	$250,000
Parking, curbs and gutters
$ 50,000
Public Facilities
Activity group
Community, child, senior and health centers, libraries Sheltered workshops, Homeless shelters, Removal of architectural barriers, Pier/wharf, Fire Stations	$250,000
Fire fighting equipment, Salt/sand storage shed Transfer station, Parks and recreation facilities Public works garage	$ 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 and sewer/water system hookups, no housing activities may be assisted with PFIG funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

(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 will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate project LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This "demonstration" can be made either during the pre-application or project development stage but must absolutely occur prior to contract.

(e)Priority for Public Facilities/Infrastructure Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PFIG program funds. A list of the service and specialized service center communities is attached.

4. Selection Process: The selection process will consist of two phases: a pre- application phase and a final application/project development phase.

Pre-Application: The pre-application deadline is December 3, 1999. The pre-application will be in the form of a questionnaire that will seek, at minimum, the following information:

1. Community, utility district and/or administrative agency information

2. Amount of grant request and summary of proposed use of funds

3. Specific health, safety, and community concerns to be addressed

4. Beneficiary profile

5. Municipal, utility and/or administrative agency financial information

6. Utility rate structure and affect of project on rates (where applicable)

7. Municipal tax structure and affect of project on rates (where applicable)

8. Specific conditions that warrant the project completion

9. How the project was identified and prioritized

10. Funding sources sought and/or secured for this project

Each pre-application will be reviewed and evaluated in relation to those of similar sized communities in its activity group by the OCD application review team. The review team will recommend a list of projects to the OCD Director to proceed into the final application/development phase. Upon initial approval, a Project Development Specialist will be assigned to the community to assist in the final application/development phase and will remain as the staff representative to the community until project completion.

C. PUBLIC SERVICE GRANTS

The Public Service Grant (PSG) Program addresses community resource needs by providing funds 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. Structural changes such as construction, renovation or rehabilitation are not eligible for PSG funding.

(b)Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in an area. The clientele of PSG projects are limited to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally low/moderate income persons. Abused Children Battered Spouses Elderly Persons Severely Disabled Adults Homeless Persons Illiterate Adults Migrant Farm Workers Persons Living with AIDS

- OR -

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

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

(i) the public service represents a new service to the community; or 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 2000 Public Service program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application date.

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

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: The maximum length of an application is eight pages. The application deadline is April 4, 2000.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding.

(a)Problem Statement (40 points):

Scope of Problem: (40 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds and the problems facing service providers as they address the issue.

(b)Proposed Solution (40 points):

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

(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.

(iv)Project Continuation: (10 points) - Description of how the program will continue after the PSG has ended or why there will no longer be a need for these services.

(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. Describe how the application reflects citizen concern and beneficiary involvement.

(d)Commitment/Match (10 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.

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, Public Infrastructure, Public Service, Housing Assistance, Micro Loan 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 2000 Downtown Revitalization program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application date.

(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. Communities with plans older than 5 years will be permitted to demonstrate that their plans are under active implementation and the action plan remains valid. The proposed DR activities must be cited in the plan as a recommended action for downtown revitalization.

(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 21, 2000.

Each application will be rated in relation to all others. A minimum of80 points from the Problem, Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding.

(a)Problem Statement (40 points):

(i)Scope of Problems (25 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

(ii)Impact on Economic Vitality (15 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. Include a project budget.

(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/Match (10 points): Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, and the status of those commitments.

(e) National Objective: State how the project, if funded and implemented, will meet the CDBG national objective 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. Counties may apply on behalf of unorganized territories.

(b)Project Eligibility: Pursuant to Section104(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, 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 pose 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 first-served basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. Phase II applications must comply with the following:

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

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

(c)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, 2000. Applications will be accepted on a first-come first-served 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.

19- 498 C.M.R. ch. 19, § 2