19- 498 C.M.R. ch. 30, § 1

Current through 2025-03, January 15, 2025
Section 498-30-1 - PROGRAM OVERVIEW
A. CDBG OBJECTIVES

All CDBG funded activities must meet one of the three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons, Preventing or eliminating slums or blights, or Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

are part of a long-range community strategy; improve deteriorated residential and business districts and local economic conditions, provide the conditions and incentives for further public and private investment, foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems, and minimize development sprawl consistent with the State of Maine Growth Management Act, and support the revitalization of downtown areas.
B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2002 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories - Community Development, Economic Development and Planning.

1. Community Development
a. Housing Assistance Grants
b. Public Facility Grants
c. Public Infrastructure Grants/Loans
d. Public Service Grants
e. Downtown Revitalization Program
f. Downtown Initiative Grants
g. Urgent Need Grants
2. Economic Development
a. Development Fund
b. Regional Assistance Fund
c. Micro-Loan Program
d. Economic Development Infrastructure Program
e. Business Assistance Program
f. Regional Super Park Program
g. Interim Financing Program
h. Section 108 L oan Program (Contingent upon HUD approval)
3. Planning
a. Community Planning Grants
b. Project Development Phase Planning Grants
C. STATE ADMINISTRATION
1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's CDBG Program in accordance with Federal and State requirements.
2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.
D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. NOTICE - GRANT ADMINSTRATION REQUIREMENT

Beginning with the 2000 CDBG grant awards, communities must employ a certified grant administrator and/or rehabilitation technician (as employee or consultant) or send whoever will be administering their program to the next offered grant administrator training program. The CDBG Program Director must approve waivers of this requirement in writing.

F. PROGRAM TIMEFRAME

Application deadlines - 4:00PM EST on the dates listed:

Housing Assistance.....................February 22, 2002

Public Facilities.........................January 18, 2002

Public Infrastructure......................January 18, 2002

Public Service...........................April 5, 2002

Downtown Revitalization....................February 8, 2002

Downtown Initiative.....Limited to the Town of Lincoln, Beginning April, 2002

Urgent Need...............1st come basisbeginning March 1, 2002

Development Fund................................Open

Regional Assistance Fund.........................Open

Micro-Loan...........................March 8, 2002

Economic Development Infrastructure......Ongoing beginning January 3, 2002

(official application acceptance, 1st Thursday of every month)

Business Assistance Program.......................Open

Regional Super Park........................August 2, 2002

Interim Financing Program.........................Open

Community Planning.......................March 8, 2002

Project Development Phase Planning Grants..................Open

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2002 Program Budget

FY 2002 CDBG Budget $17,062,000
Administration 441,240
Technical Assistance Administration 170,620
Regional Council Technical Assistance 145,140
Special Projects Matching Fund 100,000
1. Housing Assistance Grants 2,700,000
2. Public Infrastructure Grants/Loans 3,600,000
3. Public Facilities Grants 1,800,000
4. Public Service Grants 200,000
5. Urgent Need Grants 200,000
6. Downtown Revitalization Grants 800,000
7. Downtown Initiative Grant Set-Aside (Town of Lincoln) 400,000
8. Regional Super Park Program 1,000,000
9. Development Fund 1
10. Interim Financing Program
11. Economic Development Fund 5,000,000
Business Assistance Economic Development Infrastructure Regional Assistance Fund
12. Micro Loan Program 200,000
13. Community Planning 250,000
14. Project Development Phase Planning Grants 55,000
15. Section 108 L oan Program 2

1 Funds will not be allocated to the Development Fund Program for the 2002 Program; however, Development Fund Program repayments will be used to make DF awards during the 2002 Program Year. DF loan repayments are estimated to be $650,000 during this period.

2 If the DECD application to HUD for the Section 108 L oan Program is approved, the 2002 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS:

1. Federal and State Certifications for LocalGovernments:

All communities applying for CDBG funds must certify that they will:

minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Act; take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968; not attempt to recover certain capital costs of improvements funded in part with CDBG funds; establish a community development plan; meet all required State and Federal public participation requirements; comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; review the project proposed in the application to ensure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.
2. The following general requirementsapply to all programs:
(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), Economic Development Infrastructure (EDI), Business Assistance (BA) and Regional Assistance Fund (RAF) programs, units of general local government and unorganized territories may not apply for, or benefit from, more than one grant per program category in any grant year.

Communities participating in multi-jurisdictional applications may submit their own application for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance, and Public Infrastructure grant programs, units of general local government and unorganized territories that benefited from a 2001 award may not apply again in that specific program until the 2003 program. Public Infrastructure grantees with the exception of those in the streets/roads/sidewalks, parking, curbs and gutter category may apply for funds grants in consecutive years to complete the same project.
(c) Restriction of Grant Awards: OCD may restrict the award of grants to communities with outstanding audit or monitoring findings or a record of administrative misconduct.
(d)Grant Termination: OCD will terminate a community's grant if progress on the project is not apparent within 6 months from the date of contract signing. The CDBG Program Director may grant waivers for cause.
(e) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.
(f) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.
(g)Repayment of Grant Funds: Recipients must repay to the State of Maine all funds expended if program benefits are not achieved.
(h) Changes in Title 30-A, Subsection 4349-A as amended by PL 776 :

Significant changes were made to the "Growth Management Act" by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for "growth related capital investments" as defined in the statute.

(i) Preference for Communities: In accordance with Title 30-A subsection 4349-A(3) OCD is required to give preference in the award of grants for capital investments not defined as "growth related" in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter over a municipality that does not obtain the certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance.
3. Eligible Applicants:

All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for Economic Development Infrastructure, Business Assistance, Development Fund, Regional Assistance Fund or Public Service grant programs on behalf of a collaboration of communities.

4. Scoring of Applications

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Final scores will be determined by dropping the lowest score assigned by a scoring team member and averaging the remaining scores and applying any applicable bonus points. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase. An invitation into the Project Development Phase or notification to complete a final application is not a guarantee of funding. Successful communities will receive an amount determined by the OCD for their project.

5. Project Development Phase & Final Application Project Development
(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility and/ or market studies.
(b) Management Plan: Details of the structure and methods established by the community for program management.
(c) Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.
(d) Project Eligibility: Verification that proposed activities are eligible under the Act.
(e) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.
(f) Environmental Review: Review of project for compliance with state and federal environmental regulations.
6. Project Development Phase Timeframe for Completion and OCD Assistance The goal of the Project Development Phase or final application is a grant contract for CDBG funds. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Communities not completing their Project Development Phase or final application within six months of receiving an invitation will forfeit their grant award. The CDBG Director may waive this requirement for extenuating circumstances.

19- 498 C.M.R. ch. 30, § 1