19- 498 C.M.R. ch. 32, § 1

Current through 2024-50, December 11, 2024

Section 498-32-1 - PROGRAM OVERVIEW

A. CDBG OBJECTIVES

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

Benefit to low and moderate income persons, or 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 investments; Foster partnerships between groups of municipalities, state and federal entities, mutli-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 2004 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under four broad categories - Community Development, Economic Development, Planning and Special Projects.

1. Community Development

a. Housing Assistance Grants

b. Home Repair Network

c. Public Facility Grants

d. Public Infrastructure Grants

e. Economic Development Infrastructure Grants

f. Public Service Grants

g. Downtown Revitalization Grants

h. Community Enterprise Grants

i. Urgent Need Grants

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Business Assistance Program

d. Interim Financing Program

e. Section 108 L oan Program (Contingent upon HUD approval)

3. Planning

a. Community Planning Grants

b. Project Development Phase Planning Grants

4. Special Projects

a. Special Projects Matching Fund

b. Lead Hazard Control Fund

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 up to 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 with Federal and State requirements.

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 ADMINISTRATION REQUIREMENT

Communities must employ a certified grant administrator and in the case of Housing Rehabilitation a certified rehabilitation technician (as employees or consultants) or send whoever will be administering their program to the next offered grant administrator training program. The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities, Community Planning Grants and Project Development Planning activities are exempt from this requirement.

F. PROGRAM TIMEFRAME

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

Public Facilities...................................................November 21, 2003

Public Infrastructure...................................................November 21, 2003

Downtown Revitalization...................................................January 16, 2004

Community Enterprise...................................................January 16, 2004

Housing Assistance...................................................February 6, 2004

Economic Development Infrastructure......................February 20, 2004

(May 21 and August 20 application deadlines ......................May 21, 2004

are based upon availability of funds) ......................August 20 2004

Economic Development Programs.....................................February 20, 2004

(May 21 and August 20 application deadlines ......................May 21, 2004

are based upon availability of funds)......................August 20, 2004

Community Planning....................................................March 5, 2004

...................................................August 6, 2004

Urgent Need...................................................1^st come basis beginning March 5, 2004

Public Service...................................................April 8, 2004

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

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

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2004 Program Budget

FY 2004 CDBG Budget $16,850,000

Administration 437,000

Technical Assistance Administration 168,500

Regional Council Technical Assistance 124,500

Special Projects Matching Fund 100,000

Lead Hazard Control Fund 100,000

1. Housing Assistance Grants 2,300,000

2. Home Repair Network Program 700,000

3. Public Infrastructure Grants 3,700,000

4. Economic Development Infrastructure Grants 1,800,000

5. Public Facilities Grants 1,900,000

6. Public Service Grants 200,000

7. Urgent Need Grants 200,000

8. Downtown Revitalization Grants 1,200,000

9. Community Enterprise Grants 350,000

10. Economic Development Fund

Business Assistance 1,500,000

Regional Assistance Fund 800,000

Pine Tree Development Zones 1,000,000

Development Fund *

Interim Financing Program **

11. Community Planning Round 1 - March 5, 2004 110,000

Round 2 - August 6, 2004 110,000

12. Project Development Phase Planning Grants 50,000

* The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

*** If the DECD application to HUD for the Section 108 L oan Program is approved, the 2004 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

1. Federal and State Certification for Local Governments:

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 Civil Rights Acts of 1964 and 1968; Not attempt to recover certain capital costs of improvements funded in whole or 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, elected officer, 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 requirements apply 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, eligible applicants 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 applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2004 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance, Regional Assistance Fund and designated Public Infrastructure grant program activities, units of general local government and Unorganized Territory that benefited from a 2003 award may not apply again in that specific program until the 2005 program. Public Infrastructure grantees in Activity Group Number 1, as listed in Section 2. C. 3. (a) (1) on Page 20 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Rehabilitation Grantees: Beginning with the 2004 CDBG program all applicants awarded a Housing Rehabilitation grant may not apply again for Housing Rehabilitation funds until the 2007 program. Applicants awarded a 2004 Housing Rehabilitation grant may not apply in the Innovative Housing Category until the 2006 program.

(d) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(e) Past Performance: In order to be eligible to apply for a 2004 Community Development Block Grant program, communities that received CDBG grants in or prior to 2000 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2001 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2002 must have obligated 50% of their benefit activity funds prior to application due date. Communities that received 2003 CDBG grants must be under contract with DECD.

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;

2) the recipient has received unanticipated program income and expenditure of grand 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 Director, Office of Community Development.

(f) 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 Director of Office of Community Development may grant waivers for cause.

(g) 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.

(h) 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.

(i) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if program benefits are not achieved.

(j) Changes in Title 30-A, Subsection 4349-A as amended by PL 776 : Significant changes were made to the "Growth Management Act" by the 119^th 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.

(k) Preference for Communities: In accordance with Title 30-A subsection 4349-A(3), OCD is required to give preference in the award of grants to 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, except for the entitlement communities of Bangor, Lewiston, Auburn, and Portland, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of the Unorganized Territory. 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 . Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Scoring Applications:

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. All program applications with the exception of the Economic Development Program will be scored on a 100-point maximum scoring basis with allowance for bonus points whereapplicable. Dropping the lowest and highest scores assigned by members of the 5-person scoring team, averaging the remaining scores and adding any applicable bonus points will determine final scores. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An invitation into the Project Development Phase is not a guarantee of funding. Successful communities will receive an amount determined by the OCD for their project.

5. Project Development Phase:

(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 is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. 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 Director of Office of Community Development may grant waivers for cause.

19- 498 C.M.R. ch. 32, § 1