19- 498 C.M.R. ch. 33, § 2

Current through 2024-50, December 11, 2024

Section 498-33-2 - COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

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 (HA) funds will be distributed through a grant application selection process with one eligible funding category in 2005.

(a) Special Program Requirement for Housing Rehabilitation Applications: Beginning with the 2004 CDBG program, applications for housing rehabilitation will only be accepted every other year. After selection of the successful 2004 housing rehabilitation applicants, the remainder of the applicants that met or exceeded the minimum 80 point total were placed in rank order and starting with the highest, OCD designated those applicants who will be 2005 housing rehabilitation recipients. The recipient communities are Amity, Bucksport, Caribou, Van Buren and Waterville. Final approval of these 2005 recipients is contingent on the amount of the State of Maine 2005 CDBG allotment from HUD. Successful applicants for housing rehabilitation funding will be prohibited from submission of another housing rehabilitation application for 3 program years. No applications for Housing Rehabilitation will be accepted during the 2005 CDBG program. Applications for Innovative Housing will continue to be accepted on an annual basis.

(b) Eligible Housing Assistance Activities:

(i) Eligible activities under Housing Rehabilitation are rehabilitation of occupied or vacant single-family or multi-family housing units, same site replacement housing and relocation assistance.

(ii) Eligible activities under Innovative Housing Projects include: acquisition, alternative housing, code enforcement, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer's programs, historic preservation, lead based paint removal, new housing construction as allowed by HUD regs, same site replacement housing, provision of potable water or sewer systems, relocation assistance, and removal of architectural barriers and must be directly related to assisting or creating LMI residential housing units.

2. Housing Assessment Planning Priority: All communities applying for 2005 Innovative Housing funds who have completed a comprehensive housing assessment study within the past five years which meets OCD requirements will receive a bonus score of 5 points. New plans submitted with applications will be reviewed by OCD prior to scoring. Housing Assessment Plans deemed incomplete or non-comprehensive will receive no bonus point total. Communities with plans older than five years will be permitted to demonstrate that their plan is either under active implementation and is still valid or has been updated within the past five years.It is no longer mandatory to submit a Housing Assessment Plan.

(a) All communities applying for Innovative Housing 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 cash match of at least 20percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc. contributed to the project.

(iii) Adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

3. Special Program Requirements:

(a) Maximum HA Grant Amount: $400,000

(b) Maximum Housing Assistance Program Costs: The amount of rehabilitation grants or loans available to participants in the HA Program will be no more than $20,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, Life Safety Code violations, foundation work, inadequate sewage disposal, lack of potable water, removal of lead-based paint, asbestos, radon, or other hazardous material, and accessibility modifications. Except for acquisition/relocation as a combined activity, all other eligible activities under the Innovative Housing Program are limited to a maximum of $30,000 per unit assisted

(c) Maximum Administrative Costs: The Housing Rehabilitation Assistance program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 15% of the grant amount.

(d) 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 only, i.e. wells, septic, heating units, removal of hazardous materials, etc.

4. Selection Process: The selection process for all Innovative Housing applications will consist of two phases - an application phase and a project development phase. The 2005 Housing Rehabilitation recipient communities of Amity, Bucksport, Caribou, Van Buren and Waterville must complete all required project development tasks.

(a) Application: The maximum length of an application is five pages, not counting required attachments. The application deadline for the Innovative Housing program is 4:00PM on February 4, 2005. Each application will be rated in relation to all others in a four-stage process.

Stage 1: Review Team Analysis- Members of the five-person OCD Review Team will assign a Review Point Total for each application reviewed. Review Point Totals will consist of the sum of the four scoring areas below and be determined by the total of each sub-scoring area. A maximum of 65 points is obtainable.

(i)Impact (15 points):

*A description of the specific housing problems to be addressed with HA funds - 4 points

*How the problems were identified - 3 points

*How these issues affect LMI persons in the community or region - 5 points

*Past local efforts involving housing projects - 3 points

(ii)Development Strategy (15 points):

*A description of the plan proposed to implement the housing project - 3 points

*How emphasis will be placed on a community based approach - 3 points

*Collaborative efforts to be utilized - 3 points

*Summary of the activities and use of HA funds - 3 points

*Budget Page review - 3 points

(iii)Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project - 4 points

*How firm is documentation of the cash commitment - 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 20%

0% - 15% - 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv)Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation - 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development - 3 points

*Involvement of potential LMI project beneficiaries in development of application and project - 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process - 3 points

Stage 2: Housing Evaluation Factor- Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Housing Evaluation Factor based on the most recent data available in the six areas below. A maximum of 30 points is obtainable.

% Substandard housing - 5 points

% Households spending more than 25% of income for housing - 5 points

% Unemployment in community & % Community unemployment above state average - 5 points

% Community is over State equalized tax rate - 5 points

% Community LMI - 5 points

% Community population below 150% of poverty - 5 points

Stage 3: Housing Assessment Bonus- 5 bonus points will be assigned to each application for which an approved comprehensive housing assessment study has been submitted to OCD.

Stage 4: Final Application Score- Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest; the Housing Evaluation Factor; and the Housing Assessment Bonus. A minimum Final Application Score of 80 points will be required for an application to be considered for funding. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

B. HOME REPAIR NETWORK PROGRAM (Limited to the City of Rockland)

The Home Repair Network Program (HRN) provides funding to address housing problems of low- and moderate-income persons by combining CDBG funding with the Maine State Housing Authority and the United States Department of Agriculture Rural Development Program funding. This program will provide housing rehabilitation services administered on a regional basis throughout Maine, except as stated in 1 (b) below.

1. Special Threshold Criteria and Certifications: HRN Program funds will be distributed through a set aside of CDBG funds provided to the City of Rockland as the lead community. The lead community will establish a legally binding contract with each of the seven Maine Community Action Agencies or other entities identified in the Home Repair Network rules that will act as the program administrators. Prior to award of grant funds by OCD, the lead community must complete all Project Development requirements.

(a) Eligible Activities:

(i) Eligible activities under the HRN Program are rehabilitation of occupied or vacant single-family or multi-family housing units, demolition, same site replacement housing, provision of potable water and sewer systems, removal of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers, and relocation assistance.

(b) Housing units ineligible for Home Repair Network assistance:

(i) Housing units located in communities that have current CDBG Housing Rehabilitation programs or the entitlement communities of Auburn, Bangor Lewiston, South Portland and Portland are not eligible for financial assistance under the HRN program. Units in the City of Biddeford will also be ineligible if it gains status as an entitlement community for the 2005 CDBG program.

(c) The lead community must certify that each of the seven designated program administrators will:

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

(iii) Adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

2. Special Program Requirements:

(a) Maximum HRN Grant Amount: $700,000, with $100,000 allocated to each of the seven identified regions.

(b) Maximum Home Repair Network Program Costs: The amount of grants or loans available to participants in the HRN Program will be no more than $20,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, Life Safety Code violations, foundation work, inadequate sewage disposal, lack of potable water, removal of lead-based paint, asbestos, radon or other hazardous material, and accessibility modifications. In no case may the maximum of $30,000 be exceeded.

(i)Maximum Administrative Costs: The HRN Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 12.5% of the grant amount. The City of Rockland may utilize up to $750.00 in general administrative funds for eligible expenditures under the Single Audit Act.

(c) Section 8 H ousing Quality Standards: All units assisted or created with HRN 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 only, i.e. wells, septic, heating units, removal of hazardous materials, etc. In addition, all units must comply with other applicable standards included in the HRN contract.

C. PUBLIC FACILITIES GRANT PROGRAM

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

1. Special Threshold Criteria and Certifications: PF Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the PF program are construction, acquisition, reconstruction, rehabilitation, site clearance, historic preservation, and relocation assistance associated with public facilities projects.

(b) Match: All communities applying for PF funds must certify that they will provide a cash match of at least 25 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

3. Special Program Requirements:

(a) Maximum PF Grant Amounts

Activity Group Numbers	Maximum Amount
1)Fire Stations	$300,000
2) Community, child, senior, and health centers, libraries sheltered workshops, homeless shelters, pier/wharf	$300,000
3) Removal of architectural barriers (as a distinct, stand-alone project)	$100,000
4) Historic preservation (as a distinct, stand-alone project)	$100,000
5) Fire fighting equipment, salt/sand storage shed transfer station, parks and recreation facilities public works garage, dams	$ 50,000

(b) Funding Restrictions: PF may not be used for the purpose of job creation/retention or housing activities.

(c) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as "blighted." This demonstration must be made as part of the application.

(d) Requirement for Applications for Removal of Architectural Barriers as a Stand Alone Project: Communities seeking to assist any existing facility utilized for the conduct of general local government must be a 51% or more low-to-moderate income community.

(e) Requirements for Applications for Historic Preservation as a Stand Alone Project: Applicants must submit with the application a letter from the State Historic Preservation Officer endorsing the proposed project and certifying that the facility is currently on or eligible for inclusion on, the National Register of Historic Places.

(f) Priority for Public Facilities Projects: Regional Service Centers and Contiguous Census Designated Places and Compact Urban Areas Designated as Regional Service Centers and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PF program funds. Lists of all service center communities are available from the State Planning Office or OCD.

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

(a) Application: The application deadline for the PF Program is 4:00PM on December 10, 2004. Each application will be rated in relation to all others in a three-stage process.

(i)Impact (15 points):

*A description of the why the project is necessary - 3 points

*Conditions warranting new construction or renovations, including health and safety concerns- 4 points

*How these conditions affect LMI persons in the community or region - 4 points

*Size and make up of user base of facility - 2 points

*Why PF funds are necessary for project - 2 points

(ii)Development Strategy (20 points):

*A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location - 5 points

*Specific use of PF funds - 3 points

*Positive effect on LMI persons - 3 points

*Project timeline, engineering or architectural work completed to date and how PF funds will be expended in a timely manner - 6 points

*Budget Page review - 3 points

(iii)Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project - 4 points

*How firm is documentation of the cash commitment - 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 25%

0% - 15% - 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv)Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation - 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development - 3 points

*Involvement of potential LMI project beneficiaries in development of application and project - 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process - 3 points

Stage 2: Community Evaluation Factor- Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the five areas below. A maximum of 30 points is obtainable.

% Households spending more than 25% of income for housing - 6 points

% Unemployment in community & % Community unemployment above state average - 6 points

% Community is over State equalized tax rate - 6 points

% Community LMI - 6 points

% Community population below 150% of poverty - 6 points

Stage 3: Final Application Score- Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest and the Community Evaluation Factor. A minimum Final Application Score of 80 points will be required for an application to be considered for funding. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM

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

1. Special Threshold Criteria and Certifications: PI Program funds will be distributed through an annual grant application submission and review process.

(a) Eligible Activities: Eligible activities in the PI program are construction, acquisition, reconstruction, installation, relocation assistance associated with public infrastructure, and infrastructure in support of new affordable LMI housing construction.

(b) Match: All communities applying for PI funds must certify that they will provide a cash match of at least 25 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

3. Special Program Requirements:

(a) Maximum PI Grant Amounts

Activity Group Numbers	Maximum Amount
1) Water system installation/improvements, sewer system installation/improvements, water/sewer system hookups, storm drainage, utility infrastructure (Road or street reconstruction is not eligible)	$500,000
2) Infrastructure in support of new LMI affordable housing	$500,000
3) Streets/roads/sidewalks, parking, curbs, gutters	$200,000

(b) Funding Restrictions: PI funds may not be used to assist infrastructure for the purpose of job creation/retention. Job creation/ retention infrastructure activities are eligible in the Economic Development 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 PI funds.

(c) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. This demonstration must be made as part of the application.

(d) Priority for Public Infrastructure Projects: Regional Service Centers and Contiguous Census Designated Places and Compact Urban Areas Designated as Regional Service Centers and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PI program funds. Lists of the service center communities are available from the State Planning Office or OCD.

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

(a) Application: The application deadline for the PI Program is 4:00PM on December 10, 2004. Each application will be rated in relation to all others in a three-stage process.

(i)Impact (15 points):

*A description of the why the project is necessary, including health and safety concerns - 4 points

*How the project was prioritized locally, including studies, testing, and citizen concerns - 3 points

*How these conditions affect users, including LMI persons in the community or region - 4 points

*Size and make up of user base and target area of projected infrastructure project - 2 points

*Why PI funds are necessary for project - 2 points

(ii)Development Strategy (20 points):

*A description of the new or replacement infrastructure, including size, design factors, alleviation of health and safety factors and location - 5 points

*Specific use of PI funds - 3 points

*Positive effect on users, particularly LMI persons - 3 points

* Project timeline, engineering and design work completed to date and how PI funds will be expended in a timely manner - 6 points

*Budget Page review - 3 points

(iii)Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project - 4 points

*How firm is documentation of the cash commitment - 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 25%

0% - 15% - 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv)Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation - 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development - 3 points

*Involvement of potential LMI project beneficiaries in development of application and project - 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process - 3 points

% Households spending more than 25% of income for housing - 6 points

% Unemployment in community & % Community unemployment above state average - 6 points

% Community is over State equalized tax rate - 6 points

% Community LMI - 6 points

% Community population below 150% of poverty - 6 points

E. PUBLIC SERVICE GRANT PROGRAM

The Public Service Grant (PSG) Program addresses community resource needs by providing funding for operating expenses, equipment, and program materials for public service programs which will benefit low/moderate income (LMI) persons.

1. Special Threshold Criteria and Certifications: PSG 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 noteligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in the service 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 LMI 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 those determined to be LMI persons for the twelve-month period prior to receiving program benefit.

(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 match equivalent of 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) Maximum PSG Amount: $50,000

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

(b) Application: The maximum length of an application is five pages, not counting required attachments. The application deadline for the PSG program is 4:00PM on April 8, 2005. Each application will be rated in relation to all others in a three-stage process.

(i)Impact (15 points):

*A description of the scope, magnitude and severity of the identified problems - 3 points

*Past effort to deal with the identified problems - 3 points

*Conditions requiring a new or expanded service - 3 points

*Issues faced by service providers including capacity, finances and staffing - 3 points

*Why PSG funds are critical for the project - 3 points

(ii)Development Strategy (20 points):

*A description of the new or expanded service, specific use of PSG funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted beneficiaries - 4 points

*How PS funds will be utilized solely to assist LMI persons or a HUD approved Limited Clientele group - 3 points

*Project timeline, including a start date, tasks completed to date and how PSG funds will be expended in a timely manner - 4 points

*Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries, and the experience of the overall PSG grant administrator - 3 points

*Budget Page review - 3 points

*How the public service established or expanded with PSG funding will continue after the PSG funding ends, or there will no longer be a need for these services after the PSG program ends - 3 points

(iii)Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project - 3 points

*How firm is documentation of the cash commitment - 3 points

*Matching Funds Table review - 5 points

*% which all firm commitments exceed minimum 20%

0% - 15% - 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 5 points

(iv)Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation - 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development - 3 points

*Involvement of potential LMI project beneficiaries in development of application and project - 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process - 3 points

% Households spending more than 25% of income for housing - 6 points

% Unemployment in community & % Community unemployment above state average - 6 points

% Community is over State equalized tax rate - 6 points

% Community LMI - 6 points

% Community population below 150% of poverty - 6 points

G. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to 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. Qualified applicant communities must have a downtown district meeting the definition of PL 776 enacted by the 119^th legislature.

1. Special Threshold Criteria and Certifications: DR 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, Community Enterprise, or Economic Development programs as relevant to the revitalization of a downtown district.

(b) Match - All communities applying for DR Program funds must certify that they will provide a cash match equivalent to 25 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc. contributed to the project.

2. Special Program Requirements

(a) Planning Requirements: Applicants must have completed a comprehensive downtown revitalization planning process within the past five years. Communities with plans older than five years must demonstrate that their plans are under active implementation, the action plan remains valid, or have been updated within the past 5 years. The proposed DR activities must be in the plan as recommended actions necessary for downtown revitalization.

(b) Maximum DR Award: $500,000

(i) Bonus Points for Service and SpecializedCenter Communities: Applicants will receive three bonus points if they have been identified by the State Planning Office as a Regional Service Center or a Contiguous Census Designated Place and Compact Urban Area Designated as Regional Service Center.

(c) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. This demonstration must be made as part of the application.

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

(a) Application: The maximum length of an application is eight pages, not counting required attachments. The application deadline for the DR Program is 4:00PM on January 14, 2005. Each application will be rated in relation to all others in a four-stage process.

(i)Impact (15 points):

*Scope and magnitude of identified problems; specific infrastructure, resources or programs that are lacking; and how these problems are obstacles for successful revitalization of the downtown area - 4 points

*How the problems are consistent with those identified in the community's Downtown Action Plan - 2 points

*How the problems affect LMI persons or contribute to slum/blight conditions - 3 points

*How the problems negatively impact the local economy and the viability of existing downtown area businesses or new development and expansion - 4 points

*Why DR funds are necessary for project - 2 points

(ii)Development of Strategy (20 points):

*Specific activities, including location, size and design features to be addressed in this downtown revitalization effort; how these activities address each problem identified; or, if aspects of the Action Plan are identified to be addressed in the future, what are the potential future solutions and possible funding sources - 4 points

*How the proposed activities provide a long-term solution to the identified problems - 2 points

*Specific use of DR funds - 2 points

*Positive effect on LMI persons and/or alleviation of slum/blight conditions - 3 points

* Project timeline; start date; engineering and design work completed to date; involvement of local businesses; who will be implementing the DR project; and how DR funds will be expended in a timely manner - 4 points

*How the DR project will stimulate business in the downtown area and provide for long-term viability - 3 points

*Budget Page review - 2 points

(iii)Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project - 4 points

*How firm is documentation of the cash commitment - 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 25%

0% - 15% - 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv)Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation - 2 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development - 3 points

*Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in identification of problems and development of the application and project - 4 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process - 3 points

% Households spending more than 25% of income for housing - 6 points

% Unemployment in community & % Community unemployment above state average - 6 points

% Community is over State equalized tax rate - 6 points

% Community LMI - 6 points

% Community population below 150% of poverty - 6 points

Stage 3: Service Center Bonus - 3 bonus points will be assigned to each application submitted by a SPO designated Regional Service Center or a Contiguous Census Designated Place and Compact Urban Area Designated as Regional Service Center.

Stage 4: Final Application Score- Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest; Community Evaluation Factor and the Service Center Bonus. A minimum Final Application Score of 80 points will be required for an application to be considered for funding. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

H. COMMUNITY ENTERPRISE GRANT PROGRAM

The Community Enterprise Program (CE) provides grant funds to assist in innovative solutions to problems faced by small or micro-businesses and facilitate good management practices and business facade improvements in downtown and village areas. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

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

2. Program Activities: Applicants may apply in more than one of the activity groups listed below but are limited to a total of $125,000 in CE funds.

(a) Eligible Activities:

(i) Eligible activities under the Micro-Grant/Loan-Micro-Enterprise Grant/Loan category are grants or loans to for-profit or non-profit businesses.

(ii) Eligible activities under the Business Façade Grants and Streetscapes category for Façade Grants are: grants to for-profit or non-profit businesses for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved exterior improvements. Interior improvements are not allowed. Eligible activities for Streetscapes are: pocket parks, benches, street lighting, tree plantings, signage, traffic calming improvements, sidewalks and other approved improvements. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements are not eligible.All streetscape improvements must take place on public property.

3. Special Program Requirements:

(a) Maximum CE Grant Amount

Activity Group Numbers	Maximum Amount
1) Micro-Grant/Loan-Micro-Enterprise Grant/Loan	$100,000
2) Business Facade Grants & Streetscapes	$125,000

(b) Maximum Amount of Community Enterprise Grant/Loan Assistance to Businesses:

(i) Micro-Grant/Loan-Micro-Enterprise Grant/Loan: $25,000

(ii) Business Façade Grant: $25,000

(c) Project Benefit:

(i)Micro Grant/Loan: At a minimum, 51% of the jobs created or retained as a result of the MG/L project must be taken by persons of low and moderate income. At least one job must be created as a result of Micro Grant/Loan assistance. Jobs created/ retained must be in the community applying for the MG/L, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for MG/L assistance. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii)Micro-Enterprise Grant/Loan: Existing or developing businesses that have, or will have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Employees are not considered in meeting project benefit.

(iii)Business Facade Grants: Projectbenefit will be metwhen exterior improvements and signage on an existing business take place in a designated slum/blight area, or documentation exists that a business qualifies under a spot blight basis.

(iv)Streetscapes: Projectbenefit will be metwhen streetscapes take place in a designated slum/blight area or the applicant community where the project will take place is 51% or greater LMI as determined by HUD and the U.S. Census.

4. Special Micro Grant/Loan Category Requirements:

(a) Necessary and Appropriate: All grants/loans made from the Micro-Grant/Loan activity Group to for-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without MG/L assistance.

(b) Micro Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Activity Group eligible loans will be able to capitalize a ML revolving loan fund with their ML loan repayments.

5. Selection Process: The selection process will consist of two phases; an application phase and a project development phase.

(a)Application: The maximum length of an application is five pages, not counting required attachments. The application deadline for the CE Program is 4:00PM on January 14, 2005. Each application will be rated in relation to all others in a three-stage process.

(i)Impact (25 points):

*Scope and magnitude of identified problems; and how these problems are obstacles for successful revitalization of the village or downtown area - 7 points

* Why CE funds are necessary for the project; why other grant or loan funds are not available locally to assist businesses or local government with their development and site improvement needs - 6 points

*How the problems affect LMI persons and/or contribute to slum/blight conditions - 6 points

*How the problems negatively impact the local economy and the viability of existing downtown or village area businesses or new development and expansion - 6 points

(ii)Development of Strategy (25 points):

*Specific activities, including location, size and design features to be addressed in this application; specific use of CEG funds - 6 points

*Identification and description of potential business grant/loan applicants and their current needs; or how areas in need of streetscape improvements were identified and prioritized - 4 points

* Project timeline; activities or actions completed to date; capacity and related experience which will enable the applicant to market and conduct a grant/loan program or streetscape improvement effort; and how CEG funds will be expended in a timely manner - 7 points

*How the CEG project will stimulate business in the downtown or village area and provide for long-term viability - 4 points

*Positive impact on LMI persons and/or or alleviation of slum/blight conditions - 4 points

(iii)Citizen Participation (20 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 4 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation - 4 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development - 4 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process - 4 points

% Households spending more than 25% of income for housing - 6 points

% Unemployment in community & % Community unemployment above state average - 6 points

% Community is over State equalized tax rate - 6 points

% Community LMI - 6 points

% Community population below 150% of poverty - 6 points

Stage 3: Final Application Score- Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest; Community Evaluation Factor and the Service Center Bonus. A minimum Final Application Score of 80 points will be required for an application to be considered for funding. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

I. URGENT NEED GRANT PROGRAM

The Urgent need Grant (UN) Program provides funding to communities to address serious and immediate threats to health and welfare which are declared state or federal disasters.

1. Special Threshold Criteria and Certifications:

(a) 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 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, or previous or existing budgetary commitments, precludes it from assuming the additional financial obligation needed for this project; 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) State or Federal Declaration of Disaster: The applicant must submit documentation that the project to be assisted with UN funds will take place in an area that has received a state or federal declaration of disaster. In addition, the activities to be assisted must be a direct result of the event leading to the declaration.

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

(d) Maximum UN Grant Amount: The lesser amount of 50% of the total project cost or $100,000.

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

Application: An UN 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.

(f) a copy of a state or federal declaration of disaster.

4. Phase II Project Development: Prior to consideration of a grant award, all UN proposals must meet the four Threshold criteria and the Special Program requirements. Project Development Phase 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: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

5. Approval Process: The UN funds will be available beginning March 4, 2005.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 Director, Office of Community Development's decision will initiate the Project Development Phase process necessary for contract award.

19- 498 C.M.R. ch. 33, § 2