Section 498-44-5 - REDISTRIBUTION OF GRANT FUNDSThis section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.
1. Local Government Grants from the State: Applicants receiving grants under the 2016 CDBG program but failing to have their projects substantially underway (environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.
Unexpended funds remaining in the grantee's CDBG account at grant closeout, funds remaining in a grantee's award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.
2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2016 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contractand can be used to make additional awards under any eligible CDBG program activity.3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for competitions that did not receive funding. The OCD may redistribute available funds to any project deemed to be in the best interest of, and that offer CDBG definable benefits to the State of Maine.19- 498 C.M.R. ch. 44, § 5