Section 498-6-3 - Redistribution of Grant FundsThis section describes the methods by which disencumbered funds and program income is to redistibuted by the State.
A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS1. Local Government Grants from the State: Local governments receiving grants as a result of the 1990 Community Revitalization program but unable to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within six months of the grant award, shall have their grant canceled by the State. Unexpended grant funds will be awarded to the community with the next highest score on the 1991 waiting list or added to the available monies for the 1992 competition. The decisions on which option to take will be made by the Director, based on staff evaluation. Unexpended funds remaining in the grantee's CDBG account at grant closeout, funds remaining in a grantee's award but not drawn down upon grant closeout, funds returned to the State because of disallowed costs, and funds remaining due to the lack of adequate program competition will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be made by the Director, based on staff evaluation. In the case of funds added to open grant(s), redistribution will give priority to grants needing additional CDBG funds in order to complete the activities described in their application to the State and secondly to grants for additional activities which meet the State and local community development objectives.
2. Unallocated State Grants To Local Governments: Unallocated grant funds from the Phase II Planning Grants, the Development Fund or the Community Revitalization Program will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be made by the Director, based an staff evaluation.3. State Grants from the Department of Housing and Urban Development (HUD): Additional HUD financial allocations to State of Maine following award to local grantees will be added to any open grant or added to the available monies bar the next year's competition. The decision on which option to take will be based an staff evaluation. In the case of funds added to open grant(s), redistribution will give priority to grants needing additional CDBG funds in order to complete the activities described in their application to the State and secondly to grants for additional activities which meet the State and local community development objectives.B. PROGRAM INCOME As used in this Final Statement, program income means the gross income received by a grantee from any grant-supported activity.
1. General Program Income Requirements: (a) Program Income Received During the Grant Period: Program, income may be retained by a grantee for a specific purpose or activity daring the grant period provided the grantee submits an acceptable Program Income Plan, as described in Section 3(B)(1)(d) of this Final Statement, during the selection process. If not, the grantee must expend program income for all activities, prior to requesting additional grant funds for any activity.(b) Program Income Received After the End of a Grant Period: Grantees must transfer all program income, at the end of a grant, to the most recently encumbered grant. The funds must be considered program income of the new grant. Grantees that desire to retain program income received after the end of their last open CDBG grant, must submit a Program Income Elan as described in Section 3(B) (1) (d) of this Final Statement.
(c) Program Income Received by the State: Up to 2% of program income that is returned to the State will be used for administrative costs. The balance of program income (98%) will be used to fund new or previously committed CDBG obligations.(d) Program Income Plan: Each grantee anticipating program income during or after the end of a grant period must submit a Program Income Plan to OCD. A Program Income Plan shall include the following:(i) A description of the Title I eligible activities and National Objective(s) that will be funded with program income;(ii) Documentation of the need for the program income in the activity proposed for reuse;(iii) A schedule far the receipt and reuse of the program income; and(iv) A description of the grantee's administrative capacity to manage the program income, to manage the activity to be funded and to maintain the required recordkeeping systems for the time period that program income receipts are anticipated.(e) Program Income Plan Submission: The following schedules must be adhered to when submitting a Program Income Plan: (i) Community Revitalization and Reserve Grants: during the Phase II process;(ii) Development Fund: within forty-five (45) days of grant award; and(iii) Interim Finance Program: with the IFP application.2. Program Income Special Requirements: (a) Development Fund Program income: Development Fund loan repayments are considered program income. Except for those grantees who can adequately demonstrate the reuse of program income far the "same activity" that generated the program income, all DF loan repayments will be returned to the State and will be placed in a State CDBG Development Fund Revolving loan Fund Program. For these purposes, "same activity" shall mean the same business that originally received CDBG assistance.
Loans made from the State RIF must be provided as grants to local governments for loans to businesses and/or developers, must use a local review process approved by the DECD, and must meet the 60% low to moderate income benefit threshold.
(b) interim Finance Program Income: The assignment of program income will be negotiated at the time of grant award.19- 498 C.M.R. ch. 6, § 3