As used in this Proposed 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 during the grant period provided the grantee
submits an acceptable Program Income Plan. 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 recent open grant. The funds are
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
Plan.
(c) Program Income
Received by the State: Up to 2% of program income returned to the State may 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 must
submit a Program Income Plan to OCD. The 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 for the receipt and reuse of
the program income;
(iv) A
description of the grantee's administrative capacity to manage and track all
program income received during and after a grant and to manage the activity to
be funded with program income. The grantee must also indicate how much of the
program income, not to exceed 10% in any program, will be used for
administration of the program income.
(e) Program Income Plan Schedule:
(i) Housing Assistance, Public
Facilities/Infrastructure, Public Service, Business Assistance, Downtown
Revitalization, Urgent Need, Micro-Loan, Economic Development Infrastructure:
submit during the Phase II process;
(ii) Development Fund: within forty-five (45)
days of grant award;
(iii) Interim
Finance Program: with the IFP application; and
(iv) Regional Assistance Fund: with the RAF
application.
2. Special Program Requirements:
(a) Development Fund Program Income: Except
for those grantees who can adequately demonstrate the reuse of program income
for the "same activity" that generated the program income, grantees will return
the repayments to the State to be placed in a State CDBG Development Fund
Revolving Loan Fund (RLF) Program.
For these purposes, "same activity" shall mean the same
business that originally received CDBG assistance.
(b) Interim Finance Program Income: The
assignment of program income will be negotiated at the time of grant
award.
(c) Regional Assistance Fund
Program Income: The assignment of program income will be negotiated at the time
of grant award.
(d) Micro-Loan
Program Income: Grantees who demonstrate demand for additional Micro-Loan
Program (MLP) eligible loans will be able to capitalize a MLP revolving loan
fund with their MLP loan repayments. Grantees who do not close MLP loans to
three or more different businesses or grantees who do not demonstrate demand
for additional eligible loans will return MLP repayments to DECD.
