Code of Maine Rules
19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT
Chapter 32 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM: 2004 FINAL STATEMENT
Section 498-32-2 - COMMUNITY DEVELOPMENT

Universal Citation: 19 ME Code Rules ยง 498-32-2

Current through 2024-13, March 27, 2024

A. HOUSING ASSISTANCE GRANTS

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 funds will be distributed through a grant application selection process with two eligible funding categories, Housing Rehabilitation and Innovative Housing Projects. Applicants may only apply in one category.

2. 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 unsuccessful applicants that meet or exceed the minimum 80 point total will be placed in rank order and starting with the highest, OCD will designate those applicants who will be 2005 housing rehabilitation recipients. The number of applicants designated and final approval will be contingent upon the expected 2005 CDBG allotment from HUD and submission by the selected applicants of a letter of intent and public hearing documentation in 2005. Successful applicants for housing rehabilitation funding will be prohibited from submission of another housing rehabilitation application for 3 program years. Applications for Innovative Housing will continue to be accepted on an annual basis.
(a) Eligible 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.

(b) Housing Assessment Planning Priority: All communities applying for 2004 Housing Rehabilitation or 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 for content and consistency with OCD requirements 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.

(c) All communities applying for Housing Assistance funds must certify that they will:
i adhere to M.R.S.A. 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 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.

3. Special Program Requirements:
(a) Maximum Housing Assistance Grant Amount: $400,000

(b) Maximum Housing Assistance Program Costs: The amount of rehabilitation grants or loans available to participants in the Housing Rehabilitation Program will be no more than $15,000 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, accessibility modifications. Except for acquisition/relocation and those activities listed above, all other eligible activities under the Innovative Housing Program are limited to a maximum of $25,000 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 Housing Rehabilitation and Innovative Housing applications will consist of two phases - an application phase and a project development phase.

Application: The maximum length of an application is six pages. The application deadline is February 6, 2004.

Each application will be rated in relation to all others. A minimum of 80 points from the Impact, Development of Strategy, Project Leverage, and Citizen Participation sections will be required for an application to be considered for funding.

Scoring: 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 scoring 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; and 5000 and greater. Each application will then be assigned a Housing Evaluation Factor based on the most recent data available in the following areas:

% Substandard housing

% Households spending more than 25% of income for housing

% Unemployment in community

% Community unemployment above state average

% Community is over State equalized tax rate

% Community LMI

% Community population below 150% of poverty

After the Housing Evaluation Factor has been assigned the review team will recommend a list of projects to the OCD Director to proceed into the project development phase.

At least 2 applications will be funded from each funding category as long as there are a sufficient number of qualified applications submitted.

Housing Rehabilitation

(a) Impact (30 points): A description of the number and type of units to be rehabilitated, description of target area, how units were identified, results of inspections, past local rehabilitation efforts, and the impact of the present conditions on the community and/or region as it relates to LMI persons.

(b) Development of Strategy (30 points): A description of the plan proposed to implement a housing rehabilitation program, how emphasis will be placed on community based approach, collaborative efforts to be utilized, and a summary of technical measures to be undertaken on units including energy conservation, correction of code violations, structural improvements, removal of hazardous materials, mechanical systems improvements, etc. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (20 points): A description of other resources (local, state, federal, private) that will be contributed to the project and the current funding status.

(d) Citizen Participation (20 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. A detailed use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

Innovative Housing Projects

(a) Impact (30 points): A description of the specific housing problems to be addressed with HA funds, how the problems were identified, how these issues affect LMI persons in the community or region, and past local efforts involving housing projects.

(b) Development Strategy (30 points): A description of the plan proposed to implement the housing project, how emphasis will be placed on a community based approach, collaborative efforts to be utilized, and a detailed summary of the activities. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (20 points): A description of other resources (local, state, federal, private) that will be contributed to the project and the current funding status

(d) Citizen Participation (20 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. A detailed use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

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. 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: Home Repair Network 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 Home Repair Network 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 and Portland are not eligible for financial assistance under the HRN program.

(c) The lead community must certify that each of the seven designated program administrators will:
(i) adhere to M.R.S.A. 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 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 Home Repair Network 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 Home Repair Network Program will be no more than $15,000 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 $25,000 be exceeded.

(b) Maximum Administrative Costs: The Home Repair Network Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 10% of the grant amount.

(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: Public Facilities 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 20 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 Public Facilities activity group. Applicants cannot mix activities from different Public Facilities activity groups in an application.

3. Special Program Requirements:
(a) Maximum Public Facilities Grant Amounts

Activity group Numbers Maximum Amount
1) Fire Stations $250,000
2) Community, child, senior, and health centers, libraries sheltered workshops, homeless shelters, pier/wharf $250,000
3) Removal of architectural barriers $100,000 (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 M.R.S.A. 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: Service and specialized service center communities 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 the service and specialized 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.

Application: The application deadline is November 21, 2003.

Each application will be rated in relation to all others. A minimum of 80 points from the Impact, Development of Strategy, Project Leverage, and Citizen Participation sections will be required for an application to be considered for funding.

Scoring: Each application will be evaluated in relation to other communities in their activity group and placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, the review team will recommend a list of projects to the Director, Office of Community Development to proceed into the project development phase. At least one application will be funded from each activity group as long as there are qualified applications submitted in all activity groups.

Review Areas:

(a) Impact (30 points): A description of why the project is necessary, conditions warranting the new construction or renovations, health or safety concerns, size and make up of user base and effect of current facility on users, including LMI persons.

(b) Development of Strategy (30 points): A description of the new or renovated facility, including size, design factors, utilities, location and specific use of PF funds; how the project will benefit the community with emphasis on effect on LMI users and alleviation of health and safety concerns; projected timeline and feasibility for completion of project.

(c) Project Leverage (20 points): A description of other resources (local, state, federal, private) that will be contributed to the project and the current funding status.

(d) Citizen Participation (20 points): A description of how the project was prioritized, how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. A detailed use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

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: Public Infrastructure 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 20 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 Public Infrastructure activity group. Applicants cannot mix activities from different Public Infrastructure activity groups in an application.

3. Special Program Requirements:
(a) Maximum Public Infrastructure Grant Amounts

Activity group Numbers Maximum Amount
1) Water system installation/improvements, sewer system installation/improvements, water/sewer system hookups, $400,000 storm drainage, utility infrastructure (Road or street reconstruction is not eligible) $400,000
2) Infrastructure in support of new LMI affordable housing$400,000
3) Streets/roads/sidewalks, parking, curbs, gutters$100,000

(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 Infrastructure Grant 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. All other eligible housing activities are listed in the Housing Assistance Grant program section of this Statement.

(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 M.R.S.A. 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: Service and specialized service center communities 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 and specialized 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.

Application: The application deadline is November 21, 2003. The application will seek, at minimum, the following information:

Each application will be rated in relation to all others. A minimum of 80 points from the Impact, Development of Strategy, Project Leverage, and Citizen Participation sections will be required for an application to be considered for funding.

Scoring: Each application will be evaluated in relation to other communities in their activity group and placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, the review team will recommend a list of projects to the Director, Office of Community Development to proceed into the project development phase. At least one application will be funded from each activity group as long as there are qualified applications submitted in all activity groups.

Review Areas:

(a) Impact (30 points): A description of conditions warranting the project including health and safety concerns, why the project is necessary, size and make up of the target area or community user base and effect of current conditions on users, including LMI persons.

(b) Development of Strategy (30 points): A description of the project activities, including size, design factors, location and specific use of PI funds; how the project will benefit the users with emphasis on effect on LMI users and alleviation of health and safety concerns; projected timeline and feasibility for completion of project.

(c) Project Leverage (20 points): A description of other resources (local, state, federal, private) that will be contributed to the project and the current funding status.

(d) Citizen Participation (20 points): A description of how the project was prioritized, how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. A detailed use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

E. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The Economic Development Infrastructure Program (EDI) provides Maine communities with grant funds for gap financing to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of business and industry. EDI funds will leverage local and private sector capital to create and retain jobs for low and moderate-income persons, generate taxes, and create market place opportunities.

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on the following dates: February 20, 2004, May 21, 2004 and August 20, 2004.
(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons. EDI projects must be in support of a specific business.

(b) Cost per Job: The targeted cost per job created or retained with EDI funds is $10,000.

(c) Project Benefit: At a minimum, 51% of all jobs created or retained as a result of an EDI project must be taken by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDI, 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 event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(d) Match: All communities applying for EDI funds must provide a cash match equivalent to 20 percent of the total EDI program award. This match must be directly related to the EDI infrastructure portion of the project and is in addition to any investment made by the assisted business.

2. Special Program Requirements:
(a) Maximum Economic Development Infrastructure Award Amount: $400,000. In no case will the amount of EDI assistance be greater than 50% of the project cost including EDI, local, and business contributions. Projects involving collaboration among communities may be eligible for awards up to but not exceeding $500,000.

(b) Chance of Success: The business must demonstrate the following:

- a market exists for its product or service,

- the cost of the product or service is competitive in current market conditions

- the cash flow projections are adequate to support operating expenses and indebtedness

- management has the capacity to carry out the business or development plan

- no unidentified costs are necessary for implementation.

(c) Agreement to Participate and Benefit Certification: The business and community must sign documentation agreeing to participate in the EDI program, comply with all program requirements and complete the Job Creation/Retention Agreement.

(d) EDI Projects in Support of Retail Businesses: OCD may accept an EDI Program application in support of a retail business activity only under the following limited conditions:
(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business.

(ii) The development or expansion of the retail business represents a net economic gain for the community and the region. EDI applications supporting a retail business or businesses are required to certify that the development represents a new overall gain for the region economy and not a shift from existing established businesses to a new or expanded one; and

(iii) At least 50% of the jobs created by the retail business must be full time jobs.

(e) Exclusions: Communities receiving an Economic Development Infrastructure (EDI) award may not receive any other CDBG funded economic development activity award for the same project or business during the same program year.

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 (8) pages. Each application will be rated in relation to all others. The total points from the Problem Statement, Proposed Solution, Citizen Participation, Numerical Analysis and Commitment sections will be used to determine the base score for each application. A distress score consisting of an unemployment factor and a natural resource based industry priority will be added to this result. A rank order will be established with the highest ranking application, which is above the minimum scoring requirement, receiving first consideration and continuing downward until the allocation for each EDI funding round is exhausted. An application must receive a minimum score of 80 points to be considered further for funding. The applications will be evaluated according to the following criteria:

(b) Problem Statement (15 points):
(i) Scope of Problem (5 pts) - Describe the problem facing a specific business as it relates to job creation/retention activities.

(ii) Identification of Problem (5 pts) - Describe the need for the EDI funds and how the need was identified and the negative impact on the local and regional employment and over economic conditions of the community and region.

(iii) Need for Funds (5 pts) - Describe why the community is unable to finance the proposed project on its own, or with assistance from other sources, including the affected business.

(c) Solution (15 points):
(i) Scope of Solution (5 pts) - Describe the activities that will be undertaken with EDI funds to resolve the stated problem/need.

(ii) Project Feasibility and Effect (5 pts) - Describe how the project will progress within 12 months from the date of a contract award with DECD and any obstacles that may be present that could hinder the project. Describe the effect the project will have on the ability of the business to remain competitive and to create/retain quality jobs for LMI persons.

(iii) Project Timeline and Feasibility (5 pts) - Identify tasks, timetable and responsible parties for implementation of the project.

(d) Numerical Analysis and Significance of the Project to the Community and Region (25 Points):

Complete the numerical analysis table to demonstrate the significance of the proposed project as it relates to job creation/retention and the effect on the labor market area and local economy. Point values will be determined by comparing the information presented in the application for each area below with set scoring criteria established by the OCD.

(i) Number of jobs created/retained: 8 points

(ii) Percentage of full time jobs 5 points

(iii) EDI dollars per job created/retained 6 points

(iv) Quality of jobs available for LMI persons 6 points

(e) Citizen Participation (10 Points):
(i) Business Involvement (5 pts) - Describe the involvement that the specific business and the applicant's business community have had in the development of this application. Include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(ii) General Citizen Involvement (5 pts) - Describe how the general citizenry and municipal leaders have been involved concerning the concept of assisting business in the community/region. General citizenry groups include, but are not limited to, community development advisory committee, area betterment associations, community groups, planning board and the board of selectmen/council.

(f) Commitment (30 points): Describe all resources that will be contributed to the project. Also describe all sources sought for this project and reason they were not/cannot be secured to demonstrate the "gap" nature of requesting these funds. In the evaluation of this section, commitments that have been obtained and are legally binding and will directly contribute to the completion of this project within 12 months of a contract award will receive significantly higher scores than others listed. Points will be awarded as follows:
(i) Sources (5 pts) - Describe all sources of funding that have been sought for this specific project, and detail of their proposed use and if not secured, the reason why.

(ii) Project Readiness (25 pts) - Describe the funding resources secured for this project. Detail any special arrangements that have been made, funding availability, timeframe projections of when funds will be used during project completion and project timeline.

(g) Unemployment Factor (5 points): The OCD will derive a community unemployment factor score from the following:
(iii) Unemployment Rate: (3 pts) - A score determined by taking the community's most recent unemployment rate, dividing it by the most recent state unemployment rate and multiplying the result by 2. Communities with a most recent unemployment rate greater than the state will receive the total points allowed.

(iv) Unemployment Numbers (2 pts) - Applicants will be ranked from highest to lowest by number of unemployed persons. The rank order will be divided into three segments and assigned points (high 1; middle 0.5; low 0.25). Unequal divisions will be rounded up.

(h) Priority Points (2 points): EDI projects in support of natural resource based industries and value added products derived from natural resource based industries will receive two additional points.

Each application will be reviewed and evaluated on its own merit and in relation to all others submitted in that funding round. The scoring team will recommend a list of projects to the OCD Director to proceed into the final application/development phase.

F. PUBLIC SERVICE GRANTS

The Public Service Grant (PSG) Program addresses community resource needs by providing funding for operating expenses, equipment, and program materials for public service programs.

1. Special Threshold Criteria and Certifications: Public Service 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 not eligible 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 low/moderate 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 Low and Moderate Income 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 Public Service Grant Amount: $50,000

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

Application: The maximum length of an application is six pages. The application deadline is April 8, 2004.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem Statement, Proposed Solution, Citizen Participation, and Commitment sections will be required for an application to be considered for funding.

(a) Problem Statement (30 points):
(i) Scope of Problem: (40 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds and the problems facing service providers as they address the issue. Detail how the problem impacts LMI persons or a HUD approved limited clientele group.

(b) Proposed Solution (40 points):
(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems. Identification of tasks, timetables, and the parties responsible to implement the proposed solution Include a project budget.

(ii) Project Benefit: (10 points) - Identification of how PS funds will only be utilized to assist LMI persons or a HUD approved limited clientele group.

(iii) Capacity: (10 points) - Identification and description of the qualifications and abilities of those who will implement the project.

(iv) Project Continuation: (10 points) - Description of how the program will continue after the PSG has ended or why there will no longer be a need for these services.

(c) Citizen Participation (20 points): Identification and description of the process, including public meetings, hearings, and other methods to solicit involvement of residents, local organizations, and public officials. Describe how the application reflects citizen concern and beneficiary involvement. Detail use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

(d) Commitment/Match (10 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments. For in-kind contributions, establish a cash value with a basis for this determination and how the in-kind contribution is directly related to the activity for which PS funding is being sought.

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 119th legislature.

1. Special Threshold Criteria and Certifications: Downtown Revitalization 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, Micro-Loan, or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Match - All communities applying for Downtown Revitalization funds must certify that they will provide a cash match equivalent to 20 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 either a CDBG funded Quality Main Street Planning process or an equivalent 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 and 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 for downtown revitalization.

(b) Maximum Award: $400,000

(c) 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 service or specialized center community.

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

Application: The maximum application length is ten pages. The application deadline is January 16, 2004.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem, Solution, Commitment, and Citizen Participation sections will be required for an application to be considered for funding.

The DECD urges Downtown Revitalization Grant Program applicants to submit an application for designation under the Main Street Maine Communities Program offered through the Maine Development Foundation. Documentation of this submission to MDF should be in the Commitment/Match section of the DR application as an additional source of potential program funding.

(a) Problem Statement (30 points):
(i) Scope of Problems (15 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

(ii) Impact on Economic Vitality (15 points) - Description of how the problems negatively impact the economy of the community and persons of low-to-moderate income.

(b) Solution (30 points):
(i) Project Description (10 points) - Description of how funds will be used. Include a project budget

(ii) Comprehensive Nature of Solution (10 points) - Description of how the activities relate to the community's total downtown revitalization effort.

(iii) Feasibility (10 points) - Identification of tasks, timetables, and the responsible parties to implement the proposed solution.

(c) Citizen Participation (20 points): Identification and description of the process, descriptions of public meetings, hearings, and other methods to solicit the involvement of residents, local organizations, and public officials, and how the involvement contributed to this application.

(d) Commitment/Match (20 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, and the status of those commitments.

(e) 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 M.R.S.A. Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. This demonstration must be made as part of the application.

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: Community Enterprise Program funds will be distributed through an annual grant application selection process.

2. Match: Applicants for the Downtown Manager Grant funds mustcertify they willprovide local cash match equivalent of 10 percent of the total grant award. Micro-Grants or Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the grant/loan exceeding $15,000. There are no matching requirements for other activity groups in the CE program.

3. Program Activities: Applicants may not apply in more than one of the activity groups listed below.

4. Special Program Requirements:
(a) Maximum Community Enterprise Grant Amounts

Activity Group Numbers Maximum Amount
1) Micro-Grants/Loans $100,000
2) Micro-Enterprise Grants/Loans $ 50,000
3) Business Facade Grants $100,000
4) Downtown Manager $ 50,000

(b) 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. 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 takes place in a designated slum/blight area, or documentation exists that a business qualifies under a spot blight basis.

(iv.) Downtown Manager: Only communities that are 51% or greater LMI as determined by HUD and the U.S. Census and have been designated by the Maine Development Foundation as a Maine Street Maine Community will qualify.

4. Special Micro Grant/Loan Program Requirements:
(a) Necessary and Appropriate: All grants/loans made from the Micro-Grant/Loan Program 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) Financing Plan: Micro Grant/Loans are limited to a maximum of $25,000 per grant or loan. MG/L may provide 100% of the financing up to $15,000. MG/L exceeding $15,000 require a dollar-for-dollar match for the portion of the grant/loan exceeding $15,000.

(c) Micro Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program 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.

Micro Grant/Loan and Micro-Enterprise Grant/Loan Application: The maximum length of an application is five pages. The application deadline is January 16, 2004

Each application will be rated in relation to all other applications in their category. A minimum of 80 points from the Problem Statement, Proposed Solution and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (35 points):
(i) Scope of Problem: (35 points) - Description of the economic base and business trend problems of the community and the impact on job opportunities for LMI persons. Description of the need for funds, including data on area capital availability and the inability of potential applicants to obtain loans.

(b) Proposed Solution (45 points):
(i) Scope of Solution: (17.5 points) - Description of how funds will be used to solve the identified problems.

(ii) Capacity: (17.5 points) - Description of the capacity of the applicant to market and conduct a Micro Grant/Loan or Micro-Enterprise Grant/Loan Program. Identify accomplishments in administering loan programs or completing similar responsibilities.

(iii) Potential Loan Applicants: (10 points) - Description of efforts to identify potential loan applicants, who these prospects are, and type of business and capital needs.

(c) Citizen Participation (20 points):
(i) Business Involvement: (10 points) - Description of how the business community participated in the development of the proposed program such as repayment policies, targeted sectors, etc.

(ii) General Citizen Participation: (10 points) - Description of how the need for, and priority of, a Micro Grant/Loan or Micro-Enterprise Grant/Loan program was defined by the general citizenry in the application process.

Business Facade Grant Application: The maximum length of an application is five pages. The application deadline is January 16, 2004

Each application will be rated in relation to all other applications in their category. A minimum of 80 points from the Problem Statement, Proposed Solution and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (35 points):
(i) Scope of Problem: (35 points) - Description of how the potential facade program is an integral part of a demonstrated downtown or village revitalization process. Description of existing building conditions and why CDBG funding is necessary.

(b) Proposed Solution (45 points):
(i) Scope of Solution: (17.5 points) - Description of how funds will be used to solve the identified problems.

(ii) Capacity: (17.5 points) - Description of the capacity of the applicant to market and conduct a Facade Grant Program.

(iii) Potential Façade Grant Participants: (10 points) - Description of efforts to identify potential businesses as facade grant participants, who these prospects are, and type of business and specific needs.

(c) Citizen Participation (20 points):
(i) Business Involvement: (10 points) - Description of how the business community participated in the development of the proposed facade grant program.

(ii)General Citizen Participation: (10 points) - Description of how the need for, and priority of, a Façade Grant program was defined by the general citizenry in the application process.

Downtown Manager Grant Application: The application deadline is January 16, 2004

The required application submissions for the Downtown Manager Grant are:

(i) A signed Application Cover Sheet

(ii) Documentation of community-wide 51% LMI designation

(iii) Proof of designation as a Main Street Maine Community

(iv) Letter of Support from the Maine Development Foundation

(v) Documentation of a minimum 10% local cash match

(vi) Maximum two page narrative explaining the use of the CDBG funds, how the Downtown Manager position is an essential component of the overall downtown revitalization strategy and a proposed budget which includes all funds and demonstrates that CDBG funds will be expended within an eighteen month period

(vii) Documentation of a duly advertised public hearing

I. URGENT NEED GRANTS

The Urgent need Grant (UN) Program provides funding to communities to address serious and immediate threats to health and welfare.

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

(c) Maximum UN Amount: $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.

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.

4. Approval Process: The UN funds will be available beginning March 5, 2004. 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.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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