Code of Maine Rules, Chapter 35, Section 498-35-2 - COMMUNITY DEVELOPMENT | Code of Maine Rules

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 Program Requirements: Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

(a) Special Threshold Requirement for Housing Assistance Applications: Beginning with the 2006 CDBG program communities may not submit a HA application if they have received or benefited from two HA awards (rehabilitation, innovative or a combination) within the five (5) year period prior to the CDBG program year for which applications are being accepted.

(b) Eligible Housing Assistance Activities: Eligible HA activities are rehabilitation of occupied or vacant single-family or multi-family housing units, same site replacement housing, relocation assistance, 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 regulations, provision of potable water or sewer, removal of architectural barriers and eligible planning activities necessary to complete the Project Development Phase.

(c) Matching Funds Requirements: Applicants for housing rehabilitation activities must provide a match (cash or in-kind) of at least 10 percent of the total HA grant award. Applicants for all other eligible HA activities must provide a cash match of at least 20 percent of the total HA grant award.

(d) Maximum HA Grant Amount: $250,000

(e) Maximum Housing Assistance Program Per-Unit 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 HA Program are limited to a maximum of $30,000 per unit assisted/created. Public infrastructure is not an eligible HA expense.

(f) Maximum Administrative Costs: The HA Program allows expenditures for general and/or rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 15% of the grant amount. Please refer to OCD Policy Statement #2 for more information regarding CDBG administrative costs.

(g) 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.

(h) Minimum Percentage of LMI Units in New Housing Construction: A minimum 20% of new units created using HA funding must be reserved for LMI families. In addition, the minimum required percentage of new units reserved for LMI families must be proportional to the percentage of HA funding provided towards the total project cost.

(i) Administrative Capabilities for Housing Rehabilitation Applicants: Applicants for HA assistance must demonstrate that they have the capacity to administer the program either through municipal staff that is a Certified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program ( 24 CFR Part 85) to hire a Certified CDBG Rehabilitation Technician subject to award of a HA contract.

2. Selection Process: The selection process for all HA applications will consist of three phases; a letter of intent, an application phase and a project development phase.

(a) Letter of Intent: All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before January 12, 2007 according to the requirements set forth in the 2007 Housing Assistance Application Package.

(b) Application: The maximum length of an application is four pages, not counting required attachments. The application deadline for the HA Program is 4:00PM on March 2, 2007. Each application will be rated in relation to all others in a three-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 three scoring areas below and be determined by the total of each sub-scoring area. A maximum of 80 points is obtainable.

(i) Impact (30 points):

*A description of the specific housing problems to be addressed with HA funds - 10 points

*How the problems were identified - 10 points

*How these issues affect LMI persons in the community or

region - 10 points

(ii) Development Strategy (30 points):

*A description of the plan proposed to implement the housing project - 10 points

*How emphasis will be placed on a community based approach using collaborative efforts 10 points

*Summary of the activities and use of HA funds -10 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

*Involvement of potential LMI project beneficiaries in development of the application and project and how the required public hearing relates to the application development and citizen participation process - 4 points

How other local resources (cash and in-kind) are directly related to the project and the establishment of a cash value equivalent for all in-kind commitments - 4 points

Stage 2: Community Evaluation Factor- A Community Evaluation Factor with a maximum point total of 20 will be pre-determined by an independent authority for each community in Maine and published in the application package.

Stage 3: Final Application Score- Each application will receive a Final Application Score consisting of dropping the highest and lowest Review Point Totals and adding the average of the remaining three Review Point Totals to the pre-determined Community Evaluation Factor. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. There is no minimum Final Application Score required for an application to be considered for funding.

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, 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, Biddeford, Lewiston, Portland and South Portland are not eligible for financial assistance under the HRN program. In addition, if Cumberland County is granted status as an Entitlement County, member communities of that county will not be eligible.

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

(i) Provide a match equivalent of 10 percent of their total grant award.

2. Special Program Requirements:

(a) Maximum HRN Grant Amount: $1,050,000, with $150,000 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 15% 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. Please refer to OCD Policy Statement #2 for more information regarding CDBG administrative costs.

(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; eligible planning activities necessary to complete the Project Development Phase.

(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 to OCD. For spot blight activities documentation must be submitted to OCD substantiating the condition of the structure as "blighted." These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD on or before 4:00pm on Friday December 1, 2006.

(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 three phases: a letter of intent, an application phase and a project development phase.

(a) Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a PF application must submit aLetter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday December 1, 2006 according to the requirements set forth in the 2007 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on January 12, 2007. Each application will be rated in relation to all others in a three-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 three scoring areas below and be determined by the total of each sub-scoring area. A maximum of 80 points is obtainable.

(i) Impact (30 points):

*A description of the why the project is necessary - 6 points

*Conditions warranting new construction or renovations, including health and safety concerns- 8 points

*How these conditions affect LMI persons in the community or region - 8 points

*Size and make up of user base of facility - 4 points

*Why PF funds are necessary for project - 4 points

(ii) Development Strategy (30 points):

*A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location - 6 points

*Specific use of PF funds - 6 points

*Positive effect on LMI persons - 6 points

*Project timeline, details of engineering or architectural work completed to date, proposed date for start of construction, tasks remaining prior to project implementation, final commitment of other funds and how PF funds will be expended within a 12 month period - 12 points

(iv) 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

Involvement of potential LMI project beneficiaries in development of the application and project and how the required public hearing relates to the application development and citizen participation process - 4 points

How other local resources (cash and in-kind) are directly related to the project and the establishment of a cash value equivalent for all in-kind commitments - 4 points

Stage 2: Community Evaluation Factor- A Community Evaluation Factor with a maximum point total of 20 will be pre-determined by an independent authority for each community in Maine and published in the application package.

Stage 3: Final Application Score- Each application will receive a Final Application Score consisting of dropping the highest and lowest Review Point Totals and adding the average of the remaining three Review Point Totals to the pre-determined Community Evaluation Factor. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development phase as funds allow. There is no minimum Final Application Score required for an application to be considered for funding.

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; eligible planning activities necessary to complete the Project Development Phase.

(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	$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 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 to OCD. These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD on or before 4:00pm on Friday December 1, 2006.

(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 three phases: a letter of intent, application phase and a project development phase.

(a) Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a PI application must submit aLetter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday December 1, 2006 according to the requirements set forth in the 2007 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on January 12, 2007. Each application will be rated in relation to all others in a three-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 three scoring areas below and be determined by the total of each sub-scoring area. A maximum of 80 points is obtainable.

(i) Impact (30 points):

*A description of the why the project is necessary, previous efforts to address needs, and how the project was prioritized locally - 5 points

*How the infrastructure problems were verified, including studies, testing and record keeping - 6 points

*How the verified health, safety and welfare conditions affect users and others in the community and region - 6 points

*Size and demographic make up of user base and target area of projected infrastructure project - 5 points

*Why PI funds are necessary to fill a funding gap and how other funding sources will work with PI funds to implement the project - 8 points

(ii) Development Strategy (30 points):

*A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems - 6 points

*positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures - 6 points

*Extent of financial benefits to users from reduced rates, rents and other costs. If financial benefits cannot be quantified, identify other short and long term benefits that will be experienced - 6 points

* Project timeline: list tasks necessary to begin implementation. Identify work already completed, such as engineering, design and final commitment of other funds. Identify when remaining tasks will be completed. Estimate a project completion date and describe why project timeline is feasible - 12 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

Involvement of potential LMI project beneficiaries in development of the application and project and how the required public hearing relates to the application development and citizen participation process - 4 points

How other local resources (cash and in-kind) are directly related to the project and the establishment of a cash value equivalent for all in-kind commitments - 4 points

Stage 2: Community Evaluation Factor- A Community Evaluation Factor with a maximum point total of 20 will be pre-determined by an independent authority for each community in Maine and published in the application package.

Stage 3: Final Application Score- Each application will receive a Final Application Score consisting of dropping the highest and lowest Review Point Totals and adding the average of the remaining three Review Point Totals to the pre-determined Community Evaluation Factor. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. There is no minimum Final Application Score required for an application to be considered for funding.

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; eligible planning activities necessary to complete the Project Development Phase. Structural changes such as construction, renovation, or rehabilitation are noteligible for PSG funding.

(b) Project Benefit: Eligible PSG projects must provide benefits to one of the groups of persons listed below:

(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; or

(iii) Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD. The purchase of ambulances and other directly related public safety equipment is allowable. The purchase of fire fighting and law enforcement equipment with PS funds is prohibited.

(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: $40,000

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

(a) Letter of Intent: All communities wishing to submit a PSG application must submit a Letter of Intent to OCD on or before January 26, 2007 according to the requirements set forth in the 2007 public Service Application Package.

(b) Application: The maximum length of an application is four pages, not counting required attachments. The application deadline for the PSG program is 4:00PM on March 9, 2007. Each application will be rated in relation to all others in a two-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 100 points is obtainable.

(i) Impact (30 points):

*A description of the scope, magnitude and severity of the identified problems - 8 points

*Past efforts to deal with the identified problems - 4 points

*Conditions requiring a new or expanded service - 5 points

*Issues faced by service providers including capacity, finances and staffing - 6 points

*Why PSG funds are critical for the project - 7 points

(ii) Development Strategy (40 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 - 8 points

*How PS funds will be utilized solely to assist LMI persons or a HUD approved Limited Clientele group - 8 points

*Project timeline, including a start date, tasks completed to date and how PSG funds will be expended in a timely manner - 10 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 - 7 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 - 7 points

(iii) Project Leverage (10 points):

*Budget Page review - 3 points

*Matching Funds Table review - 3 points

*% which all firm commitments exceed minimum 20%

0% - 15% - 0 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

(iv) 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

*Involvement of potential LMI project beneficiaries in development of the application and project and how the required public hearing relates to the application development and citizen participation process - 4 points

*How other local resources (cash and in-kind) are directly related to the project and the establishment of a cash value equivalent for all in-kind commitments - 4 points

Stage 2: Final Application Score- Each application will receive a Final Application Score consisting of dropping the highest and lowest Review Point Totals and adding the average of the remaining three Review Point Totals. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. There is no minimum Final Application Score required for an application to be considered for funding.

F. (Reserved)

G. DOWNTOWN REVITALIZATION GRANT PROGRAM

The Downtown Revitalization Grant (DR) Program provides 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: 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, Housing Assistance or Community Enterprise programs as relevant to the revitalization of a downtown district; eligible planning activities necessary to complete the Project Development Phase.

(b) Multiple Year Award Prohibition - Communities may not submit a DR application if they have received or benefited from two (2) DR awards within the five (5) year period prior to the CDBG program year for which applications are being accepted.

(c) Community Enterprise Program Prohibition - Communities applying for a DR grant may not apply for, receive, or benefit from a Community Enterprise Program (CE) grant in the same program year.

(d) 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 Applicants with MaineDowntownCenter Designation: Applicants will receive three bonus points if they have been designated as a Main Street Maine Community by the Maine Downtown 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 six pages, not counting required attachments. The application deadline for the DR Program is 4:00PM on February 9, 2007. Each application will be rated in relation to all others in a three-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 100 points is obtainable.

(i) Impact (30 points):

*State the problems, specific infrastructure or programs that are lacking and then present the scope and magnitude of the identified problems - 4 points

*Succinctly describe how these problems are obstacles for successful revitalization of the downtown area. - 4 points

*Give clear and concise explanations on how the problems negatively impact the local economy and the viability of existing downtown area businesses, or new development and expansion. - 4 points

*Clearly define how the problems negatively affect LMI persons, or how they contribute to slum/blight conditions.

- 7 points

*Explain why DR funds are necessary for the project, describe efforts to secure other grant or loan funds, and tell what the gap is and why. - 7 points

*Explain how the problems identified in the application are consistent with those identified in the community's Downtown Action Plan. - 4 points

(ii) Development of Strategy (40 points):

*Clearly link the proposed DR activities to action steps outlined in your community's Downtown Action Plan, describe how the proposed activities address each problem identified in the Action Plan. - 5 points

*If aspects of the Action Plan are to be addressed in the future, what are the potential future solutions and possible funding sources. - 2 points

*List the specific activities, including location, size, and design features, to be addressed in this downtown revitalization effort. - 5 points

*Identify the specific use of DR funds and the specific tasks, or activities to be funded with each other source of funds. - 4 points

*Describe how the DR funded activities will have a positive impact on LMI persons and/or on alleviation of the slum/blight conditions. - 5 points

*Describe the engineering and design work that has been completed to date, and provide a detailed project timeline including approximate start dates for each project milestone. - 5 points

*Include a description of the capacity and related experience of the administrator who will be implementing/administering the DR project, and explain how DR funds will be expended in a timely manner. - 4 points

*Explain the level of involvement of local businesses, and explain how the DR project will stimulate business in the downtown area. - 5 points

*Define how the proposed DR activities provide a long-term solution to the identified problems and assist in improving the area's long-term viability. - 5 points

(iii) Project Leverage (10 points):

*Budget Page review - 3 points

*Matching Funds Table review - 3 points

*% which firm cash commitments exceed minimum 25%

0% - 15% - 0 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% - 4 points

(iv) Citizen Participation (20 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) and the overall citizen participation process on application and project development - 4 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

*Involvement of potential LMI project beneficiaries in development of the application and project and how the required public hearing relates to the application development and citizen participation process - 4 points

*How other local resources (cash and in-kind) are directly related to the project and the establishment of a cash value equivalent for all in-kind commitments - 4 points

Stage 2: MaineDowntownCenter Designation Bonus - 3 bonus points will be assigned to each application submitted by a community designated as Main Street Maine Community by the Maine Downtown Center.

Stage 3: Final Application Score- Each application will receive a Final Application Score consisting of dropping the highest and lowest Review Point Totals and adding the average of the remaining three Review Point Totals to the Maine Downtown Center Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. There is no minimum Final application Score required for an application to be considered for funding.

H. COMMUNITY ENTERPRISE GRANT PROGRAM

The Community Enterprise Grant (CE) Program provides grant funds to assist in innovative solutions to problems faced by micro-businesses, promote business façade programs and make streetscape 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 Program Requirements: CE Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities:

(i) Eligible activities under the Micro-Enterprise Grant/Loan category are grants or loans to for-profit businesses, façade 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) and streetscapes including pocket parks, benches, street lighting, tree plantings, signage, traffic calming improvements, sidewalks and other approved improvements; eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements are not eligible. All streetscape improvements must take place on publicly owned property.

(b) Downtown Revitalization Program Prohibition - Communities applying for a CE grant may not apply for, receive, or benefit from a Downtown Revitalization Program (DR) grant in the same program year.

(c) Maximum CE Grant Amount: $150,000 - Applicants may apply to address one or any combination of eligible activities listed in Section H(1)(a) above but are limited to a total of $150,000 in CE funds.

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

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

(ii) Business Façade Grant: $25,000

(e) Project Benefit:

(i) 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.

(ii) 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.

(iii) 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.

2. 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 four pages, not counting required attachments. The application deadline for the CE Program is 4:00PM on February 9, 2007. Each application will be rated in relation to all others in a two-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 three scoring areas below and be determined by the total of each sub-scoring area. A maximum of 100 points is obtainable.

(i) Impact (40 points):

*State the problems then present the scope and magnitude of the identified problems. - 6 points

*Describe why and how these problems are obstacles for successful revitalization of the village or downtown area. - 6 points

*Give clear and concise explanations on how the problems negatively impact the local economy and the viability of existing downtown or village area businesses or new development and expansion. - 8 points

*Clearly define how the problems negatively affect LMI persons and/or contribute to slum/blight conditions. - 10 points

*Explain why CE funds are necessary for the project; describe efforts to secure other grant or loan funds, and tell why they are not are available locally to assist businesses or local government with their development and site improvement needs. - 10 points

(ii) Development Strategy (40 points):

*Provide Identification and description of potential business grant/loan applicants and their current financial needs; or provide details of how areas in need of streetscape improvements were identified and prioritized. - 5 points

*List the specific activities, including location, size and design features, to be addressed in this application. - 5 points

*Identify the specific use of CE funds and the specific tasks or activities to be funded with each other source of funds. - 5 points

*Provide a project timeline; list activities or actions completed to date. - 4 points

*Describe the capacity and related experience of the administrator which will enable the applicant to market and conduct a grant/loan program or streetscape improvement effort; and how CE funds will be expended in a timely manner. - 5 points

*Explain how the CE project will stimulate business in the downtown or village area and assist in improving the area's long-term viability. - 6 points

*Describe how the CE funded activities will have a positive impact on LMI persons and/or on alleviation of the slum/blight conditions. - 6 points

*Budget Summary Review - 4 points

(iii) Citizen Participation (20 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) and the overall citizen participation process on application and project development - 4 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

*Involvement of potential LMI project beneficiaries in development of the application and project and how the required public hearing relates to the application development and citizen participation process - 4 points

*How other local resources (cash and in-kind) are directly related to the project and the establishment of a cash value equivalent for all in-kind commitments - 4 points

Stage 2: Final Application Score- Each application will receive a Final Application Score consisting of dropping the highest and lowest Review Point Totals and adding the average of the remaining three Review Point Totals. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. There is no minimum Final Application Score required for an application to be considered for funding.

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 $80,000.

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 2, 2007. 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. Eligible planning activities necessary to complete the Project Development Phase may be included in the UN grant total. Notification to the applicant of the Director, Office of Community Development's decision will initiate the Project Development Phase process necessary for contract award.

Code of Maine Rules19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENTChapter 35 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2007 PROGRAM STATEMENTSection 498-35-2 - COMMUNITY DEVELOPMENT

Code of Maine Rules
19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT
Chapter 35 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2007 PROGRAM STATEMENT
Section 498-35-2 - COMMUNITY DEVELOPMENT