Code of Maine Rules
19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT
Chapter 36 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2008 PROGRAM STATEMENT
Section 498-36-3 - ECONOMIC DEVELOPMENT
Current through 2024-38, September 18, 2024
A. ECONOMIC DEVELOPMENT PROGRAM
Funds for economic development activities are provided to communities as gap funding to assist businesses in the creation/retention of jobs for low-and moderate-income persons. The Economic Development Program (EDP) offers the following two categories:
Category 1 - Business Assistance Grant (BA) | Maximum Award |
Municipal owned | |
1) 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 and 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. | $400,000 |
2) Required local match necessary to secure new funds to the State for eligible economic development planning activities. | $ 50,000 |
Category 2 - Development Fund Loan (DF) | |
1) Acquisition of existing facilities, land and site improvements necessary for the construction of a new facility, rehabilitation of commercial or industrial buildings, structures, capital equipment, and real property improvements. | $400,000 |
2) Non-capital equipment and operating capital. | $200,000 |
DF program funds cannot be used to refinance existing debt.
All communities wishing to submit an EDP application must submit a Letter of Intent and Verification of CDBG National Objective to the OCD on or before 4:00PM on January 4, 2008 or, depending on funding availability, April 4, 2008 or June 13, 2008 according to the requirements set forth in the 2008 EDP application package.
Review Process:
The following criteria will be considered during the application phase:
- # of jobs to be created/retained
- # of jobs created/retained as % of municipal unemployment
- # of jobs created/retained as % of LMA unemployment
- % community unemployment above state average
- % of LMA unemployment above state average
- EDP dollars per job created/retained
- % average hourly salary of jobs created/retained exceeds per capita income by Maine county
- Quality of jobs created/retained based on wages and fringe benefits
- % non EDP funding in project
Applications must be submitted on the appropriate due dates. BA planning activity applications requesting match for programs such as those offered by USDA Rural Development and EDA, must not be submitted until an application has been accepted by the appropriate agency working toward a full application. Once submitted, the EDP Review Team will evaluate the applications using the criteria outlined in the Program Statement and the individual application package. Successful applicants will be invited to proceed into the project development phase.
The following criteria will be considered during the final scoring stage:
Upon being invited to proceed from the Letter of Intent phase into the application phase, an OCD staff person will be assigned to provide technical assistance to the community and the business during this process. The applications must be completed and submitted by 4:00PM on March 7, 2008 for the first round, June 6, 2008 for the second round and August 8, 2008 for the third round. The application phase consists of completing documentation such as local legislative approval, match commitments, community benefit, job creation/retention data and agreements, public hearing, business financial information and program certifications by the community and business. A final score will be determined using the review team analysis score and adding the numerical analysis using the factors as outlined in the Program Statement and the EDP application package. Applications from this phase will be placed in rank order from highest to lowest. Applications scoring more than 80 points will be given first consideration from the top of the list and continuing downward based on recommendations of the review team as outlined below. During this phase DECD or its designee may conduct a project development, financial and credit analysis for each proposal.
EDP Review Team Recommendations: Following the EDP Review Team evaluation of the application and determining a score, one of the following recommendations will be made to the Director, Office of Community Development and the DECD Commissioner:
Successful applicants will be invited into the project development phase as funds allow.
- a market/need exists for the product, service or planning activity;
- the cost of the product, service or planning activity is competitive in current market conditions;
- the cash flow projections are adequate to support operating expenses and indebtedness for the business activities;
- management has the capacity to carry out the business or development plan; and
- no unidentified costs are necessary for implementation.
B. 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.
whom owns the enterprise, and whose family income is LMI will meet the project benefit. Employees are not considered in meeting project benefit.
All communities wishing to submit a CE application must submit a Letter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday January 4, 2008 according to the requirements set forth in the 2008 DR application package.
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.
*State the problems then present the scope and magnitude of the identified problems. - 6 points
*Explain how the problems negatively impact the local economy and the viability of existing downtown or village area. - 8 points
*Clearly define how the problems negatively affect LMI persons and/or contribute to slum/blight conditions.
- 10 points
*Describe the obstacles to overcoming the identified problems. - 6 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
*List the specific activities to be undertaken in the project. For streetscapes include location, size and design features. - 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 Identification and description of potential business grant/loan applicants and their needs; or provide details of how areas in need of streetscape improvements were identified and prioritized. - 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
*Provide a project timeline; list activities or actions completed to date. - 4 points
*Describe the capacity and experience of the administrator to market and conduct a grant/loan program or streetscape improvement effort; and describe how CE funds will be expended in a timely manner. - 5 points
*Budget Summary Review - 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) and the overall citizen participation process in 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.
C. NON-PROFIT DEVELOPMENT GRANT PROGRAM
The Non-Profit Development Grant Program (NPDG) provides funding for communities forming partnerships with local non-profit development organizations to carry out activities in blighted areas located in designated downtown areas which will foster community economic development initiatives leading to the elimination of slum and blight and increased job opportunities for LMI persons.
A minimum Final Rating of 75 points will be required for an application to be considered for funding. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.
D. INTERIM FINANCE PROGRAM
The Interim Finance Program (IFP) utilizes funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers in creating housing and job opportunities for low and moderate-income people through short-term loans. The duration of loans will be dependant on availability of CDBG funds.