Code of Maine Rules, Chapter 39, Section 498-39-2 - 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: Communities may not submit a HA application if they have received or benefited from two HA awards 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, energy conservation, 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. Except for general housing rehabilitation activities and well and septic replacement no multi-jurisdictional applications will be accepted in the HA program.

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

(d) Maximum HA Grant Amount: $300,000

(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 $30,000 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 $40,000 per unit assisted/created. Maximum per-unit costs for any housing activity may only be waived by written approval from the OCD Director. 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, with the exception of emergency repairs and energy conservation 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 at the time of submitting the Letter of Intent 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 February 18, 2011 according to the requirements set forth in the 2011 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 April 1, 2011. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis - Members of the four-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):

*A description of the specific housing problems to be addressed with HA funds - 15 points

*How the problems were identified - 10 points

*How these issues affect LMI persons in the community or region - 15 points

(ii) Development Strategy (40 points):

*A description of the plan proposed to implement the housing project - 15 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 -15 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: Final Application Score - Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the 4-person OCD Review Team. 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 participating Maine Community Action Agencies or other approved entity identified for the Home Repair Network delivery system as approved by OCD.

(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 all of Cumberland County with the exception of Brunswick and Frye Island are not eligible for financial assistance under the HRN program.

2. Special Program Requirements:

(a) Maximum HRN Grant Amount: $1,105,000, with $150,000 allocated to each of the established regions and $50,000 allocated to the Franklin County Region.

(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 $30,000 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. The maximum of $40,000 may only be exceeded by written approval from the OCD Director.

(c) 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 is allowed a maximum of $5,000 in administrative funding.

(d) 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. CRITICAL ACCESS RAMP PROGRAM (Limited to the Town of Fort Fairfield)

The Critical Access Ramp Program (CARP) provides funding to address accessibility problems of low- and moderate-income disabled persons through a partnership with Alpha One. This program will provide moveable, reusable ramps administered on a regional basis throughout Maine, except as stated in 1 (b) below.

1. Special Threshold Criteria and Certifications: CARP funds will be distributed through a set aside of CDBG funds provided to the Town of Fort Fairfield as the lead community. The lead community will establish a legally binding contract with Alpha One as approved by OCD.

(a) Eligible Activities:

(i) Eligible activities under the CARP are construction and installation of moveable, reusable ramps and other modifications to assure proper access at the residences of disabled low-to-moderate income persons.

(b) Housing units ineligible for CARP Assistance:

(i) Housing units located in the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are not eligible for financial assistance under the CARP.

3. Special Program Requirements:

(a) Maximum CARP Grant Amount: $300,000.

(b) Maximum Administrative Costs: The CARP allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 15% of the grant amount. The Town of Fort Fairfield is allowed a maximum of $3,000 in administrative funding.

D. DEVELOPMENT FUND HOUSING LOAN PROGRAM

The Development Fund Housing Loan program (DFHL) provides funding for communities forming partnerships with local non-profit housing development organizations to carry out activities leading to the development of affordable housing opportunities for low-to-moderate income (LMI) persons.

1. Special Threshold Criteria and Requirements: DFHL program funds will be distributed through a monthly grant submission and review process

(a) Eligible Activities: Eligible activities in the DFHL are acquisition, demolition, site work, construction, renovations, public infrastructure and funding mechanisms directly related to the creation of affordable LMI housing units.

(b) Match: All communities applying for DFHL funds must demonstrate they will provide a direct cash match of at least 50% of the total CDBG grant award. This must be reflected on the Matching Funds Table contained DFHL application package. Firm letters of commitment for all cash matching funds must be attached to the table. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum DFHL Grant Amount: $300,000

(d) Project Implementation: Implementation of all project activities must be carried out by a non-profit development organization that has established a contractual relationship with the applicant community.

(e) Bona-fide Non-Profit Housing Development Organization: DFHL activities may only be carried out by bona-fide non-profit housing development organizations that meet the Internal Revenue Service definition as a non-profit and include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 C ertified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies. Final determination on the bona-fide status of Non-Profit Housing Development Organizations as eligible participants in the DFHL program will be solely up to OCD.

(f) Site Control of DFHL Project Site: The non-profit housing development organization must have site control of the site on which all DFHL activities will take place.

(g) Demonstration of National Objective: Applicants must document at the time of application that the project meets the National Objective of benefiting low-to-moderate income (LMI) persons.

2. Special Program Requirements for Grants to Municipalities then Loaned to an Identified Non-Profit Housing Developer:

(a) Loan: The DFHL is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified non-profit housing development organization. The loan must be provided under the terms stated in a DFHL Program Letter of Commitment and the contract between the DECD, the community and the non-profit housing development organization.

(b) Repayment Terms: Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the cost differentiations and the benefit derived from the assistance and must be approved by the DECD. The interest rate for DFHL funds is up to 3% for a term not to exceed 10 years. A special negotiated interest rate will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

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

(a) Application: The DFHLApplication deadline is the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday or State shutdown day the due date would then be the following regular business day by 4:00 p.m.

The OCD review team will rate each application in relation to all others. In addition each application will undergo a threshold financial underwriting review by the OCD independent council.

(b) Rating Criteria: The following rating criteria will apply to all DFHL applications:

(i) Documentation of bona-fide status for Non-Profit Housing Development Organization carrying out DFHL activities. This documentation must clearly demonstrate the Non-Profit Housing Development Organization meets the requirements set forth in the DFHL application package: 10 points

(ii) Verification of site control of DFHL project site by Non-Profit Housing Development Organization. Applicant must submit copy of deed, purchase and sales agreement, etc.: 10 points

(iii) Applicants must submit a maximum 2-page Project Summary of all activities to be funded with DFHL and matching funds. In addition to the summary the applicant must submit a photo of the project site (arial, etc) and/or a detailed project drawing or map: 25 points

(iv) Verification that the DFHL project meets the National Objective of benefiting low-to-moderate income (LMI) persons: 10 points

(v) Applicants must submit a maximum 2-page assurance that DFHL activities will be completed within 18 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay the project. In addition to the summary the applicant must submit a maximum 10-Page engineering report and professionally produced cost estimate: 25 points

(vi) Applicants must submit the Budget Summary and Matching Funds table with letters of commitment demonstrating that the project is fully funded and ready to proceed: 15 points

(vii) DFHL applications supporting project activities taking place in a designated downtown area shall receive a bonus of 5 points. The applicant must submit written documentation of consisting of either an adopted comprehensive plan or downtown plan making this designation.

(c) Application Approval: The OCD Review Team will forward their recommendations for funding to the Director, Office of Community Development. 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.

E. 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	$350,000
2) Community, child, senior, and health centers, libraries
sheltered workshops, homeless shelters, pier/wharf	$350,000
3) Removal of architectural barriers	$150,000
(as a distinct, stand-alone project)
4) Historic preservation	$150,000
(as a distinct, stand-alone project)
5) Fire fighting equipment, salt/sand storage shed
transfer station, parks and recreation facilities,
public works garages.	$ 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 3, 2010.

(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 a Letter of Intent and Verification of CDBG National Objective to OCD o or before 4:00PM on Friday December 3, 2010 according to the requirements set forth in the 2011 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on January 21, 2011. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis - Members of the four-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

(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 has been pre-determined by an independent authority for each community in Maine and is published in the 2011 Proposed Program Statement.

Stage 3: Final Application Score - Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the 4-person OCD Review Team added 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.

F. 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 public infrastructure limited to supporting construction of fully-funded affordable LMI housing; 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, dams with the main purpose of providing the primary water storage facility for an active water district or municipal system. (Road or street reconstruction is not eligible)	$500,000
2) Infrastructure in support of new LMI affordable fully financed housing	$500,000
3) Streets and roads, 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 3, 2010.

(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 a Letter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday December 3, 2010 according to the requirements set forth in the 2011 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on January 21, 2011. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis - Members of the four-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 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 has been pre-determined by an independent authority for each community in Maine and published in the 2011 Proposed Program Statement.

Stage 3: Final Application Score - Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the 4-person OCD Review Team added 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.

G. 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 not eligible 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 (Does not include "at-risk" youth) Battered Spouses (Does not include all victims of domestic violence) Elderly Persons (62 years +, or 55 years + for housing) Severely Disabled Adults Homeless Persons Illiterate Adults Migrant Farm Workers Persons Living with AIDS; or

(ii) Participants in a program where 51% or greater of the persons receiving benefit from PSG activities are determined to be LMI; 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 cash/in-kind 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: $50,000

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 March 11, 2011 according to the requirements set forth in the 2011 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 May 6, 2011. Each application will be rated in relation to all others in a two-stage process.

Stage 1: Review Team Analysis - Members of the four-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%

Up to 15% - 1 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 the average of the scores assigned by members of the 4-person OCD Review Team. 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. 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; and 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: $600,000

(i) Bonus Points for Applicants with Maine Downtown Center Designation: Applicants will receive three bonus points if they have been designated as a Main Street Maine Community by the Maine Downtown Center or one bonus point if they have been designated as a Maine Downtown Network Community.

(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 January 7, 2011.

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 and Verification of CDBG National Objective: All communities wishing to submit a DR application must submit a Letter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday January 7, 2011 according to the requirements set forth in the 2011 DR application package.

(b) 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 March 4, 2011. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis - Members of the four-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):

Describe the scope and magnitude of the problems, and how they are obstacles for revitalizing the downtown. - 8 points

*Explain how the problems negatively impact the viability of existing downtown businesses, or new development and expansion. - 8 points

*Demonstrate how the problems affect LMI persons, or how they contribute to slum/blight conditions. - 7 points

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

(ii) Development of Strategy (40 points):

*Clearly link the proposed DR activities to action steps outlined in your community's Downtown Action Plan, and explain how the project will stimulate economic activity in the downtown. - 10 points

*List the specific activities to be addressed in this downtown revitalization effort, and identify the tasks to be undertaken with DR funds and the activities to be undertaken with each other source of funds. - 10 points

* Define how the proposed DR activities provide a solution to the problems and assist in improving the area's viability, and how the activities will have a positive impact on LMI persons, or on alleviation of the slum/blight conditions. - 10 points

* Describe the capacity and experience of the administrator who will be implementing the project, describe the engineering and design work completed to date, provide a project timeline, and explain how DR funds will be expended in a timely manner. - 10 points

(iii) Project Leverage (10 points):

*Budget Page review - 3 points

*Matching Funds Table review - 3 points

*% which firm cash commitments exceed minimum 25%

Up to 15% - 1 point

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

Stage 3: Final Application Score - Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the 4-person OCD Review Team added to any applicable 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.

I. MAINE DOWNTOWN CENTER ASSISTANCE (Limited to the City of Gardiner)

The Maine Downtown Center Assistance (MDCA) provides funding to support activities undertaken by the Maine Downtown Center on behalf of communities addressing critical needs in established downtown areas.

1. Special Threshold Criteria and Certifications: MDCA funds will be distributed through a set aside of CDBG funds provided to the City of Gardiner as the lead community. The lead community will establish a legally binding contract with the Maine Downtown Center as approved by OCD.

(a) Eligible Activities:

(i) Eligible activities under the MDCA are planning, capacity building, technical assistance and administration directly related to furthering the Maine Downtown Center's objectives in building vibrant, sustainable Maine downtowns. Assistance will be available to Main Street Maine communities as well as communities not currently so designated. Assistance will be made available as determined by the Maine Downtown Center and OCD.

(b) Communities Ineligible for MDCA Assistance:

(i) The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are not eligible for financial assistance under the MDCA.

3. Maximum Administrative Costs:

(a) The City of Gardiner is allowed a maximum of $1,000 in administrative funding.

4. Special Program Requirements:

(a) Maximum MDCA Grant Amount: $201,000.

J. 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 $150,000.

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 11, 2011. 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 39 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2011 PROGRAM STATEMENTSection 498-39-2 - COMMUNITY DEVELOPMENT

Code of Maine Rules
19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT
Chapter 39 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2011 PROGRAM STATEMENT
Section 498-39-2 - COMMUNITY DEVELOPMENT