This section describes the methods by which any funds not
distributed, disencumbered funds, additional funds received from HUD, and
Program Income may be redistributed by the State.
A. ADMINISTRATIVE REDISTRIBUTION OF GRANT
FUNDS
1. Local Government Grants from the
State: Local governments receiving grants as a result of the 1993 CDBG program
but unable to have their projects substantially underway (staff hired,
environmental review complete, program costs obligated) within six months of
the grant award, shall have their grant canceled by the State. Unexpended grant
funds may be added to any open CDBG contract, used to make additional awards in
any 1993 CDBG program, or added to the available monies for the 1994
competition.
Unexpended funds remaining in the grantee's CDBG account at
grant closeout, funds remaining in a grantee's award but not drawndown upon
grant closeout and funds returned to the State because of disallowed costs may
be added to any open CDBG contract, used to make additional awards in any 1993
CDBG program or added to the available monies for the 1994 competition.
2. Unallocated State Grants To
Local Governments: Unallocated grant funds resulting from lack of adequate
program competition or demand in the Housing Assistance, Public
Facilities/Infrastructure, Public Service, Emergency Implementation,
Development Fund, Regional Assistance, Micro-Loan, Economic Development
Infrastructure, Phase II Planning, General Purpose Planning, and Comprehensive
Planning Grant Programs may be added to any open CDBG contract, used to make
additional awards in any 1993 CDBG program. or added to the available monies
for the 1994 competition.
3. State
grants from HUD: Additional HUD financial allocations to the State of Maine may
be added to any open CDBG contract, used to make additional awards in any 1993
CDBG program or added to the available monies for the 1994
competition.
4. Basis for
Redistribution: The decision on how to redistribute funds will be made after
staff evaluation of the following: the total funds available, requests for
additional funding from current CDBG grantees, any applicants that received
scares above the 85 point threshold in 1993 competitions but did not receive
funding and the possibility of holding additional competitions during the 1993
Program. Additional competitions will be held only as a last resort, and be
limited to Housing Assistance Grants, Public Facility/Infrastructure Grants and
the Micro-Loan Program. In all cases, these additional competitions and the
subsequent programs developed, will be subject to the applicable section(s) of
this 1993 Final Statement or amendments thereto.
In the case of funds added to open grant(s), redistribution
will give priority to grants needing additional CDBG funds in order to complete
the activities described in their application to the State and secondly to
grants for additional activities which meet the State and local community
development objectives. In no case will the total of the original grant award
and any redistributed funds to that grant, exceed the maximum grant award for
that program as set forth in this Proposed Statement.
All staff recommendations regarding redistribution of funds
in the 1993 CDBG program will be subject to approval by the Director of the
OCD.
B. PROGRAM
INCOME
As used in this Final Statement, program income means the
gross income received by a grantee from any grant-supported activity.
1. General Program Income Requirements:
(a) Program Income Received During the Grant
Period: Program income may be retained by a grantee for a specific purpose or
activity during the grant period provided the grantee submits an acceptable
Program Income Plan, as described in Section 5(B) (1) (d) of this Proposed
Statement. If not, the grantee must expend program income for all activities,
prior to requesting additional grant funds for any activity.
(b) Program Income Received After the End of
a Grant Period: Grantees must transfer all program income, at the end of a
grant, to the most recent open grant. The funds are considered program income
of the new grant.
Grantees that desire to retain program income received after
the end of their last open CDBG grant, must submit a Program Income Plan as
described in Section 5(B)(1)(d) of this Proposed Statement.
(c) Program Income Received by the State: Up
to 2% of program income that is returned to the State may be used for
administrative costs. The balance of program income (98%) will be used to fund
now or previously committed CDBG obligations.
(d) Program Income Plan: Each grantee
anticipating program income during or after the end of a grant period must
submit a Program Income Plan to OCD. A Program Income Plan shall include the
following:
(i) A description of the Title I
eligible activities and National Objective(s) that will be funded with program
income;
(ii) Documentation of the
need for the program income in the activity proposed for reuse;
(iii) A schedule for the receipt and reuse of
the program income; and
(iv) A
description of the grantee's administrative capacity to manage and track all
program income received during and after a grant and to manage the activity to
be funded with program income. The grantee must also indicate how much of the
program income, not to exceed 18%, will be used for administration of the
program income.
(e)
Program Income Plan Submission: The following schedules must be adhered to when
submitting a program income plan:
(i) Housing
Assistance Grants, Public Facilities/Infrastructure Grants, Public Services
Grants, Emergency Implementation Grants, Reserved Grants, Micro-Loan Program,
Economic Development Infrastructure Program: during the Phase II
process;
(ii) Development Fund:
within forty-five (45) days of grant award;
(iii) Interim Finance Program: with the IFP
application; and
(iv) Regional
Assistance Fund: with the RAF application.
2. Special Program Requirements: special
program requirements apply to the following programs:
(a) Development Fund Program Income: Except
for those grantees who can adequately demonstrate the reuse of program income
for the "same activity" that generated the program income, grantees will have
the option to either return the DF loan repayments to a regional organization
to be used as match money or return the repayments to the State to be placed in
a State CDBG Development Fund Revolving loan Fund (RLF) Program.
For these purposes, "same activity" shall mean the same
business that originally received CDBG assistance.
Loans made from the State RLF must be provided as grants to
local governments for loans to businesses and/or developers, must use a local
review process approved by the DECD, and must meet the 51% low to moderate
income benefit threshold.
(b) Interim Finance Program Income: The
assignment of program income will be negotiated at the time of grant
award.
(c) Regional Assistance Fund
Program Income: The assignment of program income will be negotiated at the time
of grant award.
(d) Micro-Loan
Program Income: Except for those grantees who can adequately demonstrate demand
for the reuse of program income for the "same activity" that generated the
program income, grantees will return Micro-Loan repayments to the State to be
placed in the pool of funds for the State Micro-Loan Program.
"For these purposes, "same activity" shall mean an eligible
loan as defined under the Micro-Loan Program.
