19-100 Economic / Community Development

Chapter 1 Municipal Tax Increment Financing Rule

Code Me. R. 19-100 Ch. 1 Municipal Tax Increment Financing Rule {#sec-19-100-ch.-1 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 1}

Summary: This chapter outlines the purpose, definitions, application requirements, review procedures, designation procedures, and reporting requirements governing municipal tax increment financing districts, 30-A M.R.S.A. §§ 5221 - 5235

SECTION 1. PURPOSE AND DEFINITIONS

A. PURPOSE

The municipal tax increment financing program, established under 30-A M.R.S.A., Chapter 206, is designed to assist municipalities in encouraging industrial, commercial, transit-oriented, or arts district development, increasing or retaining employment opportunities, and broadening tax bases. This chapter sets forth the provisions by which a municipality may utilize these programs, and describes application requirements, review procedures, designation procedures, and reporting requirements. It is the intent of the Department of Economic and Community Development to ensure, to the greatest extent possible, municipal control and responsibility for tax increment financing districts. It is the intent of the Department of Economic and Community Development to ensure that municipalities have the greatest possible access to municipal tax increment financing.

B. DEFINITIONS

All terms used but not defined in this Chapter shall have the meanings ascribed to those terms in Chapter 207 of Title 30-A of the Maine Revised Statutes, as amended. The following terms shall have the definitions hereinafter set forth:

"Captured assessed value" means the valuation amount by which the current assessed value of the development district exceeds the original assessed value of the district and is sheltered for otherwise authorized tax increment financing purposes

"Commissioner" means the Commissioner of the Department of Economic and Community Development.

“Credit enhancement agreement” means a contract between a municipality and a business that specifies (a) the project costs to which TIF funds will be applied, and (b) the obligations of the municipality and the business regarding the creation of a tax increment financing district and the implementation of the development program.

"Department" means the Department of Economic and Community Development.

"Development program" means a statement of means and objectives designed to improve the quality of life, the physical facilities and structures and the quality of pedestrian and vehicular traffic control and transportation within the development district.

"Development program amendment" means any change to a state approved development program, including but not limited to the following:

(a) Alteration of the district boundaries;

(b) The addition or deletion of project costs to be financed through Tax Increment revenue;

(c) An increase or decrease in the amount of indebtedness or other project costs to be financed through Tax Increment revenue, and

(d) Municipal revaluation.

"Development program fund" means the account or accounts into which municipal tax increment revenues are deposited.

“Downtown redevelopment plan” means a document adopted by a municipal legislative body that describes the municipality’s comprehensive plan for the physical and economic redevelopment of its downtown.

"Financial plan" means a statement of the costs and sources of revenue required to accomplish the development program.

"Fiscal year" means the period of time from April 1 through March 31 of each year.

"Governing body of the municipality" means the legislative body of a municipality at any regular, special or other duly constituted meeting. In accordance with 30-A M.R.S.A. §5235, for tax increment financing in an unorganized territory, the county commissioners shall act as the municipal legislative body.

"Municipal Tax increment" means that portion of all real and personal property taxes assessed by a municipality, apart from any state, county or special district tax, upon the captured assessed value of property in a development district.

"Physical description" means a description of the tax increment financing district, including:

(a) Tax maps delineating the property in the proposed tax increment financing district;

(b) A municipal map showing the site location of the proposed tax increment financing district relative to the municipal boundaries;

“Project cost account” means an account established by a municipality that is pledged to and charged with the payment of the project costs that are outlined in an approved financial plan and that are paid in a manner other than that described in subsection 5.

"Record of municipal approval" means the record of the series of local actions required pursuant to 30-A M.R.S.A. §§ 5253, 5223 and 5226 to designate a development district.

"Retail Business operation" means a business engaged primarily in making retail sales of consumer goods for household use to consumers who personally visit the location to purchase the goods, or a business providing consumer services for which sales tax is applicable.

“Sinking fund account” means an account established by a municipality that is pledged to and charged with the payment of the interest and principal for municipal indebtedness as the interest and principal fall due and the necessary charges of paying interest and principal on any notes, bonds, or other evidences of indebtedness that were issued to fund or refund the cost of an approved development program.

SECTION 2. APPLICATION REQUIREMENTS - ORIGINAL

A. GENERAL

Municipalities wishing to use municipal tax increment financing to fund development programs must submit an application to the Department conforming in all material respects to the requirements of Sections (B) below and providing any additional information the Department may request.

In accordance with 30-A M.R.S.A., §5235, a county may act as a municipality for the unorganized territory within that county for purposes of municipal tax increment financing.

B. MUNICIPAL TAX INCREMENT FINANCING APPLICATION

A municipality wishing to use municipal tax increment financing to fund a development program shall submit to the Department for review by the Commissioner an original and one copy of an application that satisfies the requirements of this section. The municipality shall provide with the application any additional information the Department may require.

An application for designation of a municipal tax increment financing district must contain the following, in the order listed:

1. A cover letter from an authorized municipal official certifying that all information contained in the application is true and correct to the best of his or her knowledge.

2. An Application Cover Sheet on a form provided by the Department;

3. A completed Employment Goals form provided by the Department;

4. A completed Statutory Requirements & Thresholds form provided by the Department;

5. A Development program which includes

a) Description of public facilities, improvements, or programs to be financed in whole or in part by the development program

b) Description of commercial facilities, arts districts, improvements or projects to be financed in whole or in part by the development program

c) Duration of the program (may not exceed 30 years)

d) Certification of original assessed value of the taxable property in the TIF district by the municipal tax assessor, using valuation from the prior March 31st

e) A physical description of the district including

i. A municipal map clearly showing the site location of the proposed district relative to the municipal boundaries; and

ii. Tax maps clearly delineating the boundaries of the proposed district

f) Financial plan

i. Cost estimates for the development program

ii. Amount of public indebtedness to be incurred

iii. Sources of anticipated revenues

iv. Description of the terms and conditions of any agreements, contracts or other obligations related to the development program (e.g. credit enhancement agreements CEAs)

v. Estimates of increased assessed values of the district for each year of the program

vi. Portion of the increased assessed values to be applied to the development program as captured assessed values and resulting tax increments in each year of the program

vii. Tax shift calculations for each year of the program

g) Plans for the relocation of persons displaced by the development activities

h) Proposed regulations and facilities to improve transportation

i) Environmental controls to be applied

j) Proposed operation of the development district after the planned capital improvements are completed

6. Evidence of public hearing

a) 10 day notice of public hearing, including proof of date of publication

b) Minutes of public hearing, attested to and signed

c) Record of district designation by municipal legislative body

C. ESTABLISHING ORIGINAL ASSESSED VALUE

Completed applications must contain current information regarding the assessed value of the district as of March 31 immediately preceding the date of completed application to the Department.

D. TIMING OF SUBMISSION

In order to establish the original assessed value specified in the municipality’s development program, a municipality must submit its application to the Department by March 1 of the property tax year in which the municipality designates the tax increment financing district, unless the Commissioner, if requested by the municipality before March 1, authorizes submission after March 1 but before March 31.

SECTION 3. APPLICATION REQUIREMENTS – DOWNTOWN TIF DISTRICT

A. GENERAL

A municipality wishing to use municipal tax increment financing to fund a development program for a downtown tax increment financing district shall submit to the Department an original and three copies of an application that satisfies the requirements of this section. The municipality shall include with the application any additional information the Department may require.

B. CONTENTS

An application for approval of designation of a downtown tax increment financing district must contain the following:

1. All items specified in sections 2B, 3, 4 and

2. A comprehensive downtown redevelopment plan approved by the legislative body of the municipality.

SECTION 4. APPLICATION REQUIREMENTS – AMENDMENTS

A. GENERAL

A municipality wishing to amend an approved tax increment financing district and/or development program shall submit to the Department for an application that satisfies the requirements of this section. The municipality shall submit an original and four copies of the application in the case of downtown tax increment financing districts and an original and two copies in the case of all other tax increment financing districts. The municipality shall include with the application any additional information the Department may require.

Examples of such amendments include but are not limited to: alteration of the district boundaries; addition or deletion of project costs to be financed from tax increment revenues; increase or decrease in the amount of indebtedness to be repaid from tax increment revenues; and municipal revaluation.

B. CONTENTS

An application for amendment of a municipal tax increment financing district and/or development program must contain:

1. A cover letter from an authorized municipal official certifying that all information contained in the amendment is true and correct to the best of his or her knowledge.

2. A narrative summary of the changes included in the proposed amendment;

3. Evidence of public hearing for the proposed amendment

a) 10 day notice of public hearing, including proof of date of publication

b) Minutes of public hearing, attested to and signed

c) Record of amended district designation by municipal legislative body

Further, the application must contain any of the following items which have changed from the original application, in the order listed:

4. A completed Employment Goals form provided by the Department;

5. A completed Statutory Requirements & Threshholds form provided by the Department;

6. A Development program which includes

a) Description of public facilities, improvements, or programs to be financed in whole or in part by the development program

b) Description of commercial facilities, arts districts, improvements or projects to be financed in whole or in part by the development program

c) Duration of the program (may not exceed 30 years)

d) Certification of original assessed value of the taxable property in the TIF district by the municipal tax assessor, using valuation from the prior March 31st

e) A physical description of the amended district including

i. A municipal map clearly showing the site location of the proposed district relative to the municipal boundaries and original district; and

ii. Tax maps clearly delineating the boundaries of the proposed amended district

f) Financial plan

i. Cost estimates for the development program

ii. Amount of public indebtedness to be incurred

iii. Sources of anticipated revenues

iv. Description of the terms and conditions of any agreements, contracts or other obligations related to the development program (e.g. credit enhancement agreements CEAs)

v. Estimates of increased assessed values of the district for each year of the program

vi. Portion of the increased assessed values to be applied to the development program as captured assessed values and resulting tax increments in each year of the program

viii. Tax shift calculations for each year of the program

g) Plans for the relocation of persons displaced by the development activities

h) Proposed regulations and facilities to improve transportation

i) Environmental controls to be applied

j) Proposed operation of the development district after the planned capital improvements are completed

C. AMENDING ORIGINAL ASSESSED VALUE

If the amendment changes the boundaries of the tax increment financing district, the application for the amendment must contain a statement of the new original assessed value of the district certified by the municipal tax assessor. The changes in boundaries and original assessed value are effective the date the amendment is approved by the Commissioner.

D. TIMING OF SUBMISSION

In order to establish the original assessed value specified in an amendment, a municipality must submit its application to the Department by March 1 of the property tax year in which the municipality approves the amendment, unless the Commissioner, if requested by the municipality before March 1, authorizes submission after March 1 but before March 31.

SECTION 5. DEPARTMENT REVIEW AND CERTIFICATION

A. REVIEW BY COMMISSIONER

Upon receipt of an application for approval of the designation or amendment of a tax increment financing district, the Commissioner shall review the application to ensure that it is complete and satisfies the requirements of both 30-A M.R.S.A., Chapter 206, and this Chapter of the Department’s rules.

B. ACTION ON APPLICATION

After reviewing an application, the Commissioner shall issue a Certificate of Approval, deny the application, stating in writing the reason or reasons for the denial or issue a conditional approval in accordance with section 5, subsection F.

C. CERTIFICATE OF APPROVAL

1. Contents – Original or Downtown designation

a. The name of the tax increment financing district;

b. The effective date of the approval

c. The term of the tax increment financing district, not to exceed 30 years from the date of designation of the district;

d. The requirements for capturing value;

e. The requirement that tax increment financing revenues be deposited and held in a project cost account and/or sinking fund account and be used only for approved project costs;

f. The requirement that the municipality notify the Department promptly if the tax increment financing district is terminated;

g. The requirement that, if tax increment revenues derived from the district are deposited into the municipality’s general fund, the incremental property values generating the revenues deposited in the general fund be included with the municipality’s equalized assessed value and not be captured;

h. The requirement that any amendment of the district comply with (1) the statutes governing approval of the original designation of the district and (2) this Chapter of the Department’s rules; and

i. Any other information the Department determines necessary.

2. Contents – Amended designation

a. The name of the tax increment financing district;

b. The term of the tax increment financing district, not to exceed 30 years from the date of original designation of the district

c. The effective date of the approval;

d. If applicable, the Department’s authorization to increase or reduce the original assessed value of the district and by what amounts;

e. The requirement that tax increment financing revenues be deposited and held in a project cost account and/or sinking fund account and be used only for approved project costs;

f. The requirement that the municipality notify the Department promptly if the tax increment financing district is terminated;

g. The requirement that, if tax increment revenues derived from the district are deposited into the municipality’s general fund, the incremental property values generating the revenues deposited in the general fund be included with the municipality’s equalized assessed value and not be captured;

h. The requirement that any additional amendment of the district comply with

(1) the statutes governing approval of the original designation of the district and

(2) this Chapter of the Department’s rules; and

i. Any other information the Department determines necessary.

D. COMMENCEMENT TO DEVELOPMENT PROGRAM

The development program for a tax increment financing district begins on the date the Commissioner issues a Certificate giving final approval to the program, and on that date a municipality may begin expending funds and incurring obligations with respect to approved project costs. An amendment of a development program begins on the date the Commissioner issues a Certificate giving final approval to the amendment, and on that date a municipality may begin expending funds and incurring obligations with respect to any new project costs contained in the amendment. A municipality may not expend funds or incur obligations with respect to a project cost in an original or amended development program until the date the Commissioner gives final approval to the original development program or the amendment.

E. TERMINATION OF DISTRICT AND DEVELOPMENT PROGRAM

A development district and its development program end on the date specified in the Certificate giving final approval to the original designation or the amendment of the district and/or the program. After that date, a municipality may not use tax increment revenues to fund project costs in the development program.

F. CONDITIONAL APPROVAL

To ensure compliance with 30-A M.R.S.A., Chapter 206, while at the same time furthering the intent and goals of Chapter 206, the Commissioner may approve the designation or amendment of a tax increment financing district and conditionally approve a portion of the district’s proposed original or amended development program. The Commissioner may require the municipality to submit additional information regarding those portions of the development program that were not conditionally approved.

If the Commissioner approves the designation or amendment of a tax increment financing district and approves only part of the development program, the municipality may expend funds only on the approved part of the development program. A municipality may not expend funds on any part of the development program that has not been approved in writing by the Commissioner.

SECTION 7. ANNUAL REPORTING REQUIREMENTS.

A. MUNICIPALITIES

(APA Office Note: this sub-section has been deleted under the advice of the Office of the Attorney General due to a statutory change – see P.L. 2009 ch. 337.)

B. SITE VISITS

The Department and/or the State Tax Assessor may make site visits to approved tax increment financing districts as part of their duties to ensure compliance with statutory requirements.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §13058(3)
• STATUTORY AUTHORITY: 30-A M.R.S.A. §5254-A(I-B) (C) and (6)
• EFFECTIVE DATE: June 13, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• CONVERTED TO MS WORD: July 9, 2003
• AMENDED: December 22, 2009 – filing 2009-668
• SUB-SECTION 7.A DELETED: February 11, 2013 – quoting from a February 8, 2013 e-mail from William H. Laubenstein III, Assistant Attorney General: “This will confirm that the statutory requirement for annual reporting in the DECDTIF Rule (19-100, ch.1, sec. 7.A) was deleted in 2009. Accordingly, it would be appropriate to strike that provision from the rule. See PL 2009, ch. 337. The site visit requirement should not be stricken.”
• SUB-SECTION 7.A DELETED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK:
• SUB-SECTION 7.A DELETED: July 15, 2025

Chapter 2 Pulp and Paper Tax Increment Financing and Environmental Investment Program

Code Me. R. 19-100 Ch. 2 Pulp and Paper Tax Increment Financing and Environmental Investment Program Rule {#sec-19-100-ch.-2 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 2}

SECTION 1. PURPOSE AND DEFINITIONS

A. PURPOSE

The pulp and paper tax increment finance program and the environmental investment program are designed to assist companies engaged in the pulp and paper industry in the financing of substantial capital investments in environmental improvement projects that are required by state and federal regulation of the pulp and paper industry. This chapter sets forth the provisions by which the pulp and paper industry may utilize these programs, and describes application requirements, state review procedures, state designation procedures, annual reporting requirements, calculation of valuation eligible for tax increment financing, and calculation of distributive shares for the pulp and paper environmental investment fund.

B. DEFINITIONS

All terms used but not defined in this Chapter shall have the meanings ascribed to those terms in Chapter 207-A of Title 30-A of the Maine Revised Statutes, as amended. The following terms shall have the definitions hereinafter set forth:

Captured assessed value. "Captured assessed value" means the valuation amount by which the current assessed value of a pulp and paper tax increment financing district exceeds the original assessed value of the district. If the current assessed value is equal to or less than the original, there is no captured assessed value.

Certified Elements. "Certified Elements" means (1) those elements identified under the certification by rule provisions of the Maine Department of Environmental Protection Regulations to be adopted, as elements of an environmental improvement project, and/or (2) any element otherwise certified by the Commissioner of the Department of Environmental Protection pursuant to 30-A M.R.S.A. §5264(3)(B) and for which an applicant is eligible to apply for reimbursement of a portion of its costs pursuant to 30-A M.R.S.A. §5270.

Commissioner. "Commissioner" means the Commissioner of the Department of Economic and Community Development.

Department. "Department" means the Department of Economic and Community Development.

Development program. "Development program" means a statement of means and objectives designed to improve and modernize the manufacturing facilities and related structures and equipment within the development district. The statement must include:

(a) A financial plan;

(b) A complete list of public and private facilities to be constructed;

(c) The uses of private property within the development district;

(d) The environmental controls to be applied;

(e) An estimate of the number of jobs to be created, stabilized, retained or eliminated;

(f) The proposed operation of the development district after the planned capital improvements are completed;

(g) The duration of the program, which may not exceed twenty years from the date of designation of the development district;

(h) The district boundaries;

(i) Project costs to be financed through tax increment revenue; and

(j) The amount of indebtedness or other project costs to be financed through tax increment revenue.

Development program amendment. "Development program amendment" means any change to a state approved development program, including but not limited to any changes in items (a) through (j) of the definition of "Development Program".:

Development program fund. "Development program fund" means the account or accounts into which pulp and paper tax increment revenues are deposited. These accounts must be managed in accord with the provisions of 30-A M.R.S.A. §5265, sub-§3.

Environmental improvement project. "Environmental improvement project" means a capital investment necessary to comply with the requirements of federal regulation finally adopted by the United States Environmental Protection Agency pursuant to its rulemaking initiated on December 17, 1993; Federal Register, Vol. 58, No. 241, pages 66078 to 66216; or otherwise required under the United States Clean Air Act or the United States Clean Water Act, as amended, or under any legislation passed in replacement of such Acts or regulations, or any regulations under such Acts, or under any state law or regulation enacted or adopted to implement the requirements of these federal laws and regulations.

Evidences of indebtedness. "Evidences of indebtedness" as used in 30‑A M.R.S.A. §§265(3)(A)(1) means any notes, long-term or short-term, bonds, leases, contractual commitments for the payment of money over a pre-established term, or any other evidences of indebtedness whatsoever issued, established or otherwise entered into by the municipality or its designee in connection with an environmental improvement project.

Financial plan. "Financial plan" means a statement of the costs and sources of revenue required to accomplish the development program. The statement must include:

(a) Cost estimates for the development program;

(b) The amount of any indebtedness to be incurred;

(c) Sources of anticipated revenues;

(d) Estimates of captured assessed values of the development district;

(e) The portion of the captured assessed values to be applied to the development program and resulting tax increments in each year of the development program; and

(f) A statement of the estimated impact of tax increment financing on all tax jurisdictions in which the development district is located.

Fiscal year. "Fiscal year" means the period of time from April 1 through March 31 of each year, which corresponds to the municipal tax year.

Governing body of the municipality. "Governing body of the municipality" means the legislative body of a municipality at any regular, special or other duly constituted meeting. For pulp and paper tax increment financing in an unorganized territory, the county commissioners shall act as the municipal legislative body.

Manufacturing facilities. "Manufacturing facilities" as used in 30-A M.R.S.A. §5263(5) includes all improvements of any nature whatsoever located within the boundaries of a development district and owned or used by any business engaged in the pulp and paper industry including, without limiting the generality of the foregoing, all transportation, staging, warehousing, preparation, processing and office facilities related to manufacturing facilities, even if located in separate structures.

Original assessed value. "Original assessed value" means the assessed value of the development district as of the March 31 immediately preceding the date of designation of the district.

Partner. "Partner" as used in 30-A M.R.S.A. §5263(3) means any company, business organization or other entity within the pulp and paper industry that has been selected by a municipality to participate in a pulp and paper tax increment financing district.

Physical description. "Physical description" means a description of the pulp and paper tax increment financing district, including:

(a) Tax maps delineating the property in the proposed tax increment financing district;

(b) A municipal map showing the site location of the proposed pulp and paper tax increment financing district relative to the municipal boundaries;

(c) Certification by the municipal tax assessor that this information is accurate, and

(d) The information required and as depicted in Table 1 in the Appendix.

Pulp and paper industry. "Pulp and paper industry" means any industrial activity currently described by the United States Office of Management and Budget under Standard Industrial Classification, 261, 262 or 263 or those activities classified under 2679 that press or mold wood pulp or recycled fiber to make products, including, without limitation, any related activity involving the treatment, recycling or disposal of wastewater, air emissions, solid residues or other related manufacturing by-products. This term does not include activity relating to, associated with or otherwise involving the growth, harvesting, transportation or preparation of timber, pulpwood or other wood products prior to the manufacture of pulp, paper or paperboard; provided, however, that all transportation and preparation of timber, pulpwood or other wood products shall be included in the term "pulp and paper industry" if such activity occurs within the boundaries of the development district.

Pulp and paper tax increment. "Pulp and paper tax increment" means that portion of all real and personal property taxes assessed by a municipality, apart from any state, county or special district tax, upon the captured assessed value of property in a development district.

Pulp and paper tax increment financing district. "Pulp and paper tax increment financing district" means a type of development district, or portion of a development district designated to use tax increment financing in accord with 30-A M.R.S.A. §5265.

Record of municipal approval. "Record of municipal approval" means the record of the local actions required pursuant to 30-A M.R.S.A. §5264 to designate a development district.

SECTION 2. APPLICATION REQUIREMENTS

A. GENERAL

Municipalities wishing to use pulp and paper tax increment financing to fund development programs must submit an application to the Department conforming in all material respects to the requirements of Section (B) below and providing any additional information the Department may request.

A county may act as a municipality for the unorganized territory within that county for purposes of pulp and paper tax increment financing utilizing the procedure specified in 30-A M.R.S.A. §5263.

B. PULP AND PAPER TAX INCREMENT FINANCING APPLICATION

An application for designation of a pulp and paper tax increment financing district must contain the following:

1. A Development Program, fulfilling the requirements specified in 30-A M.R.S.A. §5262(5), and including:

a. a program narrative;

b. a description of the district and the environmental improvement project to be financed, as depicted in Table I in the Appendix;

c. a description of the Certified Elements included in the environmental improvement project.

2. A Financial Plan, fulfilling the requirements specified in 30-A M.R.S.A. §5263(7) and including:

a. a description of estimated development costs;

b. a description of the financing structure;

c. development cost estimates and a description of the expected sources and uses of funds to finance the development costs, as depicted in Table 2 in the Appendix; and

d. the estimated portion of the captured assessed values to be applied to the development program and resulting tax increments estimated in each year of the development program.

3. Record of Municipal Approvals, including:

a. a certified copy of the notice of public hearing, published at least ten days prior to the hearing in a newspaper of general circulation within the municipality;

b. minutes of the public meeting at which the proposed pulp and paper tax increment financing district was discussed;

c. a copy of the pulp and paper tax increment financing resolution from the governing body of the municipality; and

d. the signature of the municipal officer attesting that all information is true and correct to the best of his or her knowledge.

SECTION 3. DEPARTMENT REVIEW PROCEDURES.

A. PULP AND PAPER TAX INCREMENT FINANCING DISTRICT

Applications for designation of a pulp and paper tax increment financing district will be reviewed by the Department, subject to the following provisions:

1. Completed applications will be reviewed in the order in which they are received.

2. Completed applications must contain current information regarding assessed values as of March 31 immediately preceding the date of receipt by the Department.

3. Prior to issuing a Certificate of Approval, the Commissioner must determine that the application is complete and that the revenues projected to be generated by the proposed district, together with such other sources of revenue as are identified in the application, appear to be sufficient to pay for the costs to be incurred in implementing the district, and that the application otherwise conforms to these regulations and the law. The Commissioner must either (a) confirm the Certified Elements included in the project under the certification by rule provisions of the Maine Department of Environmental Protection Regulations to be adopted, or (b) have received written notification from the Commissioner of Environmental Protection identifying those elements of a development program that constitute Certified Elements.

4. The Department will complete its review of completed applications within thirty working days of submission. Successful applicants will receive a Certificate of Approval in accord with Section 4. Unsuccessful applicants will receive written explanation of the reason for denial.

SECTION 4. DEPARTMENT DESIGNATION PROCEDURES AND LIMITATIONS

A. DESIGNATION PROCEDURES

Upon determining that an application for designation of a pulp and paper tax increment financing district meets all applicable requirements, the Commissioner shall issue a Certificate of Approval. The Certificate of Approval shall indicate the amount of captured assessed value that is necessary to retire the debt or pay for project costs as described in the applicant's development program. The amount of captured assessed value shall be determined as follows:

1. The Department shall first determine from the information presented in the financial plan the amount of tax increment revenue required in any one year to provide for adequate funding of (a) the development sinking fund account established pursuant to 30-A M.R.S.A. §5265(3) (A) (1) and (b) the project cost account established pursuant to 30-A M.R.S.A. §5265 (3) (A) (2) .

2. For the sinking fund, the amount of debt service shall then be divided by the mill rate anticipated in the year in which the amount of debt service is to be incurred. The resulting figure represents the amount of captured assessed value that is necessary to retire the debt incurred in implementing the development program.

3. For the project cost account, the amount of approved annual project costs shall then be divided by the mill rate anticipated in the year in which the amount of project costs are to be incurred, or the municipality may designate a percentage of total increased assessed value as the captured assessed value, in which case the captured assessed value is determined as set forth in the financial plan.

Unless amended and approved by the Commissioner, such designation shall remain in effect for the shorter of either twenty years or until revenues sufficient to fully fund the sinking fund account and project cost account requirements have been realized.

B. LIMITATIONS

The district may continue for a term of up to twenty years.

SECTION 5. ANNUAL REPORTING REQUIREMENTS

On or before June 30 of each year, a municipality in which a state approved pulp and paper tax increment financing district is located must report the following information to the Department:

1. The extent to which public improvements and project plans outlined in the development program have been completed.

2. The extent to which debt incurred in implementing the development program has been retired.

3. Any other information requested by the Department.

SECTION 6. CALCULATION OF A MILL'S VALUATION ELIGIBLE TO RECEIVE PULP AND PAPER TAX INCREMENT FINANCING

A. DETERMINATION OF INCREASES FROM ORIGINAL ASSESSED VALUE

Each year upon the anniversary of the formation of a pulp and paper tax increment financing district, the municipal assessor shall certify the amount by which the assessed value of property within the development district has increased from the original assessed value.

B. DETERMINATION OF ADJUSTMENTS TO INCREASES IN CAPTURED ASSESSED VALUE

Adjustments to annually determined increases in captured assessed values within a development district are governed by 30-A M.R.S.A. §5265(2). That subsection is intended to inhibit relocation of property from outside a development district into a development district in order to capture its assessed value.

SECTION 7. PROJECT COSTS

Project costs shall only be reduced by income, special assessments, subsidies, grants or other revenues available to the municipality, other than tax revenues, that have been received by the municipality or are actually committed to be paid to the municipality at the time of the approval of the development program.

SECTION 8. PAYMENTS FROM DEVELOPMENT PROGRAM FUND ACCOUNT

The development sinking fund account established pursuant to 30-A M.R.S.A. §5265(3)(A)(1) is pledged to and charged with the payment of the interest and principal as the interest and principal fall due and the necessary charges of paying interest and principal on notes, bonds or other evidences of indebtedness that were issued by the municipality or its designee to fund or refund the cost of the development program fund.

SECTION 9. DISTRIBUTIONS FROM THE PULP AND PAPER ENVIRONMENTAL INVESTMENT FUND

A. APPLICATION REQUIREMENTS

Applications for distributions from the pulp and paper environmental investment fund will be reviewed by the Department, subject to the following provisions:

1. Completed applications must be submitted to the Department on or before March 1st of each year in order to be considered for payment that calendar year;

2. Completed applications must contain an itemization of all Certified Elements acquired, installed or constructed together with a breakdown of all costs incurred in connection therewith during the immediately preceding calendar year; and

3. Prior to approving any application, the Commissioner must determine that the application is complete and that the itemized costs of Certified Elements were actually incurred during the previous calendar year. If the Commissioner rejects any costs, the applicant will receive a written explanation of the reasons for denial. The Commissioner may request further information from an applicant in order to make the required determination.

B. CALCULATION OF DISTRIBUTIVE SHARES

The Commissioner shall calculate the portion of each applicant's costs and expenses that are eligible for reimbursement as follows:

1. The total costs submitted by the applicant and approved by the Commissioner pursuant to subsection A above shall be multiplied by three percent (3 %). The product shall be the eligible portion of the expenses of each applicant.

2. The eligible portion for each applicant shall be added to any eligible portions carried forward from the previous year for such applicant. Then the totals for all applicants shall be added. If the sum is less than the available balance of the pulp and paper environmental investment fund, each applicant shall receive its eligible portion. If the sum is greater than the available balance of the pulp and paper environmental investment fund, each applicant shall receive its proportionate share of the available fund balance. Any unreimbursed portion of an applicant's portion of expenses eligible for reimbursement shall be carried over to the next year's calculation of the applicant's eligible portion through March 1, 2000.

C. PAYMENT OF DISTRIBUTIVE SHARES

The Commissioner shall make payment of each applicant's distributive share of the pulp and paper environmental investment fund on or before September 30 of each year.

D. EXAMPLES OF CALCULATIONS

The calculations described in subsection B above are illustrated by the following examples:

Example (1). X, operator of a paper mill, expends $10,000,000 on recycling facilities and related expenses during calendar year 1994. Y, also operator of a paper mill, expends $20,000,000 on solid waste disposal facilities during calendar year 1994. Z, operator of a paper mill, expends $40,000,000 in connection with a construction project expanding its mill. Before March 1, 1995, X, Y and Z submit the required itemization of Certified Elements and costs. The full amount of the costs is approved by the Commissioner. X, Y and Z are the only applicants for reimbursement from the pulp and paper environmental improvement fund for expenses incurred in 1994. Total funds available for distribution equal $2,000,000. Calculation of each entity's distributive share is as follows:

Entity

Total Approved Costs

Undistributed Eligible Portion Carried Forward

Total Eligible Portion of Costs

Proportionate Share of Eligible Portion

Distributive Share of Fund (Paid by 9/30/95)

Undistributed Eligible Portion Carried Forward to 1996

X

10,000,000

0

300,000

(10,000,000 x .03)

14.29%

(300,000 ÷ $2.1M)

285,000

(2,000,000 x .1429)

14,200

(300,000-285,800)

Y

20,000,000

0

600,000

(20,000,000 x .03)

28.57%

(600,000 ÷ $2.1M)

571,400

(2,000,000 x .2857)

28,600

(600,000-571,400)

Z

40,000,000

0

1,200,000

(40,000,000 x .03)

57.14%

(1,200,000 ÷ $2.1M)

1,142,800

(2,000,000 x .5714)

57,200

(1,200,000-1,142,800)

Totals

70,000,000

2,100,000

100%

2,000,000

100,000

Example (2).

During calendar year 1995, X, Y and Z expend the same amounts as in 1994 on Certified Elements. Each applicant submits the required itemization to the Department on or before March 1, 1996, and the full amount of all costs is approved. The total funds available for distribution equal $6,000,000. The calculation of each applicant's distributive share is as follows:

Entity

Total Approved Costs

Undistributed Eligible Portion Carried Forward from 1995

Eligible Portion of Costs

Total Eligible Portion of Costs

Distributive Share of Fund (Paid by 9/30/96)

X

10,000,000

14,200

300,000

(10,000,000 x .03)

314,200

(300,000 ÷ 14,200)

314,200

Y

20,000,000

28,600

600,000

(20,000,000 x .03)

628,600

(600,000 ÷ 28,600)

628,600

Z

40,000,000

57,200

1,200,000

(40,000,000 x .03)

1,257,200

(1,200,000 ÷ 57,200)

1,257,200

Totals

70,000,000

100,000

2,100,000

2,200,000

2,200,000

In the above example, all applicants receive their total eligible portion of costs because the Sum of such portions ($2,200,000) is less than the total available fund balance ($6,000,000).

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §5264 (l) and §5670 (5).
• EFFECTIVE DATE: December 27, 1994
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• CONVERTED TO MS WORD: July 9, 2003
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025
• CONVERTED TO MS WORD: APPENDIX
• CONVERTED TO MS WORD: TABLE 1
• CONVERTED TO MS WORD: 1. Total acreage of municipality:2. Total acreage of proposed pulp and paper tax increment financing district:3. Total acreage of all real property in the proposed pulp and paper tax increment financing district that is owned by a company engaged in the pulp and paper industry:4. Line 4 divided by Line 2 (the resulting percentage must equal or exceed 75%)
• CONVERTED TO MS WORD: TABLE 2
• CONVERTED TO MS WORD: DEVELOPMENT COSTSMunicipalTIFProceedsPrivate Funds Equity Bank(s)Other(Specify)Total1. Land Acquisition2. Building Acquisition3. Relocation of Persons and Businesses4. Clearance & Demolition5. Street & Site Improvements6. Water & Sewer Improvements7. Building Construction8. Parking Facilities9. Capital Equipment10. Preferred Fees11. Administrative Costs12. Discretionary Payments13. Training Costs14. Other Costs

Chapter 3 Governor's Training Initiative Program (Note: Chapter 3 is a joint rule with 12-168, Department of Labor.)

Code Me. R. 19-100 Ch. 3 Governor's Training Initiative {#sec-19-100-ch.-3 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 3}

August 22, 1996

Governor's Training Initiative

Statement of Intent

Index

Page

Summary 1

Section 1: Definitions 1-3

Section 2: Selection Criteria 4

Section 3: Selection Preference 4-5

Section 4: Selection Process 5-6

Section 5: Non-Displacement 6

Section 6: Supportive Services 7

Section 7: Participant Appeal Procedure 7-8

Governor's Training Initiative

Statement of Intent

19-100 DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 3: GOVERNOR'S TRAINING INITIATIVE PROGRAM

Summary: This Statement of Intent describes the design and method of implementation of the Governor's Training Initiative (GTI) Program. The GTI Program is administered pursuant to Chapter 26 MRSA, Section 2031. The Statement of Intent was prepared jointly by the Department of Economic and Community Development and the Department of Labor.

Section 1: Definitions

For purposes of the Governor's Training Initiative, the following definitions apply:

1. Applicant: An applicant is an employer, a group of employers, or an employer in partnership with any one or more of the eligible entities cited in Subsection 8 of 26 MRSA, Section 2031.

2. Employer: An employer is a private sector entity that produces goods or services and is creating, upgrading or retaining jobs that require work force training.

3. Partnership: A partnership must include an employer and may only be in combination with any one or more of the eligible entities cited in Subsection 8 of 26 MRSA Section 2031. Such entities include, but are not limited to, employers, regional and local economic development agencies or partnerships, community-based organizations, job training service providers, registered apprenticeship service providers, local adult education providers and post-secondary institutions.

4. Participant: A participant is an individual residing in Maine and in receipt of GTI services defined in Section 1, Subsection 6 A-H for the purpose of Maine employment.

A) Training participant: A training participant is an individual residing in Maine and in receipt of GTI services defined in Section 1, Subsection 6 C-H for the purpose of Maine employment.

5. Training: Training refers to those activities which develop/enhance an individual's knowledge, skills and abilities in occupationally-specific areas, and may include workplace literacy, safety, high performance skills, technical, on-the-job, or computer assisted instruction, higher education and other non-traditional learning initiatives.

6. Services Available: Services available under this section must result in the training of at least one employee other than, or in addition to, the employer. For purposes of Subsection 6 of 26 MRSA, Section 2031, the following job creation, job upgrading and job retention services are available as defined:

A) Recruitment: Customized targeting of individuals residing in Maine for jobs related to business expansion or new firm location in Maine, performed by public/private non-profit providers.

B) Screening and Assessment: Determination of the preparedness or appropriateness of individuals for job creation or job retention projects as defined below.

1. Evaluation of interests, occupational aptitudes and literacy of job or training applicants.

2. Evaluation of literacy skills of current workers to determine occupationally-linked instruction needs.

3. Identification of preparation needed by current workers for advanced occupational training and/or changes and upgrades in the work routine.

C) Workplace Literacy: Provision of basic skills such as reading, writing, mathematics and computer literacy targeted to job requirements and/or advanced occupational training.

D) Workplace Safety: Provision of occupation-specific health, safety and ergonomics training for new or current workers and linked to job creation and/or job retention strategies.

E) Technical Training: Provision of occupational skills training for new or current workers to maximize performance, productivity, use of technology and global competitiveness.

F) On-the-Job Training: Provision of supervised instruction in the performance of necessary job functions with negotiated reimbursement for training.

G) Higher Education: Provision of occupation specific education for new or current workers through an institute of higher education.

H) Essential Work Competencies: Provision of training to support creation/retention of a high performance workplace, including but not limited to: critical and analytical thinking skills, problem-solving strategies, self-management, team participation, leadership and customer service.

I) Job Task Analysis: Provision of occupational or organizational needs assessment to determine the technical, academic and essential work competencies required for successful job performance.

J) Coordination of employer consortia to access specialized training: The development of consortia to meet industry-specific and employer-specific needs for specialized training through economies of scale.

K) Technical Assistance on workforce capacity issues: Development and coordination of customized workforce development packages and proposals by the Department of Labor and/or Department of Economic and Community Development for firms intending to expand or locate in Maine, upgrade worker skills or reorganize the workplace to remain globally competitive.

L) Technical Assistance on worker training plans.

M) Small business training and technical assistance: Technical assistance on workforce development issues and other essential aspects of managing a business for firms employing fewer than 25 individuals.

Section 2: Selection Criteria

The following criteria must be demonstrated to the interdepartmental review team at the time of application:

1. Training for new hires shall not be approved for any occupation in a labor market where there is already a sufficient supply of workers trained and available to meet an employer's needs and skill levels for workers in that occupation as determined by the Department of Labor's Division of Labor Market Information Services. The applicant shall agree to provide to the Department of Labor the employer's existing and proposed occupational staffing descriptions, employment levels, and other related information to enable the evaluation of labor supply for the labor market.

2. An employer shall provide a statement of commitment to long-term operation in this State.

3. An employer seeking training funds under this program shall pay trainees a wage that is at least equal to 85% of the average wage for that occupation in that labor market. Wage levels will be determined by the Department of Labor's Division of Labor Market Information Services.

4. An employer shall contribute at least 50% of the premium cost of employee health insurance except for small businesses with fewer than 25 employees and in operation less than three years at the time of application.

Section 3: Selection Preference.

In addition to meeting the criteria set forth in Section 2 above, preference must be given to an applicant that substantiates one or more of the following at the time of application:

1. Formation of a local project partnership;

2. Employer willingness to leverage matching funds;

3. Investment in the lifelong learning and skills development of citizens of this state;

4. An increase in the local education and training capacity to support more than one employer that is caused by a proposed project;

5. Provision of high wage or high skill employment, employee benefits and job security;

6. Employer intention to expand or locate in economically depressed areas of this State;

7. Employer willingness to hire new labor force entrants, economically disadvantaged individuals, persons with disabilities or dislocated workers; or

8. Employer willingness to provide a registered apprenticeship for current employees or new hires.

Section 4: Selection Process

1. An application will be reviewed to determine if it meets the following requirements:

A) Applicant as cited in subsection 8 of 26 MRSA, Section 2031; and

B) Selection criteria, as cited in subsection 4 of 26 MRSA, Section 2031 and further defined in Section 2 of this rule.

An application failing to meet either requirement will not be considered.

2. An application meeting the requirements will be evaluated according to a selection process that will consist of a preliminary assessment, selection preferences and program standards.

3. Employers selected for the program will enter into a contractual agreement with the State of Maine that at a minimum includes, but is not limited to: moneys committed to the project; services to be performed; specific role of service provider(s) and employer; and performance expectations. Failure to meet the terms and conditions articulated may result in termination of the contract and subsequent deobligation of project funds.

4. Notification. Selection will be based on a selection process consisting of a preliminary assessment, selection preferences and program standards as cited in Section 4, Subsection 2.

A) Approvals

An applicant approved for funding will be notified in writing by the interdepartmental review team within five working days of the decision. The approval letter will include the contract which must be signed and returned to the Department of Labor within 45 calendar days. A letter from the employer indicating intent to go forward with the project must be received by the Department of Labor within 30 calendar days. A contract not signed and returned within 45 calendar days may be denied, and the applicant will be required to re-apply to be re-considered.

B) Denials

A notification explaining denial based upon the selection process will be issued in writing to the applicant by the interdepartmental review team within five working days of the decision.

Section 5: Non-Displacement

No new hires under this program shall result in the displacement from the firm of any currently employed worker or position (including partial displacement such as reduction in hours of nonovertime work, wages, or employment benefits), or result in the impairment of existing contracts for services or collective bargaining agreements. In addition, no new employment or assignment of a participant or the filling of a position shall take place when:

1. Any other individual is on layoff from the same or any equivalent position, or

2. The employer has laid off any regular employee or otherwise reduced its workforce with the effect of filling the vacancy so created with a participant subsidized under the program.

Section 6: Supportive Services

Supportive services shall be provided when necessary to participate in training provided that the training participant would be eligible for such service under another public training program if funds were available to provide those services to the training participant. All participants shall be given written notice of the availability of these services, shall have the opportunity to make written application for them upon request, and shall receive a written notice as to the disposition of that application. Upon application, a participant will be provided with a form to be used for documenting his/her program eligibility through another public program and the unavailability of these services due to fiscal constraints under such program. Available services include:

1. Training materials or books necessary for participation in the training;

2. Payment for dependent care costs, provided these costs do not exceed the prevailing rate for such care; and

3. Travel payments according to the policies consistent with Job Training System service providers.

Funds for supportive services necessary to participate in training are limited to the duration of the training period, except that costs for services in (2) & (3) above are limited to 90 days for trainees who are receiving wages through the employer or GTI subsidized wages.

Section 7: Participant Appeal Procedure

1. All determinations under this section shall be made promptly and in writing. A participant who is aggrieved by any decision or action made under this section may appeal as provided in this subsection.

2. Each person who requests or receives training or supportive services under this section shall be given written notice describing the right and procedure of appeal provided by this section. This notice shall:

A) Be uniform throughout the State;

B) Be written in language that is clear and understandable and must have a readability score, as determined by a recognized instrument for measuring adult literacy levels, equivalent to no higher than a 6th grade level; and

C) Include a statement that:

1. Any decision regarding the type of training or the type, amount or duration of supportive services offered may be appealed;

2. Hearings provided under paragraph C will be conducted by an impartial hearing officer whose decision may be appealed to the court; and

3. The person may be eligible to receive free legal assistance in pursuing an appeal. This statement must also provide a list of organizations that provide legal assistance to persons of low income.

3. Any person who requests or receives training or supportive services under this section may obtain a review of any decision made by the agency related to those services. When an individual requests a review, the agency shall promptly investigate and attempt to resolve the complaint informally. If the problem is not resolved to the complainant's satisfaction through this informal process, a hearing to review the agency's decision shall be scheduled before an impartial hearing officer at the Department of Labor's Division of Administrative Hearings as provided in paragraph C.

4. A hearing provided under this subsection must be held pursuant to the Maine Administrative Procedure Act.

History

• STATUTORY AUTHORITY: 5 MRSA §13058 sub-§3
• EFFECTIVE DATE: October 7, 1996
• CONVERTED TO MS WORD: July 9, 2003
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 100 Pine Tree Development Zone Program

Code Me. R. 19-100 Ch. 100 Pine Tree Development Zone Program {#sec-19-100-ch.-100 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 100}

Summary: The Pine Tree Development Zone Program is established by the Legislature in PL 2003 Chapter 688, Part D, and amended by PL 2005 Chapters 351 and 451, PL 2009 Chapter 1024, PL 2018 Chapter 440, and PL 2019 Chapter 659. The Department of Economic and Community Development administers the program. This rule establishes criteria to determine eligibility for the Pine Tree Development Zone program, the process used by businesses to apply for certification as a Pine Tree Development Zone business and requirements that must be met to claim benefits available to a certified business.

§ 1 Definitions

As used in this rule, unless the context otherwise indicates, the following terms have the following meanings:

Affiliated Group. “Affiliated group” means a group of two or more legal entities or individuals in which more than 50% of the voting stock of each member corporation or more than 50% of the ownership interest in any non-corporate member is directly or indirectly owned by one or more common owner or owners, either corporate or non-corporate, or by one or more member legal entities or individuals. For purposes of this rule, ownership means actual ownership.

Base Level of Employment. Generally, "Base level of employment" means the greater of:

1. the total employment in the State of a business as of March 31st, June 30th, September 30th and December 31st of the calendar year immediately preceding the year of the business's application to become a certified Pine Tree Development Zone business divided by 4; or
2. the total employment in the State of a business as of March 31st, June 30th, September 30th and December 31st of the three calendar years immediately preceding the year in which the business applies for PTDZ certification divided by 12.

Adjustment for Significant Business Expansion. A qualified Pine Tree Development Zone business that has more than one location in the state and creates 250 or more net new jobs in one location may apply for an adjustment of the base level of employment if its total employment in the State is greater than 50% of the number of net new jobs created at the location of expansion and the business has appropriate infrastructure, zoning or other land use regulations as needed. If an adjustment is granted, the base level of employment will be determined on the basis of the location of the significant employment expansion only. The adjustment must be reviewed annually and is not available in any year in which the requirements are not met.

Transfer of Ownership. When there is a change of ownership of a certified business, the existing base level of employment will continue to apply to that business regardless of the number of employees located in this State of the acquiring owner, including any affiliated businesses. The base level of employment may be adjusted when there is a transfer of ownership if the Commissioner determines that:

there was a significant risk immediately prior to acquisition by the new owner that the certified business would cease operations due to financial or other hardship beyond the control of that business; or

the change in ownership is part of an effort to avoid “maintaining” the base employment level or any other PTDZ certification requirements.

Base of Operations. “Base of operations” means, for the purposes of a qualified PTDZ business, the place: (1) from which employees typically begin work, or to which employees regularly return to receive instructions, direction and supervision from the qualified business or communication from customers or other persons, to replenish stock or other materials, to repair equipment, or to perform any other function necessary to the exercise of the employee’s trade or profession, and (2) where tangible personal property is normally returned for repairs, supplies and storage when it is not in use.

Certified business. “Certified business” means a qualified PTDZ business that has received a letter of certification from the Department in accordance with 30-A M.R.S. §5250-O, and §6 of this rule.

Commissioner. “Commissioner” means the Commissioner of the Maine Department of Economic and Community Development, or the Commissioner’s designee.

Department. “Department” means the Maine Department of Economic and Community Development.

Dependent care benefits. When used within the context of “income derived from employment” as defined herein, “dependent care benefits” means dependent care expenses paid by the qualified business on behalf of a participating qualified employee for dependent care assistance offered as part of an employee benefit package.

Earnings. When used within the context of “income derived from employment” as defined herein, “earnings” means base pay paid by the qualified business, plus any overtime, incentives or commissions paid.

Education benefits. When used within the context of “income derived from employment” as defined herein, “education benefits” means education expenses paid by the qualified business on behalf of a participating qualified employee for education assistance offered as part of an employee benefit package.

Financial Services. “Financial services” means services provided by an insurance company subject to taxation under Title 36, chapter 357; a financial institution subject to taxation under Title 36, chapter 819; or a mutual fund service provider as defined in Title 36, section 5212, subsection 1, paragraph E.

Health and welfare benefits. When used within the context of “income derived from employment” as defined herein, “health and welfare benefits” means company-paid contributions to group insurance programs such as health insurance, medical insurance, dental insurance, vision insurance, life insurance, and long-term disability coverage.

Income derived from employment. “Income derived from employment” means the total value of company-paid benefits and compensation provided by a qualified business to a qualified employee, including earnings, education benefits, retirement benefits, health and welfare benefits, and dependent care benefits. For development projects where a business creates 250 or more jobs within a two-year period in a PTDZ, “income derived from employment” may include other company-paid benefits and company-offered benefits.

Qualified Business Activity. “Qualified business activity” means a business activity that is conducted within a PTDZ and is directly related to financial services, manufacturing or a targeted technology business for which the business receives a letter of certification from the Commissioner pursuant to 30-A M.R.S. §5250-O. Qualified business activity includes otherwise qualified business activity conducted inside and outside the zone through employees or property whose base of operations is in a PTDZ. Business activity directly related to manufacturing, for example, includes: the production areas, warehouses that receive raw material, administrative offices, quality control labs, maintenance shops, cafeterias for employees, warehouses that hold finished products prior to shipment, employee gyms and locker rooms, and research and development facilities.Business activity directly related to manufacturing does not include property and employees used in a retail facility, even if it were located in the same building where the manufacturing took place, or property used in the above facilities if the location of that property is not in a PTDZ.

Qualified Pine Tree Development Zone Business. “Qualified Pine Tree Development Zone business" or "qualified business" means any for-profit business in this State engaged in or that will engage in financial services, manufacturing or a targeted technology business that has added or will add at least one qualified PTDZ employee above its base level of employment in this State and that meets the additional criteria set forth in 30-A M.R.S. §5250-I (17).

Qualified Pine Tree Development Zone Employees. “Qualified Pine Tree Development Zone Employees” has the same meaning as defined in 30-A M.R.S. §5250-I. The term does not include employees shifted to a qualified business activity from a nonqualified activity of the qualified PTDZ business or an affiliated business. The term also does not include employees who primarily work remotely outside of a PTDZ, excepting temporary remote work within the State of Maine due to the effects of a state of emergency as designated by the Governor.

Retirement benefits. When used within the context of “income derived from employment” as defined herein, “retirement benefits” means company-paid contributions to a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 1001 to 1461, as amended.

Single Business Enterprise. Single Business Enterprise means, collectively, those members of an affiliated group engaged in segments or portions of a business activity which the Commissioner has determined would be Qualified Business Activity if conducted by a single business. Activities of a member of an affiliated group that are unrelated to the qualified business activity are not qualified business activities of a single business enterprise.

Tangible personal property. “Tangible personal property” has the same meaning as provided in Title 36, Part 3. Tangible personal property includes personal property that may be seen, weighed, measured, felt, touched or in any other manner perceived by the senses, but does not include rights and credits, insurance policies, bills of exchange, stocks and bonds and similar evidences of indebtedness or ownership. Tangible personal property also includes electricity and any computer software that is not a custom computer software program.

Targeted Technology Business. “Targeted technology business” means a business primarily involved in a targeted technology as defined in Title 5, section 15301, i.e. biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology.

Tier 1 Location. "Tier 1 Location" means a location so classified by the Department consistent with the requirements set forth in Title 30-A, section 5250-J, subsection 3-A. Tier 1 Locations include:

1. Any unit of local government that is contained in a county other than Cumberland County or York County, as well as a unit of local government that is contained in Cumberland County or York County with a municipal unemployment rate that is 15% higher than its labor market unemployment rate, based upon data published by the Maine Department of Labor from the last completed calendar year.
2. A unit of local government designated by the Department as a participating municipality in the PTDZ program prior to January 1, 2009.
3. Property within a military redevelopment zone classified by the Department as a PTDZ prior to January 1, 2019.
4. The town of Sanford.
5. The town of Berwick.

Tier 2 Location. "Tier 2 Location" means any unit of local government located in Cumberland County or York County that is not classified as a Tier 1 location. A business located in a Tier 2 Location will not be certified after December 31, 2013.

§ 2 Certification of Qualified PTDZ Businesses

Summary: This section establishes the certification process and establishes requirements for applications for certification as a qualified PTDZ business pursuant to 30-A M.R.S. §5250(O).

1. Eligibility

In general, to be certified, a business must be engaged in a qualified business activity as defined above and must intend to hire at least one qualified employee above its base level of employment to work directly in one or more qualified business activities. A business establishing or expanding operations in a PTDZ must be certified by the Commissioner as a Qualified PTDZ business prior to applying for, or receiving PTDZ benefits through any agency or other source.

2. Application Requirements

A business seeking certification shall submit for the Commissioner’s review one original, signed application that satisfies the requirements of this section. The application must be received by December 31^st of the calendar year for which approval is sought. Certification under this section fulfills the application requirements for, and approval of, Employment Tax Increment Financing (ETIF) benefits for the business under 36 M.R.S. Chapter 917.

A business applying for certification as a qualified PTDZ business must submit a signed, notarized statement describing the basis under which it has determined that the proposed business establishment or expansion would not go forward absent the benefits provided by the PTDZ program. The statement must be included within the text of the But For letter submitted in advance of filing the application for certification, or it may be included with the application. In no case, will an application for PTDZ certification be reviewed absent the required notarized statement.

An application for certification as a qualified PTDZ business shall contain the following information for the applicant business, as well as certain base level information for any affiliated business within the state:

Descriptive data for the proposed development project, including a summary of the qualified business activity, and:

(1) A description of the existing business in Maine, its products and/or services and history of operation;

(2) A description of the qualified business operations or activities that will be conducted within the PTDZ, a description of the non-qualified business activities, if any, that will be conducted within the PTDZ, and a description of the employees, positions, and property, if any, that will be transferred from an affiliate or a non-qualified business activity to a qualified business activity;

(3) A description of the market(s) and/or competitive environment in which the business operates or expects to operate; and

(4) A description of the business operations that will be established or expanded, including employment expansion and investment plans, for the qualified business within a PTDZ within the two-year period beginning on the date of certification, including:

1. Real property to be constructed or modified and its cost;
2. Tangible personal property to be purchased and its estimated cost;
3. Employee training required;
4. Qualified employees to be hired, and their annual payroll and ETIF reimbursement estimates; and

e. Any other employees to be hired, and their estimated annual payroll;

Base level data for the applicant business:

(1) Complete employment/payroll data, including the total number of employees at the end of each calendar quarter for the three calendar years immediately preceding the year of application;

(2) Total payroll of the business within the state for each of the three calendar years preceding its application;

(3) Total Maine state income taxes withheld for employees of the business for each of the three calendar years preceding its application;

(4) All company locations in Maine, including street and municipality;

C. If not previously submitted, a signed, notarized statement describing the basis under which the applicant has determined that the proposed business establishment or expansion would not go forward absent the benefits provided by the PTDZ program; and

D. Written attestation that qualified employees employed, or to be employed, at the location for which the business received its PTDZ certification will be:

(1) Paid an income derived from employment that, when calculated on a calendar year basis, exceeds the annual per capita personal income in the county in which employed;

(2) Offered participation in a retirement program subject to the Employee Retirement Income Security Act of 1974 , 29 U.S.C. §§ 1001 – 1461; and

(3) Offered participation in a group health insurance plan;

Base level data for any affiliated business or group, including:

(1) Name and location of affiliate business or group; and

(2) Total employment at year end, annual payroll and related income tax withholdings of affiliate business or group.

F. Applications must be signed by an authorized official of the applicant business certifying that the applicant will not seek PTDZ tax benefits for any existing property, employees or positions transferred to the qualified PTDZ business activity described on the letter of certification from an affiliate business or from any nonqualified activity.

Any other information as determined necessary by the Department.

3. Review by Commissioner

Applications for certification of qualified PTDZ businesses will be reviewed and acted upon by the Commissioner, subject to the following provisions:

• • 1. Information contained within completed applications must be current as of the application date; 2. Prior to issuing a letter of certification, the Commissioner must determine that:

(1) The application is complete;

(2) The business is a for-profit business engaged, or to be engaged, in financial services, manufacturing or targeted technology qualified business activities within a PTDZ, as each such business category is defined in 30-A M.R.S. §5250-I;

(3) The business has added, or will add one or more qualified employees above its base level of employment; and

(4) The business establishment or expansion would not go forward but for the benefits available within the PTDZ Program.

(5) The business activity will not result in a substantial detriment to existing businesses in the State.

D. The Commissioner will make the final determination whether an affiliated group constitutes a single business enterprise.

E. Upon review of the application, the Commissioner will either certify the business or deny the request as follows:

(1) Issue a letter of certification to the applicant business that includes: the determination that the business is a qualified PTDZ business, the base level of employment, a description of the qualified business establishment or expansion activities to be undertaken by the business and eligible for support from the PTDZ benefits, the location of such activity, and notice that the term of participation in program benefits may not exceed ten years; and

(2) Issue a Certificate of Qualification to the certified PTDZ business upon verification that at least one qualified net new employee has been added above the base level of employment; or

(3) Notify the applicant that the business cannot be certified as a qualified PTDZ business, including a brief explanation for such determination. An applicant may request, within 10 days of the date of receipt of the notice, that the Commissioner reconsider the decision to deny certification.

§ 3 Pine Tree Development Zone Tax Benefits; tier classifications; application of Anti-Shifting Provisions

Summary: This section explains the tax benefits available to certified businesses, and sets forth guidelines to ensure that PTDZ tax benefits are not provided for the transfer of property, employees or positions.

1. Tax Benefits Generally

When a business is certified as a qualified PTDZ business, the tax benefits described in 30-A M.R.S. §5250-I (14) become effective and available to that business at the certified location as of the earliest date permitted by the applicable tax program statute. Generally, Maine income tax, franchise tax, and insurance premiums tax credits are available in the year in which the business commences qualified business activity, i.e. first implements its approved development program by placing property in service in an activity identified in the letter of certification or hiring employees; sales and use tax exemptions and reimbursements are available to certified businesses after the business hires at least one net new employee above its base level of employment and receives a certificate of qualification from the Commissioner; and employment tax increment financing is available in the calendar year that the business hires at least five net new employees as required under Title 36, Chapter 917.

PTDZ tax benefits are available to all businesses certified by the Commissioner, regardless of their form of ownership (subchapter “C” or “S” corporations, pass-through entity, or sole proprietorship).

PTDZ tax benefits are available only if the certified business hires at least one qualified employee above its base level of employment within the first two calendar years of certification. Upon written request, the Commissioner may grant an extension of up to 12 months to the two-year hiring period. An extension request must include information sufficient to establish to the satisfaction of the Commissioner that the hiring requirement was not met within the required period due to unforeseeable circumstances which were beyond the control of the business. If a certified business fails to hire one qualified employee above its base level within the required period, including any extension, the letter of certification will be terminated.

A certified business must maintain at least one qualified employee above its base level of employment beginning on the date that the first qualified employee was added. If a certified business fails to maintain one qualified employee above its base employment level, it must notify the Commissioner within 30 days of the lapse in employment level and the date the lapse began. The certified business has up to 60 days from the date it first failed to maintain one qualified employee above its base employment level to regain a net new qualified employee, after which the letter of certification and certificate of qualification will be terminated. Upon written request, the Commissioner may allow a reasonable amount of additional time for a certified business to return to its required level of employment. A request for additional time must identify why the required employment level was not maintained and must include information sufficient to establish to the satisfaction of the Commissioner that the required employment level could not be met within the 60-day period due to unforeseeable circumstances which are beyond the control of the business. A certified business who fails to maintain one qualified employee above its base employment level due to the effects of a state of emergency as designated by the Governor will be granted a waiver to return to its required employment level by the end of the next reported calendar year without the need for specific written request by the business. Affected businesses may be granted an additional one-year extension if the state of emergency spans multiple calendar years or upon written request as described in this subsection.

A business that is terminated must return any PTDZ benefits received based on business activity occurring after the date it failed to maintain one qualified employee above its base level.

2. PTDZ Benefit Limitations

The following limitations will be applied to ensure that PTDZ tax benefits provided to a business are based only on net new jobs and investments in property:

(1) Income Tax/Insurance Premiums Tax Credits. In the case of businesses that engage in both qualified and non-qualified business activities in this State, the tax credit is limited only to that portion attributable to the qualified business activity described in the letter of certification. The limitation is calculated by an apportionment fraction, the numerator of which is the property value plus the payroll for the taxable year which is attributed to the qualified business activity of the business and denominator of which is the statewide property value plus the payroll for the taxable year. See 36 MRSA sections 2529 and 5219-W.

The numerator of the apportionment fraction may not include property, employees and positions transferred from a non-qualifying activity or from an affiliated business. This ensures that the dollar values used to gauge the level of qualified business activity are determined by net new investment in the zone. Therefore, transferred employees and positions may not be reflected in the numerator of the payroll portion of the apportionment fraction, and the value of transferred property may not be reflected in the property portion of the apportionment fraction. The value of property that has been transferred physically to the zone may not be included in the numerator of the apportionment fraction. The value of property that has been sold or otherwise disposed of as part of the development project must be subtracted from the value of the property investments in the zone to determine the net new property value.

(2) Sales Tax Exemptions and Reimbursements. The sales tax exemption/ reimbursement is allowed only for sales of tangible personal property directly and primarily related to the qualified business activity described in the letter of certification. See 36 M.R.S. sections 1760(87) and 2016. Adjustments may be necessary with respect to certain purchases, such as bulk purchases, to determine the portion of the purchase that qualifies for the PTDZ sales tax exemption or related refund. Such adjustments must be made consistent with guidance issued by the Maine Bureau of Revenue Services.

(3) Employment Tax Increment Financing (ETIF). In the case of businesses that engage in both qualified and non-qualified business activities in this State, the ETIF reimbursement is limited to those employees attributable to the qualified business activity described in the letter of certification. See 36 M.R.S. sections 6751-6761. For a discussion of ETIF qualification requirements and limitations, see Me. Dep’t of Economic and Community Development 19-100 C.M.R. 400.

§ 4 Annual Reporting Requirements

Summary: This section establishes the reporting requirements for certified businesses conducting business activities within Pine Tree Development Zones.

For calendar years beginning on or after January 1, 2019, all certified PTDZ businesses must file an annual report with the Department by March 15^th of the following year that provides the following information:

The total number of Maine employees and total salary and wages for those employees for the report year;

The total number of qualified PTDZ employees and total salary and wages for those employees for the report year;

The number of qualified PTDZ employees hired within the report year;

The amount of investments made during the report year at the qualified PTDZ business location or directly related to the qualified business activity; and

In aggregate, the estimated or total value of PTDZ benefits received or claimed in the report year.

A certified business that fails to file the required annual report by the March 15^th deadline, or submits an annual report and fails to meet program requirements, will be terminated from the program effective December 31^st of the calendar year for which the reporting was required.

1. Certified Business Information Required

A certified PTDZ business shall submit information requested by the Department as part of the annual comprehensive economic development evaluation as defined by PL 2009 Chapter 337.

§ 5 Termination

All PTDZ benefits are terminated on December 31, 2031.

History

• STATUTORY AUTHORITY: 30-A M.R.S. §5250-J and §5250-M
• EFFECTIVE DATE: February 4, 2004 - filing 2004-43
• AMENDED: November 19, 2005 – filing 2005-470
• AMENDED: February 10, 2010 – filing 2010-26
• AMENDED: June 17, 2019 - filing 2019-097
• AMENDED: January 13, 2020 – filing 2020-008
• AMENDED: October 4, 2021 – filing 2021-195
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 300 Dirigo Business Incentives Program

Code Me. R. 19-100 Ch. 300 Dirigo Business Incentives Program {#sec-19-100-ch.-300 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 300}

Summary: The Dirigo Business Incentives Program is established by the Legislature in PL 2023, Chapter 412, Part J. The Department of Economic and Community Development and the Bureau of Revenue Services administer the program. This rule establishes criteria to determine eligibility for the Dirigo Business Incentives program and the process used by businesses to apply for certification as a Dirigo Business Incentives business.

§ 1 – Definitions

Terms used in this rule have the same meaning as defined in 36 M.R.S. §5219-AAA. This section also adds additional clarification to certain terms.

As used in this rule, the following terms have the following meanings:

"Commissioner" means the Commissioner of Economic and Community Development.

"Department" means the Department of Economic and Community Development.

“Eligible sector” means any one of the following industries identified and described by the corresponding code (in parentheses below) contained in the 2022 North American Industry Classification System (NAICS) issued by the United States Office of Management and Budget:

(1) Agriculture, forestry and fishing (1111 through 1141; 1151 through 1153);

(2) Manufacturing (31-33);

(3) Long-distance freight transportation (481112, 481212, 482, 483111, 483113, 483211, 48412, 48423, 48819, 4882, 4883, 4885);

(4) Software publishing (5132), data processing (518) and computer design services (5415); or

(5) Engineering (5413), architecture (5413) and scientific research and development services (5417).

Construction versus manufacturing. In general, on-site construction and assembly of an asset is considered part of the construction industry and is not an eligible sector, while the off-site production of an asset may be considered manufacturing and is an eligible sector. For example, the on-site construction of “stick-built” residential housing is not an eligible sector, but the production of manufactured housing at a central facility is an eligible sector. Similarly, the on-site construction of a power generation structure would be classified as construction while the off-site assembly and preparation of the structure components may be classified as manufacturing. For example, the assembly and preparation of an offshore wind turbine at an onshore facility would be classified as manufacturing while the final installation and ongoing operation activities would be classified as construction and electric power generation, respectively.

Local and long-distance trucking. NAICS defines “long-distance” trucking transportation establishments as those that carry goods between metropolitan areas. Local trucking establishments are those that primarily carry goods within a single metropolitan area and its adjacent nonurban areas and are not considered an eligible sector for Dirigo Business Incentives.

“Qualified business activity” means a business activity carried on primarily in an eligible sector. When determining whether an activity is carried on primarily in an eligible sector, the Department will refer to the production or service description for the relevant industry code contained in the 2022 NAICS. For example, a qualified business activity for a logging operation (NAICS code 113310) would relate to “one or more of the following: (1) cutting timber; (2) cutting and transporting timber; and (3) producing wood chips in the field.” The qualified business activity described in the letter of certification may be more specific or limited, such as “cutting timber,” or combined with other qualified business activities, such as “cutting and transporting timber and operating a sawmill.”

The entirety of spaces, property, and functions of the business will be considered in determining whether the business is engaged in one or more qualified business activities. Supporting activities that on their own would not be considered qualified business activities would nonetheless be considered as such if conducted exclusively in direct support of the business’s core qualified business activity. For example, the activities of a life sciences research operation that might be considered supporting components of a qualified business activity include those associated with lab and production areas, warehouses that receive raw material, administrative offices, quality control labs, cafeterias for employees, warehouses that hold products prior to shipment, and employee gyms and locker rooms.

A business may seek a new or revised letter of certification for any additional qualified business activity not included in the original or previous application for certification. For example, a business that receives a letter of certification establishing a qualified business activity as a precision machining operation may not claim a credit for purchasing forestry equipment, as that property is not related to the qualified business activity described in the original letter of certification issued to the business. However, the business may request that the Department amend the letter of certification to include the additional qualified business activity.

§ 2 – Certification of Qualified Dirigo Businesses

Eligibility

To be certified as a qualified business, a business must be a for-profit business in this State engaged in an eligible sector, or in the case of a new business to the State, will be engaged in an eligible sector when their business activity begins. The business must intend to place eligible business property into service or begin training as part of a qualified worker training program within two years of filing their application for certification. Capital investment or worker training begun prior to the issuance of a letter of certification from the Commissioner will not be eligible for the credit under 36 M.R.S. §5219-AAA(4).

Application requirements

A business seeking certification shall electronically submit for the Commissioner’s review one original, signed application containing the following information:

Information on the business’s activity:

1. A description of the qualified business activity in which the business will be engaged.
2. The addresses of business operations in Maine, including planned new locations, that will be the site of qualified business activities for the Dirigo program. If the business has identified a new location but not yet closed the sale or finalized a lease for the property at the time of application, they may choose to list only the municipality or county instead of the full address of that location.
3. The eligible sector or sectors within which the business will perform its qualified business activity.

Information on the business’s investment, training, and overall expansion plans:

1. The timeframe of the project(s) the business is undertaking for which it is applying for certification.
2. The dollar amount, per year and in total, planned to be expended on the project that is expected to constitute eligible capital investment, as well as any additional project investment that is not expected to be eligible for the credit allowed under 36 M.R.S. §5219-AAA(4);
3. Confirmation that the business has reviewed and understands the limitations on eligible business property as described in 36 M.R.S. §5219-AAA.
4. A list of any planned qualified training programs, including: 1. The number of workers per year planned to be trained by the qualified training program; 2. A description of the type(s) of training provided, including the number of training hours per worker; and 3. A list of the training provider(s) the business intends to use. This may be the specific organization if known at the time of application and/or the category of qualified program as listed in 36 M.R.S. §5219-AAA(1)(P).

Confirmation that the business meets all eligibility criteria, including that the business:

1. Is a for profit business operating or planning to begin operations in Maine;
2. Is not a public utility as defined by 35‑A M.R.S. §102(13);
3. Is not currently certified under the Pine Tree Development Zone or Employment Tax Increment Financing programs;
4. Is not currently certified to receive one of the tax credits allowed under 36 M.R.S. §§ 5219-RR or 5219-YY; and
5. Has not undergone a layoff in the past two tax years as defined in 36 M.R.S. §§ 5219-AAA(1)(I). The Department may request the business to provide documentation to support this requirement, including, but not limited to, employment numbers as submitted on Line 1 of state quarterly wage reports (Form ME UC-1 or equivalent).

General information about the business, including:

1. Preferred contact information;
2. Information to correctly identify the taxpayer entity, including taxpayer identification number and business structure (e.g., LLC, C-Corp, S-Corp, sole proprietorship);
3. Number of employees in Maine at the time of application;
4. The name, relationship, and shared ownership percentage of any affiliated businesses operating in Maine.

Any other information the Department may reasonably require.

The information contained in a business’s application is confidential to the extent provided by 36 M.R.S. §191(2)(SSS).

Applications may be submitted beginning July 1, 2024.

Letter of Certification

The Commissioner will review and act upon submitted applications for Dirigo Business Incentive certification. Before issuing a letter of certification for a business, the Commissioner will determine that the application is complete, the applicant meets the criteria to be a qualified business engaged in (or will be engaged in) a qualified business activity, and the applicant will engage in eligible capital investment or a qualified worker training program in service of the qualified business activity.

If all criteria have been met, the Commissioner will issue a letter of certification to the qualified business stating:

The name of the certified entity, including any affiliated businesses that will be engaged in the qualified business activity.

The qualified business activity, including:

1. A written description of the qualified business activity;
2. The eligible sectors within which the business will perform its qualified business activity; and
3. The planned location(s) of the qualified business activity.

The effective date and expiration date of the letter of certification.

The eligibility requirements for remaining a qualified business and receiving any tax benefits allowed under section 36 M.R.S. §5219-AAA.

The letter of certification will be valid for five years beginning with the date it is issued. For example, a letter of certification issued on February 1, 2025, will be valid until February 1, 2030. Letters of certification issued between July 1, 2024, and December 31, 2024, will have an effective start date of January 1, 2025, and an end date of January 1, 2030.

If an application does not meet the criteria to receive a letter of certification, the Commissioner will issue a provisional denial to the applicant with an explanation of the criteria not met. A business may file an appeal with the Department within 30 days of receiving the provisional denial if they believe the denial was issued in error. The appeal must include a response to the explanation included in the provisional denial. The Commissioner will review the appeal and original application and issue either a letter of certification or a final denial.

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History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112 & 5219-AAA
• EFFECTIVE DATE: March 20, 2024 – filing 2024-071

Chapter 301 Dirigo Business Incentives Tax Credit

Code Me. R. 19-100 Ch. 301 Dirigo Business Incentives Tax Credit {#sec-19-100-ch.-301 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 301}

SUMMARY: This joint rule is coordinated with the Department of Economic and Community Development (“DECD”) and Maine Revenue Services (“MRS”) Joint Rule 300/815 (Dirigo Business Incentives Program) and explains in further detail the Maine Dirigo Business Incentives Tax Credit (“DTC”) established by 36 M.R.S. § 5219-AAA.

Outline of Contents:

.01 Definitions

.02 Taxpayers eligible for the DTC

.03 Credit allowed

.04 Credit limitation, refundability, carryover

.05 Recapture and disallowance of the DTC

.06 Information required when claiming the DTC

.07 Application

.01 Definitions. The following terms have the following meanings:

Affiliated business. “Affiliated business,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(A), means a member of a group of 2 or more businesses in which more than 50% of the voting stock of each member corporation or more than 50% of the ownership interest in a business other than a corporation is directly or indirectly owned by a common owner, either corporate or noncorporate.

Beneficiary’s pro rata share of tax credits. “Beneficiary’s pro rata share of tax credits” means the beneficiary’s share of federal distributable net income of the estate or trust. If the estate or trust has no federal distributable net income for the taxable year, the beneficiary’s pro rata share of tax credits is equal to the proportion of that beneficiary’s share of the estate or trust income for that year, under local law or the terms of the instrument, which is required to be distributed currently, and any other amounts of income distributed in that year.

Catastrophic event. “Catastrophic event,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(B), means a fire, flood, hurricane, windstorm, earthquake or other similar event or a declared state disaster or emergency within the meaning of 10 M.R.S. § 9902(1) that is not within the control of a business to prevent.

Code. “Code” has the same meaning given that term by 36 M.R.S. § 111(1-A).

Eligible business property. “Eligible business property” means, as provided by 36 M.R.S. §§ 5219-AAA(1)(E) and (8), business property of the qualified business that is:

Tangible personal property or real property (other than land)

Purchased on or after the date of the letter of certification issued by the DECD;

Placed in service in Maine during the taxable year beginning after December 31, 2024;

Used exclusively in the qualified business activity described in the letter of certification; and

Subject to an allowance of depreciation of 5 years or more, or would be subject to an allowance of depreciation of 5 years or more if the property had not been expensed under Section 179 of the Code.

Eligible business property does not include:

Property purchased or transferred from an affiliated business;

Property located at a retail sales facility and used primarily in a retail sales activity;

A vehicle upon which an excise tax under 36 M.R.S., chapter 111 has been imposed;

A watercraft upon which an excise tax under 36 M.R.S., chapter 112 has been imposed;

Property used to calculate the credit for rehabilitation of historic properties under 36 M.R.S. § 5219-BB; or

Real property placed in service in Maine prior to the taxable year for which the DTC under 36 M.R.S. § 5219-AAA is sought.

Eligible capital investment. “Eligible capital investment,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(F), means the total of business expenditures that exceed $50,000 incurred by the taxpayer after receiving a letter of certification to purchase eligible business property that was placed into service during the tax year. For example, the eligible capital investment may occur in a year that is different than the year during which the eligible business property is placed in service; however, the credit may only be claimed in the year during which the eligible business property is placed in service.

Lease payments for the use of property do not qualify as an expenditure for the purchase of eligible capital investment.

Eligible sector. “Eligible sector,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(G), means one of the following industries only:

1. Agriculture, forestry and fishing;

2. Manufacturing;

3. Long-distance freight transportation;

4. Software publishing, data processing and computer design services; or

5. Engineering, architecture and scientific research and development services.

Exclusively. “Exclusively” means 100% use.

“Four quarters. “Four quarters” means the 364 consecutive-day period (365 consecutive-day period in the case of a leap year) that ends on the date immediately preceding the date the layoff occurs. Each quarter during the four-quarter period consists of 91 days (92 days for any quarter during a leap year that includes February).

Layoff. “Layoff,” J. Layoff. “Layoff” has the same definition as in 36 M.R.S. § 5219-AAA(1)(I).

The percentage of employment loss must be determined based on the number of employees employed by the taxpayer on the date immediately preceding the date that the reduction in workforce commences. Vacant positions must be excluded when determining the number of employees employed. If a reduction in workforce is phased-in over time, the percentage must be calculated each day that a reduction occurs to establish the date on which the 20% threshold has been reached.

Letter of certification. “Letter of certification” means the letter issued by the DECD in accordance with 36 M.R.S. § 5219-AAA(3) and Joint Rule 300/815 that certifies that the business is a qualified business and that describes the qualified business activity of the qualified business.

Placed in service. “Placed in service” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(J), means the date the property is placed in service for purposes of depreciation under Sections 167 or 168 of the Code or would be eligible for depreciation if the property had not been expensed under Section 179 of the Code.

Primarily. “Primarily,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(K), means more than 50% of the time and, with respect to a building or other structure, more than 50% of the usable space.

Pro rata share of the partner or shareholder. “Pro rata share of the partner or shareholder” means, in the case of a partner in a partnership, the partner’s percentage interest in the taxable income or loss of the partnership for federal income tax purposes for the taxable year or, in the case of a shareholder in an S corporation, the shareholder’s percentage share of stock of the S corporation as of the end of the taxable year.

Property used exclusively in the qualified business activity. “Property used exclusively in the qualified business activity” means eligible business property that is used for no activity other than the qualified business activity described in the letter of certification, including property used in direct support of the qualified business activity described in the letter of certification. For example, property purchased and placed in service in Maine during the taxable year by the qualified business in administrative offices, warehouses, production facilities, quality control facilities, cafeterias, employee gyms and locker rooms, and other facilities used exclusively in support of the qualified business activity described in the letter of certification would be considered property used exclusively in the qualified business activity as long as the property also meets the criteria contained in the definition of eligible business property.

Qualified business. “Qualified business,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(M), means a for-profit business in Maine engaged in an eligible sector that has received a letter of certification as a qualified business.

Qualified business activity. “Qualified business activity,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(N), means a business activity carried on primarily in an eligible sector.

Qualified employee. “Qualified employee,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(O), means an employee who is employed in Maine by a qualified business and works primarily in a qualified business activity in Maine.

Qualified employee training program. “Qualified employee training program," which has the same definition as in 36 M.R.S. § 5219-AAA(1)(P), means a qualified business’s training activities for a qualified business activity described in a letter of certification issued by the DECD for a minimum of three qualified employees that provide a minimum of 20 total training hours for each qualified employee and are:

An apprenticeship program registered under the Maine Apprenticeship Program pursuant to 26 M.R.S., chapter 37;

An on-the-job training contract pursuant to 26 M.R.S. § 2172;

A training provided by or approved funding from the Maine Community College System; or

Education or training provided by the University of Maine System or other accredited university or college in Maine;

“Qualified employee training program” includes only training hours during which the qualified business pays a participating qualified employee the employee’s regular hourly rate or training hours for which the qualified business pays more than $2,000 per participant.

Regular hourly rate. “Regular hourly rate” means, for purposes of a qualified employee training program, the hourly rate of compensation applicable to the employee immediately prior to the employee commencing a qualified employee training program or, if employment commences on the same date as the training program, the hourly rate of compensation that is, or would otherwise be, applicable on the first date of employment. “Regular hourly rate” does not include any additional or premium rate of compensation, such as an additional rate of compensation applicable to overtime.

Removed from service. “Removed from service” means, with respect to eligible capital investment property, property no longer used exclusively in the qualified business activity described in the letter of certification. Examples of property removed from service include, but are not limited to, the sale of the property, moving the property to a location outside Maine, repurposing the property for use in an activity other than a qualified business activity, and discontinuing use of the property. “Removed from service” does not include temporarily discontinuing use of the property for maintenance or repair or as a result of a catastrophic event.

Taxable corporation. “Taxable corporation,” which has the same definition as in 36 M.R.S. § 5102(10), means, for any taxable year, a corporation that has nexus with Maine pursuant to 36 M.R.S. § 5200‑B, including any corporation with income subject to federal tax under the Code, Section 1374 or 1375, and that has, at any time during that taxable year, realized Maine net income.

Two consecutive months. “Two consecutive months” means, for purposes of determining a layoff, any consecutive 60-day period that occurs during the taxable year of the taxpayer.

Unitary business. “Unitary business,” which has the same definition in 36 M.R.S. § 5102(10-A), means a business activity which is characterized by unity of ownership, functional integration, centralization of management, and economies of scale.

.02 Taxpayers eligible for the DTC. A taxpayer eligible for the DTC is a taxpayer that:

Received a letter of certification; and

Made and/or had:

1. the required eligible capital investment to purchase eligible business property that was placed in service in Maine during the taxable year;
2. qualified employees that completed a qualified employee training program during the taxable year.

.03 Credit allowed. Subject to sections .04 and .05 below, the amount of DTC allowed is equal to the total of subsections A and B of this section.

Eligible capital investment portion of the credit. The eligible capital investment portion of the credit is equal to the total of the following:

1. Ten percent of the eligible capital investment placed in service in Maine during the taxable year by the qualified business outside of Cumberland, Sagadahoc, and York counties; and
2. Five percent of the eligible capital investment placed in service in Maine during the taxable year by the qualified business in Cumberland, Sagadahoc, and York counties.

Training portion of the credit. The training portion of the credit is equal to $2,000 for each new or existing qualified employee who completed a qualified employee training program during the tax year. The training must commence on or after the date the letter of certification is issued.

Zero credit amount. Notwithstanding subsections A and B of this section, the DTC for a taxable year is zero if all of the eligible capital investment property forming the basis of the credit for the taxable year under subsection A of this section is removed from service during the same taxable year in which the property was placed in service. This paragraph does not apply if the property was removed from service temporarily for maintenance or repair or as a result of a catastrophic event.

.04 Credit limitation, refundability, carryover

Credit Limitation. Except as provided by paragraphs 1 through 4 of this subsection, the total credit allowed under section .03 above that may be claimed by the taxpayer in any one taxable year, including the refundable amount determined in accordance with subsection B of this section and the amount of the credit carried over to the taxable year from a prior taxable year determined in accordance with subsection C of this section, is limited to $2,000,000.

1. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation, the credit may not exceed $2,000,000 multiplied by the pro rata share of the partner or shareholder.
2. In the case of a taxpayer that is a beneficiary of an estate or trust that is a partner in a partnership or shareholder in an S corporation, the credit may not exceed $2,000,000 multiplied by the pro rata share of the partner or shareholder, the result of which is multiplied by each beneficiary’s pro rata share of tax credits.
3. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation that is an affiliated business, the credit may not exceed $2,000,000 multiplied by the pro rata share of the partner or shareholder, the result of which is multiplied by a ratio, the numerator of which is the eligible capital investment of the affiliated business during the taxable year plus $2,000 for each qualified employee of the affiliated business engaged in a qualified employee training program completed during the taxable year and the denominator of which is the total eligible capital investment of all members of the affiliated business group during the taxable year plus $2,000 for each qualified employee of all members of the affiliated business group engaged in a qualified employee training program completed during the taxable year.
4. In the case of corporations that are members of an affiliated business group engaged in a unitary business, the credit may not exceed $2,000,000 for the entire group. The credit limit of $2,000,000 must be apportioned among the taxable corporations in the affiliated business group in the same proportion that the tax liability of each taxable corporation in the affiliated business group bears to the total tax liability of all the taxable corporations in the affiliated business group.

Refundability. Except as provided by paragraphs 1 through 4 of this subsection, the credit for the taxable year determined in accordance with section .03 above is refundable up to $500,000.

1. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation, the credit is refundable up to an amount equal to $500,000 multiplied by the pro rata share of the partner or shareholder.
2. In the case of a taxpayer that is a beneficiary of an estate or trust that is a partner in a partnership or shareholder in an S corporation, the credit is refundable up to an amount equal to the amount determined in accordance with paragraph 1 for the estate or trust multiplied by each beneficiary’s pro rata share of tax credits.
3. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation that is an affiliated business, the credit is refundable up to an amount equal to $500,000 multiplied by the pro rata share of the partner or shareholder, the result of which is multiplied by a ratio, the numerator of which is the eligible capital investment of the affiliated business during the taxable year plus $2,000 for each qualified employee of the affiliated business engaged in a qualified employee training program completed during the taxable year and the denominator of which is the total eligible capital investment of all members of the affiliated business group during the taxable year plus $2,000 for each qualified employee of all members of the affiliated business group engaged in a qualified employee training program completed during the taxable year.
4. In the case of corporations that are members of an affiliated business group engaged in a unitary business, the credit under this section is refundable up to $500,000 for the entire group. The credit limit of $500,000 must be apportioned among the taxable corporations in the affiliated business group in the same proportion that the tax liability of each taxable corporation in the affiliated business group bears to the total tax liability of all the taxable corporations in the affiliated business group.

Carryover. Any credit allowed under section .03 above for the taxable year that is unused may be carried over, as reduced from year to year, to the next succeeding 4 taxable years, except as otherwise limited under section .05(B) below.

.05 Recapture and disallowance of the DTC

Recapture. The DTC claimed by the qualified business for a taxable year under section .03 above is subject to recapture as follows:

1. Incidence of recapture. The DTC for any taxable year is subject to recapture if any portion of the eligible capital investment property forming the basis of the credit is removed from service in Maine prior to the 5th anniversary of the date the property was placed in service in Maine by the qualified business. Recapture of the DTC applies to the taxable year during which the property is removed from service.
2. Amount of recapture. The amount of the recapture under paragraph 1 of this subsection is equal to the result of the following: 1. The total credit claimed by the taxpayer under section .03 above (as limited by section .04(A) above) for the taxable year during which the property was placed in service in Maine multiplied by a fraction, the numerator of which is the amount of the eligible capital investment of the property removed from service and the denominator of which is the total amount of eligible capital investment for the taxable year during which the property was placed in service in Maine, multiplied by subparagraph b. 2. A fraction, the numerator of which is the number of years remaining in the five-year period beginning with the date the property that was removed from service was placed in service in Maine, rounded up to the next whole number, and the denominator of which is 5.
3. Reporting and paying the recapture amount. The amount of recapture determined under paragraph 2 of this subsection must be reported as an additional tax amount on, and the recapture amount paid with, the taxpayer’s Maine income tax return for the taxable year during which the property is removed from service.
4. Recapture not applicable. There is no recapture of the employee training portion of the credit allowed under section .03(B) above unless there is also a recapture of the eligible capital investment portion of the credit claimed for the same taxable year that the taxpayer claimed the employee training portion of the credit.

Disallowance

1. Incidence of disallowance. Unused credit carryover amounts determined under section .04(C) above are subject to disallowance if: 1. Any portion of the eligible capital investment property forming the basis of the credit is removed from service prior to the fifth anniversary of the date the property was placed in service in Maine by the qualified business; or 2. A layoff has occurred during the taxable year.
2. Amount of disallowance. The amount of the disallowance is determined as provided by this paragraph. 1. In the case of subparagraph a of paragraph 1 of this subsection, the disallowance is equal to the total credit claimed under section .03 above (as limited by section .04(A) above) for the taxable year during which the property was placed in service in Maine: 1. Multiplied by a fraction, the numerator of which is the amount of the eligible capital investment of the property removed from service and the denominator of which is the total amount of eligible capital investment for the taxable year during which the property was placed in service in Maine, multiplied by subparagraph ii below. 2. A fraction, the numerator of which is the number of years remaining in the five-year period beginning with the date the property was placed in service in Maine, rounded up to the next whole number, and the denominator of which is 5. 2. In the case of subparagraph b of paragraph 1 of this subsection, the total of the unused carryover amounts determined under section .04(C) above with respect to all taxable years prior to the year of the layoff.

.06 Information required when claiming the DTC. In addition to any other information, the State Tax Assessor may require the following information to be provided by the taxpayer claiming the DTC:

The name, municipality in Maine in which the qualified business’s primary place of business is located, and business type, including the parent company, if applicable, of the qualified business;

The number of qualified employees engaged in a qualified employee training program completed during the taxable year;

The value of eligible capital investment expenditures by county of eligible capital investment property placed in service in Maine during the taxable year;

The credit claimed with respect to each of the following categories:

1. Eligible capital investment property placed in service in Maine during the taxable year in Cumberland, Sagadahoc, and York counties;
2. Eligible capital investment property placed in service in Maine during the taxable year outside of Cumberland, Sagadahoc, and York counties;
3. Qualified employees completing a qualified employee training program during the taxable year;

The eligible sector of the qualified business as identified in the letter of certification.

.07 Application.

This Rule applies to taxable years beginning on or after January 1, 2025.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112 & 5219-AAA(9)
• APAO ACCESSIBILITY CHECK: July 25, 2025
• EFFECTIVE DATE: July 30, 2025 – filing 2025-155

Chapter 400 Employment Tax Increment Financing

Code Me. R. 19-100 Ch. 400 Employment Tax Increment Financing {#sec-19-100-ch.-400 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 400}

SUMMARY: This chapter outlines the procedures and standards governing the Commissioner’s review of applications under the Employment Tax Increment Financing Program, the calculation of the employment tax increment, annual reporting requirements and program administration.

SECTION 1. PURPOSE AND DEFINITIONS

A. PURPOSE

The Employment Tax Increment Financing program is designed to encourage the creation of net new quality jobs in this State, improve and broaden the tax base and improve the general economy of the State. Consistent with the Maine Employment Tax Increment Financing Act , 36 M.R.S.A. §§ 6751-6762, this chapter sets forth the provisions by which a business may utilize this program, and describes application requirements, state review procedures, state designation procedures, the calculation of employment tax increment, annual reporting requirements, and program administration.

B. DEFINITIONS

Definitions of many of the terms used in this rule are contained in 36 M.R.S.A. §6753. This section also defines certain terms that are used in this rule but that are not defined by Title 36, Chapter 917.

As used in this rule, unless the context otherwise indicates, the following terms have the following meanings:

Act. “Act” means the Maine Employment Tax Increment Financing Act , 36 M.R.S.A. §§ 6751-6762.

Benefit base. “Benefit base” means the total incremental gross wages paid during the calendar year by a qualified business to qualified employees multiplied by 4.5%.

Commissioner. “Commissioner” means the Commissioner of the Department of Economic and Community Development.

Dependent care benefits. When used within the context of “income derived from employment” as defined herein, “dependent care benefits” means dependent care expenses paid by the qualified business on behalf of a participating qualified employee for dependent care assistance offered as part of an employee benefit package.

Earnings. When used within the context of “income derived from employment” as defined herein, “earnings” means base pay paid by the qualified business, plus any overtime, incentives or commissions paid.

Education benefits. When used within the context of “income derived from employment” as defined herein, “education benefits” means education expenses paid by the qualified business on behalf of a participating qualified employee for education assistance offered as part of an employee benefit package.

Financial plan. "Financial plan" means a statement of the costs and sources of revenue required to accomplish the development program. A financial plan shall include a description of facilities to be constructed or modified, equipment to be purchased, employee training requirements, and other significant expenses associated with the project.

Gross wages. “Gross wages” means taxable wages, tips and other compensation included on the wage and tax statement for services performed in this State during the calendar year.

Health and welfare benefits. When used within the context of “income derived from employment” as defined herein, “health and welfare benefits” means company-paid contributions to group insurance programs such as health insurance, medical insurance, dental insurance, vision insurance, life insurance, and long-term disability coverage.

Income derived from employment. “Income derived from employment” means the total value of company-paid benefits and compensation provided by a qualified business to a qualified employee, including earnings, education benefits, retirement benefits, health and welfare benefits, and dependent care benefits. For qualified economic development projects where a business creates 250 or more jobs within a two-year period in a Pine Tree Development Zone, “income derived from employment” may include other company-paid benefits and company-offered benefits.

Qualified economic development project. “Qualified economic development project” means a definable business investment project that includes capital or other investments, and the creation of net new jobs associated with those investments that are necessary to improve or retain the applicant’s market position.

Qualified employees. “Qualified employees” means new, full-time employees hired in this State by a qualified business and for whom a retirement program subject to the Employee Retirement Income Security Act of 1974 , 29 U.S.C. §§ 1001-1461, as amended, and group health insurance are provided, and whose income derived from employment with the applicant, calculated on a calendar year basis is greater than the most recent annual per capita personal income in the county in which the qualified employee is employed and whose gross wages are subject to reimbursement to the qualified business under the Act. “Qualified employees” does not include employees shifted from elsewhere in the State to a qualified business from an affiliated business. For employees in call centers in Aroostook and Washington counties, “qualified Pine Tree Development Zone employees’ means new, full-time employees hired in this State by a qualified Pine Tree Development Zone business for work directly in one or more qualified business activities for whom a retirement program subject to the Employee Retirement Income Security Act of 1974 , 29 United Sates Code , Sections 101 to 1461, as amended, and group health insurance are provided and whose income derived from employment within the Pine Tree Development Zone, calculated on a weekly basis, is greater than the average weekly wage for the most recent available calendar year as derived from the quarterly census of employment and wages and provided annually by the Department of Labor. The calculation of the average weekly wage must include data from the counties of Androscoggin, Aroostook, Franklin, Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc, Somerset, Waldo and Washington. Notwithstanding this subsection, with respect to employees in call centers in Aroostook and Washington counties, in a county in which the average annual unemployment rate at the time of certification for the most recent calendar year is greater than the state average for the same year, the wage threshold is 90% of the average weekly wage as derived from the quarterly census of employment and wages. Notwithstanding this subsection, with respect to a call center in Aroostook or Washington county and upon approval of the commissioner, a qualified business located in a county in which the average annual unemployment rate at the time of certification for the most recent calendar year is greater than the state average for that same year qualifies for a phase-in of salary threshold requirements. A qualified business under this provision must meet 70% of the average weekly wage as derived from the quarterly census of employment and wages in the first year of certification, 80% of the average weekly wage as derived from the quarterly census of employment and wages in the 2nd year of certification and 90% of the average weekly wage as derived from the quarterly census of employment and wages in all following years of certification. Failure to meet any of these requirements results in automatic revocation of certification. "Qualified Pine Tree Development Zone employees" does not include employees shifted to a qualified business activity from a nonqualified activity of the qualified Pine Tree Development Zone business or an affiliated business. The commissioner shall determine whether a shifting of employees has occurred.

Retirement benefits. When used within the context of “income derived from employment” as defined herein, “retirement benefits” means company-paid contributions to a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 United States Code , Sections 1001 to 1461, as amended.

SECTION 2. APPLICATION REQUIREMENTS

A. GENERAL

Qualified businesses wishing to use employment tax increment financing to seek reimbursement of gross wages paid must submit an application to the Department conforming in all material respects to the requirements of Section 2(B) below and providing any additional information the Department may request. The application must be received within the calendar year for which approval is sought.

B. EMPLOYMENT TAX INCREMENT FINANCING APPLICATION

An application for employment tax increment financing certificate of approval must contain the following:

1. Employment Tax Increment Financing Development Program, including:

a. Project Plan:

(1) A description of the business, its products and/or services and history of operation;

(2) A description of the market(s) and/or competitive environment in which the business operates or expects to operate; and

(3) A description of the applicant’s employment growth and investment plans for the three (3) years following the date of application.

b. Base Level Data:

(1) Number of employees employed by the applicant as of March 31, June 30, September 30, and December 31 for each of the three years preceding the year of application;

(2) Total gross wages of the applicant for each of the three calendar years preceding the year of application; and

(3) Total state income taxes withheld for employees of the applicant for each of the three years preceding the year of application.

c. A statement describing the basis under which it has been determined that the project will not go forward absent Employment Tax Increment Financing.

2. Financial Plan, including:

a. A statement of the sources and uses of funds required to accomplish the development program;

b. A description of:

(1) Facilities to be constructed or modified;

(2) Equipment to be purchased;

(3) Employee training requirements; and

(4) Other expenses associated with the Development Program, and which will be funded through Employment Tax Increment Financing.

3. Qualified employee data, consisting of:

a. Number, by job classifications, of qualified employees that the applicant has added or expects to add in the State within a two-year period beginning on the January 1 of the year of application;

b. Average annual wage, by job classification, of qualified employees that the applicant has added, or expects to add in the State within a two-year period beginning on the January 1 of the year of application;

c. Hiring schedule of qualified employees that the applicant has added or expects to add in the State within a two-year period beginning on the January 1 of the year of application;

d. Estimated total annual gross wages for all qualified employees for each of the 10 years during which reimbursement may be sought for the development program; and

e. Estimated total annual State income tax withholdings for all qualified employees for each of the 10 years during which reimbursement may be sought for the development program.

4. Certifications, attested by an officer of the qualified business, consisting of:

a. Certification that all qualified employees are offered participation in a retirement program subject to the Employee Retirement Income Security Act of 1974 , 29 U.S.C. §§ 1001-1461; and

b. Certification that all qualified employees are offered participation in a group health insurance plan.

5. Employment location data, consisting of:

a. All applicant’s employment locations within the State; and

b. Number of employees at each location within the State.

6. Affiliations and acquired business data, including:

a. A listing of all affiliated businesses and affiliated groups within the State;

b. For each affiliated businesses and affiliated group located within the State, current data concerning:

(1) Number of employees,

(2) Gross wages, and

(3) Total State income taxes withheld; and

7. Any additional information which the Commissioner may reasonably require.

SECTION 3. DEPARTMENT REVIEW

Applications for an employment tax increment financing certificate of approval will be reviewed by the Commissioner, subject to the following provisions:

A. Completed applications will be reviewed in the order in which they are received;

B. Completed applications must contain current information as of the submission date;

C. Prior to issuing a Certificate of Approval, the Commissioner must determine that:

1. The application is complete;

2. The program will make a contribution to the economic well-being of the State;

3. The economic development described in the program will not result in a substantial detriment to existing businesses in the State; and

4. The qualified economic development project will not go forward without Employment Tax Increment Financing.

5. The application otherwise conforms to this rule and the Act.

In order to make this determination the Commissioner shall consider, pursuant to 5 M.R.S.A., chapter 375, subchapter II, those factors determined to be necessary to measure and evaluate the effect of the proposed employment tax increment program, including whether any adverse economic effect of the proposed program on existing businesses is outweighed by the program’s contribution to the economic well-being of the State. The Department will complete its review of completed applications in a timely manner and issue a Letter of Approval to the applicant detailing the percentage reimbursement and term of the program. Unsuccessful applicants will receive written explanation of the reason for denial and may appeal the decision within 10 days of receiving the rejection letter.

SECTION 4. CALCULATIONS

A. CALCULATION OF EMPLOYMENT TAX INCREMENT

The Commissioner shall:

1. Ensure that the qualified business has hired 5 qualified employees within the first two calendar years of approving a qualified economic development project and shall calculate a tentative employment tax increment once this threshold is met in year one or year two. If a previously qualified business fails to hire the 5 qualified employees within the first two calendar years of becoming certified or has any two consecutive calendar years where the hiring of 5 or more qualified employees is not achieved, the Commissioner shall terminate approval of the qualified economic development project. Any qualified business so terminated may re-apply for employment tax increment financing.

2. Calculate the tentative employment tax increment by first reviewing the employment and payroll data for all affiliated businesses at the time of application and in the annual reports provided by qualified businesses to determine whether any shifting of employees has occurred, and then removing from the gross employment tax increment any gross wages attributed to employees shifted from affiliated businesses to the qualified business.

3. On or before May 15th of each year, forward the tentative employment tax increment information for all qualified businesses to the State Tax Assessor.

B. DETERMINATION OF REIMBURSEMENT PERCENTAGE FOR 2 FIVE YEAR PERIODS

Upon the successful review and as part of the approval of an application for Employment Tax Increment Financing, the Commissioner will establish the percentage of reimbursement to the qualified business that will be in effect for each of the first 5 calendar years beginning with the calendar year of application, using the most recently available Maine Department of Labor data at the time of application, and the Commissioner will establish the percentage of reimbursement to the qualified business for the 6th to 10th years using the most recently available Maine Department of Labor data at the beginning of the sixth year, as follows:

1. For qualified employment where the labor market unemployment rate is less than or equal to the State unemployment rate, the percentage of reimbursement will be 30% of benefit base.

2. For qualified employment where the labor market unemployment rate is greater than the State unemployment rate, the percentage or reimbursement will be 50% of the benefit base.

3. For qualified employment where the labor market unemployment rate is greater than 150% of the State unemployment rate, the percentage or reimbursement will be 75% of the benefit base.

C. ESTABLISHMENT OF PINE TREE DEVELOPMENT ZONE REIMBURSEMENT PERCENTAGE FOR UP TO TEN-YEAR PERIOD

Within Pine Tree Development Zones, upon the successful review and as part of the approval of an application for Employment Tax Increment Financing, the Commissioner will authorize the percentage of reimbursement to the qualified Pine Tree Development Zone business that will be in effect for a period of no more than 10 years, as follows:

1. For qualified employment, the percentage of reimbursement will be 80% of the benefit base. In no event may reimbursement under this subsection be provided for any calendar years beginning after December 31, 2033.

MULTIPLE LABOR MARKET AREAS

A qualified business may employ qualified employees in multiple labor market areas in the State. In those instances, the application process in Section 2(B) of this rule must be followed. A separate reimbursement rate will be established for each labor market area and the qualified business must prepare reimbursement requests for each area. A combined reimbursement request that summarizes job creation for all labor market areas may be filed per Section 5 of this rule.

The reimbursement rate for a qualified employee pursuant to this subsection will be determined by their primary physical work location, whether a company-owned facility or office, home office, co-working space, or other remote work location. The reimbursement rate for a qualified employee who temporarily works remotely or from a new location within the State of Maine due to the effects of a state of emergency designated by the Governor will remain equal to the reimbursement rate of the qualified employee’s primary work location prior to the emergency.

SECTION 5. PROCEDURE FOR REIMBURSEMENT

A. REPORTING BY QUALIFIED BUSINESS

On or before March 15th of each year, each qualified business approved by the Commissioner pursuant to this rule must report to the Department of Economic and Community Development, the following:

1. The number of employees employed during the preceding calendar year;

2. The gross wages paid to, and income derived from employment for, each qualified employee during the preceding year; and

3. Certification that the qualified employee data submitted pursuant to Section 2(B)(3) is accurate for the preceding calendar year, or any fraction thereof for which reimbursement is sought under this chapter;

4. If at any time during the calendar year for which reimbursement is sought the qualified business has failed to maintain the minimum qualification criteria described in §6753 of the Act, the business must provide the following:

a. Beginning and ending dates of the period or periods during which the business failed to meet the qualification criteria; and

b. The gross wages during the period or periods listed; and

5. Any further information the Department of Economic and Community Development may reasonably require.

B. DETERMINATION BY THE STATE TAX ASSESSOR

On or before June 30th of each year, the State Tax Assessor shall review the tentative employment tax increment received from the Commissioner and determine the employment tax increment of each qualified business for the preceding calendar year. A qualified business may receive up to 80% of the benefit base for a qualified business as determined by the State Tax Assessor, subject to the following limitations imposed in 36 M.R.S.A. §6754(2):

1. A previously qualified business may not receive reimbursement for any period of time in which it failed to maintain the minimum requirements for initial approval as a qualified business;

2. Reimbursement expires ten calendar years after the approval date of the employment tax increment financing development program, with the first calendar year being the one in which the development program approval occurred;

3. A business electing to take the jobs and investment tax credit under 36 M.R.S.A. §5215 may not claim employment tax increment financing reimbursement until the full amount of allowable jobs and investment tax credit benefits have been claimed, and the combined use of this credit and the ETIF program may not exceed the ten-year term limitation;

4. Qualified gross wage amounts are limited to the amount reported by the qualified business in box 1 on the qualified employee’s federal Form W-2 for services performed in Maine during the calendar year. A qualified business must supply copies of Forms W-2 electronically at the time of filing its application for wage reimbursement if not already filed with Maine Revenue Services; and

5. The aggregate annual retained employment tax increment revenues for all employment tax increment financing programs may not exceed $20,000,000, adjusted by a factor equal to the percentage change in the United States Bureau of Labor Statistics Consumer Price Index, United States City Average, from January 1, 1996 to the date of application.

C. PAYMENT FROM THE DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

On or before July 31st of each year, the assessor shall pay to each qualified business the approved retained employment tax increment of that business for the preceding calendar year.

History

• STATUTORY AUTHORITY: 36 M.R.S. §6759
• EFFECTIVE DATE: June 1, 1998
• NON-SUBSTANTIVE CORRECTIONS: July 1, 1998 - minor formatting and capitalization, insertion of “for” in the first paragraph of Section 3.
• AMENDED: January 11, 2006 – filing 2006-9
• AMENDED: January 13, 2020 – filing 2020-009
• AMENDED: October 4, 2021 – filing 2021-196
• AMENDED: January 11, 2023 – filing 2023-004
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 450 Rules for the Maine Technology Centers

Code Me. R. 19-100 Ch. 450 Rules for the Maine Technology Centers {#sec-19-100-ch.-450 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-100 Ch. 450}

Summary: This chapter outlines the policies and procedures governing the Maine Technology Centers, 5 M.R.S.A. §15321, P.L. 1999, Ch. 731, §UUU-3; amended P.L. 2005, Ch. 19, §3; amended P.L. 2009, Ch. 90.

Section 1. Purpose

The Technology Centers are established to support the early-stage development of technology-based businesses. The goals of the Centers are to accelerate the development of these businesses through one-on-one technical assistance, peer networks, classroom or other training on subjects unique to technology commercialization and the management of high-growth enterprises, mentorship programs that link senior technology executives with entrepreneurs and other networking opportunities.

The Centers are part of a network of service providers partially funded by the State of Maine to accelerate the growth of technology-based enterprises in Maine and to implement the State’s efforts as detailed in the Science and Technology Action Plan, updated every five years by the Maine Innovation Economy Advisory Board. The Centers complement the State’s other investments in research and development by providing a supportive environment for new technology-intensive businesses. The goals of the Centers include the retention of successful start-up businesses in the State, the improvement of opportunities for workers through the creation of technologically advanced jobs and the encouragement of private-sector initiatives.

This rule defines the policies under which the Technology Centers will operate, and establishes the process and criteria under which annual grants will be awarded.

Section 2. Definitions

As used in this rule, unless the context otherwise indicates, the following terms have the following meanings:

A. "Academic institution" means an accredited in-state post-secondary institution.

B. "Center" means a Technology Center as defined by 5 M.R.S.A. §15321 and approved for funding by the Department.

C. "Center Management Assistance Grant" means a grant provided to a Center to assist with the salary, benefits and related expenses of the center's management staff.

D. “Client” means an individual entrepreneur or small business with less than 25 employees with whom the Center as a contractual relationship to provide services.

E. "Commissioner" means the Commissioner of Economic and Community Development.

F. "Department" means the Department of Economic and Community Development.

G. "Director" means the director of the Office of Innovation.

H. "Managerial expenses" means expenses directly related to personal services of the center's management staff.

I. "Targeted technologies" means biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology, as identified in 5 M.R.S.A. §15301 and refined by the current Science and Technology Action Plan published every five years by the Maine Innovation Economy Advisory Board.

Section 3. Eligible Applicants

A. Organization Criteria. Technology Centers must:

1. Be either:

Incorporated as, or part of, a nonprofit organization; or

Incorporated as, or part of, a for-profit organization

2. Be selected based upon an annual competitive application process to be defined by a request for proposals to be issued by the Department

B. Relationship with Academic Institutions. Technology Centers must have established a relationship with at least one academic institution in the State of Maine. The Department of Economic and Community Development shall determine whether a Technology Center meets and maintains the requirements of this paragraph.

Section 4. Center Operations

A. Centers will provide support for early-stage businesses in one of the targeted technologies through at least one of the mechanisms listed in Part B.

B. Services. Centers will provide at least one of the following services:

 One-on-one counseling sessions on topics appropriate for the commercialization of the company’s technology

Peer networks

Classroom training on subjects unique to technology commercialization and the management of high-growth enterprises

Mentorship programs that link senior technology executives, active or retired, with entrepreneurs; and

Networking opportunities with service providers, investors, and other individuals and organizations that could assist the client companies.

Center Officers and Boards of Directors. Each Center will elect its Officers and a Board of Directors with representatives from the community, targeted industry sectors and economic development partners in accordance with the incorporation laws of the State of Maine. The Board of Directors for each Center is responsible for general oversight of the Center, including funding for operational needs and other expenses.

Clients. The Centers will have a process for selecting clients to participate in their programs. Clients should sign a contract with the Center, detailing the expectations for both parties.

Section 5. Center Management Assistance Grants

Entities eligible under Section 3 and providing or planning to provide services as described in Section 4 may apply for an annual Center Management Assistance Grant, dependent on continued funding by the Legislature. Successful applicants for management grants that plan to provide all of the services listed in Section 4 will be funded first; applicants that wish to provide only partial services will be considered for funding with any remaining funds. The size of the Management Assistance Grants will be commensurate with the level of services being provided with the maximum amount allowed for any Center per year being $150,000. All funds must be matched at least 1:1 with other funds or in-kind match which may be federal, state, local government or private.

Center Management Assistance Grants are to assist with management and personnel expenses related to the management of the Center. Grants may be used to assist with management expenses of operating a center, including personnel compensation, travel, and professional development. Overhead expenses related to insurance, security, utilities, building maintenance or upkeep, replacement/purchase of office equipment or supplies are not eligible uses for Center Management Assistance Grants.

Applications must include a description of how the Center intends to provide the services proposed, a detailed budget for the Center outlining all operational and capital expenses related to the provision of services proposed, including which expenses will be paid for by the Management Grant, identifying other sources and uses of funds, and a detailed report on the past operations and results of the Center.

The Director will review each Center's annual request for Center Management Assistance Grants and make recommendations for funding to the Commissioner. The Commissioner will make the final funding decisions.

Criteria will include:

The proposed services and plans for providing them;

The qualifications of the personnel who will be providing the services;

The linkages of the proposed Center to other entities in the science and technology and entrepreneurial community in Maine and in the US, including the appropriateness of the Center’s relationship with an academic institution;

The relevance of the proposal to the Innovation Economy as described in the Science and Technology Action Plan;

Past results including number of clients, results of the assistance provided to those clients as measured by job creation, revenue growth, outside investment and the awarding of patents or otherwise securing intellectual property; and

The credibility and sustainability of the non-DECD funding.

Plans for institutionalizing the work of the Center. How does the program intend to become an important part of the local entrepreneurial support system over the long term?

Section 6. Annual R&D Evaluation

Each entity receiving an annual Center Management Assistance Grant will participate in the annual R&D evaluation as conducted by the Office of Innovation. This will include, but is not necessarily limited to: providing annually a complete listing of all companies and individuals for whom the Center has provided services, notifying all clients that they are expected to complete the annual survey, and working with the Office of Innovation and/or its vendor to ensure maximum participation by clients.

Section 7. Identification as a Technology Center

Entities which receive an annual Management Assistance Grant must identify themselves as a Maine Technology Center for the period of their grant only. Entities must include in all public documents such as, but not limited to, websites, promotional materials, and stationary, the Department of Economic and Community Development logo as provided by the Office of Innovation, and indicate that the program is “A Technology Center Sponsored by the Department of Economic and Community Development, Office of Innovation.” If a program does not receive a grant in a particular year, they should cease using the name Technology Center unless they receive affirmative written permission from the Commissioner.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §13058(3) and §15321(6)
• EFFECTIVE DATE: June 20, 2001
• NON-SUBSTANTIVE CORRECTIONS: March 17, 2004 - Section 4.D
• AMENDED: May 3, 2008 – Section 6 first paragraph
• REPEALED AND REPLACED: September 30, 2009 – filing 2009-513
• REPEALED AND REPLACED: 19-100 Chapter 450 page 5

19-498 Office of Tourism and Community Development

Chapter 6 Community Development Block Grant Program: 1991 Final Statement

Code Me. R. 19-498 Ch. 6 1991 Maine Community Development Block Grant Program {#sec-19-498-ch.-6 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 6}

1991 FINAL STATEMENT

1. Program Overview 1

A. CDBG Objectives 1

B. Grant Structure 1

C. State Administration 2

D. Program Timeframe 2

E. Program Budget 2

2. Method of Distribution 4

A. Community Revitalization Giants 4

1. Threshold Criteria 4

a. Eligible Applicants 4

b. Ineligible Applicants 4

c. Project Eligibility 4

d. Federal and State Certifications for local Governments 4

2. Special Program Requirements 5

a. Past Performance 5

b. Program Income 5

3. Selection Process 5

a. Phase I Application 5

b. Phase II Project Development 7

4. Approval Process 8

B. Planning Wants 8

1. Threshold Criteria 8

2. Special Program Requirements 8

3. Selection Process 8

4. Approval Process 8

C. Reserved Grants 9

1. Threshold Criteria 9

2. Special Program Requirements 9

3. Selection Process 9

4. Approval Process 9

D. Development Fund 11

1. Threshold Criteria 11

2. Special Program Requirements 11

a. Necessary or Appropriate 11

b. Financing Plan 11

c. DF loan 12

d. Repayment Terms 12

e. LMI Benefit 12

3. Selection Process 12

a. Impact 13

4. Application 13

a. Approval Process 14

b. DF Committee Recommendations 14

c. Quarterly Allocation 14

E. Technical Assistance Grants 14

1. Threshold Criteria 14

2. Special Program Requirements 15

3. Selection Process 15

4. Approval Process 15

F. Interim Finance Program 15

1. Threshold Criteria 15

2. Special Program Requirements 16

a. Need for Financing 16

b. Commitment of Non-CDBG Funds 16

c. Community Benefit 16

d. Irrevocable letter of Credit 16

3. Selection Process 17

4. Approval Process 17

G. Urgent Needs Grant Program 17

1. Threshold Criteria 17

2. Special Program Requirements 18

3. Selection Process 18

4. Approval Process 18

H. Affordable Housing Planning Grants 19

1. Threshold Criteria 19

2. Special Program Requirements 19

3. Selection Process 19

4. Approval Process 19

I. Emerging Opportunity Fund 19

1. Threshold Criteria 19

2. Special Program Requirements 20

3. Selection Criteria 22

4. Approval Process; 23

5. Redistribution of Giant Funds 23

A. Administrative Redistribution of Grant Funds 23

1. Local Government Grants from the State 23

2. Unallocated State Grants to local Governments 24

3. State Grants from the Department of Housing and Urban Development 24

B. Program Income 24

1. General Program Income Requirements 24

a. Program income Received During the Grant Period 24

b. Program Income Received After the end of a Grant Period 25

c. Program Income Received by the State 25

d. Program Income Plan 25

e. Program Income Plan Submission 25

2. Program Income Special Requirements 26

a. Development Fund Program Income 26

b. Interim Finance Program Income 26

4. Appeals 26

5. Amendment to the Final Statement 26

Chapter 6: Community Development Block Grant Program: 1991 Final Statement

SUMMARY: The 1991 Final Statement describes the design and the method of distribution of funds of Maine's 1991 Small Cities - Community Development Block Grant (CDBG) Program. The CDBG Program is administered pursuant to 5 M.R.S.A. §13073. The 1991 Final Statement was prepared by the Department of Economic and Community Development (DECD) with the advice of the Community Development Advisory Committee.

Section 1. Program Overview

A. CDBG OBJECTIONS

The objectives of the Maine CDBG Program is to serve as a catalyst for local governments to implement programs which:

1. are part of a long range community strategy;

2. provide the conditions and incentives for further public and private investment;

3. improve deteriorated residential and business districts and local economic conditions; and

4. benefit low and moderate income people.

B. GRANT STRUCTURE

The Department of Economic and Community Development, through the Office of Community Development (OCD), offers several programs designed to achieve the previously stated CDBG objectives. The following is a list of CDBG programs administered by OCD and a brief summary of each program's intent:

1. Community Revitalization Grants: To assist communities with programs which provide financing for local housing, economic development and public facility activities which are part of a community development strategy and which will lead to future public and private investments.

2. Planning Grants: To assist communities in the final development of their CDBG strategies that address specific community development problems.

3. Reserved Grants: To provide funding for the second year of a CDBG grant initially awarded in 1990.

4. Development Fund: To provide financial resources to local governments Which in turn assist businesses create jobs for low and moderate income people.

5. Technical Assistance Grants: To build local and regional community development capacity through workshops, site visits, and other training conducted by the State and regional organizations.

6. Interim Finance Program: To utilize undisbursed monies in the State's Letter of Credit for grants to localities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

7. Urgent Needs Grant Program: To enable communities to address community development needs having a particular urgency.

8. Affordable Housing Planning Grants: To enable communities to gather, analyze, and provide information required for the development of projects to promote affordable housing.

C. STATE ADMINISTRATION

The Department of Economic and Community Development, through OCD, pursuant to the Housing and Community Development Act of 1977, as amended, Section 106 (d) (3) (a) is permitted to utilize $100, 000 plus 2% of its annual allotment from the Department of Housing and Urban Development (HUD) to assist in administering the State's Small Cities CDBG Program in accordance with Federal, State and local requirements.

D. PROGRAM TIMEFRAME

The provisions set forth in this Final Statement apply to funds to be awarded in the 1991 grant year which begins with the Community Revitalization Grant application deadline of November 15, 1990 and runs approximately one year to the next Community Revitalization Grant application deadline.

E. PROGRAM BUDGET

The following budget (an page 3) presented on the next page indicates the manner in which CDBG Funds will be allocated among programs for the 1991 grant year. The total budget is comprised of a federal allocation from HUD, along with a state match equivalent to at least 2% of the federal allocation. The amount of the federal allocation is unknown at this time but is expected to be approximately $9,800,000. The only program for which the budget remains uncertain Is the Community Revitalization Grant Program. The budget for this program will be equal to the total budget less the amounts budgeted for all other programs. The maximum amount available for every other program will be that amount indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET

GRANT YEAR 1991

Total Program Budget¹

$ 9,800,000

PROGRAM

MAXIMUM BUDGET

1. Planning Grant Program 100,000

2. Reserved Grant Program 2,539,960

3. Development Fund 750,000

4. Technical Assistance Grant Program 70,000

5. Interim Finance Program² See Below

6. Urgent Needs Grant Program 300,000

7. Affordable Housing Planning Grant Program 150,000

8. Community Revitalization Grant Program³ See Below

¹ As indicated on page 2, the total program budget is unknown at present. The total program budget is comprised of a federal allocation expected to equal $9,800,000 plus a state match of at least 2% of the federal allocation.

² The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other program. These monies are lent on a short term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

³ This budget for this program Is comprised of the total program budget less the amounts budgeted for programs 1, 2, 3, 4, 6, 7 above and state administration described in Section 1 (C) of this Final Statement.

Section 2. Method of Distribution

This section describes the various programs established by the State of Maine for the distribution of Community Development Block Grant funds.

A. COMMUNITY REVITALIZATION GRANTS

The purpose of a Community Revitalization (CR) Grant is to provide financing for local housing, economic development and public facility activities which are part of a community development strategy and which will lead to future public and private investments.

1. Threshold criteria: The state will distribute CDBG funds too local governments through the annual Community Revitalization Selection Process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local governments in Maine, including plantations, are eligible to apply for and receive CDBG funds from the state.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, and established counties and unorganized territories.

(c) Project Eligibility: Upon receipt by the Office of Community Development, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with CDBG funds. Those, activities which do not appear to be eligible under 24 CFR, Part 570, Subpart C, 201 et s eq. will be excluded Coma further consideration, and the applicant will be notified of the determination. In the event that an application contains more than one proposed activity, ineligible activities would be excluded and the remaining eligible activities would continue through the selection process.

(d) Federal and State Certifications for Local Governments: All communities applying for CDBG funds certify that they will:

(i) minimize displacement and adhere to a displacement policy;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required state and federal public participation requirements;

(vi) adopt and follow a residential anti-displacement plan;

(vii) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; and

(viii) provide a local match equivalent to 20 percent of the total project budget.

2. Special Program Requirements: CR applicants must also comply with the following special program requirements:

a. Past Performance: In order to be eligible to apply for the 1991 program, communities that received grant funds in 1986 and 1987 must have expended 100% of the funds by November 15, 1990. Communities that received grant funds in 1988 must have obligated 100% of the funds by November 15, 1990. Communities that received grant funds in 1989 must have obligated at least 50% of the funds by November 15, 1990. Communities that received grant funds in 1990 must have obligated at least 25% of the funds by November is, 1990.

b. Program Income: Grant recipients, with unanticipated program income, who are unable to meet the above performance requirements because of the federal rule that program income must be expended prior to the expenditure of grant funds, may submit a request to DECD for a waiver of this special program requirement.

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

a. Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's problems that it would like to address with CDBG assistance. The application deadline is November 15, 1990. These applications will be evaluated on the following:

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with CDBG assistance.

(ii) Proposed Solution (30 points) : The Proposed Solution is a description of how the applicant would like to use CDBG assistance to solve the problem(s) discussed in the Problem Statement.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, Community groups and others were involved in the identification (of the problem(s) and solutions discussed in the application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Commitments, along with an estimated timeframe regarding when various aspects of the program will be undertaken, may be reviewed.

(v) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(aa) Housing (2.5 points): a composite score consisting of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the 1980 Census.

(bb) Economic Conditions (2.5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the Labor Market Areas in which the community is located plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (state equalized) tax rates for each applicant within population categories. The population size categories include 5,000 and above, 4,999 to 2,500, 2,499 to 1,000, and 999 less.

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined in the 1980 Census. The poverty level percentages will be ranked within the four population categories discussed above.

(vi) Supplemental Points: In recognition of the advantage that communities which have been awarded CR Grants in the past may have in a competition of this nature, supplemental points will be awarded based on the following criteria:

(aa) Communities which have never applied for a CR grant will be awarded 5 supplemental points, cm:

(bb) Communities which have not received a CR grant since 1987 will be awarded 3 supplemental points.

b. Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase II. It is important to remember UK an invitation is not a guarantee of binding. These applicants continue the process by completing the following criteria:

(aa) Project Planning: Details of the project including engineering, cost analysis and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart C, .201 et seq .

(cc) Project Benefit: The proposed activities are verified to meet one the national objectives pursuant to 24 CFR, Part 570, Subpart A., 200 (a) (2) of either providing direct benefit to low and moderate income persons car removing slum and blighting influences within that community (24 CFR, Part 570, Subpart A, et seq .).

(dd) Management Plan: The community will determine bow they will be administering and managing their program.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Planning Grants: Pursuant to Section 2(B) of this Final Statement, communities will receive financial assistance, on an as needed basis, in the form of planning grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff. Additional planning costs may be reimbursable expenses from subsequent full funding.

4. Approval Process: The emphasis during the second phase will be to develop a partnership between the state, region and community to determine the best project that will meet the community's identified needs. OCD's Project Development (PD) specialist assigned to the community will work closely with the town to identify eligible solutions. Through this process, the PD Specialist will insure the verification of benefit, project cost justification and project budgets and schedules. Those communities successfully completing the Phase II criteria shall contract with DECD in order to receive CDBG funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of the Office of community Development reserves the right to waive this requirement in light of extenuating circumstances.

The maximum grant amount will be $400,000 for one year with an $800,000 maximum for two years. Project implementation shall begin upon execution of a contract. OCD staff will remain involved with the town through the end of the project to provide technical assistance and to monitor compliance with federal and state regulations.

B. PLANNING GRANTS

The purpose of the Planning Grant is to enable communities to gather, analyze, and provide information required by the CR Grant process.

1. Threshold Criteria: The State will award planning grants to communities, provided that they meet the following threshold criteria:

(a) been invited into Phase II of the CR selection process;

(b) demonstrate a need for financial assistance; and

(c) demonstrate the means to execute the grant award.

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will be required to submit a Planning Grant Proposal that describes how they will use these planning grant funds in order to complete the Phase II requirements necessary to contract with the Office of Community Development.

4. Approval Process: OCD will award Planning Grants on a competitive basis. The staff will review the threshold criteria, the applicant's proposal, and an evaluation of the applicant's past performance under past Planning Grants.

C. RESERVED GRANTS

The purpose of a Reserved Grant is to provide funding for the second year of a CR Grant initially awarded in the 1990 grant year.

1. Threshold Criteria: reserved grantees meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2 (A) (1) (a) and (b) of this Final Statement;

(b) the proposed activities must meet one of the national objectives described in 24 CFR, Section 570.200 (a) (2);

(c) undertake eligible activities, pursuant to 24 CFR, Section 570.201 et seq . and approved during the 1990 Phase II process;

(d) complete the Federal Certifications for local Governments as described in Section 2(A)(1)(d) of this Final Statement; and

(e) complete the required CDBG application materials.

2. Special Program Requirements: reserved grantees must meet the following special program requirements:

(a) Eligible applicants are restricted to the following 6 communities which received multi-year grants from the State in 1990:

Belfast $314,960

Brooksville $415,000

Caribou $500,000

Eastport $500,000

Madawaska $360,000

Waterboro $450,000

(b) Evidence that applicants are on line with the 1990 expenditure schedule as submitted in their contract. Reserved Grant communities must have demonstrated reasonable progress in staffing, program design and contracting for their current program.

(c) In the aggregate, 60% of the expenditures proposed by Reserved Grantees must result in benefit to low and moderate income persons.

3. Selection Process: Not applicable.

4. Approval Process: The following actions constitute the approval process far reserved grants:

(a) Applications from Reserved Grant communities will be invited by November 15, 1990.

(b) Each Reserved Grant application will be reviewed by the community's PD Specialist. The PD Specialist will:

(i) Review status reports of Reserved Grant communities;

(ii) Compare the 1991 application to the second year of the project as proposed in the 1990 Phase II process;

(iii) Review activity schedule and management plan for acceptability based on project design and budget; and

(iv) Develop recommendations for the CDBG Program Manager regarding the application's acceptability, grant conditions and funding level.

(c) Recommendations on Reserved Grant applications will be reviewed by the CDBG Program Manager. Based on the information presented, the Program Manager will recommend to the Director and the Commissioner of the Department of Economic and Community Development that the Reserved Grant community:

(i) Be funded at the requested level;

(ii) Not receive a 1991 grant (if ineligible costs were incurred during the administration of the 1990 CR Grant or the project is no longer feasible); or

(iii) Be funded at a reduced level (the amount of reduction will be determined by the changes in the project's activities and schedules as originally proposed or by evidence that the project cannot accomplish its original goals) .

(d) The Commissioner of the Department of Economic and Community Development will announce reserve grant awards by January 25, 1991.

D. DEVELOPMENT FUND

The purpose of the Development Fund (DF) is to provide financial resources to local governments which in turn assist businesses create jobs or housing opportunities for low and moderate income people.

1. Threshold Criteria: DF applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2 (A) (1) (a) and (b) of this Final Statement;

(b) the proposed activities must meet one of the national objectives described in 24 CPR, Section 570.200 (a) (2) ;

(c) 51% of the jobs or housing units created as a result of CDBG expenditures proposed by the UP applicant are provided to persons of low and moderate income;

(d) undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart C, .201 et seq .;

(e) complete the Federal Certifications for local Governments as described in Section 2 (A) (1) (d) of this Final Statement; and

(f) complete the required UP application materials.

2. Special Program Requirements: DF proposals also must comply with the following special program requirements:

(a) Necessary or Appropriate: The UP loan to for profit businesses must be for projects that are necessary and appropriate. The application must describe the need for UP assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Clear and sufficient evidence must be provided that the project cannot proceed without UP participation.

(b) Financing Plan: The DF application is to present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost: must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate the non-DF financing also must represent now investment.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business or the developer identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Thresholds regarding interest rates or repayment terms have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance.

(e) LMI Benefit: In the aggregate, 60% of the jobs or housing units created as a result of CDBG expenditures are provided to persons of low and moderate income.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The DF project will be evaluated as a viable business or housing development proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to Implement the project.

(ii) Financial Plan: The financing for the project Is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualifier accountant, preferably a CPA. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(iii) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash equity injection. other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(iv) DF Loan repayment: Terms of the loan payback are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG - DF monies for reuse.

(v) Security: The proposed loan recipient presents collateral appropriate to secure the DF loan and indicates willingness to enter Into security agreements.

(vi) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(vii) Cost: The number of permanent jobs created or retained and the number of housing units assisted as per DF project dollars will be compared with current and past OF projects. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(viii) Low/Moderate Income Benefit: Additional consideration will be given to the proposed loan recipient for extra benefits or efforts on behalf of low and moderate income persons and families. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from JTPA and Job Service will be part of this evaluation.

(ix) community and Economic Development: Benefit to community and economic development will focus on how the proposal affects long term developments. This review will also examine the ripple affect of the proposal on the community. considered in this area will be how the primary and secondary impacts of the proposal meets community needs and furthers community and economic development.

4. Approval Process:

(a) Application: Applications shall be submitted an the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each job creation or housing proposal. Following staff analyses, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the DECD staff and the Director. The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, an attorney, a representative of private financing, a business person, an at-large appointee, and a pro-tem alternate.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The Committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms proposed;

(iii) rejection with staff recommendation for complete/partial resubmittal; and

(iv) rejection.

(c) Quarterly Allocation: The quarterly allocation will be limited to $187,500 plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director. The Director also reserves the right to reject any or all applications in any month.

If, while nearing the end of the quarter, available bands are not sufficient to finance credit-worthy proposals, the review process will incorporate an objective needs factor (the distress factor described in Section 2 (A) (3) (v) . Those proposals with the highest score in the needs factor will receive assistance first.

E. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance (TA) Grant program is to enable regional organizations to provide information about the CDBG program to communities in their area and to assist interested communities in preparing to participate in the program.

1. Threshold Criteria: The State will award TA Grants to a planning district provided that it meets the following threshold criteria:

(a) the recipient is a nonprofit regional organization;

(b) the recipient is governed by a board with representatives of local governments from the district for which the award is made; and

(c) the recipient has the staff capacity to provide CD technical assistance.

2. Special Program Requirements: Not applicable.

3. Selection Process: Regional organizations that desire to receive Technical Assistance Grants must submit a proposal by May 15, 1991 that describes how the organization will address the following technical assistance tasks:

(a) provide assistance to communities in preparation of Community Revitalization applications; and

(b) provide on an as-needed basis general technical assistance to communities interested in participating in the State's CDBG program.

4. Approval Process: DECD will award technical assistance grants on a competitive basis. The factors involved in the determination of awards will be the threshold criteria, the regions' proposals and evaluation of their performance under past TA Grants.

F. INTERIM FINANCE PROGRAM

The purpose of the Interim Finance Program (IFP) is to utilize undispersed monies in the State's Letter of Credit for grants to localities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria: IFP applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2(A)(1)(a) and (b) of this Final Statement;

(b) The proposed activities must meet the low and moderate income objective described in 24 CFR, Part 570, Subpart C, .200 (a)(2). This national objective requires that;

(i) 60% of the proposed expenditures for job creation activities result in benefit to low and moderate income persons,

(ii) 60% of the proposed expenditures for housing rehabilitation projects result in benefit to low and moderate income persons, or

(iii) 20% of the proposed expenditures for the reduction of the development costs of new housing projects result in benefit to low and moderate income persons.

(c) undertake activities that serve to meet the national objective described in Section 2 (F) (1) (b) of this Final Statement;

(d) complete the Federal Certifications for local Governments as described in Section 2 (A) (1) (d) of this Final Statement;

(e) complete the required UP application materials; and

(f) the application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines that it is in the best interest of the State and if that office incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: There are four requirements, in addition to the six listed above, which must be met for a project to qualify for the Interim Financing Program:

(a) Need for Financing: There must be a demonstrated need for an Interim Financing Program loan in order for the project to be funded. That need may be based upon either a gap in available funding for the project or an a determination that the costs of financing so adversely affect the project's rate of return that the project would not be undertaken without additional assistance. Interim Finance Program grantees must demonstrate that the proposed rate and term have been set to ensure that the assistance provided is the minimum needed and that the proposed assistance is necessary or appropriate to carry cut an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community-job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the Interim Finance Program grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: Interim Financing Program grants will be made on a first come basis. Prior to consideration of a grant award all Interim Financing proposals must meet the six Threshold Criteria plus the four Special Program requirements listed above. Projects that meet these requirements may be awarded IFP grants, until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the Interim Financing Program, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the Interim Financing Program. Communities interested in applying will notify the State of its intent to apply, identify the proposed loan recipient, and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the Interim Financing Program grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the Department of Economic and Community Development will make a grant award based on the project meeting all program requirements.

G. URGENT NEEDS GRANT PROGRAM

The purpose of the Urgent Needs Grants (UNG) Program is to provide financing to enable communities to address community development needs having a particular urgency.

1. Threshold criteria: UNG Program applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2 (A) (1) (a) and (b) of this Final Statement;

(b) pursuant to 24 CFR Part 570 Subpart C, .200 (a) (2) and .208 (c), seek to 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 urgent within 18 months prior to the submission of the application;

(iii) the applicant is unable to finance on its own; and

(iv) cannot be addressed with other sources of funding.

(c) complete the Federal Certifications for local Governments as described in Section (2)(A)(1)(d) of this Final Statement;

(d) complete the required UNG Program application materials; and

(e) seek an amount of assistance not in excess of $150,000.

2. Special Program Requirements: The urgent need to be addressed must be of such a nature that it requires emergency action to alleviate the occurrence or imminent threat of widespread or severe injury or loss of life resulting from any natural or man-made cause.

3. Selection Process: Communities seeking to undertake a project on the basis of urgent need must submit an UNG Program application which includes the following:

(a) documentation of the nature and severity of the condition requiring assistance;

(b) certification that the activity is designed to address an urgent need;

(c) information that describes when the urgent need condition requiring assistance developed/occurred; and

(d) evidence to confirm that other financial resources to alleviate the need are not available.

Urgent Needs Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG Program proposals must meet the five Threshold Criteria plus the Special Program Requirement listed above. Grant proposals that meet these requirements may be awarded grants from the UNG Program,, until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: Following the acceptance of a complete application, the Director of the Office of Community Development shall review the application and verify the information contained therein. If all requirements are verified and funds remain available in the program, the Director will make a grant award.

H. AFFORDABLE HOUSING PLANNING GRANTS

The purpose of the Affordable Housing Planning Grants (AHPG) program is to enable communities to gather, analyze, and provide information required for the development of projects to promote affordable housing.

1. Threshold Criteria: The State will award AHPG's to communities, provided they meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2 (A) (1) (a) and (b) of this Final Statement;

(b) demonstrate a need for financial assistance not to exceed $15,000; and

(c) Demonstrate the means to execute the grant award.

2. Special Program Requirements: AHPG applicants must also have a certified local or Regional Housing Alliance in accord with Chapters 11, 12, and 13 of the Maine Affordable Housing Alliance rules.

3 . Selection Process: Applications for AHPG's will be accepted on a first come basis. Prior to consideration of a grant award, the proposals mist meet the three threshold criteria and the special program requirement. Proposals that meet the criteria may be awarded AHPG funds, until the amount of funds available have been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: Following the acceptance of a complete application, the Director of the Office of Community Development shall review the application and verify the information contained therein. If all requirements are verified and funds remain available in the program, the Director will male a grant award.

I. EMERGING OPPORTUNITY FUND

The purpose of the Emerging Opportunity Fund (EOF) is to provide financial resources to local governments in Title IX areas designated by the Economic Development Administration (EDA) which can use the EOF assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I).

1. Threshold criteria: EOF applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2(A)(1)(a) of this Final Statement;

(b) the proposed activities must meet one of the national objectives described in 24 CFR, Section 570.200 (a)(2);

(c) 51% of the jobs created as a result of CDBG expenditures proposed by the EOF applicant are provided to persons of low and moderate income;

(d) undertake eligible activities, pursuant to 24 CFR, Section 570. 201 et seq .;

(e) complete the Federal Certifications for Local Governments as described in Section 2(A)(1)(d) of this Final Statement;

(f) complete the required EOF application materials; and,

(g) be designated by EDA as eligible to receive funds under the Title IX program, and must have submitted a Title IX or Title I preapplication to EDA and be working with EDA toward submission of a full application.

2. Special Program Requirements: EOF proposals also must comply with the following:

(a) EOF Funds: Provided an initial EOF application is successful, a grant contract will be executed between DECD and the local government to reserve EOF funds for the applicant, and an EOF Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated EOF funds as a match to obtain EDA Title IX or Title I funds. Depending on the EDA matching requirements, requests to use funds from the reserve may have to meet additional special requirements that are similar to those described in Section 2(D)(2)(a and b) of this Final Statement.

(i) EDA Title IX Economic Adjustment Assistance defined: Funds under the Title IX Program are used to assist areas experiencing long-term economic deterioration (LTED) and areas threatened or impacted by sudden or severe economic dislocation (SSED).

Long-term economic deterioration (LTED): The LTED Program assists eligible applicants to develop and/or implement strategies designed to halt and reverse the long-term decline of their economies. The most common type of activity funded under the LTED Program is Revolving Loan Funds (RLFs), although other types of eligible Title IX activity may be funded.

Sudden and severe economic dislocation (SSED): The SSED Program assists eligible applicants to respond to actual or threatened major job losses (dislocation) and other severe economic adjustment problems. It is designed to help communities prevent a sudden, major job loss; to reestablish employment opportunities and facilitate community adjustment as quickly as possible after one occurs; or to meet special needs resulting from severe changes in economic conditions. SSED assistance is intended to respond to permanent rather than temporary job losses. Assistance may be in the form of a grant to develop a strategy to respond to the dislocation (Strategy Grant) or a grant to implement an EDA approved strategy (Implementation Grant)

In light of the current high level of economic distress in rural areas, EDA is particularly interested in Title IX projects designed to mitigate serious rural economic adjustment problems.

(ii) EDA Title I Public Works Program defined: Funds under the Title I Program are used to assist distressed communities attract new industry, encourage business expansions and generate long-term, private sector jobs through projects to improve water and sewer facilities primarily serving industry, build access roads to industrial parks or sites, and construct business incubator buildings.

(b) Limit on Amount of EOF assistance: Each Title IX area designated by EDA will be eligible for one EOF grant. The EOF application must present a plan in which the EOF funding comprises the lesser of $200,000 or 70% of the matching funds required from the local government by EDA's Title IX or Title I program. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the EOF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for EOF assistance to revolving loan funds under the Title IX program have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet EDA Title IX matching requirements, program income generated from EOF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

3. Selection Criteria: Eligible projects will be evaluated according to the following factors:

(a) Impact: The EOF project will be evaluated as a viable CDBG and EDA proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success:

LTED: To receive funding under the LTED/RLF Program, an area must be experiencing at least one of three economic problems: 1) very high unemployment; 2) low per capita income; or, 3) chronic distress (failure to keep pace with national economic growth trends over the last five years). Priority will be given to those areas with two or more of these indicators.

SSED: To receive priority consideration for funding under the SSED Program, an area must show actual or threatened permanent job losses that exceed the following threshold criteria. 1) If the unemployment rate of the Labor Market Area exceeds the national average, the dislocation must be the lesser of two (2) percent of the employed population, or 500 direct jobs. 2) If the unemployment rate of the Labor Market Area is equal to or less than the national average, the dislocation must be the lesser of four (4) percent of the unemployed population, or 1,000 jobs.

(ii) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(iii) Benefit: The EOF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(iv) Cost: The number of permanent jobs created or retained as per EOF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(v) Low/Moderate Income Benefit: Additional consideration will be given to the proposal for extra benefits or efforts on behalf of low and moderate income persons and families. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from JTPA and Job Service will be part of this evaluation.

(vi) Community and Economic Development: Benefit to community and economic development will focus on how the proposal affects long term developments. This review will also examine the ripple affect of the proposal on the community. considered in this area will be how the primary and secondary impacts of the proposal meets community needs and furthers community and economic development.

4. Approval Process:

(a) Application: Once the applicant has submitted a Title IX or Title I preapplication to EDA and is working toward a full application, it may submit an EOF application to DECD. DECD staff will review the EOF applications on a first come basis to determine if the threshold criteria have been met. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the application analysis, staff will make one of the following three recommendations to the Development Director for awards:

(i) approval of requested amount and requested or different terms;

(ii) approval of lesser amount and requested or different terms; or,

(iii) rejection.

(c) Allocation: The EOF allocation will be limited to $450,000. EOF proposals that meet all criteria may be awarded funds until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any further applications.

Section 3. Redistribution of Grant Funds

This section describes the methods by which disencumbered funds and program income is to redistibuted 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 1990 Community Revitalization 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 will be awarded to the community with the next highest score on the 1991 waiting list or added to the available monies for the 1992 competition. The decisions on which option to take will be made by the Director, based on staff evaluation.

Unexpended funds remaining in the grantee's CDBG account at grant closeout, funds remaining in a grantee's award but not drawn down upon grant closeout, funds returned to the State because of disallowed costs, and funds remaining due to the lack of adequate program competition will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be made by the Director, based on staff evaluation. 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.

2. Unallocated State Grants To Local Governments: Unallocated grant funds from the Phase II Planning Grants, the Development Fund or the Community Revitalization Program will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be made by the Director, based an staff evaluation.

3. State Grants from the Department of Housing and Urban Development (HUD): Additional HUD financial allocations to State of Maine following award to local grantees will be added to any open grant or added to the available monies bar the next year's competition. The decision on which option to take will be based an staff evaluation. 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.

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 daring the grant period provided the grantee submits an acceptable Program Income Plan, as described in Section 3(B)(1)(d) of this Final Statement, during the selection process. 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 recently encumbered grant. The funds must be 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 Elan as described in Section 3 (B) (1) (d) of this Final Statement.

(c) Program Income Received by the State: Up to 2% of program income that is returned to the State will be used for administrative costs. The balance of program income (98%) will be used to fund new 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 far the receipt and reuse of the program income; and

(iv) A description of the grantee's administrative capacity to manage the program income, to manage the activity to be funded and to maintain the required recordkeeping systems for the time period that program income receipts are anticipated.

(e) Program Income Plan Submission: The following schedules must be adhered to when submitting a Program Income Plan:

(i) Community Revitalization and Reserve Grants: during the Phase II process;

(ii) Development Fund: within forty-five (45) days of grant award; and

(iii) Interim Finance Program: with the IFP application.

2. Program Income Special Requirements:

(a) Development Fund Program income: Development Fund loan repayments are considered program income. Except for those grantees who can adequately demonstrate the reuse of program income far the "same activity" that generated the program income, all DF loan repayments will be returned to the State and will be placed in a State CDBG Development Fund Revolving loan Fund Program.

For these purposes, "same activity" shall mean the same business that originally received CDBG assistance.

Loans made from the State RIF 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 60% 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.

Section 4. Appeals

An applicant wishing to appeal DECD's decision regarding their 1991 award may do so by submitting an appeal letter to the Commissioner of the Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgement regarding qualitative scoring will not be allowed. If an appeal is successful, funds will be reserved for the project from subsequent CDBG funding.

Section 5. Amendment to the Final Statement

The State can amend the 1991 Final Statement from time to time in accordance with the same procedures required for the preparation and submission of the final statement. In addition, the amendment process will be guided by the State of Maine's Administrative Procedures Act.

History

• STATUTORY AUTHORITY: 5 MRSA §13058(3)
• EFFECTIVE DATE: September 15, 1990
• AMENDED: June 23, 1991 - Sec. 2 (I)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• CONVERTED TO MS WORD: September 5, 2003
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 7 Community Development Block Grant Program: 1992 Final Statement

Code Me. R. 19-498 Ch. 7 1992 Community Development Block Grant Small Cities Program {#sec-19-498-ch.-7 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 7}

1992 FINAL STATEMENT

1. Program Overview 1

A. CDBG Objectives 1

B. Grant Structure 1

C. State Administration 2

D. Program Timeframe 2

E. Program Budget 3

2. Method of Distribution 4

A. Community Revitalization Grants 4

1. Threshold Criteria 4

a. Eligible Applicants 4

b. Ineligible Applicants 4

c. Project Eligibility 4

d. Federal and State Certifications for Local Governments 4

2. Special Program Requirements 5

a. Past Performance 5

b. Program Income 5

3. Selection Process 5

a. Phase I Application 5

b. Phase II Project Development 7

4. Approval Process 7

B. Planning Grants 8

1. Threshold Criteria 8

2. Special Program Requirements 8

3. Selection Process 8

4. Approval Process 8

C. Reserved Grants 9

1. Threshold Criteria 9

2. Special Program Requirements 9

3. Selection Process 9

4. Approval Process 9

D. Development Fund 11

1. Threshold Criteria 11

2. Special Program Requirements 11

a. Necessary or Appropriate 11

b. Financing Plan 11

c. BP loan 12

d. Repayment Terms 12

e. LMI Benefit 12

3. Selection Process 12

a. Impact 12

4. Approval Process 13

a. Approval Process 13

b. DF Committee Recommendations 14

c. Quarterly Allocation 14

E. Technical Assistance Grants 14

1. Threshold Criteria 14

2. Special Program Requirements 14

3. Selection Process 15

4. Approval Process 15

F. Interim Finance Program 15

1. Threshold Criteria 15

2. Special Program Requirements 16

a. Need for Financing 16

b. Commitment of Non-CDBG Funds 16

c. Community Benefit 16

d. Irrevocable Letter of Credit 16

3. Selection Process 17

4. Approval Process 17

G. Urgent Needs Grant Program 17

1. Threshold Criteria 17

2. Special Program Requirements 18

3. Selection Process 18

4. Approval Process 18

H. Affordable Housing Planning Grants 19

1. Threshold Criteria 19

2. Special Program Requirements 19

3. Selection Process 19

4. Approval Process 19

I. Emerging Opportunity Fund 19

1. Threshold Criteria 19

2. Special Program Requirement 20

3. Selection Criteria 22

4. Approval Process 23

5. Redistribution of Grant Funds 24

A. Administrative Redistribution of Grant Funds 24

1. Local Government Grants from the State 24

2. Unallocated State Grants to local Governments 34

3. State Grants from the Department of Housing and Urban Development 24

B. Program Income 25

1. General Program Income Requirements 25

a. Program Income Received During the Grant Period 25

b. Program Income Received After the End of a Grant Period 25

c. Program Income Received by the State 25

d. Program Income Plan 25

e. Program Income Plan Submission 26

2. Program Income Special Requirements 26

a. Development Fund Program Income 26

b. Interim Finance Program Income 26

c. Emerging Opportunity Fund Program Income 26

4. Appeals 26

5. Amendment to the Final Statement 27

19 489 Department of Economic and Community Development

Chapter 7: Community Development Block Grant Program: 1992 Final Statement

SUMMARY: The 1992 Final Statement describes the design and the method of distribution of funds of Maine's 1992 Small Cities - Community Development Block Grant (CDBG) Program. The CDBG Program is administered pursuant to 5 M.R.S.A. §13073. The 1992 Final Statement was prepared by the Department of Economic and Community Development (DECD) with the advice of the Community Development Advisory Committee. DECD held a public forum to solicit comments prior to developing the Final Statement. As part of the Maine Administrative Procedure Act, DECD held six public hearings to solicit input on this Final Statement. Further, the DECD met with the Maine Association of Regional Councils and the Maine Community Development Association to gather comment for this document.

Section 1. Program Overview

A. CDBG OBJECTIVES

The objective of the Maine CDBG Program is to serve as a catalyst for local governments to implement programs which:

1. benefit low and moderate income people.

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions; and

4. provide the conditions and incentives for further public and private investment;

B. GRANT STRUCTURE

The Department of Economic and Community Development, through the Office of Community Development (OCD), offers several programs designed to achieve the previously stated CDBG objectives. The following is a list of CDBG program administered by OCD and a brief summary of each programs intent:

1. Community Revitalization Grants: To assist communities with programs which provide financing for local housing, economic development and public facility activities which are part of a community development strategy and which will lead to future public and private investments.

2. Planning Grants: To assist communities in the final development of their CDBG strategies that address specific community development problems.

3. Reserved Grants: To provide funding for the second year of a CDBG grant initially determined in the previous year.

4. Development Fund: To provide financial resources to local governments which in turn assist businesses to create jobs or housing opportunities for low and moderate income people.

5. Technical Assistance Grants: To build local and regional community development capacity through workshops, site visits, and other training conducted by the State and regional organizations.

6. Interim Finance Program: To utilize undisbursed monies in the State's Letter of Credit for grants to localities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

7. Urgent Needs Grant Program: To enable communities to address community development needs having a particular urgency.

8. Affordable Housing Planning Grants: To enable communities to gather, analyze, and provide information required for the development of projects to promote affordable housing.

9. Emerging Opportunity Fund: To provide financial resources to local governments in Title IX areas designated by the federal Economic Development Administration (EDA) which can use the EOF assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title IQ and the EDA Public Works Program (Title Q.

C. STATE ADMINISTRATION

The Department of Economic and Community Development, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended, Section 106(d) (3) (a) is permitted to utilize $100,000 plus 2% of its annual allotment from the Department of Housing and Urban Development (HUD) to assist in administering the State's Small Cities CDBG Program in accordance with Federal, State and local requirements.

D. PROGRAM TIMEFRAME

The provisions set forth in this Final Statement apply to funds to be awarded in the 1992 grant year which begins with the community revitalization Grant application deadline of October 16, 1991 and runs approximately one year to the next community Revitalization Grant application deadline.

E. PROGRAM BUDGET

The budget on the next page indicates the manner in which CDBG Funds will be allocated among programs for the 1992 grant year. The total budget is comprised of a federal allocation from HUD, along with a state match equivalent up to 2% of the federal allocation. The amount of the federal allocation is unknown at this time but is expected to be approximately $9,800,000. The only program for which the budget remains uncertain is the Community Revitalization Grant Program. The budget for this program will be equal to the total budget less the amounts budgeted for all other programs. The maximum amount available for every other program will be that amount indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET GRANT YEAR 1992

Total FY 1992 CDBG Program Budget ¹ $10,768,000

Port Facility Reallocation 674,874

MAXIMUM BUDGET

1. Planning Grant Program 100,000

2. Reserved Grant Program 2,587,000

3. Development Fund 750,000

4. Technical Assistance Grant Program 200,000

5. Interim Finance Program ² See Below

6. Urgent Needs Grant Program 300,000

7. Affordable Housing Planning Grant Program 150,000

8. Emerging Opportunity Fund 450,000

9. Community Revitalization Grant Program ³ 6,231,000

¹ The total program budget is comprised of a federal allocation of $10,768,000 plus a State match expected to equal at least 2% of the federal allocation.

² The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

³ The budget for this program is comprised of the total program budget less the amounts budgeted for programs 1, 2, 3, 4, 6, 7, 8 above and state administration described in Section I (C) of this Final Statement.

Section 2. Method of Distribution

This section describes the various programs established by the State of Mine for the distribution of Community Development Block Grant funds.

A. COMMUNITY REVITALIZATION GRANTS

The purpose of a Community revitalization (CR) Grant is to provide financing for local housing, economic development and public facility activities which are part of a community development strategy and which will lead to future public and private investments.

1. Threshold Criteria: The State will distribute CDBG funds to local governments through the annual Community Revitalization Selection Process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local governments in mine, including plantations, are eligible to apply for and receive CDBG funds form the State. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, and established counties and unorganized territories, except as described in (a), above.

(c) Project Eligibility: Upon receipt by the office of Community Development, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with CDBG funds. Those activities which do not appear to be eligible under 24 CH, Part 570, Subpart C, 201 et seq . will be excluded from further consideration, and the applicant will be notified of the determination. In the event that an application contains more than one proposed activity, ineligible activities would be excluded and the remaining eligible activities would continue through the selection process.

(d) Federal and State Certifications for Local Governments: All communities applying far CDBG funds must certify that they will:

(i) minimize displacement and adhere to a displacement policy;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying; and

(vii) provide a local match equivalent to 20 - 50 percent of the total project budget.

2. Special Program Requirements: CR applicants must also comply with the following special program requirements:

a. Past Performance: In order to be eligible to apply for the 1992 program, communities that received grant funds in 1987 must have conditionally closed their grants by October 16, 1991. Communities that received grant funds in 1988 must have expended 100% of their funds by October 16, 1991. Communities that received grant funds in 1989 must have obligated 100% of the funds by October 16, 1991. Communities that received grant funds in 1990 must have obligated at least 50% of the funds by October 16, 1991. Communities that received grant funds in 1991 must have obligated at least 25% of the funds by October 16, 1991.

b. Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipients has received unanticipated program income and is unable to meet the above performance requirements because of the federal rule that program income must be expended prior to the expenditure of grant funds, or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

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

a. Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's problems that it would like to address with CDBG assistance. The application deadline is October 16, 1991. These applications will be evaluated on the following:

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with CDBG assistance.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would like to use CDBG assistance to solve the problem(s) discussed in the Problem Statement.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problems) and solutions discussed in the application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Commitments, along with an estimated timeframe regarding when various aspects of the program will be undertaken, may be reviewed.

(v) Distress (10 points): OCD will derive a community's distress score from following four areas:

(aa) Housing (2.5 points): a composite score consisting of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the 1980 Census.

(bb) Economic Conditions (2.5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the Labor Market Areas in which the community is located plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(cc) local Fiscal Capacity (2.5 points): a score determined by ranking the effective (state equalized) tax rates for each applicant within population categories include 5,000 and above, 4,999 to 2,500, 2,499 to 1,000, and 999 less.

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined in the 1980 Census. The poverty level percentages will be ranked within the four population categories discussed above.

b. Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase II. It is important to remember that an invitation is not a guarantee of funding. These applicants continue the process by completing the following criteria:

(aa) Project Planning: Details of the project including engineering, cost analysis and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart C, 570.201 et seq .

(cc) Project Benefit: The proposed activities are verified to meet one the national objectives pursuant to 24 CFR, Part 570, Subpart A;, 570.200 (a) (2) of either providing direct benefit to low and moderate income persons or removing slum and blighting influences within that community (24 CFR, Part 570, Subpart A, et seq .).

(dd) Management Plan: The community will determine how they will be administering and managing their program.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Planning Grants: Pursuant to Section 2(B) of this Proposed Statement, communities will receive financial assistance, on an as needed basis, in the form of planning grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff. Additional planning costs may be reimbursable expenses firm subsequent full funding.

4. Approval Process: The emphasis during the second phase will be to develop a partnership between the State, region and community to determine the best project that will meet the community's identified needs. OCD's Project Development (PD) Specialist assigned to the community will work closely with the town to identify eligible solutions. Through this process, the PD Specialist will insure the verification of benefit, project cost justification and project budgets and schedules. Those communities successfully completing the Phase II criteria shall contract with DECD in order to receive CDBG funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of the office of Community Development reserves the right to waive this requirement in light of extenuating circumstances.

The maximum grant amount will be $400,000 for one year with an $800,000 maximum for two years. Community wide public facilities shall be limited to $200,000 per year. Project implementation shall begin upon execution of a contract. OCD staff will remain involved with the community through the end of the project to provide technical assistance and to monitor compliance with federal and state regulations.

B. PLANNING GRANTS

The purpose of the Planning Grant is to enable communities to gather, analyze, and provide information required by the CR Grant process.

1. Threshold Criteria: The State will award planning grants to communities, provided that they meet the following threshold criteria:

(a) been invited into Phase II of the CR Selection process;

(b) demonstrate a need for financial assistance; and

(c) demonstrate the means to execute the grant award.

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will be required to submit a Planning Grant Proposal that describes how they will use these planning grant funds in order to complete the Phase II requirements necessary to contract with the Office of Community Development.

4. Approval Process: OCD will award Planning Grants on a competitive basis. The staff will review the threshold criteria, the applicant's proposal, and an evaluation of the applicant's past performance under past Planning Grants.

C. RESERVED GRANTS

The purpose of a Reserved Grant is to provide funding for the second year of CR Grant initially determined in the previous program year.

1. Threshold Criteria: reserved grantees meet the following threshold criteria;

(a) be an eligible applicant, pursuant to Section 2(A)(1)(a) and (b) of this Final Statement;

(b) the proposed activities must meet one of the national objectives described in 24 CFR, Section 570.200 (a)(2);

(c) undertake eligible activities, pursuant to 24 CFR, Section 570.201 et seq . and approved during the 1991 Phase II process;

(d) complete the Federal Certifications for Local Governments as described in Section 2(A)(1)(d) of this Final Statement; and

(e) complete the required CDBG application materials.

2. Special Program Requirements: reserved grantees must meet the following special program requirements:

(a) Eligible applicants are restricted to the following 7 communities:

Biddeford

Fort Kent

Lubec

Presque Isle

Swans Island

Waldoboro

Warren

(b) Evidence that applicants are on line with the 1991 expenditure schedule as submitted in their contract. Reserved Grant communities must have demonstrated reasonable progress in staffing, program design and contracting for their current program.

(c) In the aggregate, 70% of the expenditures proposed by reserved Grantees must result in benefit to low and moderate income persons.

3. Selection Process: Not applicable.

4. Approval Process: The following actions constitute the approval process for reserved grants:

(a) Applications from Reserved Grant communities will be invited during the 1992 Phase II Process.

(b) Each Reserved Grant application will be reviewed by the community's PD Specialist. The PD Specialist will:

(i) Review status reports of Reserved Grant communities;

(ii) Compare the reserved grant application to the second year of the project as proposed in the previous year's Phase II process;

(iii) Review activity schedule and management plan for acceptability based on project design and budget; and

(iv) Develop recommendations for the CDBG Program Manager regarding the application's acceptability, grant conditions and funding level.

(c) Recommendations an Reserved Grant applications will be reviewed by the CDBG Program Manager. Based on the information presented, the Program Manager will recommend to the Director and the Commissioner of the Department of Economic and Community Development that the Reserved Grant community:

(i) Be funded at the requested level;

(ii) Not receive a reserved grant (if ineligible costs were incurred during the administration of the previous year or the project is no longer feasible); or

(iii) Be funded at a reduced level (the amount of reduction will be determined by the changes in the project's activities and schedules as originally proposed or by evidence that the project cannot accomplish its original goals).

(d) The Commissioner of the Department of Economic and Community Development will announce reserve grant awards during the 1992 Phase II process.

D. DEVELOPMENT FUND

The purpose of the Development Fund (DF) is to provide financial resources to local governments which in turn assist businesses to create jobs or housing opportunities for low and moderate income people.

1. Threshold Criteria: DF applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2(A)(1)(a) and (b) of this Proposed Statement;

(b) the proposed activities must meet one of the national objectives described in 24 CFR, Section 570.200 (a)(2);

(c) 51% of the jobs or housing units created as a result of CDBG expenditures proposed by the DF applicant are provided to persons of low and moderate income;

(d) undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart C, 570.201 et seq .;

(e) complete the Federal Certifications for Local Governments as described in Section 2(A)(1)(d) of this Proposed Statement; and

(f) complete the required DF application materials.

2. Special Program Requirements: DF proposals also must comply with the following special program requirements:

(a) Necessary or Appropriate: The DF loan for profit businesses must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Clear and sufficient evidence must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application is to present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate the non-DF financing also must represent new investment.

(c) DF Loan: The DF is provided as a grant to a unit local government. The local government must use designated grant monies as a loan to the business or the developer identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Thresholds regarding interest rates or repayment terms have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance.

(e) LMI Benefit: In the aggregate, 70% of the program expenditures are provided to benefit persons of low and moderate income.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The DF project will be evaluated as a viable business or housing development proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(ii) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified accountant, preferably a CPA. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(iii) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash equity injection. other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(iv) DF Loan repayment: Terms of the loan payback are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG - DF monies for reuse.

(v) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter into security agreements.

(vi) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(vii) Cost: The number of permanent jobs created or retained and the number of housing units assisted as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(viii) Low/Moderate Income Benefit: Additional consideration will be given to the proposed loan recipient for extra benefits or efforts on behalf of low and moderate income persons and families. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from JTPA and Job Service will be part of this evaluation.

(ix) Community and Economic Development: Benefit to community and economic development will focus on how the proposal affects long term developments. This review will also examine the ripple affect of the proposal on the community. Considered in this area will be how the primary and secondary impacts of the proposal meets community needs and furthers community and economic development.

4. Approval Process:

(a) Application: Applications shall be submitted on the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each job creation or housing proposal. Following staff analyses, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the DECD staff and the Director. The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, and attorney, a representative of private financing, a business person, an at-large appointee, and a housing person.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The Committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms proposed;

(iii) rejection with staff recommendation for complete/partial resubmittal; and

(iv) rejection.

(c) Quarterly Allocation: The quarterly allocation will be limited to $187,500 plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director. The Director also reserves the right to reject any or all applications in any month.

If, while nearing the end of the quarter, available funds are not sufficient to finance credit-worthy proposals, the review process will incorporate an objective needs factor (the distress factor described in Section l(A)(3)(v). Those proposals with the highest scare in the needs factor will receive assistance first.

E. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance (TA) Grant program is to enable regional organizations to provide information about the CDBG program to communities in their area and to assist interested communities in preparing to participate in the program.

1. Threshold Criteria: The State will award TA Grants to a planning district provided that it meets the following threshold criteria:

(a) the recipient is a nonprofit regional organization;

(b) the recipient is governed by a board with representatives of local governments from the district for which the award is made; and

(c) We recipient has the staff capacity to provide CD technical assistance.

2. Special Program Requirements: Not applicable.

3. Selection Process: Regional organizations that desire to receive Technical Assistance Grants must submit a proposal by May 15, 1992 that describes how the organization will address the following technical assistance tasks:

(a) provide assistance to communities in preparation of Community Revitalization applications; and

(b) provide on an as-needed basis general technical assistance to communities interested in participating in the State's CDBG program.

4. Approval Process: DECD will award technical assistance grants on a competitive basis. The factors involved in the determination of awards will be the threshold criteria, the regions' proposals and evaluation of their performance under past TA Grants.

F. INTERIM FINANCE PROGRAM

The purpose of the Interim Finance Program (IFP) is to utilize undispersed monies in the State's Letter of Credit for grants to localities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria: UP applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2(A)(1)(a) and (b) of this Proposed Statement;

(b) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by UP expenditures must be provided to low and moderate income persons (24 CFR Part 570.208 (a) (4)),

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households (24 CFR Part 570.208 (a) (3)), or

(iii) the UP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households (24 CFR Part 570.208 (a) (3) (i) ).

(c) undertake eligible activities pursuant to 24 CFR 570.201 et seq .;

(d) complete the Federal Certifications for Local Governments as described in Section 2(A)(1)(d) of this Proposed Statement;

(e) complete the required IFP application materials; and

(f) the application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines that it is in the best interest of the State and if that Office incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: There are four requirements, in addition to the six listed above, which must be met for a project to qualify for the Interim Financing Program:

(a) Need for Financing: There must be a demonstrated need for an interim Financing Program loan in order for the project to be funded. That need nay be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project's rate of return that the project would not be undertaken without additional assistance. Interim Finance Program grantees must demonstrate that the proposed rate and term have been set to ensure that the assistance provided is the minimum needed and that the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the Interim Finance Program grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: Interim Financing Program grants will be made on a first come basis. Prior to consideration of a grant award all Interim Financing proposals must meet the six Threshold Criteria plus the four Special Program requirements listed above. Projects that meet these requirements may be awarded IFP grants, until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the Interim Financing Program, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the Interim Financing Program. Communities interested in applying will: notify the State of its intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the Interim Financing Program grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the Office of Community Development. The State will review all other program requirements. IF these requirements are met, the Commissioner of the Department of Economic and Community Development will make a grant award based on the project meeting all program requirements.

G. URGENT NEEDS GRANT PROGRAM

The purpose of the Urgent Needs Grants (UNG) Program is to provide financing to enable communities to address community development needs having a particular urgency.

1. Threshold Criteria: UNG Program applicants must meet the following threshold criteria::

(a) be an eligible applicant, pursuant to Section 2 (A) (1) (a) and (b) of this Proposed Statement;

(b) pursuant to 24 CFR Part 570 Subpart C, 570.200 (a) (2) and 570.208 (c), seek to 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 urgent within 18 months prior to the submission of the applications;

(iii) the applicant is unable to finance on its own; and

(iv) cannot be addressed with other sources of funding.

(c) complete the Federal Certifications for Local Governments as described in Section (2) (A) (1) (d) of this Proposed Statement;

(d) complete the required UNG Program application materials; and

(e) seek an amount of assistance not in excess of $150,000.

2. Special Program Requirements: The urgent need to be addressed must be of such a nature that it requires emergency action to alleviate the occurrence or imminent threat of widespread or severe injury or loss of life resulting from any natural or man-made cause.

3. Selection Process: Communities seeking to undertake a project on the basis of urgent need must submit an UNG Program application which includes the following:

(a) documentation of the nature and severity of the condition requiring assistance;

(b) certification that the activity is designed to address an urgent need;

(c) information that describes when the urgent need condition requiring assistance developed/occurred; and

(d) evidence to confirm that other financial resources to alleviate he need are not available.

Urgent Needs Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG Program proposals must meet the five Threshold Criteria plus the Special Program requirement listed above. Grant proposals that meet these requirements may be awarded grants from the UNG Program, until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: Following the acceptance of a complete application, the Director of the office of Community Development shall review the application and verify the information contained therein. If all requirements are verified and funds remain available in the program, the Director will make a grant award.

H. Affordable Housing Planning Grants

The purpose of the Affordable Housing Planning Grants (AHPG) program is to enable communities to gather, analyze, and provide information required for the development of projects to promote affordable housing.

1. Threshold Criteria: The State will award AHPG's to communities, provided they meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2 (A) (1) (a) and (b) of this Proposed Statement;

(b) demonstrate a need for financial assistance not to exceed $15,000; and

(c) demonstrate the means to execute the grant award.

2. Special Program Requirement: AHPG applicants must also have a certified Local or Regional Housing Alliance in accord with Chapters 11, 12, and 13 of the Maine Affordable Housing Alliance rules.

3. Selection Process: Applications for AHPG's will be accepted on a first come basis. Prior to consideration of a grant award, the proposals must meet the three threshold criteria and the special program requirement. Proposals that meet the criteria nay be awarded AHPG funds, until the amount of funds available have been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: Following the acceptance of a complete application, the Director of the Office of Community Development shall review the application and verify the information contained therein. If all requirements are verified and funds remain available in the program, Director will make a grant award.

I. EMERGING OPPORTUNITY FUND

The purpose of the Emerging Opportunity Fund (EOF) is to provide financial resources to local governments in Title IX areas designated by the Economic Development Administration (EDA) which can use the EOF assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I).

1. Threshold Criteria: EOF applicants must meet the following threshold criteria:

(a) be an eligible applicant, pursuant to Section 2(A)(1)(a) of this Final Statement;

(b) the proposed activities must meet one of the national objectives described in 24 CFR, Section 570.200 (a) (2);

(c) 51% of the jobs created as a result of CDBG expenditures proposed by the EOF applicant are provided to persons of low and moderate income;

(d) undertake eligible activities, pursuant to 24 CFR, Section 570.201 et seq. ;

(e) complete the Federal Certifications for Local Governments as described in Section 2(A)(1)(d) of this Final Statement;

(f) complete the required EOF application materials; and;

(g) be designated by EDA as eligible to receive funds under the Title IX program, and must have submitted a Title IX or Title I preapplication to EDA and be working with EDA toward submission of a full application.

2. Special Program Requirements: EOF proposals also must comply with the following:

(a) EOF Funds: Provided an initial EOF application is successful, a grant contract will be executed between DECD and the local government to reserve EOF funds for the applicant, and an EOF letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated EOF funds as a match to obtain EDA Title IX or Title I funds. Depending on the EDA matching requirements, requests to use funds from the reserve may have to meet additional special requirements that are similar to those described in Section 2(D)(2)(a and b) of this Final Statement.

(i) EDA Title IX Economic Adjustment Assistance defined: Funds under the Title IX Program are used to assist areas experiencing long-term economic deterioration (LTED) and areas threatened or impacted by sudden or severe economic dislocation (SSED).

Long-term economic deterioration (LTED) : The LTED Program assists eligible applicants to develop and/or implement strategies designed to halt and reverse the long-term decline of their economies. The most common type of activity funded under the LTED Program is Revolving Loan Funds (RLFs), although other types of eligible Title IX activity may be funded.

Sudden and severe economic dislocation (SSED): The SSED Program assists eligible applicants to respond to actual or threatened job losses (dislocation) and other severe economic adjustment problems. It is designed to help communities prevent a sudden, major job loss; to reestablish employment opportunities and facilitate community adjustment as quickly as possible after one occurs; or to meet special needs resulting from severe changes in economic conditions. SSED assistance is intended to respond to permanent rather than temporary job losses. Assistance may be in the form of a grant to develop a strategy to respond to the dislocation (Strategy Grant) or a grant to implement an EDA approved strategy (Implementation Grant).

In light of the current high level of economic distress in rural areas, EDA is particularly interested in Title IX projects designed to mitigate serious rural economic adjustment problems.

(ii) EDA Title I Public Works Program defined: Funds under Title I Program are used to assist distressed communities attract new industry, encourage business expansions and generate long-term, private sector jobs through projects to improve water and sewer facilities primarily serving industry, build access roads to industrial parks or sites, and construct business incubator buildings.

(b) Limit on Amount of EOF assistance: Each Title IX area designated by EDA will be eligible for one EOF grant. The EOF application must present a plan in which the EOF funding comprises the lesser of $200,000 or 70% of the matching funds required from the local government by EDA's Title IX or Title I program. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the EOF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for EOF assistance to revolving loan funds under the Title IX program have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet EDA Title IX matching requirements, program income generated from EOF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

3. Selection Criteria: Eligible projects will be evaluated according to the following factors:

(a) Impact: The EOF project will be evaluated as a viable CDBG and EDA-proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success:

LTED: To receive funding under the LTED/RLF Program, an area must be experiencing at least one of three economic problems: 1) very high unemployment; 2) lot, per capita income; or, 3) chronic distress (failure to keep pace with national economic growth trends over the last five years). Priority will be given to those areas with two or more of these indicators.

SSED: To receive priority consideration for funding under the SSED Program, an area must show actual or threatened permanent job losses that exceed the following threshold criteria. 1) If the unemployment rate of the Labor Market Area exceeds the national average, the dislocation must be the lesser of two (2) percent of the employed population, or 500 direct jobs. 2) If the unemployment rate of the Labor Market Area is equal to or less than the national average, the dislocation must be the lesser of four (4) percent of the unemployed population, or 1,000 jobs.

Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(iii) Benefit: The EOF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(iv) Cost: The number of permanent jobs created or retained as per EOF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(v) Low/Moderate Income Benefit: Additional consideration will be given to the proposal for extra benefits or efforts on behalf of low and moderate income persons and families. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from JTPA and Job Service will be part of this evaluation.

(vi) Community and Economic Development: Benefit to community and economic development will focus on how the proposal affects long term developments. This review will also examine the ripple affect of the proposal on the community. Considered in this area will be how the primary and secondary impacts of the proposal meets community needs and furthers community and economic development.

4. Approval Process:

(a) Application: Once the applicant has submitted a Title IX or Title I preapplication to EDA and is working toward a full application, it may submit an EOF application to DECD. DECD staff will review the EOF applications on a first come basis to determine if the threshold criteria have been met. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the application analysis, staff will make one of the following three recommendations to the Development Director for awards:

(i) approval of requested amount and requested or different terms;

(ii) approval of lesser amount and requested or different terms; or,

(iii) rejection.

(c) Allocation: The EOF allocation will be limited to $450,000. EOF proposals that meet all criteria nay be awarded funds until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any further applications.

Section 3. Redistribution of Grant Funds

This section describes the methods by which disencumbered funds and program income is to 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 1990 Community Revitalization 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 will be awarded to the community with the next highest score on the 1991 waiting list or added to the available monies for the 1992 competition. The decisions on which option to take will be based on staff evaluation.

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, funds returned to the State because of disallowed costs, and funds remaining due to the lack of adequate program competition will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be based on staff evaluation. 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.

2. Unallocated State Grant To Local Governments: Unallocated grant funds from the Community Revitalization Program, Phase II Planning Grants, the Development Fund, the Urgent Needs Grant Program the Affordable Housing Planning Grant Program or the Emerging Opportunity Fund will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be based on staff evaluation.

3. State Grant from HUD: Additional BUT) financial allocations to State of Maine following award to local grantees will be added to any open grant or added to the available monies for the next year's competition. The decision on which option to take will be based on staff evaluation. 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.

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 3(B)(1)(d) of this Final Statement, during the selection process. 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 recently encumbered grant. The funds must be 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 3 (B) (1) (d) of this Final 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 new 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 objectives 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 the program income, to manage the activity to be banded and to maintain the required recordkeeping systems for the time period that program income receipts are anticipated.

(e) Program Income Plan Submission: The following schedules must be adhered to when submitting a program income plan:

(i) Community Revitalization and Reserve Grants: during the Phase II process;

(ii) Development Fund: within forty-five (45) days of grant award; and

(iii) Interim Finance Program: with the IFP application.

(iv) Emerging opportunity Fund: with the EOF application.

2. Program Income Special Requirements:

(a) Development Fund Program Income: Development Fund loan repayments are considered program income. Except for those grantees who can adequately demonstrate the reuse of program income for the "sane activity" that generated the program income, all DF loan repayments will be returned to the State and will be placed in a State CDBG Development Fund Revolving Loan Fund 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 60% 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) Emerging Opportunity Fund Program Income: The assignment of program income will be negotiated at the time of grant award.

4. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1992 award may do so by submitting an appeal letter to the Commissioner of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgement regarding qualitative scoring will not be allowed. If an appeal is successful, funds will be reserved for the project tram subsequent CDBG funding.

5. AMENDMENT TO THE FINAL STATEMENT

The State can amend the 1992 Final Statement from time to time in accordance with the same procedures required for the preparation and submission of the proposed statement. In addition, the amendment process will be guided by the State of Maine's Administrative Procedure Act.

EFFECTIVE DATE:

August 27, 1991

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

CONVERTED TO MS WORD:

September 5, 2003

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 8 Community Development Block Grant Program: 1993 Final Statement

Code Me. R. 19-498 Ch. 8 Community Development Block Grant Program: {#sec-19-498-ch.-8 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 8}

1993 FINAL STATEMENT/RULE

1. Program Overview 1

A. CDBG Objectives 1

B. Method of Distribution Structure 1

1. Community Development Methods of Distribution 2

a. Housing Assistance Grants 2

b. Public Facilities/Infrastructure Grants 2

c. Public Service Grants 2

d. Emergency Implementation Grants 2

e. Reserved Grants 2

2. Economic Development Methods of Distribution 2

a. Development Fund 2

b. Regional Assistance Fund 2

c. Micro-Loan Program 2

d. Economic Development Infrastructure Grants 2

e. Interim Finance Program 2

3. Planning/Technical Assistance Methods of Distribution 3

a. Phase II Planning Grants 3

b. General Purpose Planning Grants 3

c. Comprehensive Planning Grants 3

C. State Administration 3

1. General Administration Allocation 3

2. Technical Assistance Administration Allocation 3

D. Program Timeframe, 3

E. Program Budget 3

2. Community Development Methods of Distribution 5

A. Housing Assistance Grants 5

1. Threshold Criteria 5

a. Eligible Applicants 5

b. Ineligible Applicants 5

c. Eligible Activities 5

d. Project Eligibility 5

e. Federal and State Certifications for Local Governments 6

f. Prohibition on Multiple Grants 6

2. Special Program Requirements 7

a. Past Performance 7

b. Exceptions 7

c. Rehabilitation Costs Maximum Housing 7

3. Selection Process 7

a. Phase I Application 7

b. Phase II Project Development 10

4. Approval Process 11

B. Public Facilities/Infrastructure Grants 11

1. Threshold Criteria 12

a. Eligible Applicants 12

b. Ineligible Applicants 12

c. Eligible Activities 12

d. Project Eligibility 12

e. Federal and State Certifications for Local Governments 13

f. Prohibition on Multiple Grants 13

2. Special Program Requirements 14

a. Past Performance 14

b. Exceptions 14

c. Funding Restrictions 14

3. Selection Process 14

a. Phase I Application 14

b. Phase II Project Development 17

4 Approval Process 18

C. Public Service Grants 18

1. Threshold Criteria 19

a. Eligible Applicants 19

b. Ineligible Applicants 19

c. Eligible Activities 19

d. Project Eligibility 19

e. Federal and State Certification for Local Governments 19

2. Special Program Requirements 20

a. Past Performance 20

b. Exceptions 21

c. Funding Restrictions 21

3. Selection Process 21

a. Phase I Application 21

b. Phase II Project Development 23

4. Approval Process 24

D. Emergency Implementation Grants 24

1. Threshold Criteria 25

a. Eligible Applicants 25

b. Ineligible Applicants 25

c. Project Eligibility 25

d. Federal and State Certification for Local Governments 25

2. Special Program Requirements 26

a. Necessary Documentation 26

b. Application Submittal 26

3. Selection Process 27

4. Approval Process 27

E. Reserved Grants 28

1. Threshold Criteria 28

2. Special Program Requirements 29

a. Restrictions an Applicants 29

b. Reasonable Progress 29

c. LMI Expenditures 29

3. Selection Process 29

4. Approval Process 29

5. Economic Development Methods of Distribution 31

A. Development Fund 31

1. Threshold Criteria 31

2. Special Program Requirements 32

a. Necessary and Appropriate 32

b. Financing Plan 32

c. DF Loan 32

d. Repayment Terms 33

e. LMI Benefit 33

3. Selection Process 33

a. Impact 33

4. Approval Process 34

a. Application 34

b. DF Committee Recommendations 35

c. Quarterly Allocation 35

B. Regional Assistance Fund 35

1. Threshold Criteria 35

2. Special Program Requirements 37

a. RAF Funds 37

b. Limit on Amount of RAF Assistance 38

c. Program Income Plan 39

3. Selection Process 39

4. Approval Process 40

a. Application 40

b. Staff Recommendations 40

c. Allocation 41

C. Micro-Loan Program 41

1. Threshold Criteria 41

2. Special Program Requirements 43

a. Past Performance 43

b. Exceptions 43

c. Necessary and Appropriate 43

d. Financing Plan 43

e. Repayment Terms 43

f. Local Loan Procedures 43

3. Selection Process 44

a. Phase I Application 44

b. Phase II Project Development 46

4. Approval Process 46

D. Economic Development Infrastructure Program 47

1. Threshold Criteria 47

2. Special Program Requirements 49

a. Past Performance 49

b. Exceptions 49

c. Grant Termination 49

d. Legally Binding Agreement 49

3. Selection Process 50

a. Phase I Application 50

b. Phase II Project Development 52

4. Approval Process 53

E. Interim Finance Program 53

1. Threshold Criteria 54

2. Special Program Requirements 55

a. Need for Financing 55

b. Commitment of Non-CDBG Funds 55

c. Community Benefit 56

d. Irrevocable Letter of Credit 56

3. Selection Process 56

4. Approval Process 56

5. Planning/Technical Assistance Methods of Distribution 57

A. Phase II Planning Grants 57

1. Threshold Criteria 58

2. Special Program Requirements 58

3. Selection Process 58

4. Approval Process; 58

B. General Purpose Planning Grants 58

1. Threshold Criteria 58

a. Eligible Applicants 58

b. Ineligible Applicants 58

c. Eligible Activities 59

d. Project Eligibility 59

e. Project Benefit 59

f. Need and Capacity 59

g. Federal and State Certification for Local Governments 59

h. Prohibition of Multiple Grants 60

2. Special Program Requirements 60

a. Past Performance 60

b. Exceptions 60

3. Selection Process 60

4. Approval Process 61

C. Comprehensive Planning Grants 61

1. Threshold Criteria 61

a. Eligibility 61

b. Benefit 61

c. Capacity 61

d. Federal and State Certifications for Local Governments 61

2. Special Program Requirements 62

a. Match 62

b. Match Waiver 62

c. State Share Funding Formula 62

d. Growth Management Requirements, 62

3. Selection Process 62

4. Approval Process 63

D. Technical Assistance Grants 63

1. Threshold Criteria 63

2. Special Program Requirements 64

3. Selection Process 64

4. Redistribution of Grant Funds 66

A. Administrative Redistribution of Grant Funds. 66

1. Local Government Grants from the State 66

2. Unallocated State Grants to Local Governments 66

3. State Grants from HUD 66

4. Basis for Redistribution 66

B. Program Income 67

1. General Program Income Requirements 67

a. Program Income Received During the Grant Period 67

b. Program Income Received After the End of a Grant Period 67

c. Program Income Received by the State 67

d. Program Income Plan 68

e. Program Income Plan Submission 68

2. Special Program Requirements 68

a. Development Fund Program Income 68

b. Interim Finance Program Income 69

c. Regional Assistance Fund Program Income 69

d. Micro-loan Program Income 69

6. Appeals 69

7. Amendment to the Final Statement 69

19 489 DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 8: COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM:

1993 FINAL STATEMENT

SUMMARY: The 1993 Final Statement describes the design and the method of distribution of funds in Maine's 1993 Small Cities - Community Development Block Grant (CDBG) Program. The CDBG Program is pursuant to 5 M.R.S.A. §13073. The 1993 Final Statement was prepared by the Department of Economic and Community Development (DECD) following an independent, comprehensive evaluation of the CDBG program as it existed through 1992. As part of the Maine Administrative Procedure Act, DECD held four public hearings to solicit input for this Final Statement Further, the DECD met with the Maine Community Development Advisory Committee,, the Maine Association of Regional Councils and the Maine Community Development Association to gather comment for this document.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The objective of the Maine CDBG Program is to serve as a catalyst for local governments to implement programs which:

1. benefit low and moderate income people;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions;

4. provide the conditions and incentives for further public and private Investment; and

5. foster partnerships between groups of municipalities, State and federal agencies, regional organizations and the private sector to address common community and economic development problems with innovative solutions that maximize resources.

B. METHOD OF DISTRIBUTION STRUCTURE

The DECD, through the Office of Community Development (OCD), designs and offers programs that will allow municipalities to achieve the previously stated CDBG objectives. The purpose of the 1993 Final Statement is to provide units of local government with a description of the selection criteria for each program (called a method of distribution that OCD will use to allocate the CDBG funds among Maine towns and cities. To assist communities in determining which program(s) will meet their needs, we have grouped the 1993 programs under three broad methods of distribution areas: Community Development, Economic Development and Planning/Technical Assistance.

1. Community Development Methods of Distribution

a. housing Assistance Grants: To provide financing to address acute housing needs of low and moderate income persons residing in the State of Maine.

b. Public Facilities/Infrastructure Grants: To provide financing for local infrastructure and public facility activities.

c. Public Service Grants: To address human resource needs in a community by providing funding for operating expenses, equipment and program materials for public service programs.

d. Emergency Implementation Grants: To enable communities to address community development needs having a particular urgency.

e. Reserved Grants: To provide funding for the second year of a CDBG grant initially determined in the previous year.

2. Economic Development Methods of Distribution

a. Development Fund: To provide financial resources to local governments which in turn assist businesses to create/retain jobs for low and moderate income people:

b. Regional Assistance Fund: To provide financial resources to local governments or regional organizations which can use the assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I), Farmer's Home Administration Programs, and Small Business Programs.

c. Micro-Loan Program: To provide communities with funds for small loans to assist existing and new local businesses create/retain jobs for low and moderate income individuals.

d. Economic Development Infrastructure Grants: To provide funding to communities where public infrastructure must be installed or improved to enable an existing or new business to create/retain jobs for low and moderate income people.

e. Interim finance Program: To utilize funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers create housing and jab opportunities for low and moderate income people through short-term loans.

3. Planning/Technical Assistance Methods of distribution

a. Phase II Planning Grants: To assist communities in the final development of their CDBG strategies that address specific community development problems.

b. General Purpose Planning Grants: To provide funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

c. Comprehensive Planning Grants: To enable Maine's municipalities to develop comprehensive plans to prepare for and manage their future growth and development.

C. STATE ADMINISTRATION

1. General Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1992), Section 106(d) (3) (A) is permitted and will utilize $100,000 plus 2% of its annual allotment from the Department of Housing and Urban Development (HUD) to assist in a the State's Small Cities CDBG Program in accordance with Federal, State and local requirements.

2. Technical Assistance Administration Allocation: The DECD, through OCD pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1992), Section 106(d) (5) is permitted and will utilize 1% of its annual allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. PROGRAM TIMEFRAME

The provisions set forth in this Final Statement apply to funds to be awarded in the 1993 grant year which begins with the application deadline of My 14, 1993 and runs approximately one year to the next application deadline.

E. PROGRAM BUDGET

The budget on the next page indicates the manner in which CDBG Funds will be allocated among programs for the 1993 grant year. The total budget is comprised of a federal allocation from; HUD, along with a State match equivalent of up to 2% of the federal allocation. The amount of the 1993 federal allocation will be $12,908,000. The maximum amount available for each program is indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET

GRANT YEAR 1993

Total FY 1993 CDBG Program Budget 1 $12,908,000

Administration 358,160

Technical Assistance Administration 129,080

MAXIMUM BUDGET

1. Housing Assistance Grants 3,000,000

2. Public Facilities/Infrastructure Grants 3,000,000

3. Public Service Grants 300,000

4. Emergency Implementation Grants 300,000

5. Reserved Grants 2,000,000

6. Development Fund 1,000,000

7. Regional Assistance Fund 570,760

8. Micro Loan Program 375,000

9. Economic Development Infrastructure Program 1,200,000

10. Interim Finance Program 2 See Below

11. Phase II Planning Grants 100,000

12. General Purpose Planning Grants 350,000

13. Comprehensive Planning Grants 225,000

1 The total program budget is comprised of a federal allocation of $12,908,000 plus a State match to equal at least $258,160 (which is 2% of the federal allocation).

2 The budget for the interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

SECTION 2. COMMUNITY DEVELOPMENT METHODS OF DISTRIBUTION

A. HOUSING ASSISTANCE GRANTS

The purpose of a Housing Assistance (HA) Grant is to provide financing to address acute housing needs of low and moderate income persons residing in the State of Maine. These needs must be part of a community development strategy which will lead to future public and private investments.

1. Threshold Criteria: The State will distribute Housing Assistance funds to local governments through the annual Housing Assistance Selection Process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Housing Assistance funds from the State. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint housing activities. Multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive HA funds from the State. Except as described in l(a) above, County governments are not eligible applicants.

(c) Eligible Activities: Eligible activities include Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers.

(d) Project Eligibility: Upon receipt by DCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with Housing Assistance funds. Those activities must be included in Section l(c) above and be eligible under 24 CFR, Part 570, Subpart I, .482. Applications will only be accepted for activities directly related to the assistance to, or the creation of residential housing units. In the event that an application contains any proposed activity unrelated to housing, or an activity not listed in Section 1(c) above, the entire application will be judged not to have not the project eligibility criteria. In all cases the applicant will be notified in writing of the e termination made by OCD.

(e) Federal and State Certifications for Local Governments: All communities applying for Housing Assistance funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1) , (1A) and Section 1415-G in the construction of any new residential housing units;

(iv) not attempt to recover certain capital costs of public improvements funded in part with Housing Assistance monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation

(vii) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(ix) provide a local match equivalent to 10 percent of the total grant award.

(f) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one Housing Assistance Grant per grant year.

2. Special Program Requirements: Housing Assistance applicants must also comply with the following special program requirements:

(a) Past Performance: In order to be eligible to apply for the 1993 Housing Assistance program, communities that received CR grants in 1988 must have conditionally, closed their grants by May 14, 1993. Communities that received CR grants in 1989 must have expended loot of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1990 must have obligated 100% of their benefit activity funds by July 14, 1993. Communities that received CR grants in 1991 must have obligated at least 50% of their benefit activity funds by May 14, 1993. Communities that received (MR grants in 1992 must have obligated at least 25% of their benefit activity funds by May 14, 1993.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants in local housing rehabilitation programs will be no more than $15, 000 per unit rehabilitated. In cases where inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or the need for handicapped accessibility must be addressed, an additional $7, 000 per unit nay be made available.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II)

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's housing problems that it would like to address with Housing Assistance funds. The application deadline is May 14, 1993. These applications will be evaluated according to the following criteria. A. minimum score of 85 points out of a possible 100 will be required for an application to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with a Housing Assistance Grant. Points will be awarded in the following categories:

(aa) Scope of Problem (5 points) - Description of the magnitude and nature of the substandard housing in the applicant's area.

(bb) Identification of Problem (5 points) - Description of the process used in identifying the substandard housing problem.

(cc) Life Safety Considerations (5 points) - Description of the frequency, severity and nature of potential threats to health and safety contained in the housing units.

(dd) Energy Efficiency Considerations (5 points) Description of deficiencies that inhibit low and moderate income residents from being able to maintain reasonable energy efficiency standards in an affordable and comfortable manner.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would like to use Housing Assistance funds to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following

(aa) Effectiveness (10 points) - How the proposed solution relates to problems identified in the Problem Statement and how Housing Assistance funds will be used in solving those problems in a cost effective manner.

(bb) Life Safety and Energy Efficiency (10 points) - How the proposed solution addresses serious threats to health and safety and improves energy efficiency of the units to be rehabilitated or created.

(cc) Project Feasibility (10 points) - How the proposed solution will impact the housing problems in a timely manner and the readiness of the applicant to implement the program.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Public Meetings and Hearings (10 points) - A description of the public meetings and. bearings that were bald specific to this application and their role in identifying problems, fostering public comments and proposed solutions.

(bb) Local Organizations, Residents and Public Officials: (10 points) - A description of the roles played by these groups and individuals in the process that led up to this application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Commitments, along with an estimated timeframe regarding when various aspects of the program will be undertaken, may be reviewed. Points will be awarded in the following categories:

(aa) Partnerships: (10 points) A list of those groups that will work in close concert with the applicant on the housing project and a description of how each will provide financial resources or technical assistance.

(bb) Local Commitment:(10 points) A description of the technical and financial resources the applicant and private citizens will provide to the project.

(v) Distress (10 points): OCD will derive a community's distress scare from the following four areas:

(aa) Housing (2.5 points): a composite score consisting of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(bb) Economic Conditions (2.5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the applicant communities plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available. The poverty level percentages will be ranked within the four population categories discussed above.

(b) Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase II. An invitation into Phase II is not a guarantee of funding. These applicants continue the process by completing the following criteria:

(aa) Project Planning: Details of the project including cost estimates and structural analyses.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant to 24 CFR, Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 MR, TV& 570, Subpart I,.483 et. seq., of either providing direct benefit to low and moderate income persons or in emergency circumstances, removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4A. of this Proposed Statement, communities will receive financial assistance, on an as needed basis, in the form of Phase II Planning Grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff.

(iii) Two Year Grant Criteria: Housing rehabilitation activities will not be eligible for a two year grant award. Other eligible activities receiving Housing Assistance funds may be considered for a two year grant award if they meet all three of the following criteria:

(aa) The timeframe required to complete the proposed grant activities must exceed the maximum la month period allowed for a single year grant;

(bb) The total amount of requested funds mast exceed the maximum limit of $400,000 for a single community or $500,000 for a housing partnership for a single year grant; and

(cc) The activities proposed for the second year of the grant must be related to, and necessary to complete, activities proposed for the first year; OR, the proposed second year activities must be related to, and necessary to complete the overall project began in the first year.

4. Approval Process: The emphasis during the second phase will be to develop a partnership between the State, region and community to determine the best project that will meet the community's identified needs. The PDS assigned to the community will work closely with the community to identify eligible solutions. Through this process, the PDS will provide technical assistance to communities in verification of benefit, project cost justification and project budgets and schedules. Those communities successfully completing the Phase II criteria shall contract with DECD in order to receive Housing Assistance funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of the OCD reserves the right to waive this requirement in light of extenuating circumstances.

The maximum grant amount will be $400,000 for one year with an $800,000 maximum for two years. The maximum grant amount for Housing Partnerships formed by more than one applicant, will be $500,000 for one year with a $1,000,000 maximum for two years. Project implementation shall begin upon execution of a contract. OCD staff will remain involved with the community through the end of the project to provide technical assistance and to monitor compliance with federal and State regulations.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The purpose of a Public Facilities/Infrastructure Grant (PFIG) is to provide financing for local infrastructure and public facility activities which are part of a community development strategy which will lead to future public and private investments.

1. Threshold Criteria: The State will distribute PFIG funds to local through the annual Public Facilities/Infrastructure Grant Application Selection Process. The threshold criteria for the process axe listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive PFIG funds from the State. county governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint public facility/infrastructure facilities. Multijurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive PFIG funds from the State. Except as designated in l(a) above, County governments are not eligible applicants.

(c) Eligible Activities: Eligible activities include construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with such projects as water and sewer facilities, non-housing rehabilitation hook-ups, wharfs, flood and drainage improvements, parking, streets, curbs, gutters, sidewalks, fire protection facilities, community, child, senior, and health centers, libraries, salt/sand storage sheds, shelters for the homeless, sheltered workshops, recreational facilities, parks, removal of architectural barricades, downtown revitalization, and new housing construction. An application may include more than one eligible PFIG activity.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with PFIG funds. Those activities mist be included in 1(c) above and be eligible under 24 CFR, Part 570, Subpart I, .482. In the event that an application contains an activity not listed in l(c) above, the entire application will be judged not to have met the project eligibility criteria. In all cases, the applicant will be notified in writing of the determination made by OCD.

(e) Federal and State for Local Governments: All communities applying for PFIG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements, funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from, the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) adhere to ASHRAE/IES 90.1-1989 for energy efficient design and ASHRAE 62-1989 for ventilation requirements in the construction of all commercial and institutional buildings; and

(ix) provide a local match equivalent to 20 percent of the total grant award.

(f) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one PFIG per grant year.

2. Special Program Requirements: PFIG, applicants must also comply with the following special program requirements:

(a) Past Performance: In order to be eligible to apply bar the 1993 program, communities that received CR grants in 1988 must have conditionally closed their grants by May 14, 1993. Communities that, received CR grants in 1989 must have expended 100% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1990 must have obligated 100% of their benefit activity funds by May 14, 1993. Communities that received CR grants irk 1991 mist have obligated at least 50% of their benefit activity funds by May 14, 1993. communities that received CR grants in 1992 must have obligated at least 25% of their benefit activity funds by May 14, 1993.

(b) Exceptions: Grant recipients nay submit a request to DECD for a waiver of this special requirement only under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Funding Restrictions PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other housing activities are eligible in the Housing Assistance Grant program.

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

(a) Phase I Application: The maximum length of a Phase I application is ten pages. It is designed to be a description of a community's problem(s) relating directly to public facilities and infrastructure that it would like to address with CDBG assistance. The application deadline is May 3.4, 1993. Each application will be rated in relation to all other applications.

A minimum score of 85 out of 100 will be necessary for an application to be considered further for funding.

(i) Problem Statement (20 points): The Problem statement is a description of the infrastructure/public facility problems or needs the applicant wishes to address with CDBG assistance. Points will be awarded in the following

(aa) Identification (10 points) - Scope and magnitude of the problems or needs to be addressed with CDBG funds.

(bb) Priority (5 points) - Rank of problems or needs with other local, regional, and/or State problems or needs.

(cc) Health, Safety, Welfare (5 points) - Impact of problem on public health, safety, and welfare.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of what the applicant will do to address problems discussed in the Problem Statement, when the applicant will take actions to solve these problems, and how this will provide a solution to the problems presented. Points will be awarded in the following categories:

(aa) Identification (10 points) - Description of what will be done to solve problems included in the Problem Statement.

(bb) Action Plan (15 points) - Timetable and responsible parties in implementing the solution and solving the problem.

(cc) Feasibility (5 points) - Potential for success and workability of the solution in solving the problem.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problems) and solutions) discussed in the application. Points will be awarded in the following categories:

(aa) Process (5 points) - Discussion of process followed at the local level, including descriptions of public meetings, hearings and other methods to used to solicit citizen involvement.

(bb) Content (10 points) - Extent and results of the participation of citizens in the local process.

(cc) Relevance (5 points) - Connection between citizen participation and Problem Statement and Proposed Solution.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Points will be awarded in the following categories:

(aa) Process (5 points) - Description of what has been done to obtain additional resource commitments.

(bb) Commitments (10 points) - List and description of the status of each resource committed to the solution.

(cc) Relevance (5 points) - Relationship between commitments and Proposed Solution.

(v) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(aa) Housing (2.5 points): a composite score of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(bb) Economic Conditions (2.5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the applicant communities plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available. Poverty level percentages will be ranked within the four population categories discussed above.

(b) Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase II. An invitation into Phase II is not a guarantee of funding. The following must be completed by Phase II participants in order for proposals to be eligible for funding:

(aa) Project Planning: Details of the project including engineering, cost analysis, and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart 1, .482 and are cleared through the environmental review process pursuant to 24 CFR Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I., .483 et. seq., of either providing direct benefit to low and moderate income persons or removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4A of this Proposed Statement, Phase II participants will be eligible for planning grant funds on an as needed basis to assist payment of project development costs. Extent of assistance shall be determined by OCD staff.

(iii) Two Year Grant Criteria: Applicants may be awarded a two year grant if they meet all three of the following criteria:

(aa) The timeframe required to complete the proposed grant activities must exceed the maximum 18 month period allowed for a single year grant;

(bb) The total amount of requested funds must exceed the maximum $400,000 limit for a single year grant; and

(cc) The activities proposed for the second year of the grant must be related to, and necessary to complete, activities proposed for the first year; OR, the proposed second year activities mist be related to, and necessary to complete, the overall project begun in the first year.

4. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-state partnership that will facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A PDS will be assigned to the Phase II participant and will work closely with the community in finalizing project design. Through this process, the community Will be provided technical assistance in verification of benefit, project cost justification, and project budgets and schedules. Successful completion of Phase II criteria will allow the applicant to contract with DECD and became eligible to receive CDBG funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of the OCD reserves the right to waive this requirement in light of extenuating circumstances.

The maximum grant amount will be $400,000 for one year with an $800,000 maximum for two years. Project implementation shall begin upon execution of a contract; all activities mist be cleared through an environmental review process prior to obligating funds. OCD staff will remain involved with the community through the end of the project to provide technical assistance and to monitor compliance with federal and State regulations.

C. PUBLIC SERVICES GRANTS

The purpose of a Public Service Grant (PSG) is to address human resource needs in a community by providing funding for operating expenses, equipment and programs materials for public service programs.

1. Threshold Criteria: The State will distribute PSG funds for public service activities to local governments through semi-annual Public Service Grant Selection Processes. The threshold criteria for the processes are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds from the State. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for programs that serve regions, provided one local government is designated as applicant and participating, local governments consent to such designation. A local government may apply on behalf of a non-profit organization that provides public services in its community.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, and established counties and unorganized territories, except as described in (a), above. Non-profit organizations that provide public services are not eligible to apply directly to DECD for PSG funding.

(c) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job trailing, 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.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with PSG funds. Those activities mist be included in 1(c) above and be eligible under 24 CFR, Part 570, Subpart I, .482. In the event that an application contains any activity that is ineligible, the entire application will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Federal and State Certifications for Local Governments: All communities applying for PSG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Musing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation

(vi) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) provide a local match equivalent to 20 percent of the total grant award; and

(ix) certify that the public service to be provided represents: 1) a new service to the community or, 2) is a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during the 12 months prior to submission of the application.

(f) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one PSG per grant year.

2. Special Program Requirements: PSG applicants must also comply with the following special program requirements:

(a) Past Performance: In order to be eligible to apply for the 1993 PSG program, communities that received CR grants in 1988 must have conditionally closed their giants by May 14, 1993. Communities that received CR grants in 1989 must have expended 100% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1990 must have obligated 100% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1991 must have obligated at least 50% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1992 must have obligated at least 25% of their benefit activity funds by May 14, 1993, or November 14, 1993 depending on the cycle in which an application is submitted.

(b) Exceptions: PSG recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Funding Restrictions: PSG funding is restricted to nonconstruction activities such as program operating, equipment and materials expenses. If applicable, funding for "bricks and mortar" development of public service facilities such as child care centers, homeless shelters and handicapped accessibility renovations must be in place prior to submitting a PSG application. Public service construction activities are considered public facilities and can be included in an application to the PSG program.

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

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's human resource problems that it would like to address with PSG assistance. The application deadlines are May 14, 1993 and November 19, 1993. These applications will be evaluated according to the following criteria. A minimum score of 85 points out of a possible 100 will be required for an application to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with PSG assistance. Points will be awarded in the following categories:

(aa) Identification (10 points): Description/definition of the nature and magnitude of the public service need or problem confronting the applicant.

(bb) Health, Safety and Welfare (10 points): Description of the impact of the problem on individuals within the community and on the community as a whole.

(ii) Proposed Solution(30 points): The Proposed Solution is a description of how the applicant would like to use PSG assistance to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Identification (10 points): Description of how PSG funds will be used to solve the problem described in the Problem Statement.

(bb) Action Plan (10 points): Description of the project timetable and parties responsible for implementing the solution.

(cc) Capacity (10 points): Description of the abilities of the implementing parties to conduct the project activities.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Process and Content (10 points): Description of the process used to involve citizens and a summary of time comments and issues raised.

(bb) Relevance (10 points): Discussion of the connection between the citizen participation and the problems and solutions discussed in the application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Points will be awarded in the following categories:

(aa) Effort (5 points): Description of how the applicant sought other resources to assist the project.

(bb) Status (10 points): A list of commitments and their availability/readiness.

(cc) Relevance (5 points): Discussion of the connection of the other resources to the solution.

(v) Distress (10 points): OCD will derive a community's distress score tram the following two areas:

(aa) Economic Conditions (5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the applicant communities plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(bb) LMI Percentage (5 points): a score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 5 to determine final score for LME percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(b) Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase II. An imitation into Phase II Is not a guarantee of funding. These applicants continue the process by completing the following criteria:

(aa) Project Planning: Details of the project including management plan, equipment costs, and program

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant. to 24 CFR, Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I, .483 et. seq., of either providing benefit to low and moderate income persons or removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management. In addition, the community must provide a plan for the continuation of the service after the conclusion of the PSG funding or must demonstrate that the need will be met during the course of the PSG.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Two Year Grant Criteria: Public Service Grants are not eligible for two year grant award.

4. Approval Process: The emphasis during the second phase will be to develop a partnership between the State, region and community to determine the best project that will meet the community's identified needs. The PDS assigned to the community will work closely with the community to identify eligible solutions. Through this process, the PDS will provide technical assistance in verification of benefit, project cost justification and project budgets and schedules. Those communities successfully completing the Phase II criteria shall contract with DECD in order to receive PSG funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of the OCD reserves the right to waive this requirement in light of extenuating circumstances.

The maximum grant amount will be $50,000 for a single grant year. Project implementation shall begin upon execution of a contract. OCD staff will remain involved with the community through the end of the project to provide technical assistance and to monitor compliance with federal and State regulations.

D. EMERGENCY IMPLEMENTATION GRANTS

The purpose of the Emergency Implementation Grant (EIG) Program is to provide financing that enables a community to address emergency situations that pose immediate and urgent threats to health and safety. The Program is designed to address emergencies that occur due to natural or man-made disasters as well as emergencies that develop from natural or man-made causes over a short period of time into imminent threats of widespread or severe injury or loss of life.

1. Threshold Criteria: EIG Program applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Emergency Implementation funds from the State. County governments may apply on behalf of unorganized territories. Groups of local governments nay apply for regional or joint emergency situations. Multijurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive EIG funds from the State. Except as described in l(a) above, County governments are not eligible applicants.

(c) Project Eligibility: Pursuant to 24 CFR Part 570 Subpart I, .483, the applicant must seek to 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 9 months prior to the submission of an application;

(iii) requires response within 60 days to halt the threat to health and safety;

(iv) the applicant is unable to finance implementation on its own; and.

(v) cannot be addressed with other sources of funding.

(d) Federal and State Certifications for Local Governments: All communities applying for EIG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public: participation

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction an lobbying; and

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any public agencies, or subrecipients which are receiving CDBG funding nay obtain a financial interest or benefit, have an interest in or benefit tram the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities.

2. Special Program Requirements: EIG applicants must meet the following special program requirement:

(a) Necessary Documentation: The emergency situation to be addressed must be of such a nature that it requires immediate action to alleviate the occurrence of or the imminent threat, of widespread or severe injury or loss of life resulting from any natural or man-made cause. EIG applicants will be required to document that the emergency situation bad not developed at the time of the most recent and applicable CDBG assistance program application process and will need to be addressed prior to the next applicable CDBG assistance program application process.

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

3. Selection Process: Communities seeking to undertake a project on the basis of need for emerge implementation mist submit an EIG Program application which includes the following:

(a) documentation that the emergency situation was prompted by natural or man-made disasters or emerged over a short period of time from natural or man-made causes as an imminent threat of widespread or severe injury or loss of life;

(b) certification that the proposal is designed to address an emergency situation and a response is essential within 60 days to initiate action that will halt the threat of widespread or severe injury or loss of life;

(c) information regarding when the disaster occurred or the situation developed into a threat to health and safety;

(d) evidence confirming the Applicant is unable to finance implementation on its own and application for CDBG Community Development funding Is not a viable alternative; and

(e) documentation that other financial resources are not available to implement the proposal.

Emergency Implementation Grants will be made on a first come basis. Prior to consideration of a grant award, all EIG Program proposals must meet the five Threshold Criteria in 1(c) above plus the Special Program requirements in 2 above. Grant proposals that meet these requirements may be awarded grants from the EIG Program, until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: The EIG funds will be available after May 14, 1993. Applications for other emergency proposals will be accepted on the first Thursday of each month. Following acceptance of a complete application, the CDBG Program Manager in OCD shall review the application and verify the information contained therein. If all requirements are verified and funds remain available in the program, staff of the OCD will evaluate each proposal and make recommendations to the Director of the OCD. Notification to the Applicant of the Director's decision will initiate completion of processes necessary for contract award.

The maximum grant amount for an EIG is $150,000.

E. RESERVED GRANTS

The purpose of a Reserved Grant is to provide funding for the second year of a CDBG project Grant initially determined in the previous grant year.

1. Threshold Criteria: reserved grantees meet the following threshold criteria;

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Reserved Grants from the State. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive Reserved Grant funds from the State. Wept as described in l(a) above, county governments are not eligible applicants.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570, Subpart 1, .483;

(d) undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart I, .482, and approved during the 1993 Phase II process;

(e) Federal and State Certifications for Local Governments: All communities applying for CR Reserved Grants must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation

(vi) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients. which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(viii) provide a local match equivalent to 20-50 percent of the total grant award or total project cost.

(f) complete the required CR Reserved Grant application materials.

2. Special Program Requirements: reserved grantees must meet the following special program requirements:

(a) Restriction on Applicants: eligible applicants are restricted to the following communities:

Millinocket

Norridgewock

Orland

Patten

Washburn

(b) Reasonable Progress: evidence that applicants are on line with the 1992 expenditure schedule as submitted in their contract. Reserved Grant communities must have demonstrated reasonable progress in staffing, program design and contracting for their current program.

(c) LMI Expenditures: in the aggregate, 70% of the expenditures proposed by Reserved Grantees must result in benefit to low and moderate income persons.

3. Selection Process: Not applicable.

4. Approval Process: The following actions constitute the approval process for reserved grants:

(a) Applications from Reserved Grant communities will be invited during the 1993 Phase II Process.

(b) Each Reserved Grant application will be reviewed by the community's PDS. The PDS will:

(i) Review status reports of Reserved Grant communities;

(ii) Compare the reserved grant application to the second year of lime project as proposed in the previous year's Phase II process;

(iii) Review activity schedule and management plan for acceptability based on project design and budget; and

(iv) Develop recommendations for the CDBG Program Manager regarding the application's acceptability, grant conditions and funding level.

(c) Recommendations on Reserved Grant applications will be reviewed by the CDBG Program Manager. Based on the information presented, the Program Manager will recommend to the Director and the Commissioner of the DECD that the Reserved Grant community:

(i) Be funded at the requested level;

(ii) Not receive a reserved grant (if ineligible costs were incurred during the administration of the previous year or the project is no longer feasible); or

(iii) Be funded at a reduced level (the amount of reduction will be determined by the changes in the project's activities and schedules as originally proposed or by evidence that the project cannot accomplish its original goals).

(d) The Commissioner of the DECD will announce reserve grant awards during the 1993 Phase II process.

SECTION 3. ECONOMIC DEVELOPMENT METHODS OF DISTRIBUTION

A. DEVELOPMENT FUND

The purpose of the Development Fund (DF) is to provide financial resources to local governments which in turn assist businesses to create jobs for low and moderate income people.

1. Threshold Criteria: DF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds from the State. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement, communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive DF assistance from the State. Except as described in l(a) above, County governments are not eligible applicants.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570, Subpart I. .483, et. seq.;

(d) 51% of the jobs created or retained as a result of CDBG expenditures proposed by the DF applicant are provided to persons of low and moderate income ;

(e) undertake eligible activities, pursuant to 24 CFR Part 570, Subpart I, .482;

(f) Federal and State Certifications for Local Governments: All communities applying for Development Funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public Improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; and

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public allies, or subrecipients which are receiving CDBG, funding nay obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(g) complete the required DF application materials.

2. Special Program Requirements: DF proposals also must comply with the following special program requirements:

(a) Necessary and Appropriate: The DF Loan for profit businesses must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application is to present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment cm; a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate the non-DF financing also must represent new investment.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan. to the business or the developer identified in the DF application. The loan must provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Thresholds regarding interest rates or repayment terms have rot been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance.

(e) LMI Benefit: In the aggregate, 70% of the program expenditures are provided to benefit persons of low and moderate income.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The DF project will be evaluated as a viable business proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(ii) Financial Plan: The financing for the project is in place and legally, binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified accountant, preferably a CPA. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(iii) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash equity injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(iv) DF Loan repayment: Terms of the loan pay back are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG - DF monies for reuse.

(v) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter MD security agreements.

(vi) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(vii) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(viii) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from JTPA and Job Service will also be reviewed.

(ix) Community and Economic Development: The primary and secondary impacts of the DF project on the community's plans for future economic development will be evaluated. The review will also examine the ripple effect of the proposal on the community as a whole.

4. Approval Process:

(a) Application: Applications shall be submitted on the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A. credit analysis will be conducted by DECD or its designee for each job creation proposal. Following staff analyses, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the Director of the OCD. We DF Committee is appointed lay the Director and consists of a representative of local government, a certified public accountant, and attorney, a representative of private financing, a business person, an at-large appointee, and a housing person.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms proposed;

(iii) rejection with staff recommendation for complete/partial resubmission; and

(iv) rejection.

(c) Quarterly Allocation: The quarterly allocation will be limited to $250,000 plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director. The Director also reserves the right to reject any or all applications in any month.

If, while nearing the end of the quarter, available funds are not sufficient to finance creditworthy proposals, the review process will incorporate an objective needs factor (the distress factor described in Section 2.A3.(v). Those proposals with the highest score in the needs factor will receive assistance first.

B. REGIONAL ASSISTANCE FUND

The purpose of the Regional Assistance Fund (RAF) is to provide financial resources to local governments or regional organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA. Public Works Program (Title I or the Farmers Home Administration (FmHa Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's Small Cities CDBG program or conventional lending institutions.

1. Threshold Criteria: RAF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive RAF funds from the State. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a regional or joint RAF project. Multijurisdictional applications require designation of one local government as the lead applicant and consent for that designation. by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, Auburn are not eligible to receive RAF funds from the State.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570, Subpart I,.483 et. seq.;

(d) 51% of the jobs created as a result of CDBG expenditures proposed by the RAF applicant are provided to persons of low and moderate income;

(e) undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart I,.482.

(f) Federal and State Certifications for Local Governments: All communities applying for RAF must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; and

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(g) complete the required RAF application materials; and

(h) be designated by EDA as eligible to receive funds under the Title IX program, and must have submitted a Title IX or Title I preapplication to EDA and be working with EDA toward submission of a full application; or,

(i) be designated by FmHA as eligible to receive funds under the either the Rural Business Enterprise Grant or the Intermediary Relending Program and be working with FmHA toward submission of a full application; or,

(j) be designated by the appropriate organization providing matching funds as eligible to receive funds.

2. Special Program Requirements: RAF proposals also must comply with the following:

(a) RAF Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve. RAF funds for the applicant, and an RAF Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated RAF funds as a match to leverage additional funds. Depending on the matching requirements, requests to use funds from, the reserve may have to meet additional special requirements that are similar to those described in Section 3.A.2. (a and b) of this Final Statement.

(i) EDA Title IX Economic Adjustment Assistance defined: Funds under the Title IX Program are used to assist areas experiencing long-term economic deterioration (LTED) and areas threatened or Impacted by sudden or severe economic dislocation (SSED).

Long-term economic deterioration (LTED): The LTED Program assists eligible applicants to develop and/or implement strategies designed to halt and reverse the long-term decline of their economies. The most common type of activity funded under the LTED Program is Revolving Loan Funds (RLFs), although other types of eligible Title IX activity may be funded.

Sudden and swore economic dislocation (SSED): The SSED Program assists eligible applicants to respond to actual or threatened job losses (dislocation) and other severe economic adjustment problems. It is designed to help communities prevent a sudden, major job loss; to reestablish employment opportunities and facilitate community adjustment as quickly as possible after one occurs; or to meet special needs resulting from severe changes in economic conditions. SSED assistance is intended to respond to permanent rather than temporary job losses. Assistance may be in the form of a grant to develop a strategy to respond to the dislocation (Strategy Grant) ox, a grant to implement an EDA approved strategy (Implementation grant).

In light of the current high level of economic distress in rural areas, EDA is particularly interested in Title IX projects designed to mitigate serious rural economic adjustment problems.

(ii) EDA Title I Public Works Program defined: Funds under Title I Program are used to assist distressed communities attract new industry, encourage business expansions and generate long-term, private sector jobs through projects to improve water and sewer facilities primarily serving industry, build access roads to industrial parks or sites, and construct business incubator buildings.

(iii) FmHA Rural Business Enterprise Grant: Grants are made to finance and facilitate development of small and emerging private business enterprises in rural areas.

(iv) FmHA Intermediary Relending Program: Grants are used to finance business facilities and community development projects in rural areas.

(b) Limit on Amount of RAF assistance: EMS region of the State will be eligible for one RAF grant. Additional grants within regions will be made at the discretion of the Director of OCD. The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan, funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantees assignee with the approval of DECD.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success:

LTED: To receive funding under the LTED/RLF Program, an area must be experiencing at least one of three economic problems: 1) very high unemployment; 2) low per capita income; or, 3) chronic distress (failure to keep pace with national economic growth trends over the last five years). Priority will be given to those areas with two or more of these indicators.

SSED: To receive priority consideration for funding under the SSED Program, an area must show actual or threatened permanent job losses that exceed the following threshold criteria. 1) If the unemployment rate of the labor Market Area exceeds the national average, the dislocation must be the lesser of four (4) of the employed population, or 500 direct jobs. 2) If the unemployment rate of the Labor Market Area is equal to or less than the national average, the dislocation must be the lesser of four (4) percent of the unemployed population, or 1,000 jobs.

(ii) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(iii) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(iv) Cost: The number of permanent jobs created or retained as per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars. resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(v) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from JTPA and Job Service will also be reviewed.

(vi) Community and Economic Development: The primary and secondary impacts of the RAF project an the community's plans for future economic development will be evaluated. This review will also examine the ripple affect of the proposal on the community as a whole.

4. Approval Process:

(a) Application: Once the applicant has submitted a preapplication to the appropriate agency is working toward a full application, it may submit an RAF pre-application to DECD. DECD staff will review the RAF pre-applications on a first come basis to determine if the threshold criteria and special program requirements have been met. If so and when the application process has been successfully completed, the applicant will be invited to continue into the project development phase where the CDBG pail: of their project will be more fully developed. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OCD for awards:

(i) approval of requested amount and requested or different terms;

(ii) approval of lesser amount and requested or different terms; or,

(iii) rejection.

(c) Allocation: The RAF allocation will be $570,760 and will be available after May 14, 1993. RAF proposals that meet all criteria may be awarded funds until the amount of funds available in the program has been committed. Having committed all funds in the programs the State reserves the right not to accept any further applications.

C. MICRO-LOAN PROGRAM:

The purpose of the Micro-loan Program is to provide Maine communities with funds to assist existing and new businesses create or retain jobs for low and moderate income individuals. These needs must be part of a community development strategy which will lead to future public and private investments.

Communities are encouraged to enter into partnerships to request Micro-Loan assistance when demand is sufficient on a regional basis and communities would be better served through at regionally administered loan program.

1. Threshold Criteria: The State will distribute funds to communities to establish a commercial loan program through the annual Micro-Loan application process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Micro-Loan funds tram the State. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint Micro-loan programs. Multijurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive Micro-Loan funds from the State. Except as described in 1(a) above, County governments are not eligible.

(c) Eligible Activities: Eligible activities include the establishment of a local commercial loan program for the purpose of assisting for-profit and non-profit businesses.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with Micro-Loan funds. Those activities mist included in l(c) above and be eligible under 24 CFR, Part 570, Subpart I 482. Under this program, activities that construct, support or assist housing related projects are ineligible to receive Micro-Loans. Applications will only be accepted for the development of a Micro-Loan program. In the event that an application contains any proposed activity unrelated to We establishment of a Micro-Loan Program, or the activity listed in Section l(c) above, the entire application will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) 51% of the jobs created or retained as a result of Micro-Loan expenditures must be made available to or taken by persons of low and moderate income.

(f) Federal and state Certifications for Local Governments: All communities applying for Micro-Loan funds must certify that they will:

(i) minimize displacement and adhere to a displacement policy set forth, by Section 104(d) of the Housing and Community Development Act of 1974, as amended.

(ii) comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public participation

(v) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction an lobbying; and

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed Official of State or local government or of any designated public agencies, or subparticipants which are receiving CDBG funding nay obtain a Financial interest in any contract, subcontract or agreement with respect to CDBG activities.

(g) Prohibition on multiple Grants: Units of local government and unorganized territories may not benefit from more than one Micro-Loan Program per grant year.

2. Special Program Requirements: Micro-Loan applicants are regulated by the following general program requirements:

(a) Past Performance: In order to be eligible to apply for the 1993 Micro-Loan Program, cities that received CR grants in 1988 mist have conditionally closed their grants by May 14, 1993.

Communities that received CR grants in 1989 must have expended 100% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1990 must have obligated 100% of their benefit activity funds kg, May 14, 1993. Communities that have received CR grants in 1991 must have obligated at least 50% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1992 must have obligated at least 25% of their benefit activity funds by May 14, 1993.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by the federal government. Documentation must be provided that the project cannot proceed without Micro-Loan participation.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide up to 100% of the financing for loans up to $15,000. Micro-Loans that exceed $15,000 require a dollar-for-dollar match for the portion of the loan that exceeds $15,000. Project activities and use of funds to calculate the non Micro-Loan financing must represent a new investment or a new project.

(e) Repayment Terms: Thresholds regarding interest rates or repayment terms for individual loans have not been established. The community reviewing the loan will establish these terms based on circumstances of the loan proposal.

(f) Local Loan Procedures: The procedure that the community uses to distribute loans must be certified by the OCD in Phase II of the grant process. OCD will generate guidelines for local loan procedures. A loan application must initially be reviewed by a local loan review committee. The review committee must determine that the assistance provided is commensurate with the community benefits that will accrue from the project.

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

a. Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's business problems that it would like to address with Micro-Loan funds. The application deadline is May 14, 1993. These applications will be evaluated according to the following criteria. A minimum score of 85 points out of a possible 100 will be required for an application to be further considered for funding.

(i) Problem Statement (30 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with Micro-Loan funds. Points will be awarded in the following categories:

(aa) Scope of Problem (15 points) - Description of the magnitude and nature of the lack of job opportunities and lack of business capital in the applicant's area.

(bb) Identification of Problem (15 points) - Description of the need for these funds and bow that need was identified.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use Micro-Loan funds to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Scope of Solution (15 points) - Description of the actions that the applicant will undertake in the use of Micro-Loan Program funds to resolve the problem(s) presented in the Problem Statement.

(bb) Capacity (15 points) - Description of the capacity that the applicant has to conduct those efforts specified in the Scope of Solution section and the history of the community in administering lending programs.

(iii) Citizen Participation (30 points): Citizen Participation is a descriptive demonstration of how business groups, local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Business Involvement (15 points) - Description of the involvement that the applicant's business community has had in the development of the application. This should include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(bb) General Citizen Involvement (15 points) - Description of live involvement that the general citizenry has had concerning the concept of assisting business. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Associations, Community Groups, Planning Board, and the Board of Selectmen.

(v) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(aa) Unemployment (5 points): a score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 5 points for this category to receive a final score. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(bb) LMI Percentage (5 points): a score determined by taking the community's most recent LMI percentage and dividing it by 51 percent. This figure will be multiplied by the 5 points for this category to, receive a final score. Communities with an LMI population greater than 51% will automatically receive the total points allowed.

b. Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase II. It is important to remember that an invitation is not a guarantee of funding. These applicants continue the process by completing the following criteria:

(aa) Project Planning: Details of the project including cost analysis and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant to 24 CFR, part 58.

(cc) Project Benefit: The proposed activities are verified to meet the national objective pursuant to 24 CFR, Part 570, Subpart 1, .483 et. seq. of providing direct benefit to low and moderate income persons.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4A of this Proposed Statement, communities will receive financial assistance, on an as needed basis, in the form of Phase II Planning Grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff .

Two Year Grant criteria: Micro-Loan Programs are not eligible for a two year grant award.

4. Approval Process: The emphasis during the second phase will be to develop a partnership between the State, region and community to determine the best project that will meet the community's identified needs. The PDS assigned to the community will work closely with the community to identify eligible solutions. Through this process, the PDS will provide technical assistance to the community in verification of benefit, project cost justification and project budgets and schedules. Those communities successfully completing the Phase II criteria shall contract with DECD in order to receive Micro-Loan funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of the OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. OCD staff will remain involved with the community through the end of the project to provide technical assistance and to monitor compliance with federal and State regulations.

The maximum grant amount is $125,000 for a single grant year. The level of funding will be established in Phase II pursuant to the level of demand that can be demonstrated by the applicant.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The purpose of the Economic Development infrastructure (EDI) Program is to provide Maine communities with funds in which to develop or rehabilitate public infrastructure so that existing and new businesses can create or retain jobs for low and moderate income individuals.

1. Threshold Criteria: The State will distribute EDI funds through the EDI Program. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive EDI Program funds from the State. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint EDI projects. Multijurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive EDI funds from the State. Except as described in 1(a) above, county governments are not eligible.

(c) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with such public infrastructure projects as water and sewer facilities, flood and drainage improvements, parking, streets, curbs, gutters, sidewalks, etc. which are deemed necessary to create or retain jobs for low and moderate income persons.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with EDI funds. Those activities must be included in l(c) above and be eligible under 24 CFR, Part 570, Subpart I 482. Applications will only be accepted for infrastructure related activities that lead to job creation or retention. In the event that an application contains any proposed activity unrelated to this, or an activity not listed in Section 1(c) above, the entire application will be judged not to have met the project eligibility criteria. in all cases the applicant will be notified in writing of the determination made by OCD.

(e) 51% of the jobs created or retained as a result of EDI expenditures must be made available to or taken by persons of low and moderate income.

(f) Federal and State certifications for Local. Governments: All communities applying for EDI funds must certify that they will:

(i) minimize displacement and adhere to a displacement policy set forth by Sect. 104(d) of the Housing and Community Development Act of 1974, as amended.

(ii) comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) met all required State and Federal public participation

(v) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities; and

(vii) Provide a local match equivalent to 20 percent of the total grant award.

(g) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one EDI grant per grant year.

2. Special Program Requirements: EDI Program applicants are regulated by the following special program requirements:

(a) Past Performance: In order to be eligible to apply for the 1993 EDI Program, communities that received CR. grants in 1988 must have conditionally, closed their grants by May 14, 1993. Communities that received CR grants in 1989 must have expended 100% of their benefit activity funds by may 14, 1993. Communities that received CR grants in 1990 must have obligated 100% of their benefit activity funds by May 14, 1993. Communities that have received CR grants in 1991 must have obligated at least 50% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1992 must have obligated at least 25% of their benefit activity funds by May 14, 1993, September 14, 1993, or January 14, 1994 depending on the cycle in which an application is submitted.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Grant Termination: The OCD reserves the right to terminate a community's EDI grant if progress on the project is not apparent within 12 months from the date of signing a contract with DECD.

(d) Legally Binding Agreement: The applicant must have a firm and legally binding agreement with the party that is proposing to create or retain jobs with EDI Program funds at the time of application. This agreement must include but not limited to: details of the project's timeframe, the entire funding package of the project, and the number of proposed jobs for low and moderate income persons created or retained by the use of EDI funds.

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

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's economic development problems that it would like to address with EDI funds.

Applications for the EDI Program will be accepted three times during the grant year. The application deadlines are: May 14, 1993, September 14, 1993, and January 14, 1994. These applications will be evaluated according to the following criteria. A minimum score of 85 points cut of a possible 100 will be required for an application to be further considered for funding,

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with an EDI Program. Points will be awarded in the following categories:

(aa) Scope of Problem (10 points) - Description of the problem facing a specific business in the community, or the community as a whole, in relation to job creation or retention activities.

(bb) Identification of Problem (10 points) - Description of the need for these funds and how that need was identified.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use EDI Program funds to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Scope of Solution (10 points) - Description of the activities that the applicant will undertake in the use of EDI Program funds to resolve the problem(s) presented in the Problem Statement.

(bb) Role of Funding (10 points) - Description of the role that EDI funds play in the overall project and the status of other funding sources integral to project: completion.

(cc) Project Feasibility (10 points) - Description of how the project will progress within 12 months from the date of signing a contract with DECD and any obstacles that may be present that could hinder the project.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how business groups,, local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Business Involvement (10 points). Description of the involvement that the specific business or applicant's business community, whichever the case, has had in the development of this application. This should include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(bb) General Citizen Involvement (10 points) - Description of the involvement that the general citizenry has had concerning the concept of assisting businesses. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Association, Community Groups, Planning Board, and the Board of Selectmen.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. In the evaluation of this section, commitments that have been obtained and that are legally binding will receive greater scores than those that are not. Points will be awarded in the following categories:

(aa) Sources (10 points): A description of all the other sources of funding that have been secured for this specific project, the arrangements that have been made to secure these funds, and a detailed description of the status of these sources at the time of this application.

(bb) Timeframe (10 points): A description of when the funds mentioned above will be injected into the overall project.

(v) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(aa) Unemployment (5 points): a score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 5 points for this category to receive a final score, Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(bb) LMI Percentage (5 points): a score determined by taking the community's most recent LMI percentage and dividing it by 51 percent. This figure will be multiplied by the 5 points for this category to receive a final score. Communities with an LMI population greater than 51% will automatically receive the total points allowed.

(b) Phase II Project Development:

(i) Invitation to Proceed: Successful applicants will be invited to proceed to Phase 11. It is important to remember that an invitation is not a guarantee of funding. These applicants continue the process by completing the following criteria:

(aa) Project Planning: Details of the project including engineering, cost analysis and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review .process pursuant to 24 CFR, Part 58.

(cc) Project Benefit: The proposed activities are verified to meet the national objective pursuant to 24 CFR, Part 570, Subpart I., .483 et. seq. of providing direct benefit to low and moderate income persons.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4.A. of this Proposed Statement, communities will receive financial assistance, on an as needed basis, in the form of Phase II Planning Grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff.

(iii) Two Year Grant Criteria: EDI Programs are not eligible for two year grant awards.

4. Approval Process: The emphasis during Phase II will be to develop a partnership between the State, region and community to determine the best project that will meet the community's identified needs. The PDS assigned to the community will work closely with the community to identify eligible solutions. Through this process, the PDS will provide technical assistance in verification of benefit, project cost justification and project budgets and schedules. Those communities successfully completing the Phase II criteria shall contract with DECD in order to receive EDI funds. Communities not having a signed contract with DECD within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

The maximum grant amount will be $400,000 for a single grant year. OCD reserves the right to use program funds allotted for the next. application cycle for current applications, provided that the current application being considered for funding meets all the requirements and obtains the minimum score. OCD's decision also resides on its determination of the feasibility of the project.

Project implementation shall begin upon execution of a contract. OCD staff will remain involved with the community through the end of the project to provide technical assistance and to monitor compliance with federal and State regulations.

E. INTERIM FINANCE PROGRAM

The purpose of the Interim Finance Program (IFP) is to utilize funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria: IFP applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive IFP funds from the State. County governments may apply on behalf of unorganized territories. Groups of local governments, acting as a partnership, may apply, provided one unit is designated as the lead applicant.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, and established counties and unorganized territories, except as described in 1 (a), above.

(c) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons (24 CFR Part 570, Section I, .483(a)(4)),

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households (24 CFR Part 570, Subpart I, .483(a)(3)), or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households (24 CFR Part 570, Subpart I, .483(a)(3)(i)).

(d) Undertake eligible activities pursuant to 24 CFR 570, Section I, .482 et seq.

(e) Federal and State Certifications for Local Governments: All communities applying IFP funds must certify that they will:

(i) minimize displacement and adhere to a displacement policy set forth by Section 104(d) of the Housing and Community Development Act of 1974, as amended.

(ii) comply, with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public participation requirements;

(v) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction. on lobbying; and

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities.

(f) Complete the required IFP application materials.

(g) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500, 000 minimum requirement if OCD determines that it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following special program requirements:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. That need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project's rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate that the proposed rate and term have been set to ensure that the assistance provided is the minimum needed and that the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the Interim Finance Program grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: IFP grants will be made on a first come basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available In the State's letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of its intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based an the project meeting all program requirements.

SECTION 4. PLANNING/TECHNICAL ASSISTANCE METHODS OF DISTRIBUTION

A. PHASE II PLANNING GRANTS

The purpose of the Phase II Planning Grant is to enable communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold Criteria: The State will distribute Phase II funds to communities or community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, and Micro-loan Programs are eligible to apply for and receive Phase II Planning Grants from the State.

(b) Eligible Activities: Phase II Planning funds may be used for planning activities necessary to complete Phase II requirements as described in applicable funding programs listed in 1(a) above.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and the means to execute the Phase II Planning grant award.

(d) Federal and State Certifications for Local Governments: All communities applying for Phase II Planning Grants must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) adhere to applicable Energy Efficiency Building Performance Standards;

(iv) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation

(vii) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; and

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding nay obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities.

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete Phase II tasks.

4. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive and as needed basis.

B. GENERAL PURPOSE PLANNING GRANTS

The purpose of the General Purpose Planning Grant (GPPG) program is to provide financial assistance to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria: The State will award GPPG funds to communities or community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government Maine, including plantations, are eligible to apply for and receive GPPG funds from the State. County governments may apply on behalf of unorganized territories. Groups of local governments, acting as a partnership may apply provided one unit is designated as the lead applicant.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, and Auburn and established counties and unorganized territories, except as described in (a), above.

(c) Eligible Activities: GPPG funds may be used for planning only activities that include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities axe not eligible.

(d) Project Eligibility: All activities undertaken with, GPPG funds must be eligible under 24 CFR Part 570, Subpart I, .482. All applications containing proposed ineligible or non-planning activities will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Project Benefit: The proposed activities must meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I, .483, (b) (5), (c) (3) or (d), of either providing direct benefit to low and moderate income persons, removing slum or blighting influences within that community, or meeting community development needs having a particular urgency.

(f) Need and capacity: Demonstrate a need for financial assistance not to exceed $10,000 and the means to execute the grant award.

(g) Federal and State certifications for Local Governments: All communities applying for GPPG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the civil Rights Acts of 1964 and 1968;

(iii) adhere to applicable Energy Efficiency Building Performance Standards;

(iv) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation

(vii) comply with the Federal requirements of section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(ix) if the project that was assisted with GPPG funds was to be implemented, it would meet one of the national objectives of the CDBG program.

(h) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one General Purpose Planning Grant during the same grant year.

2. Special Program Requirements: GPPG applicants must also comply with the following, special program requirements:

(a) Past Performance: In order to be eligible to apply for the 1993 General Purpose Planning Grant program, communities that received CR grants in 1988 must have conditionally closed their grants by May 14, 1993. Communities that received CR grants in 1989 must have expended 100% of their benefit activity funds by May 14 1993. Communities that received CR grants in 1990 must have obligated 100% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1991 must have obligated at least 50% of their benefit activity funds by May 14, 1993. Communities that received CR grants in 1992 must have obligated at least 25% of their benefit activity funds by May 14, 1993.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the. following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

3. Selection Process: Applications for GPPG's will be accepted on a first come basis beginning May 14, 1993. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirement. Proposals that meet the criteria may be awarded GPPG funds, until the amount of funds available have been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: Following the acceptance of a complete application, the OCD staff shall review the application and verify the information contained therein. Applications will be funded contingent upon a review of the applicant's ability to meet State and federal certifications for local governments and the four selection review criteria, which are: (1) description of problem; (2) development of strategy; (3) local need; and (4) benefit. If all requirements are verified and funds remain available in the program, the Director will make a grant award.

C. COMPREHENSIVE PLANNING GRANTS

The comprehensive Planning Grant (CP) program is intended to enable Maine's communities to develop comprehensive plans to prepare for and manage their future growth and development. The plans will help communities recognize strengths and weaknesses while identifying their planning goals for a ten year period. Plans mist be consistent with established State goals to protect natural and cultural resources, enhance economic development, affordable housing and recreational opportunities and identify and plan for public facilities needs.

1. Threshold Criteria: The State will award CP grants to communities, provided they meet the following threshold criteria:

(a) Eligibility: Have not previously received a planning assistance grant from the DECD;

(b) Benefit: At least 51% of their population is low and moderate income;

(c) Capacity: Demonstrate the means and ability to complete the planning program.

(d) Federal and State Certifications for Local Governments: All communities applying for CP funds must certify that they will:

(i) minimize displacement and adhere to a displacement policy set forth by Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public participation requirements;

(v) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying; and

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities.

2. Special Program Requirements: The following provisions will apply to the CP program:

(a) Match: communities will provide a local match to the grant funds of 35% of the total project, (85% grant/15% local share);

(b) Match Waiver: the local match requirement may be reduced at the discretion of the OCD when a community makes such a request and demonstrates an inability to fund the local match;

(c) State Share Funding Formula: grant funds (State share) are provided in accordance with the following formula, based upon 1987 State census data: all communities with populations of 500 or less receive $13,500, for each additional 500 persons a community will receive $1,250, actual amounts will be determined by interpolation, to a maximum grant amount of $60,000;

(d) Growth Management Requirements: communities participating in the Comprehensive Planning Grant program funded by Community Development Block Grant funds will be bound by the requirements of the DECD's Growth Management Program pursuant to Title 30-A, MRSA, Chapter 187.

3. Selection Process: Communities will be made offers of CP grants by OCD in the following order of preference:

(a) Planning Assistance Program "round #4" towns, listed in the order of "priority point ranking" as established by OCD in 1990: Somerville, Isle Au Haut, Brooks, Rome, Caratunk, Jackson, Brooklin, Wellington Parkman, Willimantic, Upton, Phillips, Corinna;

(b) eligible communities over 1,000 in population (11 identified communities that meet threshold criteria l(a) and 1(b): Addison, Anson, Canaan, Castine, Cherryfield, Jonesport, Machiasport, Millbridge, Van Buren, Vinalhaven, Woodland, (within the category, selections will be made by lottery);

(c) selection of all other communities will be made by lottery, with allowances to foster regional distribution throughout the State;

(d) each community, upon receipt of notification of a grant offer, will be provided 45 calendar days to accept the funds. After this time period has lapsed, funds initially reserved for that community will be made available to the next community based upon the selection process (a-d).

(e) Funds will be distributed in the following manner:

(i) Beginning June 1, 1993 with Ilia first community listed in 3(a), funds will be reserved for communities up to the level of funds in the pool.

(ii) If a community rejects the funds, or requests a reduced level from the amount of the offer, the next community as established in the selection process will Joe offered funds.

(iii) offers will be made until all bulk are exhausted or all. communities that wish to participate have received grants.

4. Approval Process: OCD staff will review threshold criteria, make grant offers based upon selection criteria and enter into contracts, including detailed work plan programs, with selected communities.

D. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance (TA) Grant Program is to enable Councils of Governments within planning districts to provide information about the CDBG program to communities in their area and to assist interested communities in preparing grant applications in the program categories.

1. Threshold Criteria: The State will award TA grants to Councils of Government provided it meets the following threshold criteria:

(a) the recipient is a Council of Governments;

(b) the recipient is governed by a board with representatives of local governments from the district for which the award is made; and

(c) the recipient has the staff capacity to provide community development technical assistance.

2. Special Program Requirements: Not applicable.

3. Selection Process: Councils of Governments will only receive funding to reimburse community Development Block Grant Technical Assistance expenses incurred beginning on the first day of October 1993 OR since the time their most recent contract expired. A description of the technical assistance tasks provided, with a timeframe, must be submitted with each request for payment for reimbursement.

The DECD will execute contractual agreements for the period of October 1, 1993 - June 30, 1994 OR from the date of the most recent contract end date through June 30, 1994.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET

GRANT YEAR 1993

Total FY 1993 CDBG Program Budget 1 $12,908,000

Administration 358,160

Technical Assistance Administration 129,080

MAXIMUM BUDGET

1. Housing Assistance Grants 3,000,000

2. Public Facilities/Infrastructure Grants 3,000,000

3. Public Service Grants 300,000

4. Emergency Implementation Grants 300,000

5. Reserved Grants 2,000,000

6. Development Fund 1,000,000

7. Regional Assistance Fund 570,760

8. Micro Loan Program 375,000

9. Economic Development Infrastructure Program 1,200,000

10. Interim Finance Program 2 See Below

11. Phase II Planning Grants 100,000

12. General Purpose Planning Grants 350,000

13. Comprehensive Planning Grants 225,000

14. Technical Assistance Grants 200,000

1 The total program budget is comprised of a federal allocation of $12,908,000 plus a state match to equal at least $258,160 (which is 2% of the federal allocation).

2 The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

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.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1993 award may do so by submitting an appeal letter to the Commissioner of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgement regarding qualitative scoring will not be allowed. If an appeal is successful, funds will be reserved for the project from available or subsequent CDBG funding.

SECTION 7. AMENDMENT TO THE FINAL STATEMENT

The State can amend the 1993 Final Statement from time to time in accordance with the same procedures required for the preparation and submission of the proposed statement. In addition, the amendment process will be guided by the State of Maine's Administrative Procedure Act.

History

• STATUTORY AUTHORITY: 5 M.R.S.A Section 13058(3)
• EFFECTIVE DATE: March 27, 1993
• AMENDED: March 25, 1994 (EMERGENCY)
• AMENDED: May 24, 1994 - Sec. 4 (D)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• CONVERTED TO MS WORD: May 12, 2005
• CONVERTED TO MS WORD: 19-498 Chapter 8 page v
• CONVERTED TO MS WORD: 19-498 Chapter 8 page 5

Chapter 9 Community Development Block Grant Program: 1994 Final Statement

Code Me. R. 19-498 Ch. 9 Community Development Block Grant Program: {#sec-19-498-ch.-9 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 9}

1994 FINAL STATEMENT

1. Program Overview 1

A. CDBG Objectives 1

B. Method of Distribution Structure 1

1. Community Development Methods of Distribution 2

2. Economic Development Methods of Distribution 2

3. Planning/Technical Assistance Methods of Distribution 3

C. State Administration 3

1. General Administration Allocation 3

2. Technical Assistance Administration Allocation 3

D. Program Timeframe 4

E. Program Budget 4

2. Community Development Methods of Distribution 6

A. Housing Assistance Grants 6

1. Threshold Criteria 6

2. Program Priorities 8

3. Special Program Requirements 8

4. Selection Process 8

5. Approval Process 12

B. Public Facilities/Infrastructure Grants 12

1. Threshold Criteria 12

2. Program Priorities 14

3. Special Program Requirements 15

4. Selection Process 16

5. Approval Process 19

C. Public Service Grants 19

1. Threshold Criteria 19

2. Program Priorities 21

3. Special Program 21

4. Selection Process 22

5. Approval Process 24

D. Urgent Need Grants 25

1. Threshold Criteria 25

2. Special Program Requirements 26

3. Selection Process 26

4. Approval Process 27

E. Reserved Grants 27

1. Threshold Criteria 27

2. Special Programs Requirements 28

3. Selection Process 29

4. Approval Process 29

5. Economic Development Methods of Distribution 30

A. Development Fund 30

1. Threshold Criteria 30

2. Special Program Requirements 31

3. Selection Process 32

4. Approval Process 33

B. Regional Assistance Fund 34

1. Threshold Criteria 34

2. Special Program Requirements 35

3. Selection Process 37

4. Approval Process 38

C. Micro-Loan Program 38

1. Threshold Criteria 38

2. Program Priorities 40

3. Special Program Requirements 40

4. Selection Process 41

5. Approval Process 44

D. Economic Development Infrastructure Program 44

1. Threshold Criteria 44

2. Program Priorities 46

3. Special Program Requirements 46

4. Selection Process 47

5. Approval Process 49

E. Interim Finance Program 50

1. Threshold Criteria 50

2. Special Program Requirements 51

3. Selection Process 52

4. Approval Process 52

5. Planning/Technical Assistance Methods of Distribution 52

A. Phase II Planning Grants 52

1. Threshold Criteria 52

2. Special Program Requirements 53

3. Selection Process 53

4. Approval Process 54

B. General Purpose Planning Grants 54

1. Threshold Criteria 54

2. Special Program Requirements 55

3. Selection Criteria 56

4. Phase II Project Development 56

5. Allocation 57

C. Growth Management Planning Grants 57

1. Threshold Criteria 57

2. Special Program Requirements 58

3. Selection Process 59

4. Approval Process 59

D. Technical Assistance Grants 59

E. Quality Main Street Strategy Grants 62

1. Threshold Criteria 62

2. Special Program Requirements 63

3. Selection Process 64

4. Phase II Project Development 64

5. Allocation 64

F. Defense Conversion Planning Grants 65

1. Threshold Criteria 65

2. Special Program Requirements 66

3. Selection Process 67

4. Phase II Project Development 67

5. Allocation 68

6. Redistribution of Grant Funds 68

A. Administrative Redistribution of Grant Funds 68

1. Local Government Grants from the State 68

2. Unallocated State Grants to Local Governments 68

3. State Grants from HUD 68

4. Basis for Redistribution 68

B. Program Income 69

1. General Program Income Requirements 69

2. Special Program Requirements 69

3. Appeals 71

4. Amendment to the Final Statement 71

Chapter 9: COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM: 1994 FINAL STATEMENT

SUMMARY: The 1994 Final Statement describes the design and the method of distribution of funds in Maine's 1994 Small Cities - Community Development Block Grant (CDBG) Program. The CDBG Program is administered pursuant to 5 M.R.S.A. §13073. The 1994 Final Statement was prepared by the Department of Economic and Community Development (DECD) following a review of the 1993 CDBG Program. As part of the Maine Administrative Procedure Act, DECD held three public hearings to solicit input for this Final Statement. Further, the DECD met with the Maine Community Development Advisory Committee, the Maine Association of Regional Councils and the Maine Community Development Association to gather comments for this document.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The objective of the Maine CDBG Program is to serve as a catalyst for local governments to implement programs which:

1. benefit low and moderate income people;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, State and federal entities, regional organizations and the private sector to address common community and economic development problems with innovative solutions that maximize resources.

B. METHOD OF DISTRIBUTION STRUCTURE

The DECD, through the Office of Community Development (OCD), designs and offers programs allowing municipalities to achieve CDBG stated objectives. Toe purpose of the 1994 Final Statement is to provide units of local government with a description of the selection criteria for each program (called a method of distribution) that OCD will use to allocate CDBG funds among Maine communities. To assist communities in determining which program(s) best meet their needs, we have grouped the 1994 programs under three broad methods of distribution areas: Community Development, Economic Development and Planning/Technical Assistance.

1. Community Development Methods of Distribution

a. Housing Assistance Grants: To provide financing to address acute housing needs of low and moderate income persons residing in the State of Maine.

b. Public Facilities/Infrastructure Grants: To provide financing for local infrastructure and public facility activities.

c. Public Service Grants: To address human resource needs in a community by providing funding for operating expenses, equipment and program materials for public service programs.

d. Urgent Need Grants: TO enable communities to address community development needs having a particular urgency.

e. Reserved Grants: To provide funding for the second year of a Housing Assistance or Public Facilities/Infrastructure grant initially determined in the previous year.

2. Economic Development Methods of Distribution

a. Development Fund: To provide financial resources to local governments which in turn assist businesses to create/retain jobs for low and moderate income people.

b. Regional Assistance Fund: To provide financial resources to local governments or regional organizations which can use the assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I), Farmer's Home Administration Programs, and Small Business Administration Programs.

c. Micro-Loan Program: To provide communities with funds for small loans to assist existing and new local businesses create/retain jobs for low and moderate income individuals.

d. Economic Development infrastructure Grants: lb provide funding to communities where public infrastructure must be installed or improved to enable an existing or new business to create/retain jobs for low and moderate income people.

e. Interim Finance Program: To utilize funds not disbursed in the State's letter of Credit for grants to communities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

3. Planning/Technical Assistance Methods of Distribution

a. Phase II Planning Grants: lb assist communities in the final development of their CDBG strategies that address specific community development problems.

b. General Purpose Planning Grants: To provide funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

c. Comprehensive Planning Grants: To enable Maine's municipalities to develop comprehensive plans to prepare for and manage their future growth and development.

d. Quality Main Street Strategy Grants: to provide financial assistance to communities for the development of strategies to revitalize main streets and downtowns.

e. Defense conversion Planning Grants: to provide financial assistance to community partnerships that will he affected by defense reductions and lack the resources to develop a multi-jurisdictional strategy to ameliorate impacts to local and regional economies.

C. STATE ADMINISTRATION

1. General Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1992), Section 106(d) (3) (A) is permitted and will utilize $100,000 plus 2% of its annual allotment from the Department of Housing and Urban Development (HUD) to assist in administering the State's Small Cities CDBG Program in accordance with Federal, State and local requirements.

2. Technical Assistance Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1992), Section 106(d) (5) is permitted and will utilize 1% of its annual allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. PROGRAM TIMEFRAME

All application deadlines are listed below.

Housing Assistance. January 14, 1994

Public Facilities/infrastructure January 27, 1994

Economic Development Infrastructure February 11, 1994

Micro-Loan February 15, 1994

Public Service February 25, 1994

General Purpose Planning April 8, 1994

Quality Main Street Strategy May 9, 1994

Defense Conversion Planning Grants May 9, 1994

Urgent Need 1st come basis after February 1, 1994

Development Fund 1st Thursday of month

Regional Assistance see Section 3.B.4.(a)

Interim Finance Program 1st come basis

E. PROGRAM BUDGET

The budget on the next page indicates the manner in which CDBG Funds will be allocated among programs for the 1994 grant year. The total budget is comprised of a federal allocation from HUD, along with a State match equivalent of up to 2% of the federal allocation. The amount of the 1994 federal allocation will be $14,339,000. Based on the federal amount, the maximum amount available for each program is indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET

GRANT YEAR 1994

FY 1994 CDBG Program Budget ¹ $14,339,000

Administration 386,780

Technical Assistance Administration 143,390

MAXIMUM BUDGET

1. Housing Assistance Grants 3,075,000

2. Public Facilities/Infrastructure Grants 3,000,000

3. Public Service Grants 300,000

4. Urgent Needs Grants 300,000

5. Reserved Grants 1,600,000

6. Development Fund 1,450,000

7. Regional Assistance Fund 843,830

8. Micro Loan Program 500,000

9. Economic Development Infrastructure Program 1,500,000

10. Interim Finance Program ² See Below

11. Phase II Planning Grants 100,000

12. General Purpose Planning Grants 350,000

13. Growth Management Planning Grants 110,000

14. Quality Main Street Strategy Grants 480,000

15. Defense Conversion Planning Grants 200,000

¹ The total program budget is comprised of a projected federal allocation of $14,339,000 plus a State match to equal at least $286,780 (which is 2% of the federal allocation).

² The budget for Me Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis, The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

SECTION 2. COMMUNITY DEVELOPMENT METHODS OF DISTRIBUTION

A. HOUSING ASSISTANCE GRANTS

The purpose of a Housing Assistance (HA) Grant is to provide financing to address acute housing needs of low and moderate income persons residing in the State of Maine. These needs must be part of a community development strategy which will lead to future public and private investments.

1. Threshold Criteria: The State will distribute Housing Assistance funds to local governments through the annual Housing Assistance Selection Process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Housing Assistance funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint housing activities. multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive HA funds. Except as described in 1 (a) above, County governments are not eligible applicants.

(c) Eligible Activities: Eligible activities include Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers.

(d) Project Eligibility: Upon receipt by OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with Housing Assistance funds. Those activities must be included in Section 3. (c) above and be eligible under 24 CFR, Part 570, Subpart I, .482. Applications will only be accepted for activities directly related to the assistance to, or the creation of residential housing units. In the event that an application contains any Final activity unrelated to housing, or an activity riot listed in Section 1(c) above, the entire application will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Federal and State Certifications for Local Governments: All communities applying for Housing Assistance funds must certify that they have/will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) adhere to MRSA Title 10, Chapter 214, energy Efficiency, Building Performance Standards Act, Section 1415-c (1), (IA) and Section 1415-G in the construction of any new residential housing units;

(iv) not attempt to recover certain capital costs of public improvements funded in part with Housing Assistance monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation requirements;

(vii) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(ix) provide a local match equivalent to 10 percent of the total grant award; and

(x) reviewed the project proposed in the application to be sure that it complies with. the community's comprehensive, plan and/or applicable state and local land use requirements.

(f) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one Housing Assistance Grant per grant year.

(g) Prohibition on Subsequent Year Award: Units of general local government and unorganized territories that received a 1993 single year Housing Assistance award may not apply for a 1994 Housing Assistance grant. Units of general local government that received a 1993 two year award may not apply again for a Housing Assistance grant until the 1996 program. Prohibitions against subsequent year awards is program specific.

2. Program Priorities:

(a) Multi-jurisdictional Priority: Regional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 5 supplemental points in Phase I of the selection process.

(b) Activity Priority: Not applicable.

3. Special Program Requirements: Housing Assistance applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1994 Housing Assistance program, communities that received Community Revitalization (CR) grants in 1989 must have conditionally closed their grants by January 14, 1994. Communities that received CR grants in 1990 must have expended 100% of their benefit activity funds by January 14, 1994. Communities that received CR grants in 1991 must have obligated 100% of their benefit activity funds by January 14, 1991. communities that received CR grants in 1992 must have obligated at least 50% of their benefit activity funds by January 14, 1994.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due unforeseen changes in scheduled availability of leveraged funds or acts of nature or 2) the recipient has received unanticipated program income and is unable to meet the above performance requirements.

(c) Maximum Housing Assistance Grant Amount: The maximum grant amount will be $300,000 for a one year grant and a $600,000 maximum for a two year grant. The maximum grant amount for a regional project will be 25% greater for one and two year grants.

(d) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants in local housing rehabilitation programs will be no more than $15,000 per unit rehabilitated. In cases of replacement housing, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or the need for handicapped accessibility must be addressed, au additional $7, 000 per unit. may be made available.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's housing problems that it would like to address with Housing Assistance funds. The application deadline is January 14, 1994. These applications will be evaluated according to the following criteria. A minimum score of 85 points out of a possible 100 will be required for an application to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with a Housing Assistance Grant. Points will be awarded in the following categories:

(aa) Scope of Problem (5 points) - Description of the magnitude and nature of the substandard housing in the applicant's area.

(bb) Identification of Problem (5 points) - Description of the process used in identifying the substandard housing problem.

(cc) Life Safety Considerations (5 points) - Description of the frequency, severity and nature of potential threats to health and safety contained in the housing units.

(dd) Energy Efficiency Considerations (5 points) ­Description of deficiencies that inhibit low and moderate income residents from being able to maintain reasonable energy efficiency standards in an affordable and comfortable manner.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would like to use Housing Assistance funds to solve the problem(s) or need(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Effectiveness (10 points) - How the proposed solution relates to problems or needs identified in the Problem Statement and how Housing Assistance funds will be used in solving those problems in a cost effective manner.

(bb) Life Safety and Energy Efficiency (10 points) - How the proposed solution addresses serious threats to health and safety and improves energy efficiency of the units to be rehabilitated or created.

(cc) Project Feasibility (10 points) - How the proposed solution will impact the housing problems in a timely manner and the readiness of the applicant to implement the program.

(iii) Citizen Participation (20 points): Citizen Participation is descriptive demonstration of bow local citizens, community groups and others were involved in the identification of the Problems and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Public Meetings and Hearings (10 points) - A description of the public meetings and hearings that were held specific to this application and their role in identifying problems, fostering public comments and formulating proposed solutions.

(bb) Local Organizations. Residents and Public Officials: (10 points) - A description of the roles played by these groups and individuals in the process that led up to this application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Commitments, along with am estimated timeframe regarding when various aspects of the program will be undertaken, may be reviewed. Points will be awarded in the following categories:

(aa) Partnerships: (10 points) A list of those groups that will work in close concert with the applicant on the housing project. and a description of how each will provide financial resources or technical assistance.

(bb) Local Commitment: (10 points) A description of the technical and financial resources the applicant and private citizens will provide to the project.

(v) Distress (10 points): OCD will derive a community's distress score tram the following four areas:

(aa) housing (2.5 points): a composite score consisting of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(bb) Economic Conditions (2.5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the applicant communities plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available. The poverty level percentages will be ranked within the four population categories discussed above.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II until the available funding in the HA program is exhausted. An invitation into Phase II is not a guarantee of funding, but a community will receive the amount it requests, up to the maximum, provided it completes the following criteria:

(aa) Project Planning: Details of the project including cost estimates and structural analyses.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant to 24 CFR, Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I,.483 et seq., of either providing direct benefit to low and moderate income persons or in emergency circumstances, removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4A. of this Proposed Statement, communities will receive financial assistance, on an as needed basis, in the form of Phase II Planning Grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD.

(iii) Two Year Grant Criteria: Housing rehabilitation activities will not be eligible for a two year grant award. Other eligible activities receiving Housing Assistance funds may be considered for a two year grant award if they meet all three of the following criteria:

(aa) The timeframe required to complete the proposed grant activities must exceed the maximum 18 month period allowed for a single year grant;

(bb) We total amount of requested funds must exceed the one year maximum grant limits for a single community cc a regional project; and

(cc) The activities proposed for the second year of the grant mist be related to, and necessary to complete, activities proposed for the first year; OR, the proposed second year activities must be related to, and necessary to complete, the overall project began in the first year.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to finalize your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities mist be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The purpose of a Public Facilities/Infrastructure Grant (PFIG) is to provide financing for local infrastructure and public facility activities which zone part of a community development strategy and will lead to future public and private investments.

1. Threshold Criteria: The State will distribute PFIG funds to local governments through the annual Public Facilities/Infrastructure Grant Application Selection Process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive PFIG funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint public facility/infrastructure facilities. These multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive PFIG funds. Except as designated in 1 (a) above, County governments are not eligible applicants.

(c) Eligible Activities: Eligible activities include infrastructure for new housing construction and construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with such projects as water and sewer facilities, non-housing rehabilitation hook-ups, wharfs, flood and drainage improvements, parking, streets, curbs, gutters, sidewalks, fire protection facilities, community, child, senior, and health centers, libraries, salt/sand storage sheds, shelters for the homeless, sheltered workshops, recreational facilities, parks, removal of architectural barriers, downtown revitalization, and public works garages. An application may include more than one eligible PFIG activity.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities the applicant proposes to undertake with PFIG funds. Those activities must be included in 1(c) above and be eligible under 24 CFR, Part 570, Subpart I, .482. In the event an application contains an activity not listed in l(c) above, the entire application will be judged not to have met the project eligibility criteria. In all cases, the applicant will be notified in writing of the determination made by OCD.

(e) Federal and State Certifications for Local Governments: All communities applying for PFIG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to, affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply, with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) adhere to ASHRAE/IES 90.1-1989 for energy efficient design and ASHRAE 62-1989 for ventilation requirements in the construction of all commercial and institutional buildings;

(ix) provide a local notch equivalent to 20 percent of the total grant award; and

(x) reviewed the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(f) Prohibition on Multiple Grants: Units of local government and unorganized territories may nut benefit from more than one PFIG per grant year.

(g) Prohibition on subsequent Year Award: Units of general local government and unorganized territories that benefited from a 1993 single year PFIG award may not apply for a 1994 PFIG grant. Units of general local government that received a 1993 two year award may not apply again for a PFIG until the 1996 program year. Prohibition against subsequent year awards is program specific.

2. Program Priorities:

(a) Multi-jurisdictional Priority: Regional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 5 supplemental points in Phase I of the selection process.

(b) Activity Priority: In Phase I of the selection process, applications will receive supplemental points based on the type of activity. The sub-categories of activities and the points available are described below. In the event that an application contains activities from more than one of the sub-categories, the application will receive the average of the available supplemental points.

(i) Sub-category 1: Water, sewer, sewer hook-ups, storm drainage/CSO, downtown revitalization, infrastructure for new housing construction. Applications containing one or more of these activities will receive 5 supplemental points.

(ii) Sub-category 2: Streets/roads, sidewalks, public wharfs/ piers, fire stations and firefighting equipment, community centers, child care/senior citizen centers, health care centers, sheltered workshops, homeless shelters, libraries, transfer stations, removal of architectural barriers. Applications containing one or more of these activities will receive 2.5 supplemental points.

(iii) Sub-category 3: Parking, street, curbs, gutters, public parks, recreation facilities, public works garages, and salt/sand storage facilities. Applications containing one or more of these activities will not receive any supplemental points.

3. Special Program Requirements: PFIG applicants must also comply with the following:

(a) Past Performance : In order to be eligible to apply for the 1993 program, communities that received Community Revitalization (CR) grants in 1989 must have conditionally closed their grants by January 27, 1994. Communities that received CR grants in 1990 must have expended 100% of their benefit activity funds by January, 27, 1994. (communities that received CR grants in 1991 must have obligated 100% of their benefit activity funds by January 27, 1994. (communities that received (CR grants in 1992 must have obligated at least 50% of their benefit activity funds by January 27, 1994.

(b) Exceptions: Grant recipients may submit a request to DECD far a waiver of this special requirement only under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet performance requirements described above.

(c) Maximum Public Facilities/Infrastructure Grant Amounts: The maximum grant amounts are determined by the activity sub-categories described in 2(b) above. For activities in Sub-category 1, the maximum grant amount is $400,000 for a one year grant and $800,000 for a two year grant. For activities in Sub-category 2, the maximum grant amount is $250,000 for a single year giant. For activities in Sub-category 3, the maximum grant amount is $75,000 far a single year grant. Activities in a regional project are eligible for amounts that are 25% greater.

(d) Funding Restrictions: PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other housing activities are eligible in the Housing Assistance Grant program.

(e) Grant Termination: The OCD reserves the right to terminate a (community's PFIG grant if progress on the construction begun at the end of Phase II is not apparent within 12 months from the date of signing a contract with DECD.

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

(a) Phase I Application: The maximum length of a Phase I application is ten pages. It is designed to be a description of a community's problems relating directly to public facilities and infrastructure that it would like to address with CDBG assistance. The application deadline is January 27, 1994. Each application will be rated in relation to all other applications. A minimum score of 85 out of 100 will be necessary for an application to be considered further for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the infrastructure/public facility problems or needs the applicant wishes to address with CDBG assistance. Points will be awarded in the following categories:

(aa) Identification (10 points) - Scope and magnitude of the problems or needs to be addressed with CDBG funds.

(bb) Priority (5 points) - Rank of problems or needs with other local, regional, and/or State problems or needs.

(cc) Health, Safety, Welfare (5 points) - Impact of problem an public health, safety, and welfare.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of what the applicant will do to address problems discussed in the Problem Statement, when the applicant will take actions to solve these problems, and how this will provide a solution to the problems presented. Points will awarded in the following categories:

(aa) Identification (10 points) - Description of what will be done to solve problems included in the Problem Statement.

(bb) Action Plan (20 points) - Identification of tasks, timetables, and responsible parties in implementing the solution.

(iii) Citizen Participation (20 points) - Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problem(s) and solution(s) discussed in the application. Points will be awarded in the following categories:

(aa) Process (5 points) - Discussion of process followed at the local level, including descriptions of public meetings, hearings and other methods to used to solicit citizen involvement.

(bb) Content (10 points) - Extent and results of the participation of citizens in the local process.

(cc) Relevance (5 points) - Connection between citizen participation and Problem Statement and Proposed solution.

(iv) Commitment (20 points): commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Points will be awarded in the following categories:

(aa) Commitments (15 points) - List and description of the status of each resource committed to the solution.

(bb) Relevance (5 points) - Relationship between commitments and Proposed Solution and attempts to gain other commitments.

(v) Distress (10 points): OCD will derive a community's distress score from following four areas:

(aa) housing (2.5 points): a composite score of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and. spending 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(bb) Economic Conditions (2.5 points): a composite score derived from two factors: a ranking based on the unemployment rates of the applicant communities plus a quarter point for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available. Poverty level percentages will be ranked within the four population categories discussed above.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II until the funding available in the PFIG program is exhausted. While an invitation into Phase II is not a guarantee of funding, communities will receive the amount necessary to complete its project, up to the maximum.

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and/or market studies.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart 1,.482 and are cleared through the environmental review process pursuant to 24 CFR Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I., .483 et seq., of either providing direct benefit to low and moderate income persons or removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4A of this Final Statement, Phase II participants will be eligible for planning grant funds on an as needed basis to assist payment of project development costs. Extent of assistance shall be determined by OCD staff.

(iii) Two Year Grant Criteria: Applicants may be awarded a two year grant if they meet all three of the following criteria:

(aa) The timeframe required to complete the proposed grant activities must exceed the maximum 18 month period allowed for a single year grant;

(bb) The total amount of requested funds must exceed the maximum limit in PFIG Sub-category I for a single year grant or a regional project; and

(cc) The activities proposed for the second year of the grant must be related to, and necessary to complete, activities proposed for the first year; OR, the proposed second year activities must be related to, and necessary to complete, the overall project begun in the first year.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to identify finalizing your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

C. PUBLIC SERVICE GRANTS

The purpose of a Public Service Grant (PSG) is to address human resource needs in a community by providing funding for operating expenses, equipment and program materials for public service programs.

1. Threshold Criteria: The State will distribute PSG funds for public service activities to local governments through the annual Public Services Grant Application Selection Process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG bands. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint public service projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. A local government may apply on behalf of a non-profit organization that provides public services in its community.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive PFIG Awards. Except as designated in l (a) above, County governments are not eligible applicants.

(c) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job trailing, 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.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with PSG funds. Those activities must be included in l(c) above and be eligible under 24 CFR, Part 570, Subpart I, .482. In the event that an application contains any activity that is ineligible, the entire application will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Federal and State Certifications for Local Governments: All communities applying for PSG funds must certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy) in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients. which are receiving CDBG funding nay obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) provide a local match equivalent to 20 percent of the total grant award;

(ix) certify the public service to be provided represents: 1) a new service to the community or, 2) is a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during the 12 months prior to submission of the application; and reviewed the project proposed in the application to be sure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(f) Prohibition On Multiple Grants: Units of local government and unorganized territories may not benefit from more than one PSG per grant year.

(g) Prohibition an Subsequent Year Award: Units of general local government and unorganized territories that received a 1993 single year Public Service award may not apply for a 1994 Public Service grant. Prohibition against subsequent year award is program specific.

2. Program Priorities:

(a) Multi-jurisdictional Priority: Regional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 5 supplemental points in Phase I of the selection process.

(b) Activity Priority: Not applicable.

3. Special Program Requirements: PSG applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1994 PSG program, communities that received Community Revitalization (CR) grants in 1989 must have conditionally closed their grants by February 25, 1994. Communities that received CR grants in 1990 must have expended 100% of their benefit activity funds by February 25, 1994. Communities that received CR grants in 1991 must have obligated 100% of their benefit activity funds by February 25, 1994. Communities that received CR grants in 1992 must have obligated at least 50% of their benefit activity funds by February 25, 1994.

(b) Exceptions: PSG recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Maximum Public Service Grant Amount: The maximum grant amount will be $50,000 for a single grant year. The maximum grant amount for a regional project will be 25% greater.

(d) Funding Restrictions: PSG funding is restricted to non-construction activities as listed in the Eligible Activities Section. Funding for construction or rehabilitation of public service facilities must be in place before a PSG award will be made. ROW service construction activities are considered public facilities and can be included in an application to the PFIG program.

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

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's human resource problems that it would like to address with PSG assistance. The application deadline is February 25, 1994. These applications will be evaluated according to the following criteria. A minimum score of 85 points out of a possible 100 will be needed for projects to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with PSG assistance. Points will be awarded in the following categories:

(aa) Identification (10 points): Description/definition of the nature and magnitude of the public service need or problem confronting the applicant.

(bb) Health, Safety and Welfare (10 points): Description of the impact of the problem on individuals within the community and on the community as a whole.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of bow the applicant would like to use PSG assistance to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Identification (10 points): Description of how PSG funds will be used to solve the problem described in the Problem Statement.

(bb) Action Plan (10 points): Description of the project timetable and parties responsible for implementing the solution.

(cc) Capacity (10 points): Description of abilities of implementing parties to do the project activities.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Process and Content (10 points): Description of the process used to involve citizens and a summary of the comments and issues raised.

(bb) Relevance (10 points): Discussion of the connection between the citizen participation and the problems and solutions discussed in the application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Points will be awarded in the following categories:

(aa) Effort (5 points): Description of how the applicant sought other resources to assist the project.

(bb) Status (10 points): A list and status of commitments far the project.

(cc) Relevance (5 points): Discussion of how the other resources make the solution possible.

(v) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(aa) Unemployment (5 points): a scare determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment) . This figure will be multiplied by the 5 points for this category to receive a final score. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(bb) LMI Percentage (5 points): a score derived by dividing the community's most recent low and moderate income (LMI) percentage by, 51 percent. This figure will be multiplied by 5 to determine final score for LMI percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to Me scores determined by the scoring team. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II until the funding available in the PSG program is exhausted. While an invitation into Phase II is not a guarantee of funding, communities will receive the amount necessary to complete its project, up to the maximum.

(aa) Project Planning: Details of the project including management plan, equipment costs, and program timetable.

(bb) Project Planning: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant to 24 CFR, Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I, .483 et seq., of either providing benefit to low and moderate income persons or removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management. In addition, the community must provide a plan far the continuation of the service after the conclusion of the PSG funding or must demonstrate that the need will be met daring the course of the PSG.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Two Year Grant Criteria: Public Service Grants are not eligible far two year grant award.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will. facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to identify finalizing your project. Successful completion of Phase II critter will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD, staff will remain involved with the community through the end of the project.

D. URGENT NEED GRANTS

The purpose of the Urgent, Need Grant (UNG) Program is to provide financing that enables a community to address community development needs having a particular urgency.

1. Threshold criteria: UNG Program applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint emergency situations. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive UNG funds form the State. Except as described in 1 (a) above, County governments are not eligible applicants.

(c) Project Eligibility: Pursuant to 24 CFR Part 570 Subpart I .483, the applicant must seek to 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 IS months prior to the submission of an application;

(iii) is a project the applicant cannot finance on its own; and

(iv) cannot be addressed with other sources of funding.

(d) Federal and State Certifications for Local Governments: All communities applying far UNG funds must certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; and

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State cc local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities.

2. Special Program Requirements: UNG applicants must also comply with the following:

(a) Necessary Documentation: The emergency situation to be addressed must be of such a nature it requires immediate action to alleviate the occurrence of or the imminent threat of widespread or severe injury or loss of life resulting from any natural or man-made cause.

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

(c) Maximum Urgent Need Grant Amount: The maximum grant amount will be $150,000.

3. Selection Process: Communities seeking to undertake a project on the basis of urgent need must submit an UNG application which includes the following:

(a) documentation the emergency situation was prompted by natural or man-made disasters that pose an imminent threat of widespread or severe injury or loss of life;

(b) certification the proposal is designed to address an urgent need and an immediate response is essential to initiate action that will halt the threat of widespread or severe 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.

Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria in 1(c) above plus the Special Program requirements in 2 above. Grant proposals that meet these requirements may be awarded grants from the UNG Program, until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any other applications.

4. Approval Process: The UNG funds will be available after May 1, 1994. Applications will be accepted on a first come basis. Following receipt of a application, the. OCD shall review the application and verify that it contains all the required information. If the application is complete and funds remain available in the program, the Director of OCD will evaluate each proposal and make the decision on whether or not to make a grant award. Notification to the Applicant of the Director's decision will initiate completion of processes necessary for contract award.

E. RESERVED GRANTS

The purpose of a Reserved Grant is to provide funding for the second year of a Housing Assistance (HA) or Public Facilities/Infrastructure (PFIG) grant award that was initially determined in the previous grant year.

1. Threshold Criteria: 1994 Reserved grantees must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Reserved Grants. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive Reserved Grant funds. Except as described in 1 (a) above, County governments are not eligible applicants.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570, Subpart I, .483;

(d) the recipient must undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart I, .482, and approved during the 1993 HA or PFIG Phase II processes;

(e) Federal and State Certifications for Local Governments: All communities applying for HA, or PFIG Reserved Grants must certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act of 1974, as, amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all State/Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) provide a local match equivalent to 10-20 percent of the total grant award or total project cost; and

(ix) reviewed the project proposed in the application to be sure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(f) complete the required HA or PFIG Reserved Grant applications.

2. Special Program Requirements: 1994 reserved grantees must meet the following:

(a) Restriction on Applicants: eligible applicants are restricted to the following communities:

(i) Housing Assistance program:

Lisbon $400,000

(ii) Public Facilities/Infrastructure program:

Dixfield $400,000

Hallowell $400,000

Van Buren $400,000

(b) Reasonable Progress: evidence that applicants are on line with the 1993 expenditure schedule as submitted in their HA or PFIG contract. Reserved Grant communities must have demonstrated reasonable progress in staffing, program design and contracting far their current program.

(c) LMI Expenditures: in the aggregate, 70% of the expenditures proposed by Reserved Grantees mist result in benefit to low and moderate income persons.

3. Selection Process: Not applicable.

4. Approval Process: The following actions constitute the approval process for reserved grants:

(a) Applications from Reserved Grant communities will be invited during the 1994 Phase II Process.

(b) Each Reserved Grant application will be reviewed. by the OCD. The OCD will:

(i) Review status reports of Reserved Grant communities and compare the reserved grant application to the second year of the project as proposed in the previous year's Phase II process;

(ii) Review activity schedule and management plan for acceptability based on project design and budget; and

(iii) Develop recommendations for the CDBG Program Manager regarding the application's acceptability, grant conditions and funding level.

(c) Recommendations an Reserved Grant applications will be reviewed by the CDBG Program Manager, who will recommend to the Director and commissioner of the DECD that the Reserved Grant community:

(i) Be funded at the requested level;

(ii) Not receive a reserved grant (if ineligible costs were incurred during the administration of the previous year or the project is no longer feasible); or

(iii) Be funded at a reduced level (the amount of reduction will be determined by the changes in the project's activities and schedules as originally proposed or by evidence that the project cannot accomplish its original goals).

(d) The Commissioner of the DECD will announce reserve grant awards during the 1994 Phase II process.

SECTION 3. ECONOMIC DEVELOPMENT METHODS OF DISTRIBUTION

A. DEVELOPMENT FUND

The purpose of the Development Fund (DF) is to provide financial resources to local governments which in turn assist businesses to create jobs for low and moderate income people.

1. Threshold criteria: DF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Wine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement, communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive DF assistance. Except as described in 1 (a) above, County governments are not eligible applicants.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570, Subpart I, .483, et seq.;

(d) 51% of the jobs created or retained as a result of CDBG expenditures proposed 11, the DF applicant are provided to persons of low and moderate income;

(e) undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart I, .482;

(f) Federal and State Certifications for Local Governments: All communities applying far Development Funds must certify, that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(vii) With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(viii) reviewed the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(g) complete the required DF application materials.

2. Special Program Requirements: DF proposals also must comply with the following:

(a) Necessary and Appropriate: The DF loan for profit businesses must be for projects limed: are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project.

Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application should present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate the non-DF financing also must represent new investment.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business or the developer identified in the DF application. The loan must be provided under the terms stated in a DF letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Justification far the repayment. terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance.

(e) LMI Benefit: In the aggregate, 70% of the program expenditures are provided to benefit persons of low and moderate income.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The DF project will be evaluated as a viable business proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(ii) Financial Plan: The financing for the project is in place and legally, binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified accountant, preferably a CPA. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(iii) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash equity injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(iv) DF Loan repayment: Terms of the loan pay back are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG - DF monies for reuse.

(v) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter into security agreements.

(vi) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(vii) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. overall project cost effectiveness also will be considered.

(viii) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(ix) Community and Economic Development: The primary and secondary impacts of the DF project on the community's plans far future economic development will be evaluated. The review will also examine the ripple effect of the proposal an the community as a whole.

4. Approval Process:

(a) Application: Applications shall be submitted on the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each job creation proposal. Following staff analysis, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the Director of the OCD. The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant and attorney, a representative of private financing, a business person, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The Committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms proposed;

(iii) rejection with staff recommendation for complete/partial resubmission; and

(iv) rejection.

(c) Quarterly Allocation: The quarterly allocation will be limited to $250,000 plus any unobligated portion of allocations of previous quarters. ills limit can be waived by the Director. The Director also reserves the right to reject any or all applications in any month.

If, while nearing the end of the quarter, available funds are not sufficient to finance credit-worthy proposals, the review process will incorporate an. objective needs factor (the distress factor described in Section 2.A. 3. (v) . Those proposals with the highest score in the needs factor will receive assistance first.

B. REGIONAL ASSISTANCE FUND

The purpose of the Regional Assistance Fund (RAF) is to provide financial resources to local governments or regional organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program. (Title I) or the Farmers Home Administration (FmHA) Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's Small Cities CDBG program or conventional lending institutions.

1. Threshold Criteria: RAF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive RAF. County governments may also apply on behalf of unorganized territories: Groups of local governments may apply for a regional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, Auburn are not eligible to receive RAF funds.

(c) the proposed activities mist meet one of the national objectives described in 24 CFR, Part 570, Subpart I,.483 et seq.;

(d) 51% of the jobs created as a result of CDBG expenditures proposed by the RAF applicant are provided to persons of low and moderate income;

(e) undertake eligible activities, pursuant to 24 CFR, Part 570, Subpart I,.482.

(f) Federal and State Certifications for Local Governments: All communities applying for PM mist certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State cc local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(viii) reviewed the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(g) complete Me required RAF application materials; and

(h) be designated by EVA. as eligible to receive funds under the Title IX program, and must have submitted a Title IX or Title I preapplication to EDA and be working with EDA toward submission of a full application; or,

(i) be designated by FmHA as eligible to receive funds under the either the Rural Business Enterprise Grant or the Intermediary Relending Program and be working with FmHA toward submission of a full application; or,

(j) be designated by the appropriate organization providing matching funds as eligible to receive funds.

2. Special Program Requirements: RAF proposals also must comply with the following:

(a) RAP Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve RAF funds for the applicant, and an RAF Latter of Conditions will be included in the contract to describe the terms that will govern the release of bands from the reserve. We local government must use the designated RAF funds as a match to leverage additional funds. Depending on the matching requirements, requests to use funds from the reserve may have to meet additional special requirements that are similar to those described in Section 3.A.2. (a and b) of this Proposed Statement.

(i) EDA Title IX Economic Adjustment Assistance defined: Funds under the Title IX Program are used to assist areas experiencing long-term economic deterioration (LTED) and areas threatened or impacted by sudden or severe economic dislocation (SSED).

Long-term economic deterioration (LTED) : The LTED Program assists eligible applicants to develop and/or implement strategies designed to halt and reverse the long-term decline of their economies. The most common type of activity funded under the LTED Program is Revolving Loan Funds (RLFs), although other types of eligible Title IX activity may be funded.

Sudden and severe economic dislocation (SSED): The SSED Program assists eligible applicants to respond to actual or threatened job losses (dislocation) and other severe economic adjustment problems. It is designed to help communities prevent a sudden, major job loss; to reestablish employment opportunities and facilitate community adjustment as quickly as possible after one occurs; or to meet special needs resulting from severe changes in economic conditions. SSED assistance is intended to respond to permanent rather than temporary job losses. Assistance may be in the form of a grant to develop a strategy to respond to the dislocation (Strategy Grant) or a grant to implement an EDA approved strategy (Implementation Grant).

In light of the current high level of economic distress in rural areas, EDA is particularly interested in Title IX projects designed to mitigate serious rural economic adjustment problems.

(ii) EDA Title I Public Works Program defined: Funds under Title I Program axe used to assist distressed communities attract new industry, encourage business expansions and generate long-term, private sector jobs through projects to improve water and sewer facilities primarily serving industry, build access roads to industrial parks or sites, and construct business incubator buildings.

(iii) FmHA Rural Business Enterprise Grant: Grants are made to finance and facilitate development of small and emerging private business enterprises in rural areas.

(iv) FmHA Intermediary Relending Program: Grants are used to finance business facilities and community development projects in rural areas.

(b) Limit on Amount of RAF assistance: Each region of the State will be eligible for one RAF grant. Additional grants within regions will be made at the discretion of the Director of OCCD. The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification fox, the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success:

LTED: To receive funding under the LTED/RLF Program, an area must be experiencing at least one of three economic problems: 1) very high unemployment; 2) low per capita income; or, 3) chronic distress (failure to keep pace with national economic growth trends over the last five years). Priority will be given to those areas with two or more of these indicators.

SSED: To receive priority consideration for funding under the SSED Program, an area must show actual or threatened permanent job losses that exceed the following threshold criteria. 1) If the unemployment rate of the Labor Market Area exceeds the national average, the dislocation must be the lesser of four (4) percent of the employed population, or 500 direct jobs. 2) If the unemployment rate of the Labor Market Area is equal to or less than the national average, the dislocation mist be the lesser of four (4) percent of the unemployed population, or 1,000 jobs.

(ii) Financial Plan: The financing need for the project will be based on an assessment of its financial resources The proposal must have an appropriate leverage ratio of private and public dollars.

(iii) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(iv) Cost: The number of permanent jobs created or retained as per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. overall project cost effectiveness also will be considered.

(v) Low and Moderate Income Benefit: Benefit to low and moderate income persons and. families will be evaluated. The integration of job training programs, job Advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(vi) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's plans for future economic development will be evaluated. This review will also examine the ripple affect of the proposal on the community as a whole.

4. Approval Process:

(a) Application: once the applicant has submitted a preapplication to the appropriate agency and is working toward a full application, it nay submit an RAF pre-application to DECD. DECD staff will review the RAF pre-applications on a first came basis to determine if the threshold criteria and special program requirements have been met. If so and when the application process has been successfully completed, the applicant will be invited to continue into the project development phase where the CDBG part of their project will be more fully developed. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OCD for awards:

(i) approval of requested amount and requested or different terms;

(ii) approval of lesser amount and requested or different terms; or,

(iii) rejection.

(c) Allocation: The RAF allocation will be $685,760 and will be available after My 1, 1994. RAF proposals that meet all criteria may be awarded funds until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any further applications.

C. MICRO-LOAN PROGRAM

The purpose of the Micro-Loan Program is to provide Maine communities with funds to assist existing and now businesses create or retain jobs for low and moderate income individuals. These needs must be part of a community development strategy which will lead to future public and private investments.

Communities are encouraged to enter into partnerships to request Micro-Loan assistance when demand is sufficient on a regional basis and communities would be better served through a regionally administered loan program.

1. Threshold Criteria: The State will distribute funds to communities to establish a commercial loan program through the annual Micro-Loan application process. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive micro-Loan funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint Micro-Loan programs. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive Micro-Loan funds. Except as described in 1 (a) above, County governments are not eligible.

(c) Eligible Activities: Eligible activities include the establishment of a local commercial loan program for the purpose of assisting for-profit and non-profit businesses.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities the applicant proposes to undertake with Micro-Loan funds. Those activities must be included in l(c) above and be eligible under 24 CFR, Part 570, Subpart I 482. Under this program, activities that construct, support or assist housing related projects are ineligible to receive Micro-Loans. Applications will only be accepted for the development of a Micro-Loan program. In the event an application contains any proposed activity unrelated to the establishment of a Micro-loan Program, or the activity listed in Section 1(c) above, the entire application will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) 51% of the jobs created or retained as a result of Micro-Loan expenditures must be made available to or taken by persons of low and moderate income.

(f) Federal and State Certifications for Local Governments: All communities applying, for Micro-Loan funds must certify they will:

(i) minimize displacement and adhere to a displacement policy set forth by Section 104 (d) of the Housing and Community Development Act of 1974, as amended.

(ii) comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public participation requirements;

(v) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities; and

(vii) reviewed the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(g) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one Micro-loan Program per grant year.

(h) Prohibition on Subsequent Year Award: Units of local government and unorganized territories that benefited from a 1993 Micro-Loan award may not apply for a 1994 Micro-Loan grant. Prohibition against subsequent year award is program specific.

2. Program Priorities:

(a) Multi-jurisdictional Priority: Regional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 5 supplemental points in Phase I of the selection process.

(b) Activity Priority: Not applicable.

3. Special Program Requirements: Micro-loan applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1994 Micro-Loan Program, communities that received Community Revitalization (CR) grants in 1989 must have conditionally closed their grants by February 18, 1994. Communities that received CR grants in 1990 must have expended loot of their benefit activity funds by February 18, 1994. Communities that received CR grants in 1991 must have obligated loot of their benefit activity funds by February 18, 1994. Communities that have received CR grants in 1992 mast have obligated at least 50% of their benefit activity funds by February 18, 1994.

(b) Exceptions: Grant recipients may only send a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Maximum Micro-Loan Grant Amount: The maximum grant amount will be $125,000 for a single grant year. The maximum grant amount for a regional project will be 25% greater. The level of funding will be established in Phase II pursuant to the level of demand that can be demonstrated by the applicant.

(d) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by the federal government. Documentation must be provided that the project cannot proceed without Micro-Loan participation.

(e) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-loans may provide up to 100% of the financing for loans up to $15,000. Micro-loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000. Project activities and use of funds to calculate the non Micro-Loan financing must represent a new investment or a new project.

(f) Repayment Terms: The community reviewing the loan will establish repayment terms based on circumstances of the loan proposal.

(g) Local loan Procedures: The procedure the community uses to distribute loans must be certified by the OCD in the Phase II process. OCD will generate guidelines for local loan procedures. A loan application must initially be reviewed by a local loan review committee. The review committee must determine the assistance provided is commensurate with the community benefits that will accrue from the project.

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

a. Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's business problems it would like to address with Micro-Loan funds. The application deadline is February 12, 1994. Applications will be evaluated according to the following criteria. A minimum score of 85 points out of a possible 100 will be required for an application to be further considered for funding.

(i) Problem Statement (30 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with Micro-Loan funds. Points will be awarded in the following categories:

(aa) Scope of Problem (15 points) - Description of the magnitude and nature of the lack of job opportunities and lack of business capital in the applicant's area.

(bb) identification of Problem (15 points) - Description of the need for these funds and how that need was identified.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use Micro-Loan funds to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Scope of Solution (15 points) - Description of the actions that the applicant will undertake in the use of Micro-Loan Program funds to resolve the problem(s) presented in the Problem Statement.

(bb) Capacity (15 points) - Description of the capacity that the applicant has to conduct those efforts specified in the Scope of Solution section and the history of the community in administering lending programs.

(iii) Citizen Participation (30 points): Citizen Participation is a descriptive demonstration of how business groups, local citizens, community groups and others were involved in the identification of the problem and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Business Involvement (15 points) - Description of the involvement that the applicant's business community has bad in the development of the application. This should include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(bb) General Citizen Involvement (15 points) - Description of the involvement that the general citizenry has had concerning the concept of assisting business. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Associations, Community Groups, Planning Board, and the Board of selectmen.

(v) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(aa) Unemployment(5 points): a score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 5 points for this category to receive a final score. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(bb) LMI Percentage (5 points): a score determined by taking the community's most recent LMI percentage and dividing it by 51 percent. This figure will be multiplied by the 5 points for this category to receive a final score. Communities with an LMI population greater than 51% will automatically receive the total points allowed.

b. Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II until the funding available in the ML program is exhausted. An invitation into Phase II is not a guarantee of funding, a community will receive the amount necessary to complete its project, up to the maximum, provided it completes the following criteria.

(aa) Project Planning: Details of the project including cost analysis and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant to 24 CFR, part 58.

(cc) Project Benefit: The proposed activities are verified to meet the national objective pursuant to 24 CFR, Part 570, Subpart I, .483 et seq. of providing direct benefit to low and moderate income persons.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4A of this Proposed Statement, communities will receive financial assistance, on an as needed basis, A the form of Phase II Planning Grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff.

(iii) Two Year Grant Criteria: Micro-loan Programs are not eligible for a two year grant award.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to identify finalizing your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and became eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The purpose of the Economic Development Infrastructure (EDI) Program is to provide Maine communities with funds in which to develop or rehabilitate public infrastructure so that existing and new businesses can create or retain jobs for low and moderate income individuals.

1. Threshold criteria: The State will distribute EDI funds through the EDI Program. The threshold criteria for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive EDI Program funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint EDI projects. multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive EDI funds. Except as described in 1 (a) above, County governments are not eligible.

(c) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with such public infrastructure projects as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are deemed necessary to create or retain jobs for low and moderate income persons.

(d) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities that the applicant proposes to undertake with EDI funds. Those activities must be included in 1(c) above and be eligible under 24 CFR, Part 570, Subpart I 482. Applications will only be accepted far infrastructure related activities that lead to job creation or retention. In the event that an application contains any proposed activity unrelated to this, or an activity not listed in Section l(c) above, the entire application will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) 51% of the jobs created or retained as a result of EDI expenditures must be made available to or taken by persons of low and moderate income.

(f) Federal and State Certifications for Local Governments: All communities applying for EDI funds must certify that they will:

(i) minimize displacement and adhere to a displacement policy set forth by Section 104(d) of the Housing and Community Development Act of 1974, as amended.

(ii) comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public participation requirements;

(v) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities;

(vii) Provide a local match equivalent to 20 percent of the total grant award; and

(viii) reviewed the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(g) Prohibition on Multiple Uses: Units of local government and unorganized territories may not benefit from more than one EDI grant per grant year.

(h) Prohibition ark Subsequent Year Award: Units of general local government and unorganized territories that benefited from a 1993 single year Economic Development Infrastructure award may not apply for a 1994 Economic Development Infrastructure grant. Prohibition against subsequent year award is program specific.

2. Program Priorities:

(a) Multi-jurisdictional Priority: Regional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 5 supplemental points in Phase I of the selection process.

(b) Activity Priority: Not applicable.

3. Special Program Requirements: EDI Program applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply far the 1994 EDI Program, communities that received Community Revitalization (CR) grants in 1989 must have conditionally closed their grants by February 11, 1994. Communities that received CR grants in 1990 must have expended 100% of their benefit activity funds by February 11, 1994. Communities that received CR grants in 1991 must have obligated 100% of their benefit activity funds by February 11, 1994. Communities that have received CR grants in 1992 must have obligated at least 50% of their benefit activity funds by February 11, 1994.

(b) Exceptions: Grant recipients may request. for a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet the above performance requirements.

(c) Maximum Economic Development Infrastructure Grant Amount: The maximum grant amount will be $400,000 far a single grant year. The maximum grant amount for a regional project will be 25% greater. OCD's funding decision also resides on its determination of the feasibility of the project.

(d) Grant Termination: The OCD reserves the right to terminate a community's EDI grant if progress on the project is not apparent within 12 months from the date of signing a contract with DECD.

(e) Legally Binding Agreement: The applicant must have a legally binding agreement as of the date of the Phase I application with the party proposing to create and retain jobs with EDI funds. At minimum, the agreement must include details of the project's timeframe, the entire funding package of the project, and the number of proposed jobs for low and moderate income persons created or retained by the use of EDI funds.

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

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's economic development problems that it would like to address with EDI funds.

Applications far the EDI Program will be accepted once during the grant year. The application deadline is February 11, 1994. These applications will be evaluated according to the following criteria. A minimum score of 85 points out of a possible 100 will be required for an application to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with an EDI Program. Points will be awarded in the following categories:

(aa) Scope of Problem (10 points) - Description of the problem facing a specific business in the community, or the community as a whole, in relation to job creation or retention activities.

(bb) Identification of Problem (10 points) - Description of the need for these funds and how that need was identified.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use EDI Program funds to solve the problems discussed in the Problem Statement Points will be awarded in the following categories:

(aa) Scope of Solution (10 points) - Description of the activities that the applicant will undertake in the use of EDI Program funds to resolve the problem(s) presented in the Problem Statement.

(bb) Role of Funding (10 points) - Description of the role that EDI funds play in the overall project and the status of other funding sources integral to project completion.

(cc) Project Feasibility (10 points) - Description of how the project will progress within 12 months from the date of signing a contract with DECD and any obstacles that may be present that could hinder the project.

(iii) citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how business groups, local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Business Involvement (10 points) - Description of the involvement that the specific business or applicant's business community, whichever the case, has had in the development of this application. This should include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(bb) General Citizen involvement (10 points) - Description of the involvement that the general citizenry has had concerning the concept of assisting businesses. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Association, Community Groups, Planning Board, and the Board of Selectmen.

(iv) Commitment (20 points): Commitment is a description of the other resources that will he contributed to the project. These may include commitments obtained or sought to date. In the evaluation of this section, commitments that have been obtained and that are legally binding will receive greater scores than those that are not. Points will be awarded in the following categories:

(aa) Sources (10 points): A description of all the other sources of funding that have been secured for this specific project, the arrangements that have been made to secure these funds, and a detailed description of the status of these sources at the time of this application.

(bb) Timeframe (10 points): A description of when the funds mentioned above will be injected into the overall project.

(v) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(aa) Unemployment (5 points): a score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents lot unemployment). This figure will be multiplied by, the 5 points for this category to receive a final score. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(bb) IMI Percentage (5 points): a score determined by taking the community's most recent LMI percentage and dividing it by 51 percent. This figure will be multiplied by the 5 points for this category to receive a final score. Communities with an LMI population greater than 51% will automatically receive the total points allowed.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring teas" Starting at the top of the scoring list, applicants will be invited to proceed to Phase II until the funding available in the EDI program is exhausted. An invitation into Phase II is not a guarantee of funding, but a community will receive the amount it requests, up to the maximum, provided it completes the following criteria.

(aa) Project Planning: Details of the project including engineering, cost analysis and market feasibility study.

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570, Subpart I, .482 and are cleared through the environmental review process pursuant to 24 CFR, Part 58.

(cc) Project Benefit: The proposed activities are verified to meet the national objective pursuant to 24 CFR, Part 570, Subpart I., .483 et seq. of providing direct benefit to low and moderate income persons.

(dd) Management Plan: Details of the structure and methods established the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(ii) Phase II Planning Grants: Pursuant to Section 4.A. of this Proposed Statement, communities will receive financial assistance, on an as needed basis, in the form of Phase II Planning Grants to cover a portion of the costs associated with project development. The extent to which such assistance is needed shall be determined by OCD staff.

(iii) Two Year Grant Criteria: EDI Programs are not eligible for two year grant awards.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to identify finalizing your project. Successful completion of Phase II criteria will allow, the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said limitation. The Director of OCD reserves the right to waive this requirement hi light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

E. INTERIM FINANCE PROGRAM

The purpose of the Interim Finance Program (lip) is to utilize funds not disbursed in the State's Letter of Credit far grants to communities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria: IFP applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive IFP funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint projects. Multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive IFP funds. Except as described in 1 (a) above, County governments are not eligible applicants.

(c) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons (24 CFR Part 570, Section I, .483 (a) (4)),

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households (24 CFR Part 570, Subpart I, .483 (a) (3)), or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households (24 CFR Part 570, Subpart I, .483 (a) (3) (i)).

(d) Undertake eligible activities pursuant to 24 CFR 570, Section I, .482 et seq.

(e) Federal and State Certifications for Local Governments: All communities applying IFP funds must certify they will:

(i) Minimize displacement and adhere to a locally adopted displacement policy set forth by Section 104(d) of the Housing and Community Development Act of 1974, as amended.

(ii) comply with the provisions of the Civil Riots Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public: participation requirements;

(v) comply with. the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities; and

(vii) reviewed the project proposed in the application to be sure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(f) Complete the required IFP application materials.

(g) The application amount must be between $500,000 and $5,000,000. The commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OM incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination the costs of financing so adversely affect the project's rate of return the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: IFP grants will be made on a first come basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of its intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based an the project meeting all program requirements.

SECTION 4. PLANNING/TECHNICAL ASSISTANCE METHODS OF DISTRIBUTION

A. PHASE II PLANNING GRANTS

The purpose of the Phase II Planning Grant is to enable communities to gather, analyze, and Provide information required by the Phase II Project Development process.

1. Threshold Criteria: The State will distribute Phase II funds to communities or community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, and Micro-Loan Programs are eligible to apply far and receive Phase II Planning Grants from the State.

(b) Eligible Activities: Phase II Planning funds may be used for planning activities necessary to complete Phase II requirements as described in applicable funding programs listed in 1 (a) above.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and the means to execute the Phase II Planning grant award.

(d) Federal and State Certifications for Local Governments: All communities applying far Phase II Planning Grants must: certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) adhere to applicable Energy Efficiency Building Performance Standards;

(iv) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation requirements;

(vii) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying; and

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or, elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding nay, obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities.

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete Phase II tasks.

4. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive and as-needed basis.

B. GENERAL PURPOSE PLANNING GRANTS

The purpose of the General Purpose Planning Grant (GPPG) program is to provide financial assistance to communities or community partnerships have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria: The State will award GPPG funds to communities or community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive GPPG funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for regional or joint projects. Multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive GPPG funds. Wept as described in l (a) above, County governments are not eligible applicants.

(c) Eligible Activities: GPPG funds may be used for planning only activities that include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible.

(d) Project Eligibility: All activities undertaken with GPPG funds must be eligible under 24 CFR Part 570, Subpart I, .482. All applications containing proposed ineligible or non-planning activities will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination node by OM.

(e) Project Benefit: The proposed activities must meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I, .483, (b) (5), (c) (3) or (d), of either providing direct benefit to low and moderate income persons, removing slum or blighting influences within that community, or meeting community development needs having a particular urgency.

(f) Federal and State Certifications for Local Governments: All communities applying for GPPG funds must certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) adhere to applicable Energy Efficiency Building Performance Standards;

(iv) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation requirements;

(vii) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding nay obtain a financial interest or benefit, have an interest in or benefit from the activity, (or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(ix) if the project that was assisted with GPPG funds was to be implemented, it would meet one of the national objectives of the CDBG program and

(x) reviewed the project proposed in the application to be sure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(g) Prohibition on Multiple Grants: Units of local government and unorganized territories nay not benefit from more than one General Purpose Planning Grant during the same grant year.

2. Special Program Requirements: GPPG applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply far the 1994 General Purpose Planning Grant program, communities that received Community Revitalization (CR) grants in 1989 must have conditionally closed their grants by April 8, 1994. Communities that received CR grants in 1990 mist have expended 100% of their benefit activity funds by April 8, 1994. Communities that received CR grants in 1991 must have obligated 100% of their benefit activity funds by April 8, 1994. Communities that received CR grants in 1992 must have obligated at least 50% of their benefit activity funds by April 8, 1994. Communities that received GPPG funds in 1993 Rust have obligated at least 25% of their benefit activity funds by April 8, 1994.

(b) Exceptions: Grant recipients may request a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet the above performance requirements.

(c) Maximum GPPG award amount: The maximum award is $10,000.

(d) Benefit of Planning: Communities must describe how the project assisted with GPPG funds, if implemented, would meet one of the national objectives of the CDBG program an; described in 1(e) above.

3. Selection Process: Applications for GPPG's will be accepted April 8, 1994. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. Applications will then be reviewed based on the following criteria:

(a) Description of Problem (30 points): A description of the problem(s) the community wants to resolve, how the problem(s) was identified, and the impact of the problem(s) on the community.

(b) Development of Strategy (30 points): A description of how the GPPG program will work with local government, citizens groups, agencies, and local businesses towards the development of strategies that work towards common goals. This strategy should identify the most effective solution to the problem(s) and how GPPG funds will be used in the formulation of this solution. An estimate of the amount of GPPG funds needed and itemized breakdown of the proposed planning budget must be included.

(c) Project Leverage (40 points): A description of other resources (local, state, federal, private) that will be contributed to the project. These may include commitments obtained or, sought to date.

4. Phase II Project Development: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants will awarded funds until the funding available in the GPPG program is exhausted. A community will receive the amount necessary to complete its project, up to the maximum, provided it completes a contract with DECD.

The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to finalize your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

5. Allocation: The GPPG allocation is $150,000. Up to $70,000 will be available for studies to assist communities in developing strategies for downtown revitalization.

C. GROWTH MANAGEMENT PLANNING GRANTS

The Growth Management Planning Grant (GMP) program is intended to enable Maine's communities to develop comprehensive plans and implementation measures to prepare for and manage their future growth and development. The plans and implementation measures will help communities recognize strengths and weaknesses while identifying their planning goals for a ten year period and define strategies to implement the plans. A community's growth management planning program must be consistent with established State goals to protect natural and cultural resources, enhance economic development, affordable housing and recreational opportunities and identify and plan for public facilities needs.

1. Threshold Criteria: The State will award GMP grants to communities, provided they meet the following threshold criteria:

(a) Eligibility:

(i) Planning Assistance Grants: have not previously received a planning assistance grant from the DOCK

(ii) Implementation Assistance Grant: (a) have not previously received an implementation assistance grant from the DECD; and (b) have a locally adopted comprehensive plan that has been reviewed by the OCD and found to be consistent with the Growth Management Act, or receive a special waiver of this requirement.

(b) Benefit: At least 51% of their population is law and moderate income;

(c) Capacity: Demonstrate the means and ability to complete the planning program.

(d) Federal and State Certifications for Local Governments: All communities applying for GMP funds must certify they will:

(i) minimize displacement and adhere to a displacement policy set forth by Section 104 (d) of the Housing and Community Development Act of 1974, as amended;

(ii) comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) establish a community development plan;

(iv) meet all required State and Federal public participation requirements;

(v) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying; and

(vi) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest in any contract, subcontract or agreement with respect to CDBG activities.

2. Special Program Requirements: GMP applicants must also comply with the following:

(a) Match: communities will provide a local match to the grant funds of 15% of the total project, (85% grant/15% local share);

(b) Match Waiver: the local match requirement may be reduced at the discretion of the OM when a community makes such a request and demonstrated an inability to fund the local match;

(c) State Share Funding Formula:

(i) Planning Assistance Grants: grant funds (State share) are provided in accordance with the following formula, based upon 1987 State census data: all communities with populations of 500 or less receive $13,500, for each additional 500 persons a community will receive $1,250, actual amounts will be determined by interpolation, to a maximum grant amount of $60,000;

(ii) Implementation Assistance Grants: a maximum of $9,375 will be awarded to each community in accordance with provision of a full local match. Communities that provide a diminished local match will receive a proportionally reduced grant award.

(d) Growth Management Requirements: Communities participating in the Growth Management Planning Grant program funded by CDBG funds will be bound by the requirements of the DECD's Growth Management Program pursuant to, Title 30-A, MRSA, Chapter 187 and any rules adopted by the OCD.

3. Selection Process: Communities will be made offers of GMP grants by OCD in the following order of preference:

(a) Van Buren, Phillips, Bingham, Jonesport, and Milbridge are the eligible communities with populations over 1,000;

(b) implementation grants to communities that meet the threshold criteria and have locally adopted, consistent comprehensive plans. Communities that qualify for this group on the date funding is available will be selected for a grant by lottery;

(c) selection of all other communities will be made by lottery, with allowances to foster regional distribution throughout the State;

(d) each community, upon receipt of notification of a grant offer, will be provided 45 calendar days to accept the funds. After this time period has lapsed, funds initially reserved for that community will be made available to the next community based upon the selection process (a-d).

(e) Funds will be distributed in the following manner:

(i) Beginning May 1, 1994 with the first community listed in 3 (a), funds will be reserved for communities up to the level of funds in the pool.

(ii) If a community rejects the funds, or requests a reduced level from the amount of the offer, the next community as established in the selection process will be offered funds.

(iii) Offers will be node until all funds are exhausted or all communities that wish to participate have received grants.

4. Approval Process: OCD staff will review threshold criteria, make grant offers based upon selection criteria and enter, into contracts, including detailed work plan programs, with selected communities.

D. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance (TA) Grant Program is to provide grant funding to the following preselected lead communities that will act on behalf of communities, within the existing Regional Council planning districts.

The lead communities have been selected on the basis of their willingness to assume the responsibility of administering this grant. These lead communities will assume certain administrative work, but will not receive any greater program benefit than neighboring communities that receive technical assistance for the Community Development Block Grant Program.

The following lead communities may provide technical assistance services under contract with their respective Regional Council to provide information about the Community Development Block Grant Program to communities in their region and to assist interested communities in preparing grant applications in the program categories:

Boothbay Harbor

Caribou

Ellsworth

Freeport

Kittery

Mechanic Falls

Orono

Winslow

The following lead communities may Request for Proposals and be selected as technical assistance providers under the Community Development Block Grant Program to communities in their identified region and, if selected, assist interested communities in preparing grant applications in the program categories. The lead community will develop this RFP based an criteria developed through the Department of Economic and Community Development. These communities are:

Bath

Eastport

Rockland

Any contracts for services provided hereunder shall be subject to all applicable requirements of the U. S. Department of Housing and Urban Development. If any lead community satisfactorily undertake and complete its responsibilities under this program, the Department of Economic and community Development reserves the right to remove said community and name a replacement.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET

GRANT YEAR 1994

Projected FY 1994 CDBG Program Budget ¹ $14,339,000

Administration 386,780

Technical Assistance Administration 143,390

MAXIMUM BUDGET

1. Housing Assistance Grants 3,075,000

2. Public Facilities/Infrastructure Grants 3,000,000

3. Public Service Grants 300,000

4. Urgent Needs Grants 300,000

5. Reserved Grants 1,600,000

6. Development Fund 1,450,000

7. Regional Assistance Fund 843,830

8. Micro loan Program 500,000

9. Economic Development Infrastructure Program 1,500,000

10. Interim Finance Program ² See Below

11. Phase II Planning Grants 100,000

12. General Purpose Planning Grants 150,000

13. Growth Management Planning Grants 110,000

14. Quality Main Street Strategy Grants 480,000

15. Defense Conversion Planning Grants 200,000

16. Technical Assistance Grants 200,000

¹ The total program budget is comprised of a federal allocation of $14,339,000 plus a State Match to equal at least $286,780 (which is 2% of the federal allocation).

² The budget far the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis. The maximum budget far this program is $5,000,000. This program is capitalized only as loans are issued.

E. QUALITY MAIN STREET STRATEGY GRANTS

The purpose of the Quality Main Street Strategy (QMS) program is to provide financial assistance to communities for the development of strategies to revitalize main streets and downtowns.

1. Threshold Criteria.: The State will award QMS funds to one community in each of Maine's sixteen counties, provided they meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including Plantations, are eligible to apply for and receive QMS funds. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive QMS funds. Except as described in 1 (a) above, County Governments are not eligible applicants.

(c) Eligible Activities: QMS funds may be used for Planning only activities related to the economic revitalization of a main street that include studies, analyses, data gathering preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible.

(d) Project Eligibility: All activities undertaken with QMS funds must be eligible under 24 CFR, Part 570, Subpart I, .482. All applications containing proposed ineligible or non-planning activities will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Project Benefit: The proposed activities mast meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I, .483, (b) (5), (c) (3) or (d), of either providing direct benefit to low and moderate income persons, removing slum or blighting influences within that community, or meeting community development needs having a particular urgency.

(f) Federal and State Certifications for Local Governments: All communities applying for QMS funds must certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil rights Acts of 1964 and 1968;

(iii) adhere to applicable Energy Efficiency building Performance Standards;

(iv) not attempt to recover certain capital costs of public improvements funded in part with QMS monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation requirements;

(vii) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official, or official of State or local government, or of any designated public agencies, or subrecipients which are receiving QMS funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities; and

(ix) if the project that was assisted with QMS funds was to be implemented, it would meet one of the national objectives of the Program.

2. Special Program Requirements: QMS applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1994 Quality Main Street Strategy Grant Program, communities that have received CDBG funding since 19982 for downtown revitalization must describe changes in economic conditions, infrastructure capacity or other circumstances that demonstrate the necessity of QMS assistance.

(b) Growth Management: Applicants for QMS must define their status within Maine's Growth Management Program. Communities that have accepted planning assistance funds, have a consistent comprehensive plan, and/or have accepted implementation funds must conduct their QMS planning in accord with their growth management policies. communities that are not currently participating in the Growth Management Program must state their willingness to do so.

(c) Maximum QMHS award amount: The maximum award is $30,000.

(d) Benefit of Planning: Communities must describe how the project assisted with QMS funds, if implemented, would meet one of the national objectives of the CDBG program, as described in 1(e) above,

3. Selection Process: Applications far QMS will be accepted May 9, 1994. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. Applications will then reviewed based on the following criteria:

(a) Description of Problem (30 points): A description of the problem (s) the community wants to resolve including the economic condition of the main street how the problem(s) was identified including the events leading to the present situation, and the impact of the problem(s) on the community.

(b) Development of Strategy (30 paints): A description of how the OAS program will work with local government, citizens groups, agencies, and local businesses toward the development of strategies that work toward common goals for revitalizing the main street. This strategy should identify the most effective solution to the problem(s) and how QMS funds will be used in the formulation of this solution. An estimate of the amount of QMS funds needed and itemized breakdown of the proposed planning budget must be included.

(c) Project Leverage (40 points): A description of other resources (local, state, federal, private) that will be contributed to the project. These may include commitments obtained or sought to date.

4. Phase II Project Development: Applicants will be placed in rank order from highest to lowest by county according to the scores determined by the scoring team. The highest scoring applicant in each county will receive a QMS award. A community will receive the amount necessary to complete its project, up to the maximum, provided it completes a contract with DECD.

The emphasis during Phase II will be to finalize project development The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to finalize your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive QMS funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. Activities must be cleared through an environmental review process prior to obligating QMS funds. OCD staff will remain involved with the community through the end of the project.

5. Allocation: The QMS allocation is $480,000. Up to $30,000 will be available for studies to assist one community in each of Maine's sixteen counties in developing a strategy far economic revitalization of main street and downtowns.

F. DEFENSE CONVERSION PLANNING GRANTS

The purpose of the Defense Conversion Planning Grant (DCPG) program is provide financial assistance to community partnerships that will be affected by defense reductions and lack resources to develop a regional strategy to ameliorate impacts to local and regional economies.

1. Threshold Criteria: The State will award DCPG funds to community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: Groups of communities that are units of general local government in Maine including plantations, are eligible to apply for and receive DCPG funds. County governments may apply on behalf of unorganized territories. The multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive DCPG funds. Except as described in l (a) above, County governments are not eligible applicants.

(c) Eligible Activities: DCPG funds may be used for planning only activities related to the development of intergovernmental, interlocal and alternative strategies to ameliorate the impacts of defense downsizing and/or base closure to local and regional economies. Those activities include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible.

(d) Project Eligibility: All activities undertaken with DCPG funds rust be eligible under 24 CFR, Part 570, Subpart I, .482. applications containing proposed ineligible or non-planning activities will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Project Benefit: The proposed activities must meet one of the national objectives pursuant to 24 CFR, Part 570, Subpart I .483, (b) (5),(c) (3) or (d), of either providing direct benefit to low and moderate income persons, removing slum or blighting influences within that community, or meeting community development needs having a particular urgency.

(f) Federal and State Certifications for Local Governments: All communities applying for DCPG funds must certify they will:

(i) minimize displacement and adhere to a locally adopted displacement policy as set forth in Section 104(d) of the Housing and community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) adhere to applicable Energy Efficiency Building Performance Standards;

(iv) not attempt to recover certain capital costs of public improvements funded in part with CDBG monies;

(v) establish a community development plan;

(vi) meet all required State and Federal public participation requirements;

(vii) comply with the Federal requirements of Section 319 of Public law 101-122 regarding government-wide restriction on lobbying;

(viii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(ix) if the project that was assisted with DCPG funds was to be implemented, it would meet one of the national objectives of the CDBG program; and

(x) develop the defense conversion strategy funded by DCPG with awareness of any comprehensive plans in the communities of the region as well as applicable state and local land use requirements.

2. Special Program Requirements: DCPG applicants must also comply with the following:

(a) Past Performance: Not applicable

(b) Funding Restrictions: DCPG funds are limited to coalitions of communities which:

(i) have not received, or will not in the future be eligible for, Office of Economic Adjustment (OEA) planning funds or Economic Development Administration (EDA) planning directly related to defense conversion impacts; and

(ii) have now, or will have, measurable economic impact related to defense downsizing and base closure measured in terms of job loss, housing vacancy, economic impact on infrastructure, e.g. sewer and water.

(c) Maximum DCPG award amount: The maximum award is $50,000.

(d) Benefit of Planning: Communities must describe how the project assisted with DCPG funds, if implemented, would meet one of the national objectives of the CDBG program as described in 1(e) above.

3. Selection Process: Applications for DCPG's will be accepted May 9, 1994. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. Applications will then be reviewed based on the following criteria:

(a) Description of Problem (30 points): A description of de downsizing or base closure issues that confront the coalition of communities. This discussion should include the impacts on sustainable development in the area, an overview of the regional economy including competitive position and strengths, an analysis of the economic resource base, and how the problem(s) were identified by the group.

(b) Development of Strategy (30 points): A description of how the DCPG program will work with local governments, citizens groups, agencies, and local businesses toward the development strategies that work toward common goals. This strategy address the following major issues: development capacity, support of current business/industrial base, enterprise developments, development infrastructure, human resources, and economic growth options. A description funds of how DCPG funds will be used in the development of the strategy including an estimate of the amount of DCPG funds needed and itemized breakdown of the proposed planning budget is required.

(c) Regional Involvement (40 points): A description of how the strategic planning will involve all participating communities and how all the communities All contribute other resources (local, state, federal, private) to the project. These may include commitments obtained or sought to date.

4. Phase II Project Development: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants will awarded funds until the funding available in the DCPG program is exhausted.. A community will receive the amount necessary to complete its project, up to the maximum, provided it completes a contract with DECD.

The emphasis during Phase II will be to finalize project development. The goal is to develop a local-reqional-State partnership that will facilitate project development that best meets the identified needs of the group of communities, supports regional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to finalize your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG fends. Communities not baying a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

5. Allocation: The DCPG allocation is $200,000.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

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 giants as a result of the 1994 CDBG program but unable to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve 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 1994 CDBG program, or added to the available monies for the 1995 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 1994 CDBG program or added to the available monies for the 1995 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, Urgent Need, Development Fund, Regional Assistance, Micro-Loan, Economic Development Infrastructure, Phase II Planning, General Purpose Planning, Growth Management Planning, Quality Main Street Strategy, and Defense Conversion Planning Grant Programs may be added to any open CDBG contract, used to make additional awards in any 1994 CDBG program or added to the available monies for the 1995 competition.

3. State Grants from HUD: Additional HUD allocations to the State of Maine may be added to any open CDBG contract, used to make additional awards in any 1994 CDBG program or added to the available monies for the 1995 competition.

4. Basis for Redistribution: The decision on how to redistribute the types of funds described in Paragraphs 1, 2 and 3 above 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 scores above the 85 point threshold in 1994 competitions but did not receive funding and the possibility of holding additional competitions during the 1994 Program. Additional competitions will be held only as a last resort, and be limited to Housing Assistance, Public Facility/Infrastructure, Public Service, Micro-Loan, and Economic Development Infrastructure. In all cases, these additional competitions and the subsequent programs developed, will be subject to the applicable section(s) of this 1994 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 Final Statement.

All staff recommendations regarding redistribution of funds in the 1994 CDBG program will be subject to approval by the Director of the OCD.

B. PROGRAM INCOME

As used in this Proposed 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 returned to the State may be used for administrative costs. The balance of program income (98%) will be used to fund new 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 13% in the HA, PFIG and EDI programs and not to exceed 18% in the PS and ML programs, 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, Public Facilities/Infrastructure, Public Service, Urgent Need, Reserved, Micro-Loan, Economic Development Infrastructure: 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 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 far loans to businesses and/or developers, must undergo DECD's loan review process, 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: Wept for those grantees who can adequately demonstrate demand for the reuse of program income far 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 tie micro-loan Program.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1994 award may do so by submitting an appeal letter to the Commissioner of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be allowed. If an appeal is successful, funds will be reserved for the project from available or subsequent CDBG funding.

SECTION 7. AMENDMENT TO THE FINAL STATEMENT

The State can amend the 1994 Final Statement from time to time in accordance with the procedures required for the preparation and submission of the final statement. In addition, the amendment process will be guided by the State of Maine's Administrative Procedure Act.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. Section 13058(3)
• EFFECTIVE DATE: November 27, 1993
• AMENDED: December 18, 1993
• AMENDED: March 30, 1994 -- Sec. 1,4, 5, 6, & 7
• AMENDED: April 5, 1994 - Sec. 1, 4, 5, 6, & 7
• AMENDED: January 8, 1995 - Sec. 4 (D)(Sec. 4D & E changed to 4E & 4F) per Aaron ?.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• CONVERTED TO MS WORD: May 12, 2005
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 14 Community Development Block Grant Program: 1995 Final Statement

Code Me. R. 19-498 Ch. 14 Administration of 1995 Community Development Block Grant Small Cities Program {#sec-19-498-ch.-14 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 14}

1995 Maine Community Development

Block Grant Program

Final Statement, September 1994

Department of Economic and Community Development

Office of Community Development

State House Station # 130

(219 Capitol Street)

Augusta, Maine 04333

(207) 624-6800

1. Program overview 1

A. CDBG Objectives 1

B. Method of Distribution Structure 1

1. Community Development Methods of Distribution 2

2. Economic Development Methods of Distribution 2

3. Planning/Methods of Distribution 3

C. State Administration 3

1. General Administration Allocation 3

2. Technical Assistance Administration Allocation 3

D. Program Timeframe 3

E. Program Budget 4

F. Threshold Criteria and Regulations for 1995 CDBG Program 6

2. Community Development Methods of Distribution 9

A. Housing Assistance Grants 9

1. Threshold Criteria and Certifications 10

2. Program Priorities 11

3. Special Program Requirements 11

4. Selection Process 11

B. Public Facilities/Infrastructure Grants 14

1. Threshold Criteria 15

2. Program Activities 15

3. Special Program Requirements 15

4. Selection Process 16

C. Public Service Grants 19

1. Threshold Criteria 19

2. Program Priorities 20

3. Special Program Requirements 20

4. Selection Process 21

D. Urgent Need Giants 23

1. Special Threshold Criteria and Certifications 26

2. Special Program Requirements 24

3. Selection Process 24

4. Approval Process 25

E. Reserved Grants 25

1. Threshold Criteria 25

2. Special Program Requirements 26

3. Selection Process 26

4. Approval Process 26

5. Economic Development Methods of Distribution 27

A. Development Fund 27

1. Threshold Criteria 27

2. Special Program Requirements 28

3. Selection Process 29

4. Approval Process 30

B. Regional Assistance Fund 31

1. Threshold Criteria 31

2. Special Program Requirements 32

3. Selection Process 34

4. Approval Process 35

C. Micro-Loan Program 36

1. Threshold Criteria 36

2. Program Priorities 37

3. Special Program Requirements 37

4. Selection Process 38

D. Economic Development Infrastructure Program 41

1. Threshold Criteria 41

2. Program Priorities 41

3. Special Program Requirements 42

4. Selection Process 43

E. Interim Finance Program 45

1. Threshold Criteria 45

2. Special Program Requirements 46

3. Selection Process 47

4. Approval Process 47

5. Planning Methods of Distribution 47

A. Phase II Planning Grants 47

1. Threshold Criteria 47

2. Special Program Requirements 48

3. Selection Process 48

4. Approval Process 48

B. General Purpose Planning Grants 48

1. Threshold Criteria 48

2. Special Program Requirements 49

3. Selection Process 50

4. Phase II Project Development 50

5. Approval Process 50

C. Quality Main Street Strategy Grants 51

1. Threshold Criteria 51

2. Special Program Requirements 52

3. Selection Process 52

4. Phase II Development 53

5. Approval Process 53

D. Technical Assistance Grants 54

5. Redistribution of Grant Funds 55

A. Administrative Redistribution of Grant Funds 55

1. Local Government Grants from the State 55

2. Unallocated State Grants to local Governments 55

3. State Grants from HUD 55

4. Basis for Redistribution 55

B. Program Income 56

1. General Program Income Requirements 56

2. Special Program Requirements 57

3. Appeals 58

4. Amendment to the Final Statement 58

The Department of Economic and Community Development does not discriminate, on the basis of disability in admission to, access to, or operations of its programs, services, or activities. This material is available in alternate format by contacting 624-6800 or by contacting the Department's ADA Coordinator, Shirley Bartlett, at 287-2707.

19 489 DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 14: COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM:

1995 FINAL STATEMENT

SUMMARY: The 1995 Final Statement describes the design and the method of distribution of funds in Maine's 1995 Small Cities - Community Development Block Grant (CDBG) Program. The CDBG Program is administered pursuant to 5 M.R.S.A. §13073. The 1995 Final Statement was prepared by the Department of Economic and Community Development (DECD) following a review of the 1994 CDBG Program. As part of the Maine Administrative Procedure Act, DECD held three public bearings to solicit input for this Final Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The objective of the Maine CDBG Program is to serve as a catalyst for local governments to implement programs which:

1. benefit low and moderate income people;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, State and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems with innovative solutions that maximize resources.

B. METHOD OF DISTRIBUTION STRUCTURE

The DECD, through the Office of Community Development (OM), designs and offers programs allowing municipalities to achieve CDBG stated objectives. The purpose of the 1995 Final Statement is to provide units of local government with a description of the selection criteria for each program (called a method of distribution) that OCD will use to allocate CDBG funds among Maine communities. To assist communities in determining which program(s) best meet their needs, we have grouped the 1995 programs under three broad methods of distribution areas: Community Development, Economic Development and Planning.

1. Community Development Methods of Distribution

a. Housing assistance Grants: To provide financing to address acute housing needs of low and moderate income persons residing in the State of Maine.

b. Public Facilities/Infrastructure Grants: To provide financing for local infrastructure and public facility activities.

c. Public service Grants: To address human resource needs in a community by providing funding for operating expenses, equipment and program materials for public service programs.

d. Urgent Need Grants: To enable communities to address community development needs having a particular urgency.

e. Reserved Grants: To provide funding for the second year of a Housing Assistance or Public Facilities/Infrastructure grant initially determined in the previous year.

2. Economic Development Methods of Distribution

a. Development Fund: To provide financial resources to local governments which, in turn assist businesses to create/retain jobs for low and moderate income people.

b. Regional Assistance Fund: To provide financial resources to local governments or multi-jurisdictional organizations which can use the assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title DC) and the EDA Public Works Program (Title I), Planner Is Home Administration Programs, and Small Business Administration Programs.

c. Micro-Loan Program: To provide communities with funds for small loans to assist existing and new local businesses create/retain jobs for low and moderate income

d. Economic Development Infrastructure Grants: To provide funding to communities where public infrastructure must be installed or improved to enable an existing or new business to create/retain jobs for low and moderate income people.

e. Interim Finance Program: To utilize funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

3. Planning Methods of Distribution

a. Phase II Planning Grants: To assist communities in the Proposed development of their CDBG strategies that address specific community development problems.

b. General Purpose Planning Grants: To provide funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

c. Quality Main Street Strategy Grants: To provide financial assistance to communities for the development of strategies to revitalize main streets and downtowns.

C. STATE ADMINISTRATION

1. General Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1992), Section 106(d) (3) (A) is permitted and will utilize $100,000 plus 2% of its annual allotment from the Department of Housing and Urban Development (HUD) to assist in administering the State's Small Cities CDBG Program in accordance with Federal, State and local requirements.

2. Technical Assistance Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1992), Section 106(d) (5) is permitted and will utilize 1% of its annual allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. PROGRAM TIMEFRAME

All application deadlines are listed below.

Quality Main; street strategy and

General Purpose Planning February 16, 1995

Housing Assistance November 18, 1994

Public Facilities/Infrastructure December 2, 1994

Micro-Loan and Public Service December 16, 1994

Economic Development Infrastructure November 18, 1994

March 29, 1995

June 1, 1995

Urgent Need 1st come basis beginning

February 1, 1995

Development Fund 1st Thursday of month

Regional Assistance Fund see Section 3. D. 4. (a)

Interim Finance Program 1st come basis

E. PROGRAM BUDGET

The budget an the next page indicates the manner in which CDBG Funds will be allocated among programs for the 1995 grant year. The total budget is comprised of a federal allocation from HUD, along with a State match equivalent of up to 2% of the federal allocation. The amount of the 1995 federal allocation is projected to be $14,339,000. Based on the estimated federal amount, the maximum amount available for each program is indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET

GRANT YEAR 1995

Projected FY 1995 CDBG Program Budget ¹ $17,181,000

Administration 443,620

Technical Assistance Administration 171,000

MAXIMUM BUDGET

1. Housing Assistance Grants

Single community 2,000,000

Multi-jurisdictional 1,075,000

2. Public Facilities/Infrastructure

Sub Category 1 3,200,000

Sub Category 2 1,250,000

Sub Category 3 225,000

3. Public Service Grants 287,500

4. Urgent Need Grants 300,000

5. Reserved Grants 2,000,000

6. Development Fund 350,000

7. Regional Assistance Fund 1,400,000

8. Micro Loan Program 475,000

9. Economic Development Infrastructure Program 3,153,880

10. Interim Finance Program ² See Below

11. Phase II Planning Grants 100,000

12. General Purpose Planning Grants 150,000

13. Quality Main Street Strategy Grants 400,000

14. Technical Assistance Grants 200,000

¹ The total program budget is comprised of a projected federal allocation of $17,181,000 plus a State match to equal at least $343,620 (which is 2% of the-federal allocation).

² The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

F. THRESHOLD CRITERIA FOR THE 1995 CDBG PROGRAM

(1) The following State and Federal Regulations APPLY TO ALL PROGRAMS:

Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended:

(ii) take action to affirmatively further fair housing and comply with the provisions of the civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of improvements funded in part with CDBG monies;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) reviewed the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

(2) The following general requirements APPLY TO ALL PROGRAMS:

(a) Prohibition on Multiple Grants: Units of local government and unorganized territories may not benefit from more than one grant per program per grant year.

(b) Prohibition on Subsequent Year Award: Units of general local government and unorganized territories that benefited from a 1993 two year award, (whether a single community or a part of a of a multi-jurisdictional program), may not apply again in that specific program until the 1996 program. Units of local government that benefited from a 1994 single year award may not apply again in that specific program until the 1996 program. Units of local government and unorganized territories that received a 1994 two year award may not apply again in that specific program until the 1997 program. Prohibition against subsequent year awards is program specific.

(c) Computation of Distress Scores - Multi-Jurisdictional Applications: Distress scores for multi-jurisdictional applications will be computed an a weighted average basis.

(population 1)(distress 1)+(population 2)(distress 2)+.../population 1 + population 2 +... = weighted average distress score.

(d) Phase II Planning Grants: Pursuant to Section 4A of this Final Statement, Phase II participants will be eligible for planning grant funds on an as needed basis to assist payment of project development costs. Extent of assistance shall be determined by OCD staff.

(e) Two Year Grant Criteria: (APPLICABLE TO ONLY THE FOLLOWING PROGRAMS: PUBLIC FACILITIES/INFRASTRUCTURE (PFIG) PROGRAM SUBCATEGORY 1, AND THE HOUSING ASSISTANCE PROGRAM). Applicants may be awarded a two year grant if they meet all three of the following criteria:

(i) The timeframe required to complete the proposed grant activities must exceed the maximum 18 month period allowed for a single year grant:

(ii) The total amount of requested funds must exceed the maximum limit allowed for a single year grant or a multi-jurisdictional project in that program;

(iii) The activities proposed for the second year of the grant must be related to, and necessary to complete, activities proposed for the first year; OR, the proposed second year activities must be related to, and necessary to complete, the overall project begun in the first year.

(3) The following Threshold criteria APPLY ONLY TO THE FOLLOWING PROGRAMS:

• Housing Assistance (HA) * Public Service Grant(PSG)

• Economic Development Infrastructure (EDI) * Micro Loan (ML)

• Public Facilities Infrastructure (PFIG)

(a) Threshold Criteria: The State will distribute CDBG funds to local governments through the annual CDBG Selection Process. The threshold criteria for the process are listed below:

(i) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply an behalf of unorganized territories. Counties may make more than one application, per program, but only on behalf of different unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. These multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(ii) Ineligible Applicants: The entitlement communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive State CDBG program. funds. Except as designated in 1(a) above, County governments are not eligible applicants.

(iii) Project Eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities the applicant proposes to undertake with CDBG funds. Those activities must be included in 1(c) of that program and be eligible under 24 CFR, Part 570.482. In the event an application contains an activity not listed in 1(c) of that program, the entire application will be judged riot to have net the project eligibility criteria. In all cases, the applicant will be notified in writing of the determination made by OCD.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants mill be invited to proceed to Phase II until the funding available in that program is exhausted while an invitation into Phase II is not a guarantee of funding, communities will receive the amount necessary to complete its project, up to the maximum grant award for that program.

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and/or market studies (and Structural analysis in the case of Housing Assistance)

(bb) Project Eligibility: Proposed activities are verified for eligibility pursuant to 24 CFR, Part 570.482 and are cleared through the environmental review process pursuant to 24 CFR Part 58.

(cc) Project Benefit: The proposed activities are verified to meet one of the national objectives pursuant to 24 CFR, Part 570.483 et seq., of either providing direct benefit to low and moderate income persons or removing slum and blighting influences within that community.

(dd) Management Plan: Details of the structure and methods established by the community for program management.

(ee) Regulations: Both State and Federal regulations will be reviewed for compliance.

(c) Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, supports multi-jurisdictional development and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to identify finalizing your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

SECTION 2. COMMUNITY DEVELOPMENT METHODS OF DISTRIBUTION

A. HOUSING ASSISTANCE GRANTS

The purpose of a Housing Assistance (HA) Grant is to provide financing to address acute housing needs of low and moderate income persons residing in the State of Maine. These needs must be part of a community development strategy which will lead to future public and private investments.

1. Special Threshold Criteria and Certifications : The State will distribute Housing Assistance funds to local governments through the annual Housing Assistance Selection Process. The threshold criteria for the process and certifications are listed below:

(a) Eligible Activities: Eligible activities include Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition,, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers, directly related to assisting or to creating residential housing units.

(b) All communities applying for Housing Assistance funds must certify that they have/will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent to 10 percent of the total grant award.

2. Program Priorities:

(a) Activity Priority: Not applicable.

3. Special Program Requirements: Housing Assistance applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1995 Housing Assistance program, communities that received Community Revitalization (CR) grants in 1990 must have conditionally closed their grants by November 18, 1994. Communities that received CR grants in 1991 must have expended 100% of their benefit activity funds by November 18, 1994. Communities that received CR grants in 1992 must have obligated 100% of their benefit activity funds by November 18, 1994. Communities that received HA grants in 1993 must have obligated at least 50% of their benefit activity funds by November 18, 1994. These requirements relate to all communities in a multi-jurisdictional program.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due unforeseen changes in scheduled availability of leveraged funds or acts of nature or 2) the recipient has received unanticipated program income and is unable to meet the above performance requirements.

(c) Maximum Housing Assistance Grant Amount: The maximum grant amount will be $300,000 for a one year grant and a $600,000 maximum for a two year grant. The maximum grant amount for a multi-jurisdictional project will be $375,000 for one year grants and $750,000 for two year grants.

(d) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants in local housing rehabilitation programs will be no, more than $15,000 per unit rehabilitated. in cases of replacement housing, foundation work, inadequate sewage disposal, lick of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or the need for handicapped accessibility must be addressed, up to an additional $7,000 per unit nay be made available. In extreme circumstances the maximum housing rehabilitation cost can be waived by OCD.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

The housing assistance grant program will have two competitions: one for multi-jurisdictional applications and one for single community applications. Applicant communities may submit one only application and must select either of the two competition categories. OCD reserves the right to transfer funds between these two budget categories if acceptable applications (score of 85 or higher) are not received in either of the categories.

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's housing problems that it would like to address with Housing Assistance funds. The application deadline is November 18, 1994. A minimum score of 85 will be required for an application to be considered for funding. Applications will be evaluated according to the following criteria.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with a Housing Assistance Grant. Points will be awarded in the following categories:

(aa) Scope of Problem (5 points) - Description of the magnitude and nature of the substandard housing in the applicant's area.

(bb) Identification of Problem (5 points) Description of the process used in identifying the substandard housing problem.

(cc) Life Safety Considerations (5 points) - Description of the frequency, severity and nature of potential threats to health and safety contained in the housing units.

(dd) Energy Efficiency Considerations (5 points) ­Description of deficiencies that inhibit low and moderate income residents from being able to maintain reasonable energy efficiency standards in an affordable and comfortable manner.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of bow the applicant would like to use Housing Assistance funds to solve the problems or needs discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Effectiveness (10 points) - How the proposed solution relates to problems or needs identified in the Problem Statement and how Housing Assistance funds will be used in solving those problems in a cost effective manner.

(bb) Life Safety and Energy Efficiency (10 points) - How the proposed solution addresses serious threats to health and safety and improves energy efficiency of the units to be rehabilitated or created.

(cc) Project Feasibility (10 points) - How the proposed solution will impact the homing problems in a timely manner and the readiness of the applicant to implement the program.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Public Meetings and Hearings (10 points) - A description of the public meetings and hearings that were held specific to this application and their role in identifying problems, fostering public comments and formulating proposed solutions.

(bb) Local Organizations, Residents and Public Officials: (10 points) - A description of the roles played by these groups and individuals in the process that led up to this application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Commitments, along with an estimated timeframe regarding when various aspects of the program will be undertaken, may be reviewed. For multi-jurisdictional applications, each participating community must provide a commitment of resources approximately commensurate with the amount of planned rehabilitation to occur within that community. Points will be awarded in the following categories:

(aa) Partnerships: (10 points). A list of those groups that will work in close concert with the applicant on the housing project and a description of bow each will provide financial resources or technical assistance.

(bb) Local Commitment: (10 points) A description of the technical and financial resources the applicant and private citizens will provide to the project.

(v) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(aa) Housing (2.5 points): a composite scare consisting of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(bb) Economic Conditions (2.5 points total): Percentage Factor (1.5 points) = a composite score derived from two factors -- a ranking based an the unemployment rates of the applicant communities, plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 points) - a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low .33). Unequal divisions will be rounded up.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

(dd) Poverty Level (2.5 points): a score derived by using the % of persons in a community below 150% of the poverty, level as defined by the most recent data available. The poverty level % will be ranked within the four population categories discussed above.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The purpose of a Public Facilities/Infrastructure Grant (PFIG) is to provide financing for local infrastructure and public facility activities which are part of a community development strategy and will lead to future public and private investments.

1. Special Threshold Criteria and Certifications: The State will distribute PFIG funds to local governments through the annual Public Facilities/Infrastructure Grant Application Selection Process. The threshold criteria for the process and certifications are listed below:

(a) Eligible Activities: Eligible activities include infrastructure for new housing construction and construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with such projects as water and sewer facilities, non-housing rehabilitation hook-ups, wharfs, flood and drainage improvements, parking, streets, curbs, gutters, sidewalks, fire protection facilities, community, child, senior, and health centers, libraries, salt/sand storage sheds, shelters for the homeless, sheltered workshops, recreational facilities, parks, removal of architectural barriers, downtown revitalization, neighborhood revitalization and public works garages. An application may include more than one eligible PFIG activity.

(b) All Communities applying for PFIG funds must certify that they have/will:

(i) adhere to ASHRAE/IES 90.1-1990 for energy efficient design and ASHRAE 62-1990 for ventilation requirements in the construction of all commercial and institutional buildings;

(ii) provide a local match equivalent to 2 0 percent of the total grant award.

2. Program Activities:

(a) Activity Breakdown: In Phase I of the selection process, all PFIG applications will be sorted into one of three separate sub-categories, based on the activities contained in the application. Each applicant must identify the sub-category for which it is applying. Applicants may only apply for one sub-category. Within a sub-category applicants must identify the specific activity(s) they intend to implement but may apply for multiple activities within a sub-category. The sub-categories of activities are described below.

(i) Sub-category 1: Water, sewer, sewer hook-ups, storm drainage/CSO, facilities reconstruction (in conjunction with a sewer or water project) downtown revitalization, infrastructure for now housing construction.

(ii) Sub-category 2: Streets/roads, sidewalks, public wharfs/ piers, fire stations and firefighting equipment, community centers, child care/senior citizen centers, health care centers, sheltered -workshops, homeless shelters, libraries, transfer stations, neighborhood revitalization removal of architectural barriers.

(iii) Sub-category 3: Parking, street curbs, gutters, public parks, recreation facilities, public works garages, and salt/sand storage facilities.

3. Special Program Requirements: PFIG applicants must also comply with the following:

(a) Post Performance: In order to be eligible to apply for the 1995 program, communities that received Community Revitalization (CR) grants in 1990 must have conditionally closed their grants by December 2, 1994. Communities that received CR grants in 1991 must have expended 100% of their benefit activity funds by December 2, 13994. Communities that received CR grants in 1992 must have obligated 100% of their benefit activity funds by December 2, 1994. Communities that received PFIG grants in 1993 must have obligated at least 50% of their benefit activity funds by December 2, 1994.

(b) Exceptions: Grant recipients may submit a request to DECD for a waiver of this special requirement only under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet performance requirements described above.

(c) Maximum Public Facilities/Infrastructure Grant Amounts: The maximum grant amounts are determined by the activity sub-categories described in 2(b) above. For activities in Sub-category 1, the maximum grant amount is $400,000 for a one year grant and $800,000 for a two year grant. For activities in Sub-category 2, the maximum grant amount is $250,000 for a single year grant. For activities in Sub-category 3, the maximum grant amount is $75,000 for a single year grant. Activities in a multi-jurisdictional project are eligible for amounts up to a maximum of 25% greater in each grant year.

(d) Funding Restrictions PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other housing activities are eligible In the Housing Assistance Grant program.

(e) Grant Termination: The OCD reserves the right to terminate a community's PFIG award if progress is riot apparent within 12 months from the date of contract with DECD.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

(a) Phase I Application: The maximum length of a Phase I application is ten pages. It is designed to be a description of a community's problems relating, directly to public facilities and infrastructure that it would like to address with CDBG assistance. The application deadline is December 2, 1994. Each application will be rated in relation to all other applications in that sub-category. A minimum score of 85 will be necessary for an application to be considered for further funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the infrastructure/public facility problems or needs the applicant wishes to address with CDBG assistance. Points will be awarded in the following categories:

(aa) Identification (10 points) - Scope and magnitude of the problems or needs to be addressed with CDBG funds.

(bb) Priority (5 points) - Rank of problems or needs with other local, multi-jurisdictional, and/or State problems or needs.

(cc) Health, Safety, Welfare (5 points) - Impact of problem an public health, safety, and welfare.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of what the applicant will do to address problems discussed in the Problem Statement, when the applicant will take actions to solve these problems, and how this will provide a solution to the problems presented. Points will be awarded in the following categories:

(aa) Identification (10 points) - Description of what will be done to solve problems included in the Problem Statement.

(bb) Action Plan (20 points) - Identification of tasks, timetables, and responsible parties in implementing the solution.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problems and solutions discussed in. the application. Points will be awarded in the following categories:

(aa) Process and Content (10 points) - Discussion of process followed at the local level, including descriptions of public meetings, hearings and other methods used to solicit citizen involvement.

(bb) Relevance (10 points) - Discussion of the connection between the citizen participation and the problems and solutions discussed in the application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Points will be awarded in the following categories:

(aa) Commitments (15 points) - list and description of the status of each resource committed to the solution.

(bb) Relevance (5 points) - Relationship between commitments and Proposed Solution and attempts to gain other commitments.

(v) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(aa) Housing (2.5 points): a composite score of two factors: the percent of substandard housing and the percent of households with income less than $15,000 per year and spending 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(bb) Economic Conditions (2.5 points total) - Percentage Factor (1.5 points) = a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities, plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 points = a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three equal segments and assigned points accordingly (high, 1; middle .66; low .33). Unequal divisions will be rounded up.

(cc) Local Fiscal Capacity (2.5 points): a score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

(dd) Poverty Level (2.5 points): a score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available. Poverty level percentages will be ranked within the four population categories discussed above.

C. PUBLIC SERVICE GRANTS

The purpose of a Public Service Grant (PSG) is to address human resource needs in a community by providing funding for operating expenses, equipment and program materials for public service programs.

1. Special Threshold Criteria and Certifications: The State will distribute PSG funds for public service activities to local governments through the annual Public Services Grant Application Selection Process. The threshold criteria and certifications for the process are listed below:

(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.

(b) All communities applying for PSG funds must certify they have/will:

(i) certify the public service to be provided represents: 1) a new service to the community or, 2) is a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during the 12 months prior to submission of the application; and

(ii) provide a local match equivalent to 20 percent of the total grant award.

2. Program Priorities:

(a) Multi-Jurisdictional Priority: multi-jurisdictional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 3 supplemental points in Phase I of the selection process.

(b) Activity Priority: Not applicable.

3. Special Program Requirements: PSG applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1995 PSG program, communities that received community Revitalization (CR) grants in 1990 must have conditionally closed their grants by December 16, 1994. Communities that received CR grants in 1991 must have expended loot of their benefit activity funds by December 16, 1994. Communities that received CR grants in 1992 mist have obligated 100% of their benefit activity funds by December 16, 1994. Communities that received PS grants in 1993 must have obligated at least 50% of their benefit activity funds by December 16, 1994.

(b) Exceptions: PSG recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Maximum Public Service Grant Amount: The maximum grant amount will be $50,000 for a single grant year. The maximum grant amount for a multi-jurisdictional project will be $62,500.

(d) Funding Restrictions: PSG funding is restricted to non-construction activities as listed in the Eligible Activities Section. Funding for construction or rehabilitation of public service facilities mist be in place before a PSG award will be node. Public service construction activities are considered public facilities and can be included in an application to the PFIG program.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's human resource problems that it would like to address with PSG assistance. The application deadline is December 16, 1994. These applications will be evaluated according to the following criteria. A minimum score of 85 points will be needed for projects to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with PSG assistance. Points will be awarded in the following categories:

(aa) Identification (10 points): Description/definition of the nature and magnitude of the public service need or problem confronting the applicant.

(bb) Health, Safety and Welfare (10 points): Description of the impact of the problem on individuals within the community and on the community as a whole.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would like to use PSG assistance to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following

(aa) Identification (10 points): Description of how PSG funds will be used to solve the problem described in the Problem Statement.

(bb) Action Plan (10 points): Description of the project timetable and parties responsible for implementing the solution.

(cc) Capacity (10 points): Description of abilities of implementing parties to do the project activities.

(iii) Citizen Participation (20 points): Citizen Participation is a descriptive demonstration of how local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Process and Content (10 points): Description of the process used to involve citizens and a summary of the comments and issues raised.

(bb) Relevance (10 points): Discussion of the connection between the citizen participation and the problems and solutions discussed in the application.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. Points will be awarded in the following categories:

(aa) Effort (5 points): Description of how the applicant sought other resources to assist the project.

(bb) Status (10 points): A list and status of commitments for the project.

(cc) Relevance (5 points): Discussion of how the other resources make the solution possible.

(v) Distress (10 points): OCD will derive a community's distress scare from the following two areas:

(aa) Unemployment Rate (3.5 points): a score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

Unemployment - Absolute Numbers (1.5 points): communities will be ranked from. highest to lowest based upon the numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low .5). Unequal divisions will be rounded up.

(bb) LMI Percentage (3.5 points): a score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 3.5 to determine the score for LMI percentage. Communities with an LMI of 51 percent cc more will receive the total points allowed.

LMI - Absolute Numbers (1.5 points): communities will be ranked from highest to lowest based upon the numbers of low and moderate income households. This ranking will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; low .5). Unequal divisions will be rounded up.

D. URGENT NEED GRANTS

The purpose of the Urgent Need Grant (UNG) Program is to provide financing that enables a community to address community development needs having a particular urgency.

1. Special Threshold Criteria and Certifications: UNG Program applicants must meet the following threshold criteria and certifications:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint emergency situations. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive UNG funds from the State. Except as described in l(a) above, County governments are not eligible applicants.

(c) Project Eligibility: Pursuant to 24 CFR Part 570.483, the applicant must seek to 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 the submission of an application;

(iii) is a project the applicant cannot finance on its own; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements: UNG applicants must also comply with the following:

(a) Necessary Documentation: The emergency situation to be addressed must be of such a nature it requires immediate action to alleviate the occurrence of or the imminent threat of widespread or severe injury or loss of life resulting from any natural or man-made cause.

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

(c) Maximum Urgent Need Grant Amount: The maximum grant amount will be $150,000. Contingent upon a federal or state declared disaster, the Commissioner of the State can waive this maximum.

3. Selection Process: Communities seeking to undertake a project on the basis of urgent need must submit an UNG application which includes the following:

(a) documentation the emergency situation was prompted by natural or man-made disasters that pose an imminent threat of widespread or severe injury or loss of life;

(b) certification the proposal is designed to address an urgent need and an immediate response is essential to initiate action that will halt the threat of widespread or severe 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 its own; and

(e) documentation that other financial resources are not available to implement the proposal.

Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria in l(c) above plus the Special Program requirements in 2 above. Grant proposals that meet these requirements may be awarded grants from the UNG Program, until the amount of funds available in the program have been committed. Having committed all funds in the program, the State reserves the right not to accept any additional applications.

4. Approval Process: The UNG funds will be available beginning February 1, 1995. Applications will be accepted on a first come basis. Following receipt of an application, the OCD shall review the application and verify that it contains all the required information. If the application is complete and funds remain available in the program, the Director of OCD will evaluate each proposal and make the decision on whether or not to make a grant award. Notification to the applicant of the Director's decision will initiate the processes necessary for contract award.

E. RESERVED GRANTS

The purpose of a Reserved Grant is to provide funding for the second year of a Housing Assistance (HA) or Public Facilities/Infrastructure (PFIG) grant award that was initially determined eligible in the previous grant year.

1. Threshold Criteria: 1995 Reserved grantees must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Reserved Grants. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn are not eligible to receive Reserved Grant funds. Except as described in 1(a) above, County governments are not eligible applicants.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570.483;

(d) the recipient must undertake eligible activities, pursuant to 24 CFR, Part 570.482, and approved during the 1994 HA or PFIG Phase II processes;

(e) All communities applying for HA or PFIG Reserved Grants must certify, they have/will:

(i) provide a local match equivalent to 10% of total project cost for HA awards and 20% of the total grant award or total project cost for PFIG; and

(ii) complete the required HA or PFIG Reserved Grant applications.

2. Special Program Requirements: 1995 reserved grantees must meet the following:

(a) Restriction an Applicants: eligible applicants are restricted to the following communities:

(i) Public Facilities/Infrastructure program:

Calais $400,000

Enfield $400,000

Fort Fairfield $400,000

Fort Kent $400,000

Mars Hill $110,000

Washburn $290,000

(b) Reasonable Progress: evidence that applicants are in line with the 1994 expenditure schedule as submitted in their HA or PFIG contract. Reserved Grant communities must have demonstrated reasonable progress in staffing, program design and contracting for their current program.

(c) LMI Expenditures: in the aggregate, 70% of the expenditures proposed by Reserved Grantees must result in benefit to low and moderate income persons.

3. Selection Process: Not applicable.

4. Approval Process: The following actions constitute the approval process for reserved grants:

(a) Applications from Reserved Grant communities will be invited during the 1995 Phase II Process.

(b) Each Reserved Grant application will be reviewed by the OCD. The OCD will:

(i) Review status reports of Reserved Grant communities and compare the reserved grant application to the second year of Idle project as proposed in the previous year's Phase II process;

(ii) Review activity schedule and management plan for acceptability based on project design and budget; and

(iii) Develop recommendations for the CDBG Program Manager regarding the application's acceptability, grant conditions and funding level.

(c) Recommendations an Reserved Grant applications will be reviewed by the CDBG Program Manage, who will recommend to the Director and Commissioner of the DECD that the Reserved Grant community:

(i) Be funded at the requested level;

(ii) Not receive a reserved grant (if ineligible costs were incurred during the administration of the previous year or the project is no longer feasible); or

(iii) Be funded at a reduced level (the amount of reduction will be determined by the changes in the project's activities and schedules as originally proposed or by evidence that the project cannot accomplish its original goals).

(d) The Commissioner of the DECD will announce reserve grant awards during the 1995 Phase II process.

3. ECONOMIC DEVELOPMENT METHODS OF DISTRIBUTION

A. DEVELOPMENT FUND

The purpose of the Development Fund (DF) is to provide financial resources to local governments which in turn assist businesses to create jobs for low and moderate income people.

1. Threshold criteria: DF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories.

(b) Ineligible applicants: Entitlement, communities of Portland, Bangor, Lewiston, and Auburn are not eligible to receive DF assistance. Except as described in 1(a) above, County governments are not eligible applicants.

(c) the proposed activities must meet one of the national objectives described in 24 CFR, Part 570.483, et seq.;

(d) 51% of the jobs created or retained as a result of CDBG expenditures proposed by the DF applicant are provided to persons of low and moderate income;

(e) undertake eligible activities, pursuant to 24 CFR, Part 570.482.

(f) complete the required DF application materials.

2. Special Program Requirements: DF proposals also must comply with the following:

(a) Necessary and Appropriate: A DF loan to a for-profit businesses must be for projects that are necessary and. appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing, Plan: The DF application should present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the app­lication. Project activities or uses of funds used to calculate the non-DF financing also must represent new investment.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business or the developer identified in the DF application. The loan must be provided under the terms stated in a DF letter of Conditions and the contract between DECD and the local government.

(d) 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 locational cost differentiations and the benefit derived from the assistance.

(e) LMI Benefit: In the aggregate, 70% of the program expenditures are provided to benefit persons of low and moderate income.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The DF project will be evaluated as a viable business proposal, The following considerations will be the focus of the Impact factor.

(i) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(ii) Financial Plan: The financing for the project is in place and legally, binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified accountant, preferably a CPA. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(iii) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash equity injection. other substantial participation may Substitute for a cash equity injection with appropriate explanation regarding equity participation.

(iv) IMF Loan repayment: Terms of the loan pay back are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG - DF monies for reuse.

(v) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter into security agreements.

(vi) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(vii) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(viii) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referable services from Joint Training Partnership Act and Job Service will also be reviewed.

(ix) Community and Economic Development: The primary and secondary impacts of the DF project on the community's plans bar future economic development will be evaluated. The review will also examine the ripple effect of the proposes on the community as a whole.

4. Approval Process:

(a) Application: Applications shall be submitted on the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each job creation proposal. Following staff analysis, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the Director of the OCD. The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, and attorney, a representative of private financing, a business person, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms proposed;

(iii) rejection with staff recommendation for complete/partial resubmission; and

(iv) rejection.

(c) Quarterly Allocation: The quarterly allocation will be limited to $87,500 plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director. The Director also reserves the right to reject any or all applications in any month.

If, while nearing the end of the quarter, available funds are not sufficient to finance credit-worthy proposals, the review process will incorporate ark objective needs factor (the distress factor described In Section 2.A.3. (v). Those proposals with the highest score in the needs factor will receive assistance first.

B. REGIONAL ASSISTANCE FUND

The purpose of the Regional Assistance Fund (RAF) is to provide financial resources to local governments or regional Organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I) or the Farmers Home Administration (FmHA) Rural Business Enterprise (RHE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's Small Cities CDBG program or conventional lending institutions.

1. Threshold Criteria: RAF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive RAF. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston, Auburn are not eligible to receive RAF funds.

(c) the proposed activities must meet one of the national objectives described In 24 CPR, Part 570.483 et seq.;

(d) 51% of the jobs created as a result of CDBG expenditures proposed by the RAF applicant are provided to persons of low, and moderate income;

(e) undertake eligible activities, pursuant to 24 CFR, Part 570.482.

(f) be designated by EDA as eligible to receive funds under the Title IX program, and must have submitted a Title IX or Title I pre-application to EDA and be working with EDA toward submission of a full application; or,

(g) be designated by FmHA as eligible to receive funds under the either the Rural Business Enterprise Grant or the Intermediary Relending Program and be working with FmHA toward submission of a full application; or,

(h) be designated by the appropriate organization providing matching funds as eligible to receive funds; and

(i) complete the required RAF application materials.

2. Special Program Requirements: RAF proposals also must comply with the following:

(a) RAF Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve RAF funds for the applicant, and an RAF Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated RAF funds as a match to leverage additional funds. Depending on the matching requirements, requests to use funds from the reserve may have to meet additional special requirements that are similar to those described in section 3.A.2. (a and b) of this Proposed Statement.

(i) EDA Title IX Economic Adjustment Assistance defined: Funds under the Title IX Program are used to assist areas experiencing long-term economic deterioration (LTED) and areas threatened or impacted by sudden or severe economic dislocation (SSED) .

Long-term economic deterioration (LTED): The LTED Program assists eligible applicants to develop and/or implement strategies designed to halt and reverse the long-term decline of their economies. The most common type of activity funded under the LTED Program is Revolving Loan Funds (RLFs) , although other types of eligible Title IX activity may be funded.

Sudden and severe economic dislocation (SSED) : The SSED Program assists eligible applicants to respond to actual or threatened job losses (dislocation) and other severe economic adjustment problems. It is designed to help communities prevent a sudden, major job loss; to reestablish employment opportunities and facilitate community adjustment as quickly as possible after one occurs; or to meet special needs resulting from severe changes in economic conditions. SSED assistance is intended to respond to permanent rather than temporary job losses. Assistance may be in the form of a grant to develop a strategy to respond to the dislocation (Strategy Grant) or a grant to implement an EDA approved strategy (Implementation Grant).

In light of the current high level of economic distress in rural areas, EDA is particularly interested in Title IX projects designed to mitigate serious rural economic adjustment problems.

(ii) EDA Title I Public Works Program defined: Funds under Title I Program are used to assist distressed communities attract new industry, encourage business expansions and generate long-term, private sector jobs through projects to improve water and sewer facilities primarily serving industry, build access roads to industrial parks or sites, and construct business incubator buildings.

(iii) FmHa Rural Business Enterprise Grant: Grants are made to finance and facilitate development of small and emerging private business enterprises in rural areas.

(iv) FmHA Intermediary Relending Program: Grants are used to finance business facilities and community development projects in rural areas.

(b) Limit on amount of RAF assistance: Each region of the State will be eligible for one RAF grant. Additional grants within regions will be made at the discretion of the Director of OCD. the IMF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

3. Selection Process: Eligible projects will be evaluated according to the following factors:

(a) Impact: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(i) Chance of Success:

LTED: To receive funding under We LTED/RLF Program, an area must be experiencing at least one of three economic problems: 1) very high unemployment; 2) low per capita income; or 3) chronic distress (failure to keep pace with national economic growth trends over the last five years). Priority will be given to those areas with two or more of these indicators.

SSED: To receive priority consideration for funding under the SSED Program, an area must show actual or threatened permanent job losses that exceed the following threshold criteria. 1) If the unemployment rate at the Labor Market Area exceeds the national average, the dislocation must be the lesser of four (4) percent of the employed population, or 500 direct jobs.

(ii) If the unemployment rate of the Labor Market Area is equal to or less than the national average, the dislocation must be the lesser of four (4) percent of the unemployed population, or 1,000 jobs. 2) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(iii) Benefit: The RAF proposal will be evaluated an the basis of the community and economic benefits that will result from the project.

(iv) Cost: The number of permanent jobs created or retained as per RAF project dollars will be reviewed an a case by case basis. The increase in local tax dollars resulting Man the project mill be evaluated. Overall project cost effectiveness also will be considered.

(v) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(vi) Community and economic Development: The primary and secondary impacts of the RAF project on the community's plans for future economic development will be evaluated. This review will also examine the ripple affect of the proposal an the community as a whole.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency and is working toward a full application, it may submit an RAF pre-application to DECD. DECD staff will review the RAF pre-applications an a first come basis to determine if the threshold criteria and special program requirements have been met. If so and when the application process has been successfully completed, the applicant will be invited to continue into the project development phase where the CDBG part of their, project will be more fully developed. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OCD for awards:

(i) approval of requested amount and requested or different terms;

(ii) approval of lesser amount and requested or different terms; or,

(iii) rejection.

(c) Allocation: The RAF allocation will be $1,400,000 and will be available beginning January 3, 1995. RAF proposals that meet all criteria nay be awarded funds until the amount of funds available in the program has been committed. Having committed all funds in the program, the State reserves the right not to accept any further applications.

C. MICRO-LOAN PROGRAM

The purpose of the Micro-loan Program is to provide Maine communities with funds to assist existing and new businesses create or retain jobs for low and moderate income individuals. These needs must be part of a community development strategy which will lead to future public and private investments.

Communities are encouraged to enter into partnerships to request Micro-Loan assistance when demand is sufficient on a multi-jurisdictional basis and communities would be better served through a regionally administered loan program.

1. Threshold Criteria and Certifications: The State will distribute funds to communities to establish a commercial loan program through the annual Micro-Loan application process. The threshold criteria and certifications for the programs are listed below:

(a) Eligible Activities: Eligible activities include the establishment of a local commercial loan program for the purpose of assisting for-profit and non-profit businesses.

(b) Project eligibility: Upon receipt by the OCD, applications will be reviewed to determine the eligibility of the activities the applicant proposes to undertake with Micro-Loan funds. Those activities must be included in I (a) above and be eligible under 24 CFR, Part 570.482. Under this program, activities that construct, support or assist housing related projects are ineligible to receive Micro-Loans. Applications will only be accepted for the development of a Micro-Loan program. In the event an application contains any proposed activity unrelated to the establishment of a Micro-Loan Program, or the activity listed in Section 1(a) above, the entire application will be judged not to have met the project eligibility, criteria. In all cases the applicant will. be notified in writing of the determination made by OCD.

(c) Project Benefit: 51% of the jobs created or retained as a result of Micro-Loan expenditures must be made available to or taken by persons of low and moderate income.

2. Program Priorities:

(a) Multi-Jurisdictional Priority: regional or joint applications from a group of communities that meet the eligible applicant threshold criteria will receive 3 supplemental points in Phase I of the selection process.

(b) Activity Priority: Not applicable.

3. Special Program Requirements: Micro-Loan applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1995 Micro-Loan Program, communities that received Community Revitalization (CR) grants in 1990 must have conditionally closed their grants by December 16, 1994. Communities that received CR grants in 1991 mist have expended 100% of their benefit activity funds by December 16, 1994. Communities that received CR grants in 1992 must have obligated 100% of their benefit activity funds by December 16, 1994. Communities that have received ML grants in 1993 must have obligated at least 50% of their benefit activity funds by December 16, 1994.

(b) Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(c) Maximum Micro-Loan Grant Amount: The maximum grant amount will be $125,000 for a single grant year. The maximum grant amount for a multi-jurisdictional project will be $156,250. The level of funding will be established in Phase II pursuant to the level of demand that can be demonstrated by the applicant.

(d) Necessary and Appropriate: All loans made from the Micro- Loan Program to for-profit. and non-profit businesses must be for projects that are necessary and appropriate as defined by the federal government. Documentation must be provided that the project cannot proceed without Micro-Loan participation.

(e) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000. Project activities and use of funds to calculate the non­-Micro-loan financing must represent a new investment or a new project.

(f) Repayment Terms: The community reviewing the loan will establish repayment terms based an circumstances of the loan proposal.

(g) Local Loan Procedures: The procedure the community uses to distribute loans must be approved by OCD in the Phase II process. OCD will provide sample guidelines for local loan procedures. A loan application must initially be reviewed by a local loan review committee. The review committee must determine the assistance provided is commensurate with the community benefits that will accrue from the project.

4. Selection Process: The selection Process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

a. Phase I Application: The maximum length of an application is ten pages. AS designed to be a description of a community's business problems it would like to address with Micro-Loan funds. The application deadline is December 16, 1994. Applications will be evaluated according to the following criteria. A minimum score of 85 points will be required for an application to be further considered for funding.

(i) Problem Statement (30 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with Micro-Loan funds. Points will be awarded in the following categories:

(aa) Scope of Problem (15 points) - Description of the magnitude and nature of the lack of job opportunities and lack of business capital in the applicant's area.

(bb) Identification of Problem (15 points) - Description of the need for these funds and how that need was identified.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant. would use Micro-Loan funds to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Scope of Solution (15 points) - Description of the actions that the applicant mill undertake in the use of Micro-loan Program funds to resolve the problem(s) presented in the Problem Statement.

(bb) Capacity (15 points) - Description of the capacity that the applicant has to conduct those efforts specified in the Scope of Solution section and the history of the community in administering lending programs.

(iii) Citizen Participation (30 points): Citizen Participation is a descriptive demonstration of how business groups, local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Business Involvement (15 points) - Description of the involvement that the applicant's, business community has had in the development of the application. This should include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(bb) General Citizen Involvement:(15 points) - Description of the involvement that the general citizenry has had concerning the concept of assisting business. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Associations, Community Groups, Planning Board, and the Board of Selectmen.

(v) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(aa) Unemployment Rate (3.5 points): a score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

Unemployment - Absolute numbers (1.5 points): applicants communities will be ranked from highest to lowest in terms of numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low .5). Unequal divisions will be rounded up.

(bb) LMI Percentage (3.5 points): a score determined by taking the community's most recent LMI percentage and dividing it by 51 percent. This figure will be multiplied by the 3.5 points assigned to this category. Communities with an LMI population greater than 51% will automatically receive the total points allowed.

LMI - Absolute Numbers (1.5 points): applicants will be ranked from highest to lowest in terms of numbers of low and moderate income households. The ranking will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low Unequal divisions will be rounded up.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The purpose of the Economic Development Infrastructure (EDI) Program is to provide Maine communities with funds in which to develop or rehabilitate public infrastructure so that existing and new non-retail businesses can create or retain jobs for low and moderate income individuals.

1. Threshold Criteria and Certifications: The State will distribute EDI funds through the EDI Program. The threshold criteria and certifications for the process are listed below:

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with such public infrastructure projects as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are deemed necessary to create or retain jobs in the non-retail sector for low and moderate income persons.

(b) Project Benefit: 51% of the jobs created or retained as a result of EDI expenditures must be made available to or taken by persons of low and moderate income.

(c) Local Match: All communities applying for EDI funds must certify that they will:

(i) Provide a local match equivalent to 20 percent of the total grant award; and

2. Program Priorities:

(a) Activity Priority: Not applicable.

3. Special Program Requirements: EDI Program applicants mast also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1995 EDI Program, communities that received community Revitalization (CR) grants in 1990 must have conditionally closed their grants by November 18 1994. Communities that received CR grants in 1991 must have expended 100% of their benefit activity funds by November 18, 1994. Communities that received CR grants in 1992 must have obligated 100% of their benefit activity funds by November 18, 1994. Communities that have received EDI grants in 1993 must have obligated at least 50% of their benefit activity funds by November 18, 1994.

(b) Exceptions: Grant recipients may request for a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in availability of leveraged funds or 2) unanticipated program income received and the grantee is unable to meet the above performance requirements.

(c) Maximum Economic Development Infrastructure Grant Amount: The maximum grant amount will be $400,000 for a single grant year. The maximum grant amount for a multi-jurisdictional project will be $500,000. OCD's funding decision also resides on its determination of the feasibility of the project.

(d) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under limited conditions.

(i) The retail business represents the provision of new products and services previously unavailable in the community;

(ii) The development or expansion of the retail business represents a net economic gain for the community and the region. Applicant communities seeking EDI funds in support of a retail business or businesses would be required to demonstrate that the development represents a net overall gain for the regional economy and not a shift from existing established businesses to a new or expanded one.

(e) Grant Termination: The OCD reserves the right to terminate a community's EDI grant if progress on the project is not apparent within 12 months from the date of signing a contract with DECD.

(f) Legally Binding Agreement: The applicant must have a legally binding agreement as of the date of the Phase I application with the party proposing to create or retain jobs with EDI funds. At a minimum, the agreement must include details of the project's timeframe, the entire funding package of the project, and the number of proposed jobs for low and moderate income persons created or retained by the use of EDI funds.

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

(a) Phase 1 Application: The maximum length of an application is ten pages. It is designed to be a description of a community's economic development problems that it would like to address with EDI funds.

Applications for the EDI Program will be accepted three times during the grant year. The application deadlines are November 18, 1994. March 29, 1995 and June 1, 1995. A total of $500, 000 will be made available for each application period. These applications will be evaluated according to the following criteria. A minimum score of 85 points will be required for an application to be further considered for funding.

(i) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with an EDI Program Points will be awarded in the following categories:

(aa) Scope of Problem (10 points) - Description of the problem facing a specific business in the community, or the community as a whole, in relation to job creation or retention activities.

(bb) Identification of Problem (10 points) - Description of the need for these funds and how that need was identified.

(ii) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use EDI Program funds to solve the problem(s) discussed in the Problem Statement. Points will be awarded in the following categories:

(aa) Scope of Solution (15 points) - Description of the activities that the applicant will undertake in the toe of EDI Program funds to resolve the problem(s) presented in the Problem Statement.

(bb) Project Feasibility (15 points) - Description of how the project will progress within 12 months from the date of signing a contract with DECD and any obstacles that may be present that could hinder the project.

(iii) Significance of Project to Community and Region (20 points). This section should describe and demonstrate, including statistical analysis (such as jobs/grant $), the significance of the employer and the jobs to be created and/or retained, for the labor market area and the local economy.

(iv) Citizen Participation(10 points): Citizen Participation is a descriptive demonstration of how business groups, local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application. Points will be awarded in the following categories:

(aa) Business Involvement (5 points) - Description of the involvement that the specific business or applicant's business community, whichever the case, has had in the development of this application. This should include a description of any and all meetings that ware conducted where governmental business assistance was discussed.

(bb) General Citizen Involvement (5 points) - Description of the involvement that the general citizenry or municipal leaders have had concerning the concept of assisting businesses. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Association, Community Groups, Planning Board, and the Board of Selectmen.

(iv) Commitment (20 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. In the evaluation of this section, commitments that have been obtained and that are legally binding will receive greater scores than those that are not. Points will be awarded in the following categories:

(aa) Sources (10 points): A description of all the other sources of funding that have been secured for this specific project, the arrangements that have been made to secure these funds, and a detailed description of the status of these sources at the time of this application.

(bb) Timeframe (10 points): A description of when the funds mentioned above will be injected into the overall project.

E. INTERIM FINANCE PROGRAM

The purpose of the Interim Finance Program (IFP) is to utilize funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria: IFP applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive IFP funds. County governments may apply on behalf of unorganized territories. Groups of local governments my apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive IFP funds. Except as described in 1(a) above, County governments are not eligible applicants.

(c) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons (24 CFR Part 570.483 (a) (4)),

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households (24 CFR Part 570.483 (a) (3)), or

(iii) the IFP expenditures reduce the development costs for new multi-family non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households (24 CFR Part 570.483 (a) (A).

(d) Undertake eligible activities pursuant to 24 CPR 570.482 et seq.

(e) Complete the required IFP application materials.

(f) The application amount mist be between $500,000 and $5,000,000. The Commissioner of DECD way waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Read for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination the costs of financing so adversely affect the project's rate of return the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the UP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: IFP grants will be made on a first come basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will notify the State of its intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based an the project meeting all program

SECTION 4. PLANNING METHODS OF DISTRIBUTION

A. PHASE II PLANNING GRANTS

The purpose of the Phase II Planning Grant is to enable communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold criteria: The State will distribute Phase II funds to communities or community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, and Micro-Loan Programs are eligible to apply for and receive Phase II Planning Grants from the State.

(b) Eligible Activities: Phase II Planning funds may be used for planning activities necessary to complete Phase II requirements as described in applicable funding programs listed in l(a) above.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and the means to execute the Phase II Planning grant award.

(d) Federal and State Certifications for Local Governments: All communities applying for Phase II Planning Grants must certify they will:

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete Phase II tasks.

4. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive and as-needed basis.

B. GENERAL PURPOSE PLANNING GRANTS

The purpose of the General Purpose Planning Grant. (GPPG) program is to provide financial assistance to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: The State will distribute GPPG funds to local governments, through the annual General Purpose Planning Grant Application Selection Process. The threshold criteria and certifications for the process are listed below:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive GPPG funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments my apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and documentation of the consent for that designation by each participating local government.

(b) Ineligible Applicants: The entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive State GPPG program funds. Except as described in 1(a) above, County governments are not eligible applicants.

(c) Eligible Activities: GPPG funds may be used for planning only activities that include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible.

(d) Project Eligibility: All activities undertaken with GPPG funds must be eligible under 24 CFR, Part 570.482. All applications containing proposed ineligible or non-planning activities will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

(e) Project Benefit: The proposed activities must meet one of the national objectives pursuant to 24 CFR, Part 570.483, (b) (5), (c) (3) or (d), of either providing direct benefit to low and moderate income persons, removing slum or blighting influences within that community, or meeting community development needs having a particular urgency.

2. Special Program Requirements: GPPG applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1995 General Purpose Planning Grant program, communities that received Community Revitalization (CR) grants in 1990 must have conditionally closed their grants by February 16, 1995. Communities that received CR grants in 1991 must have expended 100% of their benefit activity funds by February 16, 1995 . Communities that received CR grants in 1992 must have obligated 100% of their benefit activity funds by February 16, 1995.

(b) Exceptions: Grant recipients may request a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet the above performance requirements.

(c) Maximum GPPG award amount: The maximum award is $10, 000.

(d) Benefit of Planning: Communities must describe how the project assisted with GPPG funds, if implemented, would meet one of the national objectives of the CDBG program as described in 1(e) above.

3. Selection Process: Applications for GPPG's will be accepted February 16, 1995 . Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. Applications will then be reviewed based an the following criteria:

(a) Description of Problem (40 points): A description of the problems the community wants to resolve, how the problems were identified, and the impact of the problems on the community.

(b) Development of Strategy (40 points): A description of how the GPPG program will work with local government, citizens groups, agencies, and local businesses towards the development of strategies that work towards common goals. This strategy should identify the most effective solution to the problems and bow GPPG binds will be used in the formulation of this solution. An estimate of the amount of GPPG funds needed and itemized breakdown of the proposed planning budget must be included.

(c) Project Leverage (20 points): A description of other resources (local, state, federal, private) that will be contributed to the project. These may include commitments obtained or sought to date.

4. Phase II Project Development: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicants will be awarded funds until the funding available in the GPPG program is exhausted. A community will receive the amount necessary to complete its project, up to the maximum, provided it completes a contract with DECD.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-multi-jurisdictional-State partnership that will facilitate project development that best meets the community's identified needs, supports multi-jurisdictional development, and is in accordance with State goals. A community liaison will be assigned to your community to work closely with you to finalize your project. Successful completion of Phase II criteria will allow the applicant to contract with DECD become eligible to receive CDBG funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of all activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community through the end of the project.

C. QUALITY MAIN STREET STRATEGY GRANTS

The purpose of the Quality Main Street Strategy (QMS) program is to provide financial assistance to communities for the development of Strategies to revitalize main streets and downtowns.

1. Threshold Criteria and Certifications: The State will award QM funds for up to one community in each of Maine's sixteen counties, provided they meet the following threshold criteria and certifications:

(a) Eligible Applicants: All omits of general local government in Maine, including plantations, are eligible to apply for and receive QMS funds. County governments may apply on behalf of unorganized territories.

(b) Ineligible Applicants: The entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive QMS funds. Except as described in 1(a) above, County governments not eligible applicants.

(c) Eligible activities: QMS funds may be used for planning only activities related to the economic revitalization of a main street that include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible.

(d) Project Benefit: The proposed activities must meet one of the national objectives pursuant to 24 CFR, Part 570.483, (b) (5), (c) (3) or (d), of either providing direct benefit_ to low and moderate income persons, removing slum or blighting influences within that community, or meeting community development needs having a particular urgency.

2. Special Program Requirements: QMS applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1995 Quality Main Street Strategy Grant program, communities that have received CDBG funding since 1982 for downtown revitalization must describe changes in economic conditions, infrastructure capacity or other circumstances that demonstrate the necessity of QMS assistance.

(b) Growth Management or Community Planning Program: Applicants for QMS must define their status within Maine's Growth management Program. Communities that have accepted planning assistance funds, have a consistent comprehensive plan, and/or have accepted implementation funds must conduct their QMS planning in accordance with their growth management policies or with the community Planning Program"

(c) Maximum QMS award amount: The maximum award is $25, 000.

(d) Benefit of Planning: Communities must describe how the project assisted with QMS funds, if implemented, would meet one of the national objectives of the CDBG program as described in 1(e) above.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

(a) Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's Main Street and Downtown problems that it would like to address with Quality Main Street Planning Grant Funds. The applications deadline for QMS is February 16, 1995. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. A minimum score of 85 will be required for funding. The applications will be evaluated according to the following criteria.

(i) Description of Problem (35 points):: A description of the problem(s) the community wants to resolve including the economic condition of the main street, how the problem(s) was identified including the events leading to the present situation, and the impact of the problem(s) on the community.

(ii) Development of Strategy (35 points): A description of how the QMS program will work with local government, citizens groups, agencies, and local businesses toward the development of strategies that work toward common goals for revitalizing the main street. This strategy should identify effective solutions to the problems and how QMS funds will be used in the formulation of this solution. An estimate of the amount of QMS funds needed and an itemized breakdown of the proposed planning budget must be included.

(iii) Project Leverage (30 points) : A description of other resources (local, state, federal, private) that will be contributed to the project. These nay include commitments obtained or sought to date.

4. Phase II Project Development: Applicants will be placed in rank order from highest to lowest by county according to the scares determined by the scoring team. The highest scoring applicant in each county, provided that the 85 point minimum scoring requirement is met, will receive a QMS award. A. community will receive the amount necessary to complete its project, up to the maximum, provided it completes a contract with DECD.

5. Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local/state partnership that will facilitate project development that best meets the community's identified needs, and is in accordance with State goals. A program representative will be assigned to your community to work closely with you to finalize your project. Successful completion of Phase II criteria mill allow the applicant to contract with DECD and become eligible to receive QMS funds. Communities not having a signed contract within six months of receipt of a Phase II invitation will forfeit said invitation. The Director of OCD reserves the right to waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating QMS funds. OCD staff will remain involved with the community through the end of the project.

D. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance Grant Program is to provide grant funding to the following lead communities to act on behalf of communities within Regional Council planning districts.

The lead communities have been selected on the basis of their willingness to assume the responsibility of administering this grant. These communities will assume certain administrative work, but will not receive any greater program benefit than neighboring communities that receive technical assistance for the Community Development Block Grant Program.

The following lead communities will contract with a Regional Council to provide information about the Community Development Block Grant Program to communities in their region. They will assist interested communities in preparing grant applications in the program categories.

Caribou

Dresden

Ellsworth

Freeport

Kittery

Mechanic Falls

Orono

Winslow

The following communities will issue Request for Proposals and select technical assistance providers:

Bath

Eastport

Rockland

Any contracts for services provided hereunder shall be subject to all applicable requirements to the Department of Housing and Urban Development. If any lead community is unable to undertake and complete its responsibilities under this program, the Department of Economic and Community Development reserves the right to remove said community and name a replacement.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

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 1995 CDBG program but unable to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve 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 1995 CDBG program, or added to the available monies for the 1996 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 1995 CDBG program or added to the available monies for the 1996 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, Urgent Need, Development Fund, multi-jurisdictional Assistance, Micro-Loan, Economic Development Infrastructure, Phase II Planning, General Purpose Planning, Quality Main Street Strategy may be added to any open CDBG contract, used to make additional awards in any 1995 CDBG program or added to the available monies for the 1996 competition.

3. State Grants from HUD: Additional HUD allocations to the state of Maine may be added to any open CDBG contract, used to make additional awards in any 1995 CDBG program or added to the available monies for the 1996 competition.

4. Basis for Redistribution: The decision on how to redistribute the types of funds described in Paragraphs 1, 2 and 3 above 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 scores above the 85 point threshold in 1995 competitions but did not receive funding and the possibility of holding additional competitions during the 1995 Program. Additional competitions will be held only as a last resort, and be limited to Housing Assistance, Public Facility/Infrastructure, Public Service, Micro-Loan, and Economic Development Infrastructure. In all cases, these additional competitions and the subsequent programs developed, will be subject to the applicable section(s) of this 1995 Program 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 Program Statement.

All staff recommendations regarding redistribution of funds in the 1995 CDBG program will be subject to approval by the Director of the OCD.

B. PROGRAM INCOME

As used in this Proposed 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 nay 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 mist 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 mist 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 returned to the State may be used for administrative costs. The balance of program income (98%) will be used to fund new or previously committed CDBG obligations.

(d) Program Income Plan: Each grantee anticipating program income during or after the end of a grant period mist 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 10% in any program, 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, Public Facilities/Infrastructure, Public Service, Urgent Need, Reserved, Micro-Loan, Economic Development Infrastructure: 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 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 undergo DECD's loan review process, 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.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1995 award may do so by submitting an appeal letter to the Commissioner of Economic and community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgement regarding qualitative scoring will not be allowed. If an appeal is successful, funds will be reserved for the project from available or subsequent CDBG funding.

SECTION 7. AMENDMENT TO THE PROPOSED STATEMENT

The State can amend the 1995 Proposed Statement from time, to time in accordance with the same procedures required for the preparation and submission of the proposed statement. In addition, the amendment process will be guided by the State of Maine's Administrative Procedures Act.

EFFECTIVE DATE:

September 19, 1994

AMENDED:

June 25, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

CONVERTED TO MS WORD:

May 16, 2005

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 15 Community Development Block Grant Program: 1996 Final Statement

Code Me. R. 19-498 Ch. 15 Community Development Block Grant Program 1996 {#sec-19-498-ch.-15 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 15}

Community Development Block Grant Program 1996

FINAL STATEMENT

OCTOBER 1995

Department of Economic and Community Development

Office of Community Development

33 Stone Street

59 State House Station

Augusta, ME 04333-0059

(207) 287-8484 (Voice)

(207) 287-2656 (TTY)

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

AARON SHAPIRO, PROGRAM MANAGER

OFFICE OF COMMUNITY DEVELOPMENT

33 STONE STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 287-8476

TTY (207) 287-2656

1. PROGRAM OVERVIEW 1

A. CDBG OBJECTIVES 1

B. METHOD OF DISTRIBUTION 1

1. Community Development 2

2. Economic Development 2

3. Planning 3

C. STATE ADMINISTRATION 3

1. General Administration Allocation: 3

2. Technical Assistance Administration Allocation: 3

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. PROGRAM TIMEFRAME 4

F. PROGRAM BUDGET 4

G. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 6

2. COMMUNITY DEVELOPMENT 10

A. HOUSING ASSISTANCE GRANTS 10

1. Special Threshold Criteria and Certifications 10

2. Program Requirements 10

3. Selection Process 11

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS 14

1. Special Threshold Criteria and Certifications 14

2. Program Activities 15

3. Special Program Requirements 15

4. Selection Process 16

C. PUBLIC SERVICE GRANTS 19

1. Special Threshold Criteria and Certifications: 19

2. Special Program Requirements 20

3. Selection Process 21

D. URGENT NEED GRANTS 23

1. Special Threshold Criteria and Certifications 23

2. Special Program Requirements 24

3. Selection Process 24

4. Approval Process 25

E. RESERVED GRANTS 26

1. Threshold Criteria 26

2. Special Program Requirements 26

3. Approval Process 27

4. ECONOMIC DEVELOPMENT 28

A. DEVELOPMENT FUND 28

1. Threshold Criteria 28

2. Special Program Requirements 28

3. Selection Process 29

4. Approval Process 30

B. REGIONAL ASSISTANCE FUND 31

1. Threshold Criteria 31

2. Special Program Requirement 32

3. Selection Process 33

4. Approval Process 34

C. MICRO-LOAN PROGRAM 34

1. Threshold Criteria and Certifications 35

2. Special Program Requirements 35

3. Selection Process 36

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 38

1. Threshold Criteria and Certifications 38

2. Special Program Requirements 39

3. Selection Process 40

E. INTERIM FINANCE PROGRAM 44

1. Threshold Criteria 44

2. Special Program Requirements 45

3. Selection Process 46

4. Approval Process 46

F. CARGO PORT FACILITY SET ASIDE 46

1. Threshold Criteria 46

2. Special Program Requirements 47

3. Selection Process 47

4. PLANNING METHODS OF DISTRIBUTION 49

A. PHASE II PLANNING GRANTS 49

1. Threshold Criteria 49

2. Special Program Requirements 49

3. Selection Process 49

4. Approval Process 49

B. GENERAL PURPOSE PLANNING GRANTS 50

1. Threshold Criteria and Certifications 50

2. Special Program Requirements 50

3. Selection Process 51

C. QUALITY MAIN STREET STRATEGY GRANTS 51

1. Threshold Criteria and Certifications 51

2. Special Program Requirements 52

3. Selection Process 52

D. TECHNICAL ASSISTANCE GRANTS 53

5. REDISTRIBUTION OF GRANT FUNDS 54

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 54

1. Local Government Grants from the State 54

2. Unallocated State Grants To Local Governments 54

3. Basis for Redistribution 55

4. State Grants from HUD 55

B. PROGRAM INCOME 56

1. General Program Income Requirements 56

2. Special Program Requirements 57

3. APPEALS 58

4. AMENDMENT TO THE FINAL STATEMENT 58

19-498 DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 15: COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM:

1996 FINAL STATEMENT

SUMMARY: The 1996 Final Statement describes the design and method of distribution of funds in Maine's 1996 Small Cities - Community Development Block Grant (CDBG) Program. The CDBG Program is administered pursuant to 5 M.R.S.A. §13073. The 1996 Final Statement was prepared by the Department of Economic and Community Development (DECD) following a review of the 1995 CDBG Program, a series of public forums, and meetings with advisory groups. As part of the Maine Administrative Procedure Act, DECD held four public hearings to solicit input prior to adopting the Final Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The objective of the Maine CDBG Program is to serve as a catalyst for local governments to implement programs which:

1. benefit low and moderate income persons;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, State and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems with innovative solutions that maximize resources.

B. METHOD OF DISTRIBUTION

The DECD, through the Office of Community Development (OCD), designs and offers programs allowing municipalities to achieve their community development objectives. The purpose of the 1996 Final Statement is to provide units of local government with a description of the selection criteria for each program that OCD will use to allocate CDBG funds among communities. To assist communities in determining which program(s) best meet their needs, programs are grouped under three broad categories: Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants: Provides financing to address acute housing needs of low and moderate income persons.

b. Public Facilities/Infrastructure Grants: Provides financing for local infrastructure and public facilities.

c. Public Service Grants: Provides financing to address human resource needs for operating expenses, equipment and program materials for public service programs.

d. Urgent Need Grants: Provides financing to enable communities to address critical and imminent threats to health and safety.

e. Reserved Grants: Provides financing for the second year of a Housing Assistance or Public Facilities/Infrastructure grant initially determined in the previous year.

2. Economic Development

a. Development Fund: Provides financial resources to local governments which in turn assist businesses to create/retain jobs for low and moderate income persons.

b. Regional Assistance Fund: Provides financial resources to local governments or multi-jurisdictional organizations which use the assistance as leverage to obtain funds under the EDA Economic Adjustment Assistance Program (Title DC) and the EDA Public Works Program (Title 1), Rural Economic Community Development (RECD) and Small Business Administration (SBA) Programs and other federal funding sources.

c. Micro-Loan Program: Provides financial resources to local governments to establish a loan program to assist businesses create/retain jobs for low and moderate income persons.

d. Economic Development Infrastructure Grants: Provides funding to communities for public infrastructure installation or improvement necessary for a new or existing business to create/retain jobs for low and moderate income persons.

e. Interim Finance Program: Utilizes funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers create housing and job opportunities for low and moderate income persons through short-term loans.

f. Cargo Port Facility Set-Aside: Provides funding in support of the "three port strategy" for the State of Maine and to create/retain jobs for low to moderate income persons.

3. Planning

a. Phase II Planning Grants: Provides funding to assist communities to complete the second phase of their 1996 CDBG applications.

b. General Purpose Planning Grants: Provides funding to communities, that have identified a local community or economic development problem, for developing a strategy to solve that problem.

c. Quality Main Street Strategy Grants: Provides funding to communities for the development of strategies to revitalize their "main streets" and downtowns.

C. STATE ADMINISTRATION

1. General Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended, Section 106(d) (3) (A) is permitted and will utilize $100,000 plus 2% of its annual allotment from the Department of Housing and Urban Development (HUD) to assist in administering the State's Small Cities CDBG Program in accordance with Federal, State and local requirements.

2. Technical Assistance Administration Allocation: The DECD, through OCD, pursuant to the Housing and Community Development Act of 1974, as amended (through October 28, 1993), Section 106(d) (5) is permitted and will utilize 1% of its annual allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. PROGRAM TIMEFRAME

All application deadlines are listed below.

Housing Assistance December 22, 1995

Economic Development Infrastructure January 26, 1996

April 26, 1996

July 26, 1996

Public Facilities/Infrastructure January 26, 1996

Micro-Loan February 23, 1996

Cargo Port Facility Set-Aside March 1, 1996

Quality Main Street Strategy and

General Purpose Planning March 22, 1996

Public Service To be announced

Urgent Need 1st come basis beginning

February 1, 1996

Development Fund Bi-monthly

Regional Assistance Fund see Section 3. B. 4. (a)

Interim Finance Program 1st come basis

F. PROGRAM BUDGET

The program budget indicates how CDBG Funds will be allocated for the 1996 grant year. The total budget is comprised of the federal allocation from HUD plus a state match. The amount of the 1996 federal allocation is projected to be $12,000,000. Based on the estimated allocation, the amount available for each program is indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMBUDGET

GRANT YEAR 1996

Projected FY 1996 CDBG Program Budget¹$12,290,047

Administration 630,047

Technical Assistance Administration 120,000

Regional Council Technical Assistance 120,000

1. Housing Assistance Grants 2,100,000

2. Public Facilities/Infrastructure Grants

Category 1 2,400,000

Category 2 750,000

Category 3 150,000

3. Public Service Grants² 0

4. Urgent Need Grants 200,000

5. Reserved Grants 1,900,000

6. Development Fund³ 0

7. Regional Assistance Fund 900,000

8. Micro Loan Program 400,000

9. Economic Development Infrastructure Program 2,000,000

10. Interim Finance Program⁴

11. Cargo Port Facility Set-Aside 400,000

12. Phase II Planning Grants 40,000

13. General Purpose Planning Grants 60,000

14. Quality Main Street Strategy Grants 120,000

¹ The total program budget is comprised of a projected federal allocation of $12,000,000 and the state match.

² The PS Program will be funded only as outlined in Section 5.A.4. of the Final Statement

³ The DF Program will be funded only from program income projected to be $500,000.

⁴ The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short term basis. The maximum budget for this program is $5,000,000.

G. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

1. The following state and federal regulations APPLY TO ALL PROGRAMS: Federal and State Certifications for Local Governments: All communities applying for CDBG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) review the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements APPLY TO ALL PROGRAMS:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF) Program, units of local government and unorganized territories may not benefit from more than one grant per program per grant year.

(b) Probation on Subsequent Year Award: Except for the Development Fund (DF) Program units of general local government and unorganized territories that benefited from a 1994 two year award, (whether a single community or as part of a multi-jurisdictional program), may not apply again in that specific program until the 1997 program. Units of local government and unorganized territories that benefited from a 1995 single year award may not apply again in that specific program until the 1997 program. Units of local government and unorganized territories that received a 1995 two year award may not apply again in that specific program until the 1998 program. Prohibition against subsequent year awards is program specific.

(c) Computation of Distress Scores for Multi-jurisdictional Applications: Distress scores for multi-jurisdictional applications will be computed on a weighted average basis. (population 1)(distress 1)+(population 2)(distress 2)+... /population I + population 2 +... = weighted average distress score.

(d) Phase II Planning Grants: Pursuant to Section 4.A. of this Final Statement, Phase 11 participants will be eligible for planning grant funds on an as needed basis to assist with payment of project development costs. Extent of assistance shall be determined by OCD staff.

(e) Grant Termination: The OCD may terminate a community's grant if progress on the project is not apparent within 12 months from the date of signing a contract with DECD.

(f) Project Eligibility: Applications will be reviewed to determine the eligibility of the activities the applicant proposes to undertake with CDBG funds. Those activities must be included in the list of eligible activities under the "special threshold criteria and certifications" section for the respective program being applied for and be eligible under Section 105 (a) of the Housing and Community Development Act of 1974, as amended. In the event an application contains an activity not eligible as provided above, the entire application will be judged not to meet project eligibility, and will be removed from further consideration. In all cases, the applicant will be notified in writing of the determination made by the OCD.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended. In the event an activity does not meet a national objective as provided above, the entire application will be judged not to have met project benefit and will be removed from further consideration. In all cases, the applicant will be notified in writing of the determination made by the OCD.

3. The following Threshold Criteria APPLY ONLY TO THE FOLLOWING PROGRAMS:

• Housing Assistance (HA) * Public Service Grant (PSG)

• Economic Development Infrastracture (EDI) * Micro Loan (ML)

• Public Facilities Infrastructure (PFIG) * Quality Main Street (QMS)

• General Purpose Planning Grant (GPPG)

(a) Eligible Applicants: AR units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application, per program, but only on behalf of different unorganized territories. Groups of local governments may apply for multi-jurisdictionaI or joint projects. These multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Phase II Project Development

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Scores will be determined by: (all scores - lowest score) / (all scorers - 1). Starting at the top of the scoring list, applicants will be invited to proceed to Phase II. While an invitation into Phase II is not a guarantee of funding, if successful, communities will receive the amount necessary to complete their project, up to the maximum grant award for that program until the funding available in that program is exhausted. Phase II project development includes:

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and/or market studies (and structural analysis in the case of Housing Assistance)

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase 11 applications will be reviewed for compliance with State and Federal regulations.

(dd) Project Eligibility: Verification that proposed activities are eligible pursuant to Section 1. G. (2) (f) of the Program Statement.

(ee) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives pursuant to Section 1. G. (2) (g) of the Program Statement.

(c) Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development that best meets the community's identified needs, and is in accordance with State goals. A community representative will be assigned to work closely with each community to finalize their project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not having completed their Phase II application within six months of receiving a Phase II invitation Will forfeit their grant award. The Director of OCD may waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community throughout project implementation.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides financing to address acute housing problems of low and moderate income persons. These problems must be included in a community development strategy which will lead to future public and private investments.

1. Special Threshold Criteria and Certifications : The State will distribute Housing Assistance funds to local governments through the annual Housing Assistance Selection Process. The threshold criteria for the process and certifications are listed below:

(a) Eligible Activities: Eligible activities include Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers, directly related to assisting or creating residential housing units.

(b) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent to 10 percent of the total grant award.

2. Program Requirements: Applicants must comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1996 Housing Assistance program, communities that received Community Revitalization (CR) grants in 1991 must have conditionally closed their grants by December 22, 1995. Communities that received CR grants in 1992 must have expended 100% of their benefit activity funds by December 22, 1995. Communities that received HA grants in 1993 must have obligated 100% of their benefit activity funds by December 22, 1995. Communities that received HA grants in 1994 must have obligated at least 50% of their benefit activity funds by December 22, 1995.

Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to unforeseen changes in scheduled availability of leveraged funds or acts of nature or 2) the recipient has received unanticipated program income and is unable to meet the above performance requirements.

(b) Maximum Housing Assistance Grant Amount. The maximum grant award is $300,000.

(c) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants in local housing rehabilitation programs will be no more than $15,000 per unit rehabilitated. In cases of replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or the need for handicapped accessibility must be addressed, up to an additional $7,000 per unit may be made available. In extreme circumstances the maximum housing rehabilitation cost can be waived by OCD.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase 1), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's housing problems that it would like to address with Housing Assistance funds. The application deadline is December 22, 1995.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem Statement, Final Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the final application score.

(a) Problem Statement (30 points): A description of the problems to be addressed.

(i) Scope of Problem: (10 points) - Identification and description of the magnitude and nature of the substandard housing conditions that need to be addressed and their relationship to the general housing conditions of the target area/community.

(ii) Identification of Problem: (5 points) - Description of process to solicit input and formulate a statement of the housing conditions to be addressed and the relationship to other community problems/needs.

(iii) Life Safety Considerations: (10 points) - Identification and description of the conditions, their frequency and severity, and/or the nature of potential threats identified and their relationship to the general housing conditions of the target area/community.

(iv) Energy Efficiency Considerations: (5 points) - Identification and description of the conditions that prevent LMI persons from maintaining affordable, comfortable and efficient energy standards.

(b) Proposed Solution (30 points): A description of how the applicant will use Housing Assistance funds to resolve the problems outlined in the Problem Statement.

(i) Effectiveness: (10 points) - Identification and description of how Housing Assistance funds will be effectively and efficiently used to address the problems identified in the Problem Statement.

(ii) life Safety and Energy Efficiency: (10 points) - Identification and description of how Housing Assistance funds will effectively and efficiently address serious threats to health, safety and energy problems identified in the Problem Statement.

(iii) Project Feasibility: (10 points) - Identification and description of how the proposed solution will impact the identified housing problems in a timely manner and the readiness and capacity of the applicant to administer the program.

(c) Citizen Participation (20 points): A description demonstrating the involvement in the identification and proposed solution presented by local citizens, community groups and others.

(i) Public Meetings and Hearings: (10 points) - Identification and description of the public meetings, hearings and forums held specifically to solicit citizen input regarding the identification of and the formulation of solutions for the problems and/or needs stated in this application.

(ii) Local Organizations, Residents and Public Officials: (10 points) Identification and description of the input and role played by these groups and individuals which led to the formulation of this application.

(d) Commitment (10 points): A description of all resources to be used on this project including commitments obtained and/or sought to date, and estimated time frame for receipt of the commitments in relationship to project completion.

(i) Partnerships: (5 points) Identification and description of the groups to be working on the project and how each will be a financial and/or technical resource.

(ii) Local Commitment: (5 points) Identification and description of the technical and financial resources the applicant and private citizens win contribute to the project activities.

(e) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing: (2.5 points) - A composite score consisting of two factors: the percent of substandard housing and the percent of households with income less than 50% of the county median per year and spending greater 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (2.5 points total) - Percentage Factor (1.5 points); a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities, plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (2.5 points) - A score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

(iv) Poverty Level: (2.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The Public Facilities/Infrastructure Grant (PFIG) Program provides financing for local infrastructure and public facility activities which are part of a community development strategy and will lead to future public and private investments.

1. Special Threshold Criteria and Certifications: The State will distribute PFIG funds to local governments through the annual Public Facilities/Infrastructure Grant Application Selection Process. The threshold criteria for the process and certifications are listed below:

(a) Eligible Activities: Eligible activities include infrastructure for new housing construction and construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with such projects as water and sewer facilities, non-housing rehab utility hook-ups, wharfs, flood and drainage improvements, parking, streets, curbs, gutters, sidewalks, fire protection facilities, community, child, senior, and health centers, libraries, salt/sand storage sheds, shelters for the homeless, sheltered workshops, recreational facilities, parks, removal of architectural barriers, downtown revitalization, neighborhood revitalization and public works garages. An application may include more than one eligible PFIG activity.

(b) Local Match: All communities applying for PFIG funds must certify that they will provide a local match equivalent to 20 percent of the total grant award.

2. Program Activities:

Activity Breakdown: In Phase I of the selection process, all PFIG applications will be sorted into one of the three eligible categories. Each applicant must identify the category it is applying for on the form provided in the application package. Applicants may apply for one or more activities from a single category but cannot apply for activities from more than one category. The categories of activities are described below:

(a) Category 1: Water, sewer, sewer hook-ups, storm drainage/CSO, downtown revitalization, and infrastructure for new housing construction.

(b) Category 2: Streets/roads, sidewalks, public wharfs/piers, fire stations, community centers, child care/senior citizen centers, health care centers, sheltered workshops, homeless shelters, libraries, neighborhood revitalization, and removal of architectural barriers.

(c) Category 3: Parking, street curbs, gutters, public parks, recreation facilities, public works garages, salt/sand storage facilities, fire fighting equipment, and transfer stations.

3. Special Program Requirements: Applicants must comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1996 program, communities that received Community Revitalization (CR) grants in 1991 must have conditionally closed their grants by January 26, 1996. Communities that received CR grants in 1992 must have expended 100% of their benefit activity funds by January 26, 1996. Communities that received PFIG grants in 1993 must have obligated 100% of their benefit activity funds by January 26, 1996. Communities that received PFIG grants in 1994 must have obligated at least 50% of their benefit activity funds by January 26, 1996.

Exceptions: Grant recipients may submit a request to DECD for a waiver of this special requirement only under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet performance requirements described above.

(b) Maximum. Public Facilities/Infrastructure Grant Amounts: The maximum grant amount for a 1996 PFIG award is determined by the activity categories described in 3. B. 2. above and outlined below:

(i) Category 1: $400,000

(ii) Category 2: $250,000

(iii) Category 3: $ 75,000

(c) Funding Restrictions PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other housing activities are eligible in the Housing Assistance Grant program.

4. Selection Process: The selection process will consist of two phases: an application phase(Phase 1) and a project development phase (Phase II).

Phase I Application: The maximum length of a Phase I application is ten pages. It is designed to be a description of a community's problems relating directly to public facilities and infrastructure that it would like to address with PFIG funds. The application deadline is January 26, 1996.

Each application will be rated in relation to all others in its respective category. A minimum of 80 points from the Problem Statement, Proposed Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding. A distress score will be added to this result to determine the final application score.

(a) Problem Statement (20 points): A description of the infrastructure/public facility problems the applicant wishes to address with PFIG funds.

(i) Scope of Problem: (10 points) - Identification and description of the scope and magnitude of the problems to be addressed with PFIG funds.

(ii) Priority: (5 points) - Significance of the problems to be addressed with PFIG funds in relation to other public facility problems within the community.

(iii) Health, Safety Welfare: (5 points) - Impact of the stated problem on public health, safety, and welfare including blighting conditions in downtown areas.

(b) Proposed Solution (30 points): A description of what the applicant will do to address problems discussed in the Problem Statement, when the applicant will take actions to solve these problems, and how this will provide a solution to the problems presented.

(i) Project Description: (10 points) - Identification and description of the activities to be undertaken to resolve the problems presented in the Problem Statement.

(ii) Project Feasibility: (20 points) - Identification of tasks, timetables, and responsible parties in implementing the solution.

(c) Citizen Participation (20 points): A description demonstrating how local citizens, community groups and others were involved in the identification of the problems and solutions discussed in the application.

(i) Process and Content: (10 points) - Identification and description of the process followed at the local level, including descriptions of public meetings, hearings and other methods used to solicit citizen involvement.

(ii) Relevance: (10 points) - Identification and description of the connection between the citizen participation and the problems and solutions discussed in the application.

(d) Commitment (20 points): A description of all the resources that will be contributed to the project. These may include commitments obtained or sought to date.

(i) Sources: (15 points) - Identification and description of all the sources of funding that have been secured for this specific project, how the funds will be spent, the arrangements that have been made to secure these funds, and a detailed description of the status of these sources at the time of this application.

(ii) Time Frame: (5 points) - Identification of commitment status and description of when the funds mentioned above will be injected into the overall project.

(e) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing: (2.5 points) - A composite score of two factors: the percent of substandard housing and the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (2.5 points total) - Percentage Factor (1.5 points); a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities, plus 0.15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three equal segments and assigned points accordingly (high, 1; middle 0.66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (2.5 points) - A score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

(iv) Poverty Level: (2.5 points) - A score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

C. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: The State will distribute PSG funds for public service activities to local governments through the annual Public Services Grant Application Selection Process. The threshold criteria and certifications for the process are listed below:

(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 provided to:

(i) Persons who are members of the following groups that are currently presumed by HUD to meet the LMI criteria:

Abused Children

Battered Spouses Elderly Persons

Handicapped Persons

Homeless Persons Illiterate Persons

Migrant Farm Workers

(ii) participants in a program designed to limit the PSG funded benefit exclusively to eligible LMI persons.

(b) All communities applying for PSG funds must certify:

(i) the public service to be provided represents: 1) a new service to the community; or 2) is a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during the 12 months prior to submission of the application; and

(ii) provide a local match equivalent to 20 percent of the total grant award.

2. Special Program Requirements: PSG applicants must comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1996 PSG program, communities that received Community Revitalization (CR) grants in 1991 must have conditionally closed their grants by TBA. Communities that received CR grants in 1992 must have expended 100% of their benefit activity funds by TBA. Communities that received PS grants in 1993 must have obligated 100% of their benefit activity funds by TBA. Communities that received PS grants in 1994 must have obligated at least 50% of their benefit

Exceptions: PSG recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances, 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(b) Maximum Public Service Grant Amount: The maximum grant award is $50,000.

(c) Funding Restrictions: PSG funding is restricted to non-construction activities as listed in the Eligible Activities Section. Funding for construction or rehabilitation of public service facilities must be in place before a PSG award will be made. Public service construction activities are considered public facilities and can be included in an application to the PFIG program.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase 1), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's human resource problems that it would like to address with PSG assistance. The application deadline will be announced.

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

(a) Problem Statement (20 points): A description of the problems the applicant wishes to address with PSG assistance.

(i) Scope of Problem: (10 points) - Identification and description of the nature and magnitude of the public service problem.

(ii) Health, Safety and Welfare: (10 points) - Identification and description of the impact of the problem on individuals within the community and on the community as a whole.

(b) Proposed Solution (30 points): A description of how the applicant would like to use PSG funds to solve the problems discussed in the Problem Statement.

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems described in the Problem Statement.

(ii) Project Feasibility: (10 points) - Description of the project timetable and parties responsible for implementing the solution.

(iii) Capacity: (10 points) - Identification and description of the abilities of the parties to implement the project activities.

(c) Citizen Participation (20 points): A description demonstrating how local citizens, community groups and others were involved in the identification of the problems and solutions discussed in the application.

(i) Process and Content: (10 points) - Identification and description of the process used to involve citizens and a summary of the comments and issues raised.

(ii) Relevance: (10 points) - Identification and description of the connection between the citizen participation and the problems and solutions discussed in the application.

(d) Commitment (20 points): A description of all the resources that will be contributed to the project. These may include commitments obtained or sought to date.

(i) Sources: (5 points) - Identification and description of the resources sought/and or secured to assist the project.

(ii) Timeframe: (10 points) - Identification and description of when the funds cited above will be used for this project.

(iii) Relevance: (5 points) - Identification and description of how the resources make the solution possible.

(e) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment Rate: (3.5 points) - A score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities, with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(ii) Unemployment Absolute Numbers: (1.5 points) - Communities will be ranked from highest to lowest based upon the numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI Percentage: (3.5 points) - A score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 3.5 to determine the score for LMI percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(iv) LMI Absolute Numbers: (1.5 points) - communities will be ranked from highest to lowest based upon the numbers of low and moderate income households. This ranking will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; low 0.5). Unequal divisions will be rounded up.

D. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides financing that enables a community to address community development needs having a particular urgency.

1. Special Threshold Criteria and Certifications: UNG Program applicants must meet the following threshold criteria and certifications:

(a) Eligible Applicants: all units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint emergency situations. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) Project Eligibility: Pursuant to 104 (b) 3 of the Housing and Community Development Act of 1974, as amended, the applicant must seek to 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 the submission of an application;

(iii) is a project the applicant cannot finance on its own; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements: UNG applicants must also comply with the following:

(a) Necessary Documentation: The emergency situation to be addressed must be of such a nature it requires immediate action to alleviate the occurrence of or the imminent threat of widespread or severe injury or loss of life resulting from any natural or man-made cause.

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

(c) Maximum Urgent Need Grant Amount: The Maximum Award is $100,000.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase 1), and a project development phase (Phase II).

Phase I Application: Communities seeking to undertake a project on the basis of urgent need must submit an UNG application which includes the following:

(a) documentation that the emergency situation was prompted by natural or man-made disasters that pose an imminent threat of widespread or severe injury or loss of life;

(b) certification the proposal is designed to address an urgent need and an immediate response is essential to initiate action that will halt the threat of widespread or severe injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria in Section 2.D.1. above plus the Special Program requirements in Section 2.D.2. above. While an invitation into Phase II is not a guarantee of funding, applicants will receive the amount necessary to complete their project, up to the maximum UNG Program award until the funding available is exhausted. Phase II applications must comply with the following:

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and/or market studies (and structural analysis in the case of Housing Assistance)

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning February 1, 1996. Applications will be accepted on a first come basis. Following receipt of an application, the OCD shall review the application and verify that it contains all the required information. If the application is complete and funds remain available in the program, the Director of OCD will evaluate each proposal and make the decision on whether or not to proceed further. Notification to the applicant of the Director's decision will initiate the Phase II process necessary for contract award.

E. RESERVED GRANTS

The Reserved Grant Program provides funding for the second year of a Public Facilities/Infrastructure (PFIG) or Housing Assistance grant awards that were initially determined eligible in the previous grant year.

1. Threshold Criteria: 1996 Reserved grantees must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Reserved Grants. County governments may apply on behalf of unorganized territories.

(b) All communities applying for PFIG or HA Reserved Grants must certify they have/will:

(i) provide a local match equivalent of 20% of total project cost

(ii) complete the required PFIG or HA Reserved Grant applications.

2. Special Program Requirements: 1996 reserved grantees must meet the following:

(a) Restriction on Applicants: eligible applicants are restricted to the following communities:

(i) Public Facilities/Infrastructure Program:

Bath $400,000

Belfast $400,000

Madawaska $400,000

Pittsfield $400,000

(ii) Housing Assistance Program:

Fort Fairfield $300,000

(b) Reasonable Progress: evidence that applicants are on line with the 1995 expenditure schedule as submitted in their PFIG or HA contract. Reserved Grant communities must have demonstrated reasonable progress in staffing, program design and contracting for their current program.

(c) LAG Expenditures: in the aggregate, 70% of the expenditures proposed by Reserved Grantees must result in benefit to low and moderate income persons.

3. Approval Process: The following actions constitute the approval process for reserved grants:

(a) Applications from Reserved Grant communities will be invited during the 1996 Phase II Process.

(b) Each Reserved Grant application will be reviewed by the OCD. The OCD will:

(i) Review status reports of Reserved Grant communities and compare the reserved grant application to the second year of the project as proposed in the previous year's Phase II process;

(ii) Review activity schedule and management plan for acceptability based on project design and budget; and

(iii) Develop recommendations for the CDBG Program Manager regarding the application's acceptability, grant conditions and funding level.

(c) Recommendations on Reserved Grant applications will be reviewed by the CDBG Program Manager, who will recommend to the Director and Commissioner of the DECD that the Reserved Grant community:

(i) Be funded at the requested level;

(ii) Not receive a reserved grant (if ineligible costs were incurred during the administration of the previous year or the project is no longer feasible); or

(iii) Be funded at a reduced level (the amount of reduction will be determined by the changes in the project's activities and schedules as originally proposed or by evidence that the project cannot accomplish its original goals).

(d) The Commissioner of the DECD will announce reserve grant awards during the 1996 Phase II process.

3. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides financial resources to local governments which in turn assist businesses to create jobs for low and moderate income persons.

1. Threshold Criteria: DF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant are provided to persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements: DF proposals also must comply with the following:

(a) Necessary and Appropriate: A DF loan to a for-profit businesses must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project.

Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application should present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate the non-DF financing also must represent new investment.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business or the developer identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(d) 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 locational cost differentiations and the benefit derived from the assistance.

(e) LMI Benefit: In the aggregate, 70% of the program expenditures are provided to benefit persons of low and moderate income.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following considerations will be the focus of the Impact factor:

(a) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(b) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified accountant, preferably a CPA- The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(c) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(d) DF Loan repayment: Terms of the loan repayment are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies for reuse.

(e) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter into security agreements.

(f) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below.

(g) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(h) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(i) Community and Economic Development. The primary and secondary impacts of the DF project on the community's plans for future economic development will be evaluated. The review will also examine the ripple effect of the proposal on the community as a whole. Retail businesses and restaurants will be given lower priority among applicants.

4. Approval Process:

(a) Application: Applications shall be submitted on the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the Director of the OCD. The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant an attorney, a representative of private financing, a business person, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee win review staff reports and make recommendations to the Director for awards. The Committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for complete/partial resubmission; and

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to Program Income, estimated to be $125,000 per quarter, plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director. The Director also reserves the right to reject any or all applications in any quarter. IL while nearing the end of the quarter, available funds are not sufficient to finance credit-worthy proposals, the review process win incorporate an objective needs factor (the distress factor described in Section 3.C.3.(iv) of this statement. Those proposals with the highest score in the needs factor will receive assistance first.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments or regional organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I) or the Rural Economic Community Development (RECD), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's Small Cities CDBG program or conventional lending institutions.

1. Threshold Criteria: RAF applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive RAF. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) 51% of the jobs created as a result of CDBG expenditures proposed by the RAF applicant are provided to persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements: RAF proposals also must comply with the following:

(a) RAF Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve RAF funds for the applicant, and an RAF Letter of Conditions win be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated RAF funds as a match to leverage additional funds. Depending on the matching requirements, requests to use funds from the reserve may have to meet additional special requirements that are similar to those described in Section 3.A.2. (a and b) of this Final Statement.

(b) Limit on Amount of RAF assistance. Each region of the State will be eligible for one RAF grant. Additional grants within regions will be made at the discretion of the Director of OCD. The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(c) Cost. The number of permanent jobs created or retained as per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's plans for future economic development will be evaluated. This review will also examine the ripple affect of the proposal on the community as a whole.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency and is working toward a full application, it may submit an RAF pre-application to DECD. DECD staff will review the RAF pre-applications on a first come basis to determine if the threshold criteria and special program requirements have been met. If so and when the application process has been successfully completed, the applicant will be invited to continue into the project development phase where the CDBG part of their project will be more fully developed. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OCD for awards:

(i) approval of requested amount and requested or different terms:

(ii) approval of lesser amount and requested or different terms; or,

(iii) rejection.

(c) Allocation: The RAF allocation will be $900,000. RAF proposals that meet all criteria may be awarded funds until the amount of funds available in the program has been committed. Having committed au funds in the program, OCD reserves the right not to accept any further applications.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate income persons. This program must be part of a community development strategy which will lead to future public and private investments.

Communities are encouraged to enter into partnerships to request Micro-Loan assistance when demand is sufficient on a multi-jurisdictional basis and communities would be better served through a regionally administered loan program.

1. Threshold Criteria and Certifications: The State will distribute funds to communities to establish a commercial loan program through the annual Micro-Loan application process. The threshold criteria and certifications for the process are listed below:

(a) Eligible Activities: Eligible activities include the establishment of a local commercial loan program for the purpose of assisting for-profit and non-profit businesses.

(b) Project Benefit: As a result of Micro-Loan expenditures, 51% of the jobs created or retained must be made available to or taken by persons from households that qualify as low and moderate income (LMI).

2. Special Program Requirements: Micro-Loan applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1996 Micro-Loan Program, communities that received Community Revitalization (CR) grants in 1991 must have conditionally closed their grants by February 23, 1996. Communities that received CR grants in 1992 must have expended 100% of their benefit activity funds by February 23, 1996. Communities that received ML grants in 1993 must have obligated 100% of their benefit activity funds by February 23, 1996. Communities that have received ML grants in 1994 must have obligated at least 50% of their benefit activity funds by February 23, 1996.

Exceptions: Grant recipients may only submit a request to DECD for a waiver of this special requirement under the following extraordinary circumstances: 1) the recipient has received unanticipated program income and is unable to meet the above performance requirements or 2) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in scheduled availability of essential leveraged funds.

(b) Maximum Micro-Loan Grant Amount: The maximum, grant award will be $100,000. The level of funding will be established in Phase II pursuant to the level of demand demonstrated by the applicant. Funds not loaned out within 12 months of completion of Phase II will be disencumbered and distributed as described in SECTION 5 REDISTRIBUTION OF GRANT FUNDS.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan participation.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000. Project activities and use of funds to calculate the non Micro-Loan financing must represent a new investment or a new project.

(e) Repayment Terms: The community reviewing the loan will establish repayment terms based on a case-by-case basis in light of economic health of the business, profitability, and rate of return on equity.

(f) Local Loan Procedures: The procedure the community uses to distribute loans must be approved by OCD and shall include a review of loan applications by a local loan review committee and determination that the assistance provided is commensurate with community benefits from the project. (OCD will provide sample guidelines)

3. Selection Process: The selection process will consist of two phases: an application phase (Phase 1) and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's business problems it would like to address with Micro-Loan funds. The application deadline is February 23, 1996.

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

(a) Problem Statement (30 points): The Problem Statement is a description of the needs the applicant wishes to address with Micro-Loan funds.

(i) Scope of Problem: (15 points) - Description of the economic base and business trend problems of the community and the impact on job opportunities.

(ii) Magnitude of Problem: (15 points) - Description of the need for funds and how that need was identified.

(b) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use Micro-Loan funds to solve the problem(s) discussed in the Problem Statement.

(i) Scope of Solution: (15 points) - Description of the actions the applicant will take to resolve problem(s) presented in the Problem Statement.

(ii) Capacity: (15 points) - Description of the capacity of the applicant to conduct a Micro-Loan Program and identification of accomplishments in administering loan programs or completing similar responsibilities.

(c) Citizen Participation (30 points): Citizen Participation is a description of how business groups, local citizens, community groups and others were involved in the identification of the problem(s) and solutions discussed in the application.

(i) Business Involvement: (15 points) - Description of how the business community brought attention to the need for Micro-Loan funds, business community participation in the application process, and efforts to increase involvement.

(ii) General Citizen Involvement: (15 points) - Description of how the need for, and priority of, a Micro-Loan program was defined as priority, involvement of general citizenry in application process, and efforts to increase involvement.

(d) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment: Rate (3.5 points) - The community's most recent annual unemployment rate will be divided by 10 and the result multiplied by 3.5. Communities with a unemployment rate greater than 10% will receive the total points allowed.

Unemployment: Absolute Numbers (1.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of unemployed persons. The list will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

(ii) LMI: Percentage (3.5 points) - The community's most recent LMI percentage will be divided by 51 and the result multiplied by 3.5. Communities with an LMI population greater than 51% will receive the total points allowed.

LMI: Absolute Numbers (1.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of LMI households. The list will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The Economic Development Infrastructure (EDI) Program provides Maine communities with funds with which to develop or rehabilitate public infrastructure so that existing and new non-retail businesses can create or retain jobs for low and moderate income individuals.

1. Threshold Criteria and Certifications: The State will distribute EDI funds through the EDI Program. The threshold criteria and certifications for the process are listed below:

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with such public infrastructure projects as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons.

(b) Cost per Job: In no case will the cost per job created or retained with EDI funds exceed $35,000.

(c) Project Benefit. 51% of the jobs created or retained as a result of EDI expenditures must be made available to or taken by persons of low and moderate income.

(d) Local Match: AU communities applying for EDI funds must provide a local match equivalent to 20 percent of total grant award.

2. Special Program Requirements: EDI Program applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1996 EDI Program, communities that received Community Revitalization (CR) grants in 1991 must have conditionally closed their grants by January 26, 1996. Communities that received CR grants in 1992 must have expended 100% of their benefit activity funds by January 26, 1996. Communities that received EDI grants in 1993 must have obligated 100% of their benefit activity funds by January 26, 1996. Communities that have received EDI grants in 1994 must have obligated at least 50% of their benefit activity funds by January 26, 1996.

Exceptions: Grant recipients may request for a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in availability of leveraged funds or 2) unanticipated program income received and the grantee is unable to meet the above performance requirements.

(b) Maximum Economic Development Infrastructure Grant Amount: The maximum grant award will be $400,000.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under limited conditions.

(i) The retail business represents the provision of new products and services previously unavailable in the community,

(ii) The development or expansion of the retail business represents a net economic gain for the community and the region. Applicant communities seeking EDI funds in support of a retail business or businesses are required to submit a completed Retail Business Certification contained in the 1996 EDI Application Package. This document certifies that the development represents a net overall gain for the regional economy and not a shift from existing established businesses to a new or expanded one; and

(iii) 50% or greater of the jobs created by the retail business must be full time jobs. (40 hr./week).

(d) Agreement to Participate: The applicant must submit a completed Agreement to Participate. This agreement must be on the form provided in the 1996 EDI application Package and be submitted with the application.

(e) Statement of Job Retention: In cases where job retention is to be a result of EDI assistance, a completed Statement of Job Retention must accompany the Agreement to Participate. This statement must be on the form provided in the 1996 EDI application package.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase 1), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's economic development problems that it would like to address with EDI funds.

Applications for the EDI Program will be accepted three times during the grant year. The application deadlines are January 26, 1996, March 26, 1996 and July 26, 1996.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem Statement, Proposed Solution, Citizen Participation, Numerical Analysis and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the final application score.

(a) Problem Statement (20 points): The Problem Statement is a description of the problems or needs the applicant wishes to address with an EDI Program.

(i) Scope of Problem: (10 points) - Identification and description of the problem facing a specific businesses) in relation to job creation or retention activities and overall financial viability.

(ii) Impact on Community and Region: (10 points) - Description of how the problems described above negatively impact local and regional employment and overall economic conditions.

(iii) Need for Funds: ( 5 points) - Identification of the reasons why the community is unable to finance the proposed project on its own, or with assistance form other sources, including the affected business.

(b) Proposed Solution (30 points): The Proposed Solution is a description of how the applicant would use EDI Program funds to solve the problem(s) discussed in the Problem Statement.

(i) Project Description: (10 points) - Identification and description of the construction activities that the applicant will undertake using EDI funds to resolve the problem(s) presented in the Problem Statement.

(ii) Effect on Assisted Business: (10 points) - Description of the effect EDI assistance and completion of the project as a whole will have on the ability of the businesses) to remain competitive, and create/retain quality jobs.

(iii) Project Feasibility: (10 points) - Description of the assurances of success of the project.

(c) Numerical Analysis of Significance of Project to Community and Region (20 points): This section will require the applicant to complete numerical tables to demonstrate the significance of the proposed project as it relates to job creation/retention and the effect on the labor market area and local economy. Point values will be determined by comparing the information presented in the application for each category below with set scoring criteria established by the OCD.

(i) Number of jobs Created/Retained: (5 points) - Applicant will be scored according to how the number of jobs to be created or retained compares to the set scoring criteria.

(ii) Percentage of Full Time Jobs: (5 points) - Applicant will be scored according the ratio of full time jobs created compared to total jobs created.

(iii) EDI Dollars Per Job Created: (5 points) - Applicant will be scored according to how the projected cost in EDI dollars per jobs created/retained compares to the set scoring criteria. (full time and full time equivalents).

(iv) Quality of Jobs Created: (5 points) - Applicant will be scored according to how compensation (salary & fringe) of the jobs to be created/retained compares to the set scoring criteria. (Full time and full time equivalents).

(d) Citizen Participation (10 points): Citizen Participation is a descriptive demonstration of how business groups, local citizens, community groups and others were involved in the identification of the problems and solutions discussed in the application.

(i) Business Involvement: (5 points) - Description of the involvement that the specific business or applicant's business community, whichever the case, has had in the development of this application. This should include a description of any and all meetings that were conducted where governmental business assistance was discussed.

(ii) General Citizen Involvement: (5 points) - Description of the involvement that the general citizenry and/or municipal leaders have had concerning the concept of assisting businesses. General citizenry groups consist, but are not limited to, Community Development Advisory Committees, Area Betterment Association, Community Groups, Planning Board, and the Board of Selectmen.

(e) Commitment (15 points): Commitment is a description of the other resources that will be contributed to the project. These may include commitments obtained or sought to date. In the evaluation of this section, commitments that have been obtained and that are legally binding will receive greater scores than those that are not.

(i) Sources: (10 points) - Description of all the other sources of funding that have been secured for this specific project, the arrangements that have been made to secure these funds, and a detailed description of the status of these sources at the time of this application.

(ii) Time frame: (5 points) - A description of when the funds mentioned above will be injected into the overall project.

(f) Unemployment Factor (5 points): OCD will derive a community's unemployment factor score from the following areas:

(i) Unemployment Rate: (3.5 points) - A score determined by taking the community's most recent annual unemployment rate, dividing it by 10%, and multiplying the result by 3.5. Communities with a most recent annual unemployment rate grater than 10% will receive the total points allowed.

(ii) Unemployment Numbers: (1.5 points) - applicants win be ranked form highest to lowest by number of unemployed persons. The rank order will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

(g) Priority Points (2 points): EDI projects in support of natural resource based industries and value added products derived from natural resource based industries will receive two points toward their final application score.

E. 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 create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria: IFP applicants must meet the following threshold criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive IFP funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive IFP funds. Except as described in 1(a) above, County governments are not eligible applicants.

(c) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons (Section 104 b. 3 of the Housing and Community Development Act of 1974, as amended),

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households (Section 104 b. 3 of the Housing and Community Development Act of 1974, as amended), or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be home by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households (Section 104 b. 3 of the Housing and Community Development Act of 1974, as amended).

(d) Undertake eligible activities pursuant to Section 104 b. 3 of the Housing and Community Development Act of 1974, as amended.

(e) Complete the required IFP application materials.

(f) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination the costs of financing so adversely affect the project's rate of return the project would not be undertaken without additional assistance. IF? grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: IF? grants will be made on a first come basis Projects that meet requirements may be awarded IF? grants until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the UT, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of AK months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will notify the State of its intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

F. CARGO PORT FACILITY SET ASIDE

The cargo port facility set aside for 1996 will be for the Port of Eastport.

1. Threshold Criteria: Cargo Port Facility applicants must meet the following threshold criteria:

(a) Eligible Applicant; Eligible applicant for the 1996 Cargo Port Facility Set Aside will be limited to the City of Eastport.

(b) 51% of the jobs created/retained as a result of CDBG expenditures proposed by the Cargo Port Facility applicant must be provided to persons of low and moderate income.

2. Special Program Requirements: Cargo Port Facility (CPF) Set Aside applicant must comply with the following:

(a) Maximum Grant Award: $400,000

(b) Grant Termination: The OCD may terminate Eastport's grant if progress on the project is not apparent within 12 months from the date of signing a contract with DECD.

(c) Program Requirements: The applicant must submit an initial proposal requesting CPF Program funds. The proposal must contain the following:

(i) A description of the problem to be addressed, the impact of the problem on the community and the region and the reason these funds are needed.

(ii) A description of the proposed activities to address the stated problem, the effect of the economic conditions of the community and the region

(iii) A description of the significance of the project to the community and region including the number of jobs created and/or retained, the number of jobs expressed in full time equivalents, the CPF Program dollars per full time equivalent job, and the quality of the jobs created and/or retained in terms of salary and fringe compared to the local and regional job market.

(iv) A description of the business and general citizen involvement in the preparation of this proposal and the project.

(v) A description of all sources of funding secured for this project and the schedule for when these funds will be injected into the project.

(d) The applicant must complete all CDBG Program Phase II project development requirements including state and federal certifications.

3. Selection Process: The Cargo Port Facility proposal will be evaluated as a viable business proposal. The following considerations will be the focus of the determination for award.

(a) Chance of Success: The project demonstrates that a market exists for its service, the cost of the service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(b) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; the project pro forma has been reviewed by an independent qualified accountant, preferably a CPA. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(c) Benefit: The CPF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. Benefit considerations are given below:

(i) Cost: The number of permanent full time jobs created or retained per CPF project dollars, not to exceed $35,000 per full time job, the increase in local tax dollars resulting from the project, and overall project cost effectiveness also will be considered.

(ii) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. A minimum of 51% of the jobs created and/or retained must be provided to LMI persons. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(iii) Community and Economic Development: The primary and secondary impacts of the CPF project on the community's plans for future economic development will be evaluated. The review will also examine the ripple effect of the proposal on the community as a whole.

SECTION 4. PLANNING METHODS OF DISTRIBUTION

A. PHASE II PLANNING GRANTS

The Phase II Planning Grant Program enables communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold Criteria: The State will distribute Phase II funds to communities or community partnerships, provided they meet the following threshold criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, and Micro-Loan Programs are eligible to apply for and receive Phase II Planning Grants from the State.

(b) Eligible Activities: Phase II Planning funds may be used for planning activities necessary to complete Phase II requirements as described in applicable funding programs listed in 1(a) above.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and the means to execute the Phase II Planning grant award.

(d) Federal and State Certifications for Local Governments: All communities applying for Phase II Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe bow the funds will be used to complete those tasks.

4. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff.

B. GENERAL PURPOSE PLANNING GRANTS

The General Purpose Planning Grant (GPPG) Program provides financial assistance to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: The State will distribute GPPG funds to local governments through the annual General Purpose Planning Grant Application Selection Process. The threshold criteria and certifications for the process are listed below:

Eligible Activities: GPPG funds may be used for planning only activities that include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Planning for downtown revitalization is not an eligible activity. Engineering, architectural and design costs related to specific activities are not eligible. All applications containing proposed ineligible or non-planning activities will be judged not to have met the project eligibility criteria. In all cases the applicant will be notified in writing of the determination made by OCD.

2. Special Program Requirements: GPPG applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1996 General Purpose Planning Grant program, communities that received Community Revitalization (CR) grants in 1991 must have conditionally closed their grants by March 22, 1996. Communities that received CR grants in 1992 must have expended 100% of their benefit activity funds by March 22, 1996.

Communities that received GPPG grants in 1993 must have obligated 100% of their benefit activity funds by March 22, 1996. Communities that received GPPG grants in 1994 must have obligated at least 50% of their benefit activity funds by March 22, 1996.

Exceptions: Grant recipients may request a waiver of this special requirement under the following circumstances: 1) program delays have occurred that are beyond the control of the grantee due to acts of nature or unforeseen changes in availability of leveraged funds or 2) unanticipated program income has been received and the grantee is unable to meet the above performance requirements.

(b) Maximum GPPG award amount: The maximum award is $10,000.

3. Selection Process: Applications for GPPG's will be accepted March 22, 1996. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. Applications will then be reviewed based on the following criteria:

(a) Description of Problem (30 points): A description of the problems the community wants to solve, how the problems were identified, and the impact of the problems on the community.

(b) Description Of How Funds Will be Allocated (40 points): A description of the tasks associated with formulating a solution for your community's problems. A description of how GPPG program will work with local government towards the development of strategies that work towards common goals and meet a national objective. An estimate of the amount of GPPG funds needed and an itemized breakdown of the proposed planning budget must be included.

(c) Project Leverage (20 points): A description of other resources (local, state, federal, private) that will be contributed to the project. These may include commitments obtained or sought to date.

(d) Citizen Participation (10 points): Description of how citizens, community groups and others were involved in the identification of the problem and the development of a strategy.

C. QUALITY MAIN STREET STRATEGY GRANTS

The Quality Main Street Strategy (QMS) Program provides financial assistance to communities for the development of strategies to revitalize main streets and downtowns.

1. Threshold Criteria and Certifications: The State will distribute QMS funds to local governments through the annual Quality Main Street grant application selection process. The threshold criteria and certifications for the process are listed below.

(a) Eligible Activities: QMS funds may be used for planning only activities related to the economic revitalization of a main street that include studies, analyses, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible.

(b) Match: AD communities applying for Quality Main Street Funds must provide a local match equivalent to 10 percent of the total grant award.

2. Special Program Requirements: QMS applicants must also comply with the following:

(a) Past Performance: Any community that previously received a Quality Main Street Grant is not eligible to apply for this program in 1996.

(b) Growth Management or Community Planning Program: Applicants for QMS must define their status within Maine's Growth Management Program. Communities that have accepted planning assistance funds, have a consistent comprehensive plan, and/or have accepted implementation funds must conduct their QMS planning in accordance with their growth management policies or with their community Planning Program.

(c) Maximum QMS Grant Amount. The maximum award is $20,000.

(d) Benefit of Planning: Communities must describe how the project assisted with QMS funds, if implemented, would meet one of the national objectives of the CDBG program as described in Section 104 b 3 of the Housing and Community Development Act of 1974, as amended.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. It is designed to be a description of a community's Main Street and Downtown problems that it would like to address with Quality Main Street Planning Grant Funds. The application deadline for QMS is March 22, 1996. Prior to consideration of a grant award, the proposals must meet the threshold criteria and the special program requirements. A minimum score of 85 will be required for funding. The applications will be evaluated according to the following criteria.

(a) Description of Economic and Physical Condition of Downtown: (40 points): Description of the economic and physical condition of the downtown and their impact on the community. Identification of events and issues unique to the downtown.

(b) Description of How Funds will be Allocated (30 points): Description of the tasks associated with formulating a solution for the community's problems.

(c) Project Coordination (20 points): Description of the other resources to be contributed to the planning initiative.

(d) Citizen Participation (10 points): Description of the involvement in the identification and proposed solution presented by local citizens, community groups and others.

D. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance Grant Program is to provide grant funding to the following preselected lead communities that will act on behalf of communities, within the existing Regional Council planning districts.

The communities have been selected on the basis of their willingness to assume the responsibility of administering this grant. These communities will assume certain administrative work, but will not receive any greater program benefit than neighboring communities that receive technical assistance for the Community Development Block Grant Program.

The following communities may provide technical assistance services under contract with their respective Regional Council to provide information about the Community Development Block Grant Program to communities in their region and to assist interested communities in preparing grant applications in the program categories:

Bath

Caribou

Eastport

Ellsworth

Freeport

Kittery

Mechanic Falls

Orono

Rockland

Winslow

The Department will contract directly with the Lincoln County Planning Office.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

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 1996 CDBG program but unable to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant canceled by the DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 1996 CDBG program, or added to the available monies for the 1996 or 1997 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 1996 CDBG program or added to the available monies for the 1996 or 1997 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 1996 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 1996 CDBG program or added to the available monies for the 1996 or 1997 competition.

3. Basis for Redistribution: The decision on how to redistribute the types of funds described in Paragraphs 1 and 2 above 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 scores above the specified point threshold in 1996 competitions but did not receive funding and the possibility of holding additional competitions during the 1996 Program. Additional competitions will be held only as a last resort, and be limited to the Housing Assistance, Public Facility/Infrastructure, and Economic Development Infrastructure programs. In all cases, these additional competitions and the subsequent programs developed, will be subject to the 1996 Program Statement.

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 DECD 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.

4. State Grants from HUD

The 1996 CDBG Program Statement and the budgeted distribution of funds for specific set-aside categories is done without complete knowledge of the State's HUD allocation. The Program Statement is being created based upon a projected allocation of $12 million. The final HUD allocation may not be officially announced until January 1996.

In recognition of this situation, the program will distribute 1996 CDBG HUD allocated funds in excess of $12 million, up to $15.15 million, in the following manner:

Funds received will be allocated to budget set-aside programs in the following order. Amounts greater than a whole program, but less than the next program in the order, will be allocated in accordance with paragraphs 1, 2, and 3 above.

1. EDI $400,000

2. PFIG #1 400,000

3. HA 300,000

4. RAF 200,000

5. EDI 400,000

6. PFIG #2 250,000

7. HA 300,000

8. PFIG #1 400,000

9. EDI 400,000

10. PS 300,000

Funds in excess of $15.15 million will be distributed in accordance with sections 1, 2 and 3 from page 52.

The OCD may also set-aside additional HUD allocations for State Program Administration, State Technical Assistance, Regional Council Technical Assistance and Phase II Planning Grants.

All staff recommendations regarding redistribution of funds in the 1996 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 Final 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 Final Statement.

(c) Program Income Received by the State: Up to 2% of program income returned to the State may be used for administrative costs. The balance of program income (98%) will be used to fund new 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;

(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 10% in any program, 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, Public Facilities/Infrastructure, Public Service, Urgent Need, Reserved Grants, Micro-Loan, Economic Development Infrastructure 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 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 undergo DECD's loan review process, 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: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees who do not close MLP loans to three or more different businesses or grantees who do not demonstrate demand for additional eligible loans will return MLP repayments to the DECD to be redistributed pursuant to Section 5. of the Program Statement.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1996 award may do so by submitting an appeal letter to the Commissioner of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgement regarding qualitative scoring will not be allowed. In the case of an appeal, funds will be reserved for the project from available or subsequent CDBG funds pending a decision.

SECTION 7. AMENDMENT TO THE FINAL STATEMENT

The State can amend the 1996 Final Statement from time to time in accordance with the same procedures required for the preparation and submission of the proposed statement. In addition, the amendment process will be guided by the State of Maine's Administrative Procedure Act.

EFFECTIVE DATE:

October 30, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

June 15, 1996 - reduced EDI application points from 85 to 80

CONVERTED TO MS WORD:

May 16, 2005

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 16 Community Development Block Grant Program: 1997 Final Statement

Code Me. R. 19-498 Ch. 16 Community Development Block Grant Program: {#sec-19-498-ch.-16 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 16}

1997 PROGRAM STATEMENT

1. PROGRAM OVERVIEW 1

A. CDBG OBJECTIVES 1

B. METHOD OF DISTRIBUTION 1

1. Community Development 2

2. Economic Development 2

3. Planning 2

C. STATE ADMINISTRATION 2

1. General Administration Allocation 2

2. Technical Assistance Administration Allocation 3

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 3

E. PROGRAM TIMEFRAME 3

F. PROGRAM BUDGET 4

G. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG

PROGRAM 5

2. COMMUNITY DEVELOPMENT 9

A. HOUSING ASSISTANCE GRANTS 9

1. Special Threshold Criteria and Certifications 9

2. Program Requirements 9

3. Selection Process 10

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS 13

1. Special Threshold Criteria and Certifications 13

2. Program Activities 13

3. Special Program Requirements 14

4. Selection Process 15

C. PUBLIC SERVICE GRANTS 17

1. Special Threshold Criteria and Certifications 17

2. Special Program Requirements 18

3. Selection Process 19

D. DOWNTOWN REVITALIZATION GRANTS 21

1. Special Threshold Criteria and Certifications 21

2. Special Program Requirements 22

3. Selection Process 22

E. URGENT NEED GRANTS 24

l. Special Threshold Criteria and Certifications 24

2. Special Program Requirements 25

3. Selection Process 25

4. Approval Process 26

5. ECONOMIC DEVELOPMENT 26

A. DEVELOPMENT FUND 26

1. Threshold Criteria 26

2. Special Program Requirements 27

3. Selection Process 28

4. Approval Process 29

B. REGIONAL ASSISTANCE FUND 30

1. Threshold Criteria 30

2. Special Program Requirements 31

3. Selection Process 32

4. Approval Process 33

C. MICRO‑LOAN PROGRAM 34

1. Threshold Criteria and Certifications 34

2. Special Program Requirements 34

3. Selection Process 35

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 37

1. Threshold Criteria and Certifications 37

2. Special Program Requirements 37

3. Selection Process 39

E. BUSINESS ASSISTANCE PROGRAM 42

1. Threshold Criteria 42

2. Special Program Requirements 42

3. Eligible Activities 42

4. Selection Process 42

5. Approval Process 45

F. INTERIM FINANCE PROGRAM 45

1. Threshold Criteria 45

2. Special Program Requirements 46

3. Selection Process 47

4. Approval Process 47

5. PLANNING METHODS OF DISTRIBUTION 48

A. PHASE II PLANNING GRANTS 48

1. Threshold Criteria 48

2. Special Program Requirements 48

3. Selection Process 48

4. Approval Process 48

B. COMMUNITY PLANNING GRANTS 49

1. Threshold Criteria and Certifications 49

2. Special Program Requirements 49

3. Selection Process 50

C. TECHNICAL ASSISTANCE GRANTS 50

5. REDISTRIBUTION OF GRANT FUNDS 51

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 51

1. Local Government Grants from the State 51

2. Unallocated State Grants To Local Governments 51

3. Basis for Redistribution 51

B. PROGRAM INCOME 52

1. General Program Income Requirements 52

2. Special Program Requirements 52

3. APPEALS 54

4. AMENDMENT TO PROGRAM STATEMENT 54

19-498 DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 16: COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM:

1997 PROGRAM STATEMENT

SUMMARY: The Program Statement describes the method by which 1997 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A. 13073. The 1997 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums and meetings with advisory groups. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings to solicit input prior to adopting the Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The Maine CDBG Program serves as a catalyst for local governments to implement programs which:

l. benefit low and moderate income persons;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, state and federal entities, multi‑jurisdictional organizations and the private sector to address common community and economic development problems.

B. METHOD OF DISTRIBUTION

The DECD, through the Office of Community Development (OCD), offers programs allowing municipalities to achieve their community development objectives. The 1997 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories: Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants

b. Public Facilities/Infrastructure Grants

c. Public Service Grants

d. Downtown Revitalization Program

e. Urgent Need Grants

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Micro-Loan Program

d. Economic Development Infrastructure Grants

e. Business Assistance Program

f. Interim Finance Program

3. Planning

a. Phase II Planning Grants

b. Community Planning Grants

C. STATE ADMINISTRATION

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's Small Cities CDBG Program in accordance with Federal, State and local requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Housing and Community Development Act of 1974, as amended, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. PROGRAM TIMEFRAME

Application deadlines are listed below.

Housing Assistance January 31, 1997

Economic Development Infrastructure February 21, 1997

May 9, 1997

July 18, 1997

Business Assistance Program Open

Public Facilities/Infrastructure February 28, 1997

Micro-Loan March 21, 1997

Downtown Revitalization Program February 28, 1997

Community Planning April 11, 1997

Public Service April 25, 1997

Urgent Need 1st come basis beginning March 1, 1997

Development Fund Monthly

Regional Assistance Fund Open

Interim Finance Program Open

F. PROGRAM BUDGET

The program budget indicates how CDBG Funds will be allocated for the 1997 grant year. The amount of the 1997 federal allocation is projected to be $16,561,000. The amount available for each program is indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BUDGET GRANT YEAR 1997

Projected FY 1997 CDBG Program Budget $16,561,000

Administration 431,220

Technical Assistance Administration 165,610

Regional Council Technical Assistance 200,000

1. Housing Assistance Grants 2,400,000

2. Public Facilities/Infrastructure Grants

Category 1 3,600,000

Category 2 1,000,000

Category 3 100,000

3. Public Service Grants 300,000

4. Urgent Need Grants 250,000

5. Downtown Revitalization Grants 800,000

6. Development Fund¹ 464,170

7. Regional Assistance Fund 1,000,000

8. Micro Loan Program 450,000

9. Economic Development Infrastructure Program 3,550,000

10. Interim Finance Program

11. Business Assistance Grants 1,600,000

12. Phase II Planning Grants 100,000

13. Community Planning Grants 150,000

¹ Development Fund program income projected to be $650,000.

G. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

1. The following state and federal regulations APPLY TO ALL PROGRAMS:

Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public Law 101‑122 regarding government‑wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) review the project proposed in the application to be sure that it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements APPLY TO ALL PROGRAMS:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF) and Regional Assistance Fund (RAF) programs, units of local government and unorganized territories may not apply for or benefit from more than one grant per program per grant year.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund (DF) Program, Economic Development Infrastructure Program and the Public Facilities Infrastructure Program category #1, units of local government and unorganized territories that benefited from a 1996 award or a two year 1995 award may not apply again in that specific program until the 1998 program.

(c) Computation of Distress Scores for Multi‑Jurisdictional Applications: Distress scores for multi‑jurisdictional applications will be computed on a weighted average basis.

(population 1)(distress 1)+(population 2)(distress 2)+... /

population 1 + population 2 +... = weighted average distress score.

(d) Phase II Planning Grants: Phase II participants may be eligible for planning grant funds on an as needed basis to assist with payment of project development costs. Extent of assistance shall be determined by OCD staff.

(e) Grant Termination: The OCD may terminate a community's grant if progress on the project is not apparent within 6 months from the date of contract signing.

(f) Project Eligibility: Applications will be reviewed to determine eligibility of activities the applicant proposes to undertake with CDBG funds. Those activities must be included in the list of eligible activities under the "special threshold criteria and certifications" section for the respective program being applied for and be eligible under Section 105 (a) of the Housing and Community Development Act of 1974, as amended. If the application contains an ineligible activity the application will not be considered for funding. The applicant will be notified in writing of the determination made by the OCD.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended. If the activity does not meet a national objective the application will not be considered for funding. The applicant will be notified in writing of the determination made by the OCD.

3. The following Threshold Criteria APPLY ONLY TO THE FOLLOWING PROGRAMS:

• Housing Assistance (HA)

• Economic Development Infrastructure (EDI)

• Public Facilities Infrastructure (PFIG)

• Community Planning Grant (CPG)

• Public Service Grant (PSG)

• Micro Loan (ML)

• Business Assistance (BA)

• Downtown Revitalization (DR)

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application per program, but only on behalf of different unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. These multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Scores will be determined by: (all scores - lowest score) / (all scorers - 1) plus distress scores. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II. While an invitation into Phase II is not a guarantee of funding, if successful, communities will receive the amount necessary to complete their project, up to the maximum grant award for that program until the funding available in that program is exhausted. Phase II project development includes:

(aa) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility and/or market studies.

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

(dd) Project Eligibility: Verification that proposed activities are eligible pursuant to Section 1. G. (2) (f) of the Program Statement.

(ee) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

(c) Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development to best meet the community's identified needs, and is in accordance with State goals. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and become eligible to receive CDBG funds. Communities not completing their Phase II application within six months of receiving a Phase II invitation will forfeit their grant award. The Director of OCD may waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community throughout project implementation.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate income persons.

1. Special Threshold Criteria and Certifications : The State will distribute Housing Assistance Program funds through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers, directly related to assisting or creating residential housing units.

(b) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent to 10 percent of the total grant award.

2. Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1997 Housing Assistance program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Housing Assistance Grant Amount: $300,000

(c) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants will be no more than $15,000 per unit rehabilitated. In cases of replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or the need for handicapped accessibility must be addressed, up to an additional $7,000 per unit may be made available. In extreme circumstances the maximum housing rehabilitation cost may be waived by the OCD.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. The application deadline is January 31, 1997.

Each application will be rated in relation to all other HA applications. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the application score.

(a) Problem Statement (30 points):

(i) Scope of Problem: (15 points) ‑ Identification and description of the magnitude and nature of the substandard housing conditions to be addressed, the process to solicit input and formulate a statement of the housing conditions to be addressed, and the relationship to other community problems.

(ii) Life Safety Considerations: (10 points) ‑ Identification and description of the conditions, their frequency and severity, and/or the nature of potential threats.

(iii) Energy Efficiency Considerations: (5 points) - Identification and description of the conditions that prevent LMI persons from maintaining affordable, comfortable and efficient energy standards.

(b) Proposed Solution (30 points):

(i) Effectiveness: (10 points) - Description of how funds will be used to solve the identified problems.

(ii) Life Safety and Energy Efficiency: (10 points) - Identification and description of how Housing Assistance funds will address identified threats to health, safety and energy problems.

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

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

(d) Commitment (10 points): Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing: (1.5 points) - A score based on the percent of substandard housing and the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (3.5 points total) ‑ Percentage Factor (1.5 points); a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities, plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

(iv) Poverty Level: (1.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above).

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The Public Facilities/Infrastructure Grant (PFIG) Program provides funding for local infrastructure and public facility activities which are part of a community development strategy and will lead to future public and private investments.

1. Special Threshold Criteria and Certifications: The State will distribute Public Facilities/Infrastructure Program funds through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include infrastructure for new housing construction and construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with such projects as listed below under 2. (a), (b) and (c). An application may include more than one eligible PFIG activity.

(b) Local Match: All communities applying for PFIG funds must certify that they will provide a local match equivalent to 20 percent of the total grant award. Fire Stations will require a 30% cash match.

2. Program Activities:

Activity Breakdown: In Phase I of the selection process, all PFIG applications will be sorted into one of the three eligible categories. Each applicant must identify the category it is applying for on the form provided in the application package. Applicants may apply for one or more activities from a single category but cannot apply for activities from more than one category.

(a) Category 1: Water, sewer, sewer hook-ups, storm drainage/CSO, and infrastructure for new housing construction.

(b) Category 2: Streets/roads, sidewalks, public wharfs/piers, fire stations, community centers, child care/senior citizen centers, health care centers, sheltered workshops, homeless shelters, libraries, neighborhood revitalization, and removal of architectural barriers.

(c) Category 3: Parking, street curbs, gutters, public parks, recreation facilities, public works garages, salt/sand storage facilities, fire fighting equipment, and transfer stations.

3. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1997 Public Facilities Infrastructure program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Public Facilities/Infrastructure Grant Amounts:

(i) Category 1: $400,000

(ii) Category 2: $250,000

(iii) Category 3: $ 50,000

(c) Funding Restrictions PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other housing activities are eligible in the Housing Assistance Grant program.

A maximum of two fire station projects will be funded. Sand/salt shed projects will only be funded after all other eligible category #3 projects.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

Phase I Application: The maximum length of a Phase I application is ten pages. The application deadline is February 28, 1997.

Each application will be rated in relation to all others in its respective category. A minimum of 70 points from the Problem Statement, Proposed Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding. A distress score will be added to this result to determine the proposed application score.

(a) Problem Statement (25 points):

(i) Scope of Problem: (10 points) ‑ Identification and description of the nature and magnitude of the identified problems to be addressed with PFIG funds.

(ii) Health, Safety, Welfare: (10 points) ‑ Impact of the stated problem on public health, safety, and welfare including blighting conditions in downtown areas.

(iii) Priority: (5 points) ‑ Significance of the problems to be addressed with PFIG funds in relation to other public facility problems within the community.

(b) Proposed Solution (25 points):

(i) Project Description: (10 points) - Identification and description of the activities to be undertaken to resolve the problems presented in the Problem Statement.

(ii) Project Feasibility: (15 points) - Identification of tasks, timetables, and the responsible parties to implement the proposed solution.

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

(d) Commitment (20 points): Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Bonus Points (2 points): For category #1 projects, “service center communities” identified by the State Planning Office will receive two bonus points.

(f) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing: (1.5 points) - A composite score of two factors: the percent of substandard housing and the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs. The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (3.5 points total) - Percentage Factor (1.5 points); a composite score derived from two factors ‑ a ranking based on the unemployment rates of the applicant communities, plus 0.15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three equal segments and assigned points accordingly (high, 1; middle 0.66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

(iv) Poverty Level: (1.5 points) - A score derived by using the percent of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2,499; 2,500 to 4,999; 5,000 and above).

C. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: The State will distribute Public Service Program funds 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 provided to:

(i) Persons who are members of the following groups that are currently presumed by HUD to meet the LMI criteria,

Abused Children

Battered Spouses

Elderly Persons

Handicapped Persons

Homeless Persons

Illiterate Persons

Migrant Farm Workers

(ii) participants in a program designed to limit the PSG funded benefit exclusively to eligible Low and Moderate Income persons.

(b) All communities applying for PSG funds must certify:

(i) the public service to be provided represents: 1) a new service to the community; or 2) a quantifiable increase in the level of an existing service and;

(ii) provide a local match equivalent to 20 percent of the total grant award,

(iii) and which document how the activity will meet the need or continue after PSG funding is expended.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1997 Public Service program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Public Service Grant Amount: $50,000

(c) Funding Restrictions: PSG funding is restricted to non-construction activities as listed in the Eligible Activities Section. Funding for construction or rehabilitation of public service facilities must be in place before a PSG award will be made.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is six pages. The application deadline is April 25, 1997.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the proposed application score.

(a) Problem Statement (20 points):

(i) Scope of Problem: (10 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with PSG funds.

(ii) Health, Safety and Welfare: (10 points) - Identification and description of the impact of the problem on individuals within the community and on the community as a whole.

(b) Proposed Solution (30 points):

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the identified problems.

(ii) Project Feasibility: (10 points) - Identification of task timetables and the parties responsible to implement the proposed solution.

(iii) Capacity: (10 points) - Identification and description of the abilities of the parties to implement the project activities

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

(d) Commitment (20 points): Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment Rate: (3.5 points) - A score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(ii) Unemployment Absolute Numbers: (3.5 points) - Communities will be ranked from highest to lowest based upon the numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI Percentage: (1.5 points) - A score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 3.5 to determine the score for LMI percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(iv) LMI Absolute Numbers: (1.5 points) - Communities will be ranked from highest to lowest based upon the numbers of low and moderate income households. This ranking will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; low 0.5). Unequal divisions will be rounded up.

D. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR)will provide funding to enable communities to implement comprehensive, integrated and innovative solutions to the problems facing their downtown districts. These projects are to be part of a community revitalization strategy targeted toward downtown service and business districts that will lead to future public and private investment.

1. Special Threshold Criteria and Certifications: The State will distribute Downtown Revitalization Program funds through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities/Infrastructure, Public Service, Housing Assistance, Business Assistance or Micro-loan programs as relevant to the revitalization of a downtown district. Some housing activities including the development of new rental housing may be funded with HOME program funds from the Maine State Housing Authority.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for the 1997 Downtown Revitalization program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Planning Requirements: All applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past four years. The proposed DR activities must be cited in the plan as a recommended action to enhance the downtown.

(c) Maximum Award: $400,000

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

Phase I Application: The maximum length of the Phase I application is ten pages. The application deadline is February 28, 1997.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem, Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (30 points)

(i) Scope of Problems (20 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

(ii) Impact on Economic Vitality (10 points) - Describe how the problems impact the economy of the community and inhibit its function.

(b) Solution (40 points)

(i) Project Description (15 points) - Description of how funds will be used to solve the identified problems.

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

(iii) Innovation (10 points) - Description of how the activities represent an innovative solution to the problems identified.

(iv) Feasibility (5 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points) - Identification and description of the process, including descriptions of public meetings, hearings and other methods to solicit residents, local organizations and public officials, involvement; and how the involvement of contributed to this application.

(d) Commitment (20 points) Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

National Objective

State how the project, if funded and implemented, will meet the CDBG national objectives of benefiting low and moderate income persons or eliminating slum and blighting conditions.

Downtown Revitalization Implementation Plan

Each application must include a copy of the implementation or action plan from the community’s Downtown Revitalization Plan.

E. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address needs having a particular urgency.

l. Special Threshold Criteria and Certifications:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments may apply for multi‑jurisdictional or joint emergency situations. Multi‑jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) 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 the submission of an application;

(iii) is a project the applicant cannot finance on its own; 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 occurrence of or the imminent threat of widespread injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UNG Amount: $100,000

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: Communities seeking to undertake a project on the basis of urgent need must submit an UNG application which includes the following:

(a) documentation that the emergency situation was prompted by natural or man‑made disasters that pose an imminent threat of widespread injury or loss of life;

(b) certify the proposal is designed to address an urgent need and an immediate response is required to initiate action that will halt the threat of widespread injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. While an invitation into Phase II is not a guarantee of funding, applicants will receive the amount necessary to complete their project, up to the maximum UNG Program award until the funding available is exhausted. Phase II applications must comply with the following:

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and structural analysis in the case of Housing Assistance.

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 1, 1997. Applications will be accepted on a first come basis. Following receipt of an application, the OCD shall review the application and verify that it contains all the required information. If the application is complete and funds remain available in the program, the Director of OCD will evaluate each proposal and make the decision on whether or not to proceed further. Notification to the applicant of the Director's decision will initiate the Phase II process necessary for contract award.

5. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides funding to local governments which in turn assist businesses to create jobs for low and moderate income persons.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant are provided to persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements: DF proposals must comply with the following:

(a) Necessary and Appropriate: A DF loan to a for-profit business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application should present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate the non-DF financing also must represent new investment.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business or the developer identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(d) 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 locational cost differentiations and the benefit derived from the assistance.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(d) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(e) DF Loan repayment: Terms of the loan repayment are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies for reuse.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter into security agreements.

(g) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(h) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the DF project on the community's plans for future economic development will be evaluated. The review will also examine the ripple effect of the proposal on the community as a whole.

4. Approval Process:

(a) Application: Applications shall be submitted by the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the Director of the Office of Business Development . The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, an attorney, a representative of private financing, a business person, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The Committee will have four general options to recommend on any individual project. The options are:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for complete/partial resubmission; and

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to $300,000 per quarter, plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director of OBD. The Director also reserves the right to reject any or all applications in any quarter.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments or regional organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I) or the Rural Economic Community Development (RECD), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's Small Cities CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive a RAF grant. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) 51% of the jobs created or retained as a result of CDBG expenditures proposed by the RAF applicant are provided to persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements: RAF proposals also must comply with the following:

(a) RAF Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve RAF funds for the applicant, and a RAF Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated RAF funds as a match to leverage additional funds.

(b) Limit on Amount of RAF assistance: Each economic development district will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the Director of Office of Business Development (OBD). The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(c) Cost: The number of permanent jobs created or retained as per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's plans for future economic development will be evaluated. This review will also examine the ripple affect of the proposal on the community as a whole.

(f) Local Commitment: The commitment of local funds to the project.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre‑application to the appropriate agency and is working toward a full application, it may submit a RAF pre-application to DECD. DECD staff will review the RAF pre-applications on a first come basis to determine if the threshold criteria and special program requirements have been met. If so and when the application process has been successfully completed, the applicant will be invited to continue into the project development phase where the CDBG part of their project will be more fully developed. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OBD for awards:

(i) approval of requested amount with requested or different terms:

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

(c) Allocation: The RAF allocation will be $1,000,000. RAF proposals that meet all criteria may be awarded funds until the amount of funds available in the program has been committed. Having committed all funds in the program, OCD reserves the right not to accept any further applications.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate income persons.

Communities are encouraged to enter into partnerships to request Micro‑Loan assistance when demand is sufficient on a multi‑jurisdictional basis and communities would be better served through a regionally administered loan program.

1. Threshold Criteria and Certifications: The State will distribute Micro Loan Program funds through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include the establishment of a local commercial loan program for the purpose of assisting for-profit and non-profit businesses.

(b) Project Benefit: As a result of Micro-Loan expenditures, 51% of the jobs created or retained by each business assisted must be made available to or taken by persons from households that qualify as low and moderate income (LMI).

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1997 Micro-Loan program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Micro-Loan Grant Amount: $100,000. An additional $12,500 may be awarded to grantees to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be disencumbered.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan participation.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000. Project activities and use of funds to calculate the non Micro-Loan financing must represent a new investment or a new project.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is March 21, 1997.

Each application will be rated in relation to all other Micro‑loan applications. A minimum of 70 points from the Problem Statement, Proposed Solution and Citizen Participation sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the proposed application score.

(a) Problem Statement (35 points):

(i) Scope of Problem: (17.5 points) - Description of the economic base and business trend problems of the community and the impact on job opportunities.

(ii) Magnitude of Problem: (17.5 points) - Description of the need for funds and how that need was identified.

(b) Proposed Solution (35 points):

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

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

(c) Citizen Participation (20 points):

(i) Business Involvement: (10 points) - Description of how the business community participated in the application process.

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

(d) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment: Rate (3.5 points) - The community's most recent annual unemployment rate will be divided by 10 and the result multiplied by 3.5. Communities with a unemployment rate greater than 10% will receive the total points allowed.

(ii) Unemployment: Absolute Numbers (3.5 points) ‑ Applicant communities will be listed from highest to lowest in terms of numbers of unemployed persons. The list will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI: Percentage (1.5 points) - The community's most recent LMI percentage will be divided by 51 and the result multiplied by 3.5. Communities with an LMI population greater than 51% will receive the total points allowed.

(iv) LMI: Absolute Numbers (1.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of LMI households. The list will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The Economic Development Infrastructure (EDI) Program provides Maine communities with funds to develop or rehabilitate public infrastructure to support existing and new non-retail businesses can create or retain jobs for low and moderate income individuals.

1. Threshold Criteria and Certifications: The State will distribute Economic Development Infrastructure Program funds through an annual grant application selection process held three times annually.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons.

(b) Cost per Job: In no case will the cost per job created or retained with EDI funds exceed $35,000.

(c) Project Benefit: 51% of the jobs created or retained as a result of EDI expenditures must be made available to or taken by persons of low and moderate income.

(d) Local Match: All communities applying for EDI funds must provide a local match equivalent to 20 percent of the total grant award.

2. Special Program Requirements: EDI Program applicants must also comply with the following:

(a) Past Performance: In order to be eligible to apply for the 1997 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Economic Development Infrastructure Grant Amount: $400,000.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under limited conditions.

(i) The retail business represents the provision of new products and services previously unavailable in the community;

(ii) The development or expansion of the retail business represents a net economic gain for the community and the region. Applicant communities seeking EDI funds in support of a retail business or businesses are required to submit a completed Retail Business Certification contained in the 1997 EDI Application Package. This document certifies that the development represents a net overall gain for the regional economy and not a shift from existing established businesses to a new or expanded one; and

(iii) 50% or greater of the jobs created by the retail business must be full time jobs. (40 hr./week).

(d) Agreement to Participate: The applicant must submit a completed Agreement to Participate. This agreement must be on the form provided in the 1997 EDI application Package and be submitted with the application.

(e) Statement of Job Retention: In cases where job retention is to be a result of EDI assistance, a completed Statement of Job Retention must accompany the Agreement to Participate. This statement must be on the form provided in the 1997 EDI application package.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is 8 pages. The application deadlines are: February 21, May 9, and July 18, 1997.

Each application will be rated in relation to all others. The total points from the Problem Statement, Proposed Solution, Citizen Participation, Numerical Analysis and Commitment sections will be determined for each application. A Distress score will be added to this result to determine the application score. A rank order will be established with the highest ranking application receiving first consideration and continuing until the allocation for each EDI funding round is exhausted. The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible.

(a) Problem Statement (20 points):

(i) Scope of Problem: (10 points) Problems facing a specific business(es) in relation to job creation or retention activities and overall financial viability.

(ii) Impact on Community and Region: (5 points) - Explain how these problems negatively impact local and regional employment and overall economic conditions.

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

(b) Proposed Solution (20 points):

(i) Project Description: (10 points) - Construction activities that the applicant will undertake using EDI funds to resolve the problem(s) presented in the Problem Statement.

(ii) Effect on Assisted Business: (5 points) - Effect EDI assistance and completion of the project as a whole will have on the ability of the business(es) to remain competitive, and create/retain quality LMI jobs.

(iii) Project Timeline and Feasibility: (5 points) - Description of the assurances of success of the project

(c) Numerical Analysis of Significance of Project to Community and Region (20 points): Numerical tables to demonstrate the significance of the proposed project as it relates to job creation/retention and the effect on the labor market area and local economy. Point values will be determined by comparing the information presented in the application for each category below with set scoring criteria established by the OCD.

(i) Number of jobs Created/Retained: (5 points)

(ii) Percentage of Full Time Jobs: (5 points)

(iii) EDI Dollars Per Job Created: (5 points)

(iv) Quality of LMI Jobs Created: (5 points)

(d) Citizen Participation (10 points):

(i) Public Hearing Process : (5 points) - Documentation of the public hearing held in the applicant’s municipality specific to this EDI application.

(ii) Business/Local Involvement: (5 points) - Description of the involvement that the general citizenry, municipal leaders and businesses have had in increasing citizen awareness and developing the EDI application.

(e) Commitment (25 points):

(i) Confirmation of LMI Jobs to be Created/Retained: (10 points) - Firm documentation as to the number and type of jobs to be created or retained as a result of EDI financing.

(ii) Project Funds Table and Source Documentation: (10 points) - A listing of all private and public funds firmly committed to this EDI project and binding documentation that these funds are secured.

(iii) Environmental and Permitting: (5 points) - What has been accomplished and future actions necessary for successful EDI project implementation.

(f) Unemployment Factor (3 points): OCD will derive a community's unemployment factor score from the following areas:

(i) Unemployment Rate: (2 points) - A score determined by taking the community's most recent annual unemployment rate, dividing it by 10%, and multiplying the result by 2. Communities with a most recent annual unemployment rate greater than 10% will receive the total points allowed.

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

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

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides funds to local governments which in turn loan or grant these funds to businesses to create or retain jobs for low and moderate income persons. The Business Assistance program will provide either loans, grants or a combination of each to meet the infrastructure and real property needs of businesses. The objective of the program is to assist economic initiatives and development opportunities that will have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories;

(b) 51% of the jobs created or retained as a result of BA expenditures must be provided to persons of low and moderate income;

(c) the cost per job created or retained with BA funds shall not exceed $35,000.

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA loan or grant to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance.

(b) Financing Plan: The application should present a complete financing plan for a project. The financing necessary to support the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will use these funds as either a loan or grant to the business identified in the BA application. The loan or grant must be provided under the terms stated in a Business Assistance Letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Terms must be based on the business’ maximum capacity for principle and interest payments as documented in their proformas and reviewed by FAME as appropriate to remain profitable.

(e) Maximum Business Development Grant Amount: $300,000

(f) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Eligible Activities

Eligible activities to be carried out with BA funds include: acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures and real property improvements.

4. Selection Process: The BA project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must be complete in that there are no unidentified activities or project costs necessary to implement the project.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional. The financing plan must be complete.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(e) BA Loan repayment: Terms of the loan repayment are to reflect what is necessary to allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies for reuse.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the BA loan and indicates willingness to enter into security agreements.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's plans for future economic development will be evaluated. The review will also examine the ripple effect of the proposal on the community as a whole.

(k) Community Financial Commitment: The community must demonstrate a vested financial interest in the development project. The program’s goal is obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

(a) Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee appointed by the Director of the Office of Business Development.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the Director of OBD for awards.

F. 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 create housing and job opportunities for low and moderate income people through short-term loans.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive IFP funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi‑jurisdictional or joint projects. Multi‑jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive IFP funds. Except as described in 1(a) above, County governments are not eligible applicants.

(c) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons,

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households, or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households.

(d) Complete the required IFP application materials.

(e) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project's rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: IFP grants will be made on a first come basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP grant/loan is needed, if all non‑CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING METHODS OF DISTRIBUTION

A. PHASE II PLANNING GRANTS

The Phase II Planning Grant Program enables communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold Criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, Micro-Loan Programs, Business Assistance and Downtown Revitalization are eligible to apply for and receive Phase II Planning Grants.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Phase II requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule for completion.

(d) Federal and State Certifications: Communities applying for Phase II Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Special Program Requirements: Not applicable.

3. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete those tasks.

4. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff.

B. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: The State will distribute Community Planning Program funds through an annual grant application selection process.

Eligible Activities: CPG funds may be used for planning only activities that include studies, analysis, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible. All applications containing proposed ineligible or non‑planning activities will not be considered eligible. The applicant will be notified in writing of the determination made by OCD.

Project Benefit: The proposed activities must meet one of the CDBG Program national objectives of either providing benefit to low and moderate income persons, or removing slum or blighting influences within that community.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1997 Community Planning program, communities that received CDBG grants in or prior to 1993 must have closed their grants by December 1, 1996. Communities that received CDBG grants in 1994 must have conditionally closed their grants by December 1, 1996. Communities that received CDBG grants in 1995 must have obligated 50% of their benefit activity funds by December 1, 1996.

Exceptions: Applicants must submit a request for a waiver of this special requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum CPG Grant Amount: $10,000.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Priority for funding will be given to the following categories in the numbers indicated: Housing(3), Public Facilities Infrastructure(6), Economic Development(3) and Tourism Opportunities(3).

Phase I Application: The maximum length of an application is six pages. The application deadline is April 11, 1997.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Development of Strategy, Citizen Participation and Project Leverage is required for consideration to be invited into Phase II.

(a) Problem Statement (30 points): A description of the problems, how they were identified, and the impact of the problems on the community.

(b) Development of Strategy (40 points): A description of the tasks associated with formulating a solution for your community's problems. A description of how CPG program will work with local government towards the development of strategies that work towards common goals. and meet a national objective.

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

(d) Citizen Participation (10 points): Description of how citizens, community groups and others were involved in the identification of the problem and the development of a strategy.

C. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance grant program is to provide funds to selected communities that will contract with Regional Councils to provide technical assistance services to themselves and the communities in their region.

Technical assistance services provided will include information about the CDBG program, its applicability for projects within a community and assistance to interested communities in preparing grant applications.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, 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 1997 CDBG program but unable to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant canceled by the DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 1997 CDBG program, or added to the available monies for the 1997 or 1998 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 1997 CDBG program or added to the available monies for the 1997 or 1998 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 1997 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 1997 CDBG program or added to the available monies for the 1997 or 1998 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 1997 competitions but did not receive funding and the possibility of holding additional competitions during the 1997 Program. In all cases, these additional competitions and the subsequent programs developed, will be subject to the 1997 Program Statement.

In the case of funds added to open grants, redistribution will give priority to grants needing additional CDBG funds to complete the activities described in their application to the DECD 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.

B. PROGRAM INCOME

As used in this Proposed 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. 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.

(c) Program Income Received by the State: Up to 2% of program income returned to the State may be used for administrative costs. The balance of program income (98%) will be used to fund new or previously committed CDBG obligations.

(d) Program Income Plan: Each grantee must submit a Program Income Plan to OCD. The 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;

(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 10% in any program, 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, Public Facilities/Infrastructure, Public Service, Business Assistance, Downtown Revitalization, Urgent Need, Micro-Loan, Economic Development Infrastructure: 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:

(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 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 undergo DECD's loan review process, 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: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees who do not close MLP loans to three or more different businesses or grantees who do not demonstrate demand for additional eligible loans will return MLP repayments to the DECD.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1997 award may do so by submitting an appeal letter to the Commissioner of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be entertained. In the case of an appeal, funds will be reserved for the project from available or subsequent CDBG funds pending a decision.

SECTION 7. AMENDMENT TO THE PROGRAM STATEMENT

The State may amend the 1997 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The amendment process will be guided by the State of Maine's Administrative Procedures Act.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

AARON SHAPIRO, PROGRAM MANAGER

OFFICE OF COMMUNITY DEVELOPMENT

33 STONE STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333‑0059

TELEPHONE (207) 287‑8476

TTY (207) 287‑2656

Community

Development

Block

Grant

Program 1997

PROGRAM STATEMENT

December 1996

Department of Economic and Community Development

Office of Community Development

33 Stone Street

59 State House Station

Augusta, ME 04333‑0059

(207) 287‑8485 (Voice) (207) 287‑2656 (TTY)

History

• STATUTORY AUTHORITY: 5 MRSA §13058 sub-§3
• EFFECTIVE DATE: January 7, 1997
• CONVERTED TO MS WORD: May 16, 2005
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 17 Community Development Block Grant Program: 1998 Final Statement

Code Me. R. 19-498 Ch. 17 Community Development Block (cdbg) Grant Program {#sec-19-498-ch.-17 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 17}

1998 PROGRAM STATEMENT

1. PROGRAM OVERVIEW 1

A. CDBG OBJECTIVES 1

B. METHOD OF DISTRIBUTION 1

1. Community Development 2

2. Economic Development 2

3. Planning 2

C. STATE ADMINISTRATION 2

1. General Administration Allocation 2

2. Technical Assistance Administration Allocation 3

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 3

E. PROGRAM TIMEFRAME 3

F. PROGRAM BUDGET 4

G. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 5

2. COMMUNITY DEVELOPMENT 9

A. HOUSING ASSISTANCE GRANTS 9

1. Special Threshold Criteria and Certifications 9

2. Program Requirements 9

3. Selection Process 10

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS 12

1. Special Threshold Criteria and Certifications 12

2. Program Activities 13

3. Special Program Requirements 13

4. Selection Process 14

C. PUBLIC SERVICE GRANTS 16

1. Special Threshold Criteria and Certifications 17

2. Special Program 17

3. Selection Process 18

D. DOWNTOWN REVITALIZATION GRANTS 20

1. Special Threshold Criteria and Certifications 20

2. Special Program Requirements 20

3. Selection Process 21

E. URGENT NEED GRANTS 22

l. Special Threshold Criteria and Certifications 23

2. Special Program Requirements 23

3. Selection Process 24

4. Approval Process 25

5. ECONOMIC DEVELOPMENT 25

A. DEVELOPMENT FUND 25

1. Threshold Criteria 25

2. Special Program Requirements 25

3. Selection Process 26

4. Approval Process 27

B. REGIONAL ASSISTANCE FUND 28

1. Threshold Criteria 29

2. Special Program Requirements 29

3. Selection Process 30

4. Approval Process 31

C. MICRO-LOAN PROGRAM 31

1. Threshold Criteria and Certifications 32

2. Special Program Requirements 32

3. Selection Process 33

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 34

1. Threshold Criteria and Certifications 34

2. Special Program Requirements 35

3. Selection Process 36

E. BUSINESS ASSISTANCE PROGRAM 39

1. Threshold Criteria 39

2. Special Program Requirements 39

3. Eligible Activities 40

4. Selection Process 40

5. Approval Process 42

F. INTERIM FINANCE PROGRAM 42

1. Threshold Criteria 42

2. Special Program Requirements 43

3. Selection Process 44

4. Approval Process 44

G. REGIONAL SUPER PARK PROGRAM 45

1. Threshold Criteria 45

2. Special Program Requirements 45

3. Selection Process 46

4. PLANNING METHODS OF DISTRIBUTION 47

A. PHASE II PLANNING GRANTS 47

1. Threshold Criteria 47

2. Special Program Requirements 48

3. Selection Process 48

4. Approval Process 48

B. COMMUNITY PLANNING GRANTS 48

1. Threshold Criteria and Certifications 48

2. Special Program Requirements 48

3. Selection Process 49

C. TECHNICAL ASSISTANCE GRANTS 50

5. REDISTRIBUTION OF GRANT FUNDS 50

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 50

1. Local Government Grants from the State 50

2. Unallocated State Grants To Local Governments 50

3. Basis for Redistribution 50

B. PROGRAM INCOME 50

1. General Program Income Requirements 50

2. Special Program Requirements 52

3. APPEALS 53

4. AMENDMENT TO PROGRAM STATEMENT 53

19-498 Department of Economic and Community Development

Chapter 17: Community Development Block Grant Program: 1998 Program Statement

SUMMARY: The Program Statement describes the method by which 1998 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A. 13073. The 1998 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums and meetings with advisory groups. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings to solicit input prior to adopting the Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The Maine CDBG Program serves as a catalyst for local governments to implement programs which:

1. benefit low and moderate income persons;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs allowing municipalities to achieve their community development objectives. The 1998 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories: Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants

b. Public Facilities/Infrastructure Grants

c. Public Service Grants

d. Downtown Revitalization Program

e. Urgent Need Grants

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Micro-Loan Program

d. Economic Development Infrastructure Grants

e. Business Assistance Program

f. Interim Finance Program

g. Regional Super Park Program

3. Planning

a. Phase II Planning Grants

b. Community Planning Grants

C. STATE ADMINISTRATION

1. General Administration Allocation: Pursuant to Section 106(d)(3)(A) of the Housing and Community Development Act of 1974, as amended, the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's Small Cities CDBG Program in accordance with Federal, State and local requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d)(5) of the Housing and Community Development Act of 1974, as amended, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. PROGRAM TIMEFRAME

Application deadlines are listed below.

Housing Assistance December 19, 1997

Economic Development Infrastructure February 20, 1998

May 8, 1998

July 10, 1998

Business Assistance Program Open

Public Facilities/Infrastructure January 16, 1998

Micro-Loan March 6, 1998

Downtown Revitalization Program January 30, 1998

Community Planning February 27, 1998

Public Service April 24, 1998

Urgent Need 1st come basis beginning

March 1, 1998

Development Fund Monthly

Regional Assistance Fund Open

Interim Finance Program Open

Regional Super Park August 1, 1998

F. PROGRAM BUDGET

The program budget indicates how CDBG Funds will be allocated for the 1998 grant year. The amount of the 1998 federal allocation is projected to be $16,561,000. The amount available for each program is indicated in the following budget.

COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET

GRANT YEAR 1998

Projected FY 1998 CDBG Budget $16,561,000

Administration 397,615

Technical Assistance Administration 165,610

Regional Council Technical Assistance 200,000

1. Housing Assistance Grants 2,400,000

2. Public Facilities/Infrastructure Grants

Category 1 3,600,000

Category 2 1,500,000

Category 3 100,000

3. Public Service Grants 300,000

4. Urgent Need Grants 247,775

5. Downtown Revitalization Grants 800,000

6. Development Fund1 0

7. Regional Assistance Fund 800,000

8. Micro Loan Program 400,000

9. Economic Development Infrastructure Program 3,200,000

10. Regional Super Park Program 1,000,000

11. Interim Finance Program see below*

12. Business Assistance Program 1,200,000

13. Phase II Planning Grants 100,000

14. Community Planning Grants 150,000

1 The 1998 Development Fund Loan Program will operate on program income only. Development Fund program income is projected to be $650,000.

*The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short-term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

G. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

1. The following state and federal regulations APPLY TO ALL PROGRAMS:

Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

(i) minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Housing and Community Development Act of 1974, as amended;

(ii) take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

(iii) not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

(iv) establish a community development plan;

(v) meet all required State and Federal public participation requirements;

(vi) comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

(vii) with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

(viii) review the project proposed in the application to be sure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements APPLY TO ALL PROGRAMS:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), Business Assistance (BA) and Regional Assistance Fund (RAF) programs, units of local government and unorganized territories may not apply for, or benefit from, more than one grant per program per grant year.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund Program, Economic Development Infrastructure Program, Business Assistance and the Public Facilities Infrastructure Program category #1, units of local government and unorganized territories that benefited from a 1997 award may not apply again in that specific program until the 1999 program.

(c) Computation of Distress Scores for Multi-Jurisdictional Applications: Distress scores for multi-jurisdictional applications will be computed on a weighted average basis. (population 1)(distress 1)+(population 2)(distress 2)+... /population 1 + population 2 +... = weighted average distress score.

(d) Phase II Planning Grants: Phase II participants may be eligible for planning grant funds on an as needed basis to assist with payment of project development costs. Extent of assistance shall be determined by OCD staff.

(e) Grant Termination: The OCD may terminate a community's grant if progress on the project is not apparent within 6 months from the date of contract signing.

(f) Project Eligibility: Applications will be reviewed to determine eligibility of activities the applicant proposes to undertake with CDBG funds. Those activities must be included in the list of eligible activities under the "special threshold criteria and certifications" section for the respective program being applied for and be eligible under Section 105 (a) of the Housing and Community Development Act of 1974, as amended.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended. If the activity does not meet a national objective the application will not be considered for funding. The applicant will be notified in writing of the determination made by the OCD.

(h) Preference for Certified Communities: In accordance with Title 30-A M.R.S.A. subsection 4349(2)(B) communities with certified growth management programs (as determined by the State Planning Office), as of 30 days prior to application deadline, will receive preference in the award of CDBG grants in the following situation:

In the event of a tie between communities receiving the lowest funded application score in any particular program, the grant will be awarded to the certified community, except where the tie is between a certified community and a community that never received an offer of financial assistance to develop a growth management program.

3. The following Threshold Criteria APPLY ONLY TO THE FOLLOWING PROGRAMS:

• Housing Assistance (HA) * Public Service Grant (PSG)

• Economic Development Infrastructure (EDI) * Micro Loan (ML)

• Public Facilities Infrastructure (PFIG) * Business Assistance (BA)

• Community Planning Grant (CPG) * Downtown Revitalization (DR)

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application per program, but only on behalf of different unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. These multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Scores will be determined by: (all scores - lowest score) / (all scorers - 1) plus distress scores. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II. An invitation into Phase II is not a guarantee of funding. However successful communities will receive an amount sufficient to complete their project, but not over the maximum grant award for that program. Phase II project development includes:

(aa) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility and/or market studies.

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

(dd) Project Eligibility: Verification that proposed activities are eligible pursuant to Section 1.G.(2)(f) of the Program Statement.

(ee) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

(ff) Environmental Review: Review of project for compliance with state and federal environmental regulations.

(c) Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development to best meet the community's identified needs. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and receive CDBG funds. Communities not completing their Phase II application within six months of receiving a Phase II invitation will forfeit their grant award. The Director of OCD may waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community throughout project implementation.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate income persons.

1. Special Threshold Criteria and Certifications : The State will distribute Housing Assistance Program funds through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers, directly related to assisting or creating residential housing units.

(b) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent to 10 percent of the total grant award.

2. Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1998 Housing Assistance program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Housing Assistance Grant Amount: $300,000

(c) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants will be no more than $15,000 per unit rehabilitated. Additional funds up to a maximum of $7,000 may be available in the following cases: replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or accessibility modifications. In extreme circumstances, the maximum housing rehabilitation cost may be waived by the OCD.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is ten pages. The application deadline is December 19, 1997.

Each application will be rated in relation to all other HA applications. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the application score.

(a) Problem Statement (30 points): .

(i) Scope of Problem: (10 points) - Identification and description of the magnitude and nature of the housing conditions to be addressed (i.e., substandard housing, lack of affordable housing, etc.).

(ii) LMI and Community Impact: (10 points) - Identification and description of the impact of the problem on low-to-moderate income residents and the larger community or neighborhood. Include a description of the health, safety and welfare issues of the residents.

(iii) Energy Efficiency Considerations: (10 points) - Identification and description of the conditions that prevent LMI persons from maintaining affordable, comfortable and efficient energy standards.

(b) Proposed Solution (30 points):

(i) Effectiveness: (20 points) - Description of how funds will be used to solve the identified problems.

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

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

(d) Commitment (10 points) - Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Distress (10 points) - OCD will derive a community's distress score from the following four areas:

(i) Housing: (1.5 points) - A score based on the percent of substandard housing (.75) and a score based on the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs (.75). The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (3.5 points total) - Percentage Factor ; a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities (1.5 points), plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates divided into three segments and assigned points accordingly (high 3.5, middle 2.0 and low .5) for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). Unequal divisions will be rounded up.

(iv) Poverty Level: (1.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). The ranking will be divided into three segments and assigned points accordingly (high 1.5, middle 1.0, low .5). Unequal divisions will be rounded up.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The Public Facilities/Infrastructure Grant (PFIG)Program provides funding for local infrastructure and public facility activities which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: The State will distribute Public Facilities/Infrastructure Program funds through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include infrastructure for new housing construction and construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with such projects as listed below under 2. (a), (b) and (c). An application may include more than one eligible PFIG activity.

(b) Local Match: All communities applying for PFIG funds must certify that they will provide a local match equivalent to 20 percent of the total grant award. Fire Stations will require a 30% cash match.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities from a single category but cannot apply for activities from more than one category.

Each applicant must identify the category it is applying for on the form provided in the application package.

(a) Category 1: Water, sewer, sewer hook-ups, storm drainage, and infrastructure for new housing construction.

(b) Category 2: Streets/roads, sidewalks, public wharfs/piers, fire stations, community centers, child care/senior citizen centers, health care centers, sheltered workshops, homeless shelters, libraries, neighborhood revitalization, and removal of architectural barriers.

(c) Category 3: Parking, curbs, gutters, public parks, recreation facilities, public works garages, salt/sand storage facilities, fire fighting and rescue equipment, and transfer stations.

3. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1998 Public Facilities Infrastructure program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Public Facilities/Infrastructure Grant Amounts:

(i) Category 1: $400,000

(ii) Category 2: $250,000

(iii) Category 3: $ 50,000

(c) Funding Restrictions. PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

A maximum of two fire station projects will be funded. Sand/salt shed projects will only be funded after all other eligible category #3 projects.

(d) Demonstration of National Objective. Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or preventing or eliminating slum and blighting conditions. Income surveys must use HUD-approved methodology and be accepted by OCD.

(e) Bonus Points for Service Center Communities. PFIG Category #1 applicants will receive two bonus points if they have been identified by the State Planning Office as a service center community. A list of service center communities is included with this statement.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

Phase I Application: The maximum length of a Phase I application is ten pages. The application deadline is January 16, 1998.

Each application will be rated in relation to all others in its respective category. A minimum of 70 points from the Problem Statement, Proposed Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding. A distress score and bonus points will be added to this result.

(a) Problem Statement (25 points):

(i) Scope of Problem: (10 points) - Identification and description of the nature and magnitude of the problems to be addressed with PFIG funds.

(ii) Health, Safety, Welfare: (10 points) - Impact of the stated problem on public health, safety, and welfare.

(iii) Priority: (5 points) - Significance of the problems to be addressed with PFIG funds in relation to other public facility problems within the community.

(b) Proposed Solution (25 points):

(i) Project Description: (10 points) - Identification and description of the activities proposed to resolve the problems presented in the Problem Statement.

(ii) Project Feasibility: (15 points) - Identification of tasks, timetables, and the responsible parties to implement the proposed solution.

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

(d) Commitment (20 points): Identification and description of how community, organizations and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Bonus Points (2 points): For category #1 projects, “service center communities” identified by the State Planning Office will receive two bonus points.

(f) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing: (1.5 points) - A score based on the percent of substandard housing (.75) and a score based on the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs (.75). The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (3.5 points total) - Percentage Factor ; a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities (1.5 points), plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates divided into three segments and assigned points accordingly (high 3.5, middle 2.0 and low .5) for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). Unequal divisions will be rounded up.

(iv) Poverty Level: (1.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). The ranking will be divided into three segments and assigned points accordingly (high 1.5, middle 1.0, low .5). Unequal divisions will be rounded up.

C. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: The State will distribute Public Service Program funds 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 provided to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet the LMI criteria,

Abused Children Battered Spouses Elderly Persons

Persons with Disabilities Homeless Persons Illiterate Persons

Migrant Farm Workers

(ii) participants in a program designed to limit the PSG funded benefit exclusively to eligible Low and Moderate Income persons.

(b) All communities applying for PSG funds must certify that:

(i) the public service represents: a) a new service to the community; or b) a quantifiable increase in the level of an existing service;

(ii) a local match equivalent to 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) Past Performance: In order to be eligible to apply for the 1998 Public Service program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Public Service Grant Amount: $50,000

(c) Funding Restrictions: PSG funding is restricted to non-construction activities as listed in the Eligible Activities Section. Funding for construction or rehabilitation of public service facilities must be in place before a PSG award will be made.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is eight pages. The application deadline is April 24, 1998.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A distress score will be added to this result.

(a) Problem Statement (20 points):

Scope of Problem: (20 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds.

(b) Proposed Solution (30 points):

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems.

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

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

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

(d) Commitment (20 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments, with the basis for determining value.

(e) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment Rate: (3.5 points) - A score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(ii) Unemployment Absolute Numbers: (3.5 points) - Communities will be ranked from highest to lowest based upon the numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 3.5; middle 2.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI Percentage: (1.5 points) - A score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 1.5 to determine the score for LMI percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(iv) LMI Absolute Numbers: (1.5 points) - Communities will be ranked from highest to lowest based upon the numbers of low and moderate income households. This ranking will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; low 0.5). Unequal divisions will be rounded up.

D. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to enable 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.

1. Special Threshold Criteria and Certifications: The State will distribute Downtown Revitalization Program funds through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities/Infrastructure, Public Service, Housing Assistance, or Business Assistance programs as relevant to the revitalization of a downtown district. Some housing activities including the development of new rental housing may be funded with HOME program funds from the Maine State Housing Authority.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for the 1998 Downtown Revitalization program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Planning Requirements: All applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past four years. The proposed DR activities must be cited in the plan as a recommended action to enhance the downtown.

(c) Maximum Award: $400,000

(d) Bonus Points for Service Center Communities Applicants will receive two bonus points if they have been identified by the State Planning Office as a service center community.

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

Phase I Application: The maximum length of the Phase I application is ten pages. The application deadline is January 30, 1998.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem, Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (30 points)

(i) Scope of Problems (20 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

(ii) Impact on Economic Vitality (10 points) - Describe how the problems negatively impact the economy of the community and persons of low-to-moderate income.

(b) Solution (40 points)

(i) Project Description (15 points) - Description of how funds will be used to solve the identified problems.

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

(iii) Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d) Commitment (20 points) - Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

National Objective

State how the project, if funded and implemented, will meet the CDBG national objectives of benefiting low and moderate income persons or eliminating slum and blighting conditions.

Downtown Revitalization Implementation Plan

Each application must include a copy of the implementation or action plan from the community’s Downtown Revitalization Plan.

E. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address serious and immediate threats to health and welfare.

1. Special Threshold Criteria and Certifications:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint emergency situations. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) 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 the submission of the application;

(iii) is a project the applicant cannot finance on its own; 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 imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UNG Amount: $100,000

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: An UNG application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that poses an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. While an invitation into Phase II is not a guarantee of funding, applicants will receive the amount necessary to complete their project, up to the maximum UNG Program award until the funding available is exhausted. Phase II applications must comply with the following:

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and structural analysis as necessary.

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 1, 1998. Applications will be accepted on a first come basis. Following receipt of an application, the OCD shall review the application and verify that it contains all the required information. If the application is complete and funds remain available in the program, the Director of OCD will evaluate each proposal and make the decision on whether or not to proceed further. Notification to the applicant of the Director's decision will initiate the Phase II process necessary for contract award.

5. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides funding to local governments which in turn assist businesses to create jobs for low and moderate income persons.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant must be taken by persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a for-profit business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application should present a financing plan for a project in which the DF loan comprises the lesser of $100,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be documented by binding commitment letters submitted with the application.

(c) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(d) 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 locational cost differentiations and the benefit derived from the assistance.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(d) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(e) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to enter into security agreements.

(g) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(h) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the DF project on the community's current and future economic development will be evaluated.

4. Approval Process:

(a) Application: Applications shall be submitted by the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee. As a review body, the DF Committee will make recommendations to the Director of the Office of Business Development . The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, an attorney, a representative of private financing, a business person, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The Committee will recommend one of four options :

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for complete/partial resubmission; or,

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to $300,000 per quarter, plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director of OBD. The Director also reserves the right to reject any or all applications in any quarter.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments or regional organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's Small Cities CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive a RAF grant. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) be an eligible planning activity or a project with 51% of the jobs created or retained as a result of RAF expenditures proposed by the applicant are taken by persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve RAF funds for the applicant, and a RAF Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated RAF funds as a match to leverage additional funds.

(b) Limit on Amount of RAF assistance: Each economic development district will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the Director of Office of Business Development (OBD). The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's current and future economic development will be evaluated.

(f) Local Commitment: The commitment of local funds to the project.

Additional weight will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency and is working toward a full application, it may submit a RAF pre-application to DECD. DECD staff will review the RAF pre-applications on a first come basis to determine if the threshold criteria and special program requirements have been met. If and when the application process has been successfully completed, the applicant will be invited to continue to the project development phase. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OBD for awards:

(i) approval of requested amount with requested or different terms:

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

(c) Allocation: The RAF allocation will be $ 800,000. RAF proposals that meet all criteria may be awarded funds until the amount of funds available in the program has been committed.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate income persons.

Communities are encouraged to enter into partnerships to request Micro-Loan assistance when demand is sufficient on a multi-jurisdictional basis and communities would be better served through a regionally administered loan program.

1. Threshold Criteria and Certifications: The State will distribute Micro Loan Program funds through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting for-profit businesses.

(b) Project Benefit: As a result of Micro-Loan expenditures, 51% of the jobs created or retained by each business assisted must be taken by persons from households that qualify as low and moderate income (LMI).

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1998 Micro-Loan program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be disencumbered.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is March 6, 1998.

Each application will be rated in relation to all other Micro-loan applications. A minimum of 70 points from the Problem Statement, Proposed Solution and Citizen Participation sections will be required for an application to be considered for funding. A distress score will be added to this result.

(a) Problem Statement (35 points):

Scope of Problem: (35 points) - Description of the economic base and business trend problems of the community and the impact on job opportunities. Description of the need for funds.

(b) Proposed Solution (35 points):

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

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

(c) Citizen Participation (20 points):

(i) Business Involvement: (10 points) - Description of how the business community participated in the application process.

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

(d) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment: Rate (3.5 points) - The community's most recent annual unemployment rate will be divided by 10 and the result multiplied by 3.5. Communities with an unemployment rate greater than 10% will receive the total points allowed.

(ii) Unemployment: Absolute Numbers (3.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of unemployed persons. The list will be divided into three equal segments and assigned points accordingly (high, 3.5; middle 2.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI: Percentage (1.5 points) - The community's most recent LMI percentage will be divided by 51 and the result multiplied by 1.5. Communities with an LMI population greater than 51% will receive the total points allowed.

(iv) LMI: Absolute Numbers (1.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of LMI households. The list will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The Economic Development Infrastructure (EDI) Program provides Maine communities with funds to develop or rehabilitate public infrastructure to support new and existing non-retail businesses that create or retain jobs for low and moderate income individuals.

1. Threshold Criteria and Certifications: The State will distribute Economic Development Infrastructure Program funds through an annual grant application selection process held three times annually.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons.

(b) Cost per Job: In no case will the cost per job created or retained with EDI funds exceed $35,000.

(c) Project Benefit: 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

(d) Local Match: All communities applying for EDI funds must provide a local match equivalent to 20 percent of the total grant award.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1998 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum Economic Development Infrastructure Grant Amount: $400,000.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under limited conditions;

(i) The retail business represents the provision of new products and services previously unavailable in the community;

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

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

(d) Agreement to Participate: The Agreement to Participate form must be submitted with the 1998 EDI Application.

(e) Statement of Job Retention: Each assisted business will certify job retention is the result of EDI assistance, and a completed Statement of Job Retention must accompany the Agreement to Participate.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is 8 pages. The application deadlines are: February 20, May 8, and July 10, 1998. Each application will be rated in relation to all others. The total points from the Problem Statement, Proposed Solution, Citizen Participation, Numerical Analysis and Commitment sections will be determined for each application. A distress score will be added to this result. A rank order will be established with the highest ranking application receiving first consideration and continuing until the allocation for each EDI funding round is exhausted. The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible.

(a) Problem Statement (20 points):

(i) Scope of Problem: (10 points) Problems facing a specific business(es) in relation to job creation or retention activities and overall financial viability.

(ii) Impact on Community and Region: (5 points) - Explain how these problems negatively impact local and regional employment and overall economic conditions.

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

(b) Proposed Solution (20 points):

(i) Project Description: (10 points) - Construction activities that the applicant will undertake using EDI funds to resolve the problem presented in the Problem Statement.

(ii) Effect on Assisted Business: (5 points) - Effect EDI assistance and completion of the project as a whole will have on the ability of the business(es) to remain competitive, and create/retain quality jobs for low-to-moderate income persons.

(iii) Project Timeline and Feasibility: (5 points) - Identification of tasks, timetables and responsible parties to implement the project.

(c) Numerical Analysis of Significance of Project to Community and Region (20 points): Numerical tables to demonstrate the significance of the proposed project as it relates to job creation/retention and the effect on the labor market area and local economy. Point values will be determined by comparing the information presented in the application for each below with set scoring criteria established by the OCD.

(i) Number of jobs created/retained: (5 points)

(ii) Percentage of full time jobs: (5 points)

(iii) EDI dollars per job created: (5 points)

(iv) Quality of LMI jobs created: (5 points)

(d) Citizen Participation (10 points):

(i) Public Hearing Process : (5 points) - Documentation of the public hearing held in the applicant’s municipality specific to this EDI application.

(ii) Business/Local Involvement: (5 points) - Description of the involvement that the general citizenry, municipal leaders and businesses have had in increasing citizen awareness and developing the EDI application.

(e) Commitment (25 points):

(i) Confirmation of LMI Jobs to be Created/Retained: (10 points) - Firm documentation as to the number and type of jobs to be created or retained as a result of EDI financing.

(ii) Project Funds Table and Source Documentation: (10 points) - A listing of all private and public funds firmly committed to this EDI project and binding documentation that these funds are secured.

(iii) Environmental and Permitting: (5 points) - Accomplished and future actions necessary for successful EDI project implementation.

(f) Unemployment Factor (3 points): OCD will derive a community's unemployment factor score from the following areas:

(i) Unemployment Rate: (2 points) - A score determined by taking the community's most recent annual unemployment rate, dividing it by 10%, and multiplying the result by 2. Communities with a most recent annual unemployment rate greater than 10% will receive the total points allowed.

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

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

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides funds to assist businesses to create or retain jobs for low and moderate income persons. The Business Assistance program will provide either loans, grants or a combination of each to meet the infrastructure, capital equipment and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories;

(b) 51% of the jobs created or retained as a result of BA expenditures must be taken by persons of low and moderate income;

(c) The targeted cost per job created or retained with BA funds is $10,000.

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA loan or grant to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance.

(b) Financing Plan: The application should present a complete financing plan for a project. The financing necessary to support the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will loan or grant to the business identified in the BA application. The loan or grant must be provided under the terms stated in a Business Assistance Letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Terms must be based on the business’ maximum capacity for principle and interest payments as documented in their pro formas and reviewed by DECD or its designee as appropriate to remain profitable.

(e) Maximum Business Assistance Grant Amount: $300,000

(f) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Eligible Activities: Eligible activities to be carried out with BA funds include: acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures, capital equipment and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional. The financing plan must be complete.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity as determined by the Director.

(e) BA Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the BA loan and indicates willingness to enter into security agreements.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's current and future economic development will be evaluated.

(k) Community Financial Commitment: The community must demonstrate a vested financial interest in the development project. The program’s goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

(a) Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee appointed by the Director of the Office of Business Development.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the Director of OBD for awards.

F. 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.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive IFP funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the legal applicant and consent for that designation by each participating local government.

(b) Ineligible Applicants: Entitlement communities of Portland, Bangor, Lewiston and Auburn, are not eligible to receive IFP funds. Except as described in 1(a) above, County governments are not eligible applicants.

(c) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons,

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households, or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households.

(d) Complete the required IFP application materials.

(e) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project's rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project's completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Irrevocable Letter of Credit: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit.

3. Selection Process: IFP grants will be made on a first come basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State's letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP grant/loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

G. REGIONAL SUPER PARK PROGRAM

The Regional Super Park program provides Maine communities with funds to assist in the provision of necessary infrastructure to develop one regional business park (Super Park) within the State. Recognizing the need to have an inventory of “Super Parks” in Maine, the State is challenging Maine communities to develop the next generation of business industrial parks. These parks to should be developed through a creative regional process involving tax-sharing and other cooperative agreements.

1. Threshold Criteria: The State may distribute Regional Super Park funds through an application selection process and award one grant to the group of communities that develops the proposal with the best chance of success.

(a) Eligible Applicants: All units of general local government in Maine, except entitlement communities, are eligible to apply for the Super Park program. Entitlement communities may participate in a regional super park development in a non-entitlement community.

(b) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public improvements such as water and sewer facilities, utility infrastructure, flood and drainage improvements, 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.

(c) Cost per Job: The targeted cost per job created ratio is $10,000.

(d) Project Benefit: 51% of the jobs created or retained as a result of Super Park project expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements

(a) Maximum Grant Award: $1,000,000.

(b) Award of Grant : DECD reserves the right to refuse any and all applications and to make no award under this program.

(c) Leverage Ratio: Applicants must demonstrate committed match funds with at least a 5-to-1 ratio of other dollars to CDBG dollars. Applicants may utilize funds from any source (other than CDBG) to meet match requirement.

3. Selection Process:

Applications must include a development plan covering the following features:

minimum 200 acre park size (can include existing industrial park acreage)

advanced telecommunications infrastructure

advanced electric distribution facilities

a campus-like atmosphere including efficient and attractive circulation systems for motorists and pedestrians, large landscaped lots and attractively landscaped common areas, underground utilities and architecturally controlled buildings and sites

centralized water and sewage treatment facilities

access to major transport systems

access to essential community services

The successful application will demonstrate cooperation among applicant communities, identify demand for a super park facility, include a financial plan that has a high probability of success and outline a facility management capacity.

Phase I Application: No maximum length. The application deadline is August 1, 1998.

Each application will be rated in relation to all others. This is no minimum score for funding but the Office of Community Development reserves the right not to fund an application if it is deemed to be in the best interests of the State and the Community Development Block Grant Program.

(a) Management Plan: (15 points) - Description of the management and organizational structure to be used in the development and operation of the park.

(b) Development Plan: (25 points) - Preliminary site plan and description of facilities and amenities.

(c) Market Plan: (25 points).- Feasibility studies and market analysis demonstrating 1) the need for the park (suitable, available occupants). 2) availability of workforce, and 3) build-out rate scenarios.

(d) Financial Plan: (25 points) - Plan must include 1) demonstrated commitment of funds for leverage ratio, 2) community tax-sharing and TIF agreements, and 3) business plan for the park.

(e) Community Participation (10 points) - Projects including more than two communities will receive a higher point total.

SECTION 4. PLANNING METHODS OF DISTRIBUTION

A. PHASE II PLANNING GRANTS

The Phase II Planning Grant Program enables communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold Criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, Micro-Loan, Business Assistance and Downtown Revitalization Programs are eligible to apply for and receive Phase II Planning Grants.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Phase II requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule for completion.

(d) Federal and State Certifications: Communities applying for Phase II Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff.

4. Maximum Grant Award : $2,500

B. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: The State will distribute Community Planning Program funds through an annual grant application selection process.

Eligible Activities: CPG funds may be used for planning only activities that include studies, analysis, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible. All applications containing proposed ineligible or non-planning activities will not be considered eligible.

Project Benefit: The proposed activities must meet one of the CDBG Program national objectives of either providing benefit to low and moderate income persons, or removing slum or blighting influences within that community.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1998 Community Planning program, communities that received CDBG grants in or prior to 1994 must have closed their grants by December 1, 1997. Communities that received CDBG grants in 1995 must have conditionally closed their grants by December 1, 1997. Communities that received CDBG grants in 1996 must have obligated 50% of their benefit activity funds by December 1, 1997.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed.

(b) Maximum CPG Grant Amount: $10,000.

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Priority for funding will be given to the following categories in the numbers indicated: Housing (3), Public Facilities Infrastructure (6), Economic Development (3) and Tourism Opportunities (3).

Phase I Application: The maximum length of an application is six pages. The application deadline is February 27, 1998.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Development of Strategy, Citizen Participation and Project Leverage is required for consideration to be invited into Phase II.

(a) Problem Statement (30 points) - A description of the problems, how they were identified, and their impact on the community.

(b) Development of Strategy (40 points) - A description of the tasks associated with formulating a solution for your community's problems. Description of how the project will address a CDBG national objective.

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

(d) Citizen Participation (10 points) - Description of how citizens, community groups and others were involved in the identification of the problem and the development of an application.

C. TECHNICAL ASSISTANCE GRANTS

The purpose of the Technical Assistance grant program is to provide funds to selected communities that will contract with Regional Councils to provide technical assistance services to themselves and the communities in their region.

Technical assistance services provided will include information about the CDBG program, its applicability for projects within a community and assistance to interested communities in preparing grant applications.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, 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 1998 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 1998 CDBG program, or added to the available monies for the 1998 or 1999 competition.

Unexpended funds remaining in the grantee's CDBG account at grant closeout, funds remaining in a grantee's award but not drawn down upon grant closeout and funds returned to DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 1998 CDBG program or added to the available monies for the 1998 or 1999 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 1998 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 1998 CDBG program or added to the available monies for the 1998 or 1999 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 1998 competitions but did not receive funding and the possibility of holding additional competitions during the 1998 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 1998 Program Statement.

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.

B. PROGRAM INCOME

As used in this Proposed 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. 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.

(c) Program Income Received by the State: Up to 2% of program income returned to the State may be used for administrative costs. The balance of program income (98%) will be used to fund new or previously committed CDBG obligations.

(d) Program Income Plan: Each grantee must submit a Program Income Plan to OCD. The 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;

(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 10% in any program, will be used for administration of the program income.

(e) Program Income Plan Schedule:

(i) Housing Assistance, Public Facilities/Infrastructure, Public Service, Business Assistance, Downtown Revitalization, Urgent Need, Micro-Loan, Economic Development Infrastructure: submit 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:

(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 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.

(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: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees who do not close MLP loans to three or more different businesses or grantees who do not demonstrate demand for additional eligible loans will return MLP repayments to DECD.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1998 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be entertained. In the case of an appeal, funds will be reserved for the project from available or subsequent CDBG funds pending a decision.

SECTION 7. AMENDMENT TO THE PROGRAM STATEMENT

The State may amend the 1998 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The amendment process will be guided by the State of Maine's Administrative Procedures Act.

EFFECTIVE DATE: October 20, 1997

NON-SUBSTANTIVE CHANGES:

December 12, 1997 - minor punctuation and formatting.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT UPON REQUEST

BY CONTACTING:

AARON SHAPIRO, PROGRAM MANAGER

OFFICE OF COMMUNITY DEVELOPMENT

33 STONE STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 287-8476

TTY (207) 287-2656

Chapter 18 Community Development Block Grant Program: 1999 Final Statement

Code Me. R. 19-498 Ch. 18 Community Development Block (cdbg) Grant Program {#sec-19-498-ch.-18 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 18}

1999 PROGRAM STATEMENT

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 3

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. NOTICE – GRANT ADMINSTRATION REQUIREMENT 4

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 11

A. HOUSING ASSISTANCE GRANTS 11

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS 14

C. PUBLIC SERVICE GRANTS 18

D. DOWNTOWN REVITALIZATION PROGRAM 21

E. URGENT NEED GRANTS 23

F. DOWNTOWN AND NEIGHBORHOOD REVITALIZATION PROGRAM 25

SECTION 3. ECONOMIC DEVELOPMENT 28

A. DEVELOPMENT FUND 28

B. REGIONAL ASSISTANCE FUND 31

C. MICRO-LOAN PROGRAM 34

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 37

E. BUSINESS ASSISTANCE PROGRAM 41

F. Regional Super Park Program Notification 44

SECTION 4. PLANNING 45

A. PHASE II PLANNING GRANTS 45

B. COMMUNITY PLANNING GRANTS 46

C. TECHNICAL ASSISTANCE PROGRAMS 48

SECTION 5. REDISTRIBUTION OF GRANT FUNDS 49

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 49

B. PROGRAM INCOME 50

SECTION 6. APPEALS 52

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 52

19-498 CMR Department of Economic and Community Development

Chapter 18 Community Development Block Grant Program

1999 Program Statement

SUMMARY

This Program Statement describes the method by which 1999 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A. 13073. The proposed 1999 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs and meetings with advisory groups. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings to solicit input prior to adopting the final Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The Maine CDBG Program serves as a catalyst for local governments to implement programs which:

1. benefit low and moderate income persons;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic

conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community development objectives. The 1999 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories - Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants

b. Public Facilities/Infrastructure Grants

c. Public Service Grants

d. Downtown Revitalization Program

e. Urgent Need Grants

f. Downtown and Neighborhood Revitalization Program

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Micro-Loan Program

d. Economic Development Infrastructure Grants

e. Business Assistance Program

3. Planning

a. Phase II Planning Grants

b. Community Planning Grants

C. STATE ADMINISTRATION

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Beginning with grantees receiving 2000 CDBG grant awards, communities receiving CDBG funds must use grant administrators certified through the CDBG Certification Course for Grant Administrators or will be certified within 6 months of the invitation to proceed to Phase II.

F. PROGRAM TIMEFRAME

Application deadlines are listed below:

Public Facilities/Infrastructure December 4, 1998

Downtown Revitalization January 15, 1999

Housing Assistance January 29, 1999

Economic Development Infrastructure January 8, 1999

April 9, 1999

June 11, 1999

September 10, 1999

Micro-Loan March 12, 1999

Community Planning March 12, 1999

Public Service April 5, 1999

Downtown and Neighborhood Revitalization May 14, 1999

Business Assistance Program Open

Urgent Need 1st come basis

beginning March 1, 1999

Development Fund Monthly

Regional Assistance Fund Open

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

1999 Projected Program Budget

Projected FY 1999 CDBG Budget

$16,153,000

Administration

$397,615

Technical Assistance Administration

$161,530

Regional Council Technical Assistance*

$68,000

1. Housing Assistance Grants

2,400,000

2. Public Facilities/Infrastructure Grants

Category 1

3,600,000

Category 2

1,500,000

Category 3

100,000

3. Public Service Grants

250,000

4. Urgent Need Grants

250,855

5. Downtown Revitalization Grants

800,000

6. Downtown and Neighborhood Revitalization**

400,000

7. Development Fund

650,000

8. Regional Assistance Fund

600,000

9. Micro Loan Program

100,000

10. Economic Development Infrastructure

3,200,000

11. Business Assistance Program

1,600,000

12. Phase II Planning Grants

75,000

13. Community Planning Grants

150,000

*Regional Council Technical Assistance will actually receive $234,000, the difference between this number and the above budget number will be made up with past year funds.

**This figure includes $150,000 of 1998 CDBG Funds and $250,000 of 1999 CDBG Funds.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

1. The following state and federal regulations APPLY TO ALL PROGRAMS:

1. Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

 minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Act;

 take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

 not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

 establish a community development plan;

 meet all required State and Federal public participation requirements;

 comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

 with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

 review the project proposed in the application to ensure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements APPLY TO ALL PROGRAMS:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), the Economic Development Infrastructure (EDI), Business Assistance (BA) and Regional Assistance Fund (RAF) programs, units of local government and unorganized territories may not apply for, or benefit from, more than one grant per program category in any grant year.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund Program, Economic Development Infrastructure Program, Business Assistance and the Public Facilities Infrastructure Program category #1, units of local government and unorganized territories that benefited from a 1998 award may not apply again in that specific program until the 2000 program. Public Facilities Infrastructure Category #1 grantees may not receive grants for more than two consecutive grant years.

(c) Computation of Distress Scores for Multi-Jurisdictional Applications: Distress scores for multi-jurisdictional applications will be computed on a weighted average basis. (population 1)(distress 1)+(population 2)(distress 2)+... /population 1 + population 2 +... = weighted average distress score.

(d) Phase II Planning Grants: Phase II participants may be eligible for planning grant funds on an as needed basis to assist with payment of project development costs. Extent of assistance shall be determined by OCD staff to a maximum of $2,500, most grants will not exceed $2,000.

(e) Grant Termination: OCD will terminate a community's grant if progress on the project is not apparent within 6 months from the date of contract signing. Waivers for cause may be granted by the Program Manager.

(f) Project Eligibility: Applications will be reviewed to determine eligibility of activities the applicant proposes to undertake with CDBG funds. Those activities must be included in the list of eligible activities under the "special threshold criteria and certifications" section for the respective program being applied for and be eligible under Section 105 (a) of the Act.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104 (b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding. The applicant will be notified in writing of the determination made by OCD.

(h) Preference for Certified Communities: In accordance with Title 30-A M.R.S.A. subsection 4349(2)(B) communities with certified growth management programs (as determined by the State Planning Office), as of 30 days prior to application deadline, will receive preference in the award of CDBG grants in the following situation:

In the event of a tie between communities receiving the lowest funded application score in any particular program, the grant will be awarded to the certified community, except where the tie is between a certified community and a community that never received an offer of financial assistance to develop a growth management program.

3. The following Threshold Criteria APPLY ONLY TO THE FOLLOWING PROGRAMS:

Housing Assistance (HA)

Public Service Grant (PSG)

Economic Development Infrastructure (EDI)

Micro-Loan (ML)

Public Facilities Infrastructure (PFIG)

Business Assistance (BA)

Community Planning Grant (CPG)

Downtown Revitalization

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application per program, but only on behalf of different unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. These multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) Phase II Project Development:

(i) Invitation to Proceed: Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Scores will be determined by: (all scores - lowest score) / (all scorers - 1) plus distress scores. Starting at the top of the scoring list, applicants will be invited to proceed to Phase II. An invitation into Phase II is not a guarantee of funding. However successful communities will receive an amount sufficient to complete their project, but not to exceed the maximum grant award for that program. Phase II project development includes:

(aa) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility and/or market studies.

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

(dd) Project Eligibility: Verification that proposed activities are eligible under the Act.

(ee) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

(ff) Environmental Review: Review of project for compliance with state and federal environmental regulations.

(c) Approval Process: The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development to best meet the community's identified needs. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and receive CDBG funds. Communities not completing their Phase II application within six months of receiving a Phase II invitation will forfeit their grant award. The CDBG Program Manager may waive this requirement in light of extenuating circumstances.

Project implementation shall begin upon execution of a contract. All activities must be cleared through an environmental review process prior to obligating CDBG funds. OCD staff will remain involved with the community throughout project implementation.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate income persons.

1. Special Threshold Criteria and Certifications: Housing Assistance Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities are those directly related to assisting or creating residential housing units including Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers.

(b) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent of 10 percent of the total grant award.

2. Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1999 Housing Assistance program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application due date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application due date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum Housing Assistance Grant Amount: $300,000

(c) Maximum Housing Rehabilitation Costs: The amount of grants or loans available to participants will be no more than $15,000 per unit rehabilitated. Additional funds up to a maximum of $7,000 may be available in the following cases - replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or accessibility modifications. In extreme circumstances, the maximum housing rehabilitation cost may be waived by OCD.

(d) Maximum Administrative Costs: Successful communities may expend a maximum total of $45,000 of CDBG funds for general and housing rehabilitation administration costs. In limited cases this may be waived by OCD.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum application length is ten pages. The application deadline is January 29, 1999.

Each application will be rated in relation to all other HA applications. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A Distress score will be added to this result to determine the application score.

(a) Problem Statement (40 points):

(i) Scope of Problem: (20 points) - Identification and description of the magnitude and nature of the housing conditions to be addressed (i.e. substandard housing, lack of affordable housing, etc.).

(ii) LMI and Community Impact: (10 points) - Identification and description of the impact of the problem on low-to-moderate income residents and the larger community or neighborhood. Include a description of the health, safety and welfare issues of the residents.

(iii) Energy Efficiency Considerations: (10 points) - Identification and description of the conditions that prevent LMI persons from maintaining affordable, comfortable and efficient energy standards.

(b) Proposed Solution (30 points):

(i) Effectiveness: (20 points) - Description of how funds will be used to solve the identified problems.

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

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d) Commitment (10 points): Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing:(1.5 points) - A score based on the percent of substandard housing (.75) and a score based on the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs (.75). The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (3.5 points total) - Percentage Factor ; a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities (1.5 points), plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates divided into three segments and assigned points accordingly (high 3.5, middle 2.0 and low .5) for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). Unequal divisions will be rounded up.

(iv) Poverty Level: (1.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). The ranking will be divided into three segments and assigned points accordingly (high 1.5, middle 1.0, low .5). Unequal divisions will be rounded up.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The Public Facilities/Infrastructure Grant (PFIG) Program provides funding for local infrastructure and public facility activities which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities/Infrastructure Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities in the PFIG program are construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, and relocation assistance associated with public projects and infrastructure for new housing construction.

(b) Local Match: All communities applying for PFIG funds must certify that they will provide a local match equivalent to 20 percent of the total grant award.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities from a single category but cannot apply for activities from more than one category.

(a) Category 1:Water, sewer, water or sewer hookup (as a rehabilitation activity in conjunction with the public facilities activities), storm drainage, utility infrastructure and infrastructure for new housing construction.

(b) Category 2: Streets/roads, sidewalks, public wharfs/piers, fire stations, community centers, child care/senior citizen centers, health care centers, sheltered workshops, homeless shelters, libraries, and removal of architectural barriers.

(c) Category 3: Parking, curbs, gutters, public parks, recreation facilities, public works garages, salt/sand storage facilities, fire fighting and rescue equipment, and transfer stations.

3. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1999 Public Facilities Infrastructure program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds by prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum Public Facilities/Infrastructure Grant Amounts

(i) Category 1: $400,000

(ii) Category 2: $250,000

(iii) Category 3: $ 50,000

(c) Funding Restrictions: PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction, no housing activities may be assisted with PFIG funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

A maximum of two fire station projects will be funded. Sand/salt shed projects will only be funded after all other eligible category #3 projects.

(d) Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or preventing or eliminating slum and blighting conditions. Income surveys must use HUD-approved methodology and be accepted by OCD.

(e) Bonus Points for Service and Specialized Center Communities: PFIG Category #1 applicants will receive two bonus points if they have been identified by the State Planning Office as a service center or specialized center community. A list of these communities is attached.

4. Selection Process: The selection process will consist of two phases: an application phase (Phase I) and a project development phase (Phase II).

Phase I Application: The maximum application length is ten pages. The application deadline is December 4, 1998.

Each application will be rated in relation to all others in its respective category. A minimum of 70 points from the Problem Statement, Proposed Solution, Commitment and Citizen Participation sections will be required to be considered for funding. A distress score and bonus points will be added to this result.

(a) Problem Statement (35 points):

(i) Scope of Problem: (20 points) - Identification and description of the nature and magnitude of the problems to be addressed with PFIG funds.

(ii) Health, Safety, Welfare: (10 points) - Impact of the problem on public health, safety, and welfare.

(iii) Priority: (5 points) - Significance of the problems to be addressed with PFIG funds in relation to other public facility problems within the community.

(b) Proposed Solution (25 points):

(i) Project Description: (10 points) - Identification and description of the activities proposed to resolve the problems presented in the Problem Statement.

(ii) Project Feasibility: (15 points) - Identification of tasks, timetables, and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials; and how the involvement contributed to this application.

(d) Commitment (20 points): Identification and description of how community, organizations and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

(e) Bonus Points (2 points): For category #1 projects, “service and specialized center communities” identified by the State Planning Office will receive two bonus points.

(f) Distress (10 points): OCD will derive a community's distress score from the following four areas:

(i) Housing:(1.5 points) - A score based on the percent of substandard housing (.75) and a score based on the percent of households with income less than 50% of the county median per year and spending greater than 25% of their income on housing costs (.75). The percentages will be derived from the most recent data available.

(ii) Economic Conditions: (3.5 points total) - Percentage Factor ; a composite score derived from two factors - a ranking based on the unemployment rates of the applicant communities (1.5 points), plus .15 points for each percentage point the community's municipal unemployment rate is above the State's average unemployment rate. Absolute Factor (1.0 point); a score derived from ranking absolute numbers of unemployed persons in each community from highest to lowest. The ranking will be divided into three segments and assigned points accordingly (high 1; middle .66; low 0.33). Unequal divisions will be rounded up.

(iii) Local Fiscal Capacity: (3.5 points) - A score determined by ranking the effective (State equalized) tax rates divided into three segments and assigned points accordingly (high 3.5, middle 2.0 and low .5) for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). Unequal divisions will be rounded up.

(iv) Poverty Level: (1.5 points) - A score derived by using the % of persons in a community below 150% of the poverty level as defined by the most recent data available for each applicant within population categories (999 and less; 1,000 to 2499; 2,500 to 4,999; 5,000 and above). The ranking will be divided into three segments and assigned points accordingly (high 1.5, middle 1.0, low .5). Unequal divisions will be rounded up.

C. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing provided to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements:

 Abused Children

 Battered Spouses

 Elderly Persons

 Persons with Disabilities

 Homeless Persons

 Illiterate Persons

 Migrant Farm Workers

(ii) participants in a program designed to limit the PSG funded benefit exclusively to eligible Low and Moderate Income persons.

(b) All communities applying for PSG funds must certify that:

(i) the public service represents: a) a new service to the community; or b) a quantifiable increase in the level of an existing service;

ii) a local match equivalent to 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) Past Performance: In order to be eligible to apply for the 1999 Public Service program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum Public Service Grant Amount: $50,000

(c) Funding Restrictions: PSG funding is restricted to non-construction activities.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is eight pages. The application deadline is April 5, 1999.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Proposed Solution, Citizen Participation and Commitment sections will be required for an application to be considered for funding. A distress score will be added to this result.

(a) Problem Statement (30 points):

Scope of Problem: (30 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds.

(b) Proposed Solution (30 points):

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems.

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

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

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials, and how this involvement contributed to this application.

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

(e) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment Rate: (3.5 points) - A score determined by taking the community's yearly average unemployment rate and dividing it by the standard of 10% (this figure represents 10% unemployment). This figure will be multiplied by the 3.5 points assigned to this category. Communities with a yearly average unemployment rate greater than 10% will automatically receive the total points allowed.

(ii) Unemployment Absolute Numbers: (3.5 points) - Communities will be ranked from highest to lowest based upon the numbers of unemployed persons. The ranking will be divided into three equal segments and assigned points accordingly (high, 3.5; middle 2.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI Percentage: (1.5 points) - A score derived by dividing the community's most recent low and moderate income (LMI) percentage by 51 percent. This figure will be multiplied by 1.5 to determine the score for LMI percentage. Communities with an LMI of 51 percent or more will receive the total points allowed.

(iv) LMI Absolute Numbers: (1.5 points) - Communities will be ranked from highest to lowest based upon the numbers of low and moderate income households. This ranking will be divided into three equal segments and assigned points accordingly (high 1.5; middle 1.0; low 0.5). Unequal divisions will be rounded up.

D. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to enable 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.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities/Infrastructure, Public Service, Housing Assistance, or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for the 1999 Downtown Revitalization program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or 3) the job creation goals of a previous grant have not been fulfilled.

(b) Planning Requirements: All applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. The proposed DR activities must be cited in the plan as a recommended action to enhance the downtown.

(c) Maximum Award: $400,000

(d) Bonus Points for Service and Specialized Center Communities Applicants will receive five bonus points if they have been identified by the State Planning Office as a service or specialized center community.

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

Phase I Application: The maximum application length is ten pages. The application deadline is January 15, 1999.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem, Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (30 points)

(i) Scope of Problems (20 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

(ii) Impact on Economic Vitality (10 points) - Describe how the problems negatively impact the economy of the community and persons of low-to-moderate income.

(b) Solution (40 points)

(i) Project Description (15 points) - Describe how funds will be used.

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

(iii) Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d) Commitment (20 points) Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a project

(e) National Objective State how the project, if funded and implemented, will meet the CDBG national objectives of benefiting low and moderate income persons or eliminating slum and blighting conditions.

E. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address serious and immediate threats to health and welfare.

l. Special Threshold Criteria and Certifications:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. County governments may apply on behalf of unorganized territories. Counties may make more than one application on behalf of distinct unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint emergency situations. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for the designation by each participating local government.

(b) 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 the submission of the application;

(iii) is a project the applicant cannot finance on its own. "Cannot finance on its own" means, in this context, that the town's tax burden, regulatory structure, utility user fees, bonding capacity, previous or existing budgetary commitments, precludes it from assuming this project's additional financial expenditure; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a) Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UNG Amount: $100,000

3. Selection Process: The selection process will consist of two phases: an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: An UNG application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that poses an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first come basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. While an invitation into Phase II is not a guarantee of funding, applicants will receive the amount necessary to complete their project, up to the maximum UNG Program award until the funding available is exhausted. Phase II applications must comply with the following:

(aa) Project Planning: Details of the project including engineering, cost analysis, feasibility and structural analysis as necessary.

(bb) Management Plan: Details of the structure and methods established by the community for program management.

(cc) Regulations: Phase II applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 1, 1999. Applications will be accepted on a first come basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the CDBG Program Manager's decision will initiate the Phase II process necessary for contract award.

DOWNTOWN AND NEIGHBORHOOD REVITALIZATION PROGRAM

JOINT PILOT PROJECT-CDBG and MAINE STATE HOUSING AUTHORITY

The Downtown and Neighborhood Revitalization Program will provide funds to enable communities to implement comprehensive, integrated and innovative housing and development solutions to the problems facing their downtown and neighborhood districts. These community revitalization projects must be part of a strategy that targets these areas and will lead to future public and private investment.

The successful application must combine housing and community development activities funded with both MSHA and CDBG funds.

This program is a pilot project targeting service center communities as identified by the State Planning Office. Projects will utilize the combined resources of:

 CDBG

 MSHA New Lease

 Fix-ME

 New Neighbors, and;

 First-time Home Buyer Program

Successful communities will present innovative and integrated project proposals.

1. Special Threshold Criteria and Certifications: Program funds will be distributed through a grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities/Infrastructure, Public Service, Housing Assistance, or Business Assistance programs as relevant to the project in addition to MSHA programs.

(b) Local Match - All communities applying for funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for this program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum Award: $400,000

(c) Prohibition on Applicant Communities: Only service and specialized center communities may apply for these funds.

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

Phase I Application: The maximum length of the Phase I application is ten pages. The application deadline is May 14, 1999.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem, Solution, Commitment and Citizen Participation sections will be required for an application to be considered for funding.

(a) Problem Statement (30 points)

(i) Scope of Problems (20 points) - Identification and description of the nature and magnitude of the identified problems to be addressed.

(ii) Impact on Neighborhood Vitality (10 points) - Describe how the problems negatively impact the neighborhood targeted including the economy of the community and persons of low-to-moderate income.

(b) Solution (40 points)

(i) Project Description (15 points) - Description of how funds will be used to solve the identified problems.

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

(iii) Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution. Describe linkages to other agencies and resources that will be used to address the problems in a comprehensive and non-duplicative fashion, i.e. Community Action Programs and/or other social service providers.

(c) Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

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

(e) Statement of National Objective Describe how the project, if funded and implemented, will meet the CDBG national objectives of benefiting low and moderate income persons or eliminating slum and blighting conditions.

SECTION 3. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides funding to local governments to assist businesses to create jobs for low and moderate income persons.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant must be taken by persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a for-profit business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation.

(b) Financing Plan: The DF application should present a financing plan for a project in which the DF loan comprises the lesser of $200,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be from non-CDBG funds and must be documented by binding commitment letters submitted with the application..

(c) Maximum Grant Award: $200,000

(d) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Conditions and the contract between DECD and the local government.

(e) 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 locational cost differentiations and the benefit derived from the assistance.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation and working capital.

(c) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(d) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional. The financing plan must be complete in that there are no unidentified uses of funds necessary to complete the project.

(e) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(f) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(g) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to execute security agreements.

(h) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(i) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(1) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(2) Community and Economic Development: The primary and secondary impacts of the DF project on the community's current and future economic development will be evaluated.

4. Approval Process

(a) Application: Applications shall be submitted by the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. And applications are reviewed by committee. The DF Committee will make recommendations to the Director of the Office of Business Development . The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, an attorney, a representative of private financing, a business person, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee will review staff reports and make recommendations to the Director for awards. The Committee will recommend one of four options:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for resubmission; or,

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to $300,000 per quarter, plus any unobligated portion of allocations of previous quarters. This limit can be waived by the Director of OBD. The Director also reserves the right to reject any or all applications in any quarter.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments or regional organizations which can use the RAF assistance as leverage to obtain funds under the Economic Development Administration (EDA) Economic Adjustment Assistance Program (Title IX) and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State and therefore RAF cannot be used as match with the State's CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive a RAF grant. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) be an eligible planning activity or a project with 51% of the jobs created or retained as a result of RAF expenditures proposed by the applicant are taken by persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: Provided an initial RAF application is successful, a grant contract will be executed between DECD and the local government to reserve RAF funds for the applicant, and a RAF Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds from the reserve. The local government must use the designated RAF funds as a match to leverage additional funds.

(b) Limit on Amount of RAF assistance: Generally, economic development district will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the Director of Office of Business Development (OBD). The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must also demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's current and future economic development will be evaluated.

(f) Local Commitment: The commitment of local funds to the project.

Additional weight will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency and is working toward a full application, it may submit a RAF pre-application to DECD. DECD staff will review the RAF pre-applications on a first come basis to determine if the threshold criteria and special program requirements have been met. If and when the application process has been successfully completed, the applicant will be invited to continue to the project development phase. An analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OBD for awards:

(i) approval of requested amount with requested or different terms

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate income persons.

1. Threshold Criteria and Certifications: Micro Loan Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting for-profit businesses

(b) Project Benefit: As a result of Micro-Loan expenditures, 51% of the jobs created or retained by each business assisted must be taken by persons from households that qualify as low and moderate income (LMI).

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1999 Micro-Loan program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application date. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be disencumbered.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is March 12, 1999.

Each application will be rated in relation to all other Micro-loan applications. A minimum of 70 points from the Problem Statement, Proposed Solution and Citizen Participation sections will be required for an application to be considered for funding. A distress score will be added to this result.

(a) Problem Statement (35 points):

Scope of Problem: (35 points) - Description of the economic base and business trend problems of the community and the impact on job opportunities. Description of the need for funds including data on area capital availability.

(b) Proposed Solution (35 points):

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

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

(c) Citizen Participation (20 points):

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

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

(d) Distress (10 points): OCD will derive a community's distress score from the following two areas:

(i) Unemployment: Rate (3.5 points) - The community's most recent annual unemployment rate will be divided by 10 and the result multiplied by 3.5. Communities with an unemployment rate greater than 10% will receive the total points allowed.

(ii) Unemployment: Absolute Numbers (3.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of unemployed persons. The list will be divided into three equal segments and assigned points accordingly (high, 3.5; middle 2.0; and low 0.5). Unequal divisions will be rounded up.

(iii) LMI: Percentage (1.5 points) - The community's most recent LMI percentage will be divided by 51 and the result multiplied by 1.5. Communities with an LMI population greater than 51% will receive the total points allowed.

(iv) LMI: Absolute Numbers (1.5 points) - Applicant communities will be listed from highest to lowest in terms of numbers of LMI households. The list will be divided into three equal segments and assigned points accordingly (high, 1.5; middle 1.0; and low 0.5). Unequal divisions will be rounded up.

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

The Economic Development Infrastructure (EDI) Program provides Maine communities with funds to develop or rehabilitate public infrastructure to support new and existing non-retail businesses that create or retain jobs for low and moderate income individuals.

1. Threshold Criteria and Certifications: Economic Development Infrastructure Program funds will be distributed 4 times annually.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons.

(b) Cost per Job: In no case will the cost per job created or retained with EDI funds exceed $35,000.

(c) Project Benefit: At a minimum,51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

(d) Local Match: All communities applying for EDI funds must provide a local match equivalent to 20 percent of the total grant award.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1999 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum Economic Development Infrastructure Grant Amount: $400,000.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under limited conditions;

(i) The retail business represents the provision of new products and services previously unavailable in the community;

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

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

(d) Agreement to Participate: The Agreement to Participate form must be submitted with application.

(e) Statement of Job Retention: Acompleted Statement of Job Retention must accompany the Agreement to Participate where applicable.

(f) Chance of Success: Each business will be evaluated for the following - job creation and retention, existing or new market potential, cash flow, indebtedness, and management capacity.

(g) Financial Plan: Businesses must submit a financial plan for review by an independent qualified financial professional. All financial data will be kept confidential.

(h) Repayment of Grant Funds: Recipients under this program must repay CDBG funds if job creation/retention goals are not met.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum application length is 8 pages. The application deadlines are January 8, 1999, April 9, 1999, June 11, 1999 and September 10, 1999

Each application will be rated in relation to all others. The total points from the Problem Statement, Proposed Solution, Citizen Participation, Numerical Analysis and Commitment sections will be determined for each application. A distress score will be added to this result. A rank order will be established with the highest ranking application receiving first consideration and continuing until the allocation for each EDI funding round is exhausted.

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible.

(a) Problem Statement (20 points):

(i) Scope of Problem: (10 points) Problems facing a specific business(es) in relation to job creation or retention activities and overall financial outlook.

(ii) Impact on Community and Region: (5 points) Explain how these problems negatively impact local and regional employment and overall economic conditions.

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

(b) Proposed Solution (20 points):

(i) Project Description: (10 points) Construction activities that the applicant will undertake using EDI funds to resolve the problem presented in the Problem Statement.

(ii) Effect on Assisted Business: (5 points) Effect EDI assistance and completion of the project as a whole will have on the ability of the business(es) to remain competitive, and create/retain quality jobs for low-to-moderate income persons.

(iii) Project Timeline and Feasibility: (5 points) Identification of tasks, timetables and responsible parties to implement the project.

(c) Numerical Analysis of Significance of Project to Community and Region (20 points): Numerical tables to demonstrate the significance of the proposed project as it relates to job creation/retention and the effect on the labor market area and local economy. Point values will be determined by comparing the information presented in the application for each below with set scoring criteria established by the OCD.

(i) Number of jobs created/retained: (5 points)

(ii) Percentage of full time jobs: (5 points)

(iii) EDI dollars per job created: (5 points)

(iv) Quality of LMI jobs created: (5 points)

(d) Citizen Participation (10 points):

(i) Public Hearing Process : (5 points) Documentation of the public hearing held in the applicant’s municipality specific to this EDI application.

(ii) Business/Local Involvement: (5 points) Description of the involvement that the general citizenry, municipal leaders and businesses have had in increasing citizen awareness and developing the EDI application.

(e) Commitment (25 points):

(i) Confirmation of LMI Jobs to be Created/Retained: (10 points) Firm documentation as to the number and type of jobs to be created or retained as a result of EDI financing.

(ii) Project Funds Table and Source Documentation: (10 points) A listing of all private and public funds firmly committed to this EDI project and binding documentation that these funds are secured.

(iii) Environmental and Permitting: (5 points) Accomplished and future actions necessary for successful EDI project implementation.

(f) Unemployment Factor (3 points): OCD will derive a community's unemployment factor score from the following areas:

(i)Unemployment Rate: (2 points) A score determined by taking the community's most recent annual unemployment rate, dividing it by 10%, and multiplying the result by 2. Communities with a most recent annual unemployment rate greater than 10% will receive the total points allowed.

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

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

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides funds to assist businesses to create or retain jobs for low and moderate income persons. The Business Assistance program will provide either loans, grants or a combination of each to meet the infrastructure, capital equipment and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories;

(b) At a minimum, 51% of the jobs created or retained as a result of BA expenditures must be taken by persons of low and moderate income;

(c) The targeted cost per job created or retained with BA funds is $10,000.

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA loan or grant to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance.

(b) Financing Plan: The application should present a complete financing plan for a project. The financing necessary to support the total project cost must be documented by binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will loan or grant to the business identified in the BA application. The loan or grant must be provided under the terms stated in a Business Assistance Letter of Conditions and the contract between DECD and the local government.

(d) Repayment Terms: Terms must be based on the business’ maximum capacity for principle and interest payments as documented in their pro formas and reviewed by DECD or its designee as appropriate to remain profitable.

(e) Maximum Business Assistance Grant Amount: $400,000

(f) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Eligible Activities: Eligible activities to be carried out with BA funds include acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures, capital equipment and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional. The financing plan must be complete.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity as determined by the Director.

(e) BA Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the BA loan and indicates willingness to enter into security agreements.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's current and future economic development will be evaluated.

(k) Community Financial Commitment: The community must demonstrate a vested financial interest in the development project. The program’s goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

(a) Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee appointed by the Director of the Office of Business Development.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the Director of OBD for awards.

F. Regional Super Park Program Notification

In 1998, the Office of Community Development awarded a grant to one Super Park Project. A similar program was included in the proposed 1999 Program Statement but was removed based on considerable public comment. OCD anticipates including a Regional Super Park competition in its 2000 Program Statement.

SECTION 4. PLANNING

A. PHASE II PLANNING GRANTS

The Phase II Planning Grant Program enables communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold Criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Economic Development Infrastructure, Micro-Loan, Business Assistance and Downtown Revitalization Programs are eligible to apply for and receive Phase II Planning Grants.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Phase II requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule for completion.

(d) Federal and State Certifications: Communities applying for Phase II Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on a competitive as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff with most communities receiving no more than $2,000.

4. Maximum Grant Award : $2,500

B. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: Community Planning Program funds will be distributed through an annual grant application selection process.

Eligible Activities: CPG funds may be used for planning only activities that include studies, analysis, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific activities are not eligible. All applications containing ineligible or non-planning activities will not be considered.

Project Benefit: The proposed activities must meet one of the CDBG Program's national objectives - providing benefit to low and moderate income persons, or preventing or removing slum or blighting influences.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 1999 Community Planning program, communities that received CDBG grants in or prior to 1995 must have closed their grants prior to application. Communities that received CDBG grants in 1996 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1997 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature or 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed or 3) the job creation goals of a previous grant have not been fulfilled.

(b) Maximum CPG Grant Amount: $10,000.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Priority for funding will be given to the following categories in the numbers indicated: Housing(3), Public Facilities Infrastructure(6), Economic Development(3) and Tourism Opportunities(3).

Phase I Application: The maximum application length is six pages. The application deadline is March 12, 1999.

Each application will be rated in relation to all others. A minimum of 70 points from the Problem Statement, Development of Strategy, Citizen Participation and Project Leverage is required for consideration to be invited into Phase II.

(a) Problem Statement (30 points): A description of the problems, how they were identified, and their impact on the community.

(b) Development of Strategy(40 points): A description of the tasks associated with formulating a solution for your community's problems. Description of how the project will address a CDBG national objective.

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

(d) Citizen Participation(10 points):Description of how citizens, community groups and others were involved in the identification of the problem and the development of an application.

C. TECHNICAL ASSISTANCE PROGRAMS

The Technical Assistance Program provides selected communities with funds to contract with regional organizations to provide application development, grant administration and general program assistance to Maine’s communities.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Local governments receiving grants as a result of the 1999 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 1999 CDBG program, or added to the available monies for the 1999 or 2000 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 1999 CDBG program or added to the available monies for the 1999 or 2000 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 1999 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 1999 CDBG program or added to the available monies for the 1999 or 2000 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 1999 competitions but did not receive funding and the possibility of holding additional competitions during the 1999 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 1999 Program Statement.

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.

B. PROGRAM INCOME

As used in this Proposed 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. 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.

(c) Program Income Received by the State: Up to 2% of program income returned to the State may be used for administrative costs. The balance of program income (98%) will be used to fund new or previously committed CDBG obligations.

(d) Program Income Plan: Each grantee must submit a Program Income Plan to OCD. The 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;

(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 10% in any program, will be used for administration of the program income.

(e) Program Income Plan Schedule:

(i) Housing Assistance, Public Facilities/Infrastructure, Public Service, Business Assistance, Downtown Revitalization, Urgent Need, Micro-Loan, Economic Development Infrastructure: submit during the Phase II process;

(ii) Development Fund: within forty-five (45) days of award;

(iii) Interim Finance Program: with the IFP application; and

(iv) Regional Assistance Fund: with the RAF application.

2. Special Program Requirements:

(a) Business Assistance and 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 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.

(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: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees who do not close MLP loans to three or more different businesses or grantees who do not demonstrate demand for additional eligible loans will return MLP repayments to DECD.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 1999 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be entertained. In the case of an appeal, funds will be reserved for the project from available or subsequent CDBG funds pending a decision.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 1999 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The amendment process will be guided by the State of Maine's Administrative Procedures Act.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

AARON SHAPIRO, PROGRAM MANAGER

OFFICE OF COMMUNITY DEVELOPMENT

33 STONE STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 287-8476

TTY (207) 287-2656

Effective Date: October 3, 1998

Chapter 19 Community Development Block Grant Program: 2000 Final Statement

Code Me. R. 19-498 Ch. 19 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-19 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 19}

2000 PROGRAM STATEMENT

SUMMARY 1

SECTION 1. PROGRAM OVERVIEW 1

A. CDBG OBJECTIVES 1

B. METHOD OF DISTRIBUTION 1

C. STATE ADMINISTRATION 2

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 2

E. NOTICE – GRANT ADMINSTRATION REQUIREMENT 2

F. PROGRAM TIMEFRAME 2

G. PROGRAM BUDGET 4

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 5

SECTION 2. COMMUNITY DEVELOPMENT 9

A. HOUSING ASSISTANCE GRANTS 9

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS 12

C. PUBLIC SERVICE GRANTS 12

D. DOWNTOWN REVITALIZATION PROGRAM 12

E. URGENT NEED GRANTS 12

SECTION 3. ECONOMIC DEVELOPMENT 12

A. DEVELOPMENT FUND 12

B. REGIONAL ASSISTANCE FUND 12

C. MICRO-LOAN PROGRAM 12

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 12

E. BUSINESS ASSISTANCE PROGRAM 12

F. REGIONAL SUPER PARK PROGRAM…………………………………………………………………………………………39

SECTION 4. PLANNING 12

A. PHASE II PLANNING GRANTS 12

B. COMMUNITY PLANNING GRANTS 12

C. HOUSING ASSESSMENT PLANNING GRANTS 12

D.TECHNICAL ASSISTANCE PROGRAMS 12

SECTION 5. REDISTRIBUTION OF GRANT FUNDS 12

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 12

B. PROGRAM INCOME 12

SECTION 6. APPEALS 12

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 12

19-498 CMR Department of Economic and Community Development

Chapter 19 Community Development Block Grant Program

2000 Program Statement

SUMMARY

This Program Statement describes the method by which 2000 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A. 13073. The 2000 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums with program constituents and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings to solicit input prior to adopting the final Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The Maine CDBG Program serves as a catalyst for local governments to implement programs which:

l. benefit low and moderate income persons;

2. are part of a long range community strategy;

3. improve deteriorated residential and business districts and local economic

conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems.

6. minimize development sprawl consistent with the State of Maine Growth Management Act.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2000 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories - Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants

b. Public Facility/Infrastructure Grants

c. Public Service Grants

d. Downtown Revitalization Program

e. Urgent Need Grants

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Micro-Loan Program

d. Economic Development Infrastructure Grants

e. Business Assistance Program

f. Regional Super Park Program

3. Planning

a. Phase II Planning Grants

b. Community Planning Grants

c. Housing Assessment Planning Grants

C. STATE ADMINISTRATION

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINSTRATION REQUIREMENT

Beginning with the 2000 CDBG grant awards, communities must employ a certified grant administrator (as employee or consultant) or send whoever will be administering their program to the next offered grant administrator training program. The goal of OCD is to have all grantees using the services of certified administrators as soon as possible. Communities may request exceptions to the requirement under special circumstances.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00PM on the dates listed:

Public Infrastructure…………………………………………………… December 3, 1999

Public Facilities……………………………………………………………. December 3, 1999

Housing Assistance………………………………………………………December 17, 1999

Downtown Revitalization…………………………………………… January 21, 2000

Economic Development Infrastructure………………………. Ongoing beginning

January 3, 2000

(official application acceptance, 1st Thursday of every month)

Public Service………………………………………………………………. April 4, 2000

Micro-Loan……………………………………………………………………February 4, 2000

Community Planning…………………………………………………….February 18, 2000

Housing Planning………………………………………………………….February 18, 2000

Urgent Need………………………………………………………………….1st come basis beginning March 1, 2000

Development Fund………………………………………………………..Monthly

(official application acceptance, 1st Thursday of every month)

Business Assistance Program……………………………………… Open

Regional Assistance Fund…………………………………………….Open

Regional Super Park Program………………………………………August 3, 2000

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2000 Program Budget

FY 2000 CDBG Budget

$16,310,000

Administration

426,200

Technical Assistance Administration

163,100

Regional Council Technical Assistance

145,700

1. Housing Assistance Grants

2,400,000

2. Public Infrastructure Grants

3,600,000

3. Public Facilities Grants

1,500,000

4. Public Service Grants

200,000

5. Urgent Need Grants

200,000

6. Downtown Revitalization Grants

1,200,000

7. Development Fund

0

8. Business Assistance Program

1,550,000

9. Micro Loan Program

100,000

10. Regional Assistance Fund

500,000

11. Economic Development Infrastructure

3,000,000

12. Regional Super Park

1,000,000

13. Community Planning

100,000

14. Housing Assessment Planning

150,000

15. Phase II Planning

75,000

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS:

1. Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

 minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Act;

 take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

 not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

 establish a community development plan;

 meet all required State and Federal public participation requirements;

 comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

 with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

 review the project proposed in the application to ensure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements apply to all programs:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), the Economic Development Infrastructure (EDI), Business Assistance (BA) and Regional Assistance Fund (RAF) programs, units of local government and unorganized territories may not apply for, or benefit from, more than one grant per program category in any grant year.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance and the 1999 Public Facilities/Infrastructure category #1 grant programs, units of local government and unorganized territories that benefited from a 1999 award may not apply again in that specific program until the 2001 program. 1999 Public Infrastructure Category #1 grantees may not receive grants for more than two consecutive grant years.

(c) Restriction of Grant Awards: OCD may restrict the award of grants to communities with outstanding audit or monitoring findings or a record of administrative misconduct.

(d) Phase II Planning Grants: Phase II participants may be eligible for planning grant funds on an as needed basis to assist with payment of project development costs. Extent of assistance shall be determined by OCD staff to a maximum of $2,500, most grants will not exceed $2,000.

(e) Grant Termination: OCD will terminate a community's grant if progress on the project is not apparent within 6 months from the date of contract signing. The Program Manager may grant waivers for cause.

(f) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Activities not eligible for CDBG funding will not be considered.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104(b)3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

(h) Repayment of Grant Funds: Recipients must repay to the State of Maine all funds expended if program benefits are not achieved.

(i) Preference for Certified Communities: In accordance with Title 30-A M.R.S.A. subsection 4349(2)(B) communities with certified growth management programs (as determined by the State Planning Office), as of 30 days prior to application deadline, will receive preference in the award of CDBG grants in the following situation:

In the event of a tie between communities receiving the lowest funded application score in any particular program, the grant will be awarded to the certified community, except where the tie is between a certified community and a community that never received an offer of financial assistance to develop a growth management program.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for economic development or Public Service grant projects on behalf of a collaboration of communities.

4. Scoring of Applications

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Raw scores will be converted to ordinal rankings. Final scores will be determined by: (all scores - lowest score) / (all scorers - 1). Starting at the top of the scoring list, applicants will be invited to proceed to Phase II. An invitation into Phase II is not a guarantee of funding. However successful communities will receive an amount sufficient to complete their project, but not to exceed the maximum grant award for that program.

5. Phase II & Final Application Project Development

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility and/ or market studies.

(b) Management Plan: Details of the structure and methods established by the community for program management.

(c) Regulations: Phase II applications will be reviewed for compliance with

State and Federal regulations.

(d) Project Eligibility: Verification that proposed activities are eligible under

the Act.

(e) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

(f) Environmental Review: Review of project for compliance with state

and federal environmental regulations.

6. Approval Process:

The emphasis during Phase II will be to finalize project development. The goal is to develop a local-regional-State partnership that will facilitate project development to best meet the community's identified needs. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Successful completion of Phase II criteria will allow the applicant to contract with DECD and receive CDBG funds. Communities not completing their Phase II or final application within six months of receiving an invitation will forfeit their grant award. The CDBG Program Manager may waive this requirement in light of extenuating circumstances.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate income persons.

1. Special Threshold Criteria and Certifications: Housing Assistance Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities are those directly related to assisting or creating residential housing units including Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers.

(b) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent of 10 percent of the total grant award.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2000 Housing Assistance program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application due date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application due date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Housing Assistance Grant Amount: $300,000

(c) Maximum Housing Rehabilitation Costs: The amount of rehabilitation grants or loans available to participants will be no more than $15,000 per unit. Additional funds, up to a maximum of $7,000 may be available in the following cases: replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or accessibility modifications. Except for acquisition/relocation and those activities listed above, all other eligible housing Assistance program activities are limited to a maximum of $20,000 per unit.

(d) Maximum Administrative Costs: Successful communities may expend a maximum total of $45,000 of CDBG funds for general and housing administration costs. In limited cases this may be waived by OCD.

(e) Section 8 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific health and safety issues, i.e. wells, septic, heating units.

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

Phase I Application: The maximum application length is ten pages. The application deadline is December 17, 1999.

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

(a) Problem Statement (40 points):

(i) Scope of Problem: (20 points) - Identification and description of the magnitude and nature of the housing needs to be addressed (i.e. substandard housing, lack of affordable or elderly housing).

(ii) LMI and Community Impact: (10 points) - Identification and description of the impact of the problem on low-to-moderate income residents and the larger community or neighborhood. Include a description of the health, safety, economic and welfare issues of the residents.

(iii) Energy Efficiency Considerations: (10 points) - Identification and description of the conditions that prevent LMI persons from maintaining affordable, comfortable and efficient energy standards in their current living situations.

(b) Proposed Solution (40 points):

(i) Effectiveness: (20 points) - Description of how funds will be used to solve the identified problems.

(ii) Project Feasibility: (20 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit the involvement of residents/beneficiaries, local organizations, public officials, and how the involvement contributed to this application.

(d) Commitment/Match (10 points): Identification and description of how the applicants, groups, and private citizens will contribute a financial and/or technical resource to the project, the status of those commitments, and a timeframe for the commitments, with a basis for determining value.

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS

The Public Facilities/Infrastructure Grant (PFIG) Program provides funding for local infrastructure and public facility activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities/Infrastructure Program funds will be distributed through an annual grant application submission and review process.

(a) Eligible Activities: Eligible activities in the PFIG program are construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, relocation assistance associated with public projects, and infrastructure for new housing construction.

(b) Local Match: All communities applying for PFIG funds must certify that they will provide a local match equivalent to 20 percent of the total grant award.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within either the Infrastructure or Facilities groups, but cannot apply for activities from both.

Public Infrastructure Public Facilities

Water system installation/improvements Community, child, senior and

Sewer system installation/improvements health centers

Water/sewer system hookups * Fire stations

Storm drainage Sheltered workshops

Utility infrastructure Homeless shelters

Infrastructure in support of new housing Removal of architectural barriers

Streets/roads/sidewalks Fire fighting equipment

Parking, curbs and gutters Salt, sand storage shed

Transfer station

(*as a housing rehabilitation activity Public works garage

completed in conjunction with a public Pier/Wharf

infrastructure project) Libraries

3. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2000 Public Facilities Infrastructure program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds by prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Public Facilities/Infrastructure Grant Amounts

Public Infrastructure

Activity group Max. $

Water system installation/improvements, Sewer system

installation/improvements, Water/sewer system hookups

Storm drainage, Utility infrastructure, Infrastructure

in support of new housing $400,000

Streets/roads/sidewalks $250,000

Parking, curbs and gutters

$ 50,000

Public Facilities

Activity group

Community, child, senior and health centers, libraries

Sheltered workshops, Homeless shelters, Removal

of architectural barriers, Pier/wharf, Fire Stations $250,000

Fire fighting equipment, Salt/sand storage shed

Transfer station, Parks and recreation facilities

Public works garage $ 50,000

(c) Funding Restrictions: PFIG funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction and sewer/water system hookups, no housing activities may be assisted with PFIG funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

(d) Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate project LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This “demonstration” can be made either during the pre-application or project development stage but must absolutely occur prior to contract.

(e) Priority for Public Facilities/Infrastructure Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PFIG program funds. A list of the service and specialized service center communities is attached.

4. Selection Process: The selection process will consist of two phases: a pre- application phase and a final application/project development phase.

Pre-Application: The pre-application deadline is December 3, 1999. The pre-application will be in the form of a questionnaire that will seek, at minimum, the following information:

1. Community, utility district and/or administrative agency information

2. Amount of grant request and summary of proposed use of funds

3. Specific health, safety, and community concerns to be addressed

4. Beneficiary profile

5. Municipal, utility and/or administrative agency financial information

6. Utility rate structure and affect of project on rates (where applicable)

7. Municipal tax structure and affect of project on rates (where applicable)

8. Specific conditions that warrant the project completion

9. How the project was identified and prioritized

10. Funding sources sought and/or secured for this project

Each pre-application will be reviewed and evaluated in relation to those of similar sized communities in its activity group by the OCD application review team. The review team will recommend a list of projects to the OCD Director to proceed into the final application/development phase. Upon initial approval, a Project Development Specialist will be assigned to the community to assist in the final application/development phase and will remain as the staff representative to the community until project completion.

C. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing. Structural changes such as construction, renovation or rehabilitation are not eligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in an area. The clientele of PSG projects are limited to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally low/moderate income 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 eligible Low and Moderate Income persons.

(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 local match equivalent to 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) Past Performance: In order to be eligible to apply for the 2000 Public Service program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Public Service Grant Amount: $50,000

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Phase I Application: The maximum length of an application is eight pages. The application deadline is April 4, 2000.

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

(a) Problem Statement (40 points):

Scope of Problem: (40 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds and the problems facing service providers as they address the issue.

(b) Proposed Solution (40 points):

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems. Include a project budget.

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

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

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

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials. Describe how the application reflects citizen concern and beneficiary involvement.

(d) Commitment/Match (10 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments.

D. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to enable 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.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities, Public Infrastructure, Public Service, Housing Assistance, Micro Loan or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for the 2000 Downtown Revitalization program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Planning Requirements: All applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. Communities with plans older than 5 years will be permitted to demonstrate that their plans are under active implementation and the action plan remains valid. The proposed DR activities must be cited in the plan as a recommended action for downtown revitalization.

(c) Maximum Award: $400,000

(d) Bonus Points for Service and Specialized Center Communities Applicants will receive five bonus points if they have been identified by the State Planning Office as a service or specialized center community.

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

Phase I Application: The maximum application length is ten pages. The application deadline is January 21, 2000.

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

(a) Problem Statement (40 points):

(i) Scope of Problems (25 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

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

(b) Solution (40 points):

(i) Project Description (15 points) - Describe how funds will be used. Include a project budget.

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

(iii) Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d) Commitment/Match (10 points): Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, and the status of those commitments.

(e) National Objective: State how the project, if funded and implemented, will meet the CDBG national objective of benefiting low and moderate income persons or eliminating slum and blighting conditions.

E. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address serious and immediate threats to health and welfare.

1. Special Threshold Criteria and Certifications:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. Counties may apply on behalf of unorganized territories.

(b) Project Eligibility: Pursuant to Section104 (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 the 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, previous or existing budgetary commitments, precludes it from assuming this project's additional financial expenditure; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a) Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UNG Amount: $100,000

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

Phase I Application: An UNG application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first-come first-served basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. Phase II 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: Phase II applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 1, 2000. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the CDBG Program Manager's decision will initiate the Phase II process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides funding to local governments to assist businesses to create or retain jobs for low and moderate-income persons.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) At least 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant must be taken by persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation. The Development Fund is gap financing.

(b) Financing Plan: The DF application shall present a financing plan for a project in which the DF loan comprises the lesser of $200,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(c) Maximum Grant Award: $200,000

(d) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Commitment and the contract between DECD and the local government.

(e) 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 locational cost differentiations and the benefit derived from the assistance.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Eligible activities: Acquisition, relocation, demolition, clearance, construction, reconstruction, installation, rehabilitation and working capital.

(c) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(d) Financial Plan: The financing for the project must be in place and legally binding commitments must be submitted; the proposal is structured to meet cash flow projections; and the project pro forma must be reviewed by an independent qualified financial professional. The financing plan must be complete with no unidentified uses of funds necessary to complete the project.

(e) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(f) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(g) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to execute security agreements.

(h) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(i) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(1) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(2) Community and Economic Development: The primary and secondary impacts of the DF project on the community's current and future economic development will be evaluated.

4. Approval Process

(a) Application: Applications shall be submitted by the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. DECD or its designee will conduct a credit analysis. The DF Review Committee will then review applications. The Committee will make recommendations to the Director of the Office of Business Development. The DF Committee is appointed by the Director and consists of a representative of local government, a certified public accountant, an attorney, a representative of private financing, a businessperson, and two at-large appointees.

(b) DF Committee Recommendations: The DF Committee will review staff reports, credit analysis and make recommendations to the Director for awards. The Committee will recommend one of four options:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for resubmission; or,

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to $300,000 per quarter, plus any unobligated portion of allocations of previous quarters. The Director of OBD can waive this limit. The Director reserves the right to reject any or all applications.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments to be used as leverage to obtain funds from Federal, State and private programs. RAF money can be used as match to obtain funds from: the Economic Development Administration (EDA); Economic Adjustment Assistance Program (Title IX); and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State, and therefore, RAF cannot be used as match with the State's CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive a RAF grant. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) be an eligible planning activity or a project with 51% of the jobs created or retained as a result of RAF expenditures proposed by the applicant are taken by persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds as eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: Provided the RAF application is successful, a contract will be executed between DECD and the local government to reserve funds for the applicant. A Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds.

(b) Limit on Amount of RAF assistance: Each Economic Development District will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the Director of Office of Business Development (OBD). The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Job Training Partnership Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's current and future economic development will be evaluated.

(f) Local Commitment/Match: The commitment of local funds to the project. Additional weight will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency and is working toward a full application, it may submit a RAF application to DECD. DECD staff will review the RAF applications on a first-come first-served basis to determine if the threshold criteria and special program requirements have been met. Successful applicants will be invited to continue to the project development phase. A project development analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OBD for awards:

(i) approval of requested amount with requested or different terms

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate-income persons.

1. Threshold Criteria and Certifications: Micro Loan Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting businesses.

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2000 Micro-Loan program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application date. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be withdrawn.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

(e) Micro-Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees that do not close MLP loans to three or more different businesses and do not demonstrate demand for additional eligible loans will return MLP repayments to DECD.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is February 4, 2000.

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

(a) Problem Statement (35 points):

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

(b) Proposed Solution (45 points):

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

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

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

(c) Citizen Participation (20 points):

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

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

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

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

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on an ongoing basis beginning January 3, 2000. The official application acceptance will be the 1st Thursday of each month.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons. Eligibility of projects that are not in support of a specific business, such as the development of an industrial park or incubator building, will be determined on a case by case basis by OCD.

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

(c) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

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

(e) Applicant Surety: If the proposed EDI activity is not in support of a specific business, prior to contracting with OCD, the applicant community must have in place a surety instrument equal to the amount of the EDI grant.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2000 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Economic Development Infrastructure Grant Amount: $400,000. In no case will the amount of EDI assistance be greater than 50% of the project cost including EDI, local, and business contributions. Projects involving collaboration among communities may be eligible for grants exceeding the maximum.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under the following limited conditions:

(i) The retail business represents the provision of new products and services previously unavailable in the community or is a tourism-related business;

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

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

(d) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

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

(a) Pre-Application: Eligible EDI applications must submit a completed pre-application to OCD. Pre-applications will be reviewed by the OCD Review Team to determine if the following threshold criteria are met:

(i) Applicant eligibility

(ii) Consistency with State Economic Development Strategy

(ii) Activities are eligible and comply with national and state CDBG objectives

(iv) No legal actions will significantly effect the project

(v) Financial profile of the applicant community and/developer

(vi) Financial condition of the business or development entity

(vii) Amount of proposed EDI assistance is reasonable

(viii) Match funds meet program requirements

(ix) Assessment of success of the project

(x) Project will not result in relocation of the business from community to another, unless:

(a) the current host community certifies it cannot meet the needs of the business

(b) there is a plan to mitigate the potential for dislocation of the current workforce

If all pre-application requirements are met, OCD will invite the applicant, in writing within 15 working days, into the application phase. A Project Development Specialist will be assigned to work with the applicant. If the pre-application is rejected, the applicant will be notified in writing of the reasons for rejection. Pre-applications may be re-submitted after 30 days of notification.

(b) Application Phase: The applicant must submit a completed application within 120 days from invitation. The OCD Review Team will evaluate the project using the following criteria:

(i) Completeness

(ii) Ability to proceed

(iii) Quality of LMI jobs

(iv) Status of matching funds

(v) Level of risk

(vi) Community benefit

(vii) Reasonableness of EDI assistance

(viii) Citizen participation

(ix) Environmental review

The Review team will complete its review within 15 working days from the date of official application acceptance. The Team will recommend either: 1) Approval; 2) Request further information or documentation; or 3) Denial.

Upon receiving the recommendation from the Review Team, the OCD Director will forward the recommendation to the DECD Commissioner for final action. The Commissioner has the authority to ask for reconsideration by the Review Team. Within five (5) working days of review completion OCD will notify applicants of the status of their application. Applicants approved for funding will begin the process of contracting with OCD. If an application requires further information or documentation, the applicant may re-submit the amended application at any time.

Applications denied by OCD may not be re-submitted prior to 30 working days from notification and only after discussion between the applicant, Project Development Specialist, the OCD Technical Assistance Director or Program Manager.

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides funds to assist businesses to create or retain jobs for low and moderate-income persons. The Business Assistance program will provide either loans, grants or a combination of each to meet the infrastructure, capital equipment and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories;

(b Project Benefit: At a minimum, 51% of the jobs created or retained as a result of BA expenditures must be taken by persons of low and moderate income.

(c) The targeted cost per job created or retained with BA funds is $10,000.

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA loan or grant to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance.

(b) Financing Plan: The application shall present a complete financing plan for a project. The financing necessary to support the total project cost must be documented with binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will loan or grant to the business identified in the BA application. The loan or grant must be provided under the terms stated in a Business Assistance Letter of Commitment and the contract between DECD and the local government.

(d) Repayment Terms: Terms must be based on the business’ maximum capacity for principle and interest payments as documented in their pro formas and reviewed by DECD or its designee as appropriate to remain profitable.

(e) Maximum Business Assistance Grant Amount: $400,000

(f) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Eligible Activities: Eligible activities to be carried out with BA funds include acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures, capital equipment and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity as determined by the Director.

(e) BA Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the BA loan and indicates willingness to enter into security agreements.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's current and future economic development will be evaluated.

(k) Community Financial Commitment/Match: The community must demonstrate a vested financial interest in the development project. The program’s goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

(a) Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee appointed by the Director of the Office of Business Development.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the Director of OBD for awards.

F. REGIONAL SUPER PARK PROGRAM

The Regional Super Park program provides Maine communities with funds to assist in the provision of necessary infrastructure to develop one regional business park (Super Park) within the State. Recognizing the needs to have an inventory of “Super Parks” in Maine, the State is challenging Maine communities to develop the next generation of business industrial parks. These parks should be developed through a creative regional process involving tax-sharing and other cooperative agreements.

1. Threshold Criteria: The State may distribute Regional Super Park funds through an application selection process and award one grant to the group of communities that develops the proposal with the best chance of success.

(a) Eligible Applicants: All units of general local government in Maine,

except entitlement communities, are eligible to apply for the Super

Park program. Entitlement communities may participate in a regional

super park development in a non-entitlement community.

(b) Eligible Activities: Eligible activities including acquisition, relocation,

demolition, clearance, construction, reconstruction, installation, and

rehabilitation associated with public improvements such as water

and sewer facilities, utility infrastructure, flood and drainage

improvements, 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.

(c) Cost per Job: The targeted cost per job created ratio is $10,000.

(d) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of Super Park Project expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements

(a) Maximum Grant Award: $1,000,000.

(b) Award of Grant: DECD reserves the right to refuse any and all applications and to make no award under this program.

(c) Leverage Ratio: Applicants must demonstrate committed match funds with at least a 5-to-1 ratio of other dollars to CDBG dollars.

Applicants may utilize funds from any source (other than CDBG) to

meet match requirement.

3. Selection Process: Applicants must include a development plan covering the following features:

 minimum 300 acre park size or 200 developable acres (can include existing industrial park acreage)

 advanced telecommunications infrastructure

 advanced electric distribution facilities

 a campus-like atmosphere including efficient and attractive circulation systems for motorists and pedestrians, large landscaped lots and attractively landscaped common areas, underground utilities and architecturally controlled buildings and sites

 centralized water and sewage treatment facilities

 access to major transport systems

 access to essential community services

The successful application will demonstrate cooperation among applicant communities, identify demand for a super park facility, include a financial plan that has a high probability of success and outline a facility management capacity.

Applicants must demonstrate that their project will not compete with the Kennebec Regional Super Park currently being developed in Oakland.

Phase I Application: No maximum length. The application deadline is August 3, 2000. Each application will be rated in relation to all others. There is no minimum score for funding but the Office of Community Development reserves the right not to fund an application if it is deemed to be in the best interests of the State and the Community Development Block Grant Program.

(a) Management Plan: (15 points) Description of the management

and organizational structure to be used in the development and

operation of the park.

(b) Development Plan: (25 points) Preliminary site plan and

description of facilities and amenities.

(c) Market Plan: (25 points) Feasibility studies and market analysis

demonstrating 1) the need for the park (suitable, available

occupants), 2) availability of workforce, and 3) build-out rate

scenarios.

(d) Financial Plan: (25 points) Plan must include 1) demonstrated

commitment of funds for leverage ratio, 2) community

tax-sharing and TIF agreements, and 3) business plan for the

park.

(e) Community Participation: (10 points) Projects including

more than two communities will receive a higher point total.

SECTION 4. PLANNING

A. PHASE II PLANNING GRANTS

The Phase II Planning Grant Program enables communities to gather, analyze, and provide information required by the Phase II Project Development process.

1. Threshold Criteria:

(a) Eligible Applicants: Only communities invited into Phase II of the Housing Assistance, Public Facilities/Infrastructure, Public Service, Economic Development Infrastructure, Micro-Loan, and Downtown Revitalization Programs are eligible to apply for and receive Phase II Planning Grants.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Phase II requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule for completion.

(d) Federal and State Certifications: Communities applying for Phase II Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Phase II Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Phase II requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Phase II Planning Grants will be awarded on an as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff.

4. Maximum Grant Award : $2,500

B. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: Community Planning Program funds will be distributed through an annual grant application selection process.

Eligible Activities: CPG funds may be used for planning only activities that include studies, analysis, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific projects are not eligible.

Project Benefit: The program activities must meet one of the CDBG Program's national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low and moderate income persons, or prevent or eliminate slum or blighting conditions.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2000 Community Planning program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l). program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2). the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3). the job creation goals of a previous grant have not been fulfilled; or 4). special circumstances as determined and approved by the OCD Director.

(b) Maximum CPG Grant Amount: $10,000.

3. Selection Process: The selection process will consist of two phases - an application phase (Phase I), and a project development phase (Phase II).

Priority for funding will be given to the following categories in the numbers indicated: Public Facilities Infrastructure (4), Economic Development (3) and Tourism Opportunities (3).

Phase I Application: The maximum application length is six pages. The application deadline is February 18, 2000.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem Statement, Development of Strategy, Citizen Participation and Project Leverage is required for consideration to be invited into Phase II.

(a) Problem Statement (40 points): A description of the problems, how they were identified, the impact on the community and on LMI persons or slum/blighting conditions.

(b) Development of Strategy (40 points): A description of the tasks proposed to solve your community's problems. Description of how the project will address a CDBG national objective. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (10 points): A description of other resources (local, state, federal, private) that will be contributed to the project.

(d) Citizen Participation (10 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue.

C. HOUSING ASSESSMENT PLANNING GRANTS

The Housing Assessment Planning Grant (HAPG) Program provides funding to communities or community partnerships to address their housing problems. Planning funds will enable communities to develop housing strategies that may be implemented with future CDBG funds. From program year 2001 and forward, housing assistance grant awards will be made to HAPG recipients or communities completing similar housing planning programs.

1. Threshold Criteria and Certifications: Housing Assessment Planning Grant funds will be distributed through an annual application selection process.

Eligible Activities: HAPG funds will be used to conduct a comprehensive study of housing planning issues for the community. The study will cover issues such as: number and age of units, condition, energy considerations, affordability, occupancy rates, needs for new construction, rehabilitation, code enforcement, elderly, assisted living, special needs housing and financial resources to address housing needs. Engineering, architectural and design costs related to specific activities are not eligible.

Project Benefit: The proposed activities must meet one of the CDBG Program's national objectives - providing benefit to low and moderate income persons, or preventing or eliminating slum or blighting influences.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2000 Community Planning program, communities that received CDBG grants in or prior to 1996 must have closed their grants prior to application. Communities that received CDBG grants in 1997 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1998 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum HAPG Grant Amount: $15,000.

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

Phase I Application: The maximum application length is four (4) pages. The application deadline is February 18, 2000.

Each application will be evaluated by the OCD Review Team based on the criteria listed. The Review Team will gather information for the applicant to include: percent poverty, degree of substandard housing, rent burdened households and affordability index. This information will be obtained from census data, the Maine State Housing Authority and the State Planning Office.

The application will include a brief description of the housing problems of the community, how these were identified, public participation in determining housing issues and why the community is interested in addressing its housing problems.

(a) Problem Statement: A description of the problems, how they were identified, and their impact on the community.

(b) Development of Strategy: A description of the tasks associated with formulating a solution for your community's housing problems. Description of how the project will address a CDBG national objective.

(c) Citizen Participation: Description of how citizens, community groups and others were involved in the identification of the problem and the development of an application.

Successful applicants will be invited into the Phase II project development process. Upon completion of the housing study, applicants interested in implementing the action steps of their housing plan will submit a letter of intent to request Housing Assistance grant funds. The housing study will be reviewed by OCD prior to the 2001 CDBG program. The review will determine the communities selected for invitation into the development phase of the 2001 Housing Assistance grant program.

D. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides selected communities with funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program and outreach to communities.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Local governments receiving grants as a result of the 2000 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2000 CDBG program, or added to the available monies for the 2000 or 2001 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2000 CDBG program or added to the available monies for the 2000 or 2001 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 1999 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2000 CDBG program or added to the available monies for the 2000 or 2001 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 2000 competitions but did not receive funding and the possibility of holding additional competitions during the 2000 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2000 Program Statement.

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.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 2000 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be entertained. In the case of an appeal, funds will be reserved for the project from available or subsequent CDBG funds pending a decision.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2000 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The amendment process will be guided by the State of Maine's Administrative Procedures Act.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

AARON SHAPIRO, PROGRAM MANAGER

OFFICE OF COMMUNITY DEVELOPMENT

33 STONE STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 287-8476

TTY (207) 287-2656

2000 Program Statement 50

Chapter 20 Community Development Block Grant Program: 2001 Final Statement

Code Me. R. 19-498 Ch. 20 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-20 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 20}

2001 PROGRAM STATEMENT

SUMMARY 1

SECTION 1. PROGRAM OVERVIEW 1

A. CDBG OBJECTIVES 1

B. METHOD OF DISTRIBUTION 2

C. STATE ADMINISTRATION 2

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 3

E. NOTICE - GRANT ADMINSTRATION REQUIREMENT 3

F. PROGRAM TIMEFRAME 4

G. PROGRAM BUDGET 5

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 6

SECTION 2. COMMUNITY DEVELOPMENT 10

A. HOUSING ASSISTANCE GRANTS 10

B. PUBLIC FACILITIES/INFRASTRUCTURE GRANTS 13

C. PUBLIC SERVICE GRANTS 16

D. DOWNTOWN REVITALIZATION PROGRAM 19

E. URGENT NEED GRANTS 22

F. CITY OF AUGUSTA - CAPITOL RIVER DISTRICT 24

SECTION 3. ECONOMIC DEVELOPMENT 25

A. DEVELOPMENT FUND 25

B. REGIONAL ASSISTANCE FUND 28

C. MICRO-LOAN PROGRAM 31

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 34

E. BUSINESS ASSISTANCE PROGRAM 38

F. INTERIM FINANCE PROGRAM 41

SECTION 4. PLANNING 43

A. PROJECT DEVELOPMENT PHASE PLANNING GRANTS 43

B. COMMUNITY PLANNING GRANTS 44

C. HOUSING ASSESSMENT PLANNING GRANTS 46

D. TECHNICAL ASSISTANCE PROGRAMS 48

SECTION 5. REDISTRIBUTION OF GRANT FUNDS 49

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 49

B. PROGRAM INCOME 50

SECTION 6. APPEALS 51

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 52

19-498 CMR Department of Economic and Community Development

Chapter 20 Community Development Block Grant Program

2001 Program Statement

SUMMARY

This Program Statement describes the method by which 2001 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A. 13073. The 2001 CDBG program is developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums with program constituents and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD held public hearings to solicit input prior to adopting the Final Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

The Maine CDBG Program serves as a catalyst for local governments to implement programs which:

1. benefit low and moderate-income persons;

2. are part of a long-range community strategy;

3. improve deteriorated residential and business districts and local economic

conditions;

4. provide the conditions and incentives for further public and private investment; and

5. foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations and the private sector to address common community and economic development problems.

6. minimize development sprawl consistent with the State of Maine Growth Management Act, and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2001 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories - Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants

b. Public Facility Grants

c. Public Infrastructure Grants

d. Public Service Grants

e. Downtown Revitalization Program

f. Urgent Need Grants

g. City of Augusta Capitol River District Set-Aside Grant

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Micro-Loan Program

d. Economic Development Infrastructure Grants

e. Business Assistance Program

f. Interim Finance Program

3. Planning

a. Project Development Phase Planning Grants

b. Community Planning Grants

c. Housing Assessment Planning Grants

C. STATE ADMINISTRATION

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINSTRATION REQUIREMENT

Beginning with the 2000 CDBG grant awards, communities must employ a certified grant administrator (as employee or consultant) or send whoever will be administering their program to the next offered grant administrator training program. The goal is to have all grantees using the services of certified administrators as soon as possible. Communities may request exceptions to the requirement under special circumstances.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00PM on the dates listed:

Public Infrastructure December 8, 2000

Public Facilities December 8, 2000

Housing Assistance February 16, 2001

Downtown Revitalization January 19, 2001

Economic Development Infrastructure Ongoing beginning

January 4, 2001

(official application acceptance, 1st Thursday of every month)

Public Service April 6, 2001

Micro-Loan February 9, 2001

Community Planning February 16, 2001

Housing Planning February 16, 2001

Urgent Need 1st come basis beginning March 2, 2001

Development Fund Monthly

(official application acceptance, 1st Thursday of every month)

Business Assistance Program Open

Regional Assistance Fund Open

Interim Finance Program 1st come basis

beginning January 1,

2001

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2001 Program Budget

FY 2001 CDBG Budget

$16,377,000

Administration

427,540

Technical Assistance Administration

163,770

Regional Council Technical Assistance

152,690

1. Housing Assistance Grants

2,400,000

2. Public Infrastructure Grants

3,600,000

3. Public Facilities Grants

1,500,000

4. Public Service Grants

200,000

5. Urgent Need Grants

200,000

6. Downtown Revitalization Grants

1,200,000

7. City of Augusta – Capitol River Improvement District

500,000

8. Development Fund

500,000

9. Economic Development Fund

5,000,000

Business Assistance

Economic Development Infrastructure

Regional Assistance Fund

Interim Finance Program (see below*)

10. Micro Loan Program

150,000

11. Community Planning

158,000

12. Housing Assessment Planning

150,000

13. Project Development Phase Planning

75,000

• The budget for the Interim Finance Program is comprised of monies not yet disbursed from each of the other programs. These monies are lent on a short-term basis. The maximum budget for this program is $5,000,000. This program is capitalized only as loans are issued.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS:

1. Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

 minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Act;

 take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

 not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

 establish a community development plan;

 meet all required State and Federal public participation requirements;

 comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

 with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

 review the project proposed in the application to ensure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements apply to all programs:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), Economic Development Infrastructure (EDI), Business Assistance (BA) and Regional Assistance Fund (RAF) programs, units of general local government and unorganized territories may not apply for, or benefit from, more than one grant per program category in any grant year.

Communities participating in multi-jurisdictional applications may submit their own application for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance, and Public Infrastructure grant programs, units of general local government and unorganized territories that benefited from a 2000 award may not apply again in that specific program until the 2002 program. Public Infrastructure grantees may receive grants in consecutive years to complete the same or related project. Communities may apply for and receive Public Infrastructure grants and Public Facility grants in subsequent years. These are considered different programs.

(c) Restriction of Grant Awards: OCD may restrict the award of grants to communities with outstanding audit or monitoring findings or a record of administrative misconduct.

(d) Project Development Phase Planning Grants: Project Development Phase participants may be eligible for planning grant funds on an as needed basis to assist with payment of project development costs. Extent of assistance shall be determined by OCD staff to a maximum of $2,500, most grants will not exceed $2,000.

(e) Grant Termination: OCD will terminate a community's grant if progress on the project is not apparent within 6 months from the date of contract signing. The Program Manager may grant waivers for cause.

(f) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Activities not eligible for CDBG funding will not be considered.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104(b)3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

(h) Repayment of Grant Funds: Recipients must repay to the State of Maine all funds expended if program benefits are not achieved.

(i) Changes in Title 30-A, Subsection 4349-A as amended by PL 776:

Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(j) Preference for Communities: In accordance with Title 30-A subsection 4349-A(3) OCD is required to give preference in the award of grants for capital investments not defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter over a municipality that does not obtain the certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Portland, Bangor, Lewiston and Auburn, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for Economic Development Infrastructure, Business Assistance, Development Fund, Regional Assistance Fund, Public Service or IFP grant programs on behalf of a collaboration of communities.

4. Scoring of Applications

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Raw scores will be converted to ordinal rankings. Final scores will be determined by: (all scores - lowest score) / (all scorers - 1). Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase. An invitation into the Project Development Phase or notification to complete a final application is not a guarantee of funding. However, successful communities will receive an amount determined by the OCD for their project, but not to exceed the maximum grant award for that program.

5. Project Development Phase & Final Application Project Development

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility and/ or market studies.

(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.

(d) Project Eligibility: Verification that proposed activities are eligible under the Act.

(e) Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

(f) Environmental Review: Review of project for compliance with state and federal environmental regulations.

The goal of the Project Development Phase or final application is a grant contract for CDBG funds. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Communities not completing their Project Development Phase or final application within six months of receiving an invitation will forfeit their grant award. The CDBG Program Manager may waive this requirement in light of extenuating circumstances.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate-income persons.

1. Special Threshold Criteria and Certifications: Housing Assistance Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities are those directly related to assisting or creating residential housing units including Acquisition, Code Enforcement, Conversion of Non-Residential structures, Demolition, Historic Preservation, Housing Rehabilitation, New Housing Construction, Relocation Assistance, and Removal of Architectural Barriers.

(b) Housing Assessment Planning Requirement: All communities applying for Housing Assistance funds must have completed a comprehensive housing assessment planning study within the past five years. Communities with plans older than five years will be permitted to demonstrate that their plan is under active implementation and is still valid or has been updated within the past five years.

(c) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent of 10 percent of the total grant award.

(iii) adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective 9/15/2000.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Housing Assistance program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application due date. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application due date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Housing Assistance Grant Amount: $400,000

(c) Maximum Housing Rehabilitation Costs: The amount of rehabilitation grants or loans available to participants will be no more than $15,000 per unit. Additional funds, up to a maximum of $7,000 may be available in the following cases: replacement housing, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or accessibility modifications. Except for acquisition/relocation and those activities listed above, all other eligible housing Assistance program activities are limited to a maximum of $20,000 per unit.

(d) Maximum Administrative Costs: This program allows expenditures for general and rehab administration. The total general administration expenditures may not exceed 10% of the grant amount. However, the total expenditures for both general and rehab administration may not exceed $45,000 for programs completing up to thirty housing units. An additional $1,500 in combined administration will be allowed for each unit completed beyond thirty up to a maximum combined administration total of $60,000.

(e) Section 8 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific health and safety issues only, i.e. wells, septic, heating units.

3. Application Process: This process will consist of the following:

(a) Submission of a letter of intent by 4:00PM on February 16, 2001. The letter of intent (no more than 4 pages in length) to apply for Housing Assistance Funds detailing:

 the amount of funds requested

 a description of how funds will be used and what will be accomplished

 identification of administrative tasks necessary to implement the project

 project schedule

 identification of community officials, citizens, developers or organizations responsible for implementing the project

(b) A copy of the community’s housing assessment plan:

 The community’s complete assessment plan

 an executive summary of the plan

 an action plan to address the identified needs

 identification and description of how the applicant, groups, and private citizens will contribute financial and/or technical resources to the project:

 resources sought

 the status of commitments (known and sought)

 a timeframe for the commitments

 the basis for determining their value

(d) Identify why CDBG funds are essential for the completion of the project

4. Selection Process: The selection process will consist of review and evaluation of:

 Completeness of the housing assessment plan

 Level of housing need for low/moderate income households in the community

 Amount and certainty of financial and resource commitments to the project

 Extent to which the proposed project matches the priority needs identified in the housing assessment plan

B. PUBLIC FACILITIES and PUBLIC INFRASTRUCTURE GRANT PROGRAMS

The Public Facilities and Public Infrastructure Grant (PF & PI) Programs provide funding for local infrastructure and public facility activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities and Public Infrastructure Program funds will be distributed through an annual grant application submission and review process.

(a) Eligible Activities: Eligible activities in the PF & PI programs are construction, acquisition, reconstruction, installation, rehabilitation, site clearance, historic preservation, relocation assistance associated with public projects, and infrastructure in support of new affordable housing construction.

(b) Local Match: All communities applying for PF & PI funds must certify that they will provide a local match equivalent to 20 percent of the total grant award.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within either the Infrastructure or Facilities groups, but cannot apply for activities from both.

Public Infrastructure Public Facilities

Water system installation/improvements Community, child, senior and

Sewer system installation/improvements health centers

Water/sewer system hookups * Fire stations

Storm drainage Sheltered workshops

Utility infrastructure Homeless shelters

Infras. to support new affordable housing Removal of architectural barriers

Streets/roads/sidewalks Fire fighting equipment

Parking, curbs and gutters Salt, sand storage shed

Transfer station

(*as a housing rehabilitation activity Public works garage

completed in conjunction with a public Pier/Wharf/Dams

infrastructure project) Libraries

Historic Preservation

Parks & Recreation

3. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Public Facilities and Public Infrastructure programs, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application date. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds by prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Public Facilities & Public Infrastructure Grant Amounts

Public Infrastructure

Activity group Max. $

Water system installation/improvements, Sewer system

installation/improvements, Water/sewer system hookups

Storm drainage, Utility infrastructure, Infrastructure

in support of new affordable housing $400,000

Streets/roads/sidewalks, parking, curbs and gutters $100,000

Public Facilities

Activity group

Community, child, senior and health centers, libraries

Sheltered workshops, Homeless shelters, Pier/wharf

Fire Stations $250,000

Removal of architectural barriers $100,000

(as a distinct, stand-alone project)

Historic Preservation $100,000

(as a distinct, stand-alone project)

Fire fighting equipment, Salt/sand storage shed

Transfer station, Parks and recreation facilities

Public works garage, dams $ 50,000

(c) Funding Restrictions: PF & PI funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction and sewer/water system hookups, no housing activities may be assisted with PF & PI funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

(d) Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate project LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This “demonstration” must be made as part of the pre-application.

(e) Priority for Public Facilities and Public Infrastructure Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PF & PI program funds. A list of the service and specialized service center communities is attached.

4. Selection Process: The selection process will consist of two phases: a pre- application phase and a final application/project development phase.

Pre-Application: The pre-application deadline is December 8, 2000. The pre-application will be in the form of a questionnaire that will seek, at minimum, the following information:

1. Community, utility district and/or administrative agency information

2. Amount of grant request and summary of proposed use of funds

3. Specific health, safety, and community concerns to be addressed

4. Beneficiary profile

5. Municipal, utility and/or administrative agency financial information

6. Utility rate structure and affect of project on rates (where applicable)

7. Municipal tax structure and affect of project on rates (where applicable)

8. Specific conditions that warrant the project completion

9. How the project was identified and prioritized

10. Funding sources sought and/or secured for this project

Each pre-application will be reviewed and evaluated in relation to those of similar sized communities in its activity group by the OCD application review team. Communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. The review team will recommend a list of projects to the OCD Director to proceed into the final application/development phase. Upon initial approval, a Project Development Specialist will be assigned to the community to assist in the final application/development phase and will remain as the staff representative to the community until project completion.

C. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing. Structural changes such as construction, renovation or rehabilitation are not eligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in an area. The clientele of PSG projects are limited to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally low/moderate income 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 eligible Low and Moderate Income persons.

(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 local match equivalent to 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) Past Performance: In order to be eligible to apply for the 2001 Public Service program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application date. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Public Service Grant Amount: $50,000

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

Phase I Application: The maximum length of an application is eight pages. The application deadline is April 6, 2001.

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

(a) Problem Statement (40 points):

Scope of Problem: (40 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds and the problems facing service providers as they address the issue.

(b) Proposed Solution (40 points):

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems. Include a project budget.

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

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

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

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials. Describe how the application reflects citizen concern and beneficiary involvement.

(d) Commitment/Match (10 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments.

D. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to enable communities to implement comprehensive, integrated and innovative solutions to the problems facing their downtown districts. These community revitalization projects must be part of a strategy that targets downtown service and business districts and will lead to future public and private investment. Qualified applicant communities must have a downtown district meeting the definition of PL 776 enacted by the 119th legislature.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities, Public Infrastructure, Public Service, Housing Assistance, Micro Loan or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for the 2001 Downtown Revitalization program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application date. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Planning Requirements: Applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. Communities with plans older than 5 years will be permitted to demonstrate that their plans are under active implementation and the action plan remains valid. The proposed DR activities must be cited in the plan as recommended actions for downtown revitalization.

(c) Maximum Award: $400,000

(d) Bonus Points for Service and Specialized Center Communities Applicants will receive three bonus points if they have been identified by the State Planning Office as a service or specialized center community.

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

Phase I Application: The maximum application length is ten pages. The application deadline is January 19, 2001.

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

(a) Problem Statement (40 points):

(i) Scope of Problems (25 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

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

(b) Solution (40 points):

(i) Project Description (15 points) - Describe how funds will be used. Include a project budget.

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

(iii) Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d) Commitment/Match (10 points): Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, and the status of those commitments.

(e) National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a target area survey or a declaration of slum/blight conditions must be submitted with the application.

E. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address serious and immediate threats to health and welfare.

1. Special Threshold Criteria and Certifications:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive Urgent Need funds. Counties may apply on behalf of unorganized territories.

(b) Project Eligibility: Pursuant to Section104 (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 the 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, previous or existing budgetary commitments, precludes it from assuming this project's additional financial expenditure; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a) Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UNG Amount: $100,000

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

Phase I Application: An UNG application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first-come first-served basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. Project Development Phase applications must comply with the following:

(a) Project Planning: Details of the project including engineering, cost analysis, feasibility and structural analysis as necessary.

(b) Management Plan: Details of the structure and methods established by the community for program management.

(c) Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 2, 2001. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the CDBG Program Manager's decision will initiate the Project Development Phase process necessary for contract award.

F. City of Augusta – Capitol River Improvement District

The City of Augusta will receive a special set-aside grant for $500,000 for improvements to its downtown district. The project area includes an economically and physically distressed portion of the downtown generally defined as being from the Father Curran Bridge westerly up Bridge Street to State Street, then northerly to a point adjacent to the Edwards Manufacturing Company site, then southerly along Water Street to the Father Curran Bridge.

The City must complete a Downtown Revitalization program application and a “Project Development Phase” application. These documents must demonstrate that all funded activities are eligible for CDBG funds, meet a CDBG national objective and that the project will significantly contribute to the downtown’s revitalization.

SECTION 3. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides funding to local governments to assist businesses to create or retain jobs for low and moderate-income persons.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive DF funds. County governments may apply on behalf of unorganized territories.

(b) At least 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant must be taken by persons of low and moderate income;

(c) the cost per job created or retained with DF funds shall not exceed $35,000.

(d) complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation. The Development Fund is gap financing.

(b) Financing Plan: The DF application shall present a financing plan for a project in which the DF loan comprises the lesser of $200,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(c) Maximum Grant Award: $200,000

(d) DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Commitment and the contract between DECD and the local government.

(e) 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 locational cost differentiations and the benefit derived from the assistance.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Eligible activities: Acquisition, relocation, demolition, clearance, construction, reconstruction, installation, rehabilitation and working capital.

(c) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(d) Financial Plan: The financing for the project must be in place and legally binding commitments must be submitted; the proposal is structured to meet cash flow projections; and the project pro forma must be reviewed by an independent qualified financial professional. The financing plan must be complete with no unidentified uses of funds necessary to complete the project.

(e) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(f) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(g) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to execute security agreements.

(h) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(i) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(1) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(2) Community and Economic Development: The primary and secondary impacts of the DF project on the community's current and future economic development will be evaluated.

4. Approval Process

(a) Application: Applications shall be submitted by the first Thursday of each month. DECD staff will review the applications to determine if the threshold criteria have been met. DECD or its designee will conduct a credit analysis. The DF Review Committee will then review applications. The Committee will make recommendations to the Director of the Office of Business Development. The DF Committee will consist of staff members of the Finance Authority of Maine and DECD.

(b) DF Committee Recommendations: The DF Committee will review staff reports, credit analysis and make recommendations to the Director for awards. The Committee will recommend one of four options:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for resubmission; or,

(iv) rejection.

(c) Quarterly Allocation: The allocation will be limited to $300,000 per quarter, plus any unobligated portion of allocations of previous quarters. The Director of OBD can waive this limit. The Director reserves the right to reject any or all applications.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments to be used as leverage to obtain funds from Federal, State and private programs. RAF money can be used as match to obtain funds from: the Economic Development Administration (EDA); Economic Adjustment Assistance Program (Title IX); and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State, and therefore, RAF cannot be used as match with the State's CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) Eligible Applicants: All units of general local government in Maine, including plantations and Counties, are eligible to apply for and receive a RAF grant. County governments may also apply on behalf of unorganized territories. Groups of local governments may apply for a multi-jurisdictional or joint RAF project. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government.

(b) be an eligible planning activity or a project with 51% of the jobs created or retained as a result of RAF expenditures proposed by the applicant are taken by persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds as eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: Provided the RAF application is successful, a contract will be executed between DECD and the local government to reserve funds for the applicant. A Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds.

(b) Limit on Amount of RAF assistance: Each Economic Development District will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the Director of Office of Business Development (OBD). The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds

3. Selection Process: The RAF project will be evaluated as a viable CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's current and future economic development will be evaluated.

(f) Local Commitment/Match: The commitment of local funds to the project. Additional weight will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency (such as EDA) and is working toward a full application, it may submit a RAF application to DECD. DECD staff will review the RAF applications on a first-come first-served basis to determine if the threshold criteria and special program requirements have been met. Successful applicants will be invited to continue to the project development phase. A project development analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the Director of the OBD for awards:

(i) approval of requested amount with requested or different terms

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate-income persons.

1. Threshold Criteria and Certifications: Micro Loan Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting businesses.

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Micro-Loan program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application date. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be withdrawn.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

(e) Micro-Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees that do not close MLP loans to three or more different businesses and do not demonstrate demand for additional eligible loans will return MLP repayments to DECD.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is February 9, 2001.

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

(a) Problem Statement (35 points):

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

(b) Proposed Solution (45 points):

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

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

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

(c) Citizen Participation (20 points):

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

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

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

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

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on an ongoing basis beginning January 4, 2001. The official application acceptance will be the 1st Thursday of each month.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons. Eligibility of projects that are not in support of a specific business, such as the development of an industrial park or incubator building, will be determined on a case-by-case basis by OCD.

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

(c) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

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

(e) Applicant Surety: If the proposed EDI activity is not in support of a specific business, prior to contracting with OCD, the applicant community must have in place a surety instrument equal to the amount of the EDI grant.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Economic Development Infrastructure Grant Amount: $400,000. In no case will the amount of EDI assistance be greater than 50% of the project cost including EDI, local, and business contributions. Projects involving collaboration among communities may be eligible for grants exceeding the maximum.

(c) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under the following limited conditions:

(i) The retail business represents the provision of new products and services previously unavailable in the community or is a tourism-related business;

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

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

(d) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

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

(a) Pre-Application: Eligible EDI applications must submit a completed pre-application to OCD. Pre-applications will be reviewed by the OCD Review Team to determine if the following threshold criteria are met:

(i) Applicant eligibility

(ii) Consistency with State Economic Development Strategy

(ii) Activities are eligible and comply with national and state CDBG objectives

(iv) No legal actions will significantly effect the project

(v) Financial profile of the applicant community and/developer

(vi) Financial condition of the business or development entity

(vii) Amount of proposed EDI assistance is reasonable

(viii) Match funds meet program requirements

(ix) Assessment of success of the project

(x) Project will not result in relocation of the business from community to another, unless:

(a) the current host community certifies it cannot meet the needs of the business

(b) there is a plan to mitigate the potential for dislocation of the current workforce

If all pre-application requirements are met, OCD will invite the applicant, in writing within 15 working days, into the application phase. A Project Development Specialist will be assigned to work with the applicant. If the pre-application is rejected, the applicant will be notified in writing of the reasons for rejection. Pre-applications may be re-submitted after 30 days of notification.

(b) Application Phase: The applicant must submit a completed application within 120 days from invitation. The OCD Review Team will evaluate the project using the following criteria:

(i) Completeness

(ii) Ability to proceed

(iii) Quality of LMI jobs

(iv) Status of matching funds

(v) Level of risk

(vi) Community benefit

(vii) Reasonableness of EDI assistance

(viii) Citizen participation

(ix) Environmental review

The Review team will complete its review within 15 working days from the date of official application acceptance. The Team will recommend either: 1) Approval; 2) Request further information or documentation; or 3) Denial.

Upon receiving the recommendation from the Review Team, the OCD Director will forward the recommendation to the DECD Commissioner for final action. The Commissioner has the authority to ask for reconsideration by the Review Team. Within five (5) working days of review completion OCD will notify applicants of the status of their application. Applicants approved for funding will begin the process of contracting with OCD. If an application requires further information or documentation, the applicant may re-submit the amended application at any time.

Applications denied by OCD may not be re-submitted prior to 30 working days from notification and only after discussion between the applicant, Project Development Specialist, the OCD Technical Assistance Director or Program Manager.

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides funds to assist businesses to create or retain jobs for low and moderate-income persons. The Business Assistance program will provide either loans, grants or a combination of each to meet the infrastructure, capital equipment and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories;

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of BA expenditures must be taken by persons of low and moderate income.

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

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA loan or grant to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance.

(b) Financing Plan: The application shall present a complete financing plan for a project. The financing necessary to support the total project cost must be documented with binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will loan or grant to the business identified in the BA application. The loan or grant must be provided under the terms stated in a Business Assistance Letter of Commitment and the contract between DECD and the local government.

(d) Repayment Terms: Terms must be based on the business’ maximum capacity for principle and interest payments as documented in their pro formas and reviewed by DECD or its designee as appropriate to remain profitable.

(e) Maximum Business Assistance Grant Amount: $400,000

(f) Exclusions: Communities will be eligible to receive either Economic Development Infrastructure (EDI) or Business Assistance funds, but not both for the same project.

3. Eligible Activities: Eligible activities to be carried out with BA funds include acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures, capital equipment and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through a cash injection. Other substantial participation may substitute for a cash equity as determined by the Director.

(e) BA Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed loan recipient presents collateral appropriate to secure the BA loan and indicates willingness to enter into security agreements.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's current and future economic development will be evaluated.

(k) Community Financial Commitment/Match: The community must demonstrate a vested financial interest in the development project. The program’s goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

(a) Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee appointed by the Director of the Office of Business Development.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the Director of OBD for awards.

F. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate income objective as described below:

(i) at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons,

(ii) at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households, or

(iii) the IFP expenditures reduce the development costs for new mulit-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households.

(b) Complete the required IFP appication materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility inmprovements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State wil maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through is Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommed the loan terms and interest rates to the Director of the OCD. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING

A. PROJECT DEVELOPMENT PHASE PLANNING GRANTS

The Project Development Phase Planning Grant Program enables communities to gather, analyze, and provide information required by the Project Development Phase process.

1. Threshold Criteria:

(a) Eligible Applicants: All communities invited into the Project Development Phase for a CDBG Program except for the Community Planning Grant, Housing Assessment Planning Grant and Development Fund Programs.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Project Development Phase requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule for completion.

(d) Federal and State Certifications: Communities applying for Project Development Phase Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Project Development Phase Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Project Development Phase requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Project Development Phase Planning Grants will be awarded on an as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff.

4. Maximum Grant Award : $2,500

B. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: Community Planning Program funds will be distributed through an annual grant application selection process.

Eligible Activities: CPG funds may be used for planning only activities that include studies, analysis, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific projects are not eligible.

Project Benefit: The program activities must meet one of the CDBG Program's national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low and moderate-income persons, or prevent or eliminate slum or blighting conditions.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Community Planning program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum CPG Grant Amount: $10,000.

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

Priority for funding will be given to the following categories in the numbers indicated: Public Facilities and Public Infrastructure (4), Economic Development (3) and Tourism Opportunities (3).

Phase I Application: The maximum application length is six pages. The application deadline is February 16, 2001.

Each application will be rated in relation to all others. A minimum of 80 points from the Problem Statement, Development of Strategy, Citizen Participation and Project Leverage is required for consideration to be invited into the Project Development Phase.

(a) Problem Statement (40 points): A description of the problems, how they were identified, the impact on the community and on LMI persons or slum/blighting conditions.

(b) Development of Strategy (40 points): A description of the tasks proposed to solve your community's problems. Description of how the project will address a CDBG national objective. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (10 points): A description of other resources (local, state, federal, private) that will be contributed to the project.

(d) Citizen Participation (10 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue.

C. HOUSING ASSESSMENT PLANNING GRANTS

The Housing Assessment Planning Grant (HAPG) Program provides funding to communities or community partnerships to study their housing problems. Planning funds will enable communities to develop housing strategies that may be implemented with future CDBG funds. From program year 2001 and forward, housing assistance grant awards will be made to HAPG recipients or communities completing similar housing planning programs.

1. Threshold Criteria and Certifications: Housing Assessment Planning Grant funds will be distributed through an annual application selection process.

Eligible Activities: HAPG funds will be used to conduct a comprehensive study of housing issues for the community. The study will cover issues such as: number and age of units, condition, energy considerations, affordability, occupancy rates, need for new construction, rehabilitation, code enforcement, elderly, assisted living, special needs housing and financial resources to address housing needs. Engineering, architectural and design costs related to specific activities are not eligible.

Project Benefit: The proposed activities must meet one of the CDBG Program's national objectives - providing benefit to low and moderate-income persons, or preventing or eliminating slum or blighting influences.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2001 Housing Assessment Planning program, communities that received CDBG grants in or prior to 1997 must have closed their grants prior to application. Communities that received CDBG grants in 1998 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 1999 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum HAPG Grant Amount: $15,000.

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

Phase I Application: The maximum application length is four (4) pages. The application deadline is February 16, 2001.

Each application will be evaluated by the OCD Review Team based on the criteria listed. The Review Team will gather information for the applicant to include: percent of poverty, degree of substandard housing, rent-burdened households and affordability index. This information will be obtained from census data, the Maine State Housing Authority and the State Planning Office.

The application will include a brief description of the housing problems of the community, how these were identified, public participation in determining housing issues and why the community is interested in addressing its housing problems.

(a) Problem Statement: A description of the problems, how they were identified, and their impact on the community.

(b) Development of Strategy: A description of the tasks associated with formulating a solution for your community's housing problems. Description of how the project will address a CDBG national objective.

(c) Citizen Participation: Description of how citizens, community groups and others were involved in the identification of the problem and the development of an application.

Successful applicants will be invited into the project development phase process. Upon completion of the housing study, applicants interested in implementing the action steps of their housing plan will submit a letter of intent to request Housing Assistance grant funds along with this housing study and other required information. The housing study will be reviewed by OCD prior to the 2002 CDBG program. The review will determine the communities selected for invitation into the project development phase of the 2002 Housing Assistance grant program.

D. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides selected communities with funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program and outreach to communities.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Local governments receiving grants as a result of the 2001 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2001 CDBG program, or added to the available monies for the 2001 or 2002 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2001 CDBG program or added to the available monies for the 2001 or 2002 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2000 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2001 CDBG program or added to the available monies for the 2001 or 2002 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 2001 competitions but did not receive funding and the possibility of holding additional competitions during the 2001 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2001 Program Statement.

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.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 2001 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2001 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The amendment process will be guided by the State of Maine's Administrative Procedure Act.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

AARON SHAPIRO, PROGRAM MANAGER

OFFICE OF COMMUNITY DEVELOPMENT

33 STONE STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 287-8476

TTY (207) 287-2656

AMENDED:

April 2, 2001

19-498 Chapter 20, Community Development Block Grant Program

2001 Program Statement 54

Chapter 21 Regional Economic Development Assistance Fund

Code Me. R. 19-498 Ch. 21 Rules for the Regional Economic Development Assistance Fund {#sec-19-498-ch.-21 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 21}

Summary: This chapter outlines the procedures and criteria governing the Regional Economic Development Assistance Fund.

Section 1. Purpose and Definitions

A. Purpose

The Regional Economic Development Assistance Fund is to provide funding to develop effective local and regional economic development programs. The fund is to award start-up operating assistance to non-profit local or regional community based organizations that provide economic development programs to the communities served. The fund is designed to assist the formation of economic development organizations and programs from areas of the state that have high unemployment, low per capita income, economies that are dependent on mature and dominant industries, or high poverty rates. The purpose of the rule is to describe the criteria and proposal process for applications to the fund.

B Definitions

Commissioner: “Commissioner” shall mean the Commissioner of the Department.

Community Based Organization: “Community Based Organization” shall mean a non-profit organization that serves more than one municipality, the constituents of which are the communities it serves.

Department: “Department” shall mean the Department of Economic and Community Development.

Fund: “Fund” shall mean the Regional Economic Development Assistance Fund established in 5 MSRA § 13073-A.

Grantee: “Grantee” shall mean an organization awarded a grant from the fund.

Grant Selection Committee: “Grant Selection Committee” shall mean a committee designated by the commissioner to review requests for proposals and present recommendations to the commissioner for funding.

Matching Funds. “Matching Funds” shall mean money raised locally to match grant award. Other state or federal funds are not eligible to meet match requirement. Match requirement is one to one.

Report: “Report” shall mean a written evaluation of grant funds expended, uses and outcomes of those uses by the grantee.

Start-up Program. “Start-up Program” shall mean a new or early stage development program or organization to promote business development, tourism development and/or community development.

Section 2. Application Process

The Department shall issue a request for proposal (RFP) for grant applications by public notice placed in 3 Maine newspapers of general circulation for 3 days. All proposals will be reviewed by the Grant Selections Committee and will be awarded on a competitive basis. Competitive criteria for the Grant Selections Committee’s evaluation of proposals consistent with this rule will be set forth in the RFP. The Grant Selection Committee will make recommendations to the Commissioner. Final decision on Grantees will be made by the Commissioner. The Department shall notify Grantees of the Commissioners decision. Award decisions may be appealed to the Director of the Bureau of General Services under 18-544 CMR 120, Rules for Appeal of Contract and Grant Awards.

Section 3. Criteria for Eligibility:

1. Community Based Organizations are eligible for Start-up Programs that develop the organization’s operational capacity to deliver business development, community development and/or tourism development programs.

2. A detailed budget must be included with letters of commitment to meet the required Matching Funds, which may be cash or in kind.

3. All proposals must include measurable outcomes as to how the funds are proposed to be used with a time-table for implementing the program.

4. Moneys awarded from the Fund cannot supplant existing funding.

5. Proposals must include a viable plan for operating the program five years after the grant funding period.

6. Proposal must show a demonstrated need for funding to provide Start-up Programs to economically distressed regions or communities;

7. Preference will be given to proposals from areas of the state that meet at least one of the following criteria:

 serve labor market areas with unemployment at or above the State labor market average;

 serve counties with per capita income at or below the state average;

 serve areas whose county poverty rate is at or above the state average; and/or

 identified as host communities by the Mature and Dominant Industries Study commissioned by the Department in 1998.

Funds must be used to develop organizational capacity to meet the organization’s goals and objectives. Funds cannot be used for business attraction marketing, small business or micro-enterprise technical assistance, or tourism promotion.

Grants will be awarded over a two year period, with 2/3’s of the total grant provided in the first year and the remaining 1/3 granted in the second year. Grants must be matched on a one to one basis. Maximum grant award will be $100,000 and minimum grant award will be $50,000. Grants are for operating funds and may not be used to supplant existing funds. Second year funding is contingent upon grantee meeting performance standards. Grantees must submit an annual Report detailing the results of the program to be eligible for the remaining funds. Grantees must submit a Report at the end of the grant period detailing the program outcomes achieved as a result of the grant.

History

• STATUTORY AUTHORITY: 5 MRSA §13073-A.
• EFFECTIVE DATE: November 1, 2000
• EFFECTIVE DATE: 14-498 Chapter 21 page 3

Chapter 22 Riverfront Community Development Bond Program: 2008 Final Program Rule

Code Me. R. 19-498 Ch. 22 Riverfront Community Development Bond Program Rules {#sec-19-498-ch.-22 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 22}

Summary Page 3

Basis Statement Page 3

§1 Definitions Page 3

§2 Eligible Uses Page 5

§3 Ineligible Uses Page 5

§4 Eligible Project Sites Page 6

§5 Prohibition of Multiple Grant Awards Page 6

§6 Matching Funds Requirements Page 7

§7 Maximum Fund Grant Awards Page 7

§8 Application Process Page 7

§9 Selection Process Page 8

§10 Scoring Criteria Page 8

§11 Project Development Phase Page 9

§12 Applicability of State Laws Page 9

§13 Waiver of Rule Page 9

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 22 RIVERFRONT COMMUNITY DEVELOPMENT BOND PROGRAM RULES

Summary

These rules set forth allowable activities for the Riverfront Community Development Bond program (the Fund), definitions, prioritization of allowable projects, the process for determining project eligibility and selection process for financial assistance. In accordance with Title 5, chapter 375, subchapter 2-A the Department of Economic and Community Development (DECD) will hold a public hearing regarding the development of these rules.

Basis Statement

The Riverfront Community Development Bond Program, established under 5 MRSA §13083-T and referred to in this section as "the Fund" is established within the Department of Economic and Community Development (DECD) to assist and encourage communities along the State's rivers to revitalize their riverfronts in an environmentally sustainable manner and to promote river-oriented community development and enhancement projects. The DECD shall administer the program in conjunction with the Maine Municipal Bond Bank (MMBB) to provide funding for the rehabilitation, revitalization and enhancement of riverfront communities and river ecosystems in the State.

§ 1. Definitions

As used in these rules, unless the context otherwise indicates, the following terms have the following meanings:

Bank: “Bank” shall mean the Maine Municipal Bond Bank.

Comprehensive Plan: “Comprehensive Plan” shall mean a plan that is determined by the Executive Department, State Planning Office to be consistent with 30-A MRSA §4326 subsections 1 to 4 and that has been adopted by the municipality.

Department: “Department” shall mean the Department of Economic and Community Development.

Downtown: “Downtown shall mean the central business district of a community that serves as the center for socioeconomic interaction in the community and is characterized by a cohesive core of commercial and mixed-use buildings, often interspersed with civic, religious and residential buildings and public spaces, typically arranged along a main street and intersecting side streets, walkable and served by public infrastructure; or an area identified as a downtown in a comprehensive plan adopted pursuant to chapter 187, subchapter II.

Eligible Applicant: “Eligible Applicant” shall mean a Maine town, city or plantation located on a Maine River as identified in Number 8 below; further to be considered an “Eligible Applicant” the community must have received written approval from the Department that the community’s Letter of Intent with attached letter of sponsorship from a State Agency, was received, by the stated due date. Multiple eligible applicants may join together to submit a multi-jurisdictional application providing that each benefitting community is located on a Maine River.

Fund: “Fund” shall mean the Riverfront Community Development Bond.

Letter of Intent: “Letter of Intent” shall mean a form that is provided by the Department to all potential applicants to the Fund and which must be completed and returned to the Department by the stated due date established by the Panel. All Letters of Intent must comply with §8(1)(a-c) of this Rule.

Maine River: “Maine River” shall mean one of the following Maine recognized rivers as identified in Title 38, Chapter 3, Subchapter 1, Article 4-A, §467 that are in the river basins listed below having a drainage area greater than 100 square miles: Androscoggin River Basin: Androscoggin River, Little Androscoggin River, Cupsuptic River, Kennebago River, Rapid River, Magalloway River, Bear River, Sabattus River, Webb River, Swift River, Nezinscot River, Wild River; Dennys River Basin; Dennys River; East Machias River Basin; East Machias River; Kennebec River Basin: Kennebec River, Carrabassett River, Dead River, Moose River, Sandy River, Sebasticook River; Machias River Basin; Machias River; Medomak River Basin; Medomak River; Mousam River Basin; Mousam River; Narraguagus River Basin; Narraguagus River; Penobscot River Basin: Penobscot River, Seboeis River, Stillwater River, Mattawamkeag River, Piscataquis River, Pleasant River, Passadumkeag River; Pleasant River Basin: Pleasant River; Eastern Little River; Presumpscot River Basin: Presumpscot River, Crooked River; Narraguagus River Basin; Narraguagus River; Royal River Basin; Royal River; Saco River Basin: Saco River, Little Ossipee River, Ossipee River; St. Croix River Basin; St. Croix River; St. George River Basin; St. George River; St. John River Basin: St. John River, Allagash River, Aroostook River, Little Machias River, Little Madawaska River, Machias River, Fish River, Meduxnekeag River, Big Black River; Salmon Falls River Basin; Salmon Falls River; Sheepscot River Basin; Sheepscot River; Union River Basin; Union River. Communities wishing to apply for a project located on a river not listed above must receive permission from DECD prior to the submission of the Letter of Intent.

Panel: The “Panel” shall mean the Riverfront Community Development Review Panel, established to evaluate proposals and determine funding under the program. The Panel will consist of:

a. The Commissioner of Economic and Community Development or designee;

b. The Commissioner of Conservation or designee;

c. The Director of the State Planning Office within the Executive Department or designee; and

d. Four members of the public, one with expertise in economic and community development, one with expertise in environmental conservation, one with expertise in tourism and ecotourism development and promotion and one with expertise in park and trail design and development. Two of these members are appointed by the President of the Senate and two by the Speaker of the House.

Project: The "Project" shall mean the scope of work for which financial assistance is sought by a municipality from the fund as well as all work critical to the completion of the project which is funded by other sources.

Project Site: The “Project Site” is the location of the work to be performed with assistance from the Fund or other sources and must always take place on a Maine River.

State Agency: “State Agency” shall mean one of the following Maine State Agencies which may sponsor a Riverfront Community Development Bond application for an eligible applicant: Maine Department of Conservation, Maine Department of Agriculture, Maine Department of Economic & Community Development, Maine Department of Environmental Protection, Maine Department of Inland Fisheries and Wildlife, Maine Department of Marine Resources, Maine Housing, Maine State Planning Office, Maine Department of Transportation, Maine Historic Preservation Commission, Maine Arts Commission and Bureau of General Services. A letter of sponsorship does not influence project merit or need determination.

§ 2. Eligible Uses

Eligible uses of the Riverfront Community Development Bond (the Fund) are set forth in this section. Activities may include but are not limited to: acquisition, demolition, site work, design, construction, and renovations in support of the following project types:

Rehabilitation of run-down or abandoned buildings and related sites, such as former mills, warehouses or other commercial or industrial facilities;

Restoration and improvement of habitat for fish and wildlife;

Development of public access points for boating and fishing;

Creation of riverfront parks, walking trails and other recreational amenities;

Development of facilities in support of the arts, local agriculture and crafts relating to furthering the Creative Economy along Maine’s Rivers.

§ 3. Ineligible Uses

Ineligible uses of the Riverfront Community Development Bond (the Fund) are set forth in this section. The following activities may not be funded by the Riverfront Community Development Bond (the Fund):

Construction or repair of bridges or dams, with the exception of the construction or repair of bridges for the primary purpose of walking, or bicycling and is required for walking or bicycling trail connectivity;

Planning and Feasibility Studies;

Any work related to municipal water, sewer or road projects;

Improvements to private residences;

Construction of parking garages or decks of any type;

Golf Courses;

Marinas;

On-going maintenance of existing buildings or facilities;

Program administration, salaries, lobbying and related expenditures;

Repayment of existing debt;

Supplanting loan or grant funds from other state or federal programs such as but not limited to, Rural Development, CDBG, EDA, EPA or revenue bonds already approved by the municipality.

Any project that damages a river or its riparian habitat or that violates any state or federal environmental laws or regulations; and

A project otherwise required by any regulatory license of permit condition or any form of mandated mitigation or remediation activity.

§ 4. Eligible Project Sites

To be eligible to receive assistance from the Fund ownership of all Project Sites must be clearly established at the time of submission of the Letter of Intent in one of the following ways:

Municipally Owned;

Owned by a recognized not-for-profit organization such as a 501(C)(3) and designated for a public use;

Secured by a minimum 75 year lease for a public use, unless otherwise expressly covered under an existing state statute;

In the case of assistance to run-down or abandoned buildings such as former mills, warehouses or other commercial or industrial facilities, the property may be privately owned if it is located in a defined downtown area or another area on a Maine River that is part of a growth area designated in a Comprehensive Plan adopted by the municipality and approved by the State Planning Office under the Growth Management Act, and so long as a public benefit such as provision of municipal recreational opportunities, affordable housing, public open space or access or is realized as a long-term benefit of the project.

§ 5. Prohibition on Multiple Grant Awards

Eligible applicants for the Fund as defined in §1(5) of this Rule may not apply for, or benefit through a multi-jurisdictional application from more than one grant unless it is determined by the Department that there is insufficient interest in the program after the initial application due date.

§ 6. Matching Funds Requirements

All applicants must certify that they will provide at least two dollars in matching funds for each one dollar expended from the Fund. This is referred to as a 2 to 1 match. The following requirements apply to all matching funds:

A minimum 75% of all matching funds must be in new, readily available cash commitments to be expended on the Project;

A maximum of 25% of all matching funds may be in the form of firmly documented in-kind contributions or funds expended on the Project during the 12 months prior to the date of application submission. All non-cash match must directly relate to the Project for which assistance from the Fund is sought;

The costs associated with the purchase of property on which the Project will take place, or the value of donated non-public property on which the Project will take place may be counted as cash commitments.

Matching funds may be provided by state, federal, local or private sources.

§ 7. Maximum Fund Grant Awards

The maximum Fund grant award will be $750,000.

§ 8. Application Process

The Department will conduct an application process consisting of the following steps:

Submission of a Letter of Intent from all interested applicants. Submitted with the Letter of Intent must be a letter of sponsorship from a State Agency as defined in §1(12) of this Rule. A completed Letter of Intent must be received by the Department no later than the announced due date set by the Panel. The Letter of Intent must include the following:

a. Demonstrate the capacity to undertake the project with a reasonable prospect of bringing it to a successful conclusion. In assessing an applicant's ability to meet the requirements of this paragraph, the panel may consider all relevant factors, including but not limited to the applicant's level of debt; fund-raising ability; past economic and community development activities; grants from federal, state or local sources; previous environmental conservation, restoration or enhancement activity; organizational history; scope of economic or environmental vision; and evidence of success in previous efforts.

A general description of the proposed project, projected project timeline, and design work completed to date.

Identification of anticipated sources of matching funds and description of the timeframe for final commitment.

In order to continue in the process an eligible applicant must receive written approval from the Department. Applicants deemed by the Department to have an incomplete or non-compliant Letter of Intent will receive written confirmation of the fact and will not continue in the competition;

All eligible applicants wishing to do so must prepare and submit a full application and required attachment to the Department no later than the announced due date;

Incomplete or non-compliant applications will be rejected by the Department.

§ 9. Selection Process

The selection process shall consist of the following steps:

Department staff shall undertake the initial threshold review of applications;

A subcommittee appointed by the panel to score applications shall review and determine the final score of the proposals;

A subcommittee appointed by the panel to nominate finalists shall review all of the applications, identify issues for full review and discussion by the Panel and recommend finalists to the full Panel for detailed review and consideration;

The Panel shall review all applications submitted, select finalists and allocate funding.

§ 10. Scoring Criteria

The Panel will use the following scoring criteria and point totals for making awards:

The economic significance of the proposed project to the immediate vicinity and to the State as a whole: 10 points

The level of compatibility with clean and healthy river ecosystems: 15 points

The value of the proposed project with respect to downtown revitalization: 10 points

The value of the proposed project with respect to environmental protection and ecological restoration: 10 points

The value of the proposed project with respect to recreational uses: 10 points;

The degree of community support for the proposed investment: 15 points

The extent to which the proposed project involves partnerships and meets multiple criteria for benefits: 15 points

In addition to evaluating the proposals using the scoring system established above, the panel shall consider the following criteria and point totals in reviewing a proposal:

The level to which a proposal supports the open space or recreation objectives, or both, of a local comprehensive plan: 3 points

The extent to which a project is consistent with an adopted comprehensive plan that meets the standards of the laws governing growth management pursuant to Title 30-A, chapter 187: 3 points

The current and anticipated demand for use and diversity of uses of the site: 3 points

The local and regional community planning and support for river protection, enhancement and restoration: 3 points

Any additional benefits that contribute to scenic landscape values, including the character of the town or region in which the project is situated, the rehabilitation or renovation of riverfront mill and other buildings and the ability to secure public access for conservation, recreation, wildlife and education uses: 3 points

§ 11. Project Development Phase

Following notification of funding by the Panel a specialist from the Department will be assigned by the Department to work with all successful applicants. The specialist will assist the community in the Project Development Phase consisting of the following steps:

Providing the Department with written documentation to satisfy the requirements of MRSA Title 30-A, section 5203;

Documenting compliance with all applicable local, state and federal environmental laws, requirements and permits;

For all applicable projects to be undertaken in floodplains or flood prone areas, documentation of participation in the National Flood Insurance Program, in good standing, with an up to date floodplain management ordinance in effect. Pursuant to Executive Order 11988, all Fund expenditures must comply with FEMA requirements.

Submission of plans and specifications and other documents required by the Department;

Completion of contract documents;

Successful applicants have a maximum six month period after notification of funding to complete the Project Development Phase. Failure to meet this timeframe may result in the notification of funding being revoked.

§ 12. Applicability of State Laws

All state laws, rules and regulations will apply to Projects receiving assistance from the Fund.

§ 13. Waiver of Rule

The Department may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial. Any requests for waiver of the rule shall be made prior to the execution of a grant agreement.

FOR MORE INFORMATION OR TO REQUEST THIS DOCUMENT IN AN ALTERNATIVE FORMAT PLEASE CONTACT:

MICHAEL D. BARAN, ACTING DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE, 04333-0059

TELEPHONE (207) 624-7484

TTY 1-800-437-1220

mike.baran@maine.gov

www.meocd.org

EFFECTIVE DATE: August 25, 2008 – filing 2008-371

2

RCDB

“Healthy Rivers Equal Healthy Communities”

Chapter 23 Communities for Maine's Future Bond Program Rules

Code Me. R. 19-498 Ch. 23 - Communities for Maine’s Future Bond Program Rules {#sec-19-498-ch.-23 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 23}

Summary Page 3

Basis Statement Page 3

§1 Definitions Page 3

§2 Eligible Uses Page 4

§3 Ineligible Uses Page 5

§4 Eligible Project Sites Page 6

§5 Prohibition of Multiple Grant Awards Page 6

§6 Matching Funds Requirements Page 6

§7 Minimum and Maximum Fund Grant Awards Page 7

§8 Application Process Page 7

§9 Selection Process Page 8

§10 Scoring Criteria Page 8

§11 Project Development Phase Page 9

§12 Applicability of State Laws Page 10

§13 Waiver of Rule Page 10

19-498 CMR - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 23 - COMMUNITIES FOR MAINE’S FUTURE BOND PROGRAM RULES

Summary

These rules set forth allowable activities for the Communities for Maine’s Future Bond Program (the Fund), definitions, prioritization of allowable projects, the process for determining project eligibility and selection process for financial assistance. In accordance with Title 5, chapter 375, subchapter 2-A the Department of Economic and Community Development (DECD) held a public hearing regarding the development of these rules on March 16, 2011.

Basis Statement

The Communities For Maine’s Future Bond Program, established under 5 M.R.S.A. §13056-D and referred to in this section as "the Fund" is established within the Department of Economic and Community Development (DECD). DECD shall administer the program to provide funding to eligible Maine communities for downtown or village center community infrastructure projects which promote sustainable development.

§ 1. Definitions

As used in these rules, unless the context otherwise indicates, the following terms have the following meanings:

Comprehensive Plan: “Comprehensive Plan” shall mean a plan that is determined by the Executive Department, State Planning Office to be consistent with 30-A M.R.S.A. §4326 subsections 1 to 4 and that it has been adopted by the municipality.

Department: “Department” shall mean the Department of Economic and Community Development.

Downtown: “Downtown” shall mean the central business district of a community that serves as the center for socioeconomic interaction in the community and is characterized by a cohesive core of commercial and mixed-use buildings, often interspersed with civic, religious and residential buildings and public spaces, typically arranged along a main street and intersecting side streets, walkable and served by public infrastructure; or an area identified as a downtown in a comprehensive plan adopted pursuant to chapter 187, subchapter II.

Downtown Plan: “Downtown Plan” shall mean a comprehensive downtown revitalization work plan adopted by the applicant community which includes a definition and a map of the downtown area.

Eligible Applicant: “Eligible Applicant” shall mean a Maine town or city which has a comprehensive plan consistent with the requirements of §1(1) above.

To be considered an “Eligible Applicant” the community must have received written approval from the Department that the community’s Letter of Intent was received by the stated due date. Multiple eligible applicants may join together to submit a multi-jurisdictional application.

Fund: “Fund” shall mean the Communities for Maine’s Future Program.

Letter of Intent: “Letter of Intent” shall mean a form that is provided by the Department to all potential applicants to the Fund and which must be completed and returned to the Department by the stated due date established by the Panel. All Letters of Intent must comply with §8(1)(a-c) of this Rule.

Panel: The “Panel” shall mean the Communities for Maine’s Future Review Panel, established to evaluate proposals and determine funding under the program. The Panel will consist of:

a. The Commissioner of Economic and Community Development or designee;

b. The Director of the Maine Historic Preservation Commission or designee;

c. The Director of the State Planning Office within the Executive Department or designee; and

d. Four members of the public, one with expertise in economic and community development, one with expertise in historic preservation, one with expertise in downtown revitalization and one with expertise in tourism development and promotion. Two of these members are appointed by the President of the Senate and two by the Speaker of the House.

Project: The "Project" shall mean the scope of work for which financial assistance is sought by a municipality from the fund as well as all work critical to the completion of the project which is funded by other sources.

Project Site: The “Project Site” is the location of the work to be performed with assistance from the Fund or other sources and must always take place in a designated downtown or village area.

Village Center: “Village Center” shall mean the central business district of a community that serves as the center for socioeconomic interaction in the community and is characterized by a cohesive core of commercial and mixed-use buildings, often interspersed with civic, religious and residential buildings and public spaces, typically arranged along a main street and intersecting side streets, walkable and served by public infrastructure; or an area identified as a village in a comprehensive plan adopted pursuant to chapter 187, subchapter II.

§ 2. Eligible Uses

Eligible uses of the Communities for Maine’s Future Program (the Fund) are set forth in this section. Activities must be expended in an eligible downtown or village center and may include but are not limited to: acquisition, demolition, site work, design, construction, and rehabilitation in support of the following project types:

Rehabilitation to buildings located in designated downtown and village center areas;

Streetscapes;

Creation of walking trails and other recreational amenities;

Development of facilities in support of the arts and culture, local agriculture and crafts relating to furthering the Creative Economy.

§ 3. Ineligible Uses

Ineligible uses of the Communities for Maine’s Future Program (the Fund) are set forth in this section. The following activities may not be funded by the Communities for Maine’s Future Program (the Fund):

Construction or removal of bridges or dams, with the exception of the construction or repair of bridges for the primary purpose of walking, or bicycling and is required for walking or bicycling trail connectivity;

Planning and Feasibility Studies;

Any work related to municipal water, sewer or road projects;

Improvements to private residences;

Construction of parking garages or decks of any type with the exception of those directly related to the support of transit-related activities;

Casinos or other Gambling Establishments;

Golf Courses;

Marinas;

On-going maintenance of existing buildings or facilities;

Program administration, salaries, lobbying and related expenditures;

Repayment of existing debt;

Supplanting loan or grant funds from other state or federal programs such as but not limited to, Rural Development, CDBG, EDA, EPA or revenue bonds already approved by the municipality.

Any project that violates any state or federal environmental laws or regulations; and

A project otherwise required by any regulatory license of permit condition or any form of mandated mitigation or remediation activity.

§ 4. Eligible Project Sites

To be eligible to receive assistance from the Fund ownership of all Project Sites must be clearly established at the time of submission of the Letter of Intent in one of the following ways:

Municipally owned or owned by a recognized not-for-profit organization such as a 501(C)(3) and designated for a public use;

Privately owned and secured by a minimum 75 year lease for a public use, unless otherwise expressly covered under an existing state statute;

Privately owned if it is located in a defined downtown or village center area that is part of a growth area designated in a Comprehensive Plan adopted by the municipality and approved by the State Planning Office under the Growth Management Act, and so long as a public benefit such as provision of municipal recreational opportunities, affordable housing, public open space or access or is realized as a long-term benefit of the project.

All project sites must be located in a designated downtown or village center which is defined in a local comprehensive downtown revitalization work plan adopted by the applicant community which includes a definition and a map of the downtown area.

§ 5. Prohibition on Multiple Grant Awards

Eligible applicants for the Fund as defined in §1(5) of this Rule may not apply for, or benefit through a multi-jurisdictional application from more than one grant unless it is determined by the Department that there is insufficient interest in the program after the initial application due date.

§ 6. Matching Funds Requirements

All applicants must certify that they will provide at least one dollar in matching funds for each one dollar expended from the Fund. This is referred to as a 1 to 1 match. The following requirements apply to all matching funds:

A minimum 70% of all matching funds must be in new, readily available cash commitments to be expended on the Project;

A maximum of 30% of all matching funds may be in the form of firmly documented in-kind contributions or funds expended on the Project during the 12 months prior to the date of application submission. All non-cash match must directly relate to the Project for which assistance from the Fund is sought;

The costs associated with the purchase of property on which the Project will take place, or the value of donated non-public property on which the Project will take place may be counted as cash commitments.

Matching funds may be provided by state, federal, local or private sources.

§ 7. Maximum and Minimum Fund Grant Awards

The minimum Fund grant award will be $25,000 and the maximum Fund grant award will be $400,000.

§ 8. Application Process

The Department will conduct an application process consisting of the following steps:

Submission of a Letter of Intent from all eligible applicants. A completed Letter of Intent must be received by the Department no later than the announced due date set by the Panel. The Letter of Intent must include the following:

a. Demonstrate the capacity to undertake the project with a reasonable prospect of bringing it to a successful conclusion. In assessing an applicant's ability to meet the requirements of this paragraph, the panel may consider all relevant factors, including but not limited to the applicant's level of debt; fund-raising ability; past economic and community development activities; grants from federal, state or local sources; previous historic preservation, rehabilitation or enhancement activity; organizational history; scope of economic or revitalization vision; and evidence of success in previous efforts.

A general description of the proposed project, projected project timeline, and design work completed to date.

Identification of anticipated sources of matching funds and description of the timeframe for final commitment.

Certification that the applicant’s comprehensive plan is determined by the Executive Department, State Planning Office to be consistent with 30-A M.R.S.A. §4326 subsections 1 to 4 and that it has been adopted by the municipality.

Submission of an comprehensive downtown revitalization work plan adopted by the applicant community which includes a definition and a map of the downtown area.

In order to continue in the process an eligible applicant must receive written approval from the Department. Applicants deemed by the Department to have an incomplete or non-compliant Letter of Intent will receive written confirmation of the fact and will not continue in the competition;

All eligible applicants wishing to do so must prepare and submit a full application and required attachment to the Department no later than the announced due date;

Incomplete or non-compliant applications will be rejected by the Department.

§ 9. Selection Process

The selection process shall consist of the following steps:

Department staff shall undertake the initial threshold review of applications;

The Panel shall review all applications, determine the final scores, select finalists and allocate funding.

§ 10. Scoring Criteria

The Panel will use the following scoring criteria and point totals for making awards:

The economic significance of the proposed project to the immediate vicinity and to the State as a whole: 15 points

The value of the proposed project with respect to historic preservation and rehabilitation and level of compatibility with historic community character: 15 points

The value of the proposed project with respect to downtown revitalization: 15 points

The value of the proposed project to encourage or accomplish sustainable, mixed-use, pedestrian-oriented or transit-oriented development: 5 points

The extent to which the proposed project meets or exceeds minimum energy efficiency standards, utilizes green building practices or materials, or both: 5 points

The value of the proposed project with respect to tourism promotion and development; 10 points

The degree of community support for the proposed investment: 10 points; and

The extent to which the proposed project involves partnerships and meets multiple criteria for benefits: 5 points

Related public funding sources supporting the project:

% which all firm commitments exceed minimum 100%:

Up to 15% – 1 point

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 5 points

In addition to evaluating the proposals using the scoring system established above, the Panel shall consider the following criteria and point totals in reviewing a proposal:

The level to which a proposal supports the open space or recreation objectives, or both, of a local comprehensive plan: 3 points

a. The extent to which a project is consistent with an adopted comprehensive plan that meets the standards of the laws governing growth management pursuant to Title 30-A, chapter 187: 1 point

The extent to which a project is consistent with a strategic plan for downtown or village center revitalization: 1 point

c. The extent to which a project is consistent with any relevant regional economic development plan or other relevant regional plan: 1 point

The current and anticipated demand for use and diversity of uses of the site: 3 points

Any additional benefits that contribute to the character of the town or region in which the project is situated, including the rehabilitation of mills and other significant buildings in the community: 3 points

The degree of collaboration with partners, both private and public, including nonprofit entities and private businesses and developers: 3 points

§ 11. Project Development Phase

Following notification of funding by the Panel a specialist from the Department will be assigned by the Department to work with all successful applicants. The specialist will assist the community in the Project Development Phase consisting of the following steps:

Providing the Department with written documentation to satisfy the requirements of M.R.S.A. Title 30-A, section 5203;

Documenting compliance with all applicable local, state and federal environmental laws, requirements and permits;

For all applicable projects to be undertaken in floodplains or flood prone areas, documentation of participation in the National Flood Insurance Program, in good standing, with an up to date floodplain management ordinance in effect. Pursuant to Executive Order 11988, all Fund expenditures must comply with FEMA requirements.

Submission of a letter from the Maine Historic Preservation Commission stating that the project will have no adverse affects and will be in full compliance.

Submission of plans, permits, specifications and other documents required by the Department;

Completion of contract documents;

Successful applicants have a maximum six month period after notification of funding to complete the Project Development Phase. Failure to meet this timeframe may result in the notification of funding being revoked.

§ 12. Applicability of State Laws

All state laws, rules and regulations will apply to Projects receiving assistance from the Fund.

§ 13. Waiver of Rule

The Department may waive any requirement of this rule, except to the extent that the requirement is mandated by the Act, in cases where deviation from the rule is insubstantial. Any requests for waiver of the rule shall be made prior to the execution of a grant agreement.

FOR MORE INFORMATION OR TO REQUEST THIS DOCUMENT IN AN ALTERNATIVE FORMAT PLEASE CONTACT:

MICHAEL D. BARAN, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE, 04333-0059

TELEPHONE (207) 624-7484

TTY 1-800-437-1220

mike.baran@maine.gov

www.meocd.org

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §13056-D
• EFFECTIVE DATE: April 19, 2011 – filing 2011-119
• EFFECTIVE DATE: 19-498 Chapter 23
• EFFECTIVE DATE: 2
• EFFECTIVE DATE: CFMF
• EFFECTIVE DATE: “Meeting Maine’s Downtown Challenge”

Chapter 30 Community Development Block Grant Program: 2002 Final Statement

Code Me. R. 19-498 Ch. 30 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-30 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 30}

2002 PROGRAM STATEMENT

Chapter 30 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 3

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. NOTICE – GRANT ADMINSTRATION REQUIREMENT 4

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 10

A. HOUSING ASSISTANCE GRANTS 10

B. PUBLIC FACILITIES GRANT PROGRAM 14

C. PUBLIC INFRASTRUCTURE GRANT/LOAN PROGRAM 17

D. PUBLIC SERVICE GRANTS 20

E. DOWNTOWN REVITALIZATION PROGRAM 23

F. DOWNTOWN INITIATIVE GRANT PROGRAM SET-ASIDE 26

G. URGENT NEED GRANTS 27

SECTION 3. ECONOMIC DEVELOPMENT 29

A. DEVELOPMENT FUND 29

B. REGIONAL ASSISTANCE FUND 32

C. MICRO-LOAN PROGRAM 34

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 36

E. BUSINESS ASSISTANCE PROGRAM 40

G. INTERIM FINANCE PROGRAM 45

SECTION 4. PLANNING 47

A. COMMUNITY PLANNING GRANTS 47

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS 49

C. TECHNICAL ASSISTANCE PROGRAM 50

D. SPECIAL PROJECTS MATCHING FUND 50

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME 51

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 51

B. PROGRAM INCOME 52

SECTION 6. APPEALS 53

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 54

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 30 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2002 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2002 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A. 13073. The 2002 CDBG program is developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums with program constituents and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings to solicit input prior to adopting this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of the three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons,

Preventing or eliminating slums or blights, or

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

are part of a long-range community strategy;

improve deteriorated residential and business districts and local economic

conditions,

provide the conditions and incentives for further public and private investment,

foster partnerships between groups of municipalities, state and federal entities,

multi-jurisdictional organizations and the private sector to address common

community and economic development problems, and

minimize development sprawl consistent with the State of Maine Growth

Management Act, and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2002 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories - Community Development, Economic Development and Planning.

1. Community Development

a. Housing Assistance Grants

b. Public Facility Grants

c. Public Infrastructure Grants/Loans

d. Public Service Grants

e. Downtown Revitalization Program

f. Downtown Initiative Grants

g. Urgent Need Grants

2. Economic Development

a. Development Fund

b. Regional Assistance Fund

c. Micro-Loan Program

d. Economic Development Infrastructure Program

e. Business Assistance Program

f. Regional Super Park Program

g. Interim Financing Program

h. Section 108 Loan Program (Contingent upon HUD approval)

Planning

a. Community Planning Grants

b. Project Development Phase Planning Grants

C. STATE ADMINISTRATION

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine's CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance to local governments and nonprofit program recipients.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston and Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINSTRATION REQUIREMENT

Beginning with the 2000 CDBG grant awards, communities must employ a certified grant administrator and/or rehabilitation technician (as employee or consultant) or send whoever will be administering their program to the next offered grant administrator training program. The CDBG Program Director must approve waivers of this requirement in writing.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00PM EST on the dates listed:

Housing Assistance…………………………………………………….February 22, 2002

Public Facilities…………………………………………………………...January 18, 2002

Public Infrastructure……………………………………………………..January 18, 2002

Public Service……………………………………………………………….….April 5, 2002

Downtown Revitalization…………………………………………….….February 8, 2002

Downtown Initiative……..…Limited to the Town of Lincoln, Beginning April, 2002

Urgent Need………………………………..…1st come basis beginning March 1, 2002

Development Fund………………………………………………………………….......Open

Regional Assistance Fund………………………………………………………….….Open

Micro-Loan………………………………………………………………………March 8, 2002

Economic Development Infrastructure……..….Ongoing beginning January 3, 2002

(official application acceptance, 1st Thursday of every month)

Business Assistance Program………………………………………………….….…Open

Regional Super Park…………………………………………….……..……August 2, 2002

Interim Financing Program…………………………………………………….…….…Open

Community Planning………………………………………………………….March 8, 2002

Project Development Phase Planning Grants……………………………….….…..Open

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2002 Program Budget

FY 2002 CDBG Budget

$17,062,000

Administration

441,240

Technical Assistance Administration

170,620

Regional Council Technical Assistance

145,140

Special Projects Matching Fund

100,000

1. Housing Assistance Grants

2,700,000

2. Public Infrastructure Grants/Loans

3,600,000

3. Public Facilities Grants

1,800,000

4. Public Service Grants

200,000

5. Urgent Need Grants

200,000

6. Downtown Revitalization Grants

800,000

7. Downtown Initiative Grant Set-Aside (Town of Lincoln)

400,000

8. Regional Super Park Program

1,000,000

9. Development Fund 1

10. Interim Financing Program

11. Economic Development Fund

5,000,000

Business Assistance

Economic Development Infrastructure

Regional Assistance Fund

12. Micro Loan Program

200,000

13. Community Planning

250,000

14. Project Development Phase Planning Grants

55,000

15. Section 108 Loan Program 2

1 Funds will not be allocated to the Development Fund Program for the 2002 Program; however, Development Fund Program repayments will be used to make DF awards during the 2002 Program Year. DF loan repayments are estimated to be $650,000 during this period.

2 If the DECD application to HUD for the Section 108 Loan Program is approved, the 2002 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS:

1. Federal and State Certifications for Local Governments:

All communities applying for CDBG funds must certify that they will:

minimize displacement and adhere to a locally adopted displacement policy in compliance with Section 104(d) of the Act;

take action to affirmatively further fair housing and comply with the provisions of the Civil Rights Acts of 1964 and 1968;

not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

establish a community development plan;

meet all required State and Federal public participation requirements;

comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

with the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, or elected official or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect to CDBG activities;

review the project proposed in the application to ensure it complies with the community's comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements apply to all programs:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), Economic Development Infrastructure (EDI), Business Assistance (BA) and Regional Assistance Fund (RAF) programs, units of general local government and unorganized territories may not apply for, or benefit from, more than one grant per program category in any grant year.

Communities participating in multi-jurisdictional applications may submit their own application for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance, and Public Infrastructure grant programs, units of general local government and unorganized territories that benefited from a 2001 award may not apply again in that specific program until the 2003 program. Public Infrastructure grantees with the exception of those in the streets/roads/sidewalks, parking, curbs and gutter category may apply for funds grants in consecutive years to complete the same project.

(c) Restriction of Grant Awards: OCD may restrict the award of grants to communities with outstanding audit or monitoring findings or a record of administrative misconduct.

(d) Grant Termination: OCD will terminate a community's grant if progress on

the project is not apparent within 6 months from the date of contract signing. The

CDBG Program Director may grant waivers for cause.

(e) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(f) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to Section 104(b)3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

(g) Repayment of Grant Funds: Recipients must repay to the State of Maine all funds expended if program benefits are not achieved.

(h) Changes in Title 30-A, Subsection 4349-A as amended by PL 776:

Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(i) Preference for Communities: In accordance with Title 30-A subsection 4349-A(3) OCD is required to give preference in the award of grants for capital investments not defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter over a municipality that does not obtain the certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of unorganized territories. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for Economic Development Infrastructure, Business Assistance, Development Fund, Regional Assistance Fund or Public Service grant programs on behalf of a collaboration of communities.

4. Scoring of Applications

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Final scores will be determined by dropping the lowest score assigned by a scoring team member and averaging the remaining scores and applying any applicable bonus points. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase. An invitation into the Project Development Phase or notification to complete a final application is not a guarantee of funding. Successful communities will receive an amount determined by the OCD for their project.

Project Development Phase & Final Application Project Development

(a) Project Planning: Details of the project including pre-engineering,

inspections, cost analysis, feasibility and/ or market studies.

(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.

(d) Project Eligibility: Verification that proposed activities are eligible under

the Act.

(e) Project Benefit: Verification that proposed activities meet one of the CDBG

Program national objectives.

(f) Environmental Review: Review of project for compliance with state

and federal environmental regulations.

Project Development Phase Timeframe for Completion and OCD Assistance

The goal of the Project Development Phase or final application is a grant contract for CDBG funds. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Communities not completing their Project Development Phase or final application within six months of receiving an invitation will forfeit their grant award. The CDBG Director may waive this requirement for extenuating circumstances.

SECTION 2. COMMUNITY DEVELOPMENT

HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low and moderate-income persons.

1. Special Threshold Criteria and Certifications: Housing Assistance Program funds will be distributed through an annual grant application selection process with two eligible funding categories, Housing Rehabilitation and Innovative Housing Projects. Applicants may only apply in one category.

Eligible Activities:

i) Eligible activities under Housing Rehabilitation are

rehabilitation of occupied or vacant single family or multi-

family housing units and Relocation Assistance.

ii) Eligible activities under Innovative Housing Projects include Acquisition, Alternative Housing, Code Enforcement, Conversion of Non-Residential Structures, Demolition, Down Payment Assistance, First Time Homebuyer’s Programs, Historic Preservation, Lead Based Paint Removal, New Housing Construction, Provision of Potable Water or Sewer Systems, Relocation Assistance, and Removal of Architectural Barriers and must be directly related to assisting or creating LMI residential housing units.

(b) Housing Assessment Planning Requirement: All communities

applying for 2002 Housing Assistance funds must have completed a

comprehensive housing assessment planning study within the past

five years. Communities with plans older than five years will be

permitted to demonstrate that their plan is under active

implementation and is still valid or has been updated within the past

five years.

(c) All communities applying for Housing Assistance funds must certify that they will:

(i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-c (1), (1A) and Section 1415-G in the construction of any new residential housing units;

(ii) provide a local match equivalent of 10 percent of the total grant award.

(iii) adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective 9/15/2000.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2002 Housing Assistance program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application due date. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application due date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 4) the job creation goals of a previous grant have not been fulfilled; or 3) special circumstances as determined and approved by the CDBG Program Director.

(b) Maximum Housing Assistance Grant Amount: $400,000

(c) Maximum Housing Assistance Program Costs: The amount of rehabilitation grants or loans available to participants in the Housing Rehabilitation Program will be no more than $15,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, serious code violations, foundation work, inadequate sewage disposal, lack of potable water, presence of asbestos, lead-based paint, radon, or other hazardous material, or accessibility modifications. Except for acquisition/relocation and those activities listed above, all other eligible activities under the Innovative Housing Projects are limited to a maximum of $20,000 per unit assisted.

(d) Maximum Administrative Costs: The Housing Rehabilitation Assistance Program allows expenditures for general and rehabilitation administration. The total general administration expenditures may not exceed 10% of the grant amount. However, the total expenditures for both general and rehab administration may not exceed $45,000 for programs completing up to thirty housing units. An additional $1,500 in rehabilitation administration will be allowed for each unit completed beyond thirty up to a maximum combined administration total of $60,000. Allowable administration expenditures for Innovative Housing Projects will be determined on a case-by-case basis, but will never be greater than those allowed in the Housing Rehabilitation Program.

(e) Section 8 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum 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.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is February 22, 2002. Applications must be accompanied by six (6) copies of a completed Housing Assessment Plan. Plans will be reviewed for content and consistency with OCD requirements prior to scoring. Housing Assessment Plans deemed incomplete or non-comprehensive will result in the application being removed from the scoring process.

Each application continuing in the scoring process will be scored in accordance with criteria set forth in Section H(4) of this Statement. At least 2 applications will be funded from each funding category as long as there are a sufficient number of qualified applications submitted.

Housing Rehabilitation

(a) Impact (1-3 points): A description of the number of and type of units to be rehabilitated, description of target area, how units were identified, results of inspections completed, past local rehabilitation efforts, and the impact of the present conditions on the community and/or region as it relates to LMI persons.

(b) Development of Strategy (1-3 points): A description of the plan proposed to implement a housing rehabilitation program, how emphasis will be placed on a community based approach, collaborative efforts to be utilized, and a summary of technical measures to be undertaken on units including energy conservation, correction of code violations, structural improvements, removal of hazardous materials, mechanical systems improvements, etc. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (1-3 points): A description of other resources (local, state, federal, private) that will be contributed to the project and their current funding status.

(d) Citizen Participation (1-3 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. Detail use of any media (newspapers, radio, TV, etc) to further public awareness.

Innovative Housing Projects

(a) Impact (1-3 points): A description of the specific housing problems to be addressed with HA funds, how the problems were identified, how these issues affect LMI persons in the community or region, and past local efforts involving housing projects.

(b) Development of Strategy (1-3 points): A description of the plan proposed to implement the housing project, how emphasis will be placed on a community based approach, collaborative efforts to be utilized, and a detailed summary of the activities. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (1-3 points): A description of other resources (local, state, federal, private) that will be contributed to the project and their current funding status.

(d) Citizen Participation (1-3 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation.

Detail use of any media (newspapers, radio, TV, etc) to further public awareness.

B. PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides funding for local public facility activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities Program funds will be distributed through an annual grant application 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.

Local Match: All communities applying for PF funds must certify that they will provide a local cash match of at least 20 percent of

the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc. contributed to the project.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific Public Facilities group, but cannot apply for activities from any other group.

3. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2002 Public Facilities program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application date. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Public Facilities Grant Amounts

Activity group Maximum Amount

Fire Stations $250,000

Community, child, senior and health centers, libraries

Sheltered workshops, Homeless shelters, Pier/wharf $250,000 $250,000

Removal of architectural barriers $100,000

(as a distinct, stand-alone project)

Historic Preservation $100,000

(as a distinct, stand-alone project)

Fire fighting equipment, Salt/sand storage shed

Transfer station, Parks and recreation facilities

Public works garage, Dams $ 50,000

Funding Restrictions: PF may not be used for the purpose of job creation or housing activities.

Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate project LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This “demonstration” must be made as part of the pre-application.

Requirement for Applications for Removal of Architectural Barriers as a Stand Alone Project: Projects seeking to assist any existing facility utilized for the conduct of general local government, or participate in any newly constructed public facility must meet the threshold of benefiting 51% or more low-to-moderate income persons.

Requirements for Applications for Historic Preservation as a Stand Alone Project: Applicants must submit with the pre-application a letter from the State Historic Preservation Officer endorsing the proposed project and certifying that the facility is currently on the National Register of Historic Places, or eligible for inclusion.

Priority for Public Facilities Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PF program funds. Lists of the service and specialized service center communities are available from the State Planning Office or OCD.

4. Selection Process: The selection process will consist of two phases: a pre- application phase and a final application/project development phase.

Pre-Application: The pre-application deadline is January 18, 2002. The pre-application will require the applicant to supply the following information:

Community, utility district and/or administrative agency information

Amount of grant request and summary of proposed use of funds

Specific health, safety, and community concerns to be addressed

Beneficiary Profile – from survey results or US Census

Municipal, and/or administrative agency financial information

Municipal tax structure and affect of project on rates (where applicable)

Specific conditions that warrant the project completion

How the project was identified and prioritized

Funding sources sought and/or secured for this project

Each pre-application will be reviewed and evaluated in relation to those of similar sized communities in its activity group and placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. The review team will recommend a list of projects to the OCD Director to proceed into the final application/development phase. At least one application will be funded from each activity group as long as there are qualified applications submitted in all categories.

C. PUBLIC INFRASTRUCTURE GRANT/LOAN PROGRAM

The Public Infrastructure Grant/Loan (PI) Program provides funding for local infrastructure activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Infrastructure Program funds will be distributed through an annual combination grant and loan application submission and review process.

(a) Eligible Activities: Eligible activities in the PI program are construction, acquisition, reconstruction, installation, relocation assistance associated with public projects, and infrastructure in support of new affordable housing construction.

(b) Local Match: All communities applying for PI funds must certify that they will provide a local cash match of at least 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc. contributed to the project.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within either Public Infrastructure groups, but cannot apply for activities from both.

3. Special Program Requirements:

Public Infrastructure Loan: The PI loan funds may be loaned directly to a unit of general local government or county; or provided as a grant to a

unit of general local government and loaned to a bona fide public or private utility or other approved entity. All loans must be provided under the terms stated in a PI Letter of Commitment and the contract between DECD and the local government or county.

Grant to Loan Ratio and Repayment Terms: All communities receiving PI funds will be funded through a ratio of sixty percent (60%) grant and forty percent (40%) loan of the total amount of CDBG assistance. Terms of loans will be a maximum of twenty (20) years at an interest rate not to exceed (4%). Final loan terms and rates of interest will be determined by the OCD based upon local financial capacity and affect on low/moderate income ratepayers. In cases of extreme hardship, the CDBG Program Director may waive the loan requirements in full or in part.

Past Performance: In order to be eligible to apply for the 2002 Public Infrastructure program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application date. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds by prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the CDBG Director.

Maximum Public Infrastructure Grant/Loan Amounts

Activity group Maximum Amount

Water system installation/improvements, Sewer system

installation/improvements, Water/sewer system hookups

Storm drainage, Utility infrastructure, Infrastructure

in support of new LMI affordable housing $400,000

Streets/roads/sidewalks, parking, curbs and gutters $100,000

Funding Restrictions: PI funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction and sewer/water system hookups, no housing activities may be assisted with PF & PI funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate project LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This “demonstration” must be made as part of the pre-application.

Priority for Public Infrastructure Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PI program funds. Lists of the service and specialized service center communities are available from the State Planning Office or OCD.

4. Selection Process: The selection process will consist of two phases: a pre- application phase and a final application/project development phase.

Pre-Application: The pre-application deadline is January 18, 2002. The pre-application will seek, at minimum, the following information:

Community, utility district and/or administrative agency information

Amount of grant/loan request and summary of proposed use of funds

Specific health, safety, and community concerns to be addressed

Beneficiary Profile – from survey results or US Census

Municipal, utility and/or administrative agency financial information

Utility rate structure and affect of project on rates (where applicable)

Municipal tax structure and affect of project on rates (where applicable)

Specific conditions that warrant the project completion

How the project was identified and prioritized

Funding sources sought and/or secured for this project

Each pre-application will be reviewed and evaluated in relation to those of similar sized communities in its activity group and placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. The review team will recommend a list of projects to the CDBG Director to proceed into the final application/development phase. At least one application will be funded from each activity group as long as there are qualified applications submitted in all categories.

D. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing. Structural changes such as construction, renovation or rehabilitation are not eligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in an area. The clientele of PSG projects are limited to:

(i) persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally low/moderate income 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 eligible Low and Moderate Income persons.

(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 local match equivalent to 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) Past Performance: In order to be eligible to apply for the 2002 Public Service program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application date. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Maximum Public Service Grant Amount: $50,000

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

Phase I Application: The maximum length of an application is six pages. The application deadline is April 5, 2002.

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

(a) Problem Statement (40 points):

Scope of Problem: (40 points) - Identification and description of the nature and magnitude of the problems to be addressed with PSG funds and the problems facing service providers as they address the issue.

(b) Proposed Solution (40 points):

(i) Project Description: (10 points) - Description of how PSG funds will be used to solve the problems. Include a project budget.

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

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

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

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings and other methods to solicit involvement of residents, local organizations and public officials. Describe how the application reflects citizen concern and beneficiary involvement.

(d) Commitment/Match (10 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments.

E. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to enable communities to implement comprehensive, integrated and innovative solutions to the problems facing their downtown districts. These community revitalization projects must be part of a strategy that targets downtown service and business districts and will lead to future public and private investment. Qualified applicant communities must have a downtown district meeting the definition of PL 776 enacted by the 119th legislature.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities, Public Infrastructure, Public Service, Housing Assistance, Micro Loan or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Local Match - All communities applying for Downtown Revitalization funds must certify that they will provide a local match equivalent to 20% of the total grant award.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to apply for the 2002 Downtown Revitalization program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application date. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

(b) Planning Requirements: Applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. Communities with plans older than 5 years will be permitted to demonstrate that their plans are under active implementation and the action plan remains valid. The proposed DR activities must be cited in the plan as recommended actions for downtown revitalization.

(c) Maximum Award: $400,000

(d) Bonus Points for Service and Specialized Center Communities Applicants will receive three bonus points if they have been identified by the State Planning Office as a service or specialized center community.

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

Phase I Application: The maximum application length is ten pages. The application deadline is February 8, 2002.

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

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

(a) Problem Statement (40 points):

(i) Scope of Problems (25 points) - Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

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

(b) Solution (40 points):

(i) Project Description (15 points) - Describe how funds will be used. Include a project budget.

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

(iii) Feasibility (15 points) - Identification of tasks, timetables and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points) - Identification and description of the process, descriptions of public meetings, hearings and other methods to solicit the involvement of residents, local organizations and public officials, and how the involvement contributed to this application.

(d) Commitment/Match (10 points): Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, and the status of those commitments.

(e) National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a target area survey or a declaration of slum/blight conditions must be submitted with the application.

F. DOWNTOWN INITIATIVE GRANT PROGRAM SET-ASIDE

The Downtown Initiative Grant Set-Aside Program (DIG) will provide funds to the Town of Lincoln to implement comprehensive, integrated and innovative solutions to the problems facing their economically and physically distressed downtown districts. These districts must be deemed consistant by OCD with the mapped areas identified in the Town’s Downtown Action Plan and meet the definition of PL 776 enacted by the 119th legislature.

Special Threshold Criteria and Certifications: Downtown Initiative Grant

Program funds will be distributed soley to the Town of Lincoln.

(a) Eligible activities include all those eligible under the Public Facilities, Public Infrastructure, Public Service, Housing Assistance, Micro Loan or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Local Match - A local match equivalent to 20% of the total grant award must be provided.

2. Special Program Requirements

(a) Past Performance: In order to be eligible to receive 2002 Downtown Initiative Grant assistance, the Town of Lincoln must comply with all past performance requirements set forth in Section E (2.) (a) of this Program Statement.

(b) Maximum Award: $400,000

c) National Objective: The Town of Lincoln must demonstrate that the project meets the National Objective of 1) benefiting low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a target area survey or a declaration of slum/blight conditions must be submitted with the application.

3. Selection Process: The Town of Lincoln must complete the two phases of the application process listed below:

Phase I Application: Submit a complete Downtown Revitalization

program application as required by OCD.

Project Development Phase: Submit all documents required under

the CDBG Project Development Phase.

G. URGENT NEED GRANTS

The Urgent Need Grant (UNG) Program provides funding to enable a community to address serious and immediate threats to health and welfare.

1. Special Threshold Criteria and Certifications:

(a) Project Eligibility: Pursuant to Section104 (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 the 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, previous or existing budgetary commitments, precludes it from assuming this project's additional financial expenditure; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a) Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UNG Amount: $100,000

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

Phase I Application: An UNG application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Urgent Need Grants will be made on a first-come first-served basis. Prior to consideration of a grant award, all UNG proposals must meet the four Threshold Criteria and the Special Program requirements. Project Development Phase applications must comply with the following:

(a) Project Planning: Details of the project including engineering, cost analysis, feasibility and structural analysis as necessary.

(b) Management Plan: Details of the structure and methods established by the community for program management.

(c) Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UNG funds will be available beginning March 1, 2002. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the CDBG Program Director's decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides gap funding to local governments to assist businesses to create or retain jobs for low and moderate-income persons. DF funds may not be used for refinancing of debt.

1. Threshold Criteria:

(a) At least 51% of the jobs created or retained as a result of DF expenditures proposed by the applicant must be taken by persons of low and moderate income.

(b) Jobs created/retained must be in the community applying for the DF; be new jobs to that community, and not be associated with any other branches of the assisted business in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for DF assistance.

(c) The targeted cost per job created or retained with DF funds is $10,000.

(d) Complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation. The Development Fund is gap financing.

(b) Financing Plan: The DF application shall present a financing plan for a project in which the DF loan comprises the lesser of $250,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(c) Maximum Grant Award: $250,000 per project.

DF Loan: The DF is provided as a grant to a unit of local government. The local government must use designated grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Commitment and the contract between DECD and the local government.

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 locational cost differentiations and the benefit derived from the assistance. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy and revitalization of downtown areas. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Eligible activities: Acquisition, relocation, demolition, clearance, construction, reconstruction, installation, rehabilitation and working capital.

(c) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(d) Financial Plan: The financing for the project must be in place and legally binding commitments must be submitted; the proposal must be structured to meet cash flow projections; and the project pro forma must be reviewed by an independent qualified financial professional. The financing plan must be complete with no unidentified uses of funds necessary to complete the project. Attorney fees and closing costs are the responsibility of the business, cannot be paid with DF loan proceeds and must be paid at the time of closing.

(e) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(f) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to execute security agreements. The targeted discount collateral coverage ratio is 1:1. In projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation.

Purchase money security interest is required on all machinery and equipment purchased with DF loan proceeds unless the purchase price exceeds the loan amount, in which case a pro-rated share interest will be held with any other lender(s).

(h) Benefit: The DF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(i) Cost: The number of permanent jobs created or retained as per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(ii) Community and Economic Development: The primary and secondary impacts of the DF project on the community's current and future economic development will be evaluated.

4. Approval Process

(a) Application: Applications may be submitted on an open basis. DECD staff will review the applications to determine if the threshold criteria have been met. DECD or its designee will conduct a credit analysis.

(b) DECD Review Committee Recommendations: The DECD Review Committee will review applications, staff reports, credit analysis and make one of the following decisions:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendation for resubmission; or,

(iv) rejection.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments to be used as leverage to obtain funds from Federal, State and private programs. RAF money can be used as match to obtain funds from: the Economic Development Administration (EDA); Economic Adjustment Assistance Program (Title IX); and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant and the Intermediary Relending Program (IRP) and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money into the State, and therefore, RAF cannot be used as match with the State's CDBG program or conventional lending institutions.

1. Threshold Criteria:

(a) be an eligible planning activity or a project with 51% of the jobs created or retained as a result of RAF expenditures proposed by the applicant are taken by persons of low and moderate income;

(c) be designated by the appropriate organization providing matching funds as eligible to receive funds; and

(d) complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: Provided the RAF application is successful, a contract will be executed between DECD and the local government to reserve funds for the applicant. A Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds.

(b) Limit on Amount of RAF assistance: Each Economic Development District will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the CDBG Program Director`. The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee's assignee with the approval of DECD.

(d) Community Financial Commitment: Wherever appropriate the community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds.

3. Selection Process: The RAF project will be evaluated to determine its viability as a CDBG proposal. The following considerations will be the focus of the Impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case by case basis. The increase in local tax dollars resulting from the project and overall project cost effectiveness will be evaluated.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community's current and future economic development will be evaluated.

(f) Local Commitment/Match: The commitment of local funds to the project. Additional consideration will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Once the applicant has submitted a pre-application to the appropriate agency (such as EDA) and is working toward a full application, it may submit a RAF application to DECD. DECD staff will review RAF applications on a first-come first-served basis to determine if the threshold criteria and special program requirements have been met. Successful applicants will be invited to continue to the project development phase. A project development analysis will be conducted by DECD or its designee for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the CDBG Program Director for awards:

(i) approval of requested amount with requested or different terms

(ii) approval of lesser amount with requested or different terms; or,

(iii) rejection.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate-income persons.

1. Threshold Criteria and Certifications: Micro Loan Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting businesses.

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2002 Micro-Loan program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application date. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application date. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the CDBG Program Director.

(b) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be withdrawn.

(c) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit and non-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(d) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

(e) Micro-Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program (MLP) eligible loans will be able to capitalize a MLP revolving loan fund with their MLP loan repayments. Grantees that do not close MLP loans to three or more different businesses and do not demonstrate demand for additional eligible loans will return MLP repayments to DECD.

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

Phase I Application: The maximum length of an application is six pages. The application deadline is March 8, 2002.

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

(a) Problem Statement (35 points):

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

(b) Proposed Solution (45 points):

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

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

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

(c) Citizen Participation (20 points):

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

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

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

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

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on an ongoing basis beginning January 3, 2002. The official application acceptance will be the 1st Thursday of each month.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons. Eligibility of projects that are not in support of a specific business, such as the development of an industrial park or incubator building, will be determined on a case-by-case basis by OCD.

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

(c) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of EDI expenditures must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the EDI, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for EDI assistance.

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

(e) Applicant Surety: If the proposed EDI activity is not in support of a specific business, prior to contracting with OCD, the applicant community must have in place a surety instrument equal to the amount of the EDI award.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2002 Economic Development Infrastructure program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Director.

Maximum Economic Development Infrastructure Award Amount: $400,000. In no case will the amount of EDI assistance be greater than 50% of the project cost including EDI, local, and business contributions. Projects involving collaboration among communities may be eligible for awards exceeding the maximum.

Economic Development Infrastructure Loan: The EDI funds may be loaned directly to a unit of general local government or county; or provided as a grant to a unit of general local government and loaned to a bona fide public or private utility or other approved entity. All loans must be provided under the terms stated in an EDI Letter of Commitment and the contract between DECD and the local government or county.

Grant to Loan Ratio and Repayment Terms: All communities receiving EDI funds will be funded through a ratio of fifty percent (50%) grant and fifty percent (50%) loan of the total amount of CDBG assistance. Terms of loans will be a maximum of twenty (20) years at an interest rate not to exceed (4%). Final loan terms and rates of interest will be determined by the OCD based upon local financial capacity and affect on low/moderate residents. In cases of extreme hardship, the DECD Commissioner may waive the loan requirements in full or in part.

EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under the following limited conditions:

(i) The retail business represents the provision of new products and services previously unavailable in the community or is a tourism-related business;

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

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

(e) Exclusions: Communities receiving an Economic Development Infrastructure (EDI) award may not receive a Business Assistance award for the same project.

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

(a) Pre-Application: Eligible EDI applicants must submit a completed pre-application to OCD. Pre-applications will be reviewed by the OCD

Review Team to determine if the following threshold criteria are met:

(i) Applicant eligibility

(ii) Consistency with State Economic Development Strategy

(ii) Activities are eligible and comply with national and state CDBG objectives

(iv) No legal actions will significantly affect the project

(v) Financial profile of the applicant community and/developer

(vi) Financial condition of the business or development entity

(vii) Amount of proposed EDI assistance is reasonable

(viii) Match funds meet program requirements

(ix) Assessment of success of the project

(x) Project will not result in relocation of the business from one community to another, unless:

the current host community certifies it cannot meet the needs of the business

there is a plan to mitigate the potential for dislocation of the current workforce

If all pre-application requirements are met, OCD will invite the applicant, in writing within 15 working days, into the application phase. A Project Development Specialist will be assigned to work with the applicant. If the pre-application is rejected, the applicant will be notified in writing of the reasons for rejection. Pre-applications may be re-submitted after 30 days of notification of rejection.

(b) Application Phase: The applicant must submit a completed application within 120 days from invitation. The OCD Review Team will evaluate the project using the following criteria:

(i) Completeness

(ii) Ability to proceed

(iii) Quality of LMI jobs

(iv) Status of matching funds

(v) Level of risk

(vi) Community benefit

(vii) Reasonableness of EDI assistance

(viii) Citizen participation

(ix) Environmental review

The Review team will complete its review within 15 working days from the date of official application acceptance. The Team will recommend either: 1) Approval; 2) Request further information or documentation; or 3) Denial.

Upon receiving the recommendation from the Review Team, the CDBG Program Director will forward the recommendation to the DECD Commissioner for final action. The Commissioner has the authority to ask for reconsideration by the Review Team. Within five (5) working days of review completion OCD will notify applicants of the status of their application. Applicants approved for funding will begin the process of contracting with OCD. If an application requires further information or documentation, the applicant may re-submit the amended application at any time.

Applications denied by OCD may not be re-submitted prior to 30 working days from notification and only after discussion between the applicant, Project Development Specialist, the OCD Technical Assistance Program Manager or CDBG Program Director.

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interests of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant

Program.

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides gap financing to assist businesses to create or retain jobs for low and moderate-income persons. The Business Assistance program will provide a grant, loan, or grant/loan combination to meet the infrastructure, capital equipment and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories or a collaboration of communities;

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of BA expenditures must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the BA, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for BA assistance.

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

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA grant/loan to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance and that BA assistance is limited to gap financing.

(b) Financing Plan: The application shall present a complete financing plan for the proposed project. The financing necessary to support the total project cost must be documented with binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will grant/loan to the business identified in the BA application. The grant/loan must be provided under the terms stated in a Business Assistance Letter of Commitment and the contract between DECD and the local government.

Repayment Terms: Terms must be based on the business’ maximum capacity for principle and interest payments as documented in their pro formas and reviewed by DECD or its designee as appropriate to remain profitable.

Maximum Business Assistance Grant Amount: $400,000

Terms of BA Funding and Financing: BA awards in non-distressed areas will be in the form of a 100% loan, the terms and conditions of which will be determined in accordance with Section 2(d), above. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature. Awards for projects determined by DECD to be in distressed areas may be in the form of grants, loans, or grant/loan combinations, with terms and conditions of loans being determined in accordance with Section 2(d), above, with other considerations as deemed appropriated by the DECD.

(g) Exclusions: Communities receiving a Business Assistance (BA) award may not receive an Economic Development Infrastructure award for the same project.

3. Eligible Activities: Eligible activities to be carried out with BA funds include acquisition, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, fixtures, capital equipment and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma has been reviewed by an independent qualified financial professional.

(d) Equity: The proposed loan/grant recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for cash equity as determined by the DECD.

(e) BA Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed grant/loan recipient presents collateral appropriate to secure the BA grant/loan and indicates willingness to enter into security agreements. The targeted discount collateral coverage ratio is 1:1. In projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation.

Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community's current and future economic development will be evaluated.

(k) Community Financial Commitment/Match: The community must demonstrate a vested financial interest in the development project. The program’s goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval Process:

Application: Applications may be submitted at any time. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, applications will be evaluated by a review committee

Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the CDBG Program Director for awards.

F. REGIONAL SUPER PARK PROGRAM

The Regional Super Park program provides Maine communities with funds to assist in the provision of necessary infrastructure to develop one regional business park (Super Park) within the State. Recognizing the needs to have an inventory of “Super Parks” in Maine, the State is challenging Maine communities to develop the next generation of business industrial parks. These parks should be developed through a creative regional process involving tax-sharing and other cooperative agreements.

1. Threshold Criteria: The State may distribute Regional Super Park funds through an application selection process and award one grant to the group of communities that develops the proposal with the best chance of success.

(a) Eligible Applicants: All units of general local government in Maine,

except entitlement communities, are eligible to apply for the Super

Park program. Entitlement communities may participate in a regional

super park development in a non-entitlement community.

(b) Eligible Activities: Eligible activities including acquisition, relocation,

demolition, clearance, construction, reconstruction, installation, and

rehabilitation associated with public improvements such as water

and sewer facilities, utility infrastructure, flood and drainage

improvements, 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.

(c) Cost per Job: The targeted cost per job created ratio is $10,000.

(d) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of Super Park Project expenditures must be taken by persons of low and moderate income.

2. Special Program Requirements

(a) Maximum Grant Award: $1,000,000.

(b) Award of Grant: DECD reserves the right to refuse any and all applications and to make no award under this program.

(c) Leverage Ratio: Applicants must demonstrate committed match funds with at least a 5-to-1 ratio of other dollars to CDBG dollars.

Applicants may utilize funds from any source (other than CDBG) to

meet match requirement.

3. Selection Process: Applicants must include a development plan covering the following features:

minimum 300 acre park size or 200 developable acres (can include existing industrial park acreage)

advanced telecommunications infrastructure

advanced electric distribution facilities

a campus-like atmosphere including efficient and attractive circulation systems for motorists and pedestrians, large landscaped lots and attractively landscaped common areas, underground utilities and architecturally controlled buildings and sites

centralized water and sewage treatment facilities

access to major transport systems

access to essential community services

The successful application will demonstrate cooperation among applicant communities, identify demand for a super park facility, include a financial plan that has a high probability of success and outline a facility management capacity.

Applicants must demonstrate that their project will not compete with the Kennebec Regional Super Park currently being developed in Oakland.

Phase I Application: No maximum length. The application deadline is August 2, 2002. Each application will be rated in relation to all others. There is no minimum score for funding but the Office of Community Development reserves the right not to fund an application if it is deemed to be in the best interests of the State and the Community Development Block Grant Program.

(a) Management Plan: (15 points) Description of the management

and organizational structure to be used in the development and

operation of the park.

(b) Development Plan: (25 points) Preliminary site plan and

description of facilities and amenities.

(c) Market Plan: (25 points) Feasibility studies and market analysis

demonstrating 1) the need for the park (suitable, available

occupants), 2) availability of workforce, and 3) build-out rate

scenarios.

(d) Financial Plan: (25 points) Plan must include 1) demonstrated

commitment of funds for leverage ratio, 2) community tax-sharing and TIF agreements, and 3) business plan for the park.

(e) Community Participation: (10 points) Projects including more than two communities will receive a higher point total

G. 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.

1. Threshold Criteria:

The proposed activities must meet the low and moderate income objective as described below:

at least 51% of the jobs created by IFP expenditures must be provided to low and moderate income persons,

at least 51% of the housing units created by IFP expenditures must be occupied by low and moderate income households, or

the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate income households.

Complete the required IFP application materials.

The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure the assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out an economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in a substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

Selection Process: IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project. DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the CDBG Program Director. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING

A. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: Community Planning Program funds will be distributed through an annual grant application selection process.

Eligible Activities: CPG funds may be used for planning only activities that include studies, analysis, data gathering, preparation of plans and maps, and identification of actions that will implement plans. Engineering, architectural and design costs related to specific projects are not eligible.

Project Benefit: The program activities must meet one of the CDBG Program's national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low and moderate-income persons, or prevent or eliminate slum or blighting conditions.

2. Special Program Requirements:

(a) Past Performance: In order to be eligible to apply for the 2002 Community Planning program, communities that received CDBG grants in or prior to 1998 must have closed their grants prior to application. Communities that received CDBG grants in 1999 must have conditionally closed their grants prior to application. Communities that received CDBG grants in 2000 must have obligated 50% of their benefit activity funds prior to application.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: l) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grant funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the OCD Program Director.

(b) Maximum CPG Grant Amount: $10,000 or up to $15,000 for Multi-Community Housing Assessment Plans.

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

Priority for funding will be given to the following categories in the numbers indicated: Public Facilities and Public Infrastructure (5), Housing (5), Economic Development (4), Downtown Revitalization (2), Historic Preservation (2) and Tourism Opportunities (2).

Phase I Application: The maximum application length is six pages. The application deadline is March 8, 2002.

Each application will be placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase.

(a) Problem Statement (1-3 points): A description of the problems, how they were identified, and the impact on the community and on LMI persons or slum/blighting conditions.

(b) Development of Strategy (1-3 points): A description of the tasks proposed to solve your community's problems. Description of how the project will address a CDBG national objective. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (1-3 points): A description of other resources (local, state, federal, private) that will be contributed to the project.

(d) Citizen Participation (1-3 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue.

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS

The Project Development Phase Planning Grant Program enables communities to gather, analyze, and provide information required by the Project Development Phase process.

1. Threshold Criteria:

(a) Eligible Applicants: All communities invited into the Project Development Phase for a CDBG Program except for the Community Planning Grant Program.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Project Development Phase requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule for completion.

(d) Federal and State Certifications: Communities applying for Project Development Phase Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Project Development Phase Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Project Development Phase requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant's proposal. Project Development Phase Planning Grants will be awarded on an as-needed basis. Recipients and amount of assistance shall be determined by the OCD staff.

4. Maximum Grant Award: $2,500

C. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides selected communities with funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program and outreach to communities.

D. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the CDBG application process. SPMF funds are used for other OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the CDBG Program Director.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Local governments receiving grants as a result of the 2002 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated) within twelve months of the grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2002 CDBG program, or added to the available monies for the 2002 or 2003 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2002 CDBG program or added to the available monies for the 2002 or 2003 competition.

2. Unallocated State Grants To Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2000 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2002 CDBG program or added to the available monies for the 2002 or 2003 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 2002 competitions but did not receive funding and the possibility of holding additional competitions during the 2002 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2002 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Micro-Loan Program Repayments: ML loan repayments to DECD will be used to fund additional ML awards during the current program or in future program years.

6. Public Infrastructure Program, Economic Development Infrastructure Program and Business Assistance Program Repayments: PI, EDI and BA loan repayments will be used to fund additional future awards within their specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF, BA, ML, PI, and EDI programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within their specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD's decision regarding their 2002 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment regarding qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2002 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The amendment process will be guided by the State of Maine's Administrative Procedures Act.

EFFECTIVE DATE:

November 3, 2001

AMENDED:

May 28, 2002

NON-SUBSTANTIVE CORRECTIONS:

August 7, 2002 - corrected chapter number in several places, from Ch. 20 to Ch. 30

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, CDBG PROGRAM DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-9819

TTY (207) 287-2656

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

28

2002 Program Statement

www.meocd.org

Chapter 31 Community Development Block Grant Program: 2003 Final Statement

Code Me. R. 19-498 Ch. 31 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-31 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 31}

2003 PROGRAM STATEMENT

CHAPTER 31 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 3

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT 4

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 11

A. HOUSING ASSISTANCE GRANTS 11

B. PUBLIC FACILITIES GRANT PROGRAM 17

C. PUBLIC INFRASTRUCTURE GRANT/LOAN PROGRAM 19

D. PUBLIC SERVICE GRANTS 22

E. DOWNTOWN REVITALIZATION PROGRAM 24

F. URGENT NEED GRANTS 26

SECTION 3. ECONOMIC DEVELOPMENT 28

A. DEVELOPMENT FUND 28

B. REGIONAL ASSISTANCE FUND 31

C. MICRO-LOAN PROGRAM 34

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 36

E. BUSINESS ASSISTANCE PROGRAM 40

F. INTERIM FINANCE PROGRAM 44

SECTION 4. PLANNING 46

A. COMMUNITY PLANNING GRANTS 46

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS 48

C. TECHNICAL ASSISTANCE PROGRAM 49

D. SPECIAL PROJECTS MATCHING FUND 49

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME 50

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 50

B. PROGRAM INCOME 51

SECTION 6. APPEALS 52

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 53

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 31 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2003 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2003 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2003 CDBG program is developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums with program constituents and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings regarding this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons,

Preventing or eliminating slums or blights, or

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act, and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2003 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under three broad categories – Community Development, Economic Development, and Planning.

Community Development

Housing Assistance Grants

Public Facility Grants

Public Infrastructure Grants/Loans

Public Service Grants

Downtown Revitalization Program

Urgent Need Grants

Economic Development

Development Fund

Regional Assistance Fund

Micro-Loan Program

Economic Development Infrastructure Program

Business Assistance Program

Interim Financing Program

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Project Development Phase Planning Grants

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston, and Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified grant administrator and/or rehabilitation technician (as employees or consultants) or send whoever will be administering their program to the next offered grant administrator training program. The CDBG Program Director must approve waivers of this requirement in writing.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00 EST on the dates listed:

Public Facilities………………………………………………...…………December 6, 2002

Public Infrastructure…………………………………………...………...December 6, 2002

Downtown Revitalization…………………………………………………January 10, 2003

Housing Assistance (including Home Repair Network)…..…..…….February 7, 2003

Micro-Loan…………………………………………………….………………..March 7, 2003

Community Planning.…………………………………………………………March 7, 2003

Public Service…………………………………………………………………....April 4, 2003

Urgent Need ……………………………………1st come basis beginning March 3, 2003

Economic Development Infrastructure………...Ongoing beginning January 3, 2002

(Official application acceptance, 1st Thursday of every month)

Development Fund..……………………………………………………………………...Open

Business Assistance Program…………………………………………………………Open

Regional Assistance Fund……………………………………………………………...Open

Interim Financing Program……………………………………………………………..Open

Project Development Phase Planning Grants………………………………………Open

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2003 Program Budget

FY 2003 CDBG Budget $16,968,000

Administration 439,360

Technical Assistance Administration 169,680

Regional Council Technical Assistance 143,960

Special Projects Matching Fund 100,000

1. Housing Assistance Grants 2,400,000

2. Home Repair Network Program 500,000

3. Public Infrastructure Grants/Loans 3,700,000

4. Public Facilities Grants 1,910,000

5. Public Service Grants 200,000

6. Urgent Need Grants 200,000

7. Downtown Revitalization Grants 1,200,000

8. Development Fund 500,000

9. Interim Financing Program

10. Economic Development Fund 5,000,000

Business Assistance

Economic Development Infrastructure

Regional Assistance Fund

11. Micro-Loan 200,000

12. Community Planning 250,000

13. Project Development Phase Planning Grants 55,000

14. Section 108 Loan Program1

1 If the DECD application to HUD for the Section 108 Loan Program is approved, the 2003 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agenicies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements apply to all programs:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), Economic Development Infrastructure (EDI), Business Assistance (BA), and Regional Assistance Fund (RAF) programs, units of general local government and unorganized territory may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

Eligible units of general local government applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2003 CDBG funding category as long as the applicant unit of general local government will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance, and designated Public Infrastructure grant program activities, units of general local government and Unorganized Territory that benefited from a 2002 award may not apply again in that specific program until the 2004 program. Public Infrastructure grantees in Activity Group Number 1 as listed in Section 2. C. 3. (c) on Page 19 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(d) Past Performance: In order to be eligible to apply for a 2003 Community Development Block Grant program, communities that received CDBG grants in or prior to 1999 must have closed their grants prior to application due date. Communities that received CDBG grants in 2000 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2001 must have obligated 50% of their benefit activity funds prior to application due date.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grand funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the CDBG Program Director.

(e) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months from the date of contract signing. The CDBG Program Director may grant waivers for cause.

(f) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(g) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

(h) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if program benefits are not achieved.

(i) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(j) Preference for Communities: In accordance with Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments not defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter, over a municipality that does not obtain the certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Bangor, Lewiston, Auburn, and Portland, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for Economic Development Infrastructure, Business Assistance, Development Fund, Regional Assistance Fund, or Public Service grant programs on behalf of a collaboration of communities. Eligible units of general local government as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Scoring Applications:

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. Dropping the lowest score assigned by a scoring team member and averaging the remaining scores and adding any applicable bonus points will determine final scores. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase. An invitation into the Project Development Phase is not a guarantee of funding. Successful communities will receive an amount determined by the OCD for their project.

5. Project Development Phase:

Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

Project Eligibility: Verification that proposed activities are eligible under the Act.

Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

Environmental Review: Review of project for compliance with State and Federal environmental regulations.

6. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Project Development Specialist will be assigned to work closely with each community to finalize their project. Communities not completing their Project Development Phase within six months of receiving an invitation will forfeit their grant award. The CDBG Program Director may waive this requirement for extenuating circumstances.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

1. Special Threshold Criteria and Certifications: Housing Assistance Program funds will be distributed through an annual grant application selection process with three eligible funding categories, Housing Rehabilitation, Innovative Housing Projects and Housing Repair Network. Applicants may only apply in one category.

(a) Eligible Activities:

i) Eligible activities under Housing Rehabilitation are rehabilitation of occupied or vacant single-family or multi-family housing units, same site replacement housing and relocation assistance.

ii) Eligible activities under Innovative Housing Projects include: acquisition, alternative housing, code enforcement, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, historic preservation, lead based paint removal, new housing construction, same site replacement housing, provision of potable water or sewer systems, relocation assistance, and removal of architectural barriers and must be directly related to assisting or creating LMI residential housing units.

(b) Housing Assessment Planning Priority: All communities applying for 2003 Housing Rehabilitation or Innovative Housing funds who have completed a comprehensive housing assessment study within the past five years which meets OCD requirements will receive a bonus point total of 12.5% in the scoring process. New plans submitted with applications will be reviewed for content and consistency with OCD requirements prior to scoring. Housing Assessment Plans deemed incomplete or non-comprehensive will receive no bonus point total. Communities with plans older than five years will be permitted to demonstrate that their plan is under active implementation and is still valid or has been updated within the past five years. It is no longer mandatory to submit a Housing Assessment Plan.

(c) All communities applying for Housing Assistance funds must certify that they will:

i) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units.

ii) provide a match equivalent of 10 percent of the total grant award.

iii) adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

2. Special Program Requirements:

(a) Maximum Housing Assistance Grant Amount: $400,000

(b) Maximum Housing Assistance Program Costs: The amount of rehabilitation grants or loans available to participants in the Housing Rehabilitation Program will be no more than $15,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, Life Safety Code violations, foundation work, inadequate sewage disposal, lack of potable water, removal of lead-based paint, asbestos, radon, or other hazardous material, accessibility modifications. Except for acquisition/relocation and those activities listed above, all other eligible activities under the Innovative Housing Program are limited to a maximum of $25,000 per unit assisted

(c) Maximum Administrative Costs: The Housing Rehabilitation Assistance program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 15% of the grant amount.

(d) Section 8 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum 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.

3. Selection Process: The selection process for all Housing Rehabilitation and Innovative Housing applications will consist of two phases – an application phase and a project development phase.

Application: The maximum length of an application is six pages. The application deadline is February 7, 2003.

Scoring: Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. Each application will then be assigned a Housing Evaluation Factor based on the most recent data available in the following areas:

% Substandard housing

% Households spending more than 25% of income for housing

% Unemployment in community

% Community unemployment above state average

% Community over equalized tax rate

% Community LMI

% Community population below 150% of poverty

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

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

Housing Rehabilitation

(a) Impact (1-3 points): A description of the number and type of units to be rehabilitated, description of target area, how units were identified, results of inspections, past local rehabilitation efforts, and the impact of the present conditions on the community and/or region as it relates to LMI persons.

(b) Development of Strategy (1-3 points): A description of the plan proposed to implement a housing rehabilitation program, how emphasis will be placed on community based approach, collaborative efforts to be utilized, and a summary of technical measures to be undertaken on units including energy conservation, correction of code violations, structural improvements, removal of hazardous materials, mechanical systems improvements, etc. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (1-3 points): A description of other resources (local, state, federal, private) that will be contributed to the project and the current funding status.

(d) Citizen Participation (1-3 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. A detailed use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

Innovative Housing Projects

(a) Impact (1-3 points): A description of the specific housing problems to be addressed with HA funds, how the problems were identified, how these issues affect LMI persons in the community or region, and past local efforts involving housing projects.

(b) Development Strategy (1-3 points): A description of the plan proposed to implement the housing project, how emphasis will be placed on a community based approach, collaborative efforts to be utilized, and a detailed summary of the activities. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (1-3 points): A description of other resources (local, state, federal, private) that will be contributed to the project and the current funding status

(d) Citizen Participation (1-3 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue during implementation. A detailed use of any media (newspapers, radio, TV, etc) the community will use to further public awareness.

4. Home Repair Network Program

The Home Repair Network Program (HRN) provides funding to address housing problems of low- and moderate-income persons by combining CDBG funding with the Maine State Housing Authority and the United States Department of Agriculture Rural Development Program. This program will provide housing rehabilitation services administered on a regional basis throughout Maine, except as stated in B. 1. (b) below.

(a) Special Threshold Criteria and Certifications: Home Repair Network Program funds will be distributed through a selection process to identify lead communities in up to 7 regional service areas statewide. Applicant communities must be an eligible unit of general local government as defined in this Statement. The selected lead communities will partner with technical housing assistance service partners chosen through a competitive process and approved by the funding agencies.

(i) Eligible Activities:

a) Eligible activities under the Home Repair Network Program are rehabilitation of occupied or vacant single-family or multi-family housing units, demolition, same site replacement housing, provision of potable water and sewer systems, removal of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers, and relocation assistance.

(ii) Housing units ineligible for Home Repair Network assistance:

a) Housing units located in communities that have current CDBG Housing Rehabilitation programs or the entitlement communities of Auburn, Bangor Lewiston and Portland are not eligible for financial assistance under the HRN program.

b) Housing units not located in a regional service area

(iii) All communities applying for Home Repair Network funds must certify that they will:

a) adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units.

b) provide a match equivalent of 10 percent of the total grant award.

c) adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

Special Program Requirements:

(i) Maximum Home Repair Network Grant Amount per region: $100,000

(ii) Maximum Home Repair Network Program Costs: The amount of grants or loans available to participants in the Home Repair Network Program will be no more than $15,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, Life Safety Code violations, foundation work, inadequate sewage disposal, lack of potable water, removal of lead-based paint, asbestos, radon, or other hazardous material, or accessibility modifications. In no case may the maximum of $25,000 be exceeded.

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

(iv) Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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) Selection Process: The selection process for all HRNP applications will consist of two phases – an application phase and a project development phase.

(i) Application Letter of Intent: Applicants interested in serving as a regional community for implementing the HRNP in their region should submit a letter of intent on the required submission form by the deadline of February 7, 2003. Communities submitting a letter of intent must be located in the designated region they wish to represent.

(ii) Review Criteria: Letters of intent will be reviewed based upon the following factors:

(a) Local Capacity

(b) Experience in CDBG Administration

(c) Citizen Involvement in Process

(d) Geographic Location

(e) Interview with DECD (if needed as tiebreaker between applicants)

B. PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides funding for local public facility activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the PF program are construction, acquisition, reconstruction, rehabilitation, site clearance, historic preservation, and relocation assistance associated with public facilities projects.

(b) Match: All communities applying for PF funds must certify that they will provide a cash match of at least 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific Public Facilities activity group. Applicants cannot mix activities from different Public Facilities activity groups in an application.

Special Program Requirements:

(a) Maximum Public Facilities Grant Amounts

Activity Group Numbers Maximum Amount

1. Fire Stations $250,000

2. Community, child, senior, and health centers, libraries

sheltered workshops, homeless shelters, pier/wharf $250,000

3. Removal of architectural barriers $100,000

(as a distinct, stand-alone project)

4. Historic preservation $100,000

(as a distinct, stand-alone project)

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 or housing activities.

(c) Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate project LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This “demonstration” must be made as part of the application.

(d) Requirement for Applications for Removal of Architectural Barriers as a Stand Alone Project: Communities seeking to assist any existing facility utilized for the conduct of general local government, or participate in the construction of any new public facility must be a 51% or more low-to-moderate income community.

(e) Requirements for Applications for Historic Preservation as a Stand Alone Project: Applicants must submit with the application a letter from the State Historic Preservation Officer endorsing the proposed project and certifying that the facility is currently on or eligible for inclusion on, the National Register of Historic Places.

(f) Priority for Public Facilities Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PF program funds. Lists of the service and specialized service center communities are available from the State Planning Office or OCD.

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

Application: The application deadline is December 6, 2002. The application will require the applicant to supply the following information:

Community, utility district and/or administrative agency information

Amount of grant request and summary of proposed use of funds

Specific health, safety, and community concerns to be addressed

Beneficiary Profile – from survey results or US Census

Municipal, and/or administrative agency financial information

Municipal tax structure and affect of project on rates (where applicable)

Specific conditions that warrant the project completion

How the project was identified and prioritized

Funding sources sought and/or secured for this project

Each application will be evaluated in relation to those of similar sized communities in its activity group and placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. The review team will recommend a list of projects to the OCD Program Director to proceed into the project development phase. At least one application will be funded from each activity group as long as there are qualified applications submitted in all categories.

C. PUBLIC INFRASTRUCTURE GRANT/LOAN PROGRAM

The Public Infrastructure Grant/Loan (PI) Program provides funding for local infrastructure activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Infrastructure Program funds will be distributed through an annual combination grant and loan application submission and review process.

(a) Eligible Activities: Eligible activities in the PI program are construction, acquisition, reconstruction, installation, relocation assistance associated with public infrastructure, and infrastructure in support of new affordable LMI housing construction.

(b) Match: All communities applying for PI funds must certify that they will provide a cash match of at least 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific Public Infrastructure activity group. Applicants cannot mix activities from different Public Infrastructure activity groups in an application.

Special Program Requirements:

(a) Public Infrastructure Loan: The PI loan funds may be loaned directly to a unit of general local government or county; or provided as a grant to a unit of general local government that in turn makes a loan to a bona fide public or private utility or other approved entity. All loans are repaid directly to DECD and are provided under the terms stated in a PI Letter of Commitment and the contract between DECD and the local government or county.

(b) Grant to Loan Ratio and Repayment Terms: All communities receiving PI funds will be funded through a ratio of sixty percent (60%) grant and forty percent (40%) loan of the total amount of CDBG assistance. Terms of loans will be a maximum of twenty (20) years at an interest rate not to exceed four percent (4%). Final loan terms and rates of interest will be determined by the OCD based upon local financial capacity and affect on low/moderate income ratepayers. In cases of extreme hardship, the CDBG Program Director may waive the loan requirements in full or in part.

(c) Maximum Public Infrastructure Grant/Loan Amounts

Activity Group Numbers Maximum Amount

1. Water system installation/improvements, sewer system

installation/improvements, water/sewer system hookups, $400,000

storm drainage, utility infrastructure

2. Infrastructure in support of new LMI affordable housing $400,000

3. Streets/roads/sidewalks, parking, curbs, gutters $100,000

(d) Funding Restrictions: PI funds may not be used to assist infrastructure for the purpose of job creation. Job creation infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction and sewer/water system hookups, no housing activities may be assisted with PF & PI funds. All other eligible housing activities are listed in the Housing Assistance Grant program.

(e) Demonstration of National Objective: Applicants must demonstrate that their project meets a threshold of benefiting 51% or more low-to-moderate income persons or will prevent or eliminate slum and blighting conditions. Where necessary to demonstrate LMI benefit, income surveys must use HUD-approved methodology and be accepted by OCD. This “demonstration” must be made as part of the application.

(f) Priority for Public Infrastructure Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PI program funds. Lists of the service and specialized service center communities are available from the State Planning Office or OCD.

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

Application: The application deadline is December 6, 2002. The application will seek, at minimum, the following information:

Community, utility district, and/or administrative agency information

Amount of grant/loan request and summary of proposed use of funds

Specific health, safety, and community concerns to be addressed

Beneficiary Profile – from survey results or US Census

Municipal, utility, and/or administrative agency financial information

Utility rate structure and affect of project on rates (where applicable)

Municipal tax structure and affect of project on rates (where applicable)

Specific conditions that warrant the project completion

How the project was identified and prioritized

Funding sources sought and/or secured for this project

Each application will be reviewed and evaluated in relation to those of similar sized communities in its activity group and placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. The review team will recommend a list of projects to the OCD Program Director to proceed into the final application/development phase.

At least one application will be funded from each activity group as long as there are qualified applications submitted in all categories.

D. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing. Structural changes such as construction, renovation, or rehabilitation are not eligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in that area. The clientele of PSG projects are limited to:

(i) Persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally low/moderate persons.

Abused Children

Battered Spouses

Elderly Persons

Severely Disable 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 eligible Low and Moderate Income persons.

(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 match equivalent of 20 percent of the total grant award will be provided; and,

(iii) The activity will meet the need or will continue after PSG funding is expended.

2. Special Program Requirements:

(a) Maximum Public Service Grant Amount: $50,000

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

Application: The maximum length of an application is six pages. The application deadline is April 4, 2003.

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

(a) Problem Statement (40 points):

Scope of Problem: (40 points) – Identification and description of the nature and magnitude of the problems to be addressed with PSG funds and the problems facing service providers as they address the issue.

(b) Proposed Solution (40 points):

(i) Project Description: (10 points) – Description of how PSG funds will be used to solve the problems. Include a project budget.

(ii) Project Feasibility: (10 points) – Identification of tasks, timetables, and the parties responsible to implement the proposed solution.

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

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

(c) Citizen Participation (10 points): Identification and description of the process, including public meetings, hearings, and other methods to solicit involvement of residents, local organizations, and public officials. Describe how the application reflects citizen concern and beneficiary involvement.

(d) Commitment/Match (10 points): Identification and description of how the community, organizations, and citizens will contribute financial and/or technical resources to the project, the status of those commitments, and a timeframe for the commitments.

E. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to communities to implement comprehensive, integrated, and innovative solutions to the problems facing their downtown districts. These community revitalization projects must be part of a strategy that targets downtown service and business districts and will lead to future public and private investment. Qualified applicant communities must have a downtown district meeting the definition of PL 776 enacted by the 119th legislature.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities, Public Infrastructure, Public Service, Housing Assistance, Micro-Loan, or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Match – All communities applying for Downtown Revitalization funds must certify that they will provide a cash match equivalent to 20 percent of the total grant award.

2. Special Program Requirements

(a) Planning Requirements: Applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. Communities with plans older than five years will be permitted to demonstrate that their plans are under active implementation and the action plan remains valid, or have been updated within the past 5 years. The proposed DR activities must be in the plan as recommended actions for downtown revitalization.

(b) Maximum Award: $400,000

(c) Bonus Points for Service and Specialized Center Communities: Applicants will receive three bonus points if they have been identified by the State Planning Office as a service or specialized center community.

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

Application: The maximum application length is ten pages. The application deadline is January 10, 2003.

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

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

(a) Problem Statement (40 points):

(i) Scope of Problems (25 points) – Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

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

(b) Solution (40 points):

(i) Project Description (15 points) – Describe how funds will be used. Include a project budget.

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

(iii) Feasibility (15 points) – Identification of tasks, timetables, and the responsible parties to implement the proposed solution.

(c) Citizen Participation (10 points): Identification and description of the process, descriptions of public meetings, hearings, and other methods to solicit the involvement of residents, local organizations, and public officials, and how the involvement contributed to this application.

(d) Commitment/Match (10 points): Identify and describe how the community, organizations, and citizens will contribute financial and/or technical resources to the project, and the status of those commitments.

(e) National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a target area survey, or a declaration of slum/blight conditions must be submitted with the application.

F. URGENT NEED GRANTS

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

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 healthy or welfare of the community;

(ii) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(iii) is a project the applicant cannot finance on its own. “Cannot finance on its own” means, that the town’s tax burden, regulatory structure, utility user fees, bonding capacity, or previous or existing budgetary commitments, precludes it from assuming the additional financial obligation needed for this project; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a) Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UN Amount: $100,000

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

Application: An UN application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Prior to consideration of a grant award, all UN proposals must meet the four Threshold criteria and the Special Program requirements. Project Development Phase applications must comply with the following:

(a) Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

(b) Management Plan: Details of the structure and methods established by the community for program management.

(c) Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UN funds will be available beginning March 3, 2003. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the CDBG Program Director’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

A. DEVELOPMENT FUND

The Development Fund (DF) Program provides gap funding to local governments to assist businesses to create or retain jobs for low- and moderate-income persons. DF funds may not be used to refinance existing debt.

1. Threshold Criteria:

(a) At a minimum, 51% of the jobs created or retained as a result of the DF project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the DF, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for DF assistance. In the event that job creation requirements are not met, the Community implementing the CDBG activities will be responsible for immediate repayment of all CDBG funds to the State.

(b) The targeted cost per job created or retained with DF funds is $10,000.

(c) Complete the required DF application materials.

2. Special Program Requirements:

(a) Necessary and Appropriate: A DF loan to a business must be for projects that are necessary and appropriate. The application must describe the need for DF assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without DF participation. The Development Fund is gap financing.

(b) Financing Plan: The DF application shall present a financing plan for a project in which the DF loan comprises the lesser of $250,000 or 40% of total project cost. Project activities and use of funds to calculate the non-DF financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(c) Maximum Award: $250,000 per project.

(d) DF Loan: The DF is a grant to a unit of local government. The local government must use the grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a DF Letter of Commitment and the contract between DECD and the local government.

(e) 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 locational cost differentiations and the benefit derived from the assistance. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

3. Selection Process: The DF project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Development Fund program will give priority to business activities that support the state’s economic development strategy and revitalization of downtown areas. The Development Fund will, whenever possible, be targeted towards economic sectors identified in the strategy.

(b) Eligible Activities: Acquisition, relocation, demolition, clearance, construction, reconstruction, installation, rehabilitation, and working capital.

(c) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(d) Financial Plan: The financing for the project must be in place and legally binding commitments must be submitted; the proposal must be structured to meet cash flow projections; and the project pro forma must be reviewed by an independent qualified financial professional. The financing plan must be complete with no unidentified uses of funds necessary to complete the project. Attorney fees and closing costs are the responsibility of the business, cannot be paid with DF loan proceeds and must be paid at the time of closing.

(e) Equity: The proposed loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for a cash equity injection with appropriate explanation regarding equity participation.

(f) DF Loan repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(g) Security: The proposed loan recipient presents collateral appropriate to secure the DF Loan and indicates willingness to execute security agreements. The targeted discount collateral coverage ratio is 1:1. In projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation.

Purchase money security interest is required on all machinery and equipment purchased with DF loan proceeds unless the purchase price exceeds the loan amount, in which case a pro-rated share interest will be held with any other lender(s).

(h) Cost: The number of permanent jobs created or retained per DF project dollars will be compared with current and past DF projects. The increase in local tax dollars resulting form the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(ii) Community and Economic Development: The primary and secondary impacts of the DF project on the community’s current and future economic development will be evaluated.

Approval Process

(a) Application: Applications may be submitted on an open basis. DECD staff will review the applications to determine if the threshold criteria have been met. DECD or its designee will conduct a credit analysis.

(b) DECD Review Committee Recommendations: The DECD Review Committee will review applications, staff reports, credit analysis, and make one of the following decisions:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendations for resubmission; or,

(iv) rejection.

B. REGIONAL ASSISTANCE FUND

The Regional Assistance Fund (RAF) Program provides financial resources to local governments to be used as leverage to obtain funds from Federal, State, and private programs. RAF money can be used as match to obtain funds from: the Economic Development Administration (EDA); Economic Adjustment Assistance Program (Title IX); and the EDA Public Works Program (Title I) or the Rural Development Agency (RDA), Rural Business Enterprise (RBE) Grant, and the Intermediary Relending Program (IRP), and/or other Federal, State, and private programs. The purpose of the RAF is to bring additional money to the State, and therefore, RAF cannot be used as match with the State’s CDBG program or conventional lending institutions.

Threshold Criteria:

(a) Be an eligible planning activity or at a minimum, 51% of the jobs created or retained as a result of the RAF project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the DF, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for RAF assistance. In the event that job creation requirements are not met, the Community implementing the CDBG activities will be responsible for immediate repayment of all CDBG funds to the State.

Be designated by the appropriate organization providing matching funds as eligible to receive funds; and

Complete the required RAF application materials.

2. Special Program Requirements:

(a) RAF Funds: If the RAF application is successful, a contract will be executed between DECD and the local government to reserve funds for the applicant. A Letter of Conditions will be included in the contract to describe the terms that will govern the release of funds.

(b) Limit on Amount of RAF assistance: Each Economic Development District will be eligible for one RAF grant per year. Additional grants within districts will be made at the discretion of the CDBG Program Director. The RAF application must present a plan in which the RAF funding comprises the lesser of $200,000 or up to 100% of the matching funds required from the local government. The local government must demonstrate that it is not possible to get funding from any other source for the portion of matching funds sought from the RAF.

(c) Program Income Plan: Thresholds regarding interest rates or repayment terms for RAF assistance to revolving loan funds have not been established. Justification for the repayment terms relate to filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. To meet matching requirements, program income generated from RAF funds may be retained by the local grantee or by the local grantee’s assignee with the approval of DECD.

Community Financial Commitment: Wherever appropriate the

community must demonstrate a vested financial interest in the development project, ranging up to 33% of CDBG funds.

3. Selection Process: The RAF project will be evaluated to determine its viability as a CDBG proposal. The following considerations will be the focus of the impact factor.

(a) Financial Plan: The financing need for the project will be based on an assessment of its financial resources. The proposal must have an appropriate leverage ratio of private and public dollars.

(b) Benefit: The RAF proposal will be evaluated on the basis of the community and economic benefits that will result from the project. A fundamental component of CDBG assistance is the provision of Public Benefits.

(c) Cost: The number of permanent jobs created or retained per RAF project dollars will be reviewed on a case-by-case basis. The increase in local tax dollars resulting from the project and overall project cost effectiveness will be evaluated.

(d) Low and Moderate Income Benefit: Benefit to low and moderate income persons and families will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Workforce Investment Act and Job Service will also be reviewed.

(e) Community and Economic Development: The primary and secondary impacts of the RAF project on the community’s current and future economic development will be evaluated.

(f) Local Commitment/Match: The commitment of local funds to the project. Additional consideration will be given to applications showing a local commitment of funds.

4. Approval Process:

(a) Application: Applications may be submitted on an open basis. Once the applicant has submitted an application to the appropriate agency (such as EDA) and is working toward a full application, may submit a RAF application to DECD. DECD staff will review RAF applications on a first-come first-served basis to determine if the threshold criteria and special program requirements have been met. Successful applicants will be invited to continue into the project development phase. DECD or its designee will conduct a project development analysis for each proposal.

(b) Staff Recommendations: Following the project development analysis, staff will make one of the following three recommendations to the CDBG Program Director for awards:

(i) Approval of requested amount with requested or different terms;

(ii) Approval of lesser amount with requested or different terms; or,

(iii) Rejection.

C. MICRO-LOAN PROGRAM

The Micro-Loan Program (ML) provides communities with funds to assist existing and new businesses to create and/or retain jobs for low and moderate-income persons.

Threshold Criteria and Certifications: Micro-Loan Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activity: The establishment of a local commercial loan program for the purpose of assisting businesses.

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of the ML project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the ML, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for ML assistance. In the event that job creation requirements are not met, the Community implementing the CDBG activities will be responsible for immediate repayment of all CDBG funds to the State.

Special Program Requirements:

(a) Maximum Micro-Loan Grant Amount: $100,000, part of which may be used to provide technical assistance to loan applicants. Funds not loaned out within 12 months of contract start date will be withdrawn.

(b) Necessary and Appropriate: All loans made from the Micro-Loan Program to for-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without Micro-Loan assistance.

(c) Financing Plan: Micro-Loans are limited to a maximum of $25,000 per loan. Micro-Loans may provide 100% of the financing for loans up to $15,000. Micro-Loans exceeding $15,000 require a dollar-for-dollar match for the portion of the loan exceeding $15,000.

(d) Micro-Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program eligible loans will be able to capitalize a ML revolving loan fund with their ML loan repayments. Grantees that do not close ML loans to three or more different businesses and do not demonstrate demand for additional eligible loans will return ML repayments to DECD.

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

Application: The maximum length of an application is six pages. The application deadline is March 7, 2003.

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

(a) Problem Statement (35 points):

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

(b) Proposed Solution (45 points):

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

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

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

(c) Citizen Participation (20 points):

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

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

D. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

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

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on an ongoing basis beginning January 3, 2003. The official application acceptance will be the 1st Thursday of each month.

(a) Eligible Activities: Eligible activities include acquisition, relocation, demolition, clearance, construction, reconstruction, installation, and rehabilitation associated with public infrastructure projects such as water and sewer facilities, flood and drainage improvements, publicly-owned commercial/industrial buildings, parking, streets, curbs, gutters, sidewalks, etc. which are necessary to create or retain jobs in the non-retail private sector for low and moderate income persons. Eligibility of projects that are not in support of a specific business, such as the development of an industrial park or incubator building, will be determined on a case-by-case basis by OCD.

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

(c) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of the EDI projects must be taken by persons of low and moderate income. Jobs create/retained must be in the community applying for the EDI, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for EDI assistance. In the event that job creation requirements are not met, the Community implementing the CDBG activities will be responsible for immediate repayment of all CDBG funds to the State.

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

(e) Applicant Surety: If the proposed EDI activity is not in support of a specific business, prior to contracting with OCD, the applicant community must have in place a surety instrument equal to the amount of the EDI award.

2. Special Program Requirements:

(a) Maximum Economic Development Infrastructure Award Amount: $400,000. In no case will the amount of EDI assistance be greater than 50% of the project cost including EDI, local, and business contributions. Projects involving collaboration among communities may be eligible for awards exceeding the maximum.

(b) Economic Development Infrastructure Loan: The EDI funds may be loaned directly to a unit of general local government or county; or provided as a grant to a unit of general local government and loaned to a bona fide public or private utility or other approved entity. All loans must be provided under the terms stated in an EDI Letter of Commitment and the contract between DECD and the local government or county.

(c) Grant to Loan Ratio and Repayment Terms: All communities receiving EDI funds will be funded through a ratio of fifty percent (50%) grant and fifty percent (50%) loan of the total amount of CDBG assistance. Terms of loans will be a maximum of twenty (20) years at an interest rate not to exceed four percent (4%). Final loan terms and rates of interest will be determined by the OCD based upon local financial capacity and affect on low/moderate residents. In cases of extreme hardship, the DECD commissioner may waive the loan requirements in full or in part.

(d) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(e) EDI Projects in Support of Retail Businesses: OCD will accept EDI Program applications in support of retail businesses only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business.

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

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

(e) Exclusions: Communities receiving an Economic Development Infrastructure (EDI) award may not receive a Business Assistance award for the same project or business during the same program year.

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

(a) Application: Eligible EDI applicants must submit a completed application to OCD. Applications will be reviewed by the OCD Review Team to determine if the following threshold criteria are met:

(i) Applicant eligibility

(ii) Consistency with State Economic Development Strategy

(iii) Activities are eligible and comply with national and state CDBG objectives

(iv) No legal actions will significantly affect the project

(v) Financial profile of the applicant community and/or developer

(vi) Financial condition of the business or development entity

(vii) Amount of proposed EDI assistance is reasonable

(viii) Match funds meet program requirements

(ix) Assessment of success of the project

(x) Project will not result in relocation of the business from one community to another, unless:

the current host community certifies that it cannot meet the needs of the business

there is a plan to mitigate the potential for dislocation of the current workforce

If all application requirements are met, the applicant will receive a written invitation from OCD to proceed into the project development phase. A Project Development Specialist will be assigned to work with the applicant. If the application is rejected, the applicant will be notified in writing of the reasons for rejection. Applications may be re-submitted after 30 days of notification of rejection.

(b) Application Phase: The applicant must submit a completed application within 120 days from invitation. The OCD Review Team will evaluate the project using the following criteria;

Completeness

(ii) Ability to proceed

(iii) Quality of LMI jobs

(iv) Status of matching funds

(v) Level of risk

(vi) Community benefit

(vii) Reasonableness of EDI assistance

(viii) Citizen participation

(ix) Environmental review

The Review team will complete its review within 15 working days from the date of official application acceptance. The Team will recommend either: 1) Approval; 2) Request further information or documentation; or 3) Denial.

Upon receiving the recommendation from the Review Team, the CDBG Program Director will forward the recommendation to the DECD Commissioner for final action. The Commissioner has the authority to ask for reconsideration by the Review Team. Within five (5) working days of review completion OCD will notify applicants of the status of their application. Applicants approved for funding will begin the process of contracting with OCD. If an application requires further information or documentation, the applicant may resubmit the amended application at any time.

Applications denied by OCD may not be resubmitted prior to 30 working days from notification and only after discussion between the applicant, Project Development Specialist, the OCD Technical Assistance Program Manager or CDBG Program Director.

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

E. BUSINESS ASSISTANCE PROGRAM

The Business Assistance (BA) program provides gap financing to assist businesses to create or retain jobs for low and moderate-income persons. The Business Assistance program will provide a grant, loan, or grant/loan combination to meet the infrastructure, capital equipment, and real property needs of businesses. The program will assist those economic initiatives and development opportunities that are of sufficient magnitude to have a significant impact on a local or regional economy.

1. Threshold Criteria: The state will distribute Business Assistance Program funds through an annual grant application selection process.

(a) Eligible Applicants: All units of general local government in Maine, including plantations, are eligible to apply for and receive BA funds. County governments may only apply on behalf of unorganized territories or a collaboration of communities;

(b) Project Benefit: At a minimum, 51% of the jobs created or retained as a result of the BA project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the BA, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for BA assistance. In the event that job creation requirements are not met, the Community implementing the CDBG activities will be responsible for immediate repayment of all CDBG funds to the State.

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

2. Special Program Requirements:

(a) Necessary and Appropriate: A BA grant/loan to a business must be for projects that are necessary and appropriate. The application must describe the need for assistance, reasonableness of the amount requested, the repayment plan, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without BA assistance and that BA assistance is limited to gap financing.

(b) Financing Plan: The application shall present a complete financing plan for the proposed project. The financing necessary to support the total project cost must be documented with binding commitment letters submitted with the application. Project activities or uses of funds used to calculate any non-CDBG financing must represent new investment.

(c) Funds: The Business Assistance funds are provided as a grant to a unit of local government. The local government will grant/loan to the business identified in the BA application. The grant/loan must be provided under the terms stated in a Business Assistance Letter of Commitment and the contract between DECD and the local government.

(d) Repayment Terms: Justification for the repayment terms are based on filling the financing gap, identifying the rate of return allowed through the repayment terms, or specifying the locational cost differentiations and the benefit derived from the assistance. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

(e) Maximum Business Assistance Grant Amount: $400,000

(f) Terms of BA Funding and Financing: The BA is a grant to a unit of local government. The local government must use the grant monies as a loan to the business identified in the DF application. The loan must be provided under the terms stated in a BA Letter of Commitment and the contract between DECD and the local government. BA awards in non-distressed areas will be in the form of 100% loan, the terms and conditions of which will be determined in accordance with Section 2(d), above. Awards for projects determined by DECD to be in distressed areas may be in the form of grants, loans, or grant/loan combinations, with terms and conditions of loans being determined in accordance with Section 2(d), above, with other considerations as deemed appropriate by the DECD.

(g) Chance of Success: The business must demonstrate that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(h) Exclusions: Communities receiving a Business Assistance (BA) award may not receive an Economic Development Infrastructure (EDI) award for the same project or business during the same program year.

3. Eligible Activities: Eligible activities to be carried out with BA funds include acquisition, reconstruction, rehabilitation, or installation of commercial or industrial buildings, structures, capital equipment, and real property improvements.

4. Selection Process: The BA Project will be evaluated as a viable business proposal. The following will be considered:

(a) Strategy Priority: The Business Assistance program will give priority to business activities that support the state’s economic development strategy. The Business Assistance Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

(b) Chance of Success: The project demonstrates that a market exists for its product or service, the cost of the product or service is competitive in current market conditions, the cash flow projections are adequate to support operating expenses and indebtedness, and management has the capacity to carry out the business or development plan. The project must demonstrate that there are no unidentified costs necessary for implementation.

(c) Financial Plan: The financing for the project is in place and legally binding commitments have been submitted; the proposal has an appropriate leverage ratio of private and public dollars and is structured to meet cash flow projections; and the project pro forma ahs been reviewed by an independent qualified financial professional.

(d) Equity: The proposed grant/loan recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for cash equity as determined by the DECD.

(e) BA Loan Repayment: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG BA monies.

(f) Security: The proposed grant/loan recipient present collateral appropriate to secure the BA grant/loan and indicates willingness to enter into security agreements. The targeted discount collateral coverage ratio is 1:1. Projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation.

(g) Public Benefit: The BA proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per BA project dollars and the increase in local tax dollars resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community’s current and future economic development will be evaluated.

(k) Community Financial Commitment/Match: The community must demonstrate a vested financial interest in the development project. The program’s goal is to obtain community participation ranging up to 33% of CDBG funds.

5. Approval process:

(a) Application: Applications may be submitted on an open basis. DECD staff will review the applications to determine if the threshold criteria have been met. A credit analysis will be conducted by DECD or its designee for each proposal. Following staff analysis, a review committee will evaluate applications.

(b) Review Committee Recommendations: The review committee will evaluate staff reports and make recommendations to the CDBG Program Director for awards.

F. 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.

1 Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for IFP assistance. In the event that job creation requirements are not met, the Community implementing the CDBG activities will be responsible for immediate repayment of all CDBG funds to the State.

(ii) at least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the CDBG Program Director. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING

A. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: Community Planning Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

2 Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000 or up to $15,000 for Mutli-Community Housing Assessment Plans.

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

Priority for funding will be given to the following categories in the numbers indicated: Public Facilities and Public Infrastructure (5), Housing (5), Economic Development (4), Downtown Revitalization (2), Historic Preservation (2), and Tourism Opportunities (2).

Application: The maximum application length is six pages. The application deadline is March 7, 2003.

Each application will be placed in rank order from highest to lowest according to the scores determined by the scoring team (with 1 being highest and 3 being lowest in each scoring category). Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase.

(a) Problem Statement (1 – 3 points): A description of the problems, how they were identified, and the impact on the community and on LMI persons or slum/blighting conditions.

(b) Development of Strategy (1 – 3 points): A description of the tasks proposed to solve the community’s problems. Description of how the project will address a CDBG national objective. Include a proposed budget and describe how funds will be used.

(c) Project Leverage (1 – 3 points): A description of other resources (local, state, federal, or private) that will be contributed to the project.

(d) Citizen Participation (1 – 3 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue.

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS

The Project Development Phase Planning Grant Program enables communities to gather, analyze, and provide information required by the Project Development Phase process.

1. Threshold Criteria:

(a) Eligible Applicants: All communities invited into the Project Development Phase for a CDBG Program except for the Community Planning Grant Program.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Project Development Phase requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule of completion.

(d) Federal and State Certifications: Communities applying for Project Development Phase Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Project Development Phase Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Project Development Phase requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant’s proposal. Project Development Phase Planning Grants will be awarded on an as-needed basis. The OCD staff shall determine recipients and amount of assistance.

4. Maximum Grant Award: $2,500

C. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

D. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the CDBG application process. SPMF funds are used for other OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the CDBG Program Director.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Local governments receiving grants as a result 2003 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within twelve months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2003 CDBG program, or added to the available monies for the 2003 or 2004 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2003 CDBG program, or added to the available monies for the 2003 or 2004 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2003 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2003 CDBG program or added to the available monies for the 2003 or 2004 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 2003 competitions but did not receive funding, and the possibility of holding additional competitions during the 2003 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2003 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Micro-Loan Program Repayments: ML Program repayments to DECD will be used to fund additional ML awards during the current program or in future program years.

6. Public Infrastructure Program, Economic Development Infrastructure Program, and Business Assistance Program Repayments: PI, EDI, and BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF, BA, ML, PI, and EDI programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2003 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2003 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, CDBG PROGRAM DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-9819

TTY (207) 287-2656

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPEMT WEB SITE:

www.meocd.org

Effective Date:

September 24, 2002

49

2003 CDBG Program Statement

Chapter 32 Community Development Block Grant Program: 2004 Final Statement

Code Me. R. 19-498 Ch. 32 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-32 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 32}

CHAPTER 32 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 3

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT 5

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 11

A. HOUSING ASSISTANCE GRANTS 11

B. HOME REPAIR NETWORK PROGRAM (Limited to the City of Rockland) 15

C. PUBLIC FACILITIES GRANT PROGRAM 17

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM 20

E. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM 22

F. PUBLIC SERVICE GRANTS 26

G. DOWNTOWN REVITALIZATION PROGRAM 29

H. COMMUNITY ENTERPRISE GRANT PROGRAM 31

I. URGENT NEED GRANTS 35

SECTION 3. ECONOMIC DEVELOPMENT 37

A. ECONOMIC DEVELOPMENT PROGRAM 37

B. INTERIM FINANCE PROGRAM 41

C. PINE TREE DEVELOPMENT ZONES SET ASIDE 43

SECTION 4. PLANNING 44

A. COMMUNITY PLANNING GRANTS 44

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS 46

C. TECHNICAL ASSISTANCE PROGRAM 47

D. SPECIAL PROJECTS MATCHING FUND 47

E. LEAD HAZARD CONTROL FUND 47

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME 48

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 48

B. PROGRAM INCOME 49

SECTION 6. APPEALS 50

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 51

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 32 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2004 PROPOSED PROGRAM STATEMENT

SUMMARY

This proposed Program Statement describes the method by which 2004 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A § 13073. The 2004 CDBG program is developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums and hearings with program constituents and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD will hold three public hearings regarding this Proposed Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons, or

Preventing or eliminating slums or blights, or

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act, and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2004 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under four broad categories – Community Development, Economic Development, Planning and Special Projects.

Community Development

Housing Assistance Grants

Home Repair Network

Public Facility Grants

Public Infrastructure Grants

Economic Development Infrastructure Grants

Public Service Grants

Downtown Revitalization Grants

Community Enterprise Grants

Urgent Need Grants

Economic Development

Development Fund

Regional Assistance Fund

Business Assistance Program

Interim Financing Program

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Project Development Phase Planning Grants

Special Projects

Special Projects Matching Fund

Lead Hazard Control Fund

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended, (the Act) the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston, and Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified grant administrator and in the case of Housing Rehabilitation a certified rehabilitation technician (as employees or consultants) or send whoever will be administering their program to the next offered grant administrator training program. The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities, Community Planning Grants and Project Development Planning activities are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00 EST on the dates listed:

Public Facilities………………………………………………...………November 21, 2003

Public Infrastructure………………………………………..………....November 21, 2003

Downtown Revitalization…………………………………..……….……January 16, 2004

Community Enterprise…...………………………………….…….…..…January 16, 2004

Housing Assistance……………………………………………..….…….February 6, 2004

Economic Development Infrastructure……………………………....February 20, 2004

(May 21 and August 20 application deadlines ………………………………...May 21, 2004

are based upon availability of funds) …………………..….……..August 20 2004

Economic Development Programs.………………………………..…February 20, 2004

(May 21 and August 20 application deadlines ……………………………………May 21, 2004

are based upon availability of funds) …………………………….….August 20, 2004

Community Planning.……………………………………..……………..……March 5, 2004

………………………………………..……………….August 6, 2004

Urgent Need …………………………………...1st come basis beginning March 5, 2004

Public Service…………………………………………………………..……....April 8, 2004

Interim Financing Program………………………………………………………..…..Open

Project Development Phase Planning Grants…………………………………..…Open

G. PROGRAM BUDGET

COMMUNITY DEVELOPMENT BLOCK GRANT

2004 Program Budget

FY 2004 CDBG Budget $16,850,000

Administration 437,000

Technical Assistance Administration 168,500

Regional Council Technical Assistance 124,500

Special Projects Matching Fund 100,000

Lead Hazard Control Fund 100,000

1. Housing Assistance Grants 2,300,000

2. Home Repair Network Program 700,000

3. Public Infrastructure Grants 3,700,000

4. Economic Development Infrastructure Grants 1,800,000

5. Public Facilities Grants 1,900,000

6. Public Service Grants 200,000

7. Urgent Need Grants 200,000

8. Downtown Revitalization Grants 1,200,000

9. Community Enterprise Grants 350,000

10. Economic Development Fund

Business Assistance 1,500,000

Regional Assistance Fund 800,000

Pine Tree Development Zones 1,000,000

Development Fund *

Interim Financing Program **

Section 108 Loan Program ***

11. Community Planning Round 1 – March 5, 2004 110,000

Round 2 – August 6, 2004 110,000

12. Project Development Phase Planning Grants 50,000

• The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

*** If the DECD application to HUD for the Section 108 Loan Program is approved, the 2004 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. The following general requirements apply to all programs:

(a) Prohibition on Multiple Grants: Except for the Development Fund (DF), Economic Development Infrastructure (EDI), Business Assistance (BA), and Regional Assistance Fund (RAF) programs, eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2004 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Development Fund, Economic Development Infrastructure, Business Assistance, Regional Assistance Fund and designated Public Infrastructure grant program activities, units of general local government and Unorganized Territory that benefited from a 2003 award may not apply again in that specific program until the 2005 program. Public Infrastructure grantees in Activity Group Number 1, as listed in Section 2. C. 3. (a) (1) on Page 20 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Rehabilitation Grantees: Beginning with the 2004 CDBG program all applicants awarded a Housing Rehabilitation grant may not apply again for Housing Rehabilitation funds until the 2007 program. Applicants awarded a 2004 Housing Rehabilitation grant may not apply in the Innovative Housing Category until the 2006 program.

(d) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(e) Past Performance: In order to be eligible to apply for a 2004 Community Development Block Grant program, communities that received CDBG grants in or prior to 2000 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2001 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2002 must have obligated 50% of their benefit activity funds prior to application due date. Communities that received 2003 CDBG grants must be under contract with DECD.

Exceptions: Applicants may request a waiver of this requirement under the following circumstances: 1) program delays have occurred beyond the control of the grantee due to unforeseen changes in availability of funds or acts of nature; 2) the recipient has received unanticipated program income and expenditure of grand funds has been delayed; 3) the job creation goals of a previous grant have not been fulfilled; or 4) special circumstances as determined and approved by the Director, Office of Community Development.

(f) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(g) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(h) Project Benefit: Applications will be reviewed to verify that the proposed activities meet one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

(i) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if program benefits are not achieved.

(j) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(k) Preference for Communities: In accordance with Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments not defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter, over a municipality that does not obtain the certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Bangor, Lewiston, Auburn, and Portland, are eligible to apply for and receive CDBG funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for Economic Development Infrastructure, Business Assistance, Development Fund, Regional Assistance Fund, or Public Service grant programs on behalf of a collaboration of communities. Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Scoring Applications:

Applicants will be placed in rank order from highest to lowest according to the scores determined by the scoring team. All program applications with the exception of the Economic Development Program will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Dropping the lowest and highest scores assigned by members of the 5-person scoring team, averaging the remaining scores and adding any applicable bonus points will determine final scores. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An invitation into the Project Development Phase is not a guarantee of funding. Successful communities will receive an amount determined by the OCD for their project.

5. Project Development Phase:

Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

Project Eligibility: Verification that proposed activities are eligible under the Act.

Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

Environmental Review: Review of project for compliance with State and Federal environmental regulations.

6. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will terminate a community’s grant if progress on the project is not apparent within 6 months from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANTS

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

Special Program Requirement for Housing Rehabilitation Applications: Beginning with the 2004 CDBG program, applications for housing rehabilitation will only be accepted every other year. After selection of the successful 2004 housing rehabilitation applicants, the remainder of the unsuccessful applicants that meet or exceed the minimum 80 point total will be placed in rank order and starting with the highest, OCD will designate those applicants who will be 2005 housing rehabilitation recipients. The number of applicants designated and final approval will be contingent upon the expected 2005 CDBG allotment from HUD and submission by the selected applicants of a letter of intent and public hearing documentation in 2005. Successful applicants for housing rehabilitation funding will be prohibited from submission of another housing rehabilitation application for 3 program years. Applications for Innovative Housing will continue to be accepted on an annual basis.

(a) Eligible Activities:

i) Eligible activities under Housing Rehabilitation are rehabilitation of occupied or vacant single-family or multi-family housing units, same site replacement housing and relocation assistance.

ii) Eligible activities under Innovative Housing Projects include: acquisition, alternative housing, code enforcement, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, historic preservation, lead based paint removal, new housing construction as allowed by HUD regs, same site replacement housing, provision of potable water or sewer systems, relocation assistance, and removal of architectural barriers and must be directly related to assisting or creating LMI residential housing units.

(b) Housing Assessment Planning Priority: All communities applying for 2004 Housing Rehabilitation or Innovative Housing funds who have completed a comprehensive housing assessment study within the past five years which meets OCD requirements will receive a bonus score of 5 points. New plans submitted with applications will be reviewed for content and consistency with OCD requirements prior to scoring. Housing Assessment Plans deemed incomplete or non-comprehensive will receive no bonus point total. Communities with plans older than five years will be permitted to demonstrate that their plan is either under active implementation and is still valid or has been updated within the past five years. It is no longer mandatory to submit a Housing Assessment Plan.

(c) All communities applying for Housing Assistance funds must certify that they will:

i) adhere to M.R.S.A. Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units.

ii) provide a match equivalent of 10 percent of the total grant award.

iii) adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

3. Special Program Requirements:

(a) Maximum Housing Assistance Grant Amount: $400,000

(b) Maximum Housing Assistance Program Costs: The amount of rehabilitation grants or loans available to participants in the Housing Rehabilitation Program will be no more than $15,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, Life Safety Code violations, foundation work, inadequate sewage disposal, lack of potable water, removal of lead-based paint, asbestos, radon, or other hazardous material, accessibility modifications. Except for acquisition/relocation and those activities listed above, all other eligible activities under the Innovative Housing Program are limited to a maximum of $25,000 per unit assisted

(c) Maximum Administrative Costs: The Housing Rehabilitation Assistance program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 15% of the grant amount.

(d) Section 8 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, etc.

4. Selection Process: The selection process for all Housing Rehabilitation and Innovative Housing applications will consist of two phases – an application phase and a project development phase.

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

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

Scoring: Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; and 5000 and greater. Each application will then be assigned a Housing Evaluation Factor based on the most recent data available in the following areas:

% Substandard housing

% Households spending more than 25% of income for housing

% Unemployment in community

% Community unemployment above state average

% Community is over State equalized tax rate

% Community LMI

% Community population below 150% of poverty

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

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

Housing Rehabilitation

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

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

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

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

Innovative Housing Projects

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

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

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

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

B. HOME REPAIR NETWORK PROGRAM (Limited to the City of Rockland)

The Home Repair Network Program (HRN) provides funding to address housing problems of low- and moderate-income persons by combining CDBG funding with the Maine State Housing Authority and the United States Department of Agriculture Rural Development Program. This program will provide housing rehabilitation services administered on a regional basis throughout Maine, except as stated in 1 (b) below.

1. Special Threshold Criteria and Certifications: Home Repair Network Program funds will be distributed through a set aside of CDBG funds provided to the City of Rockland as the lead community. The lead community will establish a legally binding contract with each of the seven Maine Community Action Agencies or other entities identified in the Home Repair Network rules that will act as the program administrators. Prior to award of grant funds by OCD, the lead community must complete all Project Development requirements.

(a) Eligible Activities:

(i) Eligible activities under the Home Repair Network Program are rehabilitation of occupied or vacant single-family or multi-family housing units, demolition, same site replacement housing, provision of potable water and sewer systems, removal of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers, and relocation assistance.

(b) Housing units ineligible for Home Repair Network assistance:

(i) Housing units located in communities that have current CDBG Housing Rehabilitation programs or the entitlement communities of Auburn, Bangor Lewiston and Portland are not eligible for financial assistance under the HRN program.

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

(i) adhere to M.R.S.A. Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units.

(ii) provide a match equivalent of 10 percent of the total grant award.

(iii) adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

Special Program Requirements:

Maximum Home Repair Network Grant Amount: $700,000, with $100,000 allocated to each of the seven identified regions.

(b) Maximum Home Repair Network Program Costs: The amount of grants or loans available to participants in the Home Repair Network Program will be no more than $15,000 per unit. Additional funds, up to a maximum of $10,000 may be available in the following cases: replacement housing, Life Safety Code violations, foundation work, inadequate sewage disposal, lack of potable water, removal of lead-based paint, asbestos, radon, or other hazardous material, and accessibility modifications. In no case may the maximum of $25,000 be exceeded.

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

(c) Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, etc. In addition, all units must comply with other applicable standards included in the HRN contract.

C. PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides gap funding for local public facility activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Facilities Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the PF program are construction, acquisition, reconstruction, rehabilitation, site clearance, historic preservation, and relocation assistance associated with public facilities projects.

(b) Match: All communities applying for PF funds must certify that they will provide a cash match of at least 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

2. Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific Public Facilities activity group. Applicants cannot mix activities from different Public Facilities activity groups in an application.

Special Program Requirements:

(a) Maximum Public Facilities Grant Amounts

Activity Group Numbers Maximum Amount

1. Fire Stations $250,000

2. Community, child, senior, and health centers, libraries

sheltered workshops, homeless shelters, pier/wharf $250,000

3. Removal of architectural barriers $100,000

(as a distinct, stand-alone project)

4. Historic preservation $100,000

(as a distinct, stand-alone project)

5. Fire fighting equipment, salt/sand storage shed

transfer station, parks and recreation facilities

public works garage, dams $ 50,000

(b) Funding Restrictions: PF may not be used for the purpose of job creation/retention or housing activities.

(c) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of M.R.S.A. Title 30-A, Chapter 205, § 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.” This demonstration must be made as part of the application.

(d) Requirement for Applications for Removal of Architectural Barriers as a Stand Alone Project: Communities seeking to assist any existing facility utilized for the conduct of general local government must be a 51% or more low-to-moderate income community.

(e) Requirements for Applications for Historic Preservation as a Stand Alone Project: Applicants must submit with the application a letter from the State Historic Preservation Officer endorsing the proposed project and certifying that the facility is currently on or eligible for inclusion on, the National Register of Historic Places.

(f) Priority for Public Facilities Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PF program funds. Lists of the service and specialized service center communities are available from the State Planning Office or OCD.

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

Application: The application deadline is November 21, 2003.

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

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

Review Areas:

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

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

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

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

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM

The Public Infrastructure Grant (PI) Program provides gap funding for local infrastructure activities, which are part of a community development strategy leading to future public and private investments.

1. Special Threshold Criteria and Certifications: Public Infrastructure Program funds will be distributed through an annual grant application submission and review process.

(a) Eligible Activities: Eligible activities in the PI program are construction, acquisition, reconstruction, installation, relocation assistance associated with public infrastructure, and infrastructure in support of new affordable LMI housing construction.

(b) Match: All communities applying for PI funds must certify that they will provide a cash match of at least 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

Program Activities:

Activity Breakdown: Applicants may apply for one or more activities within a specific Public Infrastructure activity group. Applicants cannot mix activities from different Public Infrastructure activity groups in an application.

Special Program Requirements:

(a) Maximum Public Infrastructure Grant Amounts

Activity Group Numbers Maximum Amount

1. Water system installation/improvements, sewer system

installation/improvements, water/sewer system hookups, $400,000

storm drainage, utility infrastructure (Road or street

reconstruction is not eligible)

2. Infrastructure in support of new LMI affordable housing $400,000

3. Streets/roads/sidewalks, parking, curbs, gutters $100,000

(b) Funding Restrictions: PI funds may not be used to assist infrastructure for the purpose of job creation/retention. Job creation/ retention infrastructure activities are eligible in the Economic Development Infrastructure Grant program. With the exception of proposals for infrastructure in support of new housing construction and sewer/water system hookups, no housing activities may be assisted with PI funds. All other eligible housing activities are listed in the Housing Assistance Grant program section of this Statement.

(c) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of M.R.S.A. Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. This demonstration must be made as part of the application.

(d) Priority for Public Infrastructure Projects: Service and specialized service center communities and activities supporting the revitalization of downtown areas will be given priority during the evaluation and selection process for awarding PI program funds. Lists of the service and specialized service center communities are available from the State Planning Office or OCD.

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

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

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

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

Review Areas:

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

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

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

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

E. ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM

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

1. Threshold Criteria and Certifications: Applications for the EDI Program will be accepted on the following dates: February 20, 2004, May 21, 2004 and August 20, 2004.

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

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

(c) Project Benefit: At a minimum, 51% of all jobs created or retained as a result of an EDI project must be taken by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDI, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

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

2. Special Program Requirements:

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

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

a market exists for its product or service,

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

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

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

no unidentified costs are necessary for implementation.

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

(d) EDI Projects in Support of Retail Businesses: OCD may accept an EDI Program application in support of a retail business activity only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business.

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

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

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

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

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

Problem Statement (15 points):

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

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

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

Solution (15 points):

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

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

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

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

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

Number of jobs created/retained: 8 points

Percentage of full time jobs 5 points

EDI dollars per job created/retained 6 points

Quality of jobs available for LMI persons 6 points

Citizen Participation (10 Points):

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

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

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

Sources (5 pts) - Describe all sources of funding that have been sought for this specific project, and detail of their proposed use and if not secured, the reason why.

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

(g) Unemployment Factor (5 points): The OCD will derive a community unemployment factor score from the following:

Unemployment Rate: (3 pts) - A score determined by taking the community’s most recent unemployment rate, dividing it by the most recent state unemployment rate and multiplying the result by 2. Communities with a most recent unemployment rate greater than the state will receive the total points allowed.

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

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

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

F. PUBLIC SERVICE GRANTS

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

1. Special Threshold Criteria and Certifications: Public Service Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include operating and program material expenses for child care, health care, job training, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse counseling and treatment, and energy conservation counseling and testing. Structural changes such as construction, renovation, or rehabilitation are not eligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in the service area. The clientele of PSG projects are limited to:

(i) Persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally low/moderate persons.

Abused Children

Battered Spouses

Elderly Persons

Severely Disabled Adults

Homeless Persons

Illiterate Adults

Migrant Farm Workers

Persons Living with AIDS

• OR -

(ii) Participants in a program designed to limit the PSG funded benefit exclusively to those determined to be Low and Moderate Income persons for the twelve-month period prior to receiving program benefit.

(c) All communities applying for PSG funds must certify that:

(i) The public service represents a new service to the community; or a quantifiable increase in the level of an existing service;

(ii) A match equivalent of 20 percent of the total grant award will be provided; and,

(iii) The activity will meet the need or will continue after PSG funding is expended.

2. Special Program Requirements:

(a) Maximum Public Service Grant Amount: $50,000

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

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

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

(a) Problem Statement (30 points):

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

(b) Proposed Solution (40 points):

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

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

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

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

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

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

G. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to communities to implement comprehensive, integrated, and innovative solutions to the problems facing their downtown districts. These community revitalization projects must be part of a strategy that targets downtown service and business districts and will lead to future public and private investment. Qualified applicant communities must have a downtown district meeting the definition of PL 776 enacted by the 119th legislature.

1. Special Threshold Criteria and Certifications: Downtown Revitalization Program funds will be distributed through an annual grant application selection process.

(a) Eligible activities include all those eligible under the Public Facilities, Public Infrastructure, Public Service, Housing Assistance, Micro-Loan, or Business Assistance programs as relevant to the revitalization of a downtown district.

(b) Match – All communities applying for Downtown Revitalization funds must certify that they will provide a cash match equivalent to 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

2. Special Program Requirements

(a) Planning Requirements: Applicants must have completed either a CDBG funded Quality Main Street Planning process or an equivalent downtown revitalization planning process within the past five years. Communities with plans older than five years must demonstrate that their plans are under active implementation and the action plan remains valid, or have been updated within the past 5 years. The proposed DR activities must be in the plan as recommended actions for downtown revitalization.

(b) Maximum Award: $400,000

(c) Bonus Points for Service and Specialized Center Communities: Applicants will receive three bonus points if they have been identified by the State Planning Office as a service or specialized center community.

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

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

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

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

(a) Problem Statement (30 points):

(i) Scope of Problems (15 points) – Identification and description of the nature and magnitude of the identified problems to be addressed with DR funds.

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

(b) Solution (30 points):

(i) Project Description (10 points) – Description of how funds will be used. Include a project budget

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

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

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

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

(e) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons or 2) preventing or eliminating slum or blighting conditions. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of M.R.S.A. Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. This demonstration must be made as part of the application.

H. COMMUNITY ENTERPRISE GRANT PROGRAM

The Community Enterprise Program (CE) provides grant funds to assist in innovative solutions to problems faced by small or micro-businesses and facilitate good management practices and business facade improvements in downtown and village areas. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

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

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

Program Activities: Applicants may not apply in more than one of the activity

groups listed below.

4. Special Program Requirements:

(a) Maximum Community Enterprise Grant Amounts

Activity Group Numbers Maximum Amount

1. Micro-Grants/Loans $100,000

2. Micro-Enterprise Grants/Loans $ 50,000

3. Business Facade Grants $100,000

4. Downtown Manager $ 50,000

(b) Project Benefit:

Micro Grant/Loan: At a minimum, 51% of the jobs created or retained as a result of the MG/L project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the MG/L, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for MG/L assistance. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

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.

Business Facade Grants: Project benefit will be met when exterior improvements and signage on an existing business takes place in a designated slum/blight area, or documentation exists that a business qualifies under a spot blight basis.

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

Special Micro Grant/Loan Program Requirements:

(a) Necessary and Appropriate: All grants/loans made from the Micro-Grant/Loan Program to for-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without MG/L assistance.

(b) Financing Plan: Micro Grant/Loans are limited to a maximum of $25,000 per grant or loan. MG/L may provide 100% of the financing up to $15,000. MG/L exceeding $15,000 require a dollar-for-dollar match for the portion of the grant/loan exceeding $15,000.

(c) Micro Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Program eligible loans will be able to capitalize a ML revolving loan fund with their ML loan repayments.

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

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

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

(a) Problem Statement (35 points):

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

Proposed Solution (45 points):

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

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

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

(c) Citizen Participation (20 points):

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

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

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

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

(a) Problem Statement (35 points):

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

(b) Proposed Solution (45 points):

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

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

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

(c) Citizen Participation (20 points):

(i) Business Involvement: (10 points) – Description of how the business community participated in the development of the proposed facade grant program.

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

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

The required application submissions for the Downtown Manager Grant are:

A signed Application Cover Sheet

Documentation of community-wide 51% LMI designation

Proof of designation as a Main Street Maine Community

Letter of Support from the Maine Development Foundation

Documentation of a minimum 10% local cash match

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

Documentation of a duly advertised public hearing

I. URGENT NEED GRANTS

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

Special Threshold Criteria and Certifications:

(a) Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended, the applicant must address a community development need which:

(i) poses a serious and immediate threat to the health or welfare of the community;

(ii) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(iii) is a project the applicant cannot finance on its own. “Cannot finance on its own” means, that the town’s tax burden, regulatory structure, utility user fees, bonding capacity, or previous or existing budgetary commitments, precludes it from assuming the additional financial obligation needed for this project; and

(iv) cannot be addressed with other sources of funding.

2. Special Program Requirements:

(a) Necessary Documentation: The emergency situation must require immediate action to alleviate the serious and imminent threat of injury or loss of life resulting from a natural or man-made cause.

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

(c) Maximum UN Amount: $100,000

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

Application: An UN application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

Phase II Project Development: Prior to consideration of a grant award, all UN proposals must meet the four Threshold criteria and the Special Program requirements. Project Development Phase applications must comply with the following:

(a) Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

(b) Management Plan: Details of the structure and methods established by the community for program management.

(c) Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: The UN funds will be available beginning March 5, 2004. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the Director, Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

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. Economic development programs are offered in the following categories:

Category Maximum Award Amount

Business Assistance (BA) $400,000

The BA program provides grants for gap financing to assist businesses to create or retain jobs for low and moderate-income persons.

Applications Due: February 20, 2004, May 21, 2004, August 20, 2004

Development Fund (DF) $250,000

The DF program provides loans for gap financing to assist businesses to create or retain jobs for low and moderate-income persons.

Applications Due: February 20, 2004, May 21, 2004, August 20, 2004

Regional Assistance Fund (RAF) $200,000

The RAF program provides grants for required local match to bring additional money to the State to assist businesses to create or retain jobs for low and moderate-income persons or for eligible economic development planning activities.

Applications Due: February 20, 2004, May 21, 2004, August 20, 2004

1. Threshold Criteria:

(a) Project Benefit: Projects must be an eligible economic development planning activity in the case of RAF or in all other instances, at a minimum, 51% of all jobs created or retained as a result of the project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the program award, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

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

(c) Eligible Activities: The eligible activities are as follows:

BA - acquisition, reconstruction, rehabilitation, or installation of commercial or industrial buildings, structures, capital equipment, and real property improvements.

DF - acquisition, reconstruction, rehabilitation, or installation of commercial or industrial buildings, structures, capital equipment, real property improvements, personal property and equipment and operating capital. DF program funds cannot be used to refinance existing debt.

RAF - provide the required local match necessary to secure new funds to the State for acquisition, reconstruction, rehabilitation, or installation of commercial or industrial buildings, structures, capital equipment, and real property improvements, personal property and equipment and eligible economic development planning activities.

2. Program Requirements:

(a) Necessary and Appropriate: Program assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(b) Financing Plan: For other than eligible RAF planning activities, the program application must present a financing plan for a project in which the request comprises the lesser of the maximum award amount or 40% of the total project cost. Project activities and use of funds to calculate the non-program financing must represent a new investment or a new project. The financing necessary to support at least 60% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(c) Exclusions: Communities receiving a BA, DF or RAF award may not receive any other CDBG funded economic development activity award (including EDI) for the same project or business during the same program year.

(d) DF Program ONLY:

Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between DECD and the community.

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 locational cost differentiations and the benefit derived from the assistance. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

3. Selection Process: Project applications will be evaluated as a viable business proposal or RAF eligible planning activity. The following will be considered:

(a) Strategy Priority: The program will give priority to business activities that support the state’s economic development strategy. The Program, whenever possible, will be targeted towards economic sectors identified in the strategy.

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

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

no unidentified costs are necessary for implementation.

(c) Financial Plan: The financing for the project must be in place and legally binding commitments submitted with the application. The financing need for the project must be based on an assessment of its financial resources and show a reasonable leverage ratio of private and public dollars. The proposal must be structured to meet any cash flow projections. The project pro forma must be reviewed by an independent qualified financial professional. The financing plan must be complete with no unidentified uses of funds necessary to complete the project. Any attorney fees and closing costs are the responsibility of the business and cannot be paid with program proceeds. In the case of DF awards, the business must pay all attorney fees and related closing fees at the time of loan closing.

(d) Equity: The proposed program recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for cash equity as determined by the DECD.

(e) Repayment - DF Loan: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(f) Security DF ONLY: The proposed loan recipient must present collateral appropriate to secure the DF Loan and indicate a willingness to execute security agreements. The discount collateral coverage ratio is 1:1. In projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation. Personal guaranty and/or principal life insurance assignment may be required on a case-by-case basis. Purchase money security interest is required on all machinery and equipment purchased with DF loan proceeds unless the purchase price exceeds the loan amount, in which case a pro-rated share interest will be held with any other lender(s).

(g) Public Benefit: The proposal will be evaluated on the basis of the community and economic benefits resulting from the project.

(h) Cost: The number of permanent jobs created or retained per program dollar and the increase in local tax revenue resulting from the project will be evaluated. Overall project cost effectiveness also will be considered.

(i) Low and Moderate Income Benefit: Benefit to LMI persons will be evaluated. The integration of job training programs, job advancement opportunities, education and training programs, and referral services from Joint Training Partnership Act and Job Service will also be reviewed.

(j) Community and Economic Development: The primary and secondary impacts of the project on the community’s current and future economic development will be evaluated.

4. Approval Process:

(a) Application: Applications must be submitted on the appropriate dates. RAF applications must not be submitted until an application has been accepted by the appropriate agency (such as EDA) and is working toward a full application. Once submitted, the DECD Economic Development application Review Team will evaluate 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. DECD or its designee will conduct a project development, financial and credit analysis for each proposal.

(b) Staff Recommendations: Following the ED Review Team evaluation, one of the following recommendations will be made to the Director, Office of Community Development and the DECD Commissioner:

(i) approval of requested amount and terms;

(ii) approval of requested amount but under different terms;

(iii) rejection with staff recommendations for resubmission or to provide additional information; or,

(iv) rejection.

B. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) at least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iii) the IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

C. PINE TREE DEVELOPMENT ZONES SET ASIDE

The Pine Tree Development Zones Set Aside (PTDZ) provides $1,000,000 in CDBG funding targeted for business growth in areas within Pine Tree Zones designated by DECD under 30-A M.R.S.A. C. 206, Sub-c.3. The Pine Tree Zones are established to foster development and create employment opportunities for low/moderate income persons in specific areas within regions of economic need in Maine, which will be governed through cooperative agreements adopted by all participating communities.

1. Threshold Criteria:

(a) The proposed PTDZ activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created as a result of the PTDZ project must be taken by persons of low and moderate income. Jobs created must be in the designated Pine Tree Development Zone to be assisted with the PTDZ application, be new jobs to that Zone, and not be associated with any other branches of the assisted business located elsewhere. Job retention is not an allowable program benefit activity. Transfer positions cannot be counted toward the job creation/retention requirements. PTDZ assistance. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

2. Special Program Requirements:

(a) Eligible Applicants: Eligible applicants are limited to units of general local government participating in a Pine Tree Development Zone as designated by DECD. The entitlement communities of Auburn, Bangor, Lewiston, and Portland are not eligible to receive PTDZ funds. In addition, project activities may not take place in the entitlement communities listed above. Eligible applicants as defined above may apply for PTDZ assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

(b) Eligible CDBG Programs and Activities: Eligible CDBG programs under the PTDZ Set Aside are Economic Development Infrastructure, Business Assistance, Regional Assistance Fund, Development Fund and Interim Financing program. PTDZ projects must comply with all rules and regulations set forth in each of the CDBG programs listed in this section including, but not limited to, eligible activities, application procedures and deadlines, maximum dollar awards, national objectives, Project Development Phase and special program requirements, as necessary.

SECTION 4. PLANNING

A. COMMUNITY PLANNING GRANTS

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: Community Planning Program funds will be distributed through a twice-yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000 or up to $15,000 for Mutli-Community Housing Assessment Plans.

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

Application: The maximum application length is five pages. The application deadlines are March 5, 2004 and August 6, 2004.

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

Scoring: Each application will be evaluated in relation to other communities and placed in rank order from highest to lowest according to the scores determined by the scoring team. Starting at the top of the scoring list, the review team will recommend a list of projects to the Director, Office of Community Development to proceed into the project development phase.

Review Areas:

(a) Problem Statement (30 points): A description of the problems, how they were identified, and the impact on the community and on LMI persons or slum/blighting conditions.

(b) Development of Strategy (30 points): A description of the tasks proposed to solve the community’s problems. Description of how the project will address a CDBG national objective. Include a proposed budget and describe how funds will be used.

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

(d) Citizen Participation (20 points): A description of how citizens, community groups, and project beneficiaries were involved in this application and how involvement will continue.

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS

The Project Development Phase Planning Grant Program enables communities to gather, analyze, and provide information required by the Project Development Phase process.

1. Threshold Criteria:

(a) Eligible Applicants: All communities invited into the Project Development Phase for a CDBG Program except for the Community Planning Grant Program.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Project Development Phase requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule of completion.

(d) Federal and State Certifications: Communities applying for Project Development Phase Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Communities will submit a Project Development Phase Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Project Development Phase requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant’s proposal. Project Development Phase Planning Grants will be awarded on an as-needed basis. The OCD staff shall determine recipients and amount of assistance.

4. Maximum Grant Award: $2,500

C. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

D. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

E. LEAD HAZARD CONTROL FUND

A set aside of $100,000 will be used to match the Lead Hazard Control Program administered by the Maine State Housing Authority. Funds will be spent solely for lead hazard reduction activities on CDBG income eligible households. Administration will not be an eligible use of funds. OCD in conjunction with MSHA will select an eligible unit of local government as a grantee for the Lead Hazard Control Fund. Dwelling units located in the entitlement communities of Auburn, Bangor, Lewiston, and Portland are not eligible to receive CDBG program funds.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Local governments receiving grants as a result 2004 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2004 CDBG program, or added to the available monies for the 2003 or 2005 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2004 CDBG program, or added to the available monies for the 2003 or 2005 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2004 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2004 CDBG program or added to the available monies for the 2003 or 2005 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 2004 competitions but did not receive funding, and the possibility of holding additional competitions during the 2004 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2004 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF, BA and ML programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2004 award may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of grant announcement.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2004 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedure Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-9819

TTY (207) 287-2656

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

7

2004 CDBG Program Statement

Chapter 33 Community Development Block Grant Program: 2005 Final Statement

Code Me. R. 19-498 Ch. 33 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-33 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 33}

CHAPTER 33 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT 5

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 11

A. HOUSING ASSISTANCE GRANT PROGRAM 11

B. HOME REPAIR NETWORK PROGRAM (Limited to the City of Rockland) 15

C. PUBLIC FACILITIES GRANT PROGRAM 17

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM 21

E. PUBLIC SERVICE GRANT PROGRAM 25

G. DOWNTOWN REVITALIZATION PROGRAM 29

H. COMMUNITY ENTERPRISE GRANT PROGRAM 33

I. URGENT NEED GRANT PROGRAM 37

SECTION 3. ECONOMIC DEVELOPMENT 39

A. ECONOMIC DEVELOPMENT PROGRAM 39

B. NON-PROFIT DEVELOPMENT GRANT PROGRAM 45

C. INTERIM FINANCE PROGRAM 47

D. PINE TREE DEVELOPMENT ZONES SET ASIDE 49

SECTION 4. PLANNING 50

A. COMMUNITY PLANNING GRANT PROGRAM 50

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS 53

C. TECHNICAL ASSISTANCE PROGRAM 54

D. SPECIAL PROJECTS MATCHING FUND 54

E. LEAD HAZARD CONTROL FUND 54

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME 55

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 55

B. PROGRAM INCOME 56

SECTION 6. APPEALS 57

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 58

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 33 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2005 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2005 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2005 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums and hearings with program constituents, and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD held three public hearings regarding this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons

Preventing or eliminating slums or blights

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2005 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Public Facilities Grants

Public Infrastructure Grants

Public Service Grants

Downtown Revitalization Grants

Community Enterprise Grants

Urgent Need Grants

Economic Development

Business Assistance Grants

Development Fund Loans

Non-Profit Development Grants

Pine Tree Development Zone Set Aside

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Project Development Phase Planning Grants

Special Projects

Special Projects Matching Fund

Lead Hazard Control Fund

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Lewiston, South Portland and Portland are not eligible to receive State CDBG program funds. The City of Biddeford will also be ineligible if it gains status as an entitlement community for the 2005 CDBG program.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants) or send whoever will be administering their program to the next offered grant administrator or rehabilitation technician training program. The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities, Community Planning Grants and Project Development Planning activities are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00PM EST on the dates listed:

Public Facilities………………………………………………...………December 10, 2004

Public Infrastructure………………………………………..………....December 10, 2004

Downtown Revitalization…………………………………..……….……January 14, 2005

Community Enterprise…...………………………………….…….…..…January 14, 2005

Housing Assistance (Innovative Housing Only)………….……..….…….February 4, 2005

Economic Development Program...…………………………….…..…February 11, 2005

….…...……………………….………..…May 13, 2005

…….….…………………….……..…August 12, 2005

(May 13 and August 12 application deadlines are based upon availability of funds)

Non-Profit Development Grants…………………………..……….……January 14, 2005

Community Planning.……………………………………..……………..……March 4, 2005

………………………………………..……………….August 5, 2005

Urgent Need …………………………………...1st come basis beginning March 4, 2005

Public Service…………………………………………………………..……....April 8, 2005

Interim Financing Program………………………………………………………..…..Open

Project Development Phase Planning Grants…………………………………..…Open

G. PROGRAM BUDGET

FY 2005 CDBG Budget $16,859,633

Administration 437,193

Technical Assistance Administration 168,596

Regional Council Technical Assistance 124,500

Special Projects Matching Fund 279,344

Lead Hazard Control Fund 200,000

1. Housing Assistance Grants

Housing Rehabilitation * 1,500,000

Innovative Housing 800,000

2. Home Repair Network Program 700,000

3. Public Infrastructure Grants 3,400,000

4. Public Facilities Grants 1,700,000

5. Public Service Grants 200,000

6. Downtown Revitalization Grants 1,000,000

7. Community Enterprise Grants 750,000

8. Urgent Need Grants 100,000

9. Economic Development Program

Business Assistance Grant Category 2,500,000

Development Fund Loan Category **

Pine Tree Development Zones Set Aside 2,500,000

10. Non-Profit Development Grants 250,000

11. Interim Financing Program ***

12. Section 108 Loan Program ****

13. Community Planning Round 1 – March 4, 2005 100,000

Round 2 – August 5, 2005 100,000

14. Project Development Phase Planning Grants 50,000

*This program is only available in 2005 for the following communities: Amity, Bucksport, Caribou, Van Buren, and Waterville.

** The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

*** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

**** If the DECD application to HUD for the Section 108 Loan Program is approved, the 2005 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agenicies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2005 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2004 award may not apply again in that specific program until the 2006 program. PI grantees in Activity Group Number 1, as listed in Section 2. D. 3. (a) (1) on Page 21 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Rehabilitation Grantees: Beginning with the 2004 CDBG program all applicants awarded a Housing Rehabilitation grant may not apply again for Housing Rehabilitation funds for a three (3) year period. Applicants awarded a Housing Rehabilitation grant may not apply in the Innovative Housing Category for a two (2) year period.

(d) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(e) Past Performance: In order to be eligible to apply for a 2005 Community Development Block Grant program, communities that received CDBG grants in or prior to 2001 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2002 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2003 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2004 CDBG grants must be under contract with DECD.

(f) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(g) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(h) Project Benefit: Applications will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

(i) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if program benefits are not achieved as specified in their contract with the DECD.

(j) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(k) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Lewiston, South Portland and Portland are eligible to apply for and receive State CDBG program funds. The City of Biddeford will also be ineligible if it gains status as an entitlement community for the 2005 CDBG program. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Scoring Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Economic Development Program, Special Project Matching Fund, Urgent Need Grants and Non-Profit Development Grants will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Dropping the lowest and highest scores assigned by members of the 5-person OCD Review Team, averaging the remaining scores and adding any applicable bonus points will determine final scores. Starting at the top of the scoring list, applicants above the minimum required score will be invited to proceed to the Project Development Phase as funds allow. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

5. Project Development Phase:

Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

Project Eligibility: Verification that proposed activities are eligible under the Act.

Project Benefit: Verification that proposed activities meet one of the CDBG Program national objectives.

Environmental Review: Review of project for compliance with State and Federal environmental regulations.

6. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

Special Threshold Criteria and Certifications: Housing Assistance Program (HA) funds will be distributed through a grant application selection process with one eligible funding category in 2005.

Special Program Requirement for Housing Rehabilitation Applications: Beginning with the 2004 CDBG program, applications for housing rehabilitation will only be accepted every other year. After selection of the successful 2004 housing rehabilitation applicants, the remainder of the applicants that met or exceeded the minimum 80 point total were placed in rank order and starting with the highest, OCD designated those applicants who will be 2005 housing rehabilitation recipients. The recipient communities are Amity, Bucksport, Caribou, Van Buren and Waterville. Final approval of these 2005 recipients is contingent on the amount of the State of Maine 2005 CDBG allotment from HUD. Successful applicants for housing rehabilitation funding will be prohibited from submission of another housing rehabilitation application for 3 program years. No applications for Housing Rehabilitation will be accepted during the 2005 CDBG program. Applications for Innovative Housing will continue to be accepted on an annual basis.

Eligible Housing Assistance Activities:

(i) Eligible activities under Housing Rehabilitation are rehabilitation of occupied or vacant single-family or multi-family housing units, same site replacement housing and relocation assistance.

(ii) Eligible activities under Innovative Housing Projects include: acquisition, alternative housing, code enforcement, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, historic preservation, lead based paint removal, new housing construction as allowed by HUD regs, same site replacement housing, provision of potable water or sewer systems, relocation assistance, and removal of architectural barriers and must be directly related to assisting or creating LMI residential housing units.

Housing Assessment Planning Priority: All communities applying for 2005 Innovative Housing funds who have completed a comprehensive housing assessment study within the past five years which meets OCD requirements will receive a bonus score of 5 points. New plans submitted with applications will be reviewed by OCD prior to scoring. Housing Assessment Plans deemed incomplete or non-comprehensive will receive no bonus point total. Communities with plans older than five years will be permitted to demonstrate that their plan is either under active implementation and is still valid or has been updated within the past five years. It is no longer mandatory to submit a Housing Assessment Plan.

(a) All communities applying for Innovative Housing funds must certify that they will:

(i) Adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units.

(ii) Provide a cash match of at least 20 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc. contributed to the project.

(iii) Adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

3. Special Program Requirements:

(a) Maximum HA Grant Amount: $400,000

(b) Maximum Housing Assistance Program 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 Innovative Housing Program are limited to a maximum of $30,000 per unit assisted

(c) Maximum Administrative Costs: The Housing Rehabilitation Assistance program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 15% of the grant amount.

(d) Section 8 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, etc.

4. Selection Process: The selection process for all Innovative Housing applications will consist of two phases – an application phase and a project development phase. The 2005 Housing Rehabilitation recipient communities of Amity, Bucksport, Caribou, Van Buren and Waterville must complete all required project development tasks.

Application: The maximum length of an application is five pages, not counting required attachments. The application deadline for the Innovative Housing program is 4:00PM on February 4, 2005. Each application will be rated in relation to all others in a four-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 65 points is obtainable.

(i) Impact (15 points):

*A description of the specific housing problems to be addressed with HA funds – 4 points

*How the problems were identified – 3 points

*How these issues affect LMI persons in the community or

region – 5 points

*Past local efforts involving housing projects – 3 points

(ii) Development Strategy (15 points):

*A description of the plan proposed to implement the housing project – 3 points

*How emphasis will be placed on a community based approach – 3 points

*Collaborative efforts to be utilized – 3 points

*Summary of the activities and use of HA funds – 3 points

*Budget Page review – 3 points

(iii) Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project – 4 points

*How firm is documentation of the cash commitment – 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 20%

0% - 15% – 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv) Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 3 points

*Involvement of potential LMI project beneficiaries in development of application and project – 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 3 points

Stage 2: Housing Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Housing Evaluation Factor based on the most recent data available in the six areas below. A maximum of 30 points is obtainable.

% Substandard housing – 5 points

% Households spending more than 25% of income for housing

– 5 points

% Unemployment in community & % Community unemployment above state average – 5 points

% Community is over State equalized tax rate – 5 points

% Community LMI – 5 points

% Community population below 150% of poverty – 5 points

Stage 3: Housing Assessment Bonus – 5 bonus points will be assigned to each application for which an approved comprehensive housing assessment study has been submitted to OCD.

Stage 4: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest; the Housing Evaluation Factor; and the Housing Assessment Bonus. A minimum Final Application Score of 80 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.

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 systems, removal of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers, and relocation assistance.

(b) Housing units ineligible for Home Repair Network assistance:

(i) Housing units located in communities that have current CDBG Housing Rehabilitation programs or the entitlement communities of Auburn, Bangor Lewiston, South Portland and Portland are not eligible for financial assistance under the HRN program. Units in the City of Biddeford will also be ineligible if it gains status as an entitlement community for the 2005 CDBG program.

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

(i) Adhere to MRSA Title 10, Chapter 214, Energy Efficiency Building Performance Standards Act, Section 1415-C (1), (1A) and Section 1415-G in the construction of any new residential housing units.

(ii) Provide a match equivalent of 10 percent of the total grant award.

(iii) Adhere to Title 24 CFR Part 35 regarding Lead Based Paint Hazards effective September 15, 2001.

Special Program Requirements:

(a) Maximum HRN Grant Amount: $700,000, with $100,000 allocated to each of the seven identified regions.

(b) Maximum Home Repair Network Program Costs: The amount of grants or loans available to participants in the 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 12.5% 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.

(c) Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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.

(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.

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 $100,000

(as a distinct, stand-alone project)

4. Historic preservation $100,000

(as a distinct, stand-alone project)

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 with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.” This demonstration must be made as part of the application.

(d) Requirement for Applications for Removal of Architectural Barriers as a Stand Alone Project: Communities seeking to assist any existing facility utilized for the conduct of general local government must be a 51% or more low-to-moderate income community.

(e) Requirements for Applications for Historic Preservation as a Stand Alone Project: Applicants must submit with the application a letter from the State Historic Preservation Officer endorsing the proposed project and certifying that the facility is currently on or eligible for inclusion on, the National Register of Historic Places.

(f) Priority for Public Facilities Projects: 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 two phases: an application phase and a project development phase.

(a) Application: The application deadline for the PF Program is 4:00PM on December 10, 2004. 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 70 points is obtainable.

(i) Impact (15 points):

*A description of the why the project is necessary – 3 points

*Conditions warranting new construction or renovations, including health and safety concerns– 4 points

*How these conditions affect LMI persons in the community or region – 4 points

*Size and make up of user base of facility – 2 points

*Why PF funds are necessary for project – 2 points

(ii) Development Strategy (20 points):

*A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location – 5 points

*Specific use of PF funds – 3 points

*Positive effect on LMI persons – 3 points

*Project timeline, engineering or architectural work completed to date and how PF funds will be expended in a timely manner – 6 points

*Budget Page review – 3 points

(iii) Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project – 4 points

*How firm is documentation of the cash commitment – 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 25%

0% - 15% – 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv) Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 3 points

*Involvement of potential LMI project beneficiaries in development of application and project – 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 3 points

Stage 2: Community Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the five areas below. A maximum of 30 points is obtainable.

% Households spending more than 25% of income for housing

– 6 points

% Unemployment in community & % Community unemployment above state average – 6 points

% Community is over State equalized tax rate – 6 points

% Community LMI – 6 points

% Community population below 150% of poverty – 6 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest and the Community Evaluation Factor. A minimum Final Application Score of 80 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. 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.

(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.

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.

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, $500,000

storm drainage, utility infrastructure (Road or street

reconstruction is not eligible)

2. Infrastructure in support of new LMI affordable housing $500,000

3. Streets/roads/sidewalks, parking, curbs, gutters $200,000

(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 with the application. This demonstration must be made as part of the application.

(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 two phases: an application phase and a project development phase.

(a) Application: The application deadline for the PI Program is 4:00PM on December 10, 2004. 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 70 points is obtainable.

(i) Impact (15 points):

*A description of the why the project is necessary, including health and safety concerns – 4 points

*How the project was prioritized locally, including studies, testing, and citizen concerns – 3 points

*How these conditions affect users, including LMI persons in the community or region – 4 points

*Size and make up of user base and target area of projected infrastructure project – 2 points

*Why PI funds are necessary for project – 2 points

(ii) Development Strategy (20 points):

*A description of the new or replacement infrastructure, including size, design factors, alleviation of health and safety factors and location – 5 points

*Specific use of PI funds – 3 points

*Positive effect on users, particularly LMI persons – 3 points

• Project timeline, engineering and design work completed to date and how PI funds will be expended in a timely manner – 6 points

*Budget Page review – 3 points

(iii) Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project – 4 points

*How firm is documentation of the cash commitment – 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 25%

0% - 15% – 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv) Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 3 points

*Involvement of potential LMI project beneficiaries in development of application and project – 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 3 points

Stage 2: Community Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the five areas below. A maximum of 30 points is obtainable.

% Households spending more than 25% of income for housing

– 6 points

% Unemployment in community & % Community unemployment above state average – 6 points

% Community is over State equalized tax rate – 6 points

% Community LMI – 6 points

% Community population below 150% of poverty – 6 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest and the Community Evaluation Factor. A minimum Final Application Score of 80 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 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. Structural changes such as construction, renovation, or rehabilitation are not eligible for PSG funding.

(b) Project Benefit: Eligible PSG projects provide benefits to a specific group of persons and not everyone in the service area. The clientele of PSG projects are limited to:

(i) Persons who are members of the following groups that are currently presumed by HUD to meet benefit requirements. The presumption may be challenged if there is substantial evidence the group served by the project is most likely not comprised of principally 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.

(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: $50,000

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

Application: The maximum length of an application is five pages, not counting required attachments. The application deadline for the PSG program is 4:00PM on April 8, 2005. 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 70 points is obtainable.

(i) Impact (15 points):

*A description of the scope, magnitude and severity of the identified problems – 3 points

*Past effort to deal with the identified problems – 3 points

*Conditions requiring a new or expanded service – 3 points

*Issues faced by service providers including capacity, finances and staffing – 3 points

*Why PSG funds are critical for the project – 3 points

(ii) Development Strategy (20 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 – 4 points

*How PS funds will be utilized solely to assist LMI persons or a HUD approved Limited Clientele group – 3 points

*Project timeline, including a start date, tasks completed to date and how PSG funds will be expended in a timely manner – 4 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 – 3 points

*Budget Page review – 3 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 – 3 points

(iii) Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project – 3 points

*How firm is documentation of the cash commitment – 3 points

*Matching Funds Table review - 5 points

*% which all firm commitments exceed minimum 20%

0% - 15% – 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 5 points

(iv) Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 3 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 3 points

*Involvement of potential LMI project beneficiaries in development of application and project – 3 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 3 points

Stage 2: Community Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the five areas below. A maximum of 30 points is obtainable.

% Households spending more than 25% of income for housing

– 6 points

% Unemployment in community & % Community unemployment above state average – 6 points

% Community is over State equalized tax rate – 6 points

% Community LMI – 6 points

% Community population below 150% of poverty – 6 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest and the Community Evaluation Factor. A minimum Final Application Score of 80 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.

G. DOWNTOWN REVITALIZATION PROGRAM

The Downtown Revitalization Program (DR) will provide funds to communities to implement comprehensive, integrated, and innovative solutions to the problems facing their downtown districts. These community revitalization projects must be part of a strategy that targets downtown service and business districts and will lead to future public and private investment. Qualified applicant communities must have a downtown district meeting the definition of PL 776 enacted by the 119th legislature.

1. Special Threshold Criteria and Certifications: 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, Public Service, Housing Assistance, Community Enterprise, or Economic Development programs as relevant to the revitalization of a downtown district.

(b) 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 Service and Specialized Center Communities: Applicants will receive three bonus points if they have been identified by the State Planning Office as a Regional Service Center or a Contiguous Census Designated Place and Compact Urban Area Designated as Regional Service 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 eight pages, not counting required attachments. The application deadline for the DR Program is 4:00PM on January 14, 2005. Each application will be rated in relation to all others in a four-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 70 points is obtainable.

(i) Impact (15 points):

*Scope and magnitude of identified problems; specific infrastructure, resources or programs that are lacking; and how these problems are obstacles for successful revitalization of the downtown area – 4 points

*How the problems are consistent with those identified in the community’s Downtown Action Plan – 2 points

*How the problems affect LMI persons or contribute to slum/blight conditions – 3 points

*How the problems negatively impact the local economy and the viability of existing downtown area businesses or new development and expansion – 4 points

*Why DR funds are necessary for project – 2 points

(ii) Development of Strategy (20 points):

*Specific activities, including location, size and design features to be addressed in this downtown revitalization effort; how these activities address each problem identified; or, if aspects of the Action Plan are identified to be addressed in the future, what are the potential future solutions and possible funding sources – 4 points

*How the proposed activities provide a long-term solution to the identified problems – 2 points

*Specific use of DR funds – 2 points

*Positive effect on LMI persons and/or alleviation of slum/blight conditions – 3 points

• Project timeline; start date; engineering and design work completed to date; involvement of local businesses; who will be implementing the DR project; and how DR funds will be expended in a timely manner – 4 points

*How the DR project will stimulate business in the downtown area and provide for long-term viability – 3 points

*Budget Page review – 2 points

(iii) Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project – 4 points

*How firm is documentation of the cash commitment – 5 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 25%

0% - 15% – 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 2 points

(iv) Citizen Participation (15 points):

*How overall citizen participation process directly relates to identification of solution strategies and application development - 3 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 2 points

*Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 3 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

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 3 points

Stage 2: Community Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the five areas below. A maximum of 30 points is obtainable.

% Households spending more than 25% of income for housing

– 6 points

% Unemployment in community & % Community unemployment above state average – 6 points

% Community is over State equalized tax rate – 6 points

% Community LMI – 6 points

% Community population below 150% of poverty – 6 points

Stage 3: Service Center Bonus – 3 bonus points will be assigned to each application submitted by a SPO designated Regional Service Center or a Contiguous Census Designated Place and Compact Urban Area Designated as Regional Service Center.

Stage 4: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest; Community Evaluation Factor and the Service Center Bonus. A minimum Final Application Score of 80 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.

H. COMMUNITY ENTERPRISE GRANT PROGRAM

The Community Enterprise Program (CE) provides grant funds to assist in innovative solutions to problems faced by small or micro-businesses and facilitate good management practices and business facade improvements in downtown and village areas. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

Threshold Criteria and Certifications: CE Program funds will be distributed through an annual grant application selection process.

Program Activities: Applicants may apply in more than one of the activity

groups listed below but are limited to a total of $125,000 in CE funds.

(a) Eligible Activities:

(i) Eligible activities under the Micro-Grant/Loan-Micro-Enterprise Grant/Loan category are grants or loans to for-profit or non-profit businesses.

(ii) Eligible activities under the Business Façade Grants and Streetscapes category for Façade Grants are: 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. Eligible activities for Streetscapes are: pocket parks, benches, street lighting, tree plantings, signage, traffic calming improvements, sidewalks and other approved improvements. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements are not eligible. All streetscape improvements must take place on public property.

3. Special Program Requirements:

(a) Maximum CE Grant Amount

Activity Group Numbers Maximum Amount

1. Micro-Grant/Loan-Micro-Enterprise Grant/Loan $100,000

2. Business Facade Grants & Streetscapes $125,000

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

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

(ii) Business Façade Grant: $25,000

(c) Project Benefit:

(i) Micro Grant/Loan: At a minimum, 51% of the jobs created or retained as a result of the MG/L project must be taken by persons of low and moderate income. At least one job must be created as a result of Micro Grant/Loan assistance. Jobs created/ retained must be in the community applying for the MG/L, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements in the community applying for MG/L assistance. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) Micro-Enterprise Grant/Loan: Existing or developing businesses that have, or will have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Employees are not considered in meeting project benefit.

(iii) Business Facade Grants: Project benefit will be met when 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.

(iv) Streetscapes: Project benefit will be met when 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.

Special Micro Grant/Loan Category Requirements:

(a) Necessary and Appropriate: All grants/loans made from the Micro-Grant/Loan activity Group to for-profit businesses must be for projects that are necessary and appropriate as defined by HUD. Documentation must be provided that the project cannot proceed without MG/L assistance.

(b) Micro Loan Program Income: Grantees who demonstrate demand for additional Micro-Loan Activity Group eligible loans will be able to capitalize a ML revolving loan fund with their ML loan repayments.

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

(a) Application: The maximum length of an application is five pages, not counting required attachments. The application deadline for the

CE Program is 4:00PM on January 14, 2005. 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 70 points is obtainable.

(i) Impact (25 points):

*Scope and magnitude of identified problems; and how these problems are obstacles for successful revitalization of the village or downtown area – 7 points

• Why CE funds are necessary for the project; why other grant or loan funds are not available locally to assist businesses or local government with their development and site improvement needs – 6 points

*How the problems affect LMI persons and/or contribute to slum/blight conditions – 6 points

*How the problems negatively impact the local economy and the viability of existing downtown or village area businesses or new development and expansion – 6 points

(ii) Development of Strategy (25 points):

*Specific activities, including location, size and design features to be addressed in this application; specific use of CEG funds – 6 points

*Identification and description of potential business grant/loan applicants and their current needs; or how areas in need of streetscape improvements were identified and prioritized – 4 points

• Project timeline; activities or actions completed to date; capacity and related experience which will enable the applicant to market and conduct a grant/loan program or streetscape improvement effort; and how CEG funds will be expended in a timely manner – 7 points

*How the CEG project will stimulate business in the downtown or village area and provide for long-term viability – 4 points

*Positive impact on LMI persons and/or or alleviation of slum/blight conditions – 4 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 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

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 4 points

Stage 2: Community Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the five areas below. A maximum of 30 points is obtainable.

% Households spending more than 25% of income for housing

– 6 points

% Unemployment in community & % Community unemployment above state average – 6 points

% Community is over State equalized tax rate – 6 points

% Community LMI – 6 points

% Community population below 150% of poverty – 6 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest; Community Evaluation Factor and the Service Center Bonus. A minimum Final Application Score of 80 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.

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.

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 $100,000.

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

Application: An UN application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

(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 4, 2005. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the Director, Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

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:

1. Business Assistance Grant Category (BA)

Activity Group 1 – Non-Municipal owned

(a) Grants for gap financing to assist an identified business to create or retain jobs for low and moderate-income persons; or

Activity Group 2 – Municipal owned

(a) Grants to Maine communities for gap financing to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of identified business and industry.

(b) Grants for required local match to conduct eligible economic development planning activities.

2. Development Fund Loan Category (DF)

(a) Loans for gap financing to assist specified businesses to create or retain jobs for low and moderate-income persons.

1. Threshold Criteria:

(a) Project Benefit: Except for eligible economic development planning activities, projects must document that at a minimum, 51% of all jobs created or retained as a result of the project must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(b) Cost Per Job: The maximum cost per job created or retained with EDP funds in a non Pine Tree Development Zone is $20,000. The maximum cost per job created or retained with EDP funds for eligible Pine Tree Development Zone applicants is $30,000.

(c) Eligible Activities: The eligible activities for each program category are as follows:

Category 1 - Business Assistance Grant (BA) Maximum Award

Activity Group 1 - Non-Municipal Owned

1. Rehabilitation of commercial or industrial $400,000

buildings, structures, capital equipment, and real

property improvements.

2. Non-capital equipment and operating capital $200,000

Activity Group 2 - Municipal owned

1. Acquisition, relocation, demolition, clearance, $400,000

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.

2. Required local match necessary to $ 50,000

secure new funds to the State for eligible economic

development planning activities.

Category 2 - Development Fund Loan (DF)

1. Acquisition, or installation of commercial or industrial $250,000

buildings, and site improvements. DF program funds

cannot be used to refinance existing debt.

2. Program Requirements:

(a) EDP Application Due Dates: 4:00PM on February 11, 2005, May 13, 2005 and August 12, 2005

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

Agreement to Participate and Benefit Certification: The business and the applicant community must submit signed documentation agreeing to participate in the EDP program, to comply with all program requirements and to complete the Job Creation/Retention Agreement.

Maximum % of EDP Assistance and Matching Funds Requirements:

(i) For non-municipal owned BA and DF activities, the program application must present a financing plan for a project in which the request comprises the lesser of the maximum award amount or 50% of the total project cost. Project activities and use of funds to calculate the non-program financing must represent a new investment or a new project. The financing necessary to support at least 50% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application. In addition, for municipal owned BA activities, the community must provide a minimum cash match of 20 percent of the total BA award. This match must be directly related to the BA infrastructure portion of the project and is in addition to any investment made by the assisted business.

(ii) For BA eligible planning activities, the community must provide documentation that the amount requested is the lesser of the maximum award amount or the actual match required by the funding agency.

(e) Exclusions: Communities receiving a BA or DF award may not receive any other EDP award for the same project or business during the same program year.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP application in support of a retail business activity only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business.

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

(g) DF Program Specific Requirements:

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between DECD and the community.

(ii) 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 locational cost differentiations and the benefit derived from the assistance. The normal interest rate will be 5% however, a special interest rate of 2% 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. EDP applications will be evaluated as a viable business proposal or eligible planning activity. Each EDP application will be rated in relation to all others. The total points from the Problem, Solution, Citizen Participation, Commitment and Numerical Analysis will be used to determine the score for each application. Applications will be placed in rank order from highest to lowest. Applications scoring more than 95 points will be given first consideration from the top of the list and continuing downward until the allocation for the EDP funding round is exhausted. The following criteria will be considered during the application phase:

Problem (10 points) Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Solution (10 points) Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need; how the project will proceed to completion within 12 months from the date of a contract award with DECD; and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

Citizen/Business Participation (10 points) Describe the involvement of the specific business and the general citizenry in this application process.

Commitment (10 points) Describe all sources of funding that have been sought for this specific project and if not secured, the reason why. Provide documentation for all funding secured for this project.

Numerical Analysis (95 points) Based on an analysis of the following factors:

Strategy Priority (5 points) Does the activity support the State’s economic development strategy.

(ii) Natural Resource Based (10 points) Does the activity support a natural resource based industry (5 pts). Does the activity provide value added products derived from natural resource based industries (5 pts).

(iii) Project Significance (80 points) For this section, each application will be evaluated in relation to those of similar sized communities. Applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Scores will be based on a maximum of 10 points in each of the following areas:

• 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 ave.

• % of LMA unemployment above state ave.

• $’s per job created/retained

• Quality of job created/retained based on wage and fringe

• % non EDP $’s in project

(f) Project Development Phase: The project development phase will include the following additional information along with required state and federal requirements necessary for final approval.

(i) Financial/Management Plan: The application must include a business/management/financial plan as outlined in the application package. Submission will be rated on completeness and soundness of information.

(ii) Equity: The proposed program recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for cash equity as determined by the DECD.

(iii) Repayment - DF Loan: Loan repayment terms will allow a project to be implemented while providing the maximum and most expeditious return of CDBG DF monies.

(iv) Chance of Success: does the proposal demonstrate the following:

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.

(v) Security DF ONLY: The proposed loan recipient must present collateral appropriate to secure the DF Loan and indicate a willingness to execute security agreements. The discount collateral coverage ratio is 1:1. In projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation. Personal guaranty and/or principal life insurance assignment may be required on a case-by-case basis.

(vi) Public Benefit: The proposal will be evaluated on the basis of the community and economic benefits resulting from the project including the increase in local tax revenue resulting from the project will be evaluated.

(vii) Community and Economic Development: The primary and secondary impacts of the project on the community’s current and future economic development will be evaluated.

4. Review Process:

(a) Application: Applications must be submitted on the appropriate dates. BA planning activity applications must not be submitted until an application has been accepted by the appropriate agency (such as EDA) and is working toward a full application. Once submitted, the EDP Application Review Team will evaluate 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. DECD or its designee may conduct a project development, financial and credit analysis for each proposal.

(b) EDP Review Team Recommendations: Following the EDP Review Team evaluation, one of the following recommendations will be made to the Director, Office of Community Development and the DECD Commissioner:

(i) approval of award under recommended amount and/or terms;

rejection with staff recommendations for resubmission or to provide additional information; or,

(iii) rejection.

B. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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) Bone-fide Non-Profit Development Organization: NPDG activities may only be carried out by bone-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bone-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Application: The application deadline for the NPDG Program is 4:00PM on January 14, 2005. The OCD Review Team will rate each application in relation to all others.

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

(i) Documentation of bone-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 20 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 20 points

(viii) Pine Tree Zone Bonus: NPDG applications supporting project activities taking place in a designated Pine Tree Zone shall receive a bonus of 10 points.

(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.

C. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for eligible Pine Tree Development Zone applicants is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

D. PINE TREE DEVELOPMENT ZONES SET ASIDE

The Pine Tree Development Zones Set Aside (PTDZ) provides $2,500,000 in CDBG funding targeted for business growth in areas within Pine Tree Zones designated by DECD under 30-A MRSA C. 206, Sub-c.3. The Pine Tree Zones are established to foster development and create employment opportunities for low/moderate income persons in specific areas within regions of economic need in Maine, which will be governed through cooperative agreements adopted by all participating communities.

1. Threshold Criteria:

(a) The proposed PTDZ activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created as a result of the PTDZ project must be taken by persons of low and moderate income. Jobs created must be in the designated Pine Tree Development Zone to be assisted with the PTDZ application, be new jobs to that Zone, and not be associated with any other branches of the assisted business located elsewhere. Job retention is not an allowable program benefit activity. Transfer positions cannot be counted toward the job creation/retention requirements. PTDZ assistance. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with Economic Development program funds in support of PTDZ activities is $30,000.

2. Special Program Requirements:

(a) Eligible Applicants: Eligible applicants are limited to units of general local government participating in a Pine Tree Development Zone as designated by DECD. The entitlement communities of Auburn, Bangor, Lewiston, South Portland and Portland are not eligible to receive PTDZ funds. The City of Biddeford will also be ineligible if it gains status as an entitlement community for the 2005 CDBG program. In addition, project activities may not take place in the entitlement communities listed above. Eligible applicants as defined above may apply for PTDZ assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

(b) Eligible CDBG Programs and Activities: Eligible CDBG programs under the PTDZ Set Aside are the Economic Development Program and Interim Financing Program. PTDZ projects must comply with all rules and regulations set forth in each of the CDBG programs listed in this section including, but not limited to, eligible activities, application procedures and deadlines, maximum dollar awards, national objectives, Project Development Phase and special program requirements, as necessary.

SECTION 4. PLANNING

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a twice-yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000 or up to $15,000 for Mutli-Community Housing Assessment Plans.

(b) Match: All communities applying for CPG funds must certify that they will provide a cash match equivalent to 10 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

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 five pages, not counting required attachments. The application deadlines for the CPG Program are 4:00PM on March 4, 2005 and August 5, 2005. 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 (25 points):

*A description of the scope, magnitude and severity of the identified problems – 5 points

*How the problems were identified – 5 points

*Past effort to deal with the identified problems – 5 points

*Impact of the problem on LMI persons or slum/blight conditions – 5 points

*Why CPG funds are critical for the project – 5 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 5 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended in a timely manner – 8 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 8 points

*Budget Page review – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 5 points

*Experience of the applicant community with planning projects – 4 points

(iii) Project Leverage (20 points):

*How other cash resources (local, state, federal, private) will contribute to completion of the project – 3 points

*How firm is documentation of the cash commitment – 3 points

*Matching Funds Table review - 5 points

*% which firm cash commitments exceed minimum 20%

0% - 15% – 1 points

16% - 30% - 2 points

31% - 50% - 3 points

More than 50% – 4 points

*Establishment of cash value equivalent and direct relationship to project for all in-kind commitments - 5 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 application and project – 4 points

*How attendance, comments, etc. at the required public hearing relate to the application development and citizen participation process – 4 points

Stage 2: Final Application Score – Each application will receive a Final Application Score consisting of adding the sum of an average of the five Review Point Totals after dropping the highest and lowest and the Community Evaluation Factor. A minimum Final Application Score of 80 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.

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS

The Project Development Phase Planning Grant Program enables communities to gather, analyze, and provide information required by the Project Development Phase process.

1. Threshold Criteria:

(a) Eligible Applicants: All applicants invited into the Project Development Phase for a CDBG Program except for the Community Planning Grant Program.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Project Development Phase requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule of completion.

(d) Federal and State Certifications: Applicants applying for Project Development Phase Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Applicants will submit a Project Development Phase Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Project Development Phase requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant’s proposal. Project Development Phase Planning Grants will be awarded on an as-needed basis. The OCD staff shall determine recipients and amount of assistance.

4. Maximum Grant Award: $2,500

C. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

D. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

E. LEAD HAZARD CONTROL FUND

A set aside of $200,000 will be used to match the Lead Hazard Control Program administered by the Maine State Housing Authority. Funds will be spent solely for lead hazard reduction activities on CDBG income eligible households. Administration will not be an eligible use of funds. OCD in conjunction with MSHA will select an eligible unit of local government as a grantee for the Lead Hazard Control Fund. Dwelling units located in the entitlement communities of Auburn, Bangor, Lewiston, South Portland and Portland are not eligible to receive assistance through the Lead Hazard Control Fund. Units located in the City of Biddeford will also be ineligible if it gains status as an entitlement community for the 2005 CDBG program.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2005 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2005 CDBG program, or added to the available monies for the 2004 or 2006 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2005 CDBG program, or added to the available monies for the 2004 or 2006 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2005 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2005 CDBG program or added to the available monies for the 2004 or 2006 competition.

3. Basis for Redistribution: The decision 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 scores above the specified point threshold in 2005 competitions but did not receive funding, and the possibility of holding additional competitions during the 2005 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2005 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and BA programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2005 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2005 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-9819

TTY (207) 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

EFFECTIVE DATE:

September 15, 2004 - filing 2004-392

NON-SUBSTANTIVE CHANGES:

October 21, 2004 - math calculation on page 14

59

2005 CDBG Program Statement

Chapter 34 Community Development Block Grant Program: 2006 Final Statement

Code Me. R. 19-498 Ch. 34 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-34 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 34}

CHAPTER 34: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES 4

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT 5

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 11

A. HOUSING ASSISTANCE GRANT PROGRAM 11

B. HOME REPAIR NETWORK PROGRAM (Limited to the City of Rockland) 15

C. PUBLIC FACILITIES GRANT PROGRAM 17

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM 21

E. PUBLIC SERVICE GRANT PROGRAM 25

G. DOWNTOWN REVITALIZATION PROGRAM 28

H. COMMUNITY ENTERPRISE GRANT PROGRAM 31

I. URGENT NEED GRANT PROGRAM 34

SECTION 3. ECONOMIC DEVELOPMENT 36

A. ECONOMIC DEVELOPMENT PROGRAM 36

B. NON-PROFIT DEVELOPMENT GRANT PROGRAM 42

C. INTERIM FINANCE PROGRAM 44

D. PINE TREE DEVELOPMENT ZONES SET ASIDE 46

SECTION 4. PLANNING & SPECIAL PROJECTS 47

A. COMMUNITY PLANNING GRANT PROGRAM 47

B. PROJECT DEVELOPMENT PHASE PLANNING GRANTS 50

C. TECHNICAL ASSISTANCE PROGRAM 51

D. SPECIAL PROJECTS MATCHING FUND 51

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME 52

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 52

B. PROGRAM INCOME 53

SECTION 6. APPEALS 54

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 55

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR: DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 34: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2006 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2006 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2006 CDBG program has been developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums and hearings with program constituents, and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD has held three public hearings regarding this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2006 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Public Facilities Grants

Public Infrastructure Grants

Public Service Grants

Downtown Revitalization Grants

Community Enterprise Grants

Urgent Need Grants

Economic Development

Business Assistance Grants

Development Fund Loans

Non-Profit Development Grants

Pine Tree Development Zone Set Aside

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Project Development Phase Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES

The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and South Portland are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants). The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities, Community Planning Grants and Project Development Planning activities are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – 4:00PM EST on the dates listed:

Public Facilities and Public Infrastructure

Letter of Intent and Verification of CDBG National Objective

……………….…………………………….……………….on or before December 2, 2005

Applications……..………………………………………………...………January 13, 2006

Downtown Revitalization…………………………………..………..…February 10, 2006

Community Enterprise………………………………………………….February 10, 2006

Non-Profit Development Grants…………………………..………..…February 10, 2006

Economic Development Program...…………………………….…..…February 10, 2006

…………………………………………...May 12, 2006

…….….…………………….……..…August 11, 2006

(May 12 and August 11 application deadlines are based upon availability of funds)

Housing Assistance………………………………………….……..….….….March 3, 2006

Public Service…………………………………………………………..…….March 31, 2006

Community Planning………………………………………………………….April 21, 2006

………………………………………..……………….August 4, 2006

Urgent Need ………………………………..….1st come basis beginning March 3, 2006

Interim Financing Program………………………………………………………..…..Open

Project Development Phase Planning Grants…………………………….……..…Open

G. PROGRAM BUDGET

FY 2006 CDBG Budget $14,466,214

Administration 389,324

Technical Assistance Administration 144,622

Regional Council Technical Assistance 100,000

Special Projects Matching Fund 202,228

1. Housing Assistance Grants 1,800,000

2. Home Repair Network Program 1,050,000

3. Public Infrastructure Grants 3,000,000

4. Public Facilities Grants 1,500,000

5. Public Service Grants 200,000

6. Downtown Revitalization Grants 800,000

7. Community Enterprise Grants 750,000

8. Urgent Need Grants 80,000

9. Economic Development Program

Business Assistance Grant Category 2,000,000

Development Fund Loan Category *

Pine Tree Development Zones Set Aside 2,000,000

10. Non-Profit Development Grants 250,000

11. Interim Financing Program **

12. Section 108 Loan Program ***

13. Community Planning Round 1 – April 21, 2006 80,000

Round 2 – August 4, 2006 80,000

14. Project Development Phase Planning Grants 40,000

• The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

*** If the DECD application to HUD for the Section 108 Loan Program is approved, the 2006 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agenicies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(i) Community Enterprise Program Prohibition - Communities applying

for a Community Enterprise Program (CE) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

(ii) Downtown Revitalization Program Prohibition - Communities applying

for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Community Enterprise Program (CE) grant in the same program year.

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are

permitted to apply in the same 2006 CDBG funding category as long as the

eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2005 award may not apply again in that specific program until the 2007 program. PI grantees in Activity Group Number 1, as listed in Section 2. D. 3. (a) (1) on Page 21 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Beginning with the 2006 CDBG program communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: Beginning with the 2006 CDBG program 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.

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2006 Community Development Block Grant program, communities that received CDBG grants in or prior to 2002 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2003 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2004 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2005 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Applications, and in the case of the Public Facilities and Public Infrastructure Grant programs, the Letter of Intent and Verification of CDBG National Objective will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and South Portland are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2006 Program Statement and 2006 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Economic Development Program, Special Project Matching Fund, Urgent Need Grants and Non-Profit Development Grants will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Dropping the lowest scores assigned by members of the 4-person OCD Review Team, averaging the remaining three scores and adding any applicable community evaluation factors or housing evaluation factors and bonus points will determine final scores. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Economic Development Program (EDP) and Non-Profit Development Grant Program (NPDG) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

Project Eligibility: Verification that proposed activities are eligible under

The Act.

Project Benefit: Verification that proposed activities meet one of the CDBG

Program National Objectives.

Environmental Review: Review of project for compliance with State and

Federal Environmental Regulations.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

Special Threshold Criteria and Program Requirements: Housing Assistance Program (HA) funds will be distributed through a grant application selection process with one eligible funding category in 2006.

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.

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, and removal of architectural barriers.

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: $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 $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 Housing Quality Standards: All units assisted or

created with HA funds must, at a minimum, meet HUD Section 8

Minimum 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 certified as general/rehab administrator or

have completed a procurement process under the guidelines of the

CDBG program (24 CFR Part 85) to hire a general/rehab

administrator subject to award of a HA contract.

Selection Process: The selection process for all HA applications will consist of two phases – an application phase and a project development phase.

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 3, 2006. 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 specific housing problems to be addressed with HA funds – 8 points

*How the problems were identified – 6 points

*How these issues affect LMI persons in the community or

region – 10 points

*Past local efforts involving housing projects – 6 points

(ii) Development Strategy (30 points):

*A description of the plan proposed to implement the housing project – 8 points

*How emphasis will be placed on a community based approach – 7 points

*Collaborative efforts to be utilized – 7 points

*Summary of the activities and use of HA funds – 8 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: Housing Evaluation Factor – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Housing Evaluation Factor based on application attachments and the most recent data available in the seven areas below. A maximum of 20 points is obtainable.

Budget Page Review – 2 points

% which firm cash commitments exceed minimum 10% or 20%

0% - 15% – 0 points

16% - 30% - 1 point

31% - 50% - 2 points

More than 50% – 3 points

% Substandard housing – 3 points

% Households spending > 25% income for housing – 3 points

% Community is over State equalized tax rate – 3 points

% Community LMI – 3 points

% Community population below 150% of poverty – 3 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the average of the remaining three Review Point Totals after dropping the lowest and the Housing 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.

(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.

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 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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.

(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.

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 $100,000

(as a distinct, stand-alone project)

4. Historic preservation $100,000

(as a distinct, stand-alone project)

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 2, 2005.

(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 on

or before 4:00PM on Friday December 2, 2005 according to the

requirements set forth in the 2006 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on January 13, 2006. 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 – 9 points

*Specific use of PF funds – 6 points

*Positive effect on LMI persons – 6 points

*Project timeline, engineering or architectural work completed to date and how PF funds will be expended in a timely manner – 9 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 – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the seven areas below. A maximum of 20 points is obtainable.

Budget Page Review – 2 points

% which firm cash commitments exceed minimum 25%

0% - 15% – 0 points

16% - 30% - 1 point

31% - 50% - 2 points

More than 50% – 3 points

% Substandard housing – 3 points

% Households spending > 25% income for housing – 3 points

% Community is over State equalized tax rate – 3 points

% Community LMI – 3 points

% Community population below 150% of poverty – 3 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the average of the remaining three Review Point Totals after dropping the lowest and the 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.

(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.

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.

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, $500,000

storm drainage, utility infrastructure (Road or street

reconstruction is not eligible)

2. Infrastructure in support of new LMI affordable housing $500,000

3. Streets/roads/sidewalks, parking, curbs, gutters $200,000

(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 2, 2005.

(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 2, 2005 according to the

requirements set forth in the 2006 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on January 13, 2006. 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, including health and safety conditions – 8 points

*How the project was prioritized locally, including studies, testing, and citizen concerns – 6 points

*How these conditions affect users, including LMI persons in the community or region – 8 points

*Size and make up of user base and target area of projected infrastructure project – 4 points

*Why PI funds are necessary for project – 4 points

(ii) Development Strategy (30 points):

*A description of the new or replacement infrastructure, including size, design factors, alleviation of health and safety factors and location – 8 points

*Specific use of PI funds – 6 points

*Positive effect on users, particularly LMI persons – 6 points

• Project timeline, engineering and design work completed to date and how PI funds will be expended in a timely manner – 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 – Each application will be evaluated in relation to those of similar sized communities and placed in rank order from highest to lowest according to the scores determined by the OCD Review Team. Starting at the top of the scoring list, applicant communities will be grouped in population categories per current Maine Municipal Association information as follows: less than 999; 1000 to 2499; 2500 to 4999; 5,000 to 7,499 and 7,500 and greater. Each application will then be assigned a Community Evaluation Factor based on the most recent data available in the seven areas below. A maximum of 20 points is obtainable.

Budget Page Review – 2 points

% which firm cash commitments exceed minimum 25%

0% - 15% – 0 points

16% - 30% - 1 point

31% - 50% - 2 points

More than 50% – 3 points

% Substandard housing – 3 points

% Households spending > 25% income for housing – 3 points

% Community is over State equalized tax rate – 3 points

% Community LMI – 3 points

% Community population below 150% of poverty – 3 points

Stage 3: Final Application Score – Each application will receive a Final Application Score consisting of adding the average of the remaining three Review Point Totals after dropping the lowest and the 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. 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

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 two phases – an application phase and a project development phase.

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 31, 2006. 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%

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 the average of the three remaining Review Point Totals after dropping the lowest. 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. 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, Public Service, Housing Assistance, Community Enterprise, or Economic Development programs as relevant to the revitalization of a downtown district.

(b) Multiple Year Award Prohibition - Beginning with the 2006 CDBG program, 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: $400,000

(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.

(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 10, 2006. 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):

*Scope and magnitude of identified problems; specific infrastructure, resources or programs that are lacking; and how these problems are obstacles for successful revitalization of the downtown area – 8 points

*How the problems are consistent with those identified in the community’s Downtown Action Plan – 4 points

*How the problems affect LMI persons or contribute to slum/blight conditions – 6 points

*How the problems negatively impact the local economy and the viability of existing downtown area businesses or new development and expansion – 8 points

*Why DR funds are necessary for project – 4 points

(ii) Development of Strategy (40 points):

*Specific activities, including location, size and design features to be addressed in this downtown revitalization effort; how these activities address each problem identified; or, if aspects of the Action Plan are identified to be addressed in the future, what are the potential future solutions and possible funding sources – 8 points

*How the proposed activities provide a long-term solution to the identified problems – 6 points

*Specific use of DR funds – 6 points

*Positive effect on LMI persons and/or alleviation of slum/blight conditions – 6 points

• Project timeline; start date; engineering and design work completed to date; involvement of local businesses; who will be implementing the DR project; and how DR funds will be expended in a timely manner – 8 points

*How the DR project will stimulate business in the downtown area and provide for long-term viability – 6 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: Maine Downtown Center 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 adding the average of the three remaining Review Point Totals after dropping the lowest and 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.

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 or non-profit businesses.

(ii) Eligible activities under the Business Façade Grants and Streetscapes category for Façade Grants are: 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. Eligible activities for Streetscapes are: pocket parks, benches, street lighting, tree plantings, signage, traffic calming improvements, sidewalks and other approved improvements. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements are not eligible. All streetscape improvements must take place on public 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 in

more than one of the activity groups listed below but are limited to a total

of $150,000 in CE funds.

Activity Group Numbers Maximum Amount

1. Micro-Enterprise Grant/Loan $100,000

2. Business Facade Grants & Streetscapes $150,000

(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: Project benefit will be met when 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: Project benefit will be met when 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 10, 2006. 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 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):

*Scope and magnitude of identified problems; and how these problems are obstacles for successful revitalization of the village or downtown area – 10 points

• Why CE funds are necessary for the project; why other grant or loan funds are not available locally to assist businesses or local government with their development and site improvement needs – 10 points

*How the problems affect LMI persons and/or contribute to slum/blight conditions – 10 points

*How the problems negatively impact the local economy and the viability of existing downtown or village area businesses or new development and expansion – 10 points

(ii) Development Strategy (40 points):

*Specific activities, including location, size and design features to be addressed in this application; specific use of CEG funds – 8 points

*Identification and description of potential business grant/loan applicants and their current needs; or how areas in need of streetscape improvements were identified and prioritized – 6 points

*Project timeline; activities or actions completed to date; capacity and related experience which will enable the applicant to market and conduct a grant/loan program or streetscape improvement effort; and how CEG funds will be expended in a timely manner – 10 points

*How the CEG project will stimulate business in the downtown or village area and provide for long-term viability – 6 points

*Positive impact on LMI persons and/or or alleviation of slum/blight conditions – 6 points

*Budget Page 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 the average of the three remaining Review Point Totals after dropping the lowest. 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.

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 3, 2006. Applications will be accepted on a first-come first-served basis. Following receipt of an application, OCD shall review the application and verify that it contains all the required information. Notification to the applicant of the Director, Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

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:

1. Business Assistance Grant Category (BA)

(a) Activity Group 1 – Non-Municipal owned

(i) Grants for gap financing to assist an identified business to create or retain jobs for low and moderate-income persons; or

(b) Activity Group 2 – Municipal owned

(i) Grants to Maine communities for gap financing to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of identified business and industry.

(ii) Grants for required local match to conduct eligible economic development planning and technical assistance activities.

(c) Development Fund Loan Category (DF)

(i) Loans for gap financing to assist specified businesses to create or retain jobs for low and moderate-income persons.

2. Threshold Criteria:

(a) Project Benefit: Except for eligible economic development planning activities, projects must document that at a minimum, 51% of all jobs created or retained as a result of the project must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(b) Cost Per Job: The maximum cost per job created or retained with EDP funds in a non Pine Tree Development Zone is $20,000. The maximum cost per job created or retained with EDP funds for eligible Pine Tree Development Zone applicants is $30,000.

(c) Minimum EDP Application Amount: $100,000.

(d) Maximum Project Size for Utilizing EDP Funds: $5,000,000

(e) Eligible Activities: The eligible activities for each program category are as follows:

Category 1 - Business Assistance Grant (BA) Maximum Award

Activity Group 1 - Non-Municipal Owned

1. Rehabilitation of commercial or industrial $400,000

buildings, structures, capital equipment, and real

property improvements.

2. Non-capital equipment and operating capital; or $200,000

technical assistance provided regionally to businesses

facing closure/bankruptcy needing advice to retain jobs

and/or in need of advice to expand operations for the

purpose of new job creation.

Activity Group 2 - Municipal owned

1. Acquisition, relocation, demolition, clearance, $400,000

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.

2. Required local match necessary to $ 50,000

secure new funds to the State for eligible economic

development planning activities.

Category 2 - Development Fund Loan (DF)

1. Acquisition, or installation of commercial or industrial $250,000

buildings, and site improvements. DF program funds

cannot be used to refinance existing debt.

3. Program Requirements:

(a) EDP Application Due Dates: 4:00PM on February 10, 2006, May 12, 2006

and August 11, 2006. The May 12 and August 11 application deadlines are

based upon availability of funds.

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

Agreement to Participate and Benefit Certification: The business and the applicant community must submit signed documentation agreeing to participate in the EDP program, to comply with all program requirements and to complete the Job Creation/Retention Agreement.

Maximum % of EDP Assistance and Matching Funds Requirements:

(i) For non-municipal owned BA and DF activities, the program application must present a financing plan for a project in which the request comprises the lesser of the maximum award amount or 50% of the total project cost. Projects totaling over $5,000,000 are not eligible for EDP assistance. Project activities and use of funds to calculate the non-program financing must represent a new investment or a new project. The financing necessary to support at least 50% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application. In addition, for municipal owned BA activities, the community must provide a minimum cash match of 20 percent of the total BA award. This match must be directly related to the BA infrastructure portion of the project and is in addition to any investment made by the assisted business.

(ii) For BA eligible planning activities, the community must provide documentation that the amount requested is the lesser of the maximum award amount or the actual match required by the funding agency.

(e) Exclusions: Communities receiving a BA or DF award may not receive any other EDP award for the same project or business during the same program year.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP application in support of a retail business activity only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business.

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

(g) DF Program Specific Requirements:

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between DECD and the community.

(ii) 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 locational cost differentiations and the benefit derived from the assistance. The normal interest rate will be 5% however, a special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

4. Selection Process: The selection process will consist of two phases, an application phase and a project development phase. EDP applications will be evaluated as a viable business proposal or eligible planning/technical assistance activity. Each EDP application will be rated in relation to all others. The total points from the Problem, Solution, Citizen Participation, Commitment and Numerical Analysis will be used to determine the score for each application. Applications will be placed in rank order from highest to lowest. Applications scoring more than 70 points will be given first consideration from the top of the list and continuing downward until the allocation for the EDP funding round is exhausted. The following criteria will be considered during the application phase:

Problem (15 points) Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Solution (15 points) Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need; how the project will proceed to completion within 12 months from the date of a contract award with DECD; and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

Citizen/Business Participation (10 points) Describe the involvement of the specific business and the general citizenry in this application process.

Numerical Analysis (60 points) Based on an analysis of the following factors:

Strategy Priority (5 points) Does the activity support the State’s economic development strategy.

(ii) Natural Resource Based (10 points) Does the activity support a natural resource based industry (5 pts). Does the activity provide value added products derived from natural resource based industries (5 pts).

(iii) Project Significance (45 points) Each application will be evaluated in relation to all others. Scores will be based on a maximum of 5 points in each of the nine following areas:

• 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

• $’s 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 wage and fringe

• % non EDP $’s in project

5. Review Process:

(a) Application: Applications must be submitted on the appropriate dates. BA planning activity applications must not be submitted until an application has been accepted by the appropriate agency (such as EDA) and is working toward a full application. Once submitted, the EDP Application Review Team will evaluate 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. DECD or its designee may conduct a project development, financial and credit analysis for each proposal.

(b) EDP Review Team Recommendations: Following the EDP Review Team evaluation, one of the following recommendations will be made to the Director, Office of Community Development and the DECD Commissioner:

(i) approval of award under recommended amount and/or terms;

rejection with staff recommendations for resubmission or to provide additional information; or,

(iii) rejection.

6. Project Development Phase: The project development phase will include the following additional information along with required state and federal requirements necessary for final approval.

(a) Financial/Management Plan: The application must include a business/management/financial plan as outlined in the application package. Submission will be rated on completeness and soundness of information.

(b) Equity: The proposed program recipient has made an equity commitment to

the project, preferably through cash injection. Other substantial participation may

substitute for cash equity as determined by the DECD.

(c) Repayment - DF Loan: Loan repayment terms will allow a project to be

implemented while providing the maximum and most expeditious return of

CDBG DF monies.

(d) Chance of Success: does the proposal demonstrate the following:

• 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.

(e) Security DF ONLY: The proposed loan recipient must present collateral

appropriate to secure the DF Loan and indicate a willingness to execute security

agreements. The discount collateral coverage ratio is 1:1. In projects involving

subsidiary corporations a corporate guaranty must be obtained from the

parent corporation. Personal guaranty and/or principal life insurance assignment

may be required on a case-by-case basis.

(f) Public Benefit: The proposal will be evaluated on the basis of the

community and economic benefits resulting from the project including the increase in local tax revenue resulting from the project will be evaluated.

(g) Community and Economic Development: The primary and secondary

impacts of the project on the community’s current and future economic development will be evaluated.

B. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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) Bone-fide Non-Profit Development Organization: NPDG activities may only be carried out by bone-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bone-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Application: The application deadline for the NPDG Program is 4:00PM on February 10, 2006. The OCD Review Team will rate each application in relation to all others.

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

(i) Documentation of bone-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 20 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 20 points

(viii) Pine Tree Zone Bonus: NPDG applications supporting project activities taking place in a designated Pine Tree Zone shall receive a bonus of 10 points.

(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.

C. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for eligible Pine Tree Development Zone applicants is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

D. PINE TREE DEVELOPMENT ZONES SET ASIDE

The Pine Tree Development Zones Set Aside (PTDZ) provides $2,000,000 in CDBG funding targeted for business growth in areas within Pine Tree Zones designated by DECD under 30-A MRSA C. 206, Sub-c.3. The Pine Tree Zones are established to foster development and create employment opportunities for low/moderate income persons in specific areas within regions of economic need in Maine, which will be governed through cooperative agreements adopted by all participating communities.

1. Threshold Criteria:

(a) The proposed PTDZ activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created as a result of the PTDZ project must be taken by persons of low and moderate income. Jobs created must be in the designated Pine Tree Development Zone to be assisted with the PTDZ application, be new jobs to that Zone, and not be associated with any other branches of the assisted business located elsewhere. Job retention is not an allowable program benefit activity. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created with Economic Development Program funds for PTDZ activities is $30,000.

(b) All applications for funding under the PTDZ must be in support of a

Certified Pine Tree Zone Business.

2. Special Program Requirements:

(a) Eligible Applicants: Eligible applicants are limited to units of general local government participating in a Pine Tree Development Zone as designated by DECD. The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and South Portland are not eligible to receive PTDZ funds. In addition, project activities may not take place in the entitlement communities listed above. Eligible applicants as defined above may apply for PTDZ assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

(b) Eligible CDBG Programs and Activities: Eligible CDBG programs under the PTDZ Set Aside are the Economic Development Program and Interim Financing Program. PTDZ projects must comply with all rules and regulations set forth in each of the CDBG programs listed in this section including, but not limited to, eligible activities, application procedures and deadlines, maximum dollar awards, national objectives, Project Development Phase and special program requirements, as necessary.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a twice-yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. The application deadlines for the CPG Program are 4:00PM on April 21, 2006 and August 4, 2006. 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past effort to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended in a timely manner – 8 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 8 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 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):

*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 an average of the three remaining Review Point Totals after dropping the lowest. 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. PROJECT DEVELOPMENT PHASE PLANNING GRANTS

The Project Development Phase Planning Grant Program enables communities to gather, analyze, and provide information required by the Project Development Phase process.

1. Threshold Criteria:

(a) Eligible Applicants: All applicants invited into the Project Development Phase for a CDBG Program except for the Community Planning Grant Program.

(b) Eligible Activities: Planning funds may only be used for planning activities necessary to complete Project Development Phase requirements.

(c) Need and Capacity: Applicants must demonstrate a need for financial assistance and provide a schedule of completion.

(d) Federal and State Certifications: Applicants applying for Project Development Phase Planning Grants must certify they will comply with all applicable federal and state CDBG program certifications.

2. Selection Process: Applicants will submit a Project Development Phase Planning Grant Proposal that demonstrates need for financial assistance to complete applicable Project Development Phase requirements and will describe how the funds will be used to complete those tasks.

3. Approval Process: OCD staff will review threshold criteria and the applicant’s proposal. Project Development Phase Planning Grants will be awarded on an as-needed basis. The OCD staff shall determine recipients and amount of assistance.

4. Maximum Grant Award: $2,500

C. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

D. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2006 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2006 CDBG program, or added to the available monies for the 2005 or 2007 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2006 CDBG program, or added to the available monies for the 2005 or 2007 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2006 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2006 CDBG program or added to the available monies for the 2005 or 2007 competition.

3. Basis for Redistribution: The decision 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 for the 2006 competitions that did not receive funding, and the possibility of holding additional competitions during the 2006 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2006 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and BA programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2006 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2006 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

8

19-498 Ch. 34: 2006 CDBG Program Statement

Chapter 35 Community Development Block Grant Program: 2007 Final Statement

Code Me. R. 19-498 Ch. 35 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-35 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 35}

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES 4

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT 5

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 12

A. HOUSING ASSISTANCE GRANT PROGRAM 12

B. HOME REPAIR NETWORK PROGRAM 15

C. PUBLIC FACILITIES GRANT PROGRAM 17

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM 20

E. PUBLIC SERVICE GRANT PROGRAM 23

F. (Reserved) 26

G. DOWNTOWN REVITALIZATION GRANT PROGRAM 26

H. COMMUNITY ENTERPRISE GRANT PROGRAM 30

I. URGENT NEED GRANT PROGRAM 33

SECTION 3. ECONOMIC DEVELOPMENT 35

A. ECONOMIC DEVELOPMENT PROGRAM 35

B. NON-PROFIT DEVELOPMENT GRANT PROGRAM 42

C. INTERIM FINANCE PROGRAM 44

SECTION 4. PLANNING & SPECIAL PROJECTS 46

A. COMMUNITY PLANNING GRANT PROGRAM 46

B. TECHNICAL ASSISTANCE PROGRAM 49

C. SPECIAL PROJECTS MATCHING FUND 49

SECTION 5. REDISTRIBUTION OF GRANT FUNDS AND PROGRAM INCOME 50

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 50

B. PROGRAM INCOME 51

SECTION 6. APPEALS 52

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 53

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Chapter 35: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2007 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2007 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2007 CDBG program has been developed by the Department of Economic and Community Development (DECD) following a review of past programs, a series of public forums and hearings with program constituents, and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD held four public hearings regarding the development of this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2007 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Public Facilities Grants

Public Infrastructure Grants

Public Service Grants

Downtown Revitalization Grants

Community Enterprise Grants

Urgent Need Grants

Economic Development

Business Assistance Grants

Development Fund Loans

Non-Profit Development Grants

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d)(3)(A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d)(5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES

The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and South Portland are not eligible to receive State CDBG program funds. In addition, if Cumberland County is granted status as an Entitlement County, member communities of that county will not be eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants). The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities including Community Planning Grants are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – All applications must be received at the physical location of the Office of Community Development by 4:00PM EST on the dates listed below:

Public Facilities and Public Infrastructure

Letter of Intent and Verification of CDBG National Objective

on or before December 1, 2006

Application January 12, 2007

Downtown Revitalization February 9, 2007

Community Enterprise February 9, 2007

Economic Development Program

Pre-Application February 2, 2007 and May 4, 2007

Application (Final Phase) April 6, 2007 and July 6, 2007

(May 4 pre-application deadline is based upon availability of funds)

Housing Assistance

Letter of Intent on or before January 12, 2007

Application March 2, 2007

Public Service

Letter of Intent on or before January 26, 2007

Application March 9, 2007

Community Planning April 6, 2007 and August 3, 2007

Urgent Need 1st come basis beginning March 2, 2007

Interim Financing Program Open

Special Projects Matching Fund Open

G. PROGRAM BUDGET

FY 2007 CDBG Budget $10,475,706

Administration 309,514

Technical Assistance Administration 104,757

Regional Council Technical Assistance 75,000

Special Projects Matching Fund 106,435

1. Housing Assistance Grants 1,000,000

2. Home Repair Network Program 1,050,000

3. Public Infrastructure Grants 2,500,000

4. Public Facilities Grants 1,200,000

5. Public Service Grants 200,000

6. Downtown Revitalization Grants 500,000

7. Community Enterprise Grants 750,000

8. Urgent Need Grants 80,000

9. Economic Development Program

Business Assistance Grant Category 2,500,000

Non-Profit Development Grants 0

Development Fund Loan Category *

Interim Financing Program **

Section 108 Loan Program ***

10. Community Planning Round 1 – April 6, 2007 50,000

Round 2 – August 3, 2007 50,000

• The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

*** If the DECD application to HUD for the Section 108 Loan Program is approved, the 2007 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

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

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

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2007 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2006 award may not apply again in that specific program until the 2008 program. PI grantees in Activity Group Number 1, as listed in Section 2. D. 3. (a) (1) on Page 21 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: 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.

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2007 Community Development Block Grant program, communities that received CDBG grants in or prior to 2003 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2004 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2005 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2006 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director, OCD in the case of applicants having existing Economic Development program awards where job creation benefit has not been met.

(i) Special Housing Assistance Grant Program (HA) Past Performance Requirement - Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Community Planning Grants, from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Applications, and in the case of the Public Facilities and Public Infrastructure Grant programs, the Letter of Intent and Verification of CDBG National Objective will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and South Portland are eligible to apply for and receive State CDBG program funds. In addition, if Cumberland County is granted status as an Entitlement County, member communities of that county will not be eligible to receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2007 Program Statement and 2007 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Economic Development Program, Special Project Matching Fund, Urgent Need Grants and Non-Profit Development Grants will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Dropping the highest and lowest scores assigned by members of the 5-person OCD Review Team, averaging the remaining three scores and adding any applicable community evaluation factors and bonus point totals will determine final scores. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

(a) Community Evaluation Factor: A pre-determined community evaluation factor with a maximum point total of 20 will be added to the average review team score for each application for the Housing Assistance, Public Infrastructure and Public Facilities grant programs to determine the final score. The Community Evaluation Factor will be pre-determined by an independent authority for each community in Maine and be published in the application package.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Economic Development Program (EDP) and Non-Profit Development Grant Program (NPDG) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

(d) Project Eligibility: Verification that proposed activities are eligible under The Act.

(e) Project Benefit: Verification that proposed activities meet one of the CDBG Program National Objectives.

(f) Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Community Planning Grant program OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

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.

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.

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 Housing Quality Standards: All units assisted or created with HA funds must, at a minimum, meet HUD Section 8 Minimum 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.

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.

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 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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.

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 $100,000

(as a distinct, stand-alone project)

4. Historic preservation $100,000

(as a distinct, stand-alone project)

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 a Letter 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.

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.

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, $500,000

storm drainage, utility infrastructure (Road or street

reconstruction is not eligible)

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 a Letter 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 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

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.

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.

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 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.

(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: Maine Downtown Center 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.

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: Project benefit will be met when 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: Project benefit will be met when 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.

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.

SECTION 3. ECONOMIC DEVELOPMENT

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:

1. Business Assistance Grant Category (BA)

(a) Activity Group 1 – Non-Municipal owned

(i) Grants for gap financing to assist an identified business to create or retain jobs for low and moderate-income persons; or

(b) Activity Group 2 – Municipal owned

(i) Grants to Maine communities for gap financing to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of identified business and industry.

(ii) Grants for required local match to conduct eligible economic development planning and technical assistance activities.

2. Development Fund Loan Category (DF)

(i) Loans for gap financing to assist specified businesses to create or retain jobs for low and moderate-income persons.

3. Threshold Criteria:

(a) Project Benefit: Except for eligible economic development technical assistance and planning activities, projects must document that at a minimum, 51% of all jobs created or retained as a result of the project must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(b) Cost Per Job: The maximum cost per job created or retained with EDP funds in a non Pine Tree Development Zone is $20,000. The maximum cost per job created or retained with EDP funds for eligible Pine Tree Development Zone applicants is $30,000. Pine Tree Development Zone eligible means that the business has been certified as a Pine Tree Development business by the DECD at the time of application and the business is/will be located in a Pine Tree Development Zone.

(c) Minimum EDP Application Amount: $100,000.

(d) Maximum Project Size for Utilizing EDP Funds: $5,000,000

(e) Eligible Activities: The eligible activities for each program category are as follows and also include eligible planning activities in order to complete the Project Development Phase:

Category 1 - Business Assistance Grant (BA) Maximum Award

Activity Group 1 - Non-Municipal Owned

1. Rehabilitation of commercial or industrial $400,000

buildings, structures, capital equipment, and real property improvements.

2. Non-capital equipment and operating capital; $200,000

or technical assistance provided regionally to businesses facing closure/bankruptcy needing advice to retain jobs and/or in need of advice to expand operations for the purpose of new job creation.

Activity Group 2 - Municipal owned

1. Acquisition, relocation, demolition, clearance, $400,000

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.

2. Required local match necessary to secure new $ 50,000

funds to the State for eligible economic development planning activities.

Category 2 - Development Fund Loan (DF)

1. Acquisition of existing facilities or land $400,000

and site Improvements necessary for the construction of a new facility. DF program funds cannot be used to refinance existing debt.

4. Program Requirements:

(a) EDP Pre-Application Due Dates: 4:00PM on February 2, 2007 and May 4, 2007. The May 4 application deadline is based upon availability of funds.

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

Agreement to Participate and Benefit Certification: The business and the applicant community must submit signed documentation agreeing to participate in the EDP program, to comply with all program requirements and to complete the Job Creation/Retention Agreement.

Maximum % of EDP Assistance and Matching Funds Requirements:

(i) For non-municipal owned BA and DF activities, the program application must present a financing plan for a project in which the request comprises the lesser of the maximum award amount or 50% of the total project cost. Projects totaling over $5,000,000 are not eligible for EDP assistance. Project activities and use of funds to calculate the non-program financing must represent a new cash investment or a new project. The financing necessary to support at least 50% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted in the application process. In addition, for municipal owned BA activities, the community must provide a minimum cash match of 20 percent of the total BA award. This match must be directly related to the BA infrastructure portion of the project and is in addition to any investment made by the assisted business.

(ii) For BA eligible planning activities, the community must provide documentation that the amount requested is the lesser of the maximum award amount or the actual match required by the funding agency.

(e) Exclusions: Communities receiving a BA or DF award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP application in support of a retail business activity only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business.

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

(g) DF Program Specific Requirements:

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between DECD and the community.

(ii) 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 locational cost differentiations and the benefit derived from the assistance. The normal interest rate will be 5% however, a special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

5. Selection Process: The selection process will consist of three phases, a pre-application phase, a final application phase and a project development phase. EDP pre-applications will be evaluated as a viable business proposal or eligible planning/technical assistance activity. Each EDP pre-application will be rated in relation to all others. The total points from the Problem, Solution, Citizen Participation and Numerical Analysis will be used to determine the score for each pre-application. Pre-applications will be placed in rank order from highest to lowest and those scoring more than 70 points will be given first consideration from the top of the list and continuing downward to be invited into the final application phase. Applicants that are successful in the final application phase will be invited into the project development phase.

6. Review Process:

The following criteria will be considered during the pre-application phase:

Problem (20 points) Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Solution (20 points) Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need; how the project will proceed to completion within 12 months from the date of a contract award with DECD; and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

Citizen/Business Participation (15 points) Describe the involvement of the specific business and the general citizenry in this application process.

Numerical Analysis (45 points) Based on an analysis of the following factors completed by OCD:

Strategy Priority (5 points) Does the activity support the State’s economic development strategy.

(ii) Natural Resource Based (10 points) Does the activity support a natural resource based industry (5 pts). Does the activity provide value added products derived from natural resource based industries (5 pts).

(iii) Project Significance (30 points) Each application will be evaluated in relation to all others. Scores will be based on a maximum of 5 points in each of the nine following areas:

• 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

• $’s per job created/retained

Pre-applications must be submitted on the appropriate due dates. BA planning activity applications and match for programs such as revolving loan funds, must not be submitted until an application has been accepted by the appropriate agency (such as EDA, RD) and is working toward a full application. Once submitted, the EDP Review Team will evaluate the pre-applications using the criteria outlined in the Program Statement and the individual application package. Successful applicants will be invited to proceed into the final application phase.

The following criteria will be considered during the final application phase:

Upon being invited into the final application phase an OCD staff person will be assigned to assist the community and the business in completing the process. The final application phase must be completed by April 6, 2007 for the first round and by July 6, 2007 for the second round. The final application phase consists of completing documentation such as local legislative approval, match commitments, community benefit, job creation/retention data and agreements, additional 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 from the pre-application phase and adding a new numerical analysis using the factors from the pre-application and adding up to 5 points for each of the following: % average hourly salary of jobs created/retained exceeds per capita income by county where the jobs will be; Quality of jobs created/retained based on wages and fringe benefits; % non EDP funding in the project. Applications from this phase will be placed in rank order from highest to lowest. Applications scoring more than 75 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 final application, one of the following recommendations will be made to the Director, Office of Community Development and the DECD Commissioner:

(i) approval of award under recommended amount and/or terms;

(ii) rejection with staff recommendations for resubmission or to provide additional information; or,

(iii) rejection.

Successful applicants will be invited into the project development phase as funds allow.

7. Project Development Phase: The project development phase will include the following additional information along with required state and federal requirements necessary for final approval.

(a) Financial/Management Plan: The application must include a business, management and financial plan as outlined in the application package. Submission will be rated on completeness and soundness of information.

(b) Equity: The proposed program recipient has made an equity commitment to the project, preferably through cash injection. Other substantial participation may substitute for cash equity as determined by the DECD.

(c) Repayment - DF Loan: Loan repayment terms will allow a project to proceed while providing the maximum and most expeditious return of CDBG DF monies.

(d) Chance of Success: does the proposal demonstrate the following:

• 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.

(e) Security DF ONLY: The proposed loan recipient must present collateral appropriate to secure the DF Loan and indicate a willingness to execute security agreements. The discount collateral coverage ratio is 1:1. In projects involving subsidiary corporations a corporate guaranty must be obtained from the parent corporation. Personal guaranty and/or principal life insurance assignment may be required on a case-by-case basis.

(f) Public Benefit: The proposal will be evaluated on the basis of the community and economic benefits resulting from the project including the increase in local tax revenue resulting from the project will be evaluated.

(g) Community and Economic Development: The primary and secondary impacts of the project on the community’s current and future economic development will be evaluated.

B. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property; and eligible planning activities necessary to complete the Project Development Phase.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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 Development Organization: NPDG activities may only be carried out by bona-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bona-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Application: There is currently no scheduled application process for the NPDG Program in the 2007 program year. If additional funds become available OCD may exercise the right to reinstate the application process under Section 5 of this Statement.

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

(i) Documentation of bona-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 20 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 20 points

(viii) Pine Tree Zone Bonus: NPDG applications supporting project activities taking place in a designated Pine Tree Zone shall receive a bonus of 10 points.

(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.

C. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for eligible Pine Tree Development Zone applicants is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award. Eligible planning activities necessary to complete the Project Development Phase are also an allowable expense.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a twice-yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. The application deadlines for the CPG Program are 4:00PM on April 6, 2007 and August 3, 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past efforts to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended within 12 months or less – 12 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 4 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):

*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.

B. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

C. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2007 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2007 CDBG program, or added to the available monies for the 2006 or 2008 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2007 CDBG program, or added to the available monies for the 2006 or 2008 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2007 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2007 CDBG program or added to the available monies for the 2006 or 2008 competition.

3. Basis for Redistribution: The decision 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 for the 2007 competitions that did not receive funding, and the possibility of holding additional competitions during the 2007 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2007 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and BA programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2007 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2007 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedure Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

2

19-498 Chapter 35: 2007 CDBG Program Statement

Chapter 36 Community Development Block Grant Program: 2008 Final Statement

Code Me. R. 19-498 Ch. 36 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-36 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 36}

CHAPTER 36 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM2

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION 4

C. STATE ADMINISTRATION 4

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES 4

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT 5

F. PROGRAM TIMEFRAME 5

G. PROGRAM BUDGET 6

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT 12

A. HOUSING ASSISTANCE GRANT PROGRAM 12

B. HOME REPAIR NETWORK PROGRAM…………………………………………….15

C. PUBLIC FACILITIES GRANT PROGRAM 17

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM 20

E. PUBLIC SERVICE GRANT PROGRAM 23

F. DOWNTOWN REVITALIZATION GRANT PROGRAM 26

G. URGENT NEED GRANT PROGRAM...………………………………………………29

SECTION 3. ECONOMIC DEVELOPMENT 31

A. ECONOMIC DEVELOPMENT PROGRAM 31

B. COMMUNITY ENTERPRISE GRANT PROGRAM 37

C. NON-PROFIT DEVELOPMENT GRANT PROGRAM 41

D. INTERIM FINANCE PROGRAM 43

SECTION 4. PLANNING & SPECIAL PROJECTS 45

A. COMMUNITY PLANNING GRANT PROGRAM 45

B. TECHNICAL ASSISTANCE PROGRAM 48

C. SPECIAL PROJECTS MATCHING FUND 48

SECTION 5. REDISTRIBUTION OF GRANT FUNDS AND PROGRAM INCOME 49

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS 49

B. PROGRAM INCOME 50

SECTION 6. APPEALS 51

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT 52

SECTION 8. COMMUNITY EVALUATION FACTORS ………………………………..53

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 36 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2008 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2008 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2008 CDBG program has been developed by the Department of Economic and Community Development (DECD) following a review of past programs, a public forum and hearing with program constituents, and a comprehensive assessment of statewide community and economic development needs conducted in 1999. In accordance with the Maine Administrative Procedures Act, DECD held two public hearings regarding the development of this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2008 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Public Facilities Grants

Public Infrastructure Grants

Public Service Grants

Downtown Revitalization Grants

Urgent Need Grants

Economic Development

Business Assistance Grants

Development Fund Loans

Community Enterprise Grants

Non-Profit Development Grants

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES

The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick, Casco, Frye Island and Westbrook are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants). The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities including Community Planning Grants are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development by 4:00PM EST on the dates listed below:

Program

Letter of Intent Due Date

(All dates are “on or before”)

Application Due Date

Public Facilities

December 7, 2007

January 18, 2008

Public Infrastructure

December 7, 2007

January 18, 2008

Economic Development (Rd 1)

January 4, 2008

March 7, 2008

Economic Development (Rd 2)

April 4, 2008*

June 6, 2008

Economic Development (Rd 3)

June 13, 2008*

August 8, 2008

Downtown Revitalization

January 4, 2008

February 15, 2008

Community Enterprise

January 4, 2008

February 15, 2008

Housing Assistance

January 11, 2008

February 29, 2008

Public Service

January 25, 2008

March 7, 2008

Non-Profit Development

N/A

February 15, 2008

Community Planning (Rd 1)

N/A

April 4, 2008

Community Planning (Rd 2)

N/A

August 1, 2008

Urgent Need

N/A

Beginning on March 7, 2008

Interim Financing

N/A

Open – by invitation only

Special Projects Matching Fund

N/A

Open – by invitation only

• April 4, 2008 and June 13, 2008 Economic Development Program Letter of Intent dates are subject to funding availability.

G. PROGRAM BUDGET

FY 2008 CDBG Budget $13,082,613

Administration 361,652

Technical Assistance Administration 130,826

Regional Council Technical Assistance 120,000

Special Projects Matching Fund 330,135

1. Housing Assistance Grants 1,750,000

2. Home Repair Network Program 1,050,000

3. Public Infrastructure Grants 2,500,000

4. Public Facilities Grants 1,500,000

5. Public Service Grants 200,000

6. Downtown Revitalization Grants 1,000,000

7. Urgent Need Grants 80,000

8. Economic Development Program 2,500,000

Business Assistance Grant

Development Fund Loans *

Community Enterprise Grants 750,000

Non-Profit Development Grants 250,000

Interim Financing Program **

Section 108 Loan Program ***

9. Community Planning

Round 1 80,000

Round 2 80,000

• The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

*** If the DECD application to HUD for the Section 108 Loan Program is approved, the 2008 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agenicies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(i) Community Enterprise Prohibition - Communities applying

for a Community Enterprise (CE) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

(ii) Downtown Revitalization Program Prohibition - Communities applying

for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Community Enterprise (CE) grant in the same program year.

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are

permitted to apply in the same 2008 CDBG funding category as long as the

eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2007 award may not apply again in that specific program until the 2009 program. PI grantees in Activity Group Number 1, as listed in Section 2. D. 3. (a) (1) on Page 21 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 776.

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2008 Community Development Block Grant program, communities that received CDBG grants in or prior to 2004 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2005 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2006 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2007 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director, OCD in the case of applicants having existing Economic Development program awards where job creation benefit has not been met.

(i) Special Housing Assistance Grant Program (HA) Past Performance Requirement - Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Community Planning Grants, from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Letters of Intent and required documentation for all programs with the exception of Non-Profit Development Program, Urgent Need Grant Program, Special Project Matching Fund and Community Planning Grant Program will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Baldwin, Brunswick, Casco, Frye Island and Westbrook are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2008 Program Statement and 2008 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Economic Development Program, Special Project Matching Fund, Urgent Need Grants and Non-Profit Development Grants will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Dropping the highest and lowest scores assigned by members of the 5-person OCD Review Team, averaging the remaining three scores and adding any applicable community evaluation factors and bonus point totals will determine final scores. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, first consideration will be given to the community that is listed by the Maine State Planning Office as a Service Center; if both applicants meet this definition, the tie will be broken based on the highest Community Evaluation Factor. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

(a) Community Evaluation Factor: A pre-determined community evaluation factor with a maximum point total of 20 will be added to the average review team score for each application for the Housing Assistance, Public Infrastructure and Public Facilities grant programs to determine the final score. The Community Evaluation Factor will be based on pre-determined criteria established by an independent authority for each community in Maine and is contained on Page 54 of this 2008 Program Statement.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Economic Development Program (EDP), Special Project Matching Fund and Non-Profit Development Grant Program (NPDG) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

Project Eligibility: Verification that proposed activities are eligible under The Act.

Project Benefit: Verification that proposed activities meet one of the CDBG

Program National Objectives.

Environmental Review: Review of project for compliance with State and

Federal Environmental Regulations.

(g) Project Development Phase Requirement: All communities receiving a CDBG program grant award must complete the project development phase materials as outlined in the Maine CDBG Program materials and handbooks.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Community Planning Grant program OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

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.

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.

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: $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. 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 Housing Quality Standards: All units assisted or

created with HA funds must, at a minimum, meet HUD Section 8

Minimum 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.

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.

Letter of Intent: All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before January 11, 2008 according to the requirements set forth in the 2008 Housing Assistance Application Package.

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 February 29, 2008. 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 has been pre-determined by an independent authority for each community in Maine and published in Program Statement.

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 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 Baldwin, Brunswick, Casco, Frye Island and Westbrook 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 designated program administrator will:

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

Special Program Requirements:

(a) Maximum HRN Grant Amount: $1,050,000, with $150,000 allocated to each of the 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. The maximum of $30,000 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.

(d) Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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.

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 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 7, 2007.

(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 on

or before 4:00PM on Friday December 7, 2007 according to the

requirements set forth in the 2008 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on January 18, 2008. 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 has been 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.

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.

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, $500,000

storm drainage, utility infrastructure (Road or street

reconstruction is not eligible)

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 7, 2007.

(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 7, 2007 according to the

requirements set forth in the 2008 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on January 18, 2008. 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 has been 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 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

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.

Letter of Intent: All communities wishing to submit a PSG application must submit a Letter of Intent to OCD on or before January 25, 2008 according to the requirements set forth in the 2008 public Service Application Package.

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 7, 2008. 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. 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: $500,000

(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.

(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 4, 2008.

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 4, 2008 according to the

requirements set forth in the 2008 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 February 15, 2008. 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):

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%

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 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 Center Designation Bonus – 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 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.

G. 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.

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 7, 2008. 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.

SECTION 3. ECONOMIC DEVELOPMENT

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:

1. Business Assistance Grant Category (BA) - Municipal owned

(a) Grants to eligible Maine communities for gap financing to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of an identified business or industry.

(b) Grants for required local match to conduct eligible economic development planning and technical assistance activities.

2. Development Fund Loan Category (DF) – Non Municipal owned

(a) Loans for gap financing to assist specified businesses to create or retain jobs for low and moderate-income persons.

3. Threshold Criteria:

(a) Project Benefit: Except for eligible economic development planning activities, projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be; in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

(b) Program Dollars Per Job: The maximum CDBG participation per job created or retained with EDP funds in a non Pine Tree Development Zone is $20,000. The maximum CDBG participation per job created or retained with EDP funds for eligible Pine Tree Development Zone applicants is $30,000. Pine Tree Development Zone eligible means that the business has been certified as a Pine Tree Development business by the DECD at the time of application. All jobs created with EDP assistance must pay at least the same wages as required to qualify under the PTZ Program.

(c) Minimum EDP Application Amount: $100,000.

(d) Maximum Project Size for Utilizing EDP Funds: $5,000,000

(e) Eligible Activities: The eligible activities for each program category are as follows which includes eligible planning activities in order to complete the Project Development Phase:

Category 1 - Business Assistance Grant (BA) Maximum Award

Municipal owned

1. Acquisition, relocation, demolition, clearance, $400,000

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.

2. Required local match necessary to $ 50,000

secure new funds to the State for eligible economic

development planning activities.

Category 2 - Development Fund Loan (DF)

1. Acquisition of existing facilities, land and site $400,000

improvements necessary for the construction of a new

facility, rehabilitation of commercial or industrial buildings,

structures, capital equipment, and real property

improvements.

2. Non-capital equipment and operating capital. $200,000

DF program funds cannot be used to refinance existing debt.

4. Program Requirements:

EDP Letter of Intent Due Dates: 4:00PM on January 4, 2008 or, depending on funding availability, April 4, 2008 and June 13, 2008

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

Agreement to Participate and Benefit Certification: The business and the applicant community must submit signed documentation agreeing to participate in the EDP program, to comply with all program requirements, to complete the Job Creation/Retention Agreement and to immediately repay all expended EDP funds if program benefit is not met as specified in the contract between the DECD and the community.

Maximum % of EDP Assistance and Matching Funds Requirements:

(i) For all EDP program activities, the program application must present a financing plan for a project in which the request comprises the lesser of the maximum award amount or 50% of the total eligible project cost. Projects totaling over $5,000,000 are not eligible for EDP assistance. Project activities and use of funds to calculate the non-program financing must represent a new cash investment for a new project. Prior commitments and in-kind contributions can not be considered as match. The financing necessary to support at least 50% of the total project cost must be firm commitments from non-CDBG funds and must be documented by binding commitment letters submitted with the application.

(ii) For BA eligible planning activities, the community must provide documentation that the amount requested is the lesser of the maximum award amount or the actual match required by the funding agency.

(e) Exclusions: Communities receiving a BA or DF award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

(f) EDP Projects in Support of Retail Businesses: OCD may accept a DF application in support of a retail business activity only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

(g) DF Program Specific Requirements:

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between the DECD and the community.

(ii) 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 DF loans is 5% for a term not to exceed 15 years. However, a special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

5. 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 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.

(b) Application: The EDP application deadlines are March 7, 2008, and, depending on funding availability, June 6, 2008 and August 8, 2008. Each application will be rated on its own merits and in relation to all others in the application process.

Review Process:

The following criteria will be considered during the application phase:

Problem (20 points) Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Solution (20 points) Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need; how the project will proceed to completion within 12 months from the date of a contract award with DECD; and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

(iii)Citizen/Business Participation (15 points) Describe the involvement of the specific business and the general citizenry in this application process.

(iv)Numerical Analysis (60 points) Based on an analysis of the following factors completed by OCD:

Strategy Priority (5 points) Does the activity support the State’s economic development strategy.

(b) Natural Resource Based (10 points) Does the activity support a natural resource based industry (5 pts). Does the activity provide value added products derived from natural resource based industries (5 pts).

(c) Project Significance (45 points) Each application will be evaluated in relation to all others. Scores will be based on a maximum of 5 points in each of the nine following areas:

• 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:

(i) approval of award under recommended amount and/or terms;

rejection with staff recommendations for resubmission or to provide additional information; or,

(iii) rejection.

Successful applicants will be invited into the project development phase as funds allow.

7. Project Development Phase: The project development phase will include the following additional information along with required state and federal requirements necessary for final approval.

(a) Financial/Management Plan: The application must include a business, management and financial plan as outlined in the application package. Submission will be rated on completeness and soundness of information.

(b) Equity: The proposed program recipient has made an equity commitment to

the project, preferably through cash injection. Other substantial participation may

substitute for cash equity as determined by the DECD.

(c) Repayment - DF Loan: Loan repayment terms will allow a project to proceed while providing the maximum and most expeditious return of CDBG DF monies.

(d) Chance of Success: does the proposal demonstrate the following:

• 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.

(e) Security DF ONLY: The proposed loan recipient must present collateral

appropriate to secure the DF Loan and indicate a willingness to execute security

agreements. The discount collateral coverage ratio is 1:1. In projects involving

subsidiary corporations a corporate guaranty must be obtained from the

parent corporation. Personal guaranty and/or principal life insurance assignment

may be required on a case-by-case basis.

(f) Public Benefit: The proposal will be evaluated on the basis of the

community and economic benefits resulting from the project including the increase in local tax revenue resulting from the project will be evaluated.

(g) Community and Economic Development: The primary and secondary

impacts of the project on the community’s current and future economic development will be evaluated.

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.

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 and buildings solely for residential use 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: Project benefit will be met when 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: Project benefit will be met when 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. Special Program Requirements

(a) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons, 2) preventing or eliminating slum or blighting conditions, or 3) 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. Census information, a certified target area survey, an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD, or assurances of spot blight designation or micro-enterprise eligibility 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 4, 2008.

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 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.

(b) 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 15, 2008. 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

*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

(ii) Development Strategy (40 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

(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 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are: demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property; and eligible planning activities necessary to complete the Project Development Phase.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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 Development Organization: NPDG activities may only be carried out by bona-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bona-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing, or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Application: The application deadline for the NPDG Program is 4:00PM EST on February 15, 2008. The OCD review team will rate each application in relation to all others.

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

(i) Documentation of bona-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 20 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 20 points

(viii) Pine Tree Zone Bonus: NPDG applications supporting project activities taking place in a designated Pine Tree Zone shall receive a bonus of 10 points.

(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.

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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for eligible Pine Tree Development Zone applicants is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award. Eligible planning activities necessary to complete the Project Development Phase are also an allowable expense.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a twice-yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. The application deadlines for the CPG Program are 4:00PM on April 4, 2008 and August 1, 2008. 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past efforts to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended within 12 months or less – 12 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 4 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):

*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.

B. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

C. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2008 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2008 CDBG program, or added to the available monies for the 2007 or 2009 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2008 CDBG program, or added to the available monies for the 2007 or 2009 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2008 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2008 CDBG program or added to the available monies for the 2007 or 2009 competition.

3. Basis for Redistribution: The decision 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 for the 2008 competitions that did not receive funding, and the possibility of holding additional competitions during the 2008 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2008 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and BA programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2008 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2008 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

JOHN ELIAS BALDACCI JOHN RICHARDSON

GOVERNOR COMMISSIONER

TO: Potential CDBG Applicants

FR: Orman Whitcomb, Director, Office of Community Development

DA: September 10, 2007

RE: Community Evaluation Factor

Background: In recent years, for the Housing Assistance, Public Facility and Public Infrastructure programs, a “Community Evaluation Factor” has been used in the scoring process. The 7 factors used totaled 20 points and were calculated for communities within set population ranges. During the rule making process for the Program Statement, some suggestions have been made to use more relevant information, but substantive suggestions as to what might actually be more relevant were not received. Therefore, this year the OCD contracted with Planning Decisions, Inc. to look at this portion of the scoring process.

Planning Decisions identified two major problems with the existing factors. First, the data is complicated to collect and analyze, the process is time-consuming, and unhelpful to potential applicants in predetermining a degree of competitiveness before applying. Second, the data on substandard housing, rental affordability, low and moderate income population, and poverty, are based on the 2000 Census. This is currently six years old, and becomes increasingly out of date each year.

Therefore, Planning Decisions proceeded with their analysis with the following basic assumptions:

Scoring factors should be closely related to the program function for which the scoring factors relate (i.e., housing and infrastructure);

Some balancing is needed so that there is not a bias towards small communities (with few in need, but a high percentage) and large communities (which may have many in need even with a very low percentage).

Data which is updated on an ongoing basis, even if less precise, is preferable to data from the 2000 Census.

In order for communities to know in advance where they stand, the points must be predetermined prior to applications, and not depend on application data.

Relevance and weighting of factors: Under the existing system, each of the 7 factors was given an equal weight, so the result is that financial commitment and lower income households were given a “double” weight and the issue becomes whether the factors address the right criteria for the programs in question.

Logically, different criteria might be used to deal with housing needs as opposed to an infrastructure needs. These differences are already part of the scoring system, specifically, the narrative “impact” section (30 points) of the application. The community evaluation factor is meant to come into play when all other factors are basically equal – to determine awards where two communities have similar needs and equally effective solutions.

59 State House Station•Augusta•Maine•04333-0059

Phone: (207) 624-9800•Facsimile: (207) 287-8070•TTY (207) 437-1220

www.meocd.org

In this light, the most important factor would appear to be tax burden. For infrastructure, all other things being equal, the State would wish to fund activities in a town that is already making a significant tax effort; while substandard housing is important for rehab programs, and affordable housing is important for all programs and the presence of low-income people is a relevant factor, they are already heavily considered in the low-income benefit aspect of the program design. Financial commitment is relevant, but it does not fit into the Community Evaluation factor, because it is application-specific, and cannot be predetermined.

Given all of this, and putting aside the question of the appropriateness of individual measurements, Planning Decisions recommends a weighting that gives tax burden 50% of the points (10), housing 40% (8 points), and low income population 10% (2 points). The recommended distribution is below.

Type of factor

2006 Measurement

2006

points

Recommended

2007 points

Comment

Financial commitment

Budget Page review

2

0

Doesn’t fit into this factor

leveraging

3

Substandard housing

without plumbing

3

4

relevant for rehabilitation

Affordability

Renters >25%

3

4

relevant for all housing programs

Tax burden

Tax rate

3

10

the single most important factor for infrastructure

Low income population

Community LMI

3

2

relevant to all programs

<150% of poverty

3

TOTAL

20

20

Best measures: Given this general weighting of factors, how do we best measure them?

The current substandard housing measure uses data from the 2000 Census and is increasingly irrelevant today as hardly any year-round units in Maine lack complete plumbing and overcrowding continues to be a problem, more indicative of an affordability issue than of poor physical housing conditions. Therefore, the best external indicator for rehabilitation need is simply the age of its housing stock. While the age of housing is measured in the 2000 Census, updating is not important in this case, since the number of older units changes little from year-to-year.

Affordability is a problem that changes year to year, as the housing cycle changes. Therefore,

the best current measure of affordability is the “affordability index” published annually by Maine Housing which tracks changes in the housing market by community, and matches it against annual changes in median income in that community.

The best measure of tax burden was designed by the Maine Municipal Association a few years ago. Unfortunately, MMA has not continued with this. Therefore, OCD’s current approach of calculating the community’s tax rate (state-equalized) relative to the state average is better than any of the alternatives.

The best measure of tax burden was designed by the Maine Municipal Association a few years ago. Unfortunately, MMA has not continued with this. Therefore, OCD’s current approach of calculating the community’s tax rate (state-equalized) relative to the state average is better than any of the alternatives.

The HUD measures of low and moderate income people and poverty are all based on 2000 Census data. Therefore, the best current estimates on a town level for low and moderate income people are from Maine Housing, with data from a private provider called Claritas. For purposes of this factor, the proportion of households under 50% of area median income would provide a good sense of how many really low-income people are residing in an individual community. The measures that will be used are in the table below:

Type of factor

Best measure

How to Score

Source

Timeliness

Substandard housing

housing built before 1939

35% = 4

30 to 35% = 3

20 to 30% = 2

10 to 20% = 1

<10% = 0

2000 Census

2000 Census (but doesn’t change between Censuses)

Affordability

Affordability Index

(state average 0.7)

under 0.7 = 4

0.7 to 0.8 = 3

0.8 to 0.9 = 2

0.9 to 1.0 = 1

1.1+ = 0

Maine

Housing

Annual

Tax burden

Keep the same

(state average 12.99)

25 = 10

20 to 24 = 8

15 to 20 = 5

10 to 15 = 3

Under 10 = 0

Maine Revenue Services

Annual

Low income population

<50% of Area Median Income

20% + = 2

10 to 20% = 1

10% = 0

Maine

Housing (Claritas)

Annual

Finally, the question of adjustments for small and large municipalities: The discussion so far has not addressed whether the scoring system should take special measures to account for communities of different sizes – either by scaling all of the proposed measurements by sizes of communities, as is done now, or by including a balance of absolute number and percentage measures, in order to compensate for the effects of size on a measurement.

Planning Decisions does not recommend any special measures for the new method outlined above. There is no particular relationship between old housing and small or large municipalities; or example, Lewiston has a lot of old housing, and so does Osborne, and both would have a high score in this measure. Likewise, tax burden and affordability are unaffected either way by community size. The last measure, low income population, might favor rural communities because it is a percentage measure; but some urban service centers will get the maximum points on this, and therefore is recommended as a low point item.

2008 Community Development Block Grant Program

Community Evaluation Factor

Abbot

9

Belmont

6

Camden

13

Acton

7

Benton

7

Canaan

7

Addison

10

Berwick

10

Canton

10

Albion

8

Bethel

12

Caratunk

6

Alexander

9

Bingham

14

Caribou

13

Alfred

10

Blaine

10

Carmel

9

Allagash

6

Blue Hill

9

Carrabassett Valley

4

Alna

13

Boothbay

8

Carroll plantation

11

Alton

8

Boothbay Harbor

10

Carthage

11

Amherst

8

Bowdoin

9

Cary plantation

8

Amity

10

Bowdoinham

9

Casco

8

Andover

10

Bowerbank

4

Castine

10

Anson

16

Bradford

8

Castle Hill

9

Appleton

10

Bradley

11

Caswell

8

Arrowsic

10

Bremen

8

Chapman

7

Arundel

5

Brewer

13

Charleston

7

Ashland

12

Bridgewater

11

Charlotte

11

Athens

7

Brighton plantation

8

Chelsea

6

Atkinson

10

Bristol

8

Cherryfield

13

Augusta

13

Brooklin

10

Chester

7

Aurora

15

Brooks

9

Chesterville

8

Avon

11

Brooksville

10

China

9

Baileyville

12

Brownfield

8

Clifton

8

Baldwin

10

Brownville

14

Clinton

7

Bancroft

13

Brunswick

11

Columbia

9

Bar Harbor

9

Buckfield

8

Columbia Falls

13

Baring plantation

12

Bucksport

9

Cooper

10

Bath

12

Burlington

11

Coplin plantation

5

Beals

12

Burnham

9

Corinna

7

Beaver Cove

3

Buxton

6

Corinth

4

Beddington

5

Byron

9

Cornish

10

Belfast

15

Calais

17

Cornville

7

Belgrade

8

Cambridge

7

Cranberry Isles

10

Crawford

6

Etna

6

Harmony

7

Crystal

10

Eustis

11

Harrington

11

Cushing

7

Exeter

10

Hartford

8

Cutler

7

Fairfield

11

Hartland

7

Cyr plantation

9

Farmingdale

8

Haynesville

8

Dallas plantation

6

Farmington

12

Hebron

7

Damariscotta

11

Fayette

8

Hermon

7

Danforth

12

Fort Fairfield

14

Hersey

9

Dayton

8

Fort Kent

9

Highland plantation

5

Deblois

9

Frankfort

8

Hiram

11

Dedham

9

Franklin

5

Hodgdon

7

Deer Isle

9

Freedom

10

Holden

6

Denmark

6

Frenchboro

10

Hollis

9

Dennistown plantation

4

Frenchville

9

Hope

9

Dennysville

12

Friendship

9

Houlton

16

Detroit

7

Fryeburg

12

Howland

9

Dexter

11

Gardiner

12

Hudson

2

Dixfield

13

Garfield plantation

4

Industry

9

Dixmont

9

Garland

9

Island Falls

14

Dover-Foxcroft

13

Georgetown

7

Isle au Haut

8

Dresden

8

Gilead

11

Islesboro

8

Drew plantation

9

Glenburn

7

Jackman

11

Durham

8

Gouldsboro

7

Jackson

8

Dyer Brook

7

Grand Isle

11

Jay

9

Eagle Lake

9

Grand Lake Stream Plt

8

Jefferson

4

East Machias

15

Great Pond

6

Jonesboro

10

East Millinocket

12

Greenbush

9

Jonesport

9

Eastbrook

10

Greene

6

Kenduskeag

7

Easton

10

Greenville

11

Kennebunk

11

Eastport

14

Greenwood

9

Kennebunkport

8

Eddington

7

Guilford

10

Kingfield

13

Edgecomb

10

Hallowell

14

Kittery

11

Edinburg

8

Hamlin

8

Knox

8

Eliot

7

Hammond

12

Lagrange

9

Ellsworth

10

Hampden

9

Lake View plantation

4

Embden

3

Hancock

7

Lakeville

8

Enfield

6

Hanover

10

Lamoine

5

Lebanon

8

Maxfield

9

Orland

5

Lee

9

Mechanic Falls

13

Orono

13

Leeds

10

Meddybemps

9

Orrington

8

Levant

7

Medford

10

Osborn

13

Liberty

9

Medway

14

Otis

7

Limerick

10

Mercer

7

Otisfield

5

Limestone

10

Merrill

10

Owls Head

8

Limington

4

Mexico

16

Oxbow plantation

10

Lincoln

9

Milbridge

11

Oxford

7

Lincoln plantation

8

Milford

6

Palermo

8

Lincolnville

9

Millinocket

13

Palmyra

6

Linneus

7

Milo

15

Paris

9

Lisbon

12

Minot

7

Parkman

7

Litchfield

8

Monhegan plantation

10

Parsonsfield

12

Littleton

7

Monmouth

8

Passadumkeag

9

Livermore

8

Monroe

10

Patten

11

Livermore Falls

14

Monson

10

Pembroke

12

Lovell

10

Monticello

11

Penobscot

6

Lowell

9

Montville

12

Perham

11

Lubec

12

Moose River

9

Perry

10

Ludlow

8

Moro plantation

3

Peru

7

Lyman

5

Morrill

9

Phillips

15

Machias

14

Moscow

9

Phippsburg

7

Machiasport

8

Mount Chase

8

Pittsfield

12

Macwahoc plantation

10

Mount Desert

10

Pittston

8

Madawaska

11

Mount Vernon

9

Pleasant Ridge plantation

7

Madison

11

Nashville plantation

4

Plymouth

7

Madrid

5

New Canada

9

Poland

7

Magalloway plantation

4

Northfield

6

Portage Lake

7

Manchester

7

Northport

5

Porter

10

Mapleton

7

Norway

12

Oxbow plantation

10

Mariaville

4

Oakfield

8

Oxford

7

Mars Hill

18

Oakland

10

Palermo

8

Marshfield

9

Ogunquit

8

Palmyra

6

Masardis

11

Old Orchard Beach

10

Paris

9

Matinicus Isle plantation

9

Old Town

14

Parkman

7

Mattawamkeag

11

Orient

2

Parsonsfield

12

Passadumkeag

9

Saco

10

Stonington

10

Passamaquoddy Indianshp Res

5

Sandy River plantation

4

Stow

9

Passamaquoddy Pleasant Point

5

Sanford

11

Strong

10

Patten

11

Sangerville

10

Sullivan

10

Pembroke

12

Searsmont

8

Sumner

10

Penobscot

6

Searsport

12

Surry

8

Penobscot Indian Island Rsrvtion

6

Sebec

8

Swans Island

9

Perham

11

Seboeis plantation

8

Swanville

8

Perry

10

Sedgwick

10

Sweden

9

Peru

7

Shapleigh

6

Talmadge

14

Phillips

15

Sherman

7

Temple

9

Phippsburg

7

Shirley

8

The Forks plantation

6

Pittsfield

12

Sidney

4

Thomaston

15

Pittston

8

Skowhegan

11

Thorndike

9

Pleasant Ridge plantation

7

Smithfield

7

Topsfield

9

Plymouth

7

Smyrna

9

Topsham

8

Poland

7

Solon

8

Tremont

8

Portage Lake

7

Somerville

11

Trenton

7

Porter

10

Sorrento

8

Troy

9

Presque Isle

15

South Berwick

10

Turner

7

Princeton

12

South Bristol

10

Union

11

Prospect

10

South Thomaston

7

Unity

8

Randolph

10

Southport

10

Upton

5

Rangeley

10

Southwest Harbor

8

Van Buren

13

Rangeley plantation

5

Springfield

13

Vanceboro

14

Readfield

8

St. Agatha

10

Vassalboro

6

Reed plantation

11

St. Albans

4

Veazie

9

Richmond

13

St. Francis

8

Verona

8

Ripley

8

St. George

9

Vienna

9

Robbinston

8

St. John plantation

6

Vinalhaven

9

Rockland

15

Stacyville

10

Wade

10

Rockport

10

Starks

9

Waite

10

Rome

7

Stetson

7

Waldo

8

Roque Bluffs

7

Steuben

9

Waldoboro

10

Roxbury

10

Stockholm

11

Wales

9

Rumford

8

Stockton Springs

13

Wallagrass

7

Sabattus

10

Stoneham

7

Waltham

11

Warren

8

Woolwich

10

Washburn

13

York

7

Washington

7

Waterboro

8

Waterford

8

Waterville

18

Wayne

9

Webster plantation

10

Weld

9

Wellington

9

Wells

7

Wesley

10

West Bath

7

West Forks plantation

3

West Gardiner

4

West Paris

10

Westbrook

14

Westfield

9

Westmanland

7

Weston

6

Westport

7

Whitefield

4

Whiting

8

Whitneyville

13

Willimantic

5

Wilton

9

Windsor

8

Winn

13

Winslow

9

Winter Harbor

9

Winterport

8

Winterville plantation

3

Winthrop

9

Wiscasset

10

Woodland

7

Woodstock

6

Woodville

7

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

ORMAN WHITCOMB, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

EFFECTIVE DATE: September 17, 2007, filing 2007-398

2008 CDBG Program Statement 2

2

2008 CDBG Program Statement

State of Maine

Department of Economic

and Community Development

Chapter 37 Community Development Block Grant Program: 2009 Final Statement

Code Me. R. 19-498 Ch. 37 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-37 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 37}

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 37 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2009 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2009 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2009 CDBG program has been developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held a public hearing regarding the development of this Program Statement.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2009 Proposed Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Critical Access Ramp Program

Public Infrastructure Grants

Public Facilities Grants

Public Service Grants

Downtown Revitalization Grants

Maine Downtown Center Assistance

Urgent Need Grants

Economic Development

Grants to Municipalities for Direct Business Support

Development Fund Loans

Community Enterprise Grants

SBDC Technical Assistance

Non-Profit Development Grants

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES

The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick, Casco, Frye Island and Westbrook are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants). The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities including Community Planning Grants are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development by 4:00PM EST on the dates listed below:

Program

Letter of Intent Due Date

(All dates are “on or before”)

Application Due Date

Public Facilities

December 5, 2008

January 23, 2009

Public Infrastructure

December 5, 2008

January 23, 2009

Economic Development (Rd 1)

January 9, 2009

March 6, 2009

Economic Development (Rd 2)

April 3, 2009*

June 5, 2009

Economic Development (Rd 3)

June 12, 2009*

August 14, 2009

Development Fund Loan

N/A

First Friday of each month**

Downtown Revitalization

January 9, 2009

February 20, 2009

Community Enterprise

January 9, 2009

February 20, 2009

Housing Assistance

January 23, 2009

March 3, 2009

Public Service

February 6, 2009

April 3, 2009

Non-Profit Development

N/A

February 20, 2009***

Community Planning

N/A

April 21, 2009

Urgent Need

N/A

Beginning on March 13, 2009

Interim Financing

N/A

Open – by invitation only

Special Projects Matching Fund

N/A

Open – by invitation only

• April 3, 2009 and June 12, 2009 Economic Development Program Letter of Intent dates are subject to funding availability.

** If the first Friday of the month falls on a holiday the DF application will be due by 4:00Pm on the next business day.

*** Non-Profit Development application date of February 20, 2009 will be contingent on final 2009 CDBG allocation from HUD.

G. PROGRAM BUDGET

FY 2009 Proposed CDBG Budget $9,898,878

Administration 297,976

Technical Assistance Administration 98,988

Regional Council Technical Assistance 140,000

Special Projects Matching Fund 48,914

1. Housing Assistance Grants 1,000,000

2. Home Repair Network Program 1,051,500

3. Critical Access Ramp Program 251,500

4. Public Infrastructure Grants 2,200,000

5. Public Facilities Grants 1,100,000

6. Public Service Grants 160,000

7. Downtown Revitalization Grants 500,000

8. Maine Downtown Center 150,000

9. Urgent Need Grants 80,000

10. Economic Development Program

Business Assistance Grants 1,800,000 Development Fund Loans *

Community Enterprise Grants 750,000

SBDC Technical Assistance 200,000

Non-Profit Development Grants **

Interim Financing Program ***

Section 108 Loan Program ****

11. Community Planning 70,000

• The Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications.

** Funding for the 2009 Non-Profit Development Grant Program is subject to the final 2009 HUD CDBG allocation.

*** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

**** If a DECD application to HUD for the Section 108 Loan Program is approved, the 2009 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(i) Community Enterprise Prohibition - Communities applying

for a Community Enterprise (CE) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

(ii) Downtown Revitalization Program Prohibition - Communities applying

for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Community Enterprise (CE) grant in the same program year.

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are

permitted to apply in the same 2009 CDBG funding category as long as the

eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2008 award may not apply again in that specific program until the 2010 program. PI grantees in Activity Group Number 1, as listed in Section 2. E. 3. (a) (1) on Page 21 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 776.

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2009 Community Development Block Grant program, communities that received CDBG grants in or prior to 2005 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2006 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2007 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2008 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director, OCD in the case of applicants having existing Economic Development program awards where job creation benefit has not been met.

(i) Special Housing Assistance Grant Program (HA) Past Performance Requirement - Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Community Planning Grants, from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Letters of Intent and required documentation for all programs with the exception of Non-Profit Development Program, Urgent Need Grant Program, Special Project Matching Fund, Critical Access Ramp Program, SBDC Technical Assistance and Community Planning Grant Program will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Baldwin, Brunswick, Casco, Frye Island and Westbrook are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2009 Program Statement and 2009 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Special Project Matching Fund, Urgent Need Grants, SBDC Technical Assistance, Home Repair Network, Critical Access Ramp Program and Non-Profit Development Grant program will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Final scores will be determined by averaging the scores assigned by members of the 4-person OCD Review Team and adding any applicable community evaluation factors and bonus point totals. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, first consideration will be given to the community that is listed by the Maine State Planning Office as a Service Center; if both applicants meet this definition, the tie will be broken based on the highest Community Evaluation Factor. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

(a) Community Evaluation Factor: A pre-determined community evaluation factor with a maximum point total of 20 will be added to the average review team score for each application for the Housing Assistance, Public Infrastructure and Public Facilities grant programs to determine the final score. The Community Evaluation Factor will be based on pre-determined criteria established by an independent authority for each community in Maine and be published in the 2009 Program Statement.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Non-Profit Development Grant Program (NPDG) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

Project Eligibility: Verification that proposed activities are eligible under

The Act.

Project Benefit: Verification that proposed activities meet one of the CDBG

Program National Objectives.

Environmental Review: Review of project for compliance with State and

Federal Environmental Regulations.

(g) Project Development Phase Requirement: All communities receiving a CDBG program grant award must complete the project development phase materials as outlined in the Maine CDBG Program materials and handbooks.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Community Planning Grant program OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

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.

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. Except for general housing rehabilitation activities and well and septic replacement no multi-jurisdictional applications will be accepted in the HA program.

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: $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. 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 Housing Quality Standards: All units assisted or

created with HA funds must, at a minimum, meet HUD Section 8

Minimum 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.

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.

Letter of Intent: All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before January 23, 2009 according to the requirements set forth in the 2009 Housing Assistance Application Package.

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 3, 2009. 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 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 has been pre-determined by an independent authority for each community in Maine and published in the 2009 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.

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 Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the HRN program.

(c) The lead community must certify that each designated program administrator will:

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

Special Program Requirements:

(a) Maximum HRN Grant Amount: $1,051,500, with $150,000 allocated to each of the 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. The maximum of $30,000 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 $1,500 in administrative funding.

(d) Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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 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 Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the CARP.

Special Program Requirements:

(a) Maximum CARP Grant Amount: $250,000.

(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 $1,500 in administrative funding.

D. 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.

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 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 5, 2008.

(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 on

or before 4:00PM on Friday December 5, 2008 according to the

requirements set forth in the 2009 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on January 23, 2009. 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 will be published in the 2009 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.

E. 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.

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.

Special Program Requirements:

(a) Maximum PI Grant Amounts

Activity Group Numbers Maximum Amount

1. Water system installation/improvements, sewer system $500,000

installation/improvements, water/sewer system hookups,

storm drainage, utility infrastructure (Road or street

reconstruction is not eligible)

2. Infrastructure in support of new LMI affordable fully $500,000

financed multifamily housing

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 5, 2008.

(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 5, 2008 according to the

requirements set forth in the 2009 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on January 23, 2009. 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, 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 2009 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 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

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 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.

Letter of Intent: All communities wishing to submit a PSG application must submit a Letter of Intent to OCD on or before February 6, 2009 according to the requirements set forth in the 2009 Public Service Application Package.

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 April 3, 2009. 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%

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 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.

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; 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: $500,000

(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.

(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 9, 2009.

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 9, 2009 according to the

requirements set forth in the 2009 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 February 20, 2009. 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%

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 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 Center Designation Bonus – 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.

H. 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 Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the MDCA.

Special Program Requirements:

(a) Maximum MDCA Grant Amount: $150,000.

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.

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 13, 2009. 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.

SECTION 3. ECONOMIC DEVELOPMENT

A. ECONOMIC DEVELOPMENT PROGRAM

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible EDP Activities and Maximum Grant and Loan Awards:

(a) Activity Breakdown: Applicants may apply in only one specific grant activity group. Applicants for Activity Group Numbers 2 and 3 below may also utilize the DF Loan Activity for the same project but are limited to a total of $400,000 in EDP assistance.

Activity Group Numbers Maximum Award

1. Grants to Municipalities: for acquisition, relocation, $300,000

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. All public

infrastructure must be owned by the municipality or

public or private utility and be in support of an identified

business.

2. Grants to Municipalities for Direct Business Support: $200,000

for non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial

buildings.

3. Grants to Municipalities for Direct Business Support: $100,000

Working Capital and capital equipment.

4. Development Fund Loan (DF): for acquisition of $300,000

existing facilities, land and site improvements necessary for

the construction of a new facility, rehabilitation or construction

of commercial or industrial buildings, structures, non-capital

equipment, capital equipment, working capital and real

property improvements.

Economic Development Program funds cannot be used to refinance existing debt.

2. Threshold Criteria:

(a) Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

(b) Program Dollars Per Job: The maximum CDBG participation per job created or retained with EDP funds in a non Pine Tree Development Zone or not in an identified Empowerment Zone or HUB Zone is $20,000. The maximum CDBG participation per job created or retained with EDP funds for a certified Pine Tree Development Zone business and/or a business located in an Empowerment Zone or HUB Zone is $30,000. Pine Tree Development Zone certified means that the business has been certified as a Pine Tree Development business by the Department of Economic and Community Development at the time of application.

(c) Minimum EDP Application Amount: $50,000

(d) Maximum Project Size for Utilizing EDP Funds: $5,000,000

Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

(e) Minimum Per Capita Income Requirement: All jobs created with EDP assistance must meet or exceed the Per Capita Income earnings established for the Maine county where the EDP project will take place.

(f) All EDP activities must be in support of an identified business; speculative activities are prohibited.

3. Program Requirements:

EDP Letter of Intent Due Dates for Activity Group Numbers 1-3 ONLY: 4:00PM on January 9, 2009 and, depending on funding availability, April 3, 2009 and June 12, 2009.

EDP Application Due Dates for Activity Group Numbers 1-3 ONLY: 4:00PM on March 6, 2009 and, depending on funding availability, June 5, 2009 and August 14, 2009.

EDP Application Due Dates for Activity Group Number 4 ONLY: Due the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday the due date would then be the following Monday by 4:00 p.m.

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that they will provide a 100% cash match of the total EDP award. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) Exclusions: Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

(g) EDP Projects in Support of Retail Businesses: OCD may accept an EDP application in support of a retail business activity only under the following limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

4. Special Program Requirements for Grants to Municipalities then Loaned to an Identified Business (Activity Group 4 only):

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between the DECD, the community and the business.

(ii) 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 Development Fund loans is up to 5% for a term not to exceed 10 years. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

5. Selection Process: The selection process will consist of three phases, a letter of intent (does not apply to the Development Fund Loan activity), an application phase and a project development phase.

6. Review Process for Activity Groups 1, 2, and 3:

The following criteria will be considered during the application phase:

Problem (30 points) Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Solution (30 points) Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need; how the project will proceed to completion within 12 months from the date of a contract award with DECD; and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

(iii) Citizen Participation (15 points) Describe the involvement of the specific business and the general citizenry in this application process.

*How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

*Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 5 points

Describe the involvement in the citizen participation process by the business to be assisted with EDP funds – 5 points

(iv) Numerical Analysis (20 points) Based on the following factors determined by OCD:

Strategy Priority (10 points) How the proposed EDP activity is aligned with the State’s economic development strategy and supports at least one of the State’s targeted technology sectors, specifically one of the following: Precision Manufacturing Technology, Biotechnology, Aquaculture and Marine Technology, Composite Materials Technology, Environmental Technology, Advanced Technologies for Forestry and Agriculture or Information Technology.

Quality of Jobs (10 points) Quality of the jobs to be created/retained based on salary and fringe benefits.

(v) Priority Areas (5 points) Applications assisting a business located in an identified Empowerment Zone, HUB Zone or a labor market area with an unemployment rate exceeding the state average by at least 50% will receive 5 points.

(vi) Final Application Score Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the 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.

7. Review Process for Activity Group 4 (DF Loan): Each application for DF assistance will be submitted through an OCD Development Fund Loan Application and must include all attachments required in the 2009 application directions.

Completed applications will be reviewed by the OCD Review Team who will make a recommendation to the Commissioner of Economic and Community Development. The following criteria will be considered during the application phase:

(i) Detailed description of project being financed.

(ii) Detail of the sources and uses (include itemized description of work and costs) of all financing.

(iii) Business' Federal tax return for the previous three years and/or complete accountant prepared financial statements (income statement and balance sheet and notes).

(iv) Interim financial statements (if the most recent financial information is older than 90 days).

(v) Personal Financial Statement and Federal Income Tax Returns of all owners and guarantors with 20% or more ownership.

(vi) One-year pro forma balance sheet, income statement and monthly cash flow statement with supporting assumptions.

(vii) Copies of signed commitment letter from other financing sources as applicable.

(viii) Completed Employment Plan.

(ix) Supplemental information such as collateral appraisals, marketing plans, resumes, site assessments, and aging of accounts receivable/payable may be requested by OCD. If these materials are readily available they should be included with the application package.

(x) Priority Areas DF Applications assisting a business located in an identified Empowerment Zone, HUB Zone or a labor market area with an unemployment rate exceeding the state average by at least 50% will receive priority for funding.

8. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Director of the Office of Community Development may grant waivers for just cause.

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.

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 and buildings solely for residential use 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: $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: Project benefit will be met when 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: Project benefit will be met when 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. Special Program Requirements

(a) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons, 2) preventing or eliminating slum or blighting conditions, or 3) 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. Census information, a certified target area survey, an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD, or assurances of spot blight designation or micro-enterprise eligibility 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 9, 2009.

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 CE application must submit a

Letter of Intent and Verification of CDBG National Objective to OCD on

or before 4:00PM on Friday January 9, 2009 according to the

requirements set forth in the 2009 DR application package.

(b) 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 20, 2009. 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 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

*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

(ii) Development Strategy (40 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

(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 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 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.

C. SMALL BUSINESS DEVELOPMENT CENTER TECHNICAL ASSISTANCE (Limited to the County of Aroostook)

The Small Business Development Center Technical Assistance (SBDCTA) provides funding to provide technical assistance to Maine micro-enterprise businesses through a partnership with Maine’s Small Business Development Centers.

1. Special Threshold Criteria and Certifications: SBDCTA will be distributed through a set aside of CDBG funds provided to the County of Aroostook as the lead community. The lead community will establish a legally binding contract with the SBDC as approved by OCD.

(a) Eligible Activities:

(i) Eligible activities under the SBDCTA are technical assistance to verified Maine micro-enterprise businesses and potential start up companies which can be reasonably expected to become a micro-enterprise business.

(b) Communities ineligible for SBDCTA Assistance:

(i) Micro-enterprise businesses and potential start up companies located in the communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the SBDCTA.

Special Program Requirements:

(a) Maximum SBDCTA Grant Amount: $250,000.

D. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are: demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property; and eligible planning activities necessary to complete the Project Development Phase.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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 Development Organization: NPDG activities may only be carried out by bona-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bona-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing, or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Application: The application deadline for the NPDG Program is 4:00PM EST on February 20, 2009. The OCD review team will rate each application in relation to all others.

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

(i) Documentation of bona-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 15 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 15 points

(viii) Pine Tree Zone Bonus: NPDG applications supporting project activities taking place in a designated Pine Tree Zone shall receive a bonus of 10 points.

(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. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for eligible Pine Tree Development Zone, Empowerment Zone or HUB Zone applicants is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award. Eligible planning activities necessary to complete the Project Development Phase are also an allowable expense.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. The application deadline for the CPG Program is 4:00PM on April 21, 2009. 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past efforts to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended within 12 months or less – 12 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 4 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):

*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. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

C. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2009 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2009 CDBG program, or added to the available monies for the 2009 or 2010 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2009 CDBG program, or added to the available monies for the 2009 or 2010 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2009 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2009 CDBG program or added to the available monies for the 2009 or 2010 competition.

3. Basis for Redistribution: The decision 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 for the 2009 competitions that did not receive funding, and the possibility of holding additional competitions during the 2009 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2009 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and BA programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2009 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2009 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

JOHN ELIAS BALDACCI JOHN RICHARDSON

GOVERNOR COMMISSIONER

TO: Potential CDBG Applicants

FR: Michael D. Baran, Acting Director, Office of Community Development

DA: September 10, 2008

RE: Community Evaluation Factor

Background: In recent years, for the Housing Assistance, Public Facility and Public Infrastructure programs, a “Community Evaluation Factor” has been used in the scoring process. The 7 factors used totaled 20 points and were calculated for communities within set population ranges. During the rule making process for the Program Statement, some suggestions have been made to use more relevant information, but substantive suggestions as to what might actually be more relevant were not received. Therefore, this year the OCD contracted with Planning Decisions, Inc. to look at this portion of the scoring process.

Planning Decisions identified two major problems with the existing factors. First, the data is complicated to collect and analyze, the process is time-consuming, and unhelpful to potential applicants in predetermining a degree of competitiveness before applying. Second, the data on substandard housing, rental affordability, low and moderate income population, and poverty, are based on the 2000 Census. This is currently six years old, and becomes increasingly out of date each year.

Therefore, Planning Decisions proceeded with their analysis with the following basic assumptions:

Scoring factors should be closely related to the program function for which the scoring factors relate (i.e., housing and infrastructure);

Some balancing is needed so that there is not a bias towards small communities (with few in need, but a high percentage) and large communities (which may have many in need even with a very low percentage).

Data which is updated on an ongoing basis, even if less precise, is preferable to data from the 2000 Census.

In order for communities to know in advance where they stand, the points must be predetermined prior to applications, and not depend on application data.

Relevance and weighting of factors: Under the existing system, each of the 7 factors was given an equal weight, so the result is that financial commitment and lower income households were given a “double” weight and the issue becomes whether the factors address the right criteria for the programs in question.

Logically, different criteria might be used to deal with housing needs as opposed to an infrastructure needs. These differences are already part of the scoring system, specifically, the narrative “impact” section (30 points) of the application. The community evaluation factor is meant to come into play when all other factors are basically equal – to determine awards where two communities have similar needs and equally effective solutions.

59 State House Station•Augusta•Maine•04333-0059

Phone: (207) 624-9800•Facsimile: (207) 287-8070•TTY (207) 437-1220

www.meocd.org

In this light, the most important factor would appear to be tax burden. For infrastructure, all other things being equal, the State would wish to fund activities in a town that is already making a significant tax effort; while substandard housing is important for rehab programs, and affordable housing is important for all programs and the presence of low-income people is a relevant factor, they are already heavily considered in the low-income benefit aspect of the program design. Financial commitment is relevant, but it does not fit into the Community Evaluation factor, because it is application-specific, and cannot be predetermined.

Given all of this, and putting aside the question of the appropriateness of individual measurements, Planning Decisions recommends a weighting that gives tax burden 50% of the points (10), housing 40% (8 points), and low income population 10% (2 points). The recommended distribution is below.

Type of factor

2006 Measurement

2006

points

Recommended

2007 points

Comment

Financial commitment

Budget Page review

2

0

Doesn’t fit into this factor

leveraging

3

Substandard housing

without plumbing

3

4

relevant for rehabilitation

Affordability

Renters >25%

3

4

relevant for all housing programs

Tax burden

Tax rate

3

10

the single most important factor for infrastructure

Low income population

Community LMI

3

2

relevant to all programs

<150% of poverty

3

TOTAL

20

20

Best measures: Given this general weighting of factors, how do we best measure them?

The current substandard housing measure uses data from the 2000 Census and is increasingly irrelevant today as hardly any year-round units in Maine lack complete plumbing and overcrowding continues to be a problem, more indicative of an affordability issue than of poor physical housing conditions. Therefore, the best external indicator for rehabilitation need is simply the age of its housing stock. While the age of housing is measured in the 2000 Census, updating is not important in this case, since the number of older units changes little from year-to-year.

Affordability is a problem that changes year to year, as the housing cycle changes. Therefore,

the best current measure of affordability is the “affordability index” published annually by Maine Housing which tracks changes in the housing market by community, and matches it against annual changes in median income in that community.

The best measure of tax burden was designed by the Maine Municipal Association a few years ago. Unfortunately, MMA has not continued with this. Therefore, OCD’s current approach of calculating the community’s tax rate (state-equalized) relative to the state average is better than any of the alternatives.

The best measure of tax burden was designed by the Maine Municipal Association a few years ago. Unfortunately, MMA has not continued with this. Therefore, OCD’s current approach of calculating the community’s tax rate (state-equalized) relative to the state average is better than any of the alternatives.

The HUD measures of low and moderate income people and poverty are all based on 2000 Census data. Therefore, the best current estimates on a town level for low and moderate income people are from Maine Housing, with data from a private provider called Claritas. For purposes of this factor, the proportion of households under 50% of area median income would provide a good sense of how many really low-income people are residing in an individual community. The measures that will be used are in the table below:

Type of factor

Best measure

How to Score

Source

Timeliness

Substandard housing

housing built before 1939

35% = 4

30 to 35% = 3

20 to 30% = 2

10 to 20% = 1

<10% = 0

2000 Census

2000 Census (but doesn’t change between Censuses)

Affordability

Affordability Index

(state average 0.7)

under 0.7 = 4

0.7 to 0.8 = 3

0.8 to 0.9 = 2

0.9 to 1.0 = 1

1.1+ = 0

Maine

Housing

Annual

Tax burden

Keep the same

(state average 12.99)

25 = 10

20 to 24 = 8

15 to 20 = 5

10 to 15 = 3

Under 10 = 0

Maine Revenue Services

Annual

Low income population

<50% of Area Median Income

20% + = 2

10 to 20% = 1

10% = 0

Maine

Housing (Claritas)

Annual

Finally, the question of adjustments for small and large municipalities: The discussion so far has not addressed whether the scoring system should take special measures to account for communities of different sizes – either by scaling all of the proposed measurements by sizes of communities, as is done now, or by including a balance of absolute number and percentage measures, in order to compensate for the effects of size on a measurement.

Planning Decisions does not recommend any special measures for the new method outlined above. There is no particular relationship between old housing and small or large municipalities; or example, Lewiston has a lot of old housing, and so does Osborne, and both would have a high score in this measure. Likewise, tax burden and affordability are unaffected either way by community size. The last measure, low income population, might favor rural communities because it is a percentage measure; but some urban service centers will get the maximum points on this, and therefore is recommended as a low point item.

2009 Community Development Block Grant Program

Community Evaluation Factor

Abbot

9

Belmont

6

Camden

13

Acton

7

Benton

7

Canaan

7

Addison

10

Berwick

10

Canton

10

Albion

8

Bethel

12

Caratunk

6

Alexander

9

Bingham

14

Caribou

13

Alfred

10

Blaine

10

Carmel

9

Allagash

6

Blue Hill

9

Carrabassett Valley

4

Alna

13

Boothbay

8

Carroll plantation

11

Alton

8

Boothbay Harbor

10

Carthage

11

Amherst

8

Bowdoin

9

Cary plantation

8

Amity

10

Bowdoinham

9

Casco

8

Andover

10

Bowerbank

4

Castine

10

Anson

16

Bradford

8

Castle Hill

9

Appleton

10

Bradley

11

Caswell

8

Arrowsic

10

Bremen

8

Chapman

7

Arundel

5

Brewer

13

Charleston

7

Ashland

12

Bridgewater

11

Charlotte

11

Athens

7

Brighton plantation

8

Chelsea

6

Atkinson

10

Bristol

8

Cherryfield

13

Augusta

13

Brooklin

10

Chester

7

Aurora

15

Brooks

9

Chesterville

8

Avon

11

Brooksville

10

China

9

Baileyville

12

Brownfield

8

Clifton

8

Baldwin

10

Brownville

14

Clinton

7

Bancroft

13

Brunswick

11

Columbia

9

Bar Harbor

9

Buckfield

8

Columbia Falls

13

Baring plantation

12

Bucksport

9

Cooper

10

Bath

12

Burlington

11

Coplin plantation

5

Beals

12

Burnham

9

Corinna

7

Beaver Cove

3

Buxton

6

Corinth

4

Beddington

5

Byron

9

Cornish

10

Belfast

15

Calais

17

Cornville

7

Belgrade

8

Cambridge

7

Cranberry Isles

10

Crawford

6

Etna

6

Harmony

7

Crystal

10

Eustis

11

Harrington

11

Cushing

7

Exeter

10

Hartford

8

Cutler

7

Fairfield

11

Hartland

7

Cyr plantation

9

Farmingdale

8

Haynesville

8

Dallas plantation

6

Farmington

12

Hebron

7

Damariscotta

11

Fayette

8

Hermon

7

Danforth

12

Fort Fairfield

14

Hersey

9

Dayton

8

Fort Kent

9

Highland plantation

5

Deblois

9

Frankfort

8

Hiram

11

Dedham

9

Franklin

5

Hodgdon

7

Deer Isle

9

Freedom

10

Holden

6

Denmark

6

Frenchboro

10

Hollis

9

Dennistown plantation

4

Frenchville

9

Hope

9

Dennysville

12

Friendship

9

Houlton

16

Detroit

7

Fryeburg

12

Howland

9

Dexter

11

Gardiner

12

Hudson

2

Dixfield

13

Garfield plantation

4

Industry

9

Dixmont

9

Garland

9

Island Falls

14

Dover-Foxcroft

13

Georgetown

7

Isle au Haut

8

Dresden

8

Gilead

11

Islesboro

8

Drew plantation

9

Glenburn

7

Jackman

11

Durham

8

Gouldsboro

7

Jackson

8

Dyer Brook

7

Grand Isle

11

Jay

9

Eagle Lake

9

Grand Lake Stream Plt

8

Jefferson

4

East Machias

15

Great Pond

6

Jonesboro

10

East Millinocket

12

Greenbush

9

Jonesport

9

Eastbrook

10

Greene

6

Kenduskeag

7

Easton

10

Greenville

11

Kennebunk

11

Eastport

14

Greenwood

9

Kennebunkport

8

Eddington

7

Guilford

10

Kingfield

13

Edgecomb

10

Hallowell

14

Kittery

11

Edinburg

8

Hamlin

8

Knox

8

Eliot

7

Hammond

12

Lagrange

9

Ellsworth

10

Hampden

9

Lake View plantation

4

Embden

3

Hancock

7

Lakeville

8

Enfield

6

Hanover

10

Lamoine

5

Lebanon

8

Maxfield

9

Orland

5

Lee

9

Mechanic Falls

13

Orono

13

Leeds

10

Meddybemps

9

Orrington

8

Levant

7

Medford

10

Osborn

13

Liberty

9

Medway

14

Otis

7

Limerick

10

Mercer

7

Otisfield

5

Limestone

10

Merrill

10

Owls Head

8

Limington

4

Mexico

16

Oxbow plantation

10

Lincoln

9

Milbridge

11

Oxford

7

Lincoln plantation

8

Milford

6

Palermo

8

Lincolnville

9

Millinocket

13

Palmyra

6

Linneus

7

Milo

15

Paris

9

Lisbon

12

Minot

7

Parkman

7

Litchfield

8

Monhegan plantation

10

Parsonsfield

12

Littleton

7

Monmouth

8

Passadumkeag

9

Livermore

8

Monroe

10

Patten

11

Livermore Falls

14

Monson

10

Pembroke

12

Lovell

10

Monticello

11

Penobscot

6

Lowell

9

Montville

12

Perham

11

Lubec

12

Moose River

9

Perry

10

Ludlow

8

Moro plantation

3

Peru

7

Lyman

5

Morrill

9

Phillips

15

Machias

14

Moscow

9

Phippsburg

7

Machiasport

8

Mount Chase

8

Pittsfield

12

Macwahoc plantation

10

Mount Desert

10

Pittston

8

Madawaska

11

Mount Vernon

9

Pleasant Ridge plantation

7

Madison

11

Nashville plantation

4

Plymouth

7

Madrid

5

New Canada

9

Poland

7

Magalloway plantation

4

Northfield

6

Portage Lake

7

Manchester

7

Northport

5

Porter

10

Mapleton

7

Norway

12

Oxbow plantation

10

Mariaville

4

Oakfield

8

Oxford

7

Mars Hill

18

Oakland

10

Palermo

8

Marshfield

9

Ogunquit

8

Palmyra

6

Masardis

11

Old Orchard Beach

10

Paris

9

Matinicus Isle plantation

9

Old Town

14

Parkman

7

Mattawamkeag

11

Orient

2

Parsonsfield

12

Passadumkeag

9

Saco

10

Stonington

10

Passamaquoddy Indianshp Res

5

Sandy River plantation

4

Stow

9

Passamaquoddy Pleasant Point

5

Sanford

11

Strong

10

Patten

11

Sangerville

10

Sullivan

10

Pembroke

12

Searsmont

8

Sumner

10

Penobscot

6

Searsport

12

Surry

8

Penobscot Indian Island Rsrvtion

6

Sebec

8

Swans Island

9

Perham

11

Seboeis plantation

8

Swanville

8

Perry

10

Sedgwick

10

Sweden

9

Peru

7

Shapleigh

6

Talmadge

14

Phillips

15

Sherman

7

Temple

9

Phippsburg

7

Shirley

8

The Forks plantation

6

Pittsfield

12

Sidney

4

Thomaston

15

Pittston

8

Skowhegan

11

Thorndike

9

Pleasant Ridge plantation

7

Smithfield

7

Topsfield

9

Plymouth

7

Smyrna

9

Topsham

8

Poland

7

Solon

8

Tremont

8

Portage Lake

7

Somerville

11

Trenton

7

Porter

10

Sorrento

8

Troy

9

Presque Isle

15

South Berwick

10

Turner

7

Princeton

12

South Bristol

10

Union

11

Prospect

10

South Thomaston

7

Unity

8

Randolph

10

Southport

10

Upton

5

Rangeley

10

Southwest Harbor

8

Van Buren

13

Rangeley plantation

5

Springfield

13

Vanceboro

14

Readfield

8

St. Agatha

10

Vassalboro

6

Reed plantation

11

St. Albans

4

Veazie

9

Richmond

13

St. Francis

8

Verona

8

Ripley

8

St. George

9

Vienna

9

Robbinston

8

St. John plantation

6

Vinalhaven

9

Rockland

15

Stacyville

10

Wade

10

Rockport

10

Starks

9

Waite

10

Rome

7

Stetson

7

Waldo

8

Roque Bluffs

7

Steuben

9

Waldoboro

10

Roxbury

10

Stockholm

11

Wales

9

Rumford

8

Stockton Springs

13

Wallagrass

7

Sabattus

10

Stoneham

7

Waltham

11

Warren

8

Woolwich

10

Washburn

13

York

7

Washington

7

Waterboro

8

Waterford

8

Waterville

18

Wayne

9

Webster plantation

10

Weld

9

Wellington

9

Wells

7

Wesley

10

West Bath

7

West Forks plantation

3

West Gardiner

4

West Paris

10

Westbrook

14

Westfield

9

Westmanland

7

Weston

6

Westport

7

Whitefield

4

Whiting

8

Whitneyville

13

Willimantic

5

Wilton

9

Windsor

8

Winn

13

Winslow

9

Winter Harbor

9

Winterport

8

Winterville plantation

3

Winthrop

9

Wiscasset

10

Woodland

7

Woodstock

6

Woodville

7

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

MIKE BARAN, ACTING DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

19-498 Chapter 37: 2009 CDBG Program Statement 57

19-498 Chapter 37: 2009 CDBG Program Statement 58

2

2008 CDBG Program Statement

State of Maine

Department of Economic

and Community Development

19-498 Chapter 37

SUMMARY……………………………………….……………………….…………………..……………3

SECTION 1. PROGRAM OVERVIEW

CDBG OBJECTIVES.…………………………………………………...………………...……………...3

METHOD OF DISTRIBUTION……………..…………..…………………..…………………………….4

STATE ADMINISTRATION……………………………………………………………...………….……4

EXLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES…………………..……………..4

NOTICE – GRANT ADMINISTRATION REQUIREMENT…………………………….......…..……...5

PROGRAM TIMEFRAME ….…………………………………………………………………………….5

PROGRAM BUDGET…………….………………………………………..……………………...………6

THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM………...………....7

SECTION 2. COMMUNITY DEVELOPMENT

HOUSING ASSISTANCE GRANT PROGRAM…………………………………………..……..…....12

HOME REPAIR NETWORK PROGRAM…………………………………………………...…………15

CRITICAL ACCESS RAMP PROGRAM………………………………………………...………….…17

PUBLIC FACILITIES GRANTS…………………………………………………………………………18

PUBLIC INFRASTRUCTURE GRANTS………………………………………………………….…...21

PUBLIC SERVICE GRANTS……………………………………………………………………………24

DOWNTOWN REVITALIZATION GRANTS……………………….……...………….….……….......27

MAINE DOWNTOWN CENTER ASSISTANCE………………………………………………………30

URGENT NEED GRANT PROGRAM…………..…………………………………………………..…31

SECTION 3. ECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT PROGRAM……………………………………………………..….…33

COMMUNITY ENTERPRISE GRANT PROGRAM……………………………………………..……38

SBDC TECHNICAL ASSISTANCE…………………………………………………………………….42

NON-PROFIT DEVELOPMENT GRANT PROGRAM…………………………………………….…43

INTERIM FINANCING PROGRAM…………………………………………………………………….45

SECTION 4. PLANNING AND SPECIAL PROJECTS

COMMUNITY PLANNING GRANT PROGRAM……………….………………………….…….……47

TECHNICAL ASSISTANCE PROGRAM……………………….……………………………….…….50

SPECIAL PROJECTS MATCHING FUND…………………….……………………….….……....….50

SECTION 5. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

REDISTRIBUTION OF GRANT FUNDS………………………………………………………………51

PROGRAM INCOME…….…………………………………………………………………….…….….52

SECTION 6. APPEALS

APPEALS…….…………………………………………………………………………….………..……53

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

AMENDMENTS TO THE PROGRAM STATEMENT……….…….………………….………………54

SECTION 8. COMMUNITY EVALUATION FACTORS 55

Chapter 38 Community Development Block Grant Program: 2010 Final Statement

Code Me. R. 19-498 Ch. 38 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-38 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 38}

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 38 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2010 PROGRAM STATEMENT

SUMMARY

This Proposed Program Statement describes the method by which 2010 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2010 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held a public hearing regarding the development of this Proposed Program Statement on August 21, 2009.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, mutli-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2010 Proposed Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Critical Access Ramp Program

Public Infrastructure Grants

Public Facilities Grants

Public Service Grants

Downtown Revitalization Grants

Maine Downtown Center Assistance

Urgent Need Grants

Economic Development

Grants to Municipalities for Direct Business Support

Development Fund Loans

Community Enterprise Grants

Non-Profit Development Grants

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES

The entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick, Casco and Frye Island are not eligible to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants). The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities including Community Planning Grants are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development by 4:00PM EST on the dates listed below:

Program

Letter of Intent Due Date

(All dates are “on or before”)

Application Due Date

Public Facilities

December 4, 2009

January 22, 2010

Public Infrastructure

December 4, 2009

January 22, 2010

Economic Development (Rd 1)

February 12, 2010

March 26, 2010

Economic Development (Rd 2)

May 28, 2010

July 16, 2010

Economic Development (Rd 3)

August 13, 2010

September 24, 2010

Downtown Revitalization

January 22, 2010

March 5, 2010

Community Enterprise

January 22, 2010

March 5, 2010

Housing Assistance

February 19, 2010

April 2, 2010

Public Service

March 19, 2010

April 30, 2010

Non-Profit Development

N/A

March 19, 2010

Community Planning

N/A

May 14, 2010

Urgent Need

N/A

Beginning on March 19, 2010

Interim Financing

N/A

Open – by invitation only

Special Projects Matching Fund

N/A

Open – by invitation only

Development Fund

N/A

First Friday of each month**

** If the first Friday of the month falls on a holiday or state shutdown day, the DF application will be due by 4:00pm on the next business day.

G. PROGRAM BUDGET

FY 2010 Proposed CDBG Budget $12,852,382

Administration 355,048

Technical Assistance Administration 128,524

Regional Council Technical Assistance 300,000

Special Projects Matching Fund 109,810

1. Housing Assistance Grants 2,225,000

2. Home Repair Network Program 1,103,000

3. Critical Access Ramp Program 300,000

4. Public Infrastructure Grants 2,250,000

5. Public Facilities Grants 1,300,000

6. Public Service Grants 250,000

7. Downtown Revitalization Grants 600,000

8. Maine Downtown Center 201,000

9. Urgent Need Grants 100,000

Economic Development Program

Business Assistance Grants *

Round 1 (March 26, 2010 application date) 800,000

Round 2 (July 16, 2010 application date) 750,000

Round 3 (September 24, 2010 application date) 700,000

Development Fund Loans **

Community Enterprise Grants 1,050,000

Non-Profit Development Grants 250,000

Interim Financing Program ***

Section 108 Loan Program ****

11. Community Planning 80,000

• Funds will be reserved for each of the three rounds of the Business Assistance Grant Category as stated above. A decision to exceed the amount allocated for rounds 1 and 2 by more than $100,000 is at the discretion of the OCD Director.

** The Development Fund Program will utilize only repayments from prior DF loans to

fund future DF Program applications.

*** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

**** If a DECD application to HUD for the Section 108 Loan Program is approved, the 2010 Final Program Statement will be amended to include a description of the method for distribution and use of loan repayments to DECD.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(i) Community Enterprise Prohibition - Communities applying

for a Community Enterprise (CE) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

(ii) Downtown Revitalization Program Prohibition - Communities applying

for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Community Enterprise (CE) grant in the same program year.

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are

permitted to apply in the same 2010 CDBG funding category as long as the

eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2009 award may not apply again in that specific program until the 2011 program. PI grantees in Activity Group Number 1, as listed in Section 2. E. 3. (a) (1) on Page 21 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 776.

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2010 Community Development Block Grant program, communities that received CDBG grants in or prior to 2006 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2007 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2008 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2009 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director, OCD in the case of applicants having existing Economic Development program awards where job creation benefit has not been met. Waivers will not be considered for those projects which exceed the final contracted date for job creation by more than 12 months.

(i) Special Housing Assistance Grant Program (HA) Past Performance Requirement - Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Community Planning Grants, from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Letters of Intent and required documentation for all programs with the exception of Non-Profit Development Program, Urgent Need Grant Program, Special Project Matching Fund, Critical Access Ramp Program, SBDC Technical Assistance and Community Planning Grant Program will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Baldwin, Brunswick, Casco and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2010 Program Statement and 2010 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Special Project Matching Fund, Urgent Need Grants, SBDC Technical Assistance, Home Repair Network, Critical Access Ramp Program and Non-Profit Development Grant program will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Final scores will be determined by averaging the scores assigned by members of the 4-person OCD Review Team and adding any applicable community evaluation factors and bonus point totals. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, first consideration will be given to the community that is listed by the Maine State Planning Office as a Service Center; if both applicants meet this definition, the tie will be broken based on the highest Community Evaluation Factor. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

(a) Community Evaluation Factor: A pre-determined community evaluation factor with a maximum point total of 20 will be added to the average review team score for each application for the Housing Assistance, Public Infrastructure and Public Facilities grant programs to determine the final score. The Community Evaluation Factor will be based on pre-determined criteria established by an independent authority for each community in Maine and is contained in this 2010 Program Statement.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Non-Profit Development Grant Program (NPDG) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

Project Eligibility: Verification that proposed activities are eligible under

The Act.

Project Benefit: Verification that proposed activities meet one of the CDBG

Program National Objectives.

Environmental Review: Review of project for compliance with State and

Federal Environmental Regulations.

(g) Project Development Phase Requirement: All communities receiving a CDBG program grant award must complete the project development phase materials as outlined in the Maine CDBG Program materials and handbooks.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Community Planning Grant program OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

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.

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.

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: $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 $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 Housing 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

Minimum 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.

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.

Letter of Intent: All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before February 19, 2010 according to the requirements set forth in the 2010 Housing Assistance Application Package.

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 3, 2010. 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 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 has been pre-determined by an independent authority for each community in Maine and published in the 2010 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.

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 Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the HRN program.

(c) The lead community must certify that each designated program administrator will:

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

Special Program Requirements:

(a) Maximum HRN Grant Amount: $1,103,000, 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 $3,000 in administrative funding.

(d) Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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 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 Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the CARP.

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. 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.

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 4, 2009.

(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 on

or before 4:00PM on Friday December 4, 2009 according to the

requirements set forth in the 2010 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on January 22, 2010. 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 2010 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.

E. 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.

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.

Special Program Requirements:

(a) Maximum PI Grant Amounts

Activity Group Numbers Maximum Amount

1. Water system installation/improvements, sewer system $500,000

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)

2. Infrastructure in support of new LMI affordable fully $500,000

financed housing

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 4, 2009.

(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 4, 2009 according to the

requirements set forth in the 2010 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on January 22, 2010. 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, 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 2010 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 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

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 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.

Letter of Intent: All communities wishing to submit a PSG application must submit a Letter of Intent to OCD on or before March 19, 2010 according to the requirements set forth in the 2010 Public Service Application Package.

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 April 30, 2010. 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%

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 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.

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; 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 15, 2010.

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 22, 2010 according to the

requirements set forth in the 2010 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 5, 2010. 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%

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 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 Center Designation Bonus – 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.

H. 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 Baldwin, Brunswick, Casco and Frye Island are not eligible for financial assistance under the MDCA.

3. Maximum Administrative Costs:

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.

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.

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 $100,000.

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

Application: An UN application must include the following:

(a) documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

(b) certification that the proposal is designed to address an urgent need and an immediate response is required to halt the threat of injury or loss of life;

(c) information regarding when the urgent need condition occurred or developed into a threat to health and safety;

(d) evidence confirming the applicant is unable to finance implementation on its own; and,

(e) documentation that other financial resources are not available to implement the proposal.

(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 19, 2010. 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.

SECTION 3. ECONOMIC DEVELOPMENT

A. ECONOMIC DEVELOPMENT PROGRAM

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible EDP Activities and Maximum Grant and Loan Awards:

(a) Activity Breakdown: Applicants may apply in only one specific grant activity group. Applicants for Activity Group Numbers 2 and 3 below may also utilize the DF Loan Activity for the same project but are limited to a total of $400,000 in EDP assistance.

Activity Group Numbers Maximum Award

1. Grants to Municipalities: for acquisition, relocation, $300,000

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. All public

infrastructure must be owned by the municipality or

public or private utility and be in support of an identified

business.

2. Grants to Municipalities for Direct Business Support: $200,000

for non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial

buildings.

3. Grants to Municipalities for Direct Business Support: $100,000

Working Capital and capital equipment.

4. Development Fund Loan (DF): for acquisition of $300,000

existing facilities, land and site improvements necessary for

the construction of a new facility, rehabilitation or construction

of commercial or industrial buildings, structures, non-capital

equipment, capital equipment, working capital and real

property improvements and the development of affordable LMI housing.

Economic Development Program funds cannot be used to refinance existing debt.

2. Threshold Criteria:

(a) Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business

located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

(b) Job Creation Threshold Requirements: Each job created with EDP assistance must meet or exceed the Per Capita Income earnings listed in the published schedule contained on the EDP Letter of Intent for the Maine County where the EDP project will take place. “Earnings” means the base pay paid by the qualified business, plus any overtime, incentives or commissions paid. Projects not meeting the job creation threshold requirement will be removed from competition during the Letter of Intent process. EDP Letters of Intent in support of bona fide job retention are not required to meet the Per Capita Income earnings threshold.

(c) Program Dollars Per Job: The maximum CDBG participation per job created or retained with EDP funds in a non Pine Tree Development Zone or not in an identified Empowerment Zone or HUB Zone is $20,000. The maximum CDBG participation per job created or retained with EDP funds for a certified Pine Tree Development Zone business and/or a business located in an Empowerment Zone or HUB Zone is $30,000. Pine Tree Development Zone certified means that the business has been certified as a Pine Tree Development business by the Department of Economic and Community Development at the time of application.

(d) Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

(e) Minimum EDP Application Amount: $50,000

(f) Maximum Project Size for Utilizing EDP Funds: $5,000,000

Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

(g) Minimum Per Capita Income Requirement: All jobs created with EDP assistance must meet or exceed the Per Capita Income earnings established for the Maine County where the EDP project will take place.

(h) All EDP activities must be in support of an identified business; speculative activities are prohibited.

3. Program Requirements:

EDP Letter of Intent Due Dates for Activity Group Numbers 1-3 ONLY: 4:00PM on February 12, 2010, May 28, 2010 and August 13, 2010.

EDP Application Due Dates for Activity Group Numbers 1-3 ONLY: 4:00PM on March 26, 2010, July 16, 2010 and September 24, 2010.

EDP Application Due Dates for Activity Group Number 4 ONLY: Due 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.

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(e) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(f) EDP Matching Funds Requirements: Communities applying for

Economic Development Program funds must certify that they will provide a

100% cash match of the total EDP award. Matching funds must be directly

related to the activities undertaken with EDP funding.

(g) Exclusions: Communities receiving an EDP award may not receive any

other EDP award for the same project or business during the same program

year or for the same project or business from a prior program year that has

not met final closeout status.

(h) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

4. Special Program Requirements for Grants to Municipalities then Loaned to an Identified Business (Activity Group 4 only):

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between the DECD, the community and the business.

(ii) 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 Development Fund loans is up to 5% for a term not to exceed 10 years. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

5. Selection Process for Activity Groups 1, 2, and 3: The selection process will consist of three phases, a letter of intent (does not apply to the Development Fund Loan activity), an application phase and a project development phase.

6. Review Team Analysis – 45 Points (to be completed by applicant)

Members of the 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. The following criteria will be used:

a. Problem Statement (15 points) - Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with available assistance from other sources.

Scope of Problem (5 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact on Community and Region (5 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well being including property tax analysis before and after the proposed activities.

Need for Funds (5 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

b. Proposed Solution (20 points) - Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need, how the project will proceed to completion within 12 months from the date of a contract award with the DECD and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

Project Description (10 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (5 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (5 points)

Describe how the project is assured of successful completion within 12

months.

Identify what work, such as pre-engineering, construction and improvements,

or fixture purchases that have been completed, or are in process, and

exactly how these relate to the proposed ED project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

c. Citizen Participation (10 Points) - Describe how business groups, local citizens, community groups and others were involved in the identification of the problems/needs and solutions discussed in the application. Local citizens, groups, boards, agencies, etc. are essential to any successful project. It is important that you show how these various groups were involved in bringing problems or needs to the attention of the community. The OCD views the involvement of local citizens in focusing on problems/ and solutions as a key element in a successful program application as well as in successful implementation of a project. Review is divided into two areas. Following each area are topics, information, or ideas that must be included in Citizen Participation.

Public Hearing Process (5 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (5 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

d. Numerical Analysis – 55 Points (The applicant is not responsible for providing any additional information for this analysis.) OCD staff will review each EDP application and calculate the score for this section based upon information provided in the EDP Letter-of-Intent and this application. The following factors will be used to determine the score in this section:

Strategy Priority (5 points) How the proposed EDP activity is aligned with the

State’s economic development strategy and supports at least one of the State’s

targeted technology sectors, specifically one of the following: Precision

Manufacturing Technology, Biotechnology, Aquaculture and Marine

Technology, Composite Materials Technology, Environmental Technology,

Advanced Technologies for Forestry and Agriculture or Information Technology.

Natural Resource Based (5 points) Will be based on information received in the

EDP Application.

Project Significance (45 points) Each application will be evaluated in relation to

all others. Scores will be based on a maximum of 5 points in each of the

following nine areas:

Number of jobs to be created/retained

Number of jobs created/retained as % of municipal unemployment

Number of jobs created/retained as % of LMA unemployment

% community unemployment is above state average

% of LMA unemployment is above state average

EDP dollars per job created/retained

Hourly salary of jobs created/retained exceeds County Per Capita Income

Quality of jobs created/retained based on wages and fringe benefits

% non EDP funding in project

e. Priority Areas Bonus (5 points) Applications assisting a business located in an

identified Empowerment Zone, HUB Zone or a labor market area with an

unemployment rate exceeding the state average by at least 50% will receive a 5

point bonus.

f. Final Application Score Each application will receive a Final Application Score

consisting of the average of the scores assigned by members of the 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.

7. Review Process for Activity Group 4 (DF Loan): Each application for DF assistance will be submitted through an OCD Development Fund Loan Application and must include all attachments required in the 2010 application directions.

Completed applications will be reviewed by the OCD Review Team who will make a recommendation to the Commissioner of Economic and Community Development. The following criteria will be considered during the application phase:

(i) Detailed description of project being financed.

(ii) Detail of the sources and uses (include itemized description of work and costs) of all financing.

(iii) Business' Federal tax return for the previous three years and/or complete accountant prepared financial statements (income statement and balance sheet and notes).

(iv) Interim financial statements (if the most recent financial information is older than 90 days).

(v) Personal Financial Statement and Federal Income Tax Returns of all owners and guarantors with 20% or more ownership.

(vi) One-year pro forma balance sheet, income statement and monthly cash flow statement with supporting assumptions.

(vii) Copies of signed commitment letter from other financing sources as applicable.

(viii) Completed Employment Plan.

(ix) Supplemental information such as collateral appraisals, marketing plans, resumes, site assessments, and aging of accounts receivable/payable may be requested by OCD. If these

materials are readily available they should be included with the application package.

(x) Priority Areas DF Applications assisting a business located in an identified Empowerment Zone, HUB Zone or a labor market area with an unemployment rate exceeding the state average by at least 50% will receive priority for funding.

8. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Director of the Office of Community Development may grant waivers for just cause.

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.

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 and buildings solely for residential use 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: $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: Project benefit will be met when 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: Project benefit will be met when 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. Special Program Requirements

(a) Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons, 2) preventing or eliminating slum or blighting conditions, or 3) 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. Census information, a certified target area survey, an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD, or assurances of spot blight designation or micro-enterprise eligibility 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 22, 2010.

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 CE application must submit a

Letter of Intent and Verification of CDBG National Objective to OCD on

or before 4:00PM on Friday January 22, 2010 according to the

requirements set forth in the 2010 DR application package.

(b) 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 March 5, 2010. 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 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

*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

(ii) Development Strategy (40 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

(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 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 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.

D. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are: demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property; and eligible planning activities necessary to complete the Project Development Phase.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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 Development Organization: NPDG activities may only be carried out by bona-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bona-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing, or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Application: The application deadline for the NPDG Program is 4:00PM EST on March 19, 2010. The OCD review team will rate each application in relation to all others.

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

(i) Documentation of bona-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 15 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 15 points

(viii) Pine Tree Zone Bonus: NPDG applications supporting project activities taking place in a designated Pine Tree Zone shall receive a bonus of 10 points.

(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. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for eligible Pine Tree Development Zone, Empowerment Zone or HUB Zone applicants is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award. Eligible planning activities necessary to complete the Project Development Phase are also an allowable expense.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon

either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. The application deadline for the CPG Program is 4:00PM on May 14, 2010. 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past efforts to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended within 12 months or less – 12 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 4 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):

*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. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

C. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2010 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2009 CDBG program, or added to the available monies for the 2010 or 2011 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2009 CDBG program, or added to the available monies for the 2010 or 2011 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2010 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2010 CDBG program or added to the available monies for the 2010 or 2011 competition.

3. Basis for Redistribution: The decision 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 for the 2010 competitions that did not receive funding, and the possibility of holding additional competitions during the 2010 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2010 Program Statement.

4. Development Fund Program Repayments: DF loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and BA programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2009 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2010 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

JOHN ELIAS BALDACCI JOHN RICHARDSON

GOVERNOR COMMISSIONER

TO: Potential CDBG Applicants

FR: Michael D. Baran, Acting Director, Office of Community Development

DA: September 28, 2009

RE: Community Evaluation Factor

Background: In recent years, for the Housing Assistance, Public Facility and Public Infrastructure programs, a “Community Evaluation Factor” has been used in the scoring process. The 7 factors used totaled 20 points and were calculated for communities within set population ranges. During the rule making process for the Program Statement, some suggestions have been made to use more relevant information, but substantive suggestions as to what might actually be more relevant were not received. Therefore, this year the OCD contracted with Planning Decisions, Inc. to look at this portion of the scoring process.

Planning Decisions identified two major problems with the existing factors. First, the data is complicated to collect and analyze, the process is time-consuming, and unhelpful to potential applicants in predetermining a degree of competitiveness before applying. Second, the data on substandard housing, rental affordability, low and moderate income population, and poverty, are based on the 2000 Census. This is currently six years old, and becomes increasingly out of date each year.

Therefore, Planning Decisions proceeded with their analysis with the following basic assumptions:

Scoring factors should be closely related to the program function for which the scoring factors relate (i.e., housing and infrastructure);

Some balancing is needed so that there is not a bias towards small communities (with few in need, but a high percentage) and large communities (which may have many in need even with a very low percentage).

Data which is updated on an ongoing basis, even if less precise, is preferable to data from the 2000 Census.

In order for communities to know in advance where they stand, the points must be predetermined prior to applications, and not depend on application data.

Relevance and weighting of factors: Under the existing system, each of the 7 factors was given an equal weight, so the result is that financial commitment and lower income households were given a “double” weight and the issue becomes whether the factors address the right criteria for the programs in question.

Logically, different criteria might be used to deal with housing needs as opposed to an infrastructure needs. These differences are already part of the scoring system, specifically, the narrative “impact” section (30 points) of the application. The community evaluation factor is meant to come into play when all other factors are basically equal – to determine awards where two communities have similar needs and equally effective solutions.

59 State House Station•Augusta•Maine•04333-0059

Phone: (207) 624-9800•Facsimile: (207) 287-8070•TTY (207) 437-1220

www.meocd.org

In this light, the most important factor would appear to be tax burden. For infrastructure, all other things being equal, the State would wish to fund activities in a town that is already making a significant tax effort; while substandard housing is important for rehab programs, and affordable housing is important for all programs and the presence of low-income people is a relevant factor, they are already heavily considered in the low-income benefit aspect of the program design. Financial commitment is relevant, but it does not fit into the Community Evaluation factor, because it is application-specific, and cannot be predetermined.

Given all of this, and putting aside the question of the appropriateness of individual measurements, Planning Decisions recommends a weighting that gives tax burden 50% of the points (10), housing 40% (8 points), and low income population 10% (2 points). The recommended distribution is below.

Type of factor

2006 Measurement

2006

points

Recommended

2007 points

Comment

Financial commitment

Budget Page review

2

0

Doesn’t fit into this factor

leveraging

3

Substandard housing

without plumbing

3

4

relevant for rehabilitation

Affordability

Renters >25%

3

4

relevant for all housing programs

Tax burden

Tax rate

3

10

the single most important factor for infrastructure

Low income population

Community LMI

3

2

relevant to all programs

<150% of poverty

3

TOTAL

20

20

Best measures: Given this general weighting of factors, how do we best measure them?

The current substandard housing measure uses data from the 2000 Census and is increasingly irrelevant today as hardly any year-round units in Maine lack complete plumbing and overcrowding continues to be a problem, more indicative of an affordability issue than of poor physical housing conditions. Therefore, the best external indicator for rehabilitation need is simply the age of its housing stock. While the age of housing is measured in the 2000 Census, updating is not important in this case, since the number of older units changes little from year-to-year.

Affordability is a problem that changes year to year, as the housing cycle changes. Therefore,

the best current measure of affordability is the “affordability index” published annually by Maine Housing which tracks changes in the housing market by community, and matches it against annual changes in median income in that community.

The best measure of tax burden was designed by the Maine Municipal Association a few years ago. Unfortunately, MMA has not continued with this. Therefore, OCD’s current approach of calculating the community’s tax rate (state-equalized) relative to the state average is better than any of the alternatives.

The best measure of tax burden was designed by the Maine Municipal Association a few years ago. Unfortunately, MMA has not continued with this. Therefore, OCD’s current approach of calculating the community’s tax rate (state-equalized) relative to the state average is better than any of the alternatives.

The HUD measures of low and moderate income people and poverty are all based on 2000 Census data. Therefore, the best current estimates on a town level for low and moderate income people are from Maine Housing, with data from a private provider called Claritas. For purposes of this factor, the proportion of households under 50% of area median income would provide a good sense of how many really low-income people are residing in an individual community. The measures that will be used are in the table below:

Type of factor

Best measure

How to Score

Source

Timeliness

Substandard housing

housing built before 1939

35% = 4

30 to 35% = 3

20 to 30% = 2

10 to 20% = 1

<10% = 0

2000 Census

2000 Census (but doesn’t change between Censuses)

Affordability

Affordability Index

(state average 0.7)

under 0.7 = 4

0.7 to 0.8 = 3

0.8 to 0.9 = 2

0.9 to 1.0 = 1

1.1+ = 0

Maine

Housing

Annual

Tax burden

Keep the same

(state average 12.99)

25 = 10

20 to 24 = 8

15 to 20 = 5

10 to 15 = 3

Under 10 = 0

Maine Revenue Services

Annual

Low income population

<50% of Area Median Income

20% + = 2

10 to 20% = 1

10% = 0

Maine

Housing (Claritas)

Annual

Finally, the question of adjustments for small and large municipalities: The discussion so far has not addressed whether the scoring system should take special measures to account for communities of different sizes – either by scaling all of the proposed measurements by sizes of communities, as is done now, or by including a balance of absolute number and percentage measures, in order to compensate for the effects of size on a measurement.

Planning Decisions does not recommend any special measures for the new method outlined above. There is no particular relationship between old housing and small or large municipalities; or example, Lewiston has a lot of old housing, and so does Osborne, and both would have a high score in this measure. Likewise, tax burden and affordability are unaffected either way by community size. The last measure, low income population, might favor rural communities because it is a percentage measure; but some urban service centers will get the maximum points on this, and therefore is recommended as a low point item.

2010 Community Development Block Grant Program

Community Evaluation Factor

Abbot

9

Belmont

6

Camden

13

Acton

7

Benton

7

Canaan

7

Addison

10

Berwick

10

Canton

10

Albion

8

Bethel

12

Caratunk

6

Alexander

9

Bingham

14

Caribou

13

Alfred

10

Blaine

10

Carmel

9

Allagash

6

Blue Hill

9

Carrabassett Valley

4

Alna

13

Boothbay

8

Carroll plantation

11

Alton

8

Boothbay Harbor

10

Carthage

11

Amherst

8

Bowdoin

9

Cary plantation

8

Amity

10

Bowdoinham

9

Casco

8

Andover

10

Bowerbank

4

Castine

10

Anson

16

Bradford

8

Castle Hill

9

Appleton

10

Bradley

11

Caswell

8

Arrowsic

10

Bremen

8

Chapman

7

Arundel

5

Brewer

13

Charleston

7

Ashland

12

Bridgewater

11

Charlotte

11

Athens

7

Brighton plantation

8

Chelsea

6

Atkinson

10

Bristol

8

Cherryfield

13

Augusta

13

Brooklin

10

Chester

7

Aurora

15

Brooks

9

Chesterville

8

Avon

11

Brooksville

10

China

9

Baileyville

12

Brownfield

8

Clifton

8

Baldwin

10

Brownville

14

Clinton

7

Bancroft

13

Brunswick

11

Columbia

9

Bar Harbor

9

Buckfield

8

Columbia Falls

13

Baring plantation

12

Bucksport

9

Cooper

10

Bath

12

Burlington

11

Coplin plantation

5

Beals

12

Burnham

9

Corinna

7

Beaver Cove

3

Buxton

6

Corinth

4

Beddington

5

Byron

9

Cornish

10

Belfast

15

Calais

17

Cornville

7

Belgrade

8

Cambridge

7

Cranberry Isles

10

Crawford

6

Etna

6

Harmony

7

Crystal

10

Eustis

11

Harrington

11

Cushing

7

Exeter

10

Hartford

8

Cutler

7

Fairfield

11

Hartland

7

Cyr plantation

9

Farmingdale

8

Haynesville

8

Dallas plantation

6

Farmington

12

Hebron

7

Damariscotta

11

Fayette

8

Hermon

7

Danforth

12

Fort Fairfield

14

Hersey

9

Dayton

8

Fort Kent

9

Highland plantation

5

Deblois

9

Frankfort

8

Hiram

11

Dedham

9

Franklin

5

Hodgdon

7

Deer Isle

9

Freedom

10

Holden

6

Denmark

6

Frenchboro

10

Hollis

9

Dennistown plantation

4

Frenchville

9

Hope

9

Dennysville

12

Friendship

9

Houlton

16

Detroit

7

Fryeburg

12

Howland

9

Dexter

11

Gardiner

12

Hudson

2

Dixfield

13

Garfield plantation

4

Industry

9

Dixmont

9

Garland

9

Island Falls

14

Dover-Foxcroft

13

Georgetown

7

Isle au Haut

8

Dresden

8

Gilead

11

Islesboro

8

Drew plantation

9

Glenburn

7

Jackman

11

Durham

8

Gouldsboro

7

Jackson

8

Dyer Brook

7

Grand Isle

11

Jay

9

Eagle Lake

9

Grand Lake Stream Plt

8

Jefferson

4

East Machias

15

Great Pond

6

Jonesboro

10

East Millinocket

12

Greenbush

9

Jonesport

9

Eastbrook

10

Greene

6

Kenduskeag

7

Easton

10

Greenville

11

Kennebunk

11

Eastport

14

Greenwood

9

Kennebunkport

8

Eddington

7

Guilford

10

Kingfield

13

Edgecomb

10

Hallowell

14

Kittery

11

Edinburg

8

Hamlin

8

Knox

8

Eliot

7

Hammond

12

Lagrange

9

Ellsworth

10

Hampden

9

Lake View plantation

4

Embden

3

Hancock

7

Lakeville

8

Enfield

6

Hanover

10

Lamoine

5

Lebanon

8

Maxfield

9

Orland

5

Lee

9

Mechanic Falls

13

Orono

13

Leeds

10

Meddybemps

9

Orrington

8

Levant

7

Medford

10

Osborn

13

Liberty

9

Medway

14

Otis

7

Limerick

10

Mercer

7

Otisfield

5

Limestone

10

Merrill

10

Owls Head

8

Limington

4

Mexico

16

Oxbow plantation

10

Lincoln

9

Milbridge

11

Oxford

7

Lincoln plantation

8

Milford

6

Palermo

8

Lincolnville

9

Millinocket

13

Palmyra

6

Linneus

7

Milo

15

Paris

9

Lisbon

12

Minot

7

Parkman

7

Litchfield

8

Monhegan plantation

10

Parsonsfield

12

Littleton

7

Monmouth

8

Passadumkeag

9

Livermore

8

Monroe

10

Patten

11

Livermore Falls

14

Monson

10

Pembroke

12

Lovell

10

Monticello

11

Penobscot

6

Lowell

9

Montville

12

Perham

11

Lubec

12

Moose River

9

Perry

10

Ludlow

8

Moro plantation

3

Peru

7

Lyman

5

Morrill

9

Phillips

15

Machias

14

Moscow

9

Phippsburg

7

Machiasport

8

Mount Chase

8

Pittsfield

12

Macwahoc plantation

10

Mount Desert

10

Pittston

8

Madawaska

11

Mount Vernon

9

Pleasant Ridge plantation

7

Madison

11

Nashville plantation

4

Plymouth

7

Madrid

5

New Canada

9

Poland

7

Magalloway plantation

4

Northfield

6

Portage Lake

7

Manchester

7

Northport

5

Porter

10

Mapleton

7

Norway

12

Oxbow plantation

10

Mariaville

4

Oakfield

8

Oxford

7

Mars Hill

18

Oakland

10

Palermo

8

Marshfield

9

Ogunquit

8

Palmyra

6

Masardis

11

Old Orchard Beach

10

Paris

9

Matinicus Isle plantation

9

Old Town

14

Parkman

7

Mattawamkeag

11

Orient

2

Parsonsfield

12

Passadumkeag

9

Saco

10

Stonington

10

Passamaquoddy Indianshp Res

5

Sandy River plantation

4

Stow

9

Passamaquoddy Pleasant Point

5

Sanford

11

Strong

10

Patten

11

Sangerville

10

Sullivan

10

Pembroke

12

Searsmont

8

Sumner

10

Penobscot

6

Searsport

12

Surry

8

Penobscot Indian Island Rsrvtion

6

Sebec

8

Swans Island

9

Perham

11

Seboeis plantation

8

Swanville

8

Perry

10

Sedgwick

10

Sweden

9

Peru

7

Shapleigh

6

Talmadge

14

Phillips

15

Sherman

7

Temple

9

Phippsburg

7

Shirley

8

The Forks plantation

6

Pittsfield

12

Sidney

4

Thomaston

15

Pittston

8

Skowhegan

11

Thorndike

9

Pleasant Ridge plantation

7

Smithfield

7

Topsfield

9

Plymouth

7

Smyrna

9

Topsham

8

Poland

7

Solon

8

Tremont

8

Portage Lake

7

Somerville

11

Trenton

7

Porter

10

Sorrento

8

Troy

9

Presque Isle

15

South Berwick

10

Turner

7

Princeton

12

South Bristol

10

Union

11

Prospect

10

South Thomaston

7

Unity

8

Randolph

10

Southport

10

Upton

5

Rangeley

10

Southwest Harbor

8

Van Buren

13

Rangeley plantation

5

Springfield

13

Vanceboro

14

Readfield

8

St. Agatha

10

Vassalboro

6

Reed plantation

11

St. Albans

4

Veazie

9

Richmond

13

St. Francis

8

Verona

8

Ripley

8

St. George

9

Vienna

9

Robbinston

8

St. John plantation

6

Vinalhaven

9

Rockland

15

Stacyville

10

Wade

10

Rockport

10

Starks

9

Waite

10

Rome

7

Stetson

7

Waldo

8

Roque Bluffs

7

Steuben

9

Waldoboro

10

Roxbury

10

Stockholm

11

Wales

9

Rumford

8

Stockton Springs

13

Wallagrass

7

Sabattus

10

Stoneham

7

Waltham

11

Warren

8

Woolwich

10

Washburn

13

York

7

Washington

7

Waterboro

8

Waterford

8

Waterville

18

Wayne

9

Webster plantation

10

Weld

9

Wellington

9

Wells

7

Wesley

10

West Bath

7

West Forks plantation

3

West Gardiner

4

West Paris

10

Westbrook

14

Westfield

9

Westmanland

7

Weston

6

Westport

7

Whitefield

4

Whiting

8

Whitneyville

13

Willimantic

5

Wilton

9

Windsor

8

Winn

13

Winslow

9

Winter Harbor

9

Winterport

8

Winterville plantation

3

Winthrop

9

Wiscasset

10

Woodland

7

Woodstock

6

Woodville

7

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

MIKE BARAN, ACTING DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

2010 CDBG Program Statement 64

2

2010 CDBG Proposed Statement

State of Maine

Department of Economic

and Community Development

SUMMARY……………………………………….……………………….…………………..……………3

SECTION 1. PROGRAM OVERVIEW

CDBG OBJECTIVES.…………………………………………………...………………...……………...3

METHOD OF DISTRIBUTION……………..…………..…………………..…………………………….4

STATE ADMINISTRATION……………………………………………………………...………….……4

EXLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES…………………..……………..4

NOTICE – GRANT ADMINISTRATION REQUIREMENT…………………………….......…..……...5

PROGRAM TIMEFRAME ….…………………………………………………………………………….5

PROGRAM BUDGET…………….………………………………………..……………………...………6

THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM………...………....7

SECTION 2. COMMUNITY DEVELOPMENT

HOUSING ASSISTANCE GRANT PROGRAM…………………………………………..……..…....12

HOME REPAIR NETWORK PROGRAM…………………………………………………...…………15

CRITICAL ACCESS RAMP PROGRAM………………………………………………...………….…17

PUBLIC FACILITIES GRANTS…………………………………………………………………………18

PUBLIC INFRASTRUCTURE GRANTS………………………………………………………….…...21

PUBLIC SERVICE GRANTS……………………………………………………………………………24

DOWNTOWN REVITALIZATION GRANTS……………………….……...………….….……….......27

MAINE DOWNTOWN CENTER ASSISTANCE………………………………………………………30

URGENT NEED GRANT PROGRAM…………..…………………………………………………..…31

SECTION 3. ECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT PROGRAM……………………………………………………..….…33

COMMUNITY ENTERPRISE GRANT PROGRAM……………………………………………..……41

NON-PROFIT DEVELOPMENT GRANT PROGRAM…………………………………………….…45

INTERIM FINANCING PROGRAM…………………………………………………………………….47

SECTION 4 PLANNING AND SPECIAL PROJECTS

COMMUNITY PLANNING GRANT PROGRAM……………….………………………….…….……49

TECHNICAL ASSISTANCE PROGRAM……………………….……………………………….…….52

SPECIAL PROJECTS MATCHING FUND…………………….……………………….….……....….52

SECTION 5. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

REDISTRIBUTION OF GRANT FUNDS………………………………………………………………53

PROGRAM INCOME…….…………………………………………………………………….…….….54

SECTION 6. APPEALS

APPEALS…….…………………………………………………………………………….………..……55

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

AMENDMENTS TO THE PROGRAM STATEMENT……….…….………………….………………56

SECTION 8. COMMUNITY EVALUATION FACTORS……………………..57

Chapter 39 Community Development Block Grant Program: 2011 Final Statement

Code Me. R. 19-498 Ch. 39 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-39 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 39}

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 39 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2011 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2011 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2011 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 4 state-wide public forums conducted jointly with MaineHousing and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD will hold a public hearing regarding the development of this Program Statement on August 20, 2010.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2011 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Critical Access Ramp Program

Development Fund Housing Loans

Public Infrastructure Grants

Public Facilities Grants

Public Service Grants

Downtown Revitalization Grants

Maine Downtown Center Assistance

Urgent Need Grants

Economic Development

Grants to Municipalities for Direct Business Support

Development Fund Loans

Community Enterprise Grants

Non-Profit Development Grants

Interim Financing Program Loans

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus up to 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES

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 to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a certified Rehabilitation Technician (as employees or consultants). The Director, Office of Community Development must approve waivers of this requirement in writing. All planning activities including Community Planning Grants are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development by 4:00PM EST on the dates listed below. Faxed or e-mailed copies will not be accepted.

Program

Letter of Intent Due Date

(All dates are “on or before”)

Application Due Date

Public Facilities

December 3, 2010

January 21, 2011

Public Infrastructure

December 3, 2010

January 21, 2011

Economic Development (Rd 1)

February 11, 2011

March 25, 2011

Economic Development (Rd 2)

May 20, 2011

July 15, 2011

Economic Development (Rd 3)

August 12, 2011

September 23, 2011

Downtown Revitalization

January 7, 2011

March 4, 2011

Community Enterprise

January 7, 2011

March 4, 2011

Non-Profit Development

January 21, 2011

March 25, 2011

Housing Assistance

February 18, 2011

April 1, 2011

Public Service

March 11, 2011

May 6, 2011

Community Planning

N/A

May 13, 2011

Urgent Need

N/A

Beginning on March 11, 2011

Interim Financing

N/A

Open – by invitation only

Special Projects Matching Fund

N/A

Open – by invitation only

Development Fund * **

N/A

Open

• Includes Development Fund Housing Loan Program

** If the first Friday of the month falls on a holiday or state shutdown day, the DF and DFHL application will be due by 4:00pm on the next business day.

G. PROPOSED PROGRAM BUDGET (Exact amount determined by final Federal budget)

FY 2011 Proposed CDBG Budget $13,725,769

Administration 374,515

Technical Assistance Administration 137,257

Regional Council Technical Assistance 300,000

Special Projects Matching Fund 107,997

1. Housing Assistance Grants 2,300,000

2. Home Repair Network Program 1,105,000

3. Critical Access Ramp Program 300,000

4. Development Fund Housing Loans *

5. Public Infrastructure Grants 2,700,000

6. Public Facilities Grants 1,400,000

7. Public Service Grants 200,000

8. Downtown Revitalization Grants 600,000

9. Maine Downtown Center 201,000 9. 9. Urgent Need Grants 150,000

Economic Development Program

Business Assistance Grants **

Round 1 (March 25, 2011 application date) 800,000

Round 2 (July 15, 2011 application date) 750,000

Round 3 (September 23, 2011 application date) 750,000

Development Fund Loans ***

Community Enterprise Grants 1,200,000

Non-Profit Development Grants 250,000

Interim Financing Program ****

11. Community Planning 100,000

• The Development Fund Housing Loan Program will utilize only repayments from prior DF loans to fund future DFHL Program applications.

** Funds will be reserved for each of the three rounds of the Business Assistance Grant Category as stated above. A decision to exceed the amount allocated for rounds 1 and 2 by more than $100,000 is at the discretion of the OCD Director.

*** The Development Fund Program will utilize only repayments from prior DF loans to

fund future DF Program applications.

**** The Interim Financing Program is available on an as needed basis. Funds are loaned against unexpended CDBG program funds at any given point with a 100% guarantee of repayment for a period of not more than 6 months.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-122 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or subrecipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

(i) Community Enterprise Prohibition - Communities applying

for a Community Enterprise (CE) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

(ii) Downtown Revitalization Program Prohibition - Communities applying

for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Community Enterprise (CE) grant in the same program year.

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are

permitted to apply in the same 2011 CDBG funding category as long as the

eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2010 award may not apply again in that specific program until the 2012 program. PI grantees in Activity Group Number 1, as listed in Section 2. E. 3. (a) (1) on Page 25 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 776.

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2011 Community Development Block Grant program, communities that received CDBG grants in or prior to 2007 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2008 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2009 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2010 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director, OCD in the case of applicants having existing Economic Development program awards where job creation benefit has not been met. Waivers will not be considered for those projects which exceed the final contracted date for job creation by more than 12 months.

(i) Special Housing Assistance Grant Program (HA) Past Performance Requirement - Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Community Planning Grants from the date of contract signing. The Director of Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Letters of Intent and required documentation for all programs with the exception of Non-Profit Development Program, Urgent Need Grant Program, Special Project Matching Fund, Critical Access Ramp Program, SBDC Technical Assistance and Community Planning Grant Program will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Changes in Title 30-A, Subsection 4349-A as amended by PL 776: Significant changes were made to the “Growth Management Act” by the 119th Legislature that affect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A subsection 4349-A (3), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in subsection 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2011 Program Statement and 2011 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Special Project Matching Fund, Urgent Need Grants, Home Repair Network, Critical Access Ramp Program and Non-Profit Development Grant program will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Final scores will be determined by averaging the scores assigned by members of the 4-person OCD Review Team and adding any applicable community evaluation factors and bonus point totals. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, first consideration will be given to the community that is listed by the Maine State Planning Office as a Service Center; if both applicants meet this definition, the tie will be broken based on the highest Community Evaluation Factor. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

(a) Community Evaluation Factor: A pre-determined community evaluation factor with a maximum point total of 20 will be added to the average review team score for each application for the Public Infrastructure, Public Facilities and Economic Development grant programs to determine the final score. The Community Evaluation Factor will be based on pre-determined criteria established by an independent authority for each community in Maine and is contained in this 2011 Proposed Program Statement.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Non-Profit Development Grant Program (NPDG) and Development Fund Housing Loan Program (DFHL) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

Project Eligibility: Verification that proposed activities are eligible under

The Act.

Project Benefit: Verification that proposed activities meet one of the CDBG

Program National Objectives.

Environmental Review: Review of project for compliance with State and

Federal Environmental Regulations.

(g) Project Development Phase Requirement: All communities receiving a CDBG program grant award must complete the project development phase materials as outlined in the Maine CDBG Program materials and handbooks.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Community Planning Grant and Economic Development programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Director of the Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

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.

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.

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 Housing 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

Minimum 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.

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.

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.

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.

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 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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.

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 Certified 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 DFHL Application 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.

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 on

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.

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.

Special Program Requirements:

(a) Maximum PI Grant Amounts

Activity Group Numbers Maximum Amount

1. Water system installation/improvements, sewer system $500,000

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)

2. Infrastructure in support of new LMI affordable fully $500,000

financed housing

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.

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.

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 Center Designation Bonus – 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:

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.

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.

SECTION 3. ECONOMIC DEVELOPMENT

A. ECONOMIC DEVELOPMENT PROGRAM

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible EDP Activities and Maximum Grant and Loan Awards:

(a) Activity Breakdown: Applicants may apply in only one specific grant activity group. Applicants for Activity Group Numbers 2 below may also utilize the DF Loan Activity for the same project but are limited to a total of $400,000 in EDP assistance.

Activity Group Numbers Maximum Award

1. Grants to Municipalities: for acquisition, relocation, $300,000

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. All public

infrastructure must be owned by the municipality or

public or private utility and be in support of an identified

business.

2. Grants to Municipalities for Direct Business Support: $200,000

for non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial

buildings, working capital and capital equipment.

3. Development Fund Loan (DF): for acquisition of $300,000

existing facilities, land and site improvements necessary for

the construction of a new facility, rehabilitation or construction

of commercial or industrial buildings, structures, non-capital

equipment, capital equipment, working capital and real

property improvements.

Economic Development Program funds cannot be used to refinance existing debt.

2. Threshold Criteria:

(a) Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business

located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

(b) Job Creation Threshold Requirements: Each job created with EDP assistance must meet or exceed the Per Capita Income earnings listed in the published schedule contained on the EDP Letter of Intent for the Maine County where the EDP project will take place. “Earnings” means the base pay paid by the qualified business, plus any overtime, incentives or commissions paid. Projects not meeting the job creation threshold requirement will be removed from competition during the Letter of Intent process. EDP Letters of Intent in support of bona fide job retention are not required to meet the Per Capita Income earnings threshold.

(c) Program Dollars Per Job: The maximum CDBG participation per job created or retained with EDP funds for non HUB Zone business is $20,000. The maximum CDBG participation per job created or retained with EDP funds for a certified Pine Tree Development Zone business and/or a business located in a HUB Zone is $30,000. Pine Tree Development Zone certified means that the business has been certified as a Pine Tree Development business by the Department of Economic and Community Development at the time of EDP application.

(d) Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

(e) Minimum EDP Application Amount: $50,000

(f) Maximum Project Size for Utilizing EDP Funds: $5,000,000

Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

(g) Minimum Per Capita Income Requirement: All jobs created with EDP assistance must meet or exceed the Per Capita Income earnings established for the Maine County where the EDP project will take place.

(h) All EDP activities must be in support of an identified business; speculative activities are prohibited.

3. Program Requirements:

EDP Letter of Intent Due Dates for Activity Group Numbers 1-2 ONLY: 4:00PM on February 11, 2011, May 20, 2011 and August 12, 2011.

EDP Application Due Dates for Activity Group Numbers 1-2 ONLY: 4:00PM on March 25, 2011, July 15, 2011 and September 23, 2011.

EDP Application Due Dates for Activity Group Number 3 ONLY: Due 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.

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(e) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(f) EDP Matching Funds Requirements: Communities applying for

Economic Development Program funds must certify that they will provide a

100% cash match of the total EDP award. Matching funds must be directly

related to the activities undertaken with EDP funding.

(g) Exclusions: Communities receiving an EDP award may not receive any

other EDP award for the same project or business during the same program

year or for the same project or business from a prior program year that has

not met final closeout status.

(h) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776 enacted by the 119th legislature; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

4. Special Program Requirements for Grants to Municipalities then Loaned to an Identified Business (Activity Group 3 only):

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between the DECD, the community and the business.

(ii) 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 Development Fund loans is up to 5% for a term not to exceed 10 years. A special interest rate of 2% will be available for projects located in a downtown area as defined in PL 776 enacted by the 119th legislature.

5. Selection Process for Activity Groups 1 and 2: The selection process will consist of three phases, a letter of intent (does not apply to the Development Fund Loan activity), an application phase and a project development phase.

6. Review Team Analysis – 45 Points (to be completed by applicant)

Members of the 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. The following criteria will be used:

a. Problem Statement (15 points) - Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with available assistance from other sources.

Scope of Problem (5 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact on Community and Region (5 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well being including property tax analysis before and after the proposed activities.

Need for Funds (5 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

b. Proposed Solution (20 points) - Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need, how the project will proceed to completion within 12 months from the date of a contract award with the DECD and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

Project Description (10 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (5 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (5 points)

Describe how the project is assured of successful completion within 12

months.

Identify what work, such as pre-engineering, construction and improvements,

or fixture purchases that have been completed, or are in process, and

exactly how these relate to the proposed ED project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

c. Citizen Participation (10 Points) - Describe how business groups, local citizens, community groups and others were involved in the identification of the problems/needs and solutions discussed in the application. Local citizens, groups, boards, agencies, etc. are essential to any successful project. It is important that you show how these various groups were involved in bringing problems or needs to the attention of the community. The OCD views the involvement of local citizens in focusing on problems/ and solutions as a key element in a successful program application as well as in successful implementation of a project. Review is divided into two areas. Following each area are topics, information, or ideas that must be included in Citizen Participation.

Public Hearing Process (5 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (5 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

d. Numerical Analysis – 55 Points (The applicant is not responsible for providing any additional information for this analysis.) OCD staff will review each EDP application and calculate the score for this section based upon information provided in the EDP Letter-of-Intent and this application. The following factors will be used to determine the score in this section:

Strategy Priority (5 points) How the proposed EDP activity is aligned with the

State’s economic development strategy and supports at least one of the State’s

targeted technology sectors, specifically one of the following: Precision

Manufacturing Technology, Biotechnology, Aquaculture and Marine

Technology, Composite Materials Technology, Environmental Technology,

Advanced Technologies for Forestry and Agriculture or Information Technology.

Natural Resource Based (5 points) Will be based on information received in the

EDP Application.

Project Significance (25 points) Each application will be evaluated in relation to

all others. Scores will be based on a maximum of 6.25 points in each of the

following nine areas:

Number of jobs to be created/retained

EDP dollars per job created/retained

Quality of jobs created/retained based on wages and fringe benefits

% non EDP funding in project

Community Evaluation Factor (20 points) 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.

f. Priority Areas Bonus (5 points) Applications assisting a business located in an

identified HUB Zone or a labor market area with an unemployment rate exceeding the

state average by at least 50% will receive a 5 point bonus.

g. Final Application Score Each application will receive a Final Application Score

consisting of the average of the scores assigned by members of the OCD Review

Team added to the Numerical Analysis and applicable Priority Area 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.

7. Review Process for Activity Group 3 (DF Loan): Each application for DF assistance will be submitted through an OCD Development Fund Loan Application and must include all attachments required in the 2011 application directions.

Completed applications will be reviewed by the OCD Review Team who will make a recommendation to the Commissioner of Economic and Community Development. The following criteria will be considered during the application phase:

(i) Detailed description of project being financed.

(ii) Detail of the sources and uses (include itemized description of work and costs) of all financing.

(iii) Business' Federal tax return for the previous three years and/or complete accountant prepared financial statements (income statement and balance sheet and notes).

(iv) Interim financial statements (if the most recent financial information is older than 90 days).

(v) Personal Financial Statement and Federal Income Tax Returns of all owners and guarantors with 20% or more ownership.

(vi) One-year pro forma balance sheet, income statement and monthly cash flow statement with supporting assumptions.

(vii) Copies of signed commitment letter from other financing sources as applicable.

(viii) Completed Employment Plan.

(ix) Supplemental information such as collateral appraisals, marketing plans, resumes, site assessments, and aging of accounts receivable/payable may be requested by OCD. If these materials are readily available they should be included with the application package.

(x) Priority Areas DF Applications assisting a business located in an identified Empowerment Zone, HUB Zone or a labor market area with an unemployment rate exceeding the state average by at least 50% will receive priority for funding.

8. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Director of the Office of Community Development may grant waivers for just cause.

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.

Threshold Criteria and Program Requirements: CE Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities:

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 and buildings solely for residential use 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 B (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: $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: Project benefit will be met when 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: Project benefit will be met when 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. Special Program Requirements

Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons, 2) preventing or eliminating slum or blighting conditions, or 3) 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. Census information, a certified target area survey, an officially adopted declaration of slum/blight conditions conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD, or assurances of spot blight designation or micro-enterprise eligibility 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 CE 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 CE application package.

(b) 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 March 4, 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 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

*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

(ii) Development Strategy (40 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

(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 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 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.

D. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are: demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property; and eligible planning activities necessary to complete the Project Development Phase.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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 Development Organization: NPDG activities may only be carried out by bona-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bona-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing, or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of MRSA Title 30-A, Chapter 205, 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Letter of Intent and Verification of CDBG National Objective:

All communities wishing to submit a NPDG application must submit a

Letter of Intent and Verification of CDBG National Objective to OCD on

or before 4:00PM on Friday January 21, 2011 according to the

requirements set forth in the 2011 NPDG application package.

(b) Application: The application deadline for the NPDG Program is 4:00PM EST on March 25, 2011. The OCD review team will rate each application in relation to all others.

(c) Rating Criteria: The following rating criteria will apply to all NPDG applications:

(i) Documentation of bona-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 25 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 15 points

(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. 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.

1. Threshold Criteria:

(a) The proposed activities must meet the low and moderate-income objective as described below:

(i) At a minimum, 51% of the jobs created or retained as a result of the IFP project must be taken by persons of low and moderate income. Jobs created/retained must be in the community applying for the IFP, be new jobs to that community, and not be associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment of all CDBG funds to the State.

(ii) The maximum cost per job created or retained with IFP funds is $20,000. The maximum cost per job created or retained with IFP funds for a Certified Pine Tree Development Zone or HUB Zone business is $30,000.

(iii) At least 51% of the housing units created by the IFP project must be occupied by low and moderate-income households, or

(iv) The IFP expenditures reduce the development costs for new multi-family, non-elderly housing construction where not less than 20% of the units will be occupied by low and moderate-income households at affordable rents and the proportion of the total cost of developing the project to be borne by the IFP funds is no greater than the proportion of units in the project that will be occupied by low and moderate-income households.

(b) Complete the required IFP application materials.

(c) The application amount must be between $500,000 and $5,000,000. The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award. Eligible planning activities necessary to complete the Project Development Phase are also an allowable expense.

2. Special Program Requirements: IFP applicants must also comply with the following:

(a) Need for Financing: There must be a demonstrated need for an IFP loan in order for the project to be funded. The need may be based upon

either a gap in available funding for the project or on a determination that the costs of financing so adversely affect the project’s rate of return that the project would not be undertaken without additional assistance. IFP grantees must demonstrate the proposed rate and term have been set to ensure that assistance provided is the minimum needed and the proposed assistance is necessary and appropriate to carry out the economic development project.

(b) Commitment of Non-CDBG Funds: The business being assisted must demonstrate that all non-CDBG financing, both permanent and interim, necessary for the project’s completion has been secured.

(c) Community Benefit: The project must result in substantial benefit to the community: job creation/retention, tax revenue increases, new housing opportunities, or public facility improvements relative to the public dollar investment.

(d) Surety: The business being assisted by the IFP grantee must secure an unconditional, irrevocable letter of credit for the full amount of the Interim Financing Loan (principal plus any accrued interest to term) from a lending institution acceptable to DECD which will be assigned to the State. The State may accept a FAME guarantee in lieu of an irrevocable letter of credit, or other surety instrument deemed acceptable by DECD.

3. Selection Process: Applications may be submitted on an open basis. IFP grants will be made on a first come, first served basis. Projects that meet requirements may be awarded IFP grants until the amount of funds available in the State’s letter of credit has been committed. Following full commitment of the IFP, the State will maintain a waiting list of eligible projects to be funded. If projected funds will not be available for a minimum of six months, the State reserves the right not to accept any additional applications.

4. Approval Process: Through its Technical Assistance Providers, direct mailings, and other marketing methods, the State will advertise the availability of funds within the IFP. Communities interested in applying will: notify the State of their intent to apply, identify the proposed loan recipient and provide an application describing the project. Following the acceptance of a complete application by the State, the DECD or its designee will conduct a financial analysis of the project, DECD will determine if the IFP loan is needed, if all non-CDBG permanent and interim funds are committed, and if an irrevocable letter of credit is in place. The DECD staff will recommend the loan terms and interest rates to the Director, Office of Community Development. The State will review all other program requirements. If these requirements are met, the Commissioner of the DECD will make a grant award based on the project meeting all program requirements.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. The application deadline for the CPG Program is 4:00PM on May 13, 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past efforts to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended within 12 months or less – 12 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 4 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):

*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. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

C. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2011 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2010 CDBG program, or added to the available monies for the 2011 or 2012 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2010 CDBG program, or added to the available monies for the 2011 or 2012 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2010 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2010 CDBG program or added to the available monies for the 2011 or 2012 competition.

3. Basis for Redistribution: The decision 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 for the 2011 competitions that did not receive funding, and the possibility of holding additional competitions during the 2011 Program. In all cases, these additional competitions and the subsequent programs developed will be subject to the 2011 Program Statement.

4. Development Fund Program Repayments: DF and DFHL loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF and DFHL program awards.

5. Business Assistance Program Repayments: BA loan repayments will be used to fund additional future awards within the specific program categories under which the original award was made.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and DFHL programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards within the specific programs under which the original awards were made.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2011 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2011 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedure Act will guide the amendment process.

JOHN ELIAS BALDACCI THAXTER R. TRAFTON

GOVERNOR COMMISSIONER

To: Potential CDBG applicants

From: Michael D. Baran, Director, Office of Community Development

Date: July 12, 2010

Re: Community Evaluation Factor

A. Background

The Maine Community Development Block Grant program traditionally uses a “community evaluation factor” as a part of its competitive project evaluation system. The purpose of the factor is to give some weight to the fact that some communities have greater needs than others – and when there are two proposals with roughly similar solutions and effectiveness, the one from the community with the greatest need should get the award.

The data and formula elements of the community evaluation factor have been updated several times over the years, reflecting changes in program design, as well as changes in the availability of standardized data. The last major revision was in 2007. At that time, the Office created a 20 point factor using current data to measure substandard housing, affordability, tax burden, and low income population. This factor was used in scoring housing assistance, infrastructure and public facilities grants.

Now that there has been some experience with the new system, it is an appropriate time to consider some revisions. In a meeting with Planning Decisions (the consultant hired by our Office to assist with updating the community evaluation factor) on May 17, 2010, state CD staff who score applications identified two problems with the current scoring system related to the community evaluation factor:

The community evaluation factor is unnecessary in scoring housing assistance applications. Housing assistance applications are already scored on the basis of benefit to low and moderate income persons. The community evaluation factor is redundant for such applications.

In the economic development section, the community evaluation factor is not used, but there is a complex “project significance” factor which is similar in nature. The project significance factor is time-consuming for staff to calculate, and confusing for applicants to try and measure in advance.

The recommended changes below address these two issues. They do so in a way that follows the principles as the 2007 revision, namely:

59 State House Station•Augusta•Maine•04333-0059

Phone: (207) 624-9800•Facsimile: (207) 287-8070•TTY (207) 437-1220

www.meocd.org

Scoring factors should be closely related to the program function for which the scoring factors relate;

Balancing is needed so that there is not a bias towards small communities (with few in need, but a high percentage of the community) and large communities (which may have many in need even with a very low percentage).

Data which is updated on an ongoing basis, even if less precise, is preferable to data from the 2000 Census.

In order for communities to know in advance where they stand, the points must be predetermined prior to applications, and not depend on application data.

B. General scoring recommendations

With the two issues raised above in mind, and following the principles of the 2007 revisions, the following are the changes recommended by Planning Decisions for the 2011 scoring system.

Eliminate the community evaluation factor for housing assistance program applications.

Create a new 20 point community evaluation factor to be used in both infrastructure, facilities and economic development applications. Note that this means that the new factor is not concerned with questions of substandard housing or housing affordability, as the old factor was; and it is more concerned with questions of employment. This factor would be used in the following specific programs:

Public Facilities Grant Program

Public Infrastructure Grant Program

Economic Development Program

Reduce the “project significance” score for economic development from 45 to 25 points. This is because the community evaluation factor will address several of the factors in this score. As revised, the project significance score would only include project-specific calculations:

Number of jobs to be created/retained

EDP dollars per job created/retained

Quality of jobs created/retained based on wages and fringe benefits

% non EDP funding in project

C. Proposed components and weights of the community evaluation factor

Under the proposed system, the substandard housing and affordability measures, which comprised 8 of the 20 points in the old system, would drop out.

Tax burden and low incomes would remain measures. Two new measures would be added – unemployment and service centers.

The new community evaluation factor would be used for the following three programs:

Public Facilities Grant Program

Public Infrastructure Grant Program

Economic Development Program

Tax burden is relevant to public facilities and infrastructure in particular. The higher a community’s burden is, the less room the community has for local funding through bonds and property taxes – and the less room a community has to provide help to new businesses.

The lower incomes are in a community, the less people have to pay property taxes, and the greater their need for good-paying jobs.

The higher the unemployment rate is, the greater the need for economic development programs. This also affects the ability of residents to pay for infrastructure and facilities projects.

If a community is a service center, or “contiguous” to a service center, then it has a greater need for infrastructure, because citizens from the wider region use local roads and services. Also, service centers are logical places to encourage new job development, because, by definition, they serve broad labor market areas.

These four factors were selected because they all have some relevance to both infrastructure, facilities and economic development proposals. It allows the CDBG program to have only one community evaluation factor (instead of several serving different programs), which is more transparent for applicants and easier to administer for staff.

Since all four address both infrastructure, facilities and economic development, all are proposed to have the same weights.

Table 1: Proposed measures and weights

Measure

2007

points

Recommended

2010 points

Comment

Substandard housing

4

0

No longer being used for housing proposals

Affordability

4

0

Tax burden

10

5

Particularly important for infrastructure projects.

Low incomes

2

5

Ability to pay a factor for infrastructure; need to raise incomes a factor for jobs

Unemployment

0

5

Important for economic development projects

Service center

0

5

Infrastructure and jobs in service centers benefit the wider region.

Total

20

20

D. Proposed measures of the proposed community evaluation factor

The principles for creating measures remain the same as in 2007: up-to-date, publicly available, fair to small and large communities.

A new tax burden measure is proposed. The 2007 measure was the state-adjusted property tax rate of the community. The problem with this measure is that it doesn’t take into account home values or incomes. This year a new measure is proposed – the proportion of the community’s total income that is absorbed by property taxes. This too is an imperfect measure. It is distorted by second homes and commercial property. But, in an improvement over the prior measure, it does take into account income levels. In the absence of up-to-date information on housing values for each of Maine’s municipalities, this appears the most fair.

A new low income measure is proposed. It is simply the per capita income of the entire community. This is a broader measure, and reflects the broader community’s ability to pay for improvements, and need for better-paying jobs. Specific low and moderate income benefit tests are included in other portions of the scoring system.

The unemployment test is simple – a comparison of 2009 unemployment rates by municipality in 2009.

The service center test is also simple, though much sophisticated calculation lies behind it. The test for this section is whether the Maine State Planning Office has designated the community as a “service center,” or as an area “contiguous” to a service center. This calculation involves identifying communities with high per capita retail sales, jobs-to-workers ratios, federally assisted housing, and service sector jobs.

Each is scored on a 0 to 5 scale, according to the criteria in Table 2 below. This provides a rough urban – rural balance. The service center measure favors urban areas, the per capita income and unemployment data tend to favor rural areas. The data can be updated annually. Most is available from public sources (the exception is per capita income – the Census once calculated this annually for municipalities, but does not do so any more).

Table 2: Proposed scoring system

Type of factor

Best measure

How to Score

Sources

Timeliness

Low income population

2009 per capita income

5 = under $20,000

4 = $20,000-24,999

3 = $25,000-29,999

2 = $30,000-34,999

1 = $35,000-39,999

0 = $40,000 +

Claritas data service

2009

Tax burden

Property tax commitment as a proportion of $1 of income in the community

5 = $0.20 or more

4 = $0.10 to $0.19

3 = $0.08 to $0.09

2 = $0.05 to $0.07

1 = $0.03 to $0.04

0 = under $0.03

Maine Revenue Services

http://www.maine.gov/revenue/

propertytax/statistical_summary/

2008/2008index.htm

plus Claritas for 2009 per capita income, the US Census for 2008 population

2008

Unemployment

Unemployment rate

5 = 15.0% +

4 = 10.0% to 14.9%

3 = 8.0 % to 9.9%

2 = 7.0% to 7.9%

1 = 6.0% to 6.9%

0 = less than 6.0%

Maine Department of Labor

http://www.maine.gov/

labor/lmis/laus.html

2009 Annual average

Service center

State designation

5 = service center

3 = contiguous

0 = neither

Maine State Planning Office

http://www.maine.gov/spo/

landuse/techassist/

servicecenterlist.htm

November, 2002

On the following page are summary community evaluation scores, using the methodology above. Detailed calculations are available from the State CDBG office.

2011 Proposed Community Evaluation Factor Scores

Abbot

11

Blue Hill

15

Castle Hill

8

Acton

12

Boothbay

8

Caswell

11

Addison

9

Boothbay Harbor

13

Chapman

6

Albion

8

Bowdoin

8

Charleston

10

Alexander

11

Bowdoinham

5

Charlotte

12

Alfred

8

Bowerbank

11

Chelsea

8

Allagash

12

Bradford

9

Cherryfield

11

Alna

9

Bradley

7

Chester

11

Alton

9

Bremen

5

Chesterville

10

Amherst

12

Brewer

12

China

7

Amity

11

Bridgewater

10

Clifton

7

Andover

8

Brighton

8

Clinton

10

Anson

11

Bristol

8

Columbia

10

Appleton

10

Brooklin

6

Columbia Falls

10

Arrowsic

2

Brooks

7

Cooper

13

Arundel

5

Brooksville

4

Coplin

9

Ashland

15

Brownfield

8

Corinna

9

Athens

10

Brownville

10

Corinth

7

Atkinson

9

Brunswick

12

Cornish

9

Augusta

13

Buckfield

8

Cornville

7

Aurora

13

Bucksport

10

Cranberry Isles

7

Avon

9

Burlington

11

Crawford

7

Baileyville

12

Burnham

11

Crystal

11

Bancroft

15

Buxton

6

Cushing

8

Bar Harbor

14

Byron

12

Cutler

9

Baring

10

Calais

15

Cyr

11

Bath

14

Cambridge

10

Dallas

7

Beals

7

Camden

12

Damariscotta

15

Beaver Cove

13

Canaan

10

Danforth

13

Beddington

15

Canton

10

Dayton

5

Belfast

13

Caratunk

7

Deblois

15

Belgrade

7

Caribou

13

Dedham

6

Belmont

7

Carmel

7

Deer Isle

9

Benton

7

Carrabassett Valley

7

Denmark

7

Berwick

7

Carroll

9

Dennistown

1

Bethel

17

Carthage

11

Dennysville

10

Bingham

11

Cary

10

Detroit

11

Blaine

7

Castine

6

Dexter

16

Dixfield

9

Georgetown

3

Jackman

16

Dixmont

9

Gilead

12

Jackson

10

Dover-Foxcroft

15

Glenburn

6

Jay

12

Dresden

7

Gouldsboro

8

Jefferson

7

Drew

4

Grand Isle

10

Jonesboro

10

Durham

4

Grand Lake Stream

7

Jonesport

8

Dyer Brook

5

Great Pond

11

Kenduskeag

7

Eagle Lake

11

Greenbush

10

Kennebunk

6

East Machias

9

Greene

6

Kennebunkport

3

East Millinocket

13

Greenville

16

Kingfield

11

Eastbrook

13

Greenwood

9

Kittery

10

Easton

10

Guilford

16

Knox

8

Eastport

17

Hallowell

9

Lagrange

10

Eddington

6

Hamlin

5

Lake View

14

Edgecomb

5

Hammond

11

Lakeville

8

Edinburg

3

Hampden

5

Lamoine

9

Eliot

7

Hancock

10

Lebanon

10

Ellsworth

13

Hanover

8

Lee

11

Embden

12

Harmony

10

Leeds

8

Enfield

10

Harrington

12

Levant

6

Etna

9

Hartford

10

Liberty

10

Eustis

13

Hartland

11

Limerick

9

Exeter

8

Haynesville

14

Limestone

14

Fairfield

13

Hebron

7

Limington

8

Farmingdale

11

Hermon

5

Lincoln

15

Farmington

15

Hersey

9

Lincoln plantation

11

Fayette

10

Highland

14

Lincolnville

8

Fort Fairfield

8

Hiram

9

Linneus

9

Fort Kent

13

Hodgdon

9

Lisbon

9

Frankfort

9

Holden

5

Litchfield

8

Franklin

9

Hollis

6

Littleton

8

Freedom

10

Hope

7

Livermore

9

Frenchboro

7

Houlton

15

Livermore Falls

9

Frenchville

9

Howland

9

Lovell

10

Friendship

5

Hudson

7

Lowell

8

Fryeburg

8

Industry

10

Jackman

16

Gardiner

10

Island Falls

12

Jackson

10

Garfield Plantation

9

Isle au Haut

10

Jay

12

Garland

10

Islesboro

7

Jefferson

7

Jonesboro

10

Lagrange

10

Mattawamkeag

12

Jonesport

8

Lake View

14

Maxfield

12

Kenduskeag

7

Lakeville

8

Mechanic Falls

8

Kennebunk

6

Lamoine

9

Meddybemps

10

Kennebunkport

3

Lebanon

10

Medford

12

Kingfield

11

Lee

11

Medway

12

Kittery

10

Leeds

8

Mercer

8

Knox

8

Levant

6

Merrill

7

Lagrange

10

Liberty

10

Mexico

14

Lake View

14

Limerick

9

Milbridge

18

Lakeville

8

Limestone

14

Milford

11

Lamoine

9

Limington

8

Millinocket

18

Lebanon

10

Lincoln

15

Milo

11

Lee

11

Lincoln plantation

11

Minot

5

Leeds

8

Lincolnville

8

Monhegan

7

Levant

6

Linneus

9

Monmouth

8

Liberty

10

Lisbon

9

Monroe

8

Limerick

9

Litchfield

8

Monson

12

Limestone

14

Littleton

8

Monticello

10

Limington

8

Livermore

9

Montville

10

Lincoln

15

Livermore Falls

9

Moose River

9

Lincoln plantation

11

Lovell

10

Moro

5

Lincolnville

8

Lowell

8

Morrill

8

Linneus

9

Lubec

16

Moscow

12

Lisbon

9

Ludlow

9

Mount Chase

11

Litchfield

8

Lyman

8

Mount Desert

8

Littleton

8

Machias

14

Mount Vernon

7

Livermore

9

Machiasport

9

Nashville

12

Livermore Falls

9

Macwahoc

11

New Canada

8

Lovell

10

Madawaska

15

Meddybemps

10

Lowell

8

Madison

10

Medford

12

Jonesboro

10

Magalloway

11

Medway

12

Jonesport

8

Manchester

3

Mercer

8

Kenduskeag

7

Mapleton

8

Merrill

7

Kennebunk

6

Mariaville

10

Mexico

14

Kennebunkport

3

Mars Hill

10

Milbridge

18

Kingfield

11

Marshfield

5

Milford

11

Kittery

10

Masardis

13

Millinocket

18

Knox

8

Matinicus Isle

13

Milo

11

Minot

5

Orland

7

Ripley

9

Monhegan

7

Orono

12

Robbinston

11

Monmouth

8

Orrington

4

Rockland

15

Monroe

8

Osborn

14

Rockport

9

Monson

12

Otis

10

Rome

9

Monticello

10

Otisfield

9

Roque Bluffs

10

Montville

10

Owls Head

6

Roxbury

9

Moose River

9

Oxbow

13

Rumford

17

Moro

5

Oxford

15

Sabattus

8

Morrill

8

Palermo

8

Saco

11

Moscow

12

Palmyra

10

Sandy River

9

Mount Chase

11

Paris

14

Sanford

15

Mount Desert

8

Parkman

10

Sangerville

11

Mount Vernon

7

Parsonsfield

9

Searsmont

9

Nashville

12

Passadumkeag

10

Searsport

10

New Canada

8

Patten

10

Sebec

11

New Limerick

11

Pembroke

12

Seboeis

12

New Portland

11

Penobscot

6

Sedgwick

9

New Sharon

9

Perham

10

Shapleigh

9

New Sweden

9

Perry

12

Sherman

10

New Vineyard

8

Peru

10

Shirley

11

Newburgh

6

Phillips

12

Sidney

6

Newcastle

9

Phippsburg

6

Skowhegan

18

Newfield

10

Pittsfield

14

Smithfield

9

Newport

15

Pittston

6

Smyrna

12

Newry

10

Pleasant Ridge

13

Solon

10

Nobleboro

7

Plymouth

9

Somerville

8

Norridgewock

12

Poland

6

Sorrento

7

North Berwick

8

Portage Lake

13

South Berwick

6

North Haven

8

Porter

7

South Bristol

6

Northfield

7

Presque Isle

13

South Thomaston

8

Northport

7

Princeton

12

Southport

7

Norway

15

Prospect

7

Southwest Harbor

15

Oakfield

12

Randolph

10

Springfield

10

Oakland

11

Rangeley

17

St. Agatha

10

Ogunquit

7

Rangeley Plantation

10

St. Albans

11

Old Orchard Beach

11

Readfield

6

St. Francis

10

Old Town

10

Reed

12

St. George

5

Orient

12

Richmond

7

St. John

8

Stacyville

13

Wade

9

Winterville

13

Starks

9

Waite

10

Winthrop

7

Stetson

11

Waldo

9

Wiscasset

7

Steuben

12

Waldoboro

9

Woodland

8

Stockholm

9

Wales

6

Woodstock

10

Stockton Springs

9

Wallagrass

10

Woodville

10

Stoneham

11

Waltham

9

Woolwich

7

Stonington

11

Warren

7

York

3

Stow

8

Washburn

9

Strong

10

Washington

9

Sullivan

9

Waterboro

9

Sumner

10

Waterford

11

Surry

7

Waterville

15

Swans Island

9

Wayne

6

Swanville

11

Webster

14

Sweden

13

Weld

10

Talmadge

7

Wellington

10

Temple

8

Wells

8

The Forks

6

Wesley

14

Thomaston

14

West Bath

6

Thorndike

10

West Forks

8

Topsfield

12

West Gardiner

7

Topsham

9

West Paris

10

Tremont

9

Westfield

7

Trenton

11

Westmanland

9

Troy

10

Weston

14

Turner

5

Westport

6

Union

9

Whitefield

8

Unity

9

Whiting

8

Upton

10

Whitneyville

9

Van Buren

15

Willimantic

14

Vanceboro

12

Wilton

9

Vassalboro

7

Windsor

7

Veazie

6

Winn

11

Verona

5

Winslow

11

Vienna

7

Winter Harbor

7

Vinalhaven

7

Winterport

6

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

MIKE BARAN, DIRECTOR

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

The specific calculation is: total local property tax commitment divided by (total population times per capita income)

72

14-198 Chapter 29 – Final Program Statement for Administering the

2011 Maine Community Development Block Grant Program

2

2010 CDBG Proposed Statement

State of Maine

Department of Economic

and Community Development

SUMMARY……………………………………….……………………….…………………..……………3

SECTION 1. PROGRAM OVERVIEW

CDBG OBJECTIVES.…………………………………………………...………………...……………...3

METHOD OF DISTRIBUTION……………..…………..…………………..…………………………….4

STATE ADMINISTRATION……………………………………………………………...………….……4

EXLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES…………………..……………..4

NOTICE – GRANT ADMINISTRATION REQUIREMENT…………………………….......…..……...5

PROGRAM TIMEFRAME ….…………………………………………………………………………….5

PROGRAM BUDGET…………….………………………………………..……………………...………6

THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM………...………....7

SECTION 2. COMMUNITY DEVELOPMENT

HOUSING ASSISTANCE GRANT PROGRAM…………………………………………..……..…....12

HOME REPAIR NETWORK PROGRAM…………………………………………………...…………15

CRITICAL ACCESS RAMP PROGRAM………………………………………………...………….…17

DEVELOPMENT FUND HOUSING LOANS………………………………………………………….18

PUBLIC FACILITIES GRANTS…..…………………………………………………………………….21

PUBLIC INFRASTRUCTURE GRANTS………………………………………………………….…...25

PUBLIC SERVICE GRANTS……………………………………………………………………………29

DOWNTOWN REVITALIZATION GRANTS……………………….……...………….….……….......32

MAINE DOWNTOWN CENTER ASSISTANCE………………………………………………………36

URGENT NEED GRANT PROGRAM…………..…………………………………………………..…37

SECTION 3. ECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT PROGRAM……………………………………………………..….…39

COMMUNITY ENTERPRISE GRANT PROGRAM……………………………………………..……47

NON-PROFIT DEVELOPMENT GRANT PROGRAM…………………………………………….…51

INTERIM FINANCING PROGRAM…………………………………………………………………….53

SECTION 4 PLANNING AND SPECIAL PROJECTS

COMMUNITY PLANNING GRANT PROGRAM……………….………………………….…….……55

TECHNICAL ASSISTANCE PROGRAM……………………….……………………………….…….58

SPECIAL PROJECTS MATCHING FUND…………………….……………………….….……....….58

SECTION 5. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

REDISTRIBUTION OF GRANT FUNDS………………………………………………………………59

PROGRAM INCOME…….…………………………………………………………………….…….….60

SECTION 6. APPEALS

APPEALS…….…………………………………………………………………………….………..……61

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

AMENDMENTS TO THE PROGRAM STATEMENT……….…….………………….………………62

SECTION 8. COMMUNITY EVALUATION FACTORS……………………..63

2011

Chapter 40 Community Development Block Grant Program: 2012 Final Statement

Code Me. R. 19-498 Ch. 40 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-40 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 40}

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. Applications will not be funded out of rank order except in instances where a preceding application is deemed ineligible or is withdrawn by the applicant.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 40 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2012 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2012 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2012 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 4 state-wide public forums conducted jointly with MaineHousing and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedure Act, DECD held a public hearing regarding the development of this Program Statement on October 14, 2011.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2012 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the four broad categories listed below.

Community Development

Housing Assistance Grants

Home Repair Network

Critical Access Ramp Program

Development Fund Housing Loans

Public Infrastructure Grants

Public Facilities Grants

Public Service Grants

Downtown Revitalization Grants

Maine Downtown Center Assistance

Urgent Need Grants

Economic Development

Grants to Municipalities for Direct Business Support

Development Fund Loans

Community Enterprise Grants

Section 108 Loan Program (Contingent upon HUD approval)

Planning

Community Planning Grants

Special Projects

Special Projects Matching Fund

Technical Assistance

C. STATE ADMINISTRATION

General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance with Federal and State requirements.

D. EXCLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES

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 to receive State CDBG program funds.

E. NOTICE – GRANT ADMINISTRATION REQUIREMENT

Communities must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a qualified Rehabilitation Technician (as employees or consultants). The Office of Community Development must approve waivers of this requirement in writing. All planning activities including Community Planning Grants are exempt from this requirement.

F. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development by 4:00PM EST on the dates listed below. Faxed or e-mailed copies will not be accepted.

Program

Letter of Intent Due Date

(All dates are “on or before”)

Application Due Date

Public Facilities

January 20, 2012

March 10, 2012

Public Infrastructure

January 20, 2012

March 10, 2012

Economic Development

1st Friday of Every Month

By Invitation Only

Downtown Revitalization

February 10, 2012

March 30, 2012

Community Enterprise

February 10, 2012

March 30, 2012

Housing Assistance

March 16, 2012

May 4, 2012

Public Service

April 13, 2012

June 8, 2012

Community Planning

N/A

N/A

Non-Profit Development

N/A

N/A

Urgent Need

N/A

N/A

Special Projects Matching Fund

N/A

Open – by invitation only

Development Fund * **

N/A

1st Friday of Every Month

• Includes Development Fund Housing Loan Program

** If the first Friday of the month falls on a holiday the BA, DF and DFHL application will be due by 4:00pm on the next business day.

G. PROPOSED 2012 PROGRAM BUDGET (Exact amount determined by final Federal budget)

FY 2012 Proposed CDBG Budget $ 9,427,331

Administration 288,547

Technical Assistance Administration 94,272

Regional Council Technical Assistance 245,000

Special Projects Matching Fund 24,512

1. Housing Assistance Grants 1,200,000

2. Home Repair Network Program 1,500,000

3. Critical Access Ramp Program 200,000

4. Public Infrastructure Grants 2,000,000

5. Public Facilities Grants 900,000

6. Public Service Grants 150,000

7. Downtown Revitalization Grants 500,000

8. Maine Downtown Center 175,000

9. Urgent Need Grants 0

10. Community Planning Grants 0

11. Non-Profit Development Grants 0

12. Economic Development Program

Business Assistance Grants 1,400,000

Community Enterprise Grants 750,000

TOTAL 2012 CDBG PROGRAM FUNDS(final amount determined by HUD) 9,427,331

Additional available funds

Development Fund Loans ** 1,000,000*

2011 CDBG ED funds still available (as of 9/1/11) 1,600,000**

TOTAL Economic Development Funds Available 9/1/2011-12/31/2012 4,750,000

• The Development Fund Program and the Housing Development Fund Program will utilize only repayments from prior DF loans to fund future DF Program applications. This balance fluctuates due to repayments and loans made, it is not included in the proposed 2012 CDBG Budget of $9,427,331.

** This figure represents the approximate available balance as of September 1, 2011. This figure could be less as applications continue to be reviewed and funded.

10. Community Planning

Should additional funds become available the OCD may entertain applications for eligible planning projects.

H. THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM

The following state and federal regulations APPLY TO ALL PROGRAMS

1. Federal and State Certification for Local Governments:

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Act;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121 regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

2. General Requirements:

(a) Prohibition on Multiple Grants: Except for the Economic Development Program (EDP), eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

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

(ii) Downtown Revitalization Program Prohibition - Communities applying

for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Community Enterprise (CE) grant in the same program year.

(iii) Eligible applicants applying on behalf of a Maine Indian Tribe are

permitted to apply in the same 2012 CDBG funding category as long as the

eligible applicant will not directly benefit from the tribal CDBG project.

(b) Prohibition on Subsequent Year Award: Except for the Economic Development Program (EDP) and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2011 award may not apply again in that specific program until the 2013 program. PI grantees in Activity Group Number 1, as listed in Section 2. E. 3. (a) (1) on Page 25 of this Statement may apply for grants in consecutive years to complete the same project.

(c) Special Prohibition for Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) 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.

(d) Special Prohibition for Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 1999 ch. 776 (codified at 30-A M.R.S.A. § 4301(5-A)).

(e) Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

(f) Past Performance: In order to be eligible to apply for a 2012 Community Development Block Grant program, communities that received CDBG grants in or prior to 2008 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2009 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2010 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2011 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the OCD in the case of applicants having existing Economic Development program awards where job creation benefit has not been met. Waivers will not be considered for those projects which exceed the final contracted date for job creation by more than 12 months.

(i) Special Housing Assistance Grant Program (HA) Past Performance Requirement - Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

(g) Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Community Planning Grants or Economic Development Program Grants, from the date of contract signing. The Office of Community Development may grant waivers for cause.

(h) Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

(i) Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding and will be returned to the applicant.

(j) Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

(k) Title 30-A M.R.S.A. §4349-A, as amended: Significant changes were made to the “Growth Management Act” by the 119th Legislature that effect the award of CDBG grants after January 1, 2001. OCD will provide information separate from the Program Statement outlining these changes and their impact on the award of CDBG grants for “growth related capital investments” as defined in the statute.

(l) Preference for Communities: In accordance with MRSA Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

3. Eligible Applicants:

All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Public Service programs on behalf of a collaboration of communities. Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants.

4. Application Threshold Requirements:

Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2012 Program Statement and 2012 CDBG Application Packages will be removed from the scoring process during the threshold review.

5. Financial Commitments as a Threshold Requirement:

Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

6. Scoring of Applications:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Special Project Matching Fund, Urgent Need Grants, Home Repair Network, Maine Downtown Center and Critical Access Ramp Program will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Final scores will be determined by averaging the scores assigned by members of the Review Team and adding any applicable community evaluation factors and bonus point totals. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, first consideration will be given to the community that is listed as a Service Center; if both applicants meet this definition, the tie will be broken based on the highest Community Evaluation Factor. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

(a) Community Evaluation Factor: A pre-determined community evaluation factor with a maximum point total of 20 will be added to the average review team score for each application for the Public Infrastructure, Public Facilities and Economic Development grant programs to determine the final score. The Community Evaluation Factor will be based on pre-determined criteria established by an independent authority for each community in Maine and is contained in this 2012 Proposed Program Statement.

7. Minimum Score for CDBG Applications to be Considered for Funding:

Except for the Development Fund Housing Loan Program (DFHL) there is no minimum score for CDBG applications to be considered for funding.

8. Project Development Phase:

(a) Project Planning: Details of the project including pre-engineering, inspections, cost analysis, feasibility, and/or market studies.

(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.

Project Eligibility: Verification that proposed activities are eligible under

The Act.

Project Benefit: Verification that proposed activities meet one of the CDBG

Program National Objectives.

Environmental Review: Review of project for compliance with State and

Federal Environmental Regulations.

(g) Project Development Phase Requirement: All communities receiving a CDBG program grant award must complete the project development phase materials as outlined in the Maine CDBG Program materials and handbooks.

9. Project Development Phase Timeframe for Completion and OCD Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Community Planning Grant and Economic Development programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT

A. HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons.

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

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.

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, 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.

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 and/or relocation, 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 Office of Community Development. 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 Housing 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

Minimum 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 qualified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program (24 CFR Part 85) to hire a qualified CDBG Rehabilitation Technician subject to award of a HA contract.

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.

Letter of Intent: All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before March 16, 2012 according to the requirements set forth in the 2012 Housing Assistance Application Package.

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 May 4, 2012. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis – Members of the 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 Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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.

Special Program Requirements:

(a) Maximum HRN Grant Amount: $1,500,000, allocations to each of the established regions will be determined by the Office of Community Development.

(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 Office of Community Development.

(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 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum 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, energy conservation 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.

Special Program Requirements:

(a) Maximum CARP Grant Amount: $200,000.

(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, reconstruction, renovations, public infrastructure and funding mechanisms directly related to the creation of affordable housing opportunities for LMI persons.

(b) Match: All communities applying for DFHL funds must demonstrate they will provide a match of at least 10% 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 and in kind contributions 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 Certified 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 OCD. The interest rate for DFHL funds is up to 3% for a term not to exceed 40 years. The Office of Community Development, at it’s discretion, may waive the repayment terms once the LMI benefit has been documented.

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

(a) Application: The DFHL Application deadline is the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday 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 professionally produced cost estimates: 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: 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.

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 $300,000

(as a distinct, stand-alone project)

4. Historic preservation $300,000

(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 Title 30-A M.R.S.A. § 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 January 20, 2012.

(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) 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 on

or before 4:00PM on Friday January 20, 2012 according to the

requirements set forth in the 2012 PF application package.

(b) Application: The application deadline for the PF Program is 4:00PM on March 10, 2012. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis – Members of the 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 2012 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 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.

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, etc contributed to the project.

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.

Special Program Requirements:

(a) Maximum PI Grant Amounts

Activity Group Numbers Maximum Amount

1. Water system installation/improvements, sewer system $500,000

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)

2. Infrastructure in support of new LMI affordable fully $500,000

financed housing

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 Title 30-A M.R.S.A. § 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 20, 2012.

(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 January 20, 2012 according to the

requirements set forth in the 2012 PI application package.

(b) Application: The application deadline for the PI Program is 4:00PM on March 10, 2012. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis – Members of the 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 match funds 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 2012 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 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.

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.

Letter of Intent: All communities wishing to submit a PSG application must submit a Letter of Intent to OCD on or before April 13, 2012 according to the requirements set forth in the 2012 Public Service Application Package.

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 June 8, 2012. Each application will be rated in relation to all others in a two-stage process.

Stage 1: Review Team Analysis – Members of the 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 Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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: $500,000

(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 Title 30-A M.R.S.A § 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 February 10, 2012.

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 February 10, 2012 according to the

requirements set forth in the 2012 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 30, 2012. Each application will be rated in relation to all others in a three-stage process.

Stage 1: Review Team Analysis – Members of the 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 Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

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 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.

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.

2. Maximum Administrative Costs:

The City of Gardiner is allowed a maximum of $1,000 in administrative

funding.

3. Special Program Requirements:

(a) Maximum MDCA Grant Amount: $175,000.

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.

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.

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: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT

A. ECONOMIC DEVELOPMENT PROGRAM

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible EDP Activities and Maximum Grant and Loan Awards:

(a) Activity Breakdown: Applicants may apply in only one specific grant activity group. Applicants for Activity Group Number 2 below may also utilize the DF Loan Activity for the same project but are limited to a total of $400,000 in EDP assistance.

Activity Group Numbers Maximum Award

1. Grants to Municipalities: for acquisition, relocation, $400,000

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with

public infrastructure projects such as water and sewer

improvements, flood and drainage improvements, publicly-

owned commercial and industrial buildings, parking,

streets, curbs, gutters, sidewalks, etc. All public

infrastructure must be owned by the municipality or

public or private utility and be in support of an identified

business.

2. Grants to Municipalities for Direct Business Support: $200,000

for non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial

buildings, working capital and capital equipment.

3. Development Fund Loan (DF): for acquisition of $300,000

existing facilities, land and site improvements necessary for

the construction of a new facility, rehabilitation or construction

of commercial or industrial buildings, structures, non-capital

equipment, capital equipment, working capital and real

property improvements. The Office of Community Development, at its discretion, may waive the repayment terms once the LMI benefit has been documented.

Economic Development Program funds cannot be used to refinance existing debt.

2. Threshold Criteria:

(a) Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

(b) Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

(c) Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

(d) Minimum EDP Application Amount: $50,000

(e) Maximum Project Size for Utilizing EDP Funds: $5,000,000

Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

(f) All EDP activities must be in support of an identified business; speculative activities are prohibited.

3. Program Requirements:

EDP Letter of Intent Due Dates for Activity Group Numbers 1-2 ONLY: Due the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday the due date would then be the following regular business day by 4:00 p.m.

EDP Application Due Dates for Activity Group Numbers 1-2 ONLY: By invitation only as a result of accepted Letter of Intent.

EDP Application Due Dates for Activity Group Number 3 ONLY: Due the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday the due date would then be the following regular business day by 4:00 p.m.

Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, the repayment plan (DF only), and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(e) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(f) EDP Matching Funds Requirements: Communities applying for

Economic Development Program funds must certify that a 100% cash match

of the total EDP award will be provided. Matching funds must be directly

related to the activities undertaken with EDP funding.

(g) Exclusions: Communities receiving an EDP award may not receive any

other EDP award for the same project or business during the same program

year or for the same project or business from a prior program year that has

not met final closeout status.

(h) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

(i) The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

(iii) The retail business is located in either a downtown district meeting the definition of PL 776; or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

4. Special Program Requirements for Grants to Municipalities then Loaned to an Identified Business (Activity Group 3 only):

(i) Loan: The DF program is a grant to the unit of general local government. The recipient must use the funds as a loan to the identified business. The loan must be provided under the terms stated in a DF Program Letter of Commitment and the contract between the DECD, the community and the business.

(ii) 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 Development Fund loans is up to 5% for a term not to exceed 10 years. The Office of Community Development, at its discretion, may waive the repayment terms once the LMI benefit has been documented.

5. Selection Process for Activity Groups 1 and 2: The selection process will consist of three phases, a letter of intent (does not apply to the Development Fund Loan activity), an application phase and a project development phase.

6. Review Team Analysis – 100 Points

Members of the 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. The following criteria will be used:

a. Problem Statement (40 points) - Describe the problem facing the community/business as it relates to job creation/retention activities and document why the community/business is unable to finance the proposed project on its own, or with available assistance from other sources.

Scope of Problem (15 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact on Community and Region (10 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well being including property tax analysis before and after the proposed activities.

Need for Funds (15 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

b. Proposed Solution (40 points) - Describe the activities that will be undertaken with EDP funds to resolve the stated problem/need, how the project will proceed to completion within 12 months from the date of a contract award with the DECD and the effect the project will have on the ability of the business to create/retain quality jobs for LMI persons.

Project Description (15 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (15 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (10 points)

Describe how the project is assured of successful completion within 12

months.

Identify what work, such as pre-engineering, construction and improvements,

or fixture purchases that have been completed, or are in process, and

exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

c. Citizen Participation (20 Points) - Describe how business groups, local citizens, community groups and others were involved in the identification of the problems/needs and solutions discussed in the application. Local citizens, groups, boards, agencies, etc. are essential to any successful project. It is important that you show how these various groups were involved in bringing problems or needs to the attention of the community. The OCD views the involvement of local citizens in focusing on problems/ and solutions as a key element in a successful program application as well as in successful implementation of a project. Review is divided into two areas. Following each area are topics, information, or ideas that must be included in Citizen Participation.

Public Hearing Process (10 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (10 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

d. Final Application Score Each application will receive a Final Application Score

consisting of the average of the scores assigned by members of the Review Team and applicable Priority Area Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

7. Review Process for Activity Group 3 (DF Loan): Each application for DF assistance will be submitted through an OCD Development Fund Loan Application and must include all attachments required in the 2012 application directions.

Completed applications will be reviewed by the Review Team who will make a recommendation to the Commissioner of Economic and Community Development. The following criteria will be considered during the application phase:

(i) Detailed description of project being financed.

(ii) Detail of the sources and uses (include itemized description of work and costs) of all financing.

(iii) Business' Federal tax return for the previous three years and/or complete accountant prepared financial statements (income statement and balance sheet and notes).

(iv) Interim financial statements (if the most recent financial information is older than 90 days).

(v) Personal Financial Statement and Federal Income Tax Returns of all owners and guarantors with 20% or more ownership.

(vi) One-year pro forma balance sheet, income statement and monthly cash flow statement with supporting assumptions.

(vii) Copies of signed commitment letter from other financing sources as applicable.

(viii) Completed Employment Plan.

(ix) Supplemental information such as collateral appraisals, marketing plans, resumes, site assessments, and aging of accounts receivable/payable may be requested by OCD. If these materials are readily available they should be included with the application package.

(x) Priority Areas DF Applications assisting a business located in an identified Empowerment Zone, HUB Zone or a labor market area with an unemployment rate exceeding the state average by at least 50% will receive priority for funding.

8. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

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.

Threshold Criteria and Program Requirements: CE Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities:

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 and buildings solely for residential use 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 B (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: $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: Project benefit will be met when 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: Project benefit will be met when 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. Special Program Requirements

Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) benefiting 51% or greater low/moderate income persons, 2) preventing or eliminating slum or blighting conditions, or 3) 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. Census information, a certified target area survey, an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD, or assurances of spot blight designation or micro-enterprise eligibility 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 February 10, 2012.

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 CE application must submit a

Letter of Intent and Verification of CDBG National Objective to OCD on

or before 4:00PM on Friday February 10, 2012 according to the

requirements set forth in the 2012 CE application package.

(b) 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 March 30, 2012. Each application will be rated in relation to all others in a two-stage process.

Stage 1: Review Team Analysis – Members of the Review Team will assign a Point Total for each application reviewed. 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

*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

(ii) Development Strategy (40 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

(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 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 the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

SECTION 4. PLANNING & SPECIAL PROJECTS

A. COMMUNITY PLANNING GRANT PROGRAM

The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

1. Threshold Criteria and Certifications: CPG funds will be distributed through a yearly grant application selection process.

(a) Eligible Activities: CPG funds may be used for planning only activities that will include studies, analysis, data gathering, preparation of plans and maps, and identifications of actions that will implement plans. Engineering, architectural, and design costs related to specific projects are not eligible.

(b) Project Benefit: The program activities must meet one of the CDBG Program’s national objectives. The outcome of the planning activities, if implemented, must provide either a benefit to low- and moderate-income persons, or prevent or eliminate slum or blighting conditions.

(c) Use of CPG Funds for Comprehensive Planning: Communities designated as 51% or greater LMI by the 2000 U.S. Census and HUD may apply for CPG funds for completion of their local comprehensive plan which must conform to all State Planning Office standards and Maine State Law.

2. Special Program Requirements:

(a) Maximum CPG Grant Amount: $10,000

(b) Match: All communities applying for CPG 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.

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 four pages, not counting required attachments. Each application will be rated in relation to all others in a two-stage process.

Stage 1: Review Team Analysis – Members of the 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 (35 points):

*A description of the scope, magnitude and severity of the identified problems – 7 points

*How the problems were identified – 7 points

*Past efforts to deal with the identified problems – 7 points

*Impact of the problem on LMI persons or slum/blight conditions – 7 points

*Why CPG funds are critical for the project – 7 points

(ii) Development Strategy (35 points):

*A description of the planning tasks proposed to solve the identified problems; specific use of CPG funds – 8 points

*Project timeline, including a start date, tasks completed to date and how CPG funds will be expended within 12 months or less – 12 points

*How community partnerships including local government, citizens, agencies and local businesses will work together to develop effective solution strategies – 5 points

*How the planning efforts would lead to solution strategies that would benefit LMI persons or alleviate slum/blight conditions – 6 points

*Experience of the applicant community with planning projects – 4 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):

*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 Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

D. 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.

1. Special Threshold Criteria and Requirements: NPDG Program funds will be distributed through an annual grant submission and review process

(a) Eligible Activities: Eligible activities in the NPDG Program are: demolition, site clearance, structural stabilization, removal of environmental contaminants, installation of security devices, including sprinkler systems and smoke detectors, energy conservation measures, including replacement of heating and cooling equipment, removal of architectural barriers, and replacement of landscape materials, sidewalks and driveways where it is incidental to rehabilitation of the property; and eligible planning activities necessary to complete the Project Development Phase.

(b) Match: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

(c) Maximum NPDG Grant Amount: $250,000

(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 Development Organization: NPDG activities may only be carried out by bona-fide non-profit development organizations that meet the Internal Revenue Service definition as a non-profit, and are organized under state or local law to carry out community and economic development needs of the applicant community. Examples of bona-fide non-profit development organizations include but are not limited to: Neighborhood-Based Non-Profit Organizations, Local Development Corporations, SBA Section 504 Certified Development Companies, Small Business Investment Companies organized under 15 USC Section 681 and Community Action Agencies.

(f) Ownership of Project Site: The non-profit development organization must own the site on which all NPDG activities will take place.

(g) Demonstration of National Objective: Applicants must demonstrate at the time of application that the project meets the National Objective of preventing, or eliminating slum or blighting conditions. An officially adopted declaration of slum/blight conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD must be submitted with the application. For spot blight activities documentation must be submitted substantiating the condition of the structure as “blighted.”

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

(a) Letter of Intent and Verification of CDBG National Objective:

All communities wishing to submit a NPDG application must submit a

Letter of Intent and Verification of CDBG National Objective to OCD.

(b) Application: The OCD review team will rate each application in relation to all others.

(c) Rating Criteria: The following rating criteria will apply to all NPDG applications:

(i) Documentation of bona-fide status for Non-Profit Development Organization carrying out NPDG activities: 10 points

(ii) Verification of property ownership of project site by Non-Profit Development Organization: 10 points

(iii) Documentation that project site is in a designated downtown area as defined in an adopted and consistent comprehensive and/or an approved downtown revitalization plan; and that proper slum/blight designation exists for the site: 15 points

(iv) Project Summary – A maximum 2-page summary of all project activities funded with NPDG and matching funds: 25 points

(v) Budget Summary & Matching Funds Review – a review of the Budget Summary Page, Matching Funds Table and required documentation and how they assure the project is fully funded and ready to proceed: 15 points

(vi) Summary of potential jobs, which may be created for LMI persons as a result of the NPDG project: 10 points

(vii) Assurances that NPDG activities will be completed within 12 months of CDBG contract award; including a summary of any financial, permitting, political, environmental or contracting concerns which could delay project: 15 points

(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.

C. TECHNICAL ASSISTANCE PROGRAM

The Technical Assistance Program provides funds to contract with regional organizations to provide TA for: application development, development of alternative funding sources, grant administration, and general program assistance to Maine’s communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

D. SPECIAL PROJECTS MATCHING FUND

The Special Project Matching Fund (SPMF) provides matching funds to projects that are not funded through the normal CDBG application process. SPMF funds will be used for alternative OCD grant activities and partnerships that are consistent with the furtherance of community or economic development activities and CDBG National Objectives in the State of Maine. Submission of applications is by invitation of the Office of Community Development.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOME

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

A. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

1. Local Government Grants from the State: Applicants receiving grants under the 2012 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Unexpended grant funds may be added to any open CDBG contract, used to make additional awards in any 2011 CDBG program, or added to the available monies for the 2012 or 2013 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 DECD because of disallowed costs may be added to any open CDBG contract, used to make additional awards in any 2011 CDBG program, or added to the available monies for the 2012 or 2013 competition.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2011 CDBG programs may be added to any open CDBG contract, used to make additional awards in any 2011 CDBG program or added to the available monies for the 2012 or 2013 competition.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, requests for additional funding from current CDBG grantees and applicants for the 2012 competitions that did not receive funding.

4. Development Fund Program Repayments: DF and DFHL loan repayments to DECD will be used to capitalize a revolving loan fund for the purpose of making additional DF and DFHL program awards.

B. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

Program Income shall also mean gross income received by DECD for repayment of loans under the DF and DFHL programs. Repayments from each program will be used to capitalize revolving loan funds to make additional future awards.

SECTION 6. APPEALS

An applicant wishing to appeal DECD’s decision regarding their 2012 application may do so by submitting an appeal letter to the Commissioner of The Department of Economic and Community Development within fifteen (15) days of the award announcement for that specific program.

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2012 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

2012 Community Evaluation Factor Scores

Abbot

11

Blue Hill

15

Castle Hill

8

Acton

12

Boothbay

8

Caswell

11

Addison

9

Boothbay Harbor

13

Chapman

6

Albion

8

Bowdoin

8

Charleston

10

Alexander

11

Bowdoinham

5

Charlotte

12

Alfred

8

Bowerbank

11

Chelsea

8

Allagash

12

Bradford

9

Cherryfield

11

Alna

9

Bradley

7

Chester

11

Alton

9

Bremen

5

Chesterville

10

Amherst

12

Brewer

12

China

7

Amity

11

Bridgewater

10

Clifton

7

Andover

8

Brighton

8

Clinton

10

Anson

11

Bristol

8

Columbia

10

Appleton

10

Brooklin

6

Columbia Falls

10

Arrowsic

2

Brooks

7

Cooper

13

Arundel

5

Brooksville

4

Coplin

9

Ashland

15

Brownfield

8

Corinna

9

Athens

10

Brownville

10

Corinth

7

Atkinson

9

Brunswick

12

Cornish

9

Augusta

13

Buckfield

8

Cornville

7

Aurora

13

Bucksport

10

Cranberry Isles

7

Avon

9

Burlington

11

Crawford

7

Baileyville

12

Burnham

11

Crystal

11

Bancroft

15

Buxton

6

Cushing

8

Bar Harbor

14

Byron

12

Cutler

9

Baring

10

Calais

15

Cyr

11

Bath

14

Cambridge

10

Dallas

7

Beals

7

Camden

12

Damariscotta

15

Beaver Cove

13

Canaan

10

Danforth

13

Beddington

15

Canton

10

Dayton

5

Belfast

13

Caratunk

7

Deblois

15

Belgrade

7

Caribou

13

Dedham

6

Belmont

7

Carmel

7

Deer Isle

9

Benton

7

Carrabassett Valley

7

Denmark

7

Berwick

7

Carroll

9

Dennistown

1

Bethel

17

Carthage

11

Dennysville

10

Bingham

11

Cary

10

Detroit

11

Blaine

7

Castine

6

Dexter

16

Dixfield

9

Georgetown

3

Jackman

16

Dixmont

9

Gilead

12

Jackson

10

Dover-Foxcroft

15

Glenburn

6

Jay

12

Dresden

7

Gouldsboro

8

Jefferson

7

Drew

4

Grand Isle

10

Jonesboro

10

Durham

4

Grand Lake Stream

7

Jonesport

8

Dyer Brook

5

Great Pond

11

Kenduskeag

7

Eagle Lake

11

Greenbush

10

Kennebunk

6

East Machias

9

Greene

6

Kennebunkport

3

East Millinocket

13

Greenville

16

Kingfield

11

Eastbrook

13

Greenwood

9

Kittery

10

Easton

10

Guilford

16

Knox

8

Eastport

17

Hallowell

9

Lagrange

10

Eddington

6

Hamlin

5

Lake View

14

Edgecomb

5

Hammond

11

Lakeville

8

Edinburg

3

Hampden

5

Lamoine

9

Eliot

7

Hancock

10

Lebanon

10

Ellsworth

13

Hanover

8

Lee

11

Embden

12

Harmony

10

Leeds

8

Enfield

10

Harrington

12

Levant

6

Etna

9

Hartford

10

Liberty

10

Eustis

13

Hartland

11

Limerick

9

Exeter

8

Haynesville

14

Limestone

14

Fairfield

13

Hebron

7

Limington

8

Farmingdale

11

Hermon

5

Lincoln

15

Farmington

15

Hersey

9

Lincoln plantation

11

Fayette

10

Highland

14

Lincolnville

8

Fort Fairfield

8

Hiram

9

Linneus

9

Fort Kent

13

Hodgdon

9

Lisbon

9

Frankfort

9

Holden

5

Litchfield

8

Franklin

9

Hollis

6

Littleton

8

Freedom

10

Hope

7

Livermore

9

Frenchboro

7

Houlton

15

Livermore Falls

9

Frenchville

9

Howland

9

Lovell

10

Friendship

5

Hudson

7

Lowell

8

Fryeburg

8

Industry

10

Jackman

16

Gardiner

10

Island Falls

12

Jackson

10

Garfield Plantation

9

Isle au Haut

10

Jay

12

Garland

10

Islesboro

7

Jefferson

7

Jonesboro

10

Lagrange

10

Mattawamkeag

12

Jonesport

8

Lake View

14

Maxfield

12

Kenduskeag

7

Lakeville

8

Mechanic Falls

8

Kennebunk

6

Lamoine

9

Meddybemps

10

Kennebunkport

3

Lebanon

10

Medford

12

Kingfield

11

Lee

11

Medway

12

Kittery

10

Leeds

8

Mercer

8

Knox

8

Levant

6

Merrill

7

Lagrange

10

Liberty

10

Mexico

14

Lake View

14

Limerick

9

Milbridge

18

Lakeville

8

Limestone

14

Milford

11

Lamoine

9

Limington

8

Millinocket

18

Lebanon

10

Lincoln

15

Milo

11

Lee

11

Lincoln plantation

11

Minot

5

Leeds

8

Lincolnville

8

Monhegan

7

Levant

6

Linneus

9

Monmouth

8

Liberty

10

Lisbon

9

Monroe

8

Limerick

9

Litchfield

8

Monson

12

Limestone

14

Littleton

8

Monticello

10

Limington

8

Livermore

9

Montville

10

Lincoln

15

Livermore Falls

9

Moose River

9

Lincoln plantation

11

Lovell

10

Moro

5

Lincolnville

8

Lowell

8

Morrill

8

Linneus

9

Lubec

16

Moscow

12

Lisbon

9

Ludlow

9

Mount Chase

11

Litchfield

8

Lyman

8

Mount Desert

8

Littleton

8

Machias

14

Mount Vernon

7

Livermore

9

Machiasport

9

Nashville

12

Livermore Falls

9

Macwahoc

11

New Canada

8

Lovell

10

Madawaska

15

Meddybemps

10

Lowell

8

Madison

10

Medford

12

Jonesboro

10

Magalloway

11

Medway

12

Jonesport

8

Manchester

3

Mercer

8

Kenduskeag

7

Mapleton

8

Merrill

7

Kennebunk

6

Mariaville

10

Mexico

14

Kennebunkport

3

Mars Hill

10

Milbridge

18

Kingfield

11

Marshfield

5

Milford

11

Kittery

10

Masardis

13

Millinocket

18

Knox

8

Matinicus Isle

13

Milo

11

Minot

5

Orland

7

Ripley

9

Monhegan

7

Orono

12

Robbinston

11

Monmouth

8

Orrington

4

Rockland

15

Monroe

8

Osborn

14

Rockport

9

Monson

12

Otis

10

Rome

9

Monticello

10

Otisfield

9

Roque Bluffs

10

Montville

10

Owls Head

6

Roxbury

9

Moose River

9

Oxbow

13

Rumford

17

Moro

5

Oxford

15

Sabattus

8

Morrill

8

Palermo

8

Saco

11

Moscow

12

Palmyra

10

Sandy River

9

Mount Chase

11

Paris

14

Sanford

15

Mount Desert

8

Parkman

10

Sangerville

11

Mount Vernon

7

Parsonsfield

9

Searsmont

9

Nashville

12

Passadumkeag

10

Searsport

10

New Canada

8

Patten

10

Sebec

11

New Limerick

11

Pembroke

12

Seboeis

12

New Portland

11

Penobscot

6

Sedgwick

9

New Sharon

9

Perham

10

Shapleigh

9

New Sweden

9

Perry

12

Sherman

10

New Vineyard

8

Peru

10

Shirley

11

Newburgh

6

Phillips

12

Sidney

6

Newcastle

9

Phippsburg

6

Skowhegan

18

Newfield

10

Pittsfield

14

Smithfield

9

Newport

15

Pittston

6

Smyrna

12

Newry

10

Pleasant Ridge

13

Solon

10

Nobleboro

7

Plymouth

9

Somerville

8

Norridgewock

12

Poland

6

Sorrento

7

North Berwick

8

Portage Lake

13

South Berwick

6

North Haven

8

Porter

7

South Bristol

6

Northfield

7

Presque Isle

13

South Thomaston

8

Northport

7

Princeton

12

Southport

7

Norway

15

Prospect

7

Southwest Harbor

15

Oakfield

12

Randolph

10

Springfield

10

Oakland

11

Rangeley

17

St. Agatha

10

Ogunquit

7

Rangeley Plantation

10

St. Albans

11

Old Orchard Beach

11

Readfield

6

St. Francis

10

Old Town

10

Reed

12

St. George

5

Orient

12

Richmond

7

St. John

8

Stacyville

13

Wade

9

Winterville

13

Starks

9

Waite

10

Winthrop

7

Stetson

11

Waldo

9

Wiscasset

7

Steuben

12

Waldoboro

9

Woodland

8

Stockholm

9

Wales

6

Woodstock

10

Stockton Springs

9

Wallagrass

10

Woodville

10

Stoneham

11

Waltham

9

Woolwich

7

Stonington

11

Warren

7

York

3

Stow

8

Washburn

9

Strong

10

Washington

9

Sullivan

9

Waterboro

9

Sumner

10

Waterford

11

Surry

7

Waterville

15

Swans Island

9

Wayne

6

Swanville

11

Webster

14

Sweden

13

Weld

10

Talmadge

7

Wellington

10

Temple

8

Wells

8

The Forks

6

Wesley

14

Thomaston

14

West Bath

6

Thorndike

10

West Forks

8

Topsfield

12

West Gardiner

7

Topsham

9

West Paris

10

Tremont

9

Westfield

7

Trenton

11

Westmanland

9

Troy

10

Weston

14

Turner

5

Westport

6

Union

9

Whitefield

8

Unity

9

Whiting

8

Upton

10

Whitneyville

9

Van Buren

15

Willimantic

14

Vanceboro

12

Wilton

9

Vassalboro

7

Windsor

7

Veazie

6

Winn

11

Verona

5

Winslow

11

Vienna

7

Winter Harbor

7

Vinalhaven

7

Winterport

6

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

60

2

2010 CDBG Proposed Statement

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW

CDBG OBJECTIVES 3

METHOD OF DISTRIBUTION 4

STATE ADMINISTRATION 4

EXLUSION OF ENTITLEMENT COMMUNITIES AND COUNTIES 4

NOTICE – GRANT ADMINISTRATION REQUIREMENT 5

PROGRAM TIMEFRAME 5

PROGRAM BUDGET 6

THRESHOLD CRITERIA AND REGULATIONS FOR THE CDBG PROGRAM 7

SECTION 2. COMMUNITY DEVELOPMENT

HOUSING ASSISTANCE GRANT PROGRAM 12

HOME REPAIR NETWORK PROGRAM 15

CRITICAL ACCESS RAMP PROGRAM 17

DEVELOPMENT FUND HOUSING LOANS 18

PUBLIC FACILITIES GRANTS 21

PUBLIC INFRASTRUCTURE GRANTS 24

PUBLIC SERVICE GRANTS 27

DOWNTOWN REVITALIZATION GRANTS 30

MAINE DOWNTOWN CENTER ASSISTANCE 34

URGENT NEED GRANT PROGRAM 35

SECTION 3. ECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT PROGRAM 37

COMMUNITY ENTERPRISE GRANT PROGRAM 44

SECTION 4. PLANNING AND SPECIAL PROJECTS

COMMUNITY PLANNING GRANT PROGRAM 48

NON-PROFIT DEVELOPMENT GRANT PROGRAM 50

TECHNICAL ASSISTANCE PROGRAM 53

SPECIAL PROJECTS MATCHING FUND 53

SECTION 5. ADMINISTRATIVE REDISTRIBUTION OF GRANT FUNDS

REDISTRIBUTION OF GRANT FUNDS 54

PROGRAM INCOME 54

SECTION 6. APPEALS

APPEALS 55

SECTION 7. AMENDMENTS TO THE PROGRAM STATEMENT

AMENDMENTS TO THE PROGRAM STATEMENT 55

SECTION 8. COMMUNITY EVALUATION FACTORS

2012 COMMUNITY EVALUATION FACTOR SCORES 56

Chapter 41 Community Development Block Grant Program: 2013 Final Statement

Code Me. R. 19-498 Ch. 41 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-41 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 41}

SUMMARY 3

SECTION 1. PROGRAM OVERVIEW 3

A. CDBG OBJECTIVES 3

B. METHOD OF DISTRIBUTION: 4

C. STATE ADMINISTRATION: 4

D. PROGRAM TIMEFRAME 5

E. 2013 PROGRAM BUDGET 5

F. CERTIFICATIONS 6

G. GENERAL REQUIREMENTS: 6

H. EXCLUSIONS: 8

I. AWARD PROCESS: 9

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS 10

A. HOUSING ASSISTANCE GRANT PROGRAM 10

B. HOME REPAIR NETWORK PROGRAM 13

C. PUBLIC FACILITIES GRANT PROGRAM 14

D. PUBLIC INFRASTRUCTURE GRANT PROGRAM 17

E. DOWNTOWN REVITALIZATION GRANT PROGRAM 20

F. MAINE DOWNTOWN CENTER ASSISTANCE 23

G. WORKFORCE DEVELOPMENT GRANT PROGRAM 24

H. URGENT NEED GRANT PROGRAM 26

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS 28

A. ECONOMIC DEVELOPMENT 28

B. MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM 33

SECTION 4. TECHNICAL ASSISTANCE 36

SECTION 5. REDISTRIBUTION OF GRANT FUNDS 36

SECTION 6. PROGRAM INCOME 37

SECTION 7. APPEALS 37

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT 37

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 41 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2013 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2013Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2013 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 4 state-wide public forums conducted jointly with MaineHousing and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedure Act, DECD held a public hearing regarding the development of this Program Statement on October 10, 2012.

SECTION 1.PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and/or elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION:

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2013 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the three categories listed below.

1. Community Development

a. Housing Assistance Grants

b. Home Repair Network

c. Public Infrastructure Grants

d. Public Facilities Grants

e. Downtown Revitalization Grants

f. Maine Downtown Center Assistance

g. Workforce Development Grants

h. Urgent Need Grants

2. Economic Development

a. Grants to Municipalities for Direct Business Support

b. Micro-Enterprise Grants

3. Technical Assistance

C. STATE ADMINISTRATION:

1. General Administration Allocation: Pursuant to Section 106(d)(3 (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d)(5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance in accordance with Federal and State requirements.

3. Exclusion of Entitlement Communities and Counties: 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 to receive State CDBG program funds.

4. Grant Administration Requirement:

Grantees must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a qualified Rehabilitation Technician (as employees or consultants). The Office of Community Development must approve waivers of this requirement in writing. All planning activities are exempt from this requirement.

D.PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development on or before4:00PM EST on the dates listed below. Faxed copies will not be accepted.

Program

Letter of Intent Due Date

Application Due Date

Public Facilities

January 18, 2013

TBD*

Public Infrastructure

January 18, 2013

March 8, 2013

Economic Development

1st Friday of each month**

By invitation only

Downtown Revitalization

February 1, 2013

March 29, 2013

Micro-Enterprise Assistance

February 1, 2013

March 29, 2013

Housing Assistance

March 15, 2013

May 3, 2013

Workforce Development

1st Friday of each month**

By invitation only

Urgent Need

N/A

As needed basis

*Subject to availability of funds.

** If the first Friday of the month falls on a holiday the Economic Development and Workforce Development Letter(s) of Intent will be due by 4:00pm on the next business day.

E. 2013 PROGRAM BUDGET

FY 2013 CDBG Budget $10,581,799

Administration 311,635

Technical Assistance Administration 105,817

Regional Council Technical Assistance 114,347

Community Development

Housing Assistance Grants 1,000,000

Home Repair Network Program 1,700,000

Public Infrastructure Grants 2,700,000

Public Facilities Grants* 0

Downtown Revitalization Grants 400,000

Maine Downtown Center Assistance 100,000

Workforce Development Grants 750,000

Urgent Need Grants* 0

Economic Development

Business Assistance Grants 2,700,000

Micro-Enterprise Assistance Grants 700,000

TOTAL 2013 CDBG PROGRAM FUNDS

(final amount determined by HUD) 10,581,799

*Funding for these programs may be available based upon redistribution, reallocation and additional annual allocation from HUD.

F. CERTIFICATIONS

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act, 24 CFR part 42;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121, codified at 31 U.S.C. Section 1352, regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

G. GENERAL REQUIREMENTS:

1. Eligible Applicants: All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Workforce Development programs on behalf of a collaboration of communities. Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants. Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2013 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

2. Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

3. Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

4. “Growth Related” Preference: In accordance with MRSA Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

5. Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

6. Application Threshold: Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2013 Program Statement and 2013 CDBG Application Packages will be removed from the scoring process during the threshold review.

7. Financial Commitments: Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

8. Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

9. Past Performance: In order to be eligible to apply for a 2013 Community Development Block Grant program, communities that received CDBG grants in or prior to 2009 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2010 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2011 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2012 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the OCD.

10. Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Economic Development Program Grants, from the date of contract signing. The Office of Community Development may grant waivers for just cause.

H. EXCLUSIONS:

1. Multiple Grants: Except for the Economic Development grants, eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

2. Subsequent Year Award: Except for the Economic Development Program and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2012 award may not apply again in that specific program until the 2014 program. This exclusion may be waived by the Director of OCD with cause.

3. Micro-Enterprise Assistance: Communities applying for a Micro-Enterprise Assistance (MEA) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

4. Downtown Revitalization Program - Communities applying for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Micro-Enterprise Assistance (MEA) grant in the same program year.

5. Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 1999 Ch. 776 (codified at 30-A M.R.S.A. §4301(5-A)).

6. Housing Assistance Grant Program (HA) Past Performance Requirement: Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

7. Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) HA awards within the five (5) year period prior to the CDBG program year for which applications are being accepted.

I. AWARD PROCESS:

1. Scoring:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Urgent Need Grants and the Home Repair Network will be scored on a 100-point maximum scoring basis with allowance for bonus points where applicable. Final scores will be determined by averaging the scores assigned by members of the Review Team and adding any applicable bonus point. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, consideration will be given to the community that is listed as a Service Center. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

2. Project Development Phase:

a. Project Planning: Details of the project including pre-engineering, bid requirements, budget, and/or grant administration.

b. Acceptance of Funds: Public Hearing and Legislative Body Approval for the acceptance of funds.

c. Local Certifications: Local adoption of State and Federal regulations..

d. Project Benefit: Verification that proposed activities meet or will meet one of the CDBG Program National Objectives.

e. Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

3. Project Development Timeframe and Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Economic Development programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS

HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons. Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

1. Eligibility Requirements 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. Only applicants with populations that exceed 3,000 are eligible to apply. Multi-jurisdictional applications with more than 3 communities will not be accepted.

2. Eligible 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, 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.

3. Exclusions: See Section 1H (6) (7).

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

5. Maximum HA Grant Amount: $500,000

6. 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 and/or relocation, 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 Office of Community Development. Public infrastructure is not an eligible HA expense.

7. 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.

8. Section 8 Housing Quality Standards: All units assisted or created with HA funds must, if possible, meet HUD Section 8Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc.

9. 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 qualified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program (24 CFR Part 85) to hire a qualified CDBG Rehabilitation Technician subject to award of a HA contract.

10. Selection Process: The selection process for all HA applications will consist of two stages:

(a) Stage 1:

Letter of Intent: All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before March 15, 2013 according to the requirements set forth in the 2013 Housing Assistance Application Package.

(b) Stage 2:

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 May 3, 2013. Members of the 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.

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

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

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

11. Final Application Score– Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

HOME REPAIR NETWORK PROGRAM

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 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.

2. Eligible Activities: 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 the Critical Access Ramp Program (via Alpha One).

3. Housing units ineligible for Home Repair Network assistance: 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.

4. Maximum HRN Grant Amount: $1,700,000. Allocations to each of the established regions will be determined by the Office of Community Development.

5. 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 Office of Community Development.

6. 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 without approval from the Director of OCD. The City of Rockland is allowed a maximum of $5,000 in administrative funding.

7. Section 8 Housing Quality Standards: All units assisted or created with HRN funds must, at a minimum, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc. In addition, all units must comply with other applicable standards included in the HRN contract.

PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides gap funding for local public facility activities, which represent a threat to the health and safety of the general public.

1. 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 and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (1) (2).

3. 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.

4. Maximum PF Grant Amount:$300,000

5. Demonstration of Need: Applicants must have demonstrated that the proposed activity will alleviate any threat to the health and safety of the general public. This demonstration must have been made part of the Letter of Intent and Verification submitted to the Office of Community Development on or before January 18, 2013.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of a) benefiting 51% or greater low/moderate income persons or b) 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 Title 30-A M.R.S.A. §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, January 18, 2013.

7. 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 OCD.

8. Selection Process: The selection process will consist of two stages.

(a) Stage 1:

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 on or before 4:00PM on Friday January 18, 2013 according to the requirements set forth in the 2013 PF application package.

(b) Stage 2:

Application: The application deadline for the PF program will be announced by the OCD, pending the availability of funds. Members of the 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

Impact (40 points):

A description of the why the project is necessary – 8 points

Conditions warranting new construction or renovations, including health and safety concerns– 10 points

How these conditions affect LMI persons in the community or region – 10 points

Size and make up of user base of facility – 6 points

Why PF funds are necessary for project – 6 points

Development Strategy (40 points):

A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location – 10 points

Specific use of PF funds – 10 points

Positive effect on LMI persons – 10 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 – 10 points

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

9. Final Application Score– Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development phase as funds allow.

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. 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.

2. Exclusions: See Section 1H (1) (2).

3. 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 etc. contributed to the project.

4. Program Activities: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

Activity Group Numbers:

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.) Maximum Amount: $1,000,000

Infrastructure in support of new LMI affordable fully financed housing.

Maximum Amount: $1,000,000

3. Streets and roads, parking, curbs, gutters. Maximum Amount: $ 100,000

5. 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.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons. Census information, a certified target area survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A. §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 18, 2013.

7. Selection Process: The selection process for all PI applications will consist of two stages:

(a) Stage 1:

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 January 18, 2013 according to the requirements set forth in the 2013 PI application package.

(b) Stage 2:

Application: The application deadline for the PI Program is 4:00PM on March 8, 2013. Each application will be rated in relation to all others in a two-stage process. Members of the 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.

Impact (40 points):

A description of why the project is necessary, previous efforts to address needs, and how the project was prioritized locally – 8 points

How the infrastructure problems were verified, including studies, testing and record keeping – 8 points

How the verified health, safety and welfare conditions affect users and others in the community and region – 8 points

Size and demographic makeup of user base and target area of projected infrastructure project – 8 points

Why PI funds are necessary to fill a funding gap and how match funds will work with PI funds to implement the project – 8 points

Development Strategy (40 points):

A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems – 10 points

Positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures – 9 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 – 9 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

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 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

development of the application and project and how the required public hearing relates

8. Final Score– Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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 in 30-A M.R.S. Section 4301(5-A).

1. Eligible activities - include all those eligible under the Public Facilities, Public Infrastructure, Housing Assistance or Micro Enterprise Assistance programs as relevant to the revitalization of a downtown district; and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (4) (5).

3. 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.

4. 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.

5. Maximum DR Award: $200,000

6. 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.

7. 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 Title 30-A M.R.S.A §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, February 1, 2013.

8. Selection Process – The selection process will consist of two stages

(a) Stage 1:

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 February 1, 2013 according to the requirements set forth in the 2013 DR application package.

(b) Stage 2:

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 Friday, March 29, 2013. Each application will be rated in relation to all others. Members of the 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.

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

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

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

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

Maine Downtown Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Business Friendly Community at time of application.

9. Final Application Score– Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team added to any applicable Maine Downtown Center Bonus and Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

MAINE DOWNTOWN CENTER ASSISTANCE

(Limited to a lead community selected by OCD)

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 a lead community. The lead community will establish a legally binding contract with the Maine Downtown Center as approved by OCD.

2. Eligible Activities: 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.

3. Communities Ineligible for MDCA Assistance: 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.

4. Maximum Administrative Costs: The host community is allowed a maximum of $1,000 in administrative funding.

5. Maximum MDCA Grant Amount: $100,000.

WORKFORCE DEVELOPMENT GRANT PROGRAM

The Workforce Development Grant (WDG) Program addresses community and business resource needs by providing funding for operating expenses, equipment, and program materials for workforce training programs which will benefit low/moderate income (LMI) persons.

1. Eligible Activities: Eligible activities include operating and program material expenses for the purpose of providing workforce training and skills development to address the shortage of an available trained workforce. Other eligible public service activities associated with the project are allowed. Planning activities necessary to complete the Project Development Phase are eligible activities. Structural changes such as construction, renovation, or rehabilitation are not eligible for WDG funding. Program development and marketing materials are not eligible expenses under this grant.

2. Project Benefit: Eligible WDG projects must provide benefits to one of the groups of persons listed below:

(a) 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

(b) Participants in a program where 51% or greater of the persons receiving benefit from WDG activities are determined to be LMI.

3. All communities applying for WDG funds must certify that: The activity represents a new service to the community; or a quantifiable increase in the level of an existing service;

4. Maximum WDG Amount: $100,000

5. Selection Process: The selection process will consist of two stages

(a) Stage 1:

Letter of Intent: All communities wishing to submit a WDG application must submit a Letter of Intent due the first Friday of every month. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the 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.

Impact (40 points):

Conditions requiring a new or expanded service – 15 points

Issues faced by service providers including capacity, finances and staffing – 15 points

Why WDG funds are critical for the project – 10 points

Development Strategy (40 points):

A description of the new or expanded service, specific use of WDG funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted beneficiaries – 10 points

How WD funds will be utilized to assist LMI persons or a HUD approved Limited Clientele group – 10 points

Project timeline, including a start date, tasks completed to date, how WDG funds will be expended in a timely manner, and method of tracking success – 10 points

Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries – 10 points

Citizen Participation (20 points):

How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

Effective use of any media (newspapers, radio, TV, etc) to further public awareness and participation – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 5 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 – 5 points

6. Final Application Score– Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An application must have a minimum score of 70 in order to be funded.

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. Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended (see 24 CFR Section 570.483(d)), the applicant must address a community development need which meets all four criteria listed below:

(a) poses a serious and immediate threat to the health or welfare of the community;

(b) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(c) 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

(d) cannot be addressed with other sources of funding.

2. 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. This requirement may be waived by the Director of OCD with just cause.

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

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

(a) Stage 1:

Application: An UN application must include the following:

documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

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;

information regarding when the urgent need condition occurred or developed into a threat to health and safety;

evidence confirming the applicant is unable to finance implementation on its own; and,

documentation that other financial resources are not available to implement the proposal.

a copy of a state or federal declaration of disaster.

(b) Stage 2:

Project Development: Prior to consideration of a grant award, all UN proposals must meet the four eligibility criteria listed above and the Program requirements. Project Development Phase applications must comply with the following:

Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS

A. ECONOMIC DEVELOPMENT

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible Activities by Group Number:

Group Numbers Maximum Award

a) Grants to Municipalities: for acquisition, relocation, $1,000,000

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with public

infrastructure projects such as water and sewer improvements,

flood and drainage improvements, publicly-owned commercial

and industrial buildings, parking, streets, curbs, gutters, sidewalks, etc.

All public infrastructure must be owned by the municipality or public

or private utility and be in support of an identified business.

b) Grants to Municipalities for Direct Business Support: $1,000,000

for capital and non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial buildings,

job training, working capital and capital equipment and be in

support of an identified business. Acquisition is not an allowable

activity under this group.

2. Exclusions:

Applicants may apply in only one specific activity group

EDP funds cannot be used to refinance existing debt.

All EDP activities must be in support of an identified business; speculative activities are excluded.

Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

3. Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

4. Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

5. Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

6. Minimum EDP Application Amount: $100,000, unless OCD approves a lesser amount prior to submission of Letter of Intent.

7. Maximum Project Size for Utilizing EDP Funds: $3,000,000Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

8. Program Requirements:

(a) EDP Letter of Intent Due Dates: Due the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday the due date would then be the following regular business day by 4:00 p.m.

(b) EDP Application Due Dates: By invitation only as a result of accepted Letter of Intent.

(c) Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that a 100% cash match of the total EDP award will be provided. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

The retail business is located in either a downtown district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

9. Selection Process: The selection process will consist of two stages. Members of the 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 any applicable bonus points. The following criteria will be used:

(a) Stage 1:

Letter of Intent; All communities wishing to submit an EDP application must submit a Letter of Intent due the first Friday of every month. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: Members of the 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.

Problem Statement(40 points) -

Scope (15 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact (10 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well being including property tax analysis before and after the proposed activities.

Need (15 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

Solution (40 points)-

Project Description(15 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a result of the project, and how these jobs relate to persons of low/moderate income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (10 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (15 points)

Describe how the project is assured of successful completion within 12months.

Identify what work, such as pre-engineering, construction and improvements, or fixture purchases that have been completed, or are in process, and exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

Citizen Participation (20 Points)-

Public Hearing Process (10 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (10 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

10. Business Friendly Community Designation Bonus–3 bonus points will be assigned to each applicant community designated as a Business Friendly Community at time of application.

11. Final Score Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team and Business Friendly Community Designation Bonus if applicable. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

12. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

B.MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM

The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

1. Eligible Activities: Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements; and eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements and buildings solely for residential use are not eligible.

2. Exclusions: See Section 1H (3)

3. Micro-Enterprise Assistance Loan Repayments –Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) as defined in Section 105(a)(15) of the Housing and Community Development Act of 1974, to manage repayments and subsequent relending.

4. Maximum MEA Grant Amount: $150,000

5. Maximum Amount of Micro-Enterprise Assistance to Businesses: $25,000

6. Project Benefit:

(a) Micro-Enterprise Grant/Loan: Existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Existing employees’ incomes are not considered in meeting project benefit.

(b) Business Facade Grants: Project benefit will be met when 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.

7. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) preventing or eliminating slum or blighting conditions, or 2) assisting existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI. Census information, a certified target area survey, an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A. §5202 and HUD, or assurances of spot blight designation or micro-enterprise eligibility 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, February 1, 2013.

8. Selection Process: The selection process will consist of two stages:

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a MEA application must submit a Letter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday, February 1, 2013 according to the requirements set forth in the 2013 MEA application package.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. The application deadline for the MEA Program is 4:00PM on Friday, March 29, 2013.Members of the Review Team will assign a Point Total for each application reviewed. 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.

Impact (40 points):

State the problem and explain how it negatively impacts the local economy. – 30 points

Explain why MEA 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 – 10 points

Development Strategy (40 points):

Provide Identification and description of potential business grant/loan applicants and their needs – 15 points

Explain how the MEA project will stimulate business and assist in improving the area’s long-term viability. – 15 points

Provide a project timeline; list activities or actions completed to date. – 10 points

Citizen Participation (20 points):

Effective use of any media (newspapers, radio, TV, etc). – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) in application and project development. – 5 points

Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in development of the application and project. – 5 points

How other local resources (cash and in-kind) are directly related to the project. – 5 points

9. Business Friendly Community Designation Bonus– 3 bonus points will be assigned to each applicant community designated as a Business Friendly Community at time of application.

10. Final Score– Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team, added to any applicable Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

SECTION 4. TECHNICAL ASSISTANCE

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and outreach to communities.

Regional Providers will give technical assistance to units of general local government for planning, developing, and administering CDBG projects. For purposes of this paragraph the term "technical assistance" means the facilitating of skills and knowledge in planning, developing, and administering CDBG activities for entities in non-entitlement areas that may need but do not possess such skills and knowledge. This includes such things as:

1. Compiling the infrastructure needs of the non-entitlement jurisdictions so that UGLG’s will know specifically what their needs are in developing CDBG applications.

2. Assistance to public or nonprofit entities to increase the capacity of such entities to carry out eligible neighborhood revitalization or economic development activities,

3. Provides UGLG’s with explanations of the statutory requirements.

4. Giving workshops on applying for and implementing CDBG programs

5. Assist in identifying and locating the most appropriate additional funding resources to address the need or project.

6. Assistance provided to UGLG’s in affirmatively furthering fair housing. This can include assistance in preparing an analysis of impediments to fair housing.

7. Technical assistance does not include application writing, Phase 2 preparation or direct grant administration without written permission from the OCD.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

1. Local Government Grants from the State: Applicants receiving grants under the 2013 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD.

Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

Unexpended funds remaining in the grantee’s CDBG account at grant closeout, funds remaining in a grantee’s award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2013 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for the 2013 competitions that did not receive funding.

SECTION 6. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity in excess of $35,000. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 7. APPEALS

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

An applicant wishing to appeal DECD’s decision regarding their 2013 application restricted to errors of fact or procedure, may do so by submitting an appeal letter to the Director of the Office of Community Development within fifteen (15) days of the award announcement for that specific program.

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2013 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedure Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

37

Chapter 42 Community Development Block Grant Program: 2014 Final Statement

Code Me. R. 19-498 Ch. 42 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-42 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 42}

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 42 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2014 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2014 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2014 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 4 state-wide public forums conducted jointly with MaineHousing and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held a public hearing regarding the development of this Program Statement on October 1, 2013.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and/or elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION:

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2014 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the three categories listed below.

1. Community Development

a. Housing Assistance Grants

b. Home Repair Network

c. Public Infrastructure Grants

d. Public Facilities Grants

e. Downtown Revitalization Grants

f. Maine Downtown Center Assistance

g. Workforce Development Grants

h. Urgent Need Grants

2. Economic Development

a. Grants to Municipalities for Direct Business Support

b. Micro-Enterprise Grants

3. Technical Assistance

C. STATE ADMINISTRATION:

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allotment from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize 1% of its allotment from HUD to provide technical assistance in accordance with Federal and State requirements.

3. Exclusion of Entitlement Communities and Counties: 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 to receive State CDBG program funds.

4. Grant Administration Requirement:

Grantees must employ a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a qualified Rehabilitation Technician (as employees or consultants). The Office of Community Development must approve waivers of this requirement in writing. All planning activities are exempt from this requirement.

D. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development on or before 4:00PM EST on the dates listed below. Faxed copies will not be accepted.

Program

Letter of Intent Due Date

Application Due Date

Public Facilities

January 17, 2014

TBD*

Public Infrastructure

January 17 2014

March 7, 2014

Economic Development

1^st Friday of each month**

By invitation only

Downtown Revitalization

January 31, 2014

March 28, 2014

Micro-Enterprise Assistance

First Friday of each month**

By invitation only

Housing Assistance

March 14, 2014

May 2, 2014

Workforce Development

1^st Friday of each month**

By invitation only

Urgent Need

N/A

As needed basis

*Subject to availability of funds.

**** If the first Friday of the month falls on a holiday the Economic Development Workforce Development and Micro-Enterprise Assistance Letter(s) of Intent will be due by 4:00pm on the next business day.**

E. 2014 PROGRAM BUDGET

FY 2014 CDBG Budget $ 10,581,799

Administration 311,635

Technical Assistance Administration 105,817

Regional Council Technical Assistance 114,347

Community Development

Housing Assistance Grants 1,000,000

Home Repair Network Program 1,700,000

Public Infrastructure Grants 2,700,000

Public Facilities Grants* 0

Downtown Revitalization Grants 400,000

Maine Downtown Center Assistance 100,000

Workforce Development Grants 750,000

Urgent Need Grants* 0

Economic Development

Business Assistance Grants 2,700,000

Micro-Enterprise Assistance Grants 700,000

TOTAL 2014 CDBG PROGRAM FUNDS(final amount determined by HUD) 10,581,799

*Funding for these programs may be available based upon redistribution, reallocation and additional annual allocation from HUD.

F. CERTIFICATIONS

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act, 24 CFR part 42;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121, codified at 31 U.S.C. Section 1352, regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

G. GENERAL REQUIREMENTS:

1. Eligible Applicants: All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Workforce Development programs on behalf of a collaboration of communities . Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants. Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2014 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

2. Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

3. Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

4. “Growth Related” Preference: In accordance with M.R.S.A Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

5. Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

6. Application Threshold: Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2014 Program Statement and 2014 CDBG Application Packages will be removed from the scoring process during the threshold review.

7. Financial Commitments: Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

8. Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

9. Past Performance: In order to be eligible to apply for a 2014 Community Development Block Grant program, communities that received CDBG grants in or prior to 2010 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2011 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2012 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2013 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the OCD.

10. Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Economic Development Program Grants, from the date of contract signing. The Office of Community Development may grant waivers for just cause.

H. EXCLUSIONS:

1. Multiple Grants: Except for the Economic Development grants, eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

2. Subsequent Year Award: Except for the Economic Development Program and designated Public Infrastructure Grant Program (PI) activities, units of general local government and Unorganized Territory that benefited from a 2013 award may not apply again in that specific program until the 2015 program. This exclusion may be waived by the Director of OCD with cause.

3. Micro-Enterprise Assistance: Communities applying for a Micro-Enterprise Assistance (MEA) grant may not apply for, receive, or benefit from a Downtown Revitalization (DR) grant in the same program year.

4. Downtown Revitalization Program - Communities applying for a Downtown Revitalization (DR) grant may not apply for, receive, or benefit from a Micro-Enterprise Assistance (MEA) grant in the same program year.

5. Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 1999 Ch. 776 (codified at 30-A M.R.S.A. § 4301(5-A)).

6. Housing Assistance Grant Program (HA) Past Performance Requirement: Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

7. Housing Assistance (HA) Grantees: Communities may not submit a HA application if they have received or benefited from two (2) HA awards within the five (5) year period prior to the CDBG program year for which applications are being accepted.

I. AWARD PROCESS:

1. Scoring:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Urgent Need Grants and the Home Repair Network will be scored on a 100-point maximum scoring basis with allowance for bonus points whereapplicable. Final scores will be determined by averaging the scores assigned by members of the Review Team and adding any applicable bonus point. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, consideration will be given to the community that is listed as a Service Center. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

2. Project Development Phase:

a. Project Planning: Details of the project including pre-engineering, bid requirements, budget, and/or grant administration.

b. Acceptance of Funds: Public Hearing and Legislative Body Approval for the acceptance of funds.

c. Local Certifications: Local adoption of State and Federal regulations..

d. Project Benefit: Verification that proposed activities meet or will meet one of the CDBG Program National Objectives.

e. Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

3. Project Development Timeframe and Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Economic Development programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS

HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons. Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

1. Eligibility Requirements 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. Multi-jurisdictional applications with more than 3 communities will not be accepted.

2. Eligible 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, correction of code violations, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, 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.

3. Exclusions: See Section 1H (6) (7).

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

5. Maximum HA Grant Amount: $500,000

6. 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 and/or relocation, 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 Office of Community Development. Public infrastructure is not an eligible HA expense.

7. 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.

8. Section 8 Housing Quality Standards: All units assisted or created with HA funds must, if possible, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc.

9. 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 qualified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program (24 CFR Part 85) to hire a qualified CDBG Rehabilitation Technician subject to award of a HA contract.

10. Selection Process: The selection process for all HA applications will consist of two stages:

(a)Stage 1:

Letter of Intent : All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before March 14, 2014 according to the requirements set forth in the 2014 Housing Assistance Application Package.

(b)Stage 2:

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 May 3, 2014. Members of the 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.

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

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

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

11. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

HOME REPAIR NETWORK PROGRAM

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 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.

2. Eligible Activities: 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/mitigation of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers and the Critical Access Ramp Program (via Alpha One).

3. Housing units ineligible for Home Repair Network assistance: 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.

4. Maximum HRN Grant Amount: $1,700,000. Allocations to each of the established regions will be determined by the Office of Community Development.

5. 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 Office of Community Development.

6. Maximum Administrative Costs: The HRN Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 20% of the grant amount. The City of Rockland is allowed a maximum of $5,000 in administrative funding.

7. Section 8 Housing Quality Standards: All units assisted or created with HRN funds will strive to meet HUD Section 8 Minimum Housing Quality Standards if possible. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc. In addition, all units must comply with other applicable standards included in the HRN contract.

PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides gap funding for local public facility activities, which alleviate a threat to the health and safety of the general public.

1. 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 and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (1) (2).

3. 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.

4. Maximum PF Grant Amount: $300,000

5. Demonstration of Need: Applicants must have demonstrated that the proposed activity will alleviate a threat to the health and safety of the general public. This demonstration must have been made part of the Letter of Intent and Verification submitted to the Office of Community Development on or before January 17, 2014 .

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of a) benefiting 51% or greater low/moderate income persons or b) 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 Title 30-A M.R.S.A. § 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, January 17, 2014.

7. 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 OCD.

8. Selection Process: The selection process will consist of two stages.

(a) Stage 1:

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 onor before 4:00PM on Friday January 17, 2014 according to the requirements set forth in the 2014 PF application package.

(b) Stage 2:

Application : The application deadline for the PF program will be announced by the OCD, pending the availability of funds. Members of the 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

Impact (40 points):

A description of the why the project is necessary – 8 points

Conditions warranting new construction or renovations, including health and safety concerns– 10 points

How these conditions affect LMI persons in the community or region – 10 points

Size and make up of user base of facility – 6 points

Why PF funds are necessary for project – 6 points

Development Strategy (40 points):

A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location – 10 points

Specific use of PF funds – 10 points

Positive effect on LMI persons – 10 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 – 10 points

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

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development phase as funds allow.

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. 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.

2. Exclusions: See Section 1H (1) (2).

3. 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 etc. contributed to the project.

4. Program Activities: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

Activity Group Numbers:

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. Maximum Amount: $1,000,000

Infrastructure in support of new LMI affordable fully financed housing.

Maximum Amount: $1,000,000

5. 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.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons via Census information, or a certified target area survey. 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 17, 2014 .

7. Selection Process: The selection process for all PI applications will consist of two stages:

(a) Stage 1:

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 onor before 4:00PM on Friday January 17, 2014 according to the requirements set forth in the 2014 PI application package.

(b) Stage 2:

Application : The application deadline for the PI Program is 4:00PM on March 7 2014. Each application will be rated in relation to all others in a two-stage process. Members of the 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.

Impact (40 points):

A description of why the project is necessary, previous efforts to address needs, and how the project was prioritized locally –6 points

What engineering firms and/or regulatory agencies have verified the infrastructure problems, and what studies and testing have been done that corroborate the need– 8 points

How the verified health, safety and welfare conditions affect users and others in the community and region –8 points

Size and demographic makeup of user base and target area of projected infrastructure project –10 points

Why PI funds are necessary to fill a funding gap, what other state and/or federal agency funding is involved, capacity of the utility or town to borrow, and how match funds will work with PI funds to implement the project –10 points

Development Strategy (40 points):

A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems – 10 points

Positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures –5 points

Extent of financial benefits to users; list current user rates, what rates will be if PI funding is approved, and list what user rates will be if the project is built without PI funding –15 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 –10 points

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 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

development of the application and project and how the required public hearing relates

8. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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 in 30-A M.R.S.A. Section 4301(5-A).

1. Eligible activities - include all those eligible under the Public Facilities, Public Infrastructure, Housing Assistance or Micro Enterprise Assistance programs as relevant to the revitalization of a downtown district; and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (4) (5).

3. 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, etc. contributed to the project.

4. 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.

5. Maximum DR Award: $400,000

6. 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.

7. 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 town-wide income survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A § 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 31, 2014.

8. Selection Process – The selection process will consist of two stages

(a) Stage 1:

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 31, 2014 according to the requirements set forth in the 2014 DR application package.

(b) Stage 2:

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 Friday, March 28, 2014. Each application will be rated in relation to all others. Members of the 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.

Impact (40 points):

Describe the scope and magnitude of the problems you seek to address, and how they are obstacles for revitalizing the downtown. – 6 points

Explain how these 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. –8 points

Explain why DR funds are necessary for the project, and describe what efforts have been made and where you have searched to secure other grant or loan funds, –8 points

Development of Strategy (40 points):

Clearly link the proposed DR activities to action steps outlined in your community’s Downtown Plan, and explain how the project will stimulate economic activity in the downtown. –12 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. –12 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. –8 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. – 8 points

Citizen Participation (20 points):

Effective use of media (newspapers, radio, TV, web 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

Maine Downtown Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Business Friendly Community at time of application.

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team added to any applicable Maine Downtown Center Bonus and Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

MAINE DOWNTOWN CENTER ASSISTANCE

(Limited to a lead community selected by OCD)

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 a lead community. The lead community will establish a legally binding contract with the Maine Downtown Center as approved by OCD.

2. Eligible Activities: 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.

3. Communities Ineligible for MDCA Assistance: 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.

4. Maximum Administrative Costs: The host community is allowed a maximum of $1,000 in administrativefunding.

5. Maximum MDCA Grant Amount: $100,000.

WORKFORCE DEVELOPMENT GRANT PROGRAM

The Workforce Development Grant (WDG) Program addresses community and business resource needs by providing funding for operating expenses, equipment, and program materials for workforce training programs which will benefit low/moderate income (LMI) persons.

1. Eligible Activities: Eligible activities include operating and program material expenses for the purpose of providing workforce training and skills development to address the shortage of an available trained workforce. Other eligible public service activities associated with the project are allowed. Planning activities necessary to complete the Project Development Phase are eligible activities. Structural changes such as construction, renovation, or rehabilitation are not eligible for WDG funding. Program development and marketing materials are not eligible expenses under this grant.

2. Project Benefit: Eligible WDG projects must provide benefits to one of the groups of persons listed below:

(a) Participants in a program where 51% or greater of the persons receiving benefit from WDG activities are determined to be LMI.

(b) 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

3. All communities applying for WDG funds must certify that: The activity represents a new service to the community; or a quantifiable increase in the level of an existing service;

4. Maximum WDG Amount: $100,000

5. Selection Process: The selection process will consist of two stages

(a) Stage 1:

Letter of Intent: All communities wishing to submit a WDG application must submit a Letter of Intent due the first Friday of every month. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the 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.

Impact (40 points):

Conditions requiring a new or expanded service – 15 points

Issues faced by service providers including capacity, finances and staffing – 15 points

Why WDG funds are critical for the project – 10 points

Development Strategy (40 points):

A description of the new or expanded service, specific use of WDG funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted beneficiaries – 10 points

How WD funds will be utilized to assist LMI persons or a HUD approved Limited Clientele group – 10 points

Project timeline, including a start date, tasks completed to date, how WDG funds will be expended in a timely manner, and method of tracking success – 10 points

Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries – 10 points

Citizen Participation (20 points):

How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

Effective use of any media (newspapers, radio, TV, etc.) to further public awareness and participation – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 5 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 – 5 points

6. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An application must have a minimum score of 70 in order to be funded.

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. Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended (see 24 CFR Section 570.483(d)), the applicant must address a community development need which meets all four criteria listed below:

(a) poses a serious and immediate threat to the health or welfare of the community;

(b) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(c) 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

(d) cannot be addressed with other sources of funding.

2. 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. This requirement may be waived by the Director of OCD with just cause.

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

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

Stage 1:

Application: An UN application must include the following:

documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

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;

information regarding when the urgent need condition occurred or developed into a threat to health and safety;

evidence confirming the applicant is unable to finance implementation on its own; and,

documentation that other financial resources are not available to implement the proposal.

a copy of a state or federal declaration of disaster.

(b) Stage 2:

Project Development: Prior to consideration of a grant award, all UN proposals must meet the four eligibility criteria listed above and the Program requirements. Project Development Phase applications must comply with the following:

Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS

A. ECONOMIC DEVELOPMENT

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible Activities by Group Number:.

Group Numbers Maximum Award

a) Grants to Municipalities: for acquisition, relocation, $1,000,000

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with public

infrastructure projects such as water and sewer improvements,

flood and drainage improvements, publicly-owned commercial

and industrial buildings, parking, streets, curbs, gutters, sidewalks, etc.

All public infrastructure must be owned by the municipality or public

or private utility and be in support of an identified business.

b) Grants to Municipalities for Direct Business Support: $1,000,000

for capital and non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial buildings,

job training, working capital and capital equipment and be in

support of an identified business. Acquisition is not an allowable

activity under this group.

2. Exclusions:

Applicants may apply in only one specific activity group

EDP funds cannot be used to refinance existing debt.

All EDP activities must be in support of an identified business; speculative activities are excluded.

Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

3. Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

4. Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

5. Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

6. Minimum EDP Application Amount: $100,000, unless OCD approves a lesser amount prior to submission of Letter of Intent.

7. Maximum Project Size for Utilizing EDP Funds: $3,000,000 Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

8. Program Requirements:

(a) EDP Letter of Intent Due Dates: Due the first Friday of every month by 4:00 p.m. If that day is a recognized State Holiday the due date would then be the following regular business day by 4:00 p.m.

(b) EDP Application Due Dates: By invitation only as a result of accepted Letter of Intent.

(c) Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that a 100% cash match of the total EDP award will be provided. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

The retail business is located in either a downtown district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

9. Selection Process: The selection process will consist of two stages. Members of the 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 any applicable bonus points. The following criteria will be used:

(a) Stage 1:

Letter of Intent; All communities wishing to submit an EDP application must submit a Letter of Intent due the first Friday of every month. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: Members of the 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.

Problem Statement (40 points) -

Scope (15 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact (10 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well-being including property tax analysis before and after the proposed activities.

Need (15 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

Solution (40 points) -

Project Description (15 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (10 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (15 points)

Describe how the project is assured of successful completion within 12 months.

Identify what work, such as pre-engineering, construction and improvements, or fixture purchases that have been completed, or are in process, and exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

Citizen Participation (20 Points) -

Public Hearing Process (10 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (10 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

10. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Business Friendly Community at time of application.

11. Final Score Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team and Business Friendly Community Designation Bonus if applicable. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

12. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

B. MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM

The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

1. Eligible Activities: Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements; and eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements and buildings solely for residential use are not eligible.

2. Exclusions: See Section 1H (3)

3. Micro-Enterprise Assistance Loan Repayments – Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) as defined in Section 105(a)(15) of the Housing and Community Development Act of 1974, to manage repayments and subsequent relending.

4. Maximum MEA Grant Amount: $150,000

5. Maximum Amount of Micro-Enterprise Assistance to an individual Business: $50,000

6. Project Benefit:

(a) Micro-Enterprise Grant/Loan: Existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Existing employees’ incomes are not considered in meeting project benefit.

(b) 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.

7. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) assisting existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI, or 2) preventing or eliminating slum or blighting conditions conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD,. These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD

8. Selection Process: The selection process will consist of two stages:

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a MEA application must submit a Letter of Intent and Verification of CDBG National Objective to OCD the first Friday of every month. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the Review Team will assign a Point Total for each application reviewed. 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.

Impact (40 points):

State the problem and explain how it negatively impacts the local economy. – 30 points

Explain why MEA 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 – 10 points

Development Strategy (40 points):

Provide Identification and description of potential business grant/loan applicants and their needs – 15 points

Explain how the MEA project will stimulate business and assist in improving the area’s long-term viability. – 15 points

Provide a project timeline; list activities or actions completed to date. – 10 points

Citizen Participation (20 points):

Effective use of any media (newspapers, radio, TV, etc.). – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) in application and project development. – 5 points

Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in development of the application and project. – 5 points

How other local resources (cash and in-kind) are directly related to the project. – 5 points

9. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Business Friendly Community at time of application.

10. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team, added to any applicable Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

SECTION 4. TECHNICAL ASSISTANCE

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and provide technical assistance and outreach to communities.

Regional Providers will give technical assistance to units of general local government for planning, developing, and administering CDBG projects. For purposes of this paragraph the term "technical assistance" means the facilitating of skills and knowledge in planning, developing, and administering CDBG activities for entities in non-entitlement areas that may need but do not possess such skills and knowledge.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

1. Local Government Grants from the State: Applicants receiving grants under the 2014 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD.

Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

Unexpended funds remaining in the grantee’s CDBG account at grant closeout, funds remaining in a grantee’s award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2014 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for competitions that did not receive funding. The OCD may redistribute available funds to any project deemed to be in the best interest of, and that offer CDBG definable benefits to the State of Maine.

SECTION 6. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity in excess of $35,000. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 7. APPEALS

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

An applicant wishing to appeal DECD’s decision regarding their 2014 application restricted to errors of fact or procedure, may do so by submitting an appeal letter to the Director of the Office of Community Development within fifteen (15) days of the award announcement for that specific program.

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2014 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3^RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

Chapter 43 Community Development Block Grant Program: 2015 Final Statement

Code Me. R. 19-498 Ch. 43 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-43 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 43}

I. SPECIAL PROJECTS PROGRAM 28

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 43 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2015 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2015 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2015 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 3state-wide public forums and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held a public hearing regarding the development of this Program Statement on October 28, 2014.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and/or elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION:

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2015 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the three categories listed below.

1. Community Development

a. Housing Assistance Grants

b. Home Repair Network

c. Public Infrastructure Grants

d. Public Facilities Grants

e. Downtown Revitalization Grants

f. Maine Downtown Center Assistance

g. Workforce Development Grants

h. Urgent Need Grants

i. Special Projects

2. Economic Development

a. Grants to Municipalities for Direct Business Support

b. Micro-Enterprise Grants

3. Technical Assistance

C. STATE ADMINISTRATION:

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allocation from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize up to 1% of its allotment from HUD to provide technical assistance in accordance with Federal and State requirements.

3. Exclusion of Entitlement Communities and Counties: 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 to receive State CDBG program funds.

4. Grant Administration Requirement: Grantees must employ or contract with a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a qualified Rehabilitation Technician (as employees or consultants). The Office of Community Development must approve waivers of this requirement in writing. All planning activities are exempt from this requirement.

D. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development on or before 4:00PM EST on the dates listed below. Faxed copies will not be accepted.

Program

Letter of Intent Due Date

Application Due Date By Invitation Only

Downtown Revitalization

January 30, 2015

April 17, 2015

Economic Development

1^st Friday of January, February and March**

April 24, 2015

1^st Friday of May, June and July**

July 31, 2015

1^st Friday of August, September & October**

November 20, 2015

Housing Assistance

March 13, 2015

May 1, 2015

Micro-Enterprise Assistance and

1^st Friday of January, and February **

March 28, 2015

1^st Friday of March and April**

May 29, 2015

1^st Friday of May and June**

July 31, 2015

1^st Friday of July and August**

September 25, 2015

Public Facilities

January 16, 2015

TBD*

Public Infrastructure

January 16, 2015

March 6, 2015

Special Projects *

N/A

TBD*

Urgent Need

N/A

TBD

Workforce Development

1^st Friday of January and February**

March 28, 2015

1^st Friday of March and April**

May 29, 2015

1^st Friday of May and June

July 31, 2015

1^st Friday of July and August**

September 25, 2015

*** Subject to availability of funds.**

**** If the first Friday of the month falls on a holiday the Economic Development , Workforce Development and Micro-Enterprise Assistance Letter(s) of Intent will be due by 4:00pm on the next business day.**

E. 2015 PROGRAM BUDGET

FY 2015 CDBG Budget $ 10,581,799

Administration 311,635

Technical Assistance Administration 105,817

Regional Council Planning Assistance 114,347

Community Development

Downtown Revitalization Grants 400,000

Home Repair Network Program 1,700,000

Housing Assistance Grants 1,000,000

Maine Downtown Center Assistance 100,000

Public Facilities Grants* 0

Public Infrastructure Grants 2,700,000

Special Projects * 0

Urgent Need Grants* 0

Workforce Development Grants 750,000

Economic Development

Business Assistance Grants 2,700,000

Micro-Enterprise Assistance Grants 700,000

TOTAL Estimated 2015 CDBG Funds (final amount determined by HUD) 10,581,799

Funding for individual categories may change based on actual HUD award.

*Funding for these programs may be available based upon redistribution, reallocation and/or additional allocation from HUD.

F. CERTIFICATIONS

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act, 24 CFR part 42;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121, codified at 31 U.S.C. Section 1352, regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

G. GENERAL REQUIREMENTS:

1. Eligible Applicants: All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Economic Development or Workforce Development programs on behalf of a collaboration of communities . Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants. Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2015 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

2. Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

3. Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

4. “Growth Related” Preference: In accordance with M.R.S.A Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

5. Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

6. Application Threshold: Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2015 Program Statement and 2015 CDBG Application Packages will be removed from the scoring process during the threshold review.

7. Financial Commitments: Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

8. Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

9. Past Performance: In order to be eligible to apply for a 2015 Community Development Block Grant program, communities that received CDBG grants in or prior to 2011 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2012 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2013 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2014 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director of OCD.

10. Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Economic Development Program and Workforce Development Grants, from the date of contract signing. The Office of Community Development may grant waivers for just cause.

H. EXCLUSIONS:

1. Multiple Grants: Except for the Economic Development grants-Business Assistance Grants and Micro-Enterprise Assistance Grants-, eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

2. Subsequent Year Award: Except for the Economic Development Program-Business Assistance Grants, Micro-Enterprise Assistance Grants-, and project specific Housing Grants units of general local government and Unorganized Territory that benefited from a 2014 award may not apply again in that specific program until the 2016 program. This exclusion may be waived by the Director of OCD with cause.

3. Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 1999 Ch. 776 (codified at 30-A M.R.S.A. § 4301(5-A)).

4. Housing Assistance Grant Program (HA) Past Performance Requirement: Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

5. Housing Assistance (HA) Grantees: Communities may not submit a HA application for single family rehabilitation if they have received or benefited from two (2) HA awards within the five (5) year period prior to the CDBG program year for which applications are being accepted.

I. AWARD PROCESS:

1. Scoring:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Urgent Need Grants and the Home Repair Network will be scored on a 100-point maximum scoring basis with allowance for bonus points whereapplicable. Final scores will be determined by averaging the scores assigned by members of the Review Team and adding any applicable bonus point. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, consideration will be given to the community that is listed as a Service Center. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

2. Project Development Phase:

a. Project Planning: Details of the project including pre-engineering, bid requirements, budget, and/or grant administration.

b. Acceptance of Funds: Public Hearing and Legislative Body Approval for the acceptance of funds.

c. Local Certifications: Local adoption of State and Federal regulations.

d. Project Benefit: Verification that proposed activities meet or will meet one of the CDBG Program National Objectives.

e. Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

3. Project Development Timeframe and Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Economic Development programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS

HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons. Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

1. Eligibility Requirements for Housing Assistance Applications: Communities may not submit a HA single family rehabilitation 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. Multi-jurisdictional applications with more than 3 communities will not be accepted.

2. Eligible 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, correction of code violations, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, 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.

3. Exclusions: See Section 1H (6) (7).

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

5. Maximum HA Grant Amount: $500,000

6. 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.

7. Section 8 Housing Quality Standards: All units assisted or created with HA funds must, if possible, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc.

8. 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 qualified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program (24 CFR Part 85) to hire a qualified CDBG Rehabilitation Technician subject to award of a HA contract.

9. Selection Process: The selection process for all HA applications will consist of two stages:

(a) Stage 1:

Letter of Intent : All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before March 14, 2015 according to the requirements set forth in the 2015 Housing Assistance Application Package.

(b) Stage 2:

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 May 3, 2015. Members of the 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.

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

Development Strategy (40 points):

A description of the plan proposed to implement the housing project – 20 points

Summary of the activities and use of HA funds –20 points

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

10. [Not in use]

11. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

HOME REPAIR NETWORK PROGRAM

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. as stated 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 the Director of the OCD.

2. Eligible Activities: 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/mitigation of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers and the Critical Access Ramp Program (via Alpha One).

3. Housing units ineligible for Home Repair Network assistance: 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.

4. Maximum HRN Grant Amount: $1,700,000. Allocations to each of the established regions will be determined by the Office of Community Development.

5. [Not in use]

6. Maximum Administrative Costs: The HRN Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 20% of the grant amount. The City of Rockland is allowed a maximum of $5,000 in administrative funding.

7. Section 8 Housing Quality Standards: All units assisted or created with HRN funds will strive to meet HUD Section 8 Minimum Housing Quality Standards if possible. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc. In addition, all units must comply with other applicable standards included in the HRN contract.

PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides gap funding for local public facility activities, which alleviate a threat to the health and safety of the general public.

1. 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 and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (1) (2).

3. 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.

4. Maximum PF Grant Amount: $300,000

5. Demonstration of Need: Applicants must have demonstrated that the proposed activity will alleviate a threat to the health and safety of the general public. This demonstration must have been made part of the Letter of Intent and Verification submitted to the Office of Community Development on or before January 16, 2015 .

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of a) benefiting 51% or greater low/moderate income persons or b) 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 Title 30-A M.R.S.A. § 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, January 16, 2015.

7. 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 OCD.

8. Selection Process: The selection process will consist of two stages.

(a) Stage 1:

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 onor before 4:00PM on Friday January 16, 2015 according to the requirements set forth in the 2015 PF application package.

(b) Stage 2:

Application : The application deadline for the PF program will be announced by the OCD, pending the availability of funds. Members of the 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

Impact (40 points):

A description of the why the project is necessary – 8 points

Conditions warranting new construction or renovations, including health and safety concerns– 10 points

How these conditions affect LMI persons in the community or region – 10 points

Size and make up of user base of facility – 6 points

Why PF funds are necessary for project – 6 points

Development Strategy (40 points):

A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location – 10 points

Specific use of PF funds – 10 points

Positive effect on LMI persons – 10 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 – 10 points

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

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development phase as funds allow.

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. 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.

2. Exclusions: See Section 1H (1) (2).

3. 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 etc. contributed to the project.

4. Program Activities: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

Activity Group Numbers:

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. Maximum Amount: $1,000,000

Infrastructure in support of new LMI affordable fully financed housing.

Maximum Amount: $1,000,000

5. 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.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons via Census information, or a certified target area survey. 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 16, 2015 .

7. Selection Process: The selection process for all PI applications will consist of two stages:

(a) Stage 1:

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 onor before 4:00PM on Friday January 16, 2015 according to the requirements set forth in the 2015 PI application package.

(b) Stage 2:

Application : The application deadline for the PI Program is 4:00PM on March 6 2015. Each application will be rated in relation to all others in a two-stage process. Members of the 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.

Impact (40 points):

A description of why the project is necessary, previous efforts to address needs, and how the project was prioritized locally – 6 points

What engineering firms and/or regulatory agencies have verified the infrastructure problems, and what studies and testing have been done that corroborate the need – 6 points

How the verified health, safety and welfare conditions affect users and others in the community and region –8 points

Size and demographic makeup of user base and target area of projected infrastructure project – 10 points

Why PI funds are necessary to fill a funding gap, what other state and/or federal agency funding is involved, capacity of the utility or town to borrow, and how match funds will work with PI funds to implement the project – 10 points

Development Strategy (40 points):

A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems – 10 points

Positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures –5 points

Extent of financial benefits to users; list current user rates, what rates will be if PI funding is approved, and list what user rates will be if the project is built without PI funding –15 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 –10 points

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 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

development of the application and project and how the required public hearing relates

8. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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 in 30-A M.R.S.A. Section 4301(5-A).

1. Eligible activities - include all those eligible under the Public Facilities, Public Infrastructure, Housing Assistance or Micro Enterprise Assistance programs as relevant to the revitalization of a downtown district; and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (4) (5).

3. 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, etc. contributed to the project.

4. 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.

5. Maximum DR Award: $400,000

6. 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.

7. 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 town-wide income survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A § 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 30, 2015.

8. Selection Process – The selection process will consist of two stages

(a) Stage 1:

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 30, 2015 according to the requirements set forth in the 2015 DR application package.

(b) Stage 2:

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 Friday, April 17, 2015. Each application will be rated in relation to all others. Members of the 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.

Impact (40 points):

Describe the scope and magnitude of the problems you seek to address, and how they are obstacles for revitalizing the downtown. – 8 points

Explain how these problems negatively impact the viability of existing downtown businesses, or new development and expansion. –12 points

Demonstrate how the problems affect LMI persons, or how they contribute to slum/blight conditions. –8 points

Explain why DR funds are necessary for the project, and describe what efforts have been made and where you have searched to secure other grant or loan funds, –12 points

Development of Strategy (40 points):

Clearly link the proposed DR activities to action steps outlined in your community’s Downtown Plan, and explain how the project will stimulate economic activity in the downtown. –12 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. –12 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. – 8 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. – 8 points

Citizen Participation (20 points):

Effective use of media (newspapers, radio, TV, web 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

Maine Downtown Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team added to any applicable Maine Downtown Center Bonus and Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

MAINE DOWNTOWN CENTER ASSISTANCE

(Limited to a lead community selected by OCD)

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 a lead community. The lead community will establish a legally binding contract with the Maine Downtown Center as approved by OCD.

2. Eligible Activities: 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.

3. Communities Ineligible for MDCA Assistance: 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.

4. Maximum Administrative Costs: The host community is allowed a maximum of $1,000 in administrativefunding.

5. Maximum MDCA Grant Amount: $100,000.

WORKFORCE DEVELOPMENT GRANT PROGRAM

The Workforce Development Grant (WDG) Program addresses community and business resource needs by providing funding for operating expenses, equipment, and program materials for workforce training programs which will benefit low/moderate income (LMI) persons.

1. Eligible Activities: Eligible activities include operating and program material expenses for the purpose of providing workforce training and skills development to address the shortage of an available trained workforce. Other eligible public service activities associated with the project are allowed. Planning activities necessary to complete the Project Development Phase are eligible activities. Structural changes such as construction, renovation, or rehabilitation are not eligible for WDG funding. Program development and marketing materials are not eligible expenses under this grant.

2. Project Benefit: Eligible WDG projects must provide benefits to one of the groups of persons listed below:

(a) Participants in a program where 51% or greater of the persons receiving benefit from WDG activities are determined to be LMI.

(b) 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

3. All communities applying for WDG funds must certify that: The activity represents a new service to the community; or a quantifiable increase in the level of an existing service;

4. Maximum WDG Amount: $100,000

5. Selection Process: The selection process will consist of two stages

(a) Stage 1:

Letter of Intent: All communities wishing to submit a WDG application must submit a Letter of Intent. Refer to Page 5 of this document for Letter of Intent due dates and deadlines. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the 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.

Impact (40 points):

Conditions requiring a new or expanded service – 15 points

Issues faced by service providers including capacity, finances and staffing – 15 points

Why WDG funds are critical for the project – 10 points

Development Strategy (40 points):

A description of the new or expanded service, specific use of WDG funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted beneficiaries – 10 points

How WD funds will be utilized to assist LMI persons or a HUD approved Limited Clientele group – 10 points

Project timeline, including a start date, tasks completed to date, how WDG funds will be expended in a timely manner, and method of tracking success – 10 points

Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries – 10 points

Citizen Participation (20 points):

How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

Effective use of any media (newspapers, radio, TV, etc.) to further public awareness and participation – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 5 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 – 5 points

6. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. An application must have a minimum score of 70 in order to be funded.

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. Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended (see 24 CFR Section 570.483(d)), the applicant must address a community development need which meets all four criteria listed below:

(a) poses a serious and immediate threat to the health or welfare of the community;

(b) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(c) 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

(d) cannot be addressed with other sources of funding.

2. 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. This requirement may be waived by the Director of OCD with just cause.

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

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

Stage 1:

Application: An UN application must include the following:

documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

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;

information regarding when the urgent need condition occurred or developed into a threat to health and safety;

evidence confirming the applicant is unable to finance implementation on its own; and,

documentation that other financial resources are not available to implement the proposal.

a copy of a state or federal declaration of disaster.

(b) Stage 2:

Project Development: Prior to consideration of a grant award, all UN proposals must meet the four eligibility criteria listed above and the Program requirements. Project Development Phase applications must comply with the following:

Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

SPECIAL PROJECTS PROGRAM

The Special Projects Program provides funds to projects that are not funded through the normal CDBG application process. SP funds will be used for alternative OCD grant activities and partnerships that meet the community or economic development needs of municipalities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS

A. ECONOMIC DEVELOPMENT

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible Activities by Group Number:

Group Numbers Maximum Award

a) Grants to Municipalities: for acquisition, relocation, $1,000,000

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with public

infrastructure projects such as water and sewer improvements,

flood and drainage improvements, publicly-owned commercial

and industrial buildings, parking, streets, curbs, gutters, sidewalks, etc.

All public infrastructure must be owned by the municipality or public

or private utility and be in support of an identified business.

b) Grants to Municipalities for Direct Business Support: $1,000,000

for capital and non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial buildings,

job training, working capital and capital equipment and be in

support of an identified business. Acquisition is not an allowable

activity under this group.

2. Exclusions:

Applicants may apply in only one specific activity group

EDP funds cannot be used to refinance existing debt.

All EDP activities must be in support of an identified business; speculative activities are excluded.

Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

3. Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

4. Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

5. Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

6. Maximum Project Size for Utilizing EDP Funds: $3,000,000 Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

7. Program Requirements:

(a) EDP Letter of Intent Due Dates: All communities wishing to submit a EDP application must submit a Letter of Intent. Refer to Page 5 of this document for Letter of Intent due dates and deadlines. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) EDP Application Due Dates: By invitation only as a result of accepted Letter of Intent.

(c) Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that a 100% cash match of the total EDP award will be provided. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

The retail business is located in either a downtown district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

9. Selection Process: The selection process will consist of two stages. Members of the 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 any applicable bonus points. The following criteria will be used:

(a) Stage 1:

Letter of Intent; All communities wishing to submit an EDP application must first submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application: Members of the 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.

Problem Statement (40 points) -

Scope (15 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact (10 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well-being including property tax analysis before and after the proposed activities.

Need (15 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

Solution (40 points) -

Project Description (15 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (10 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (15 points)

Describe how the project is assured of successful completion within 12 months.

Identify what work, such as pre-engineering, construction and improvements, or fixture purchases that have been completed, or are in process, and exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

Citizen Participation (20 Points) -

Public Hearing Process (10 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (10 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

10. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

11. Final Score Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team and Business Friendly Community Designation Bonus if applicable. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

12. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

B. MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM

The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

1. Eligible Activities: Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements; and eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements and buildings solely for residential use are not eligible.

2. Exclusions: See Section 1H (3)

3. Micro-Enterprise Assistance Loan Repayments – Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) as defined in Section 105(a)(15) of the Housing and Community Development Act of 1974, to manage repayments and subsequent relending.

4. Maximum MEA Grant Amount: $150,000 per Community per year.

5. Maximum Amount of Micro-Enterprise Assistance to an individual Business: $50,000

6. Project Benefit:

Micro-Enterprise Grant/Loan:

Existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Applicants will need to submit a copy of their 2014 Income Tax filing. For those businesses whose owners are Low-to moderate-income existing employees’ incomes are not considered in meeting project benefit.

Businesses with owners who do not qualify as low-to moderate-income must create up to two (2) full-time equivalent (FTE) jobs (depending on funds requested), which must be taken by low-to moderate-income individuals. Proof of employee income will be required. Businesses applying for MEA funds must have a business plan not older than 18 months and must have met with a Small Business Development Center (SBDC) business counselor in the three months prior to submitting an application for assistance.

(c) 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.

7. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) assisting existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI, or 2) creating up to two FTE jobs which must be taken by low- to moderate income individuals, or 3) preventing or eliminating slum or blighting conditions conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD,. These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD

8. Selection Process: The selection process will consist of two stages:

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a MEA application must submit a Letter of Intent and Verification of CDBG National Objective to OCD. Refer to Page 5 of this document for Letter of Intent due dates and deadlines. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the Review Team will assign a Point Total for each application reviewed. 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.

Impact (40 points):

State the problem and explain how it negatively impacts the local economy. – 30 points

Explain why MEA 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 – 10 points

Development Strategy (40 points):

Provide Identification and description of potential business grant/loan applicants and their needs – 15 points

Explain how the MEA project will stimulate business and assist in improving the area’s long-term viability. – 15 points

Provide a project timeline; list activities or actions completed to date. – 10 points

Citizen Participation (20 points):

Effective use of any media (newspapers, radio, TV, etc.). – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) in application and project development. – 5 points

Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in development of the application and project. – 5 points

How other local resources (cash and in-kind) are directly related to the project. – 5 points

9. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

10. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team, added to any applicable Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

SECTION 4. TECHNICAL ASSISTANCE

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and provide technical assistance and outreach to communities.

Regional Providers will provide planning assistance to units of general local government in identifying community & economic development needs,, developing, and administering CDBG projects. For purposes of this paragraph the term "planning assistance" means the facilitating of skills and knowledge in planning, developing, and administering CDBG activities for entities in non-entitlement areas that may need but do not possess such skills and knowledge.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

1. Local Government Grants from the State: Applicants receiving grants under the 2015 CDBG program but failing to have their projects substantially underway (staff hired, environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD.

Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

Unexpended funds remaining in the grantee’s CDBG account at grant closeout, funds remaining in a grantee’s award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2015 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for competitions that did not receive funding. The OCD may redistribute available funds to any project deemed to be in the best interest of, and that offer CDBG definable benefits to the State of Maine.

SECTION 6. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity in excess of $35,000. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 7. APPEALS

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

An applicant wishing to appeal DECD’s decision regarding their 2015 application restricted to errors of fact or procedure, may do so by submitting an appeal letter to the Director of the Office of Community Development within fifteen (15) days of the award announcement for that specific program.

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2015 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedure Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3^RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

Chapter 44 Community Development Block Grant Program: 2016 Final Statement

Code Me. R. 19-498 Ch. 44 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-44 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 44}

F. WORKFORCE DEVELOPMENT GRANT PROGRAM. 23

G. SAFE NEIGHBORHOOD GRANT PROGRAM 25

J. SPECIAL PROJECTS PROGRAM 31

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 44 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2016 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2016 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2016 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 3 state-wide public forums and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD will hold a public hearing regarding the development of this Program Statement on November 4, 2015, Burton Cross Office Building, 3^rd floor, 111 Sewall Street, Augusta Maine.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and/or elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION:

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2016 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the three categories listed below.

1. Community Development

a. Home Repair Network

b. Housing Assistance Grants

c. Public Facilities Grants

d. Public Infrastructure Grants

e. Downtown Revitalization Grants

f. Workforce Development Grants

g. Safe Neighborhood Program Grants

h. Small Business Development Centers

i. Urgent Need Grants

j. Special Projects

2. Economic Development

a. Grants to Municipalities for Direct Business Support

b. Micro-Enterprise Grants

3. Technical Assistance

C. STATE ADMINISTRATION:

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allocation from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize up to 1% of its allotment from HUD to provide technical assistance in accordance with Federal and State requirements.

3. Exclusion of Entitlement Communities and Counties: 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 to receive State CDBG program funds.

4. Grant Administration Requirement:

Grantees must employ, or contract with, a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a qualified Rehabilitation Technician (as employees or consultants). The Office of Community Development must approve waivers of this requirement in writing. All planning activities are exempt from this requirement.

D. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development on or before 4:00PM EST on the dates listed below. Faxed copies will not be accepted.

Program

Letter of Intent Due Date

Application Due Date By Invitation Only

Downtown Revitalization

Economic Development

January 30, 2016

TBD*

1^st Friday of January, February and March**

May 13, 2016

1^st Friday of April, May, and June**

July 29, 2016

---

1^st Friday of July, August and September **

October 28, 2016

Housing Assistance

March 11, 2016

May 6, 2016

Micro-Enterprise Assistance

1^st Friday of January, and February **

March 25, 2016

1^st Friday of March and April**

May 27, 2016

1^st Friday of May and June**

July 29, 2016

1^st Friday of July and August**

September 23, 2016

Safe Neighborhood Program

May 6, 2016

June 17, 2016

Public Facilities

January 15, 2016

TBD*

Public Infrastructure

January 15, 2016

March 4, 2016

Special Projects *

N/A

TBD*

Urgent Need

N/A

TBD*

Workforce Development

May 6, 2016**

June 17, 2016

July 1, 2016**

August 12, 2016

*Subject to availability of funds.

**** If the first Friday of the month falls on a holiday the Economic Development and Micro-Enterprise Assistance Programs Letter(s) of Intent will be due by 4:00pm on the next business day.**

E. 2016 PROGRAM BUDGET

FY 2016 CDBG Budget $ 10,765,432

Administration 315,308

Technical Assistance Administration 107,654

Regional Council Planning Assistance 114,347

Community Development

Downtown Revitalization Grants* 0 Home Repair Network Program 1,700,000

Housing Assistance Grants 1,000,000

Public Facilities Grants* 0

Public Infrastructure Grants 2,700,000

Workforce Development Grants 500,000

Safe Neighborhood Program 700,000

Small Business Development Centers 50,000

Urgent Need Grants* 0

Special Projects 178,123

Economic Development

Business Assistance Grants 2,700,000

Micro-Enterprise Assistance Grants 700,000

TOTAL Estimated 2016 CDBG Funds (final amount determined by HUD) 10,765,432

Funding for individual categories may change based on actual HUD award .

*Funding for these programs may be available based upon redistribution, reallocation and/or additional allocation from HUD.

F. CERTIFICATIONS

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act, 24 CFR part 42;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121, codified at 31 U.S.C. Section 1352, regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

G. GENERAL REQUIREMENTS:

1. Eligible Applicants: All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Safe Neighborhood Program or Workforce Development programs on behalf of a collaboration of communities . Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants. Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2016 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

2. Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

3. Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

4. “Growth Related” Preference: In accordance with M.R.S.A Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

5. Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

6. Application Threshold: Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2016 Program Statement and 2016 CDBG Application Packages will be removed from the scoring process during the threshold review.

7. Financial Commitments: Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

8. Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

9. Past Performance: In order to be eligible to apply for a 2016 Community Development Block Grant program, communities that received CDBG grants in or prior to 2012 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2013 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2014 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2015 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director of OCD.

10. Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Economic Development Programs (Business Assistance and Micro-Enterprise Assistance), Workforce Development Grants and Safe Neighborhood Program, from the date of contract signing. The Office of Community Development may grant waivers for just cause.

H. EXCLUSIONS:

1. Multiple Grants: Except for the Economic Development grants-Business Assistance Grants and Micro-Enterprise Assistance Grants, eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

2. Subsequent Year Award: Except for the Economic Development Program-Business Assistance Grants, Micro-Enterprise Assistance Grants, and project specific Housing Grants, units of general local government and Unorganized Territory that benefited from a 2015 award may not apply again in that specific program until the 2017 program. This exclusion may be waived by the Director of OCD with cause.

3. Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 1999 Ch. 776 (codified at 30-A M.R.S.A. § 4301(5-A)).

4. Housing Assistance Grant Program (HA) Past Performance Requirement: Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

5. Housing Assistance (HA) Grantees: Communities may not submit a HA application for single family rehabilitation if they have received or benefited from two (2) HA awards within the five (5) year period prior to the CDBG program year for which applications are being accepted.

I. AWARD PROCESS:

1. Scoring:

Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Urgent Need Grants and the Home Repair Network will be scored on a 100-point maximum scoring basis with allowance for bonus points whereapplicable. Final scores will be determined by averaging the scores assigned by members of the Review Team and adding any applicable bonus point. Notification of CDBG awards will typically be made in 30-45 days from receipt of a complete application. Notification of award may be delayed if additional information is requested by OCD. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, consideration will be given to the community that is listed as a Service Center. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

2. Project Development Phase:

a. Project Planning: Details of the project including pre-engineering, bid requirements, budget, and/or grant administration.

b. Acceptance of Funds: Public Hearing and Legislative Body Approval for the acceptance of funds. (Excluding the Economic Development Program)

c. Local Certifications: Local adoption of State and Federal regulations..

d. Project Benefit: Verification that proposed activities meet or will meet one of the CDBG Program National Objectives.

e. Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

3. Project Development Timeframe and Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Economic Development, Microenterprise Assistance, Safe Neighborhood and Workforce Development Programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS

HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons. Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

1. Eligibility Requirements for Housing Assistance Applications: Communities may not submit a HA single family rehabilitation 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. Multi-jurisdictional applications with more than 3 communities will not be accepted.

2. Eligible 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, correction of code violations, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, 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.

3. Exclusions: See Section 1H (6) (7).

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

5. Maximum HA Grant Amount: $1,000,000

6. 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.

7. Section 8 Housing Quality Standards: All units assisted or created with HA funds must, if possible, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc.

8. 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 qualified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program (24 CFR Part 85) to hire a qualified CDBG Rehabilitation Technician subject to award of a HA contract.

9. Selection Process: The selection process for all HA applications will consist of two stages:

(a)Stage 1:

Letter of Intent : All communities wishing to submit a HA application must submit a Letter of Intent to OCD on or before March 11, 2016 according to the requirements set forth in the 2016 Housing Assistance Application Package.

(b)Stage 2:

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 May 3, 2016. Members of the 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.

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

Development Strategy (40 points):

A description of the plan proposed to implement the housing project – 20 points

Summary of the activities and use of HA funds –20 points

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

11. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

HOME REPAIR NETWORK PROGRAM

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. as stated 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 the Director of the OCD.

2. Eligible Activities: 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, energy conservation, removal/mitigation of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers and the Critical Access Ramp Program (via Alpha One).

3. Housing units ineligible for Home Repair Network assistance: 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.

4. Maximum HRN Grant Amount: $1,700,000. Allocations to each of the established regions will be determined by the Office of Community Development.

5. Maximum HA Grant Amount: $500,000

6. Maximum Administrative Costs: The HRN Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 20% of the grant amount. The City of Rockland is allowed a maximum of $5,000 in administrative funding.

7. Section 8 Housing Quality Standards: All units assisted or created with HRN funds will strive to meet HUD Section 8 Minimum Housing Quality Standards if possible. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc. In addition, all units must comply with other applicable standards included in the HRN contract.

PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides gap funding for local public facility activities, which alleviate a threat to the health and safety of the general public.

1. 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 and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (1) (2).

3. 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.

4. Maximum PF Grant Amount: $300,000

5. Demonstration of Need: Applicants must have demonstrated that the proposed activity will alleviate a threat to the health and safety of the general public. This demonstration must have been made part of the Letter of Intent and Verification submitted to the Office of Community Development on or before January 15, 2016 .

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of a) benefiting 51% or greater low/moderate income persons or b) 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 Title 30-A M.R.S.A. § 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, January 15, 2016.

7. 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 OCD.

8. Selection Process: The selection process will consist of two stages.

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective : All communities wishing to submit a PF application must first submit aLetter of Intent and Verification of CDBG National Objective to OCD onor before 4:00PM on Friday January 15, 2016 according to the requirements set forth in the 2016 PF application package.

(b) Stage 2:

Application : The application deadline for the PF program will be announced by the OCD, pending the availability of funds. Members of the 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

Impact (40 points):

A description of the why the project is necessary – 8 points

Conditions warranting new construction or renovations, including health and safety concerns– 10 points

How these conditions affect LMI persons in the community or region – 10 points

Size and make up of user base of facility – 6 points

Why PF funds are necessary for project – 6 points

Development Strategy (40 points):

A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location – 10 points

Specific use of PF funds – 10 points

Positive effect on LMI persons – 10 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 – 10 points

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

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development phase as funds allow.

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. 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.

2. Exclusions: See Section 1H (1) (2).

3. 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 etc. contributed to the project.

4. Program Activities: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

Activity Group Numbers:

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. Maximum Amount: $1,000,000

Infrastructure in support of new LMI affordable fully financed housing.

Maximum Amount: $1,000,000

5. 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.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons via Census information, or a certified target area survey. 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 15, 2016 .

7. Selection Process: The selection process for all PI applications will consist of two stages:

(a) Stage 1:

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 onor before 4:00PM on Friday January 15, 2016 according to the requirements set forth in the 2016 PI application package.

(b) Stage 2:

Application : The application deadline for the PI Program is 4:00PM on March 4, 2016. Each application will be rated in relation to all others in a two-stage process. Members of the 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.

Impact (40 points):

A description of why the project is necessary, previous efforts to address needs, and how the project was prioritized locally –6 points

What engineering firms and/or regulatory agencies have verified the infrastructure problems, and what studies and testing have been done that corroborate the need– 6 points

How the verified health, safety and welfare conditions affect users and others in the community and region –8 points

Size and demographic makeup of user base and target area of projected infrastructure project –10 points

Why PI funds are necessary to fill a funding gap, what other state and/or federal agency funding is involved, capacity of the utility or town to borrow, and how match funds will work with PI funds to implement the project –10 points

Development Strategy (40 points):

A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems – 10 points

Positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures –5 points

Extent of financial benefits to users; list current user rates, what rates will be if PI funding is approved, and list what user rates will be if the project is built without PI funding –15 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 –10 points

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 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

development of the application and project and how the required public hearing relates

8. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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 in 30-A M.R.S.A. Section 4301(5-A).

1. Eligible activities - include all those eligible under the Public Facilities, Public Infrastructure, Housing Assistance or Micro Enterprise Assistance programs as relevant to the revitalization of a downtown district; and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (4) (5).

3. 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, etc. contributed to the project.

4. 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.

5. Maximum DR Award: $400,000

6. 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.

7. 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 town-wide income survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A § 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 30, 2016.

8. Selection Process – The selection process will consist of two stages

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective:

All communities wishing to submit a DR application must first submit a Letter of Intent and Verification of CDBG National Objective to OCD on or before 4:00PM on Friday January29, 2016 according to the requirements set forth in the 2016 DR application package.

(b) Stage 2:

Application: The maximum length of an application is six pages, not counting required attachments. The application deadline for the DR program will be announced by the OCD, pending the availability of funds. Each application will be rated in relation to all others. Members of the 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.

Impact (40 points):

Describe the scope and magnitude of the problems you seek to address, and how they are obstacles for revitalizing the downtown. – 8 points

Explain how these problems negatively impact the viability of existing downtown businesses, or new development and expansion. –12 points

Demonstrate how the problems affect LMI persons, or how they contribute to slum/blight conditions. –8 points

Explain why DR funds are necessary for the project, and describe what efforts have been made and where you have searched to secure other grant or loan funds, –12 points

Development of Strategy (40 points):

Clearly link the proposed DR activities to action steps outlined in your community’s Downtown Plan, and explain how the project will stimulate economic activity in the downtown. –12 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. –12 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. –8 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. – 8 points

Citizen Participation (20 points):

Effective use of media (newspapers, radio, TV, web 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

Maine Downtown Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team added to any applicable Maine Downtown Center Bonus and Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

WORKFORCE DEVELOPMENT GRANT PROGRAM

The Workforce Development Grant (WDG) Program addresses community and business resource needs by providing funding for operating expenses, equipment, and program materials for workforce training programs which will benefit low/moderate income (LMI) persons.

1. Eligible Activities: Eligible activities include operating and program material expenses for the purpose of providing workforce training and skills development to address the shortage of an available trained workforce. Other eligible public service activities associated with the project are allowed. Planning activities necessary to complete the Project Development Phase are eligible activities. Structural changes such as construction, renovation, or rehabilitation and out-of state travel costs, including airfare, lodging and meals are not eligible for WDG funding. Program development and marketing materials are also not eligible expenses under this grant.

2. Project Benefit: Eligible WDG projects must provide benefits to one of the groups of persons listed below and be in support of an identified business or non-profit entity:

(a) Participants in a program where 51% or greater of the persons receiving benefit from WDG activities are determined to be LMI.

(b) 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

3. All communities applying for WDG funds must certify that: The activity represents a new service to the community; or a quantifiable increase in the level of an existing service;

4. Maximum WDG Amount: $100,000

5. Selection Process: The selection process will consist of two stages

(a) Stage 1:

Letter of Intent: All communities wishing to submit a WDG application must submit a Letter of Intent. Refer to Page 5 of this document for Letter of Intent due dates and deadlines. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the 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.

Impact (40 points):

Conditions requiring a new or expanded service – 15 points

Issues faced by service providers including capacity, finances and staffing – 15 points

Why WDG funds are critical for the project – 10 points

Development Strategy (40 points):

A description of the new or expanded service, specific use of WDG funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted beneficiaries – 10 points

How WD funds will be utilized to assist LMI persons or a HUD approved Limited Clientele group – 10 points

Project timeline, including a start date, tasks completed to date, how WDG funds will be expended in a timely manner, and method of tracking success – 10 points

Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries – 10 points

Citizen Participation (20 points):

How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

Effective use of any media (newspapers, radio, TV, etc.) to further public awareness and participation – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 5 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 – 5 points

6. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

G. SAFE NEIGHBORHOOD PROGRAM

The Safe Neighborhood Program (SN) provides resources to support new or expanded local law enforcement and crime prevention programming in designated neighborhoods which will benefit low/moderate income (LMI) persons. These funds will help alleviate illegal drug activity, violent crime and property crime, which will benefit residents.

1. Special Threshold Criteria and Certifications: SN Program funds will be distributed through an annual grant application selection process.

(a) Eligible Activities: Eligible activities include personnel costs, equipment, training and any other eligible public service activities necessary to support local law enforcement agencies’ efforts to primarily combat the sale and distribution of illegal drugs and associated other crimes; eligible planning activities necessary to complete the Project Development Phase.

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

(ii) Target areas in communities where 51% or greater of the persons residing in the target area are determined to be LMI; or

(iii) Communities designated as 51% or greater LMI according to the most recent American Community Survey (ACS) Census data.

(c) All communities applying for SN funds must certify that:

(i) The program represents a new service to the community/target area; or a quantifiable increase in the level of an existing service;

(iii) The activity will meet the need or will continue after SN funding is expended.

2. Special Program Requirements:

(a) Maximum SN Amount: $100,000

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

1. Letter of Intent: All communities wishing to submit a SN application must submit a Letter of Intent to OCD on or before May 6, 2016 according to the requirements set forth in the 2016 Safe Neighborhood Program Application Package.
2. Application: The maximum length of an application is four pages, not counting required attachments. The application deadline for the SN program is 4:00PM on June 17, 2016. Each application will be rated in relation to all others in a two-stage process.

Stage 1: Review Team Analysis – Members of the 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 (40 points):

*A description of the scope, magnitude and severity of the identified problems – 12 points

*Past efforts to deal with the identified problems – 5 points

*Conditions requiring a new or expanded service – 7 points

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

*Why SN funds are critical for the project – 10 points

(ii) Development Strategy (40 points):

*A description of the new or expanded service, specific use of SN funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted areas – 8 points

*How the SN new/expanded service will benefit LMI persons– 8 points

*Project timeline, including a start date, tasks completed to date and how SN 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 SN grant administrator – 7 points

*How the public service established or expanded with SN funding will continue after the SN funding ends, or there will no longer be a need for these services after the SN program ends – 7 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 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. SMALL BUSINESS DEVELOPMENT CENTERS

The Small Business Development Center Technical Assistance (SBDCTA) provides funding for the provision of technical assistance to Maine micro-enterprise businesses through a partnership with Maine’s Small Business Development Centers.

1. Special Threshold Criteria and Certifications: SBDCTA will be distributed through a set aside of CDBG funds provided to the County of Aroostook as the lead community. The lead community will establish a legally binding contract with the SBDC as approved by OCD.

(a) Eligible Activities:

(i) Eligible activities under the SBDCTA are technical assistance to verified Maine micro-enterprise businesses and potential start-up companies which can be reasonably expected to become a micro-enterprise business.

(b) Communities ineligible for SBDCTA Assistance:

(i) Micro-enterprise businesses and potential start-up companies located in the communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the SBDCTA.

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. Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended (see 24 CFR Section 570.483(d)), the applicant must address a community development need which meets all four criteria listed below:

(a) poses a serious and immediate threat to the health or welfare of the community;

(b) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(c) 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

(d) cannot be addressed with other sources of funding.

2. 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. This requirement may be waived by the Director of OCD with just cause.

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

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

Stage 1:

Application: An UN application must include the following:

documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

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;

information regarding when the urgent need condition occurred or developed into a threat to health and safety;

evidence confirming the applicant is unable to finance implementation on its own; and,

documentation that other financial resources are not available to implement the proposal.

a copy of a state or federal declaration of disaster.

(b) Stage 2:

Project Development: Prior to consideration of a grant award, all UN proposals must meet the four eligibility criteria listed above and the Program requirements. Project Development Phase applications must comply with the following:

Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

J. SPECIAL PROJECTS PROGRAM

The Special Projects Program provides funds to projects that are not funded through the normal CDBG application process. SP funds will be used for alternative OCD grant activities and partnerships that meet the community or economic development needs of municipalities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS

A. ECONOMIC DEVELOPMENT

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible Activities by Group Number:

Group Numbers Maximum Award

a) Grants to Municipalities: for acquisition, relocation, $1,000,000

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with public

infrastructure projects such as water and sewer improvements,

flood and drainage improvements, broadband/wireless access,

publicly-owned commercial and industrial buildings, parking,

streets, curbs, gutters, sidewalks, etc. All public infrastructure

must be owned by the municipality or public or private utility

and be in support of an identified business.

b) Grants to Municipalities for Direct Business Support: $1,000,000

for capital and non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial buildings,

job training, working capital and capital equipment and be in

support of an identified business. Acquisition is not an allowable

activity under this group.

2. Exclusions:

Applicants may apply in only one specific activity group

EDP funds cannot be used to refinance existing debt.

All EDP activities must be in support of an identified business; speculative activities are excluded.

Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

3. Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

4. Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

5. Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

6. Maximum Project Size for Utilizing EDP Funds: $3,000,000 Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

7. Program Requirements:

(a) EDP Letter of Intent Due Dates:

All communities wishing to submit an EDP application must submit a Letter of Intent. Refer to Page 5 of this document for Letter of Intent due dates and deadlines. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

.

(b) EDP Application Due Dates: By invitation only as a result of accepted Letter of Intent.

(c) Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that a 100% cash match of the total EDP award will be provided. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

The retail business is located in either a downtown district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

9. Selection Process: The selection process will consist of two stages. Members of the 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 any applicable bonus points. The following criteria will be used:

(a) Stage 1:

Letter of Intent: All communities wishing to submit an EDP application must first submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application: Members of the 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.

Problem Statement (40 points) -

Scope (15 points)

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact (10 points)

Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well-being including property tax analysis before and after the proposed activities.

Need (15 points)

Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

Solution (40 points) -

Project Description (15 points)

Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business (10 points)

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility (15 points)

Describe how the project is assured of successful completion within 12 months.

Identify what work, such as pre-engineering, construction and improvements, or fixture purchases that have been completed, or are in process, and exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

Citizen Participation (20 Points) -

Public Hearing Process (10 points)

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement (10 points)

Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

10. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

11. Final Score Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team and Business Friendly Community Designation Bonus if applicable. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

12. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

B. MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM

The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

1. Eligible Activities: Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements; and eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements and buildings solely for residential use are not eligible.

2. Exclusions: See Section 1H (3)

3. Micro-Enterprise Assistance Loan Repayments – Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) as defined in Section 105(a)(15) of the Housing and Community Development Act of 1974, to manage repayments and subsequent relending. Micro-Enterprise Assistance Grants will be structured as forgivable loans.

4. Maximum MEA Grant Amount: $150,000 per Community per year.

5. Maximum Amount of Micro-Enterprise Assistance to an individual Business: $50,000

6. Project Benefit:

Micro-Enterprise Grant/Loan: Existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Applicants will need to submit a copy of their 2015 Income Tax filing. For those businesses whose owners are Low-to moderate-income existing employees’ incomes are not considered in meeting project benefit.

Businesses with owners who do not qualify as low-to moderate-income must create up to two (2) full-time equivalent (FTE) jobs (depending on funds requested), which must be taken by low-to moderate-income individuals. Proof of employee income will be required. Businesses applying for MEA funds must have a business plan not older than 18 months and must have met with a Small Business Development Center (SBDC) business counselor in the three months prior to submitting an application for assistance.

(c) 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.

7. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) assisting existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI, or 2) creating up to two FTE jobs which must be taken by low- to moderate income individuals, or 3) preventing or eliminating slum or blighting conditions conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD,. These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD

8. Selection Process: The selection process will consist of two stages:

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a MEA application must submit a Letter of Intent and Verification of CDBG National Objective to OCD. Refer to Page 5 of this document for Letter of Intent due dates and deadlines. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Members of the Review Team will assign a Point Total for each application reviewed. 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.

Impact (40 points):

State the problem and explain how it negatively impacts the local economy. – 30 points

Explain why MEA 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 – 10 points

Development Strategy (40 points):

Provide Identification and description of potential business grant/loan applicants and their needs – 15 points

Explain how the MEA project will stimulate business and assist in improving the area’s long-term viability. – 15 points

Provide a project timeline; list activities or actions completed to date. – 10 points

Citizen Participation (20 points):

Effective use of any media (newspapers, radio, TV, etc.). – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) in application and project development. – 5 points

Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in development of the application and project. – 5 points

How other local resources (cash and in-kind) are directly related to the project. – 5 points

9. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

10. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team, added to any applicable Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

SECTION 4. TECHNICAL ASSISTANCE

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and provide technical assistance and outreach to communities.

Regional Providers will provide planning assistance to units of general local government in identifying community & economic development needs, developing, and administering CDBG projects. For purposes of this paragraph the term "planning assistance" means the facilitating of skills and knowledge in planning, developing, and administering CDBG activities for entities in non-entitlement areas that may need but do not possess such skills and knowledge.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

1. Local Government Grants from the State: Applicants receiving grants under the 2016 CDBG program but failing to have their projects substantially underway (environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD.

Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

Unexpended funds remaining in the grantee’s CDBG account at grant closeout, funds remaining in a grantee’s award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2016 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for competitions that did not receive funding. The OCD may redistribute available funds to any project deemed to be in the best interest of, and that offer CDBG definable benefits to the State of Maine.

SECTION 6. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity in excess of $35,000. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 7. APPEALS

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

An applicant wishing to appeal DECD’s decision regarding their 2016 application restricted to errors of fact or procedure, may do so by submitting an appeal letter to the Director of the Office of Community Development within fifteen (15) days of the award announcement for that specific program.

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2016 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3^RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

Chapter 45 Community Development Block Grant Program: 2017 Final Statement

Code Me. R. 19-498 Ch. 45 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-45 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 45}

F. WORKFORCE DEVELOPMENT GRANT PROGRAM 22

I. SPECIAL PROJECTS PROGRAM 27

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. The Director of the Office of Community Development (OCD) may waive any requirement of the program provided such waiver would not be out of compliance with CDBG Program regulations.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 45 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2017 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2017 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2017 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 3 state-wide public forums and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held a public hearing regarding the development of this Program Statement on November 4, 2016, Burton Cross Office Building, 3^rd floor, 111 Sewall Street, Augusta Maine.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and/or elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION:

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2017 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the three categories listed below.

1. Community Development

a. Home Repair Network

b. Housing Assistance Grants

c. Public Facilities Grants

d. Public Infrastructure Grants

e. Downtown Revitalization Grants

f. Workforce Development Grants

g. Small Business Development Centers

h. Urgent Need Grants

i. Special Projects

2. Economic Development

a. Grants to Municipalities for Direct Business Support

b. Micro-Enterprise Grants

3. Technical Assistance

C. STATE ADMINISTRATION:

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allocation from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize up to 1% of its allotment from HUD to provide technical assistance in accordance with Federal and State requirements.

3. Exclusion of Entitlement Communities and Counties: 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 to receive State CDBG program funds.

4. Grant Administration Requirement:

Grantees must employ, or contract with, a certified CDBG Grant Administrator and in the case of Housing Rehabilitation a qualified Rehabilitation Technician (as employees or consultants). The Office of Community Development must approve waivers of this requirement in writing. All planning activities are exempt from this requirement.

D. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development on or before 4:00PM EST on the dates listed below. Faxed copies will not be accepted.

Program

Letter of Intent Due Date

Application Due Date By Invitation Only

Downtown Revitalization

Economic Development

January 27, 2017

March 31, 2017

1^st Friday of January, February, March and April**

May 26, 2017

1^st Friday of May, June and July**

August 25, 2017

---

Housing Assistance

March 10, 2017

May 5, 2017

Micro-Enterprise Assistance

1^st Friday of January, February and March **

April 28, 2017

1^st Friday of April, May and June**

July 28, 2017

Public Facilities

January 13, 2017

TBD*

Public Infrastructure***

Special Projects *

N/A

TBD*

Urgent Need

N/A

TBD*

Workforce Development

May 5, 2017**

June 16, 2017

July 7, 2017**

August 18, 2017

*Subject to availability of funds.

**** If the first Friday of the month falls on a holiday the Economic Development and Micro-Enterprise Assistance Programs Letter(s) of Intent will be due by 4:00pm on the next business day.**

***Public Infrastructure – No Letters of Intent or Applications will be accepted for the 2017 Program Year. The projects of Machias, Lincolnville, Ashland and East Millinocket, who submitted applications in 2016, are being funded in 2017.

E. 2017 PROGRAM BUDGET

FY 2017 CDBG Budget $ 10,765,432

Administration 315,308

Technical Assistance Administration 107,654

Regional Council Planning Assistance 114,347

Community Development

Downtown Revitalization Grants 300,000

Home Repair Network Program 1,700,000

Housing Assistance Grants 1,000,000

Public Facilities Grants* 0

Public Infrastructure Grants 3,500,000

Workforce Development Grants 250,000

Small Business Development Centers 50,000

Urgent Need Grants* 0

Special Projects 28,123

Economic Development

Economic Development Grants 2,700,000

Micro-Enterprise Assistance Grants 700,000

TOTAL Estimated 2017 CDBG Funds (final amount determined by HUD) 10,765,432

Funding for individual categories may change based on actual HUD award .

*Funding for these programs may be available based upon redistribution, reallocation and/or additional allocation from HUD.

F. CERTIFICATIONS

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act, 24 CFR part 42;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121, codified at 31 U.S.C. Section 1352, regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

G. GENERAL REQUIREMENTS:

1. Eligible Applicants: All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the or Workforce Development programs on behalf of a collaboration of communities . Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants. Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2017 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

2. Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

3. Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

4. “Growth Related” Preference: In accordance with M.R.S.A Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

5. Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

6. Application Threshold: Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2017 Program Statement and 2017 CDBG Application Packages will be removed from the scoring process during the threshold review.

7. Financial Commitments: Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

8. Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

9. Past Performance: In order to be eligible to apply for a 2017 Community Development Block Grant program, communities that received CDBG grants in or prior to 2013 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2014 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2015 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2016 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director of OCD.

10. Grant Termination: OCD will terminate a community’s grant if progress on the project is not apparent within 6 months, or 3 months in the case of Economic Development Programs (Economic Development and Micro-Enterprise Assistance), and Workforce Development Grants, from the date of contract signing. The Office of Community Development may grant waivers for just cause.

H. EXCLUSIONS:

1. Multiple Grants: Except for the Economic Development Programs (Economic Development and Micro-Enterprise Assistance)s, eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit. DECD reserves the right to not invite a community to submit an application and/or remove an application(s) from the scoring process in instances where a community has submitted multiple applications in multiple programs, within the same program year.

2. Subsequent Year Award: Except for the Economic Development Program-Economic Development Grants, Micro-Enterprise Assistance Grants, and project specific Housing Grants, units of general local government and Unorganized Territory that benefited from a 2016 award may not apply again in that specific program until the 2018 program. This exclusion may be waived by the Director of OCD with cause.

3. Downtown Revitalization (DR) Grantees: 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. Applications for multi-jurisdictional Downtown Revitalization projects will only be eligible if the downtowns are contiguous and each meets the definition of a downtown as defined in PL 1999 Ch. 776 (codified at 30-A M.R.S.A. § 4301(5-A)).

4. Housing Assistance Grant Program (HA) Past Performance Requirement: Communities are not eligible to apply for a HA grant unless all prior HA grants are 100% expended and conditionally closed out. 100% expended also requires that no HA funds exist in the housing escrow account.

5. Housing Assistance (HA) Grantees: Communities may not submit a HA application for single family rehabilitation if they have received or benefited from two (2) HA awards within the five (5) year period prior to the CDBG program year for which applications are being accepted.

I. AWARD PROCESS:

1. Scoring:

With the exception of the Economic Development Grants, Applicants will be placed in rank order from highest to lowest according to the final scores determined by the OCD Review Team. All program applications with the exception of the Urgent Need Grants and the Home Repair Network will be scored on a 100-point maximum scoring basis with allowance for bonus points whereapplicable. Final scores will be determined by averaging the scores assigned by members of the Review Team and adding any applicable bonus point. Notification of CDBG awards will typically be made in 30-45 days from receipt of a complete application. Notification of award may be delayed if additional information is requested by OCD. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow. In the event of a tie in any CDBG program scoring process, consideration will be given to the community that is listed as a Service Center. An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

2. Project Development Phase:

a. Project Planning: Details of the project including pre-engineering, bid requirements, budget, and/or grant administration.

b. Acceptance of Funds: Public Hearing and Legislative Body Approval for the acceptance of funds. (Excluding the Economic Development Program)

c. Local Certifications: Local adoption of State and Federal regulations..

d. Project Benefit: Verification that proposed activities meet or will meet one of the CDBG Program National Objectives.

e. Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

3. Project Development Timeframe and Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. For the Economic Development, Microenterprise Assistance and Workforce Development Programs OCD will rescind the CDBG program award offer if the community is not under contract within three months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS

HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons. Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

1. Eligibility Requirements for Housing Assistance Applications: Communities may not submit a HA single family rehabilitation 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. Multi-jurisdictional applications with more than 3 communities will not be accepted.

2. Eligible 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, correction of code violations, conversion of non-residential structures, demolition, down payment assistance, first time homebuyer’s programs, 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.

3. Exclusions: See Section 1H (6) (7).

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

5. Maximum HA Grant Amount: $1,000,000

6. 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.

7. Section 8 Housing Quality Standards: All units assisted or created with HA funds must, if possible, meet HUD Section 8 Minimum Housing Quality Standards. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc.

8. 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 qualified CDBG Rehabilitation Technician; or have completed a procurement process under the guidelines of the CDBG program (24 CFR Part 85) to hire a qualified CDBG Rehabilitation Technician subject to award of a HA contract.

9. Selection Process: The selection process for all HA applications will consist of two stages:

(a) Stage 1:

Letter of Intent : All communities wishing to submit a HA application must submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application : The maximum length of an application is four pages (not counting required attachments). Please refer to Page 5 of this document for Program deadlines and due dates. Members of the 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.

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

Development Strategy (40 points):

A description of the plan proposed to implement the housing project – 20 points

Summary of the activities and use of HA funds –20 points

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

11. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

HOME REPAIR NETWORK PROGRAM

The Home Repair Network Program (HRN) provides funding statewide to address housing problems of low- and moderate-income persons. This program will provide housing rehabilitation services administered on a regional basis throughout Maine, as stated 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)to provide Housing Rehabilitation Services in the region. Participation in the HRN delivery system is subject to the approval of the Director of the OCD.

2. Eligible Activities: 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, energy conservation, removal/mitigation of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers and the Critical Access Ramp Program (via Alpha One).

3. Housing units ineligible for Home Repair Network assistance: 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.

4. Maximum HRN Grant Amount: $1,700,000. Allocations to each of the established regions will be determined by the Office of Community Development.

5. Maximum Administrative Costs: The HRN Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 20% of the grant amount. The City of Rockland is allowed a maximum of $5,000 in administrative funding.

6. Section 8 Housing Quality Standards: All units assisted or created with HRN funds will strive to meet HUD Section 8 Minimum Housing Quality Standards if possible. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc. In addition, all units must comply with other applicable standards included in the HRN contract.

PUBLIC FACILITIES GRANT PROGRAM

The Public Facilities Grant (PF) Program provides gap funding for local public facility activities, which alleviate a threat to the health and safety of the general public.

1. 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 and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (1) (2).

3. 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.

4. Maximum PF Grant Amount: $300,000

5. Demonstration of Need: Applicants must have demonstrated that the proposed activity will alleviate a threat to the health and safety of the general public. This demonstration must have been made part of the Letter of Intent and Verification submitted to the Office of Community Development.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of a) benefiting 51% or greater low/moderate income persons or b) 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 Title 30-A M.R.S.A. § 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.

7. 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 OCD.

8. Selection Process: The selection process will consist of two stages.

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective : All communities wishing to submit a PF application must submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application : The application deadline for the PF program will be announced by the OCD, pending the availability of funds. Members of the 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

Impact (40 points):

A description of the why the project is necessary – 8 points

Conditions warranting new construction or renovations, including health and safety concerns– 10 points

How these conditions affect LMI persons in the community or region – 10 points

Size and make up of user base of facility – 6 points

Why PF funds are necessary for project – 6 points

Development Strategy (40 points):

A description of the new or renovated facility, including size, design factors, alleviation of health and safety factors, utilities and location – 10 points

Specific use of PF funds – 10 points

Positive effect on LMI persons – 10 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 – 10 points

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

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development phase as funds allow.

PUBLIC INFRASTRUCTURE GRANT PROGRAM

No Letters of Intent or Applications will be accepted for the 2017 Program Year. The projects of Machias, Lincolnville, Ashland and East Millinocket, who submitted applications in 2016, are being funded in 2017.

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. 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.

2. Exclusions: See Section 1H (1) (2).

3. 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 etc. contributed to the project.

4. Program Activities: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

Activity Group Numbers:

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.

Maximum Amount: $1,000,000

Infrastructure in support of new LMI affordable fully financed housing.

Maximum Amount: $1,000,000

5. 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.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons via Census information, or a certified target area survey.

7. Selection Process: The selection process for all PI applications will consist of two stages:

(a) Stage 1:

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. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application : Please refer to Page 5 of this document for Program deadlines and due dates.

Each application will be rated in relation to all others in a two-stage process. Members of the 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.

Impact (40 points):

A description of why the project is necessary, previous efforts to address needs, and how the project was prioritized locally –6 points

What engineering firms and/or regulatory agencies have verified the infrastructure problems, and what studies and testing have been done that corroborate the need– 6 points

How the verified health, safety and welfare conditions affect users and others in the community and region –8 points

Size and demographic makeup of user base and target area of projected infrastructure project –10 points

Why PI funds are necessary to fill a funding gap, what other state and/or federal agency funding is involved, capacity of the utility or town to borrow, and how match funds will work with PI funds to implement the project –10 points

Development Strategy (40 points):

A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems – 10 points

Positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures –5 points

Extent of financial benefits to users; list current user rates, what rates will be if PI funding is approved, and list what user rates will be if the project is built without PI funding –15 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 –10 points

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 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

development of the application and project and how the required public hearing relates

8. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

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 in 30-A M.R.S.A. Section 4301(5-A).

1. Eligible activities - include all those eligible under the Public Facilities, Public Infrastructure, Housing Assistance or Micro Enterprise Assistance programs as relevant to the revitalization of a downtown district; and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (4) (5).

3. Match – All communities applying for DR Program funds must certify that they will provide a minimum cash match equivalent to 25 percent of the total grant award. This minimum 25% match must consist of private sector investments directly related to the project. Any additional project funding over the minimum 25% may come from any source public and/or private. All match must be fully committed at time of application.

4. 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.

5. Maximum DR Award: $300,000

6. 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.

7. 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 town-wide income survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A § 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.

8. Selection Process – The selection process will consist of two stages

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective:

All communities wishing to submit a DR application must submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application: The maximum length of an application is six pages, not counting required attachments.

Please refer to Page 5 of this document for Program deadlines and due dates.

Each application will be rated in relation to all others. Members of the 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.

Impact (40 points):

Describe the scope and magnitude of the problems you seek to address, and how they are obstacles for revitalizing the downtown. – 8 points

Explain how these problems negatively impact the viability of existing downtown businesses, or new development and expansion. –12 points

Demonstrate how the problems affect LMI persons, or how they contribute to slum/blight conditions. –8 points

Explain why DR funds are necessary for the project, and describe what efforts have been made and where you have searched to secure other grant or loan funds, –12 points

Development of Strategy (40 points):

Clearly link the proposed DR activities to action steps outlined in your community’s Downtown Plan, and explain how the project will stimulate economic activity in the downtown. –12 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. –12 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. –8 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. – 8 points

Citizen Participation (20 points):

Effective use of media (newspapers, radio, TV, web 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

Maine Downtown Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

9. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team added to any applicable Maine Downtown Center Bonus and Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

WORKFORCE DEVELOPMENT GRANT PROGRAM

The Workforce Development Grant (WDG) Program addresses community and business resource needs by providing funding for operating expenses, equipment, and program materials for workforce training programs which will benefit low/moderate income (LMI) persons.

1. Eligible Activities: Eligible activities include operating and program material expenses for the purpose of providing workforce training and skills development to address the shortage of an available trained workforce. Other eligible public service activities associated with the project are allowed. Planning activities necessary to complete the Project Development Phase are eligible activities. Structural changes such as construction, renovation, or rehabilitation and out-of state travel costs, including airfare, lodging and meals are not eligible for WDG funding. Program development and marketing materials are also not eligible expenses under this grant.

2. Project Benefit: Eligible WDG projects must provide benefits to one of the groups of persons listed below and be in support of an identified business or non-profit entity:

(a) Participants in a program where 51% or greater of the persons receiving benefit from WDG activities are determined to be LMI.

(b) 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

3. All communities applying for WDG funds must certify that: The activity represents a new service to the community; or a quantifiable increase in the level of an existing service;

4. Maximum WDG Amount: $50,000

5. Selection Process: The selection process will consist of two stages

(a) Stage 1:

Letter of Intent: All communities wishing to submit a WDG application must submit a Letter of Intent. Please refer to Page 5 of this document for Program deadlines and due dates. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Please refer to Page 5 of this document for Program deadlines and due dates.

Members of the 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.

Impact (40 points):

Conditions requiring a new or expanded service – 15 points

Issues faced by service providers including capacity, finances and staffing – 15 points

Why WDG funds are critical for the project – 10 points

Development Strategy (40 points):

A description of the new or expanded service, specific use of WDG funds, including how this service will resolve identified problems, and why this service will be more effective than existing services for the targeted beneficiaries – 10 points

How WD funds will be utilized to assist LMI persons or a HUD approved Limited Clientele group – 10 points

Project timeline, including a start date, tasks completed to date, how WDG funds will be expended in a timely manner, and method of tracking success – 10 points

Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries – 10 points

Citizen Participation (20 points):

How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

Effective use of any media (newspapers, radio, TV, etc.) to further public awareness and participation – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 5 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 – 5 points

6. Final Application Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

G. SMALL BUSINESS DEVELOPMENT CENTERS

The Small Business Development Center Technical Assistance (SBDCTA) provides funding for the provision of technical assistance to Maine micro-enterprise businesses through a partnership with Maine’s Small Business Development Centers.

1. Special Threshold Criteria and Certifications: SBDCTA will be distributed through a set aside of CDBG funds provided to the County of Aroostook as the lead community. The lead community will establish a legally binding contract with the SBDC as approved by OCD.

(a) Eligible Activities:

(i) Eligible activities under the SBDCTA are technical assistance to verified Maine micro-enterprise businesses and potential start-up companies which can be reasonably expected to become a micro-enterprise business.

(b) Communities ineligible for SBDCTA Assistance:

(i) Micro-enterprise businesses and potential start-up companies located in the communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Baldwin, Brunswick, Casco, Frye Island and Westbrook are not eligible for financial assistance under the SBDCTA.

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. Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended (see 24 CFR Section 570.483(d)), the applicant must address a community development need which meets all four criteria listed below:

(a) poses a serious and immediate threat to the health or welfare of the community;

(b) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(c) 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

(d) cannot be addressed with other sources of funding.

2. 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. This requirement may be waived by the Director of OCD with just cause.

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

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

Stage 1:

Application: An UN application must include the following:

documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

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;

information regarding when the urgent need condition occurred or developed into a threat to health and safety;

evidence confirming the applicant is unable to finance implementation on its own; and,

documentation that other financial resources are not available to implement the proposal.

a copy of a state or federal declaration of disaster.

(b) Stage 2:

Project Development: Prior to consideration of a grant award, all UN proposals must meet the four eligibility criteria listed above and the Program requirements. Project Development Phase applications must comply with the following:

Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

J. SPECIAL PROJECTS PROGRAM

The Special Projects Program provides funds to projects that are not funded through the normal CDBG application process. SP funds will be used for alternative OCD grant activities and partnerships that meet the community or economic development needs of municipalities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS

A. ECONOMIC DEVELOPMENT

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible Activities by Group Number:

Group Numbers Maximum Award

a) Grants to Municipalities: for acquisition, relocation, $500,000*

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with public

infrastructure projects such as water and sewer improvements,

flood and drainage improvements, broadband/wireless access,

publicly-owned commercial and industrial buildings, parking,

streets, curbs, gutters, sidewalks, etc. All public infrastructure

must be owned by the municipality or public or private utility

and be in support of an identified business.

b) Grants to Municipalities for Direct Business Support: $500,000*

for capital and non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial buildings,

job training, working capital and capital equipment and be in

support of an identified business. Acquisition is not an allowable

activity under this group.

2. Exclusions:

Applicants may apply in only one specific activity group

EDP funds cannot be used to refinance existing debt.

All EDP activities must be in support of an identified business; speculative activities are excluded.

Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

Communities received an EDP award, for the same business in a prior year, must document, at submission of Letter of Intent, employment baseline information to show the company is at or above the employment number achieved as a result of previous CDBG assistance.

*Start-up businesses are limited to a maximum grant award of $250,000

Waivers to increase the maximum grant award amount, in instances where the impact of the project is substantial and can be documented, both through project investment and job creation, may be requested to the Director of the Office of Community Development.

3. Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

4. Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

5. Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

6. Maximum Project Size for Utilizing EDP Funds: $3,000,000 Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

7. Program Requirements:

(a) EDP Letter of Intent Due Dates:

All communities wishing to submit an EDP application must submit a Letter of Intent. Please refer to Page 5 of this document for Program deadlines and due dates. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

.

(b) EDP Application Due Dates: By invitation only as a result of accepted Letter of Intent. Please refer to Page 5 of this document for Program deadlines and due dates.

(c) Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that a 100% cash match of the total EDP award will be provided. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

The retail business is located in either a downtown district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

9. Selection Process: The selection process will consist of two stages. Members of the 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 any applicable bonus points. The following criteria will be used:

(a) Stage 1:

Letter of Intent: All communities wishing to submit an EDP application must first submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application: Members of the Review Team will assess the applications based on the following criteria:

Problem Statement

Scope

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well-being including property tax analysis before and after the proposed activities.

Need Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

Solution

Project Description Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a result of the project, and how these jobs relate to persons of low/moderate income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility

Describe how the project is assured of successful completion within 12 months.

Identify what work, such as pre-engineering, construction and improvements, or fixture purchases that have been completed, or are in process, and exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

Citizen Participation

Public Hearing Process

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

10. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

11. Final Score. EDP applications will be awarded funding based on the consensus of the review team together with the analysis completed by OCD’s financial underwriter.

12. Project Development Phase: The project development phase must be completed within 3 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

B. MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM

The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

1. Eligible Activities: Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements; and eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements and buildings solely for residential use are not eligible.

2. Exclusions: See Section 1H (3)

3. Micro-Enterprise Assistance Loan Repayments – Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) as defined in Section 105(a)(15) of the Housing and Community Development Act of 1974, to manage repayments and subsequent relending. Micro-Enterprise Assistance Grants will be structured as forgivable loans.

4. Maximum MEA Grant Amount: $150,000 per Community per year.

5. Maximum Amount of Micro-Enterprise Assistance to an individual Business: $50,000

6. Project Benefit:

Micro-Enterprise Grant/Loan: Existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Applicants will need to submit a copy of their 2015 Income Tax filing. For those businesses whose owners are Low-to moderate-income existing employees’ incomes are not considered in meeting project benefit.

Businesses with owners who do not qualify as low-to moderate-income must create up to two (2) full-time equivalent (FTE) jobs (depending on funds requested), which must be taken by low-to moderate-income individuals. Proof of employee income will be required. Businesses applying for MEA funds must have a business plan not older than 18 months and must have met with a Small Business Development Center (SBDC) business counselor in the three months prior to submitting an application for assistance.

(c) 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.

7. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) assisting existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI, or 2) creating up to two FTE jobs which must be taken by low- to moderate income individuals, or 3) preventing or eliminating slum or blighting conditions conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD,. These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD

8. Selection Process: The selection process will consist of two stages:

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a MEA application must submit a Letter of Intent and Verification of CDBG National Objective to OCD. Please refer to Page 5 of this document for Program deadlines and due dates. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Please refer to Page 5 of this document for Program deadlines and due dates.

Members of the Review Team will assign a Point Total for each application reviewed. 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.

Impact (40 points):

State the problem and explain how it negatively impacts the local economy. – 30 points

Explain why MEA 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 – 10 points

Development Strategy (40 points):

Provide Identification and description of potential business grant/loan applicants and their needs – 15 points

Explain how the MEA project will stimulate business and assist in improving the area’s long-term viability. – 15 points

Provide a project timeline; list activities or actions completed to date. – 10 points

Citizen Participation (20 points):

Effective use of any media (newspapers, radio, TV, etc.). – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) in application and project development. – 5 points

Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in development of the application and project. – 5 points

How other local resources (cash and in-kind) are directly related to the project. – 5 points

9. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

10. Final Score – Each application will receive a Final Application Score consisting of the average of the scores assigned by members of the Review Team, added to any applicable Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

SECTION 4. TECHNICAL ASSISTANCE

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and provide technical assistance and outreach to communities.

Regional Providers will provide planning assistance to units of general local government in identifying community & economic development needs, developing, and administering CDBG projects. For purposes of this paragraph the term "planning assistance" means the facilitating of skills and knowledge in planning, developing, and administering CDBG activities for entities in non-entitlement areas that may need but do not possess such skills and knowledge.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

1. Local Government Grants from the State: Applicants receiving grants under the 2017 CDBG program but failing to have their projects substantially underway (environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD. Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

Unexpended funds remaining in the grantee’s CDBG account at grant closeout, funds remaining in a grantee’s award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2017 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for competitions that did not receive funding. The OCD may redistribute available funds to any project deemed to be in the best interest of, and that offer CDBG definable benefits to the State of Maine.

SECTION 6. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity in excess of $35,000. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 7. APPEALS

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

An applicant wishing to appeal DECD’s decision regarding their 2017 application restricted to errors of fact or procedure, may do so by submitting an appeal letter to the Director of the Office of Community Development within fifteen (15) days of the award announcement for that specific program.

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2017 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act and the Department of Housing and Urban Development’s citizen participation process will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3^RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

Chapter 46 Community Development Block Grant Program: 2018 Final Statement

Code Me. R. 19-498 Ch. 46 Community Development Block Grant (cdbg) Program {#sec-19-498-ch.-46 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 46}

E. PUBLIC SERVICE GRANT PROGRAM 19

H. SPECIAL PROJECTS PROGRAM 24

C. UNDERGROUND STORAGE TANK GRANT PROGRAM 33

The Office of Community Development reserves the right to fund only those applications deemed to be in the best interest of, and that offer definable benefits to, the State of Maine and the Community Development Block Grant Program. The Director of the Office of Community Development (OCD) may waive any requirement of the program provided such waiver would not be out of compliance with CDBG Program regulations.

19-498 CMR DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

CHAPTER 46 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

2018 PROGRAM STATEMENT

SUMMARY

This Program Statement describes the method by which 2018 Community Development Block Grant (CDBG) program funds will be distributed. The CDBG program is administered pursuant to 5 M.R.S.A 13073. The 2018 CDBG program was developed by the Department of Economic and Community Development (DECD) following a review of past programs, a forum with program constituents, 3 state-wide public forums and a comprehensive assessment of statewide community and economic development needs. In accordance with the Maine Administrative Procedures Act, DECD held a public hearing regarding the development of this Program Statement on November 09, 2017, Burton Cross Office Building, 3^rd floor, 111 Sewall Street, Augusta Maine.

SECTION 1. PROGRAM OVERVIEW

A. CDBG OBJECTIVES

All CDBG funded activities must meet one of three National Objectives of the program. These objectives are:

Benefit to low and moderate income persons;

Prevention and/or elimination of slum and blight conditions; and

Meeting community development needs having a particular urgency.

The Maine CDBG Program serves as a catalyst for local governments to implement programs which meet one of the three National Objectives, and:

Are part of a long-range community strategy;

Improve deteriorated residential and business districts and local economic conditions;

Provide the conditions and incentives for further public and private investments;

Foster partnerships between groups of municipalities, state and federal entities, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and

Minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

B. METHOD OF DISTRIBUTION:

DECD, through the Office of Community Development (OCD), offers programs to assist municipalities to achieve their community and economic development objectives. The 2018 Program Statement provides a description of the selection criteria that OCD will use to allocate CDBG funds among communities. Programs are grouped under the three categories listed below.

1. Community Development

a. Home Repair Network

b. Housing Assistance Grants

c. Public Infrastructure Grants

d. Downtown Revitalization Grants

e. Public Service Grants

f. Small Business Development Centers

g. Urgent Need Grants

h. Special Projects

2. Economic Development

a. Grants to Municipalities for Direct Business Support

b. Micro-Enterprise Grants

c. Underground Storage Tank Grants

3. Technical Assistance

C. STATE ADMINISTRATION:

1. General Administration Allocation: Pursuant to Section 106(d) (3) (A) of the Housing and Community Development Act of 1974, as amended (the Act), the DECD will utilize $100,000 plus 2% of its allocation from the Department of Housing and Urban Development (HUD) to administer Maine’s CDBG Program in accordance with Federal and State requirements.

2. Technical Assistance Administration Allocation: Pursuant to Section 106(d) (5) of the Act, DECD will utilize up to 1% of its allotment from HUD to provide technical assistance in accordance with Federal and State requirements.

3. Exclusion of Entitlement Communities and Counties: 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 to receive State CDBG program funds.

4. Grant Administration Requirement:

Grantees must employ, or contract with, a certified CDBG Grant Administrator. The Office of Community Development must approve waivers of this requirement in writing. All planning activities are exempt from this requirement.

D. PROGRAM TIMEFRAME

Application deadlines – All applications and Letters of Intent must be received at the physical location of the Office of Community Development on or before 4:00PM EST on the dates listed below. Faxed copies will not be accepted.

Program

Letter of Intent Due Date

Application Due Date

By Invitation Only

Downtown Revitalization

January 26, 2018

March 30, 2018

Economic Development

February 23, 2018

May 25, 2018

Housing Assistance

March 9, 2018

May 4, 2018

Micro-Enterprise Assistance

February 9, 2018

April 27, 2018

Public Infrastructure

January 19, 2018

March 30, 2018

Public Service

May 4, 2018

June 22, 2018

Underground Storage Tank

May 4, 2018

N/A

Special Projects/Urgent Need

N/A

TBD*

*Funding for these programs may be available based upon redistribution, reallocation and/or additional allocation from HUD.

E. 2018 PROGRAM BUDGET

2018 CDBG Budget $ 10,632,000

Administration 312,000

Technical Assistance Administration 106,000

Community Development

Downtown Revitalization Grants 300,000

Home Repair Network Program 1,700,000

Housing Assistance Grants 1,000,000

Public Service Grants 250,000

Public Infrastructure Grants 3,200,000

Regional Council Planning Assistance 114,000

Small Business Development Centers 50,000

Urgent Need Grants* 0

Special Projects* 0

Economic Development

Economic Development Grants 2,400,000

Micro-Enterprise Assistance Grants 700,000

Underground Storage Tank Grants 500,000

TOTAL Estimated 2018 CDBG Funds (final amount determined by HUD) 10,632,000

Funding for individual categories may change based on actual HUD award.

*Funding for these programs may be available based upon redistribution, reallocation and/or additional allocation from HUD.

F. CERTIFICATIONS

All communities applying for CDBG funds must certify that they will:

Minimize displacement and adhere to a locally adopted displacement policy in compliance with section 104(d) of the Housing and Community Development Act, 24 CFR part 42;

Take action to affirmatively further fair housing and comply with the provisions of Civil Rights Acts of 1964 and 1968;

Not attempt to recover certain capital costs of improvements funded in whole or in part with CDBG funds;

Establish a community development plan;

Meet all required State and Federal public participation requirements;

Comply with the Federal requirements of Section 319 of Public Law 101-121, codified at 31 U.S.C. Section 1352, regarding government-wide restriction on lobbying;

With the exception of administrative or personnel costs, verify that no person who is an employee, agent, consultant, officer, elected officer, or appointed official of State or local government or of any designated public agencies, or sub-recipients which are receiving CDBG funding may obtain a financial interest or benefit, have an interest in or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to CDBG activities;

Any person or firm associated with the administration of the CDBG program award is not on the U.S. Department of Labor’s Debarred and Suspended Contractor’s List; and

Review the project proposed in the application to ensure it complies with the community’s comprehensive plan and/or applicable state and local land use requirements.

G. GENERAL REQUIREMENTS:

1. Eligible Applicants: All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick and Frye Island are eligible to apply for and receive State CDBG program funds. County governments may apply on behalf of the Unorganized Territory. Groups of local governments may apply for multi-jurisdictional or joint projects. Multi-jurisdictional applications require designation of one local government as the lead applicant and consent for that designation by each participating local government. Counties may apply for the Public Service program on behalf of a collaboration of communities . Eligible applicants, including counties as defined above may apply for CDBG assistance on behalf of the five Maine Indian Tribes. Maine Indian Tribes are not themselves eligible applicants. Eligible applicants applying on behalf of a Maine Indian Tribe are permitted to apply in the same 2018 CDBG funding category as long as the eligible applicant will not directly benefit from the tribal CDBG project.

2. Eligible Activities: Applications will be reviewed to determine that the activities proposed are eligible under Section 105(a) of the Act. Ineligible activities will not be considered.

3. Project Benefit: Letters of Intent and/or required documentation for all programs will be reviewed to verify that the proposed activities meet at least one of the CDBG Program national objectives pursuant to section 104(b) 3 of the Act. If the activity does not meet a national objective the application will not be considered for funding.

4. “Growth Related” Preference: In accordance with M.R.S.A Title 30-A section 4349-A (3-A), OCD is required to give preference in the award of grants to capital investments defined as “growth related” in section 4301(5-B) to communities with certified growth management programs or that have adopted a comprehensive plan and implementation strategy consistent with the goals and guidelines of the subchapter. A municipality that does not obtain a certificate or finding of consistency within 4 years after receipt of the first installment of a financial assistance grant or rejection of an offer of financial assistance will receive a low priority.

5. Repayment of Grant Funds: Recipients must repay on demand to the State of Maine all funds expended if CDBG program benefits are not achieved as specified in their contract with the DECD.

6. Application Threshold: Incomplete and/or non-conforming applications which do not meet the specifications set forth in the 2018 Program Statement and 2018 CDBG Application Packages will be removed from the scoring process during the threshold review.

7. Financial Commitments: Applications for projects not demonstrating a firm financial commitment as required in the application materials will be removed from the scoring process during the threshold review.

8. Restriction of Grant Awards: OCD may deny or restrict the award of grants to communities with outstanding audit(s), monitoring findings, or a record of administrative misconduct.

9. Past Performance: In order to be eligible to apply for a 2018 Community Development Block Grant program, communities that received CDBG grants in or prior to 2014 must have finally closed out their grants prior to application due date. Communities that received CDBG grants in 2015 must have conditionally closed their grants prior to application due date. Communities that received CDBG grants in 2016 must have expended 50% of their benefit activity funds prior to application due date. Communities that received 2017 CDBG grants must be under contract with DECD. All Past Performance Criteria will be strictly enforced; however these criteria may be waived for just cause by the Director of OCD.

10. Grant Termination: OCD may terminate a community’s grant if progress on the project is not apparent within 6 months from the date of contract signing. The Office of Community Development may grant waivers for just cause.

H. EXCLUSIONS:

1. Multiple Grants: Eligible applicants may not apply for, or benefit from, more than one grant per program category in any grant year. Communities participating in multi-jurisdictional applications may submit their own applications for the same program as long as they demonstrate that there will not be a duplication of program activity/benefit.

2. Housing Assistance Grant Program: Communities are not eligible to apply for a HA grant unless they have an identified multi-family project with a developer approved by OCD.

I. AWARD PROCESS:

1. Scoring:

The Review Team will assign a score to each of the scoring areas and the application’s total score will be determined by the sum of the Review Team’s scores. The top scoring applications will be considered for an invitation into the Project Development Phase.

An invitation into the Project Development Phase is not a guarantee of funding or permission to obligate funds. Successful communities will receive an amount determined by the OCD for their project.

2. Project Development Phase:

a. Project Planning: Details of the project including pre-engineering, bid requirements, budget, and/or grant administration.

b. Acceptance of Funds: Public Hearing and Legislative Body Approval for the acceptance of funds.

c. Local Certifications: Local adoption of State and Federal regulations..

d. Project Benefit: Verification that proposed activities meet or will meet one of the CDBG Program National Objectives.

e. Environmental Review: Review of project for compliance with State and Federal Environmental Regulations.

3. Project Development Timeframe and Assistance:

The goal of the Project Development Phase is a grant contract for CDBG funds. An OCD Development Program Manager will be assigned to work closely with each community to finalize their project. OCD will rescind the CDBG program award offer if the community is not under contract within six months of the date of the award offer and invitation into the project development phase process. The Office of Community Development may grant waivers for just cause.

SECTION 2. COMMUNITY DEVELOPMENT PROGRAMS

HOUSING ASSISTANCE GRANT PROGRAM

The Housing Assistance Grant (HA) Program provides funding to address housing problems of low-and moderate-income persons. Housing Assistance Program (HA) funds will be distributed through an annual grant application selection process.

1. Eligibility Requirements for Housing Assistance Applications: Communities must have an identified multi-family project with a developer approved by OCD.

2. Eligible Activities: Eligible HA activities are rehabilitation of occupied or vacant multi-family housing units and conversion of non-residential structures.

3. Matching Funds: Applicants for housing activities must provide a cash match of at least 20% of the total HA project cost.

4. Maximum HA Grant Amount: $1,000,000

5. Maximum Administrative Costs: The HA Program may allow 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.

6. Selection Process: The selection process for all HA applications will consist of two stages:

(a)Stage 1:

Letter of Intent : All communities wishing to submit a HA application must submit a Letter of Intent. After review for completeness and eligibility, units of general local government may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b)Stage 2:

Application : The maximum length of an application is four pages (not counting required attachments). Please refer to Page 5 of this document for Program deadlines and due dates. Members of the 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.

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

Development Strategy (40 points):

A description of the plan proposed to implement the housing project – 20 points

Summary of the activities and use of HA funds –20 points

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

11. Final Application Score – Each application will receive a Final Application Score assigned by members of the Review Team. The top scoring applicants will be considered for an invitation to proceed to the Project Development Phase as funds allow.

HOME REPAIR NETWORK PROGRAM

The Home Repair Network Program (HRN) provides funding statewide to address housing problems of low- and moderate-income persons. This program will provide housing rehabilitation services administered on a regional basis throughout Maine, as stated 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)to provide Housing Rehabilitation Services in the region. Participation in the HRN delivery system is subject to the approval of the Director of the OCD.

2. Eligible Activities: 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, energy conservation, removal/mitigation of lead-based paint, asbestos, radon, or other hazardous material, removal of architectural barriers and the Critical Access Ramp Program (via Alpha One).

3. Housing units ineligible for Home Repair Network assistance: 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.

4. Maximum HRN Grant Amount: $1,700,000. Allocations to each of the established regions will be determined by the Office of Community Development.

5. Maximum Administrative Costs: The HRN Program allows expenditures for general and rehabilitation administration. The total general and rehabilitation administration expenditures may not exceed 20% of the grant amount. The City of Rockland is allowed a maximum of $5,000 in administrative funding.

6. Section 8 Housing Quality Standards: All units assisted or created with HRN funds will strive to meet HUD Section 8 Minimum Housing Quality Standards if possible. This does not apply to projects undertaken to correct specific emergency health and safety issues only, i.e. wells, septic, heating units, removal of hazardous materials, energy conservation etc. In addition, all units must comply with other applicable standards included in the HRN contract.

PUBLIC INFRASTRUCTURE GRANT PROGRAM

Letters of Intent will be accepted for the 2018 and 2019 Program Years. The communities invited to submit applications in 2018 may potentially be funded in 2018, or 2019.

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. 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.

2. Exclusions: See Section 1H (1) (2).

3. 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 etc. contributed to the project.

4. Program Activities: Applicants may apply for one or more activities within a specific activity group. Applicants cannot mix activities from different activity groups in an application.

Activity Group Numbers:

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. Maximum Amount: $1,000,000

Infrastructure in support of new LMI affordable fully financed housing.

Maximum Amount: $1,000,000

5. 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.

6. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons via Census information, or a certified target area survey.

7. Selection Process: The selection process for all PI applications will consist of two stages:

(a) Stage 1:

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. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application : Please refer to Page 5 of this document for Program deadlines and due dates.

Each application will be rated in relation to all others in a two-stage process. Members of the 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.

Impact (40 points):

A description of why the project is necessary, previous efforts to address needs, and how the project was prioritized locally – 6 points

What engineering firms and/or regulatory agencies have verified the infrastructure problems, and what studies and testing have been done that corroborate the need – 6 points

How the verified health, safety and welfare conditions affect users and others in the community and region – 8 points

Size and demographic makeup of user base and target area of projected infrastructure project – 10 points

Why PI funds are necessary to fill a funding gap, what other state and/or federal agency funding is involved, capacity of the utility or town to borrow, and how match funds will work with PI funds to implement the project – 10 points

Development Strategy (40 points):

A description of the proposed infrastructure improvements, including size, capacity, design, utilities and fit with existing systems – 10 points

Positive impacts on health, safety and welfare of users directly attributable to proposed PI expenditures – 5 points

Extent of financial benefits to users; list current user rates, what rates will be if PI funding is approved, and list what user rates will be if the project is built without PI funding – 15 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 – 10 points

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 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

development of the application and project and how the required public hearing relates

8. Final Score Each application will receive a Final Application Score assigned by members of the Review Team. The top scoring applicants will be considered for an invitation to proceed to the Project Development Phase as funds allow.

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 in 30-A M.R.S.A. Section 4301(5-A).

1. Eligible activities - include all those eligible under the Public Facilities, Public Infrastructure, Housing Assistance or Micro Enterprise Assistance programs as relevant to the revitalization of a downtown district; and eligible planning activities necessary to complete the Project Development Phase.

2. Exclusions: See Section 1H (4) (5).

3. Match – All communities applying for DR Program funds must certify that they will provide a minimum cash match equivalent to 25 percent of the total grant award. This minimum 25% match must consist of private sector investments directly related to the project. Any additional project funding over the minimum 25% may come from any source public and/or private. All match must be fully committed at time of application.

4. 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.

5. Maximum DR Award: $300,000

6. 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.

7. 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 town-wide income survey, or an officially adopted declaration of slum/blight conditions conforming to the requirements of Title 30-A M.R.S.A § 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.

8. Selection Process – The selection process will consist of two stages

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective:

All communities wishing to submit a DR application must submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application: The maximum length of an application is six pages, not counting required attachments.

Please refer to Page 5 of this document for Program deadlines and due dates.

Each application will be rated in relation to all others. Members of the 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.

Impact (40 points):

Describe the scope and magnitude of the problems you seek to address, and how they are obstacles for revitalizing the downtown. – 8 points

Explain how these problems negatively impact the viability of existing downtown businesses, or new development and expansion. – 12 points

Demonstrate how the problems affect LMI persons, or how they contribute to slum/blight conditions. – 8 points

Explain why DR funds are necessary for the project, and describe what efforts have been made and where you have searched to secure other grant or loan funds, – 12 points

Development of Strategy (40 points):

Clearly link the proposed DR activities to action steps outlined in your community’s Downtown Plan, and explain how the project will stimulate economic activity in the downtown. – 12 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. – 12 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. – 8 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. – 8 points

Citizen Participation (20 points):

Effective use of media (newspapers, radio, TV, web 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

Maine Downtown Center Designation Bonus – 3 bonus points will be assigned to each applicant community designated as a Main Street Maine Community by the Maine Downtown Center, and a 1 bonus point will be awarded to those communities designated as a member of the Maine Downtown Network.

Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

9. Final Application Score – Each application will receive a Final Application Score assigned by members of the Review Team plus any applicable Maine Downtown Center Bonus. The top scoring applicants will be considered for an invitation to proceed to the Project Development Phase as funds allow.

PUBLIC SERVICE GRANT PROGRAM

The Public Service Grant (PSG) Program addresses community and business resource needs by providing funding for operating expenses, equipment, and program materials for activities which will benefit low/moderate income (LMI) persons.

Eligible Activities: Eligible activities include but are not limited to, operating and program material expenses for the purpose of providing workforce training and skills development, child care, health care, recreation programs, education programs, public safety services, fair housing activities, senior citizen services, homeless services, drug abuse/mental health counseling and treatment.

2. Project Benefit: Eligible PSG projects must provide benefits to one of the groups of persons listed below and be in support of an identified business or non-profit entity:

(a) Participants in a program where 51% or greater of the persons receiving benefit from PSG activities are determined to be LMI.

(b) 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

3. All communities applying for PSG funds must certify that: The activity represents a new service to the community; or a quantifiable increase in the level of an existing service;

4. Maximum PSG Amount: $50,000

5. Selection Process: The selection process will consist of two stages

(a) Stage 1:

Letter of Intent: All communities wishing to submit a PSG application must submit a Letter of Intent. Please refer to Page 5 of this document for Program deadlines and due dates. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Please refer to Page 5 of this document for Program deadlines and due dates.

Members of the 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.

Impact (40 points):

Conditions requiring a new or expanded service – 15 points

Issues faced by service providers including capacity, finances and staffing – 15 points

Why PSG funds are critical for the project – 10 points

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 – 10 points

How PSG funds will be utilized to assist LMI persons or a HUD approved Limited Clientele group – 10 points

Project timeline, including a start date, tasks completed to date, how PSG funds will be expended in a timely manner, and method of tracking success – 10 points

Capacity and qualifications of the service provider implementing the project, including familiarity with the needs of project beneficiaries – 10 points

Citizen Participation (20 points):

How overall citizen participation process directly relates to identification of solution strategies and application development - 5 points

Effective use of any media (newspapers, radio, TV, etc.) to further public awareness and participation – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) on application and project development – 5 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 – 5 points

6. Final Application Score – Each application will receive a Final Application Score assigned by members of the Review Team. The top scoring applicants will be considered for an invitation to proceed to the Project Development Phase as funds allow.

G. SMALL BUSINESS DEVELOPMENT CENTERS

The Small Business Development Center Technical Assistance (SBDCTA) provides funding for the provision of technical assistance to Maine micro-enterprise businesses through a partnership with Maine’s Small Business Development Centers.

1. Special Threshold Criteria and Certifications: SBDCTA will be distributed through a set aside of CDBG funds provided to the County of Aroostook as the lead community. The lead community will establish a legally binding contract with the SBDC as approved by OCD.

(a) Eligible Activities:

(i) Eligible activities under the SBDCTA are technical assistance to verified Maine micro-enterprise businesses and potential start-up companies which can be reasonably expected to become a micro-enterprise business.

(b) Communities ineligible for SBDCTA Assistance:

(i)Micro-enterprise businesses and potential start-up companies located in the 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 SBDCTA.

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. Project Eligibility: Pursuant to Section 104 (b) 3 of the Housing and Community Development Act of 1974, as amended (see 24 CFR Section 570.483(d)), the applicant must address a community development need which meets all four criteria listed below:

(a) poses a serious and immediate threat to the health or welfare of the community;

(b) originated or became a direct threat to public health and safety no more than 18 months prior to submission of the application;

(c) 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

(d) cannot be addressed with other sources of funding.

2. 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. This requirement may be waived by the Director of OCD with just cause.

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

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

Stage 1:

Application: An UN application must include the following:

documentation that the emergency situation was prompted by natural or man-made causes that pose an imminent threat of injury or loss of life;

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;

information regarding when the urgent need condition occurred or developed into a threat to health and safety;

evidence confirming the applicant is unable to finance implementation on its own; and,

documentation that other financial resources are not available to implement the proposal.

a copy of a state or federal declaration of disaster.

(b) Stage 2:

Project Development: Prior to consideration of a grant award, all UN proposals must meet the four eligibility criteria listed above and the Program requirements. Project Development Phase applications must comply with the following:

Project Planning: Details of the project including engineering, cost analysis, feasibility, and structural analysis as necessary.

Management Plan: Details of the structure and methods established by the community for program management.

Regulations: Project Development Phase applications will be reviewed for compliance with State and Federal regulations.

4. Approval Process: 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 Office of Community Development’s decision will initiate the Project Development Phase process necessary for contract award.

J. SPECIAL PROJECTS PROGRAM

The Special Projects Program provides funds to projects that are not funded through the normal CDBG application process. SP funds will be used for alternative OCD grant activities and partnerships that meet the community or economic development needs of municipalities and CDBG National Objectives in the State of Maine. Approval for the use of SPMF funds is through the Director, Office of Community Development.

SECTION 3. ECONOMIC DEVELOPMENT PROGRAMS

A. ECONOMIC DEVELOPMENT

The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons.

1. Eligible Activities by Group Number:

Group Numbers Maximum Award

a) Grants to Municipalities: for acquisition, relocation, $500,000*

demolition, clearance, construction, reconstruction,

installation and rehabilitation associated with public

infrastructure projects. All public infrastructure must

be owned by the municipality, or public or private utility,

and be in support of an identified business.

b) Grants to Municipalities for Direct Business Support: $500,000*

for capital and non-capital equipment, land and site improvements,

rehabilitation or construction of commercial or industrial buildings,

job training, working capital and capital equipment and be in

support of an identified business. Acquisition is not an allowable

activity under this group.

2. Exclusions:

Applicants may apply in only one specific activity group

EDP funds cannot be used to refinance existing debt.

All EDP activities must be in support of an identified business; speculative activities are excluded.

Communities receiving an EDP award may not receive any other EDP award for the same project or business during the same program year or for the same project or business from a prior program year that has not met final closeout status.

Communities that received an EDP award, for the same business in a prior year, must document, at submission of Letter of Intent, employment baseline information to show the company is at or above the employment number achieved as a result of previous CDBG assistance and that the CDBG assistance is vital to the project and cannot be obtained elsewhere.

*Start-up businesses are limited to a maximum grant award of $250,000

Waivers to increase the maximum grant award amount, in instances where the impact of the project is substantial and can be documented, both through project investment and job creation, may be requested to the Director of the Office of Community Development.

3. Project Benefit: All projects must document that at a minimum, 51% of all jobs created or retained as a result of the funded activity must be taken/held by persons of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award, new jobs to that community and not associated with any other branches of the assisted business located in another community. Transfer positions cannot be counted toward the job creation/retention requirements. In the event that job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.

4. Program Dollars per Job: The maximum CDBG participation per job created or retained with EDP funds is $30,000.

5. Full Time permanent Jobs: In determining CDBG National Objective compliance with jobs created or retained only Permanent jobs may be counted; temporary jobs may not. Full time jobs require a worker to work at least 1750 hours per year. Part time jobs require a worker to work at least 875 hours but less than 1750 hours per year. Part-time jobs must be converted to Full Time Equivalents (FTE). An FTE is defined as two part time jobs. Seasonal jobs may count only if the seasonal job lasts long enough and provides sufficient income to be considered the employee's principal occupation. (Contact OCD prior to counting seasonal jobs towards LMI benefit.) All permanent jobs created by the project must be counted, regardless of funding source(s). Jobs indirectly created by the project (i.e., remote location, “trickle down” jobs) do not count.

6. Maximum Project Size for Utilizing EDP Funds: $3,000,000 Phasing of projects to make the total cost appear to be below the maximum project size is expressly forbidden.

7. Program Requirements:

(a) EDP Letter of Intent Due Dates:

All communities wishing to submit an EDP application must submit a Letter of Intent. Please refer to Page 5 of this document for Program deadlines and due dates. After review for completeness and eligibility, units of general local governments may be invited to make a full application.

(b) EDP Application Due Dates: By invitation only as a result of accepted Letter of Intent. Please refer to Page 5 of this document for Program deadlines and due dates.

(c) Necessary and Appropriate: EDP assistance to a business must be for projects that are necessary and appropriate. The application must describe the need for program assistance, reasonableness of the amount requested, and assurance that the assistance provided is commensurate with the community benefits that will accrue from the project. Documentation must be provided that the project cannot proceed without program participation and that program funds provide gap financing.

(d) Compliance with Benefit Certification Requirements: The business and

the applicant community, under the direction of the Program Manager assigned to the project, must comply with documentation requirements for jobs created/jobs retained on a project including but not limited to benefit surveys, income verification and periodic reporting that the Office of Community Development may require.

(e) EDP Matching Funds Requirements: Communities applying for Economic Development Program funds must certify that a 100% cash match of the total EDP award will be provided. Matching funds must be directly related to the activities undertaken with EDP funding.

(f) EDP Projects in Support of Retail Businesses: OCD may accept an EDP

application in support of a retail business activity only under the following

limited conditions:

The retail business represents the provisions of new products and services previously unavailable in the community or is a tourism-related business; and

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

The retail business is located in either a downtown district meeting the definition in 30-A M.R.S. Section 4301 (5-A); or a designated local growth area contained in an adopted and consistent comprehensive plan; and

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

9. Selection Process: The selection process will consist of two stages. Members of the 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 any applicable bonus points. The following criteria will be used:

(a) Stage 1:

Letter of Intent: All communities wishing to submit an EDP application must first submit a Letter of Intent. After review for completeness and eligibility, units of general local governments may be invited to make a full application. Please refer to Page 5 of this document for Program deadlines and due dates.

(b) Stage 2:

Application: Members of the Review Team will assess the applications based on the following criteria:

Problem Statement

Scope

Detail the problems or needs facing the community/business to be assisted.

Tell how these problems relate to job creation or job retention activities.

Describe how the overall financial viability of the community/business is affected by the problems or needs.

Impact Identify how employment opportunities for persons of low/moderate income are negatively affected by the identified problems.

Emphasize the importance of the affected business in relation to the stability of the community/region and its current financial well-being including property tax analysis before and after the proposed activities.

Need Identify reasons why the community/business is unable to finance the proposed project on its own, or with assistance from other sources.

20

Include a narrative that highlights any recent efforts by the community/business to assist job creation/retention activities.

Solution

Project Description Detail the activities that the community/business will undertake using EDP funds to resolve the problems/needs presented in the Problem Statement.

Identify, in detail, the specific acquisition, equipment, real property improvements and/or fixtures that will be installed, modified, and upgraded, etc., with EDP funds.

Explain how the solution directly solves the identified problems/needs.

Include a firm figure of the number of jobs to be created or retained as a

result of the project, and how these jobs relate to persons of low/moderate

income.

Clearly state the amount of EDP funds sought and how they will fit into the overall financing for the project.

Include a graphic description (aerial photo, map, and sketch) of the sites involved. Provide a generalized location of the site relative to the community and a copy of a floodplain map showing the project location. Include existing and proposed site and/or building improvements.

Effect on Assisted Business

Describe the effect the EDP award and completion of the project, as a whole, will have on the ability of the community/business to remain competitive, and create/retain quality jobs.

Describe the market including identification of competitors, price structure, resource availability, operating/manufacturing costs, transportation costs, demand, and other factors influencing the marketability of the product or service proposed. Also identify all project risks and the extent of the risks.

Project Timeline and Feasibility

Describe how the project is assured of successful completion within 12 months.

Identify what work, such as pre-engineering, construction and improvements, or fixture purchases that have been completed, or are in process, and exactly how these relate to the proposed EDP project.

Provide background information (including resumes) for the owners and/or managers of the business and specific information about the skills and experiences of the owners and/or managers as related to the successful management of the business and proposed project.

Include a concise timetable for project implementation.

Citizen Participation

Public Hearing Process

Describe how citizen participation contributed to the actual development of this application, including how the required public hearing contributed to the process. (Submit a public hearing record consisting of the published public hearing notice, hearing minutes, and attendance list with the original and all three copies of the application.)

Business/Local Involvement Outline other input from businesses, chambers of commerce, development organizations, local groups and individuals have had in increasing the citizen participation process for the proposed project.

Highlight how the use of any media (TV, radio, newspapers, etc.) increased public awareness and participation in the EDP project.

10. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

11. Final Score. EDP applications will be awarded funding based on the consensus of the review team together with the analysis completed by OCD’s financial underwriter.

12. Project Development Phase: The project development phase must be completed within 6 months from the date of award. The goal of this phase is a grant contract for CDBG funds. During this phase an OCD Development Program Manager will be assigned to work with the community to finalize their project. OCD reserves the right to rescind the CDBG program award of the community is not under contract within this time. The Office of Community Development may grant waivers for just cause.

B. MICRO-ENTERPRISE ASSISTANCE GRANT PROGRAM

The Micro-Enterprise Assistance Grant (MEA) Program provides grant funds to assist in innovative solutions to problems faced by micro-enterprise businesses. Assistance to businesses may be in the form of grants or loans at the discretion of the community.

1. Eligible Activities: Eligible activities under the Micro-Enterprise Assistance category are grants or loans to for-profit businesses that can be used for working capital and interior renovations, façade grants or loans for exterior improvements, including signage, painting, siding, awnings, lighting, display windows and other approved improvements; and eligible planning activities necessary to complete the Project Development Phase. Sewer, water, storm drainage, parking, roads or streets and other infrastructure improvements and buildings solely for residential use are not eligible.

2. Exclusions: See Section 1H (3)

3. Micro-Enterprise Assistance Loan Repayments – Communities that establish Micro-Enterprise Assistance as loans, and anticipate receiving $35,000 or more in loan repayments, must utilize the services of a Community Development Financial Institution (CDFI) or a Community Based Development Organization (CBDO) as defined in Section 105(a)(15) of the Housing and Community Development Act of 1974, to manage repayments and subsequent relending. Micro-Enterprise Assistance Grants will be structured as forgivable loans.

4. Maximum MEA Grant Amount: $150,000 per Community per year.

5. Maximum Amount of Micro-Enterprise Assistance to an individual Business: $50,000

6. Project Benefit:

Micro-Enterprise Grant/Loan: Existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI will meet the project benefit. Applicants will need to submit a copy of their 2016 Income Tax filing with their Letter of Intent. For those businesses whose owners are Low-to moderate-income existing employees’ incomes are not considered in meeting project benefit.

Businesses with owners who do not qualify as low-to moderate-income must create up to two (2) full-time equivalent (FTE) jobs (depending on funds requested), which must be taken by low-to moderate-income individuals. The new jobs must be maintained for a minimum of one year. Proof of employee income for 12 months prior to date of hire will be required. Businesses applying for MEA funds must have a business plan not older than 18 months and must have met with a Small Business Development Center (SBDC) business counselor in the three months prior to submitting an application for assistance.

(c) 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 is submitted showing that a business qualifies under a spot blight basis.

7. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of 1) assisting existing or developing businesses that have five or fewer employees, one of whom owns the enterprise, and whose family income is LMI, or 2) creating up to two FTE jobs which must be taken by low- to moderate income individuals, or 3) preventing or eliminating slum or blighting conditions conforming to the requirements of Title 30-A M.R.S.A. § 5202 and HUD,. These demonstrations must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD

8. Selection Process: The selection process will consist of two stages:

(a) Stage 1:

Letter of Intent and Verification of CDBG National Objective: All communities wishing to submit a MEA application must submit a Letter of Intent and Verification of CDBG National Objective to OCD. Please refer to Page 5 of this document for Program deadlines and due dates. After review for completeness and eligibility, units of general local governments will be invited to make a full application.

(b) Stage 2:

Application: The maximum length of an application is four pages, not counting required attachments. Please refer to Page 5 of this document for Program deadlines and due dates.

Members of the Review Team will assign a Point Total for each application reviewed. 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.

Impact (40 points):

State the problem and explain how it negatively impacts the local economy. – 30 points

Explain why MEA 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 – 10 points

Development Strategy (40 points):

Provide Identification and description of potential business grant/loan applicants and their needs – 15 points

Explain how the MEA project will stimulate business and assist in improving the area’s long-term viability. – 15 points

Provide a project timeline; list activities or actions completed to date. – 10 points

Citizen Participation (20 points):

Effective use of any media (newspapers, radio, TV, etc.). – 5 points

Relevance of listed meeting/hearing activities/comments (not counting required public hearing) in application and project development. – 5 points

Involvement of downtown and local businesses, Chambers of Commerce, development groups or other business related organizations in development of the application and project. – 5 points

How other local resources (cash and in-kind) are directly related to the project. – 5 points

9. Business Friendly Community Designation Bonus – 3 bonus points will be assigned to each applicant community certified as a Business-Friendly Community at time of application.

10. Final Score – Each application will receive a Final Application Score consisting of the sum of the scores assigned by members of the Review Team, added to any applicable Business Friendly Community Bonus. Starting at the top of the scoring list, applicants will be invited to proceed to the Project Development Phase as funds allow.

C. UNDERGROUND STORAGE TANK PROGRAM

The Underground Storage Tank (UST) Program provides gap funding for petroleum tank replacement activities, which alleviates a threat to the health and safety of the general public. UST Program funds will be distributed through a set aside of CDBG funds provided to the County of Aroostook as the lead community who will disburse funds to approved projects.

1. Eligible Activities: Eligible activities in the UST program are: purchase of new tanks, removal of existing tanks and installation of new ones by a Certified Underground Oil Storage Tank Installer (CTI). Tanks must meet the design and installation requirements of the Maine Department of Environmental Protection (DEP).

2. Match: All entities applying for UST funds must certify that they will provide a cash match of at least 20% percent of the total grant award. This match may consist of all non-CDBG loans, grants, etc. contributed to the project.

3. Maximum UST Grant Amount: $ 50,000

4. Demonstration of Need: Applicants must have demonstrated that they are unable to complete the project without the CDBG funds. This demonstration must include evidence of other available resources contacted.

5. Demonstration of National Objective: Applicants must demonstrate that the project meets the National Objective of benefiting 51% or greater low/moderate income persons. This demonstration must be made as part of the Letter of Intent and Verification of CDBG National Objective submitted to OCD.

6. Priority for Underground Storage Tank Projects: Applicants who are on DEP’s list of critical projects and have received notification that their UST must be removed will be given priority during the evaluation and selection process for awarding UST program funds.

7. Selection Process: The selection process will consist of review of the information provided in Letter of Intent and consultation with DEP to determine the projects that are the most critical and are the highest priority for removal.

SECTION 4. TECHNICAL ASSISTANCE

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator’s Certification Training Program, and provide technical assistance and outreach to communities.

Regional Providers will provide planning assistance to units of general local government in identifying community & economic development needs, developing, and administering CDBG projects. For purposes of this paragraph the term "planning assistance" means the facilitating of skills and knowledge in planning, developing, and administering CDBG activities for entities in non-entitlement areas that may need but do not possess such skills and knowledge.

SECTION 5. REDISTRIBUTION OF GRANT FUNDS

This section describes the methods by which undistributed funds, disencumbered funds, additional funds received from HUD, and program income will be redistributed.

1. Local Government Grants from the State: Applicants receiving grants under the 2018 CDBG program but failing to have their projects substantially underway (environmental review complete, program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD.

Rescinded grant funds may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

Unexpended funds remaining in the grantee’s CDBG account at grant closeout, funds remaining in a grantee’s award but not requested upon grant closeout, and funds returned to DECD because of disallowed costs may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

2. Unallocated State Grants to Local Governments: Unallocated grant funds resulting from lack of adequate program competition or demand in any of the available 2018 CDBG programs and any additional funds allocated by HUD may be added to any open CDBG contract and can be used to make additional awards under any eligible CDBG program activity.

3. Basis for Redistribution: The decision to redistribute funds will be made after staff evaluation of the following: the total funds available, new requests for funding, requests for additional funding from current CDBG grantees and applicants for competitions that did not receive funding. The OCD may redistribute available funds to any project deemed to be in the best interest of, and that offer CDBG definable benefits to the State of Maine.

SECTION 6. PROGRAM INCOME

As used in this Proposed Statement, “Program Income” means the gross income received by a grantee from any grant-supported activity in excess of $35,000. Applicants will refer to the CDBG Regulations and the Maine Office of Community Development policies on program income.

SECTION 7. APPEALS

Appeals of award decisions are restricted to errors of fact or procedure. Appeals in the areas of judgment qualitative scoring will not be entertained. In the case of a successful appeal, funds will be reserved for the project from available or subsequent CDBG funds.

An applicant wishing to appeal DECD’s decision regarding their 2018 application restricted to errors of fact or procedure, may do so by submitting an appeal letter to the Director of the Office of Community Development within fifteen (15) days of the award announcement for that specific program.

SECTION 8. AMENDMENTS TO THE PROGRAM STATEMENT

The State may amend the 2018 Program Statement from time to time in accordance with the same procedures required for the preparation and submission of the program statement. The State of Maine’s Administrative Procedures Act and the Department of Housing and Urban Development’s citizen participation process will guide the amendment process.

THIS MATERIAL IS AVAILABLE IN ALTERNATIVE FORMAT

UPON REQUEST

BY CONTACTING:

OFFICE OF COMMUNITY DEVELOPMENT

111 SEWALL STREET, 3^RD FLOOR

59 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0059

TELEPHONE (207) 624-7484

TTY: 1-800-437-1220

ALSO AVAILABLE ON THE OFFICE OF COMMUNITY DEVELOPMENT WEB SITE:

www.meocd.org

The Maine CDBG Program is Funded by:

Chapter 300 Certification Standards for Municipal Code Enforcement Officers and Third-Party Inspectors

Code Me. R. 19-498 Ch. 300 Certification Standards for Municipal Code Enforcement Officers and Third-Party Inspectors {#sec-19-498-ch.-300 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-498 Ch. 300}

SUMMARY: This chapter establishes the standards and procedures that the Department of Economic and Community Development’s Office of Community Development uses to certify and recertify local code enforcement officers and third-party inspectors, as required by 30-A MRSA, section 4451, subsection 5. This chapter repeals and replaces the chapter adopted on July 4, 2010.

SECTION 1: PURPOSE

The purpose of this chapter is to establish the standards and procedures that the Department of Economic and Community Development’s Office of Community Development uses to certify and recertify local code enforcement officers, local plumbing inspectors, building officials, and third-party inspectors. The chapter establishes the minimum standards for all code enforcement officers appointed in Maine and recertification standards that recognize the experience and diverse job responsibilities of Maine’s professional code enforcement community. The rules are intended to be flexible to accommodate the range of experiences of code enforcement officers, while laying out basic requirements for newly-appointed code enforcement officers.

SECTION 2: DEFINITIONS

The following terms, as used in this chapter, shall have the following meanings, unless the context indicates otherwise.

80K certification. “80K certification” means a written notice from the Office that an eligible individual has demonstrated an understanding with District Court procedures for the prosecution of alleged land use violations pursuant to Rule 80K of the Maine Rules of Civil Procedures and 30-A MRSA, section 4453.

Any building code. “Any building code” means a building code or standard locally-adopted based on the Maine model building code under 10 MRSA, chapter 1101 or a national model building code used to regulate the construction of buildings. A life safety or fire code is not considered as any building code for the purposes of this definition.

Basic training. “Basic training” means the education workshops coordinated through the Office, which are presented at an introductory level and are applicable to newly-appointed code enforcement officers.

Building. “Building” means any structure used or intended for supporting or sheltering any use or occupancy.

Building standards. “Building standards” means the laws, codes, standards, rules, and ordinances related to 30-A MRSA, chapter 141 that grants municipal ordinance powers; 30-A MRSA, chapter 185, subchapter 3 that provides for municipal regulation of construction and improvements; 25 MRSA, chapter 313 that regulates municipal inspections of buildings; and 10 MRSA, chapter 1103, the Maine Uniform Building Code , the Maine Uniform Energy Code , and the Maine Uniform Building and Energy Code that consists of the: commercial building code, commercial energy code, indoor commercial ventilation code, indoor residential ventilation code, residential building code, residential energy code, and residential radon code.

Building official. “Building official” means an individual appointed by a municipality pursuant to 25 MRSA, section 2351. For purposes of this rule, a code enforcement officer is considered a building official when appointed by the municipality under section 2351 to administer any of the building codes that are part of the building standards specific area.

Certification. “Certification” means a written notice from the Office that an individual may act as a local code enforcement officer or a third-party inspector having demonstrated a basic understanding of the laws, codes, standards, rules, and ordinances of those specific areas of their job responsibility and, for a code enforcement officer, the legal and administrative requirements of permitting and enforcement. This certification does not replace any other certification required by state or local law or rule.

Code enforcement officer. “Code enforcement officer” means an individual who has been appointed and sworn by a municipality to enforce laws and ordinances in any one or more of the following specific areas of responsibility: A) shoreland zoning under 38 MRSA, chapter 3, subchapter 1, article 2-B; B) comprehensive planning and land use under 30-A MRSA, chapter 187; C) internal plumbing under 30-A MRSA, chapter 185, subchapter 3; D) subsurface wastewater disposal under 30-A MRSA, chapter 185, subchapter 3; and E) building standards under 30-A MRSA, chapters 141 and 185; 10 MRSA, chapter 1103; and 25 MRSA, chapter 313 and 331.

Comprehensive planning and land use. “Comprehensive planning and land use” means the laws, codes, standards, rules, and ordinances related to 30-A MRSA, Chapter 187.

Commercial building code. “Commercial building code” means the International Building Code published by the International Code Council and as adopted and as may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Commercial energy code. “Commercial energy code” means the International Energy Conservation Code publishing by the International Code Council and as adopted and as may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21 or ASHRAE Standard 90.1-2007, Energy Standard for Buildings Except Low-Rise Residential Buildings, published by the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc., and as adopted and may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Contact hour. “Contact hour” means one (1) hour of actual time spent in a training activity.

Construction. “Construction” means the enlargement, alteration, repair, movement, demolition or change in the occupancy of a building.

Degree. “Degree” means a document issued by a recognized institution of learning, which verifies completion of a course of study, including diplomas, certificates or official transcripts.

Enforce. “Enforce” means that a municipal building official either takes action to inspect buildings in accordance with 25 MRSA, sections 2351-2361, or to review inspection reports of third-party inspectors for accuracy, pursuant to a duly adopted municipal ordinance.

Examination. “Examination” means the testing process through which an individual acquires certification, as described in section 4 of this chapter.

Full-time. “Full-time” means an individual who works 35 hours per week or more.

Hardship. “Hardship” means that a municipality, through no fault of its own, would be at risk of having its permitting decisions invalidated.

Indoor commercial ventilation code. “Indoor commercial ventilation code” means the ASHRAE Standard 62.1-2007, Ventilation for Acceptable Indoor Air Quality, published by the American Society of Heating, Refrigerating and Air-conditioning Engineers, Inc., and as adopted and may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Indoor residential ventilation code. “Indoor residential ventilation code” means the ASHRAE Standard 62.2-2007, “Ventilation for Acceptable Indoor Air Quality in Low-Rise Residential Buildings”, published by the American Society of Heating, Refrigerating and Air-conditioning Engineers, Inc., and as adopted and may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Internal plumbing. “Internal plumbing” means the laws, codes, standards, rules, and ordinances related to 30-A MRSA, chapter 185, subchapter 3.

Legal issues and enforcement techniques. “Legal issues and enforcement techniques” means familiarity with the laws and ordinances related to the structure and practice of the municipal code enforcement office, municipal planning board and appeals board procedures, application review and permitting procedures, inspection procedures, and methods and procedures of enforcement.

Local plumbing inspector. “Local plumbing inspector” means an individual appointed by the municipality pursuant to 30-A MRSA, section 4221. For purposes of this rule, a code enforcement officer is considered a local plumbing inspector when appointed by the municipality under section 4221 to administer the internal plumbing or subsurface waste disposal specific areas.

Maine Uniform Building Code . “Maine Uniform Building Code” means the portion of the Maine uniform Building and Energy Code that does not contain energy code requirements as adopted and amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, Chapter 1103.

Maine Uniform Building and Energy Code. "Maine Uniform Building and Energy Code" means the uniform statewide building and energy code adopted and amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, chapter 1103.

Maine Uniform Energy Code . “Maine Uniform Energy Code” means the portion of the Maine Uniform Building and Energy Code that contains only the energy code requirements as adopted and amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, Chapter 1103.

Office. “Office” means the Department of Economic and Community Development’s Office of Community Development.

Population. “Population” means the number of residents living in the municipality according to the US Census Bureau’s most recent decennial census.

Professional activity. “Professional activity” means related volunteer service or participation not considered a requirement for the continuing employment of the code enforcement officer. It may include service as an officer of a national, state or regional association or service on a committee, advisory board or task force of a regional, state or federal government or model code organization or institution, teaching code administration related courses or working for related service or charitable organizations.

Professional certification. “Professional certification” means the individual has successfully completed the examination, education, or work experience requirements for recognition by an acknowledged professional association or institute for knowledge, technical expertise and adherence to standards of practice.

Professional license. “Professional license” means the individual has successfully completed the examination, education, or work experience requirements to engage in a profession, occupation, business or industry in the State of Maine.

Recertification training. “Recertification training” means those continuing education sessions which are provided by state agencies, educational institutions, professional associations or other relevant organizations and approved by the Office as providing a code enforcement officer or third-party inspector with updated knowledge in a specific area.

Recertification. “ Recertification” means written notice from the Office that a code enforcement officer has met the recertification standards in section 5 of this chapter or that a third-party inspector has met the recertification standards in section 8 of this chapter.

Registered code enforcement officer. "Registered code enforcement officer" means a person who administers laws, codes, ordinances, and regulations on behalf of an appointing municipality and who is registered with the Office in accordance with section 10 of this chapter.

Residential building code. “ Residential building code” means the International Residential Code published by the International Code Council and as adopted and as may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Residential energy code. “Residential energy code” means the International Energy Conservation Code published by the International Code Council and as adopted and as may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Residential radon code. “Residential radon code” means the ASTM E 1465-06, Standard Practice for Radon Control Options for the Design and Construction of New Low-Rise Residential Buildings, published by the ASTM International and as adopted and as may be amended by the Technical Building Codes and Standards Board pursuant to 10 MRSA, section 9722, subsection 6 and PL 2007, chapter 699, section 21.

Shoreland zoning. “Shoreland zoning” means the laws, codes, standards, rules, and ordinances related to 38 MRSA, chapter 3, subchapter 1, article 2-B.

Specific area. “Specific area” means the body of laws, codes, standards, rules, and ordinances for which a code enforcement officer is appointed and sworn to enforce, and in which a code enforcement officer is required to be certified. These may include: shoreland zoning, comprehensive planning and land use, internal plumbing, subsurface wastewater disposal, and building standards.

Subsurface waste disposal. “Subsurface waste disposal” means the laws, codes, standards, rules, and ordinances related to 30-A MRSA, chapter 185, subchapter 3.

Technical Building Codes and Standards Board. “Technical Building Codes and Standards Board” means the board established in 5 MRSA, section 12004-G, subsection 5-A and 10 MRSA, section 9722.

Third - party inspector. “Third-party inspector” has the same definition as 25 MRSA, section 2371, subsection 6 and means a person certified by the Department of Economic and Community Development’s Office of Community Development to conduct building inspections under 30-A MRSA, section 4451 for compliance with the Maine Uniform Building and Energy Code .

Training activity. “Training activity” means approved professional and educational activities as described in section 5.1 of this chapter that keeps the code enforcement officer current in the officer’s specific areas of job responsibilities and is intended to meet the recertification requirement in 30-A MRSA, section 4451, subsection 6.

Work experience. “Work experience” means employment as a municipal code enforcement officer in Maine enforcing Maine laws, codes, and ordinances.

SECTION 3: GENERAL PROVISIONS

A municipality may not appoint an individual who is not certified by the Office to perform the duties of a code enforcement officer, except as provided below:

1. Grace Period

Except as otherwise provided in this paragraph, a duly-appointed municipal code enforcement officer shall be certified by the Office within twelve (12) months of the date of that officer’s employment in the specific areas of the officer’s job responsibility. The 12-month grace period expires at the end of the month in which the municipal code enforcement officer’s one-year anniversary falls.

An individual shall acquire certification in the specific areas of internal plumbing and subsurface wastewater disposal prior to municipal appointment except that an individual may be temporarily authorized in writing by the Department of Human Services, Division of Environmental Health to be employed as a local plumbing inspector for a period not to exceed six (6) months in accordance with department rule, 10-144CMR 240.

A code enforcement officer who is appointed by the municipality to administer an additional specific area of responsibility has twelve (12 months) to be certified in that additional specific area. The 12-month grace period expires at the end of the month of the twelfth month following the assumption of the additional specific area of responsibility.

2. Extension of Grace Period

Municipalities may petition the Office for up to a twelve (12)-month extension of the original grace period in cases where:

the municipality can demonstrate that the necessary training or examination was not available within that time period;

the necessary training or examination is suspended by the Office under section 10 of this chapter; or

the certification process would impose a hardship on the municipality.

The Office determines whether the petitioning municipality has met the criteria for an extension in all specific areas, except an individual shall abide by the requirements of the Department of Health and Human Services, Division of Environmental Health to be employed as a plumbing inspector.

Within 20 days of receipt of the petition, the Office shall issue a decision in writing whether the extension has been granted with the reasons for approval or denial.

A. Appeal

A municipality whose petition for an extension is denied may appeal. A municipality may request a review of the extension decision from the Director of the Office of Community Development in writing within 20 days of notification of the decision on the municipality’s petition.

The Director may delegate the appeal to another senior staff person who was not involved in the original hardship decision.

In considering an appeal, the Director shall:

(1) examine the municipality’s petition against the standards in this section and section 2.18; and

(2) determine whether the Office followed the required process and reasonably interpreted the facts to reach the conclusion upon which the extension decision under appeal was based.

Within 20 days of the request for appeal, the Director shall make a decision and notify the municipality in writing whether the appeal is granted. The decision of the Director constitutes final agency action.

A duly appointed code enforcement officer may continue to serve in that capacity until a final agency decision is rendered on the appeal.

3. Certificate of Appointment

Upon initial appointment, and annually upon reappointment, a municipality shall file a certificate of appointment with the Office. The certificate must indicate the appointment, reappointment or continuation of the municipality’s code enforcement officers, the date of appointment or reappointment, and the specific areas of job responsibility for which the officers have been appointed.

4. Transferability

A valid certification of a code enforcement officer who changes employment is transferable from one Maine municipality to another.

A valid certification of a code enforcement officer who serves more than one Maine municipality is applicable to each Maine municipality, so long as the certified individual is duly appointed by the municipal officers of each municipality.

An individual who holds a valid certification may transfer that certification between a code enforcement officer and a third-party inspector only in accordance with 25 MRSA, section 2371 (6).

SECTION 4: CERTIFICATION STANDARDS AND PROCEDURES

A municipally-employed code enforcement officer shall be certified by the Office. A code enforcement officer need only be certified in the specific area for which that officer has responsibility.

1. Certification Standards

To be certified, a code enforcement officer shall successfully complete a written examination provided by the Office in each specific area of job responsibility and in legal issues and enforcement techniques.

A. Specific Area

Specific area examinations test knowledge of the laws, codes, standards, rules, and ordinances, relevant to a specific area of code enforcement. The level of knowledge required to successfully complete the examination is introductory. Specific areas of certification include:

(1) shoreland zoning;

(2) comprehensive planning and land use;

(3) internal plumbing;

(4) subsurface wastewater disposal; and

(5) building standards

B. Legal Issues and Enforcement Techniques

The legal issues and enforcement techniques examination tests knowledge of the legal authority, structure and practice of the municipal code enforcement officer, municipal planning board and appeals board procedures, application review and permitting procedures, inspection procedures and methods and procedures for enforcement.

2. Certification Duration

A certification is valid for a period of six (6) years, except as provided in section 10.

3. Certification Procedures

The Office offers examinations at least once per year on dates and at locations determined by the Office.

The Office determines the form and content of the examinations and updates examinations periodically to keep current with changing state laws and case law.

Unsuccessful candidates for certification are allowed to be reexamined without prejudice as many times as needed.

The Office provides basic training to assist the candidate with preparing for examinations.

SECTION 5: RECERTIFICATION STANDARDS AND PROCEDURES

Except as provided in section 10, all code enforcement officers shall be recertified in each specific area and in legal issues and enforcement techniques within six (6) years of obtaining any certification.

1. Recertification Standards

A code enforcement officer may become recertified by examination as described in section 4.

An examination is not required for recertification. A candidate who chooses not to become recertified through examination shall demonstrate, through recertification training or training activity, that the candidate has remained current in the candidate’s specific areas of job responsibility.

To become recertified by completing training activity, a code enforcement officer shall demonstrate successful completion of twelve (12) contact hours of recertification training or training activity for each specific area of job responsibility and twelve (12) contact hours for legal issues and enforcement techniques every six (6) years. This paragraph does not apply to building standards recertification standards which are set forth in the paragraph below.

For recertification, a code enforcement officer shall demonstrate successful completion of recertification training or recertification training activity for each applicable code in the building standards specific area every six (6) years. The following number of contact hours is required for each applicable code:

a. residential building code 9 contact hours

b. commercial building code 15 contact hours

c. residential energy code 9 contact hours

d. commercial energy code 9 contact hours

e. residential radon code 3 contact hours

f. indoor residential ventilation code 2 contact hours

g. indoor commercial ventilation code 3 contact hours

A. Recertification Training Contact hours

Recertification training contact hours may be gained through either basic training provided by the Office or training provided by another organization. Recertification training contact hours must be applicable as determined by the Office.

B. Alternative Recertification Contact Hours

A code enforcement officer may apply for up to six (6) alternative recertification contact hours using the Office’s application form. Alternative recertification contact hours must be directly related to a specific area of code enforcement, as determined by the Office. The Office applies the training activity contact hours to the most closely-related specific area of certification. Applicable training activity may consist of:

(1) Work Experience

A code enforcement officer may apply work experience in municipal codes administration to that officer’s recertification. Work experience may be applied based on the following years of full-time service:

a. five (5) to nine (9) years = 2 contact hours

b. ten (10) to fourteen (14) years = 4 contact hours

c. fifteen (15) or more years = 6 contact hours

If a code enforcement officer has part-time work experience in municipal codes administration, the Office converts any part-time employment period into its full-time equivalency.

(2) Post-secondary Education

A code enforcement officer may apply post-secondary education towards that officer’s recertification. Education must be directly related to a specific area of certification and must be applied based on the following types of academic learning:

a. Completed bachelor’s degree = three (3) contact hours

b. Completed associate’s degree = two (2) contact hours

c. Completed two-year vocational program = two (2) contact hours

d. Completed certificate program = one (1) contact hour

e. Completed apprenticeship or internship = one (1) contact hour

f. Post-secondary courses credited towards a new degree during the six-year certification cycle = one (1) contact hour per credit

(3) Professional License or Certification

A code enforcement officer who holds an applicable professional license in the state of Maine or a state or national professional certification may apply two (2) contact hours per specific area in each six-year recertification cycle towards that officer’s recertification.

The building standard recertification requirements in this section may be waived if the code enforcement officer holds a valid certification from a nationally recognized, building or energy code-related, professional certification program. The Office determines whether the certification is applicable and applies the waiver to the most closely related building standards code.

(4) Professional Activity

A code enforcement officer may apply documented time spent in a professional activity towards the officer’s recertification. One contact hour may be applied for each hour of actual time spent in a professional activity during the current six-year certification period. A maximum of six (6) contact hours may be applied towards recertification in each specific area in a six-year certification cycle.

For purposes of legal issues and enforcement techniques recertification, professional activity may mean documented work experience using Rule 80K procedures such as filing court documents, preparing for court or appearing in court. The same contact hours may not be used for both legal issues and enforcement techniques recertification and Rule 80K recertification in section 6.

2. Recertification Procedures

A candidate for recertification shall file evidence of successful completion of training activity for recertification on application forms provided by the Office. The code enforcement officer is responsible for obtaining and keeping track of required documentation.

3. Recertification for Building Standards

A code enforcement officer need only be recertified in the individual code(s) within the building standards specific area that are applicable, meaning the code(s) for which that officer has responsibility to enforce.

For purposes of this section, the definition of “enforce” in section 2.15 of this chapter applies.

Recertification Required

For purposes of this section, the definition of “any building code" in section 2.2 of this chapter applies.

As of July 1, 2013, a code enforcement officer in a municipality that has a population of more than 4,000 residents and that has not adopted any building code by August 1, 2008, shall be recertified in the building standards specific area.

A code enforcement officer in a municipality that has a population of less than 4,000 residents may be recertified in the building standards specific area at any time, but no later than upon the expiration of the officer’s current six-year certification period.

B Requirements for Six-year Recertification Cycle

All code enforcement officers shall be recertified in the building standards specific area within six years, except as provided in section 10.

Contact hours needed for recertification must be acquired in accordance with sections 5.1 and 5.2.

SECTION 6: RULE 80-K CERTIFICATION

A code enforcement officer or other candidate identified in 30-A MRSA, section 4453 may be

certified in Rule 80K of the Maine Rules of Civil Procedure .

Rule 80K certification means that the individual is allowed to prosecute alleged land use violations in District Court on behalf of their appointing authority.

To become certified in Rule 80K, an individual shall demonstrate familiarity with court procedures as evidenced by successful completion of the Office’s Rule 80K workshop or an equivalent workshop approved by the Office and successful completion of a certification examination in Rule 80K and court procedures.

Rule 80K certification is valid for six (6) years, except as provided in section 10.

To become recertified, an individual shall demonstrate successful completion of twelve (12) contact hours of recertification training or recertification training activity in accordance with section 5.1 and 5.2. For purposes of Rule 80K recertification, recertification training activity may mean documented work experience using Rule 80K procedures such as filing court documents, preparing for court and appearing in court.

SECTION 7: HONORARY CERTIFICATION

An honorary certification may be awarded to those code enforcement officers because of distinguished public service; an excellent ability and knowledge in the field of codes enforcement; an ongoing record of improvement in ability and knowledge as a code enforcement officer; and contributions to the profession. A code enforcement officer receiving an honorary certification is recognized by his or her peers as a leader in the profession. To receive an honorary certification, a candidate shall be currently employed as a municipal code enforcement officer in Maine and have served as a municipal code enforcement officer in Maine for 20 years or more.

A code enforcement officer may apply for honorary certification on forms provided by the Office. The Office may award honorary certification in one or more specific areas if, in its determination, the candidate meets a wide array of the following criteria:

1. record of ongoing professional development and educational improvement; including successful completion of university or college courses and national or state association seminars;

2. record of active involvement in a professional association for code enforcement officers with a published code of professional conduct or code of ethics;

3. experience as a leader or instructor of professional development training related to codes administration;

4. authorship of articles or other forms of organized, disseminated information related to codes administration;

5. successful completion of right-to-know or ethics training;

6. holding a professional license or certification from the state of Maine or professional association in an area related to a specific area of code enforcement certification;

7. recognition by other organizations for professional accomplishments; or

8. letters of recommendation from peers, municipal officers or the public.

A code enforcement officer granted honorary certification need not meet the recertification standards under the provisions of section 5.1. An honorary certification is valid for the tenure of the code enforcement officer’s career, so long as that officer remains employed as municipal code enforcement officer in Maine and that officer’s certification is not revoked under the provisions of section 9.

SECTION 8: CERTIFICATION AND RECERTIFICATION STANDARDS AND PROCEDURES FOR THIRD-PARTY INSPECTORS

1. Certification Required

Effective December 1, 2010, only individuals certified by the Office may perform building inspections as a third-party inspector pursuant to 25 MRSA, section 2373.

A. Third-party Inspector Certification Standards

A third-party inspector need only be certified in the individual code(s) within the building standards specific area that are applicable, meaning the code(s) for which the third-party inspector is hired to perform inspections.

To become certified, a third-party inspector shall successfully complete the building standards certification examination for each applicable code;

(a) residential building code

(b) commercial building code

(c) residential energy code

(d) commercial energy code

(e) residential radon code

(f) indoor residential ventilation code

(g) indoor commercial ventilation code

B. Third-party Inspector Recertification Standards

Except as provided in section 8.4 and 10, a certification is valid for a period of six (6) years. For recertification, a third-party inspector shall demonstrate successful completion of recertification training or training activity in accordance with sections 5.1 and 5.2 of this chapter for each building standards code for which the third-party inspector is commercially engaged every six years. The following number of contact hours is required for building standards recertification:

(a) residential building code 9 contact hours

(b) commercial building code 15 contact hours

(c) residential energy code 9 contact hours

(d) commercial energy code 9 contact hours

(e) residential radon code 3 contact hours

(f) indoor residential ventilation code 2 contact hours

(g) indoor commercial ventilation code 3 contact hours

2. Recognition of Professional Certification Programs

These building standard recertification requirements may be waived if the third-party inspector holds a valid certification from a nationally recognized, building or energy code-related professional certification program. The Office determines whether the certification is applicable and applies the waiver to the most closely related building standards code.

3. No Endorsements

The Office does not endorse or otherwise suggest, encourage, or recommend any third-party inspector.

4. Third-party Inspector Registry

The Office maintains a list of certified third-party inspectors for public inspection.

In the event that the Office suspends the third-party inspector training and certification program in accordance with 30-A MRSA section 4451, subsection 3, paragraph H, a third-party inspector shall register the third-party inspector’s qualifications with the Office in accordance with section 10 of this chapter.

SECTION 9: CERTIFICATION REVOCATION

A certification may only be revoked by the District Court in accordance with 30-A MRSA, section 4451, subsection 6.

SECTION 10: CODE ENFORCEMENT OFFICER REGISTER

Program Suspension

In the event that state funding is not available to support the code enforcement training and certification program, the Office may suspend training and certification activities and, upon this suspension, shall implement a program to register municipal code enforcement officers.

Registration is intended to provide information for the public to determine whether a code enforcement officer has the qualifications to administer state and local laws, codes, ordinances or other regulations.

A. Registration Required

In the event of a program suspension, a new municipal code enforcement officer shall register that officer’s qualifications with the Office in accordance with subsection 10.3 of this chapter.

Registration means that a municipal code enforcement officer may act on behalf of the municipality to administer state and local laws, codes, ordinances or other regulations in lieu of certification until such time as the training and certification program is restored. Failure to register means that a municipality is not in compliance with state laws requiring their employment of a certified code enforcement officer.

Being a registered code enforcement officer does not imply that the registrant is certified by the Office.

B. Qualifications; Registration Procedures

In the event of a program suspension, the Office automatically registers all Maine code enforcement officers holding a valid certification.

At the time that a code enforcement officer is newly appointed or at the expiration of a six-year certification cycle, the code enforcement officer shall document and submit that officer’s education, experience and training related to codes enforcement administration on forms provided by the Office.

The Office maintains and makes publicly available a registry of qualifications for registered code enforcement officers.

C. Extension of Certification

In the event of a program suspension, a code enforcement officer’s six-year recertification cycle also is suspended. The six-year cycle restarts at the time the training and certification program is restored.

History

Under 07-105, State Planning Office:

History

• STATUTORY AUTHORITY: 30-A MRSA, section 4451 (5)
• EFFECTIVE DATE: December 15 1991
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 22, 1996
• AMENDED: February 8, 1998
• AMENDED: July 4, 2010 – filing 2010-277
• AMENDED: Moved to 19-498, Department of Economic and Community Development, Office of Community Development, in October, 2013.
• AMENDED: June 8, 2014 – filing 2014-112
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

19-499 Office of Business Development

Chapter 301 Rules for the Maine Products Marketing Program

Code Me. R. 19-499 Ch. 301 Rules for the Maine Products Marketing Program {#sec-19-499-ch.-301 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-499 Ch. 301}

SUMMARY: This chapter outlines the procedures and criteria governing the Maine Products Marketing Program.

Section 1. Purpose of the rule.

The Maine Products Marketing Program is a program of marketing assistance to Maine producers of consumer goods through publication of a wholesale Buyer's Guide, trade show support, technical assistance, and other promotional activities. The Maine Products Marketing Program, through its marketing strategies, presents an image of Maine which is one of very high quality products and reliable producers. The purpose of the rule is to define the criteria for excellence and to describe what companies must do in order to comply with and participate in the Program.

Section 2. Definitions.

A. Department: "Department" shall mean the Department of Economic and Community Development.

B. Program: "Program" shall mean the Maine Products Marketing Program.

C. Product Advisory Panel: "Product Advisory Panel" shall mean the advisory group so designated by the Governor, pursuant to Executive Order #F4 89/90 which recommends products for participation in various activities of the Program.

Section 3. Application Process.

Companies shall apply by submitting a complete application on forms available from Maine Products Marketing Program, c/o the Department of Economic and Community Development, Station 59, 187 State Street, Augusta, Maine 04333. The application must be complete and signed in order to be considered.

Section 4. Criteria for Inclusion in the Program.

The policies which guide this program are provided below and the companies which participate in the program are expected to adhere to those policies as a requisite of their membership in the program. The Department, at its sole and reasonable discretion, retains the right to reject any product or producer from participation in the Maine Products Marketing Program if it does not comply with these requirements. All decisions will be made by the Department with advice from the Product Advisory Panel.

A. For inclusion in the program, proposed participating companies must demonstrate that each of their products meet each of the following criteria:

1. The product is of sufficient quality, reliability or appropriateness to meet the following standards:

a. the product uses high quality raw materials,

b. the product is safe for normal use, and

c. the product is guaranteed or warranted by the producer or manufacturer.

2. The product has sufficient connection with the State of Maine as demonstrated by two or more of the following:

a. significant labor and/or value added occurs in Maine,

b. significant concept and/or design occurs in Maine,

c. substantially all raw materials originate from Maine, and

d. substantially all packaging, handling and/or distribution occurs in Maine.

3. The producer adheres to standard, sound and ethical business practices, including but not limited to:

a. maintenance of insurance coverage,

b. possession of current business licenses as required by law, and

c. responsible customer services.

4. The product or its labeling does not contain any religious, politically oriented or sexually suggestive material.

B. A proposed participating company is required to provide a representative sample by which quality, reliability and appropriateness may be ascertained. In addition, the producer must supply any other information requested by the Commissioner which is deemed necessary to assist the Department in determining product eligibility.

C. A proposed and/or participating company is required to supply the Department such information as may be necessary to assess the program's impact and viability including but not limited to:

1. total annual sales revenues.

2. total annual employment.

Section 5. Disqualification from the Program.

Any producer may be disqualified from the program or from participating in program activities by failure to comply with any of the above stated rules or criteria.

History

• STATUTORY AUTHORITY: 5 M.S.R.A. Sections 13058 (3) and 13061, et seq.
• EFFECTIVE DATE: October 3, 1990
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• CONVERTED TO MS WORD: July 9, 2003
• CONVERTED TO MS WORD: 19-499 Chapter 301 page 3

Chapter 302 Rules for the Maine Microenterprise Initiative

Code Me. R. 19-499 Ch. 302 Rules for the Maine Microenterprise Initiative {#sec-19-499-ch.-302 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-499 Ch. 302}

Summary: This chapter outlines the procedures, criteria and program review requirements governing the Maine Microenterprise Initiative.

SECTION 1. PURPOSE AND DEFINITIONS

A. Purpose

The Maine Microenterprise Initiative is a program designed to provide grants for community-based non-profit organizations to provide Training and/or Technical Assistance to Microenterprises. The purpose of the rule is to define the criteria and proposal process for applications to the Fund.

B. Definitions

Areas of High Unemployment: “Areas of High Unemployment” shall mean Labor Market Areas with greater than the State average unemployment.

Commissioner: “Commissioner” shall mean the Commissioner of the Department.

Community-based Organization: “Community-based Organization” shall mean a non-profit organization in Maine that has broad-based support from the community they serve; a viable plan for provide Training and/or Technical Assistance to Microenterprises; an adequate source of funding; and a demonstrated need for funding to provide Training and/or Technical assistance to Microenterprises.

Community-based Partnerships: “Community-based Partnerships” shall mean partnerships between two or more community-based organizations in Maine seeking to receive grants from the fund.

Department: “Department” shall mean the Department of Economic and Community Development.

Fund: “Fund” shall mean the Microenterprise Initiative Fund established in 5 MSRA § 13063-E.

Grantee: “Grantee” shall mean Community-based Organization or Community-based Partnerships awarded a grant from the fund.

Grant Selection Committee: “Grant selection committee” shall mean a committee designated by the Commissioner to review and make recommendations regarding proposals.

Leveraged Match: “Leveraged Match” shall mean services leveraged through Community-based Partnerships or Community-based Organizations. The match may be in the form of cash, staff time and overhead expense directly attributable to microenterprise training and technical assistance. Grant funds cannot be used to supplant existing organizational funds, and can only be used to supplement funds leveraged for the program purposes.

Microenterprises: “Microenterprise” shall mean an existing or start-up business employing 10 or fewer full time equivalent employees.

Report: “Report” shall mean a written evaluation of grant funds expended, and the uses and outcomes of those expenditures by the grantee.

Targeted Industries: “Targeted Industries” shall mean the industries targeted by the State of Maine’s Economic Development Strategy, prepared annually by the Department, including microenterprise support and development.

Technical Assistance: “Technical Assistance” shall mean consultation, counseling, mentoring, and other forms of assistance that address the specific concerns of microenterprises.

Training Program: “Training Program” shall mean a classroom based or other structured learning program designed to impart knowledge and build skills necessary for small business start-up, growth and stabilization.

Under served Areas: “Under served Areas” shall mean areas of the state that have no regular, convenient, consistent access to training, technical assistance or other business support services.

SECTION 2. APPLICATION PROCESS

The Department shall issue request for proposals for grant applications through three consecutive days of ads of public notice in three newspapers of general circulation. All proposals will be reviewed by the Grant Selections Committee and will be awarded on a competitive basis. Competitive criteria for the grant selections committee’s evaluation of proposals consistent with this rule will be set forth in the RFP. The grant selection committee will make recommendations to the commissioner. Final decision on grantees will be made by the commissioner. Award decisions may be appealed to the Director of the Bureau of General Services under 18-544 CMR 120, Rules for Appeal of Contract and Grant Awards.

Grants will be awarded for a maximum of $200,000 for Community-based Partnerships involving three or more Community-based Organizations, $150,000 for community-based partnerships involving two Community-based Organizations and $75,000 for a single Community-based Organization proposal. Grants may be used over two-year period.

SECTION 3. CRITERIA FOR ELIGIBILITY

Proposals must detail plans describing the assistance to be provided to Microenterprises. All proposals for grant funds must include the following:

 A viable plan to provide Training and/or Technical Assistance to Microenterprises to Microenterprises, including how and to whom services would be marketed;

 Evidence that the market or target population for proposed service is under served;

 Evidence of broad based support from the community that the organization serves;

 Evidence of adequate and committed sources of operating capital;

 Description of the need for funding to provide Training and/or Technical Assistance to Microenterprises;

 A detailed budget for the funds;

 Evidence of 25% Leveraged Match required and sources of those funds;

 A memorandum of agreement between Community-based Partnerships specifying how the funds will be used and administered;

 A detailed scope of work identifying measurable outcomes that will be achieved as a result of receiving funds; and

 Demonstrated capacity to deliver services to Microenterprises.

Preference will be given to Community-based Partnerships and to proposals that meet one or more of the following criteria:

Target aid to client businesses with five or fewer employees;

 Target aid to low-income individuals;

 Target aid to rural areas or areas of High Unemployment;

 Improving access to Training;

 Address needs of a targeted industry sector;

 Help develop businesses in downtown areas; and

 Provide collaborative solutions to addressing identified problems facing Microenterprises such as health insurance, employee training, and technology transfer.

Funds cannot be used for capital expenses.

If grant is made for a two-year period, the second year funding is contingent upon Grantee meeting performance standards. Grantees must also submit a Report detailing the results of the program to be eligible for the remaining funds. Grantees must submit a Report at the end of the grant period detailing the program outcomes achieved as a result of the grant.

SECTION 4. PROGRAM REVIEW

A. Department Responsibilities

By January 15 of each year, the Department shall submit a report to the joint standing committee of the Legislature having jurisdiction over business research and economic development matters. The report must include the following:

An accounting of the use of all program funds received and expended since the program’s inception;

A summary of the status of any approved projects;

A summary of the results of any completed projects;

Evaluation data and assessment; and

Other information required to be submitted to and evaluated by the joint standing committee of the Legislature having jurisdiction over business research and economic development matters.

B. Grantee Responsibilities

Community-based organizations receiving grants under this program shall report to the Department no later than November 15 of each year. In reporting to the Department, grant recipients must include the following organizational performance and client outcome measures for their programs:

An accounting of the use of all program funds received and expended;

Total number of clients that received assistance broken down by technical assistance versus training;

Business plan and/or training completion rate for all clients;

Total number of clients that received ten (10) or more hours of assistance;

Total number of women clients;

Total number of minority clients;

Total number of low-income clients (based on U.S. Department of Housing and Urban Development guidelines);

Total number of clients who were receiving Temporary Assistance for Needy Families (TANF) cash support at the time of their intake into the program;

Total number of clients served in targeted geographic area;

Cost per assisted client;

Businesses and jobs created, expanded or retained by clients;

Change in annual sales revenues of clients that received assistance;

Microloans disbursed to clients and other capital (i.e. debt or equity) acquired by clients.

Note: The above measures build upon similar measures employed by MicroTest, a program developed and administered by the Aspen Institute. MicroTest seeks to “improve the quality of microenterprise services and the stability of microenterprise organizations over time by promoting the use of common measures to regularly assess performance.” In using MicroTest measures, the department hopes to measure the performance of Maine microenterprise programs against national benchmarks for similar programs.

Grant recipients under this program must also be prepared to provide the department or its contractor with additional program data, including client contact information, so that the department may conduct an independent evaluation of the program.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. § 13058(3), § 13063-J – O
• EFFECTIVE DATE: December 12, 2000
• AMENDED: June 17, 2004 - major substantive, filing 2004-159
• NON-SUBSTANTIVE CORRECTION: September 1, 2004
• NON-SUBSTANTIVE CORRECTION: 19-499 Chapter 302 page 5

Chapter 303 Rural Workforce Recruitment and Retention Grant

Code Me. R. 19-499 Ch. 303 Rules for the Rural Workforce Recruitment and Retention Grant Program {#sec-19-499-ch.-303 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-499 Ch. 303}

Summary: This chapter outlines the procedures, criteria and program review requirements governing the Rural Workforce Recruitment and Retention Grant Program.

SECTION 1. PURPOSE AND DEFINITIONS

A. Purpose

The Rural Workforce Recruitment and Retention Grant Program is a program to provide grants for local economic development initiatives in rural regions of the State that will assist rural businesses in those regions in locating, recruiting and retaining qualified staff to meet workforce needs. The purpose of the rule is to define the criteria and proposal process for applications for grant funding.

B. Definitions

Commissioner. “Commissioner” means the Commissioner of the Department of Economic and Community Development.

Economic Development Organization. “Economic Development Organization” means an economic development entity that services Aroostook, Piscataquis, Somerset, or Washington counties.

Department. “Department” means the Department of Economic and Community Development.

Fund. “Fund” means the Rural Workforce Recruitment and Retention Grant Program established in 5 MSRA §13056-I.

Grantee. “Grantee” means an Economic Development Organization awarded a grant from the fund.

Grant Selection Committee. “Grant selection committee” means a committee designated by the Commissioner to review and make recommendations regarding proposals.

Leveraged match. “Leveraged match” means monies or services leveraged through Economic Development Organizations. The match may be in the form of cash, staff time and overhead expense directly attributable to workforce and talent attraction. Grant funds cannot be used to supplant existing organizational funds and can only be used to supplement funds leveraged for the program purposes.

Program. “Program” means the Rural Workforce Recruitment and Retention Grant Program.

Rural Regions. For this program, rural regions mean Aroostook County, Piscataquis County, Somerset County and Washington County.

Workforce Needs. Gap in labor market, which for this program is a quantifiable demand for workers engaged in a specific activity or enterprise within the Rural Regions.

SECTION 2. APPLICATION PROCESS

The Department shall issue a request for proposals for grant applications from Economic Development Organizations. All proposals will be reviewed by the Grant Selections Committee and amounts, if any, will be awarded on quality of the Economic Development Organization’s application. Criteria for the grant selection committee’s evaluation of proposals consistent with this rule will be set forth in the request for proposals. The commissioner shall make the final decision on grant awards based on recommendations from the grant selection committee. Award decisions may be appealed to the Director of the Bureau of General Services under 18-544 CMR Chapter 120, Rules for Appeal of Contract and Grant Awards .

Grants will be awarded for a maximum of$100,000 per county. More than one Economic Development Organization may be a Grantee for a county they service, but only if they submit a joint application. Grants may be used over a two-year period starting upon contract date.

SECTION 3. CRITERIA FOR ELIGIBILITY

Proposals must detail plans describing the tactics that will be used to attract and retain qualified workers to the Economic Development District’s respective counties. All proposals for grant funds must include the following:

 A viable plan to launch a workforce and talent attraction marketing program;

 Evidence that the market or target population for proposed service is under served;

 Evidence of broad-based support from the community that the organization serves, including description of key partners;

 Evidence of adequate and committed sources of operating capital;

 Description of the need for funding to provide support for workforce attraction efforts;

 A proposed budget for the funds and budget narrative outlining the use of funds;

 Evidence of 100% Leveraged Match required and sources and access to and allocation of matching funds;

If using in-kind match, a description of the activity, including identity of personnel assigned to work on in-kind project specific to this grant, and value of match;

 A detailed scope of work identifying measurable outcomes that will be achieved as a result of receiving funds;

Identification of target metrics -- how will the applicant organization measure performance.

SECTION 4. PROGRAM REVIEW

A. Department Responsibilities

By January 15 of each year, the Department shall submit a report to the joint standing committee of the Legislature having jurisdiction over economic development matters. The report must include the following:

An accounting of the use of all program funds received and expended since the program’s inception;

A summary of the status of any approved projects; and

A summary of the results of any completed projects;

B. Grantee Responsibilities

Economic development organizations receiving grants under this program shall report to the Department with semiannual reports due on December 1st and June 1st. In reporting to the Department, grant recipients must include the following organizational performance and outcome measures for their programs:

An accounting of the use of all program funds received and expended;

• Summary of activity;
• Summary of expenses;
• Budget breakdown;
• Changes to original application/intended use of funds;
• Update on target metrics.

History

• STATUTORY AUTHORITY: 5 MRS §13056-I
• EFFECTIVE DATE: January 15, 2023 – filing 2023-006

19-540 Rules formerly with the State Planning Office, reassigned to DECD

Chapter 450 Siting Criteria for Solid Waste Disposal Facilities

Code Me. R. 19-540 Ch. 450 Siting Criteria for Solid Waste Disposal Facilities {#sec-19-540-ch.-450 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-540 Ch. 450}

SUMMARY: This rule establishes siting criteria for solid waste landfills and incineration facilities.

SECTION 1. PREAMBLE

This rule establishes criteria to guide the selection of sites for solid waste landfills and incineration facilities. By excluding from consideration land areas determined to be unsuited for waste disposal activities and by requiring the screening of non-excluded land areas for preferred attributes, the criteria provide a rational basis for identifying locations that are potentially suitable for such facilities and therefore deserving of further investigation. Our goal in adopting these criteria is to direct site screening activities to the investigation and selection of land areas that appear to be suitable and appropriate for these facilities.

The declarations of policy set forth by the Maine Legislature in 38 M.R.S.A., sections 1302 and 2101, are hereby adopted as the policy basis for this rule. The 1989 Waste Management Law, 38 M.R.S.A., Section 2101 establishes a hierarchy of solid waste management techniques, with the highest priorities assigned to waste reduction, reuse and recycling. Incineration and land disposal also are identified as components of an integrated system of waste management, but are assigned a lower priority. This rule is not intended to supplant the hierarchy established under Section 2101 by creating a preference for land disposal, nor is it intended to preclude or discourage the development of new technologies that reduce, reuse, and recycle wastes presently subject to incineration and land disposal. We recognize that, in the future, it may be possible to utilize waste now disposed and that new methods and designs for disposing of waste may be developed. We also recognize that the development of sites located in accordance with this rule will proceed only as necessary to meet capacity needs identified in the Maine Waste Management and Recycling Plan (State Plan) as adopted and revised at least every two years under 38 M.R.S.A., section 2122.

As required under 38 M.R.S.A., section 2153. the siting criteria are based on the following factors:

A. A site may be located anywhere within the State and need not be in proximity to the site of waste generation; .

A-1. Agency-owned sites for the disposal of special waste may not be located within a 5-mile radius of an existing commercial special waste landfill or a commercial incineration facility.

B. To the extent possible, a site shell must be located in proximity to the transportation systems, including existing or potential railroad systems, that are used to convey waste to the site or to convey residuals and materials to be recycled from the site;

C. The capacity or size of a site must be consistent with the projected demand as determined in the state plan;

D. A site and its considered use must be consistent with and actively support, other waste management objectives, including waste reduction and recycling;

E. The projected price for site development, construction and operation must be fair and reasonable;

F. A site must meet preliminary environmental standards developed jointly by the Department of Environmental Protection ("DEP") and the Maine Land Use Planning Commission ("LUPC"), including ground water standards, geological standards, and standards to protect public drinking water supplies ; and

NOTE. The preliminary environmental standards are attached in Appendix A, but are not part of the rule; they are included for informational purposes only. The criteria of this rule are based on the preliminary environmental standards, but do not incorporate the standards verbatim. Criteria based on the preliminary standards have been included in the rule to the extent amenable to consideration without duplicating the technical review role of the DEP and LUPC.

G. Existing uses on adjacent properties, including public or private schools, may not be in significant conflict with or significantly jeopardized by the use of a site.

Based on the above factors, we have adopted exclusion criteria and preference criteria. The exclusion criteria reflect minimum acceptable siting practice and are intended to be applied as minimum standards that must be met by all solid waste disposal facilities. The preference criteria are intended to direct site investigation activities away from areas that are marginally acceptable and to areas with attributes considered favorable to the siting of solid waste disposal facilities. The preference criteria are to be used to evaluate or compare non-excluded lands, but are not intended to be applied as minimum standards.

We recognize that no site is likely to meet each of the preference criteria and that some of the preference criteria may be accorded more importance than others. As directed under section 2153. the siting criteria address several waste management factors (e.g. cost, compatibility with adjacent land uses, environmental standards) that bear on the site selection process. Accordingly, application of the criteria requires the weighing of the relative importance of sometimes conflicting environmental, technical performance, social and economic factors. This rule will, as a practical matter, lead to the selection of sites that reflect this balancing of environmental and socioeconomic factors.

Because many of the criteria of this rule are based on existing environmental standards, sites selected using these criteria are presumed to have an increased likelihood of obtaining necessary regulatory permits and of being developed in a timely manner. However, compliance with the criteria does not guarantee that a site will meet regulatory standards. Application of the criteria is a preliminary process, providing only a rational basis for identifying sites that appear to be appropriate areas in which to conduct the intensive studies required for regulatory review. The final decision on environmental suitability of a proposed site rests with the BEP and other state or federal regulatory agencies with jurisdiction over solid waste disposal activities. Following selection of a site and before beginning construction, all applicable permits must be obtained from these agencies and from the host municipality to the extent required under municipal ordinances adopted in accordance with 38 M.R.S.A., section 1310-U. In particular, the BEP has adopted detailed Solid Waste Management Rules "designed to minimize pollution of the state's air, land and surface and ground water resources, prevent the spread of disease or other health hazards, prevent contamination of drinking water supplies, and protect the public health and safety." All solid waste disposal facilities must be engineered, constructed, operated, and closed in accordance with these comprehensive rules.

The Facility Siting Board recognizes that public involvement in the identification and selection of sites for solid waste disposal facilities will improve decision-making by increasing understanding of waste management problems, options, risks and opportunities. Therefore, it is the policy of the Facility Siting Board to promote public participation and information exchange in all proceedings under this rule.

This rule does not impose a particular method of public involvement as no single approach to public involvement may be generally applicable. The particular circumstances of a given siting process should guide the selection appropriate mechanisms in addition to the public hearings required under 38 M.R.S.A. sections 2154.

SECTION 2. DEFINITIONS

The following terms, as used in this Chapter, shall have the following meanings:

A. Agency. "Agency" means the Department of Economic and Community Development.

B. Agricultural Waste. "Agricultural waste" means wastes that result from the growing of vegetables, fruit, seeds, nursery crops, poultry, livestock, field crops, cultivated or pasture hay, and farm woodlot products including Christmas trees. The term includes waste pesticides when generated by a farmer in his or her own use, provided that he or she triple rinses each emptied pesticide container in accordance with DEP rules and disposes of the pesticide in a manner consistent with the disposal instructions on the pesticide label.

C. BEP. "BEP" means the Maine Board of Environmental Protection.

D. Biomedical Waste. "Biomedical waste", as defined in 38 M.R.S.A., section 1303-C, subsection 1-A, means waste that may contain human pathogens of sufficient virulence and in sufficient concentration that exposure to it by a susceptible human host could result in disease or that may contain cytotoxic chemicals used in medical treatment.

NOTE. Under Maine law, biomedical waste is excluded from the definition of solid waste (see subsection WW of this section) and is regulated separately from solid waste. The handling, treatment and disposal of biomedical waste is governed by Chapter 900 of the DEP regulations.

E. Class I Wetland. “Class I wetland" means a:

1. Coastal wetland

2. Freshwater wetland with one or more of the following characteristics:

a. contains endangered or threatened plant species on the Official List of Endangered and Threatened Plants of the State of Maine, based on documentation of current or past observations of occurrence;

b. contains a palustrine (freshwater wetland) natural community listed on the Maine Natural Community Classification and ranked S1 or S2 (20 or fewer documented occurrences in Maine); or

c. contains significant wildlife habitat.

F. Class II Wetland. "Class II wetland" means a freshwater wetland that does not contain any characteristics of a Class I wetland, but does contain one or more of the following characteristics:

1. Is located within 250 feet of the normal high water line of a coastal wetland;

2. Is located within 250 feet of the normal high water line, and within the same watershed, of any lake or pond classified as GPA under 38 M.R.S.A., §465-A;

3. Is located within 250 feet of the normal high water line, and is contiguous to, a river, stream or brook, including any impoundments not classified as GPA:

NOTE. More than one classification may apply to the same wetland, depending on the distance to a water body.

4. Contains at least 20,000 square feet of aquatic vegetation emergent marsh vegetation or open water during most of the growing season in most years;

5. Is a bog consisting of peatland dominated by ericaceous shrubs (heath family), sedges and sphagnum moss and usually having a saturated water regime, or

6. Is within the 100-year floodplain of a river, stream or brook.

G. Class III Wetland. "Class III wetland" means a freshwater wetland that does not have any of the characteristics of a Class I or Class II wetlands

NOTE. Examples of typical Class III wetlands include wet meadows and wooded swamps that are not contiguous to any water bodies.

H. Coastal Wetlands. "Coastal wetlands", as defined in 38 M.R.S.A., section 480-B(2), means all tidal and subtidal lands, including all areas below an identifiable debris line left by tidal action; all areas with vegetation present that is tolerant of salt water and occurs primarily in a salt water or estuarine habitat; and any swamp, marsh, bog, beach, flat or other contiguous lowland that is subject to tidal action during the maximum spring tide level as identified in tide tables published by the National Ocean Service. Coastal wetlands may include portions of coastal sand dunes.

I. Commercial Solid Waste Disposal Facility. "Commercial solid waste disposal facility" means a privately-owned solid waste disposal facility that accepts solid waste from another for consideration and is used for the incineration or landfilling of solid waste generated by persons who do not own or operate the facility. The term does not include a solid waste disposal facility owned, controlled, operated or used exclusively by:

1. A public waste disposal corporation formed under 38 M.R.S.A., section 1304-B, subsection 5;

2. A municipality acting under 38 M.R.S.A., section 1305;

3. A refuse disposal district formed under the Maine Refuse Disposal District Enabling Act , 38 M.R.S.A., section 1701 et. et seq .;

4. The Agency.

5. The person or entity generating the solid waste disposed of at the facility, except that the facility may accept, on a nonprofit basis, no more than 15% of all solid waste accepted on an annual average that is not generated by the owner. A solid waste disposal facility receiving ash resulting from the combustion of municipal solid waste or refuse-derived fuel is not exempt from this subsection solely by the operation of this paragraph; or

6. A private corporation that accepts material-separated, refuse-derived fuel as a supplemental fuel and does not otherwise burn waste other than its own.

J. Community Water Supply. “Community water supply” means a public drinking water supply that is operated by a water utility as defined in 35-A M.R.S.A., section 102, subsection 22, and that serves at least 15 service connections used by year-round residents or regularly serves at least 25 year-round residents.

K. Construction and Demolition Debris. "Construction and demolition debris", as defined in 38 M.R.S.A., Section 1303-C(8), means debris resulting from construction, remodeling, repair and demolition of structures. It excludes asbestos and other special wastes.

L. DEP. "DEP" means the Maine Department of Environmental Protection.

M. Disposal. "Disposal" means the discharge, deposit, dumping, incineration, spilling, leaking or placing of any solid waste, refuse-derived fuel or sludge into or on any land, air or water so that the solid waste or sludge or any constituent thereof may enter the environment or be emitted into the air, or discharged into any waters, including ground waters. The term "disposal" does not include "utilization" of solid waste as defined in this section and regulated under Chapters 408, 409 and 567 of the DEP regulations.

N. Exclusion Criteria "Exclusion criteria" means those siting criteria that exclude land area from consideration as a site for a solid waste disposal facility.

O. Facility Site. "Facility site" means any developed land area of a solid waste disposal facility, whether used for disposal or not, including roads, drainage ways, structures, parking lots, and handling sites.

P. Fault Area. Fault area means an area of fractures along which rocks or soils on one side have been displaced with respect to the other side.

Q. Federal Park. See "Park", this section.

R. Floodplain. “Floodplain" means any lowland and relatively flat area adjoining inland and coastal waters, including flood prone areas of offshore islands, that is naturally subject to flooding at high water.

1. 100-Year Floodplain. Any floodplain that is inundated by a flood having a 1 percent or greater chance of recurrence in any year or a flood of a magnitude equaled or exceeded once in 100 years on the average.

2. 500-Year Floodplain. Any floodplain that is inundated by a flood having a 0.2 percent or greater chance of recurrence in any year or a .flood of a magnitude equaled or exceeded once in 500 years on the average.

S. Fragile Mountain Area. "Fragile mountain area", as defined in 38 M.R.S.A., section 480-B(3), means areas above 2700 feet in elevation from mean sea level.

T. Freshwater Wetlands. "Freshwater wetlands" means freshwater swamps, marshes, bogs and similar areas that are:

1. inundated or saturated by surface or ground water at a frequency and for a duration sufficient to support, and that under normal circumstances do support, a prevalence of wetland vegetation typically adapted for life in saturated soils; and,

2. not considered part of a great pond, coastal wetland, river, stream or brook.

These areas may contain small stream channels or inclusions of land that do not conform to the criteria of this subsection.

U. Great Pond. "Great pond" means any inland body of water that in a natural state has a surface area in excess of 10 acres and any inland body of water artificially formed or increased which has a surface area in excess of 30 acres.

V. Handling Site. "Handling site" means any land area, including structures contained within a facility site, that will be used to store, transfer, collect, separate, salvage, process, recycle, reduce, recover, incinerate, dispose of or treat handle solid waste.

W. Hazardous Waste. “Hazardous waste", as defined in 38 M.R.S.A., section 1303-C, subsection 15, means a waste substance or material, in any physical state, designated as hazardous by the Board under 38 M.R.S.A, section 1319-0. It does not include waste resulting from normal household or agricultural activities.

NOTE. Under Maine law. hazardous waste is excluded from the definition of solid waste (see subsection WW of this section) and are regulated separately from solid waste. The handling, treatment and disposal of hazardous waste is governed by Chapters 800 through 857 of the DEP regulations.

X. Incineration Facility. "Incineration facility", as defined in 38 M.R.S.A., section 1303-C(16) means a facility where municipal solid waste or refuse-derived fuel is disposed of through combustion, including combustion for the generation of heat, steam or electricity.

Y. Inert Fill. "Inert fill", as defined in 38 M.R.S.A., section 1303-C(17), means clean soil material, rocks, bricks, and cured concrete, that are not mixed with other waste, and that are not derived from an ore mining activity.

Z. Land Clearing Debris. "Land clearing debris", as defined in 38 M.R.S.A., section 1303‑C(18), means solid wastes resulting from the clearing of land and consisting solely of brush, stumps, soil material and rocks.

AA. Landscape Refuse. "Landscape refuse" means grass clippings, leaves, prunings and other similar debris generated from lawn care and gardening.

BB. Local Park. See “Park". this section.

CC. Locally Designated Scenic Locations. "Locally designated scenic locations" means any location that has been designated by the municipality for its scenic quality, that is open for public use and that:

1. has fixed boundaries;

2. is owned in fee by municipality, is accessible by virtue of a public easement, or is identified and described in a local comprehensive plan; and

3. is regulated in a zoning or land use ordinance enacted by the municipality to protect the designated location.

DD. LUPC. "LUPC" means the Maine Land Use Planning Commission.

EE. Material-Separated, Refuse-Derived Fuel. "Material-separated, refuse-derived fuel", as defined in 38 M.R.S.A., section 1303-C, subsection 19-A means a binder-enhanced, pelletized, solid fuel product made from the combustible fraction of a municipal solid waste stream that has been processed to remove the recyclable material before combustion. The product may not contain more than 6% by weight of plastic, metal, glass or food waste. In addition. the production of material-separated, refuse derived fuel may not exceed 40% by weight of the total municipal solid waste stream from which it was derived.

FF. Municipal Solid Waste. "Municipal solid waste" means solid waste emanating from domestic and normal commercial sources.

GG. Normal High Water Line. “Normal high water line" means that line along the shore of great pond, river stream, or brook or other non-tidal body of water which is apparent from visible markings, changes in the character of soils due to prolonged action of the water or from changes in vegetation and which distinguishes between predominantly aquatic and predominantly terrestrial land.

HH. Outstanding River Segment. "Outstanding river segment" means those rivers or river segments and designated tributaries, that because of their outstanding natural and recreational values were classified as "A" or "B" in the 1982 Maine Rivers Study, prepared by the Maine Department of Conservation in conjunction with the National Park Service.

NOTE: Class "A" rivers include those rivers or river segments identified in the 1982 Maine Rivers Study, that possess six resource values with regional, statewide or greater than statewide significance in a specific resource category or that possess two or more resource values that are recognized to be some of the state's most significant in a given resource category. Included in this latter category are rivers providing important habitat for sea run salmon. Class "B" rivers include those rivers or river segments identified in the 1982 Maine Rivers Study that possess four or five resource values with regional, statewide or greater than statewide significance in a specific resource category or that possess one resource value that is recognized to be one of the state's most significant in a given resource category.

II. Park

1. Park, Federal. "Federal park” means a tract of land designated by a federal agency for use by the public for active or passive recreation including historic sites. Federal parks include tracts of land owned in fee, or lesser interest, by the National Park Service for use by the general public for active or passive recreation or for open space preservation, including tracts of land as yet undeveloped.

2. Park, Local. "Local park” means a tract of land that is:

a. designated preserved in perpetuity by a municipality for use by the public for active or passive recreation including historic sites; and that:

b. has fixed boundaries; and

c. is owned in fee by the municipality or is accessible by virtue of a public easement.

3. Park, State. "State park” means a tract of land designated by a state agency for use by the public for active or passive recreation including historic sites. State parks include tracts of land owned in fee, or lesser interest, by the state Bureau of Parks and Recreation for use by the general public for active or passive recreation or for open space preservation, including tracts of land as yet undeveloped, but excluding boat facilities developed by the Bureau (or with Bureau assistance) outside of state parks.

The term "park" does not include federal, state or local roadside rest areas or information centers,

JJ. Preference Criteria. "Preference criteria” means those siting criteria that give preference to land areas possessing attributes favorable to the siting of a solid waste disposal facility. Preference criteria are used to evaluate the suitability of land area that is not eliminated from consideration under the exclusion criteria.

KK. Primary Viewing Locations. “Primary viewing locations” means parks; the Appalachian Trail; the ocean; coastal islands; the shores of the ocean and coastal islands open to the public; great ponds; the shores of great ponds and great pond islands open to the public; outstanding river segments; those highway stretches, including roadside rest areas, designated by the Maine Department of Transportation as a scenic highway; locally designated scenic locations; and the interstate highway system including roadside rest areas.

LL. Private Drinking Water Supply. "Private drinking water supply" means any well, spring or surface water intake that is used to supply water for human or domestic animal consumption at least 30 days out of the year and that is not a public drinking water supply.

MM. Private Preserve. "Private preserve" means lands subject to a conservation easement as defined in 33 M.R.S.A., section 476, or lands held in fee for the express purpose of its conservation, historic preservation and/or recreation.

NN. Public Drinking Water Supply. "Public drinking water supply" means any well, spring or surface water intake used to furnish water for human consumption, if such system has at least 15 service connections, regularly serves an average of 25 individuals daily at least 30 days out of the year, or supplies bottled water for sale,

OO. Recycling. "Recycling" as defined in 38 M.R.S.A., section 11303-C(22) means the collection, separation, recovery and sale or reuse of materials that would otherwise be disposed of or processed as waste or the mechanized separation and treatment of waste, other than through combustion, and the creation and recovery of reusable materials other than as a fuel for the generation of electricity.

PP. Refuse Derived Fuel. "Refuse derived fuel" as defined in M.R.S.A., section T303-C(23), means municipal solid waste that has been processed prior to combustion to increase the heat input value of the waste.

QQ. Research Lands. "Research lands” means those lands held in fee by an established college or university that have been and continue to be used for test plot research by the college or university.

RR. River, Stream, or Brook. "River, stream or brook", as defined in 38 M.R.S.A., section 480-B(9), means a channel between defined banks including the floodway and associated flood plain wetlands where the channel is created by the action of surface water and characterized by the lack of upland vegetation or presence of aquatic vegetation and by the presence of a bed devoid of top soil containing water-borne deposits on exposed soil, parent material or bedrock. This term includes any “intermittent river, stream or brook” and any “perennial river, stream or brook”.

1. Intermittent River, Stream or Brook. "Intermittent river, stream or brook" means a river, stream or brook that does not flow in all 12 months of the year.

2. Perennial River, Stream or Brook. "Perennial river, stream or brook" means a river, stream or brook that generally carries a flow of water all year round.

SS. Sand and Gravel Deposit. "Sand and gravel deposit" means a surficial geological formation such as an esker, outwash plain, glaciomarine delta, kame, stratified moraine or other stratified deposits commonly consisting of sand and/or gravel.

TT. Septage. "Septage" as defined in 38 M.R.S.A., section 1303-C(27), means waste, refuse, effluent, sludge and other materials from septic tanks, cesspools or any other similar facilities.

UU. Significant Sand and Gravel Aquifer. Significant sand and gravel aquifer", as defined in 38 M.R.S.A., section 1310-N(2-A)(A), means a porous formation of ice-contact and glacial outwash sand and gravel that contains significant recoverable quantities of water which are likely to provide drinking water supplies.

VV. Significant Wildlife Habitat. "Significant wildlife habitat" means any of the following areas, whether or not mapped; habitat for species appearing on the official state or federal lists of endangered or threatened species where there has been evidence of the occurrence of the species; high and moderate value deer wintering areas and travel corridors as defined by the Department of Inland Fisheries and Wildlife; high and moderate value waterfowl and wading bird habitat, including nesting and feeding areas as defined by the Department of Inland Fisheries and Wildlife; critical spawning and nursery areas for Atlantic sea run salmon as defined by the Atlantic Sea Run Salmon Commission; and shorebird nesting, feeding and staging areas and seabird nesting islands as defined by the Department of Inland Fisheries and Wildlife.

WW. Solid Waste. "Solid waste", means useless, unwanted or discarded solid material with insufficient liquid content to be free-flowing, including, but not limited to, rubbish, garbage, refuse-derived fuel, scrap materials junk, refuse, inert fill material, landscape refuse, municipal solid waste and special waste, but does not include agricultural wastes returned to the soil as fertilizers, hazardous waste, biomedical waste or septage. The fact that a solid waste or constituent of the waste may have value or other use or may be sold or exchanged does not exclude it from this definition.

XX. Solid Waste Boundary. "Solid waste boundary” means the outermost limit of the solid waste (projected on a horizontal plane) as it would exist when the solid waste disposal facility reaches its permitted capacity.

NOTE: The area encompassed by the solid waste boundary is commonly called the "landfill footprint".

YY. Solid Waste Disposal Facility. "Solid waste disposal facility", means any land area, structure, location, equipment, or combination of them used for the incineration or landfilling of solid waste, except that the following facilities are not solid waste disposal facilities:

1. Generator-owned Combustion Facilities. Any land area, structure, location, equipment, or combination of them that employs controlled combustion to dispose of waste generated exclusively by a commercial institutional, or industrial establishment that owns the facility;

2. Kilns and Boilers. Lime kilns, wood chip, bark and hogged fuel boilers; Kraft recovery boilers and sulfite process recovery boilers, that burn solid waste generated exclusively at the facility;

3. Burning of Material-separated, Refuse-derived Fuel. Any facility that burns material-separated. refuse-derived fuel.

4. Burning of Yard Waste by Homeowners. A land area or structure used by its residential owner or lessee solely to burn leaves, brush, deadwood, and tree cuttings accrued from normal maintenance of their residential property, when such burning is permitted under 38 M.R.S.A., section 599, subsection 3;

5. Burning of Trash by Homeowners. A land area or structure used by its residential owner or lessee solely to burn highly combustible domestic, household trash such as paper, cardboard cartons or wood boxes, when such burning is permitted under 38 M.R.S.A., section 599, subsection 3;

6. Transfer Stations. Any facility constructed and managed for the storage or processing and placement of solid waste in large containers or vehicles for movement to another waste facility;

7. Recycling Facilities, Composting Facilities, Other Waste Processing Facilities and Landspreading Sites. Any recycling facility composting facility, landspreading site or other processing facility or utilization facility as defined and regulated by DEP under Chapters 567, 408 and 409 of its regulations; or

8. Burning of Paper and Cardboard. Until June 30. 1993, an industrial boiler that burns mixed paper, corrugated cardboard or office paper to generate heat, steam or electricity if the conditions set forth in 38 M.R.S.A .. section 1303-C, subsection 31, paragraphs (1) through (4) are met.

ZZ. Solid Waste Landfill. "Solid waste landfill", as defined means a waste disposal facility for the disposal of solid waste on or in land. This term does not include landspreading sites used in programs approved by the Department.

AAA. Special Waste. "Special waste”, as defined in 38 M.R.S.A., section 1303-C(34), means any solid waste generated by sources other than domestic and typical commercial establishments that exists in such an unusual quantity or in such a chemical or physical state, or any combination thereof, that may disrupt or impair effective waste management or threaten the public health, human safety or the environment and requires special handling, transportation and disposal procedures. Special waste includes, but is not limited to:

1. Oil, coal, wood and multi-fuel boiler and incinerator ash;

2. Industrial and industrial process waste;

3. Waste water treatment plant sludge, paper mill sludge and other sludge waste;

4. Debris and residuals from nonhazardous chemical spills and cleanup of those spills;

5. Contaminated soils and dredge spoils;

6. Asbestos and asbestos-containing waste;

7. Sand blast grit and non-liquid paint waste;

8. High and low pH waste;

9. Spent filter media and residue; and

10. Other waste designated by the board (BEP), by rule.

BBB. State Park. See "Park", this section.

CCC. State Plan. "State plan" means the State Waste Management and Recycling Plan adopted by the Agency pursuant to Title 38, chapter 24, subchapter 11.

DDD. Utilization. "Utilization" means the controlled land application of materials (including but not limited to pulp and paper mill wastewater treatment plant sludge, food and fiber processing wastes.. municipal wastewater sludge, vegetable and fish processing residuals, and ash from wood boilers) at a rate commensurate with the nutritional needs of the crop to be grown and the assimilative capacity of the soil, usually requiring harvesting of the crop to compensate for the added nutrients. Some utilization programs may also have the improvement of soil conditions as a primary goal.

EEE. Waste Facility Boundary. "Waste facility boundary” means the outermost limit of the solid waste disposal facility, whether used for disposal or not. It includes the area encompassed by solid waste boundary plus all associated structures, storage areas, equipment or land area used to handle solid waste. The access road is not included within the waste facility boundary.

FFF. Wetland. See definitions for Class I Wetland, Class II Wetland, Class III Wetland, Coastal Wetlands and Freshwater Wetlands.

GGG. Wildlife Management Area. "Wildlife management area", as defined in 12 M.R.S.A., section 7001-A(44), means any tract of land or body of water owned or leased by the Department of Inland Fisheries and Wildlife (IFW), for the purposes of wildlife management as defined in subsection 43 or created by an Act of the Legislature with the landowner's permission, and subject to the IFW) commissioner's authority under 12 M.R.S.A., section 7653.

HHH. Wood Wastes. "Wood wastes", as defined in 38 M.R.S.A., section 1303-C(46), means brush, stumps, lumber, bark, woodchips, shavings, slabs, edgings, slash and sawdust, which are not mixed with other waste.

SECTION 3. APPLICABILITY

A. Agency Owned and operated Facilities. The Facility Siting Board is responsible for making all final decisions on the choice of specific sites for solid waste disposal facilities owned, operated or controlled by the Agency. Prior to submitting a specific site to the DEP for review, the Facility Siting Board must find that the site meets the criteria set forth in this chapter.

B. Non-Agency Facilities. Prior to obtaining approval from the BEP, any municipality, regional association or other entity choosing to develop a new or expanded solid waste disposal facility must demonstrate to the Agency that, among other things, the proposed facility meets the criteria set forth in this chapter. The procedure for obtaining Agency review and approval is set forth in chapter 410 of its regulations.

C. Exempt Facilities

1. Previously-approved Facilities. Solid waste disposal facilities approved by the BEP or the Agency prior to the effective date of this chapter.

2. Certain Expansions. An expansion of a commercial solid waste disposal facility or a solid waste disposal facility owned by a municipality or a regional association or a sanitary district created under 38 M.R.S.A., section 1061 et. seq. or by special act of the Legislature, if the facility was licensed and in existence as of October 1, 1989, and at the time of application for the expansion.

3. Inert Fill, Construction Debris, Land Clearing Debris and Wood Wastes. Solid waste disposal facilities that accept only inert fill, construction and demolition debris, land clearing debris and wood wastes provided the landfill footprint encompasses less than 6 acres,

NOTE. In determining whether the landfill footprint encompasses less than 6 acres, the Agency may combine non-contiguous land areas if the development and operation of the non-contiguous land areas exhibits characteristics of a unified approach. method or effect.

4. Generator-owned Facilities. Solid waste disposal facilities used exclusively for the disposal of waste generated by the owner of the facility except that the facility may accept on a nonprofit basis, no .more than 15% of all solid waste accepted on an annual average which is not generated by the owner. Notwithstanding this section a solid waste disposal facility receiving ash resulting from the combustion of municipal solid waste or fuel derived from municipal solid waste is not exempt unless a completed application for the facility has been accepted by the Department prior to July 1, 1989.

5. Facilities Exempt from Regulation by the DEP. Any solid waste disposal facility that is exempt from regulation by the DEP under its Solid Waste Management Rules, Chapters 400 through 409.

SECTION 4. SITING CRITERIA FOR ALL SOLID WASTE DISPOSAL FACILTIES

The criteria set forth in this section apply to the siting of incineration facilities and solid waste landfills.

A. Exclusion Criteria

1. Groundwater Protection

Exclude the waste facility boundary from areas that overlie a significant sand and gravel aquifer areas identified as sand and gravel deposits, and areas zoned Aquifer Protection Subdistricts (P-AR) by LUPC.

2. Surface Water Protection

a. Exclude the waste facility boundary from areas within 300 feet of the normal high water line of a great pond and from areas zoned Great Pond Protection Subdistrict (P-GP) by LUPC.

b. Exclude the solid waste boundary of a landfill and the handling site of an incineration facility from areas within:

i. the watershed of a rivers. stream or brook classified AA under 38 M.R.S.A, sections 467 or 468;

ii. 300 feet of the normal high water line of a river, stream or brook classified A or SA under 38 M.R.S.A., sections 467, 468 and 469, and

iii. 100 feet of the normal high water line of all other perennial rivers, streams or brooks.

c. Exclude the solid waste boundary from areas zoned Shoreland Protection Subdistrict 1 (P-SL1) by LUPC.

d. Exclude the waste facility boundary from areas within 300 feet of a Class I wetland and from areas zoned Wetland Protection Subdistrict (P-WL) by LUPC.

e. Exclude the handling site from the 100-year floodplain.

3. Protection of Community Water Supplies

Exclude the waste facility boundary from areas within 1000 feet of community water supply.

4. Geology

a. Exclude the waste facility site from areas zoned Soils and Geology Protection Subdistricts (P-SG) by LUPC.

b. Exclude the landfill handling site from areas that overlie a mapped or obvious unstable area where mass movement of earth materials such as landslides, rockfalls, mudslides, slumps, earth flows, subsidence or debris flows have occurred during Holocene time.

5. Protection of Wildlife

a. Exclude the facility site from wildlife management areas owned and administered by the Maine Department of Inland Fisheries and Wildlife.

b. Exclude the facility site from state or federally designated wildlife sanctuaries, refuges or preserves.

c. Exclude the facility site from areas of known significant wildlife habitat as determined by the Maine Department of Inland Fisheries and Wildlife, or the Maine Department of Marine Resources, whether and from fragile mountain areas, critical areas identified by the State Planning Office and any area zoned as a Fish and Wildlife Protection Subdistrict (P-FW), Mountain Area Protection Subdistrict (P-MA), or Unusual Area Protection Subdistrict, (P-UA) by LUPC.

6. Protection of Parks and Other Natural Areas

a. Exclude the facility site from areas within 1000 feet of the boundaries of state parks including Baxter State Park and the Allagash Wilderness Waterway, federal parks including the Appalachian Trail, and local parks and public lands acquired with Land for Maine's Future Funds.

b. Exclude the facility site from areas within 1000 feet of outstanding river segments and any river segment within an area zoned Recreation Protection Subdistrict (P-RR) or Resource Plan Protection Subdistrict; (P-RP) by LUPC.

c. Exclude the facility site from areas within:

i. 1320 feet (1/4 mile) of the normal high water line of a Management Class 1, 2 or 4 lake identified by LUPC; and

ii. 2640 feet (1/2 mile) of the normal high water line of a Management Class 6 identified by LUPC.

d. Exclude the facility site from forest and wilderness lands owned and administered by the federal government.

e. Exclude the facility site from public reserved lands managed by the Maine Department of Conservation, Bureau of Public Lands, under 12 M.R.S.A., section 585.

f. Exclude the facility site from private preserves held by a land trust or other private, non-profit organization qualifying for charitable tax-exempt status with the Internal Revenue Service.

7. Protection of Archaeological and Historical Resources. Exclude the facility site from:

a. archaeological and historic sites, properties or districts listed in the National Register of Historic Places or deemed eligible by the Maine Historic Preservation Commission for listing in the National Register or on the Maine Historic Resource Inventory;

b. other areas that are established by qualified testimony as being of historical significance;

c. lands zoned Unusual Area Protection Subdistrict (P-UA) by LUPC.

8. Other

For Agency-owned facilities used for the landfilling or incineration of special waste, exclude the facility site from areas within 5 miles of a commercial solid waste disposal facility that is an incineration facility or that is a landfill approved for the disposal of special waste.

B. Preference Criteria

1. Groundwater Protection

Give preference to areas where the waste facility boundary can be located greater than 300 feet from a significant sand and gravel aquifers and other sand and gravel deposits.

2. Surface Water Protection

a. Give preference to areas where the waste facility site can be located greater than 1000 feet from the normal high water line of a Great Pond.

b. When within the watershed of a river, stream or brook classified as Glass A, or SA under 38 M.R.S.A., sections 467, 468 and 469, give preference to areas where the solid waste boundary of a landfill or handling site of an incineration facility can be located greater than 1000 feet from the normal high water line of the a Class A or SA surface water. Within all other non-excluded watersheds, give preference to areas where the solid waste boundary of a landfill footprint or the handling site of an incineration facility can be located greater than 300 feet from the normal high water line of perennial rivers, streams or brooks.

c. Give preference to areas where the waste facility boundary can be located without requiring the diversion, channelization or piping of an intermittent river. stream or brook.

d. Give preference to areas where the solid waste boundary of a landfill or handling site of an incineration facility can be located greater than 100 feet from the seasonal high water mark of an intermittent river, stream or brook.

e. Give preference to areas where the waste facility boundary can be located greater than 1000 feet from a Class I wetland.

f. Give preference to areas sites where the waste facility boundary can be located greater than 1000 feet from areas zoned Wetlands Protection Subdistrict (P-WL) by LUPC.

g. Give preference to areas sites that minimize the need to fill or otherwise alter Class II and Class III wetlands.

NOTE. The DEP regulations governing landfills create a preference for relatively impermeable soils and therefore lead to sites that are likely at support wetlands. The wetland protection regulations administered by the EPA and U. S. Army Corps of Engineers create a preference for sites where no wetland disturbance or filling would occur.

h. Give preference to areas where the handling site can be located beyond the 500 year floodplain.

3. Geology

a. Give preference to areas where the waste facility boundary can be located greater than 200 feet from a fault area.

b. Give preference to areas where the solid waste boundary of a landfill or facility site of an incineration facility encompass land having an existing average slope of 8 percent or less.

4. Protection of Wildlife

a. Give preference to areas where the facility site can be located greater than 1000 feet from wildlife management areas owned and administered by the Maine Department of Inland Fisheries and Wildlife.

b. Give preference to areas where the facility site can be located greater than 1000 feet from state or federally designated wildlife sanctuaries, refuges or preserves.

c. Give preference to areas where the facility site can be located greater than 300 feet from areas of known significant wildlife habitat as determined by the Maine Department of Inland Fisheries and Wildlife or the Maine Department of Marine Resources, and 300 feet from fragile mountain areas, critical areas identified by the State Planning Office and areas zoned as a Fish and Wildlife Protection Subdistrict (P-FW), Mountain Area Protection Subdistrict (P-MA), or Unusual Area Protection Subdistrict, (P-UA) by LUPC.

5. Protection of Parks and Other Natural Areas

a. Give preference to areas where the facility site can be located greater than 2,640 feet (1/2 mile) from the boundaries of state parks including Baxter State Park and the Allagash Wilderness Waterway, federal parks including the Appalachian Trail, and local parks and public lands acquired with Land for Maine's Future Funds.

b. Give preference to areas where the waste facility boundary site will not lie closer than 2640 feet (1/2 mile) from the normal high water line of a Management Class 1, 2, or 4 lake identified by LUPC.

c. Give reference to areas where the facility site can be located greater than 1000 feet from forest and wilderness lands owned and administered by the Federal Government.

d. Give preference to sites where the facility site can be located greater than 1000 feet from public reserved lands managed by the Maine Department of Conservation, Bureau of Public Lands, under 12 M.R.S.A., section 585.

e. Give preference to areas where the facility site can be located greater than 1000 feet from private preserve lands held by a land trust or other private, nonprofit organization qualifying for charitable tax-exempt status with the Internal Revenue Service.

f. Give preference to areas where the solid waste disposal facility can be developed so that it is not visible from primary viewing locations as defined in section 2 or so that its visibility from these locations is minimized.

6. Protection of Archaeological and Historical Resources

Give preference to areas where the facility site can be located greater than 300 feet from:

a. archaeological and historic sites, properties or districts listed in the National Register of Historic Places or deemed eligible by the Maine Historic Preservation Commission for listing in the National Register and/or on the Maine Historic Resource Inventory; and

b. other areas that are established by qualified testimony as being of historical significance.

7. Land Use

a. Give preference to areas where the facility site will not be located on research lands owned by an established college or university.

b. Give preference to sites where the facility can be developed so that it will not conflict significantly with or jeopardize existing adjacent land uses, including public and private schools and multiple drinking water supplies. In applying this criterion, consideration should be given to the ability to minimize land use conflicts through the provision of buffer strips, landscaping and visual screening.

8. Transportation

Give preference to areas located in proximity to the public road systems and existing or potential railroad systems necessary to safely and efficiently move solid waste from the point of generation to the solid waste disposal facility. Site screening and selection should account for the need to transport waste to and reusable and recyclable materials from the site. Sites should be selected so as to minimize or eliminate adverse traffic impacts on residential, commercial and institutional land uses and on transportation systems associated with the movement of wastes and other materials.

NOTE. In applying this criterion, it is not the intent of the Facility Siting Board to undertake the traffic impact analysis required for DEP review of solid waste disposal facilities.

9. Site Size

Give preference to areas that are likely to accommodate a facility of sufficient size to meet capacity need for solid waste disposal facilities as identified in the State Plan. The capacity or size of the solid waste disposal facility to be sited must be consistent with the capacity need projected for the geographic region to be served by the facility. Capacity is a function of both the amount of waste disposed, the period of time that the need to dispose of the waste is manifest, rates of change in the production of waste and the creation of a reserve capacity to accommodate probable contingencies. When applying this criterion, the need for adequate buffer zones between the facility and adjacent properties, as well as the need for support facilities including access roads and on-site leachate treatment if necessary, shall be considered.

10. Consistency with Other Waste Management Objectives

Give preference to areas that will be consistent with and actively support other waste management objectives, including reuse, recycling, composting and processing that reduces the volume of waste. Site screening and selection must account for the need to integrate the proposed disposal facilities into the overall management of solid waste in the facility's service area and the achievement of the state's solid waste recycling goals. Solid waste disposal facilities should, whenever appropriate, be located to accommodate waste reuse and processing, including recycling and composting at the same location, and also should be located to facilitate recovery of the landfilled waste in the event that such recovery becomes technically and economically feasible.

11. Cost

Give preference to areas sites that will result in a reasonable price for site development, construction and operation. Site development, including site screening and selection, host community benefits, planning, engineering, construction and operating costs for solid waste disposal facilities landfills will be passed along to users in the form of disposal fees. Disposal fees should be within the range of similar fees charged within the state at sites owned, operated or controlled by municipalities, disposal districts, the Agency and existing commercial facilities.

SECTION 5. ADDITIONAL SITING CRITERIA FOR LANDFILLS ONLY

A. Exclusion Criteria

1. Surface Water Protection

Exclude from consideration those sites that require the filling of combined total of more than 10 acres of Class 11 wetlands.

B. Preference Criteria

1. Groundwater Protection

a. Give preference to areas that, based on preliminary investigation appear to be groundwater discharge zones.

b. Give preference to areas where the solid waste boundary can be located in glaciomarine and/or glaciolacustrine clay-silt soils (such as Buxton) or fine grained glacial tills (such as Marlow).

2. Protection of Drinking Water Supplies

Give preference to areas where the solid waste boundary can be located greater than 1000 feet from wells, springs, or surface water intakes used for public or private water supply and in existence when the site is first identified for investigation.

3. Geology

a. For landfills designed to accept only construction and demolition debris, give preference to areas where the solid waste boundary will encompass soils with a natural depth of greater than 10 feet to bedrock. For all other landfills, give preference to areas where the solid waste boundary will encompass soils with a natural soil depth of greater than 15 feet to bedrock.

NOTE. The Facility Siting Board recognizes that accurate Information, on soil depth is not widely available in that soils generally have not been mapped below a depth of 5 feet. Usually natural soil depth can be ascertained only by conducting on-site investigations. In applying this criterion, it is not our intent to require soil depth determinations over a broad geographic region or area.. However, soil depth is an important factor in determining site suitability. Accordingly, borings or other techniques for determining bedrock depth usually will be required on a specific site prior to its submittal for consideration by the Facility Siting Board under 38 M.R.S.A., §2154, or the Agency under 38 M.R.S.A., §2157.

b. Give preference to areas where the solid waste boundary can be located in soils that contain less than 15 percent by volume of cobbles, stones and boulders.

4. Land Use

When putrescible waste is to be disposed, give preference to areas where the landfill handling site can be located more than 10.000 feet from any FAA licensed airport runway used by turbojet aircraft, or more than 5000 feet of any runway used only by pistontype aircraft.

NOTE. "Putrescible waste" is organic waste that produces foul odors when decomposing.

SECTION 6. ADDITIONAL SITING CRITERIA FOR INCINERATORS ONLY

A. Exclusion Criteria

1. Surface Water Protection

Exclude from consideration areas that require the filling of a combined total of more than 5 acres of Class II and Class III wetlands.

2. Protection of Parks and Other Natural Areas

Exclude the incineration facility from areas within 10 kilometers of a Class I area as identified in Chapter 114, section I(C) of the DEP's regulations.

NOTE. The Class I areas that could affect facility siting in Maine are: Acadia National Park, Moosehorn National Wildlife Refuge., the Roosevelt Campobello International Park located in New Brunswick, Canada, and the Presidential Range Dry River and Great Gulf Wilderness of the White Mountain National Forest.

3. Land Use

a. Exclude the incineration facility from areas where it would interfere with established flight paths.

b. Exclude the incineration facility from areas that are within the solid waste boundary of an active or closed solid waste landfill.

B. Preference Criteria

[RESERVED]

NOTE. There are no preference criteria specifically applicable incineration facilities only. The preference criteria for incineration facilities are limited to those set forth in section 4, subsection B.

History

• STATUTORY AUTHORITY: 38 M.R.S.A., section 2153, subsectio 6 1.
• EFFECTIVE DATE: September 14, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 22, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025
• EFFECTIVE DATE (ELECTRONIC CONVERSION): APPENDIX I
• EFFECTIVE DATE (ELECTRONIC CONVERSION): PRELIMINARY ENVIRONMENTAL STANDARDS
• EFFECTIVE DATE (ELECTRONIC CONVERSION): (NOTE: This Appendix is included for informational
• EFFECTIVE DATE (ELECTRONIC CONVERSION): purposes only. It is not part of the rule.]
• EFFECTIVE DATE (ELECTRONIC CONVERSION): John R. McKernan, Jr. C. Edwin Meadows, Jr.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Governor Commissioner
• EFFECTIVE DATE (ELECTRONIC CONVERSION): DEPARTMENT OF CONSERVATION
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Telephone (207) 289-2631 RECEIVED
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Toll Free Within Maine 1-800-452-8711
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 4, 1990
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Mr. Kenneth C. Young, Jr., Director
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Office of Siting
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Maine Waste Management Agency
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Augusta, Maine 04333
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Subject: Preliminary Environmental Standards
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Dear Mr. Young:
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 38 MRSA subsection 2153 requires the Maine Land Use Planning Commission and the Department of Environmental Protection to jointly develop preliminary environmental standards to be incorporated into the Siting Board's rules regarding solid waste facilities. The attached document is submitted to you pursuant to 38 MRSA subsection 2153.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): You will note that they are presented as Parts I and II. While divided into two parts to facilitate development of the preliminary environmental standards, they represent a single submission, having interrelated components, and should be viewed in that context when your agency incorporates them into final rules.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): It should be emphasized that this submission represents the joint "preliminary environmental criteria" for use by the Agency in the preparation of siting criteria to locate appropriate areas for further consideration as landfill and incinerator sites. The "Preliminary Environmental Standards” are not to be construed as to be more than a general guide to sites that have a higher probability of gaining approval from the Commission and Department.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): If you have any questions or would like further information, please do not hesitate to call.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Sincerely,
• EFFECTIVE DATE (ELECTRONIC CONVERSION): David E. Boulter, Executive Director
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Maine Land Use Regulation Commission
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Paula M. Clark, Director
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Bureau of Solid Waste Management
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Department of Environmental Protection
• EFFECTIVE DATE (ELECTRONIC CONVERSION): PRELIMINARY ENVIRONMENTAL STANDARDS
• EFFECTIVE DATE (ELECTRONIC CONVERSION): I. PRELIMINARY ENVIRONMENTAL STANDARDS BASED ON LUPC RULES
• EFFECTIVE DATE (ELECTRONIC CONVERSION): The Land Use Regulation Commission preliminary environmental standards for "Exclusionary Criteria" for both landfill handling areas and incinerators include all lands that are zoned as Protection Land Use Subdistricts or identified by the Commission as meeting the standards and criteria for such subdistricts within LUPC jurisdiction as defined in Chapter 10 of the Commission's Rules and Regulations, including:
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A. Aquifer Protection Subdistrict (P-AR)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): B. Flood Prone Area Protection Subdistrict (P-FP)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): C. Fish and Wildlife Protection Subdistrict (P-FW)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): D. Great Pond Protection Subdistrict (P-GP)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): E. Mountain Area Protection Subdistrict (P-MA)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): F. Resource Plan Protection Subdistrict (P-RP)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): G. Recreation Protection Subdistrict (P-RR)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): H. Soils and Geology Protection Subdistrict (P-SG)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): I. Shoreland Protection Subdistrict (P-SL)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): J. Unusual Area Protection Subdistrict (P-UA)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): K. Wetland Protection Subdistrict (P-WL)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): L. Special River Transition Protection Subdistrict (P-RT)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): In addition to Protection subdistricts, the following exclusionary criteria shall apply:
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. The landfill handling area or incinerator shall be excluded from areas that lie closer than 1320 feet (1/4 mile) to lakes classified as Management Class 1, 2 or 4 by the commission or lakes identified by the Commission that meet the standards for Management Class I or 2 but are not so classified because they are in the ownership or control of a state or federal agency.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. The landfill handling area or incinerator shall be excluded from areas that lie closer than 2640 feet (1/2 mile) to lakes classified as Management Class 6 by the Commission or lakes identified by the Commission that meet the standards for management class 6 but are not so classified because they are in the ownership or control of a state or federal agency.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 3. The landfill handling area or incinerator shall be excluded from property owned as a nature sanctuary, refuge, preserve, park, designated wilderness area, or public reserved lands under the statutes or regulations administered by the Department of Inland Fisheries and Wildlife, Bureau of Parks and Recreation, Bureau of Public Lands, Department of Marine Resources, U.S. Fish and Wildlife, National Park Service, or U.S. Department of Interior, or any critical area under statutes or regulations administered by the State Planning Office.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Within LUPC jurisdiction preference shall be given to sites where the solid waste handling area or incinerator can be located, screened or buffered as to minimize the adverse impact on surrounding areas and uses, and can be located in proximity to existing transportation, sewage treatment and/or utility. corridors. It is implicit that the greater the distance from an adjacent use that may be adversely impacted is preferable, as well as the closer the distance to existing transportation, sewage treatment and/or utility corridors is preferable.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Preference shall be given to sites where:
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. The landfill handling area or incinerator can be located more than 300 feet from a significant sand and gravel aquifer or outside the sand and gravel aquifer recharge zone - the greater the distance in excess of 300 feet, the greater the preference.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. The landfill handling area or incinerator can be located more than 1000 feet from a great pond, more than 1320 feet from a Management Class 1, 2 or 4 lake, or more than 2640 feet from a Management Class 6 lake - the greater the distance in excess of 1000 feet from a great pond, in excess of 1320 feet from a Management Class 1, 2, or 4 lake (including lakes identified as meeting Management Class 1 or 2 by the Commission but not so classified because they are in the ownership or control of a state or federal agency), or in excess of 2640 feet from a Management Class 6 lake, the greater the preference.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 3. The landfill handling area or incinerator can be located more than 1000 feet from significant river segments, areas zoned (P-RT) Special River Transition Protection Subdistrict, and/or areas zoned (P-RR) Recreation Protection Subdistrict - the greater the distance in excess of 1000 feet, the greater the preference.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 4. The landfill handling area or incinerator can be located more than 25 feet beyond the boundary of mapped and unmapped (P-SL2) Shoreland Protection Subdistricts - the greater the distance in excess of 25 feet, the greater the preference.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 5. The landfill handling area of incinerator can be located more than 1000 feet beyond the boundary of area zoned (P-UA) Unusual Area Protection Subdistrict - the greater the distance in excess of 1000 feet, the greater the preference.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 6. The landfill handling area or incinerator can be located outside of the primary viewing areas of recognized trails, state or federal parks, scenic highways, highway scenic turnouts or viewing points.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 7. The landfill handling area or incinerator can be located within five miles of a state aid road or other equivalent publicly owned road.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 8. The landfill handling area of incinerator can be located more than 500 feet from areas zoned (P-FW) Fish and Wildlife Protection Subdistrict or (P-MA) Mountain Area Protection Subdistrict - the greater the distance in excess of 500, the greater the preference.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 9. An adequate buffer can be kept between the landfill handling area or incinerator and any Protection Subdistrict zoned by the Commission.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): II. PRELIMINARY ENVIRONMENTAL STANDARDS BASED ON DEP SOLID WASTE MANAGEMENT RULES
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. Environmental Siting Standards for which No Variance Can Be Granted
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A. No solid waste disposal facility shall overlie a significant sand and gravel aquifer as that term is defined in 38 MRSA, section 1310-N(2-A)(A);
• EFFECTIVE DATE (ELECTRONIC CONVERSION): B. No proposed facility shall pose an unreasonable threat to the quality of a significant sand and gravel aquifer which it does not overlie; and
• EFFECTIVE DATE (ELECTRONIC CONVERSION): C. No proposed facility shall pose an unreasonable threat to the quality of an underlying fractured bedrock aquifer as that term is defined in 38 MRSA, section 1310-N(2-A) (B)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. Siting Standards for which a Variance May Be Possible
• EFFECTIVE DATE (ELECTRONIC CONVERSION): The following are considered to be significant minimum environmental standards for the location of a solid waste landfill. The inability of a proposed site to satisfy these conditions could significantly affect whether the site could receive environmental approval. However, a variance to any of these provisions may be requested. Whether a variance could be granted would depend upon whether clear and convincing evidence is presented that the facility's location, design, or construction would be distinctive in some way that provides for compliance with the intent of the State's laws and rules.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A. Ground Water Protection
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. No solid waste disposal facility shall overlie a sand or gravel deposit.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. The solid waste boundary shall not lie closer than 1000 feet to any wells or springs used for public or private water supply at the time the application is filed with the Department.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): B. Floodplains
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A landfill shall not be located on a 100-year floodplain.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): C. Buffer Strips
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A landfill facility boundary shall not lie closer than 1000 feet to a residence at the time the application is filed with the Department.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): D. Endangered Species
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. A landfill or its projected operation shall not cause or contribute to the taking of any endangered or threatened species of plants, fish or wildlife; and
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. A landfill or its operation shall not result in the destruction or adverse modification of the critical habitat of endangered or threatened species as identified in 50 CFR Part 17.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): E. Natural Areas
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. A landfill shall not be located in, on, or over a coastal wetland, a coastal sand dune system, a great pond, a fragile mountain area, or a significant wildlife habitat as identified by the Maine Department of Inland Fisheries and Wildlife; and
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. A landfill shall not be located on land adjacent to any coastal wetland or great pond so that material or soil may be washed into them.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): F. Distance from Airports
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A solid waste handling site where putrescible waste is to be disposed shall not be located within 10,000 feet of any airport runway used by turbojet aircraft, or within 5,000 feet of any runway used only by pistontype aircraft. (This setback does not pertain to the disposal of non-putrescible wastes such as completely combusted incinerator ash.)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): G. Areas Impossible to Monitor or Remediate
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A landfill shall not be located at the highest point of land in a ground water recharge area or in any other area where adequate environmental monitoring or site remediation could be conducted.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 3. Discussion of Other Environmental Siting Issues
• EFFECTIVE DATE (ELECTRONIC CONVERSION): The following is a summation of a number of additional environmental subjects that could affect the siting of a secure landfill. We hope that this discussion will be useful to the Facility Siting Board as it considers other landfill siting criteria.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): A. Soils
• EFFECTIVE DATE (ELECTRONIC CONVERSION): The following soil series can have characteristics and depth of separation above bedrock to be potentially suitable for development of a secure solid waste landfill. The soil series are arranged in 2 categories. The soils in the first category are low permeability soils that are considered potentially most desirable for the siting of a secure landfill. The second category of soils are low to moderately -permeable soils that are considered moderately desirable for the siting of a secure landfill. There are some potential limitations in each soil series category. While the low hydraulic conductivity of the first category is very desirable for the protection of ground water, it often means that these soils are associated with wetlands. Associated considerations for soils in the second category are the depth to, and the potential travel time to any underlying fractured bedrock aquifer. An additional caution is that soil series classifications are only based on the upper 60 inches of soil materials and have limited usefulness beyond any very preliminary site screening.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 1. Low permeability soils derived from deep glaciomarine clay
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - Buxton, Scantic, Boothbay, and Biddeford
• EFFECTIVE DATE (ELECTRONIC CONVERSION): 2. Low to moderately permeable soils-derived from deep silty glacial till
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - Peru, Perham, Bangor, Paxton, and Marlow
• EFFECTIVE DATE (ELECTRONIC CONVERSION): B. Soil Depth To Bedrock
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Except in areas of ground water discharge, it is recommended that the site soils have sufficient depth to allow solid waste to be placed a minimum of 15 feet above bedrock.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): C. Slope
• EFFECTIVE DATE (ELECTRONIC CONVERSION): If other site and soil characteristics are similar, a steep slope can present greater design and construction difficulties and greater development costs than a less steep slope. A slope of 8 percent or less is potentially most desirable while a slope of 15 percent or greater is often considered to present significant obstacles.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): D. Unstable Areas
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Some of the soils that are acceptable for development of a landfill may be somewhat unstable. It is therefore particularly important that all areas be rejected that have been previously subject to mass movement of earth materials such as landslides, slumps, earth flows, subsidence or debris flows.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): E. Freshwater Wetlands
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Many of the soil series that are most appropriate for the development of a secure landfill are associated with freshwater wetlands since water does not drain quickly through the soil. The issue of freshwater wetland protection is likely to complicate the landfill siting process.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Whether the alteration of, or development adjacent to, a freshwater wetland may be permissible will be dependent upon many factors. Unfortunately, this is not a subject where clear regulatory precedent or full public agreement has been reached.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): To a large degree, whether a particular wetland or portion of a wetland might be acceptable for development of a solid waste landfill will depend upon an assessment of the environmental importance of the wetland in question and whether mitigation of the landfill's development is necessary or possible. The Bureau of Solid Waste Management has proposed to the Board of Environmental Protection that landfill development be allowed consideration in Class II and III wetlands, as defined under the Department's draft wetland regulations (Public hearing was held on January 18). The following is currently our best estimate of those freshwater wetlands that are most likely to present the most severe siting problems:
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - wetlands that have been identified as providing significant wildlife or botanical habitat;
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - wetlands that have traditionally been associated with high wildlife or fisheries productivity or importance;
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - unique wetlands for a particular region of the state;
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - wetlands associated with or adjacent to state or federal parks, preserves, or wildlife areas; and
• EFFECTIVE DATE (ELECTRONIC CONVERSION): - wetlands associated with an outstanding river segment or Class AA, SA, A or GPA surface waters.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Development on or near freshwater wetlands are also regulated by the U.S. Environmental Protection Agency and the U.S. Army Corp. of Engineers.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): F. Surface Waters
• EFFECTIVE DATE (ELECTRONIC CONVERSION): The potential location of a landfill near classified surface water can be dependent in part upon the classification, size, and character of the surface water. State law prohibits the direct discharge of any pollutant into Class AA, SA, and GPA waters. This may ,significantly restrict landfill siting and design options near these bodies of water. While a setback of 300 feet from classified waters is generally advised, a setback of 1,000 feet or more may serve as a useful initial siting restriction for class AA, SA, GPA, and A waters.

Chapter 454 Municipal Reimbursement Procedures

Code Me. R. 19-540 Ch. 454 Municipal Reimbursement Procedures {#sec-19-540-ch.-454 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-540 Ch. 454}

SUMMARY. This rule establishes procedures to reimburse municipalities for costs incurred in site selection proceedings before the Facility Siting Board.

SECTION 1. PREAMBLE

This rule establishes procedures for the issuance of financial reimbursement by the Maine State Planning Office to municipalities in which a potential solid waste disposal facility site is located. If a potential site is located in an unorganized township, the county in which it is located shall be deemed a municipality for reimbursement purposes. Reimbursement is available for direct, substantive participation in proceedings before the Facility Siting Board (Board) conducted pursuant to 38 MRSA §2154(l). Allowable expenses are determined in a manner consistent with 38 MRSA §1310-S(4) of the Maine Solid Waste Laws and Chapter 400, Section 7, of the Department of Environmental Protection, Solid Waste Management Rules.

SECTION 2. AVAILABILITY

A. As provided under 38 MRSA §2154(3), financial reimbursement is available to a municipality when the Board concludes its consideration of a potential site under §2154(l). For the purposes of this rule, such consideration is concluded when the Board decides whether to recommend the potential site for the purposes of preparing necessary permit applications. A municipality may request this reimbursement, not to exceed $50,000, for expenses associated with its direct, substantive participation in Board proceedings related to the consideration of a potential site in the municipality.

B. The Agency may offer a limited payment to a municipality in advance of Board consideration of a site in order to facilitate the municipality's participation in early planning and review efforts. Any funds so provided will be deducted from the municipality's $50,000 reimbursement limit if the site becomes the subject of Board proceedings under 38 MRSA §2154(l).

SECTION 3. ELIGIBLE EXPENSES

A determination as to eligible costs will be based on whether the expense contributes directly to the municipality's participation in the Board's review process. Eligible expenses may include:

A. payment or retainers for expert witnesses or hiring qualified professionals in environmentally related fields such as, but not limited to, engineering, geology, public health, finance or law;

B. the cost of using professional services in these fields to evaluate the landfill proposal, to determine whether to oppose or support it, and to represent the municipality;

C. the costs of examining all aspects of the proposal which will be considered by the Board in determining whether the proposal meets the siting criteria or not; and

D. the direct costs of the municipal officials and their consultants meeting with Agency staff, attending hearings, and participating in Board meetings relating to the proposal or its proceedings.

For the purpose of this rule, “professional services” and "qualified professionals" shall be defined as individuals, companies, and agencies whose primary occupation is to provide the service or expertise in question. If required by the State of origin, such individuals, companies, and agencies shall have all necessary certification to provide the professional service or information in question.

In selecting and acquiring professional services and expert witnesses, the municipal officers, county commissioners, assessors, or designee shall not have any pecuniary interest, as defined in 30 M.R.S.A, §2251, in the selection or acquisition of any of these services.

SECTION 4. COSTS NOT ELIGIBLE FOR REIMBURSEMENT

The following costs, among others, shall not be eligible for reimbursement because they are not direct expenses likely to contribute to substantive participation in the proceedings before the Board:

A. costs of developing or amending local ordinances;

B. costs of processing local applications;

C. costs of reviews or actions related to other state or federal agencies, the Legislature, or the courts.

D. costs of assisting other interested parties, intervenors or municipalities with their inquiries or testimony;

E. any costs not documented by the municipality to the Agency;

F. work undertaken after the Board votes whether or not to designate a site as a recommended site; or

G. “in kind” services, including: rental, maintenance or overhead expenses for buildings or municipal, county or plantation operations; and the salaries of any municipal or county officers or employees who are involved in the process as part of their overall duties. The salaries of municipal or county officers, employees or designees shall not be eligible for reimbursement unless the officer, employee or designee is a qualified professional hired to provide specific services directly related to the municipality's or county's substantive participation in Board proceedings.

SECTION 5. APPLICATION and PAYMENT PROCEDURES

Requests for reimbursement must be submitted in writing to the Director, State Planning Office, at the conclusion of the Board proceedings under 38 MRSA §2154(1). Requests for reimbursement must include a cover letter summarizing costs the municipality believes to be eligible for reimbursement, supported by receipts, invoices, and other documentation and records of payment. The Agency will respond to the request within thirty days. Payments will be made directly to the municipality on a reasonable schedule consistent with the Agency's financial capabilities.

Requests for payments to facilitate the municipality's participation in early site review in advance of Board consideration of a potential site under 38 MRSA §21 54(1) also must be submitted in writing to the Director, State Planning Office. The Agency then may enter into a written agreement with the municipality defining the scope of work accomplished or to be accomplished, the incurred or expected costs, and a schedule for completion of the work and related payments as appropriate.

SECTION 6. APPEALS

A municipality may appeal to the Executive Director any denial or reduction of reimbursement requests for direct costs it believes to be eligible for reimbursement. The Executive Director will review the appeal with the Facility Siting Board and seek its advice before making a final decision.

SECTION 7. RECORDS and AUDITS

The municipality shall maintain all evidence including books, documents, payrolls, papers, accounting records, work products, travel expenses, and retainers pertaining to costs incurred under the reimbursement agreement. It shall make such materials available at their offices at all reasonable times upon conclusion of all substantial proceedings before the Board and all appeal proceedings and for three years from that date for inspection by the Agency or any authorized representative of the State of Maine. The municipality may defer the need to retain all records for a three year period by turning over all original documents or certified accurate and complete copies to the Agency.

History

• STATUTORY AUTHORITY: 38 MRSA, section 2103, subsection 1, paragraph A
• EFFECTIVE DATE: September 29, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 22, 1996
• NON-SUBSTANTIVE CORRECTIONS: January 3, 1997 - changed references from Maine Waste Management Agency to State Planning Office.
• NON-SUBSTANTIVE CORRECTIONS: Chapter 454 page 3

Chapter 475 Property Value Offset Program for Agency-Operated Solid Waste Disposal Facility

Code Me. R. 19-540 Ch. 475 Property Value Offset Program for Agency-Operated Solid Waste Disposal Facilities {#sec-19-540-ch.-475 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-540 Ch. 475}

SUMMARY: This rule establishes a formula and process for reimbursement for loss in property value directly attributable to the construction and operation of a solid waste disposal facility operated by the Maine State Planning Office.

SECTION 1. PREAMBLE

As provided under 38 MRSA §2175-A, owners of property whose value has been affected by an Agency-operated or Agency-approved solid waste disposal facility are eligible for reimbursement for loss in property value directly attributable to the construction and operation of the facility.

Section 2175-A requires the Agency to adopt rules to establish a formula and process for reimbursement, including without limitation, a definition of the impact area, a process for establishing baseline real estate values, a time frame within which the property value support program will be in effect, determination of the percentage of property value to be reimbursed, an accounting of real estate trends in the area, and a determination of the reimbursement mechanism. This rule establishes the required reimbursement formula and process for losses attributable to Agency-operated facilities only.

SECTION 2. APPLICABILITY

Unless otherwise directed by the Executive Director of the Agency, this rule shall govern the administration of the property value offset program for Agency-operated facilities. When the circumstances of a particular proceeding require more detailed procedures than those set forth in this chapter, additional proceedings may be specified.

SECTION 3. DEFINITIONS

A. Agency. "Agency" means the Maine State Planning Office.

B. Agency-approved facility. "Agency-approved facility" means a solid waste disposal facility approved by the Agency pursuant to 38 MRSA § 2157.

C. Agency-operated facility. "Agency-operated facility" means a solid waste disposal facility owned or operated by the Agency, including solid waste disposal facilities operated by others pursuant to contract with the Agency.

D. Appraisers. "Appraisers" mean those individuals licensed by the State of Maine to conduct real estate appraisals.

E. Base Value. "Base value" means the fair market value of the property, without impact from the facility, at the time the property owner makes a claim for reimbursement.

F. Sale Price. "Sale price" means the value of a property determined by a good faith, arm's length, real estate sales transaction between a willing buyer and a willing seller. It also means the value of a property as determined in the course of refinancing that property through a mortgage lender.

G. Solid Waste Disposal Facility. “Solid waste disposal facility" means any land area, structure, location, equipment or combination of them used for the incineration or landfilling of solid waste, except that the following facilities are not solid waste disposal facilities:

1. Burning of Material-separated, Refuse-derived Fuel. Any facility that burns "material-separated, refuse-derived fuel" as defined 38 MRSA § 1303-C (1 9-A);

2. Transfer Stations. Any facility constructed and managed for the storage or processing and placement of solid waste in large containers or vehicles for movement to another waste facility; or

3. Recycling Facilities, Composting Facilities, Other Waste Processing Facilities and Landspreading Sites. Any recycling facility, composting facility, landspreading site or other processing facility or utilization facility as defined and regulated by Maine Department of Environmental Protection of its regulations.

SECTION 4. PROGRAM ADMINISTRATION

A. Impact Area Eligibility

Reimbursement under this rule is available to owners of property that has incurred a measurable decrease in value directly attributable to the operation of an Agency-operated facility as determined in this section. Subsequent owners and owners of additional parcels resulting from subdivision after the facility begins operation are not eligible for reimbursement except as set forth in subsection 4(F) below. To be eligible for reimbursement, the property owner must keep the property in good repair and not destroy, damage, harm or allow the property to deteriorate.

B. Appraisals

When a property owner requests reimbursement for loss of property value, a base value will be determined. Base value will be determined from appraisals conducted by licensed real estate appraisers, one selected and compensated by the property owner, the second selected and compensated by the Agency. If the two appraisals are within 10% of each other they will be averaged. If the appraisals differ by more than 10%, a third appraisal will be performed, with the appraiser selected and compensated by the Agency. The two closest appraisals will be averaged to determine the base value.

Information which may be used to conduct an appraisal and, if necessary, a later review on appeal, includes: valuations established by the State Bureau of Taxation in accordance with Chapter 201-80, Procedures Used To Develop Equalized State Valuation Procedures; municipal valuations used for property tax assessment purposes; real estate sales records for comparable property in the general area of the facility; and any other relevant data.

C. Reimbursement

Reimbursement will be made by the Agency when it has been determined in accordance with this section that a loss in property value attributable to the operation of the facility has occurred. The property owner will be compensated for the difference in value when the sale price is less than the base value whether determined by a sales transaction or refinancing through a mortgage lender.

When reimbursement is based on the loss resulting from a sale, the property owner must make every effort to sell the property at the best possible price. In determining best possible price, the Agency will examine the length of time the property was on the market, the number of showings, the use of real estate brokers, and the price.

D. Application and Payment Procedures

Loss of value will be determined on a case by case basis. Any property owner may submit a request for reimbursement resulting from a loss in property value attributable to the operation of an Agency-operated facility to the executive director of the Agency.

A request for reimbursement must include a cover letter summarizing the basis for the request, supported by a real estate appraisal and any other evidence as discussed under subsection 4(B) above. The Agency will notify the property owner as to completeness or the need for additional information within 30 days of receipt of the request. An appraisal and a review of relevant material regarding local property values will be conducted by the Agency and a decision rendered within 60 days of notification of completeness. If it is determined that a loss in property value has occurred, reimbursement will be made by the Agency directly to the property owner on a reasonable schedule. The reimbursement will include costs incurred by the property owner for the initial appraisal.

E. Appeals

1. Appeal to the Agency

Within 30 days of an Agency decision to deny or reduce the requested reimbursement, the property owner may submit a letter of appeal requesting the Agency to review the decision. The letter of appeal shall include, but need not be limited to, the Agency findings or conclusions objected to or believed to be in error, the basis of the objections, and any new or additional information offered in support of the appeal. Within 30 days of receipt of a letter of appeal, the Agency shall affirm, reverse or modify its decision to deny or reduce reimbursement.

2. Appeal to Court

Any person who is aggrieved by final Agency action on a request for reimbursement is entitled to judicial review in Superior Court in accordance with the Maine Administrative Procedures Act, 5 MRSA, subchapter VII.

F. Duration of Program

Reimbursement under this rule is available only for losses in value incurred on or after the date that an Agency-operated facility begins operation. Reimbursement requests will be accepted during the operational life of the facility. After such time, if there is a substantial change in operational plans or a problem with the landfill site, the reimbursement program may be reestablished. In such a situation, these regulations may be modified to make additional properties and subsequent owners eligible for reimbursement.

History

• STATUTORY AUTHORITY: 38 MRSA §2175-A
• EFFECTIVE DATE: September 29, 1992
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 22, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): Chapter 475 page 4

Chapter 480 Requirements for the State Planning Office to Accept Public Comment before Amending a Solid Waste Disposal Facility Operating Agreement

Code Me. R. 19-540 Ch. 480 Requirements for the State Planning Office to Accept Public Comments Before Amending a Solid Waste Disposal Facility Operating Agreement {#sec-19-540-ch.-480 omnilex-key=us-me-regs-official--dept-economic-and-community-development--19-540 Ch. 480}

SUMMARY: This rule requires the State Planning Office to accept public comments when certain changes are proposed to an operating services agreement between the office and its contracted operator of a state-owned solid waste disposal facility. The rule lays out the requirements for a public hearing. The rule is initiated at the direction of a citizen's petition.

SECTION 1. GENERAL PROVISIONS

1. Preamble

Whereas: The Office is authorized to plan for and recommend development of facilities sufficient to meet the disposal needs of municipal solid waste generated within Maine (38 MRSA §2156-A). Through Resolves 2003, Chapter 93 the Maine Legislature directed the Office to acquire, own, and cause to be operated an existing landfill located in the City of Old Town. In addition, the Office was directed to establish the terms and conditions of, and execute and deliver, in the name of and on behalf of the State, all contracts the office detem1ines necessary or appropriate to effect the operation of the disposal facility and to undertake all actions necessary to fully perform all obligations established under the contracts. Notwithstanding the provisions of Title 38 and Resolve 93 and other future legislative action, the State retains the rights and prerogatives of the Executive Branch in establishing or amending these agreements or contracts.

Whereas: The solid waste disposal facility acquired by the Office is operated by and through permits and licenses granted by the Maine Department of Environmental Protection. These permits and licenses are granted in accordance and upon compliance with the Department's rules and standards for such facilities. These requirements may not be altered or modified by an operating services agreement in place between the Office and its contractor.

Therefore: Notwithstanding the above, and in accordance with the Administrative Procedure Act, the Office shall accept public comments on proposed changes to operating services agreements as described in this Chapter.

2. Purpose

The purpose of this Chapter is to require the State Planning Office to hold a hearing to accept public comments when certain changes are proposed to an operating services agreement between the Office and its contracted operator of a state-owned solid waste disposal facility. The rule lays out the requirements for a public hearing.

3. Definitions

A. Department. "Department" means the Maine Department of Environmental Protection.

B. Director. "Director" means the Director of the Maine State Planning Office.

C. Office. "Office" means the Maine State Planning Office.

D. Operating Service Agreement. "Operating Services Agreement" means an agreement or contract that establishes the terms and conditions of the operation of a solid waste disposal facility.

E. Solid Waste Disposal Facility. "Solid Waste Disposal Facility" has the meaning provided in Chapter 400, Maine Department of Environmental Protection's solid waste rules, Section 1 (Jjj).

SECTION 2. PUBLIC HEARING REQUIREMENTS

1. Hearing Required

The State Planning Office shall hold a public hearing when it determines that proposed changes to an operating services agreement or contract with its operator of a state-owned solid waste disposal facility may cause:

A. increases in the annual amount of waste being sent to the facility;

B. changes in the sources of wastes entering the facility to occur in such a way to increase the importation of waste; or

C. changes to a facility's operation to occur in such as way as to impact traffic, odor, noise, or public safety in the abutting communities.

2. Public Notice Required

The State Planning shall provide reasonable public notice in accordance with 5 MRSA §8053.

3. Costs Borne by Solid Waste Management Fund

The costs to conduct the public hearing will be borne by the Maine Solid Waste Management Fund. Implementation of this rule is contingent on funds being available in the Maine Solid Waste Management Fund. If funds are not available, as determined by the Director, to conduct a public hearing in accordance with this Chapter, the Office will provide public notice to interested parties via e-mail and accept written public comments for 30 days. The Office shall maintain an interested parties mail list of people wishing to receive this notice.

SECTION 3. CONSIDERATION OF PUBLIC COMMENTS

1. Consistency with State Laws and Policies

The State Planning Office shall consider whether changes to an operating services agreement are consistent with the following statutes and policies:

A. state's waste management hierarchy in 38 MRSA §2101;

B. state's recycling goal in 38 MRSA §2132;

C. state waste management and recycling plan (State Planning Office, 1998); and D. siting criteria for state-owned solid waste disposal facilities in 38 MRSA §2153.

2. Decision and Timeframes

The State Planning Office shall complete its review within 45 calendar days from the closing date for public comments. The Office shall respond to comments in writing and make those responses publicly available.

3. Emergency

If the Office determines a threat to public health or safety from a delay in amending the operating services agreement due to the provisions of this Chapter, it may waive the provisions of this Chapter. If an emergency event occurs where the Office waives the provisions of this Chapter, the Office will publish notice within 20 days from the date of the amendment. Notice shall be published in the state's newspaper of record and shall include the nature of the emergency and a description of the amendment.

History

• STATUTORY AUTHORITY: 5 MRSA §3305-A(3)
• EFFECTIVE DATE: May 9, 2009 – filing 2009-176
• EFFECTIVE DATE: Chapter 480 page 3