Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT › Chapter 34 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2006 PROGRAM STATEMENT › Section 498-34-2 - COMMUNITY DEVELOPMENT

Current through 2024-29, July 17, 2024
A.
HOUSING
				ASSISTANCE GRANT PROGRAM
The Housing Assistance Grant (HA) Program provides funding to
				  address housing problems of low-and moderate-income persons.
1.
Special Threshold Criteria and
				Program Requirements:
Housing Assistance Program (HA) funds will be
				distributed through a grant application selection process with one eligible
				funding category in 2006.
(a)
Special
				Threshold Requirement for Housing Assistance Applications:
Beginning
				with the 2006 CDBG program communities may not submit a HA application if they
				have received or benefited from two HA awards (rehabilitation, innovative or a
				combination) within the five (5) year period prior to the CDBG program year for
				which applications are being accepted.
(b)
Eligible Housing Assistance Activities:
Eligible HA
				activities are rehabilitation of occupied or vacant single-family or
				multi-family housing units, same site replacement housing, relocation
				assistance, acquisition, alternative housing, code enforcement, conversion of
				non-residential structures, demolition, down payment assistance, first time
				homebuyer's programs, historic preservation, lead based paint removal, new
				housing construction as allowed by HUD regulations, provision of potable water
				or sewer, and removal of architectural barriers.
(c)
Matching Funds
				Requirements:
Applicants for housing rehabilitation activities must
				provide a match (cash or in-kind) of at least
10 percent of the
				total HA grant award.
Applicants for all other eligible HA
				activities must provide a cash match of at least
20
percent of the total HA grant award
.
(d)
Maximum HA Grant Amount:
$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 H ousing Quality
				Standards:
All units assisted or created with HA funds must, at a
				minimum, meet HUD Section 8 M inimum Housing Quality Standards. This does not
				apply to projects undertaken to correct specific health and safety issues only,
				i.e. wells, septic, heating units, removal of hazardous materials,
				etc.
(h)
Minimum Percentage
				of LMI Units in New Housing Construction:
A minimum 20% of new units
				created using HA funding must be reserved for LMI families. In addition, the
				minimum required percentage of new units reserved for LMI families must be
				proportional to the percentage of HA funding provided towards the total project
				cost.
(i)
Administrative
				Capabilities for Housing Rehabilitation Applicants:
Applicants for HA
				assistance must demonstrate that they have the capacity to administer the
				program either through municipal staff that is 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.