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

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 an annual grant application selection process.
(a)
Special Threshold Requirement for
				Housing Assistance Applications:
Communities may not submit a HA
				application if they have received or benefited from two HA awards within the
				five (5) year period prior to the CDBG program year for which applications are
				being accepted.
(b)
Eligible
				Housing Assistance Activities:
Eligible HA activities are rehabilitation
				of occupied or vacant single-family or multi-family housing units, same site
				replacement housing, relocation assistance, acquisition, alternative housing,
				energy conservation, code enforcement, conversion of non-residential
				structures, demolition, down payment assistance, first time homebuyer's
				programs, historic preservation, lead based paint removal, new housing
				construction as allowed by HUD regulations, provision of potable water or
				sewer, removal of architectural barriers and eligible planning activities
				necessary to complete the Project Development Phase.
Except for general
				housing rehabilitation activities and well and septic replacement no
				multi-jurisdictional applications will be accepted in the HA
				program.
(c)
Matching
				Funds Requirements:
Applicants for housing activities must provide a
				match (cash or in-kind) of at least
10
percent of the total HA grant award;
except for
				eligible new housing construction activities which must provide a cash match of
				at least
20 percent of the total HA grant
				award
.
(d)
Maximum HA Grant Amount:
$300,000
(e)
Maximum Housing Assistance Program
				Per-Unit Costs:
The amount of rehabilitation grants or loans available
				to participants in the HA Program will be no more than $30,000 per unit.
				Additional funds, up to a maximum of $10,000 may be available in the following
				cases: replacement housing, Life Safety Code violations, foundation work,
				inadequate sewage disposal, lack of potable water, removal of lead-based paint,
				asbestos, radon, or other hazardous material, and accessibility modifications.
				Except for acquisition/relocation as a combined activity, all other eligible
				activities under the HA Program are limited to a maximum of $40,000 per unit
				assisted/created. Maximum per-unit costs for any housing activity may only be
				waived by written approval from the OCD Director.
Public infrastructure
				is not an eligible HA expense.
(f)
Maximum Administrative
				Costs:
The HA Program allows expenditures for general and/or
				rehabilitation administration. The total general and rehabilitation
				administration expenditures may not exceed 15% of the grant amount.
Please refer to OCD Policy Statement #2 for more information regarding
				CDBG administrative costs.
(g)
Section 8 H ousing Quality
				Standards:
All units assisted or created with HA funds, with the
				exception of emergency repairs and energy conservation must, at a minimum, meet
				HUD Section 8 M inimum Housing Quality Standards. This does not apply to
				projects undertaken to correct specific health and safety issues only, i.e.
				wells, septic, heating units, removal of hazardous materials, etc.
(h)
Minimum Percentage of LMI Units in
				New Housing Construction:
A minimum 20% of new units created using HA
				funding must be reserved for LMI families. In addition, the minimum required
				percentage of new units reserved for LMI families must be proportional to the
				percentage of HA funding provided towards the total project cost.
(i)
Administrative Capabilities for
				Housing Rehabilitation Applicants:
Applicants for HA assistance must
				demonstrate at the time of submitting the Letter of Intent that they have the
				capacity to administer the program either through municipal staff that is a
				Certified CDBG Rehabilitation Technician; or have completed a procurement
				process under the guidelines of the CDBG program ( 24 CFR Part 85 ) to hire a
				Certified CDBG Rehabilitation Technician subject to award of a HA
				contract.