Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 498 - OFFICE OF TOURISM AND COMMUNITY DEVELOPMENT › Chapter 36 - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM 2008 PROGRAM STATEMENT › Section 498-36-2 - 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,
				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.
(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:
$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 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 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.