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rescinded by DECD.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.
