Section 498-32-5 - REDISTRIBUTION OF GRANT FUNDS & PROGRAM INCOMEThis 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 FUNDS1. 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program costs obligated, construction or services begun) within six months of grant award, may have their grant rescinded by DECD.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 INCOMEAs 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.
19- 498 C.M.R. ch. 32, § 5