Section 110.80  Funding

a)         Distribution of Funds:  Grant awards will be made according to the application evaluation processes described in Sections 110.91, 110.92, 110.93, 110.94, 110.95, 110.101, 110.102, 110.103, and 110.106 of this Part.

b)         Funding Considerations

1)         Grant Ceilings:  Grant ceilings for the various components listed in Section 110.60 of this Part establish the maximum grant award limits that an eligible applicant may request.  The Department shall utilize the factors listed in subsection (b)(1)(D) of this Section in authorizing a higher grant ceiling for a particular project. Grants will only be funded in amounts commensurate with the requirements of the proposed projects.  The Department will set the following grant ceilings for eligible applicants:

B)        Eligible applicants may only submit one application and may only receive one grant under the following program components: Competitive Public Facilities Construction; Design Engineering; Competitive Housing Rehabilitation; and Competitive Planning Assistance in any one program year.  Under the Non-Competitive Mobility and Accessibility Rehabilitation Services Component and subject to available funding, an eligible applicant may submit more than one application and may receive more than one grant, which will be awarded on a first come-first served basis.

C)        On occasion, the Department will review the technical feasibility of a project.  If the review requires non-Departmental expertise (e.g., water and sewer permits), the Department will coordinate with other agencies (e.g., Environmental Protection Agency (EPA), Department of Public Health (DPH), USDA Rural Development) to review the technical feasibility of the project.

D)        In determining the appropriate grant award amount, the Department shall consider the following:

i)          Project Need:  Project need shall be determined using standards found in Sections 110.90(b)(3); 110.91(b)(3)(A), (C), (D), and (E); 110.92(b)(3); 110.93(b)(3); 110.94(b)(3); 110.95; 110.101(b); 110.102; and 110.103(b), as applicable.

ii)         Ability to Carry Out the Project:  Determination of the ability to successfully complete the proposed project shall be based upon elements such as previous program performance, experience, and scope of the proposed program.

iii)         Proposed Activities:  A review of the proposed activities shall be based on a determination of whether the program objectives will be met through the proposed activities as set out in Sections 110.90, 110.91, 110.92, 110.93, 110.94, and 110.95.

E)         The Department may withdraw, suspend or terminate grant funding based on the following:

i)          If the Department approves an application, but prior to the execution of a Grant Agreement, it learns or has a reasonable belief that the project will not progress or is unlikely to be completed as originally anticipated, due to unforeseen facts and circumstances not previously known during or subsequent to the application process, it may withdraw its commitment of funds.  If the Department withdraws its commitment of funds, it shall provide written notification to the applicant advising it of the same and setting forth the reasons for the withdrawal.

ii)         If the Department approves an application and a Grant Agreement has been executed, the Department may only suspend or terminate the Grant Agreement in accordance with the terms and conditions set forth in the Grant Agreement or the conditions described in 47 Ill. Adm. Code 1.110.

2)         Standards for Program Category Allocation:  The Department shall determine the amount of funds annually allocated to carry out activities in accordance with each of the community development assistance program components.  Needs expressed by interested citizens and local elected officials pursuant to Section 110.10(b)(2)(C) of this Part, the amount of annual allocation, and a review of past program component usage shall be factors in determining the amount of funds annually allocated to carry out activities.  The allocation of funds between program components shall be determined from the following allocation ranges:

A)        Emergency Set-Aside for Public Facilities:  1% - 20%

B)        Competitive Housing Rehabilitation Program Component:  15% - 70%

C)        Competitive Public Facilities Construction and Design Engineering Component:  40% - 60%

D)        General Economic Development Component:  10% - 40%

E)         Competitive Planning Assistance:  up to 1%

F)         Set-Aside for Lead-Based Paint Abatement:  up to 1%

G)        Non-Competitive Mobility and Accessibility Rehabilitation Services Component:  1% - 10%

3)         Environmental Clearances:  Upon actual grant award, if required, a technical review of non-exempt activities must be completed under 24 CFR 58 (1996).  HUD has published Environmental Review Procedures for the Community Development Block Grant (24 CFR 58).

4)         On-Site Visits:  The Department's program staff may, contingent upon program resources or the need for on-site inspection, verify eligibility, conduct field visits of potential grantees under the Competitive Public Facilities Construction and Design Engineering, Competitive Housing Rehabilitation, and Non-Competitive Mobility and Accessibility Rehabilitation Services components prior to final grant decisions.

(Source:  Amended at 29 Ill. Reg. 10017, effective June 28, 2005)