BEFORE THE DEPARTMENT OF COMMERCE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 8.94.3729 pertaining to the administration of the 2017 and 2018 Program Year Federal Community Development Block Grant (CDBG) Program – Public Facilities Projects and ARM 8.94.3730 pertaining to the administration of the 2017 and 2018 Program Year Federal Community Development Block Grant (CDBG) Program – Affordable Housing Projects.

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NOTICE OF AMENDMENT

 

TO: All Concerned Persons

 

1. On May 12, 2017, the Department of Commerce published MAR Notice No. 8-94-153 pertaining to the public hearing on the proposed amendment of the above-stated rule at page 582 of the 2017 Montana Administrative Register, Issue Number 9.

 

2.  The department has thoroughly considered the comments and testimony received. The comments received and the department's responses are as follows:

           

COMMENT # 1: David Pafford, Noxon School, asked if schools were eligible to apply for these funds to help with building repairs, HVAC improvements, and other much needed projects.

 

RESPONSE # 1: While a public school is not eligible to apply directly, a city, town, or county may apply on behalf of a public school for CDBG Public and Community Facility funds.  The public school must be able to demonstrate that the proposed project will meet the CDBG National Low and Moderate Income Objective. The CDBG Public and Community Facility guidelines will be updated to clarify the eligible use of funds to be expended on public school facilities to assist at least 51% of low and moderate income households through assisted project activities. 

 

COMMENT # 2: The discussion of the Hatch Act on page 58, Appendix E appears to be based on the old version of the Hatch Act, and not the updated, less restrictive version now in force.

 

RESPONSE # 2: The department concurs and will update all CDBG application guidelines and sample resolutions to reflect the Hatch Act Modernization Act of 2012.

 

COMMENT # 3: The guidelines discuss how CDBG funds may directly benefit LMI persons residing in an area ineligible for area-wide benefit.  The language, "If a CDBG grant award is insufficient to pay the entire assessment or hook-up charges for 100% of the LMI persons in the area of service, CDBG funds must first be used to assist the low-income persons in the service area" does not make sense to me.  Please clarify.

           

RESPONSE # 3: The department will clarify the language as follows:

 

CDBG funds may be used to provide assistance to directly benefit Low-to-Moderate Income (LMI) persons residing in an area that is ineligible or doesn't meet the 51% or greater area-wide benefit requirement. Direct benefit assistance may be used to pay directly for activities such as septic tank abandonment, construction necessary to hook to a main, or the LMI individual's assessment to pay for connections to infrastructure improvements. CDBG funds must be prioritized to assist 100% of low-income residents (at or below 50% of area median income) before assisting persons of moderate income (51-80% of area median income). 

             

3. The department has adopted ARM 8.94.3729 and ARM 8.94.3730 as proposed.

 

/s/ Marty Tuttle                                              /s/ Douglas Mitchell            

Marty Tuttle                                                   Douglas Mitchell

Rule Reviewer                                              Deputy Director

                                                                      Department of Commerce

 

Certified to the Secretary of State June 12, 2017.