ADDITIONAL TERMS AND CONDITIONS OF THE CDBG FUNDING. §4.01 CDBG Grant Amount, Grant as Conditional, and Program Income Use Requirement. The amount of CDBG funds to be granted from the Department to the City will not exceed $485,000. $25,000 of the $485,000 is to be unconditionally granted to the City for the City's costs of administration of the grant. $10,000 of the $485,000 is to be unconditionally granted to the City for the City's costs of construction management of the grant. $450,000 of the $485,000 is to be conditionally granted to the City for a portion of the costs of the Project. If the CDBG national objective requirement (through the subcategory area benefit (LMA) is not fulfilled by the benefiting Non-profit, the conditional portion of the grant will not be declared as unconditional, but rather, the benefiting Non- profit will be obligated to repay the City, and the City will be obligated to repay the Department, the conditional portion of the grant. This repayment obligation is required by CDBG HUD regulations. Program income generally means any gross income received by the Grantee or a subrecipient of the Grantee that was generated from the use of CDBG funds; however, some exceptions are detailed in 24 C.F.R. §570.489(e)(2). Program income includes, but is not limited to, the following: • payments of principal and interest on loans made using CDBG funds, • proceeds from the disposition (by sale or long-term lease) of real property purchased or improved with CDBG funds, • proceeds from the disposition of equipment purchased with CDBG funds, • interest earned on program income pending its disposition, and • interest earned on CDBG funds held in a revolving loan fund's cash balance interest-bearing account. All program income received prior to the completion of the approved grant activities must be applied to those activities prior to requesting additional CDBG funds from the Department. In other words, the Grantee’s pool of program income must be the "first out" and must be fully depleted before it may request "new" CDBG funds from the Department. The Grantee agrees to treat all received and/or retained program income as additional CDBG funds subject to all requirements applicable to the CDBG Program. Additionally, the Grantee agrees to submit regularly occurring reports to the Department regarding program income and agrees, upon the Department’s request, to maintain a contractual relationship with the Department for the duration of the time period in which the Grantee maintains program income.
ADDITIONAL TERMS AND CONDITIONS OF THE CDBG FUNDING. §4.01 CDBG Grant Amount, Grant as Conditional, and Program Income Use Requirement. The amount of CDBG funds to be granted from the Department to the Village will not exceed $355,000. $5,000 of the $355,000 is to be unconditionally granted to the Village for the Village’s costs of administration of the grant. $350,000 of the $355,000 is to be conditionally granted to the Village for a portion of the costs of a public facilities infrastructure improvement in the Village, namely, the Project. If the CDBG national objective requirement (creating jobs which principally benefit LMI persons) is not fulfilled by the benefiting Business, the conditional portion of the grant will not be declared as unconditional, but rather, the benefiting Business will be obligated to repay the Village, and, the Village will be obligated to repay the Department, the conditional portion of the grant. This repayment obligation is required by CDBG HUD regulations. ED #: 04-ED-027 Unless otherwise excepted from such requirement (or otherwise specified as to a limited amount requirement) elsewhere in this MOU, the Village acknowledges and agrees that any CDBG program income (defined in the HUD CDBG regulations) available to the Village at the time of any “drawdown” request by the Village to the Department must be first utilized in the project, thus lessening the amount of new CDBG funding paid from the Department to the Village for this project.
