Section 40. Allocation of funds

A. Types of allocations. The authority will accept the following two types of applications from eligible local governments for rental rehabilitation grants:

1. General allocations. The authority will make allocations of funds to local governments on a first-come, first-served basis for use in carrying out locally-designed rental rehabilitation programs. The following conditions will apply:

a. Each local allocation will be limited to a specific dollar amount.

b. Once a local government has committed 80% of its funds to specific projects, it will be eligible to apply for an additional general allocation.

c. An initial allocation to a grantee will expire on a date determined by the authority which shall be no less than six months and no more than 18 months after the date the authority enters into a grant agreement with the grantee with respect to such allocation; provided, however, that the authority may, in its discretion, extend the term of an allocation one or more times for a period not to exceed 12 months for each such extension.

d. Upon the expiration of an allocation, any uncommitted grant funds will be recaptured.

e. The authority will reserve the right to recapture monies from an additional general allocation prior to its expiration, if necessary, due to poor local performance and the need to commit state program funds in a timely manner.

2. Funding for specific projects. The authority will fund, on a first-come, first-served basis, applications submitted by eligible local governments for specific projects. The following conditions will apply:

a. Total funding, including any prior general or project allocations, will be limited to a specific dollar amount.

b. A locality with an uncommitted general allocation will be expected to commit these funds to the project prior to requesting additional monies.

The funding limit for specific projects will be lifted only in the event that state grant monies are not being committed in a timely manner.

B. Application procedures. The authority shall, from time to time, give notice of funds availability to eligible units of local government throughout the Commonwealth. Such notice may include the applicable funding limits and a timetable for the submission and review of applications for each type of funds allocation.

Specific application requirements and review procedures will be provided in application packets and through such workshops/training sessions as the authority deems appropriate. Applications for grant funds will be expected to include the following types of information:

1. General allocations. Applications for general allocations will include an identification and description of program neighborhoods; the locality's method of identifying and selecting projects; a description of local program operating procedures; a description of steps to be taken to ensure adequate maintenance and operation of projects receiving rental rehabilitation funds; a description of steps to be taken to encourage the use of minority and women-owned businesses; a description of the anticipated form of assistance to be provided to property owners and the means by which the amount of assistance will be determined; an indication of the anticipated source of matching funds; a description of any assistance to be provided to property owners in obtaining matching funds; an affirmative marketing plan (see 13VAC10-90-50 I 2); an agreement to comply with all federal and state program requirements; and other information as requested by the authority in the application packet.

2. Funding for specific projects. An application for funding for a specific project will include information concerning the project's conformance with neighborhood standards'; a description of local program operating procedures; a description of steps to be taken to ensure adequate project maintenance and operation; a description of steps to be taken to encourage the use of minority and women-owned businesses; a description of the project's financing package; an affirmative marketing plan; information concerning expected displacement/relocation of lower income persons; an agreement to comply with all federal and state program requirements; and other information as requested by the authority in the application packet.

3. Requests for increases in allocations. After receiving an allocation of funds under the Virginia Rental Rehabilitation Program, a grantee may request an increase in such allocation by applying therefor on such form or forms as the authority shall provide.

C. Grant agreement. Upon the approval of an application for funding, the authority will enter into a grant agreement with the local government stating the terms and conditions under which funds will be provided.

Historical Notes

Derived from VR400-02-0008 § 4, eff. December 18, 1984; amended, Volume 04, Issue 21, eff. June 21, 1988; Volume 05, Issue 21, eff. July 1, 1989; Volume 07, Issue 25, eff. August 20, 1991.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.