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Community Development Block Grants_Section 108 Loan Guarantees

Published on AidPage by IDILOGIC on Jun 24, 2005

Administered by:

Assistance considerations...

Length and Time Phasing of Assistance

The maximum repayment period for a Section 108 loan is twenty years. Repayment schedules and forms are negotiable.

Formula and Matching Requirements

Section 108 has no matching requirement but Section 108 funds (like CDBG funds) may be used as local matching funds for most other Federal programs. Maximum commitment amounts are limited as follows: Entitlement Public Entities an entitlement public entity may apply for up to five times the public entity's latest (approved) CDBG entitlement amount, minus any outstanding Section 108 commitments and/or principal balances on Section 108 loans; State assisted public entities a nonentitlement public entity may apply for up to five times the latest (approved) CDBG amount received by its State, minus any outstanding Section 108 commitments and/or principal balances on Section 108 loans for which the State has pledged its CDBG funds as security; and Nonentitlement public entities eligible under the HUD administered Small Cities Program in Hawaii, the maximum commitment amount is five times the public entity's latest grant under Subpart F of 24 CFR Part 570, minus any outstanding Section 108 commitments and/or principal balances on Section 108 loans.

Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.