Section 110.60  Eligible/Ineligible Projects and Activities for CDAP Components

a)         Eligible Projects and Activities

Eligible activities are detailed in 24 CFR 570.482 (2004).  Listed below are program components that describe eligible projects and activities that may be funded through CDAP:

1)         General Economic Development Component.  Provision of financial assistance to private for-profit or not-for-profit businesses for such activities as land acquisition; public facilities and improvements in support of economic development (such as, water, sewer and utility lines); acquisition, construction, rehabilitation of commercial and industrial buildings/facilities; machinery and equipment; furnishings and fixtures; and working capital expenses.

2)         Competitive Public Facilities Construction and Design Engineering Component.  Provision of financial assistance for acquisition, construction, reconstruction, rehabilitation or installation of public facilities, and improvements e.g., water and sewer facilities, including storm sewers; flood retention and drainage facilities.

3)         Competitive Housing Rehabilitation Program Component.  Provision of financial assistance in support of low- to moderate-income housing, including rehabilitation, clearance, demolition, and/or removal of privately-owned buildings and provision of site improvements such as connection of residential structures to water or sewer lines; certain types of housing modernization; temporary relocation assistance; code enforcement; and lead-based paint abatement.

4)         Non-Competitive Mobility and Accessibility Rehabilitation Services Component.  Provision of financial assistance includes structural improvements to privately-owned buildings to remove physical barriers that restrict the mobility and accessibility of elderly and disabled persons in order to comply with the Illinois Accessibility Code (71 Ill. Adm. Code 400), e.g., modifications to entrances and exits, parking improvements, modification of bathroom and kitchen facilities.

5)         Competitive Planning Assistance Component.  Provision of financial assistance includes planning activities that focus on the needs of low- and moderate-income persons in the community, including feasibility studies, data gathering, analyses, preparation of plans, and identification of implementing actions.

6)         Emergency Set-Aside for Public Facilities Component.  Provision of financial assistance includes acquisition, construction, reconstruction, rehabilitation or installation of public facilities, and improvements (e.g., water and sewer facilities, including storm sewers, flood retention and drainage facilities).

            b)         Eligible Program Planning and Administration Costs

With respect to subsection (a), program planning and administration costs are allowable costs for eligible projects and activities under CDAP.  Eligible costs for general program planning and administration include local government operational costs of implementing a local program.  It includes costs involved in preparing the environmental review; preliminary engineering, planning, and design fees for the project; the cost of the local program audit; and other contractual costs for professional services that are associated with the administration of the program.  It excludes all pre-program costs, such as payment or reimbursement of application preparation fees, costs associated with conducting a local survey, etc.  There is a 10% ceiling placed on general program planning and administration costs for any local program.

c)         Ineligible Projects and Activities

1)         Generally, any type of activity not described or referred to in Section 110.60(a) is considered ineligible.

2)         The following is a selective list of examples of projects and activities that are generally ineligible:  buildings used predominantly for the general conduct of government (e.g., city halls, courthouses, jails, police stations, etc.).  However, if the Illinois Historic Preservation Agency requires historic preservation renovations to a project, those renovations will be deemed eligible expenses. General government expenses; political activities; purchase of construction equipment and purchase of equipment, fixtures, motor vehicles, furnishings, or other personal property not an integral structural fixture is generally ineligible.  However, CDAP funds may be used to purchase or to pay depreciation or use allowances for such items when necessary if the administration of activities was assisted with CDAP funds.  The costs associated with operating and maintaining public facilities and services are generally ineligible.  New housing construction is ineligible, except as provided under the last resort housing provision set forth in 49 CFR 24 (2004), or, when carried out by a subgrantee pursuant to 24 CFR 570.204(a)(2) (2004); income payments for housing or any other purpose (e.g., income maintenance, housing allowances, down payments, mortgage subsidies, etc.).  All activities as listed in 24 CFR 570.482 (2004) and section 105(a) of the Act are eligible.

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