Sec. 05.04.06.09. Grant Terms and Requirements

A. Requirements for Grants. In order to be eligible for a grant, the following requirements shall be met:

(1) A grantee shall meet the requirements of Regulation .03A of this chapter;

(2) The property shall be located in a target area as defined in Regulation .02B of this chapter, or the lead hazard reduction activity that the applicant proposes to use is one that the Program recognizes as testing an innovative or unproven method of lead hazard reduction; and

(3) A grantee shall provide evidence satisfactory to the Program to show that either:

(a) Based on Program underwriting:

(i) For an owner-occupant, there is insufficient household income to make loan payments; or

(ii) For an owner-landlord, there is insufficient income from the property to make loan payments; or

(b) The property does not have sufficient value to secure other financing.

B. Matching Funds Requirement.

(1) An owner-landlord shall demonstrate that 20 percent of the funds for the project come from another source.

(2) If the owner-landlord is a nonprofit organization, the percentage of matching funds required is 10 percent rather than 20 percent.

(3) An owner-occupant shall demonstrate that 10 percent of the funds for the project come from another source, unless the owner's household is a family of limited income.

C. Maximum Grant Amount.

(1) A grant for a residential building may not exceed $25,000 per dwelling unit.

(2) A grant for a child care center that is not located in the operator's single family residence may not exceed $25,000.

(3) A sponsor may not receive commitments for more than $250,000 per fiscal year in grants and forgiven loans combined. The sponsor limit applies to the sponsor and all related corporations, partnerships, and other business entities.

(4) The Director may, in the Director's discretion, approve increases in the maximum grant amount to cover exceptional circumstances in an amount determined by the Director to be reasonable.

D. Insurance.

(1) An applicant shall follow the insurance requirements outlined in Regulation .06F of this chapter, except that insurance policies are not required to name the Department as mortgagee or loss payee.

(2) The required insurance shall be in force at the time the grant is closed.

E. Disbursement. Disbursement shall be made periodically based upon requests for disbursement submitted by the grantee in a form satisfactory to the Department.

F. Grant Agreement.

(1) The Department shall enter into a grant agreement with each grantee.

(2) The Department may establish other terms and conditions in the grant agreement, and any other documents related to the grant, which the Department considers reasonable and necessary to accomplish the objectives of the Program or to ensure compliance with all federal, State, and local laws, ordinances, and regulations, and departmental programs and policies.