Chapter Adm 93

Adm 93.01(2) (2) Authority. This chapter constitutes the process for accepting, evaluating, and scoring applications, and awarding of grants for the CDBG program as promulgated under the authority given in s. 16.309, Stats.

Adm 93.01 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.02 Adm 93.02 Eligibility.

Adm 93.02(1) (1) Except as provided in sub. (2), any local government may apply for CDBG funds under this chapter.

Adm 93.02(2) (2) A local government that fails to comply with any of the administrative, underwriting, recordkeeping, reporting, auditing, closeout, payment, reimbursement, or other requirements of this chapter may not apply for or receive CDBG funds from the department under this chapter until such time as the noncompliance has been determined to be resolved to the satisfaction of the department.

Adm 93.02 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14; correction in (2) made under s. 35.17, Stats., Register April 2014 No. 700.

Adm 93.03 Adm 93.03 Definitions. In this chapter:

Adm 93.03(1) (1) “Application” means an application for CDBG funds under this chapter.

Adm 93.03(2) (2) “Blight” has the meaning set forth in s. 66.1331 (3) (a), Stats.

Adm 93.03 Note Note: Section 66.1331 (3) (a), Stats., reads: “Blighted area” means any area, including a slum area, in which a majority of the structures are residential or in which there is a predominance of buildings or improvements, whether residential or nonresidential, and which, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of these factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency and crime, and is detrimental to the public health, safety, morals or welfare.

Adm 93.03(3) (3) “Blight elimination and brownfield redevelopment program” means the blight elimination and brownfield redevelopment program administered under subch. V.

Adm 93.03(4) (4) “Blighted property” has the meaning set forth in s. 66.1333 (2m) (bm), Stats. For the purposes of this chapter, the definition of blighted property shall apply to cities, villages, towns, and counties.

Adm 93.03 Note Note: Section 66.1333 (2m) (bm), Stats., reads: “Blighted property” means any property within a city, whether residential or nonresidential, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provisions for ventilation, light, air or sanitation, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime, and is detrimental to the public health, safety, morals or welfare, or any property which by reason of faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair market value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a city, retards the provisions of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals or welfare in its present condition and use, or any property which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community.

Adm 93.03(5) (5) “Blighted site or brownfield site redevelopment project” means any work or undertaking by a local government to acquire a blighted or brownfield site, to conduct an environmental audit, to engage in environmental remediation, and to raze, demolish, remove, reconstruct, renovate, or rehabilitate existing buildings, structures, or other improvements to promote use of a blighted or brownfield site by a business or person for purposes that will result in end uses with a taxable value in accordance with an approved blighted or brownfield site redevelopment plan.

Adm 93.03(6) (6) “Blighted site or brownfield site” means an abandoned, idle, or underused industrial or commercial facility or site in a blighted area, or that qualifies as a blighted property, the expansion or redevelopment of which is adversely affected by actual or perceived environmental pollution.

Adm 93.03(7) (7) “CDBG funds” means community development block grant funds awarded to the department by the federal government under 42 USC 5301 to 5319.

Adm 93.03(8) (8) “Department” means the department of administration.

Adm 93.03(9) (9) “Economic development program” means the economic development program administered under subch. III.

Adm 93.03(10) (10) “Eligible local government” means a local government that is eligible to apply for and receive CDBG funds under the U.S. Department of Housing and Urban Development’s State and Small Cities Program pursuant to 24 CFR 570.3.

Adm 93.03(11) (11) “Emergency grant program” means the program administered under subch. VI.

Adm 93.03(12) (12) “Environmental audit” means an investigation, analysis, and monitoring of a brownfield site to determine the existence and extent of actual or potential environmental pollution.

Adm 93.03(13) (13) “Environmental pollution” has the meaning set forth in s. 291.01 (4), Stats.

Adm 93.03 Note Note: Section 291.01 (4), Stats., defines “environmental pollution” to mean the contamination or rendering unclean or impure the air, land or waters of the state, or making the same injurious to public health, harmful for commercial or recreational use, or deleterious to fish, bird, animal or plant life.

Adm 93.03(14) (14) “Environmental remediation activities” has the meaning set forth in s. 238.13 (1) (d), Stats.

Adm 93.03 Note Note: Section 238.13 (1) (d), Stats., reads: “Environmental remediation activities” means investigation, analysis and monitoring of a brownfields facility or site to determine the existence and extent of actual or potential environmental pollution; abating, removing or containing environmental pollution at a brownfields facility or site; or restoring soil or groundwater at a brownfields facility or site.

Adm 93.03(15) (15) “Full-time job” has the meaning set forth in s. 71.07 (2dx) (a) 4., Stats.

Adm 93.03 Note Note: Section 71.07 (2dx) (a) 4. reads: “Full-time job” means a regular, non-seasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law. “Full-time job” does not include initial training before an employment position begins.

Adm 93.03(16) (16) “HUD” means the U.S. Department of Housing and Urban Development.

Adm 93.03(17) (17) “Local government” means a city, village, town, or county that is in a nonentitlement area as defined in 24 CFR 570.3 and is not eligible to directly apply for or participate in the federal community development block grant entitlement program.

Adm 93.03(18) (18) “Low to moderate household income” means the median household income in the county where the local government is located, as reported by the latest U.S. census and updated periodically by HUD.

Adm 93.03(19) (19) “Municipality” means a local government that is eligible for CDBG funds under s. Adm 93.02.

Adm 93.03(20) (20) “Net mill rate” means the total of all property taxes levied by local governments against a given property for all purposes less general property tax relief payments divided by the estimated market value of taxable property in the municipality.

Adm 93.03(21) (21) “Person” means an individual, partnership, corporation, nonprofit organization, city, village, town, county, or trustee, including a trustee in bankruptcy.

Adm 93.03(21m) (21m) “Program income” has the meaning set forth in s. 24 C.F.R 570.489.

Adm 93.03 Note Note: The definition of “program income,” including applicable exceptions, is too lengthy to be quoted in full here. A summary of the definition of the term “program income” is all gross income received by a unit of general local government, or a subrecipient of a unit of general local government, that was generated from the use of CDBG funds.

Adm 93.03(22) (22) “Public facilities economic development program” means the public facilities economic development program administered under subch. IV.

Adm 93.03(23) (23) “Public facilities plan” means a written plan for proposed project for which an eligible local government may seek funding under subch. VII.

Adm 93.03(24) (24) “Public facilities program” means the annual public facilities program administered under subch. II.

Adm 93.03(25) (25) “Residential utility rate” means for areas served by public water and sanitary sewer service, the average annual household utility rate paid for water and sanitary sewer services determined by dividing the total gross annual residential water and sewer revenue collected for the preceding calendar year by the number of households, as reported by the latest U.S. census and updated periodically by the U.S. department of commerce.

Adm 93.03(26) (26) “Site redevelopment plan” means a plan adopted by a local government for the acquisition, clearance, reconstruction, rehabilitation, and future use of a blighted or brownfield site.

Adm 93.03 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.04 Adm 93.04 National objectives. A project funded with CDBG funds under this chapter shall meet one or more national objectives as enumerated in and required by 24 CFR 570.

Adm 93.04 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.05 Adm 93.05 Application materials and manual. The department shall prepare application materials and an application instruction manual, all of which may be updated as needed. The application materials shall set forth the application instructions and requirements for funding under the programs described in this chapter. The application instruction manual shall contain a scoring system to be utilized under s. Adm 93.09 (1) (a); amounts required as “minimal local financial participation” required under s. Adm 93.09 (1) (b); and the point systems related to distress indicators utilized under ss. Adm 93.10 to 93.13.

Adm 93.05 Note Note: Application materials and the application instruction manual are available on request without charge from the Department of Administration, Division of Housing, P.O. Box 7970, Madison, WI 53707; phone [phone]; fax [phone]. Application materials and the application instruction manual may also be accessed from the Department of Administration webpage: http://doa.wi.gov/index.asp?locid=173.

Adm 93.05 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.06 Adm 93.06 Distribution of funds.

Adm 93.06(1) (1) For each annual grant of CDBG funds the department receives from the federal government, the department shall establish distribution amounts. The department shall file an action plan with HUD each year, per HUD regulations. Funds may be distributed only in accordance with said plan or any amendments thereto that are accepted by HUD.

Adm 93.06(2) (2) Program income received by the department under this chapter shall be allocated for awards under any program administered under this chapter.

Adm 93.06 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.07 Adm 93.07 Limits upon awards. The maximum amount of CDBG funds that may be awarded to any local government under the public facilities program, as specified under subch. II, in a 12-month period, shall be announced by the department in its application instruction manual.

Adm 93.07 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14; correction in numbering made under s. 13.92 (4) (b) 1., Stats., Register April 2014 No. 700.

Adm 93.08 Adm 93.08 Construction. This chapter shall be liberally construed to effect the national objectives set forth in s. Adm 93.04 and 24 CFR 570.

Adm 93.08 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

subch. II of ch. Adm 93 Subchapter II — Public Facilities Program

Adm 93.09 Adm 93.09 Public facilities program.

Adm 93.09(1) (1) General.

Adm 93.09(1)(a) (a) The department may award a grant to an eligible local government for a public facilities project based upon the department’s evaluation of all applications received from eligible local governments. The department’s evaluation shall be established based upon the scoring system set forth in its application instruction manual.

Adm 93.09(1)(b) (b) The minimum local financial participation as specified in the application instruction manual may be waived when the specific project has a particular urgency because existing conditions pose a serious and immediate threat to the safety, health, or welfare of the community, where other financial resources are not available to meet such needs or when the specific project is located in a distressed area.

Adm 93.09 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.10 Adm 93.10 Distress indicators. The department shall award points to a local government based upon the department’s evaluation of the documented level of distress, as set forth in the department’s application instruction manual.

Adm 93.10 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.11 Adm 93.11 Needs assessment. The department shall award points to a local government based upon the department’s evaluation of the local government’s documented need for the public facilities project, as set forth in the department’s application instruction manual.

Adm 93.11 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.12 Adm 93.12 Utility rates. The department shall award points to an eligible local government based upon the department’s evaluation of the local government’s ability to pay for the public facilities project, as measured by the local residential utility rates, as set forth in the department’s application instruction manual.

Adm 93.12 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.13 Adm 93.13 Leveraging. The department shall award points to a local government based upon the department’s evaluation of the local government’s leveraging of CDBG funds with funds from other public or private sources, as set forth in the department’s application instruction manual. To qualify for points under this section, a local government shall document the availability of firm commitments for the balance of project funding from creditworthy sources to ensure timely completion of the project.

Adm 93.13 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

subch. III of ch. Adm 93 Subchapter III — Economic Development Program

Adm 93.14 Adm 93.14 Economic development program. The department may award a grant to an eligible local government under the economic development program upon receipt and consideration of an application. When making a determination regarding an application, the department shall consider the extent of poverty and unemployment and other economic factors in the area of the project, in accordance with current HUD economic and population data available for the area.

Adm 93.14 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.15 Adm 93.15 Job creation and retention requirements.

Adm 93.15(1) (1) If an eligible local government awards CDBG funds received under this subchapter, to any person, whether as a grant or a loan, the person shall execute an agreement with the eligible local government, and other documents prescribed by the department, committing to create full-time equivalent jobs or retain full-time equivalent jobs, or both, in accordance with 24 CFR Part 570, as required by the department.

Adm 93.15(2) (2) The department shall require a person that receives an award under this subchapter to document full-time equivalent job creation and retention with a list of full-time jobs or positions created and retained, the job title for each full-time equivalent job created and retained, job skills, wages and benefits, and any other information the department considers relevant.

Adm 93.15 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

Adm 93.16 Adm 93.16 Revolving loan funds.

Adm 93.16(1) (1) An eligible local government that is awarded CDBG Housing or Economic Development funds, whether individually, as part of a regional group of such local governments, and whether directly or indirectly through a sub-grant recipient, may retain program income from all grants awarded to establish and capitalize a revolving loan fund to promote further housing or economic development activities as authorized by the Housing and Community Development Act of 1974. Any fund administered by a sub-grantee shall be subject to the limitations set forth in section 105 (a) (15) of the Community Development Act of 1974. A local government or regional group that establishes a revolving loan fund under this section shall further administer and use the fund in accordance with all applicable requirements established by the federal government and the department, and shall require the same of any fund administered by a sub-grantee.

Adm 93.16(2) (2) Any local government, regional group, or sub-grantee administering a revolving loan fund shall report to the department on the use of such a fund as prescribed by the department. The department may establish a maximum amount of program income that may be retained in any revolving loan fund, and may establish a maximum amount of time for which funds may be held without use, either as a separate or as a combined limitation. Any amount of program income in excess of the maximum amount or time established by the department shall be immediately remitted to the department by the local government, regional group, or sub-grantee.

Adm 93.16 History History: EmR1309: emerg. cr. eff. 7-1-13; CR 13-069: cr. Register April 2014 No. 700, eff. 5-1-14.

subch. IV of ch. Adm 93 Subchapter IV — Public Facilities Economic Development

Adm 93.17 Adm 93.17 Public facilities economic development program.

Adm 93.17(1) (1) The department may award a grant to an eligible local government under the public facilities economic development program following consideration of some or all of the following:

Adm 93.17(1)(a) (a) The project serves a public purpose.

Adm 93.17(1)(b) (b) The project costs are reasonable.

Adm 93.17(1)(c) (c) All sources of project financing will be committed prior to the disbursement of the grant.

Adm 93.17(1)(d) (d) The project is financially feasible.

Adm 93.17(1)(e) (e) The project will likely retain or create jobs in this state.

Adm 93.17(1)(f) (f) The local government will use the CDBG funds for one of the following purposes:

Adm 93.17(1)(f)1. 1. A public facilities project or other public infrastructure improvements to facilitate a business’s efforts to engage in job creation or retention activities under 24 CFR 570.483 (b) (4) designed to benefit low and moderate income persons.