Rule-Making Notices (Hearing Notices)

rulemaking_notices Wisconsin Administrative Register No. 694, 10/31/2013

Rule-Making Notices

Notice of Hearing

Administration

rulemaking_notices CR 13-069 CR 13-069

rulemaking_notices EmR1309 EmR1309

NOTICE IS HEREBY GIVEN that pursuant to ss. 16.004 (1) and 227.11 (2) (a), Stats., the Department of Administration will hold a public hearing on the emergency rule and proposed permanent rule to amend Chapter Adm 93, relating to the distribution of Community Development Block Grant funds.

Hearing Information

Date:   Monday, November 18, 2013
Time:   2:00 p.m. to 4:00 p.m.
Location:   Pecatonica Room, Room No. 132
  WI Dept. of Administration Building
  101 E. Wilson St., 1st Floor
  Madison, WI 53702

Appearance at Hearing and Submission of Written Comments

Interested persons are invited to appear at the hearing and present comments on the proposed rule. Persons appearing may make an oral presentation but are also urged to submit facts, opinions, and arguments in writing as well. Facts, opinions, and arguments may also be submitted in writing without personal appearance. Written comments on the proposed rule may be submitted to:

Donna Sorenson

Department of Administration

P.O. Box 7864

Madison, WI 53707-7864

Email: [e-mail]

Fax: [phone]

The deadline for submitting comments to the Department is 4:30 p.m. on November 19, 2013.

Availability of Rules

Copies of this proposed rule and fiscal estimate are available upon request to Donna Sorenson, Department of Administration, P.O. Box 7864, Madison, WI 53707-7864, or by email at [e-mail].

Analysis Prepared by the Department

Statutes interpreted

Section 16.309, Stats.

Statutory authority

Section 16.309, Stats.

Explanation of agency authority

The Department has been vested with the authority to administer programs funded by Community Development Block Grant (CDBG) program grants received from the federal government pursuant to 42 USC 5301 to 5320. The Department has further been vested with authority to promulgate rules for the administration of said grant funds.

The Department hereby proposes an order to create Wis. Admin. Code Chapter 93.

Related statute or rule

Section 16.309, Stats., and former Wis. Admin. Code Chapter Comm. 108.

Summary and plain language analysis

The objective of the rule is to set forth the criteria the department will use to administer the CDBG program.

Section 1 — The proposed rule will do the following:

a. Reconstitute many portions of the former ch. Comm 108.

b. Decline to reconstitute portions of ch. Comm 108 which added unnecessary confusion by duplicating federal regulations where reference to such regulations will suffice, such as the former ss. Comm 108.04, 108.07, and 108.14 (1).

c. Decline to reconstitute portions of ch. Comm 108 which could vary from year to year, such as the table found in the former s. Comm 108.06.

d. Decline to reconstitute portions of ch. Comm 108 that add complexity to the code without adding meaning, such as point ranges found in the former s. Comm 108.10.

e. Such other changes as are necessary to comply with current HUD requirements, or which will otherwise increase the efficiency or effectiveness of the program and are allowed by HUD requirements.

As of this writing the exact language of the proposed rule is identical to the language of the EmR1309, a complete copy of which is available as noted above or at: https://docs.legis.wisconsin.gov/code/emergency_rules/current/emr1309.

Summary of and comparison with, existing or proposed federal regulations

The proposed chapter of administrative rules arises out of existing federal requirements.

Comparison with rules in adjacent states

All adjacent states have similar administrative code provisions.

Illinois — Eligible applicants must have populations of 50,000 or less and must not be located in an urban county or the 38 cities that receive federal “entitlement" funds. Illinois allows two or more municipalities with similar issues to file a joint application, provided they show a joint effort is required to solve the stated problem. Economic Development may be submitted on an “as-need" basis, there are no deadlines. Applications for both `housing stock upgrades' and public facilities do have deadlines. Another DCEO funding category with no deadline is the “Mobility and Accessibility Rehabilitation Supplement," which provides funding for housing improvement to aid the physically impaired. Municipalities are allowed only one application per category, per program year. All funding provided by CDBG for housing renovation must be specifically for single-family owner occupied.

Iowa — Eligible applicants are municipalities and they may apply directly or on behalf of a sub-recipient and they may file a joint application with another eligible applicant. All applications must include a housing needs assessment; all must demonstrate sustainable community activities. In addition, all award amounts are negotiable, and no project shall exceed 24 months in length. Applicants may submit multiple applications for each of the multiple categories of activity. CBDG funds are distributed into five separate funds, each with their own application rules. Categories include: water and sewer set aside, housing fund, job creation (ED), `contingency,' and the `competitive program,' and each category contains specific rules. The competitive program limits the grant amount to a proportion relative to the applying municipality's size.

Michigan — Eligible applicants have less than 50,000 people and are non-entitlement communities. There are four distinct programs that are similar to Wisconsin's CDBG programs, these are `Infrastructure,' ED, Planning, and Blight Elimination. Minimum Leverage Ratios are required of the majority of activities. Blight elimination projects must provide certification from a Licensed Building Inspector that the project sight meets the definition of blight. Economic Development is subject to strict underwriting guidelines that require projects submit cost quotes from independent third parties. Criminal background checks are also required under this category. All projects must be completed within 24 months from the date the funding is awarded. Downtown development is also a distinct category. Downtown development provides funding for façade improvements for small rural communities, funding is also provide for the acquisition, and renovation of a historic “signature building," in small communities.

Minnesota — State of Minnesota CDBG is part of larger program known as “Small Cities Development Program." The state provides CBDG funding to Housing grants, as well as PF grants, and “Comprehensive Grants," which may be used for Housing, PF, or Economic Development. Minnesota does not appear to set aside money for emergency or contingency grant programs. Minnesota requires any single family rehabilitation projects whose loan comes from CDBG Housing Grant program to comply with state building codes, and a state defined single family rehabilitation standard. Minnesota also requires detailed progress reports on October 15th of each year, as well as an `anti-displacement' plan and the submission of a “drug free work place" plan to DEED. Money provided for affordable housing construction must provide a rental market analysis and ensure fair market rents.

Effect on Small Business

The proposed rule chapter will have no direct impact upon small businesses, as the State may only grant funds to units of local government.

Initial Regulatory Flexibility Analysis

The proposed rule will not affect small businesses.

Fiscal Estimate

The proposed rule chapter will have no impact upon the State's fiscal obligations. A copy of the Fiscal Estimate may be obtained from the agency at no charge by contacting Donna Sorenson at the address, phone number, or e-mail address listed on the first page of this Notice, or at: https://docs.legis.wisconsin.gov/code/emergency_rules/current/emr1309_fe.

Summary of Economic Impact Analysis

Creation of the proposed rule chapter will have a positive impact on the economy of the state by ensuring continued eligibility of the State of Wisconsin to receive additional CDBG grant funds, which are used to promote economic development throughout the state. A copy of the Economic Impact analysis may be obtained from the agency at no charge by contacting Donna Sorenson at the address, phone number or e-mail address listed on the first page of this Notice, or at: https://docs.legis.wisconsin.gov/code/emergency_rules/current/emr1309_fe.

Small Business Regulatory Coordinator

Joe Knilans

[e-mail]

[phone]

Internet Link to Rule

http://docs.legis.wisconsin.gov/code/register/2013/688b/emergency_rules/1/1

Contact Person

Lisa Marks

Department of Administration

Division of Housing

101 E. Wilson Street, 5th Floor

Madison, WI 53702

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Ch. Adm 93, Small Cities Community Development Program for Community and Economic Development
3. Subject
Community Development Block Grant Program
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
X GPR   X FED   ⍽ PRO   ⍽ PRS   ⍽SEG   ⍽ SEG-S			s. 20.505 (7) (a), (m), (n)
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy X Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
Documenting compliance with federally required rules on the Community Development Block Grant Program.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Will contact and complete a full summary of information provided by units of local government, consultants and past grantees.
11. Identify the local governmental units that participated in the development of this EIA.
Will identify following the full economic impact analysis.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
Overall federal funding remains consistent. The rule may impact certain units of general local government, but fiscal impact can not be predicted.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The benefit of implementing the rule, is State's ability to document compliance with federally required rules on the Community Development Block Grant Program.
14. Long Range Implications of Implementing the Rule
To maintain compliance with federal regulations.
15. Compare With Approaches Being Used by Federal Government
N/A
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Illinois — Eligible applicants must have populations of 50,000 or less and must not be located in an urban county or the 38 cities that receive federal “entitlement" funds. Illinois allows two or more municipalities with similar issues to file a joint application, provided they show a joint effort is required to solve the stated problem. Economic Development may be submitted on an “as-need" basis, there are no deadlines. Applications for both `housing stock upgrades' and public facilities do have deadlines. Another DCEO funding category with no deadline is the “Mobility and Accessibility Rehabilitation Supplement," which provides funding for housing improvement to aid the physically impaired. Municipalities are allowed only one application per category, per program year. All funding provided by CDBG for housing renovation must be specifically for single-family owner occupied. Iowa — Eligible applicants are municipalities and they may apply directly or on behalf of a sub-recipient and they may file a joint application with another eligible applicant. All applications must include a housing needs assessment; all must demonstrate sustainable community activities. In addition, all award amounts are negotiable, and no project shall exceed 24 months in length. Applicants may submit multiple applications for each of the multiple categories of activity. CBDG funds are distributed into five separate funds, each with their own application rules. Categories include: water and sewer set aside, housing fund, job creation (ED), `contingency,' and the `competitive program,' and each category contains specific rules. The competitive program limits the grant amount to a proportion relative to the applying municipality's size. Michigan — Eligible applicants have less than 50,000 people and are non-entitlement communities. There are four distinct programs that are similar to Wisconsin's CDBG programs, these are `Infrastructure,' ED, Planning, and Blight Elimination. Minimum Leverage Ratios are required of the majority of activities.. Blight elimination projects must provide certification from a Licensed Building Inspector that the project sight meets the definition of blight. Economic Development is subject to strict underwriting guidelines that require projects submit cost quotes from independent third parties. Criminal background checks are also required under this category. All projects must be completed within 24 months from the date the funding is awarded. Downtown development is also a distinct category. Downtown development provides funding for façade improvements for small rural communities, funding is also provide for the acquisition, and renovation of a historic “signature building," in small communities. Minnesota — State of Minnesota CDBG is part of larger program known as “Small Cities Development Program." The state provides CBDG funding to Housing grants, as well as PF grants, and “Comprehensive Grants," which may be used for Housing, PF, or Economic Development. Minnesota does not appear to set aside money for emergency or contingency grant programs. Minnesota requires any single family rehabilitation projects whose loan comes from CDBG Housing Grant program to comply with state building codes, and a state defined single family rehabilitation standard. Minnesota also requires detailed progress reports on October 15th of each year, as well as an `anti-displacement' plan and the submission of a “drug free work place" plan to DEED. Money provided for affordable housing construction must provide a rental market analysis and ensure fair market rents.
17. Contact Name				18. Contact Phone Number
Lisa Marks				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

n/a

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

n/a

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ Less Stringent Compliance or Reporting Requirements ⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting ⍽ Consolidation or Simplification of Reporting Requirements ⍽ Establishment of performance standards in lieu of Design or Operational Standards ⍽ Exemption of Small Businesses from some or all requirements ⍽ Other, describe:

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

n/a

5. Describe the Rule's Enforcement Provisions

n/a

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No

Notice of Hearing

Employment Relations Commission

rulemaking_notices CR 13-092 CR 13-092

rulemaking_notices EmR1310 EmR1310