Rule-Making Notices
Notice of Hearing
Administration
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
Fax: (608) 267-3842
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
donna.sorenson@wisconsin.gov.
Analysis Prepared by the Department
Statutes interpreted
Statutory authority
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
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.
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
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
(608) 267-7873
Internet Link to Rule
Contact Person
Lisa Marks
Department of Administration
Division of Housing
