Res 1992-011 - Laserfiche WebLink

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- proceeds from the sale of loans made with CDBG funds; - proceeds from the sale of obligations secured by loans made with CDBG funds; - interest earned on funds held in a revolving fund account; - interest earned on program income pending disposition of such income; and - funds collected through special assessments made against properties owned and occupied by households not of low and moderate income, whare such assessments are used to recover all or part of the CDBG portJon of a public improvement. The RLF is used to encourage business development or expansion. These funds, which were distributed through the federal Community Development Block Grant, must be awarded for the express purpose of creating new permanent jobs or permanently retaining existing jobs primarily for low and moderate income persons. Distribution of Proaram Income The program income provision was not added to Title I of the Housing and Community Development Act until November 30, 1984. This provision requires states to allow "Communities to retain program income if the contractor proposes to use the program income" to continue the same activity from which the income was derived and otherwise, permits states to either require the return of program income to the state or define alternative options which would allow the contractor to retain the program income. Contracts which were awarded beginning with 1985 program funds and thereafter have the requirement to submit a revolving loan fund plan, along with a certified original resolution passed by council/commissioners' court approving the plan, for approval by the Department of Commerce hereinafter referred to as the Department. The city/county must have a RLF plan approved in writing by the Department prior to committing and expending any program income. (Communities will need to review the Anal Statement for the program year in Which their contract was awarded to detennine the maximum amount of program income which is allowable for them to utilize in their revoMng loan fund.) Regardless of the program year from which (recaptured/program) income Is derived, communities processing a drawdown voucher to obtain funds from the Department on any open contract must use any program income on hand from any contract (will be reflected on the drawdown voucher for tracking purposes) before receiving additional funds from the Department. The Department will keep records of amounts that were required to be used and will, when the community identifies a project for which the RLF funds are eligible, reimburse the community for the amount previously expended. The Department will not reimburse the community for amounts previously expended during the drawdown process: 1) if the community did not have a revolving loan fund plan approved by the Department on the day that the drawdown voucher was processed, or 2) if the community has been awarded a new economic development contract (this will be determined on a case-by-case basis). Program income on hand should be reflected on - 2-