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~~ <br />CDBG applicants must be: <br />• Local govermnent; or <br />• Non-profit agencies with a primazy purpose of providing <br />housing, community or economic development services within <br />the Town of Chapel Hill. <br />"Non-profit" means having a 501 c(3) tax exemption notice from the IRS. <br />All applicants must demonstrate a track record of continuous, active, and <br />relevant operation for at least two yeazs. <br />Income Eligibility In general, all projects must benefit persons with household income below <br />80% of area median income adjusted for family size. Please see <br />Attachment 4 for current income limits. <br />Grant Period The funding period starts July 1, 2006. Costs incurred before that date and <br />before aPerformance /Development Agreement has been executed cannot <br />be reimbursed. <br />Special Conditions Construction projects must comply with federal rules for: environmental <br />review, "Davis Bacon" wage rates, real property acquisition, contract <br />procurement, lead based paint, and (for ]azge projects) I-IUT) Section 3 <br />economic opportunity. Because of these conditions, HOME and CDBG <br />funds cannot be provided for construction projects that are scheduled to <br />start before .Iuly 1, 2006, Please also note that the intention to use federal <br />funds for a project triggers federal acquisition and relocation regulations <br />affecting real estate purchase. <br />Invalid Applications may be rejected without evaluation. Reasons may include: <br />Applications 1) Program not clearly eligible according to CDBG/I-IOME regulations.. <br />2) Applicant has demonstrated poor past performance in carrying out <br />CDBG- or HOME-funded programs, or complying with federal <br />regulations. <br />3) Applicant fails to provide audited financial statements or other <br />required information. <br />Project Evaluation CDBG applications will be reviewed by the Town of Chapel Hill Housing <br />& Funds Allocation and Neighborhood Services Staff: The Town's Housing and Community <br />Development Advisory Boazd will provide a recommendation to the <br />Council on the Community Development and HOME Programs. HOME <br />applications will be reviewed by the Orange County HOME Program <br />Review Committee consisting of an elected official and staff person from <br />each participating jurisdiction. The HOME Program Review Committee <br />will develop a recommendation to forwazd to each of the four <br />governments. In addition, the Town and County will seek citizen input on <br />the Plan through public hearings. Please see Attachment 2 for a proposed <br />schedule for development of the Community Development and HOME <br />Program plans. <br />III <br />