| (a) Threshold Match requirement. The Department shall
use population figures from the most recently available U.S. Census
Bureau's American Community Survey (ACS) as of the date that an Application
is first submitted under the NOFA to determine the applicable Threshold
Match requirement. The Department may incentivize or provide preference
to Applicants committing to provide additional Threshold Match above
the requirement of this subsection. Such incentives may be established
as selection criteria in the NOFA. Excluding Applications under the
disaster relief and persons with disabilities set asides, Threshold
Match shall be required based on the tiers described in paragraphs
(1) and (2) of this subsection:
(1) No Threshold Match is required when:
(A) the Service Area includes the entire unincorporated
area of a county and where the population of Administrator's Service
Area is less than or equal to 20,000 persons; or
(B) the Service Area does not include the entire unincorporated
area of a county, and the population of the Administrator's Service
Area is less than or equal to 3,000 persons.
(2) One percent of Direct Activity Costs, exclusive
of Match, is required as Match for every 1,000 in population up to
a maximum of 15 percent.
(b) Cash Reserve Threshold Requirement. When HOME funds
will be utilized for construction activities, documentation, as described
in paragraphs (1) and (2) of this subsection, must be submitted at
the time of Application that demonstrates that the Applicant has at
least $40,000 in cash reserves. The cash reserves may be utilized
to facilitate administration of the program, and to ensure the capacity
to cover costs prior to reimbursement or costs determined to be ineligible
for reimbursement. The amount of the cash reserve commitment must
be included in the Applicant's resolution. To meet this requirement,
Applicants must submit:
(1) financial statements indicating adequate local
unrestricted cash or cash equivalents to utilize as cash reserves
and a letter from the Applicant's bank(s) or financial institution(s)
indicating that current account balances are sufficient; or
(2) evidence of an available line of credit or equivalent
in an amount equal to or exceeding the requirement in this subsection.
(c) Other Threshold and/or Selection criteria for this
Activity may be outlined in the NOFA.
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