1. (a) Applications for Demonstration Projects must show that:

   1. (1) the proposed project meets a national objective in accordance with 24 CFR 570.483; and

   2. (2) the proposed project meets the specific purpose and priorities adopted by the General Assembly.

      Applicants that do not meet these eligibility requirements shall not be considered for funding.

2. (b) Applicants shall have the capacity to administer a CDBG program. The Division may examine the following areas to determine capacity:

   1. (1) audit and monitoring findings on previously funded Community Development Block Grant programs, and the applicant's fiscal accountability as demonstrated in other state and federal programs or local government financial reports; and

   2. (2) the rate of expenditure of funds and accomplishments in previously funded CDBG programs.

      Applicants that show a lack of capacity shall not be considered for funding.

History Note: Authority G.S. 143-323; 143B-10; 42 U.S.C.A. 5301; 24 C.F.R. 570.489;
Eff. August 1, 1998;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. March 6, 2018.