CHAPTER 162-L
COMMUNITY DEVELOPMENT FINANCE AUTHORITY
162-L:1 Definitions
162-L:2 Community Development Finance Authority.
162-L:3 Board of Directors; Organization.
162-L:4 Powers and Duties of the Authority.
162-L:5 Technical Assistance; Grants.
162-L:6 Reporting Requirements.
162-L:7 Liberal Construction.
162-L:8 Investment Tax Credit.
162-L:9 Community Development Finance Authority
Chapter 338 HB-1397-A-FN-Local-Final Version
162-L:11 Definitions
162-L:12 Program Goals
162-L:13 Eligible Activities
162-L:14 Grant of Powers to Municipalities
162-L:15 The New Hampshire Community Development Advisory Committee
162-L:16 Powers and Duties of the Authority
162-L:17 Procedures for Administration
162-L:18 Remedies for Noncompliance
162-L:19 Status of State Employees
HISTORY
Repeal and reenactment of chapter. 1991, 334:3, eff. June 28, 1991, provided for the repeal and reenactment of RSA 162-L. Original RSA 162-L, consisting of RSA 162-L:1- 162-L:10, was derived from 1983, 326:3.
Legislative findings of fact and declaration of policy. 1983, 362:2, as amended by 1991, 334:2, eff. June 28, 1991, provided:
I. The legislature finds that areas of unemployment and inadequate housing exist in the state and that each area is inimical to the safety, health and welfare of the residents of the area and of the state. In addition, such areas of underemployment and inadequate housing decrease the value of private investment and threaten the sources of public revenue. Because of the economic and social interdependence of communities, the economic and industrial development of all municipalities of the state is substantially impaired. The development or redevelopment of these areas of underemployment and inadequate housing requires the stimulation of private investment in these areas.
II. Industries located in the state have been induced to move or cease their operations with a resulting loss of primary employment and increased unemployment. Economic insecurity due to loss of primary employment is a serious menace to the general welfare of not only the people of the affected areas but of the people of the entire state. Unemployment results in obligations to grant public assistance and in the payment of unemployment compensation. The absence of primary employment opportunities has caused workers and their families to migrate elsewhere to find work and establish homes. This has resulted in a reduction of the tax base of municipalities and the consequent impairment of their financial ability to support education and other local government services.
III. The economic problems within these areas are beyond remedy and control solely by regulatory process and the exercise of police power. These problems cannot be dealt with effectively by the ordinary operations of private enterprise without the aids provided in this act. Increasing the number of development projects in areas where primary employment is threatened and housing is inadequate, and providing capital to business ventures within these areas, and stimulating private investment in these areas are public uses and purposes for which public money may be expended and invested.
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CROSS REFERENCES
Allocation of federal community development block grants, see RSA 4-C:11 et seq.
162-L:1 Definitions. In this chapter, the following terms shall have the following meanings, unless the context indicates another meaning or intent:
I. "Authority" means the community development finance authority established by RSA 162-L:2.
II. "Community development corporation" means a nonprofit corporation, organized under the laws of the state to carry out certain public purposes and with bylaws providing that:
(a) The corporation shall be organized to operate within specific geographic boundaries.
(b) Membership in the corporation shall be open to all residents of the target area who are 18 years of age or older; membership may be open to persons outside the target area, but voting membership of persons not residing in the target area shall be limited to 10 percent of the total membership.
(c) The corporation shall have a board of directors, a majority of whom reside in a target area or are members of a target population, 2/3 of whom are elected by the membership, with each member having an equal vote.
(d) The corporation shall make a demonstrable effort to hire low income or underemployed residents of the operating area.
(e) The corporation shall impose an annual individual membership fee of not less than $1 nor more than $10.
III. "Other nonprofit organizations and municipal governments involved in community development" means a nonprofit organization organized under the laws of the state or municipal government to carry out purposes related to community development, improvement, revitalization, or other activities consistent with the purposes of this chapter.
IV. "Cost of a project" means any and all costs associated with the design, planning, and implementation of a project undertaken in a target area or with a target population which can reasonably be recovered in the financing of the project. Such costs may include, but are not limited to, the costs of planning and design, options to buy land, feasibility or other studies, seed money, construction, working capital, and any other costs determined by the authority to be necessary for the purposes of this chapter.
V. "Employee cooperative" means a corporation in which the power to elect at least 2/3 of the corporation's directors is held by the employees and in which such elections are held on a one person-one vote basis.
VI. "Other type of cooperative" means any corporation in which the power to elect the governing body is held by the members of the corporation and in which elections are held on a one person-one vote basis. This may include cooperatives such as housing cooperatives and consumer cooperatives.
VII. "Low income" means an income equal to or less than 125 percent of the federal poverty guidelines, as established by the Bureau of Labor Statistics lower level budget.
VIII. "Primary employment" means work which pays at least 1_ times the minimum wage as established under RSA 279:21 or under federal law, whichever is greater, which offers adequate fringe benefits, including health insurance, and which is not seasonal or part-time.
IX. "Project" means any commercial, industrial, or real estate business or other economic activity designed to create or preserve primary employment for low income people or to reduce conditions of blight, economic depression, or widespread reliance on public assistance in a target area or of a target population.
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HISTORY
Source. 1991, 334:3, eff. June 28, 1991.
162-L:2 Community Development Finance Authority.
I. There is hereby established the Community Development Finance Authority, a body corporate and politic. The Authority is constituted a public instrumentality of the state. The exercise by the authority of the powers conferred by this chapter shall be deemed and held to be the performance of essential governmental functions. The authority shall be a nonprofit corporation organized under RSA 292.
II. The Authority shall be governed by a board of 11 directors which shall include the commissioner of the department of resources and economic development or designee, and 10 public members appointed by the governor and council as follows:
(a) Four representatives of community development corporations or other nonprofit organizations engaged in community development activities.
(b) One representative of organized labor.
(c) Two representatives of small business and the financial community.
(d) One representative of employment training programs.
(e) Two representatives of private financial institutions.
III. The 10 appointed members of the board of directors shall serve for 5 year terms. If a vacancy occurs on the board of directors, the governor and council shall appoint a person to serve the remainder of the term. A member of the board of directors may be reappointed.
IV. The members of the board of directors shall receive no compensation for their services but shall be reimbursed for actual and necessary expenses, including travel expenses, incurred in performing their duties.
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HISTORY
Source. 1991, 334:3, eff. June 28, 1991.
162-L:3 Board of Directors; Organization
I. Upon appointment of the members of the board of directors and annually thereafter, the members shall elect, from among the members, a chairman and a vice-chairman and shall designate a secretary-treasurer who need not be a member of the board.
II. The secretary-treasurer shall keep a record of the proceedings of the Authority and the board of directors and shall be the custodian of all books, documents, and papers filed with the Authority, the minute books of the Authority, and its official seal.
III. A majority of the directors shall constitute a quorum, but no power of the Authority shall be exercised without a majority vote of the full board of directors. The Authority shall employ an executive director; legal, financial, and technical experts; and other persons as it may require. The Authority shall determine the qualifications, duties, and compensation of its employees.
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HISTORY
Source. 1991, 334:3, eff. June 28,1991.
162-L:4 Powers and Duties of the Authority.
I. The authority shall have all the powers necessary and convenient to carry out and effectuate the purposes and provisions of this chapter and may:
(a) Adopt bylaws and rules for the regulation of its affairs and the conduct of its business.
(b) Adopt an official seal.
(c) Sue and be sued in its own name.
(d) Maintain an office.
(e) Accept from any source loans, contributions, or grants to aid the authority in the conduct of its affairs.
(f) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions.
(g) Acquire real property or an interest in real property, by purchase or foreclosure, when such acquisition is necessary or appropriate to protect or secure any investment in which the authority has an interest; to sell, transfer, and convey any such property to a buyer and, in the event such sale, transfer, or conveyance cannot be effected with reasonable promptness or at a reasonable price, to lease such property to a tenant.
(h) Issue grants to finance operating or other costs of community development corporations and employee cooperatives under RSA 162-L:5.
(i) Provide technical assistance to community development corporations, other nonprofit organizations involved in community development activities, and employee and other types of cooperatives.
(j) Invest in or lend to any community development corporation, other nonprofit organizations involved in community development, or employee or other type of cooperative for a specific project if the authority finds that the project meets the following conditions:
(1) The project shall be within the scope of this chapter and may reasonably be expected to contribute to the development or redevelopment and economic well-being of target areas or target populations, to contribute to the economic development of the state, or to increase or maintain threatened primary employment or to provide affordable housing opportunities to low and moderate income people. Strong preference is given to housing projects which provide for the permanent affordability of the housing units through such legal mechanisms as deed restrictions, equity limitation formulas, or land leases.
(2) The project shall conform to all applicable environmental, zoning, building, planning or sanitation laws.
(3) The project shall be of public benefit and for a public purpose. The benefits, including increased or maintained primary employment and improved standard of living, shall primarily accrue to a target area or target population.
(4) There shall be a reasonable expectation that the project will be successful.
(5) Private industry shall have not provided sufficient capital required for the project or sufficient primary employment opportunities in the project's area.
(6) The Authority shall determine that its participation is necessary to the successful completion of the proposed project because adequate funding for the project is unavailable in the traditional capital markets or because credit has been offered on terms that would preclude the success of the project.
(7) The proceeds of the purchase or contract shall be used solely in connection with the costs of the project.
(8) Provision shall have been made by contract for adequate reporting of financial data from the community development corporation, other nonprofit organizations involved in community development, or employee or other cooperatives to the authority. Such provisions may include a requirement for an annual or other periodic audit of the project books.
(9) Provision has been made that should the Authority desire to sell or otherwise dispose of the capital participation instrument obtained by contract, the community development corporation, other nonprofit organizations involved in community development, or employee or other types of cooperatives, or its nominee, shall have for 120 days the right of first refusal upon the sale or disposal and the right to meet any subsequent bona fide offer by a third party.
(10) The project shall not result in a substantial increase in unemployment in the area of original location of any business or establishment relocated as part of the project.
(k) Exercise any other powers, rights or responsibilities necessary to effectuate the purposes of this chapter.
II. The findings of the Community Development Finance Authority Company under this section shall be conclusive and may not be appealed.
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HISTORY
Source. 1991, 334:3, eff. June 28, 1991.
162-L:5 Technical Assistance; Grants.
I. The Authority shall provide technical assistance to community development corporations, other nonprofit organizations involved in community development, and employee and other types of cooperatives and to persons forming such organizations. Technical assistance includes, but is not limited to, assistance with respect to organizational development, economic development planning, community education, financial planning or packaging, the development of grant or other applications, market research, business plan development or review, management training, and such accounting and legal services as may be necessary to enhance or render effective any of the foregoing. Such assistance may be provided by the Authority directly by staff or other agents of the Authority or through contract with a third party.
II. The Authority may award grants to community development corporations, other nonprofit organizations involved in community development activities, and employee and other types of cooperatives to fund their operating costs or other costs of projects including, but not limited to, costs incurred for planning, feasibility or other studies, consultants, technical assistance, or educational or publicity programs. The Authority shall award the grants to further the purposes of this chapter. The Authority shall review applications for grants based upon need, effectiveness in encouraging the development of community development corporations, other nonprofit organizations involved in community development activities, and employee or other types of cooperatives, effectiveness in assisting in the attainment of capital for the development of the operating area of the organization or cooperative, and the extent to which the grant will encourage the exchange of information among community development organizations and cooperatives.
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HISTORY
Source. 1991, 334:3, eff. June 28, 1991.
162-L:6 Reporting Requirements. On or before September 1 of each year, the Authority shall submit an annual report of its activities for the preceding fiscal year to the governor, the president of the senate, the speaker of the house of representatives and the state treasurer. The report shall set forth a complete operating and financial statement of the Authority during such year. The Authority shall cause an audit by an independent certified public accountant of its books and accounts to be made each fiscal year.
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HISTORY
Source. 1991, 334:3.1993, 350:21, eff. July 1, 1993.
Severability of 1993 amendment. 1993, 350 was subject to a severability clause. See 1993, 350:40.
Amendments-1993. Inserted "by an independent certified public accountant" following "audit" in the third sentence.
162-L:7 Liberal Construction. The provisions of this chapter shall be interpreted and construed liberally in aid of its declared purpose.
HISTORY
Source. 1991, 334:3. eff. June 28,1991.
162-L:8 Investment Tax Credit.
I. An investment tax credit equal to 75 percent of the contribution made to the Authority during the contributor's tax year shall be allowed against any of the following individually or in combination:
(a) Taxes imposed by RSA 77-A.
(b) Taxes imposed by RSA 84.
(c) Taxes imposed by RSA 400-A.
(d) Taxes imposed by RSA 77-E.
I-a. Credits provided by this section applied against the liabilities imposed by RSA 400-A and RSA 77-E shall be deemed to be taxes paid for the purpose of RSA 77-A:5, III and IX, respectively.
II. The credit or any unused portion thereof may be carried forward for no more than 5 succeeding tax years, but shall not exceed $200,000 in any given tax year.
III. The credit provided by this section shall apply to contributions made to the Authority on or before June 30, 1996.
IV. Estimated tax payments under RSA 400-A:32 due and payable after the date of contribution to the Authority may be reduced by the credit allowable under this section.
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HISTORY
Source. 1991, 334:3. 1992, 13:9. 1993, 350:22-24, eff. July 1, 1993.
References in Text. RSA 84, referred to in subpara. I(a), was repealed by 1993, 350:41, IV, eff. July 1, l993.
Amendments 1993. Paragraph I(d): Added.
Paragraph I-a: Deleted "RSA 84 and" preceding "RSA 400-A", inserted "and RSA 77-E" thereafter, deleted "II and" preceding "III" and inserted "and IX" thereafter.
Paragraph IV: Deleted "RSA 84:16-f and" Preceding "RSA 400-A:32".
-1992. Deleted "at the contributor's election" preceding "against", substituted "any" for "one" thereafter, and added "individually or in combination" at the end of the introductory paragraph of par. I, made a minor change in punctuation in par. II, and added pars. Ia, III and IV.
Prospective Repeal of Section - Generally. 1993, 350:41, V, provides for the repeal of this section effective on July 1, l994, pursuant to 1993, 350:43, III, which is set out as a note below.
-Effective Date and Application. 1993, 350:43, III. Eff. July 1, l993, provided: "Section 41, paragraphs II and V of this act (which repeal RSA 77-A:5, V, and this section, respectively) shall take effect July 1, l994, and shall apply to returns and taxes due on account of taxable periods ending on or after July 1, l994, except that any unused portion of such credit from contributions made pursuant to RSA 162-L:8 on or before June 30, l994, shall be allowed as a credit or carried forward in the manner and subject to the limitations of RSA 162-L:8, II, as such paragraph was effective on June 30, l994. In the case of any business enterprise which had elected a 52-53 week taxable period under section 441(f) of the United States Internal Revenue Code and the fiscal year of which ends on the last day of the week nearest to June 30, l994, the taxable period shall be deemed to have ended on June 30, l994, for the purposes of this act.
Severability of 1993 Amendment. 1993. 35 was subject to a severability clause. See 1993, 350:40.
[New Sections] 1994 AMENDMENT
162-L:9 Community Development Finance Authority
162-L:1 Definitions. In this chapter, the following terms shall have the following meanings, unless the context indicates another meaning or intent:
X. "Pledge" means a written agreement between the Community Development Finance Authority and a contributor for the contributor to provide cash contributions over a period of not less than one year or more than 5 years.
HISTORY
Source. 1991, 334:3. 1994, 336:1, eff. June 8, l994.
Amendments-1994. Paragraph X: Added.
162-L:6 Reporting Requirements. On or before September 1 of each year, the Authority shall submit an annual report of its activities for the preceding fiscal year to the governor, the president of the senate, the speaker of the house of representatives and the state treasurer. The report shall set forth a complete operating and financial statement of the Authority during each year. The report shall include outstanding amounts of pledges made and cash contributions received against pledges. The Authority shall cause an audit by an independent certified public accountant of its books and accounts to be made each fiscal year.
HISTORY
Source. 1991, 334:3. 1993, 350:21. 1994, 336:2, eff. June 8, 1994.
Amendments-1994. Added the third sentence.
[RSA 162-L:8 repealed by 1993, 350:41, V, eff. July 1, l994; see note set out below regarding the effective date and application of the repeal of this section.]
162-L:8 Investment Tax Credit.
I-a. Credits provided by this section applied against the liabilities imposed by RSA 400-A and RSA 77-E shall be deemed to be taxes paid for the purpose of RSA 77-A:5, III and X, respectively.
III.
(a) The credit provided by this section shall apply to contributions made or pledged to the Authority on or before June 30, l994. Such credit shall be available to contributors on or after contributions for which credit is to be taken are actually received by the Authority.
(b) All contributions must be received within 5 years after the pledge is made to be eligible for the credit.
(c) Contributions received by the Authority as a result of pledges made on or before June 30, l994, for which credit is to be taken shall not exceed $2,000,000 in any state fiscal year ending after June 30, l994. Pledged contributions received by the Authority in excess of $2,000,000 in any state fiscal year ending after June 30, l994, shall not be eligible for credit in such year but may be carried forward to the next succeeding fiscal year or years and shall be given priority in determining the total contributions eligible for credit in such year; provided that such excess pledged contributions shall not be carried forward after June 30, l999. The total amount of contributions received under this paragraph which shall be eligible for credit during the 5-year period shall not exceed $10,000,000.
[No change in paragraph IV.]
HISTORY
Source. 1991, 334:3. 1992, 13:9. 1993, 350:22-24. 1994, 336:3,4, eff. June 8, l994.
Amendments-1994. Paragraph I-a: Substituted "X" for "IX" following "RSA 77-A:5, III and"
Paragraph III: Amended generally.
Retroactive applicability of 1994 amendment. 1194, 336:6, I, eff. June 8, l994, provided that the amendment to par. I-a of this section by 1994, 336:3 shall apply retroactively to returns and taxes due on or after July 1, l993.
Prospective repeal of section-Effective date and application. 1993, 350:43, III, as set out in the main volume and amended by 1994, provided: "Section 41, paragraphs II and V of this act [which repeal RSA 77-A:5, V, and this section, respectively] shall take effect July 1, l994, and shall apply to returns and taxes due on account of taxable periods ending on or after July 1, 1994, except that any credit from contributions or pledges made pursuant to RSA 162-L:8 on or before June 30, l994, shall be allowed as a credit or carried forward in the manner and subject to limitations of RSA 162-L:8, as such section was effective on June 30, l994 [see par. III of this section]. In the case of any business enterprise which has elected a 52-53 week taxable period under section 441(f) of the United States Internal Revenue Code and the fiscal year of which ends on the last day of the week nearest to June 30, 1994, the taxable period shall be deemed to have ended on June 20, l994, for the purposes of this act."
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LIBRARY REFERENCES
New Hampshire Bar Journal
For article, "The Policy and Structure of the Business Enterprise Tax," see 34 N.H.B.J.5 (1993).
162-L:9 Community Development Finance Authority.
I. Notwithstanding the provisions of RSA 162-L:8, III(b) and (c), contributions received by the Community Development Finance Authority pursuant to RSA 162-L:8, III as a result of pledges made on or before June 30, l994, shall only be eligible for the credit allowed in RSA 162-L:8 as authorized in this section.
II. All contributions must be received within 8 years after the pledge is made to be eligible for the credit.
III. Contributions received by the Authority as a result of pledges made on or before June 30, l994, for which credit is to be taken shall not exceed $2,000,000 in the state fiscal year ending June 30, l995. Pledged contributions received by the Authority in excess of $2,000,000 in any state fiscal year ending on or after June 30, l995, shall not be eligible for credit in such year but may be carried forward to the next succeeding fiscal year or years and shall be given priority in determining the total contributions eligible for credit in such year; provided that such excess pledged contributions shall not be carried forward after June 30, 2002. The total amount of contributions received under this paragraph which shall be eligible for credit during the 8-year period shall not exceed the total amount of pledges due as of June 30, 1994, as reported in the Community Development Finance Authority's independent auditor's report on the schedule of pledges dated October 5, l994.
IV. No pledged contribution listed in the independent auditor's report that is unfulfilled shall be fulfilled by a contribution from a new contributor or by an additional contribution from a pledged contributor listed in said report. If any project or capacity grant identified in the independent auditor's report is suspended, cancelled, or otherwise not completed, the amount of any unexpended or unused contribution made in fulfillment of the pledge for such project or capacity grant shall not be transferred to the account of or expended for any other project or capacity grant whether identified in the report or otherwise. The unexpended or unused portion of such contributions shall be returned to the contributor as soon as practicable.
V. Contributors whose contribution has been returned to them shall within 6 months of receipt of such returned contribution file an amended tax return for any tax for the tax period in which the credit was taken with respect to such contribution and shall pay with such return the amount of any taxes not paid as a result of the taking of such credit. Contributors whose contribution has been returned to them and whose taxable business profits under RSA 77-A were reduced by reason of the reduction from their federal taxable income of such contribution shall file an amended business profits tax return for the tax period in which such reduction of their taxable business profits occurred and shall include the amount of the returned contribution as additional taxable business profits to the extent of the tax benefit from such reduction and shall pay any additional tax due. Interest as prescribed by RSA 21-J:28 shall be computed and paid on any tax due under this section from the original due date of the tax.
VI. The provisions of RSA 21-J:29, I(a) shall not apply to any assessment for tax, penalty or interest made with respect to paragraph V of this section.
VII. Any contribution not expended or used for the project or capacity grant for which it is identified and which is not returned to the contributor shall be transferred to the state treasurer for the use of the state. Such transfer shall be made within 6 months of the date upon which such project or capacity grant is suspended, cancelled or the date upon which it is determined it will not be completed.
Source. 1995, 172:1, eff. July 1, l995.
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CHAPTER 338
HB-1397-A-FN-LOCAL-FINAL VERSION
338:1 New Paragraph; Investment Tax Credit. Amend RSA 77-A:5 by inserting after paragraph X the following new paragraph.
XI. The investment tax credit as computed in RSA 162-L:10.
338:2 Definitions; Pledge. Amend RSA 162-L:1 X. to read as follows:
338:X. "Pledge" means a written agreement between the community development finance authority and a contributor for the contributor to provide cash contributions [over a period of not less than one year or more than 5 years] in the future.
338:3 New Section; New Investment Tax Credit. Amend RSA 162-L by inserting after section 9 the following new section:
162-L:10 New Investment Tax Credit
I. An investment tax credit equal to 75 percent of the contribution made to the authority during the contributor's tax year shall be allowed against any of the following individually or in combination:
(a) Taxes imposed by RSA 77-A.
(b) Taxes imposed by RSA 400-A.
(c) Taxes imposed by RSA 77-E.
II. Credits provided by this section applied against the liabilities imposed by RSA 400-A and RSA 77-E shall be deemed to be taxes paid for the purpose of RSA 77-A:5, III and X, respectively.
III. The credit or any unused portion thereof may be carried forward for no more than 5 succeeding years, but shall not exceed $1,000,000 in any given tax year.
IV.
(a) The credit provided by this section shall be available to contributors on or after contributions for which credit is to be taken are actually received by the authority.
(b) Contributions received by the authority for which credit is to be taken shall not exceed $5,000,000 in any state fiscal year. Contributions received by the authority in excess of $5,000,000 in any state fiscal year shall not be eligible for credit in such fiscal year but may be carried forward to the next succeeding fiscal year or years and shall be given priority in determining the total contributions eligible for credit in such fiscal year.
V. Estimated tax payments under RSA 400-A:32 due and payable after the date of contribution to the authority may be reduced by the credit allowable under this section.
338:4 Repeal. RSA 162-L:9, relative to credits for contributions received, during the 8-year eligibility period, on pledges made on or before June 30, 1994, is repealed.
338:5 Effective Date. This act shall take effect July 1, 1999.
(Approved: June 26, 1998)
(Effective Date: July 1, 1999)
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COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
162-L:11 Definitions. –
In this subdivision:
I. "Authority' means the community development finance authority established by RSA 162-L:2.
II. "Chief executive officer' means the chief executive of the municipality, whether the official designation is mayor, city manager, chairman of the board of selectmen, or otherwise.
III. "Committee' means the community development advisory committee.
IV. "Entitlement municipality' means a municipality entitled to receive funds directly from the United States Department of Housing and Urban Development under Title I, section 106(b) of the federal act.
V. "Federal act' means Title I of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. section 5301 et seq.
VI. "Governing body' means, in the case of a city, the city council or the board of aldermen or, in the case of a town, the board of selectmen or the town council.
VII. "Grantee' means a municipality that receives a grant under the provisions of this subdivision.
VIII. "Municipality' means a city or a town. It also means a "non-entitlement area' as defined in Title I, section 102(a)(7) of the federal act.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:12 Program Goals. –
In allocating funds under the community development block grant program, the authority shall give priority to activities that:
I. Benefit low and moderate income households.
II. Aid in the prevention or elimination of slum or blight.
III. Aid in the prevention or elimination of conditions which pose a serious or immediate threat to the health and welfare of the community where no other financial resources exist to meet such needs.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:13 Eligible Activities. –
A wide range of community development activities shall be eligible for funding. These may include, but are not limited to:
I. The acquisition, rehabilitation, or expansion of housing.
II. The creation, expansion, or retention of employment through the stimulation of private investment and community revitalization.
III. The installation, rehabilitation, or replacement of public facilities.
IV. Activities that test the feasibility of innovative approaches to community development.
V. Activities that provide timely responses to unpredictable circumstances or special development opportunities.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:14 Grant of Powers to Municipalities. –
I. All municipalities not designated as entitlement municipalities under the federal act are authorized to apply with the authority for funds and are granted such additional authority and power, essential and incidental, as may be necessary for the administration of this program.
II. Prior to filing an application under this subdivision, a municipality shall:
(a) Through action by the governing body adopt or pass an official act or resolution authorizing the filing of the application and directing the chief executive officer or designee to act in connection with the application and to provide such information as may be required.
(b) Hold at least one public hearing to obtain the views of citizens on community development, to furnish the citizens with information concerning the amount of funds available and the range of community development activities that may be undertaken under this subdivision and to give affected citizens an opportunity to examine a proposed statement to the projected use of such funds to be applied for. A notice of the hearing shall specify the grounds for the hearing as well as the date, time, and place. This notice of the hearing shall be published in a newspaper of general circulation in the municipality, and a legal notice shall also be posted in at least 3 public places within such municipality at least 10 days prior to the hearing. The 10 days shall not include the day of publication or the day of posting, whichever is later, nor the day of the hearing, but shall include any Saturdays, Sundays, and legal holidays within the period. This hearing shall be held before the municipality's governing body takes any final action regarding the filing of the application.
III. The chief executive officer shall certify that the municipality will comply with the provisions of this subdivision and with other applicable federal and state laws and rules as may be determined by the authority and the federal government.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:15 The New Hampshire Community Development Advisory Committee. –
I. There is established the community development advisory committee which shall be provided staff and administrative assistance by the authority.
II. The committee shall consist of 10 voting members as follows:
(a) The chairperson of the board of directors of the community development finance authority, or designee, who shall serve as chairperson of the committee.
(b) The director of the office of state planning and energy programs, or designee.
(c) The executive director of the New Hampshire housing finance authority, or designee.
(d) The director of the division of economic development, department of resources and economic development, or designee.
(e) Six public members, at least 3 of whom shall be municipal officials, who shall be appointed by and serve at the pleasure of the governor.
III. The 6 public members shall be paid their actual expenses incurred in performing their duties under this subdivision and shall be paid mileage at the same rate as state employees.
IV. A majority of the members of the committee shall constitute a quorum.
V. No person who receives a significant portion of his or her income directly or indirectly from the community development activities governed by this subdivision shall be a member of the committee.
VI. The committee shall advise the authority in the development of rules for administering this subdivision and developing criteria for the allocation of funds provided under the federal act.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:16 Powers and Duties of the Authority. –
I. The authority shall be responsible for the former functions, duties, and responsibilities of the office of state planning relative to administration of the community development block grant program and shall, with the consent of the committee and with the approval of the governor:
(a) Adopt rules, pursuant to RSA 541-A, relative to:
(1) The application process.
(2) Criteria and procedures for evaluating applications submitted by eligible municipalities.
(3) Procedures for the administration of program activities and funds by grantees.
(4) Procedures for monitoring grantees and for hearings.
(b) Make final awards of grants and enter into contractual relationships with grantees for administering funds.
II. The authority shall provide advice and assistance to municipalities in dealing with community development concerns and problems.
III. The authority is authorized to accept federal funds to administer the small cities community development block grant program in accordance with the provisions of this subdivision.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:17 Procedures for Administration. –
I. All funds allocated to the state under the federal act, except for an amount not exceeding the maximum allowable under the federal act available to the state for administrative costs, shall be allocated to eligible municipalities.
II. All municipalities shall be eligible to apply for and receive funds under this subdivision except for entitlement municipalities.
III. The allocation system shall be competitive and shall provide the opportunity for any eligible municipality to compete for funding for community development projects.
IV. The authority shall solicit applications from eligible municipalities. Any eligible municipality desiring to receive funds under this subdivision shall complete and submit an application in accordance with the rules adopted under RSA 162-L:16.
V. The authority shall evaluate the relative merits of the applications based on the rules, criteria, and procedures adopted under RSA 162-L:16.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:18 Remedies for Noncompliance. –
I. If the authority finds, after reasonable notice and opportunity for hearing, that a grantee under this subdivision has failed to comply substantially with the provisions of this subdivision, the rules adopted under this subdivision, or applicable provisions of federal law, the authority may:
(a) Terminate payments to the grantee under this subdivision; or
(b) Limit the availability of payments under this subdivision under such conditions as the authority may establish.
II. In lieu of, or in addition to, any action authorized in paragraph I, the authority may refer the matter to the attorney general of the state of New Hampshire with a recommendation that an appropriate civil action be instituted.
Source. 2003, 319:13, eff. July 1, 2003.
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162-L:19 Status of State Employees. –
Classified employees of the office of state planning and energy programs responsible for administration of the community development block grant program shall be transferred to the community development finance authority. Any person employed in such a position at the time of the transfer shall be deemed an employee of the authority. Any individual transferred from the office of state planning and energy programs to the authority shall be entitled to continue to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are afforded to classified employees of the state. Such employees of the authority, however, shall not be classified employees of the state of New Hampshire within the meaning of RSA 21-I:49 but employees at will of the authority. The authority shall pay from its revenues the state share of such benefits. Any remaining costs of health, dental, life insurance, deferred compensation, and retirement benefits which an individual elects to receive pursuant to this section, shall be withheld from such individual's salary as a payroll deduction. Written notice of the availability of these benefit options shall be provided to each individual upon transfer to the authority.
Source. 2003, 319:13, eff. July 1, 2003.
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