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<chapter num="02" heading="Main Street Improvement Program" title_num="05" subtitle_num="13">
  <regulation prefix="Regulation" num=".01" heading="General.">
    <text>This chapter describes the policies and procedures for:</text>
    <paragraph num="A.">
      <text>Making Main Street Improvement Program grants to local jurisdictions and nonprofits to promote the development and revitalization of business districts in local jurisdictions; and</text>
    </paragraph>
    <paragraph num="B.">
      <text>Designating Maple Street communities that will benefit from Main Street Improvement Program grants to help promote revitalization of residential areas adjacent to designated Main Streets.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Definitions.">
    <paragraph num="A.">
      <text>In this chapter, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Approved nonprofit organization” means a nonprofit organization that has been designated by a local jurisdiction to apply for Program funding on behalf of that local jurisdiction.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Business district” means a geographically specified area, located within a sustainable community of a local jurisdiction, in which the predominant activity carried on is the operation of trades and businesses.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>“County” means any of the 23 counties of this State, and the Mayor and City Council of Baltimore.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>“Department” means the Department of Housing and Community Development.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>“Designated jurisdiction” means a local jurisdiction that is, or that contains, an officially approved and recognized Main Street Maryland community.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Repealed.</text>
      </paragraph>
      <paragraph num="(7)">
        <text>“Director” means the Director of the Division.</text>
      </paragraph>
      <paragraph num="(8)">
        <text>“Division” means the Division of Neighborhood Revitalization.</text>
      </paragraph>
      <paragraph num="(9)">
        <text>“Local jurisdiction” means a county or municipality.</text>
      </paragraph>
      <paragraph num="(10)">
        <text>“Main Street Maryland community” means a commercial area in a local jurisdiction designated by the Secretary as a Main Street Maryland community under the Main Street Maryland Program.</text>
      </paragraph>
      <paragraph num="(11)">
        <text>“Main Street Maryland Program” means the program for local jurisdictions operated by the Department since 1998.</text>
      </paragraph>
      <paragraph num="(12)">
        <text>“Maple Street community” means an area designated by the Secretary under Regulation .08 of this chapter.</text>
      </paragraph>
      <paragraph num="(13)">
        <text>“Nonprofit organization” means a corporation, foundation, or other entity that specifies in its charter or bylaws that no part of the net earnings may inure to the benefit of any private shareholder or individual holding any interest in that entity.</text>
      </paragraph>
      <paragraph num="(14)">
        <text>“Program” means the Main Street Improvement Program.</text>
      </paragraph>
      <paragraph num="(15)">
        <text>“Secretary” means the Secretary of Housing and Community Development.</text>
      </paragraph>
      <paragraph num="(16)">
        <text>“Sustainable community” means the part of a priority funding area that:</text>
        <paragraph num="(a)">
          <text>Has been designated as a sustainable community in accordance with COMAR 05.17.02;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Has been designated as a BRAC Revitalization and Incentive Zone under Economic Development Article, Title 5, Subtitle 13, Annotated Code of Maryland; or</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Has been designated as a transit-oriented development under Transportation Article, §7-101, Annotated Code of Maryland.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Eligible Grantees.">
    <paragraph num="A.">
      <text>Local jurisdictions and approved nonprofit organizations are eligible to receive grants under the Program.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Applicants shall meet the following minimum requirements to qualify for a Program grant:</text>
      <paragraph num="(1)">
        <text>Have the legal capacity to enter into a grant agreement;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Satisfy all legal requirements to operate in the State;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Not have defaulted on any prior assistance from the Department; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Not be currently barred or suspended from any of the Department's programs.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Priority for Main Street Improvement Program grants shall be given to existing designated Main Street Maryland communities and existing designated Maple Street communities. If Program funds remain unobligated at the end of the 6th month of a fiscal year, priority thereafter shall be given also to local jurisdictions or nonprofit organizations, or both, that are operating downtown revitalization projects in business districts with a significant number of historic commercial buildings.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Eligible Uses of Funds.">
    <paragraph num="A.">
      <text>Grant funds may be used to pay for costs associated with projects which support the development or revitalization of business districts, including:</text>
      <paragraph num="(1)">
        <text>Gateway, directional, or highway signage associated with a business district;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Acquisition, development, or improvement of property associated with projects which will assist the development or revitalization of a business district;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Facade improvement programs;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Public improvements to business districts, such as:</text>
        <paragraph num="(a)">
          <text>Sidewalk repair and replacement;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Thoroughfare and public lighting;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Street furniture;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Landscaping;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Trash cans; and</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Banners;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>Engineering and architectural design studies for:</text>
        <paragraph num="(a)">
          <text>Key properties;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Parking; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Market and business recruitment strategies which will improve a business district;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(6)">
        <text>Demolition of vacant and abandoned buildings;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Promotional materials, such as:</text>
        <paragraph num="(a)">
          <text>Advertising campaigns;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Brochures;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Banners; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Shopping bags;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(8)">
        <text>Other projects that have been identified in the applicant's work plans as key to its Main Street efforts; and</text>
      </paragraph>
      <paragraph num="(9)">
        <text>Operating assistance for Main Street Maryland managing organizations.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Grant funds may be used to pay for costs associated with projects that support the development or revitalization of residential areas in Maple Street communities, including:</text>
      <paragraph num="(1)">
        <text>Operating assistance for Maple Street managing organizations;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Developing and implementing a mixed-income strategy for acquisition and rehabilitation of residential properties;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Developing and implementing strategies for improving the physical appearance of the neighborhood;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Attracting development to reuse vacant or underutilized properties for mixed-use and mixed-income purposes;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Increasing community safety;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Improving streetscapes;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Increasing the number of parks and open spaces;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Improving existing parks and open spaces;</text>
      </paragraph>
      <paragraph num="(9)">
        <text>Improving public infrastructure that serves Maple Street communities; and</text>
      </paragraph>
      <paragraph num="(10)">
        <text>Other projects that have been identified in the applicant's work plans as key to its Maple Street community efforts.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>A project shall be located within a priority funding area identified under State Finance and Procurement Article, §5-7B-02, Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Grant Allocation System and Award Cycle.">
    <paragraph num="A.">
      <text>Grant Allocation.</text>
      <paragraph num="(1)">
        <text>Grant funds shall be allocated in accordance with the criteria set forth in Regulation .07B of this chapter. Grant awards to eligible applicants shall take into consideration the need to fund a variety of projects, and to serve as many geographic areas of the State as possible.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Department may refuse to consider applications with incomplete information.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The Department may make grant awards to particular projects and decline to make awards to otherwise eligible projects, based on the Department's assessment of the project's overall merit and its merit relative to competing applicants.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The Department may fund projects at levels less than requested based on the:</text>
        <paragraph num="(a)">
          <text>Number of applications;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Merit of each project; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Amount of funding available.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Application Solicitation.</text>
      <paragraph num="(1)">
        <text>The Department shall solicit applications for grants under the Program, subject to the availability of Program funds.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>At the beginning of each fiscal year in which Program funds are available, the Department shall issue announcements of the availability of funds under the Program to active Main Street Maryland communities.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>If any Program funds remain unobligated at the end of the 6th month of a fiscal year, the Department shall issue announcements of the availability of any remaining funds under the Program to:</text>
        <paragraph num="(a)">
          <text>Active Main Street Maryland communities; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Local jurisdictions or nonprofit organizations, or both, which are operating downtown revitalization projects in business districts with a significant number of historic commercial buildings.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>The announcements in §B(2) and (3) of this regulation shall consist of a description of the application process, total anticipated funding available for eligible grantees, and activities eligible for funding.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Grant Awards.</text>
      <paragraph num="(1)">
        <text>A single local jurisdiction may not be awarded more than 25 percent of the total Program funds for a fiscal year unless, at the end of the 8th month of a fiscal year, all of the Program funds have not been committed.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Local jurisdictions may not receive more than two grants in a fiscal year.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The maximum amount of any one grant may not exceed the amount indicated in §C(1) of this regulation.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Grant Terms and Conditions.">
    <paragraph num="A.">
      <text>Local Contributions.</text>
      <paragraph num="(1)">
        <text>A local contribution of cash from or on behalf of the local jurisdiction is required.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The local contribution shall equal or exceed the grant amount.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The local contribution may be derived from private funds or public funds other than State funds.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The local contribution shall be used in the project funded by a grant under the Program.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The period of a grant may not exceed 12 months, unless the Director agrees in writing to an additional grant period. Extensions may be granted in the Director's discretion only for one period of not more than 3 months.</text>
    </paragraph>
    <paragraph num="C.">
      <text>With the approval of the Department, a local jurisdiction may distribute all or a portion of a grant to a property owner or business in a business district, or other nonpublic entities which will be involved in a project. The local jurisdiction, however, shall remain responsible for the proper utilization, distribution, and administration of grant funds.</text>
    </paragraph>
    <paragraph num="D.">
      <text>The Department may establish any other reasonable and necessary terms and conditions in an agreement evidencing the grant.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Applications and Processing.">
    <paragraph num="A.">
      <text>Applications shall be made upon standard forms prescribed by the Department. Each application shall include sufficient information and documentation to determine the:</text>
      <paragraph num="(1)">
        <text>Type of project;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Cost of a project;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Support for a project by a local jurisdiction, the property owners and businesses in a business district, and the community surrounding a business district; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Type and amount of the local contribution required under Regulation .06A of this chapter.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The Department shall undertake a review of each application. The Department shall take the following factors into consideration in reviewing applications:</text>
      <paragraph num="(1)">
        <text>Cost of a project;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Relationship of a project to existing revitalization programs and plans in the local jurisdiction;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Support of a local jurisdiction for a project;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Support of the business district and the community surrounding a business district for a project;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Time frame for completion of a project;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Benefit of a project to the business district and the surrounding community; and</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Other factors which the Department considers relevant.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The Director shall recommend grants to the Secretary for approval.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Upon the Secretary's approval of a grant, the Director is authorized to issue an award letter to the successful applicant setting forth the amount of the grant.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The Department shall enter into a grant agreement with each successful applicant.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Designation of a Maple Street Community.">
    <paragraph num="A.">
      <text>A community must be located within a priority funding area identified under State Finance and Procurement Article, §5-7B-02, Annotated Code of Maryland, to be eligible for a Maple Street community designation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An application submitted to the Department for designation as a Maple Street community shall:</text>
      <paragraph num="(1)">
        <text>Be on a form approved by the Department, which may be in electronic or paper form;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Be submitted by a date to be determined by the Department; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Contain the information and supporting documentation required by the Department.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>In evaluating applications for a Maple Street community designation, the Department will take into consideration the following factors:</text>
      <paragraph num="(1)">
        <text>Demonstration that the residential revitalization strategy will build upon and reinforce the progress of the Main Street Maryland revitalization strategy;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The relationship of the proposed Maple Street community boundary to the existing Main Street community;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>An adequate local budget of at least 3 years and evidence of continuous funding commitment from public and private organizations;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Strength of the commitment from local government and private sector organizations to provide sustained support for a local Maple Street community program;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Organizational and financial capacity of the applicant;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Experience of the applicant to implement a residential revitalization strategy and the value of that strategy on the community;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Population and housing stock of the community;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Historic architectural resources of the community and evidence of a local historic preservation ethic and commitment to historic preservation;</text>
      </paragraph>
      <paragraph num="(9)">
        <text>Willingness of sponsors to develop and implement a mixed-income housing strategy as evidenced by the strategies and goals outlined in the Maple Street framework provided in the application; and</text>
      </paragraph>
      <paragraph num="(10)">
        <text>Presence of revitalization designations.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Application Review.</text>
      <paragraph num="(1)">
        <text>Applications will be reviewed by a selection committee approved by the Department for consistency with selection criteria.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The selection committee will forward recommendations to the Secretary.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The Secretary may approve, reject, or accept with modifications the selection committee's recommendations.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Program Administration.">
    <paragraph num="A.">
      <text>Except as otherwise set forth in this chapter, the Department designates the Division to administer all aspects of the Program, and to be a party to each agreement executed in connection with a grant.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Except as otherwise set forth in this chapter, the Department designates the Division to administer all aspects of the Maple Street Program, and to be a party to each agreement executed in connection with a grant.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Other action or decision required or permitted to be taken by the Department under this chapter may be taken by the Director, or the designees of the Director.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".10" heading="Books and Accounts.">
    <text>Local jurisdictions shall maintain such books, accounts, and records and shall file with the Department such financial and other reports as the Department may require. All of these books, accounts, and records shall be open to the inspection of the Department or other agencies of the State during reasonable working hours.</text>
  </regulation>
  <regulation prefix="Regulation" num=".11" heading="Nondiscrimination; Drug and Alcohol Free Workplace.">
    <paragraph num="A.">
      <text>Local jurisdictions and approved nonprofit organizations may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, or age, except with regard to age as permitted under the federal Housing for Older Persons Act, as amended from time to time, or other similar federal laws, in any aspect of the Program, or in any aspect of employment by any local jurisdiction and approved nonprofit organization in connection with any project financed or assisted under the Program.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Each local jurisdiction and approved nonprofit organization shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination and equal opportunity in employment, housing, credit practices, and drug and alcohol free workplaces, including:</text>
      <paragraph num="(1)">
        <text>Titles VI and VII of the Civil Rights Act of 1964, as amended;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Title VIII of the Civil Rights Act of 1968, as amended;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The Americans with Disabilities Act of 1990, as amended;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The Fair Housing Amendments Act of 1988, as amended;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>The Department’s Minority Business Enterprise Program, as amended;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>The Governor’s Executive Order 01.01.1989.18, Drug and Alcohol Free Workplace, and any Department or State regulations adopted or to be adopted to carry out the requirements of that Order; and</text>
      </paragraph>
      <paragraph num="(7)">
        <text>State Government Article, Title 20, Annotated Code of Maryland, as amended.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Department and other parties.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".12" heading="Waiver.">
    <text>The Secretary may waive or vary the provisions of this chapter to the extent that the waiver or variance is consistent with the legal authorizations for the Program, if, in the written determination of the Secretary, the application of a regulation in a specific case, or in an emergency situation, would be inequitable or contrary to the purposes of the Program.</text>
  </regulation>
  <regulation prefix="Regulation" num=".13" heading="False Statements.">
    <text>A person may not knowingly make or cause to be made any false statement or report in a document required to be furnished to the Department by any agreement relating to the Program.</text>
  </regulation>
  <annotations>
    <annotation type="Authority">Housing and Community Development Article, §6-102, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: April 16, 1990 (17:7 Md. R. 847)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02B amended effective February 28, 1994 (21:4 Md. R. 273)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05C amended effective February 1, 1993 (20:2 Md. R. 112); February 28, 1994 (21:4 Md. R. 273)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .08 amended effective February 28, 1994 (21:4 Md. R. 273)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .08C and D amended effective February 1, 1993 (20:2 Md. R. 112)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .08-1 adopted effective February 28, 1994 (21:4 Md. R. 273)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .11B amended effective February 1, 1993 (20:2 Md. R. 112)</annotation>
    <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 05.07.06 to COMAR 05.13.02 effective September 6, 1999 (26:18 Md. R. 1373)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02B amended effective September 6, 1999 (26:18 Md. R. 1373)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .08 amended effective September 6, 1999 (26:18 Md. R. 1373)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .09 amended effective September 6, 1999 (26:18 Md. R. 1373)</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.13, Main Street Improvement Grant Program, repealed effective October 15, 2001 (28:20 Md. R. 1779)</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.12, Main Street Improvement Program, adopted effective October 15, 2001 (28:20 Md. R. 1779)</annotation>
    <annotation type="History" subtype="Administrative History">Chapter revised effective October 20, 2008 (35:21 Md. R. 1823)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02B amended effective January 20, 2014 (41:1 Md. R. 12)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .11 amended effective March 16, 2015 (42:5 Md. R. 485)</annotation>
  </annotations>
</chapter>