New Mexico Register / Volume
XXXVI, Issue 14 / July 29, 2025
TITLE 2 PUBLIC FINANCE
CHAPTER 110 LOCAL
GOVERNMENT GRANTS
PART 2 SMALL
CITIES COMMUNITY DEVELOPMENT BLOCK GRANT
2.110.2.1 ISSUING
AGENCY: Department of Finance and Administration Infrastructure
Planning and Development Division, Suite 202 Bataan Memorial Building Santa Fe,
New Mexico 87501.
[2.110.2.1 NMAC - Rp, 2 110.2.1 NMAC, 7/29/2025]
2.110.2.2 SCOPE: All
counties and incorporated municipalities, except the cities of Albuquerque,
Farmington, Las Cruces, Santa Fe and Rio Rancho.
[2.110.2.2 NMAC -
Rp, 2 110.2.2 NMAC, 7/29/2025]
2.110.2.3 STATUTORY
AUTHORITY: Title 1 of the Housing and Community
Development Act of 1974, as amended.
[2.110.2.3 NMAC -
Rp, 2 110.2.3 NMAC, 7/29/2025]
2.110.2.4 DURATION:
Permanent.
[2.110.2.4 NMAC -
Rp, 2 110.2.4 NMAC, 7/29/2025]
2.110.2.5 EFFECTIVE
DATE: July 29, 2025, unless a later date is cited at
the end of a section.
[2.110.2.5 NMAC - Rp,
2 110.2.5 NMAC, NMAC, 7/29/2025]
2.110.2.6 OBJECTIVE: The
objective of Part 2 of Chapter 110 is to establish procedures to be used by
counties and incorporated municipalities when applying for a small cities community
development block grant.
[2.110.2.6 NMAC - Rp,
2 110.2.6 NMAC, 7/29/2025]
2.110.2.7 DEFINITIONS:
A. Definitions
beginning with “A”: “Asset management” means a systematic
process of maintaining, upgrading, and operating physical assets
cost-effectively. It combines
engineering principles with sound business practices and economic theory, and
it provides tools to facilitate a more organized, logical approach to decision
making. It is a planning process that
ensures the most value from each asset with a plan to rehabilitate and replace
them when necessary. An accurate and
up-to-date asset management plan will help communities comply with the government
accounting standards board's statement #34 (GASB 34), an accounting standard
for publicly owned systems.
B. Definitions beginning with “B”: [RESERVED]
C. Definitions beginning with “C”:
(1) “CDBG” means the small cities community
development block grant program.
(2) “Council”
means the New Mexico community development council.
(3) “Council of governments” means a
regional association of municipalities, counties and special districts formed
to provide planning and other services to its member organization.
D. Definitions beginning with “D”:
(1) “Department” means the department of finance and
administration.
(2) “Division” means the infrastructure planning
and development division.
E. Definitions beginning with “E”: [RESERVED]
F. Definitions beginning with “F”: “Federal rules” means code of federal regulations, housing
and urban development 24 CFR Part 570 which governs the CDBG program.
G. Definitions beginning with “G”: [RESERVED]
H. Definitions beginning with “H”: [RESERVED]
I. Definitions beginning with “I”: “ICIP” means an infrastructure capital improvement
plan. An ICIP is a planning document
developed by a unit of local government, water association, or land grant/merced that includes capital improvement priorities over a
five year period and is developed and updated annually. An ICIP includes policy direction, funding
time frames, estimated costs, justifications, and details of each specific
infrastructure capital improvement project proposed, by year, over the five year
period.
J. Definitions beginning with “J”: [RESERVED]
K. Definitions beginning with “K”: [RESERVED]
L. Definitions beginning with “L”:
(1) “Land grant/merced”
means a political subdivision of the state organized under Section 49-1-1
through 49-1-23 NMSA 1978, Land Grants General Provisions.
(2) “Low and moderate income person” means
a member of a household whose income would qualify as “very low income” under
the Section 8 housing assistance payments program. Section 8 limits are based on fifty percent of
the county median income. Similarly,
CDBG moderate income is based on Section 8 “lower income” limits, which are
generally tied to eighty percent of the county median low and moderate income.
M. Definitions beginning with “M”: [RESERVED]
N. Definitions beginning with “N”: “Non-rural” means a county or an incorporated
municipality that does not meet the definition of rural.
O. Definitions beginning with “O”: [RESERVED]
P. Definitions beginning with “P”: [RESERVED]
Q. Definitions beginning with “Q”: [RESERVED]
R. Definitions beginning with “R”: “Rural” means a county with a population of less
than 25,000 and an incorporated municipality with a population of less than
3,000. For purposes of determining
population a unit of local government, water association, or land grant/merced must use Attachment I at the end of 2.110.2 NMAC.
S. Definitions beginning with “S”:
(1) “SBA” means the United States small
business administration.
(2) “Set-aside”
means a portion of all CDBG funding received by the CDBG program that is
annually allocated by the council to be used only for certain set-aside
categories that are chosen by the council.
T. Definitions beginning with “T”: [RESERVED]
U. Definitions beginning with “U”: “Units of local government” means an incorporated municipality or
county.
V. Definitions beginning with “V”: [RESERVED]
W. Definitions beginning with “W”: “Water association” means political subdivisions of the state
organized under Section 3-29-1 through Section 3-29-20 NMSA 1978, the “Sanitary
Projects Act” or Section 73-21-1 through Section 73-21-55 NMSA 1978, the “Water
and Sanitation District Act”.
X. Definitions beginning with “X”: [RESERVED]
Y. Definitions beginning with “Y”: [RESERVED]
Z. Definitions beginning with “Z”: [RESERVED]
[2.110.2.7 NMAC - Rp,
2 110.2.7 NMAC, 7/29/2025]
2.110.2.8 ADMINISTRATION:
A. The
council is responsible for allocating grants under the CDBG program to assist
local communities with basic infrastructure and community development needs.
B. These
application regulations will govern the CDBG appropriation allocated to the
state from the United States department of housing and urban development.
C. As
part of their administrative responsibility, the council and the division will
continue to provide technical assistance to prospective applicants and
grantees. The nature of these programs
requires a thorough outreach effort to ensure that units of local government
are aware of program requirements.
D. The
council and the division assure local entities and citizens of the state of New
Mexico that public comment will be solicited should the council choose to make
any substantial changes to these application regulations.
[2.110.2.8 NMAC - Rp,
2 110.2.8 NMAC, 7/29/2025]
2.110.2.9 PROGRAM
OBJECTIVES:
A. The
CDBG program was established under Title I of the Housing and Community
Development Act of 1974, as amended, to assist communities in providing
essential community facilities, providing decent housing for residents,
promoting economic development, and maintaining a suitable living environment.
B. State
and national objectives of the CDBG program require that assistance be made
available for activities that address at least one of the following, which are
described in greater detail in 2.110.2.16 NMAC:
(1) benefit principally low and moderate
income families;
(2) aid in the prevention or elimination
of slums or blight;
(3) meet other community development needs
of recent origin having a particular urgency because existing conditions pose a
serious and immediate threat to the health and welfare of the community where
other financial resources are not available to meet such needs.
C. The
state encourages successful applicants to award a fair share of contracts and
subcontracts to small, minority, and women's businesses and to commit itself to
hire locally for any employment opportunities that will be created as a result of project funding.
[2.110.2.9 NMAC - Rp,
2 110.2.9 NMAC, 7/29/2025]
2.110.2.10 ELIGIBLE
APPLICANTS:
A. All
counties, incorporated municipalities, and New Mexico mortgage finance
authority (MFA) are eligible to apply except:
the city of Albuquerque, the city of Farmington, the city of Las Cruces,
the city of Santa Fe and the city of Rio Rancho which cannot apply since they
receive funding directly from the department of housing and urban development
(Title I, Section 106) as entitlement cities.
B. Other
entities such as water associations, sanitation districts, land grants, public
nonprofit groups, council of governments, mutual domestic water consumer
associations, etc., cannot apply directly for assistance, other than planning
grants.
C. However,
these entities may be involved in the execution of an approved CDBG project if
the eligible applicant chooses to operate the program through such an entity
under a contractual agreement.
D. Indian
pueblos and tribes receive funding directly from the department of housing and
urban development (Title I, Section 107). Native American tribes are encouraged to
submit applications to the Albuquerque HUD Office of Native American Programs,
201 3rd St., N.W., Suite 1830, Albuquerque, New Mexico 87102-3368, (505)
346-6923.
[2.110.2.10 NMAC -
Rp 2 110.2.10 NMAC, 7/29/2025]
2.110.2.11 ELIGIBLE
ACTIVITIES/CATEGORIES: Applicants may apply for funding assistance
under the following categories:
A. Community
infrastructure: Eligible activities
may include, but are not limited to:
(1) real
property acquisition;
(2) construction
or rehabilitation of the following:
(a) water
systems;
(b) sewer
systems;
(c) municipal
utilities;
(d) roads;
(e) streets;
(f) highways;
(g) curbs;
(h) gutters;
(i) sidewalks;
(j) storm
sewers;
(k) street
lighting;
(l) traffic
control devices;
(m) parking facilities;
(n) solid waste
disposal facilities.
B. Public facility capital outlay:
Eligible activities may include, but are not limited to:
(1) real
property acquisition;
(2) construction
or improvement of community centers;
(3) senior
citizen centers;
(4) non-residential
centers for the handicapped such as sheltered workshops;
(5) other
community facilities designed to provide health, social, recreational or
similar community services for residents.
C. Emergency: The emergency fund provides funding for
emergency projects that address life threatening situations resulting from
disasters or imminent threats to health and safety.
(1) Applications
under this category will be accepted throughout the year.
(2) Application
shall include verification of emergency from an authoritative state agency
documenting the need for the emergency project, and
shall be submitted no later than 18 months from the date of the authoritative
state agency’s written verification of emergency.
(3) An
applicant for emergency funding must verify that it does not have sufficient
local resources to address the life threatening condition; and that other
federal or state resources have been explored and are unavailable to alleviate
the emergency.
D. Planning: Municipalities, counties, water associations,
water and sanitation districts, and land grants are eligible to apply directly
for planning grants. Municipalities or
counties who have a comprehensive plan dated five years or greater from the
date of application submission are required to use CDBG planning grant funds
solely for the development of a comprehensive plan. A comprehensive plan must be focused on a
community’s physical development over the next 15-20 years related to the goals
and policies of the community, developed with input from all segments of the
community, adopted by resolution or ordinance, and include as a minimum the
following required elements and may include the following optional elements:
(1) required
elements:
(a) land use including:
(i) an analysis and mapping of existing
land patterns and an inventory of the amount, type and intensity of uses by
land category;
(ii) a
projection of the distribution, location and extent of future land uses by land
use category over a 20-year period;
(iii) goals,
objectives and policies that address maintaining a broad variety of land uses,
including the range of uses existing when the plan is adopted or amended; and
(iv) specific
actions and incentives that the entity may use to promote planned development,
reduction in greenhouse gas emissions, or otherwise encourage certain
identified development patterns and the locations where such development
patterns should be encouraged;
(b) housing including:
(i) an analysis of existing housing
supply and demand, and forecasted housing needs;
(ii) goals,
objectives and policies for the improvement of housing quality, variety and
affordability, for reduction of greenhouse gas emissions, and for provision of
adequate sites for housing and housing opportunities for all segments of the
community;
(iii) a
description of the actions that may be taken to implement housing goals,
objectives and policies; and
(iv) must
comply with the affordable housing act.
(c) transportation including:
(i) description and assessment of the
location, type, capacity and condition of existing transportation facilities,
such as freeways, arterial and collector streets, mass transit or other modes
of transportation as may be appropriate;
(ii) goals,
objectives and policies for encouraging safe, convenient, efficient and
economical transportation, including mass transit and facilities for bicyclists
and pedestrians, for reduction of greenhouse gas emissions, and potential
funding mechanisms; and
(iii) a
description and assessment of proposed location, type and capacity of proposed
transportation facilities designed to implement transportation goals,
objectives and policies and a description of funding mechanisms that will be
used to fund proposed transportation improvements;
(d) infrastructure including:
(i) a description and assessment of the
location, type, capacity and condition of existing infrastructure, including
emergency services, sewage, drainage, local utilities and other types of
facilities;
(ii) goals,
objectives and policies for promoting the efficient provision of infrastructure;
and
(iii) a
description and assessment of proposed facility expansion and improvements
designed to support planned uses and implement infrastructure goals, objectives
and policies;
(e) economic development including:
(i) a description of existing job
composition and trends by industry and location characteristics, such as access
to transportation or proximity to natural or human resources, that influence
the economic development potential of the entity;
(ii) goals,
objectives and policies for promoting economic development; and
(iii) a
description of the actions that the entity will take to implement economic
development goals, objectives and policies;
(f) water including:
(i) description and assessment of the
sources of water supply;
(ii) the
existing demand for water by residential, commercial, institutional, industrial
and recreational sectors;
(iii) assessment
of the unaccounted for water losses due to leaks, theft or other reasons;
(iv) goals,
objectives and policies for promoting the efficient use of water and for
managing periods of drought; and
(v) an
analysis of the demand for water that will result from future growth projected
in the plan, when added to existing uses, and how the demand for water that
will result from future projected growth will be served by current water
supplies, water conservation, water reuse or a plan to obtain additional water
supplies or increase water use efficiencies;
(g) hazard including:
(i) an analysis of the risks of hazards
such as wildfire, floods, extreme weather conditions, accidents, and terrorism;
(ii) goals,
objectives and policies for hazard mitigation; and
(iii) a
description of the actions that will be taken to mitigate hazards; and
(h) implementation; a compilation of the
plan’s goals, objectives, policies, standards or guidelines, along with
specific actions to be completed in a stated sequence, which start with
adoption of the comprehensive plan by ordinance;
(2) optional
elements:
(a) drainage;
(b) parks,
recreation and open space;
(c) tourism;
(d) growth
management;
(e) fiscal
impact analysis;
(f) intergovernmental
cooperation;
(g) social
services;
(h) historic
preservation;
(i) asset management plan.
(3) if
the entity has a comprehensive plan that is not more than five years old at the
date of application, it may apply for funding assistance for any of the
following planning activities:
(a) data
gathering analysis and special studies;
(b) base
mapping, aerial photography, geographic information systems, or global
positioning satellite studies;
(c) improvement
of infrastructure capital improvement plans and individual project plans;
(d) development
of codes and ordinances, that further refine the implementation of the
comprehensive plan;
(e) climate
change mitigation and adaptation plan;
(f) preliminary
engineering report (according to United States department of agriculture/rural utilities
service (USDA/RUS) guidelines);
(g) related
citizen participation or strategic planning process;
(h) other
functional or comprehensive planning activities;
(i) asset management plan; or
(j) regionalization
of infrastructure and service delivery.
(4) applicants
may apply for planning assistance throughout the year.
E. Colonias:
(1) The
Colonias category is established in the amount of ten percent of the annual
CDBG allocation for specific activities including water, sewer and housing
improvements, which are the three conditions that qualify communities for
designation to be carried out in areas along the U.S. - Mexican border.
(2) Eligible
applicants for the Colonias set aside are municipalities and counties located
within 150 miles of the U.S. - Mexico border.
(3) Colonias
must be designated by the municipality or county in which it is located. The designation must be on
the basis of objective criteria, including:
(a) lack
of potable water supply; or
(b) lack
of adequate sewage systems; or
(c) lack
of decent, safe and sanitary housing.
(4) Appropriate
documentation to substantiate these conditions must be provided along with the
application for funding.
[2.110.2.11 NMAC -
Rp, 2 110.2.11 NMAC, 7/29/2025]
2.110.2.12 OTHER
ELIGIBLE ACTIVITIES:
A. Administrative
costs associated with implementing a program such as preparing environmental
reviews, and other costs for services are eligible activities.
B. Although
the costs of conducting program audits are considered an eligible activity, it
is recommended that they be paid by the applicant to expedite grant closeout.
C. The
council may pledge future CDBG allocations to guarantee repayment of loans to
non-entitlement municipalities and counties for CDBG eligible projects in
accordance with Section 108 of the Housing and Community Development Act of
1974, as amended.
[2.110.2.12 NMAC -
Rp, 2 110.2.12 NMAC, 7/29/2025]
2.110.2.13 INELIGIBLE
ACTIVITIES: The following are among the activities that
are not eligible for CDBG funding assistance:
A. construction
or rehabilitation of buildings used for the general conduct of government, such
as city halls or county courthouses; compliance with the Americans with
Disabilities Act is an eligible activity;
B. general
operation and maintenance expenses associated with public facilities or
services;
C. income
maintenance;
D. housing
allowance payments and mortgage subsidies;
E. expenditures for the use of equipment or premises for political
purposes, sponsoring or conducting candidates' meetings, engaging in voter
registration, voter transportation or other political activities;
F. costs involved in the preparation of applications and securing of
funding.
[2.110.2.13 NMAC -
Rp, 2 110.2.13 NMAC, 7/29/2025]
2.110.2.14 RURAL
ALLOCATION:
A. A minimum of
fifteen percent of the CDBG allocation will be awarded to rural counties and
municipalities.
B. Rural applicants
and non-rural applicants may apply for funding from the community
infrastructure Colonias, and public facility capital outlay categories.
C. Rural and non-rural
applicants may apply for funding from the planning category.
[2.110.2.14 NMAC -
Rp, 2 110.2.14 NMAC, 7/29/2025]
2.110.2.15 PROGRAM
PUBLIC PARTICIPATION REQUIREMENTS:
Applicants must provide opportunities for public participation in the
development of community development goals, objectives, and applications for
funding assistance by undertaking the following activities:
A. provide for and
encourage citizen participation within their areas of jurisdiction with
particular emphasis on participation by persons of low and moderate income;
B. provide citizens
with reasonable and timely access to local meetings, information, and records
relating to proposed and actual use of funds;
C. provide for
technical assistance as determined by the applicant, groups and representatives
of low and moderate income persons that request assistance in developing
proposals; the level and type of assistance is to be determined by the
applicant.
D. provide for
public hearings to obtain citizen participation and respond to proposals and
questions at all stages;
E. prior to
selecting a project and submitting an application for
CDBG funding assistance, conduct at least one public hearing for the following
purposes:
(1) to
advise citizens of the amount of CDBG funds expected to be made available for
the current fiscal year;
(2) to
advise citizens of the range of activities that may be undertaken with the CDBG
funds;
(3) to
advise citizens of the estimated amount of CDBG funds proposed to be used for
activities that will meet the national objective to benefit to low and moderate
income persons;
(4) to
advise citizens of the proposed CDBG activities likely to result in
displacement, and the unit of general local government's anti-displacement and
relocation plans;
(5) to obtain recommendations from citizens regarding the
community development and housing needs of the community:
F. After
considering all recommendations and input provided at the public hearing(s), the
governing body must select one project for which to submit an
application for funding assistance at an official public meeting.
G. The applicant
must conduct a second public hearing prior to the submission of the
application. Public hearing notices must
be published in the non-legal section of newspapers, or
posted in a minimum of three prominent public places within the project area,
with public access. Notice of any public
hearing must be published or posted at least 10 days in advance of the hearing
date. Emergency hearings may be called
upon 72 hour’s notice unless threat of personal
injury or property damage requires less notice.
Emergency hearings may be called only under unforeseen circumstances,
which demand immediate action to protect the health, safety and property of
citizens or to protect the applicant from substantial financial loss. All applicants must be in
compliance with all provisions of the Open Meetings Act Section 10-15-1 NMSA
1978 et., seq.
H. Evidence of
compliance with these public participation requirements must be provided with
each application, i.e., hearing notice, minutes of public meetings, list of
needs and activities to be undertaken, etc.
I. Applicants must provide
for timely written answers to written complaints and grievances within 15
working days where practicable.
J. Applicants must identify
how the needs of non-English speaking residents will be met in the case of
public hearings where a significant number of non-English speaking residents
can be reasonably expected to participate.
[2.110.2.15 NMAC -
Rp, 2 110.2.15 NMAC, 7/29/2025]
2.110.2.16 PROGRAM
REQUIREMENTS FOR MEETING NATIONAL PROGRAM OBJECTIVES:
A. Each CDBG application must meet the following national objectives.
B. Low
and moderate income benefit - an activity identified as principally benefiting fifty-one
percent persons of low and moderate income will be considered eligible only if
it meets one of the following criteria:
(1) the
activity must be carried out in a neighborhood or area consisting predominantly
of persons of low and moderate income and provide services to such persons; or
(2) the
activity must involve facilities designed for use by a specific group of people
or clientele predominantly of low and moderate income.
[2.110.2.16 NMAC -
Rp, 2 110.2.16 NMAC, 7/29/2025]
2.110.2.17 APPLICATION
REQUIREMENTS:
A. Number of
applications - all eligible applicants may submit one application for CDBG
funding assistance in the community infrastructure, public facility capital
outlay, or Colonias categories.
B. Planning
applicants should contact the division about funding availability. Applicants may submit a planning grant
application at any time, subject to funding availability.
C. Counties may
submit multiple applications for planning grants on behalf of eligible
applicants.
D. Planning
applications may be submitted even if the applicant has not completed
previously awarded CDBG projects.
E. Single purpose application
-an application must be limited to a project specific activity or set of
activities that address a particular need in a designated target area of a unit
of local government.
F. Joint
applications - Joint applications are allowed when two or more eligible
applicants within reasonable proximity of each other wish to address a common
problem.
(1) Joint
applications must satisfy certain criteria found in federal rules and must
receive division approval prior to submitting an application
for funding assistance.
(2) One
community will be designated to serve as the lead applicant and will be subject
to administrative requirements and to the application limit requirements.
(3) Other
parties to the joint application may submit another application.
G. The following
minimum requirements apply to all applications for CDBG funding:
(1) Applications
must involve a project that will be fully functional on a stand-alone basis
once awarded CDBG and other committed funds have been expended.
(2) Projects
shall be completed within 36 months of an executed grant agreement signed by
both parties.
(3) Any
funding limits for applications not stated in this document may be established
in application materials, or at a council meeting. Applications exceeding five hundred thousand
dollars ($500,000.00) must be accompanied by a certified cost estimate from an
engineer, architect, or landscape architect licensed to do business in the state
of New Mexico, which must be certified no more than 120 days prior to
application submission.
(4) Application
must be complete, with all documentation provided as listed on the submission
and attachment checklist included in the application, otherwise application
will be deemed ineligible and the application will be
returned to the applicant and will not be considered for funding.
(5) Applications
must include a determination of rural or non-rural status.
(6) Applications
must include project cost estimates.
H. Threshold
requirements - a project must be completed by the deadline for threshold
compliance.
(1) Any
open CDBG project must be completed at the time of application (certificate of
occupancy or certification of operation must be in place).
(2) Any
previous CDBG project’s monitoring findings and concerns must be resolved.
(3) The
current applicant’s fiscal operating budget must be certified by the division.
(4) The
applicant’s quarterly/monthly financial reports to the division must be
current.
(5) An
applicant must have submitted to the New Mexico state auditor its most current
audit(s) that were required to be conducted and submitted for review per the
New Mexico state auditor’s required report due dates for the previous fiscal
year(s) and an applicant must be in compliance with
the budget certification rule, 2.2.3 NMAC.
(6) The
set aside category; planning is exempt from threshold requirements set forth in
Subsections I of 2.110.2.17 NMAC.
I. Matching
requirements - to extend available resources and to ensure applicants are
invested in projects, the following matches will be required.
(1) Non-rural
applicants must provide, at a minimum, a ten percent cash match during the
project period from local, state or other public resources, excluding local
work force or local equipment.
(2) Local
funds expended by an eligible applicant for engineering, architectural design
or environmental review prior to project approval may be applied towards the
required match if approved by the division.
(3) Applicant
may request a waiver of the matching requirement if documentation can be
provided to demonstrate the absence of local resources to meet the required
match. Criteria used by the division to
recommend council approval/disapproval will be as follows:
(a) the
required match must exceed five percent of the applicant’s general fund budget;
(b) the
required match must equal or exceed the available balance of funds in the
applicant’s overall budget.
J. Other funding
commitments - if other funding is necessary to make a proposed project
feasible, funding commitments must be in place and letters of commitment or
grant agreement from the funding agency must be submitted with the application.
K. Asset management
- communities that implement an asset management program and use that approach
as the basis for their rate analysis will be credited in the application
process for their achievement. To support
the long term operation, maintenance, repair and replacement of system
facilities, infrastructure, public facilities, or other eligible activities the
following will be required to be submitted at the time of application. The model for the asset management program is
the international infrastructure asset management model. This approach includes five core components:
(1) current
state of the assets: an asset inventory that includes at a minimum: asset name,
asset location, asset condition, useful life, and an estimate of replacement
value;
(2) level
of service: a description of type and level of service provided;
(3) criticality:
an evaluation of which assets are critical to sustaining the operation;
(4) life
cycle costing: at a minimum, a capital improvement plan that describes the
replacement of assets and some consideration of operation and maintenance of
the assets;
(5) financing
plan: a description of the funding sources that will be used to pay for capital
and operational needs.
[2.110.2.17 NMAC -
Rp, 2 110.2.17 NMAC, 7/29/2025]
2.110.2.18 APPLICATION
SUBMISSION PROCEDURES AND CONTENT: The application packet provided
by the division must be used. It is only
necessary to answer the questions on the application that pertain to the
relevant single project category.
A. An
applicant must submit an original (hard copy) and two separate electronic
copies of each application to the division, and one electronic copy to the
appropriate council of governments.
B. Applications for community infrastructure and public facility capital
outlay must be received by the division on or before 5:00 p.m. on the
designated application deadline.
Applications received after that time will not be processed.
[2.110.2.18 NMAC -
Rp, 2 110.2.18 NMAC, 7/29/2025]
2.110.2.19 APPLICATION
REVIEW AND EVALUATION PROCESS:
A. Upon receipt of
an application, division staff will review for eligibility, completeness,
feasibility, and compliance and ensure that all other funding necessary to make
the project functional is in place. Applications
not meeting the criteria will be returned to the applicant and will not be
considered for funding.
B. Applications will
be forwarded to appropriate state agencies for technical review and comment. Review agencies may include, but are not
limited to, the environment department, department of transportation,
department of health, state engineer's office, agency on aging and long term
services, economic development department, state fire marshal and governor’s
commission on disability.
C. An eligible
applicant will be allowed to make a presentation to the council and division
staff at the official hearing. Testimony
related to the application will be presented by an official or designee of the
applicant who may be assisted by technical staff.
D. Rating criteria to
evaluate and score CDBG applications for the community infrastructure, public
facility and Colonias categories will include the following:
(1) description;
(2) need;
(3) cost analysis;
(4) planning and readiness;
(5) risk analysis;
(6) optional additional criteria;
(7) additional colonias criteria.
E. Planning grant criteria: The planning grant applications will be
rated with the below:
(1) description;
(2) need;
(3) cost analysis;
(4) risk analysis;
(5) division support and approval.
F. Planning
applications that are in compliance with all
applicable rules and regulations are received and evaluated throughout the
year.
G. The council
delegates to the division director the authority to award, in the division
director’s discretion, set aside funding for applications for supplemental
funding and planning projects in compliance with applicable rules and
regulations. The division will provide
the council with an update on all such awards at each council meeting.
[2.110.2.19 NMAC -
Rp, 2 110.2.19 NMAC, 7/29/2025]
2.110.2.20 SELECTION
OF CDBG GRANTEES BY COUNCIL:
A. Division staff
will present its recommendation to the council at least seven days prior to each
allocation meeting.
B. The council will
review staff recommendation and funding allocation and make funding decisions
in an open public meeting.
C. The council, in
making its final decisions, will consider the past performance of the applicant
in administering CDBG projects.
D. The council may
adjust the scope and dollar amount to stay within available funding or for
purposes of consistency.
E. The council may
deviate from staff recommendation and funding allocation, if the council by
majority vote determines and substantiates that any of the following conditions
apply: To not fund a project recommended
by the division staff other funding sources for the project are available or
other applications were deemed to be a priority or
circumstances have changed since the application was submitted.
F. The council will
make funding determinations by a majority vote.
G. The council may
waive or adjust any division imposed CDBG application requirement as long as the waiver will not result in violation of state
or federal statutes, regulations, rules, or penalize other applicants.
H. If the council
sets aside funding for supplemental funding; the council may at any time during
the calendar year, transfer funds between categories
if there is limited demand in the funded categories. The transferred funds may be used to fund
projects that were previously submitted for funding.
[2.110.2.20 NMAC -
Rp, 2 110.2.20 NMAC, 7/29/2025]
2.110.2.21 REVERSIONS,
SUPPLEMENTAL FUNDING AND UNDERRUNS:
A. Decision of the
division to impose special conditions or fiscal agent requirements - if a CDBG
award is provided to a grantee that has deficiencies identified in the audit(s)
approved by the state auditor’s office, the division reserves the right to
impose special conditions or fiscal agent requirements dependent upon the
specific findings or opinions as described in the audit(s).
B. Decision by the
council or division to revert funds - if, within 12 months of a CDBG award for
a project by the council, the CDBG award has not resulted in an executed
agreement between the division and the applicant or the applicant has not made
adequate progress on the project or reasonable suspicion exists that there was
fraud or misrepresentation regarding the project by the applicant, the division
may recommend to the council to revert all or part of the award and the council
may vote to revert all or part of the award. The applicant shall receive written notice
from the division of the council’s decision to revert all or part of award by
certified mail. The applicant may
appeal, in writing, the council’s decision to revert all or part of the award
within 30 days of receipt of the written notice of the council’s decision. The appeal of the council’s decision by the
applicant shall be held at a council meeting no later than 90 days from the
council’s receipt of the written appeal.
The council’s decision on the appeal of the reversion shall be final. The council may grant the applicant a
reasonable period of time to cure the particular default that was the basis of the reversion. At the end of the cure period, the council
shall vote again on the issue of the reversion and this decision shall be final.
C. Reversions
and supplemental funding - When funds are reverted from a previously approved
project grant or additional funds are made available for any other reason, the council may decide that the funds will:
(1) be
set aside to supplement current projects that require additional funding to
complete the project(s); or
(2) be
returned to the category of the program from which it was awarded;
(3) go
into any other category; or
(4) take
other action as deemed appropriate.
D. Underruns
- if upon completion of the approved activities a balance of funds remains
after all payments have been made, this balance shall be handled as follows: if
the grantee has not accomplished all work called for in the original
application submitted for funding consideration, the grantee may request
division staff to approve the expenditure of underrun funds for a portion or
all of the remaining work; if
appropriate justification and sufficient funding exist, division staff may
approve the request for use of underrun funds and amend the grant agreement
accordingly;
[2.110.2.21 NMAC -
Rp; 2 110.2.21 NMAC, 7/29/2025]
2.110.2.22 [RESERVED]
[2.110.2.22 NMAC - Repealed
xx/xx/2025]
2.110.2.23 CITIZEN
ACCESS TO RECORDS: Citizens and units of general local
government will be provided with reasonable access to records regarding the
past use of CDBG funds.
[2.110.2.23 NMAC -
Rp, 2 110.2.23 NMAC, 11/15/2016]
2.110.2.24 NM
COMMUNITY ASSISTANCE FUNDS: The council will allocate and administer New
Mexico community assistance underrun funds in accordance with the provisions of
the Community Assistance Act.
[2.110.2.24 NMAC -
Rp, 2 110.2.24 NMAC, 11/15/2016]
2.110.2.25 MEETING PROCEDURES:
A. Special
meetings. Special meetings of the
council may be called by a majority of the council members or the chairperson
of the council, and will be held at the time and place
fixed by the division.
B. Notice. Written notice stating the time, place and,
if a special meeting, the purpose, will be delivered either personally, by
mail, or email by the division, to each council member at least 72 hours before
the scheduled date of the meeting. The
meeting notice and agenda will be available to the public and posted on the
department of finance and administration web site. The council may establish dates and times for
regularly scheduled meetings.
C. Quorum. A majority of the current members of the
council in attendance either in person or by telephone will constitute a quorum
at council meetings.
D. Record of
meetings. The meeting shall be recorded and the division shall have the minutes made into a
written record. The original of this
record shall be retained by the division and a copy shall be forwarded to the
council members. Copies shall be
available upon request.
E. Participation
methods. A member of council may
participate in a meeting of the council by means of a video conferencing or
other similar communications equipment when it is otherwise difficult or
impossible for the member to attend the meeting in person, provided that each
member participating by virtually can be identified when speaking, all
participants are able to hear each other at the same time and members of the
public attending the meeting are able to hear any member of the council who
speaks during the meeting.
[2.110.2.25 NMAC -
Rp, 2 110.2.25 NMAC, 7/29/2025]
2.110.2.26 [RESERVED]
[2.110.2.26 NMAC - Repealed
7/29/2025]
|
Attachment I |
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(Referenced by:
2.110.2.7 NMAC) |
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CDBG projects are
designed to meet the national objectives: low and moderate income Applicants may choose between two different
processes to determine low and moderate income eligibility: (1) conduct a
special survey using the HUD approved methodology in accordance with Section
A “Survey Methodology” and Section C “HUD Section 8 Income Limits” below; or
(2) use the most recent low and moderate income data from section B “American
Community Survey” and Section C “HUD Section 8 Income Limits” below. |
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A. Survey
Methodology |
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The division
recommends using the following HUD approved methodology: |
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This survey
methodology was designed by HUD to assist States and entitlement cities in
determining whether most of the individuals in a proposed target area are of
low and moderate income. |
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Upon requesting
permission from the division to conduct a sample survey, an applicant should
indicate the justification for the sample survey. Applicants must provide to the division a
map of the project service area, a brief description of the proposed project,
and a description of how the six steps described in the suggested methodology
will be implemented. |
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If the applicant
conducts a sample survey, such applicant must be prepared to document all
efforts. There must be a master list
(with telephone numbers, where possible) to match the surveys. The master list must be coded to the
individual surveys. |
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Such documentation
must include a separate survey for each household, for unreachables
that could not be replaced from the universe, and for “non-households” in the
survey area, such as empty lots, business and government property. The sixth step of the methodology provides
a complete listing of the information that an applicant must maintain in its
files and submit to the division. |
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|
The six steps of
the survey methodology are located on the department of finance and
administration website, infrastructure planning and development division,
community development bureau, CDBG information page. |
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B. American
community survey (ACS) |
|
The U.S. census bureau
provides a fact finder source for population, housing, economic, and
geographic information. This source
may be used by applicants to determine eligibility for low to moderate income
persons. This source is located at the
American FactFinder website, community facts. |
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C. HUD
Section 8 Income Limits |
|
HUD Section 8
income limits must be used in conjunction with either the survey methodology
or ACS data to determine low and moderate income eligibility. Applicants should contact the division for
the most current data sets. |
HISTORY OF 2.110.2 NMAC:
Pre-NMAC History: The
material in this part was derived from that previously filed with the State
Records Center and Archives:
DFA Rule 85-3, State
of New Mexico Regulations Governing the 1986 Small Cities Community Development
Block Grant Program and 1985 New Mexico Community Assistance Program, 10/4/1985.
DFA Rule 87-3, State
of New Mexico 1988 Small Cities Community Development Block Grant Program New
Mexico Community Assistance Program Application Regulations, 12/4/1987.
DFA Rule 89-3, 1989
Small Cities Community Development Block Grant Program New Mexico Community
Assistance Program Applications Regulations, 3/2/1989.
DFA Rule 90-1, 1990
Small Cities Community Development Block Grant Program New Mexico Community
Assistance Application Regulations, 12/28/1989.
DFA #91-1, 1991-1992
Small Cities Community Development Block Grant Program New Mexico Community
Assistance Application Regulations, 1/14/1992.
DFA #93-1, 1993
Small Cities Community Development Block Grant Program New Mexico Community
Assistance Application Regulations, 7/9/1993.
DFA-LGD No. 93-1,
1994 Small Cities Community Development Block Grant Program New Mexico
Community Assistance Application Regulations, 6/13/1994.
DFA-LGD Rule No.
95-1, 1995 Small Cities Community Development Block Grant Program New Mexico
Community Assistance Application Regulations, 5/31/1995.
DFA-LGD Rule No.
95-2, 1996 Small Cities Community Development Block Grant Application
Regulations.
History of Repealed Material:
2 110.2 NMAC, Small
Cities Community Development Block Grant - Repealed, 8/30/2001.
2.110.2 NMAC, Small
Cities Community Development Block Grant - Repealed, 6/5/2015.
2.110.2 NMAC, Small
Cities Community Development Block Grant - Repealed, 11/15/2016.
2.110.2 NMAC, Small
Cities Community Development Block Grant, filed 11/15/2016 Repealed effective 7/29/2025.
Other: 2.110.2 NMAC, Small Cities Community Development Block Grant, filed
11/15/2016 Replaced by 2.110.2 NMAC, Small Cities Community Development Block
Grant effective 7/29/2025.