Section 123.3. Eligibility

(a) Eligible applicants. The following are eligible for CRP grants:

(1) Local governments, including, but not limited to, counties, cities, boroughs, townships and home rule municipalities.

(2) Municipal and redevelopment authorities and agencies.

(3) Industrial development authorities and agencies.

(4) Nonprofit organizations incorporated under the laws of the Commonwealth.

(5) Community organizations engaged in activities consistent with the program guidelines as determined by the Department.

(b) Eligibility of projects. CRP funds may be used for community revitalization and improvement projects consistent with Act 38A of 2008.

(1) Eligible projects must meet one or more of the following criteria:

(i) Improve the stability of the community.

(ii) Promote economic development, community development or both.

(iii) Improve existing or develop new, or both, civic, cultural, recreational, industrial and other facilities or activities.

(iv) Assist in business retention, expansion, creation or attraction.

(v) Promote the creation of jobs and employment opportunities.

(vi) Enhance the health, welfare and quality of life of citizens of this Commonwealth.

(2) Projects for the sole benefit of a for-profit entity are not eligible for program funding.

(3) Grants may not be used to fund revolving loan programs.

(4) Repayment of debt not incurred as the direct result of the project is an ineligible use. Indebtedness incurred prior to July 1 of the fiscal year in which the grant is approved will be presumed to not be indebtedness incurred as the direct result of the project and therefore will be an ineligible use.

(c) Conditions on certain applicants.

(1) Private clubs and organizations (Rotary, Elks and the like). The following conditions apply:

(i) A private club or organization must be a not-for-profit organization.

(ii) A private club or organization may not discriminate on the basis of race, creed, color, place of national origin or sexual preference in accepting members or selecting participants, but may establish appropriate qualifications for program participation and benefits such as age or income level.

(iii) A private club or organization may apply for grant funds for the following projects:

(A) Equipment, supplies, food and other operational expenses for use in community activities such as parades, tournaments and the like.

(B) Program expenses for community service programs, including parades, tournaments, educational, social and cultural projects, and the like.

(C) Erection and maintenance of public memorials in public places.

(D) Construction or renovations, or both, to a club facility, provided the private club or organization can demonstrate that one of the following applies:

(I) A significant number of community events are held at its facility and these events are open to the public with no entry fee or with a nominal fee.

(II) Its facility is made available to community groups for their programs free of charge or at a discounted rate.

(2) Religious organizations (churches, schools and the like). The following conditions apply:

(i) Funds may not be used for religious purposes, including religious observances, or for tuition, scholarships or other financial assistance to or administrative expenses of parochial schools including charter schools that advance religious education, except as otherwise permitted in this section.

(ii) A religious organization may apply for grant funds for the following projects:

(A) Equipment, supplies (for example, playground and sports equipment, supplies or other consumables) and community outreach programs with no religious component.

(B) Construction or renovations to a facility owned or leased by a religious organization provided the facility is to be used exclusively for nonreligious activities for the ‘‘useful life’’ of the construction or renovations.

(C) Capital improvements to the exterior of church-owned buildings provided the buildings have been determined eligible for listing or are already listed in the National Register of Historic Places under the National Historic Preservation Act (16 U.S.C.A. § § 470—470x-6).

(3) Fiduciary organizations. An applicant is a fiduciary organization if all or a portion of the requested funds are to be used by any organization other than the applicant. In these cases, the following conditions apply:

(i) The fiduciary organization shall demonstrate that it and proposed subgrantees are eligible applicants.

(ii) The fiduciary organization shall provide a grant narrative and budget covering funds to be expended by the fiduciary organization and all subgrantees. Alternatively, the fiduciary organization may provide in its narrative and budget the guidelines, uses and budgets under which subgrants will be made and utilized.

(iii) Subgrantees and projects to be undertaken by subgrantees must be eligible under the guidelines contained in this chapter.

(iv) For subgrants of $5,000 or more, prior to disbursing grant funds to subgrantees, the fiduciary organization shall provide the Department with copies of all written subgrant agreements, as well as proof of the subgrantees’ eligibility under the guidelines contained in this chapter.

(v) A fiduciary organization shall submit to the Department a closeout report or, if the grant amount exceeds $100,000, an audit for all grant funds expended by the grantee and each subgrantee. Failure to do so will make the fiduciary organization and any subgrantee not providing required documentation of expenditures ineligible for further financial assistance from the Department. A subgrantee may submit its own closeout or audit report to avoid ineligibility.

(vi) A fiduciary organization is responsible for ensuring that grant funds are used by subgrantees for eligible purposes in accordance with the approved budget. Fiduciary organizations may not receive administrative or management fees from subgrant funds.

(vii) A fiduciary organization shall establish and utilize guidelines that evaluate a subgrantee’s eligibility for financial assistance. The guidelines must include, at a minimum, the following:

(A) The subgrantees benefit demographics. (for example, age group, special needs or economic status).

(B) The subgrantees credit history, including financial statements and tax returns, if available.

(C) The subgrantees’ program goals.

(D) A budget outlining the use of the grant funds and the sources of any additional funding utilized by the subgrantee.

(viii) An organization that has chapters, offices or other entities that operate under the general direction of the parent organization (for example, Boys and Girls Clubs, YMCA’s and Special Olympics) will not be considered a ‘‘fiduciary organization’’ and may submit a single comprehensive program and budget narrative and closeout report or audit.

(ix) The Office of Chief Counsel of the Department will make final determination of an organization’s eligibility and capacity to serve as a fiduciary organization under this section.

The provisions of this § 123.3 amended August 25, 2000, effective August 26, 2000, 30 Pa.B. 4434; amended August 31, 2001, effective September 1, 2001, 31 Pa.B. 4966; amended August 23, 2002, effective August 24, 2002, 32 Pa.B. 4161; amended January 23, 2004, effective January 24, 2004, 34 Pa.B. 488; amended September 3, 2004, effective September 4, 2004, 34 Pa.B. 4925; amended September 23, 2005, effective September 24, 2005, 35 Pa.B. 5270; amended October 20, 2006, effective October 21, 2006, 36 Pa.B. 6411; amended September 28, 2007, effective September 29, 2007, 37 Pa.B. 5266; amended September 5, 2008, effective September 6, 2008, 38 Pa.B. 4915. Immediately preceding text appears at serial pages (329928) to (329930).

Notation

Cross References

This section cited in 12 Pa. Code § 123.1 (relating to introduction).