Esta ley establece la fórmula para la asignación de fondos del Programa de Subvenciones en Bloque para el Desarrollo Comunitario (CDBG) administrados por la Oficina del Comisionado de Asuntos Municipales (OCAM). La fórmula garantiza una asignación básica equitativa para los municipios no metropolitanos y distribuye el resto de los fondos de forma competitiva, con un aumento del 15% para Vieques y Culebra.
(S. B. 1408) (Reconsidered) (No. 50) (Approved January 13, 2004)
To establish the formula for the appropriation of Community Block Grant Program funds (CDBG) managed by the Commonwealth of Puerto Rico through the Office of the Municipal Affairs Commissioner.
Pursuant to the provisions of Public Law 93-383 of August 22, 1974, as amended, known as the "Housing and Community Development Act of 1974", the "Community Development Block Grant Program" (CDBG) was created. Under this Program the Federal Housing and Urban Development Department appropriates funds to the states, including Puerto Rico, local government units and Indian tribes to be used to carry out activities and projects that promote the physical and economic development of urban communities, mainly those of persons low and moderate resources. In Puerto Rico, the funds are directed to the development of infrastructure, housing, communal development, economic development and public service projects in disadvantaged communities.
The recipients of funds of the CDBG program (English acronym) may be, among others, metropolitan cities, which are defined as cities with 50,000 inhabitants or more, and which receive the funds from the Department of Federal Housing directly. Cities with less than 50,000 inhabitants ("non-entitlement" municipalities) receive the funds through the state government, which distributes the same to the eligible municipalities.
In order to receive the funds, the state government must submit a Consolidated Plan adjusted to the applicable to the Federal Housing Department, legal and regulatory provisions. These regulations require that said Plan contain specific information concerning the method that the state government shall use to distribute the funds to the municipalities. In particular, it requires that the distribution method contains a description of the criteria that shall be used to select the proposals of the municipalities and the way in which the funds shall be appropriated, according to the municipalities' categories.
The Commonwealth of Puerto Rico entrusted the management of the CDBG funds appropriated for Puerto Rico to the Office of the Commissioner of Municipal Affairs (OCAM Spanish acronym). According to the 2000-2005 Consolidated Plan filed by the OCAM, each non-entitlement municipality shall submit a proposal applying for funds detailing the projects to be considered. All the proposals shall be evaluated by OCAM officers under a system of competition, according to criteria of need, impact, performance and discretional criteria.
The CDBG funds distribution method is established administratively and contains competitive and discretional elements which do not guarantee to the municipal governments an equitable distribution. In view of this reality, the Legislature deems it necessary to establish a Basic Appropriation distribution method formula through which three hundred and fifty thousand ($350,000) dollars shall be distributed to each non-entitlement municipality or the amount resulting from the distribution in equal parts of thirty-three percent (33%), whichever is greater. The Office of the Commissioner for Municipal Affairs (OCAM) shall distribute the remaining sixty-seven percent (67%) through the competitive funds (CF) method.
In the specific cases of the Municipalities of Vieques and Culebra, which lack access by land, the appropriation shall be increased by fifteen (15%) from the total
of adjudicated funds, taking into consideration the cost of fuel, materials, manual labor and other circumstances related to the obvious access problem that these municipalities have, in relation to the other municipalities of Puerto Rico.
This formula guarantees the appropriation and distribution of funds in an equitable manner, pursuant to the needs of each non-entitlement municipality. Furthermore, it promotes a sound administration and use of available funds in accordance with the purposes of the Act. To address OCAM's need for time to implement the provisions of this Act, it is contemplated that its effectiveness shall be postponed to July 1, 2004.
Section 1.- Definitions a. Available Funds. The sum of funds appropriated to the Basic Assignment and Competitive Funds formula. b. Non-entitlement Municipalities. Shall be those municipalities less than 50,000 inhabitants and that have been designated as such by the Federal Housing Department (HUD). c. State Administration Funds. Those funds which the Federal Law authorizes the state to deduct from the CDBG to cover the following items: "State Administration", "State Allowance", "Technical Assistance", as well as those other Eligible Activities established in the State Action Plan.
Section 2.- Pursuant to the Federal Law, from the total of funds appropriated for the Community Development Block Grant, the State may set aside a State Administration Fund, to cover administrative expenses, to provide technical assistance and to establish other eligible activities. Once OCAM deducts these items, the available funds shall be distributed through the formula established in this Act.
Section 3. - The Basic Assignment (AB, Spanish acronym) formula is established for the distribution of the Community Development Block Grant (CDBG) funds administered by the Commonwealth of Puerto Rico through the Office of the Commissioner of Municipal Affairs (OCAM). From the available funds, OCAM shall distribute as Basic Assignment, three hundred fifty thousand dollars to each of the non-entitlement municipalities or the amount resulting from the distribution in equal parts of thirty-three percent (33%), whichever greater.
Section 4.- The remainder of the available funds, after the item corresponding to the Basic Assignment has been determined, shall be distributed by OCAM through the Competitive Funds (FC, Spanish acronym) method. Each municipality shall submit a proposal to request funds which shall include all projects to be considered, indicating the category of such project. OCAM shall evaluate the proposals for competitive Funds that each non-entitlement municipality submits. Said proposal must be filed according to the procedure and requirements established by the Office of the Municipal Affairs Commissioner with the purpose of complying with all the requirements established by Federal regulations, to implement the provisions of Title I of Public Law 93-383 of August 22, 1974, as amended, known as "Housing and Community Development Act of 1974" and of this Act.
Section 5.- In the specific cases of the Municipalities of Vieques and Culebra, the appropriation shall be increased by fifteen percent (15%) of the total of funds adjudicated to them.
Section 6.- OCAM is empowered to establish the regulations needed to comply with the provisions of Public Law 93-383 of August 22, 1974 and of this Act.
Section 7.- This Act shall take effect on July 1, 2004.
I hereby certify to the Secretary of State that the following Act No. 50 (S.B. 1408) (Reconsidered) of the $6^{ ext {th }}$.Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to establish the formula for the appropriation of Community Block Grant Program funds (CDBG) managed by the Commonwealth of Puerto Rico through the Office of the Municipal Affairs Commissioner, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today 2nd of May of 2005.
Luis E. Fusté-Lacourt Director