(a) All funds allocated to the State, except for an amount not exceeding the maximum allowable under the Federal Act available to the State for administrative costs, shall be allocated to municipalities in an equitable and efficient manner.

(b) All municipalities, except for entitlement municipalities, shall be eligible to apply for and receive funds under this subchapter.

(c) Entitlement municipalities shall not be eligible to apply for and receive funds under this subchapter. Entitlement municipalities shall, however, have the authority to apply for and receive funds and to implement and administer a community development program as otherwise provided in the Federal Act, and this subchapter shall not be construed in any way to limit that authority.

(d) The Agency shall solicit applications from eligible municipalities. Any eligible municipality desiring to receive funds under this subchapter shall complete and submit an application in a manner as shall be prescribed by the Secretary. The Agency may require a third party credit analysis as part of the application. The applicant municipality shall pay a fee to cover the actual cost of the analysis to be deposited in a special fund that shall be managed pursuant to 32 V.S.A. subchapter 5 of chapter 7 and be available to the Agency to pay the actual cost of the analysis.

(e) The Board shall evaluate the relative merits of the applications using the allocation system established under this subchapter and make recommendations to the Secretary as to which applications merit funding.

(f) The Secretary shall review the recommendations of the board and make the final awards for grants-in-aid. (Added 1983, No. 10, § 1, eff. March 18, 1983; amended 2009, No. 47, § 7, eff. May 28, 2009.)