(a) Grants shall be made for amounts not to exceed $100,000 for each applicant. Applications for grants shall be made to the department and contain such information as the department shall require by rules adopted pursuant to chapter 91. At a minimum, the applicant must show that:
Terms Used In Hawaii Revised Statutes 210D-11
Community-based economic development: means a community institution-building process that results in community-based enterprises and other economic development activities which are designed and implemented by a community; consistent with a community's values, culture, and vision; and intended to increase community control over local resources and decision-making processes. See Hawaii Revised Statutes 210D-2
Community-based organization: means a nonprofit corporation incorporated in the State of Hawaii that is organized and controlled by either a geographic community, a community of identity, or a community of interest and that is directly involved in community-based economic development activities. See Hawaii Revised Statutes 210D-2
Contract: A legal written agreement that becomes binding when signed.
Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
(1) The grant shall be used exclusively for community-based economic development activities, a community-based business or enterprise, or the provision of technical assistance, consistent with the purposes of this chapter;(2) The community-based business or enterprise shall have applied for or received all applicable licenses and permits;(3) The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;(4) The grant shall not be used for purposes of entertainment or perquisites;(5) The applicant shall comply with other requirements as the department may prescribe;(6) All activities and improvements undertaken with funds received shall comply with all applicable federal, state, and county statutes and ordinances, including applicable building codes and agency rules;(7) The applicant shall indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder, and procure sufficient insurance to provide this indemnification if requested to do so by the department; and(8) The facilities shall not be used and are not intended to be used for sectarian instruction or as a place of worship.(b) To receive a grant under this section for community-based economic development activities, a community-based enterprise or business, or the provision of technical assistance, an applicant shall:
(1) Be either:
(A) A profit subsidiary of a nonprofit community-based organization incorporated under the laws of the State;(B) A nonprofit community-based organization determined to be exempt from federal income taxation by the Internal Revenue Service;(C) A cooperative association; or(D) An organization providing technical assistance;(2) In the case of a nonprofit organization, have a governing board whose members have no material conflict of interest and serve without compensation, have bylaws or policies that describe the manner in which business is conducted and policies relating to nepotism and management of potential conflict of interest situations, and employ or contract with no two or more members of a family or kin of the first or second degree unless specifically permitted by the department;(3) Agree to make available to the department all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant’s compliance with the purpose of this chapter; and(4) Establish, to the satisfaction of the department, that sufficient funds are available for the effective operation of the activity, business, enterprise, or technical assistance for the purpose for which the grant is awarded.
