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Section 2: General Limitations And Conditions Of The Program

The following limitations and conditions apply to NSP-funded activities.

2.1 Ineligible activities and expenses include:

  1. Direct social services such as emergency food and housing assistance.
  2. Routine operating expenses of the Business Association or Community Council such as rent, utilities, building maintenance, repair, and equipment rental, except for Business Association or Community Council expenses of a phone service and post office box not to exceed $1000 per contract year.
  3. The purchase of office supplies to support the ongoing operations of the Business Association or Community Council.
  4. Food expense, with the exception of fund raising resale purposes, limited to $1,500 per contract year.
  5. Entertainment, other than events widely promoted for general attendance by the Business Association or Community Council membership or residents of the community.
  6. Hiring non-project based staff.
  7. Compensation for Project Coordinators and other contractors for performing routine office duties or conducting activities unrelated to those of the Business Association or Community Council
  8. Direct cash awards to individuals or groups.
  9. A Business Association or Community Council using NBDSF funds to purchase advertising that appears in its own NBDSF Program subsidized publications.
  10. Activities that duplicate government services which are currently available within the neighborhood.
  11. Hiring of Business Association or Community Council officers or their immediate family members.
  12. Promotion of political candidates.
  13. Activities that fail to serve any public purpose.
  14. Legal fees, except for the startup of incorporation to create a Business Association.
  15. Real Estate Options.
  16. Improvement to Private Property.
  17. Activities Prohibited by City and State Law.
2.2 Projects are subject to the following conditions:
  1. Fundraising in support of Program activities is allowed. Expenditures for prizes may not exceed $500 per contract year. A Business Association or Community Council officer and their families may not be recipients of awards or prizes.
  2. Expenditures for communication projects and/or any items leading to the production of communication projects (i.e., graphic design, layouts, color separations, etc.) shall be limited to $3,000 per contract year unless the Business Association or Community Council distributes at least one issue to every residence in its neighborhood, in which case the Business Association or Community Council is eligible for $4,000 per contract year. General communication projects shall be defined as:
    Newsletters
    Brochures (non-project specific)
    Flyers (non-project specific)
    The funding cap on general communications does not include the following: membership recruitment projects, signage specifying community boundaries, or publicity or communication elements that are integral to a larger project and not simply a communication focused project.
  3. All program-funded publications shall strive for balanced coverage.
  4. Revenues obtained from program projects and their expenditures shall be reported to the Administrating Agency annually.
  5. Revenues obtained from program projects shall be expended for activities which are compatible with program Guidelines.
  6. Organizational development projects specifically for membership recruitment shall be limited to $1,000.
  7. Fixed assets in excess of $100 per item shall be permanently installed in a public right-of-way, on public property, or on private property continuously available to the public.
  8. Capital assets (items having a useful life of three years or more) where cost exceeds $200 and/or cleanup supplies, tools, etc., shall be made available to the community for NBDSF projects.
  9. Up to $500 of program funds may be used for the preparation of annual audits and /or financial reports.
  10. The Business Association or Community Council shall submit documentation that all projects currently funded by the City.
  11. Equipment purchased with Program funds shall be used primarily in the implementation of Program allowable projects. Such equipment shall be kept in a publicly accessible location. In the case where a Business Association or Community Council purchases the equipment on behalf of another community entity, the following information must be provided: a statement indicating where the equipment will be kept, who will use it and for what purposes, and proof of insurance against theft. All equipment purchased with Program funds will revert back to the Administrating Agency should the Business Association or Community Council cease to exist or no longer have use for the equipment.
  12. Business Associations or Community Councils are required to avoid discriminatory or exclusionary practices. However, with a demonstrated need, Program-funded programming may be offered to specific businesses or residents groups with the understanding that no business or resident may be denied participation.
  13. Business Associations or Community Councils shall provide a free, open, and competitive process for each position for which they intend to contract. All paid positions shall be openly advertised to neighborhood residents prior to hiring, even if the Business Association or Community Council intends to retain current personnel. The NBDSF Program Director (see Section 9 of these Guidelines) will provide consultation and written procedures to Business Associations or Community Councils on their hiring and procurement requirements. Business Associations or Community Councils shall document the selection process and the basis for payment. This documentation shall be in the form of a memo to the NBDSF Program Director and shall be submitted before or with the first claim invoice.
  14. In advance of selecting contractors, the Business Association or Community Council shall determine the job descriptions and skills needed for the job and appropriate payment rate. The basis for payment shall consider: job expectations, level of experience, and other criteria defined by the Community Council. In submitting proposals, Councils should determine the type of work they want accomplished and base their proposal budget on a maximum amount they wish to spend. If they are able to obtain a worker for a lesser amount after negotiation with the candidate, then Business Association or Community Council may request an adjustment in the contract line item by writing the NBDSF Program Director.
  15. When deciding to hire contractors, participating NBDSF Business Associations or Community Councils shall determine whether the worker is an employee or a services contractor. NBDSF Program Proposal budgets shall specifically detail the working relationship. If workers are employees, then appropriate withholding for federal, state, and local purposes and other applicable employer taxes shall be detailed and the sources of funds for payment identified (NBDSF Program or other source). The NBDSF Program Director will provide information on the differences between employee and worker relationships. However, the Business Association or Community Council and its workers are ultimately responsible for adherence to withholding requirements.
  16. Prior approval from the City and coordination is required for projects proposed as improvements to City-owned property or public right-of-way.

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