Public Housing Youth Entrepreneurial Demonstration Program

SUMMARY: This notice of funding availability announces the Department's

intention to award a total of $1 million in grants to the Philadelphia

Housing Authority and the Housing Authority of the City of Los Angeles

to partner with the Education Training & Enterprise Center (EDTEC) to

enhance the long-term welfare of youth living in public housing through

structured Youth Entrepreneurial Demonstration Programs.

EDTEC is currently under contract with the Department to design,

develop and implement Youth Entrepreneurial Demonstration Institutes in

the communities of the Housing Authorities (HAs) referenced above.

During the development and implementation of these Youth

Entrepreneurial Demonstration Institutes (Institute or Institutes), the

Housing Authorities (HAs) named above and EDTEC will seek input and

cooperation in the form of technical assistance, guidance and

additional financial resources, to be used for micro enterprise start

up and operation, from but not limited to the following types of

organizations: Resident Councils (RCs), Resident Management

Corporations (RMCs), neighborhood schools, other neighborhood service

organizations, private corporations, university business school

students, and volunteer mentors. The Youth Entrepreneurial

Demonstration Programs that will be provided by the Institutes will

take participants through initial literacy training, when necessary,

and continue them through actual business planning, business start up

and provide the necessary on going business support that can lead to

self-sufficiency for public housing youth. Throughout the performance

period of this notice, funds from these grants will be targeted to

assist participating youths in gaining access to the required

education, employment and supportive services. This notice provides

guidelines for the use of these funds and invites comments on the

demonstration.

The performance period for this demonstration program will be for

24 months after award.

DATES: Application due date. Applications must be physically Received

by the local HUD office having jurisdiction over the proposed project

on or before 3:00 p.m. (local time) on August 14, 1995. This

application deadline is firm as to location, date, and hour. In the

interest of fairness to all competing applicants, HUD shall treat as

ineligible for consideration any application that is received after the

deadline.

Comments due date. August 14, 1995.

ADDRESSES: Interested persons are invited to submit comments regarding

this notice to the Rules Docket Clerk, Office of General Counsel, Room

10276, Department of Housing and Urban Development, 451 Seventh Street,

SW., Washington, DC 20410-0500. Communications should refer to the

above docket number and title. Facsimile (FAX) comments are not

acceptable. A copy of each communication submitted will be available

for public inspection and copying between 7:30 a.m. and 5:30 p.m.

weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Darlene Cocco, Office of Community

Relations and Involvement (OCRI), Department of Housing and Urban

Development, 451 Seventh Street SW., Room 4112, Washington, DC 20410,

Telephone Number (202) 619-8201. (This is not a toll-free number).

Hearing- or speech-impaired persons may use the Telecommunications

Devices for the Deaf (TDD) by contacting the Federal Information Relay

Service on (202) 708-9300 or 1-800-877-8339) for information on the

program.

SUPPLEMENTARY INFORMATION:

I. Authority

The $1 million for the Youth Entrepreneurial Demonstration Program

is funded from a portion of the $20 million appropriated in the

Department of Veterans Affairs and Housing and Urban Development and

Independent Agencies Appropriations Act for 1994 (Pub. L. 103-124,

approved October 28, 1993) (the 1994 Appropriations Act), under the

heading ``Severely Distressed Public Housing Projects.'' This grant

program provides funds for the implementation of Youthbuild programs

authorized under subtitle D of title IV of the Cranston-Gonzalez

National Affordable Housing Act, as added by section 164 of the Housing

and Community Development Act of 1992 (Pub. L. 102-550, approved

October 28, 1992).

II. Announcement of Demonstration

This notice announces the Department's intention to award a total

of $1 million in grants to the Philadelphia Housing Authority and the

Housing Authority of the City of Los Angeles to partner with the

Education Training & Enterprise Center (EDTEC) to enhance the long-term

welfare of youth living in public housing through the Youth

Entrepreneurial Demonstration Program. Youth is defined as a person

between 16-24 years old in accordance with Youthbuild Subchapter C of

Chapter V of Title 24 of the Code of Federal Regulations as amended by

the new part 585.

Los Angeles and Philadelphia were selected because the targets for

this Demonstration are Troubled Housing Authorities, which they are,

and both cities have the relationship with EDTEC and private partners

necessary to undertake this project. The Demonstration program will

also help youth of public housing benefit from section 3 of the Housing

and Urban Development Act of 1968, as amended.

In accordance with the requirements of section 470(a) of the

Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 3542), this

notice describes the intent of the Youth Entrepreneurial Demonstration

Program and invites public comment. Any changes made in this

demonstration as a result of the Department's consideration of public

comments, and any extension of time for commitment of funds that may be

necessary because of these changes, will be published in the Federal

Register.

The Department will not commit funds for the demonstration until

after the latest of: (1) The date the Department has considered any

comments received in response to this notice; (2) September 11, 1995,

which is 60 days after today's publication date; and (3) the date the

Department has received and approved a proposal that meets the

requirements set forth in this notice and any subsequent notice

announcing changes in the demonstration.

III. Maximum Award

Under this Demonstration, the Department is making available a

maximum of $500,000 to the Philadelphia Housing Authority and $500,000

to the Housing Authority of the City of Los Angeles to carry out this

Demonstration.

IV. Description of Demonstration

The Youth Entrepreneurial Demonstration Program is part of HUD's

comprehensive strategy to enable

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resident youths ages 16-24 from public housing communities to develop

and expand their entrepreneurial skills to help them open businesses in

and out of their communities which will provide opportunities leading

to self-sufficiency.

Eligible Program Participants

Eligible program participants must be public housing residents, and

in accordance with Youthbuild:

(1) Participants must be very low-income individuals aged 16 to 24

years, who are high school dropouts. An exception allows for 25 percent

of the participants to be individuals who do not meet the program's

income or educational requirements but who have educational needs

despite attainment of a high school diploma or its equivalency.

(2) Any eligible individual selected for full-time participation in

this program may be offered full-time participation for a period of not

less than 6 months and not more than 24 months unless the Youth

Entrepreneurial Demonstration Program extends beyond this time frame.

(3) Programs must be structured so that 50 percent of the time

spent by participants in the program is devoted to educational services

and activities. All educational programs and activities supported with

funds from the demonstration program must be consistent with applicable

State and local educational standards. Standards and procedures for

academic credit and certifying educational attainment must be

consistent with applicable State and local educational standards.

(4) Wages and benefits, labor standards, and nondiscrimination

requirements shall apply under this program as they would under the

Youthbuild program. Housing authorities participating in this

demonstration program may not be prevented from using funds from non-

Federal sources to increase wages and benefits under the program, if

appropriate.

Eligible Activities

Eligible activities under these grants are the following:

(1) Policy Recommendations. Develop policy recommendations

regarding the Public Housing Youth Entrepreneurial Demonstration

Program's operation for HUD and the two public housing authorities to

further their goals of economic empowerment and drug prevention for

youth who reside in public and Indian housing.

(2) Training Curriculum. The PHA will customize and supplement the

training curriculum provided by EDTEC to meet the needs of the youth in

their communities.

(3) Entrepreneurship Course. The PHA will deliver the

entrepreneurship program provided by EDTEC and customized by the PHA.

(4) On Site Technical Assistance. As youth put their businesses

together, the grantee must be able to provide technical assistance to

youth operated businesses including but not limited to the following

areas: legal, accounting, marketing, etc. This assistance should be

available for a sufficient amount of time to insure success.

(5) Wages, benefits and stipends for participants.

(6) Mentorship. Develop and implement a mentoring program as an

integral and critical ongoing component of the Public Housing Youth

Entrepreneur Demonstration Program. The objective of this effort is to

afford the participants the opportunity to learn from others' strengths

and limitations, and to benefit from others' experiences in building

enterprises which are highly prosperous in creating economic

development opportunities in the inner cities to help public housing

youth have an economic alternative to drugs. Housing Authorities (HAs)

named above and EDTEC will obtain input and cooperation in the form of

technical assistance, guidance and additional financial resources to be

used for micro enterprise start up and operation, from but not limited

to the following types of organizations: Resident Councils (RCs),

Resident Management Corporations (RMCs), neighborhood schools, other

neighborhood service organizations, private corporations, university

business school students, and volunteer mentors.

(7) Supportive Services. Provide supportive services which will

enable participants to attend and fully participate in the Institute's

activities, (i.e. transportation, childcare, stipends, etc.).

(8) Financing/Loan Fund. Develop a strategy with the Institute for

establishing a revolving micro loan fund for youth seeking business

start up funds.

(9) Clearinghouse. Collect, assemble and develop materials on youth

entrepreneurship in and out of public housing for the distribution by

the Office of Community Relations and Involvement (OCRI) Clearinghouse.

Develop model program briefs on successful youth entrepreneurial models

emphasizing the ``how to'' of the project and clearly defining the

obstacles and how they were overcome. Video studies may be done on

several of the most successful models.

(10) Reports. Produce quarterly reports that reflect the current

status of the project. These reports will be used to determine whether

or not this initiative is on target relative to a specified timetable

(time to be technically determined later) and meeting the stated

objective of the institutes and tracking specific outcome measures

agreed to by HUD and the contractor.

(11) Final Report/Evaluation. Produce and submit a final report

which shall be an evaluation of technical assistance, the resources

required to meet the objective of the institutes, including an

assessment of the strategies used to implement the project, and any

recommendations. The contractor shall also make recommendations

regarding the replication of this project or the development of any

future entrepreneurial institutes.

Restrictions

No more than 15 percent of the total grant amount may be used for

administrative costs.

Reports

Each PHA receiving a grant shall submit to HUD a quarterly and an

annual progress report (in a format to be provided by HUD) regarding

the implementation of this program and the effectiveness of the Youth

Entrepreneur Demonstration Program in meeting its purpose.

Proposal Requirements

In order to receive the funding proposed in this notice, each PHA

must submit a proposal describing its program in detail. Proposals are

not limited to but must include:

(1) A copy of the agreement between the PHA, EDTEC and the private

organization providing mentorship that meets the requirement of the

program;

(2) A description of how eligible participants will be recruited;

(3) An accompanying implementation schedule and budget;

(4) A description of training and placement activities under the

demonstration and how training activities will prepare the participants

for entrepreneurial opportunities;

(5) A description of resident involvement in the program's planning

and implementation;

(6) A description of efforts to provide business development,

business start-up and business operation for successful program

participants;

(7) A description of how program success will be measured,

describing the

[[Page 36186]]

baseline indicators against which success will be measured;

(8) A description of how program participants' supportive service

needs will be met;

(9) Certification that participants will be eligible as defined in

the notice; and

(10) A training curriculum on the major body of knowledge required

for a successful youth entrepreneurship development. This curriculum,

developed by EDTEC and customized by PHA must be approved by HUD.

Other Matters

A. Environmental Impact

In accordance with 40 CFR 1508.4 of the Council on Environmental

Quality regulations and 24 CFR 50.19 of the HUD regulations, the

policies and procedures proposed in this document are determined not to

have the potential of having a significant impact on the quality of the

human environment and therefore are exempt from further environmental

reviews under NEPA.

B. Federalism Executive Order

The General Counsel, as the Designated Official under Section 8(a)

of Executive Order 12612, Federalism, has determined that the

provisions in this Notice of Funding Availability are closely based on

statutory requirements and impose no significant additional burdens on

States or other public bodies. This NOFA does not affect the

relationship between the Federal Government and the States and other

public bodies or the distribution of power and responsibilities among

varies levels of government. Therefore, the policy is not subject to

review under Executive Order 12612.

C. Family Executive Order

The General Counsel, as the Designated Official under Executive

Order 12606, the Family, has determined that this Notice of Funding

Availability will have a significant impact on formation, maintenance

or well being of the family. This Demonstration program will enhance

the long term welfare of youth in public housing. Therefore, since the

impact upon the family is beneficial, no further review under this

Order is necessary.

D. Section 102 of the HUD Reform Act

Documentation and Public Access Requirements. HUD will ensure that

documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

upon which assistance was provided or denied. This material, including

any letters of support, will be made available for public inspection

for a five-year period beginning not less than 30 days after the award

of the assistance. Material will be made available in accordance with

the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing

regulations at 24 CFR part 15. In addition, HUD will include the

recipients of assistance pursuant to this NOFA in its Federal Register

notice of all recipients of HUD assistance awarded on a competitive

basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice published in

the Federal Register on January 16, 1992 (57 FR 1942), for further

information on these requirements.)

Disclosures. HUD will make available to the public for five years

all applicant disclosure reports (Form HUD-2880) submitted in

connection with this NOFA. Update reports (also Form HUD-2880) will be

made available along with the applicant disclosure reports, but in no

case for a period less than three years. All reports--both applicant

disclosures and updates--will be made available in accordance with the

Freedom of Information Act (5 U.S.C. 552) and HUD's implementing

regulations at 24 CFR part 15. (See 24 CFR part 15, subpart C, and the

notice published in the Federal Register on January 16, 1992 (57 FR

1942), for further information on these disclosure requirements.)

E. Section 103 of the HUD Reform Act

Section 103 of the HUD Reform Act proscribes the communication of

certain information by HUD employees to persons not authorized to

receive that information during the selection process for the award of

assistance. HUD's regulations implementing section 103 are at 24 CFR

part 4. In accordance with the requirements of section 103, HUD

employees involved in the review of applications and in the making of

funding decisions are restrained by 24 CFR part 4 from providing

advance information to any person (other than an authorized employee of

HUD) concerning funding decisions, or from otherwise giving any

applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted by 24 CFR part 4.

HUD employees involved in the review of applications and in the

making of funding decisions are limited by part 4 from providing

advance information to any person (other than an authorized employee of

HUD) concerning funding decisions, or from otherwise giving any

applicant an unfair competitive advantage. Persons who apply for

assistance in this competition should confine their inquiries to the

subject areas permitted under 24 CFR part 4.

Applicants who have questions should contact the HUD Office of

Ethics at (202) 708-3815 (voice), (202) 708-1112 (TDD). These are not

toll-free numbers. The Office of Ethics can provide information of a

general nature to HUD employees, as well. However, a HUD employee who

has specific program questions, such as whether particular subject

matter can be discussed with persons outside the Department, should

contact his or her Field Office Counsel or Headquarters Counsel for the

program to which the question pertains.

F. Section 112 of the HUD Reform Act

Section 112 of the Housing and Urban Development Reform Act of 1989

(Reform Act) added a new Section 13 of the Department of Housing and

Urban Development Act (42 U.S.C. 3531 et seq.). Section 13 contains two

provisions concerning efforts to influence HUD's decisions with respect

to financial assistance. The first imposes disclosure requirements on

those who are typically involved in these efforts--those who pay others

to influence this award of assistance or the taking of a management

action by the Department and those who are paid to provide the

influence. The second restricts the payment of fees to those who are

paid to influence the award of HUD assistance, if the fees are tied to

the number of housing units received or are based on the amount of

assistance received, or if they are contingent upon the receipt of

assistance. Section 13 are at 24 CFR part 86. Any questions regarding

the rule should be directed to the Office of Ethics, Room 2158,

Department of Housing and Urban Development, 451 Seventh Street, SW.,

Washington, DC 20410-3000. Telephone: (202) 708-3815 (voice); (202)

708-1112 (TDD). These are not toll-free numbers. Forms necessary for

compliance with the rule may be obtained from the local HUD Office.

F. Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the

disclosure requirements and prohibitions of Section 319 of the

Department of Interior and Related Agencies Appropriations Act for

Fiscal Year 1990 (31 U.S.C. 1352) and the HUD implementing regulations

at 24 CFR part 87. These authorities prohibit recipients of federal

contracts, grants or loans from using appropriated funds for lobbying

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the Executive or Legislative Branches of the Federal Government in

connection with a specific contract, grant or loan. The prohibition

also covers the awarding of contracts, grants, cooperative agreements

or loans unless the recipient has made an acceptable certification

regarding lobbying. Under 24 CFR part 87, applicants, recipients and

subrecipients of assistance exceeding $100,000 must certify that no

federal funds have been or will be spent on lobbying activities in

connection with the assistance.

Dated: July 7, 1995.

Joseph Shuldiner,

Assistant Secretary for Public and Indian Housing.

[FR Doc. 95-17147 Filed 7-12-95; 8:45 am]

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