Notice of Funding Availability Community Partnerships for Resident Uplift and Economic Development

Federal RegisterJul 29, 1997

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

DEPARTMENT OF HEALTH AND HUMAN SERVICES

[Docket No. FR-4240-N-01]

Notice of Funding Availability Community Partnerships for

Resident Uplift and Economic Development

AGENCIES: Sponsors of this interagency public/private competitive grant

announcement are:

(a) Department of Housing and Urban Development (HUD):

(1) Office of the Assistant Secretary for Public and Indian

Housing, Office of Community Relations and Involvement (OCRI);

(2) Office of the Assistant Secretary for Community Planning and

Development, Empowerment Zones and Enterprise Communities (EZ/EC);

(b) Department of Health and Human Services (HHS):

(1) Administration for Children and Families, Office of Community

Services (OCS);

(2) Administration for Children and Families, Office of Family

Assistance (OFA);

(3) Administration for Children and Families, Child Care Bureau

(CCB);

(4) Office of Intergovernmental Affairs;

(1) Cooperative State Research, Education, and Extension Service;

and

(d) Boys & Girls Clubs of America (B&GCA).

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: Several Federal and private agencies are combining over $6

million dollars in program funds and technical assistance in a

consolidated competitive grant initiative entitled Community

Partnerships for Resident Uplift and Economic Development. The purpose

of this initiative is to create neighborhood-based programs to move

families residing in public housing and the adjacent neighborhood from

welfare to self-sufficiency. To accomplish this, the sponsors are

pursuing and linking two (2) primary strategies:

(1) Encourage the creation of employment and business development

opportunities for low-income people through business, physical or

commercial development in the neighborhood; and

(2) Provide an array of supportive services in neighborhood-based

comprehensive service centers (and accessible to persons with

disabilities) to enable participants to successfully make and sustain

the transition to self-sufficiency.

Approximately seven (7) urban, suburban and rural communities of

varying sizes will be selected.

The sponsors of this initiative are three (3) separate Federal

departments, specifically HUD, HHS, and USDA, as well as a major

national private sector organization, the Boys & Girls Club of America

(please see the above list under the heading AGENCIES:). They are

coordinating several existing programs in one integrated solicitation.

It is important to understand that this is a coordinated grant, not a

block grant.

Although there is only one grant announcement (this NOFA) and a

single application package for funding under this initiative, each

sponsoring agency will award and administer the grants through a

coordinating committee composed of program managers from each of the

agencies (the Interagency Agreement reflects this arrangement). Co-

applicants could receive up to two Federal grant awards (HUD and HHS)

and additional funding from the Boys & Girls Club of America for this

collaborative project.

The structure of the initiative reflects this collaborative

approach. Specifically, at a minimum, there must be two co-applicants:

a public housing authority and a community development corporation.

There may be other co-applicants. Co-applicants carry legal

responsibility for the performance of the grant. The co-applicants must

develop partnerships with the residents, one or more local businesses,

and the State Welfare and Child Care departments in order to be

considered for this grant.

An important feature of this initiative is its short duration and

ambitious agenda. The initiative, therefore, is geared to housing

authority communities which already have in place operational

components such as needs assessments and economic development incentive

packages. The intent of this initiative is to integrate existing

resources and focus them on families affected by welfare reform to

achieve the specific outcome of self-sufficiency.

Application Deadline Dates: HUD will serve as the receiving agency

for applications on behalf of all the co-sponsors.

(a) Applications for funding under this NOFA must be physically

received at the correct HUD Headquarters Office on or before September

12, 1997 at 3:00 pm, local time. This application deadline is firm as

to date and hour.

(b) In the interest of fairness to all competing co-applicants, the

Departments will treat as ineligible for consideration any application

that is received after the respective program deadline. Co-applicants

should take this practice into account and make early submission of

their materials to avoid any risk of loss of eligibility brought about

by any unanticipated or delivery-related problems. Delivery of

applications by facsimile (FAX) is not acceptable.

Application Submission Requirements: The Community Partnerships for

Resident Uplift and Economic Development NOFA is required as the formal

submission to apply for funding under this initiative. The application

checklist in Appendix A contains information on all exhibits and

certifications required under this NOFA, as well as additional

guidance. An application package consists of one application per each

co-applicant. Only one application from each co-applicant may be

submitted under this initiative (See Appendix A for each co-applicant's

submission within the consolidated application package). The NOFA may

be obtained from the HUD Resident Initiatives Clearinghouse, telephone

1-800-955-2232.

An original application and two identical copies of the original

application must be received by the deadline at the following address.

It is not sufficient for an application to bear a postage date within

the submission time period. Applications should be addressed to:

Patricia Arnaudo, Senior Program Advisor, U.S. Department of Housing

and Urban Development, Office of Community Relations and Involvement,

451 Seventh Street, SW, Room 4126, Washington, DC 20410-5000.

Applications may also be addressed to La Wanda Young, Administrative

Officer, at the same address.

Program Information Contacts: For questions concerning the

Department of Housing and Urban Development (HUD), contact Patricia

Arnaudo, Office of Community Relations and Involvement, 451 7th Street

SW Washington DC 20410, telephone (202) 619-8201 ext. 4250 or call

HUD's Resident Initiatives Clearinghouse, telephone (800) 955-2232; or

consult the funding cross reference under HUD's Business and Community

Partner HomePage on the Internet's World Wide Web (http://www.hud.gov/

bushome.html): look under funding, then under Public Housing, and then

under OCRI.

For questions concerning the U.S. Department of Health and Human

Services, contact Thelma Woodland, HHS Administration for Children and

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Families, 370 L'Enfant Promenade S.W., Washington D.C. 20447, telephone

(202) 401-5294, fax (202) 401-4687, e-mail: [email protected].

Hearing-or-speech impaired persons may call (800) 877-8339.

(Federal Information Relay Service TTY.) Except for the ``800'' number,

these telephone numbers are not toll-free.

SUPPLEMENTARY INFORMATION:

Table of Contents

Part I--Preamble and Summary Overview

(a) Background

(b) Purpose

(d) Structure

(1) Co-Applicants

(2) Required Partnerships

(3) Coordination

(e) Promoting Comprehensive Approaches to Housing and Community

Development

Part II--Program Specifications

(a) Authority

(b) Definitions

(d) Maximum Grant Amount

(e) Matching Requirements

(f) Eligible Activities

(g) Term of Grant

Part III--Application Process

(a) Threshold Requirements

(b) Selection Criteria

Part IV--General Grant Requirements

(a) Grant Administration

(b) Cost Principles

(d) Freedom of Information Act

(e) Grant Staff Personnel

(f) Grant Agreement

(g) Duplication of Funds

(h) Risk Management

(i) Treatment of Income

(j) Reports and Closeout

Part V--Findings and Certifications

(a) Paperwork Reduction Act

(b) Environmental Impact

(d) Prohibition of Advance Disclosure of Funding Decisions

(e) Section 102 of the HUD Reform Act--Documentation, Access,

and Disclosure

(f) Prohibition Against Lobbying Activities

(g) Intergovernmental Review

(h) Standard Form 424

(i) Standard Form 424A

(j) SF-424B ``Assurances-Non-Construction''

(k) Certification Regarding Environmental Tobacco Smoke

(l) Certification Regarding Drug-Free Workplace Requirements

(m) Catalog of Federal Domestic Assistance Numbers

Appendix A--Application Checklist

Appendix B--Program Elements for the Joint Initiative

Appendix C--Developing a Child Care System

Appendix D--Guidelines of a Business Plan

Appendix E--Poverty Income Guidelines (HHS)

Appendix F--OMB State Single Point of Contact Listing (HHS)

Part I--Summary and Overview

(a) Background

The recent passage of The Personal Responsibility and Work

Opportunity Reconciliation Act of 1996 (Pub. L. 104-73) transformed the

former Aid to Families with Dependent Children (AFDC) program into the

Temporary Assistance to Needy Families Program (TANF). This change

confronts the public housing and surrounding communities with a

profound challenge and opportunity. The role of the Federal government

changed from manager of the welfare system to a partner with the states

in identifying how best to assist recipients to effect their transition

from welfare to work. As a result, it is important that the combined

funding of a variety of discretionary programs from the sponsoring

Federal Departments be used to encourage local partnerships and

innovation in utilizing public and private resources to address complex

problems with the corresponding multiple strategies as contained in

this initiative. This specifically entails the simultaneous

implementation of accessible human services centers, economic

development, and job creation with the primary focus on individual

economic self-sufficiency.

Approximately forty percent (40%) of the families residing in

public housing list AFDC/TANF as their primary source of income. The

rewards of moving this substantial segment of the public housing

residents from welfare dependency to work and self sufficiency have

never been more clear. The potential consequences of failure are

equally clear and threaten not only the economic well being of

individual families, but of entire public housing neighborhoods that

could experience significant losses of rental income as residents

become ineligible for further welfare assistance.

(b) Purpose

(1) This initiative is designed to assist public housing residents

and others in the surrounding neighborhood who are affected by welfare

reform in becoming economically self-sufficient. The co-sponsors

believe that an effective joint welfare-to-work program requires

leveraging of existing resources. Two primary strategies will be

pursued:

(i) Revitalize the public housing neighborhood by attracting public

and private investment for business or commercial development and

create new, full-time, permanent jobs and/or business ownership

opportunities in those businesses and industries for the target

population affected by welfare reform. Co-applicants should be able to

immediately identify existing or new businesses and industries,

especially those in projected job growth areas, that would be willing

to expand their activities and/or relocate into the target area,

pursuant to a package of economic incentives. This will entail

coordination with currently operational economic development

strategies. It will also require in most instances a mix of different

businesses/industries that are willing to design and dedicate a certain

number and type of positions appropriate for the target population.

Among the fastest growing and marketable employment growth areas in

various sizes and types of American communities are property management

and maintenance, education, child care, information systems,

environmental services, and health care. Co-applicants are urged to

focus their job development strategies in these or other documented

local growth areas.

(ii) Support the participating residents in their transition to

self-sufficiency by concentrating supportive services in human service

centers including nearby schools and business/employer facilities,

located within or in proximity to the targeted public housing

development at locations that are highly visible and accessible to

persons with disabilities. It is envisioned that the following

essential supportive services will be available: child care, remedial

and vocational education (permitted to be off-site to take advantage of

local resources), job readiness preparation, transportation and other

health and human resources deemed important to prepare and support the

residents in their transition from welfare to work.

(2) Key elements for this two-pronged approach include:

(i) Implementing larger community-based strategic plans, such as

the Empowerment Zone/Enterprise Community strategies, to optimize the

use of community resources and more effectively achieve the economic

and community revitalization in public housing neighborhoods.

(ii) Leveraging of existing Federal, State and local human,

material, real property and financial resources (including tax

abatements and related financial investment incentives) to support the

revitalization activities.

(iii) Creating a child care system with linkages to other

comprehensive supportive services through a plan addressing consumer

education, utilization of existing resources, and development of a

coordinated network of new and existing child care homes

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and centers and before/after school activities.

(iv) Enhancing or developing appropriate recreational, tutoring,

mentoring and related activities for children and youth located in the

targeted neighborhoods.

(3) This joint initiative is particularly relevant to the

Administration's mission of strengthening the American family and

promoting self-sufficiency. This program has goals of increasing the

access of low-income people to employment-related opportunities,

improving job skills, and improving the integration, coordination, and

continuity of the various services potentially available to families

living in poverty.

Additional information regarding these program ingredients is

contained in Appendices B and C.

HUD and HHS are each making $2.5 million available for award under

this joint initiative.

The Boys & Girls Clubs of America is making up to $500,000

available to selected co-applicants for after school programs and other

youth development activities providing constructive environments for

children of program participants.

The Departments of Housing and Urban Development, Health and Human

Services, and Agriculture will provide technical assistance related to

the implementation of economic and job development strategies related

to EZ/EC communities, child care, employment preparation and

coordinated transportation systems to facilitate the participating

residents' transition from welfare-to-work efforts.

(d) Structure

This is a three year initiative. Grants will be awarded by

September 30, 1997 and are expected to be underway immediately upon

award. Since a comprehensive, integrated strategy is important to

enable families to achieve self-sufficiency, this initiative is

designed to foster collaboration between the public and private

sectors. Toward this end, a number of components and features are

required.

(1) Co-Applicants

Co-sponsored applications are required. The co-applicants will

function as joint administrators to develop, direct, and coordinate

appropriate financial and human resources. Together, they will be

responsible for creating and managing the essential community-based

social and economic architecture to assure successful implementation.

At a minimum, each application must have a Housing Authority (HA)

and Community Development Corporation (CDC) as co-applicants to be

eligible. All HAs (urban, rural, suburban, except Indian Housing

Authorities) and CDCs are eligible. The co-applicants must identify a

grant manager to assure effective administration and resource

integration.

The required co-applicants may also, if they wish, have additional

co-applicants, such as nonprofit and for-profit corporations and public

bodies, including their agencies or instrumentalities.

All co-applicants must have a legal partnership evidenced by an

executed Memorandum of Agreement (MOA) which delineates the partners'

roles and responsibilities for grant administration. Co-applicants are

considered an integral part of the application and cannot be changed

once applications are submitted and under review without disqualifying

an application. If a co-applicant is awarded a grant, it must obtain

HUD and HHS approval prior to dissolving a partnership with a co-

applicant or significantly changing its role. Dissolution of the Joint

Grant is not permitted and is considered grounds for default under the

Grant Agreement.

(2) Required Partnerships

The HA and CDC partners must secure partnerships with appropriate

social, economic, educational, transportation, and employment readiness

agencies in the public and private sector in advance of applying for

the funds under this joint initiative. Through these partnerships, the

public and private service providers will describe the specific

resources to be provided in the targeted community, and the process for

consulting with residents to assure successful implementation of

programs. The specific requirements for each partnership are described

in Part III, Section (a)--Threshold Requirements. Required partnerships

with the HA and CDC include, but are not limited to:

(i) Partnership with Residents: The purpose of this partnership is

to promote customer participation in the planning and implementation of

the project.

(ii) Partnership with Business/Industry: The purpose of these

partnerships is to provide incentives for businesses or industries to

locate in the target area and create new and/or expand existing job

opportunities for residents affected by welfare reform.

(3) Other Partnerships

(i) Boys & Girls Club Partnership: Applications with a partnership

with the local Boys & Girls Club to provide enhanced child care,

afterschool services, or other youth development activities may receive

funding from the Boys & Girls Club of America. This funding will be

provided to the local Boys & Girls Club to support those activities.

(ii) Empowerment Zone/Enterprise Community Partnership: In

addition, special consideration will be given for collaboration with

Empowerment Zone/Enterprise Community Agencies as this type of

partnership can have substantial impact on the number of new jobs

created in these communities.

(4) Coordination

This joint initiative will be coordinated locally through a grant

manager designated by the co-applicants.

A Federal Interagency Coordinating Committee will oversee this

joint initiative at the national level. An Interagency Agreement,

signed by all participating Federal agencies (HUD, HHS, and USDA)

outlines the administrative, legal and fiscal responsibilities agreed

upon by each agency. The Coordinating Committee, constituted by program

officers from each participating agency, will be responsible for the

development and implementation of the grant application review, rating

and selection process, and monitoring of the progress of grants, except

that HHS will assume sole responsibility for any construction or

renovation. The Chair of the Interagency Coordinating Committee will

rotate among the participating agencies. Ultimate responsibility on

grant implementation will be retained by each agency on individual

grants.

(e) Promoting Comprehensive Approaches to Housing and Community

Development

HUD is interested in promoting comprehensive, coordinated

approaches to housing and community development. Economic development,

community development, public housing revitalization, homeownership,

assisted housing for special needs populations, supportive services,

and welfare-to-work initiatives can work better if linked at the local

level. Toward this end, HUD in recent years has developed the

Consolidated Planning process designed to help communities undertake

such approaches.

In this spirit, it may be helpful for co-applicants under this NOFA

to be aware

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of other related HUD NOFAs that have recently been published or are

expected to be published in this fiscal year. By reviewing these NOFAs

with respect to their program purposes and the eligibility of co-

applicants and activities, co-applicants may be able to relate the

activities proposed for funding under this NOFA to the recent and

upcoming NOFAs and to the community's Consolidated Plan.

With respect to community and economic development, the following

related NOFAs have been published: (1) The NOFA for the Community

Outreach Partnership Centers (March 20, 1997, at 62 FR 13506); (2) the

NOFA for the Tenant Opportunity Program--Economic Development and

Supportive Services (June 6, 1997, at 62 FR 31272); and (3) the NOFA

for Historically Black Colleges (May 12, 1997, 62 FR 26180).

To foster comprehensive, coordinated approaches by communities, the

Department intends for the remainder of FY 1997 to continue to alert

co-applicants of HUD's NOFA activity. In addition, a complete schedule

of NOFAs published during the fiscal year appears under the HUD

Homepage on the Internet, which can be accessed at http://www.hud.gov/

nofas.html. Additional steps to better coordinate HUD's NOFAs are being

considered for FY 1998.

To help in obtaining a copy of your community's Consolidated Plan,

please contact the community development office of your municipal

government.

Part II--Program Specifications

(a) Authority

This joint initiative is authorized pursuant to:

(1) The Community Planning and Development section of the 1997 HUD

Appropriations Act entitled, ``An Act Making Appropriations for the

Departments of Veteran Affairs and Housing and Urban Development, and

for sundry independent agencies; boards, commissions, corporations, and

offices for the fiscal year ending September 30, 1997, and for other

purposes'', (P.L. 104-204, approved September 26, 1996), which provides

grants to housing authorities to enable them to establish programs that

increase resident self-sufficiency.

(2) The Community Initiative program is authorized by Sections

681(a) and 681(b)(1) of the Community Services Block Grant Act (42

U.S.C. sections 9910(a) and (b)(1)), as amended. Under the Community

Initiative Program, the HHS Secretary is authorized to make funds

available to support on-going program activities of national or

regional significance to alleviate the causes of poverty in

economically distressed communities with special emphasis on community

and economic development activities.

(b) Definitions

Budget Period: The interval of time into which a grant period of

assistance is divided for budgetary and funding purposes.

Commitment: Documented evidence in the form of a written obligation

(on appropriate letterhead) specifying:

(1) The dollar amount (or value), source of funds or types of

resources promised for the program, and their use in the program;

(2) The date of availability and duration of funds or other types

of resources;

(3) The authority by which the commitment is made (such as board

resolution, grant award notification); and

(4) The signature of the appropriate executive officer authorized

to commit the resources.

Community Development Corporation (CDC): A private, nonprofit

entity, governed by a board consisting of residents of community and

business and civic leaders, which has as a principal purpose planning,

developing, or managing low-income housing or community development

projects (proof of non profit status, i.e., the IRS determination

letter of tax exemption must be included.)

Community Facility: A non-dwelling structure that provides space

for multiple supportive services for the benefit of public housing

residents (as well as others eligible for the services provided)

including but not limited to: child care, after-school activities for

youth, job training, Campus of Learners activities, and English as a

Second Language (ESL) classes.

Construction Projects: For the purpose of this announcement,

construction projects, funded only by HHS, involve land improvements

and development or major renovation of (new or existing) facilities and

buildings, including their improvements, fixtures and permanent

attachments. HHS will have sole responsibility for reviewing

construction-related projects.

Development: Has the same meaning as the term ``Project'' below.

Distressed Community: A geographic urban neighborhood or rural

community of high unemployment and pervasive poverty.

Empowerment Zones/Enterprise Communities: Those communities

designated as such by the Secretaries of Agriculture or Housing and

Urban Development.

Equity Investment: The provision of capital to an organization for

use as working capital or for some other specified purpose in return

for a portion of ownership.

Job Placement: Placing a person in an existing vacant job of a

business, service, or commercial activity not related to new

development or expansion activity.

Project: For an HA's purposes, is the same as ``low-income housing

project'' as defined in section 3(b)(1) of the United States Housing

Act of 1937 (42 U.S.C. 1437 et.)

Public Housing Agency (HA): Any state, county, municipality, or

other governmental entity or public body (or agency or instrumentality

thereof) which is authorized to engage in or assist in the development

and operation of low-income housing.

Resident Council (RC): An incorporated or unincorporated nonprofit

organization or association that consists of persons residing in public

housing and that meets each of the requirements specified in 24 CFR

964.115.

Resident Management Corporation: An entity that consists of

residents residing in public housing and that meets the requirements

specified in 24 CFR 964.120.

Rural: An area that is not within the outer boundary of a

metropolitan entity having a population of 25,000 or more and

contiguous communities with a population density of 100 persons or more

per square mile according to the latest decennial census. Such an area

may be located entirely within one State or made up of contiguous

interstate communities.

Secretary: The Secretary of Housing and Urban Development and/or

the Secretary of Health and Human Services, as appropriate.

Surrounding Neighborhood: A geographic area within a jurisdiction

of a unit of general local government (but not the entire jurisdiction

unless the population of the unit of general local government is less

than 25,000) designated in comprehensive plans, ordinances, or other

local documents as neighborhood, village, or similar geographical

designation, or the entire jurisdiction of a unit of general local

government with a population that is less than 25,000.

Technical Assistance: A problem-solving event generally utilizing

the services of an expert. Such services may be provided on-site, by

telephone, or other means of communication. These services address

specific problems and are intended to assist with the

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resolution of a given problem or set of problems.

Residents of public housing and residents in the surrounding

neighborhood who are below the poverty line and affected by the welfare

reform legislation (including AFDC/TANF recipients, legal immigrants,

disabled SSI recipients, etc.) are eligible to participate in and/or

receive the benefits of this grant. Section 8 tenants with certificates

or vouchers or tenants in Section 8 project-based units are eligible to

participate in and/or receive the benefits of this grant, as long as

they are residing in the surrounding neighborhood as identified in the

application. Eligible participants also include low-income residents in

the neighborhood surrounding the HA project, who are displaced workers;

at-risk teenagers; non-custodial parents, particularly those of

children receiving AFDC/TANF assistance; individuals who are homeless;

and those with developmental disabilities.

Projects proposed for funding must result in direct benefits to

low-income people as defined in the most recent Annual Revision of

Poverty Income Guidelines published by HHS (See Appendix E).

Annual revisions to the Poverty Income Guidelines are normally

published in the Federal Register in February or early March. Grantees

will be required to apply the most recent guidelines throughout the

project period. These revised guidelines may be obtained at public

libraries, Congressional offices, or by writing the Superintendent of

Documents, U. S. Government Printing Office (GPO), Washington, D.C.

20402. No other government agency or privately-defined poverty

guidelines are applicable for the determination of low-income

eligibility for the OCS programs.

Note, however, that low-income individuals granted lawful temporary

resident status under Section 245A or 210A of the Immigration and

Nationality Act, as amended by the Immigration Reform and Control Act

of 1986 (Public Law 99-603) may not be eligible for direct or indirect

assistance based on financial need under this program for a period of

five years from the date such status was granted.

(d) Maximum Grant Amounts

(1) The maximum combined grant awards are estimated to be as

follows:

(i) For housing authorities with 1 to 1,250 units, the maximum

grant award is $400,000 in combined HHS/HUD funds.

(ii) For housing authorities with 1,251 to 10,000 units, the

maximum grant award is $600,000 in combined HHS/HUD funds.

(iii) For housing authorities with more than 10,000 units, the

maximum grant award is $1.2 million in combined HHS/HUD funds.

(2) Note: HUD and HHS funds will be awarded to HAs and CDCs

respectively. Budgets must therefore be broken down to separate HUD/HHS

funds. Amounts may or may not be equal in sum from HUD/HHS.

(e) Matching Requirements

HUD funds must be matched dollar-for-dollar (100%) in either in-

kind (including contributions of personnel, space and/or equipment) or

in cash. HHS funds do not require any matching contribution. If a match

is included, grantees will be held accountable and a disallowance could

result from failure to meet the match. See Part III, Section (a), Item

8 (Leveraging Other Resources) for more detailed information.

(f) Eligible Activities

Please note that grantees will need to establish separate books of

account for any specific funding sources, including the two prime

Federal programs. Under OMB Cost Circulars (A-87, A-21, A-110, and A-

122), grantees may not duplicate funding from (i.e., charge the same

costs to) this joint grant and any other funding sources, although the

costs of budget line items may be shared between the grant and other

funding sources in accordance with allocation criteria in the

applicable OMB Cost Circular. Adequate financial controls must be in

place to assure compliance with these requirements.

While an array of eligible activities, as described below, can be

funded with HHS resources, the activities must be linked directly to

the development of new employment opportunities and/or the preparation

and support of the individuals that will be employed in the new jobs.

``Job creation'' means new jobs that are realized as a result of an HHS

funded project. This includes the development of either new or

expanding business, service, physical and commercial activities. The

jobs created must not have been in existence prior to the start of the

project. Job creation is to be distinguished from job placement

services which are concerned with the placing of a person in an

existing vacant job or business, service or commercial activity not

related to new development or expansion. Following is a description of

eligible activities:

(1) Economic Development activities includes activities essential

to facilitate job creation and economic uplift and provide access to

the skills and resources needed for self-development and business

development. HUD funds, however, cannot be used toward capital costs

for acquisition, construction, and equipment. Economic development

activities may include:

(i) Entrepreneurship training (e.g., literacy training, computer

skills training, business development planning);

(ii) Entrepreneurship development (e.g., entrepreneurship training

curriculum, entrepreneurship courses);

(iii) Job creation activities (i.e., new jobs which result from new

or expanded businesses, services, or commercial activities). For OCS

funding, the jobs created must not have been in existence prior to the

start of the project;

(iv) Micro/Loan fund entails developing a strategy for establishing

a revolving micro loan fund and/or capitalizing a loan fund. A loan

fund (from non-grant funds and/or grant funds) may be included as part

of a comprehensive entrepreneurship training program. HHS/OCS funds may

not be used to establish or expand revolving loan funds;

(v) Developing credit unions entails creating on-site credit

union(s) to provide financial and economic development initiatives to

HA residents. The credit union could support the normal financial

management needs of the community (i.e., check cashing, savings,

consumer loans, micro-businesses and other revolving loans); HUD funds

cannot be used to capitalize a credit union. HHS/OCS funds cannot be

used for any type of credit union activity.

(vi) Employment training and counseling (e.g., job training,

preparation and counseling, job search assistance, job development and

placement, and continued follow-up assistance after job placement); and

(vii) Employer linkage and placement includes collaboration with

area employers to determine job placement and training issues and on-

going follow-through with residents placed in training or full-time

positions; please note that HHS/OCS funds for economic development are

limited to providing job related training for newly created (not

existing) jobs; program components involving training and placement in

existing vacant positions are not eligible for HHS/OCS funding.

(2) Supportive Services entail the provision of services to assist

eligible residents become economically self-sufficient, particularly

families with children where the head of household would benefit from

the receipt of

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supportive services and is working, seeking work, or is preparing for

work by participating in job-training or educational programs. Please

note that HHS funding is restricted to activities related to new job

creation as discussed above, under Economic Development Activities.

Supportive services may include:

(i) Child Care, of a type that provides sufficient hours of

operation and serves appropriate ages as needed to facilitate parental

access to education and job opportunities, and ensure the healthy

development of children. Categories of care include center-based child

care, family child care and in-home child care;

(ii) Employment training and counseling (e.g., job training such as

apprenticeship programs, job preparation and counseling, job search

assistance, job development and placement, and continued follow-up

assistance after job placement);

(iii) Computer-based educational opportunities, skills training,

and economic development activities;

(iv) Education (e.g., remedial education, literacy training,

assistance in the attainment of certificates of high school

equivalency, trade school assistance, two-year college tuition

assistance, youth leadership skills and related activities). Activities

may include peer leadership roles training for youth counselors, peer

pressure reversal, life skills, goal planning;

(v) Youth mentoring of a type that mobilizes a potential pool of

role models to serve as mentors to public housing youth. Mentor

activities may include after-school tutoring, drug abuse treatment, job

counseling or mental health counseling;

(vi) Transportation costs, as necessary to enable any participating

family member to commute to training, supportive services' activities

and/or place of employment, including but not limited to assessing

needs and resources, purchase of transit passes, joint purchase of

vehicles with local transit providers, assistance with vehicle repairs

and maintenance;

(vii) Personal welfare (e.g., family/parental development

counseling, parenting skills training for adult and teenage parents,

substance/alcohol abuse treatment and counseling, and self-development

counseling, etc.);

(viii) Supportive health care services (e.g., outreach and referral

services); and

(ix) Any other services and resources that are determined to be

appropriate in assisting eligible residents.

(3) The employment of service coordinator(s)/case manager(s). For

the purposes of this NOFA, a service coordinator/case manager is any

person who is responsible for one or more of the following functions:

(i) Assessing the training and supportive service needs of eligible

residents;

(ii) Working with community service providers to coordinate the

provision of services and to tailor the services to the needs and

characteristics of eligible residents;

(iii) Monitoring and evaluating the delivery, impact, effectiveness

and outcomes of supportive services under this program;

(iv) Coordinating this program with other self-sufficiency,

education and employment programs;

(v) Performing other duties and functions that are appropriate to

assist eligible public housing and other neighborhood residents to

become self-sufficient;

(vi) Mobilizing other national and local public/private resources

and partnership; and

(vii) Any other services and resources proposed by the co-applicant

and approved by the co-sponsors that are determined to be appropriate

in assisting eligible residents.

(g) Term of Grant/Period of Availability of Funds

With certain exceptions of HHS grant funds, all funds must be

expended within three years (36 months) after the effective date of

grant agreement. Grant implementation progress must be evident and

documented within the first six (6) months of grant award. Grantees

must have completed all but grant close-out activities within 30 months

after the effective date of the grant agreement. Grant terms may not be

extended without substantial good cause (circumstances reasonably

unforeseen and reasonably beyond the grantee's control) and are subject

to approval by HUD and HHS. Concerning HHS grant funds, co-applicants

with projects involving construction only may request project and

budget periods of up to 36 months. Co-applicants for non-construction

projects under these priority areas may request project and budget

periods of up to 17 months.

Part III--Application Process

Each application that is submitted in a timely manner to the HUD

Headquarters Office of Community Relations and Involvement and that

otherwise meets the requirements of this NOFA will be evaluated

competitively on a joint basis by the sponsoring Federal agencies under

the auspices of the Federal Interagency Coordinating Steering Committee

using a point scale.

Co-applicants may submit only one application package under this

NOFA (See Appendix A for each co-applicant's submission within a

consolidated package). The proposed funding can be no more than the

cost limits described in Section I.(e) above.

(a) Threshold Requirements

The following information must be contained in the application as

threshold requirements to be considered essential for rating and

ranking as discussed in Section III.(b) of this NOFA.

(1) Joint Application

The application must be jointly submitted by the HA and the CDC,

and there must be an MOA between the two organizations.

(2) Needs Assessment Report

The application must contain a report on the proposed recipient

population that includes, at minimum, sections containing statistical

or survey information that addresses the economic status of the target

and surrounding area (including a description of local business

conditions), the relative needs of the recipient population in the

affected community(s) to be served, and an identification of economic

strategies and supportive services resources to meet the needs. The

Needs Assessment Report must include supporting data to justify the

economic needs of the development/neighborhood to be served, the

viability of existing businesses in the area and prospective

opportunities for job growth, and identified businesses or industries

which are under-represented in the area that could improve the economic

vitality of the neighborhood.

(3) Grant Implementation Plan

The application must contain a grant implementation plan (See

Appendix A). The plan must be based on a thorough examination of the

public housing and adjacent neighborhood needs and resources and

address a portion of the needs in the Needs Assessment Report. The plan

must, at a minimum, include the following:

(i) A component promoting training, employment and contracting

opportunities through the HA (in accordance with section 3 of the

Housing and Urban Development Act of 1980; see 24 CFR part 135);

(ii) A brief description outlining how the plan conforms to the

applicable state AFDC/TANF and child care plans, community economic

development strategies and job creation efforts.

[[Page 40648]]

(iii) A business plan (can be an existing or a new business plan);

(iv) Specific measurable objectives (such as the objective of 200

residents being employed, 10 resident businesses started, and 250

residents completing GED requirements) to be achieved as a result of

grant activities;

(v) Major milestones and activities necessary to accomplish the

goals;

(vi) A timetable for accomplishing activities;

(vii) A detailed budget;

(viii) A description of how resources and/or services firmly

committed by the co-applicants and other partners are effectively

directed to support the residents self-sufficiency efforts and how they

will be provided for at least three years. To be considered firmly

committed there must be a written agreement to provide the resources.

These resources must be provided for a period of at least three years.

The written agreement may be contingent upon a co-applicant receiving a

grant award;

(ix) Identification of a grant manager, selected by the co-

applicants, to assure effective administration and resource

integration.

(x) Identification of HA development(s) and surrounding

neighborhoods to be assisted under this joint initiative.

(4) Required Partnerships

(i) Partnership with Business/Industry: The application must

contain signed commitments from businesses or industries that intend to

participate describing how these businesses/industries will create new

and/or expand existing job opportunities for residents in the target

area. The following specific features must be included:

(A) Jobs to be created will accommodate the projected number of

AFDC/TANF and other residents affected by welfare reform targeted for

employment. This does not suggest that a single business/industry must

employ only AFDC/TANF residents or absorb all the targeted population.

It is anticipated that a variety of businesses/industries will be

needed to produce the appropriate number and type of employment

opportunities.

(B) The co-grantees will have authority to screen co-applicants for

jobs to be filled by AFDC/TANF recipients and to verify their

eligibility.

(ii) Partnership with Residents: The application must contain a

written commitment to involve residents of the target area in plan

development and implementation, and a corresponding commitment from

appropriate resident groups. The residents may be represented by a

Resident Council, Resident Management Corporation, or applicable

neighborhood association or tenant organization. Also, experience with

such collaborations should be described.

(iii) Partnership with a Boys & Girls Club (if B&GCA funds are

sought):

The application must contain a Memorandum of Agreement (MOA)

between the co-applicants and the appropriate Boys & Girls Club that

will be providing enhanced services to the HA communities. Boys & Girls

Club funds are added on and will be provided to the co-applicants'

awarded funds.

(5) Welfare and Child Care Plan Linkage

The application must provide documentation from the appropriate

State welfare agency that the proposed Grant Implementation Plan is

consistent with the State TANF (welfare) and Child Care Plans or the

State's proposed plans to date. In order to be consistent with these

State plans, the implementation plan must have a performance objective

that would result in a majority of the participants becoming self-

sufficient and working by the deadline for the termination of AFDC/TANF

assistance set by the State. In addition, the co-applicants' plan must

be guided by the goals, objectives and schedules of the State TANF plan

both overall and to the extent that such goals, objectives and

schedules are set for individual families. With respect to time limits,

the co-applicants must, however, comply with the restrictions of this

joint initiative if its requirements conflict with those of the State

Welfare plan. For example, the State Welfare Plan may give the AFDC/

TANF recipients five years to leave public assistance, but this joint

program is to be completed within three years regardless.

(6) Focus on Residents affected by Welfare Reform

The application must provide written evidence from the co-

applicants that all (100%) of area residents to be targeted in the

proposed program are affected by the welfare reform legislation,

including AFDC/TANF recipients, legal immigrants, and disabled SSI

recipients.

(7) Accessible Community Facility(s)

The application must contain evidence (e.g., through a use

agreement) that a preponderance of the proposed activities will be

administered at community facilities in or within easy access of the

specific public housing development(s). These facilities must be

accessible to persons with disabilities. This may include deprogrammed

units, existing community space or off-site facilities, such as a

neighborhood school. If units have to be converted from dwelling use

into a community facility or a facility to be constructed, the co-

applicants must submit a plan for the conversion or construction that

provides for adequate resourcing and a time schedule. Only HHS funds

may be used for construction or renovation. If the proposed community

facility is to be provided by an entity other than the co-applicants,

the application must include an agreement with the proper authority

(owner or operator of the site) for use of the proposed facility. The

community facilities must be operational within nine (9) months of the

grant award. In the case of applications for programs to be implemented

for the primary benefit of residents in housing that is dispersed in a

rural setting, the co-applicants must provide evidence that

participants will have access to transportation to the facility that is

convenient. This community facility requirement also shall not apply to

reverse commute activities that provide transportation to jobs that are

distant from the dwellings of participants.

(8) Leveraging Other Resources (Matching Requirements)

(i) For HUD-sponsored funds, the application (including the

budget, narrative, and other Memoranda of Agreement (MOAs)) must

clearly evidence firm commitments for non-grant resources and services

equal to the HUD grant amount proposed in the application. These

resources and services can include commitments from HUD's Comprehensive

Grant, all other governmental units/agencies of any type and/or private

sources, whether for profit or nonprofit. However, current HUD/Economic

Development and Supportive Services and HHS/Community Services funds do

not qualify as a part of the match. The match amount may consist of a

monetary commitment of funds, such as in-kind or other types of

contributions. The remainder of the one for one match can consist of

personnel, space, and/or equipment.

(ii) For HUD, the following are OMB guidelines for valuing certain

types of in-kind contributions:

(A) The value of volunteer time and services shall be computed at a

rate of five dollars per hour except that the value of volunteer time

and service involving professional and other special skills shall be

computed on the basis of the usual and customary hourly rate paid for

the service in the community where the joint initiative is located;

[[Page 40649]]

(B) The value of any donated material, equipment, building, or

lease shall be computed based on the fair market value at time of

donation. Such value shall be documented by bills of sales, advertised

prices, appraisals, or information for comparable property similarly

situated not more than one-year old taken from the community where the

item or program is located, as appropriate.

(iii) No match is required for HHS funds. However, if a match is

included, third party in-kind contributions are defined as the value of

non-cash contributions provided by non-Federal third parties which may

be in the form of real property, equipment, supplies and other

expendable property, and the value of goods and services directly

benefitting and specifically identifiable to the project or program.

Also, grantees will be held accountable and a disallowance could result

from failure to meet match.

(9) PHMAP Score

An HA co-applicant must provide documentation that its last Public

Housing Management Assessment Program (PHMAP) score included an overall

``B'' average, as well as a ``C'' on Indicator #7, Resident Services

and Community Building, and a ``C'' on Indicator 6(a), Operating

Reserves. (See 24 CFR Part 901 published December 30, 1996.) If the

HA's most recent PHMAP score was based on the prior PHMAP regulation,

the HA must provide documentation that its overall score included an

overall ``B'' average, as well as a ``C'' on Indicator #11, Resident

Initiatives, and at least a ``C'' on Indicator #9, Operating Reserve.

No HA co-applicant designated as ``troubled'' as a result of its most

recent PHMAP score is eligible for this initiative.

(10) Audit Findings and Equal Opportunity

The co-applicants cannot have unresolved, outstanding audit

findings or fair housing and equal opportunity monitoring review

findings or field office (for HUD)/Regional office (for HHS) management

review findings related to discriminatory practices. In addition, the

co-applicants must be in compliance with civil rights laws and equal

opportunity requirements. Co-applicants will be considered to be in

compliance if:

(i) As a result of a formal administrative proceeding, there are no

outstanding findings of non-compliance with civil rights laws or the

co-applicants are operating in compliance with a Federally-approved

compliance agreement designed to correct the area(s) of non-compliance.

(ii) There is no adjudication of a civil rights violation in a

civil action brought against them by a private individual, or the co-

applicants demonstrate that they are operating in compliance with a

court order, or implementing a HUD-approved selection and assignment

plan or compliance agreement, designed to correct the area(s) of non-

compliance.

(iii) There is no deferral of Federal funding based on civil rights

violations.

(iv) HUD has no deferred application processing by HUD under Title

VI of the Civil Rights Act of 1964 942 U.S.C. 2000d-1) (Title VI), the

Attorney General's Guidelines (28 CFR 50.3) and HUD's Title VI

regulations (24 CFR 1.8) and procedures (HUD Handbook 8040.1) or under

Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) (Section

504) and HUD's implementing regulations (24 CFR 8.57);

(v) There is no pending civil rights suit brought against the co-

applicants by the Department of Justice; and

(vi) There is no unresolved finding of discrimination against the

co-applicants issued under section 810 of the Fair Housing Act (24

U.S.C. 3601-3619), as implemented at 24 CFR 103.400.

(11) Automated Capability

The application must provide certification that the program will

include access to on-line computer/internet capability as a means of

communication with HUD on grant matters.

(12) Compliance With Current Programs

The co-applicants must provide certification that they are not in

default at the time of application submission with respect to

applicable grant programs funded by HUD and HHS. Such compliance may be

waived if the co-applicants provide sufficient evidence that any

aspects of non-compliance with prior grants were beyond their control,

such as a natural disaster.

(b) Selection Criteria

Each application for a grant award submitted in a timely manner, as

specified in this NOFA, that otherwise meets the threshold and other

requirements of this NOFA will be evaluated competitively using a point

scale. The number of points that an application receives will depend on

how well it addresses the selection factors described below. HUD and

HHS program components of the applications will be scored on the

following factors:

(1) FACTOR I: Quality of Planning for Community-Building/Economic

Development (maximum points: 40)

(i) Needs Assessment Report (maximum points: 5)

A description of the proposed target neighborhood containing a

socio-demographic profile of the residents, an economic assessment of

the area's business development and growth, and a brief discussion of

the current social problems, available resources and corresponding

service needs of the resident population. Up to five (5) points will be

awarded based on the quality and comprehensiveness of the needs

assessment document and its discussion of existing and potential

businesses and job opportunities in the community. In order to obtain

maximum points, this document must contain statistical data which

provides:

(A) A socio-economic profile of the eligible residents in

relationship to relevant jurisdictional and national data on the

following: AFDC/TANF, SSI, and other fixed income arrangements; in job

training or entrepreneurship and community services programs; in

resident owned businesses; and those employed. Specific information

should be provided on training, contracting and employment through the

HA.

(B) An assessment of the current economic situation in the target

area and within the surrounding community, including current economic

and job development strategies, and their current status and

effectiveness.

relates to the needs of the target population, including the number and

type of services, the location of services, and community facilities

currently in use.

(D) A timetable of the proposed plan to address the needs

identified in the assessment report. The timetable should cover the

three-year period of the grant term and include the planning and

implementation phases of the support services to be provided to the

target population and how such services and objectives can be met in

the limited time frame.

(ii) Grant Plan Implementation Strategies (maximum points: 35)

A description of the co-applicants' proposed plan to address the

goals of the initiative within the target neighborhood within the grant

period. The score on this factor will be based on the viability and

comprehensiveness of the strategies proposed to meet the unmet need in

the following areas: economic development/job creation, including a

business plan, as well as welfare-to-work and other necessary

supportive services and strategies.

[[Page 40650]]

(A) Economic Development/Job Development Strategies (maximum

points: 10)

The score in this factor will be based on the extent and

comprehensiveness of economic development/job development strategies to

be provided. A high score will be received if there is a comprehensive

description of the economic and job development strategies with

accompanying business plan(s) that explains how the co-applicants' plan

provides the additional economic opportunities and creates new jobs for

targeted residents affected by welfare reform in the three-year time

frame of the grant program. Briefly, the plan should describe the key

work tasks and show how the project objectives will be accomplished

including the development of business and creation of jobs for welfare

recipients (AFDC/TANF) during the allowable OCS project period. It is

anticipated that co-applicants responding to this announcement will be

using existing economic development/business plans initiated under

other public or private developmental efforts (e.g., EZ/EC strategies)

rather than attempting to develop a completely new strategy. As a

result, the Business Plan Guideline in Appendix D is provided to assist

the co-applicants in assessing the completeness of the existing plans

rather than the development of new ventures in response to this

initiative.

(B) Supportive Services Strategies (maximum points: 6)

The score in this factor will be based on the comprehensiveness of

services that will be provided. A high score is received if there is a

comprehensive description of how the co-applicants' plan provides the

core services that specifically address the unmet resident needs to

successfully transition from welfare to work AFDC/TANF recipients. In

addition, the plan's description should discuss how the planned

supportive services relate to the existing economic and business

resources of the community, as identified in the needs assessment

report. To receive a high score, co-applicants should include case

management/counseling, job training/development/placement (and/or

business training/development/start-up), child care and transportation.

To obtain maximum points the services must be located in the community

facility(ies) (services may be provided at more than one community

facility) and be available on a 12-hour-day basis or as needed by the

eligible residents.

The score in this factor will be based on the extent to which

residents will achieve self-sufficiency through the HA co-applicant

contracting with resident-owned businesses and through resident

employment. A high score will be awarded where there is documentation

(letter or resolution) describing the HA's commitment to hire or

contract with a substantial number of residents and a narrative

describing the number of jobs or contracts, as well as the training

processes related to the grant implementation plan.

(D) Work Incentive Strategies including Rent Reform and Occupancy

Incentives (maximum points: 4)

The score in this area will be based on the degree to which the co-

applicants have implemented or propose to implement or collaborate with

the State AFDC/TANF agency to implement work incentive initiatives

designed to promote resident self-sufficiency. These work incentives

could include, but are not limited to, rent strategies such as income

disregards, ceiling rents, rent escrows 1, occupancy

preferences for co-applicants who work or are in a self-sufficiency

program and stipends. A high score is received if the co-applicants can

show how various incentives, including but not limited to rent escrows

and/or occupancy preferences for co-applicants who work or who are in a

self-sufficiency program, complement other aspects of the program

implementation plan.

---------------------------------------------------------------------------

\1\ Unlike the FSS program, HUD will not subsidize the rent

escrows so that the PHA or some other source would need to fund the

escrow amounts.

---------------------------------------------------------------------------

(E) Budget Appropriateness and Reasonableness (maximum points: 5)

Funds requested are commensurate with the level of effort necessary

to accomplish the goals and objectives of the project. The application

must include a detailed budget breakdown for each of the budget

categories prescribed in the standardized application forms. The co-

applicants must present reasonable administrative costs for each

component within a 15% cap as a guideline. The estimated cost to the

government of the project must also be reasonable in relation to the

anticipated results.

(F) Reasonableness of the Timetable (maximum points: 5)

The score in this factor will be based on the speed at which the

co-applicants can realistically accomplish the goals of the proposed

program. To receive a high score the co-applicant must demonstrate that

it will make substantial progress within the first six months after

grant execution, including putting staff in place, finalizing

partnership agreements, completing the development of requests for

proposals and achieving other milestones that are prerequisites for

implementation of the program. In addition, the co-applicants must

demonstrate that the proposed timetable for all components of the

proposed program is reasonable considering the size of the grant and

its activities and that it can accomplish its objectives within the 36

months of the grant term.

(2) Factor II: Co-Applicant's Organizational Structure for

Administering Grant Activities (maximum points: 35)

In assessing this factor, the following will be considered:

(i) Proposed Program Staffing (maximum points: 5)

The score in this factor will be based on the extent to which the

co-applicants' proposed staffing in support of the program is suited to

accomplishing the program's objectives in terms of the appropriateness

of staff/consultant skills, assignments, and level of responsibility.

In order to receive a high score, the co-applicants must provide a

comprehensive description of who will provide the services and how the

services identified will be delivered. This should include an

organizational chart, proposed staff/other resources/consultants

proposed, and a discussion of coordination among various services

providers.

(ii) Program Administration (maximum points: 10)

The score in this factor will be based on the soundness of the

proposed management of the program. In order to receive a high score,

the application must contain a comprehensive description of the project

management structure, including the use of a grant manager. The

narrative must provide a description of how any other co-applicants,

subgrantees and other partner agencies relate to the program

administrator as well as the lines of authority and accountability

among all components of the proposed program.

(iii) Fiscal Management (maximum points: 5)

The score in this factor will be based on the soundness of the co-

applicants' proposed fiscal management. In order to receive a high

score the co-applicants must provide a comprehensive description of the

fiscal management structure, including but not limited to budgeting,

fiscal controls and accounting as well as procedures for tracking the

contributions from the participating state and local public and private

partners. The application must explain the staff responsible for fiscal

[[Page 40651]]

management, and the processes and timetable for implementation during

the proposed grant period.

(iv) Program Evaluation (maximum points: 5)

The score in this factor will be based on the quality of the co

applicants' plan to assess the progress and success of the proposed

program from the inception of the program, during program

implementation, as well as at the end of the grant. In order to receive

a high score, the application must contain a comprehensive description

of the program evaluation system, including staff designated for the

program quality controls, performance measures, use of automated

systems for collecting the program data, and timetable for undertaking

this activity. The performance measures must be related to the specific

goals and objectives of the proposed program and could include but not

be limited to the following: the number of residents starting jobs or

entrepreneurship training programs, the number of residents

successfully completing job training, or starting businesses, the

number of residents receiving supportive services (specified by type of

service), the number of community facilities used for welfare to work

and other self-sufficiency/independence efforts, and the number of

community partnerships executed in support of self-sufficiency for

residents.

(v) Track Record (maximum points: 10)

The score in this factor will be based on each of the co-

applicants' prior performance in successfully carrying out grant

programs to assist residents in increasing their self-sufficiency and

in building a community economic base. Co-applicants with no prior

experience in operating programs that foster self-sufficiency and

economic development will receive a score of 0 on this factor.

(A) For the HA co-applicant (up to 5 points), prior performance

will include but not be limited to the following grant programs for the

HA co-applicant: the Family Investment Center Program (FIC), the Youth

Development Initiative under FIC, the Youth Apprenticeship Program, the

Apprenticeship Demonstration Program in the Construction Trades

Program, the Urban Youth Corps Program, the HOPE I Program, the Public

Housing Services Coordinator Program, the Public Housing Drug

Elimination program, the Youth Sports Program. Performance on the

Family Self-Sufficiency Program will be rated as well, whether or not

the PHA has received a grant for service coordination.

(B) For the CDC co-applicant (up to 5 points), prior performance

will include but not be limited to projects previously undertaken that

have provided permanent benefits to the low income population; whether

the co-applicant has demonstrated the ability to implement major

activities in such areas as business development, commercial

development, physical development, or financial services, and the

ability to mobilize dollars from sources such as the private sector

(corporations, banks, etc.), foundations, the public sector, including

State and local government, or individuals. The applicable grant

programs include the Discretionary and Job Opportunities for Low Income

Individuals (Joli) Grants. In order to receive a high score, the co-

applicant must demonstrate compliance and successful implementation of

any applicable grant programs (including those listed above).

(3) Factor III: Partnerships (maximum points: 25)

(i) Overall Partnerships (maximum points: 20)

The score in this factor will be based on the successful

integration of partners into implementation of the proposed joint

initiative. In order to receive a high score, the co-applicants must

provide signed Memoranda of Agreement (MOA)--or equivalent signed

documentation provided that it delineates the responsibilities of each

of the parties and the benefits they will receive--that delineate

specific partnerships related to the components in the grant

implementation plan. In assessing this factor, a number of aspects of

the proposed partnership will be examined including:

(A) The appropriateness of the level of expertise of the partners

related to activities proposed in the application;

(B) The soundness of the division of responsibilities/management

structure of the proposed partnership relative to the expertise and

resources of the partners;

resources, and funds); and

(D) The extent to which the partners, and the partnership as a

whole, addresses a broader level of unmet resident needs; and the

extent to which the addition of the partners provides the ability to

meet needs of the co-applicants that could not otherwise be met without

the partners.

(ii) EZ/EC Partnership (maximum points: 5)

The co-applicants will receive up to 5 points based on the criteria

specified under Factor III(i), above, if they show a partnership with

an EZ/EC organization.

(1) Corrections to Deficient Applications

After the submission deadline date, each application will be

screened to determine whether it is complete, consistent, and contains

correct computations.

(i) Co-applicants will be notified, in writing, of any curable

technical deficiencies in the application that must be completed before

the grant is awarded.

(ii) Curable technical deficiencies relate to items that:

(A) Are not necessary for review under threshold/selection

criteria/ranking factors; and

(B) Would not improve the quality of the co-applicant's program

proposal.

failure of a co-applicant to submit a required assurance,

certification, co-applicant data form, summaries of written resident

comments, incomplete forms or lack of required signatures, appendices

and documentation referenced in the application or a computational

error based on the use of an incorrect number(s) such as incorrect unit

counts.

(iv) An example of a non-curable defect or deficiency would be a

missing SF-424A (Budget Information).

(2) Scoring

Each application that meets the requirements of this NOFA will be

evaluated jointly by the sponsoring Federal agencies using a review

process. Points will be awarded on the basis of the quality and

responsiveness of the application in addressing the selection criteria

for the program. Components will each be evaluated according to the

selection criteria in Part III, Section (b). The two scores will be

averaged and ranked on a national basis. Awards shall be made in ranked

order, until all funds are expended. HUD/HHS will select the highest

ranking applications that can be fully funded. However, in the event

Departments determine that the available funds exceed quality projects,

the Departments will not fund projects that are poor in quality.

(3) Post Selection Administration

(i) All awards will be made to fund fully an application, except as

follows: The co-sponsors may approve an application for an amount lower

than the amount requested, withhold funds after approval, adjust line

items in the proposed grant budget within the amount requested and/or

the grantee

[[Page 40652]]

will be required to comply with special conditions added to the grant

agreement, in accordance with 24 CFR 85.12 (HAs), as applicable, and

the requirements of this NOFA, or where:

(A) HUD/HHS determine that the amount requested for one or more

eligible activities is not supported in the application, and/or is

unreasonable or unnecessary;

(B) The application does not otherwise meet applicable cost

limitations established for the program;

activity proposed for funding does not qualify as an eligible activity

and can be separated from the budget;

(D) Insufficient amounts remain in that funding round to fund the

full amount requested in the application and HUD/HHS determines that

partial funding is a viable option; or

(E) For any other reason where good cause exists.

(ii) Grantees are required to attend a HUD/HHS sponsored training

specifically designated for grantees under this program. The sponsoring

Departments intend to offer this training session within four months of

grant award.

Part IV--General Grant Requirements

In addition to the requirements set forth in this NOFA, grantees

are responsible for ensuring that grant funds are administered in

accordance with all applicable laws and regulations, OMB circulars,

fiscal and audit controls, grant agreements, grant special conditions,

the grantee's approved budget (SF 424A), and supporting budget

narrative, plan and activity timetable. Applicable Federal laws include

but are not limited to those related to fair housing and equal

opportunity and the following:

(a) Grant Administration

The policies, guidelines, and requirements of the following apply

to this NOFA:

(1) For HAs and any governmental co-applicants/subgrantees/

partners: 24 CFR Part 85, OMB Circular A-87 and 24 CFR Part 44;

(2) For CDCs or other private non-profit grantees or co-applicants/

sub-grantees/partners: 45 CFR Part 74 and OMB Circulars A-110 or A-133;

and

(3) For-profit participants: 24 CFR Part 84 and Federal Acquisition

Requirements (FAR).

(b) Cost Principles

The cost principles of OMB Circulars A-87, A-21, A-110 or A-122, as

applicable to the specific entity incurring the cost, apply to co-

applicant grantees and subgrantees funded under this NOFA.

The provisions of 24 CFR Part 24 (HA's) and 45 CFR Part 76 (CDC's)

relating to the employment, engagement of services, awarding of

contracts, or funding of any contractors or subcontractors during any

period of debarment, suspension, or placement in ineligibility status

apply to those co-applicant grantees and sub-grantees funded under this

NOFA.

(d) Freedom of Information Act

Applications submitted in response to this NOFA are subject to

disclosure under the Freedom of Information Act (FOIA), 5 U.S.C. 552.

(e) Grant Staff Personnel

For HUD grant purposes, all persons or entities compensated by

grants for services provided under a grant must meet all applicable

personnel or procurement requirements and shall be required, as a

condition of employment, to meet relevant State, local government,

insurance, training, licensing, civil rights, or other similar

standards and requirements.

(f) Grant Agreements

After an application has been approved, each co-applicant shall

enter into a Grant Agreement setting forth the amount of the grant and

its applicable terms, conditions, financial controls, payment mechanism

and special conditions, including sanctions for violation of the

agreement. Except as otherwise specified in the Grant Agreement, the

co-applicant's entire application, including but not limited to the

budget, timetable, and narrative will be incorporated in the Grant

Agreement.

(g) Duplication of Funds

Under OMB Cost Circulars (A-87, A-21, A-110, and A-122), grantees

may not duplicate funding from (i.e., charge the same costs to) this

joint grant and any other funding sources, although the costs of budget

line items may be shared between the grant and other funding sources in

accordance with allocation criteria in the applicable OMB Cost

Circular. Adequate financial controls must be in place to assure

compliance with these requirements.

(h) Risk Management

Co-Grantees are required to implement, administer and monitor

programs so as to minimize the risk of fraud, waste, abuse, and

liability for losses from adversarial legal action. The following

requirements address these concerns:

(1) Insurance/Indemnification

Each grantee shall obtain adequate insurance coverage to protect

itself against any potential liability arising out of the eligible

activities under this part.

(2) Failure to Implement Program

If the grant plan, approved budget, and timetable, as described in

the approved application, are not operational within 90 days of the

grant agreement date, the grantee must report by letter to the

designated grant monitors in HUD/HHS the steps being taken to initiate

the plan and timetable, the reason for the delay, and the expected

starting date. Any timetable revisions that resulted from the delay

must be included. The designated monitors will determine if the delay

is acceptable, approve/disapprove the revised plan and timetable, and

take any additional appropriate action.

(3) Default

HUD/HHS may impose sanctions, subject to notice and the co-grantee

opportunity to respond/correct as described in the grant agreement if

the co-grantees:

(i) Are not complying with the requirements of this part or any

other Federal laws or requirements;

(ii) Fail to make satisfactory progress toward their program goals,

as specified in their plan and reflected in performance or financial

status reports or through other information available to the co-

sponsors;

(iii) Do not establish procedures that will minimize the time

lapsing between drawdowns and disbursements of funds (45 CFR

74.21(b)(5));

(iv) Do not adhere to grant agreement requirements or special

conditions;

(v) Propose substantial plan changes to the extent that, if

originally submitted, the application would not be selected for

funding;

(vi) Engage in improper award or administration of grant

subcontracts;

(vii) Do not submit reports; or

(viii) File false certification.

(4) Sanctions

The sanctions that may be imposed include but are not limited to:

(i) Temporarily withhold cash payments pending correction of the

deficiency by the grantees or subgrantee(s);

(ii) Disallow all or part of the cost of the activity or action not

in compliance;

(iii) Wholly or partly suspend or terminate the current award for

the co-grantees' program;

[[Page 40653]]

(iv) Require that some or all of the grant amounts be remitted to

HUD and/or HHS;

(v) Condition a future grant(s) and/or elect not to provide future

grant funds to the co-grantees until appropriate actions are taken to

ensure compliance;

(vi) Withhold future awards for the program; or

(vii) Take any other remedies that may be legally available.

(i) Treatment of Income

For policies pertaining to treatment of income for public housing

and Section 8 families, see 24 CFR, Part 5, Subpart F.

(j) Reports and Closeout

(i) Semi-Annual Reports

Each grantee (HA/CDC) shall submit to HUD/HHS, as applicable, a

semi-annual progress report and a Form 269 (CDC) in a format prescribed

by HUD and HHS that indicates program expenditures and measures

performance in achieving program milestones and goals. No grant

payments will be approved for grantees with overdue progress reports.

(ii) Final Reports and Closeout

As part of a grant closeout process, each joint grantee shall

submit to HUD and HHS a final report in a format prescribed by the

departments that reports final program expenditures and measures

performance in achieving program goals.

(iii) Audits and Closeouts

HUD/HHS will make maximum use of audits required under 24 CFR part

44 and 45 (HUD); 45 CFR 74.26 and 74.71 (HHS), as applicable in

conducting grant close-outs. At grant close-out, HUD grantees shall

make the last audit available to HUD with the final report. For OCS

grantees, a final audit report covering the total grant period will be

due in compliance with the requirements of OMB Circular No.

A-133.

Part V--Findings and Certifications

The following findings and certifications apply to this Initiative:

(a) Paperwork Reduction Act

The information collection requirements contained in this Notice

have been approved by the Office of Management and Budget under the

Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), and assigned OMB

control numbers 2577-0211 (the ED/SS Program) and 0970-0062 (HHS/OCS

Program). An agency may not conduct or sponsor, and a person is not

required to respond to, a collection of information unless the

collection displays a valid control number.

(b) Environmental Impact

The HUD portions of this NOFA do not direct, provide for assistance

or loan or mortgage insurance for, or otherwise govern or regulate real

property acquisition, disposition, leasing, rehabilitation, alteration,

demolition, or new construction, or establish, revise or provide for

standards for construction or construction materials, manufactured

housing, or occupancy. Accordingly, under HUD's regulations in 24 CFR

50.19 (c) (l), the portion of this NOFA pertaining to HUD assistance is

categorically excluded from environmental review under the National

Environmental Policy Act of 1969, as amended (42 U.S.C. 4321).

The General Counsel, as the Designated Official under Section 6(a)

of Executive Order 12612, Federalism, has determined that the policies

contained in this notice will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

Federal government and the States, or on the distribution of power and

responsibilities among the various levels of government. As a result,

the notice is not subject to review under the Order. This notice

announces the availability of funds to HAs and CDCs to provide economic

development opportunities and supportive services to assist residents

of public housing and other low-income families in the surrounding

neighborhood to become economically self-sufficient, and, thus could

benefit families significantly.

(d) Prohibition of Advance Disclosure of Funding Decisions

HUD's regulation implementing Section 103 of the Department of

Housing and Urban Development Reform Act of 1989, codified as 24 CFR

part 4, subpart B, applies to the funding competition announced today.

The requirements of the rule continue to apply until the announcement

of the selection of successful co-applicants. All persons including HUD

and other Federal employees involved in the review of applications and

in the making of funding decisions are prohibited 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 co-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. Co-applicants or Federal

employees who have ethics related questions should contact the HUD

Ethics Law Division (202) 708-3815. (This is not a toll-free number.)

(e) Section 102 HUD Reform Act--Documentation and Public Access

Requirements

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (HUD Reform Act) and the final rule codified at 24

CFR part 4, subpart B, contain a number of provisions that are designed

to ensure greater accountability and integrity in the provision of

certain type of assistance administered by HUD. On January 14, 1992 (57

FR 1942), HUD published a notice that also provides information on the

implementation of Section 102. The documentation, public access, and

disclosure requirements of section 102 are applicable to assistance

awarded under this NOFA as follows:

(i) Documentation and public access requirements

HUD/HHS 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 5-year period beginning not less

than 30 days after the award of the assistance. Material will be made

available not less than 30 days after the award of the assistance.

Materials 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/HHS will include the recipients of

assistance pursuant to this NOFA in its Federal Register notice of all

recipients of assistance awarded on a competitive basis.

(ii) Disclosures

HUD will make available to the public for five years all co-

applicant disclosure reports (HUD Form 2880) submitted in connection

with this NOFA. Updated reports (also Form 2880) will be made available

along with the co-applicant disclosure reports, but in no case for a

period less than three years. All reports--both co-applicant disclosure

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.

[[Page 40654]]

(f) Prohibition Against Lobbying Activities

Co-applicants for funding under this NOFA are subject to the

provisions of Section 319 of the Department of Interior and Related

Agencies Appropriation Act for Fiscal Year 1991, 31 U.S.C. Section 1352

(the Byrd Amendment) and to the provisions of the Lobbying Disclosure

Act of 1995, P.L. 104-65 (December 19, 1995). The Byrd Amendment, which

is implemented in regulations at 24 CFR part 87, prohibits applicants

for Federal contracts and grants from using appropriated funds to

attempt to influence Federal Executive or legislative officers or

employees in connection with obtaining such assistance, or with its

extension, continuation, renewal, amendment or modification. The Byrd

Amendment applies to the funds that are the subject of this NOFA.

Therefore, co-applicants must file a certification stating that they

have not made and will not make any prohibited payments and, if any

payments or agreement to make payments of nonappropriated funds for

these purposes have been made, a form SF-LLL disclosing such payments

must be submitted. The certification and the SF-LLL are included in the

application package. The Lobbying Disclosure Act of 1995, P.L. 104-65

(December 19, 1995), which repealed Section 112 of the HUD Reform Act

and resulted in the elimination of the regulations at 24 CFR Part 86,

requires all persons and entities who lobby covered Executive or

Legislative Branch officials to register with the Secretary of the

Senate and the Clerk of the House of Representatives and file reports

concerning their lobbying activities.

Co-applicants must provide a certification concerning Lobbying.

Prior to receiving an award in excess of $100,000, co-applicants shall

furnish an executed copy of the lobbying certification. Co-applicants

must sign and return the certification with their applications.

Co-applicants must fill out, sign and date form SF-LLL, Disclosure

of Lobbying Activities, if applicable.

(g) Intergovernmental Review

The HHS programs are covered under Executive Order 12372,

``Intergovernmental Review of Federal Programs.'' Under the Order,

States may design their own processes for reviewing and commenting on

proposed Federal assistance under covered programs. The HHS program is

also subject to 45 CFR Part 100, ``Intergovernmental Review of

Department of Health and Human Services Programs and Activities.''

All States and Territories except Alabama, Alaska, American Samoa,

Colorado, Connecticut, Hawaii, Idaho, Kansas, Louisiana, Massachusetts,

Minnesota, Montana, Nebraska, New Jersey, Oklahoma, Oregon, Palau,

Pennsylvania, South Dakota, Tennessee, Vermont, Virginia and Washington

have elected to participate in the Executive Order process and have

established Single Points of Contact (SPOCs). Co-applicants from these

twenty-three jurisdictions need take no action regarding E.O. 12372.

Co-applicants should contact their SPOCS as soon as possible to alert

them of the prospective applications and receive any necessary

instructions. Co-applicants must submit any required material to the

SPOCs as soon as possible so that the program office can obtain and

review SPOC comments as part of the award process. It is imperative

that the co-applicant submit all required materials, if any, to the

SPOC and indicate the date of this submittal (or the date of contact if

no submittal is required) on the Standard Form 424, item 16a.

Under 45 CFR 100.8(a)(2), a SPOC has 60 days from the application

deadline date to comment on proposed new or competing continuation

awards.

SPOCs are encouraged to eliminate the submission of routine

endorsements as official recommendations. Additionally, SPOCs are

requested to clearly differentiate between mere advisory comments and

those official State process recommendations which they intend to

trigger the ``accommodate or explain'' rule.

When comments are submitted directly to ACF, they should be

addressed to: Department of Health and Human Services, Administration

for Children and Families, Division of Discretionary Grants, 370

L'Enfant Promenade, SW., Mail Stop 6C-462, Washington, DC 20447.

(h) Standard Form 424

The application must contain a Standard Form 424 ``Application for

Federal Assistance'' (SF-424) for each co-applicant. The SF 424 must be

signed by an official of the CDC and HA applying for the grant who has

authority to obligate the organization legally.

(i) Standard Form 424A

The application must contain Standard Form 424A ``Budget

Information--Non Construction Programs'' (SF 424A) for each co-

applicant.

(j) SF-424B ``Assurances-Non-Construction''

All co-applicants, whether or not the project involves

construction, must file the Standard Form 424B, ``Assurances: Non-

Construction Programs.'' Co-applicants must sign and return the

Standard Form 424B. The SF 424B must be signed by an official of the

CDC and HA applying for the grant who has authority to obligate the

organization legally.

(k) Certification Regarding Debarment, Suspension, and Other

Responsibility Matters--Primary Covered Transactions

Co-applicants must make the appropriate certification. By signing

and submitting the applications, co-applicants are providing the

certification regarding Debarment, Suspension, and Other Responsibility

Matters--Primary Covered Transactions and need not mail back the

certification with their application.

(l) Certification Regarding Environmental Tobacco Smoke

CDC Co-applicants must make the appropriate certification of their

compliance with the Pro-Children Act of 1994. By signing and submitting

the applications, co-applicants are providing the certification

regarding environmental tobacco smoke and need not mail back the

certification with their applications.

(m) Certification Regarding Drug-Free Workplace Requirements

OCS applicants must fill out and return this form.

(n) Catalog of Federal Domestic Assistance Numbers

The Catalog of Federal Domestic Assistance Number for the HUD

Economic Development and Supportive Services Program is 14.853; and for

the HHS Community Services is 93.570.

Dated: July 23, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and Indian Housing, Department of

Housing and Urban Development.

Donald Sykes,

Director, Office of Community Services, Department of Health and Human

Services.

Appendix A

Application Checklist

Threshold Requirements

The application MUST address the following requirements in order

for it to be accepted for further consideration.

[[Page 40655]]

Application

page

number(s)

1. Joint Application (HA-CDC MOA).......................... __________

2. Needs Assessment........................................ __________

3. Grant Implementation Plan............................... __________

Business Plan............................................ __________

4. Partnerships............................................ __________

Business/Industry........................................ __________

Residents................................................ __________

Welfare and Child Care Plans............................. __________

Boys & Girls Club (optional)............................. __________

Other (optional)......................................... __________

5. Evidence that 100% of Target Participants are Affected

by Welfare Reform......................................... __________

6. Accessible Community Facility (including Use Agreement). __________

7. Leveraging of Other Resources........................... __________

8. Compliance with Current Programs........................ __________

9. Evidence of Automated Capability........................ __________

10. Audit Findings and Equal Employment Opportunity

Certifications............................................ __________

11. PHMAP Score Requirements (HA only)..................... __________

Selection Factors

HA and CDC components will each be rated and scored on the

following factors.

Application

page

number(s)

1. Quality of Planning for Community Building/Economic

Development:

A. Economic/Job Development.............................. __________

B. Supportive Services................................... __________

C. Resident Contracting/Employment....................... __________

D. Work Incentives....................................... __________

E. Budget Appropriateness/Reasonableness................. __________

F. Reasonableness of Timetable........................... __________

2. Co-Applicant Capability/Organizational Structure for

Grant Administration:

A. Staffing.............................................. __________

B. Program Administration................................ __________

C. Fiscal Management..................................... __________

D. Program Evaluation.................................... __________

E. Track Record.......................................... __________

3. Resident and Other Partnerships:

A. Overall Partnerships.................................. __________

B. EZ/EC Partnerships.................................... __________

Required certifications and assurances HA CDC

1. Application Form (SF 424 and 424A)............. ______ ______

2. Proof of CDC's non-profit status evidenced by

a copy of the CDC's listing in the Internal

Revenue Services (IRS) most recent list of tax-

exempt organizations described in section

501(c)(3) of the IRS Code, or by a copy of a

currently valid IRS tax-exemption certificate,

or by a copy of the Articles of Incorporation

bearing the Seal of the State in which the

corporation or association is domiciled; And

proof of CDC status evidenced by providing the

purposes section of the Articles of

Incorporation and a list of the current Board

of Directors' names, titles and addresses,

copies of resumes of the project director and

other key management team members, written

agreements, coordination with AFDC/TANF, etc.

and Single Point of Contact comments (where

applicable).................................... ________ ________

3. Assurances for Non-Construction Programs (424B) ________ ________

4. a. Certification for a Drug-Free Workplace

(HUD-2880)..................................... ________ ________

b. Lobbying Disclosure Update Report (HUD-2880). ________ ________

c. Disclosure of Lobbying Activities (SF-LLL)... ________ ________

d. Certification Regarding Drug-Free Workplace

Requirements................................... ________ ________

e. Certification Regarding Lobbying, Debarment,

Suspension, etc., and Drug-Free Workplace

Requirements................................... ________ ________

Appendix B

Program Elements for the Joint HHS/HUD Initiative

Community Partnerships for Economic Uplift and Economic Development

A. Program Elements

Following is a description of key program elements in this joint

initiative.

1. Comprehensive Service Center

The comprehensive human service center is the focal point of

this initiative. It is a neighborhood-based facility located within

or adjacent to a public housing facility. It contains an array of

redeployed public and private resources to support the housing

residents, AFDC/TANF recipients and other low-income individuals in

the area. It provides social, health, education, vocational,

employment readiness, child care, transportation and other

appropriate services and resources important to assisting residents

and others achieve self sufficiency.

2. Job Creation/Employment Readiness

In order to induce a business/industry to locate in the public

housing community setting it is essential that the target

population, that will constitute the labor pool, be prepared to

compete for and effectively function in the available positions

offered by the host businesses/industries. Important to the adequate

preparation of the resident population is a clear understanding of

the businesses'/industries' labor capability requirements. These

should be articulated in an education and performance standards

document that stipulates what preparatory training the industry

requires for an eligible employment pool. The public agency would be

responsible for providing the necessary training and certifying the

readiness of the candidates for employment.

There is a critical need for a highly focused and intensive

remedial and vocational education and employment readiness capacity

to meet the demands for qualified labor by the specific industry.

This often requires upgrading existing remedial and vocational

education training to more effectively address the education and

performance standards. In addition, it requires coordination with a

variety of support services.

3. Incentive Package

In order to attract appropriate businesses and industries the

cities will have to provide an incentive package. The incentive

package could include:

Cost or rent free land/buildings to locate operations;

[[Page 40656]]

Local and state tax abatement packages related to land,

equipment, products, utilities, etc.;

Assistance in developing and/or renovating the physical

facilities and the affected transportation arteries and systems;

Assistance in obtaining low interest loans to purchase

equipment and inventory;

Increased law enforcement to ensure the safety of the

employees and the property;

Preparation and support of the resident work-force

through a comprehensive education/service center on or adjacent to

the work site;

Provision of public/private salary support packages

involving the use of TANF/child care and other program resources as

well as Labor's employment and training funds.

4. Entrepreneurial Development

The comprehensive service delivery centers should provide

directly or through linkage to the Small Business Administration's

Small Business Development Centers assistance to residents and local

organizations interested in entrepreneurial efforts, such as,

establishing small businesses in the area. The assistance could

focus on financing, marketing , production, organization,

engineering and technical problems and feasibility studies as well

as venture capital formation. The business development could be

designed to support a broad variety of individual and corporate

needs such as child care, transportation, grocery stores, grounds

and equipment maintenance, restaurants, cleaners and other related

services.

5. Leveraging Resources

The participating communities would be expected to dedicate a

variety of public and private human, financial and material

resources to implement the comprehensive service centers and the

economic development and revitalization efforts.

In order to effectively package the economic development plan it

will be essential that the community leverage considerable public

and private financial resources and taxes and other incentives to

induce significant private investment. This will require close

coordination with existing economic development strategies and

tactical efforts with the city and county governments as part of an

Empowerment Zone and Enterprise Community effort or similar venture.

Appendix C

Developing a Child Care System

Child Care is an essential component of economic and community

development. Parents cannot seek and maintain employment or training

unless they have adequate child care arrangements for their

children. In order to meet the needs of housing residents, the Child

Care Bureau is urging housing authorities to create systems of

quality child care that are readily accessible and affordable. Below

are some key elements to creating child care systems.

A. Needs Assessment

In order to determine the appropriate level of need in the

community, co-applicants should conduct a needs assessment of child

care demand and supply. Such an assessment should be conducted in

consultation with an expert on low-income child care needs such as a

local Child Care Resource and Referral Agency, or a non-profit

organization. The assessment would evaluate the services currently

available in close proximity to the housing site, child care

information resources, the training opportunities for residents

entering or currently employed in child care, and the corresponding

demand. Assessments of demand and supply should include breakdowns

by age, type of care, and hours of care.

B. Plan

A plan should then be developed to address the findings of the

needs assessment. This plan should include what type of services or

job opportunities co-applicants will provide or help coordinate, to

meet need. The plan should outline ways to provide child care

consumer education, linkages with other services, training

opportunities and provider support, jobs and direct services in

either centers or family day care homes. All planned services must

meet State, county, and city regulatory requirements to ensure that

children are in safe and healthy child care environments. It is

suggested that co-applicants also consult an expert to develop a

plan, for instance before completing a use agreement; there is a

need to assure the dedicated space will comply with child care

licensure and other needs.

C. Coordination

Coordination with the State Child Care Administrator is

necessary to be able to secure funding for services, ensure the

satisfaction of health and safety standards, and to be eligible for

technical assistance. The co-applicant should obtain commitment from

the State Child Care Administrator, and work closely with state and

local agencies to conduct the needs assessment and develop the plan.

Appendix D

Guidelines of a Business Plan

The business plan is an essential component to determine the

feasibility of the economic development/job development ventures

being proposed under this joint initiative and will be rated and

ranked under that component of the grant implementation plan. As

noted previously in this announcement, it is assumed that the

business plan or plans that will be included in response to this

solicitation will have been developed previously as part of other

public or private development ventures. The specific business plan

must address all the relevant elements as follows:

(a) The Business and Its Industry: This section should describe

the nature and history of the business and provide some background

on its industry.

(b) Products and Services: This section deals with the

following:

(i) Description: Describe in detail the products or services to

be sold;

(ii) Proprietary Position: Describe proprietary features if any

of the product, e.g., patents, trade secrets; and

(iii) Potential: Features of the product or service that may

give it an advantage over the competition.

sufficient information to show that the product or service has a

substantial market and can achieve sales in the face of competition.

(d) Marketing Plan: The marketing plan should detail the

product, pricing, distribution, and promotion strategies that will

be used to achieve the estimated market share and sales projections.

The marketing plan must describe what is to be done, how it will be

done and who will do it. The plan should address the following

topics--Overall Marketing Strategy, Packaging, Service and Warranty,

Pricing, Distribution and Promotion.

(e) Design and Development Plans: If the product, process or

service of the proposed venture requires any design and development

before it is ready to be placed on the market, the nature and extent

and cost of this work should be fully discussed. The section should

cover items such as Development Status and Tasks, Difficulties and

Risks, Product Improvement and New Products, and Costs.

(f) Manufacturing and Operations Plan: A manufacturing and

operations plan should describe the kind of facilities, plan

location, space, capital equipment and labor force (part and/or full

time and wage structure) that are required to provide the company's

product or service.

(g) Management Team: The management team is the key in starting

and operating a successful business. The management team should be

committed with a proper balance of technical, managerial and

business skills, and experience in doing what is proposed. This

section must include a description of: the key management personnel

and their primary duties; compensation and/or ownership; the

organizational structure; Board of Directors; management assistance

and training needs; and supporting professional services.

(h) Overall Schedule: A schedule that shows the timing and

inter-relationships of the major events necessary to launch the

venture and realize its objectives. Prepare, as part of this

section, a month-by-month schedule that shows the timing of such

activities as product development, market planning, sales programs,

and production and operations. Sufficient detail should be included

to show the timing of the primary tasks required to accomplish each

activity.

(i) Critical Risks and Assumptions: The development of a

business has risks and problems and the Business Plan should contain

some explicit assumptions about them. Accordingly, identify and

discuss the critical assumptions in the Business Plan and the major

problems that will have to be solved to develop the venture. This

should include a description of the risks and the critical

assumptions relating to the industry, the venture, its personnel,

the product's market appeal, and the timing and financing of the

venture.

(j) Community Benefits: The proposed project must contribute to

economic, human and community development within the

[[Page 40657]]

project's target area. A section that describes and discusses the

potential economic and non-economic benefits to low-income members

of the community must be included as well as a description of the

strategy that will be used to identify and hire individuals being

served by public assistance programs and how linkages with community

agencies/organizations administering the AFDC/TANF program will be

developed.

(k) The Financial Plan: The Financial Plan is basic to the

development of a Business Plan. Its purpose is to indicate the

project's potential and the timetable for financial self-

sufficiency. In developing the Financial Plan, the following

exhibits must be prepared for the first three years of the business'

operation:

(i) Profit and Loss Forecasts--quarterly for each year;

(ii) Cash Flow Projections--quarterly for each year;

(iii) Pro Forma Balance Sheets--quarterly for each year.

Also, additional financial information for the business

operation that must be included is an initial Source and Use of

Funds Statement for project funds and a brief summary paragraph

discussing any further capital requirements and their sources.

Applications which propose to use the requested HHS/OCS funds to

make an equity investment or a loan to a business concern, including

a wholly-owned subsidiary, or to make a sub-grant with a portion of

the HHS/OCS funds, must include a written agreement between the

community development corporation and the recipient of the grant

funds.

BILLING CODE 4210-33-P

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[FR Doc. 97-19917 Filed 7-24-97; 1:06 pm]

BILLING CODE 4210-33-C

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.