[Federal Register Volume 60, Number 134 (Thursday, July 13, 1995)]
[Notices]
[Pages 36184-36187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17147]




[[Page 36183]]

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Part II





Department of Housing and Urban Development





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Public Housing Youth Entrepreneurial Demonstration Program; Notice

  Federal Register / Vol. 60, No. 134 / Thursday, July 13, 1995 / 
Notices   

[[Page 36184]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing
[Docket No. FR-3915-N-01]


Public Housing Youth Entrepreneurial Demonstration Program

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice of funding availability.

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SUMMARY: This notice of funding availability announces the Department's 
intention to award a total of $1 million in grants to the Philadelphia 
Housing Authority and the Housing Authority of the City of Los Angeles 
to partner with the Education Training & Enterprise Center (EDTEC) to 
enhance the long-term welfare of youth living in public housing through 
structured Youth Entrepreneurial Demonstration Programs.
    EDTEC is currently under contract with the Department to design, 
develop and implement Youth Entrepreneurial Demonstration Institutes in 
the communities of the Housing Authorities (HAs) referenced above. 
During the development and implementation of these Youth 
Entrepreneurial Demonstration Institutes (Institute or Institutes), the 
Housing Authorities (HAs) named above and EDTEC will seek input and 
cooperation in the form of technical assistance, guidance and 
additional financial resources, to be used for micro enterprise start 
up and operation, from but not limited to the following types of 
organizations: Resident Councils (RCs), Resident Management 
Corporations (RMCs), neighborhood schools, other neighborhood service 
organizations, private corporations, university business school 
students, and volunteer mentors. The Youth Entrepreneurial 
Demonstration Programs that will be provided by the Institutes will 
take participants through initial literacy training, when necessary, 
and continue them through actual business planning, business start up 
and provide the necessary on going business support that can lead to 
self-sufficiency for public housing youth. Throughout the performance 
period of this notice, funds from these grants will be targeted to 
assist participating youths in gaining access to the required 
education, employment and supportive services. This notice provides 
guidelines for the use of these funds and invites comments on the 
demonstration.
    The performance period for this demonstration program will be for 
24 months after award.

DATES: Application due date. Applications must be physically Received 
by the local HUD office having jurisdiction over the proposed project 
on or before 3:00 p.m. (local time) on August 14, 1995. This 
application deadline is firm as to location, date, and hour. In the 
interest of fairness to all competing applicants, HUD shall treat as 
ineligible for consideration any application that is received after the 
deadline.
    Comments due date. August 14, 1995.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410-0500. Communications should refer to the 
above docket number and title. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 7:30 a.m. and 5:30 p.m. 
weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Darlene Cocco, Office of Community 
Relations and Involvement (OCRI), Department of Housing and Urban 
Development, 451 Seventh Street SW., Room 4112, Washington, DC 20410, 
Telephone Number (202) 619-8201. (This is not a toll-free number). 
Hearing- or speech-impaired persons may use the Telecommunications 
Devices for the Deaf (TDD) by contacting the Federal Information Relay 
Service on (202) 708-9300 or 1-800-877-8339) for information on the 
program.
SUPPLEMENTARY INFORMATION:

I. Authority

    The $1 million for the Youth Entrepreneurial Demonstration Program 
is funded from a portion of the $20 million appropriated in the 
Department of Veterans Affairs and Housing and Urban Development and 
Independent Agencies Appropriations Act for 1994 (Pub. L. 103-124, 
approved October 28, 1993) (the 1994 Appropriations Act), under the 
heading ``Severely Distressed Public Housing Projects.'' This grant 
program provides funds for the implementation of Youthbuild programs 
authorized under subtitle D of title IV of the Cranston-Gonzalez 
National Affordable Housing Act, as added by section 164 of the Housing 
and Community Development Act of 1992 (Pub. L. 102-550, approved 
October 28, 1992).

II. Announcement of Demonstration

    This notice announces the Department's intention to award a total 
of $1 million in grants to the Philadelphia Housing Authority and the 
Housing Authority of the City of Los Angeles to partner with the 
Education Training & Enterprise Center (EDTEC) to enhance the long-term 
welfare of youth living in public housing through the Youth 
Entrepreneurial Demonstration Program. Youth is defined as a person 
between 16-24 years old in accordance with Youthbuild Subchapter C of 
Chapter V of Title 24 of the Code of Federal Regulations as amended by 
the new part 585.
    Los Angeles and Philadelphia were selected because the targets for 
this Demonstration are Troubled Housing Authorities, which they are, 
and both cities have the relationship with EDTEC and private partners 
necessary to undertake this project. The Demonstration program will 
also help youth of public housing benefit from section 3 of the Housing 
and Urban Development Act of 1968, as amended.
    In accordance with the requirements of section 470(a) of the 
Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 3542), this 
notice describes the intent of the Youth Entrepreneurial Demonstration 
Program and invites public comment. Any changes made in this 
demonstration as a result of the Department's consideration of public 
comments, and any extension of time for commitment of funds that may be 
necessary because of these changes, will be published in the Federal 
Register.
    The Department will not commit funds for the demonstration until 
after the latest of: (1) The date the Department has considered any 
comments received in response to this notice; (2) September 11, 1995, 
which is 60 days after today's publication date; and (3) the date the 
Department has received and approved a proposal that meets the 
requirements set forth in this notice and any subsequent notice 
announcing changes in the demonstration.

III. Maximum Award

    Under this Demonstration, the Department is making available a 
maximum of $500,000 to the Philadelphia Housing Authority and $500,000 
to the Housing Authority of the City of Los Angeles to carry out this 
Demonstration.

IV. Description of Demonstration

    The Youth Entrepreneurial Demonstration Program is part of HUD's 
comprehensive strategy to enable 

[[Page 36185]]
resident youths ages 16-24 from public housing communities to develop 
and expand their entrepreneurial skills to help them open businesses in 
and out of their communities which will provide opportunities leading 
to self-sufficiency.

Eligible Program Participants

    Eligible program participants must be public housing residents, and 
in accordance with Youthbuild:
    (1) Participants must be very low-income individuals aged 16 to 24 
years, who are high school dropouts. An exception allows for 25 percent 
of the participants to be individuals who do not meet the program's 
income or educational requirements but who have educational needs 
despite attainment of a high school diploma or its equivalency.
    (2) Any eligible individual selected for full-time participation in 
this program may be offered full-time participation for a period of not 
less than 6 months and not more than 24 months unless the Youth 
Entrepreneurial Demonstration Program extends beyond this time frame.
    (3) Programs must be structured so that 50 percent of the time 
spent by participants in the program is devoted to educational services 
and activities. All educational programs and activities supported with 
funds from the demonstration program must be consistent with applicable 
State and local educational standards. Standards and procedures for 
academic credit and certifying educational attainment must be 
consistent with applicable State and local educational standards.
    (4) Wages and benefits, labor standards, and nondiscrimination 
requirements shall apply under this program as they would under the 
Youthbuild program. Housing authorities participating in this 
demonstration program may not be prevented from using funds from non-
Federal sources to increase wages and benefits under the program, if 
appropriate.

Eligible Activities

    Eligible activities under these grants are the following:
    (1) Policy Recommendations. Develop policy recommendations 
regarding the Public Housing Youth Entrepreneurial Demonstration 
Program's operation for HUD and the two public housing authorities to 
further their goals of economic empowerment and drug prevention for 
youth who reside in public and Indian housing.
    (2) Training Curriculum. The PHA will customize and supplement the 
training curriculum provided by EDTEC to meet the needs of the youth in 
their communities.
    (3) Entrepreneurship Course. The PHA will deliver the 
entrepreneurship program provided by EDTEC and customized by the PHA.
    (4) On Site Technical Assistance. As youth put their businesses 
together, the grantee must be able to provide technical assistance to 
youth operated businesses including but not limited to the following 
areas: legal, accounting, marketing, etc. This assistance should be 
available for a sufficient amount of time to insure success.
    (5) Wages, benefits and stipends for participants.
    (6) Mentorship. Develop and implement a mentoring program as an 
integral and critical ongoing component of the Public Housing Youth 
Entrepreneur Demonstration Program. The objective of this effort is to 
afford the participants the opportunity to learn from others' strengths 
and limitations, and to benefit from others' experiences in building 
enterprises which are highly prosperous in creating economic 
development opportunities in the inner cities to help public housing 
youth have an economic alternative to drugs. Housing Authorities (HAs) 
named above and EDTEC will obtain input and cooperation in the form of 
technical assistance, guidance and additional financial resources to be 
used for micro enterprise start up and operation, from but not limited 
to the following types of organizations: Resident Councils (RCs), 
Resident Management Corporations (RMCs), neighborhood schools, other 
neighborhood service organizations, private corporations, university 
business school students, and volunteer mentors.
    (7) Supportive Services. Provide supportive services which will 
enable participants to attend and fully participate in the Institute's 
activities, (i.e. transportation, childcare, stipends, etc.).
    (8) Financing/Loan Fund. Develop a strategy with the Institute for 
establishing a revolving micro loan fund for youth seeking business 
start up funds.
    (9) Clearinghouse. Collect, assemble and develop materials on youth 
entrepreneurship in and out of public housing for the distribution by 
the Office of Community Relations and Involvement (OCRI) Clearinghouse. 
Develop model program briefs on successful youth entrepreneurial models 
emphasizing the ``how to'' of the project and clearly defining the 
obstacles and how they were overcome. Video studies may be done on 
several of the most successful models.
    (10) Reports. Produce quarterly reports that reflect the current 
status of the project. These reports will be used to determine whether 
or not this initiative is on target relative to a specified timetable 
(time to be technically determined later) and meeting the stated 
objective of the institutes and tracking specific outcome measures 
agreed to by HUD and the contractor.
    (11) Final Report/Evaluation. Produce and submit a final report 
which shall be an evaluation of technical assistance, the resources 
required to meet the objective of the institutes, including an 
assessment of the strategies used to implement the project, and any 
recommendations. The contractor shall also make recommendations 
regarding the replication of this project or the development of any 
future entrepreneurial institutes.

Restrictions

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

Reports

    Each PHA receiving a grant shall submit to HUD a quarterly and an 
annual progress report (in a format to be provided by HUD) regarding 
the implementation of this program and the effectiveness of the Youth 
Entrepreneur Demonstration Program in meeting its purpose.

Proposal Requirements

    In order to receive the funding proposed in this notice, each PHA 
must submit a proposal describing its program in detail. Proposals are 
not limited to but must include:
    (1) A copy of the agreement between the PHA, EDTEC and the private 
organization providing mentorship that meets the requirement of the 
program;
    (2) A description of how eligible participants will be recruited;
    (3) An accompanying implementation schedule and budget;
    (4) A description of training and placement activities under the 
demonstration and how training activities will prepare the participants 
for entrepreneurial opportunities;
    (5) A description of resident involvement in the program's planning 
and implementation;
    (6) A description of efforts to provide business development, 
business start-up and business operation for successful program 
participants;
    (7) A description of how program success will be measured, 
describing the 

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baseline indicators against which success will be measured;
    (8) A description of how program participants' supportive service 
needs will be met;
    (9) Certification that participants will be eligible as defined in 
the notice; and
    (10) A training curriculum on the major body of knowledge required 
for a successful youth entrepreneurship development. This curriculum, 
developed by EDTEC and customized by PHA must be approved by HUD.
Other Matters

A. Environmental Impact

    In accordance with 40 CFR 1508.4 of the Council on Environmental 
Quality regulations and 24 CFR 50.19 of the HUD regulations, the 
policies and procedures proposed in this document are determined not to 
have the potential of having a significant impact on the quality of the 
human environment and therefore are exempt from further environmental 
reviews under NEPA.

B. Federalism Executive Order

    The General Counsel, as the Designated Official under Section 8(a) 
of Executive Order 12612, Federalism, has determined that the 
provisions in this Notice of Funding Availability are closely based on 
statutory requirements and impose no significant additional burdens on 
States or other public bodies. This NOFA does not affect the 
relationship between the Federal Government and the States and other 
public bodies or the distribution of power and responsibilities among 
varies levels of government. Therefore, the policy is not subject to 
review under Executive Order 12612.

C. Family Executive Order

    The General Counsel, as the Designated Official under Executive 
Order 12606, the Family, has determined that this Notice of Funding 
Availability will have a significant impact on formation, maintenance 
or well being of the family. This Demonstration program will enhance 
the long term welfare of youth in public housing. Therefore, since the 
impact upon the family is beneficial, no further review under this 
Order is necessary.

D. Section 102 of the HUD Reform Act

    Documentation and Public Access Requirements. HUD will ensure that 
documentation and other information regarding each application 
submitted pursuant to this NOFA are sufficient to indicate the basis 
upon which assistance was provided or denied. This material, including 
any letters of support, will be made available for public inspection 
for a five-year period beginning not less than 30 days after the award 
of the assistance. Material will be made available in accordance with 
the Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. In addition, HUD will include the 
recipients of assistance pursuant to this NOFA in its Federal Register 
notice of all recipients of HUD assistance awarded on a competitive 
basis. (See 24 CFR 12.14(a) and 12.16(b), and the notice published in 
the Federal Register on January 16, 1992 (57 FR 1942), for further 
information on these requirements.)
    Disclosures. HUD will make available to the public for five years 
all applicant disclosure reports (Form HUD-2880) submitted in 
connection with this NOFA. Update reports (also Form HUD-2880) will be 
made available along with the applicant disclosure reports, but in no 
case for a period less than three years. All reports--both applicant 
disclosures and updates--will be made available in accordance with the 
Freedom of Information Act (5 U.S.C. 552) and HUD's implementing 
regulations at 24 CFR part 15. (See 24 CFR part 15, subpart C, and the 
notice published in the Federal Register on January 16, 1992 (57 FR 
1942), for further information on these disclosure requirements.)

E. Section 103 of the HUD Reform Act

    Section 103 of the HUD Reform Act proscribes the communication of 
certain information by HUD employees to persons not authorized to 
receive that information during the selection process for the award of 
assistance. HUD's regulations implementing section 103 are at 24 CFR 
part 4. In accordance with the requirements of section 103, HUD 
employees involved in the review of applications and in the making of 
funding decisions are restrained by 24 CFR part 4 from providing 
advance information to any person (other than an authorized employee of 
HUD) concerning funding decisions, or from otherwise giving any 
applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted by 24 CFR part 4.
    HUD employees involved in the review of applications and in the 
making of funding decisions are limited by part 4 from providing 
advance information to any person (other than an authorized employee of 
HUD) concerning funding decisions, or from otherwise giving any 
applicant an unfair competitive advantage. Persons who apply for 
assistance in this competition should confine their inquiries to the 
subject areas permitted under 24 CFR part 4.
    Applicants who have questions should contact the HUD Office of 
Ethics at (202) 708-3815 (voice), (202) 708-1112 (TDD). These are not 
toll-free numbers. The Office of Ethics can provide information of a 
general nature to HUD employees, as well. However, a HUD employee who 
has specific program questions, such as whether particular subject 
matter can be discussed with persons outside the Department, should 
contact his or her Field Office Counsel or Headquarters Counsel for the 
program to which the question pertains.

F. Section 112 of the HUD Reform Act

    Section 112 of the Housing and Urban Development Reform Act of 1989 
(Reform Act) added a new Section 13 of the Department of Housing and 
Urban Development Act (42 U.S.C. 3531 et seq.). Section 13 contains two 
provisions concerning efforts to influence HUD's decisions with respect 
to financial assistance. The first imposes disclosure requirements on 
those who are typically involved in these efforts--those who pay others 
to influence this award of assistance or the taking of a management 
action by the Department and those who are paid to provide the 
influence. The second restricts the payment of fees to those who are 
paid to influence the award of HUD assistance, if the fees are tied to 
the number of housing units received or are based on the amount of 
assistance received, or if they are contingent upon the receipt of 
assistance. Section 13 are at 24 CFR part 86. Any questions regarding 
the rule should be directed to the Office of Ethics, Room 2158, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-3000. Telephone: (202) 708-3815 (voice); (202) 
708-1112 (TDD). These are not toll-free numbers. Forms necessary for 
compliance with the rule may be obtained from the local HUD Office.

F. Prohibition Against Lobbying Activities

    The use of funds awarded under this NOFA is subject to the 
disclosure requirements and prohibitions of Section 319 of the 
Department of Interior and Related Agencies Appropriations Act for 
Fiscal Year 1990 (31 U.S.C. 1352) and the HUD implementing regulations 
at 24 CFR part 87. These authorities prohibit recipients of federal 
contracts, grants or loans from using appropriated funds for lobbying 

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the Executive or Legislative Branches of the Federal Government in 
connection with a specific contract, grant or loan. The prohibition 
also covers the awarding of contracts, grants, cooperative agreements 
or loans unless the recipient has made an acceptable certification 
regarding lobbying. Under 24 CFR part 87, applicants, recipients and 
subrecipients of assistance exceeding $100,000 must certify that no 
federal funds have been or will be spent on lobbying activities in 
connection with the assistance.

    Dated: July 7, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-17147 Filed 7-12-95; 8:45 am]
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