[Federal Register Volume 62, Number 145 (Tuesday, July 29, 1997)]
[Notices]
[Pages 40642-40693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19917]



[[Page 40641]]

_______________________________________________________________________

Part IV

Department of Housing and Urban Development

Department of Health and Human Services
_______________________________________________________________________



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

  Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / 
Notices  

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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;
    (c) Department of Agriculture (USDA):
    (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
    (c) Funding
    (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
    (c) Eligible Participants
    (d) Maximum Grant Amount
    (e) Matching Requirements
    (f) Eligible Activities
    (g) Term of Grant
Part III--Application Process
    (a) Threshold Requirements
    (b) Selection Criteria
    (c) Selection Processing
Part IV--General Grant Requirements
    (a) Grant Administration
    (b) Cost Principles
    (c) Ineligible Contractors
    (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
    (c) Federalism Executive Order
    (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.

(c) Funding

    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.

(c) Eligible Participants

    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

[[Page 40647]]

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.
    (C) An assessment of the current service delivery system as it 
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.
    (C) Resident Contracting and Employment Strategies (maximum points: 
5)
    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;
    (C) The extent of the commitment of the partners (such as, time, 
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.

(c) Selection Processing

(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.
    (C) An example of a curable technical deficiency would be the 
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;
    (C) The co-applicants have requested an ineligible activity; an 
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.

(c) Ineligible Contractors

    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).

(c) Federalism Executive Order

    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.
    (c) Market Research and Evaluation: This section should present 
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

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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.

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[FR Doc. 97-19917 Filed 7-24-97; 1:06 pm]
BILLING CODE 4210-33-C