[Federal Register Volume 67, Number 102 (Tuesday, May 28, 2002)]
[Notices]
[Pages 37274-37309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13036]



[[Page 37273]]

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Part IV





Department of Health and Human Services





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Administration for Children and Families



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Request for Applications for the Office of Community Services' Fiscal 
Year 2002 Community Economic Development Program; Notice

  Federal Register / Vol. 67, No. 102 / Tuesday, May 28, 2002 / 
Notices  

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

[Program Announcement No. OCS-2002-10]


Request for Applications for the Office of Community Services' 
Fiscal Year 2002 Community Economic Development Program

AGENCY: Office of Community Services, Administration for Children and 
Families, Department of Health and Human Services.

ACTION: Request for applications for the Office of Community Services' 
Community Economic Development Awards.

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SUMMARY: The Administration for Children and Families (ACF), Office of 
Community Services (OCS), announces that competing applications will be 
accepted for new grants and cooperative agreements pursuant to the 
Secretary's Community Economic Development authority under sections 
680(a)(2) of the Community Services Block Grant Act of 1981, as 
amended, (Public Law 105-285). The Office of Community Services is 
particularly interested in receiving applications from faith-based 
community development corporations.

Closing Date: The closing date for submission of applications for 
Fiscal Year 2002 is July 12, 2002. Applications received after this 
date will be classified as late.

Application Submission

    Mailing and Delivery Address: Community Economic Development 
Program applications must be mailed or hand-carried to the OCS 
Operations Center: 1815 North Fort Meyer Drive, Suite 300, Arlington, 
Virginia 22209; Attention: Application for Community Economic 
Development Program. This is the only address that applications will be 
accepted; applications mailed or delivered to any other address will be 
returned to sender.
    Submission Instructions: Applications shall be considered as 
meeting the announced deadline if they are received by 4:30 p.m. 
Eastern Standard Time (EST), at the OCS Operations Center on or before 
the closing date July 12, 2002. Applications not received by the 
closing date will be returned to the sender.
    Applications either mailed, by U.S. Postal Service or hand 
delivered or courier delivered, must be physically received at the OCS 
Operations Center by 4:30 p.m. EST, on or before the closing date July 
12, 2002. Applicants are reminded to mail or deliver applications to 
the OCS Operations Center well in advance of the closing date to assure 
timely receipt of their applications. (Applicants are cautioned that 
express/overnight mail services do not always deliver as agreed.)
    Applications mailed or hand carried by applicants, applicant 
couriers, or by other representatives of the applicant shall be 
considered as meeting the announced deadline if they are received on or 
before the closing date at the OCS Operations Center: 1815 North Fort 
Meyer Drive, Suite 300, Arlington, VA 22209. The Operations Center is 
open daily between the hours of 8 a.m. and 4:30 p.m. EST, Monday 
through Friday (excluding Federal holidays). The address must appear on 
the envelope/package containing the application with the note, 
``Attention: Application for Community Economic Development Program''. 
(Applicants are again cautioned that express/overnight mail services do 
not always deliver as agreed.)
    ACF cannot accommodate transmission of applications by fax or 
through other electronic media. Therefore, applications transmitted to 
ACF electronically will not be accepted regardless of date or time of 
submission and time of receipt.
    Late applications: Applications that do not meet the criteria above 
are considered late applications. ACF shall notify each late applicant 
that its application will not be considered in the current competition.
    Extension of deadlines: ACF may extend application deadlines when 
circumstances such as acts of God (floods, hurricanes, etc.) occur, or 
when there are widespread disruptions of the mail service. However, if 
ACF does not extend the deadline for all applicants, it may not waive 
or extend the deadline for any applicant. Determinations to extend or 
waive deadline requirements rest with ACF's Chief, Grants Management 
Officer.
    Number of Copies Required: One signed original application and two 
additional copies must be submitted at the time of the initial 
submission. (OMB-0970-0139, which expires 12/31/2003).
    The first page of the SF-424 must contain in the lower right-hand 
corner, a designation indicating under which priority area funds are 
being requested, for example `OP' for Priority Area ``1''--Operational 
Projects. See Part G, section 1, item 11 for details. Also, see Part C, 
section 5 for a description of each of the priority areas.
    Acknowledgment of Receipt: All applicants will receive an 
acknowledgment notice with an assigned identification number. 
Applicants are requested to supply a self-addressed mailing label with 
their application that can be attached to this acknowledgment notice. 
The identification number and the program priority area letter code 
must be referred to in all subsequent communications with OCS 
concerning the application. If an acknowledgment is not received within 
two weeks after the deadline date, please notify the OCS Operations 
Center by telephone at (703) 351-7676.

    [Note: To facilitate receipt of this acknowledgment from the 
operations center, applicant should include a cover letter with the 
application containing an E-mail address and facsimile (FAX) number 
if these resources are available to applicant.]

FOR GENERAL QUESTIONS ON THE ANNOUNCEMENT, CONTACT: Mr. Ros Relaford, 
Technical Assistance Manager, OCS Operations Center, Call: 1-800-281-
9516, or E-mail: [email protected].

FOR A COPY OF THE ANNOUNCEMENT, CONTACT: OCS Operations Center, 1815 
North Fort Meyer Drive, Suite 300, Arlington, Virginia 22209, (703) 
351-7676.
    In addition, the announcement is accessible on the OCS web site for 
reading or downloading at: http://www.acf.dhhs.gov/programs/ocs/kits1.htm

The Catalog of Federal Domestic Assistance number for this program 
is 93.570. The title is Community Services Block Grant--
Discretionary Awards (Urban Rural Economic Development.)

Table of Contents

PART A--PREAMBLE

1. Legislative Authority
2. Departmental Goals
3. Definition of Terms
4. Paperwork Reduction Act of 1995

PART B--APPLICATION PRE-REQUISITES

1. Eligible Applicants
2. Availability of Funds
3. Project and Budget Periods
4. Mobilization of Resources
5. Program Beneficiaries
6. Number of Projects in Application
7. Multiple Submittals
8. Sub-awarding or Delegating Projects
9. Third Party Agreements
10. Funding Considerations
11. Prohibited Activities

PART C--Application Requirements and Program Authority Areas

1. Program Goals
2. Program Scope
3. Program Focus
4. Community Empowerment and Collaboration
5. Types of Funding, Priority Areas and Estimated Funding

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PART D--THE PROJECT DESCRIPTION, PROGRAM APPLICATION ELEMENTS AND 
REVIEW CRITERIA

1. Purpose
2. Project Summary/Abstract
3. Objectives and Need for Assistance
4. Results or Benefits Expected
5. Approach
6. Organization Profiles
7. Staff and Position Data
8. Evaluation
9. Business Plan
10. Third-Party Agreements
11. Letters of Support
12. Budget and Budget Justification

PART E--EVALUATION CRITERIA

1. Criteria for Review and Evaluation of Applications Submitted 
Under Priority Area 1, 2A, 2B, and 3.
2. Criteria for Review and Evaluation of Applications Submitted 
Under Priority Area 4.

PART F--APPLICATION

1. Availability of Forms
2. Intergovernmental Review
3. Application Consideration
4. Criteria for Screening Applications

PART G--CONTENTS OF APPLICATION AND RECEIPT PROCESS

1. Contents of Application
2. Acknowledgment of Receipt

PART H--INSTRUCTIONS FOR COMPLETING APPLICATION PACKAGE

1. SF-424 Application for Federal Assistance
2. SF-424A Budget Information--Non-Construction Programs

PART I--POST AWARD INFORMATION AND REPORTING REQUIREMENTS

1. Notification of Grant Award
2. Attendance at OCS Training Conference
3. Reporting Requirements
4. Audit Requirements
5. Lobbying
6. Applicable Federal Regulations

Attachments

A--2001 Poverty Income Guidelines
B--Standard Form 424, Application for Federal Assistance
C--Standard Form 424A, Budget Information--Non-Construction Programs
D--Standard Form 424B, Assurances--Non-Construction Programs
E--Certification Regarding Drug-Free Workplace Requirements
F--Certification of Debarment, Suspension and Other Responsibility 
Matters
G--Intergovernmental Review State Single Points of Contact Listing 
(SPOC List)
H--Certification Regarding Lobbying and Disclosure of Lobbying 
Activities, SF LLL
I--DHHS Regulations Applying to all Applicants/Grantees Under the 
Fiscal Year 2002 Community Economic Development Program
J--Certification Regarding Environmental Tobacco Smoke
K--Guidelines for a Business Plan
L--Table of North American Industry Classification System (NAIC)
M--Applicant's Checklist

PART A--PREAMBLE

1. Legislative Authority

    The Community Services Block Grant (CSBG) Act of 1981, as amended, 
(Section 680 of the Community Opportunities, Accountability, and 
Training and Educational Services Act of 1998), authorizes the 
Secretary to make grants to provide technical and financial assistance 
for economic development activities designed to address the economic 
needs of low-income individuals and families by creating employment and 
business ownership opportunities.

2. Departmental Goals

    This announcement is particularly relevant to the Departmental goal 
of strengthening the American family and promoting self-sufficiency. 
These programs have objectives of increasing the access of low-income 
people to employment and business development opportunities, and 
improving the integration, coordination, and continuity of the various 
HHS (and other Federal Departments') funded services potentially 
available to families living in poverty. Faith-based organizations are 
eligible to apply for grants under this program if they are private, 
non-profit organizations that are community development corporations.

3. Definition of Terms

    For purposes of this Program Announcement, the following 
definitions apply:
    Beneficiaries: Low-income people (as defined in the most recent 
annual revision of the Poverty Income Guidelines published by DHHS) and 
low-income communities receive direct benefits.
    Budget period: The interval of time into which a grant period of 
assistance is divided for budgetary and funding purposes.
    Business Start-up Period: The initial period (usually three to six 
months) after the effective date of an OCS award during which a grantee 
completes preliminary project tasks including but notlimited to 
assembling key staff, execution of contracts, lease out or build-out of 
space for occupancy, upfit plant equipment and other similar 
activities.
    Building deconstruction: The systematic disassembly of residential 
and commercial buildings.
    Cash contributions: The recipient's cash outlay, including the 
outlay of money contributed to the recipient by the third parties.
    Community Development Corporation (CDC): A private, non-profit 
corporation, governed by a board of directors consisting of residents 
of the community and business and civic leaders, that has as a 
principal purpose planning, developing, or managing low-income housing 
or community development projects.
    Community Economic Development (CED): A process by which a 
community uses resources to attract capital and increase physical, 
commercial, and business development and job opportunities for its 
residents.
    Construction projects: For the purpose of this announcement, 
construction projects involve land improvements and development or 
major renovation of (new or existing) facilities and buildings, 
including their improvements, fixtures and permanent attachments.
    Cooperative Agreement: An award instrument of financial assistance 
when substantial involvement is anticipated between the awarding office 
and the recipient during performance of the contemplated project.
    Developmental phase: The time interval during a project period that 
precedes the operational phase. During the developmental phase, 
preliminary activities are accomplished which include establishing 
third party agreements, mobilizing monetary and other resources, 
assembling, rezoning and leasing of properties, conducting 
architectural and engineering studies, constructing facilities and etc.
    Displaced worker: An individual who is in the labor market but has 
been unemployed for six months or longer.
    Distressed community: A geographic urban neighborhood or rural 
community of high unemployment and pervasive poverty.
    Eligible applicant: A private, non-profit organization that is a 
Community Development Corporation. (Also, see ``Eligible Applicants'' 
under Part B--Application Pre-Requisites and also Program Priority 
Areas under Part C.)
    Employment education and training program: A program that provides 
education and/or training to welfare recipients, at-risk youth, public 
housing tenants, displaced workers, homeless and low-income individuals 
and that has demonstrated organizational experience in education and 
training for these populations.
    Empowerment Zones and Enterprise Communities (EZ/EC): Those 
communities designated as such by the Secretary of Agricultural or 
Housing and Urban Development.
    Equity investment: The provision of capital to a business entity 
for some specified purpose in return for a portion of ownership using a 
third party

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agreement as the contractual instrument.
    Faith-Based Community Development Corporation: A community 
development corporation that has a religious character.
    Hypothesis: An assumption made in order to test its validity. It 
should assert a cause-and-effect relationship between a program 
intervention and its expected result. Both the intervention and result 
must be measured in order to confirm the hypothesis. For example, the 
following is a hypothesis: ``Eighty hours of classroom training in 
small business planning will be sufficient for participants to prepare 
a successful loan application.'' In this example, data would be 
obtained on the number of hours of training actually received by 
participants (the intervention), and the quality of loan applications 
(the result), to determine the validity of the hypothesis (that eighty 
hours of training is sufficient to produce the result).
    Intervention: Any planned activity within a project that is 
intended to produce changes in the target population and/or the 
environment and that can be formally evaluated. For example, assistance 
in the preparation of a business plan and loan package are planned 
interventions.
    Job creation: New jobs, i.e. jobs not in existence prior to the 
start of the project, that result from new business startups, business 
expansion, development of new services industries, and/or other newly-
undertaken physical or commercial activities.
    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.
    Letter of commitment: A signed letter or agreement from a third 
party to the applicant that pledges financial or other support for the 
grant activities only subject to receiving an award of OCS grant funds.
    Loan: Money lent to a borrower under a binding pledge for a given 
purpose to be repaid, usually at a stated rate of interest and within a 
specified period of time.
    Operational phase: The time interval during the project when 
businesses, commercial or other activities are in operation and 
employment or business ownership opportunities are provided for low-
income persons.
    Outcome evaluation: An assessment of project results as measured by 
collected data which define the net effects of the interventions 
applied in the project. An outcome evaluation will produce and 
interpret findings related to whether the interventions produced 
desirable changes and their potential for replicability. It should 
answer the question: Did this program work?
    Poverty Income Guidelines: Guidelines published annually by the 
U.S. Department of Health and Human Services that establish the level 
of poverty defined as low-income for individuals and their families.
    Process evaluation: The ongoing examination of the implementation 
of a program. It focuses on the effectiveness and efficiency of the 
program's activities and interventions (for example, methods of 
recruiting participants, quality of training activities, or usefulness 
of follow-up procedures). It should answer questions such as: (1) Who 
is receiving what services and (2) are the services being delivered as 
planned. In addition, this process is known as a formative evaluation 
because it gathers information that can be used as a management tool to 
improve the way a program operates while the program is in progress. It 
should also identify problems that occurred, how the problems were 
resolved and what recommendations are needed for future implementation.
    Pre-development phase: The time interval during a project period 
that an applicant or grantee plans a project, conducts feasibility 
studies, prepares a business or work plan and mobilizes non-OCS 
funding.
    Program income: Gross income earned by the grant recipient that is 
directly generated by an activity supported with grant funds.
    Project period: The total time for which a project is approved for 
OCS support, including any approved extensions.
    Revolving loan fund: A capital fund established to make loans 
whereby repayments are re-lent to other borrowers.
    Self-employment: The state of an individual or individuals who 
engage in self-directed economic activities.
    Self-sufficiency: The economic state not requiring public 
assistance for an individual and his (her) immediate family.
    Sub-award: An award of financial assistance in the form of money, 
or property in lieu of money, made under an award by a recipient to an 
eligible sub-recipient or by a sub-recipient to a lower tier sub-
recipient. The term includes financial assistance when provided by any 
legal agreement, even if the agreement is called a contract, but does 
not include procurement of goods and services nor does it include any 
form of assistance which is excluded from the definition of ``award'' 
in 45 CFR 74.2. (Note: Sub awards do not include equity investments or 
loan transactions since they are promulgated under third party 
agreements.)
    Technical assistance: A problem-solving event generally utilizing 
the services of a specialist. Such services may be provided on-site, by 
telephone, or by other communications. These services address specific 
problems and are intended to assist with the immediate resolution of a 
given problem or set of problems.
    Temporary Assistance to Needy Families (TANF): Title I of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193) creates the TANF program that transforms welfare 
into a system that requires work in exchange for time-limited 
assistance. The law specifically eliminates any individual entitlement 
to or guarantee of assistance, repeals the Aid to Families with 
Dependent Children (AFDC) program, Emergency Assistance (EA) and Job 
Opportunities and Basic Skills Training (JOBS) programs, and replaces 
them with a block grant entitlement to States under Title IV-A of the 
Social Security Act.
    Third party: Any individual, organization, or business entity that 
is not the direct recipient of grant funds.
    Third party agreement: A written agreement entered into by the 
grantee and an organization, individual or business entity (including a 
wholly-owned subsidiary), by which the grantee makes an equity 
investment or a loan in support of grant purposes.
    Third party in-kind contributions: 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.

4. Paperwork Reduction Act of 1995 (Public Law 104-13

    Public reporting burden for this collection of information is 
estimated to average 10 hours per response, including the time for 
reviewing instructions, gathering and maintaining the data needed and 
reviewing the collection information. The project description is 
approved under Office of Management and Budget (OMB) Control Number 
0970-0139 which expires 12/31/2003. An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless is displays a currently valid OMB control number.

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PART B--APPLICATION PRE-REQUISITES

1. Eligible Applicants

    An eligible applicant must be a private, non-profit organization 
and must provide proof of its status. The non-profit agency can 
accomplish this by providing a copy of either the applicant's listing 
in the Internal Revenue Service's (IRS) most recent list of tax-exempt 
organizations, a copy of the currently valid IRS tax exemption 
certificate, or a copy of the articles of incorporation bearing the 
seal of the State in which the corporation or association is domiciled. 
Faith-based organizations are eligible to apply.
    Also to be eligible, an applicant must be a Community Development 
Corporation (CDC). A CDC is a private, non-profit corporation, governed 
by a board of directors consisting of residents of the community and 
business and civic leaders, that has a principal purpose of planning, 
developing, or managing low-income housing or community development 
projects.
    All eligible applicants must have private, non-profit status at the 
time of submission of their application. In addition to non-profit 
status, each priority area of this program announcement has additional 
eligibility requirements. These requirements are identified in the 
narrative descriptions of each priority area found in Part C. Applicant 
must submit proof of non-profit status in its application at the time 
of submission. Applications that do not include proof of this status 
with their application will be disqualified.

2. Availability of Funds

    Approximately $25,000,000 is available for FY 2002. However, all 
grant awards for FY 2002 are subject to the availability of 
appropriated funds. The maximum funding level for each award is 
described under each priority area description in Part C.

3. Project and Budget Periods

    For Priority Areas 1, 2, and 3, applicants with projects involving 
construction may request a project period of up to 60 months and a 
budget period of up to 36 months. Applicants for non-construction 
projects under these priority areas may request project periods of up 
to 36 months and budget periods of up to 17 months. For Priority Area 
4, applicants may request project and budget periods of up to 12 
months.

4. Mobilization of Resources

    OCS encourages and strongly supports leveraging of resources 
through public/private partnerships that can mobilize cash and/or 
third-party in-kind contributions.

5. Program Beneficiaries

    Projects proposed for funding under this announcement must result 
in direct benefits to low-income people as defined in the most recent 
annual revision of the Poverty Income Guidelines published by DHHS.
    Attachment A to this announcement is an excerpt from the Poverty 
Income Guidelines currently in effect. Annual revisions of these 
guidelines are normally published in the Federal Register in February 
or early March of each year. 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, DC 20402. Also, grantees may contact the OCS 
Operations Center to obtain a copy of the guidelines. No other 
government agency or privately defined poverty guidelines are 
applicable for the determination of low-income eligibility for these 
OCS programs.
    Note, however, that low-income individuals granted lawful temporary 
resident status under Sections 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.

6. Number of Projects in Application

    All Priority Area applications shall contain only one proposed 
project except for Priority Area 4. Applicants that are not in 
compliance with this requirement may be disqualified. Under Priority 
Area 4, applicants may address a number of ideas or activities that 
promote planning or development of projects.

7. Multiple Submittals

    There is no limit to the number of applications that an applicant 
can submit under this announcement as long as each application contains 
a different project. However, an applicant can receive only one grant 
or cooperative agreement under this program announcement.

8. Sub-awarding or Delegating Projects

    OCS does not fund projects where the role of the applicant is 
primarily to serve as a conduit for funds through the use of sub awards 
to other organizations. In cases where the applicant proposes to make 
one or more sub awards, it must retain a substantive role in the 
implementation and operation of the project for which funding is 
requested.

9. Third Party Agreements

    Any applicant submitting an application for funding under Priority 
Areas 1 or 3 that proposes to use some or all of the requested OCS 
funds to enter into a third party agreement in order to make an equity 
investment, such as the purchase of stock or a loan to an organization 
or business entity (including a wholly-owned subsidiary), is required 
to include in the application, along with the business plan, a copy of 
the signed third party agreement for approval by OCS. When the 
applicant is proposing to enter into a third party agreement for all of 
the grant funds and a signed third party agreement is not included with 
the business plan, if the application is approved, OCS will send a 
time-limited letter of intent to fund each viable, competitively ranked 
project pending receipt of a signed third party agreement. Once OCS has 
determined that the agreement is acceptable, an award will be forwarded 
to the applicant.
    If a signed third party agreement is not available when the 
application is submitted, the applicant must submit as part of the 
narrative as much of the information below as possible in order to 
enable reviewers to evaluate the application. This exception is 
particularly applicable to Incremental Development Projects or Priority 
Area 2.
    For this priority area an applicant may establish a third party 
agreement during the developmental phase but before the operational 
phase of the project. However, it should be noted that the portion of a 
grant that will be used to fund project activities related to a third 
party agreement will not be released (in any instances) until the 
agreement has been approved by OCS.
    A third party agreement covering an equity investment must contain, 
at a minimum, the following:

--Purpose(s) for which the equity investment is being made.
--Cost per share.
--The type of equity transaction (e.g. stock purchase).
--Number of shares being purchased.
--Percentage of ownership of the business.
--Term of duration of the agreement.
--Number of seats on the board, if applicable.
--Signatures of the authorized official of the grantee and third party 
organization.


[[Page 37278]]


    A third party agreement covering a loan transaction must contain, 
at a minimum, the following information:

--Purpose(s) for which the loan is being made.
--Rates of interest and other fees.
--Terms of loan.
--Repayment schedules.
--Collateral security.
--Default and collection procedures.
--Signatures of the authorized official of the lender and borrower.

    All third party agreements must include written commitments as 
follows:
From the Third Party (as Appropriate)
--Low-income individuals will fill a minimum of 60% of the jobs to be 
created from project activities as a result of the injection of grant 
funds.
--The grantee will have the right to screen applicants for jobs to be 
filled by low-income individuals and to verify their eligibility.
--If the grantee's equity investment equals 25% or more of the 
business's assets, the grantee will have representation on the board of 
directors.
--Reports will be made to the grantee regarding the use of grant funds 
on a quarterly basis or more frequently, if necessary.
--Procedures will be developed to assure that there are no duplicate 
counts of jobs created.

    Detailed information will be provided on how the grant funds will 
be used by the third party by submitting a Source and Use of Funds 
Statement. In addition, the agreement must provide details on how the 
grantee will provide support and technical assistance to the third 
party in areas of recruitment and retention of low-income individuals.
From the Grantee
    Detailed information on how the grantee will provide support and 
technical assistance to the third party in areas of recruitment and 
retention of low-income individuals.
    All third party agreements should be accompanied by:
    A signed statement from a Certified or Licensed Public Accountant 
as to the sufficiency of the third party's financial management system 
in accordance with 45 CFR 74, to protect adequately any federal funds 
awarded under the application.
    Financial statements for the third party organization for the prior 
three years. (If not available because the organization is a newly 
formed entity, include a statement to this effect.)
    The third party agreement will specify how the grantee will provide 
oversight of the grant supported activities of the third party for the 
life of the agreement. Also, the agreement will specify that the third 
party will maintain documentation related to the grant objectives as 
specified in the agreement and will provide the grantee and HHS access 
to that documentation.
    The grantee is responsible for ensuring that grant funds expended 
by it and the third party are expended in compliance with Federal 
regulations of 45 CFR, part 74 and OMB Circular A-122.

10. Funding Considerations

    In cases where an application ranks high and is competitive, the 
following may apply:
    (a) Previous performance of applicants will be considered an 
important determining factor in the grant award decisions.
    (b) Any applicant that has two or more active OCS grants may only 
be funded under exceptional circumstances.
    (c) Pre-award site visits may be performed for the purpose of 
undertaking assessments of many of these applications prior to OCS 
making final determinations on grant awards.

11. Prohibited Activities

    OCS will not consider applications that propose the establishment 
of Small Business Investment Corporations or Minority Enterprise Small 
Business Investment Corporations.
    OCS does not fund projects that have a primary purpose to provide 
education and training activities. In projects where participants must 
be trained, any funds that are proposed to be used for training 
purposes must be limited to providing specific job-related training to 
those individuals who have been selected for employment in the grant 
supported project which includes new business startups, business 
expansions, development of new service industries, and/or other newly-
undertaken physical and commercial activities.
    Projects involving training and placement for existing vacant 
positions will be disqualified from competition.
    Projects that would result in the relocation of a business from one 
geographic area to another with the possible displacement of employees 
are discouraged.

PART C--APPLICATION REQUIREMENTS AND PROGRAM PRIORITY AREAS

1. Program Goals

    Projects must further the Departmental goals of strengthening 
American families and promoting their self-sufficiency. OCS is 
particularly interested in receiving applications that involve public-
private partnerships that are directed toward the development of 
economic self-sufficiency for low-income people and distressed 
communities through projects that focus on providing employment and 
business ownership opportunities for low-income people through business 
startups, business expansions, development of new services, and/or 
other newly-undertaken physical and commercial activities.

2. Project Scope

    OCS encourages each applicant to describe the project scope that 
includes the low-income community served, the business activities 
undertaken, and types of jobs to be created. The business activities 
should be described by the North American Industry Classification 
System (NAICS) and jobs by occupational classifications. This 
information is published by the U. S. Department of Commerce in the 
current Statistical Abstract of the United States, or updated 
revisions. Also, applicant may use the material included in Attachment 
I to identify industrial areas and occupational classifications.

3. Program Focus

    The focus of this program is to encourage the creation of projects 
intended to create jobs and provide employment and business ownership 
opportunities for low-income people through business, physical or 
commercial development. Generally the opportunities must aim to improve 
the quality of the economic and social environment of TANF recipients; 
low-income residents including displaced workers; at-risk teenagers; 
custodial and non-custodial parents, particularly those of children 
receiving TANF assistance; individuals residing in public housing; 
individuals who are homeless; and individuals with developmental 
disabilities. Grant funds under this program announcement area are 
intended to provide resources to eligible applicants but also have the 
broader objectives of arresting tendencies toward dependency, chronic 
unemployment, and community deterioration in urban and rural areas.

4. Community Empowerment and Collaboration

    Eligible organizations including faith-based community development 
corporations located in Empowerment Zones, Enterprise Communities and 
rural areas are urged to submit applications. Likewise, applicants are

[[Page 37279]]

encouraged to foster partnerships with child support enforcement 
agencies to increase the capability of low-income non-custodial 
parents, particularly those of children receiving TANF assistance, to 
fulfill their parental responsibilities. Such applicants may request 
funds for a business development project or a project that demonstrates 
innovative ways to create jobs for low-income persons in the targeted 
group or community.

5. Types of Funding, Priority Areas and Estimated Funding

    The types of funding are grants and coopeative agreements. 
Operational projects, developmental projects and planning projects will 
be supported through grants. Incremental development projects and 
Native American Tribes incremental development projects will be 
supported through cooperative agreements.
    The program priority areas and the estimated level of funding 
available under each area are:
    1. Operational Projects (OP)--$12,600,000 estimate.
    2A. Incremental Development Projects (IDP)--$2,240,000 estimate. 
(First increment will be funded in FY 2002. Second increment will be 
considered in FY 2003 or FY 2004, respectively, depending on whether a 
successful applicant has no more than a 12-month budget period or a 
budget period ranging from 13-17 months. Also, funding of the second 
increment is subject to continued funding of this program.)
    2B.--Native American Tribes (NAT) Incremental Development 
Projects;--$280,000 estimate.

(First increment will be funded in FY 2002. Second increment will be 
considered in FY 2003 or FY 2004, respectively, depending on whether a 
successful applicant has no more than a 12-month budget period or a 
budget period ranging from 13-17 months. Also, funding of the second 
increment is subject to continued funding of this program.)

    3. Developmental Projects (DP)--$7,000,000 estimate.
    4. Planning Projects (PP)--$1,350,000 estimate.
    Applicants applying for priority areas 1, 2A, 2B and 3 must show 
that the proposed project:
    (1) Creates full-time permanent jobs except where an applicant 
demonstrates that a permanent part-time job produces actual wages that 
exceed the HHS poverty guidelines. At least sixty percent (60%) of the 
jobs created must be filled by low-income residents of the community 
and must also provide for career development opportunities. Project 
emphasis should be on employment of individuals who are unemployed or 
on public assistance, with particular emphasis on those that are at-
risk teenagers, TANF recipients, low-income custodial and non-custodial 
parents (particularly those of children receiving TANF assistance), 
individuals residing in public housing, individuals with developmental 
disabilities, and individuals who are homeless. While projected 
employment in future years may be included in the application, it is 
essential that the focus of employment projects concentrate on those 
permanent jobs created during the duration of the OCS project period; 
and/or
    (2) Creates a significant number of business ownership 
opportunities for low-income residents of the community or 
significantly aids such residents in maintaining economically viable 
businesses; and
    (3) Assists low-income participants to become self-sufficient.
    In addition, favorable consideration in the review process will be 
given to applicants that develop linkages and agreements or demonstrate 
their intention to coordinate services with the local TANF offices and/
or other employment education and training offices and child support 
enforcement agencies that serve the proposed area. The offices and 
agencies should serve TANF recipients, at-risk youth, public housing 
tenants, displaced workers, homeless and low-income individuals (as 
defined by the annual revision to the Poverty Income Guidelines 
published by DHHS) including custodial and non-custodial parents. 
Applicants should submit a written agreement from the applicable office 
or agency that indicates what actions will be taken to integrate/
coordinate services that relate directly to the project for which funds 
are being requested. The agreement should include the goals and 
objectives (including target groups) that the applicant and the 
employment education and training office and child support enforcement 
agencies expect to reach through their collaboration. It should 
describe the cooperative relationship, including specific activities 
and/or actions each of these entities proposes to carry out in support 
of the project, and the mechanism(s) to be used in coordinating those 
activities if the project is funded by OCS. Documentation that 
illustrates the organizational experience of the employment education 
and training office should also be included.
    Applications must include provision for an independent, 
methodologically sound evaluation of the effectiveness of the 
activities carried out with the grant and their efficacy in creating 
new jobs and business ownership opportunities. There must be a well-
defined process evaluation, and an outcome evaluation whose design will 
permit tracking of project participants throughout the proposed project 
period. The evaluation must be conducted by an independent evaluator, 
i.e., a person with recognized evaluation skills who is 
organizationally distinct from, and not under the control of, the 
applicant. It is important that each successful applicant have a third-
party evaluator selected, and implement their role at the very latest 
by the time the work program of the project is begun, and if possible 
before that time so that he or she can participate in the design of the 
program, in order to assure that data necessary for the evaluation will 
be collected and available.
    The executive director and/or project director, and the evaluator 
must attend a two-day national workshop in Washington, DC. The workshop 
will be scheduled shortly after the effective date of the grant award. 
Additionally, the project director should plan annual meetings with 
their program and grants management specialists each year, thereafter, 
during the life of the grant. The evaluator should also attend a final 
evaluation workshop to be held at the end of the project period. 
Project budgets must include funds from the OCS award for travel to and 
attendance at these meetings and workshops.
Priority Area 1. Operational Projects (OP)
    An applicant for an operational project must have in place written 
commitments for all projected non-OCS funding required for their 
project. Written proof of commitments from third parties must be 
submitted with the application. After the business start-up period, a 
period that is relatively a short time after the effective date of the 
OCS grant, an operational project should start its operational phase. 
The operational phase is defined as the time interval when business, 
commercial or other activities are in operation and employment or 
business ownership opportunities are provided for low-income persons.
    An eligible applicant must propose a project that provides 
employment and business ownership opportunities for low-income people 
through business, physical or commercial development at the local 
level. Applicants should submit a work plan or business plan that 
complies with the test of economic feasibility. Attachment K is a 
guideline for the work plan or business plan.

[[Page 37280]]

    The cost-per-job for low-income persons in OCS funds may not exceed 
$15,000. Unless there are extenuating circumstances, OCS will not fund 
projects where the cost-per-job for low-income persons in OCS funds 
exceeds $15,000.
    The maximum award of OCS funding can be no more than $700,000 for a 
project.
    A project period up to 60 months and a budget period up to 36 
months are permitted for projects involving construction. Projects that 
do not involve construction may have a maximum project period up to 36 
months and a maximum budget period up to 17 months.
    Applicants must be aware that projects funded under this priority 
area must be operational by the end of the project period, i.e., 
businesses must be in place, and low-income individuals actually 
employed in those businesses.
Priority Area 2A. Incremental Development Projects (IDP)
    IDP projects will be funded in two increments including (1) a 
developmental phase and (2) an operational phase. IDP applicants should 
submit a comprehensive, written business plan or work plan. OCS intends 
to support an IDP project under a cooperative agreement. A cooperative 
agreement is an award instrument of financial assistance when 
substantial involvement is anticipated between the awarding office and 
the recipient during performance of the contemplated project. The OCS 
will outline a plan of interaction with the grantee for implementation 
under the cooperative agreement. The respective responsibilities of the 
OCS and the successful applicant will be identified and incorporated 
into the cooperative agreement during pre-award negotiations. It is 
anticipated that OCS responsibilities will not change the project 
requirements found in this Announcement. The plan under the cooperative 
agreement will describe the general and specific responsibilities of 
the grantee and the grantor as well as foreseeable joint 
responsibilities. A schedule of tasks will be developed and agreed upon 
in addition to any special conditions relating to the implementation of 
the project. An applicant for IDP has the same requirements as Priority 
Area 1 (OP) except for the following:
    (a) All written commitments need not be in place;
    (b) All non-OCS funding necessary to complete the project need not 
be in place;
    (c) A third party agreement need not be in place (if applicable); 
and
    (d) Acquisition or site control of the proposed site and similar 
activities need not be in place.
    An applicant requesting funding for an IDP project must request the 
total amount of OCS funding at the initial submission of their 
application. However, the project will receive OCS funding in two 
increments: (a) The first increment will be provided to begin the 
developmental phase. During the developmental phase, the grantee will 
be granted initial funding up to but not to exceed more than 20% of the 
total OCS funding requested for the entire project period. The second 
increment is predicated on success of the developmental activities 
being in place. Documentation of completed tasks must be submitted to 
the Office of Grants Management in accord with terms and requirements 
of the cooperative agreement to be reviewed by OCS prior to the 
project's operational phase being funded. The decision to continue 
funding the project is at the sole discretion of the OCS.
    Funding will be provided in no more than two increments as follows:
    The first increment will not exceed 20% of the anticipated total 
OCS grant award. The budget period for this phase can be no longer than 
17 months for non-construction projects and 24 months for projects 
involving construction.
    The second increment is for the balance of anticipated OCS funds. 
The budget period for this phase can be no longer than 17 months for 
non-construction projects and 24 months for construction projects. The 
combined project period and budget periods for the first and second 
increment cannot exceed 36 months for non-construction and 60 months 
for construction type projects.
    The cost-per-job in OCS funds (based on the total anticipated 
request of OCS funds for the entire project period) may not exceed 
$15,000.
    The maximum award of OCS funding requested for the entire project 
period can be no more than $700,000 for a project. The maximum amount 
of the first incremental award cannot exceed $140,000 or 20% of the 
total OCS funding, whichever is lower.
Priority Area 2B. Native American Tribe, Incremental Development 
Project, (NAT)
    Funds will be provided to two private, non-profit, 501(c), 
community development corporations that enter into an agreement with an 
eligible Native American tribe to carry out business development 
activities, i.e. business startups, business expansions, development of 
new services industries, and/or other newly-undertaken physical and 
commercial activities, on reservations. An eligible Native American 
Tribe is one of the 42 tribes that operate a Temporary Assistance for 
Needy Families Block Grant Program (TANF) under a direct agreement 
(recognized under tribal self-governance agreements as the equal of a 
State block grant program) with the Federal government.
    The applicant should select a project that promotes economic 
sustainability and self-sufficiency for families on the reservation 
where the project will be implemented. An application under this 
priority area must reflect a significant partnership role for the 
tribe. The application also must contain a written, signed agreement 
from an authorized tribal official confirming the tribe's significant 
involvement in the grant activities. By entering into a partnership 
agreement with a tribe, the applicant will be considered to have 
fulfilled the goal of mobilizing non-discretionary program dollars 
under sub-criterion V.1, Mobilization of resources and will be granted 
the maximum number of points (10) in that category.
    In addition, applicants must develop a project that has the same 
purposes and requirements as Priority Area 2A. Also, for each 
applicant, the maximum OCS funding requested, budget and project period 
and other requirements are the same as Priority Area 2A.
Priority Area 3. Developmental Projects (DP)
    Funds will be provided to a limited number of eligible applicants 
that received planning grants from OCS in Fiscal Years 2000 and 2001.
    Applicant must develop a project that has the same purposes and 
requirements as Priority Area 1.
    The maximum award of OCS funding can be no more than $350,000.
Priority Area 4. Planning Projects (PP)
    Funds will be provided to a limited number of eligible applicants 
that have been recently established and are inexperienced in 
implementing economic development projects. The primary purpose of this 
priority area is to assist eligible organization in planning, 
developing organizational capacity, identifying potential projects, 
mobilizing resources and the development of a business plan for 
implementation on completion of the planning project.
    Eligible applicants cannot be more than three years old, or if more 
than

[[Page 37281]]

three years old have no experience in implementing economic development 
projects. (For the latter type of applicant, a written assurance must 
be provided in the project narrative that states `` the applicant had 
no participation in economic development projects''). The phrase ``no 
participation in economic development projects'' means an eligible 
applicant has not sponsored nor had any significant participation in 
projects that have provided employment or business ownership 
opportunities through business startups, expansions or development 
through physical, business or commercial activities or provision of 
financial services. In addition, applicants with housing experience 
must not have had primary responsibility in planning, developing, and 
managing housing projects.
    With funding received under this priority area, applicants may 
incur costs to: (1) Evaluate the feasibility of potential projects that 
address identified needs in the low-income community (see Part E--
Evaluation Criteria, Section 2, Criterion I for details) and that 
conform to those projects and activities allowable under Priority Areas 
1, 2A, 2B and 3; (2) develop a business plan related to one of those 
projects; (3) mobilize resources to be contributed to one of those 
projects and (4) develop organizational capacity. Examples of 
activities under item 4 may include hiring staff, training board 
members, staff and volunteers, recruiting community volunteers and 
developing management systems.
    The business plan developed as a result of the respective planning 
project must be submitted as part of your next competitive application 
if you participate in the Developmental or Operational Projects set-
asides for Fiscal Year 2003 based on the availability of funds.
    The maximum award of OCS funding can not exceed $75,000 including 
the cost of travel for the program director to attend a two-day 
workshop in Washington, DC.
    The project and budget period can be no longer than 12 months.
    Applications submitted under this priority area will be evaluated 
on how well the project narrative comply with the following 
information:
    1. Description of the impact area, i.e., a description of the low-
income area it proposes to address;
    2. Need identification in the targeted area;
    3. How the potential projects relate to applicant's organizational 
goals and previous experience (if any);
    4. Project approach and implementation factors including a 
discussion of potential projects that might be implemented to address 
identified needs;
    5. A strategy for conduct of feasibility studies on potential 
projects including quarterly work plans with specific task timelines 
and a self-evaluation component; and
    6. Project objectives and measurable impact, i.e., a discussion of 
preparing a business plan on only one selected project based on results 
of the feasibility studies and a plan for mobilization of non-OCS 
dollars to implement it.

PART D--THE PROJECT DESCRIPTION, PROGRAM APPLICATION ELEMENTS AND 
REVIEW CRITERIA

1. Purpose

    The project description provides the major means by which an 
application is evaluated and ranked to compete with other applications 
for available assistance. The project description should be concise and 
complete and should address the activity for which Federal funds are 
being requested. Supporting documents should be included where they can 
present information clearly and succinctly. Applicants are encouraged 
to provide information on their organizational structure, staff, 
related experience, and other information considered relevant. Awarding 
offices use this and other information to determine whether the 
applicant has the capability and resources necessary to carry out the 
proposed project. It is important, therefore, that this information be 
included in the application. However, in the narrative the applicant 
must distinguish between resources directly related to the proposed 
project from those that will not be used in support of the specific 
project for which funds are requested.

2. Project Summary/Abstract

    Provide a summary of the project description (a page or less) with 
reference to the funding request.

3. Objectives and Need for Assistance

    Clearly identify the physical, economic, social, financial, 
instructional, and/or other problem(s) requiring a solution. The need 
for assistance must be demonstrated and the principal and subordinate 
objectives of the project must be clearly stated; supporting 
documentation, such as letters of support and testimonials from 
concerned interests other than the applicant, may be included. Any 
relevant data based on planning studies should be included or referred 
to in the endnotes/footnotes. Incorporate demographic data and 
participant/beneficiary information, as needed. In developing the 
project description, the applicant may volunteer or be requested to 
provide information on the total range of projects currently being 
conducted and supported (or to be initiated), some of which may be 
outside the scope of the program announcement.

4. Results or Benefits Expected

    Identify the results and benefits to be derived. For example, 
describe the types of jobs to be created or employment or business 
ownership opportunities to be provided to low-income persons, career 
opportunities provided and how the applicant will assist participants 
to move towards self-sufficiency. As another example, the applicant 
should provide information on the funds and other resources mobilized 
or attracted to respective low-income communities.

5. Approach

    Outline a plan of action which describes the scope and detail of 
how the proposed work will be accomplished. Account for all functions 
or activities identified in the application. Cite factors which might 
accelerate or decelerate the work and state your reason for taking the 
proposed approach rather than others. Describe any unusual features of 
the project such as design or technological innovations, reductions in 
cost or time, or extraordinary social and community involvement.
    Provide quantitative monthly or quarterly projections of the 
accomplishments to be achieved for each function or activity in such 
terms as the number of people to be served and the number of microloans 
made. Also, this section should include the number of jobs created and 
business ownership opportunities provided to low income persons; and 
the amount of resources and types of business attracted to low-income 
communities. When accomplishments cannot be quantified by activity or 
function, list them in chronological order to show the schedule of 
accomplishments and their target dates. If any data is to be collected, 
maintained, and/or disseminated, clearance may be required from the 
U.S. Office of Management and Budget (OMB). This clearance pertains to 
any ``collection of information that is conducted or sponsored by 
ACF.''
    List organizations, cooperating entities, consultants, or other key

[[Page 37282]]

individuals who will work on the project along with a short description 
of the nature of their effort or contribution.

6. Organization Profiles

    Provide information on the applicant organization(s) and 
cooperating partners such as organizational charts, financial 
statements, audit reports or statements from CPAs/Licensed Public 
Accountants, Employer Identification Numbers, names of bond carriers, 
contact persons and telephone numbers, child care licenses and other 
documentation of professional accreditation, information on compliance 
with Federal/State/local government standards, documentation of 
experience in the program area, and other pertinent information. Any 
non-profit organization submitting an application must submit proof of 
its non-profit status in its application at the time of submission. The 
non-profit agency can accomplish this by providing a copy of the 
applicant's listing in the Internal Revenue Service's (IRS) most recent 
list of tax-exempt organizations described in Section 501(c)3 of the 
IRS code, or, by providing a copy of the currently valid IRS tax 
exemption certificate, or, by providing a copy of the articles of 
incorporation bearing the seal of the State in which the corporation or 
association is domiciled.

7. Staff and Position Data

    Provide a biographical sketch for each key person appointed and a 
job description for each vacant key position. A biographical sketch 
will also be required for new key staff as appointed.

8. Evaluation

    Provide a narrative addressing how the results of the project and 
the conduct of the project will be evaluated. In addressing the 
evaluation of results, state how you will determine the extent to which 
the project has achieved its stated objectives and the extent to which 
the accomplishment of objectives can be attributed to the project. 
Discuss the criteria to be used to evaluate results, and explain the 
methodology that will be used to determine if the needs identified and 
discussed are being met and if the project results and benefits are 
being achieved. With respect to the conduct of the project, define the 
procedures to be employed to determine whether the project is being 
conducted in a manner consistent with the work plan presented and 
discuss the impact of the project's various activities on the project's 
effectiveness.

9. Business Plan

    When Federal grant funds will be used to make an equity investment 
or loan, provide a business plan. The business plan should include 
discussion of applicable elements of a business plan as described in 
Attachment K, ``Guidelines for a Business Plan''.

10. Third-Party Agreements

    Include written agreements between grantees and sub-grantees or 
subcontractors or other cooperating entities. These agreements must 
detail the scope of work to be performed, work schedules, remuneration, 
and other terms and conditions that structure or define the 
relationship.

11. Letters of Support

    Provide statements from community, public and commercial leaders 
that support the project proposed for funding. All submissions should 
be included.

12. Budget and Budget Justification

    Provide a line item detail and detailed calculations for each 
budget object class identified on the Budget Information form. Detailed 
calculations must include estimation methods, quantities, unit costs, 
and other similar quantitative detail sufficient for the calculation to 
be duplicated. The detailed budget must also include a breakout by the 
funding sources identified in Block 15 of the SF-424.
    Provide a narrative budget justification that describes how 
categorical costs are derived. Discuss the necessity, reasonableness, 
and allocability of the proposed costs.
General
    The following guidelines are for preparing the budget and budget 
justification. Both Federal and non-Federal resources shall be detailed 
and justified in the budget and narrative justification. For purposes 
of preparing the budget and budget justification, ``Federal resources'' 
refers only to the ACF grant for which you are applying. Non-Federal 
resources are all other Federal and non-Federal resources. It is 
suggested that budget amounts and computations be presented in a 
columnar format: first column, object class categories; second column, 
Federal budget; next column(s), non-Federal budget(s), and last column, 
total budget. The budget justification should be a narrative.
Personnel
    Description: Costs of employee salaries and wages.
    Justification: Identify the project director or principal 
investigator, if known. If not known at the time of submission, a 
comprehensive position description should be included that indicates 
that the responsibility to be assigned to the project director are 
relevant to the successful implementation of the project. For each 
staff person, provide the title, time commitment to the project (in 
months), time commitment to the project (as a percentage or full-time 
equivalent), annual salary, grant salary, wage rates, etc. Do not 
include the costs of consultants or personnel costs of delegate 
agencies or of specific project(s) or businesses to be financed by the 
applicant.
Fringe Benefits
    Description: Costs of employee fringe benefits unless treated as 
part of an approved indirect cost rate.
    Justification: Provide a breakdown of the amounts and percentages 
that comprise fringe benefit costs such as health insurance, Federal 
Insurance Compensation Act (FICA), retirement insurance, taxes, etc.
Travel
    Description: Costs of project-related travel by employees of the 
applicant organization (does not include costs of consultant travel).
    Justification: For each trip, show the total number of traveler(s), 
travel destination, duration of trip, per diem, mileage allowances, if 
privately owned vehicles will be used, and other transportation costs 
and subsistence allowances. Travel costs for key staff to attend ACF-
sponsored workshops should be detailed in the budget.
Equipment
    Description: ``Equipment'' means an article of nonexpendable, 
tangible personal property having a useful life of more than one year 
and an acquisition cost which equals or exceeds the lesser of (a) the 
capitalization level established by the organization for the financial 
statement purposes, or (b) $5,000. (Note: Acquisition cost means the 
net invoice unit price of an item of equipment, including the cost of 
any modifications, attachments, accessories, or auxiliary apparatus 
necessary to make it usable for the purpose for which it is acquired. 
Ancillary charges, such as taxes, duty, protective in-transit 
insurance, freight, and installation shall be included in or excluded 
from acquisition cost in accordance with the organization's regular 
written accounting practices.)
    Justification: For each type of equipment requested, provide a

[[Page 37283]]

description of the equipment, the cost per unit, the number of units, 
the total cost, and a plan for use on the project, as well as use or 
disposal of the equipment after the project ends. An applicant 
organization that uses its own definition for equipment should provide 
a copy of its policy or section of its policy which includes the 
equipment definition.
Supplies
    Description: Costs of all tangible personal property other than 
that included under the Equipment category.
    Justification: Specify general categories of supplies and their 
costs. Show computations and provide other information which supports 
the amount requested.
Contractual
    Description: Costs of all contracts for services and goods except 
for those which belong under other categories such as equipment, 
supplies, construction, etc. Third-party evaluation contracts (if 
applicable) and contracts with secondary recipient organizations, 
including delegate agencies and specific project(s) or businesses to be 
financed by the applicant, should be included under this category.
    Justification: All procurement transactions shall be conducted in a 
manner to provide, to the maximum extent practical, open and free 
competition. Recipients and sub-recipients, other than States that are 
required to use Part 74 procedures, must justify any anticipated 
procurement action that is expected to be awarded without competition 
and exceed the simplified acquisition threshold fixed at 41 USC 403(11) 
(currently set at $100,000). Recipients might be required to make 
available to ACF pre-award review and procurement documents, such as 
request for applications or invitations for bids, independent cost 
estimates, etc.


    Note: Whenever the applicant intends to delegate part of the 
project to another agency, the applicant must provide a detailed 
budget and budget narrative for each delegate agency, by agency 
title, along with the required supporting information referred to in 
these instructions.

Other
    Description: Enter the total of all other costs. Such costs, where 
applicable and appropriate, may include but are not limited to 
insurance, food, medical and dental costs (non-contractual), 
professional services costs, space and equipment rentals, printing and 
publication, computer use, training costs, such as tuition and 
stipends, staff development costs, and administrative costs.
    Justification: Provide computations, a narrative description and a 
justification for each cost under this category.
Non-Federal Resources
    Amounts of non-Federal resources that will be used to support the 
project as identified in Block 15 of the SF-424. The firm commitment of 
these resources must be documented and submitted with the application 
in order to be given credit in the review process. A detailed budget 
must be prepared for each funding source.

PART E--EVALUATION CRITERIA

    Each application submitted under this program announcement will 
undergo initial screening to determine that the application was 
received by the closing date, complies with the page limitation, is 
eligible for funding and complies with other instructions. Also, see 
Part F--Application Procedures, section 4 for additional details of 
``criteria for screening applicants''.
    Each application that passes the initial screening will be reviewed 
and scored by a panel of three independent reviewers. Each panel gives 
a numerical score and summary evaluation of each application reviewed. 
The summary evaluation will include explanatory statements describing 
major strengths and weaknesses reviewed against published criterion.
    The competitive review of each application is based on the degree 
to which applicants:
    (1) Adhere to the requirements in PART B, incorporate the elements 
of specific priority area and address elements under each criterion; 
and
    (2) Describe a project that will create jobs and provide employment 
to and business ownership opportunities for low-income persons 
including TANF and other eligible persons.

1. Criteria for Review and Evaluation of Applications Submitted Under 
Priority Areas 1, 2 and 3

Criterion I: Need for Assistance Maximum: (5 Points)
    The application documents that the project addresses a vital need 
in a distressed community. Distressed community is defined as a 
geographic urban neighborhood or rural community of high unemployment 
and pervasive poverty. The application documents that both the 
unemployment rate and poverty level for the targeted neighborhood or 
community must be equal or greater than the national level. (0-3 
points)
    The application cites the most recent available statistics from 
published sources e.g. the recent U.S. Census or updates, the State, 
county, city, election district and other information are provided in 
support of its contention. (0-2 points)
Criterion II: Organizational Profiles and Staff Responsibilities 
(Maximum: 15 Points)
(1) Organizational Profiles (Sub-Rating: 0-7 Points)
    The applicant has the organizational structure and strategic plan 
to develop business, physical, or community development activities. (0-
4 points)
    The 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.). (0-3 points)
(2) Staff Skills, Resources and Responsibilities (Sub-Rating: 0-8 
Points)
    The application describes in brief resume form the experience and 
skills of the project director who is not only well qualified, but 
whose professional capabilities are relevant to the successful 
implementation of the project. If the key staff person has not yet been 
identified, the application contains a comprehensive position 
description that indicates that the responsibilities to be assigned to 
the project director are relevant to the successful implementation of 
the project. (0-5 points)
    The applicant has adequate facilities and resources (i.e. space and 
equipment) to successfully carry out the work plan. (0-2 points)
    The assigned responsibilities of the staff are appropriate to the 
tasks identified for the project and sufficient time of senior staff 
will be budgeted to assure timely implementation and cost effective 
management of the project. (0-1 points)
Criterion III: Project Approach (Maximum: 25 Points)
    (1) The business plan or work plan, where applicable, is both sound 
and feasible. The plan describes the key project tasks and shows how 
the project objectives will be accomplished including the development 
of businesses and creation of jobs for low-income persons during the 
allowable OCS project period. (0-3 points)
    (2) The project is responsive to the needs identified in the 
Analysis of Need. (0-4 points)

[[Page 37284]]

    (3) The work plan outlines realistic quarterly time targets by 
which the various work tasks would be completed. (0-5 points)
    (4) Critical issues or potential problems that might impact 
negatively on the project are defined and the project objectives can be 
reasonably attained despite such potential problems. (0-3 points)
    The application contains a full and accurate description of the 
proposed use of the requested financial assistance for all projects. 
However, if an applicant proposes (under Priority Areas 1 and 3) to 
make an equity investment or a loan to an individual, organization, or 
business entity (including a wholly-owned subsidiary), the application 
includes a signed third party agreement; a signed statement by a 
Certified or Licensed Public Accountant, as to the sufficiency of the 
third party's financial management system; and financial statements for 
the third party's prior three years of operation. (If newly formed and 
unable to provide the information regarding the prior three years of 
operation, a statement to that effect is included.) If the applicant 
states that an agreement is not currently in place, the application 
contains in the narrative as much information required for third party 
agreements as is available. (See Part B, item 9.)

    Note: For applicants that propose projects under Priority Area 
2A and 2B, at the time of application their proposal needs only to 
contain a comprehensive, written business or work plan. 
Developmental activities related to equity investment and third 
party agreements may be unrealized concepts at the time of their 
application. Thus, no points should be deducted from the total 
points for this sub-criterion for these applicants.]

    Also, if the project proposes the development of a new or expanded 
business, service, physical or commercial activity, the application 
addresses applicable elements of a business plan. Guidelines for a 
Business Plan are included in Attachment K.
    (5) The financial plan element, which indicates the project's 
potential and timetable for financial self-sufficiency, is included. It 
includes for the applicant and the third party, if appropriate, the 
following exhibits for the first three years (on a quarterly basis) of 
the business' operations: Profit and Loss Forecasts, Cash Flow 
projections, and Proforma Balance Sheets. Based on these documents, the 
application also contains an analysis of the financial feasibility of 
the project. In addition, a Source and Use of Funds statement for all 
project funding is included. (0-10 points)
Criterion IV: Results or Benefit Expected (Maximum: 20 Points)
(1) Results or Benefits Expected (Sub-Rating: 0-5 Points)
    The proposed project will produce permanent and measurable results 
including, but not limited to, employment and business ownership 
opportunities that will reduce the incidence of poverty and TANF 
assistance in the community. (0-3 points)
    The OCS grant funds, in combination with private and/or other 
public resources, are targeted into low-income communities, distressed 
communities, and/or designated Empowerment Zones and Enterprise 
Communities. (0-2 points)
(2) Community Empowerment Consideration and Partnership With Child 
Support Enforcement Agency (Sub-Rating: 0-5 Points)
    The applicant is located in an area that is characterized by 
poverty and other indicators of socio-economic distress such as a 
poverty or TANF assistance rate of at least 20%, designation as an 
Empowerment Zone or Enterprise Community (EZ/EC), high levels of 
unemployment, high levels of incidences of violence, gang activity, 
crime, drug use, and low-income custodial and non-custodial parents of 
children receiving TANF. (0-3 points)
    Applicant documents that it was involved in the preparation and 
implementation of a comprehensive community-based strategic plan to 
achieve both economic and human development in an integrated manner; 
and how the proposed project will support the goals of that plan. Also, 
if an applicant documents that it has entered into partnership 
agreements with the local TANF and/or other employment education and 
training office and/or child support enforcement agency to increase 
capability of low-income parents and families to fulfill their parental 
responsibilities. (0-2 points)

    Note 1: Applicants who have projects located in EZ/EC target 
areas or those who have included signed current agreements with 
child support enforcement agencies will automatically receive the 
maximum 2 points.

    Note 2: For applicants that apply under Priority Area 2B, 
partnership agreements refer to agreements entered into with a 
Native American Tribe and the contents of the agreement support the 
goals of participants on the reservation. If the agreement is 
included with the application, the applicant automatically receives 
the maximum 2 points.
(3) Cost-per-job (Sub-Rating: 0-5 Points)
    During the project period, the proposed project will create new, 
permanent jobs or maintain permanent jobs for low-income residents at a 
cost-per-job below $15,000 in OCS funds unless there are extenuating 
circumstances, e.g., Alaska where the cost of living is much higher. 
(0-5 points)
(4) Career Development Opportunities (Sub-Rating: 0-5 Points)
    The applicant documents that the jobs to be created for low-income 
people have career development opportunities that will promote self-
sufficiency. (0-5 points)
Criterion V: Public-Private Partnerships (Maximum: 15 Points)
(1) Mobilization of Resources: (Sub-Rating: 10 Points)
    The applicant documents it has mobilized from public and/or private 
sources the proposed balance of Non-OCS funding required to fully 
implement the project. Lesser contributions will be given consideration 
based upon the value documented. (0-10 points)

    Note 1: Applicant under Priority Area 2A and 2B, need only 
document an amount equal to the amount of OCS funds requested for 
the first segment.


    Note 2: Applicants under Priority Area 2B with a written 
partnership agreement with a tribe will be considered to have 
fulfilled the goal of mobilizing non-discretionary program dollars 
and on this basis will be granted the maximum number of points (10) 
in this sub-priority area.


    Note 3: Cash resources such as cash or loans contributed from 
all project sources (except for those contributed directly by the 
applicant) are documented by letters of commitment from third 
parties making the contribution.


    Note 4: The value of in-kind contributions for personal property 
is documented by an inventory valuation for equipment and a 
certified appraisal for real property. Also, a copy of a deed or 
other legal document is required for real property.


    Note 5: Anticipated or projected program income such as gross or 
net profits from the project or business operations will not be 
recognized as mobilized or contributed resources.

(2) Integration/Coordination of Services (Sub-Rating: 5 Points)
    The applicant demonstrates a commitment to, or agreements with, 
local agencies responsible for administering child support enforcement, 
employment education,

[[Page 37285]]

and training programs to ensure that welfare recipients, at-risk youth, 
displaced workers, public housing tenants, homeless and low-income 
individuals, and low-income custodial and non-custodial parents will be 
trained and placed in the newly created jobs. The applicant provides 
written agreements from the local TANF or other employment education 
and training offices, and child support enforcement agency indicating 
what actions will be taken to integrate/coordinate services that relate 
directly to the project for which funds are being requested. (0-2 
points)
    The agreements include: (1) The goals and objectives that the 
applicant and the TANF or other employment education and training 
offices and/or child support enforcement agency expect to achieve 
through their collaboration; (2) the specific activities/actions that 
will be taken to integrate/coordinate services on an on-going basis; 
(3) the target population that this collaboration will serve; (4) the 
mechanism(s) to be used in integrating/coordinating activities; (5) how 
those activities will be significant in relation to the goals and 
objectives to be achieved through the collaboration; and (6) how those 
activities will be significant in relation to their impact on the 
success of the OCS-funded project. (0-2 points)
    The applicant also provides documentation that illustrates the 
organizational experience related to the employment education and 
training program. (Refer to Criterion II for guidelines.) (0-1 point)
Criterion VI: Project Evaluation (Maximum: 15 Points)
    Sound evaluations are essential to the Community Economic 
Development Program. OCS requires applicants to include in their 
applications a well thought through outline of an evaluation plan for 
their project. The outline should explain how the applicant proposes to 
answer the key questions about how effectively the project is being/was 
implemented; whether the project activities, or interventions, achieved 
the expected immediate outcomes, and why or why not (the process 
evaluation); and whether and to what extent the project achieved its 
stated goals, and why or why not (the outcome evaluation). Together, 
the process and outcome evaluations should answer the question: ``What 
did this program accomplish and why did it work/not work?''
    Applicants are not being asked to submit a complete and final 
evaluation plan as part of their application; but they must include:
    (1) A well thought through outline of an evaluation plan that 
identifies the principal cause-and-effect relationships to be tested, 
and that demonstrates the applicant's understanding of the role and 
purpose of both process and outcome evaluations. (See previous 
paragraph). (0-2 points)
    A reporting format based on the grantee's documentation of its 
activities (interventions) and their effectiveness, to be included in 
the grantee's semi-annual program progress report, which will provide 
OCS with insights and lessons learned, as they become evident, 
concerning the various aspects of the work plan, such as recruitment, 
training, support, public-private partnerships, and coordination with 
other community resources, as they may be relevant to the proposed 
project. (0-2 points)
    (2) The identity and qualifications of the proposed third-party 
evaluator, or if not selected, the qualifications which will be sought 
in choosing an evaluator, which must include successful experience in 
evaluating community development programs, and the planning and/or 
evaluation of programs designed to foster self-sufficiency in low 
income populations. (0-2 points)
    (3) A commitment to the selection of a third-party evaluator 
approved by OCS, and to completion of a final evaluation design and 
plan, in collaboration with the approved evaluator and the OCS 
Evaluation Technical Assistance Contractor during the six-month start-
up period of the project, if funded. (0-2 points)
    Applicants should ensure, above all, that the evaluation outline 
presented is consistent with their project design. A clear project 
framework of the type recommended earlier identifies the key project 
assumptions about the target populations and their needs, as well as 
the hypotheses, or expected cause-effect relationships to be tested in 
the project; and the proposed project activities, or interventions, 
that will address those needs in ways that will lead to the achievement 
of the project goals of self-sufficiency. It also identifies in advance 
the most important process and outcome measures that will be used to 
identify performance success and expected changes in individual 
participants, the grantee organization, and the community. Finally, as 
noted above, the outline should provide for prompt reporting, 
concurrently with the semi-annual program progress reports, of lessons 
learned during the course of the project, so that they may be shared 
without waiting for the final evaluation report.
    (4) For all these reasons, it is important that each successful 
applicant have a third-party evaluator selected and performing at the 
very latest by the time the work program of the project is begun, and 
if possible before that time so that he or she can participate in the 
final design of the program, and in order to assure that data necessary 
for the evaluation will be collected and available. Plans for selecting 
an evaluator should be included in the application narrative. A third-
party evaluator must have knowledge about, and have experience in, 
conducting process and outcome evaluations in the job creation field, 
and have a thorough understanding of the range and complexity of the 
problems faced by the target population. (0-2 points)
    The competitive procurement regulations (45 CFR part 74, Sections 
74.40--74.48, especially section 74.43) apply to service contracts such 
as those for evaluators.
    It is suggested that applicants use no more than three (3) pages 
for this Element, plus the resume or position description for the 
evaluator, which should be included in an appendix.
Criterion VII: Budget and Budget Justification Maximum: 5 Points)
    Funds requested are commensurate with the level of effort necessary 
to accomplish the goals and objectives of the project. (0-2 points)
    The application includes a detailed budget breakdown and a 
narrative justification for each of the budget categories in the SF-
424A. The applicant presents a reasonable administrative cost. (0-2 
points)
    The estimated cost to the government of the project also is 
reasonable in relation to the anticipated results. (0-1 point)

2. Criteria for Review and Evaluation of Applications Submitted Under 
Priority Area 4

Criterion I: Need for Assistance (Maximum: 15 Points)
    The application documents that the project addresses a vital need 
in a distressed community. A distressed community is defined as a 
geographic urban neighborhood or rural community of high unemployment 
and pervasive poverty. The application documents that both the 
unemployment rate and poverty level for the targeted neighborhood or 
community is equal or greater than the national level. (0-10 points)
    The application cites the most recent available statistics from 
official sources (e.g., the recent U.S. Census or updates,

[[Page 37286]]

the State, county, city, election district and other information are 
provided in support of its contention). (0-5 points)
Criterion II: Organizational Profiles and Staffing Capacity (Maximum: 
20 Points)
(1) Organizational Profiles (Sub-Rating: 5 Points)
    The applicant shows why its organization can successfully implement 
the project for which it is requesting funds. (0-3 points)
    * Please note that this entire section relates to the 
organizational experience of the applicant organization, itself, and 
does not pertain to the experience of a partner or an affiliated or 
parent organization. Also, this section does not pertain to the 
experience of the directors, officers, employees, contractors, 
volunteers or other persons have gained from other organizations or 
otherwise.
    The organization must demonstrate that the Board of Directors are 
residents, or business or civic leaders of the community. This can be 
done by showing the address(es) of their home and/or businesses or 
local civic association. The applicant must show that its board of 
directors is active by providing a copy of the minutes of the meeting 
(properly signed by the Secretary) held within the 90 days of its 
submission of its application to OCS. The minutes must include the 
attendees and officers present that constitute a quorum and the subject 
matters discussed including its approval of the organization's 
submission of an application to OCS for funding. (0-2 points)
(2) Management Capacity (Sub-Rating: 5 Points)
    Applicant fully details its ability to implement sound and 
effective management practices and, if it has been a recipient of other 
Federal or other governmental grants, it also details that it has 
consistently complied with financial and program progress reporting and 
audit requirements. (0-3 points)
    Applicant has submitted available documentation on its management 
practices and progress reporting procedures along with a statement by a 
Certified or Licensed Public Accountant (CPA) as to the sufficiency of 
the applicant's financial management system to protect adequately any 
Federal funds awarded under the application submitted. If the applicant 
has not hired a CPA, it may include a statement signed by both the head 
of the organization and the treasurer providing assurance of the 
sufficiency of the financial management system. (0-2 points)

    [Note: The assurance or documentation of the applicant's 
management practices, etc., and statement from the accountant on the 
financial management system must address the applicant 
organization's own internal system rather than an external system of 
an affiliate, partner, management support organization, etc.]
(3) Staffing (Sub-Rating: 5 Points)
    The application fully describes (e.g., resumes) the experience and 
skills of key staff showing that they are not only well qualified but 
that their professional capabilities are relevant to the successful 
implementation of the project.
(4) Staffing responsibilities (Sub-Rating: 5 Points)
    The application describes how the assigned responsibilities of the 
staff are appropriate to the tasks identified for the project.
Criterion III: Project Approach and Evaluation (Maximum: 30 Points)
(1) Project Approach (Sub-Rating: 25 Points)
    The work plan addresses a clearly identified need in the low-income 
community as described in Criterion I. The plan must include a 
methodology to evaluate the feasibility of potential projects that 
conform to the type of projects and activities allowable under Priority 
Areas 1, 2, and 3. (0-8 points)
    The work plan discusses the preparation of a business plan on one 
selected project based on the results of the feasibility studies and a 
plan for mobilization of non-Community Economic Development funds to 
implement the business plan. (0-4 points)
    The work plan addresses activities to develop organizational 
capacity, e.g. hiring staff, training board members, staff and 
volunteers, recruiting community volunteers and developing management 
systems. (0-4 points)
    It outlines realistic quarterly time schedules of work tasks by 
which the objectives (including the development of organizational 
capacity, a business plan and mobilization of resources) will be 
accomplished.

    [Note: Because quarterly time schedules are used by OCS as a key 
instrument to monitor progress, failure to include these time 
targets will seriously reduce an applicant's point score in this 
criterion.] (0-5 points)

    It defines critical issues or potential problems that might impact 
negatively on the project and it indicates how the project objectives 
will be attained notwithstanding any such potential problems. (0-4 
points)
(2) Evaluation component (Sub-Rating: 5 Points)
    The application includes a self-evaluation component. The 
evaluation data collection and analysis procedures are specifically 
oriented to assess the degree to which the stated goals and objectives 
are achieved. (0-3 Points)
    Qualitative and quantitative measures reflective of the scheduling 
and task delineation in (1) above are used to the maximum extent 
possible. This component indicates the ways in which the potential 
grantee would integrate qualitative and quantitative measures of 
accomplishment and specific data into its program progress reports that 
are required by OCS from all organizations receiving planning grants. 
(0-2 points)
Criterion IV: Results and Benefits Expected (Maximum: 25 Points)
    (1) The proposed project around which the business plan is to be 
developed with the use of OCS grant funds is targeted into low-income 
communities, and/or designated Empowerment Zones or Enterprise 
Communities with the goals of increasing the economic conditions and 
social self-sufficiency of residents. Also, the project proposes to 
produce permanent and measurable results that will reduce the incidence 
of poverty and number of TANF recipients in the low-income area 
targeted. (0-15 points)

    [Note: This priority area permits applicants to conduct several 
feasibility studies related to various potential projects. However, 
on completion of the studies, one proposed project must be selected 
and a business plan prepared for the selected project.]

    (2) The activity targets mobilization of non-OCS program dollars 
from private sector individuals, public resources, corporations and 
foundations, if the proposed project is implemented. (0-10 points)
Criterion V: Budget and Budget Justification (Maximum: 10 Points)
    Funds requested are commensurate with the level of effort necessary 
to accomplish the goals and objectives of the project. The estimated 
cost to the government of the project also is reasonable in relation to 
the anticipated results. (0-5 points)
    The application includes a detailed budget breakdown and a 
narrative justification for each of the budget categories in the SF 
424-A. The applicant presents a reasonable administrative cost. (0-5 
points)

[[Page 37287]]

PART F--APPLICATION PROCEDURES

1. Availability of Forms

    For purposes of this announcement, all applicants will use the 
following forms: SF-424, SF-424A, SF-424B.
    Applications proposing construction projects will present all 
required financial data using SF-424A. Instructions for completing the 
SF-424, SF-424A, and SF-424B are found in Attachments B, C, and D. 
These forms may be photocopied for this application.
    An applicant may use instructions under Part D or F for preparing 
the project abstract and project narrative. They should be submitted on 
plain bond paper along with the SF-424 and related forms.
    Attachment M, Applicant's Checklist, provides a checklist to aid 
applicants in preparing a complete application package for OCS.
    The applicant must be aware that in signing and submitting the 
application for this award, it is certifying that it will comply with 
the Federal requirements concerning the following regulations: Drug-
free workplace, Attachment E; Debarment, Attachment F; and 
Environmental Tobacco Smoke, Attachment J.

2. Intergovernmental Review

    This program is covered under Executive Order 12372, 
Intergovernmental Review of Federal Programs, and 45 CFR Part 100, 
Intergovernmental Review of Department of Health and Human Services 
Programs and Activities. Under the Order, states may design their own 
processes for reviewing and commenting on proposed Federal assistance 
under covered programs.
    The following jurisdictions have elected NOT to participate in the 
Executive Order process. Applicants from these jurisdictions or for 
projects administered by Federally-recognized Indian tribes need take 
no action in regard to E.O. 12372: Alabama, Alaska, Colorado, 
Connecticut, Hawaii, Idaho, Kansas, Louisiana, Massachusetts, 
Minnesota, Montana, Nebraska, New Jersey, Ohio, Oklahoma, Oregon, 
Pennsylvania, South Dakota, Tennessee, Vermont, Virginia, Washington, 
and Palau.
    An applicant should contact its Single Point of Contact (SPOC) as 
soon as possible to alert them of the prospective applications and 
receive any necessary instructions. 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 applicant submits all required materials, if any, 
to the SPOC and indicates the date of this submittal (or the date of 
contact if no submittal is required) on the Standard Form 424, item 
16a, and submits a copy of the letter along with its application to 
OCS. 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.
    The 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, Office of Grants Management/OCSE, 4th Floor 
West, Aerospace Center, 370 L'Enfant Promenade, SW., Washington, DC 
20447.
    A list of the Single Points of Contact for each state and territory 
is included as Attachment G of this announcement.

3. Application Consideration

    Applications that meet the screening requirements in sections 4.a 
and b. below may be reviewed competitively. Such applications will be 
referred to reviewers for a numerical score and explanatory comments 
based solely on responsiveness to program priority area guidelines and 
evaluation criteria published in this announcement.
    Applications submitted under all priority areas will be reviewed by 
persons outside of the Office of Community Services. The results of 
these reviews will assist the Director and OCS program staff in 
considering competing applications.
    Reviewers' scores will weigh heavily in funding decisions but will 
not be the only factors considered. Applications generally will be 
considered in order of the average scores assigned by reviewers. 
However, highly ranked applications are not guaranteed funding since 
the Director may also consider other factors deemed relevant including, 
but not limited to, the timely and proper completion of projects funded 
with OCS funds granted in the last five (5) years; comments of 
reviewers and government officials; staff evaluation and input; 
geographic distribution; previous program performance of applicants; 
compliance with grant terms under previous DHHS grants; audit reports; 
investigative reports; and applicant's progress in resolving any final 
audit disallowances on previous OCS or other Federal agency grants.
    Applicants with two or more active OCS grants at the time of review 
may be denied funding. In addition, OCS may consider the geographic 
distribution of funds among states and the relative proportion of 
funding among rural and urban areas in accordance with Section 
680(a)(2)(D) of the CSBG Act.
    OCS reserves the right to discuss applications with other Federal 
or non-Federal funding sources to ascertain the applicant's performance 
record.

4. Criteria for Screening Applications

1. a. Initial Screening
    All applications that meet the published deadline for submission 
will be screened to determine completeness and conformity to the 
requirements of this announcement. Only those applications meeting the 
following requirements will be reviewed and evaluated competitively. 
Others will be returned to the applicants with a notation that they 
were unacceptable.
    (1) The application must contain the Application for Federal 
Assistance (SF-424), a budget (SF-424A), and signed Assurances (SF 
424B) completed according to instructions included in Parts D, F, G and 
H of this Program Announcement.
    (2) A project abstract must also accompany the standard forms.
    (3) The SF-424 and the SF-424B must be signed by an official of the 
organization applying for the grant who has authority to obligate the 
organization legally.
    (4) While there is no limit to the number applications that can be 
submitted under a specific program priority area, each application must 
be submitted for consideration under one priority area only.
    (5) All applications that exceed 65 pages will be determined 
ineligible and will be returned to the sender. (See Part F.1. ``Content 
of Application'' for details.
b. Pre-Review
    Applications that pass the initial screening will be forwarded to 
reviewers and/or OCS staff prior to the programmatic review to verify 
that the applications comply with this Program Announcement in the 
following areas:
    (1) Eligibility: Applicant must comply with the eligibility 
requirements for the priority area under which funds are being 
requested. Proof of non-profit status, (see Eligible Applicants under 
Part B, Application Prerequisites) must

[[Page 37288]]

be included in the appendices of the project narrative where 
applicable. Applicants that do not submit proof of non-profit status 
will be disqualified. Applicants must also be aware that the 
applicant's legal name as required in SF-424, Item 5 must match that 
listed as corresponding to the Employer Identification Number at Item 
6.
    (2) Number of Projects: While there is no limit to the numbers of 
applications, an application may contain only one project under 
Priority Areas 1, 2, and 3. However, an application may contain more 
than one project under Priority Area 4 where applicants are researching 
and conducting feasibility studies of various project opportunities.
    (3) Grant amount: The amount of funds requested does not exceed the 
limits indicated in the appropriate priority area.
    (4) Written Agreement When Applicant Proposes to Make Equity 
Investment or Loan: (Priority Areas 1, 2, and 3): The application 
contains a written third party agreement, or a discussion of a proposed 
agreement, signed by the applicant and the third party that includes 
all of the elements required in Part B, item 9.
    An application will be disqualified if it does not conform to one 
or more of the above requirements.
c. Panel Reviews
    Applications that pass the initial and pre-rating review will be 
assessed and scored by panels of reviewers. Each reviewer will give a 
numerical score for each application reviewed. These numerical scores 
will be supported by explanatory statements on a formal rating form 
describing major strengths and weaknesses under each applicable 
criterion published in the announcement.
    The panelists will use the criteria found in Part D along with the 
specific requirements contained under each program priority area as 
described in Part C.

PART G--CONTENTS OF APPLICATION AND RECEIPT PROCESS

1. Contents of Application

    Each submission should include one signed original application and 
two additional copies of the application. The font size must not be 
smaller than a 12 pitch and the margins must be at least 1'' wide on 
all sides. The application package including the sections for the table 
of contents, project abstract, project and budget narratives and 
business plan must not exceed 65 pages for applications submitted under 
Priority Areas 1, 2, and 3 and 35 pages under Priority area 4. The 
instruction for page limitation is included below in items e and f.


    Note: It is important to note that applications with the above 
cited sections exceeding the page limitation will be determined 
ineligible and will be returned to the sender.


    The page limitation does not include the following attachments and 
appendices: Standard Forms for Assurances, Certifications, Disclosures 
and appendices listed below. The instructions are included below in 
items c, d, g, h, i, j, k, l, m, and n. Application pages should be 
numbered sequentially throughout the application package, beginning 
with an abstract of the proposed project as page number one. Each 
application must include all of the following, in the order listed 
below:
    a. Table of Contents.
    b. Completed Standard Form 424--(Attachment B)--that has been 
signed by an official of the organization applying for the grant who 
has authority to obligate the organization legally.
    c. A Standard Form 424A--Budget Information--Non-Construction 
Programs (Attachment C).
    d. A budget justification for each object class category required 
under Section B, SF-424A (Attachment C).
    e. A Project Abstract--A paragraph that succinctly describes the 
project in 500 characters or less. Section 424A (Attachment C).
    f. A Project Narrative. The project narrative must address the 
specific concerns mentioned under the relevant priority area 
description in Part C. The narrative should also provide information on 
how the application meets the evaluation criteria in Part D and 
Guidelines for a Business Plan (Attachment K) of the Program 
Announcement.
    g. A Standard Form 424B Assurances--Non-Construction (Attachment 
D)--All applicants, whether or not their project involves construction, 
must sign and submit the Standard Form 424B with their applications.
    h. Certification Regarding Lobbying--(Attachment H)--Applicant must 
sign and return an executed copy of the lobbying certification.
    i. Disclosure of Lobbying Activities, SF-LLL (Attachment H)--Fill 
out, sign and date the form.
    j. DHHS Regulations Applying to All Applicants/Grantees Under the 
Community Economic Development Program (Attachment I)--By signing and 
submitting the application, applicant is certifying that it will comply 
with these regulations.
    k. Certification Regarding Environmental Tobacco Smoke (Attachment 
J)--Applicant must make the appropriate certification of their 
compliance with the Pro-Children Act of 1994. By signing and submitting 
the application, applicant is providing the certification regarding 
environmental tobacco smoke and need not mail back the certification 
with their applications.
    l. Certification Regarding Drug-Free Workplace Requirement 
(Attachment E): By signing and submitting the application, applicant is 
certifying that it will comply with this regulation.
    m. Certification Regarding Debarment, Suspension, and Other 
Responsibility Matters: By signing and submitting the application, 
applicant is certifying that it will comply with this regulation.
    n. Proof of Non-Profit Status: The non-profit agency can accomplish 
this by providing a copy of either the applicant's listing in the 
Internal Revenue Service's (IRS) most recent list of tax-exempt 
organizations, a copy of the currently valid IRS tax exemption 
certificate, or, a copy of the articles of incorporation bearing the 
seal of the State in which the corporation or association is domiciled. 
Applicants that do not include proof of this status with the 
applications will be disqualified.
    Other information needed on the applicant organization includes a 
listing of the current Board of Directors' names, titles and addresses 
(Note: If the applicant is proposing an equity transaction, this is 
also needed for the third party organization.); resumes of the project 
director and other key management team members; written agreements, 
i.e., third party agreements, coordination with TANF, etc.; a copy of 
the submission to the State Single Point of Contact, if applicable; 
Single Point of Contact comments, where applicable; certification 
regarding anti-lobbying activities; and a disclosure of lobbying 
activities.

2. Acknowledgment of Receipt

    All applicants will receive an acknowledgment notice with an 
assigned identification number. Applicants are requested to supply a 
self-addressed mailing label with their application that can be 
attached to this acknowledgment notice. The identification number and 
the program priority area letter code must be referred to in all 
subsequent communications with OCS concerning the application. If an 
acknowledgment is not received within two weeks after the deadline 
date, please notify the OCS Operations Center by telephone at (703) 
351-7676.

[[Page 37289]]

    [Note: To facilitate receipt of this acknowledgment from the OCS 
Operations center, applicant should include a cover letter with the 
application containing an E-mail address and facsimile (FAX) number 
if these resources are available to applicant.]

PART H--INSTRUCTIONS FOR COMPLETING APPLICATION PACKAGE

    It is suggested that the applicant reproduce the SF-424 and SF-
424A, and type its organization's legal name on the copies. If an item 
on the SF-424 cannot be answered or does not appear to be related or 
relevant to the assistance requested, write NA for Not Applicable.
    Prepare your application in accordance with the standard 
instructions given in Attachments B and C corresponding to the forms, 
as well as the OCS specific instructions set forth below:

1. SF-424 Application for Federal Assistance

    Item 1. For the purposes of this announcement, all applications are 
considered Applications; there are no Pre-Applications. For the purpose 
of this announcement, construction projects involve land improvements 
and development or major renovation of (new or existing) facilities and 
buildings, including their improvements, fixtures and permanent 
attachments. All others are considered non-construction. Check the 
appropriate box under Application. Whether applications involve 
construction or non-construction projects, all applicants are required 
to complete the Budget Information--Non-construction Programs sections 
of SF-424A.
    Items 5 and 6. The legal name of the applicant must match that 
listed as corresponding to the Employer Identification Number. Where 
the applicant is a previous Department of Health and Human Services 
grantee, enter the Central Registry System Employee Identification 
Number (EIN) and the Payment Identifying Number (PIN), if one has been 
assigned, in the block entitled Federal Identifier located at the top 
right hand corner of the form.
    Item 7. If the applicant is a non-profit corporation, enter N in 
the box and specify non-profit corporation in the space marked Other. 
Any non-profit organization submitting an application must submit proof 
of its non-profit status in its applications at time of submission.
    Item 9. Enter DHHS-ACF/OCS.
    Item 10. The Catalog of Federal Domestic Assistance number for OCS 
programs covered under this announcement is 93.570. The title is CSBG 
Community Economic Development Awards.
    Item 11. In addition to a brief descriptive title of the project, 
indicate one of the following program priority areas for which funds 
are being requested.

OP--Priority Area 1. Community Economic Development (Operational 
Projects)
IDP--Priority Area 2A. Community Economic Development (Incremental 
Development Projects)
NAT--Priority Area 2B. (Native American Tribes, Incremental Development 
Project)
DP--Priority Area 3. Community Economic Development (Developmental 
Projects)
PP--Priority Area 4. Community Economic Development (Planning Projects)

2. SF-424A--Budget Information--Non-Construction Programs

    See instructions accompanying this form as well as the instructions 
set forth below:
    In completing these sections, the Federal funds budget entries will 
relate to the requested OCS Community Economic Development funds only, 
and Non-Federal will include mobilized funds from all other sources--
applicant, state, local, and other. Federal funds other than requested 
OCS Community Economic Development funding should be included in Non-
Federal entries.
    The budget forms in SF-424A are only to be used to present grant 
administrative costs and major budget categories. Financial data that 
is generated as part of a project Business Plan or other internal 
project cost data must be separate and should appear as part of the 
project Business Plan or other project implementation data.
    Sections A and D of SF-424A must contain entries for both Federal 
(OCS) and non-Federal (mobilized) funds. Section B contains entries for 
Federal (OCS) funds only. Clearly identified continuation sheets in SF-
424A format should be used as necessary.
Section A--Budget Summary
    Lines 1-4:

--Column (a): Line 1--Enter CSBG Community Economic Development
--Column (b): Line 1--Enter 93.570
--Columns (c) and (d): Leave Blank
--Columns (e) through (g): Line 1; enter the appropriate amounts needed 
to support the project for the budget period.

    Line 5: Enter the figures from Line 1 for all columns completed as 
required, (c), (d), (3), (f), and (g).
Section B--Budget Categories
    Allowability of costs is governed by applicable cost principles set 
forth in 45 CFR part 74. A budget narrative must be submitted that 
includes the appropriate justifications as stated.
    This section should contain entries for OCS funds only. For all 
projects, this first budget period will be entered in Column (1).
    Budget estimates for administrative costs must be supported by 
adequate detail for the grants officer to perform a cost analysis and 
review. Adequately detailed calculations for each budget object class 
are those that reflect estimation methods, quantities, unit costs, 
salaries, and other similar quantitative detail sufficient for the 
calculation to be duplicated. For any additional object class 
categories included under the object class other, identify the 
additional object class(es) and provide supporting calculations.
    Supporting narratives and justifications are required for each 
budget category, with emphasis on unique/special initiatives; large 
dollar amounts; local, regional, or other travel; new positions; and 
major equipment purchases.
    A detailed itemized budget with a separate budget justification for 
each major item should be included as indicated below:
Line 6a
    Personnel--Enter the total costs of salaries and wages.
    Justification--Identify the project director and staff. Specify by 
title or name the percentage of time allocated to the project, the 
individual annual salaries and the cost to the project (both Federal 
and non-Federal) of the organization's staff that will be working on 
the project.
Line 6b
    Fringe Benefits--Enter the total costs of fringe benefits unless 
treated as part of an approved indirect cost rate that is entered on 
Line 6j.
    Justification--Enter the total costs of fringe benefits, unless 
treated as part of an approved indirect cost rate. Provide a breakdown 
of amounts and percentages that comprise fringe benefit costs.
Line 6c
    Travel--Enter total cost of all travel by employees of the project. 
Do not enter costs for consultant's travel.
    Justification--Include the name(s) of traveler(s), total number of 
trips, destinations, length of stay, mileage rate, transportation costs 
and subsistence allowances. Traveler must

[[Page 37290]]

be a person listed under the personnel line or employee being paid 
under non-federal share. (Note: Local transportation and consultant 
travel costs are entered on Line 6h.)
Line 6d
    Equipment--Enter the total estimated costs for all non-expendable 
personal property to be acquired by the project. Equipment means 
tangible nonexpendable personal property, including exempt property, 
charged directly to the award having a useful life of more than one 
year and an acquisition cost of $5,000 or more per unit. However, 
consistent with recipient policy, lower limits may be established.
    Justification--Provide breakdown of cost per item. Items that cost 
less than $5,000 should be included under Supplies.
Line 6e
    Supplies--Enter the total estimated costs of all tangible personal 
property (supplies) other than that included on line 6d.
    Justification--Provide a general description as to what is being 
purchased such as type of supplies, office, classroom, medical, etc. 
Also property that is not equipment and costs less than $5,000 per 
item.
Line 6f
    Contractual--Enter the total costs of all contracts, including (1) 
procurement contracts (except those which belong on other lines such as 
equipment, supplies, etc.) and (2) contracts with secondary recipient 
organizations including delegate agencies and specific projects(s) or 
businesses to be financed by the applicant.
    Justification--Contractual cannot be a person--it must be the name 
of an organization, firm, etc. Consultant cost goes in line 6h--Other.
Line 6g
    Construction--Enter the estimated costs of renovation, repair, or 
new construction. Identify the type of construction activity and costs 
associated, i.e., concrete, HVAC, electrical, etc. Provide narrative 
justification and breakdown of costs.
Line 6h
    Other--Enter the total of all other costs. Such costs, where 
applicable, may include, but are not limited to insurance, fees and 
travel paid directly to individual consultants, local transportation 
(all travel which does not require per diem is considered local 
travel), space and equipment rentals, printing, computer use training 
costs including tuition and stipends, training service costs including 
wage payments to individuals and supportive service payments, and staff 
development costs.
    Justification--Provide as much detail as you can. Some items may 
have to be defined more than others.
Line 6j
    Indirect Charges--Enter the total amount of indirect costs. This 
line should be used only when the applicant currently has an indirect 
cost rate approved by DHHS or other Federal agencies.
    If the applicant organization is in the process of initially 
developing or renegotiating a rate, it should, immediately upon 
notification that an award will be made, develop a tentative indirect 
cost rate application based on its most recently completed fiscal year 
in accordance with the principles set forth in the pertinent DHHS Guide 
for Establishing Indirect Cost Rates and submit it to the appropriate 
DHHS Regional Office. It should be noted that when an indirect cost 
rate is requested, those costs included in the indirect cost pool 
cannot be also budgeted or charged as direct costs to the grant. 
Indirect costs consistent with approved Indirect Cost Rate Agreements 
are allowable.
Section C--Non-Federal Resources
    This section is to record the amounts of non-Federal resources that 
will be used to support the project. Non-Federal resources mean other 
than OCS funds for which the applicant is applying. Therefore, 
mobilized funds from other Federal programs where authorizing statutes 
permit their use as non-Federal sources, should be entered on these 
lines. Provide a brief listing of the non-Federal resources on a 
separate sheet and describe whether it is a grantee-incurred cost or a 
third-party in-kind contribution. The firm commitment of these 
resources must be documented and submitted with the application in 
order to be given credit under the criterion for Public-Private 
Partnerships.
    Except in unusual situations, this documentation must be in the 
form of letters of commitment from the organization(s)/ individuals 
from which funds will also be received.

PART I--POST AWARD INFORMATION AND REPORTING REQUIREMENTS

1. Notification of Grant Award

    Following approval of the applications selected for funding, notice 
of project approval and authority to draw down project funds will be 
made in writing. The official award document is the Financial 
Assistance Award that provides the amount of Federal funds approved for 
use in the project, the budget period for which support is provided, 
the terms and conditions of the award, the total project period for 
which support is contemplated, and the total financial participation 
from the award recipient.
    General Conditions and Special Conditions (where the latter are 
warranted) that will be applicable to grants, are subject to the 
provisions of 45 CFR Part 74.

2. Attendance at OCS Training Conference

    The Executive Director and/or Project Director will be required to 
attend a two-day national workshop in Washington, DC The project budget 
must include funds for travel to attend this conference.

3. Reporting Requirements

    Grantees will be required to submit semi-annual progress and 
financial reports (SF-269) as well as a final progress and financial 
report.
    Under the Paperwork Reduction Act of 1995, Public Law 104-13, an 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number. This program announcement does not contain 
information collection requirements beyond those approved for ACF grant 
applications under OMB Control Number 0970-0139, which expires 12/31/
2003.

4. Audit Requirements

    Grantees are subject to the audit requirements in 45 CFR parts 74 
and OMB Circular A-133. If an applicant will not be requesting indirect 
costs, it should anticipate in its budget request the cost of having an 
audit performed at the end of the grant period.

5. Lobbying

    Section 319 of Public Law 101-121, signed into law on October 23, 
1989, imposes prohibitions and requirements for disclosure and 
certification related to lobbying on recipients of Federal contracts, 
grants, cooperative agreements, and loans. It provides limited 
exemptions for Indian tribes and tribal organizations. Current and 
prospective recipients (and their subtier contractors and/or grantees) 
are prohibited from using appropriated funds for lobbying Congress or 
any Federal agency in connection with the award of a contract, grant, 
cooperative agreement or loan. In addition, for each award action in 
excess of $100,000 (or $150,000 for loans) the law requires

[[Page 37291]]

recipients and their subtier contractors and/or sub grantees: (1) To 
certify that they have neither used nor will use any appropriated funds 
for payment to lobbyists; (2) to submit a declaration setting forth 
whether payments to lobbyists have been or will be made out of non-
appropriated funds and, if so, the name, address, payment details, and 
purpose of any agreements with such lobbyists whom recipients or their 
subtler contractors or sub grantees will pay with the non-appropriated 
funds; and (3) to file quarterly up-dates about the use of lobbyists if 
an event occurs that materially affects the accuracy of the information 
submitted by way of declaration and certification. The law establishes 
civil penalties for noncompliance and is effective with respect to 
contracts, grants, cooperative agreements and loans entered into or 
made on or after December 23, 1989. See Attachment H for certification 
and disclosure forms to be submitted with the applications for this 
program.

6. Applicable Federal Regulations

    Attachment I provides a list of the regulations that apply to all 
applicants/grantees under the FY 2002 (Supplementary) and FY 2002 
Community Economic Development Programs.

    Dated: May 3, 2002.
Clarence Carter,
Director, Office of Community Services.

List of Attachments

A--2001 Poverty Income Guidelines
B--Standard Form 424, Application for Federal Assistance
C--Standard Form 424A, Budget Information--Non-Construction Programs
D--Standard Form 424B, Assurances--Non-Construction Programs
E--Certification Regarding Drug-Free Workplace Requirements
F--Certification of Debarment, Suspension and Other Responsibility 
Matters
G--Intergovernmental Review State Single Points of Contact Listing 
(SPOC List)
H--Certification Regarding Lobbying and Disclosure of Lobbying 
Activities, SF LLL
I--DHHS Regulations Applying to all Applicants/Grantees Under the 
Fiscal Year 2002 Community Economic Development Program
J--Certification Regarding Environmental Tobacco Smoke
K--Guidelines for a Business Plan
L--Table of North American Industry Classification System (NAIC)
M--Applicant's Checklist


                               Attachment A
------------------------------------------------------------------------
                                                               Poverty
                    Size of family unit                       guidelines
------------------------------------------------------------------------
   2001 POVERTY INCOME GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE
                        DISTRICT OF COLUMBIA \1\
------------------------------------------------------------------------
1..........................................................       $8,590
2..........................................................       11,610
3..........................................................       14,630
4..........................................................       17,650
5..........................................................       20,670
6..........................................................       23,690
7..........................................................       26,710
8..........................................................       29,730
------------------------------------------------------------
              2001 POVERTY INCOME GUIDELINES FOR ALASKA \2\
------------------------------------------------------------------------
1..........................................................      $10,730
2..........................................................       14,510
3..........................................................       18,290
4..........................................................       22,070
5..........................................................       25,850
6..........................................................       29,630
7..........................................................       33,410
8..........................................................      37,190
              2001 POVERTY INCOME GUIDELINES FOR HAWAII \3\
------------------------------------------------------------------------
1..........................................................       $9,890
2..........................................................       13,360
3..........................................................       16,830
4..........................................................       20,300
5..........................................................       23,770
6..........................................................       27,240
7..........................................................       30,710
8..........................................................      34,180
------------------------------------------------------------------------
\1\ For family units with more than 8 members, add $3,020 for each
  additional member. (The same increment applies to smaller family sizes
  also, as can be seen in the figures above.)
\2\ For family units with more than 8 members, add $3,780 for each
  additional member. (The same increment applies to smaller family sizes
  also, as can be seen in the figures above.)
\3\ For family units with more than 8 members, add $3,470 for each
  additional member. (The same increment applies to smaller family sizes
  also, as can be seen in the figures above.)


BILLING CODE 4184-01-P

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BILLING CODE 4184-01-C

[[Page 37293]]

INSTRUCTIONS FOR THE SF-424

    Public reporting burden for this collection of information is 
estimated to average 45 minutes per response, including time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden, to the Office of Management and 
Budget, Paperwork Reduction Project (0348-0043), Washington, DC 20503.
    PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF 
MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE 
SPONSORING AGENCY.
    This is a standard form used by applicants as a required facesheet 
for preapplications and applications submitted for Federal assistance. 
It will be used by Federal agencies to obtain applicant certification 
that states which have established a review and comment procedure in 
response to Executive Order 12372 and have selected the program to be 
included in their process, have been given an opportunity to review the 
applicant's submission.
Item and Entry
    1. Self-explanatory.
    2. Date application submitted to Federal agency (or State if 
applicable) and applicant's control number (if applicable).
    3. State use only (if applicable).
    4. If this application is to continue or revise an existing award, 
enter present Federal identifier number. If for a new project, leave 
blank.
    5. Legal name of applicant, name of primary organization unit which 
will undertake the assistance activity, complete address of the 
applicant, and name and telephone number of the person to contact on 
matters related to this application.
    6. Enter Employer Identification Number (EIN) as assigned by the 
Internal Revenue Service.
    7. Enter the appropriate letter in the space provided.
    8. Check appropriate box and enter appropriate letter(s) in the 
space(s) provided:

--``New'' means a new assistance award.
--``Continuation'' means an extension for an additional funding/budget 
period for a project with a projected completion date.
--``Revision'' means any change in the Federal Government's financial 
obligation or contingent liability from an existing obligation.

    9. Name of Federal agency from which assistance is being requested 
with this application.
    10. Use the Catalog of Federal Domestic Assistance number and title 
of the program under which assistance is requested.
    11. Enter a brief descriptive title of the project. If more than 
one program is involved, you should append an explanation on a separate 
sheet. If appropriate (e.g., construction or real property projects), 
attach a map showing project location. For preapplications, use a 
separate sheet to provide a summary description of this project.
    12. List only the largest political entities affected (e.g., State, 
counties, cities).
    13. Self-explanatory.
    14. List the applicant's Congressional District and any District(s) 
affected by the program or project.
    15. Amount requested or to be contributed during the first funding/
budget period by each contributor. Value of in-kind contributions 
should be included on appropriate lines as applicable. If the action 
will result in a dollar change to an existing award, indicate only the 
amount of the change. For decreases, enclose the amounts in 
parentheses. If both basic and supplemental amounts are included, show 
breakdown on an attached sheet. For multiple program funding, use 
totals and show breakdown using same categories as item 15.
    16. Applicants should contact the State Single Point of Contact 
(SPOC) for Federal Executive Order 12372 to determine whether the 
application is subject to the State intergovernmental review process.
    17. This question applies to the applicant organization, not the 
person who signs as the authorized representative. Categories of debt 
include delinquent audit disallowances, loans and taxes.
    18. To be signed by the authorized representative of the applicant. 
A copy of the governing body's authorization for you to sign this 
application as official representative must be on file in the 
applicant's office. (Certain Federal agencies may require that this 
authorization be submitted as part of the application.)
BILLING CODE 4184-01-M

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[[Page 37295]]


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BILLING CODE 4184-01-C

[[Page 37296]]

    Public reporting burden for this collection of information is 
estimated to average 180 minutes per response, including time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden, to the Office of Management and 
Budget, Paperwork Reduction Project (0348-0044), Washington, DC 20503.
    Please do not return your completed form to the Office of 
Management and Budget. Send it to the address provided by the 
sponsoring agency.

General Instructions

    This form is designed so that application can be made for funds 
from one or more grant programs. In preparing the budget, adhere to any 
existing Federal grantor agency guidelines which prescribe how and 
whether budgeted amounts should be separately shown for different 
functions or activities within the program. For some programs, grantor 
agencies may require budgets to be separately shown by function or 
activity. For other programs, grantor agencies may require a breakdown 
by function or activity. Sections A, B, C, and D should include budget 
estimates for the whole project except when applying for assistance 
which requires Federal authorizations in annual of other funding period 
increments. In the latter case, Sections A, B, C, and D should provide 
the budget for the first budgeted period (usually a year) and Section E 
should present the need for Federal assistance in the subsequent budget 
periods. All applications should contain a breakdown by the object 
class categories shown in Lines a-k of Section B.

Section A. Budget Summary Lines 1-4 Columns (a) and (b)

    For applications pertaining to a single Federal grant program 
(Federal Domestic Assistance Catalog number) and not requiring a 
functional or activity breakdown enter on Line 1 under Column (a) the 
Catalog program title and the Catalog number in Column (b).
    For applications pertaining to a single program requiring budget 
amounts by multiple functions or activities, enter the name of each 
activity or function on each line in Column (a), and enter the Catalog 
number in Column (b). For applications pertaining to multiple programs 
where none of the programs require a breakdown by function or activity, 
enter the Catalog program title on each line in Column (a) and the 
respective Catalog number on each line in Column (b).
    For applications pertaining to multiple programs where one or more 
programs require a breakdown by function or activity, prepare a 
separate sheet for each program requiring the breakdown. Additional 
sheets should be used when one form does not provide adequate space for 
all breakdown of data required. However, when more than one sheet is 
used, the first page should provide the summary totals by programs.
Lines 1-4, Columns (c) through (g)
    For new applications, leave Column (c) and (d) blank. For each line 
entry in Columns (a) and (b), enter in Columns (e), (f), and (g) the 
appropriate amounts of funds needed to support the project for the 
first funding period (usually a year).
    For continuing grant program applications, submit these forms 
before the end of each funding period as required by the grantor 
agency. Enter in Columns (c) and (d) the estimated amounts of funds 
which will remain unobligated at the end of the grant funding period 
only if the Federal grantor agency instructions provide for this. 
Otherwise, leave these columns blank. Enter in columns (e) and (f) the 
amounts of funds needed for the upcoming period. The amount(s) in 
Column (g) should be the sum of amounts in Columns (e) and (f).
    For supplemental grants and changes to existing grants, do not use 
Columns (c) and (d). Enter in Columns (e) the amount of the increase of 
decrease of Federal funds and enter in Columns (f) the amount of the 
increase or decrease of non-Federal funds. In Column (g) enter the new 
total budgeted amount (Federal and non-Federal) which includes the 
total previous authorized budgeted amounts plus or minus, as 
appropriate, the amounts shown in Columns (e) and (f). The amount(s) in 
Column (g) should not equal the sum of amounts in Columns (e) and (f).
    Line 5--Show the totals for all columns used.

Section B. Budget Categories

    In the column headings (1) through (4), enter the titles of the 
same programs, functions, and activities shown in Line 1-4, Column (a), 
Section A. When additional sheets are prepared for Section A, provide 
similar column headings on each sheets. For each program, function or 
activity, fill in the total requirements for funds (both Federal and 
non-Federal) by object class categories.
    Line 6a-i--Show the totals of Lines 6a to 6h in each column.
    Line 6j--Show the amount of indirect cost.
    Line 6k--Enter the total of amounts on Lines 6i and 6j. For all 
applications for new grants and continuation grants the total amount in 
column (5), Line 6k, should be the same as the total amount shown in 
Section A, Column (g), Line 5. For supplemental grants and changes to 
grants, the total amount of the increase or decrease as shown in 
Columns (1)-(4), Line 6k should be the same as the sum of the amounts 
in Section A, Columns (e) and (f) on Line 5.
    Line 7--Enter the estimated amount of income, if any, expected to 
be generated from this project. Do not add or subtract this amount from 
the total project amount. Show under the program narrative statement 
the nature and source of income. The estimated amount of program income 
may be considered by the Federal grantor agency in determining the 
total amount of the grant.

Section C. Non-Federal Resources

    Lines 8-11 Enter amounts of non-Federal resources that will be used 
on the grant. If in-kind contributions are included, provide a brief 
explanation on a separate sheet.
    Column (a)--Enter the program titles identical to Column (a), 
Section A. A breakdown by function or activity is not necessary.
    Column (b)--Enter the contribution to be made by the applicant.
    Colunn (c)--Enter the amount of the State's cash and in-kind 
contribution if the applicant is not a State or State agency. 
Applicants which are a State or State agencies should leave this column 
blank.
    Column (d)--Enter the amount of cash and in-kind contributions to 
be made from all other sources.
    Column (e)--Enter totals of Columns (b), (c), and (d).
    Line 12--Enter the total for each of Columns (b)-(e). The amount in 
Column (e) should be equal to the amount of Line 5, Column (f), Section 
A.

Section D. Forecasted Cash Needs

    Line 13--Enter the amount of cash needed by quarter from the 
grantor agency during the first year.
    Line 14--Enter the amount of cash from all other sources needed by 
quarter during the first year.
    Line 15--Enter the totals of amounts of Lines 13 and 14.

[[Page 37297]]

Section E. Budget Estimates of Federal Funds Needed for Balance of the 
Project

    Lines 16-19--Enter in Column (a) the same grant program titles 
shown in Column (a), Section A. A breakdown by function or activity is 
not necessary. For new applications and continuation grant 
applications, enter in the proper columns amounts of Federal funds 
which will be needed to complete the program or project over the 
succeeding funding periods (usually in year). This section need not be 
completed for revisions (amendment, changes, or supplements) to funds 
for the current year of existing grants.
    If more than four lines are needed to list the program titles, 
submit additional schedules as necessary.
    Line 20--Enter the total for each of the Columns (b)-(e). When 
additional schedules are prepared for this section, annotate 
accordingly and show the overall totals in this line.

Section F. Other Budget Information

    Line 21--Use this space to explain amounts for individual direct 
object class cost categories that may appear to be out of the ordinary 
or to explain as required by the Federal grantor agency.
    Line 22--Enter the type of indirect rate (provisional, 
predetermined, final or fixed) that will be in effect during the 
funding period, the estimated amount of the base to which the rate is 
applied, and the total indirect expense.
    Line 23--Provide any other explanations or comments deemed 
necessary.

Attachment D

Assurances--Non-Construction Programs
    Public reporting burden for this collection of information is 
estimated to average 15 minutes per response, including time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden, to the Office of Management and 
Budget, Paperwork Reduction Project (0348-0040), Washington, DC 20503.
    PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF 
MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE 
SPONSORING AGENCY.

    Note: Certain of these assurances may not be applicable to your 
project or program. If you have questions, please contact the 
awarding agency. Further, certain Federal awarding agencies may 
require applicants to certify to additional assurances. If such is 
the case, you will be notified.

    As the duly authorized representative of the applicant I certify 
that the applicant:
    1. Has the legal authority to apply for Federal assistance, and the 
institutional, managerial and financial capability (including funds 
sufficient to pay the non-Federal share of project costs) to ensure 
proper planning, management and completion of the project described in 
this application.
    2. Will give the awarding agency, the Comptroller General of the 
United States, and if appropriate, the State, through any authorized 
representative, access to and the right to examine all records, books, 
papers, or documents related to the award; and will establish a proper 
accounting system in accordance with generally accepted accounting 
standard or agency directives.
    3. Will establish safeguards to prohibit employees from using their 
positions for a purpose that constitutes or presents the appearance of 
personal or organizational conflict of interest, or personal gain.
    4. Will initiate and complete the work within the applicable time 
frame after receipt of approval of the awarding agency.
    5. Will comply with the Intergovernmental Personnel Act of 1970 (42 
U.S.C. [sect][sect] 4728-4763) relating to prescribed standards for 
merit systems for programs funded under one of the nineteen statutes or 
regulations specified in Appendix A of OPM's Standard for a Merit 
System of Personnel Administration (5 CFR 900, Subpart F).
    6. Will comply with all Federal statues relating to 
nondiscrimination. These include but are not limited to: (a) Title VI 
of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits 
discrimination on the basis of race, color or national origin; (b) 
title IX of the Education Amendments of 1972, as amended (20 U.S.C. 
[sect][sect] 1681-1683, and 1685--1686), which prohibits discrimination 
on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, 
as amended (29 U.S.C. [sect][sect] 794), which prohibits discrimination 
on the basis of handicaps; (d) the Age Discrimination Act of 1975, as 
amended (42 U.S.C. [sect][sect] 6101-6107), which prohibits 
discrimination on the basis of age;
    (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), 
as amended, relating to nondiscrimination on the basis of drug abuse; 
(f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, 
Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, 
relating to nondiscrimination on the basis of alcohol abuse or 
alcoholism; (g) [sect][sect] 523 and 527 of the Public Health Service 
Act of 1912 (42 U.S.C. [sect][sect] 290 dd-3 and 290 ee-3), as amended, 
relating to confidentiality of alcohol and drug abuse patient records; 
(h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. [sect][sect] 
3601 et seq.), as amended, relating to non-discrimination in the sale, 
rental or financing of housing; (i) any other nondiscrimination 
provisions in the specific statute(s) under which application for 
Federal assistance is being made; and (j) the requirements of any other 
nondiscrimination statute(s) which may apply to the application.
    7. Will comply, or has already complied, with the requirements of 
Title II and III of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair 
and equitable treatment of persons displaced or whose property is 
acquired as a result of Federal or federally assisted programs. These 
requirements apply to all interests in real property acquired for 
project purposes regardless of Federal participation in purchases.
    8. Will comply with the provisions of the Hatch Act (5 U.S.C. 
[sect][sect] 1501-1508 and 7324-7328) which limit the political 
activities of employees whose principal employment activities are 
funded in whole or in part with Federal Funds.
    9. Will comply, as applicable, with the provisions of the Davis-
Bacon Act (40 U.S.C. [sect][sect] 276a to 276a-7), the Copeland Act (40 
U.S.C. [sect] 276c and 18 U.S.C. [sect] 874), and the Contract Work 
Hours and Safety Standards Act (40 U.S.C. [sect][sect] 327-333), 
regarding labor standards for federally assisted construction 
subagreements.
    10. Will comply, if applicable, with flood insurance purchase 
requirements of Section 102(a) of the Flood Disaster Protection Act of 
1973 (P.L. 93-234) which requires recipients in a special flood hazard 
area to participate in the program and to purchase flood insurance if 
the total cost of insurable construction and acquisition is $10,000 or 
more.
    11. Will comply with environmental standards which may be 
prescribed pursuant to the following: (a) institution of environmental 
quality control measures under the National Environmental Policy Act of 
1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of 
violating facilities pursuant to EO 11738; (c) protection of wetland 
pursuant to EO

[[Page 37298]]

11990; (d) evaluation of flood hazards in floodplains in accordance 
with EO 11988; (e) assurance of project consistency with the approved 
State management program developed under the Coastal Zone Management 
Act of 1972 (16 U.S.C. [sect][sect] 1451 et seq.); (f) conformity of 
Federal actions to State (Clear Air) Implementation Plans under Section 
176)(c) of the Clear Air Act of 1955, as amended (42 U.S.C. 
[sect][sect] 7401 et seq.); (g) protection of underground sources of 
drinking water under the Safe Drinking Water Act of 1974, as amended, 
(P.L. 93-523); and (h) protection of endangered species under the 
Endangered Species Act of 1973, as amended, (P.L. 93-205).
    12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 
U.S.C. [sect][sect] 1271 et seq.) related to protecting components of 
potential components of the national wild and scenic rivers system.
    13. Will assist the awarding agency in assuring compliance with 
Section 106 of the National Historic Preservation Act of 1966, as 
amended (16 U.S.C. [sect] 470), EO 11593 (identification and protection 
of historic properties), and the Archaeological and Historic 
Preservation Act of 1974 (16 U.S.C [sect] 469a-1 et seq.).
    14. Will comply with P.L. 93-348 regarding the protection of human 
subjects involved in research, development, and related activities 
supported by this award of assistance.
    15. Will comply with the Laboratory Animal Welfare Act of 1966 
(P.L. 89-544, as amended, 7 U.S.C. [sect][sect] 2131 et seq.) 
pertaining to the care, handling, and treatment of warm blooded animals 
held for research, teaching, or other activities supported by this 
award of assistance.
    16. Will comply with the Lead-Based Paint Poisoning Prevention Act 
(42 U.S.C. [sect][sect] 4801 et seq.) which prohibits the use of lead 
based paint in construction or rehabilitation of residence structures.
    17. Will cause to be performed the required financial and 
compliance audits in accordance with the Single Audit Act of 1984.
    18. Will comply with all applicable requirements of all other 
Federal laws, executive orders, regulations and policies governing this 
program.
-----------------------------------------------------------------------
Signature of Authorized Certifying Official
-----------------------------------------------------------------------
Title
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Applicant Organization
-----------------------------------------------------------------------
Date Submitted

Attachment E

Certification Regarding Drug-Free Workplace Requirements

    This certification is required by the regulations implementing the 
Drug-Free Workplace Act of 1988: 45 CFR Part 76, Subpart, F. Sections 
76.630(c) and (d)(2) and 76.645(a)(1) and (b) provide that a Federal 
agency may designate a central receipt point for STATE-WIDE AND STATE 
AGENCY-WIDE certifications, and for notification of criminal drug 
convictions. For the Department of Health and Human Services, the 
central point is: Division of Grants Management and Oversight, Office 
of Management and Acquisition, Department of Health and Human Services, 
Room 517-D, 200 Independence Avenue, SW Washington, DC 20201.
Certification Regarding Drug-Free Workplace Requirements (Instructions 
for Certification)
    1. By signing and/or submitting this application or grant 
agreement, the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is 
no application, the grantee must keep the identity of the workplace(s) 
on file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, 
(iii) Temporary personnel and consultants who are directly engaged in 
the performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the 
grantee's payroll; or employees of subrecipients or subcontractors in 
covered workplaces).
Certification Regarding Drug-Fee Workplace Requirements
    Alternate I. (Grantees Other Than Individuals)
    The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substances is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;

[[Page 37299]]

    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no 
later than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, inlcuding position title, to every grant 
officer or other designee on whose grant activity the convicted 
employee was working, unless the Federal agency has designated a 
central point for the receipt of such notices. Notice shall include the 
identification number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, 
up to and including termination, consistent with the requirements of 
the Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes 
by a Federal, State, or local health, law enforcement, or other 
appropriate agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    (B) The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:
    Place of Performance (Street address, city, county, state, zip 
code)
    Check if there are workplaces on file that are not identified here.
Alternate II. (Grantees Who Are Individuals)
    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the 
Federal agency designates a central point for the receipt of such 
notices. When notice is made to such a central point, it shall include 
the identification number(s) of each affected grant.

Attachment F

Certification Regarding Debarment, Suspension and Other Responsibility 
Matters

Certification Regarding Debarment, Suspension, and Other Responsibility 
Matters--Primary Covered Transactions

Instructions for Certification
    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an 
erroneous certification, in addition to other remedies available to the 
Federal Government, the department or agency may terminate this 
transaction for cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns 
that is certification was erroneous when submitted or has become 
erroneous by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executing Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, declared ineligible, or voluntarily 
excluded from participation in this covered transaction, unless 
authorized by the department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause title ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which 
it determines the eligibility of its principals. Each participant may, 
but is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and 
information of a participant is not required to exceed

[[Page 37300]]

that which is normally possessed by a prudent person in the ordinary 
course of business dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly 
enters into a lower tier covered transaction with a person who is 
proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, 
debarred, ineligible, or voluntarily excluded from participation in 
this transaction, in addition to other remedies available to the 
Federal Government, the department or agency may terminate this 
transaction for cause or default.
* * * * *
Certification Regarding Debarment, Suspension, and Other Responsibility 
Matters--Primary Covered Transactions
    (1) The prospective primary participant certifies to the best of 
its knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal 
been convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of 
Federal or State antitrust statutes or commission of embezzlement, 
theft, forgery, bribery, falsification or destruction of records, 
making false statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of 
this certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.
Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion--Lower Tier Covered Transactions
Instructions for Certification
    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, [[Page 33043]] should the proposed covered transaction 
be entered into, it shall not knowingly enter into any lower tier 
covered transaction with a person who is proposed for debarment under 
48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, 
or voluntarily excluded from participation in this covered transaction, 
unless authorized by the department or agency with which this 
transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which 
it determines the eligibility of its principals. Each participant may, 
but is not required to, check, the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause.
    The knowledge and information of a participant is not required to 
exceed that which is normally possessed by a prudent person in the 
ordinary course of business dealings.
    9. Except for transactions authorized under paragraph 5 of this 
instructions, if a participant in a covered transaction knowingly 
enters into a lower tier covered transaction with a person who is 
proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, 
debarred, ineligible, or voluntarily excluded from participation in 
this transaction, in addition to other remedies available to the 
Federal Government, the department or agency with which this 
transaction originated may pursue available remedies, including 
suspension and/or debarment.
* * * * *
Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion--Lower Tier Covered Transactions
    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such 
prospective participant shall attach an explanation to this proposal.

Intergovernmental Review (SPOC List)

    It is estimated that in 2001 the Federal Government will outlay 
$305.6 billion in grants to State and local governments. Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' was 
issued with the desire to foster the intergovernmental partnership and 
strengthen federalism

[[Page 37301]]

by relying on State and local processes for the coordination and review 
of proposed Federal financial assistance and direct Federal 
development. The Order allows each State to designate an entity to 
perform this function. Below is the official list of those entities. 
For those States that have a home page for their designated entity, a 
direct link has been provided below.
    States that are not listed on this page have chosen not to 
participate in the intergovernmental review process, and therefore do 
not have a SPOC. If you are located within one of these States, you may 
still send application materials directly to a Federal awarding agency.
    Contact information for Federal agencies that award grants can be 
found in Appendix IV of the Catalog of Federal Domestic Assistance.
Arkansas
Tracy L. Copeland, Manager, State Clearinghouse, Office of 
Intergovernmental Services, Department of Finance and Administration, 
1515 W. 7th St., Room, 412, Little Rock, Arkansas 72203, Telephone: 
(501) 682-1074, Fax: (501) 682-5206, [email protected]
California
Grants Coordination, State Clearninghouse, Office of Planning and 
Research, P.O. Box 3044, Room 222, Sacramento, California 95812-3044, 
Telephone: (916) 445-0613, Fax: (916) 323-3018, 
[email protected]
Delaware
Charles H. Hopkins, Executive Department, Office of the Budget, 540 S. 
Dupont Highway, 3rd Floor, Dover, Delaware 19901, Telephone: (302) 739-
3323, Fax: (302) 739-5661, [email protected]
District of Columbia
Luisa Montero-Diaz, Office of Partnerships and Grants Development, 
Executive Office of the Mayor, District of Columbia Government, 441 4th 
Street, NW., Suite 530 South Washington, DC 20001, Telephone: (202) 
727-8900, Fax: (202) 727-1652, [email protected]
Florida
Jasmin Raffington
Florida State Clearinghouse
Department of Community Affairs
2555 Shumard Oak Blvd.
Tallahassee, Florida 32399-2100
Telephone: (850) 922-5438
Fax: (850) 414-0479
[email protected]
Georgia
Georgia State Clearinghouse
270 Washington Street, SW.
Atlanta, Georgia 30334
Telephone: (404) 656-3855
Fax: (404) 656-7901
[email protected]
Illinois
Virginia Bova
Department of Commerce and Community Affairs
James R. Thompson Center
100 West Randolph, Suite 3-400
Chicago, Illinois 60601
Telephone: (312) 814-6028
Fax (312) 814-8485
[email protected]
Iowa
Steven R. McCann
Division of Community and Rural Development
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
Telephone: (515) 242-4719
Fax: (515) 242-4809
[email protected]
Kentucky
Ron Cook
Department for Local Government
1024 Capital Center Drive, Suite 340
Frankfort, Kentucky 40601
Telephone: (502) 573-2382
Fax: (502) 573-2512
[email protected]
Maine
Joyce Benson
State Planning Office
184 State Street
38 State House Station
Augusta, Maine 04333
Telephone: (207) 287-3261
(207) 287-1461 (direct)
Fax: (207) 287-6489
[email protected]
Maryland
Linda Janey
Manager, Clearinghouse and Plan Review Unit
Maryland Office of Planning
301 West Preston Street--Room 1104
Baltimore, Maryland 21201-2305
Telephone: (410) 767-4490
Fax: (410) 767-4480
[email protected]
Michigan
Richard Pfaff
Southeast Michigan Council of Governments
535 Griswold, Suite 300
Detroit, Michigan 48226
Telephone: (313) 961-4266
Telephone: (313) 961-4266
Fax: (313) 961-4869
[email protected]
Mississippi
Cathy Mallette
Clearinghouse Officer
Department of Finance and Administration
1301 Woolfolk building, Suite E
501 North West Street
Jackson, Mississippi 39201
Telephone: (601) 359-6762
Fax: (601) 359-6758
Missouri
Angela Boessen
Federal Assistance Clearinghouse
Office of Administration
P.O. Box 809
Truman Building, Room 840
Jefferson City, Missouri 65102
Telephone: (573) 751-4834
Fax: (573) 522-4395
[email protected]
Nevada
Heather Elliott
Department of Administration
State Clearinghouse
209 E. Musser Street, Room 200
Carson City, Nevada 89701
Telephone: (775) 684-0209
Fax: (775) 684-0260
[email protected]
New Hampshire
Jeffrey H. Taylor
Director
New Hampshire Office of State Planning
Attn: Intergovernmental Review Process
Mike Blake
2-\1/2\ Beacon Street
Concord, New Hampshire 03301
Telephone: (603) 271-2155
Fax: (603) 271-1728
[email protected]
New Mexico
Ken Hughes
Local Government Division
Room 201 Bataan Memorial Building
Santa Fe, New Mexico 87503
Telephone: (505) 827-4370
Fax: (505) 827-4948
[email protected]
North Carolina
Jeanette Furney
Department of Administration
1302 Mail Service Center
Raleigh, North Carolina 27699-1302
Telephone: (919) 807-2323
Fax: (919) 733-9571
[email protected]
North Dakota
Jim Boyd

[[Page 37302]]

Division of Community Services
600 East Boulevard Ave, Dept 105
Bismarck, North Dakota 58505-0170
Telephone: (701) 328-2094
Fax: (701) 328-2308
[email protected]
Rhode Island
Kevin Nelson
Department of Administration
Statewide Planning Program
One Capitol Hill
Providence, Rhode Island 02908-5870
Telephone: (401) 222-2093
Fax: (401) 222-2083
[email protected]
South Carolina
Omeagia Burgess
Budget and Control Board
Office of State Budget
1122 Ladies Street, 12th Floor
Columbia, South Carolina 29201
Telephone: (803) 734-0494
Fax: (803) 734-0645
[email protected]
Texas
Denise S. Francis
Director, State Grants Team
Governor's Office of Budget and Planning
P.O. Box 12428
Austin, Texas 78711
Telephone: (512) 305-9415
Fax: (512) 936-2681
[email protected]
Utah
Carolyn Wright
Utah State Clearinghouse
Governor's Office of Planning and Budget
State Capitol, Room 114
Salt Lake City, Utah 84114
Telephone: (801) 538-1535
Fax: (801) 538-1547
[email protected]
West Virginia
Fred Cutlip, Director
Community Development Division
West Virginia Development Office
Building #6, Room 553
Charleston, West Virginia 25305
Telephone: (304) 558-4010
Fax: (304) 558-3248
[email protected]
Wisconsin
Jeff Smith
Section Chief, Federal/State Relations
Wisconsin Department of Administration
101 East Wilson Street--6th Floor
P.O. Box 7868
Madison, Wisconsin 53707
Telephone: (608) 266-0267
Fax: (608) 267-6931
[email protected]
American Samoa
Pat M. Galea'i
Federal Grants/Programs Coordinator
Office of Federal Programs
Office of the Governor/Department of Commerce
American Samoa Government
Pago Pago, American Samoa 96799
Telephone: (684) 633-5155
Fax: (684) 633-4195
[email protected]
Guam
Director
Bureau of Budget and Management Research
Office of the Governor
P.O. Box 2950
Agana, Guam 96910
Telephone: 011-671-472-2285
Fax: 011-472-2825
[email protected]
Puerto Rico
Jose Caballero/Mayra Silva
Puerto Rico Planning Board
Federal Proposals Review Office
Minillas Government Center
P.O. Box 41119
San Juan, Puerto Rico 00940-1119
Telephone: (787) 723-6190
Fax: (787) 722-6783
North Mariana Islands
Ms. Jacoba T. Seman
Federal Programs Coordinator
Office of Management and Budget
Office of the Governor
Saipan, MP 96950
Telephone: (670) 664-2289
Fax: (670) 664-2272
[email protected]
Virgin Islands
Ira Mills
Director, Office of Management and Budget
#41 Norre Gade Emancipation Garden Station, Second Floor
Saint Thomas, Virgin Islands 00802
Telephone: (340) 774-0750
Fax: (340) 776-0069
[email protected]

    Changes to this list can be made only after OMB is notified by a 
State's officially designated representative. E-mail messages can be 
sent to [email protected]. If you prefer, you may send correspondence 
to the following postal address: Attn: Grants Management, Office of 
Management and Budget, New Executive Office Building, Suite 6025, 725 
17th Street, NW., Washington, DC 20503.
    Please note: Inquiries about obtaining a Federal grant should not 
be sent to the OMB e-mail or postal address shown above. The best 
source of this information is the CFDA.

Attachment H

Certification Regarding Lobbying

Certification for Contracts, Grants, Loans, and Cooperative Agreements
    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, 
by or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer of employee of an agency, a Member 
of Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with the awarding of any Federal 
contract, the making of any Federal grant, the making of any Federal 
loan, the entering into of any cooperative agreement, and the 
extension, continuation, renewal, amendment, or modification of any 
Federal contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, 
an officer or employee of Congress, or an employee of a Member of 
Congress in connection with this Federal contract, grant, loan, or 
cooperative agreement, the undersigned shall complete and submit 
Standard Form-LLL, ``Disclosure Form to Report Lobbying,'' in 
accordance with its instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly. This certification is a 
material representation of fact upon which reliance was placed when 
this transaction was made or entered into. Submission of this 
certification is a prerequisite for making or entering into this 
transaction imposed by section 1352, title 31, U.S. Code. Any person 
who fails to file the required certification shall be subject to a 
civil penalty of not less than $10,000 and not more than $100,000 for 
each such failure.
Statement for Loan Guarantees and Loan Insurance
    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or

[[Page 37303]]

attempting to influence an officer or employee of any agency, a Member 
of Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with this commitment providing for the 
United States to insure or guarantee a loan, the undersigned shall 
complete and submit Standard Form-LLL, ``Disclosure Form to Report 
Lobbying,`` in accordance with its instructions. Submission of this 
statement is a prerequisite for making or entering into this 
transaction imposed by section 1352, title 31, U.S. Code. Any person 
who fails to file the required statement shall be subject to a civil 
penalty of not less than $10,000 and not more than $100,000 for each 
such failure.
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BILLING CODE 4184-01-C

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Instructions for Completion of SF-LLL, Disclosure of Lobbying 
Activities

    This disclosure form shall be completed by the reporting entity, 
whether subawardee or prime Federal recipient, at the initiation or 
receipt of a covered Federal action, or a material change to a previous 
filing, pursuant to title 31 U.S.C. Section 1352. The filing of a form 
is required for each payment or agreement to make payment to any 
lobbying entity for influencing or attempting to influence an officer 
or employee of any agency, a Member of Congress, an officer or employee 
of Congress, or an employee of a Member of Congress in connection with 
a covered Federal action. Use the SF-LLL-A Continuation Sheet for 
additional information if the space on the form is inadequate. Complete 
all items that apply for both the initial filing and material change 
report. Refer to the implementing guidance published by the Office of 
Management and Budget for additional information.
    1. Identify the type of covered Federal action for which lobbying 
activity is and/or has been secured to influence the outcome of a 
covered Federal action.
    2. Identify the status of the covered Federal action.
    3. Identify the appropriate classification of this report. If this 
is a follow-up report caused by a material change to the information 
previously reported, enter the year and quarter in which the change 
occurred. Enter the date of the last previously submitted report by 
this reporting entity for this covered Federal action.
    4. Enter the full name, address, city, state and zip code of the 
reporting entity. Include Congressional District, if known. Check the 
appropriate classification of the reporting entity that designates if 
it is, or expects to be, a prime or subaward recipient. Identify the 
tier of the subawardee, e.g., the first subawardee of the prime is the 
1st tier. Subawards include but are not limited to subcontracts, 
subgrants and contract awards under grants.
    5. If the organization filing the report in item 4 checks 
``subawardee'', then enter the full name, address, city, state and zip 
code of the prime Federal recipient. Include Congressional District, if 
known.
    6. Enter the name of the Federal agency making the award or loan 
commitment. Include at least one organizational level below agency 
name, if known. For example, Department of Transportation, United 
States Coast Guard.
    7. Enter the Federal program name or description for the covered 
Federal action (item 1). If known, enter the full Catalog of Federal 
Domestic Assistance (CFDA) number of grants, cooperative agreements, 
loans, and loan commitments.
    8. Enter the most appropriate Federal identifying number available 
for the Federal action identified in item 1 [e.g., Request for Proposal 
(RFP) number; Invitation for Bid (IFB) number; grant announcement 
number; the contract, grant, or loan award number; the application/
proposal control number assigned by the Federal agency]. Include 
prefixes, e.g., ``RFP-DE-90-001.''
    9. For a covered Federal action where there has been an award or 
loan commitment by the Federal agency, enter the Federal amount of the 
award/loan commitment for the prime entity identified in item 4 or 5.
    10. (a) Enter the full name, address, city, state and zip code of 
the lobbying entity engaged by the reporting entity identified in item 
4 to influence the covered Federal action.
    (b) Enter the full names of the individual(s) performing services, 
and include full address if different from 10(a). Enter Last Name, 
First Name, and Middle Initial (MI).
    11. Enter the amount of compensation paid or reasonably expected to 
be paid by the reporting entity (item 4) to the lobbying entity (item 
10). Indicate whether the payment has been made (actual) or will be 
made (planned). Check all boxes that apply. If this is a material 
change report, enter the cumulative amount of payment made or planned 
to be made.
    According to the Paperwork Reduction Act, as amended, no persons 
are required to respond to a collection of information unless it 
displays a valid OMB Control Number. The valid OMB control number for 
this information collection is OMB No. 0348-0046. Public reporting 
burden for this collection is estimated to average 10 minutes per 
response, including time for reviewing instructions, searching existing 
data sources, gathering and maintaining the data needed, and completing 
and reviewing the collection of information. Send comments regarding 
the burden estimate or any other aspect of this collection of 
information, including suggestions for reducing this burden, to the 
Office of Management and Budget, Paperwork Reduction Project (0348-
0046), Washington, DC 20503.

Disclosure of Lobbying Activities Continuation Sheet

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of

Attachment 1

Department of Health and Human Services (DHHS)

Regulations Applying to All Applicants/Grantees Under The Fiscal Year 
2002 Community Economic Development Program

Title 45 of the Code of Federal Regulations

Part 16--DHHS Grant Appeals Process
Part 74--Administration of Grants (non-governmental)
Part 74--Administration of Grants (state and local governments and 
Indian Tribal affiliates):
Sections
74.26--Non-Federal Audits
74.27--Allowable cost for hospitals and non-profit organizations among 
other things
74.32--Real Property
74.34--Equipment
74.35--Supplies
74.24--Program Income
Part 75--Informal Grant Appeal Procedures
Part 76--Debarment and Suspension from Eligibility For Financial 
Assistance
Subpart F--Drug Free Workplace Requirements
Part 80--Non-discrimination Under Programs Receiving Federal Assistance 
through DHHS Effectuation of Title VI of the Civil Rights Act of 1964
Part 81--Practice and Procedures for Hearings Under Part 80 of this 
Title
Part 83--Regulation for the Administration and Enforcement of Sections 
799A and 845 of the Public Health Service Act
Part 84--Non-discrimination on the Basis of Handicap in Programs and 
Activities Receiving Federal Financial Assistance
Part 85--Enforcement of Non--discrimination on the Basis of Handicap in 
Programs or Activities Conducted by DHHS
Part 86--Non-discrimination on the Basis of Sex in Education Programs 
and Activities Receiving or Benefiting from Federal Financial 
Assistance
Part 91--Non-discrimination on the Basis of Age in Health and Human 
Services Programs or Activities Receiving Federal Financial Assistance
Part 92--Uniform Administrative Requirements for Grants and Cooperative 
Agreements to States and

[[Page 37306]]

Local Governments (Federal Register, March 11, 1988)
Part 93--New Restrictions on Lobbying
Part 100--Intergovernmental Review of DHHS Programs and Activities
Certification Regarding Environmental Tobacco Smoke
    Public Law 103227, Part C Environmental Tobacco Smoke, also known 
as the Pro Children Act of 1994, requires that smoking not be permitted 
in any portion of any indoor routinely owned or leased or contracted 
for by an entity and used routinely or regularly for provision of 
health, day care, education, or library services to children under the 
age of 18, if the services are funded by Federal programs either 
directly or through State or local governments, by Federal grant, 
contract, loan, or loan guarantee. The law does not apply to children's 
services provided in private residences, facilities funded solely by 
Medicare or Medicaid funds, and portions of facilities used for 
inpatient drug or alcohol treatment. Failure to comply with the 
provisions of the law may result in the imposition of a civil monetary 
penalty of up to $1000 per day and/or the imposition of an 
administrative compliance order on the responsible entity. By signing 
and submitting this application the applicant/grantee certifies that it 
will comply with the requirements of the Act.
    The applicant/grantee further agrees that it will require the 
language of this certification be included in any subawards which 
contain provisions for the children's services and that all subgrantees 
shall certify accordingly.

Attachment K

Guidelines for a Business Plan
    The application must contain a detailed and specific workplan or 
business plan that is both sound and feasible. Generally, a business 
plan is required for applications submitted under priority areas 1, 2, 
and 3. For all business ventures (except for business development 
opportunities for self-employed programs participants) a complete 
business plan will be required using guidelines discussed in the next 
several paragraphs. For the remaining sub-priority areas, a workplan is 
acceptable in lieu of a business plan.
    Please note that OCS does not require the application to contain 
business plans for each self-employed program participant. However, a 
project that proposes to provide self-employed and other business 
opportunities for program participants must include a development plan 
that shows how participants will become self-sufficient and how their 
technical assistance needs will be met.
Guidelines of a Business Plan
    The business plan is one of the major components that will be 
evaluated by the OCS to determine the feasibility of a business venture 
or an economic development project. It must be well prepared and 
address all the relevant elements as follows:
    (a) EXECUTIVE SUMMARY (limit summary to 3 pages)
    (b) The business and its industry. This section should describe the 
nature and history of the business and provide some background on its 
industry.
    (i) The Business: as a legal entity; the general business category;
    (ii) Description and Discussion of Industry: current status and 
prospects for the industry.
    (c) 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., patients, trade secrets;
    (iii) Potential: Features of the product or service that may give 
it an advantage over the competition;
    (d) Market Research and Evaluation: The applicant should consider 
businesses in growth industries and occupations with skill levels 
accessible to low income persons. Businesses should be identified by 
Standard Industrial Codes (SIC) and jobs by occupational 
classifications. This information is published by the U.S. Department 
of Commerce in the ``Statistical Abstract of the United States, 1996'', 
Table No. 646 and 647. Also, you may use the table included as 
``Attachment L'' to identify industrial areas and occupational 
classifications. 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;
    (i) Customers: Describe the actual and potential purchasers for the 
product or service by market segment.
    (ii) Market Size and Trends: State the site of the current total 
market for the product or service offered;
    (iii) Competition: An Assessment of the strengths and weaknesses of 
competitive in the current market;
    (iv) Estimated Market Share and Sales: Describe the characteristics 
of the product or service that will make it competitive in the current 
market;
    (e) 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.
    (f) 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.
    (g) Manufacturing and Operations Plan: A manufacturing and 
operations plan should describe the kind of facilities, plant 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.
    (h) 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.
    (i) Overall Schedule: A schedule that shows the timing and 
interrelationships 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.
    (j) 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 critical assumptions relating to the 
industry, the venture, its personnel, the products market appeal, and 
the timing and financing of the venture.

[[Page 37307]]

    Also, if a ``construction project'' is involved, the Business Plan 
should identify and address briefly the project's timeframes and 
critical assumptions for conduct of predevelopment, architectural/
engineering and environmental studies, etc., and acquisition of permits 
for building, use and occupancy that are required for the project.
    (k) Community Benefits: The proposed project must contribute to 
economic, human and community development within the projects targets 
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. The following 
project benefits must be described.
Economic Development and Job Creation
    Number of permanent jobs (with particular emphasis on jobs for low-
income people) that will be created during the project period. Also, 
for low-income people, provide the following information:

--Number of jobs that will have career development opportunities and a 
description of those jobs;
--Number of jobs that will be filled by individuals lifted form AFDC/
TANF assistance;
Number of Self-employed and other ownership opportunities created for 
low-income residents;
--Annual salary expected for each person employed (net profit after 
deductions of business expenses for self-employed persons);
--Specific steps to be taken including on-going management support and 
technical assistance provided by the grantee or a third party to 
develop and sustain self-employed program participants after their 
businesses are in place.

    Note: OCS will not recognize job equivalents nor job counts 
based on economic multiplier functions; jobs must be specifically 
identified.

    Other benefits, which might be discussed, are;
Human Development
--New technical skills development and associated career opportunities 
for community residents;
--Management development and training;
--Benefits of self-sufficient for persons lifted from AFDC/TANF 
assistance.
Community Development
--Development of community's physical assets;
--Provisions of needed, but currently unsupplied, services or products 
to community;
--Improvement in the living environment.

    (1) 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 are an initial Source and Use of Funds Statement 
for project funds and a brief summary paragraph discussing any further 
capital requirements and their sources.
    If an applicant is proposing a project which will affect a property 
list in, or eligible for inclusion in the National Register of Historic 
Places, it must identify this property in the narrative and explain how 
it has complied with the provisions of Section 106 of the National 
Historic Preservation Act of 1996 as amended. If there is any question 
as to whether the property is listed in or eligible for inclusion in 
the National Register of Historic Places, the applicant should consult 
with the State Historic Preservation Officer. (See Attachment D: SF-
424B, Item 13 for additional guidance.) The applicant should contact 
OCS early in the development of its application for instructions 
regarding compliance with the Act and data required to be submitted to 
the Department of Health and Human Services. Failure to comply with the 
cited Act may result in the application being ineligible for funding 
consideration.
Applicable to Priority Areas 1, 2, and 3
    Applications submitted under Priority Areas 1, 2 and 3 which 
propose to use the requested 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 OCS funds, must include a written 
agreement between the community development corporation and the 
recipient of the grant funds which contains all of the elements listed 
in Part C under the appropriate Priority Area.
Applicable to Sub-Priority Area 1.5 Only
    An applicant in this priority area must document its experience and 
capability in several of the following areas:

--Business/Development;
--Micro-Entrepreneurship Development;
--Commercial Development;
--Organizational and Staff Development;
--Board Training;
--Business Management, including Strategic Planning and Fiscal 
Mangement;
--Finance, including Business Packaging and Financial/Accounting 
Services, and/or
--Regulatory compliance including Zoning and permit Compliance
--Incubator Development
--Tax Credits and Bond Financing
--Marketing

    The applicant must document staff competence or the accessibility 
of third party resources with proven competence. If the work program 
requires the significance use of third party (consultant/contractor) 
resources, those resources should be identified and resumes of the 
individuals or key organizational staff provided.
    Resumes of the applicant's staff, who are to be directly involved 
in programmatic and administrative expertise sharing, should also be 
included. The applicant must document successful experience in the 
mobilization of resources (both cash and in-kind) from private and 
public sources. The applicant must also clearly state how the 
information learned from this project may be disseminated to other 
interested grantees.
Applicable to Sub-Priority Area 1.6 only
    An applicant in this priority area must document its experience and 
capability in implementing projects national in scope and have 
significant and relative experiences in working with community 
development corporations.
    The applicants must have the ability to collect and analyze data 
nationally that may benefit CDCs and be able to disseminate information 
to all of OCS funding grantees; publish a national directory of funding 
sources for CDCs (public, corporate, foundation, religious); publish 
research papers on specific aspects of job creation by CDSs;

[[Page 37308]]

design and provide information on successful projects and economic 
niches that CDCs can target. The applicant will also be responsible for 
the development of instructional programs, national conferences, 
seminars, and other activities to assist community development 
corporations; and provide peer-to-peer technical assistance to OCS 
funded CDCs.
Applicable to Sub-Priority Area 2.1
    Each applicant must include a full discussion of how the proposed 
use of funds will enable low-income rural communities to devlop the 
capability and expertise to establish and maintain affordable, adequate 
and safe water and waste water systems. Applicants must also discuss 
how they will disseminate information about water and waste water 
programs serving rural communities, and how they will better coordinate 
Federal, State, and local water and waste water program financing and 
development to assure improved service to rural communities.
    Among the benefits that merit discussion under this sub-priority 
area are: The number of rural communities to be provided with technical 
and advisory services; the number of rural poor individuals who are 
expected to be directly served by applicant-supported improved water 
and waste water systems; the decrease in the number of inadequate water 
systems related to applicant activity; the number of newly-established 
and applicant-supported treatment systems (all of the above may be 
expressed in terms of equivalent connection units); the increase in 
local capacity in engineering and other areas of expertise; and the 
amount of non-discretionary program dollars expected to be mobilized.
e. Significant and Beneficial Impact and Other Criteria
    The project narrative must address the remaining aspects of the 
project noted in the outline of Part F, ``Contents of Application and 
Receipt Process'', Items V and VI. These include private partnerships 
and ``Budget Appropriateness and Reasonableness'' areas as well as 
information to be included in the appendices.

Attachment L

 Table of North American Industry Classification System and Occupational
                             Classifications
 
      North American industry
    classification system (NAIC)         Occupational classifications
 
Agriculture, Forestry, Fishing, and  Managerial and Professional
 Hunting Only Logging covered in      Specialty Technical sales, and
 the Economics Census                 Administrative Support (includes
Mining                                technical and related support,
Utilities                             technicians, sales occupations,
Construction                          including clerical).
Manufacturing                        Precision Production, Craft, and
Wholesale Trade                       Repair (includes mechanics,
Retail Trade                          repairers, construction trades,
Transportation and Warehousing        crafters).
Information                          Operators, fabricators, and
Finance and Insurance                 Laborers (includes machine
Real Estate and Rental and Leasing    operators, assemblers, inspectors,
Professional, Scientific and          transportation and material moving
 Technical Services                   occupations, handlers, equip
Management of Companies and           cleaners, Helpers, laborers
 Enterprises                          including construction laborers).
Administrative and Support and       Farming, Forestry and Fishing.
 Waste Management and Remediation
 Services
Educational Services
Health Care and Social Assistance
Arts, Entertainment and Recreation
Accommodation and Food Services
Other Services (except Public
 Administration)
Public Administration not covered
 in the Economic Census
 
Source: U.S. Department of Commerce, ``Statistical Abstract of the
  United States, 1996'', Table No. 646 and 647. Updated 1998. Table No.
  679 and 680, and 1997 Economic Census.


BILLING CODE 4184-01-M

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[FR Doc. 02-13036 Filed 5-24-02; 8:45 am]
BILLING CODE 4184-01-C